The CIT Group/
Equipment Financing
000 XXX Xxxxx
X. X. Xxx 000
Xxxxxxxxxx, XX 00000-0000
April 13, 1999
THE
CIT
GROUP
Mr. Xxx Xxxxx
Vice President
LSB Industries
00 Xxxxx Xxxxxxxxxxxx Xxxxxx
Xxxxxxxx Xxxx, Xxxxxxxx 00000
Dear Xx. Xxxxx
Reference is made to (a) that certain Loan Agreement dated
October 31, 1994, as amended, (the "Agreement") between DSN
Corporation, an Oklahoma corporation ("Debtor"), and THE CIT
GROUP/EQUIPMENT FINANCING, INC., a New York corporation ("CIT"),
and (b) the defined terms within. Debtor has advised CIT that LSB
Industries (LSB), a guarantor of Debtor's obligations to CIT was
not in compliance with:
Section 6.10 to the Agreement, in that as of December 31,
1998, LSB did not maintain a tangible net worth of
$32,674,000.00. Further, LSB did not maintain a leverage
requirement of 4.90x.
Debtor has requested that notwithstanding anything to the contrary
in the Agreement, that CIT waive the above instances of non-
compliance through June 30, 2000.
CIT hereby waives, as of this date, the above instances of
noncompliance, provided that such waiver is subject to the
following conditions:
(1) that this waiver is strictly limited to the specific
covenants under section 6.10 of the Agreement, as
amended, set forth above and is strictly limited only to
such instances of noncompliance through and including
June 30, 2000
(2) that Debtor pay a fee in the amount of $40,000.00 within
5 business days of the above date to cover the waiver
(3) CIT agrees to reset the covenants within 30 days of the
date of this waiver.
Sincerely,
The CIT Group Equipment
Financing, Inc.
By: /s/ Xxxxxxx Xxxxxx
___________________________
Title: Vice President
_________________________
Acknowledged and Agreed:
DSN Corporation
By: /s/ Xxxx X. Xxxxxx
________________________
Title: V.P.
_____________________
LSB Industries
By: /s/ Xxxx X. Xxxxxx
________________________
Title: S.V.P.
______________________
An affiliate of
The Dai-ichi Kagyo Bank, Limited
