Document:

$200,000,000

                                      THIRD

                              AMENDED AND RESTATED

                                CREDIT AGREEMENT

                          Dated as of October 30, 2000
                                      among
                                 ABC-NACO INC.,
                        ABC-NACO de MEXICO, S.A. de C.V.,
                           DOMINION CASTINGS LIMITED,
                             BANK OF AMERICA CANADA,
                          as Canadian Revolving Lender,
                      BANK OF AMERICA NATIONAL ASSOCIATION,
                  as Agent and Letter of Credit Issuing Lender
                                       and
                  THE OTHER FINANCIAL INSTITUTIONS PARTY HERETO
                                   Arranged By
                         BANC OF AMERICA SECURITIES LLC

<PAGE>
                           THIRD AMENDED AND RESTATED
                           --------------------------

                                CREDIT AGREEMENT
                                ----------------

     This  Third  Amended  and  Restated  Credit Agreement (this "Agreement") is
entered  into  as  of  October  30, 2000, by and among ABC-NACO Inc., a Delaware
corporation  (the  "Company"),  ABC-NACO  de  Mexico,  S.A.  de  C.V., a Mexican
corporation  (the  "Mexican  Borrower"),  Dominion  Castings Limited, an Ontario
corporation  (the  "Canadian  Borrower"  and,  together with the Company and the
Mexican  Borrower,  the "Borrowers"), each of the several financial institutions
signatory  hereto  (collectively,  the  "Majority Lenders") and Bank of America,
N.A. (f/k/a Bank of America National Trust and Savings Association) individually
and  as  agent  (the  "Agent")  for  the benefit of the Lenders under the Credit
Agreement  hereinafter  referred  to.

                                    RECITALS
                                    --------

A.     The  Borrowers, Bank of America Canada, as Canadian Revolving Lender, the
financial  institutions from time to time party thereto and the Agent and Letter
of  Credit  Issuing Lender are parties to that certain credit agreement dated as
of  February  19, 1999, as amended by that certain Amendment, Waiver and Release
Agreement  dated  as  of  October  12,  1999, as further amended by that certain
Amended  and  Restated Credit Agreement dated as of October 29, 1999, as further
amended by that certain Amendment to Amended and Restated Credit Agreement dated
as of October 29, 1999 and as further amended by that certain Second Amended and
Restated  Credit  Agreement  dated as of March 9, 2000 (the "Credit Agreement").
Unless  otherwise  specified  herein,  capitalized  terms used in this Agreement
shall  have  the  meanings  ascribed to them by the Credit Agreement, as amended
hereby.

B.     The  Borrowers, the Agent and the Majority Lenders have agreed to further
amend  the Credit Agreement on terms and conditions herein set forth, subject to
the  terms  and  conditions  hereof.

NOW,  THEREFORE,  in consideration of the mutual execution hereof and other good
and  valuable  consideration,  the  parties  hereto  agree  as  follows:

     1.     Amendments  to Credit Agreement.  Effective as of the Effective Date
(defined  below),  the  Credit  Agreement  is  hereby  amended  as  follows:

     (a)     Section  1.01  of  the  Credit Agreement is amended by deleting the
definition  of  "Permitted  Acquisition  Reserve"  therein  in  its  entirety.

     (b)     Section 1.01 of the Credit Agreement is further amended by deleting
the following existing definitions therein in their entirety and substituting in
lieu  thereof  the  following:

     ""Available  Commitment"  as  to any Lender, means such Lender's Commitment
and  as  to  all  Lenders,  means  the  aggregate  of  such Lenders' Commitment.

     "EBITDA"  means,  for  any  period, the Company's and its Subsidiaries' Net
Income on a consolidated basis, determined in accordance with GAAP; plus, to the
extent  deducted  in  the  computation  of  Net  Income  for  such  period,  (a)
Consolidated Interest Expense, (b) income or franchise taxes paid or accrued and
(c)  amortization  and  depreciation expense; provided, however, that Net Income
shall  be  computed  for  these  purposes without giving effect to (a) non-cash,
non-recurring  extraordinary  losses or special charges and (b) extraordinary or
special  gains;  provided,  further, that for periods ending on or prior to July
31,  1999,  all  extraordinary  losses  reported  in  fiscal year 1998 and up to
$15,000,000  of  additional cash extraordinary items and special charges related
to the Merger may be excluded from such computation; provided, further, that for
periods ending on or prior to December 29, 2000, up to $12,000,000 of additional
cash  extraordinary  items and special charges relating to restructuring changes
may  be  excluded  from  such  computation; and provided, further, that "EBITDA"
shall  be  calculated  after  giving  effect  on  the  Pro  Forma  Basis  to any
Acquisition  or  disposition  of  the  Designated  Non-Core  Assets  as  if such
Acquisition  or  disposition occurred on the first day of the applicable period.
EBITDA for the Fiscal Quarters ended July 31, 1998, October 31, 1998 and January
31,  1999  shall  be  deemed  to  be  that  set  forth  on  Schedule 1.1 hereto.
"Interest  Coverage  Ratio" means, at any date, the ratio determined by dividing
(a)  EBITDA  by  (b)  Adjusted Consolidated Interest Expense for the immediately
preceding  four  consecutive  fiscal  quarters  for which the Agent has received
financial  statements  in  compliance  with  Section  7.01; provided, that, with
respect  to  periods  ending  prior  to December 31, 2000, Adjusted Consolidated
Interest  Expense  and  EBITDA shall be calculated for the immediately preceding
twelve  months.

     "Level" means, and  includes, Level I, Level II, Level III, Level IV, Level
V, Level  VI,  Level  VII,  Level  VIII  or  Level IX whichever is in effect at
the relevant  time.

     "Level VII" shall exist at any time the Leverage Ratio is less than 5.5:1.0
but greater  than  or  equal  to  5.0:1.0."

     (c)     Section  1.01  of  the  Credit Agreement is amended by deleting the
table  in the definition of "Applicable Margin" in its entirety and substituting
in  lieu  thereof  the  following:

Level     Offshore Rate     Base Rate     Commitment Fee
I           2.00%             1.00%            0.40%
II          2.25%             1.25%            0.45%
III         2.50%             1.50%            0.50%
IV          2.75%             1.75%            0.50%
V           3.00%             2.00%            0.50%
VI          3.25%             2.25%            0.55%
VII         3.50%             2.50%            0.60%
VIII        3.75%             2.75%            0.65%
IX          4.00%             3.00%            0.70%"

     (d)     Section  1.01  of  the  Credit  Agreement  is  further  amended  by
inserting the following new definitions in their appropriate alphabetical order:

     ""Adjusted  Consolidated  Interest  Expense"  means,  for any period, gross
consolidated  interest  expense  for  the  period  (including  all  commissions,
discounts,  fees  and other charges in connection with standby letters of credit
and  similar instruments) for the Company and its Subsidiaries, plus the portion
of  the  up-front  costs  and  expenses  for  Swap  Contracts (to the extent not
included  in  gross interest expense) fairly allocated to such Swap Contracts as
expenses for such period, as determined in accordance with GAAP and after giving
effect  to  any  Swap  Contract  then  in  effect;  provided,  however,  that
"Consolidated Interest Expense" shall be calculated after giving effect on a Pro
Forma  Basis to any reduction to the Commitments arising from the application of
proceeds  from  any  disposition  of  the  Designated Non-Core Assets as if such
disposition  and  reduction  had  occurred  on  the  first day of the applicable
period.

     "Metal Brake Shoe Business"  means  all the assets and business, including
without limitation all equipment,  machinery,  inventory  and fixtures, used or
involved  in the  engineering and manufacturing of metal brake shoes located at
the Company's Baltimore,  Maryland  facility.

    "Level VIII" shall exist at any time the Leverage Ratio is less than 6.0:1.0
but greater  than  or  equal  to  5.5:1.0.

     "Level  IX" shall  exist at any time the Leverage Ratio is greater than or
equal to  6.0:1.0.

     "Operating  Coverage  Ratio" shall  have  the  meaning  given such term in
that certain Indenture dated as of January 15,1997 between the Company (formerly
ABC  Rail  Products  Corporation) and U.S. Bank National Association (successor
Trustee to First Trust National Association), as supplemented prior to the date
Hereof  but without  giving  effect  to  any  subsequent  amendment,  waiver or
Modification thereof."

     (e)     Section  2.09  of  the  Credit Agreement is amended by deleting the
existing clause (e) therein in its entirety and substituting in lieu thereof the
following:

     "(e)     On  the  Business  Day of receipt of the proceeds from the sale or
disposition  of  any Designated Non-Core Assets (other than the Metal Brake Shoe
Business),  the  Company  shall prepay the Revolving Loans in an amount equal to
85%  of  the  Net  Proceeds  realized  upon such sale or disposition made by the
Company or any of its Subsidiaries in any fiscal year.  With respect to the sale
or  disposition  of the Metal Brake Shoe Business or any disposition of property
by  the  Company  or  any  Subsidiary  made  in reliance on Section 8.02(c), the
Company  shall  prepay  the Revolving Loans in an amount equal to 35% of the Net
Proceeds  realized  upon  such sale or disposition.  Amounts prepaid pursuant to
this  Section  2.09(e) shall permanently reduce the Commitments of the Revolving
Lenders.  Any  reduction  of  the Commitments shall be applied to each Revolving
Lender  according to its Pro Rata Share; provided, however, that amounts prepaid
pursuant to this Section 2.09(e) prior to January 1, 2002 shall be applied first
to  the extent the following dates have not passed to reduce the January 1, 2001
Scheduled  Commitment  Reduction,  second  to reduce the April 1, 2001 Scheduled
Commitment  Reduction,  third  to reduce the April 15, 2001 Scheduled Commitment
Reduction, fourth to reduce the June 30, 2001 Scheduled Commitment Reduction and
fifth  to  reduce  the  January  1,  2002  Scheduled Commitment Reduction.  Once
reduced  in  accordance  with this Section the Commitments may not be increased.
The  Company  shall  use its best efforts to notify the Agent and each Revolving
Lender of the amount of any required prepayment as soon as practicable and in no
event  later  than  ten  (10)  Business  Days  before  it  is  made."

     (f)     Section 2.10 of the Credit  Agreement is  amended  by inserting the
following  in  appropriate  chronological order in the table appearing in clause
(b)  thereof:

               "4/1/01     $35,000,000
               4/15/01     $15,000,000"

     (g)     Section 2.10 of the Credit Agreement is further amended by deleting
the  existing  clauses (c) and (d) therein in their entirety and substituting in
lieu  thereof  the  following:

     ""(c) Notwithstanding anything to the contrary herein, the Majority Lenders
may  waive,  postpone  or delay the Scheduled Commitment Reduction scheduled for
4/1/01  and  4/15/01.

     (d) Each reduction of the Commitments pursuant to clause (b) above shall be
applied to each Lender in accordance with its Pro Rata Share and the Commitments
once  reduced  may  not  be  increased."

     (h)     Section  8.02 of the Credit Agreement is amended by deleting the ";
and" appearing at the end of paragraph (c) therein and inserting in lieu thereof
the  following:

     "provided,  further,  the  Company  shall  prepay the Revolving Loans in an
amount  equal  to 35% of the Net Proceeds realized upon such sale or disposition
made  by  the  Company  or  any  of  its Subsidiaries in accordance with Section
2.09(e);  and"

     (i) Section 8.04 of the Credit Agreement is amended by deleting clause (ii)
of  paragraph  (f)  therein in its entirety and substituting in lieu thereof the
following:

     "(ii)  the consideration for any such Acquisition shall not consist of cash
or  cash  equivalents,"

<PAGE>
    (j) Effective as of September 30, 2000, Section 8.14 of the Credit Agreement
is  amended  by  deleting  the table therein in its entirety and substituting in
lieu  thereof  the  following:

"Period                                                                Ratio

From  and  including the last day of the fiscal                        7.50:1.0
quarter ended in September, 2000 to but excluding
the  last  day of the fiscal quarter ended in December, 2000

Thereafter, from and including the last day of the                     7.55:1.0
fiscal quarter ended in December,  2000  to  but  excluding
the last day of the fiscal quarter ended in March, 2001

Thereafter, from and including the last day of the                     7.00:1.0
fiscal quarter ended in March,  2001  to but excluding
the last day of the fiscal quarter ended in June, 2001

Thereafter,  from and including the last day of the                    4.00:1.0
fiscal quarter ended in June 2001  to  but  excluding
the last day of the fiscal quarter ended in March, 2002

Thereafter, from and including the last day of the                     3.75:1.0
fiscal quarter ended in March, 2002 to but excluding
the last day of the fiscal quarter ended in June, 2002

Thereafter, from and including the last day of the                     3.50:1.0
fiscal quarter ended in June, 2002  to  but  excluding
the last day of the fiscal quarter ended in September, 2002

Thereafter                                                            3.25:1.0"

<PAGE>

    (k) Effective as of September 30, 2000, Section 8.15 of the Credit Agreement
is  amended  by  deleting  the table therein in its entirety and substituting in
lieu  thereof  the  following:

"Period                                                                    Ratio

From  and  including the last day of the                                5.50:1.0
fiscal quarter ended in September, 2000 to  but excluding
the  last  day of the fiscal quarter ended in December, 2000

Thereafter,  from  and  including  the  last  day of the                5.55:1.0
fiscal quarter ended in December,  2000  to  but  excluding
the last day of the fiscal quarter ended in March,  2001

Thereafter,  from  and  including  the  last  day of the                4.50:1.0
fiscal quarter ended in March,  2001  to but excluding
the last day of the fiscal quarter ended in June, 2001

Thereafter,  from and including the last day of the                     3.00:1.0
fiscal quarter ended in June 2001  to  but  excluding
the last day of the fiscal quarter ended in September, 2001

Thereafter,  from  and  including  the  last  day of the                2.75:1.0
fiscal quarter ended in September,  2001  to  but  excluding
the last day of the fiscal quarter ended in December, 2001

Thereafter                                                             2.50:1.0"

<PAGE>
    (l) Effective as of September 30, 2000, Section 8.16 of the Credit Agreement
is  amended  by  deleting  the table therein in its entirety and substituting in
lieu  thereof  the  following:

"Period                                                                   Ratio

From  and  including the last day of the                                1.40:1.0
fiscal quarter ended in September, 2000 to  but  excluding
the  last  day of the fiscal quarter ended in December, 2000

Thereafter,  from  and  including  the  last  day of the                1.30:1.0
fiscal quarter ended in December,  2000  to  but  excluding
the last day of the fiscal quarter ended in March,  2001

Thereafter,  from  and  including  the  last  day of the                1.00:1.0
fiscal quarter ended in March,  2001  to but excluding
the last day of the fiscal quarter ended in June, 2001

Thereafter,  from and including the last day of the                     1.20:1.0
fiscal quarter ended in June 2001  to  but  excluding
the last day of the fiscal quarter ended in September, 2001

Thereafter,  from  and  including  the  last  day of the                2.25:1.0
fiscal quarter ended in September,  2001  to  but  excluding
the last day of the fiscal quarter ended in December,  2001

Thereafter                                                             3.00:1.0"

     (m)     Section  8.19  of  the  Credit Agreement is amended by deleting the
existing  provision  in  its  entirety  and  substituting  in  lieu  thereof the
following:

     "(a)     As  of  the end of any fiscal quarter ended in September, 2000 and
December,  2000,  the  Company  shall  not permit its EBITDA for the immediately
preceding twelve month period to be less than $38,000,000; plus or minus, as the
case  may  be,  any  adjustment  to  EBITDA  pursuant to the last proviso of the
definition  of  EBITDA  for  such  period.

     (b) As of  the  end of any fiscal quarter ended in March, 2001, the Company
shall not permit its EBITDA for the immediately preceding twelve month period to
be  less  than $40,000,000; plus or minus, as the case may be, any adjustment to
EBITDA pursuant to the last proviso of the definition of EBITDA for such period.

     (c) As of  the end of any fiscal quarter ended in June 2001 and thereafter,
the  Company  shall  not  permit its EBITDA for the immediately preceding twelve
month period to be less than $44,000,000; plus or minus, as the case may be, any
adjustment  to  EBITDA  pursuant to the last proviso of the definition of EBITDA
for  such  period."

     (n)     The  Credit  Agreement  is  amended  by inserting the following new
Section  8.20:

     "8.20     Operating  Coverage Ratio.  Effective as of November 30, 2000 and
thereafter,  the  Company will maintain, at the end of each of its fiscal month,
an  Operating  Coverage  Ratio  with respect to the trailing twelve month period
then  ended  taken  as  a  whole  of  at  least  1.8:1.0."

     (o)     The  Credit  Agreement  is  amended  by inserting the following new
Section  8.21:

     "8.21     Subordinated  Debt.  The  Company  will not modify, supplement or
amend  any note, debenture, agreement, indenture or any other instrument entered
into  or  issued  in  respect of the Subordinated Debt without the prior written
consent  of  the  Majority  Lenders."

2.     Covenants.

     (a)     Mortgages.  The Company hereby agrees, as soon as possible, but not
later  than  60  days  after  the  Effective  Date,  unless otherwise reasonably
extended  by  the Agent, to deliver to the Agent for the benefit of the Lenders:

(i)     fully  executed  deeds  of  trust,  mortgages  or similar documents (the
"Mortgages") in each case in form and substance satisfactory to the Agent, which
shall  cover  the  parcels  of real property owned by the Borrower identified on
Schedule  A  hereto  (the  "Mortgaged  Property");

(ii)     an ATLA Form B (or other form acceptable to the Agent) mortgagee policy
of  title insurance or a binder issued by a title insurance company satisfactory
to  the  Agent insuring (or undertaking to insure, in the case of a binder) that
the  Mortgages  create  and  constitute a valid first Lien against the Mortgaged
Property in favor of the Agent, with such endorsements and affirmative insurance
as  the  Agent  may  request;

(iii)     current  ATLA surveys and surveyor's certification as to all Mortgaged
Property  to  the  extent  reasonably  requested  by the Agent, each in form and
substance  satisfactory  to  the  Agent;  and

(iv)     such  other  documents,  instruments  and agreements (including Phase I
environmental site assessments, if any, and opinions of counsel) relating to the
Mortgaged  Property  as  the  Agent  in  its  reasonable discretion may request.

     (b)     Field  Audit.  In  accordance  with  Section  7.10  of  the  Credit
Agreement,  the  Company, at its own expense, shall cooperate with the Agent and
its  representatives  to  complete  a  field  audit  of   the  Company  and  its
Subsidiaries  and share the results of the field audit with each of the Lenders.

     (c)    Appraisals. The Company, at its  expense,  hereby agrees, as soon as
possible,  but not later than 60 days after the Effective Date, unless otherwise
extended  by  the  Agent,  to perform or cause to be performed an appraisal on a
representative  cross-section   of  machinery,  equipment,  inventory  and  real
property  owned by the Company or its Subsidiaries as shall be determined by the
Agent  and  deliver  copies  of  all  such  appraisals  to the Collateral Agent.

     (d)   Monthly Asset Disposition Report. As soon as available, but not later
than  10  days  after then end of each fiscal month, the Company shall cause its
agent,  Robert  W. Baird, to deliver to the Agent a report updating the progress
and  status  of  any  sale  or  disposition of any Designated Non-Core Asset and
covering  any  other  matters  relating  thereto  as  requested  by  the Agent."

3.     Representations and Warranties of the Borrowers.  The Borrowers represent
and  warrant  that:

     (a)     The execution, delivery and performance by each of the Borrowers of
this  Agreement  have been duly authorized by all necessary corporate action and
that  this  Agreement  is a legal, valid and binding obligation of such Borrower
enforceable  against  such  Borrower in accordance with its terms, except as the
enforcement  thereof may be subject to  the effect of any applicable bankruptcy,
insolvency,  reorganization,  moratorium  or  similar  law  affecting creditors'
rights  generally;

     (b) Each of  the  representations  and  warranties  contained in the Credit
Agreement  is  true  and  correct in all material respects on and as of the date
hereof  as  if  made  on  the  date  hereof,  except to the extent that any such
representation  or  warranty  relates  to  an  earlier  date, in which case such
representation or warranty shall be true and correct in all material respects as
of  such  earlier  date;  and

     (c) After giving  effect  to this Agreement, no Default or Event of Default
has  occurred  and  is  continuing.

4.     Conditions  to  Effectiveness of Agreement.  This  Agreement shall become
become  effective  on  the  date  (the  "Effective  Date") each of the following
conditions  precedent  is  satisfied:

     (a)     Execution  and Delivery.  The Borrowers, the Agent and the Majority
Lenders  shall  have  executed  and  delivered  this  Agreement.

     (b)     No  Defaults. After giving  effect to this Agreement, no Default or
Event  of  Default  under  the  Credit  Agreement  shall  have  occurred  and be
continuing.

     (c)   Representations and Warranties. After giving effect to the amendments
contemplated  by  this  Agreement,  the  representations  and  warranties of the
Borrowers  contained  in this Agreement, the Credit Agreement and the other Loan
Documents  shall  be  true and correct in all respects as of the Effective Date,
with  the same effect as though made on such date, except to the extent that any
such  representation  or warranty relates to an earlier date, in which case such
representation or warranty shall be true and correct in all material respects as
of  such  earlier  date.

     (d)     Reaffirmation  of  Guaranty.  The  Agent  shall  have  received   a
Reaffirmation  of Guaranty dated as of the Effective Date in the form of Exhibit
A-1  and  Exhibit  A-2  attached  hereto  duly  executed  by  each  Guarantor.

     (e)  Officer's  Certificate. The Agent  shall  have  received a certificate
signed  by a Responsible Officer of the Company, dated as of the Effective Date,
certifying  that as of September 30, 2000 the Company was in compliance with the
covenants  and  provisions  contained  in  all notes, debentures, agreements and
other  instruments  entered  into or issued in respect of the Subordinated Debt.

     (f)     Legal  Opinion.  The  Company  shall  agree  to  deliver an opinion
addressed  to the Agent, the Collateral Agent and the Lenders of Mark F. Baggio,
in  form  and  substance  satisfactory  to  the  Agent.

     (g)   Payment of Expenses and Fees.  The Company shall have paid all of the
fees  and  expenses  of  (i) Winston & Strawn, counsel to the Agent and (ii) the
Company  shall  have  paid in full to the Agent for ratable distribution to each
Lender  an  amount  equal  to  0.1875%  of  the  Commitment  of  such  Lender.

5.     Reference  to  and  Effect  Upon  the  Credit  Agreement.

     (a)     Upon  the Effective Date, each reference in the Credit Agreement to
"this  Agreement,"  "hereunder," "hereof," "herein," or words of like import and
each reference to the Credit Agreement in each Loan Document shall mean and be a
reference  to the Credit Agreement as amended and restated hereby and the Credit
Agreement  is amended as set forth herein and is hereby restated in its entirety
to  read  as  set  forth  in  the Credit Agreement with the amendments specified
herein.

     (b) Except as  specifically amended above, all of the terms, conditions and
covenants  of  the  Credit  Agreement  and the other Loan Documents shall remain
unaltered  and in full force and effect and are hereby ratified and confirmed in
all  respects.

     (c) The execution,  delivery  and effectiveness of this Agreement shall not
operate  as  a  waiver  of any right, power or remedy of the Agent or any Lender
under  the  Credit Agreement or any other Loan Document, nor constitute a waiver
of  any  provision  of  the  Credit  Agreement  or  any Loan Document, except as
specifically  set  forth  herein.

6.   Costs and Expenses. The Company hereby affirms its obligation under Section
11.04 of the Credit Agreement to reimburse the Agent for  all reasonable costs,
internal  charges  and  out-of-pocket  expenses paid or incurred by the Agent in
connection with the preparation, negotiation, execution and delivery of this
Agreement,  including but not limited to the attorneys' fees and time charges of
attorneys  for  the Agent with respect thereto.  Furthermore, the Company hereby
affirms  its  obligation  under  Section 7.10 of the Credit Agreement to pay the
expenses  incurred  in  connection with the inspection of its property and books
and  records  under  Section  2(a)  of  this  Agreement.

7.     Counterparts.  This  Agreement  may   be  executed   in   any  number  of
counterparts, each of which when so executed shall be deemed an original but all
such  counterparts  shall  constitute  one  and  the  same  instrument.

                            (signature pages follow)

<PAGE>

     IN  WITNESS  WHEREOF,  the  parties hereto have caused this Agreement to be
duly  executed  by their respective officers thereunto duly authorized as of the
date  above  first  written.

ABC-NACO  INC.
By:
Name:
Title:

ABC-NACO  de  MEXICO  S.A.  de  C.V.
By:
Name:
Title:

DOMINION  CASTINGS  LIMITED
By:
Name:
Title:

BANK  OF  AMERICA,  NATIONAL  ASSOCIATION,  as  Agent
By:
Name:
Title:

BANK  OF  AMERICA,  NATIONAL  ASSOCIATION,  Individually  as a Lender and as the
Issuing  Lender
By:
Name:
Title:

ABN  AMRO  BANK  N.V.,  as  a  Lender
By:
Name:
Title:

By:
Name:
Title:

FLEET  NATIONAL  BANK,  as  a  Lender
By:
Name:
Title:

BANK  ONE,  NA  (Main  Office  Chicago),  as  a  Lender
By:
Name:
Title:

FIRSTAR  BANK,  N.A.,  as  a  Lender
By:
Name:
Title:

HARRIS  TRUST  AND  SAVINGS  BANK,  as  a  Lender
By:
Name:
Title:

LASALLE  BANK  NATIONAL  ASSOCIATION,  as  a  Lender
By:
Name:
Title:

THE  NORTHERN  TRUST  COMPANY,  as  a  Lender
By:
Name:
Title:

PNC  BANK,  NATIONAL  ASSOCIATION,  as  a  Lender
By:
Name:
Title:

U.S.  BANK  NATIONAL  ASSOCIATION,  as  a  Lender
By:
Name:
Title:

BANK  OF  AMERICA  CANADA,  as  Canadian  Revolving  Lender
By:
Name:
Title:

<PAGE>

                                   Exhibit A-1

                            REAFFIRMATION OF GUARANTY
                            -------------------------

     Each of the undersigned acknowledges receipt of a copy of the Third Amended
and Restated Credit Agreement (the "Amendment") dated October __, 2000, consents
to  such  Amendment  and  hereby  reaffirms  its  obligations under that certain
Subsidiary  Guaranty  dated  February  19,  1999  by  the  direct  and  indirect
subsidiaries  of  ABC-NACO  Inc.

Dated  as  of  October  __,  2000.

NACO,  INC.
By:
Name:
Title:

ABC  RAIL  BRAKESHOE  HOLDINGS,  INC.
By:
Name:
Title:

ABC  RAIL  FRENCH  HOLDINGS,  INC.
By:
Name:
Title:

ABC  RAIL  PRODUCTS  CHINA  INVESTMENT  CORPORATION
By:
Name:
Title:

ABC  RAIL  SYSTEMS,  INC.
By:
Name:
Title:

ABC  RAIL  (VIRGIN  ISLANDS)  CORPORATION
By:
Name:
Title:

TRANSIT  &  RAIL  SYSTEMS,  INC.
By:
Name:
Title:

NATIONAL  CASTINGS,  INC.
By:
Name:
Title:

NACO  FLOW  PRODUCTS,  INC.
By:
Name:
Title:

NATIONAL  ENGINEERED  PRODUCTS  COMPANY,  INC.
By:
Name:
Title:

<PAGE>
------

                                   Exhibit A-2

                            REAFFIRMATION OF GUARANTY
                            -------------------------

     Each of the undersigned acknowledges receipt of a copy of the Third Amended
and Restated Credit Agreement (the "Amendment") dated October __, 2000, consents
to  such  Amendment  and  hereby  reaffirms  its  obligations under that certain
Mexican  Subsidiary Guaranty dated February 19, 1999, as amended by that certain
Amendment  of  Mexican  Subsidiary  Guaranty  dated  as  of  October  12,  1999.

Dated  as  of  October  __,  2000.

ABC-NACO  DE  MEXICO,  S.A.  DE  C.V.
By:
Name:
Title:

ABC-NACO  SERVICIOS  FERROVIARIOS,  S.A.  DE  C.V.
By:
Name:
Title:

COMMERCIALIZADORA  NATIONAL  CASTINGS,  S.A.  DE  C.V.
By:
Name:
Title:

NATIONAL  CASTINGS  DE  MEXICO,  S.A.  DE  C.V.
By:
Name:
Title:

SERVICIOS  NATIONAL  CASTINGS,  S.A.  DE  C.V.
By:
Name:
Title:EXHIBIT 10.1

August 31, 2000

Donald A. Roubitchek
263 Chandler Avenue
Elmhurst, Illinois 60126

Dear Don:

This letter agreement will confirm our understanding regarding your separation
from employment with PrivateBancorp, Inc. and PrivateBank and Trust Company
(together, the "Company").

1.   Resignation.

     (a)  You have resigned your position as CFO of the Company effective as of
          August 24, 2000.

     (b)  You have agreed to continue to serve as a director of the Company and
          to be employed as a Managing Director of the Company, performing only
          those assignments and exercising only such authority as you and I
          shall mutually agree, through the earlier of December 31, 2000, or the
          date you commence employment with another employer (December 31, 2000
          or such earlier date hereinafter referred to as the "Resignation
          Date"). You agree to notify the Chairman of the Board of the Company
          of the effective date of the commencement of such employment not later
          than five (5) business days prior thereto.

     (c)  You hereby resign as a member of the Board of Directors and as a
          Managing Director of the Company and of each affiliate for which you
          hold such positions, and from all other positions with the Company or
          any of its affiliates, effective as of the Resignation Date.

2.   Payments and Benefits. Subject to your compliance with paragraphs 1, 3, 4
and 11 of this Agreement, you shall be entitled to compensation, benefits,
payments, and distributions from the Company in accordance with this paragraph
2. Such amounts or benefits shall be subject to applicable withholding taxes.

     (a)  Salary Continuation. The Company will continue to pay your salary (the
          "Salary") at the current rate through your Resignation Date.

     (b)  Bonus. You will receive a bonus in the gross amount $85,000.00,
          $25,000.00 of which shall be paid in a single lump sum on October 31,
          2001, and $60,000.00 of which shall be paid within thirty (30) days
          after the end of the Salary Continuation Period described in paragraph
          (h) below.

     (c)  Restricted Stock. Your April 1996 grant of 4,400 shares of restricted
          stock will vest and will be issued on the vesting date in April, 2001
          as contemplated by such grant. All other restricted stock granted
          shall be forfeited as of the date hereof.

     (d)  Stock Options. Your stock options shall be governed by the terms
          thereof without change. As a result, any stock options which have not
          vested by their terms as of your Resignation Date will be forfeited
          and will not thereafter become exercisable, and any stock options
          which are vested as of your Resignation Date and which are not
          exercised within 90 days following your Resignation Date shall expire
          and no longer be exercisable.

     (e)  Vacation. As we have agreed, the period from September 1, 2000 through
          October 31, 2000 will be your vacation and that at the end of that
          period you will have taken all of your accrued vacation. You agree
          that you will not accrue any additional vacation with respect to
          employment after October 31, 2000.

<PAGE>

Donald A. Roubitchek
August 31, 2000
Page 2

     (f)  Benefits, Generally. Your participation in the employee benefit plans
          and arrangements maintained by the Company, as in effect from time to
          time, including, but not limited to, the 401(k) plan, will continue
          through your Resignation Date. Following your Resignation Date, you
          will be eligible to elect COBRA coverage with respect to the Company's
          health insurance plan. Except as provided in subparagraph (h) below,
          you will not be entitled to participate in any other employee benefit
          plan of the Company after your Resignation Date.

     (g)  Outplacement. Upon presentation of invoices or paid receipts, the
          Company will reimburse you for up to $15,000.00 of expenses you incur
          for out placement, education and/or training assistance through the
          later of your Resignation Date or the end of the Post-Resignation Date
          Salary Continuation Period described below.

     (h)  Post-Resignation Date Salary Continuation. The Company will provide
          you with certain post-Resignation Date compensation as follows:

          (1)  In the event your Resignation Date occurs on December 31, 2000,
               the Company will continue to pay you monthly an amount (a "Post-
               Resignation Date Salary Continuation Payment") equal to your
               monthly Salary until the earlier of October 31, 2001 or the date
               you commence other employment. You agree to notify the Chairman
               of the Board of the Company of the effective date of the
               commencement of such employment not later than five (5) business
               days prior thereto. The period during which such payments are
               made shall be referred to herein as the Post-Resignation Date
               Salary Continuation Period. The Company shall also pay your COBRA
               premiums during the Post-Resignation Date Salary Continuation
               Period and, to the extent able to do so without increased
               expense, the Company will also continue your coverage under the
               Company's group term life insurance policy during the
               Post-Resignation Date Salary Continuation Period.

          (2)  In the event (A) your Resignation Date occurs prior to December
               31, 2000, or (B) the Post-Resignation Date Salary Continuation
               Period commences, but ends prior to October 31, 2001, in either
               case as a result of your commencing other employment (such
               Resignation Date or termination date of the Post-Resignation Date
               Salary Continuation Period hereinafter referred to as the "Early
               Termination Date"), the Company shall pay you an amount equal to
               the greater of:

                    (i)  nine (9) times your monthly Salary, minus the aggregate
                         amount of Salary and Post-Resignation Date Salary
                         Continuation Payments received for the period beginning
                         November 1, 2000 and ending on the Early Termination
                         Date; or

                    (ii) 50% of the amount of Salary and Post-Resignation Date
                         Salary Continuation Payments that would otherwise have
                         been paid during the period commencing on the Early
                         Termination Date and ending October 31, 2001.

               The amount, if any, payable under this subparagraph (h)(2) shall
               be paid in two installments: (A) 50% of the amount shall be paid
               60 days after the Early Termination Date, and (B) the remaining
               50% shall be paid 150 days after the Early Termination Date.

     (i)  Other Payments. Except as specified in this paragraph 2, or otherwise
          expressly provided in or pursuant to the Agreement and Release, you
          shall be entitled to no compensation, benefits or other

<PAGE>

Donald A. Roubitchek
August 31, 2000
Page 3

          payments or distributions, and references in the Release to the
          release of claims against the Company shall be deemed to also include
          reference to the release of claims against all compensation and
          benefit plans and arrangements established or maintained by the
          Company and the affiliates.

3.   Nonsolicitation of Clients and Employees. You agree that from the date
hereof through the first anniversary of your Resignation Date:

     (a)  Without the prior written approval of the Company, you will not,
          directly or indirectly, whether on your own behalf or on the behalf of
          another person, initiate communications with or solicit, or attempt to
          initiate communications with or solicit, any person who as of your
          Resignation Date is, or during the six month period prior to your
          Resignation Date was, a client of the Company or any of its
          affiliates, for the purpose of providing services of a kind similar to
          those provided by the Company to such person;

     (b)  Without the prior written approval of the Company, you will not,
          directly or indirectly, whether on your own behalf or on the behalf of
          another person, initiate communications with or solicit, or attempt to
          initiate communications with or solicit, any individual who is an
          employee of the Company or any of its affiliates to terminate his or
          her employment; and

     (c)  You acknowledge that the covenants in paragraphs 3(a) and 3(b), and in
          paragraph 4 below are reasonable under the circumstances, protect the
          Company's legitimate business interests in its client relationships,
          stable workforce and confidential information, create no undue
          hardships on you, and have no effect on any public interest. You
          further acknowledge that continuation of the compensation to be paid
          to you under paragraphs 2(a) through (h) is dependent on continued
          compliance with and constitutes adequate compensation for, the
          restrictions imposed under paragraphs 3(a) and 3(b), and in paragraph
          4 below.

4.   Confidentiality. You agree to keep all confidential information (including,
but not limited to, client and customer lists, contractual arrangements with
clients and customers, vendors and suppliers, financial statements, pricing
policies, employment agreements, trade secrets, systems, procedures and manuals)
relating to the Company and its affiliates in confidence. Except to the extent
necessary to perform your duties hereunder, you agree that you shall not, during
or after the Employment Term, disclose any confidential information relating to
the business of the Company or any affiliate to any third party. The provisions
of this paragraph 4 shall not apply to information that is or becomes generally
known to the public (except by reason of your breach of your obligations under
this letter agreement or any similar prior agreement) or to information that a
court of competent jurisdiction or administrative agency of any government
specifically orders you to disclose. When reasonably possible, you shall give
the Company prior written notice of such required disclosure to give the Company
the opportunity to seek a protective order at its expense. You acknowledge and
agree that memoranda, notes, records and any other written, recorded, taped or
graphic materials made or compiled by you or made available to you concerning
the business of the Company and its affiliates are the Company's property. You
acknowledge that you have delivered all such property to the Company as of the
date hereof.

5.   Equitable Remedies. You acknowledge that the Company would be irreparably
injured by a violation of paragraph 3 or 4, and agree that the Company, in
addition to any other remedies available to it for such breach or threatened
breach, shall be entitled to a preliminary injunction, temporary restraining
order, or other equivalent relief, restraining you from any actual or threatened
breach of either paragraph 3 or paragraph 4. If a bond is required to be posted
in order for the Company to secure an injunction or other equitable remedy, the
parties agree that said bond need not be more than a nominal sum.

6.   Non-Alienation. Your interests under this Agreement are not subject to the
claims of your creditors, and may not otherwise be voluntarily or involuntarily
assigned, alienated or encumbered. Your obligations under this Agreement may not
be assigned.

<PAGE>

Donald A. Roubitchek
August 31, 2000
Page 4

7.   Amendment. This Agreement may be amended or canceled only by mutual
agreement of the parties in writing without the consent of any other person. So
long as you live, no person, other than the parties hereto, shall have any
rights under interest in this Agreement or the subject matter hereof.

8.   Successors and Affiliates. This Agreement shall be binding on, and inure to
the benefit of the Company and you, and our respective successors and assign.

9.   Waiver of Breach. The waiver by either you or the Company of a breach of
any provision of this Agreement shall not operate as or be deemed a waiver of
any subsequent breach by either you or the Company. Continuation of benefits
hereunder by the Company following a breach by you of any provision of this
Agreement shall not preclude the Company from thereafter exercising any right
that it may otherwise independently have to terminate said benefits based upon
the same violation.

10.  Severability. The invalidity or unenforceability of any provision of this
Agreement will not affect the validity of enforceability of any other provision
of this Agreement, and this Agreement will be construed as if such invalid or
unenforceable provision were omitted (but only to the extent that such provision
cannot be appropriately reformed or modified).

11.  General Release and Waiver. As part of this Agreement, and in consideration
of the additional payments provided to you in accordance with this Agreement,
you are required to execute the General Release Waiver, which is attached to, as
Attachment 1, and forms a part of this Agreement. This Agreement and the
commitments and obligations of all parties hereunder:

     (a)  shall become final and binding immediately following the expiration of
          your right to revoke the execution of this Agreement in accordance
          with paragraph 2(d) of the General Release and Waiver;

     (b)  shall not become final and binding until the expiration of such right
          to revoke; and

     (c)  shall not become final and binding if you revoke such execution.

12.  Other Agreements. Except as otherwise specifically provided in this
Agreement, this instrument constitutes the entire agreement between you and the
Company and supersedes all prior agreements, including your July 1, 1999
Employment Agreement with PrivateBancorp, Inc. and understandings, written or
oral, including your July 1, 1999 Employment Agreement with PrivateBancorp, Inc.
that may have been made by and between you and the Company or the Affiliates
other than the General Release and Waiver, which is attached hereto and made a
part hereof.

13.  Notices. Notices and all other communications provided for in this
Agreement shall be in writing and shall be delivered personally or sent by
registered or certified mail, return receipt requested, postage prepaid, or sent
by facsimile or prepaid overnight courier to the parties at the addresses set
forth below (or such other addresses as shall be specified by the parties by
like notice). Such notices, demands, claims and other communications shall be
deemed given:

     (a)  in the case of deliver by overnight service with guaranteed next day
          delivery, the next day or the day designated for delivery;

     (b)  in the case of certified or registered U.S. mail, five days after
          deposit in the U.S. mail; or

     (c)  in the case of facsimile, the date upon which the transmitting party
          received confirmation or receipt by facsimile, telephone or otherwise;

     provided, however, that in no event shall any such communications be deemed
     to be given later than the date they are actually received. Communications
     that are to be delivered by the U.S. mail or by overnight service are to be
     delivered to the addresses set forth below:

<PAGE>

Donald A. Roubitchek
August 31, 2000
Page 5

     to the Company:

            PrivateBancorp, Inc.
            10 North Dearborn Street
            Suite 900
            Chicago, IL 60602
            Attn:  Chairman of the Board

     or to you:

            Donald A. Roubitchek
            263 Chandler Avenue
            Elmhurst, Illinois 60126

     Each party, by written notice furnished to the other party, may modify the
applicable delivery address, except that notice of change of address shall be
effective only upon receipt.

14.  Governing Law. This Agreement shall be construed in accordance with the
laws of the State of Illinois, without regard to the conflict of law provisions
of any state.

15.  Counterparts. This Agreement may be executed in more than one counterpart,
but all of which together will constitute one and the same agreement.

16.  Arbitration of All Disputes. Any controversy or claim arising out of or
relating to this Agreement (or the breach thereof) shall be settled by final,
binding and non-appealable arbitration in Chicago, Illinois by three
arbitrators. Except as otherwise expressly provided in this paragraph 21, the
arbitration shall be conducted in accordance with the rules of the American
Arbitration Association (the "Association") then in effect. One of the
arbitrators shall be appointed by the Company, one shall be appointed by you,
and the third shall be appointed by the first two arbitrators. If the first two
arbitrators cannot agree on the third arbitrator within 30 days of the
appointment of the second arbitrator, then the third arbitrator shall be
appointed by the Association. This paragraph 16 shall not be construed to limit
the Company's right to obtain relief under paragraph 5 with respect to any
matter or controversy subject to paragraph 3 or 4, and, pending a final
determination by the arbitrator with respect to any such matter or controversy,
the company shall be entitled to obtain any such relief by direct application to
state, federal, or other applicable court, without being required to first
arbitrate such matter of controversy.

     If you agree to the terms of this Agreement, please indicate your agreement
by signing and returning a copy of this letter to the undersigned, along with a
signed and notarized copy of the General Release and Waiver.

                                    Very truly yours,

                                    PrivateBancorp, Inc.
                                    PrivateBank and Trust Company

                                    By: /s/ Ralph B. Mandell
                                        ----------------------------------------
                                            Ralph B. Mandell
                                            Chairman, President and Chief
                                            Executive Officer

<PAGE>

Donald A. Roubitchek
August 31, 2000
Page 6

Accepted and agreed to this
26th day of September, 2000.

/s/ Donald A. Roubitchek
----------------------------
    Donald A. Roubitchek

<PAGE>

                                  ATTACHMENT 1

                           GENERAL RELEASE AND WAIVER

1.   This document is attached to, is incorporated into, and forms a part of, an
agreement (the "Agreement") by and between PrivateBancorp, Inc. and PrivateBank
and Trust Company (collectively, the "Company") and Donald A. Roubitchek (the
"Employee). Except for a claim based upon a breach of the Agreement, the
Employee, on behalf of himself and the other Employee Releasors, releases and
forever discharges the Company and the other Company Releases from any and all
Claims which the Employee now has or claims, or might hereafter have or claim
(or the other Employee Releasors may have, to the extent that it is derived from
a Claim which the Employee may have), against the Company Releasees based upon
or arising out of any matter or thing whatsoever, occurring or arising out of or
relates to the Employee's employment by the Company and its affiliates including
his service as an officer and director of the Company and/or the Employee's
termination or resignation therefrom, and Claims arising under any local, state,
or federal law dealing with employment discrimination, including the Age
Discrimination in Employment Act as amended by the Older Workers Benefit
Protection Act.

     For purposes of this General Release and Waiver, the terms set forth below
shall have the following meanings:

     (a)  The term "Claims" shall include any and all rights, claims, demands,
          debts, dues, sums of money, accountants, attorneys' fees, complaints,
          judgments, executions, actions and causes of action of any nature
          whatsoever, cognizable at law or equity.

     (b)  The term "Company Releasees" shall include the Company and its
          affiliates, and their officers, directors, trustees, members,
          representatives, agents, employees, shareholders, partners, attorneys,
          and insurers, and their predecessors and successors.

     (c)  The term "Employee Releasors" shall include the Employee, and his
          heirs, representatives, agents, insurers, and any other person
          claiming through the Employee.

2.   The following provisions are applicable to and made a part of the Agreement
and this General Release and Waiver:

     (a)  By this General Release and Waiver, the Employee Releasors do not
          release or waive any right or claim which they may have under the Age
          Discrimination in Employment Act, as amended by the Older Workers
          Benefit Protection act, which arises after the date of execution of
          this General Release and Waiver.

     (b)  In exchange for this General Release and Waiver, the Employee hereby
          acknowledges that he has received separate consideration beyond that
          to which he is otherwise entitled under the Company's policy or
          applicable law.

     (c)  The Company hereby expressly advises the Employee to consult with an
          attorney of his choosing prior to executing the Agreement or this
          General Release and Waiver.

     (d)  The Employee has twenty-one (21) days from the date of presentment to
          consider whether or not to execute the Agreement and this General
          Release and waiver. In the event of such execution, the Employee has a
          further period of seven (7) days from the date of said execution in
          which to revoke said execution. The Agreement and this General Release
          and Waiver will not become effective until expiration of such
          revocation period.

     (e)  the Agreement (including this General Release and Waiver) and the
          commitments and obligations of all parties thereunder:

          i.   shall become final and binding immediately following the
               expiration of the Employee's right to revoke the execution of the
               Agreement in accordance with paragraph 2(d) of this General
               Release and Waiver;

<PAGE>

          ii.  shall not become final and binding until the expiration of such
               right to revoke; and

          iii. shall not become final and binding if the Employee revokes such
               execution.

     (f)  The Employee hereby acknowledges that he has carefully read and
          understands the terms of the Agreement and this General Release and
          Waiver and each of his rights as set forth therein.

                                                  /s/ Donald A. Roubitchek
                                               -------------------------------
                                                      Donald A. Roubitchek

                                               Date: September 26, 2000
                                                     ---------------------------

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