EX-10
from 10-Q
1 page
The Cit Group/ Equipment Financing 550 Cit Drive P. O. Box 490 Livingston, Nj 07030-0480 November 17, 1998 the Cit Group Jim Jones Vice President and Treasurer Lsb Industries 16 South Pennsylvania Avenue Oklahoma City, Ok 73107 Dear Mr. Jones: Reference Is Made to That Certain Loan and Security Agreement, Dated as of October 31, 1994, as Amended, a Loan and Security Agreement, Dated as of April 5, 1995, as Amended, and a Loan and Security Agreement Dated as of November 15, 1995, as Amended, by and Between the Cit Group/Equipment Financing, Inc. ("Lender") and Dsn Corporation ("Borrower"). Borrower Has Informed Lender That Climachem Was Not in Compliance With the Tangible Net Worth Covenant Contained in Section 6.10, and the Leverage Ratio Covenant of the Above Referenced Agreement for the Period Ended September 30, 1998, and Will Be Unable to Meet These Requirements Through and Including the Quarter Ending September 30, 1999. Borrower Has Requested, That Notwithstanding Anything to the Contrary in the Agreement, That Lender Waive These Instances of Non-Compliance for These Periods. Lender Hereby Waives These Instances of Non-Compliance for the Periods Mentioned Above, Provided That Such Waiver Is Subject to the Following Conditions: (1) This Waiver Is Strictly Limited to the Tangible Net Worth and Leverage Ratio Covenants of the Agreement. (2) the Waiver Is Strictly Limited to the Specific Periods Above. Lender Also Agrees to Consider Resetting the Covenants Sixty (60) Days From the Date of This Waiver, Along With a Determination of the Fee. However, the Reset of the Covenants Is Subject to Approval by Lender's Credit Committee. Sincerely, the Cit Group/Equipment Financing, Inc. by /S/ Anthony Joseph Anthony G. Joseph Vice President an Affiliate of the Dai-Ichi Kangyo Bank, Limited
12/34/56
