<SEC-DOCUMENT>0001193125-18-303142.txt : 20181019
<SEC-HEADER>0001193125-18-303142.hdr.sgml : 20181019
<ACCEPTANCE-DATETIME>20181019165406
ACCESSION NUMBER:		0001193125-18-303142
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20181018
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Material Modifications to Rights of Security Holders
ITEM INFORMATION:		Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20181019
DATE AS OF CHANGE:		20181019

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			LSB INDUSTRIES INC
		CENTRAL INDEX KEY:			0000060714
		STANDARD INDUSTRIAL CLASSIFICATION:	INDUSTRIAL INORGANIC CHEMICALS [2810]
		IRS NUMBER:				731015226
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-07677
		FILM NUMBER:		181130908

	BUSINESS ADDRESS:	
		STREET 1:		3503 NW 63RD STREET
		STREET 2:		SUITE 500
		CITY:			OKLAHOMA CITY
		STATE:			OK
		ZIP:			73116
		BUSINESS PHONE:		4052354546

	MAIL ADDRESS:	
		STREET 1:		3503 NW 63RD STREET
		STREET 2:		SUITE 500
		CITY:			OKLAHOMA CITY
		STATE:			OK
		ZIP:			73116
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d635267d8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<TITLE>Form 8-K</TITLE>
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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P>
<P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="margin-top:4pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>UNITED STATES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>WASHINGTON, D.C. 20549 </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>FORM <FONT
STYLE="white-space:nowrap">8-K</FONT> </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>CURRENT
REPORT </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>PURSUANT TO SECTION 13 OR 15(d) OF </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>THE SECURITIES EXCHANGE ACT OF 1934 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Date of report (Date of earliest event reported): October&nbsp;18, 2018 </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:24pt; font-family:Times New Roman" ALIGN="center"><B>LSB INDUSTRIES, INC. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Exact name of registrant as specified in its charter) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top" ALIGN="center"><B>Delaware</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B><FONT STYLE="white-space:nowrap">1-7677</FONT></B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B><FONT STYLE="white-space:nowrap">73-1015226</FONT></B></TD></TR>
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<TD VALIGN="top" ALIGN="center"><B>(State or other jurisdiction<BR>of incorporation)</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>(Commission File<BR>Number)</B></TD>
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<TD VALIGN="top" ALIGN="center"><B>(IRS Employer<BR>Identification No.)</B></TD></TR>
</TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top" ALIGN="center"><B>3503 NW 63rd Street, Suite 500, Oklahoma City, Oklahoma</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>73116</B></TD></TR>
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<TD VALIGN="top" ALIGN="center"><B>(Address of principal executive offices)</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>(Zip Code)</B></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Registrant&#146;s telephone number, including area code
<FONT STYLE="white-space:nowrap">(405)&nbsp;235-4546</FONT> </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Not applicable </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Former name or former address, if changed since last report) </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Check the appropriate box below if the <FONT STYLE="white-space:nowrap">Form&nbsp;8-K</FONT> filing is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions (see General Instruction&nbsp;A.2. below): </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Written communications pursuant to Rule&nbsp;425 under the Securities Act (17&nbsp;CFR&nbsp;230.425)
</P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Soliciting material pursuant to <FONT STYLE="white-space:nowrap">Rule&nbsp;14a-12</FONT> under the Exchange Act
<FONT STYLE="white-space:nowrap">(17&nbsp;CFR&nbsp;240.14a-12)</FONT> </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><FONT STYLE="white-space:nowrap">Pre-commencement</FONT> communications pursuant to <FONT
STYLE="white-space:nowrap">Rule&nbsp;14d-2(b)</FONT> under the Exchange Act <FONT STYLE="white-space:nowrap">(17&nbsp;CFR&nbsp;240.14d-2(b))</FONT> </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><FONT STYLE="white-space:nowrap">Pre-commencement</FONT> communications pursuant to <FONT
STYLE="white-space:nowrap">Rule&nbsp;13e-4(c)</FONT> under the Exchange Act <FONT STYLE="white-space:nowrap">(17&nbsp;CFR&nbsp;240.13e-4(c))</FONT> </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Indicate by check mark whether the registrant is an emerging growth company as defined in Rule&nbsp;405 of the Securities Act of 1933 (&#167;&nbsp;230.405 of
this chapter) or <FONT STYLE="white-space:nowrap">Rule&nbsp;12b-2</FONT> of the Securities Exchange Act of 1934 <FONT STYLE="white-space:nowrap">(&#167;&nbsp;240.12b-2</FONT> of this chapter). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Emerging growth company&nbsp;&nbsp;&#9744; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">If an emerging
growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section&nbsp;13(a) of the Exchange
Act.&nbsp;&nbsp;&#9744;</P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P>
<P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;1.01 Entry into a Material Definitive Agreement. </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I>Exchange Agreement and Issuance of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Preferred Stock and
<FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> Preferred Stock </I></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">As previously announced and in connection with its notes refinancing
transactions completed on April&nbsp;25, 2018 (the &#147;Refinancing Transactions&#148;), LSB Industries, Inc. (the &#147;Company&#148;) entered into a letter agreement (the &#147;Letter Agreement&#148;) with LSB&nbsp;Funding LLC
(&#147;LSB&nbsp;Funding&#148;), an unrelated third party and the holder of our Series&nbsp;E cumulative redeemable Class&nbsp;C preferred stock (&#147;Series&nbsp;E Redeemable Preferred&#148;),&nbsp;to extend the date upon which a holder of
Series&nbsp;E Redeemable Preferred has the right to elect to have such holder&#146;s shares of Series&nbsp;E Redeemable Preferred redeemed by the Company from August&nbsp;2, 2019 to October&nbsp;25, 2023. The Letter Agreement, which was filed as
Exhibit&nbsp;10.1 to the Company&#146;s Current Report on <FONT STYLE="white-space:nowrap">Form&nbsp;8-K</FONT> filed with the Securities and Exchange Commission (the &#147;SEC&#148;) on May&nbsp;1, 2018, also provided for the adjustment of certain
other terms relating to the Series&nbsp;E Redeemable Preferred, including an increase in the per annum dividend rate payable in respect of the Series&nbsp;E Redeemable Preferred (a)&nbsp;by 0.50% on the third anniversary of the Refinancing
Transactions, (b)&nbsp;by an additional 0.50% on the fourth anniversary of the Refinancing Transactions and (c)&nbsp;by an additional 1.0% on the fifth anniversary of the Refinancing Transactions. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In furtherance of the Letter Agreement and as expressly contemplated by Section&nbsp;3 and Section&nbsp;5(a) therein, the Company and LSB Funding entered into
a Securities Exchange Agreement on October&nbsp;18, 2018 (the &#147;Exchange Agreement&#148;) providing for the exchange of (i)&nbsp;existing Series&nbsp;E Redeemable Preferred held by LSB&nbsp;Funding for shares of newly created <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> cumulative redeemable Class&nbsp;C preferred stock of the Company <FONT STYLE="white-space:nowrap">(&#147;Series&nbsp;E-1</FONT> Redeemable Preferred&#148;) and (ii)&nbsp;existing Series&nbsp;F
redeemable Class&nbsp;C preferred stock of the Company (&#147;Series&nbsp;F Redeemable Preferred&#148;) held by LSB&nbsp;Funding for a share of newly created <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> redeemable Class&nbsp;C preferred
stock of the Company <FONT STYLE="white-space:nowrap">(&#147;Series&nbsp;F-1</FONT> Redeemable Preferred&#148;), in each case on a one <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">share-for-one</FONT></FONT> share basis (the
&#147;Preferred Exchange&#148;). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On October&nbsp;18, 2018, the Company and LSB&nbsp;Funding completed the Preferred Exchange. Pursuant thereto, LSB
Funding (i)&nbsp;surrendered all of its shares of Series&nbsp;E Redeemable Preferred and was issued 139,768&nbsp;shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Redeemable Preferred and (ii)&nbsp;surrendered its one share of
Series&nbsp;F Redeemable Preferred and was issued one share of <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> Redeemable Preferred. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Apart from
implementing the adjustments contemplated by the Letter Agreement, which will increase the per annum dividend rate payable on the preferred stock in future years as described above, the terms of the
<FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Redeemable Preferred and <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> Redeemable Preferred are substantively identical to the terms of the
<FONT STYLE="white-space:nowrap">now-retired</FONT> Series&nbsp;E Redeemable Preferred and Series&nbsp;F Redeemable Preferred, respectively. The per annum dividend rate on the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Redeemable
Preferred at issuance is 14.0% per annum. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The foregoing summary does not purport to be complete and is qualified in its entirety by reference to the full
texts of (i)&nbsp;the Exchange Agreement, a copy of which is filed as Exhibit&nbsp;10.1 hereto and incorporated by reference herein; (ii)&nbsp;the Certificate of Designations setting forth the rights, preferences, privileges and restrictions
applicable to the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Redeemable Preferred, as filed with the Secretary of State of the State of Delaware (the <FONT STYLE="white-space:nowrap">&#147;Series&nbsp;E-1</FONT> Certificate of
Designations&#148;), a copy of which is filed as Exhibit&nbsp;4.1 hereto and incorporated by reference herein; and (iii)&nbsp;the Certificate of Designations setting forth the rights, preferences, privileges and restrictions applicable to the <FONT
STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> Redeemable Preferred, as filed with the Secretary of State of the State of Delaware (the <FONT STYLE="white-space:nowrap">&#147;Series&nbsp;F-1</FONT> Certificate of Designations&#148;), a copy of
which is filed as Exhibit&nbsp;4.2 hereto and incorporated by reference herein. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I>Amendment to Registration Rights Agreement </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Company and LSB Funding previously entered into a Registration Rights Agreement, dated as of December&nbsp;4, 2015 (as previously amended, the
&#147;Registration Rights Agreement&#148;), a copy of which was filed as Exhibit&nbsp;10.4 to the Company&#146;s Current Report on <FONT STYLE="white-space:nowrap">Form&nbsp;8-K</FONT> filed with the SEC on December&nbsp;8, 2015. The Exchange
Agreement amends the Registration Rights Agreement in part (the &#147;Registration Rights Amendment&#148;) by replacing the references therein to the Series&nbsp;E Redeemable Preferred with references to the
<FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Redeemable Preferred. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The foregoing description of the Registration Rights Amendment does not
purport to be complete and is qualified in its entirety by reference to the full text of the Registration Rights Amendment, a copy of which is contained in the Exchange Agreement filed as Exhibit&nbsp;10.1 hereto and incorporated by reference
herein. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I>Amendment to Board Representation and Standstill Agreement </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Company, LSB&nbsp;Funding and the other parties thereto previously entered into a Board Representation and Standstill Agreement, dated as of
December&nbsp;4, 2015 (the &#147;Board Representation and Standstill Agreement&#148;), a copy of which was filed as Exhibit&nbsp;10.3 to the Company&#146;s Current Report on <FONT STYLE="white-space:nowrap">Form&nbsp;8-K</FONT> filed with the SEC on
December&nbsp;8, 2015. The Board Representation and Standstill Agreement was subsequently modified by an amendment dated as of October&nbsp;26, 2017, which amendment was filed with the SEC as Exhibit&nbsp;10.1 to the Company&#146;s Current Report on
<FONT STYLE="white-space:nowrap">Form&nbsp;8-K</FONT> filed with the SEC on October&nbsp;30, 2017. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On October&nbsp;18, 2018, the Company,
LSB&nbsp;Funding and the other parties to the Board Representation and Standstill Agreement entered into a further amendment to the Board Representation and Standstill Agreement (the &#147;Board Representation and Standstill Amendment&#148;). The
Board Representation and Standstill Amendment amends the Board Representation and Standstill Agreement in part by replacing the references therein to the Series&nbsp;E Redeemable Preferred and Series&nbsp;F Redeemable Preferred with references to
the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Redeemable Preferred and <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> Redeemable Preferred, respectively. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The foregoing description of the Board Representation and Standstill Amendment does not purport to be complete and is qualified in its entirety by reference
to the full text of the Board Representation and Standstill Amendment, a copy of which is filed as Exhibit&nbsp;10.2 hereto and incorporated by reference herein. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;3.03 Material Modification to Rights of Security Holders. </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The information set forth under Item&nbsp;1.01 and Item&nbsp;5.03 is incorporated into this Item&nbsp;3.03 by reference. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year. </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I><FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> and <FONT STYLE="white-space:nowrap">F-1</FONT> Certificates of Designations </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In connection with the Preferred Exchange, the Company&#146;s board of directors approved the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT>
Certificate of Designations and the <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> Certificate of Designations. The <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Certificate of Designations and the
<FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> Certificate of Designations were both filed with the Secretary of State of the State of Delaware on October&nbsp;18, 2018. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;9.01 Financial Statements and Exhibits. </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">(d)&nbsp;Exhibits. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="92%"></TD></TR>
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<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Exhibit</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Number</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><B>Description</B></TD></TR>


<TR STYLE="font-size:1pt">
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<TD HEIGHT="8" COLSPAN="2"></TD></TR>
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<TD VALIGN="top" NOWRAP>&nbsp;&nbsp;4.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Certificate of Designations of Series E-1 Cumulative Redeemable Class C Preferred Stock of LSB Industries, Inc., dated as of October&nbsp;18, 2018.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>&nbsp;&nbsp;4.2</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Certificate of Designations of Series F-1 Redeemable Class C Preferred Stock of LSB Industries, Inc., dated as of October&nbsp;18, 2018.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>10.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Securities Exchange Agreement, dated as of October 18, 2018, by and between LSB Industries, Inc. and LSB Funding LLC.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>10.2</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Amendment to Board Representation and Standstill Agreement, dated as of October 18, 2018, by and among LSB Industries, Inc., LSB Funding LLC, Security Benefit Corporation, Todd Boehly and the Golsen Holders (as defined
therein).</TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">4 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Exhibit Index </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; display:table-cell; font-size:8pt; font-family:Times New Roman; " ALIGN="center">Exhibit<BR>Number</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; display:table-cell; font-size:8pt; font-family:Times New Roman; " ALIGN="center">Description</P></TD></TR>


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<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>&nbsp;&nbsp;4.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"><A HREF="d635267dex41.htm">Certificate of Designations of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Cumulative Redeemable Class&nbsp;C Preferred Stock of LSB&nbsp;Industries, Inc., dated as of October&nbsp;18, 2018.
</A></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>&nbsp;&nbsp;4.2</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"><A HREF="d635267dex42.htm">Certificate of Designations of <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> Redeemable Class&nbsp;C Preferred Stock of LSB&nbsp;Industries, Inc., dated as of October&nbsp;18, 2018.
</A></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
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<TD VALIGN="top" NOWRAP>10.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"><A HREF="d635267dex101.htm">Securities Exchange Agreement, dated as of October&nbsp;18, 2018, by and between LSB&nbsp;Industries, Inc. and LSB&nbsp;Funding LLC. </A></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>10.2</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"><A HREF="d635267dex102.htm">Amendment to Board Representation and Standstill Agreement, dated as of October&nbsp;18, 2018, by and among LSB&nbsp;Industries, Inc., LSB&nbsp;
Funding LLC, Security Benefit Corporation, Todd Boehly and the Golsen Holders (as defined therein). </A></TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">5 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><U>SIGNATURES </U></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dated: October&nbsp;19, 2018 </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="top" COLSPAN="3">LSB&nbsp;INDUSTRIES, INC.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Mark T. Behrman</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Name:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Mark T. Behrman</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Title:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Executive Vice President and Chief Financial Officer</TD></TR>
</TABLE></DIV>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">6 </P>

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<TYPE>EX-4.1
<SEQUENCE>2
<FILENAME>d635267dex41.htm
<DESCRIPTION>EX-4.1
<TEXT>
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<TITLE>EX-4.1</TITLE>
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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit&nbsp;4.1 </B></P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>CERTIFICATE OF DESIGNATIONS </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>OF </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SERIES <FONT
STYLE="white-space:nowrap">E-1</FONT> CUMULATIVE REDEEMABLE CLASS C PREFERRED STOCK </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>OF </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>LSB&nbsp;INDUSTRIES, INC. </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>LSB&nbsp;INDUSTRIES, INC.,</B>&nbsp;a corporation organized and existing under the General Corporation Law of the State of Delaware (the
&#147;<U>Corporation</U>&#148;), in accordance with the provisions of Sections&nbsp;103 and 151 thereof, DOES HEREBY CERTIFY: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The board
of directors of the Corporation (the &#147;<U>Board of Directors</U>&#148;), in accordance with the provisions of the Restated Certificate of Incorporation of the Corporation (as amended from time to time, the &#147;<U>Restated Certificate of
Incorporation</U>&#148;) and the Amended and Restated Bylaws of the Corporation and applicable law, at a meeting duly called and held on October&nbsp;16, 2018, adopted the following resolution relating to the creation and issuance of a new series of
Class&nbsp;C Preferred Stock: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>RESOLVED</B>, that pursuant to the authority vested in the Board of Directors and in accordance with the
provisions of the Restated Certificate of Incorporation and applicable law, a series of Class&nbsp;C Preferred Stock, having no par value per share, of the Corporation be and hereby is created, and that the designation and number of shares of such
series, and the voting and other powers, preferences and relative, participating, optional or other rights, and the qualifications, limitations and restrictions thereof (in addition to those set forth in the Certificate of Incorporation that are
applicable to Preferred Stock of all series and to Class&nbsp;C Preferred Stock of all series), of the shares of such series, are as follows: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;1.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Designation; Rank</B>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;The distinctive serial designation of such series of Class&nbsp;C Preferred Stock is &#147;<U><FONT
STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Cumulative Redeemable Class</U><U></U><U>&nbsp;C Preferred Stock</U>&#148; (&#147;<U><FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT></U>&#148;). </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;With respect to the payment of dividends and distribution of assets upon liquidation, dissolution or winding up of
the Corporation, whether voluntary or involuntary, all shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> shall rank (i)&nbsp;senior to all Junior Stock, (ii)&nbsp;on a parity with the other shares of
<FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> and any other class or series of stock of the Corporation (other than <FONT STYLE="white-space:nowrap">Series&nbsp;E-1)</FONT> hereafter created (subject to Section&nbsp;9(b)) that specifically
ranks pari passu to <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> and (iii)&nbsp;junior to any other class or series of stock of the Corporation hereafter created (subject to Section&nbsp;9(b)) that specifically ranks senior to <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1.</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;2.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Number of Shares</B>.
The authorized number of shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> shall be 139,768. Shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> that are redeemed, purchased or otherwise acquired by the Corporation, or
converted into another class or series of capital stock of the Corporation, shall be cancelled and retired and revert to authorized but unissued shares of Class&nbsp;C Preferred Stock (<I>provided</I>&nbsp;that any such cancelled shares of <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> may be reissued only as shares of any series other than <FONT STYLE="white-space:nowrap">Series&nbsp;E-1).</FONT> </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;3.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Definitions</B>. As used
herein with respect to <FONT STYLE="white-space:nowrap">Series&nbsp;E-1:</FONT> </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Applicable Dividend
Factor</U>&#148; means (i)&nbsp;from the date hereof to April&nbsp;24, 2021, a factor of 0.14; (ii)&nbsp;from April&nbsp;25, 2021 to April&nbsp;24, 2022, a factor of 0.145; (iii)&nbsp;from April&nbsp;25, 2022 to April&nbsp;24, 2023, a factor of
0.15; and (iv)&nbsp;from April&nbsp;25, 2023 until all shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> are retired or otherwise cancelled, a factor of 0.16. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Business Day</U>&#148; means a day, other than Saturday, Sunday or any other day on which banking
institutions in New York, New York generally are authorized or obligated by law, regulation or executive order to close. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(c)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Bylaws</U>&#148; means the Amended and Restated Bylaws of the Corporation, as they may be amended from time
to time. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(d)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Certificate of Designations</U>&#148; means this Certificate of Designations relating to <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1,</FONT> as it may be amended from time to time. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(e)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Certificate
of Incorporation</U>&#148; means the Restated Certificate of Incorporation of the Corporation, as it may be amended from time to time, and shall include this Certificate of Designations and any other certificate of designations of preferred stock of
the Corporation. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(f)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Change of Control</U>&#148; has the meaning given such term in the Indenture. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(g)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Change of Control Offer</U>&#148; has the meaning set forth in Section&nbsp;7(a). </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(h)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Change of Control Payment Date</U>&#148; has the meaning set forth in Section&nbsp;7(b)(ii). </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(i)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Change of Control Price</U>&#148; means, with respect to a share of
<FONT STYLE="white-space:nowrap">Series&nbsp;E-1,</FONT> the Liquidation Preference of such share as of the date of acceptance for payment. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(j)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Common Stock</U>&#148; means (i)&nbsp;the common stock, $0.10 par value per share, of the Corporation and
(ii)&nbsp;any share capital into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common Stock. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(k)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Common Stock Price</U>&#148; means, with respect to a share of Common Stock as of the applicable redemption
date (in the case of Section&nbsp;6) or the applicable acceptance date (in the case of Section&nbsp;7), (i)&nbsp;the average of the closing sale prices per share of Common Stock (or, if no closing sale price is reported, the average of the closing
bid and ask prices or, if more than one in either case, the average of the average closing bid and the average closing ask prices) for the 20 consecutive trading days immediately preceding, but not including, the third trading day immediately
preceding the date of the redemption or acceptance, as applicable, as reported on the principal U.S. securities exchange on which the Common Stock is then traded, or (ii)&nbsp;if the Common Stock is not then listed for trading on a U.S. securities
exchange, the average of the </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">-2- </P>

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last quoted bid prices per share of Common Stock in the <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">over-the-counter</FONT></FONT> market as reported by OTC Market Group
Inc. or similar organization for the 20 consecutive trading days immediately preceding, but not including, the third trading day immediately preceding the date of the redemption or acceptance, as applicable. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(l)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Dividend Payment Date</U>&#148; means each May&nbsp;1 and November&nbsp;1, commencing on November&nbsp;1,
2018. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(m)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Dividend Period</U>&#148; has the meaning set forth in Section&nbsp;4. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(n)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Dividend Record Date</U>&#148; has the meaning set forth in Section&nbsp;4. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(o)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Indenture</U>&#148; means the Indenture relating to the Corporation&#146;s 9.625% Senior Secured Notes due
2023 dated as of April&nbsp;25, 2018, as amended from time to time. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(p)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Initial Purchaser</U>&#148; means
the Purchaser as defined in the Securities Purchase Agreement. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(q)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Junior Stock</U>&#148; means the Common
Stock, the Series&nbsp;B 12% Cumulative Convertible Preferred Stock, the Series&nbsp;D 6% Cumulative Convertible Class&nbsp;C Preferred Stock, the Series&nbsp;4 Junior Participating Class&nbsp;C Preferred Stock and any other class or series of stock
of the Corporation (other than <FONT STYLE="white-space:nowrap">Series&nbsp;E-1)</FONT> that ranks junior to <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> either or both as to the payment of dividends and/or as to the distribution of
assets on any liquidation, dissolution or winding up of the Corporation. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(r)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Liquidation
Preference</U>&#148; means, with respect to any share of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1,</FONT> on any date of determination the sum of (i)&nbsp;its Liquidation Value plus (ii)&nbsp;all accrued but unpaid dividends thereon to such
date whether or not declared, compounding as of each Dividend Payment Date, plus (iii)&nbsp;solely for purposes of Section&nbsp;6 and Section&nbsp;7, its Participation Rights Value. For purposes of clause (ii)&nbsp;of this definition, the amount of
dividends &#147;accrued&#148; on any share <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> at any date of determination shall be deemed to be the amount of unpaid dividends accumulated thereon from and including the Original Issue Date of
such share of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1,</FONT> including additional dividends accruing as a result of compounding as of each Dividend Payment Date, all as further described in Section&nbsp;4. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(s)&nbsp;&nbsp;&nbsp;&nbsp; &#147;<U>Liquidation Value</U>&#148; means, with respect to any share of
<FONT STYLE="white-space:nowrap">Series&nbsp;E-1,</FONT> the quotient obtained by dividing $206,335,049 by 139,768 (subject to adjustment for any stock split, stock dividend, stock combination or similar transaction with respect to the <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1).</FONT> </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(t)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Optional Redemption Date</U>&#148; means
October&nbsp;25, 2023. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(u)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Original Issue Date</U>&#148; means the date of issuance of any share of <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1.</FONT> </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(v)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Participation Common Stock</U>&#148; means, as of
any time of determination, the product of (i)&nbsp;456,225&nbsp;shares of Common Stock (subject to adjustment for any stock split, stock dividend, stock combination or similar transaction with respect to the Common Stock) and (ii)&nbsp;a fraction,
the numerator of which is the number of shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> outstanding at such time and the denominator of which is 139,768 (subject to adjustment for any stock split, stock dividend, stock combination
or similar transaction with respect to the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1).</FONT> </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(w)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Participation Rights Value</U>&#148; means, with respect
to any share of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> as of any date of determination, as applicable, the product of (i)&nbsp;a fraction, the numerator of which is the Liquidation Value of such share of <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> and the denominator of which is the aggregate Liquidation Value of all outstanding shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1,</FONT> (ii)&nbsp;the number of shares of Common Stock
constituting Participation Common Stock and (iii)&nbsp;the Common Stock Price as of such date<B>.</B> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(x)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Permitted Transferee</U>&#148; has the meaning set forth in the Securities Purchase Agreement. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(y)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Person</U>&#148; means any individual, corporation, limited liability company, partnership, joint venture,
association, joint stock company, trust, unincorporated organization, or government or any agency or political subdivision thereof. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(z)&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Securities Purchase Agreement</U>&#148; means that certain Securities Purchase Agreement dated as of
December&nbsp;4, 2015 between the Company and the purchaser named therein, as it may be amended from time to time. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;4.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Dividends</B>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;<B>Rate</B>. Holders of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> shall be entitled to receive on each
share of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1,</FONT> out of funds legally available for the payment of dividends under Delaware law, cumulative cash dividends at a per annum rate equal to the Applicable Dividend Factor <I>multiplied</I>
<I>by</I> the Liquidation Value thereof and all accrued and unpaid dividends thereon that have been compounded in accordance with the following sentence. Such dividends shall begin to accrue and be cumulative from the Original Issue Date of such
share and shall be payable semi-annually in arrears (as provided in this Section&nbsp;4) and shall, until paid, compound additional dividends semi-annually in arrears on each Dividend Payment Date on such Liquidation Value and all accrued but unpaid
dividends thereon whether or not declared by the Board. Dividends shall be payable only when, as and if declared by the Board of Directors. If any Dividend Payment Date would otherwise occur on a day that is not a Business Day, such Dividend Payment
Date shall instead be (and any dividend payable on <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> on such Dividend Payment Date shall instead be payable on) the immediately succeeding Business Day with the same force and effect as if made
on such Dividend Payment Date. The amount of dividends payable on the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> shall be computed on the basis of a <FONT STYLE="white-space:nowrap">360-day</FONT> year consisting of twelve <FONT
STYLE="white-space:nowrap">30-day</FONT> months, and with respect to any date of determination that is not a Dividend Payment Date, actual days elapsed over a <FONT STYLE="white-space:nowrap">30-day</FONT> month. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Dividends that are payable on <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> on any Dividend Payment Date shall be payable to holders
of record of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> as they appear on the stock register of the Corporation on the applicable record date, which shall be fixed by the Board of Directors and not more than 60 nor less than
10&nbsp;days prior to such Dividend Payment Date (each, a &#147;<U>Dividend Record Date</U>&#148;). Any such day that is a Dividend Record Date shall be a Dividend Record Date whether or not such day is a Business Day. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Each dividend period (a &#147;<U>Dividend Period</U>&#148;) shall commence on the calendar
day immediately following a Dividend Payment Date (other than the initial Dividend Period with respect to any share of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1,</FONT> which shall commence on and include the Original Issue Date of such
share) and shall end on and include the next Dividend Payment Date. Dividends payable in respect of a Dividend Period shall be payable in arrears on the Dividend Payment Date ending such Dividend Period. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;<B>No Dividends on Junior Stock</B>. So long as the Initial Purchaser and its Permitted Transferees collectively
hold at least 10% of the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> issued to the Initial Purchaser on the date hereof, unless and until dividends have been declared and paid on the
<FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> for the then-current Dividend Period and past Dividend Periods in cash, no dividends (other than dividends in shares of Junior Stock) may be declared or paid or set aside for payment, and no
other distribution may be declared or made, upon Junior Stock; provided, however, that notwithstanding the foregoing dividends or other distributions payable in cash upon Junior Stock may be declared or paid or set aside for payment in any
then-current Dividend Period in which the semi-annual dividend amount payable on the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> has been paid in cash for the same then-current Dividend Period (whether or not any accrued or unpaid
dividends have been declared or paid on the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> for any other Dividend Period). So long as any <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> is outstanding, no Junior Stock may be
redeemed, purchased or otherwise acquired for any consideration (or any moneys be paid to or made available for a sinking fund for the redemption of any such shares) by the Corporation, except (A)&nbsp;by conversion into or exchange for Junior Stock
(including any shares of Common Stock surrendered to or withheld by the Corporation upon the exercise of warrants issuable for Common Stock), (B)&nbsp;for the repurchase of any shares of Common Stock held by employees or consultants of the
Corporation upon termination of their employment or services pursuant to agreements approved by the Corporation&#146;s Board of Directors providing for such repurchase or (C)&nbsp;for any shares of Common Stock withheld by the Corporation to pay
taxes upon the granting or vesting of awards to any of its employees or service providers under any equity compensation plan of the Corporation approved by the Corporation&#146;s Board of Directors or surrendered to or withheld by the Corporation to
pay the exercise price of any such awards. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(c)</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Participating Dividends. </B>Subject to Section&nbsp;4(a)
and 4(b), in addition to the dividends accruing on the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> pursuant to Section&nbsp;4(a), if the Corporation declares or pays a dividend or distribution on the Common Stock, whether such dividend
or distribution is payable in cash, securities or other property, the Corporation shall simultaneously declare and pay a dividend on the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> on a pro rata basis with the Common Stock in an
aggregate amount equal to such dividend or distribution payable with respect to the Participation Common Stock. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;5.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Liquidation Rights</B>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;<B>Voluntary or Involuntary Liquidation</B>. In the event of any liquidation, dissolution or winding up of the
affairs of the Corporation, whether voluntary or involuntary, holders of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> shall be entitled to receive for each share of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1,</FONT> out of the
assets of the Corporation or proceeds thereof (whether capital or surplus) available for distribution to stockholders of the Corporation, and after satisfaction of all liabilities and obligations to creditors of the Corporation, before any
distribution of such assets or proceeds is made to or set aside for the holders of Common Stock and any other Junior Stock, payment in full in an amount equal to the Liquidation Preference of each share of
<FONT STYLE="white-space:nowrap">Series&nbsp;E-1.</FONT> </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;<B>Partial Payment</B>. If in any distribution described in
Section&nbsp;5(a), the assets of the Corporation or proceeds thereof are not sufficient to pay the Liquidation Preferences in full to all holders of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> as to such distribution, the amounts paid to
the holders of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> shall be paid<I>&nbsp;pro rata</I>&nbsp;in accordance with the respective aggregate Liquidation Preferences of the holders of
<FONT STYLE="white-space:nowrap">Series&nbsp;E-1.</FONT> </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(c)&nbsp;&nbsp;&nbsp;&nbsp;<B>Participation with Common Stock; Residual
Distributions</B>. If the Liquidation Preference has been paid in full to all holders of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1,</FONT> the holders of other stock of the Corporation shall be entitled to receive all remaining assets of the
Corporation (or proceeds thereof) according to their respective rights and preferences; provided, however, that in addition to and after the Liquidation Preference has been paid in full to all holders of
<FONT STYLE="white-space:nowrap">Series&nbsp;E-1,</FONT> the holders of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> shall be entitled to participate with the holders of Common Stock then outstanding, pro rata as a single class as if such
holders of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> held the Participation Common Stock, which amounts shall be paid to the holders of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> pro rata in accordance with the respective
aggregate Liquidation Preferences of the shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> held by each such holder of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1.</FONT> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(d)&nbsp;&nbsp;&nbsp;&nbsp;<B>Merger, Consolidation and Sale of Assets Not Liquidation</B>. For purposes of this Section&nbsp;5, the merger or
consolidation of the Corporation with any other corporation or other entity, including a merger or consolidation in which the holders of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> receive cash, securities or other property for their
shares, or the sale, lease or exchange (for cash, securities or other property) of all or substantially all of the assets of the Corporation, shall not constitute a liquidation, dissolution or winding up of the Corporation, but shall be governed by
Section&nbsp;7. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;6.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Redemption</B>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;<B>Optional Redemption by Holders</B>. Subject to the provisions of this Section&nbsp;6, at any time on or after the
Optional Redemption Date, each holder of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> shall have the right to elect to have, out of funds legally available therefor, such holder&#146;s shares of
<FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> redeemed, in whole at any time or in part from time to time, by the Corporation at a redemption price per share equal to the Liquidation Preference of such share as of the redemption date. Any
such redemption shall occur not more than 90&nbsp;days following receipt by the Corporation of a written election notice from the electing holder. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;<B>Optional Redemption by the Corporation</B>. The Corporation, at its option, may redeem, in whole at any time or
in part from time to time, the shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> at the time outstanding, upon notice given as provided in Section&nbsp;6(c) below, at a redemption price per share equal to the Liquidation Preference
of such share as of the redemption date. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(c)&nbsp;&nbsp;&nbsp;&nbsp;<B>Notice of Redemption</B>. Notice of every redemption of shares of <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> shall be given to the holders of record of the shares to be redeemed at their respective last addresses appearing on the books of the Corporation. Such mailing shall be at least 30 days and not more
than 60&nbsp;days before the date fixed for redemption. Any notice mailed as provided in </P>
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this Section&nbsp;6(c) shall be conclusively presumed to have been duly given, whether or not the holder receives such notice, but failure duly to give such notice by mail, or any defect in such
notice or in the mailing thereof, to any holder of shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> designated for redemption shall not affect the validity of the proceedings for the redemption of any other shares of <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1.</FONT> Each notice of redemption given to a holder shall state: (1)&nbsp;the redemption date; (2)&nbsp;the number of shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> to be redeemed and, if
less than all the shares held by such holder are to be redeemed, the number of such shares to be redeemed from such holder; and (3)&nbsp;the redemption price. To the extent that the provisions of any securities laws or regulations conflict with the
provisions of this Section&nbsp;6, the Corporation shall comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations under this Section&nbsp;6 by virtue thereof. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(d)&nbsp;&nbsp;&nbsp;&nbsp;<B>Partial Redemption</B>. In case of any redemption pursuant to Section&nbsp;6(b) of part of the shares of <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> at the time outstanding, the shares to be redeemed shall be selected<I> pro rata</I>&nbsp;among holders of the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1.</FONT> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(e)&nbsp;&nbsp;&nbsp;&nbsp;<B>Effectiveness of Redemption</B>. If notice of redemption has been duly given and if on or before the redemption
date specified in the notice all funds necessary for the redemption have been set aside for payment by the Corporation, then on and after the redemption date dividends shall cease to accrue on all shares so called for redemption, all shares so
called for redemption shall no longer be deemed outstanding and all rights with respect to such shares shall forthwith on such redemption date cease and terminate, except only the right of the holders thereof to receive the amount payable on such
redemption, without interest. Any funds unclaimed at the end of three years from the redemption date shall, to the extent permitted by law, be released to the Corporation, after which time the holders of the shares so called for redemption shall
look only to the Corporation for payment of the redemption price of such shares. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(f)&nbsp;&nbsp;&nbsp;&nbsp;<B>Settlement in Common
Stock</B>. Notwithstanding any other provisions of this Section&nbsp;6 (but subject to Section&nbsp;6(f)(ii)), (i)&nbsp;subject to the Corporation having the prior written consent of the electing holder of
<FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> (in the case of a redemption pursuant to Section&nbsp;6(a)) or the holders of a majority of the outstanding <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> (in the case of a redemption
pursuant to Section&nbsp;6(b)) and all other required approvals, including under any principal U.S. securities exchange or <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">over-the-counter</FONT></FONT> market on which the Common
Stock is then listed for trading, any redemption of shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> pursuant to this Section&nbsp;6 may be made, in lieu of some or all of the cash redemption payment, by the issuance of shares of
Common Stock having an aggregate Common Stock Price equal to the amount of the aggregate Liquidation Preference of such shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> being redeemed in shares of Common Stock in lieu of cash at the
redemption date; <U>provided</U>, that if the Corporation pays less than the total redemption price in shares of Common Stock, subject to receipt of the consent and approvals referenced above, such payment in shares of Common Stock shall be made<I>
pro rata</I> to the holders of shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> based upon the aggregate Liquidation Preference of the shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> held by each holder and the
remainder shall be paid in cash; and (ii)&nbsp;the electing holder of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> (in the case of a redemption pursuant to Section&nbsp;6(a)) or the holders of a majority of the outstanding <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> (in the case of a redemption pursuant to Section&nbsp;6(b)) shall be entitled in their sole discretion to require the Company to redeem the Participation Rights Value of each share of <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> subject to redemption pursuant to Section&nbsp;6(a) or Section&nbsp;6(b), </P>
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as applicable, by the issuance of a number of shares of Common Stock (or a warrant immediately exercisable at no cost into a number of shares of Common Stock) with respect to such share of <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> equal to the product of clauses (i)&nbsp;and (ii)&nbsp;of the definition of Participation Rights Value determined as of the date of redemption. Any such consent or election by the holder or holders
of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1,</FONT> as applicable, shall not be effective unless given to the Company in writing not later than 10 days following receipt by such holder or holders of a notice of redemption from the Company in
accordance with this Section&nbsp;6. Any failure to deliver such consent or election within such <FONT STYLE="white-space:nowrap">10-day</FONT> period shall be deemed to be a waiver of such holder&#146;s or holders&#146; right to consent or elect,
in which case the Company shall be entitled to redeem such <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> (including the Participation Rights Value) in cash or shares of Common Stock at the sole election of the Company. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;7.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Offer to Purchase Upon a Change of Control</B>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;In connection with the occurrence of a Change of Control, the Corporation shall make an offer to purchase all of the
shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> outstanding (a &#147;<U>Change of Control Offer</U>&#148;) on the terms set forth in this Section&nbsp;7. To the extent that the provisions of any securities laws or regulations
conflict with the provisions of this Section&nbsp;7, the Corporation shall comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations under this Section&nbsp;7 by virtue thereof. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;No sooner than 15&nbsp;days and within that time period, as soon as reasonably practicable, prior to the
consummation, or anticipated consummation, of a Change of Control, the Corporation shall commence the Change of Control Offer by delivering to each holder of shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> a notice, which shall
govern the terms of the Change of Control Offer, and shall state: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i)&nbsp;&nbsp;&nbsp;&nbsp;that the Change of Control
Offer is being made pursuant to this Section&nbsp;7 and that all shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> tendered will be accepted for payment subject to the consummation of the Change of Control; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii)&nbsp;&nbsp;&nbsp;&nbsp;the Change of Control Price and the date until which the Corporation may accept for payment shares
of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> (the &#147;<U>Change of Control Payment Date</U>&#148;), which shall be (subject to consummation of the Change of Control) no later than forty-five (45)&nbsp;days after the date the Change
of Control occurs; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iii)&nbsp;&nbsp;&nbsp;&nbsp;that any shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT>
not tendered for payment pursuant to the Change of Control Offer shall continue to accrue dividends and be redeemable in accordance with the terms hereof; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iv)&nbsp;&nbsp;&nbsp;&nbsp;that, unless the Corporation defaults in the payment of the Change of Control Price, all shares of <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> accepted for payment pursuant to the Change of Control Offer shall cease to accrue dividends on the Change of Control Payment Date; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(v)&nbsp;&nbsp;&nbsp;&nbsp;that any holder of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> represented by stock
certificates, in connection with the acceptance of a Change of Control Offer, shall be required to surrender such certificates representing shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> to the Corporation or its designated agent
at the address specified in the notice prior to the close of business on the Change of Control Payment Date; </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">-8- </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(vi)&nbsp;&nbsp;&nbsp;&nbsp;that any holder of a share of <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> shall be entitled to withdraw such election if the Corporation or its designated agent receives, not later than the close of business on the Change of Control Payment Date, electronic transmission or
letter setting forth the name of the holder of such shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1,</FONT> the number of shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> such holder delivered for purchase, and a
statement that such holder is withdrawing its election to have such shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> purchased; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(vii)&nbsp;&nbsp;&nbsp;&nbsp;the instructions that holders must follow in order to tender their shares of <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1;</FONT> and </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(viii)&nbsp;&nbsp;&nbsp;&nbsp;the circumstances and relevant facts
regarding such Change of Control. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(c)&nbsp;&nbsp;&nbsp;&nbsp;On the Change of Control Payment Date, the Corporation shall, to the extent
of funds legally available therefor and otherwise lawful, accept for payment the shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> tendered and not withdrawn pursuant to the Change of Control Offer. The Corporation shall promptly
mail to each holder of shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> so accepted payment (or pay in person any holder presenting itself at the Corporation) in an amount equal to the purchase price for such shares calculated in
accordance with the terms hereof, and the unpurchased shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> surrendered, if any. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(d)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any other provisions of this Section&nbsp;7 (but subject to Section&nbsp;7(d)(ii)), (i)&nbsp;subject
to the Corporation having obtained the prior written consent of the holders of a majority of the outstanding <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> and all other required approvals, including under any principal U.S. securities
exchange or <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">over-the-counter</FONT></FONT> market on which the Common Stock is then listed for trading, any redemption of shares of
<FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> pursuant to this Section&nbsp;7 may be made, in lieu of some or all of the cash redemption payment, by the issuance of shares of Common Stock having an aggregate Common Stock Price equal to the
aggregate Change of Control Price of such shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> being redeemed in shares of Common Stock in lieu of cash at the acceptance date;&nbsp;provided, that if the Corporation pays less than the
total Change of Control Price in shares of Common Stock, subject to receipt of the consent and approvals referenced above, such payment in shares of Common Stock shall be made<I> pro rata</I> to the holders of shares of <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> based upon the aggregate Change of Control Price of the shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> held by each holder and the remainder shall be paid in cash;, and
(ii)&nbsp;the holders of a majority of the outstanding <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> shall be entitled in their sole discretion to require the Company to redeem the Participation Rights Value of each share of <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> subject to redemption pursuant to this Section&nbsp;7 by the issuance of a number of shares of Common Stock (or a warrant immediately exercisable at no cost into a number of shares of Common Stock)
with respect to such share of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> equal to the product of clauses&nbsp;(i) and (ii) of the definition of Participation Rights Value determined as of the date of acceptance. Any such consent or
election by holders of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> shall not be effective unless given to the Company in writing not later than 10&nbsp;days following delivery of the Change of Control Offer. Any failure to deliver such
consent or election within such <FONT STYLE="white-space:nowrap">10-day</FONT> period shall be deemed to be a waiver of such holders&#146; right to consent or elect, in which case the Company shall be entitled to redeem such <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> (including the Participation Rights Value) in cash or shares of Common Stock at the sole election of the Company. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">-9- </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(e)&nbsp;&nbsp;&nbsp;&nbsp;The Corporation shall make a public announcement of the results
of the Change of Control Offer on or as soon as practicable after the Change of Control Payment Date. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(f)&nbsp;&nbsp;&nbsp;&nbsp;The
Corporation shall not enter into any agreement providing for a Change of Control unless the agreement permits the Corporation or any successor entity to comply with the provisions hereof. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;8.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Conversion</B>. Holders of
<FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> shares shall have no right to exchange or convert <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> into any other securities. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;9.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Voting Rights</B>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;<B>General</B>. Except as otherwise set forth in this Section&nbsp;9 and where required pursuant to the Certificate
of Incorporation or pursuant to applicable law, <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> shall not have any relative, participating, optional or other voting rights or powers, and consent of the holders of the <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> shall not be required for the taking of any action by the Corporation. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;<B>Voting Rights as to Particular Matters</B>. Subject to the other provisions of this Section&nbsp;9, so long as
any shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> are outstanding, in addition to any other vote or consent of stockholders required by law or by the Certificate of Incorporation, the vote or consent of the holders of a majority
of the shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> at the time outstanding and entitled to vote thereon, given in person or by proxy, either in writing without a meeting or by vote at any meeting called for the purpose, shall
be necessary for effecting or validating: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i)&nbsp;&nbsp;&nbsp;&nbsp;The issuance of any shares of <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> or any amendment or alteration of the Certificate of Incorporation to authorize or create, or increase or decrease the authorized amount of, any shares of
<FONT STYLE="white-space:nowrap">Series&nbsp;E-1;</FONT> </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii)&nbsp;&nbsp;&nbsp;&nbsp;Any amendment or alteration of the
Certificate of Incorporation to authorize or create, or increase the authorized amount of, or otherwise effectuate the issuance of, any shares of any class or series of capital stock of the Corporation ranking<I>&nbsp;pari passu</I>&nbsp;with or
senior to the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> with respect to either or both the payment of dividends or the distribution of assets on any liquidation, dissolution or winding up of the Corporation or a Change of Control; and
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iii)&nbsp;&nbsp;&nbsp;&nbsp;Any amendment, alteration or repeal of any provision of the Certificate of Incorporation so
as to adversely affect the powers, preferences or special rights of the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1.</FONT> </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">-10- </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(c)&nbsp;&nbsp;&nbsp;&nbsp;<B>No Vote Required</B>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i)&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this Certificate of Designations but without limiting the other provisions of this
Section&nbsp;9, none of the following (in and of itself) shall be deemed to adversely affect the powers, preferences or special rights of the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1:</FONT> (A)&nbsp;any amendment, alteration or repeal of
any provision of the Certificate of Incorporation so as to authorize or create, or increase the authorized amount of, any Junior Stock and (B)&nbsp;any filing with the Delaware Secretary of State by the Corporation, including in connection with a
merger, consolidation or otherwise, in which (x)&nbsp;the Corporation is the surviving entity and the shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> remain outstanding with the terms thereof unchanged in any respect adverse to the
holders thereof, (y)&nbsp;the resulting, surviving or transferee entity is organized under the laws of any state and substitutes or exchanges the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> for other preferred equity or shares having
powers, preferences and special rights identical to that of the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> (except for changes that do not adversely affect the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1),</FONT> or (z)&nbsp;upon
effectiveness of such merger, consolidation or other transaction giving rise to the filing, the holders of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> will be entitled to receive in exchange for their
<FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> without further action by such holder cash consideration equal to the redemption price described under Section&nbsp;6 above and funds sufficient to pay such redemption price for all shares of <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> will be set aside for payment. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii)&nbsp;&nbsp;&nbsp;&nbsp;The voting
provisions in Section&nbsp;9(b) will not apply with respect to the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> if, at or before the time when the act with respect to which the vote would otherwise be required is effected, shares of <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> are subject to either (i)&nbsp;a notice of redemption in full pursuant to the provisions described under Section&nbsp;6 and funds sufficient to pay the redemption price in full specified therein for
all of such shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> called for redemption have been set aside for payment or (ii)&nbsp;a Change of Control Offer which has been properly exercised and not withdrawn. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(d)&nbsp;&nbsp;&nbsp;&nbsp;<B>Procedures for Voting and Consents</B>. The rules and procedures for calling and conducting any meeting of the
holders of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> (including, without limitation, the fixing of a record date in connection therewith), the solicitation and use of proxies at such a meeting, the obtaining of written consents and any
other aspect or matter with regard to such a meeting or such consents shall be governed by any rules of the Board of Directors, in its discretion, may adopt from time to time, which rules and procedures shall conform to the requirements of the
Certificate of Incorporation, the Bylaws, and applicable law and the rules of any national securities exchange or other trading facility on which the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> is listed or traded at the time. A holder
of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> shall be entitled to one vote per each whole share of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> on any matter on which the holders of shares of
<FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> are entitled to vote. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;10.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Record Holders</B>. To the fullest extent permitted by applicable law, the
Corporation may deem and treat the record holder of any share of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> as the true and lawful owner thereof for all purposes, and the Corporation shall not be affected by any notice to the contrary.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;11.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Notices</B>. All notices or communications in respect of <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> shall be sufficiently given if given in writing and delivered in person or by fax, overnight or certified mail, or if given in such other manner as may be permitted in this Certificate of
Designations, in the Certificate of Incorporation or Bylaws or by applicable law. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">-11- </P>

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share of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> shall have any rights of preemption whatsoever as to any securities of the Corporation, or any warrants, rights or options issued or granted with respect thereto, regardless of how
such securities, or such warrants, rights or options, may be designated, issued or granted. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;13.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Replacement Certificates</B>. If the
<FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> is certificated, the Corporation shall replace any mutilated certificate at the holder&#146;s expense upon surrender of that certificate to the Corporation. The Corporation shall replace
certificates that become destroyed, stolen or lost at the holder&#146;s expense upon delivery to the Corporation of reasonably satisfactory evidence that the certificate has been destroyed, stolen or lost, together with any indemnity that may be
reasonably required by the Corporation. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;14.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Other Rights</B>. The shares of <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> shall not have any rights, preferences, privileges or voting powers or relative, participating, optional or other special rights, or qualifications, limitations or restrictions thereof, other than as
set forth herein or in the Certificate of Incorporation or as provided by applicable law. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;15.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Fractional Shares</B>. If any redemption of
<FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> would result in the issuance of a fractional share of Common Stock (aggregating all shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> being redeemed by a holder), such
fractional share shall be payable in cash based upon the Common Stock Price at such time, and the number of shares of Common Stock issuable upon redemption of the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> shall be the next lower whole
number of shares. If the Corporation elects not to, or is unable to, make such a cash payment, the holder shall be entitled to receive, in lieu of the final fraction of a share, one whole share of Common Stock. No fractional shares of <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> shall be issued in connection with any transfer of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> or otherwise. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><I>[Signature Page Follows] </I></P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">IN WITNESS WHEREOF, LSB&nbsp;INDUSTRIES, INC. has caused this certificate to be signed this
18th&nbsp;day of October, 2018. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3"><B>LSB&nbsp;INDUSTRIES, INC.</B></TD></TR>
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<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Daniel D. Greenwell</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Name:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Daniel D. Greenwell</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Title:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">President and Chief Executive Officer</TD></TR>
</TABLE></DIV> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">S<SMALL>IGNATURE</SMALL> P<SMALL>AGE</SMALL> <SMALL>TO</SMALL> C<SMALL>ERTIFICATE</SMALL>
<SMALL>OF</SMALL> D<SMALL>ESIGNATIONS</SMALL> <SMALL>OF</SMALL> S<SMALL>ERIES</SMALL>&nbsp;E-1 P<SMALL>REFERRED</SMALL> </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit&nbsp;4.2 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>CERTIFICATE OF DESIGNATIONS </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>OF </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SERIES <FONT
STYLE="white-space:nowrap">F-1</FONT> REDEEMABLE CLASS C PREFERRED STOCK </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>OF </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>LSB&nbsp;INDUSTRIES, INC. </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>LSB&nbsp;INDUSTRIES, INC.,</B> a corporation organized and existing under the General Corporation Law of the State of Delaware (the
&#147;<U>Corporation</U>&#148;), in accordance with the provisions of Sections&nbsp;103 and 151 thereof, DOES HEREBY CERTIFY: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The board
of directors of the Corporation (the &#147;<U>Board of Directors</U>&#148;), in accordance with the provisions of the Restated Certificate of Incorporation of the Corporation (as amended from time to time, the &#147;<U>Restated Certificate of
Incorporation</U>&#148;) and the Amended and Restated Bylaws of the Corporation and applicable law, at a meeting duly called and held on October&nbsp;16, 2018, adopted the following resolution relating to the creation and issuance of a new series of
Class&nbsp;C Preferred Stock: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>RESOLVED</B>, that pursuant to the authority vested in the Board of Directors and in accordance with the
provisions of the Restated Certificate of Incorporation and applicable law, a series of Class&nbsp;C Preferred Stock, having no par value per share, of the Corporation be and hereby is created, and that the designation and number of shares of such
series, and the voting and other powers, preferences and relative, participating, optional or other rights, and the qualifications, limitations and restrictions thereof (in addition to those set forth in the Certificate of Incorporation that are
applicable to Preferred Stock of all series and to Class&nbsp;C Preferred Stock of all series), of the shares of such series, are as follows: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;1.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Designation; Rank</B>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(a)</B>&nbsp;&nbsp;&nbsp;&nbsp;The distinctive serial designation of the series of Class&nbsp;C Preferred Stock is &#147;<U><FONT
STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> Redeemable Class</U><U></U><U>&nbsp;C Preferred Stock</U>&#148; (&#147;<U><FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT></U>&#148;). </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(b)</B>&nbsp;&nbsp;&nbsp;&nbsp;With respect to the distribution of assets upon liquidation, dissolution or winding up of the Corporation,
whether voluntary or involuntary, the share of <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> shall rank senior to the Common Stock and shall rank junior to the Corporation&#146;s Series&nbsp;B 12% Cumulative Convertible Preferred Stock,
Series&nbsp;D 6% Cumulative Convertible Class&nbsp;C Preferred Stock, Series&nbsp;4 Junior Participating Class&nbsp;C Preferred Stock, <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Cumulative Redeemable Class&nbsp;C Preferred Stock and any
other class or series of stock of the Corporation hereafter created (subject to Section&nbsp;8(b)) that specifically ranks senior to the <FONT STYLE="white-space:nowrap">Series&nbsp;F-1.</FONT> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;2.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Number of Shares</B>. The authorized number of shares of <FONT
STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> shall be one (1). If the share of <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> is redeemed, purchased or otherwise acquired by the Corporation, or converted into another class or series of
capital stock of the Corporation, such share shall be cancelled and retired and revert to authorized but unissued shares of Class&nbsp;C Preferred Stock (<I>provided</I> that such cancelled share may be reissued only as a share of any series other
than <FONT STYLE="white-space:nowrap">Series&nbsp;F-1).</FONT> </P>
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herein with respect to <FONT STYLE="white-space:nowrap">Series&nbsp;F-1:</FONT> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(a)</B>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Bylaws</U>&#148; means the Amended and Restated Bylaws of the Corporation, as they may be amended
from time to time. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(b)</B>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Business Day</U>&#148; means a day, other than Saturday, Sunday or any other
day on which banking institutions in New York, New York generally are authorized or obligated by law, regulation or executive order to close. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(c)</B>&nbsp;&nbsp;&nbsp;&nbsp; &#147;<U>Certificate of Designations</U>&#148; means this Certificate of Designations relating to <FONT
STYLE="white-space:nowrap">Series&nbsp;F-1,</FONT> as it may be amended from time to time. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(d)</B>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Certificate of Incorporation</U>&#148; means the Restated Certificate of Incorporation of the
Corporation, as it may be amended from time to time, and shall include this Certificate of Designations and any other certificate of designations representing preferred stock of the Corporation. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(e)</B>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Common Stock</U>&#148; means (i)&nbsp;the common stock, $0.10 par value per share, of the
Corporation and (ii)&nbsp;any share capital into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common Stock. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(f)</B>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Liquidation Value</U>&#148; means $100. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(g)</B>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Person</U>&#148; means any individual, corporation, limited liability company, partnership, joint
venture, association, joint stock company, trust, unincorporated organization, or government or any agency or political subdivision thereof. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(h)</B>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Redemption Price</U>&#148; means $0.01. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(i)</B>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Securities Purchase Agreement</U>&#148; means that certain Securities Purchase Agreement dated as of
December&nbsp;4, 2015 between the Corporation and the purchaser named therein, as it may be amended from time to time. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(j)</B>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT></U>&#148; means the Corporation&#146;s <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Cumulative Redeemable Class&nbsp;C Preferred Stock, no par value per share. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(k)</B>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Certificate of Designations</U>&#148; means
the Certificate of Designations of the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1,</FONT> as it may be amended from time to time in accordance with the terms, conditions and limitations thereof and of the Securities Purchase Agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;4.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Dividends.</B> No dividends shall be payable in respect of the <FONT
STYLE="white-space:nowrap">Series&nbsp;F-1.</FONT> </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;5.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Liquidation Rights</B>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(a)</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Voluntary or Involuntary Liquidation</B>. In the event of any liquidation, dissolution or winding up of
the affairs of the Corporation, whether voluntary or involuntary, the holder of <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> shall be entitled to receive for the share of <FONT STYLE="white-space:nowrap">Series&nbsp;F-1,</FONT> out of the
assets of the Corporation or proceeds thereof (whether capital or surplus) available for distribution to stockholders of the Corporation, and after satisfaction of all liabilities and obligations to creditors of the Corporation, before any
distribution of such assets or proceeds is made to or set aside for the holders of Common Stock and any other class of stock ranking junior to the <FONT STYLE="white-space:nowrap">Series&nbsp;F-1,</FONT> payment in full in an amount equal to the
Liquidation Value, and no more. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(b)</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Residual Distributions</B>. If the Liquidation Value has been paid in
full to the holder of <FONT STYLE="white-space:nowrap">Series&nbsp;F-1,</FONT> the holders of other stock of the Corporation shall be entitled to receive all remaining assets of the Corporation (or proceeds thereof) according to their respective
rights and preferences. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(c)</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Merger, Consolidation and Sale of Assets Not Liquidation</B><I>. </I>For
purposes of this Section&nbsp;5, the merger or consolidation of the Corporation with any other corporation or other entity, or the sale, lease or exchange (for cash, securities or other property) of all or substantially all of the assets of the
Corporation, shall not constitute a liquidation, dissolution or winding up of the Corporation. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;6.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Redemption</B>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(a)</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Automatic Redemption by the Corporation</B>. The <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT>
share shall be automatically redeemed by the Corporation, in whole and not in part, for the Redemption Price in accordance with this Section&nbsp;6 immediately following the date upon which the Voting Rights (as defined in Section&nbsp;8(a) below)
have been reduced to zero. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(b)</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Notice of Redemption</B>. Notice of redemption of the <FONT
STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> share specifying the redemption date shall be given to the holder of record of the share to be redeemed at its last address appearing on the books of the Corporation. Such mailing shall be no more
than 30 days following the date specified in Section&nbsp;6(a). Any notice mailed as provided in this Section&nbsp;6(b) shall be conclusively presumed to have been duly given, whether or not the holder receives such notice, but failure duly to give
such notice by mail, or any defect in such notice or in the mailing thereof, to such holder shall not affect the validity of the proceedings for the redemption. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(c)</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Effectiveness of Redemption</B>. If notice of redemption has been duly given and if on or before the
redemption date specified in the notice all funds necessary for the redemption have been set aside for payment by the Corporation, then on and after the redemption date the share so called for redemption shall no longer be deemed outstanding and all
rights with respect to such share shall forthwith on such redemption date cease and terminate, except only the right of the holder thereof to receive the amount payable on such redemption, without interest. Any funds unclaimed at the end of three
years from the redemption date shall, to the extent permitted by law, be released to the Corporation, after which time the holder of the share so called for redemption shall look only to the Corporation for payment of the redemption price of such
share. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">-3- </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(d)</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Involuntary Redemption</B>. Other than as set forth in
Section&nbsp;6(a) above, the <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> shall not be subject to redemption by the Corporation without the prior written consent of the holders of the
<FONT STYLE="white-space:nowrap">Series&nbsp;F-1.</FONT> </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(e)</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Tender of Certificates</B>. Upon any
redemption of <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> in accordance with this Section&nbsp;6, the holder of the share of <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> shall tender to the Corporation any certificates
representing <FONT STYLE="white-space:nowrap">Series&nbsp;F-1.</FONT> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;7.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Conversion</B>. The holder of the share of
<FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> shall have no right to exchange or convert such share into any other securities. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;8.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Voting Rights</B>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(a)</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>General</B>. The share of <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> shall be entitled to
vote upon all matters upon which holders of any class or classes of Common Stock have the right to vote, and shall be entitled to a number of votes (the &#147;<U>Voting Rights</U>&#148;) equal to 456,225&nbsp;shares of Common Stock (subject to
adjustment for any stock split, stock dividend, stock combination or similar transaction); <I>provided, however, </I>the number of votes which may be cast by the <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> share shall be reduced
automatically as follows upon the occurrence of the specified event: (a)&nbsp;upon the redemption or exchange of each share of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> for Common Stock, the Voting Rights shall be reduced by a number
of shares of Common Stock equal to the product of clauses&nbsp;(i) and (ii) of the definition of Participation Rights Value in the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Certificate of Designations, and (b)&nbsp;redemption or
exchange in full of all shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> for Common Stock, cash or otherwise, the Voting Rights shall be reduced to zero. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(b)</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Voting Rights as to Particular Matters</B>. Subject to the other provisions of this Section&nbsp;8, so
long as the share of <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> is outstanding, in addition to any other vote or consent of stockholders required by law or by the Certificate of Incorporation, the vote or consent of the holder of such
share and entitled to vote thereon, given in person or by proxy, either in writing without a meeting or by vote at any meeting called for the purpose, shall be necessary for effecting or validating: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i)&nbsp;&nbsp;&nbsp;&nbsp;Issuance of any shares of <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> or any amendment
or alteration of the Certificate of Incorporation to authorize or create, or increase or decrease the authorized amount of, any shares of <FONT STYLE="white-space:nowrap">Series&nbsp;F-1;</FONT> and </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii)&nbsp;&nbsp;&nbsp;&nbsp;Any amendment, alteration or repeal of any provision of the Certificate of Incorporation so as to
adversely affect the powers, preferences or special rights of the <FONT STYLE="white-space:nowrap">Series&nbsp;F-1.</FONT> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(c)</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>No Vote Required</B>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i)&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this Certificate of Designations, but without limiting the other provisions of this
Section&nbsp;8, none of the following (in and of itself) shall be deemed to adversely affect the powers, preferences or special rights </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">-4- </P>

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of the <FONT STYLE="white-space:nowrap">Series&nbsp;F-1:</FONT> (A)&nbsp;any amendment, alteration or repeal of any provision of the Certificate of Incorporation so as to authorize or create, or
increase the authorized amount of, any capital stock of the Corporation and (B)&nbsp;any filing with the Delaware Secretary of State by the Corporation, including in connection with a merger, consolidation or otherwise, in which (x)&nbsp;the
Corporation is the surviving entity and the share of <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> remains outstanding with the terms thereof materially unchanged in any respect adverse to the holder thereof, or (y)&nbsp;the resulting,
surviving or transferee entity is organized under the laws of any state and substitutes or exchanges the <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> for other preferred equity or shares having powers, preferences and special rights
identical to that of the <FONT STYLE="white-space:nowrap">Series&nbsp;F-1.</FONT> </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii)&nbsp;&nbsp;&nbsp;&nbsp;The voting
provisions in Section&nbsp;8(b) will not apply with respect to the <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> if, at or before the time when the act with respect to which the vote would otherwise be required is effected, the share of <FONT
STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> has been effectively redeemed in full pursuant to the provisions described under Section&nbsp;6 and funds sufficient to pay the redemption price specified therein in full for such share has been set
aside for payment. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>(d)</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Procedures for Voting and Consents</B>. The rules and procedures for calling and
conducting any meeting of the holder of <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> (including, without limitation, the fixing of a record date in connection therewith), the solicitation and use of proxies at such a meeting, the
obtaining of written consents and any other aspect or matter with regard to such a meeting or such consents shall be governed by any rules of the Board of Directors, in its discretion, may adopt from time to time, which rules and procedures shall
conform to the requirements of the Certificate of Incorporation, the Bylaws, and applicable law and the rules of any national securities exchange or other trading facility on which the <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> is
listed or traded at the time. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;9.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Record Holders</B>. To the fullest extent
permitted by applicable law, the Corporation may deem and treat the record holder of any share of <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> as the true and lawful owner thereof for all purposes, and the Corporation shall not be
affected by any notice to the contrary. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;10.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Notices</B>. All notices or
communications in respect of <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> shall be sufficiently given if given in writing and delivered in person or by fax, overnight or certified mail, or if given in such other manner as may be permitted
in this Certificate of Designations, in the Certificate of Incorporation or Bylaws or by applicable law. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;11.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>No Preemptive Rights</B>. No share of
<FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> shall have any rights of preemption whatsoever as to any securities of the Corporation, or any warrants, rights or options issued or granted with respect thereto, regardless of how such
securities, or such warrants, rights or options, may be designated, issued or granted. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;12.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Replacement Certificates</B>. If the
<FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> is certificated, the Corporation shall replace any mutilated certificate at the holder&#146;s expense upon surrender of that certificate to the Corporation. The Corporation shall replace
certificates that become destroyed, stolen or lost at the holder&#146;s expense upon delivery to the Corporation of reasonably satisfactory evidence that the certificate has been destroyed, stolen or lost, together with any indemnity that may be
reasonably required by the Corporation. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">-5- </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Section</B><B></B><B>&nbsp;13.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>Other Rights</B>. The shares
of <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> shall not have any rights, preferences, privileges or voting powers or relative, participating, optional or other special rights, or qualifications, limitations or restrictions thereof,
other than as set forth herein or in the Certificate of Incorporation or as provided by applicable law. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><I>[Signature Page Follows]
</I></P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">IN WITNESS WHEREOF, LSB&nbsp;INDUSTRIES, INC. has caused this certificate to be signed this
18th day of October, 2018. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


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<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="87%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3"><B>LSB&nbsp;INDUSTRIES, INC.</B></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Daniel D. Greenwell</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Name:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Daniel D. Greenwell</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Title:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">President and Chief Executive Officer</TD></TR>
</TABLE></DIV> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">S<SMALL>IGNATURE</SMALL> P<SMALL>AGE</SMALL> <SMALL>TO</SMALL> C<SMALL>ERTIFICATE</SMALL>
<SMALL>OF</SMALL> D<SMALL>ESIGNATIONS</SMALL> <SMALL>OF</SMALL> S<SMALL>ERIES</SMALL>&nbsp;F-1 P<SMALL>REFERRED</SMALL> S<SMALL>TOCK</SMALL> </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit&nbsp;10.1 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Execution Version </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>LSB&nbsp;INDUSTRIES, INC. </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES EXCHANGE AGREEMENT </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This Securities Exchange Agreement (this &#147;<B><I>Agreement</I></B>&#148;) is made as of October&nbsp;18, 2018, by and between
LSB&nbsp;Industries, Inc., a Delaware corporation (the &#147;<B><I>Company</I></B>&#148;), and LSB&nbsp;Funding LLC, a Delaware limited liability company (the &#147;<B><I>Holder</I></B>&#148;). Capitalized terms not otherwise defined herein have the
meanings given such terms in <U>Section</U><U></U><U>&nbsp;1.3</U> below. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, the Company, the Holder and, solely for purposes of
Section&nbsp;7.12 thereunder, Security Benefit Corporation, a Kansas corporation, entered into that certain Securities Purchase Agreement, dated as of December&nbsp;4, 2015 (as amended or modified from time to time, the &#147;<B><I>Purchase
Agreement</I></B>&#148;), pursuant to which, in relevant part, the Holder purchased 210,000&nbsp;shares of the Company&#146;s Series&nbsp;E Cumulative Redeemable Class&nbsp;C Preferred Stock (the &#147;<B><I>Series&nbsp;E Preferred</I></B>&#148;)
and one (1)&nbsp;share of the Company&#146;s Series&nbsp;F Redeemable Class&nbsp;C Preferred Stock (the &#147;<B><I>Series&nbsp;F Preferred</I></B>&#148; and together with the Series&nbsp;E Preferred, the &#147;<B><I>Existing
Preferred</I></B>&#148;). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, on September&nbsp;19, 2016, the Company redeemed 70,232&nbsp;shares of Series&nbsp;E Preferred, with
the result that 139,768&nbsp;shares of Series&nbsp;E Preferred remain outstanding as of the date hereof. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, the Holder and the
Company previously entered into an Amended and Restated Letter Agreement, effective as of April&nbsp;25, 2018 (the &#147;<B><I>Letter Agreement</I></B>&#148;). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, as contemplated by Section&nbsp;3(a)(ii) of the Letter Agreement, the Holder and the Company desire to exchange the Holder&#146;s
(i)&nbsp;Series&nbsp;E Preferred for newly issued shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Cumulative Redeemable Class&nbsp;C Preferred Stock (the &#147;<B><I><FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT>
Preferred</I></B>&#148;) and (ii)&nbsp;Series&nbsp;F Preferred for newly issued shares of <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> Redeemable Class&nbsp;C Preferred Stock (the
&#147;<B><I><FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> Preferred</I></B>&#148; and together with the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Preferred, the &#147;<B><I>New Preferred</I></B>&#148;), in each case on a <FONT
STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">one-for-one</FONT></FONT> basis. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>1.&nbsp;&nbsp;&nbsp;&nbsp;<U>EXCHANGE OF EXISTING PREFERRED FOR NEW PREFERRED</U>. </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>1.1</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Exchange of Existing Preferred</U></B><B>. </B>On the terms and subject to the conditions of this
Agreement, the Holder hereby agrees that, effective at and contingent upon the Closing, (a)&nbsp;each one (1)&nbsp;share of Series&nbsp;E Preferred held by the Holder as of immediately prior to the Closing shall be automatically exchanged for one
(1)&nbsp;share of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Preferred, such that immediately following the Closing, the Holder shall hold 139,768&nbsp;shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Preferred and
(b)&nbsp;the one (1)&nbsp;share of Series&nbsp;F Preferred held by the Holder as of immediately prior to the Closing shall be automatically exchanged for one (1)&nbsp;share of <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> Preferred, such
that immediately following the Closing, the Holder shall hold one (1)&nbsp;share of <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> Preferred (such transactions, the &#147;<B><I>Exchange</I></B>&#148;). All Existing Preferred surrendered for
exchange shall no longer be deemed to be outstanding and all rights with respect to such Existing Preferred </P>
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shall immediately cease and terminate at the Closing, except only the right of the Holder to receive shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Preferred or <FONT
STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> Preferred, as applicable, in exchange therefor (notwithstanding the failure of the Holder to surrender the certificates representing shares of Series&nbsp;E Preferred or Series&nbsp;F Preferred, as
applicable, at or prior to the Closing). </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>1.2&nbsp;&nbsp;&nbsp;&nbsp;<U>Closing; Delivery</U>. </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">1.2.1&nbsp;&nbsp;&nbsp;&nbsp;The<B> </B>Exchange shall take place remotely via the exchange of documents and signatures on the date of this
Agreement or at such other time and place as the Company and the Holder mutually agree upon, orally or in writing (the time and place at which the Exchange actually occurs being referred to as the &#147;<B><I>Closing</I></B>&#148;). </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">1.2.2&nbsp;&nbsp;&nbsp;&nbsp;At the Closing, the Holder shall deliver its certificates representing the 139,768&nbsp;shares of Series&nbsp;E
Preferred and one (1)&nbsp;share of Series&nbsp;F Preferred (or, as applicable, Lost Security Documentation in respect thereof) and, in exchange therefor, promptly following Closing (but in no event more than three (3)&nbsp;business days following
Closing), the Company shall issue to the Holder certificates representing the 139,768&nbsp;shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Preferred and one (1)&nbsp;share of <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT>
Preferred, respectively, to which the Holder is entitled. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>1.3</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Defined Terms Used in this
Agreement</U></B><B>.</B> In addition to the terms defined elsewhere in this Agreement, the following terms used in this Agreement shall be construed to have the meanings set forth or referenced below. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">&#147;<B><I>Lost Security Documentation</I></B>&#148; means documentation reasonably satisfactory to the Company with regard to a lost or
stolen certificate evidencing ownership of Existing Preferred including, if required by the Company, an affidavit of lost security in favor of the Company with respect to such lost or stolen security. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">&#147;<B><I>Registration Rights Agreement</I></B>&#148; means that certain Registration Rights Agreement, by and between the Company and the
Holder, dated as of December&nbsp;4, 2015, as amended from time to time. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">&#147;<B><I>Securities Act</I></B>&#148; means the United States
Securities Act of 1933, as amended, and the rules and regulations promulgated by the Securities and Exchange Commission thereunder. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>2.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>REPRESENTATIONS AND WARRANTIES OF THE COMPANY</U></B><B>.</B><B> </B>The Company represents and
warrants to the Holder as of the Closing as follows: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>2.1</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Organization and Good Standing</U></B><B>.
</B>The Company is a validly existing corporation in good standing under the laws of the State of Delaware. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>2.2</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Authorization</U></B><B>.</B> The Company has full power and authority to enter into this Agreement,
and this Agreement constitutes the Company&#146;s valid and legally binding obligation, enforceable against the Company in accordance with its terms, except as may be limited by (i)&nbsp;applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors&#146; rights generally or (ii)&nbsp;laws relating to the availability of specific performance, injunctive relief or other equitable remedies, regardless of whether considered
in a proceeding at law or in equity. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>2.3</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Valid Issuance of Shares; Priority</U></B><B>.</B>
The New Preferred has been duly authorized and when issued, exchanged and delivered in accordance with the terms of this Agreement for the consideration expressed herein, will be duly and validly issued, fully paid, and nonassessable, free and clear
of any preemptive or other similar rights or any other liens or encumbrances imposed by the Company. The Series&nbsp;E Preferred shall, at issuance, rank senior to all other outstanding or authorized capital stock of the Company with respect to
either or both the payment of dividends and the distribution of assets on any liquidation, dissolution or winding up of the Company or a change of control thereof. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>2.4</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>No Conflicts</U></B>. The execution, delivery and performance of this Agreement by the Company and the
consummation by the Company of the transactions contemplated hereby (including the issuance of the New Preferred) do not and will not (a)&nbsp;result in a violation of the Restated Certificate of Incorporation or Bylaws of the Company,
(b)&nbsp;conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture
or instrument to which the Company or any of its subsidiaries is a party, or (c)&nbsp;assuming the accuracy of the Holder&#146;s representations and warranties set forth in <U>Section</U><U></U><U>&nbsp;3</U> hereof, result in a violation of any
law, rule, regulation, order, judgment or decree (including, without limitation, U.S. federal and state securities laws and regulations) applicable to the Company, or by which any property or asset of the Company is bound or affected, except, in the
case of the foregoing clauses&nbsp;(b) and (c), for such conflicts, defaults, violations, terminations, amendments, accelerations, and cancellations as would not, individually or in the aggregate, have a material adverse effect on the Company&#146;s
business, operations, financial condition or properties. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>2.5</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Approvals</U></B>. Except for
(a)&nbsp;the filing of the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Preferred Certificate of Designations and the <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> Certificate of Designations with the Secretary of State of the
State of Delaware and (b)&nbsp;as may be required under the Exchange Act, state securities Laws or &#147;Blue Sky&#148; Laws or the rules of the New York Stock Exchange, no permit, consent, approval, exemption, authorization, order, registration,
filing or qualification of or with any governmental authority or any other person (each, a &#147;<B><I>Required Approval</I></B>&#148;) is necessary or required in connection with the execution, delivery or performance by, or enforcement against,
the Company of this Agreement or the Company&#146;s issuance of the New Preferred, except for such Required Approvals that have already been made or obtained or will be made or obtained contemporaneously with the Closing. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>3.</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>REPRESENTATIONS AND WARRANTIES OF THE HOLDER</U></B><B>. </B>The Holder represents and warrants to the
Company as of the Closing as follows: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>3.1</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Ownership</U></B>. The Holder is the sole legal and
beneficial owner of the Existing Preferred, free and clear of any and all any liens, security interests, restrictions, options or encumbrances. The Holder has sole right, title and interest in the Existing Preferred and there have been no
assignments or other transfers by the Holder of any interest whatsoever in the Existing Preferred. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>3.2</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Authorization</U></B>. The Holder has full power and
authority to enter into this Agreement, and this Agreement constitutes the Holder&#146;s valid and legally binding obligation, enforceable against the Holder in accordance with its terms, except as may be limited by (i)&nbsp;applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors&#146; rights generally or (ii)&nbsp;laws relating to the availability of specific performance, injunctive relief or other equitable
remedies, regardless of whether considered in a proceeding at law or in equity. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>3.3</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>No
Conflicts</U></B>. There are no agreements, understandings, laws, statutes, rules or regulations or other restrictions of any kind to which the Holder is party or subject that would prevent or restrict in any material respect the execution, delivery
or performance of this Agreement by Holder. To the Holder&#146;s knowledge, no consent or approval of any person, court or governmental authority is necessary by the Holder to transfer the Existing Preferred and consummate the Exchange. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>3.4</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Disclosure of Information</U></B>. The Holder has received all the information it considers necessary
or appropriate for deciding whether to acquire the New Preferred. The Holder further represents that it has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the transactions contemplated
in this Agreement and the business, properties, prospects and financial condition of the Company. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>3.5</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Accredited Investor</U></B><B>.</B> The Holder is an accredited investor as defined in Rule 501(a) of
Regulation&nbsp;D promulgated under the Securities Act. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>3.6</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Restricted Securities</U></B>. The Holder
understands that the New Preferred has not been and will not be registered under the Securities Act by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature
of the investment intent and the accuracy of the Holder&#146;s representations as expressed herein. The Holder understands that the New Preferred are &#147;restricted securities&#148; under applicable U.S. federal and state securities laws and that,
pursuant to these laws, the Holder must hold the New Preferred indefinitely unless they are registered with the Securities and Exchange Commission and qualified by state authorities, or an exemption from such registration and qualification
requirements is available. The Holder acknowledges that the Company has no obligation to register or qualify the New Preferred, or any securities into which the New Preferred may be converted, exchanged or exercised, for resale, other than the
Participation Common Stock (as defined in the Certificate of Designation for the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Preferred). The Holder further acknowledges that if an exemption from registration or qualification is
available, it may be conditioned on various requirements, including, but not limited to, the time and manner of sale, the holding period for the New Preferred, and on requirements relating to the Company which are outside of the Holder&#146;s
control, and which the Company is under no obligation and may not be able to satisfy. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>3.7</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>No Public
Market</U></B>. The Holder understands that no public market now exists for the New Preferred, and that the Company has made no assurances that a public market will ever exist for the New Preferred. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>3.8</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Legends</U></B>. The Holder understands that the New
Preferred, and any securities issued in respect of or exchange for the New Preferred, may bear any one or more of the following legends: (a)&nbsp;any legend set forth in, or required by any other agreement between the Holder and the Company
affecting the New Preferred; (b)&nbsp;any legend required by the securities laws of any state to the extent such laws are applicable to the New Preferred represented by the certificate so legended; and (c)&nbsp;the following legend: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; margin-right:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman"><I>&#147;</I>THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OR UNDER ANY STATE SECURITIES OR BLUE SKY LAWS. THE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND
APPLICABLE STATE SECURITIES OR BLUE SKY LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. THE COMPANY MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT THAT ANY PROPOSED TRANSFER IS IN
COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES OR BLUE SKY LAWS. TRANSFER OF THE SECURITIES IS ALSO SUBJECT TO THE TRANSFER RESTRICTIONS PROVIDED FOR IN THE SECURITIES EXCHANGE AGREEMENT, DATED AS OF OCTOBER&nbsp;18, 2018, AS
MAY BE AMENDED FROM TIME TO TIME, A COPY OF WHICH IS AVAILABLE FROM THE SECRETARY OF THE COMPANY.&#148; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>3.9</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Tax and Legal Matters</U></B>. The Holder hereby acknowledges that the Company has not provided the
Holder with any tax advice with respect to the Exchange, the issuance of the New Preferred to the Holder pursuant to the Exchange (or the tax consequences thereto) or the other transactions described herein, and no such advice has been implied. The
Holder has sought such tax and legal advice as it has deemed necessary in connection with the execution of this Agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>4.&nbsp;&nbsp;&nbsp;&nbsp;<U>GENERAL PROVISIONS</U>. </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>4.1</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Binding Effect; Successors and Assigns</U></B><B>.</B> The terms and conditions of this Agreement shall
be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their
respective successors and permitted assigns any rights, remedies, obligations, or&nbsp;liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>4.2</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Governing Law</U></B><B>.</B> This Agreement shall be governed by the internal laws of the State of
Delaware. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>4.3</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Counterparts; Facsimile</U></B><B>.</B> This
Agreement may be executed and delivered by facsimile signature and in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via
facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, <I>e.g.</I>, www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly
and validly delivered and be valid and effective for all purposes. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>4.4</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Titles and
Subtitles</U></B><B>.</B> The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>4.5</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Notices</U></B><B>.</B> All notices, demands and other communications provided for hereunder shall be
in writing and shall be given by registered or certified mail, return receipt requested, facsimile, air courier guaranteeing overnight delivery or personal delivery to the following addresses: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;If to the Holder: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">LSB&nbsp;Funding LLC </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">350 Park
Avenue, 14<SUP STYLE="font-size:85%; vertical-align:top">th</SUP> Floor </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">New York, NY 10022 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Attn: Legal Department </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Facsimile: <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">646-828-2851</FONT></FONT> </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Email: CHLegal@eldridge.com </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">with a copy to: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Mark Genender
</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">c/o Security Benefit Corporation </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">100 N. Crescent Drive, Suite 300 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Beverly Hills, CA 90210 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Facsimile: <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">646-828-2851</FONT></FONT> </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Email: Mark.Genender@eldridge.com </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">with a copy to (which shall not constitute notice): </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Winston&nbsp;&amp; Strawn LLP </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">35
W. Wacker Drive </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Chicago, Illinois 60601 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Attn: Gregory J. Bynan </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Facsimile: <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">312-558-5700</FONT></FONT> </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Email: gbynan@winston.com </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;If to the Company: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">LSB&nbsp;Industries, Inc. </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">3503
NW 63<SUP STYLE="font-size:85%; vertical-align:top">rd</SUP> Street, Suite 500 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Oklahoma City, Oklahoma, 73116 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Attention: Mark Behrman </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Facsimile: (405) <FONT STYLE="white-space:nowrap">235-5067</FONT> (with such fax to be confirmed by telephone to (405) <FONT
STYLE="white-space:nowrap">235-4546)</FONT> </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">6 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">with a copy to: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">LSB&nbsp;Industries, Inc. </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">3503
NW 63<SUP STYLE="font-size:85%; vertical-align:top">rd</SUP> Street, Suite 500 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Oklahoma City, Oklahoma, 73116 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Attention: Michael Foster </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">with
a copy to (which shall not constitute notice): </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Willkie Farr&nbsp;&amp; Gallagher LLP </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">787 Seventh Avenue </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">New York, New
York 10019 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Attention: Leonard Klingbaum </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Facsimile: (212) <FONT STYLE="white-space:nowrap">728-8111</FONT> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>4.6</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Fees and Expenses</U></B><B>.</B> The Company hereby covenants and agrees to reimburse the Holder for
all costs, fees and expenses (including reasonable fees of legal counsel) incurred thereby in connection with the review, negotiation, execution and delivery of this Agreement. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>4.7</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Amendments and Waivers</U></B><B>. </B>Any term of this Agreement may be amended, terminated or waived
only with the written consent of each of (i)&nbsp;the Company, (ii)&nbsp;the then holder of a majority of the outstanding shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Preferred and (iii)&nbsp;the then holder of a majority of the
outstanding shares of <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> Preferred. Any amendment or waiver effected in accordance with this <U>Section</U><U></U><U>&nbsp;4.7</U> shall be binding upon the Holder and each transferee of the New
Preferred and the Company. Any amendment, supplement or waiver of any term of this Agreement shall be effective only in the specific instance and for the specific purpose for which such amendment, supplement or waiver is made or given. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>4.8</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Severability</U></B><B>.</B> The invalidity or unenforceability of any provision of this Agreement
shall in no way affect the validity or enforceability of any other provision hereof. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>4.9</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Specific
Performance</U></B><B>.</B> Each party acknowledges that its obligations hereunder are unique and recognizes and affirms that money damages may be inadequate and that the other party hereto may have no adequate remedy at law. Accordingly, each party
agrees that the other party shall have the right, in addition to any other rights and remedies in law or in equity, to enforce such party&#146;s rights and the other party&#146;s obligations hereunder not only by an action or actions for damages but
also by an action or actions for specific performance, injunctive and/or other equitable relief (without posting bond or security). </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>4.10</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>No Assignment</U></B><B>.</B> No party hereto may assign any of its rights or obligations hereunder
without the prior written consent of the other party; provided, however, that the Company may assign its rights and obligations hereunder to any person or entity acquiring all or substantially all of the Company&#146;s assets (provided, further,
that no such assignment shall relieve the Company of any liability hereunder). </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">7 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>4.11</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Effectiveness of Covenants.</U></B><B> </B>Each of
the parties hereto acknowledges and agrees that all of the covenants or similar agreements under the Purchase Agreement that remain binding upon either or both of the parties hereto as of immediately prior to the Exchange (collectively, the
&#147;<B><I>Continuing Covenants</I></B>&#148;), including without limitation Section&nbsp;7.05 of the Purchase Agreement, are not intended to be extinguished hereby, nor is this Agreement intended to result in the diminishment of either
party&#146;s rights or obligations pursuant to the Continuing Covenants. Instead, each of the Continuing Covenants shall survive the consummation of the Exchange and continue in full force and effect <I>mutatis mutandis </I>(<I>i.e.</I>, with only
such minimal changes as are necessary to reflect that the Existing Preferred will have been exchanged for the New Preferred pursuant to the Exchange). </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>4.12</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Waiver</U></B><B>.</B> By executing this Agreement, the parties hereto agree to and hereby waive, on a
<FONT STYLE="white-space:nowrap">one-time</FONT> basis with respect to the Exchange, (i)&nbsp;the prohibition on the exchange of the Series&nbsp;E Preferred as set forth in Section&nbsp;8 of the Certificate of Designations of the Series&nbsp;E
Preferred, (ii)&nbsp;the prohibition on the exchange of the Series&nbsp;F Preferred as set forth in Section&nbsp;7 of the Certificate of Designations of the Series&nbsp;F Preferred and (iii)&nbsp;the restrictions on assignment and transferability as
set forth in Section&nbsp;7.05 of the Purchase Agreement to the extent applicable. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>4.13</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Registration
Rights Agreement</U></B><B>. </B>The parties hereto agree to and hereby amend the Registration Rights Agreement as follows: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;In Section&nbsp;1.01 of the Registration Rights Agreement, the reference to &#147;Series&nbsp;E Certificate of
Designations&#148; in the definition of &#147;Participation Common Stock&#148; is hereby deleted and replaced with the phrase <FONT STYLE="white-space:nowrap">&#147;Series&nbsp;E-1</FONT> Certificate of Designations&#148;. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;The defined term &#147;Series&nbsp;E Certificate of Designations&#148; in Section&nbsp;1.01 of the Registration
Rights Agreement is hereby deleted. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(c)&nbsp;&nbsp;&nbsp;&nbsp;A new defined term
<FONT STYLE="white-space:nowrap">&#147;Series&nbsp;E-1</FONT> Certificate of Designations&#148; is hereby inserted into Section&nbsp;1.01 of the Registration Rights Agreement in appropriate alphabetical order: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">&#147;<U><FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Certificate of Designations</U>&#148; means the certificate of designations
relating to the Company&#146;s <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Cumulative Redeemable Class&nbsp;C Preferred Stock, as filed with the Secretary of State of the State of Delaware on October&nbsp;18, 2018. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:17%; font-size:10pt; font-family:Times New Roman"><B>4.14</B>&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Further Assurances</U></B><B>.</B> From time to time after the date hereof, each of the parties
hereto shall use its commercially reasonable efforts to take, or cause to be taken, all actions necessary or appropriate to give effect to the transactions contemplated by this Agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">[Signature pages follow] </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">8 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">IN WITNESS WHEREOF, the parties hereto have duly executed this Securities Exchange Agreement
as of the date first set forth above. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="top" COLSPAN="5">LSB&nbsp;INDUSTRIES, INC.</TD></TR>
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<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD></TR>
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<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" COLSPAN="3" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Daniel D. Greenwell</TD></TR>
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Name:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Daniel D. Greenwell</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Title:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">CEO and President</TD></TR>
</TABLE></DIV> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><I>[Signature Page to Securities Exchange Agreement] </I></P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">IN WITNESS WHEREOF, the parties hereto have duly executed this Securities Exchange Agreement
as of the date first set forth above. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="top" COLSPAN="5">LSB&nbsp;FUNDING LLC</TD></TR>
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<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" COLSPAN="3" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Anthony D. Minella</TD></TR>
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Name:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Anthony D. Minella</TD></TR>
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Title:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Manager</TD></TR>
</TABLE></DIV> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><I>[Signature Page to Securities Exchange Agreement] </I></P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit&nbsp;10.2 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Execution Version </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>AMENDMENT </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>TO </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>BOARD REPRESENTATION AND STANDSTILL AGREEMENT </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Dated as of October&nbsp;18, 2018 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">This Amendment (this &#147;<U>Amendment</U>&#148;) to the Board Representation and Standstill Agreement, dated as of December&nbsp;4, 2015 (as
previously amended on October&nbsp;26, 2017, the &#147;<U>Agreement</U>&#148;), by and among LSB&nbsp;Industries, Inc., a Delaware corporation (the &#147;<U>Company</U>&#148;), LSB&nbsp;Funding LLC, a Delaware limited liability company (the
&#147;<U>Purchaser</U>&#148;), Security Benefit Corporation, a Kansas corporation (&#147;<U>Security Benefit</U>&#148;), Todd Boehly, an individual (&#147;<U>Boehly</U>&#148;), Jack&nbsp;E. Golsen, an individual (&#147;<U>J.&nbsp;Golsen</U>&#148;),
Steven&nbsp;J. Golsen, an individual (&#147;<U>S.&nbsp;Golsen</U>&#148;), Barry&nbsp;H. Golsen, an individual (&#147;<U>B.&nbsp;Golsen</U>&#148;), Linda Golsen Rappaport, an individual (&#147;<U>L.&nbsp;Rappaport</U>&#148;), Golsen Family LLC, an
Oklahoma limited liability company (&#147;<U>Family LLC</U>&#148;), SBL&nbsp;LLC, an Oklahoma limited liability company (&#147;<U>SBL&nbsp;LLC</U>&#148;), and Golsen Petroleum Corp., an Oklahoma corporation (together with J.&nbsp;Golsen,
S.&nbsp;Golsen, B.&nbsp;Golsen, L.&nbsp;Rappaport, Family LLC and SBL&nbsp;LLC, each a &#147;<U>Golsen Holder</U>&#148; and, collectively, the &#147;<U>Golsen Holders</U>&#148;), is made and entered into as of October&nbsp;18, 2018, by and among the
Company, the Purchaser, Security Benefit, Boehly and each of the Golsen Holders. Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the Agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">WHEREAS, the Agreement contains certain references to the Company&#146;s Series&nbsp;E Cumulative Redeemable Class&nbsp;C Preferred Stock (the
&#147;<U>Series&nbsp;E Preferred</U>&#148;) and the Company&#146;s Series&nbsp;F Redeemable Class&nbsp;C Preferred Stock (the &#147;<U>Series&nbsp;F Preferred</U>&#148;); </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">WHEREAS, the Company and the Purchaser have agreed that the Company will issue to the Purchaser newly created shares of the Company&#146;s <FONT
STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Cumulative Redeemable Class&nbsp;C Preferred Stock (&#147;<U><FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Preferred</U>&#148;) and the Company&#146;s
<FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> Redeemable Class&nbsp;C Preferred Stock (&#147;<U><FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> Preferred</U>&#148;) in exchange for the Purchaser surrendering for exchange all of its
shares of Series&nbsp;E Preferred and the Series&nbsp;F Preferred, the closing of such transactions to occur on October&nbsp;18, 2018 (the &#147;<U>Exchange Closing</U>&#148;); </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">WHEREAS, Section&nbsp;4(f)(ii) of the Agreement provides, in relevant part, that the Agreement may be amended only in a writing signed by each
of the Parties; and </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">WHEREAS, in furtherance of the foregoing transactions, each of the Parties desires to enter into this Amendment in
order to make certain technical updates to the Agreement, with the result that references in the Agreement to the Series&nbsp;E Preferred and Series&nbsp;F Preferred will now refer to the new <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT>
Preferred and <FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> Preferred, respectively. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements
hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendment</U>. Each of the Parties hereby agrees that the Agreement is amended in part as hereinafter set forth.
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">1.1.&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1(c), Section&nbsp;3(a)(ii) and Section&nbsp;3(a)(v) of the Agreement are each hereby amended in
part by deleting the references therein to &#147;Purchased Series&nbsp;E Preferred Stock&#148; and replacing each such reference with &#147;Acquired <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Preferred Stock&#148;. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">1.2.&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3(a)(ii) and Section&nbsp;3(a)(v) of the Agreement are each hereby amended in part by deleting the
references therein to &#147;Series&nbsp;E Preferred Stock&#148; and &#147;Series&nbsp;E Certificate of Designations&#148; and replacing such references with <FONT STYLE="white-space:nowrap">&#147;Series&nbsp;E-1</FONT> Preferred Stock&#148; and <FONT
STYLE="white-space:nowrap">&#147;Series&nbsp;E-1</FONT> Certificate of Designations&#148;, respectively. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">1.3.&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3(a)(ii) of the Agreement is hereby amended in part by deleting the reference therein to
&#147;Series&nbsp;F Preferred Stock&#148; and replacing such reference with <FONT STYLE="white-space:nowrap">&#147;Series&nbsp;F-1</FONT> Preferred Stock&#148;. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">1.4.&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4 of the Agreement is hereby amended in part by inserting the following subsection immediately below
the current Section&nbsp;4(k) as a new Section&nbsp;4(l): </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><I>Certain Definitions. </I>As used in this Agreement, the following terms shall
have the following respective meanings: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">&#147;<U>Acquired <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Preferred
Stock</U>&#148; means the 139,768&nbsp;shares of <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Preferred Stock issued to the Purchaser effective as of October&nbsp;18, 2018 in exchange for all of the outstanding shares of Series&nbsp;E
Preferred Stock held by the Purchaser. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">&#147;<U><FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Certificate of
Designations</U>&#148; means the certificate of designations setting forth the rights, preferences, privileges and restrictions of the <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Preferred Stock, as filed with the Secretary of State of
the State of Delaware on October&nbsp;18, 2018. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">&#147;<U><FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Preferred Stock</U>&#148;
means the Company&#146;s <FONT STYLE="white-space:nowrap">Series&nbsp;E-1</FONT> Cumulative Redeemable Class&nbsp;C Preferred Stock, no par value per share. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">&#147;<U><FONT STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> Preferred Stock</U>&#148; means the Company&#146;s <FONT
STYLE="white-space:nowrap">Series&nbsp;F-1</FONT> Redeemable Class&nbsp;C Preferred Stock, no par value per share. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2.&nbsp;&nbsp;&nbsp;&nbsp;<U>No Other Amendments</U>. Except for the changes expressly made by this Amendment, the terms and conditions of the
Agreement shall remain unchanged and in full force and effect. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">3.&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing Law</U>. This Amendment, and all
claims or causes of action (whether in contract or tort) that may be based upon, arise out of or relate to this Amendment, will be construed in accordance with and governed by the laws of the State of Delaware without regard to principles of
conflicts of laws. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">-2- </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">4.&nbsp;&nbsp;&nbsp;&nbsp;<U>Execution in Counterparts</U>. This Amendment may be executed
in any number of counterparts and by different Parties hereto in separate counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute one
and the same agreement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">5.&nbsp;&nbsp;&nbsp;&nbsp;<U>Effectiveness</U>. Subject to the execution and delivery of a counterpart signature
page to this Amendment by each of the Parties hereto, this Amendment shall be deemed effective as of the time that is immediately after the Exchange Closing. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">[signature pages follow] </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">-3- </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">IN WITNESS WHEREOF, the Parties hereto execute this Amendment to the Board Representation
and Standstill Agreement, effective as of the date first above written. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


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<TD WIDTH="12%"></TD>
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<TD VALIGN="top" COLSPAN="5"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>COMPANY:</B></P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">LSB&nbsp;INDUSTRIES, INC.</P></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" COLSPAN="3" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Daniel D. Greenwell</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Name:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Daniel D. Greenwell</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Title:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">CEO and President</TD></TR>
</TABLE></DIV> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">[Signature Page to Amendment to Board Representation and Standstill Agreement] </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">IN WITNESS WHEREOF, the Parties hereto execute this Amendment to the Board Representation
and Standstill Agreement, effective as of the date first above written. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


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<TD VALIGN="top" COLSPAN="5"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>PURCHASER PARTIES:</B></P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">LSB&nbsp;FUNDING LLC</P></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" COLSPAN="3" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Anthony D. Minella</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Name:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Anthony D. Minella</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Title:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Manager</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="32" COLSPAN="5"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="5">SECURITY BENEFIT CORPORATION</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" COLSPAN="3" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Joseph W. Wittrock</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Name:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Joseph W. Wittrock</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Title:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">VP, Investments</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="24" COLSPAN="5"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="5" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Todd Boehly</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="5">Todd Boehly</TD></TR>
</TABLE></DIV> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">[Signature Page to Amendment to Board Representation and Standstill Agreement] </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">IN WITNESS WHEREOF, the Parties hereto execute this Amendment to the Board Representation
and Standstill Agreement, effective as of the date first above written. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="top" COLSPAN="5"><B>GOLSEN HOLDERS:</B></TD></TR>
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<TD HEIGHT="16" COLSPAN="5"></TD></TR>
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<TD VALIGN="top" COLSPAN="5" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Jack E. Golsen</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="5">Jack E. Golsen</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16" COLSPAN="5"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="5" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Barry H. Golsen</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="5">Barry H. Golsen</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16" COLSPAN="5"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="5" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Steven J. Golsen</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="5">Steven J. Golsen</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16" COLSPAN="5"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="5" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Linda Golsen Rappaport</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="5">Linda Golsen Rappaport</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="32" COLSPAN="5"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="5">GOLSEN FAMILY LLC</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" COLSPAN="3" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Jack E. Golsen</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Name:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Jack E. Golsen</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Title:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Manager</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="32" COLSPAN="5"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="5">SBL LLC</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" COLSPAN="3" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Jack E. Golsen</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Name:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Jack E. Golsen</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Title:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Manager</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="32" COLSPAN="5"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="5">GOLSEN PETROLEUM CORP.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" COLSPAN="3" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Jack E. Golsen</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Name:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Jack E. Golsen</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Title:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">President</TD></TR>
</TABLE></DIV> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">[Signature Page to Amendment to Board Representation and Standstill Agreement] </P>
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