Document:

SBL Corporation
                          P.O. Box 705
                  Oklahoma City, Oklahoma 73101

April 1, 2000

Mr. Jim Jones
LSB Industries, Inc.
Post Office Box 754
Oklahoma City, Oklahoma 73101

RE:  SBL Corporation Demand Note for $1,950,000 ("SBL Note")

Dear Mr. Jones:

This  letter confirms the commitment of SBL Corporation to  Prime
Financial   Corporation.   LSB  Industries,  Inc  and  affiliates
("LSB") to forbear from demanding payment of principal under  the
SBL  Note  until April 1, 2001, unless LSB receives cash proceeds
in connection with either a) the sale or other disposition of KAC
Acquisition  Corp.  and/or  Kestrel  Aircraft,  and/or   b)   the
repayment  of loans by Co-Energy Group and affiliates to  LSB  or
subsidiaries of LSB, and/or the repayment of amounts due LSB from
its  subsidiaries  in connection with the stock option  agreement
with  the  shareholders of Co-Energy Group, and/or c) some  other
source that is not in LSB's projections for the year 2000.  Until
no  sooner  than  April  1,  2001, any demand  for  repayment  of
principal under the SBL Note shall not exceed $500,000 from  life
insurance proceeds, $1,000,000 from proceeds realized on  b)  and
$950,000  from proceeds realized on a) and c) under the  previous
sentence.

Sincerely yours,

Jack E. Golsen
PresidentGUARANTY AGREEMENT
                                                Date of Agreement
                                             AS OF April 21, 2000
    DEBTOR NAME AND ADDRESS          LENDER NAME AND ADDRESS
SBL CORPORATION                  STILLWATER NATIONAL BANK AND
P.O. Box 705                     TRUST COMPANY
Oklahoma City,  OK 73101         6305 Waterford Blvd., Suite
                                 205
                                 Oklahoma City, OK 73118
A.   In  consideration of the extension of credit to  the  Debtor
     and  for  other good and valuable consideration, the receipt
     of  which  is acknowledged, and for the purpose of  enabling
     the  Debtor  to  obtain  or renew  loans,  credit  or  other
     financial  accommodation from the Lender  named  above,  the
     undersigned  as a primary obligor, unconditionally,  but  as
     limited   pursuant  to  Section  G  below,   notwithstanding
     anything  to  the  contrary herein:  (1) guarantees  to  the
     Lender  that Debtor will fully and promptly pay or otherwise
     discharge  its (his/her) indebtedness and other  obligations
     in favor of Lender under Promissory Note Number 37516, dated
     October  16,  1997,  in  the original  principal  amount  of
     $1,985,508.00,   with   a  current  principal   balance   of
     $985,508.00, as modified and/or extended, from time to time,
     (the  "Indebtedness") and regardless of the nature and  form
     of  indebtedness  and whether due or not  due;  (2)  agrees,
     without the Lender first having to proceed against Debtor or
     any  other party liable or to liquidate any security, to pay
     on  demand  all  sums due and to become due to  Lender  from
     Debtor  relating to the indebtedness, and all losses, costs,
     attorney  fees or expenses which may be suffered or incurred
     by  Lender  by reason of Debtor's default or the default  of
     the  undersigned; (3) except as setoff is waived, agrees  to
     be  bound  by  and  on  demand  to  pay  any  deficiency  or
     difference  between all indebtedness of the Debtor  and  the
     proceeds  of  any  private  or  public  sale  (including   a
     sheriff's  sale)  of the security held by  Lender,  with  or
     without notice to the undersigned; (4) agrees that liability
     under this Agreement will not be affected or impaired by any
     failure,  neglect or omission, including a failure or  delay
     to  perfect  or maintain perfection of a security  interest,
     either in relation to the collection of the Indebtedness  or
     the  protection  of  the security given, and  regardless  of
     whether  the  Lender fails or omits to seek or is  precluded
     from  seeking  a  judgment against Debtor; and  (5)  further
     agrees  that the liability of the undersigned shall  not  be
     affected  by any lack of validity or enforceability  due  to
     defense,  claim, discharge or otherwise of any  indebtedness
     guaranteed  by  this  Agreement or of the  security  of  the
     indebtedness.

B.   Lender  may  at any time and from time to time  without  the
     further  consent  of  or notice to the undersigned,  without
     incurring  responsibility  to the  undersigned  and  without
     impairing  or  releasing the obligations of the undersigned,
     and  upon any terms and conditions the Lender may elect: (1)
     change  the manner, place or terms of payment or extend  the
     time of payment of the Indebtedness of Debtor to Lender; (2)
     renew  or  alter the Indebtedness of Debtor to  Lender;  (3)
     raise  or  lower the interest rate or rates charged  Debtor;
     (4)  sell,  exchange, release, surrender,  realize  upon  or
     otherwise  deal or not deal with in any manner  and  in  any
     order any property at any time pledged to secure or securing
     the  Indebtedness  of Debtor to Lender  or  any  liabilities
     incurred directly or indirectly under this Agreement, or any
     offsets  against  any such indebtedness or liabilities;  (5)
     exercise  or  refrain  from exercising  any  rights  against
     Debtor  or others, or otherwise act or refrain from  acting;
     (6)  settle  or compromise the Indebtedness guaranteed;  (7)
     subordinate  the payment of all or part of the  Indebtedness
     of  Debtor to Lender to the payment of any liabilities which
     may  be due Lender or others; (8) apply any sums paid by  or
     for  account  of  Debtor to any indebtedness  of  Debtor  to
     lender  regardless  of  what indebtedness  or  liability  of
     Debtor  to  lender  remains unpaid and regardless  of  which
     indebtedness  such  sums were intended to  be  applied;  (9)
     release  any other guarantor or any other party liable  upon
     or  for any indebtedness or other obligation guaranteed, and
     such  release  will  not  affect the  liability  under  this
     Agreement  of  the  undersigned or any other  party  not  so
     released;  (10)  add  or release the  primary  or  secondary
     liability of principals, guarantors or other parties; and/or
     (11) obtain additional collateral security.

C.   The  undersigned  waives: (1) notice of acceptance  of  this
     Guaranty  Agreement;  (2) notice  of  the  creation  of  any
     indebtedness;  (3)  any  presentment,  demand  for  payment,
     notice  of  default or non-payment, notice of  acceleration,
     notice  of  disposition of security, notice of  dishonor  or
     protest   to  or  upon  any  party  and  all  other  notices
     whatsoever  whether required or permitted by  this  Guaranty
     Agreement, any other agreement, course of dealing, usage  of
     trade, course of performance and, to the extent allowed, the
     law; (4) any exercise of any remedy which the Lender now has
     or later acquires against the Debtor or any other party; (5)
     any impairment of collateral, including, but not limited to,
     the  failure  to  perfect,  or  maintain  perfection  of,  a
     security interest in collateral; and (6) any event,  or  any
     act  or omission of the Lender (except acts or omissions  in
     bad  faith)  which  materially increases the  scope  of  the
     undersigned's  risk as guarantor, including  the  manner  of
     administration of the loan and changes in the form or manner
     in  which  any  party  does business or in  their  financial
     condition and any notice of any such change.

D.   Until  such  time as the Indebtedness is paid in  full  this
     Guaranty  Agreement  shall  be absolute,  unconditional  and
     continuing  guaranty of payment and not  of  collection  and
     shall  be  binding upon the undersigned, and its successors:
     (1) regardless of the death or cessation of existence of any
     of  the  undersigned or of any guarantor or any other  party
     liable  upon  any  indebtedness or other  obligation  hereby
     guaranteed;  (2)  irrespective of  any  defenses,  claim  or
     discharge  available to the Debtor under law  or  under  any
     agreement  with  the  Lender; and (3)  irrespective  of  any
     failure  or delay by the Lender to perfect or keep perfected
     any  lien  or  security  interest in any  collateral.   This
     Guaranty  Agreement  is an independent obligation  which  is
     separately enforceable from the obligation of the Debtor.

E.   All  rights of the Lender are cumulative and not alternative
     to   other   rights.   Suit  may  be  brought  against   the
     undersigned or other parties liable, jointly and  severally;
     and against any one or more of them, and against all or less
     than  all,  without impairing the rights of the Lender,  its
     successors  or  assigns, against others of the  undersigned.
     The Lender may settle with any one of the undersigned or any
     other  party  for  such sum or sums as it may  see  fit  and
     release  such of the undersigned or other parties  from  all
     further  liability  to  the  Lender  for  such  indebtedness
     without  impairing  the right of the Lender  to  demand  and
     collect the balance of such indebtedness from others of  the
     undersigned not so released.

F.   The  Lender  may assign this Agreement or any of its  rights
     and   powers  under  it,  with  all  or  any  part  of   the
     indebtedness guaranteed, and may assign to any such assignee
     any  of the security for the indebtedness.  In the event  of
     such assignment, the assignee shall have the same rights and
     remedies  as if originally named in this Agreement in  place
     of   Lender,  and  the  Lender  shall  thereafter  be  fully
     discharged from all responsibility with respect to any  such
     indebtedness so assigned.

G.   Unless  expressly limited by specific writing set  forth  in
     this Guaranty Agreement, it is understood to be unlimited in
     amount.   If  limited, it is understood the  limit  means  a
     fixed  amount  or  percentage of any indebtedness  remaining
     after  application of the actual proceeds of the disposition
     of   any  security  to  any  unguaranteed  portion  of   the
     indebtedness.

     The  Indebtedness guaranteed is Promissory  Note  of  Lender
     #37516   signed  by  Debtor,  in  the  original  amount   of
     $1,985,508.00  and all extensions and renewals  thereof  and
     all  interest thereon and attorney fees and other  costs  of
     attempting   to  collect  the  Indebtedness   from   Debtor.
     Notwithstanding  anything seemingly to the contrary  herein,
     the  obligations  of the undersigned in the aggregate  under
     this Guaranty Agreement and any other Guarantee made by  the
     undersigned in favor of Lender in connection with the  debts
     listed on Exhibit A to Lender, is limited to an amount equal
     to  the value, from time to time, of the Investment Property
     subject  to a security interest granted Lender in a Security
     Agreement of even date herewith.

H.   Until   the   Indebtedness  has  been  paid  in  full,   the
     undersigned  agrees to provide to the Lender  from  time  to
     time  upon demand such financial statements, copies  of  tax
     returns, and other information as to the undersigned as  the
     Lender may reasonably require.

I.   Any  deposits  or  other sums credited by or  due  from  the
     Lender to the undersigned may be set off against any and all
     liabilities  of the undersigned to the Lender arising  under
     the terms of this Guaranty Agreement.  The rights granted by
     this  paragraph shall be in addition to the  rights  of  the
     Lender under any statutory banker's lien or common law right
     of offset.

J.   Until the Indebtedness of the Debtor have been paid in full,
     the   undersigned   specifically  waives   all   rights   of
     subrogation  to the rights of the Lender, any claim  to  any
     security or its value to which the Lender has recourse,  and
     all  rights  of  reimbursement or  contribution  from  other
     parties,   whether  principals  or  sureties,  accommodation
     parties or guarantors.

K.   Notwithstanding the provisions of any note or obligation  to
     which  this Guaranty Agreement applies, it is the  intention
     of  the  parties, and it is here provided, that a  Guarantor
     shall  not be liable for interest charges in excess  of  the
     maximum  amount permitted under the law applicable  to  this
     Guaranty Agreement.

L.   The  undersigned  specifically waives any  right  to  setoff
     under  12  O.S., Sec. 686, 15 O.S., Sec. 341,  or  any  like
     statutes,  and  agree that the Lender may apply  the  actual
     proceeds from the disposition of any security first  to  any
     unguaranteed portion of the indebtedness.  Any party to this
     Guaranty  Agreement has right to waive  trial  by  jury  and
     waives  all objections to venue in any action instituted  by
     the Lender arising out of this Guaranty Agreement.

M.   Until  such  time as the Indebtedness is paid in  full,  the
     undersigned   waive,  as  of  the  date  of  this   Guaranty
     Agreement, any claim, as that term is defined in the Federal
     Bankruptcy Code, which the undersigned might have or acquire
     against the Debtor arising from the existence or performance
     of   the   undersigned's  obligations  under  this  Guaranty
     Agreement,  and  to  that extent the undersigned  is  not  a
     creditor  of the Debtor.  In addition to the waiver  of  the
     status  of  creditor,  it is agreed  that  the  indebtedness
     guaranteed  under  this  Guaranty  Agreement  excludes   all
     portions  of the indebtedness paid by the Debtor during  the
     period  of time within one year prior to the filing  of  any
     bankruptcy, reorganization or insolvency proceedings  by  or
     against  the Debtor.  If any payment made by the  Debtor  to
     the  Lender  is determined to be avoidable under  applicable
     state law or the Federal Bankruptcy Code, to that extent, if
     demanded by the Lender, this Guaranty Agreement is deemed to
     be  reinstated to include the amount within the indebtedness
     under this Guaranty Agreement.

N.   The  undersigned, by signing below, acknowledge having  read
     this  Guaranty Agreement, having reviewed it to  the  extent
     desired with their legal counsel, and receiving a copy of it
     and  also  receiving an explanation of any  questions.   The
     undersigned  also have read any cosigner notice provided  by
     Lender.  The undersigned understand that the undersigned may
     have  to pay any indebtedness or obligation covered by  this
     Guaranty Agreement in the event the Debtor fails or  refuses
     to  do  so.   The undersigned also represent that  they  are
     aware of the financial condition of Debtor and acknowledge a
     responsibility  to maintain a close watch on that  financial
     condition  as long as this Guaranty Agreement is outstanding
     and  that  they  are  not relying on the Lender  to  provide
     information on the Debtor's financial condition, now  or  in
     the future.

P.   This Guaranty and the obligations evidenced in it are to  be
     construed and governed by the laws of the state indicated in
     the address of Lender shown above.

Q.   This Agreement supersedes all prior guaranty agreements  and
     understanding  between the undersigned and  the  Lender  and
     constitutes  the  entire  Guaranty Agreement  between  them.
     There are no understandings, agreements, representations  or
     conditions, oral or written, between the undersigned and the
     Lender  except  as set forth in this Agreement  and  related
     written loan documents.  This Guaranty Agreement may not  be
     amended  or  modified  except by a  writing  signed  by  the
     undersigned  and  the  Lender.   No  condition  as  to   the
     effectiveness  or  enforcement of  this  Guaranty  Agreement
     exists except as stated in this Agreement.

    WITNESSES' SIGNATURES            GUARANTOR SIGNATURES
                                 PRIME FINANCIAL CORPORATION

                                 By:

                            EXHIBIT A
                               TO
                      GUARANTY AGREEMENT OF
                   PRIME FINANCIAL CORPORATION
                    EFFECTIVE APRIL 21, 2000

SBL CORPORATION
Note:                #37516
Principal Amount:   $1,985,508.00
Note Date:          10-16-1997

AMY G. RAPPAPORT #J-1 TRUST
Note:                #37521
Principal Amount:   $73,908.00
Note Date:          10-16-1997

LORI R. RAPPAPORT #J-1 TRUST
Note:                #37519
Principal Amount:   $71,776.00
Note Date:          10-16-1997

STACY L. RAPPAPORT #J-1 TRUST
Note:                #37520
Principal Amount:   $71,776.00
Note Date:          10-16-1997

ADAM Z. GOLSON #J-1 TRUST
Note:                #37522
Principal Amount:   $71,776.00
Note Date:          10-16-1997

STEVEN J. GOLSEN 1992 TRUST
Note:                #37518
Principal Amount:   $139,680.00
Note Date:          10-16-1997

BARRY H. GOLSEN 1992 TRUST
Note:                #37524
Principal Amount:   $149,680.00
Note Date:          10-16-1997

SYLVIA H. GOLSEN 1992 TRUST
Note:                #37517
Principal Amount:   $140,532.00
Note Date:          10-16-1997

JOSHUA B. GOLSEN #J-1 TRUST
Note:                #37526
Principal Amount:   $73,908.00
Note Date:          10-16-1997

MICHELLE L. GOLSEN #J-1 TRUST
Note:                #37523
Principal Amount:   $71,776.00
Note Date:          10-16-1997

LINDA F. RAPPAPORT 1992 TRUST
Note:                #37525
Principal Amount:   $149,680.00
Note Date:          10-16-1997

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