Document:

FORM OF SUBORDINATED UNSECURED NOTE

THIS NOTE HAS NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "ACT").  NO TRANSFER OF THIS NOTE OR ANY INTEREST HEREIN MAY BE MADE EXCEPT
PURSUANT TO AN  EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE ACT OR UNLESS SUCH
TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE ACT.

                     KEYSTONE CONSOLIDATED INDUSTRIES, INC.

                     6% SUBORDINATED UNSECURED NOTE DUE 2011

No. __________                                              $
                                                            -----------------

Interest Payment Dates:  March 15 and             Maturity Date:  May 31, 2011
September 15, commencing September 15, 2002,
with a final payment on May 31, 2011

     KEYSTONE  CONSOLIDATED  INDUSTRIES,   INC.,  a  Delaware  corporation  (the
"Company"), for value received promises to pay to

____________________________________ or registered assigns, the principal sum of
____________________  Dollars in installments of __________ Dollars on March 15,
2009,  __________  Dollars on March 15, 2010,  ___________  Dollars on March 15,
2011 and __________ Dollars on May 31, 2011.

     Capitalized  terms used herein shall have the meanings  assigned to them in
Section 7 below unless otherwise indicated.

     1.  Interest.  The  Company  promises to pay  interest  on the  outstanding
principal  amount  of this  Note at the  rate of 6% per  annum  from the date of
original issuance until maturity, as follows: (i) the Company will make payments
of interest at a rate of 1.5% per annum on the outstanding  principal  amount of
this Note semi-annually on March 15 and September 15 of each year until maturity
commencing September 15, 2002, and (ii) the remaining interest of 4.5% per annum
provided for herein shall accrue (the  "Deferred  Interest")  and be paid by the
Company in an amount equal to 25% of such accrued and unpaid  Deferred  Interest
on each of March 15, 2009,  March 15, 2010 and March 15, 2011 and all  remaining
accrued  and unpaid  Deferred  Interest  will be paid by the  Company on May 31,
2011. The Company shall pay interest  (including  post-petition  interest in any
proceeding  under any Bankruptcy Law) on overdue  payments of the principal from
time to time on demand at a rate that is 1% per annum in excess of the rate then
in effect; the Company shall pay interest (including  post-petition  interest in
any proceeding  under any Bankruptcy  Law) on overdue  installments  of interest
(without  regard to any applicable  grace  periods)  hereon from time to time on
demand at the same rate to the extent  lawful.  Interest will be computed on the
basis of a 360-day year of twelve 30-day months.

     2. Method of Payment.  Payment of principal  and  interest  will be made by
wire  transfer  of  immediately   available  funds  pursuant  to  wire  transfer
instructions  provided to the Company by the Holder of this Note.  Such  payment
shall be in such coin or currency of the United States of America as at the time
of payment is legal tender for payment of public and private debts.

     3. Optional Prepayment. This Note may be prepaid in whole or in part at the
option of the Company at any time and from time to time without penalty. Accrued
and unpaid  interest  to the date of any such  prepayment  shall be paid in full
with respect to the principal amount prepaid at the time of such prepayment.

     4. Defaults and Remedies. Events of Default include the following:

          (a) the Company  defaults  in the payment  when due of interest on the
     Note and such default continues for a period of 30 days;

          (b) the Company  defaults in the payment  when due of principal of the
     Note, whether at maturity or otherwise;

          (c) the Company or any Subsidiary:

               (i) commences a voluntary case under any Bankruptcy Law,

               (ii)  consents to the entry of an order for relief  against it in
          an involuntary case,

               (iii)  consents to the  appointment of a custodian or receiver of
          it or for all or substantially all of its property, or

               (iv) makes a general assignment for the benefit of its creditors;
          or

          (d) a court of competent  jurisdiction enters an order or decree under
     any Bankruptcy Law that:

               (i) is for relief in an  involuntary  case against the Company or
          any Subsidiary;

               (ii)  appoints a  custodian  or  receiver  of the  Company or any
          Subsidiary or for all or  substantially  all of the property of any of
          the foregoing;

               (iii) orders the  liquidation  of the Company or any  Subsidiary;
          and

               (iv) the order or decree  remains  unstayed  and in effect for 60
          consecutive days.

     If any Event of Default occurs and is  continuing,  the Holder of this Note
shall  notify the Company in writing of such Event of Default and, if such Event
of Default shall not be cured within 5 days of such written notice,  may declare
all of this Note to be due and payable  immediately.  Upon any such declaration,
the entire  principal  amount of, and accrued and unpaid  interest on, this Note
shall become immediately due and payable, unless all Events of Default specified
in such  acceleration  notice  (other  than any Event of  Default  in respect of
non-payment  of principal or  interest,  if any,  which has become due solely by
reason  of  such   declaration   of   acceleration)   shall  have  been   cured.
Notwithstanding  the foregoing,  if an Event of Default  specified in subsection
4(c) or 4(d) hereof occurs with respect to the Company or any  Subsidiary,  this
Note will become due and payable without further action or notice.

     In  addition  to the  foregoing,  if an  Event  of  Default  occurs  and is
continuing , the Holder of this Note may pursue any available  remedy to collect
the  payment of  principal  of, or  interest  on,  this Note or to  enforce  the
performance  of any provision of this Note. A delay or omission by the Holder in
exercising  any  right or remedy  accruing  upon an Event of  Default  shall not
impair  the right or remedy or  constitute  a waiver of or  acquiescence  in the
Event of Default. All remedies are cumulative to the extent permitted by law.

     5. Rank and Subordination. This Note shall rank (i) senior to the Company's
Subordinated   Indebtedness   and  (ii)  subordinate  to  the  Company's  Senior
Indebtedness to the extent and in the manner provided in this Section 5.

     (a) The  Company  agrees,  and the  Holder of this  Note by his  acceptance
hereof likewise  agrees,  that the payment of the principal of, and interest and
any  other  amounts  on,  this  Note  (all  of the  foregoing,  a  "Payment"  or
"Distribution")  is subordinated  and junior in right of payment,  to the extent
and in the manner provided in this Section 5, to the prior  irrevocable  payment
in full in cash of all  Senior  Indebtedness  whether  outstanding  on the  date
hereof or  hereafter  created,  incurred,  assumed or  guaranteed.  A Payment or
Distribution  shall include any asset of any kind or character,  and may consist
of cash, securities or other property, by set-off or otherwise.

     (b) The Senior  Indebtedness  of the  Company  shall  continue to be Senior
Indebtedness  and  entitled  to the  benefit of these  subordination  provisions
irrespective of any amendment, modification, refunding, refinancing or waiver of
any term of any instrument  relating to refinancing of the Senior  Indebtedness.
Any amendment or modification  of this Section 5 shall not be effective  against
any holder of Senior  Indebtedness unless the holder of such Senior Indebtedness
so consents.

     (c) All the  provisions of this Note shall be subject to the  provisions of
this Section 5 so far as they may be applicable thereto.

     (d)  No  right  of  any  holder  of  any  Senior  Indebtedness  to  enforce
subordination  as herein provided shall at any time or in any way be affected or
impaired  by any failure to act on the part of the  Company,  the Holder of this
Note, or the holders of the Senior Indebtedness,  or by any noncompliance by the
Company  or the  Holder  of this  Note  with any of the  terms,  provisions  and
covenants of this Note, regardless of any knowledge thereof that any such holder
of Senior Indebtedness may have or be otherwise charged with.

     (e) No Payment or  Distribution  shall be made by the Company on account of
principal of, or interest or any other amount on, this Note, whether upon stated
maturity or acceleration,  or otherwise,  or on account of the purchase or other
acquisition  of this Note,  whether  upon stated  maturity or  acceleration,  or
otherwise,  and the Holder of this Note  shall not  accept  any such  payment if
there shall have occurred and be continuing a default with respect to any Senior
Indebtedness  permitting the acceleration thereof or with respect to the payment
of any Senior  Indebtedness,  unless and until such  default or event of default
shall have been cured or waived or shall have ceased to exist.

     Until the Senior  Indebtedness  is paid in full in cash, the Holder of this
Note shall not take any action to collect,  enforce  payment or  accelerate  the
obligations  under this Note,  exercise any of the remedies with respect to this
Note or that  otherwise  may be available  to such  Holder,  either at law or in
equity by judicial proceedings or otherwise.

     Upon any  acceleration  of the principal of this Note or any payment by the
Company  or  distribution  of assets of the  Company  of any kind or  character,
whether in cash,  property or securities,  to creditors upon any  dissolution or
winding up or liquidation or reorganization of the Company, whether voluntary or
involuntary,  or in bankruptcy,  insolvency,  receivership or other proceedings,
all  amounts  due or to become due upon all Senior  Indebtedness  shall first be
paid in full in cash, or payment thereof provided for to the satisfaction of the
holders  thereof,  before any Payment or  Distribution is made on account of the
principal  of, or interest or any other amount on, this Note;  and upon any such
dissolution  or winding up or  liquidation  or  reorganization,  any  Payment or
Distribution by the Company or distribution of assets of the Company of any kind
or character,  whether in cash, property or securities (other than securities of
the Company as  reorganized  or  readjusted  or securities of the Company or any
other company,  trust or corporation provided for by a plan of reorganization or
readjustment,  the payment of which is junior or otherwise subordinate, at least
to the  extent  provided  in this  Section  5 with  respect  to this Note to the
payment of all Senior Indebtedness at the time outstanding and to the payment of
all  securities  issued  in  exchange  therefor  to the  holders  of the  Senior
Indebtedness  at the time  outstanding,  and the rights of the holders of Senior
Indebtedness  of the Company are not altered by such plan of  reorganization  or
readjustment), to which the Holder of this Note would be entitled except for the
provisions  of this Section 5, shall be paid by the Company or by any  receiver,
trustee in bankruptcy,  liquidating  trustee,  agent or other Person making such
Payment or  Distribution  directly to the holders of Senior  Indebtedness of the
Company  or  their  representative  or  representatives,  or to the  trustee  or
trustees under any indenture  pursuant to which any  instruments  evidencing any
Senior  Indebtedness  may have been issued,  as their  respective  interests may
appear, to the extent necessary to pay all Senior  Indebtedness in full in cash,
after giving  effect to any  concurrent  payment or  distribution  to or for the
holders of Senior  Indebtedness,  before any Payment or  Distribution is made to
the Holder of this Note.

     In  the  event  that,   notwithstanding  the  foregoing,   any  Payment  or
Distribution  by the Company of any kind or  character,  (whether  such  payment
shall be in cash,  property or securities) which is prohibited by the foregoing,
shall have been made to the Holder of this Note  before all Senior  Indebtedness
is  irrevocably  paid in full in cash,  or provision is made for such payment to
the satisfaction of the holders  thereof,  and if such fact shall then have been
or thereafter  be made known to the Holder of this Note,  then and in such event
such  Payment or  Distribution  shall be paid over by the Holder of this Note or
delivered  to the  holders of Senior  Indebtedness  or their  representative  or
representatives,  or to the trustee or trustees under any indenture  pursuant to
which any instruments  evidencing any Senior  Indebtedness may have been issued,
as their respective  interests may appear, for application to the payment of all
Senior  Indebtedness  remaining unpaid to the extent necessary to pay all Senior
Indebtedness in full in cash,  after giving effect to any concurrent  Payment or
Distribution  to or for the holders of such Senior  Indebtedness,  and, until so
delivered,  the same  shall be held in trust by the  Holder  of this Note as the
property of the holders of Senior Indebtedness.

     The  consolidation  of the Company with, or the merger of the Company into,
another Person or the  liquidation  or dissolution of the Company  following the
conveyance or transfer of its property as an entirety,  or  substantially  as an
entirety, to another corporation shall not be deemed a dissolution,  winding up,
liquidation or reorganization  for the purposes of this subsection 5(e) if, as a
part of such  consolidation,  merger,  conveyance  or  transfer,  the  following
conditions are complied with:

          (i) the Company  shall be the surviving  corporation  or the entity or
     the Person  formed by or  surviving  any such  consolidation  or merger (if
     other  than the  Company),  or to which such  sale,  assignment,  transfer,
     lease, conveyance or other disposition shall have been made (the "Surviving
     Entity"),  is a corporation  organized  and existing  under the laws of the
     United States, any state thereof, or the District of Columbia;

          (ii) the Surviving  Entity,  if any, assumes all of the obligations of
     the Company under this Note;

          (iii) immediately after giving effect to such transaction,  no Default
     or Event of Default shall have occurred and be continuing; and

          (iv) in the case of a transfer  of assets,  the  Surviving  Entity has
     acquired  all or  substantially  all of the  assets  of the  Company  as an
     entirety.

     The holders of Senior  Indebtedness may, at any time and from time to time,
without the consent of or notice to the Holder of this Note,  without  incurring
responsibility to the Holder of this Note and without impairing or releasing the
obligations  of the  Holder  of this Note  hereunder  to the  holders  of Senior
Indebtedness:  (i)  change  the  manner,  place or terms of payment or change or
extend  the time of  payment  of, or renew or  alter,  Senior  Indebtedness,  or
otherwise amend in any manner Senior  Indebtedness or any instrument  evidencing
the same or any agreement under which Senior  Indebtedness is outstanding;  (ii)
sell, exchange,  release or otherwise deal with any property pledged,  mortgaged
or otherwise  securing Senior  Indebtedness;  (iii) release any Person liable in
any manner for the  collection  of Senior  Indebtedness;  (iv) apply any amounts
received  to  any   liability  of  the  Company   owing  to  holders  of  Senior
Indebtedness;  and/or (v) exercise or refrain from exercising any rights against
the Company and any other Person.

     (f) Subject to the prior irrevocable payment in full in cash of all amounts
then due (whether by  acceleration  of the  maturity  thereof or  otherwise)  on
account of all Senior  Indebtedness at the time outstanding,  the Holder of this
Note shall be subrogated to the rights of the holders of Senior  Indebtedness to
receive Payments or Distributions of cash, property or securities of the Company
applicable  to the Senior  Indebtedness  until the principal of, or interest on,
this Note shall be paid in full; and, for the purposes of such  subrogation,  no
Payments or  Distributions  to the holders of Senior  Indebtedness  to which the
Holder of this Note would be entitled  except for the provisions of this Section
5, and no payments  pursuant to the  provisions of this Section 5 to the holders
of Senior  Indebtedness  by the  Holder of this  Note,  shall,  as  between  the
Company, the Company's creditors other than holders of Senior Indebtedness,  and
the  Holder of this  Note,  be deemed to be a payment  by the  Company  to or on
account of the Senior Indebtedness. It is understood that the provisions of this
Section 5 are and are  intended  solely for the purpose of defining the relative
rights of the Holder of this Note,  on the one hand,  and the  holders of Senior
Indebtedness, on the other hand.

     Nothing  contained  in this Section 5 or elsewhere in this Note is intended
to or shall impair,  as among the Company,  its creditors other than the holders
of Senior  Indebtedness,  and the Holder of this  Note,  the  obligation  of the
Company, which is absolute and unconditional,  to pay to the Holder of this Note
the  principal  of, and interest on, this Note as and when the same shall become
due and payable in accordance with the terms hereof,  or is intended to or shall
affect  the  relative  rights of the  Holder of this Note and  creditors  of the
Company other than the holders of Senior Indebtedness, nor shall anything herein
or  therein  prevent  the  Holder  of this  Note from  exercising  all  remedies
otherwise  permitted by applicable  law upon default  hereunder,  subject to the
rights,  if any, under this Section 5 of the holders of Senior  Indebtedness  in
respect  of cash,  property  or  securities  of the  Company  received  upon the
exercise of any such remedy.

     Upon any payment or  distribution  of assets of the Company  referred to in
this Section 5, the Holder of this Note shall be entitled to rely upon any order
or decree made by any court of competent  jurisdiction in which any dissolution,
winding  up,   liquidation  or  reorganization   proceedings  are  pending,   or
certificate of the receiver,  trustee in bankruptcy,  liquidating trustee, agent
or other Person making such payment or distribution,  delivered to the Holder of
this Note, for the purpose of ascertaining  the Persons  entitled to participate
in such distribution,  the holders of Senior Indebtedness and other indebtedness
of the Company,  the amount  thereof or payable  thereon,  the amount or amounts
paid or  distributed  thereon and all other facts  pertinent  thereto or to this
Section 5.

     (g) The Company shall give prompt written notice to the Holder of this Note
of any fact known to the Company which would  prohibit the making of any payment
to the Holder in respect of this Note pursuant to the provisions of this Section
5.  Notwithstanding  the provisions of this Section 5 or any other  provision of
this Note,  the Holder shall not be charged with  knowledge of the  existence of
any facts  which  would  prohibit  the  making of any  payment  to the Holder in
respect of this Note  pursuant to the  provisions  of this  Section 5 unless and
until the Holder shall have received  written notice thereof from the Company or
a  holder  or  holders  of  Senior  Indebtedness  or from any  trustee  or agent
therefor;  and, prior to the receipt of any such written  notice,  the Holder of
this  Notice  shall be  entitled  in all  respects  to assume that no such facts
exist.

     (h) No right of any present or future holder of any Senior  Indebtedness to
enforce  subordination  as  herein  provided  shall  at any  time  in any way be
prejudiced  or  impaired by any act or failure to act on the part of the Company
or the Holder of this Note or by any act, or failure to act,  in good faith,  by
any such holder of Senior  Indebtedness,  or by any noncompliance by the Company
or the  Holder of this Note with the terms,  provisions  and  covenants  of this
Note,  regardless  of any  knowledge  thereof  which any such holder may have or
otherwise be charged with.

     (i) The failure to make a payment on account of  principal  of, or interest
on,  this  Note by  reason  of any  provision  in this  Section  5 shall  not be
construed as  preventing  the  occurrence of an Event of Default with respect to
this Note hereunder.

     (j) The  indebtedness  represented by this Note will be senior and prior in
right of  payment  to all  Subordinated  Indebtedness  to the  extent and in the
manner provided in such Subordinated Indebtedness.

     6. No  Recourse  Against  Others.  No past,  present  or  future  director,
officer,  employee,  incorporator or stockholder of the Company,  as such, shall
have any liability for any obligations of the Company under this Note or for any
claim  based on, in  respect  of, or by reason  of,  such  obligations  or their
creation.  The  Holder by  accepting  this Note  waives  and  releases  all such
liability. The waiver and release are part of the consideration for the issuance
of this Note.

     7.  Definitions.  For the purposes of this Note, the following  terms shall
have the meanings set forth below:

          "Bankruptcy  Law"  means  Title  11 of the  U.S.  Code or any  similar
     Federal or state law for the relief of debtors.

          "Capital  Stock"  means  (i) in the case of a  corporation,  corporate
     stock, (ii) in the case of an association or any other business entity, any
     and all  shares,  interests,  participations,  rights or other  equivalents
     (however  designated) in the equity of such association or entity, (iii) in
     the  case of a  partnership,  partnership  interests  (whether  general  or
     limited),  and (iv) any other interest or  participation  that confers on a
     Person  the  right to  receive a share of the  profits  and  losses  of, or
     distributions of assets of, the issuing Person.

          "Guarantee"  means, as applied to any  Indebtedness of another Person,
     (i) a guarantee  (other than by endorsement of negotiable  instruments  for
     collection in the ordinary course of business),  direct or indirect, in any
     manner,  of all or any  part of  such  Indebtedness,  (ii)  any  direct  or
     indirect obligation,  contingent or otherwise,  of a Person guaranteeing or
     having the effect of guaranteeing  the  Indebtedness of any other Person in
     any  manner  and  (iii) an  agreement  of a  Person,  direct  or  indirect,
     contingent or otherwise,  the practical effect of which is to assure in any
     way the  payment  or  performance  (or  payment  of damages in the event of
     non-performance) of all or any part of such Indebtedness of another Person.

          "Hedging   Obligations"   means,  with  respect  to  any  Person,  the
     obligations  of such  Person  under  (i)  interest  rate  swap  agreements,
     interest  rate cap  agreements,  interest rate collar  agreements  and (ii)
     other  agreements or  arrangements  designed to protect such Person against
     fluctuations in interest rates.

          "Holder" means a Person in whose name this Note is registered.

          "Indebtedness" means, with respect to any Person, without duplication,
     whether  recourse  is to all or a portion of the assets of such  Person and
     whether or not contingent:

     (i) any  liability  of such  Person (a) for  borrowed  money,  or under any
reimbursement  obligation relating to a letter of credit, bankers' acceptance or
note  purchase  facility;  (b) evidenced by a bond,  note,  debenture or similar
instrument;  (c) for the balance  deferred and unpaid of the purchase  price for
any  property  or service or any  obligation  upon which  interest  charges  are
customarily  paid (except for accrued  expenses or trade payables arising in the
ordinary  course of business);  (d) for the payment of money relating to a lease
that is required to be classified  as a capital  lease  obligation in accordance
with United States generally accepted  accounting  principles;  (e) secured by a
Lien;

     (ii)  any  obligation  of  others  secured  by a Lien on any  asset of such
Person,  whether or not any obligation  secured thereby has been assumed by such
Person;

     (ii) any obligations of such Person under any Hedging Obligation; and

     (iv) any Guarantee of such Person or any obligation of such Person which in
economic  effect is a  guarantee  with  respect to any  Indebtedness  of another
Person.

     "Lien"  means,  with  respect to any asset,  any  mortgage,  lien,  pledge,
charge,  security  interest or encumbrance of any kind in respect of such asset,
whether or not filed,  recorded or  otherwise  perfected  under  applicable  law
(including any conditional sale or other title retention agreement, any lease in
the nature  thereof,  any option or other  agreement  to sell or give a security
interest in and any filing of or agreement to give any financing statement under
the Uniform Commercial Code (or equivalent statutes) of any jurisdiction).

     "Person" means any individual, corporation, limited or general partnership,
limited  liability  company,  joint venture,  association,  joint stock company,
trust,  entity,  unincorporated  organization  or  government  or any  agency or
political subdivision thereof.

     "Senior  Indebtedness"  means the  principal,  premium,  if any, and unpaid
interest  (including interest accruing on or after the filing of any petition in
bankruptcy or for reorganization  relating to the Company whether or not a claim
for post-filing interest is allowed in such proceeding,  including interest that
would have accrued but for the filing), fees, charges,  expenses,  reimbursement
and  indemnification  obligations,  and all other  amounts  payable  under or in
respect of Indebtedness of the Company,  whether any such Indebtedness exists as
of the date of this Indenture or shall hereafter be created,  incurred,  assumed
or guaranteed, as may be amended from time to time and any renewals, extensions,
refundings, refinancings,  amendments and modifications of any such indebtedness
or obligations or of the instruments creating or evidencing such indebtedness or
obligations or guarantees; provided, however, that Senior Indebtedness shall not
include (i) Indebtedness owed to a Subsidiary,  (ii) Indebtedness of the Company
which is expressly pari passu to this Note or (iii) Subordinated Indebtedness.

     "Subordinated  Indebtedness"  means any  Indebtedness of the Company now or
hereafter  outstanding which by its terms is expressly  subordinated in right of
payment to this Note.

     "Subsidiary"  means  with  respect  to any  Person,  (i)  any  corporation,
association or other business  entity of which more than 50% of the total voting
power of shares of Capital Stock entitled  (without  regard to the occurrence of
any  contingency)  to vote in the  election of  directors,  managers or trustees
thereof is at the time owned or  controlled,  directly  or  indirectly,  by such
Person  or one or  more  of the  other  Subsidiaries  of  that  Person  (or in a
combination  thereof) and (ii) any partnership or limited  liability company (a)
the sole general partner or member or the managing  general partner or member of
which is such  Person or a  Subsidiary  of such  Person or (b) the only  general
partners or members of which are such Person or of one or more  Subsidiaries  of
such Person (or any combination thereof).

     8.  Abbreviations.  Customary  abbreviations  may be used in the  name of a
Holder or an  assignee,  such as TEN COM ( =  tenants  in  common),  TEN ENT ( =
tenants by the entireties),  JT TEN ( = joint tenants with right of survivorship
and not as tenants in  common),  CUST ( =  Custodian),  and  U/G/M/A ( = Uniform
Gifts to Minors Act).

     9.  Governing  Law.  This  Note  shall  be  governed  by and  construed  in
accordance with the laws of the State of New York,  including  Section 5-1401 of
the General  Obligation  Law, but  otherwise  without  regard to conflict of law
rules.  The Company hereby  irrevocably  submits to the  jurisdiction of any New
York state court  sitting in the Borough of Manhattan in the City of New York or
any Federal court sitting in the Borough of Manhattan in the City of New York in
respect of any suit,  action or  proceeding  arising  out of or relating to this
Note,  and  irrevocably  accepts  for itself  and in  respect  of its  property,
generally and unconditionally, jurisdiction of the aforesaid courts. The Company
irrevocably  waives,  to the fullest extent that it may  effectively do so under
applicable  law,  trial by jury and any objection  which it may now or hereafter
have to the laying of the venue of any such suit,  action or proceeding  brought
in any such court and any claim that any such suit, action or proceeding brought
in any such court has been  brought in an  inconvenient  forum.  Nothing  herein
shall affect the right of the Holder of this Note to serve  process in any other
manner  permitted by law or to commence legal  proceedings or otherwise  proceed
against the Company in any other jurisdiction.

     IN WITNESS  WHEREOF,  the Company has caused this Note to be duly  executed
under its corporate seal.

[SEAL]                             KEYSTONE CONSOLIDATED
                                   INDUSTRIES, INC.

                                   By:
                                      -----------------------------------------
                                   Name:
                                      -----------------------------------------
                                   Title:
                                      -----------------------------------------

                                   By:
                                      -----------------------------------------
                                   Name:
                                      -----------------------------------------
                                   Title:
                                      -----------------------------------------

<PAGE>

                                 ASSIGNMENT FORM

                  To assign this Note, fill in the form below:

                  (I) or (we) assign and transfer this Note to:

                  (Insert assignee's soc. sec. or tax I.D. no.)

              (Print or type assignee's name, address and zip code)

and irrevocably appoint agent to transfer this Note on the books of the Company.
The agent may substitute another to act for him.

Date: __________

                         Your Signature:
                                        -------------------------------------
                                       (Sign  exactly  as your  name  appears on
                                         the face of this Note)

     Signature Guarantee:_______________________________________________________

                                    (Signatures must be guaranteed by an
                                    "eligible guarantor institution" meeting the
                                    requirements of the Registrar, which
                                    requirements include membership or
                                    participation in the Security Transfer Agent
                                    Medallion Program ("STAMP") or such other
                                    "signature guarantee program" as may be
                                    determined by the Registrar in addition to,
                                    or in substitution for, STAMP, all in
                                    accordance with the Securities Exchange Act
                                    of 1934, as amended.)Exhibit A

                        FORM OF SUBORDINATED SECURED NOTE

                       (Face of Subordinated Secured Note)

                     KEYSTONE CONSOLIDATED INDUSTRIES, INC.

                      8% SUBORDINATED SECURED NOTE DUE 2009

[THISNOTE  IS A GLOBAL  NOTE  WITHIN THE  MEANING OF THE  INDENTURE  HEREINAFTER
REFERRED  TO AND IS  REGISTERED  IN THE NAME OF A  DEPOSITARY  OR A NOMINEE OF A
DEPOSITARY OR A SUCCESSOR  DEPOSITARY.  THIS NOTE IS NOT  EXCHANGEABLE FOR NOTES
REGISTERED  IN THE NAME OF A PERSON  OTHER THAN THE  DEPOSITARY  OR ITS  NOMINEE
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE,  AND NO TRANSFER
OF THIS  SECURITY  (OTHER  THAN A TRANSFER  OF THIS  SECURITY  AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE  DEPOSITARY OR BY A NOMINEE OF THE  DEPOSITARY TO
THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN
THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN  AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY  TRUST  COMPANY,  A  NEW  YORK  CORPORATION   ("DTC"),   TO  KEYSTONE
CONSOLIDATED  INDUSTRIES,  INC. (THE "COMPANY") OR ITS AGENT FOR REGISTRATION OF
TRANSFER,  EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO.  OR IN SUCH  OTHER  NAME  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC (AND ANY  PAYMENT  IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE  OF DTC),  ANY TRANSFER,
PLEDGE  OR OTHER  USE  HEREOF  FOR  VALUE OR  OTHERWISE  BY OR TO ANY  PERSON IS
WRONGFUL  INASMUCH AS THE REGISTERED  OWNER HEREOF,  CEDE & CO., HAS AN INTEREST
HEREIN.] 1

THIS NOTE HAS NOT BEEN REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR UNDER  ANY STATE  SECURITIES  LAWS,  BUT HAS BEEN  ISSUED  IN  RELIANCE  UPON
EXEMPTIONS  THEREFROM.  NO TRANSFER OF THIS NOTE OR ANY INTEREST  THEREIN MAY BE
MADE EXCEPT PURSUANT TO AN EFFECTIVE  REGISTRATION  STATEMENT UNDER SUCH ACT AND
UNDER  APPLICABLE  STATE  SECURITIES  LAWS,  UNLESS THE COMPANY HAS  RECEIVED AN
OPINION  OF COUNSEL  OR OTHER  EVIDENCE,  SATISFACTORY  TO THE  COMPANY  AND ITS
COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.

This instrument and the rights and obligations  evidenced hereby are subordinate
in the  manner  and to the  extent  set  forth in  Article  III of that  certain
Indenture,  entered  into as of March 15, 2002 by and between THE  COMPANY,  and
U.S. Bank  National  Association,  as trustee,  to the senior  indebtedness  (as
defined in such indenture) OF the Company,  including,  without limitation,  the
Peoria County Loan and Indebtedness under the Senior Credit Facility  Documents,
each as defined in the  indenture;  and each holder of this  instrument,  by its
acceptance  hereof,  irrevocably  agrees  to be bound by the  provisions  of the
Indenture.

<PAGE>

                     KEYSTONE CONSOLIDATED INDUSTRIES, INC.
                      8% SUBORDINATED SECURED NOTE DUE 2009

No. __________                                  $
                                                -----------------

Record Dates:  February 28 and August 31        CUSIP No.
                                                    -------------

Interest Payment Dates:  March 15 and           Maturity Date:  March 15, 2009
September 15, commencing September 15, 2002

     KEYSTONE  CONSOLIDATED  INDUSTRIES,   INC.,  a  Delaware  corporation  (the
"Company,"  which term  includes any successor  corporation  under the Indenture
hereinafter   referred   to),   for   value   received   promises   to   pay  to
____________________________________ or registered assigns, the principal sum of
____________________  Dollars in installments of __________ Dollars on March 15,
2007,  __________ Dollars on March 15, 2008, and __________ Dollars on March 15,
2009.

     Reference is hereby made to the further  provisions  of this Note set forth
on the reverse hereof,  which further provisions shall for all purposes have the
same effect as set forth at this place.

     Unless the  certificate of  authentication  hereon has been executed by the
Trustee referred to on the reverse hereof by manual  signature,  this Note shall
not be entitled to any benefits  under the Indenture  referred to on the reverse
hereof or be valid or obligatory for any purpose.

     IN WITNESS  WHEREOF,  the Company has caused this Note to be duly  executed
under its corporate seal.

[SEAL]                            KEYSTONE CONSOLIDATED
                                  INDUSTRIES, INC.

                                  By:
                                     ------------------------------------------
                                  Name:
                                     ------------------------------------------
                                  Title:
                                     ------------------------------------------

                                  By:
                                     ------------------------------------------
                                  Name:
                                     ------------------------------------------
                                  Title:
                                     ------------------------------------------

This is one of the Notes referred to in the within-mentioned Indenture:

U.S. BANK NATIONAL ASSOCIATION,
as Trustee

By:                                                        Dated: __________
   --------------------------------------------------
Name:
     ------------------------------------------------
Title:
      -----------------------------------------------

<PAGE>

                       (Back of Subordinated Secured Note)

                      8% SUBORDINATED SECURED NOTE DUE 2009

     Capitalized  terms used herein shall have the meanings  assigned to them in
the Indenture referred to below unless otherwise indicated.

     1.  Interest.  The  Company  promises to pay  interest  on the  outstanding
principal  amount  of this  Note at the  rate of 8% per  annum  from the date of
original  issuance  until  maturity.  The Company will make payments of interest
semi-annually  on March 15 and  September 15 of each year, or if any such day is
not a Business  Day,  on the next  succeeding  Business  Day (each an  "Interest
Payment Date"),  as follows:  (i) commencing on the first Interest  Payment Date
next  succeeding  the date of original  issuance of this Note, the Company shall
pay one-half of such  interest  accrued  since the date of original  issuance on
such Interest  Payment Date and thereafter  until maturity the Company shall pay
one-half of such  interest  accrued  since the  immediately  preceding  Interest
Payment Date on each  successive  Interest  Payment Date; and (ii) the remaining
interest  accrued and unpaid  shall be paid  one-third on each of March 15, 2007
and March 15, 2008, and all remaining  accrued and unpaid interest shall be paid
in full on March 15, 2009; provided,  however, that each of the payments of such
remaining  accrued and unpaid  interest shall not be made until such time as the
Company has paid in full all Senior Indebtedness (including, without limitation,
the  Peoria  County  Loan and  Indebtedness  under the  Senior  Credit  Facility
Documents),  as  provided  in the  Indenture.  The  Company  shall pay  interest
(including post-petition interest in any proceeding under any Bankruptcy Law) on
overdue payments of the principal and Redemption Price of this Note from time to
time on  demand  at a rate  that is 1% per  annum in  excess of the rate then in
effect; the Company shall pay interest (including  post-petition interest in any
proceeding  under  any  Bankruptcy  Law) on  overdue  installments  of  interest
(without  regard to any applicable  grace  periods)  hereon from time to time on
demand at the same rate to the extent  lawful.  Interest will be computed on the
basis of a 360-day year of twelve 30-day months.

     2. Method of Payment.  The Company will pay  interest on the Notes  (except
defaulted  interest) to the Persons who are  registered  Holders of Notes at the
close of  business  on  February  28 or August 31 next  preceding  the  Interest
Payment Date,  even if such Notes are canceled  after such record date and on or
before such  Interest  Payment  Date,  except as provided in Section 2.11 of the
Indenture with respect to defaulted  interest.  Any such installment of interest
not punctually  paid or duly provided for shall forthwith cease to be payable to
the  registered  Holders on such Interest  Payment Date,  and may be paid to the
registered  Holders at the close of business on a special  Interest Payment Date
to be fixed by the Trustee for the payment of such  defaulted  interest,  notice
whereof shall be given to the registered  Holders not less than 10 days prior to
such  special  Interest  Payment  Date,  or may be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities  exchange
on which the Notes may be listed,  and upon such  notice as may be  required  by
such exchange,  all as more fully  provided in the Indenture.  The Notes will be
payable as to  principal,  Redemption  Price and  interest  at the office of the
Paying Agent, or, at the option of the Company,  payment of interest may be made
by check mailed to the Holders at their  addresses  set forth in the register of
Holders;  provided,  however,  that  payment  by wire  transfer  of  immediately
available funds will be required with respect to principal and Redemption  Price
of, and  interest  on, all Global Notes and all other Notes the Holders of which
shall have  provided  wire  transfer  instructions  to the Trustee or the Paying
Agent.  Such payment  shall be in such coin or currency of the United  States of
America  as at the time of payment  is legal  tender  for  payment of public and
private debts.

     3.  Indenture.  The Company issued the Notes under an Indenture dated as of
March 15, 2002 (the "Indenture")  between the Company and the Trustee. The terms
of the Notes  include  those stated in the  Indenture and those made part of the
Indenture by reference to the Trust  Indenture  Act of 1939, as amended (15 U.S.
Code ss.ss.  77aaa-77bbbb),  to the extent incorporated  therein.  The Notes are
subject to all such terms, and Holders are referred to the Indenture and the TIA
for a statement of such terms. The Notes are general secured  obligations of the
Company to the extent of their  aggregate  principal  amount and any accrued and
unpaid interest thereon.

     4. Paying Agent and Registrar.  Initially,  U.S. Bank National Association,
the Trustee under the  Indenture,  will act as Paying Agent and  Registrar.  The
Company may change any Paying Agent or Registrar  without  notice to any Holder.
The Company may act in any such capacity.

     5. Optional  Redemption.  The Company may redeem any or all of the Notes at
any time,  upon not less than 30 nor more than 60 days' prior  notice in amounts
of $500 or an integral  multiple  thereof at the Redemption  Price together with
accrued  and  unpaid  interest  to the  Redemption  Date.  If less  than all the
outstanding  Notes are to be redeemed,  the Trustee  will select the  particular
Notes or portions thereof to be redeemed by lot, pro rata or by any other method
the Trustee shall deem fair and reasonable;  provided, however, that no Notes of
$500 or less shall be redeemed in part.

     6.  Mandatory  Redemption.  The  Company  shall  not be  required  to  make
mandatory redemption payments with respect to the Notes.

     7. Notice of  Redemption.  Subject to the  provisions of the  Indenture,  a
notice of  redemption  will be mailed at least 30 days but not more than 60 days
before the Redemption  Date to each Holder whose Notes are to be redeemed at its
registered address.  Notes in denominations  larger than $500 may be redeemed in
part but only in whole  multiples  of $500,  unless  all of the Notes  held by a
Holder are to be redeemed.  On and after the Redemption  Date interest ceases to
accrue on Notes or portions thereof called for redemption.

     8. Security  Documents.  In order to secure the due and punctual payment of
the principal of and interest on the Notes and all other amounts  payable by the
Company  under the  Indenture and the Notes when and as the same will be due and
payable,  whether at maturity,  by acceleration  or otherwise,  according to the
terms of the Notes and the Indenture, the Company has granted security interests
in and liens on the Collateral owned by it to the Trustee for the benefit of the
Holders of Notes pursuant to the Indenture and the Security Documents. The Notes
will be secured by Liens on and security  interests in the  Collateral  with the
priority contemplated in Section 11.1(a) of the Indenture and are subject to the
terms and conditions of the Intercreditor Agreement.

     Each Holder, by accepting a Note, agrees to all of the terms and provisions
of the Security Documents, as the same may be amended from time to time pursuant
to the respective provisions thereof and the Indenture.

     The  Trustee  and each  Holder  acknowledge  that a  release  of any of the
Collateral or any Lien strictly in accordance  with the terms and  provisions of
the Security Documents and the terms and provisions of the Indenture will not be
deemed for any purpose to be an impairment of the security under the Indenture.

     9. Denominations,  Transfer and Exchange.  The Notes are in registered form
without  coupons in  denominations  of $500 and integral  multiples of $500. The
transfer of Notes may be  registered  and Notes may be  exchanged as provided in
the Indenture.  The Registrar and the Trustee may require a Holder,  among other
things,  to furnish  appropriate  endorsements  and transfer  documents  and the
Company  may  require  a Holder to pay any  taxes  and fees  required  by law or
permitted  by the  Indenture.  The Company  need not  exchange  or register  the
transfer of any Note or portion of a Note  selected for  redemption,  except for
the  unredeemed  portion of any Note being  redeemed in part.  Also, it need not
exchange or register  the transfer of any Notes for a period of 15 days before a
selection of Notes to be redeemed or during the period between a record date and
the corresponding Interest Payment Date.

     10. Persons Deemed Owners.  The registered  Holder of a Note may be treated
as its owner for all purposes.  With respect to Global Notes, the Depositary may
grant  proxies and  otherwise  authorize  Holders of Notes  represented  by such
Global  Notes to give or take any  request,  demand,  authorization,  direction,
notice,  consent, waiver or other action which a Holder of a Note is entitled to
give or take under this Indenture.

     11. Amendment,  Supplement and Waiver.  Subject to certain exceptions,  the
Indenture and the Notes may be amended or  supplemented  with the consent of the
Holders  of at least a  majority  in  principal  amount of the then  outstanding
Notes,  and any  existing  default  or  compliance  with  any  provision  of the
Indenture  or the Notes may be  waived  with the  consent  of the  Holders  of a
majority in principal amount of the then outstanding Notes.  Without the consent
of any  Holder  of a  Note,  the  Indenture  and the  Notes  may be  amended  or
supplemented to cure any ambiguity, defect or inconsistency,  to provide for the
assumption  of the  Company's  obligations  to Holders of the Notes in case of a
merger or  consolidation,  to make any change that would provide any  additional
rights or benefits to the Holders of the Notes or that does not adversely affect
the legal  rights under the  Indenture  of any such  Holder,  to comply with any
applicable requirements of the Commission or the TIA, or to evidence and provide
for the  acceptance of  appointment  under the Indenture by a successor  Trustee
with respect to the Notes.

     12.  Defaults and Remedies.  Events of Default  include the following:  (i)
default  for 30 days in the  payment  when due of  interest  on the Notes;  (ii)
default in payment when due of principal or  Redemption  Price of the Notes when
the same becomes due and payable at maturity,  upon  redemption,  or  otherwise;
(iii)  failure by the Company for 30 days after  notice to the Company to comply
with any other covenant, representation,  warranty or agreement in the Indenture
or the Notes by the  Trustee  or the  Holders  of at least 30% of the  aggregate
principal  amount of the Notes  outstanding;  (iv) default  under  certain other
agreements  relating to Indebtedness of the Company which default results in the
acceleration  of any  Indebtedness  prior to its express  maturity  and, in each
case,  the principal  amount of such  Indebtedness,  together with the principal
amount  of any  other  such  Indebtedness  the  maturity  of  which  has been so
accelerated, aggregates $10 million or more; (v) certain final judgments for the
payment of money that remain undischarged for a period of 60 days, provided that
the aggregate of all such undischarged  judgments exceeds $10 million;  (vi) any
of the  Security  Documents  ceases to be in full force and effect or any of the
Security  Documents  ceases to give the  Trustee the Liens,  rights,  powers and
privileges  purported to be created thereby in any material  respect;  and (vii)
certain  events of bankruptcy  or insolvency  with respect to the Company or any
Subsidiary. If any Event of Default occurs and is continuing, the Trustee or the
Holders of at least 30% in principal  amount of the then  outstanding  Notes may
declare all the Notes to be due and  payable  immediately.  Notwithstanding  the
foregoing,  in the case of an Event of Default  arising from  certain  events of
bankruptcy  or  insolvency,  all  outstanding  Notes will become due and payable
without  further action or notice.  Holders may not enforce the Indenture or the
Notes  except as  provided  in the  Indenture.  Subject to certain  limitations,
Holders of a majority  in  principal  amount of the then  outstanding  Notes may
direct the  Trustee  in its  exercise  of any trust or power.  The  Trustee  may
withhold from Holders of the Notes notice of any continuing  Default or Event of
Default  (except a Default or Event of Default  relating to payment on any Note)
if it determines in good faith that withholding notice is in their interest. The
Holders of not less than a majority in aggregate  principal  amount of the Notes
then outstanding by notice to the Trustee may on behalf of the Holders of all of
the Notes waive any  existing  Default or Event of Default and its  consequences
under the  Indenture  except a  continuing  Default  or Event of  Default in the
payment of the  principal  and  Redemption  Price of, or interest  on, the Notes
(which may be waived only by Holders of all of the Notes then outstanding).

     13.  Trustee  Dealings with Company.  Subject to certain  limitations,  the
Trustee under the Indenture, in its individual or any other capacity, may become
owner or  pledgee  of Notes  and may  otherwise  deal  with the  Company  or its
Affiliates, as if it were not Trustee.

     14. No  Recourse  Against  Others.  No past,  present  or future  director,
officer,  employee,  incorporator or stockholder of the Company,  as such, shall
have any  liability  for any  obligations  of the Company under the Notes or the
Indenture  or for any claim  based  on, in  respect  of, or by reason  of,  such
obligations  or their  creation.  Each  Holder by  accepting  a Note  waives and
releases  all  such   liability.   The  waiver  and  release  are  part  of  the
consideration for the issuance of the Notes.

     15. Authentication. This Note shall not be valid until authenticated by the
manual signature of the Trustee or an authenticating agent.

     16.  Abbreviations.  Customary  abbreviations  may be used in the name of a
Holder or an  assignee,  such as,  TEN COM ( = tenants in  common),  TEN ENT ( =
tenants by the entireties),  JT TEN ( = joint tenants with right of survivorship
and not as tenants in  common),  CUST ( =  Custodian),  and  U/G/M/A ( = Uniform
Gifts to Minors Act).

     17. Governing Law. The Indenture,  any supplemental indenture and this Note
shall be governed by and construed in  accordance  with the laws of the State of
New York,  including Section 5-1401 of the General Obligation Law, but otherwise
without regard to conflict of law rules. The Company hereby irrevocably  submits
to the  jurisdiction  of any New York  state  court  sitting  in the  Borough of
Manhattan in the City of New York or any Federal court sitting in the Borough of
Manhattan in the City of New York in respect of any suit,  action or  proceeding
arising out of or  relating  to the  Indenture  and the Notes,  and  irrevocably
accept for itself and in respect of its property, generally and unconditionally,
jurisdiction of the aforesaid  courts.  The Company  irrevocably  waives, to the
fullest extent that it may effectively do so under applicable law, trial by jury
and any objection  which it may now or hereafter have to the laying of the venue
of any such suit,  action or proceeding  brought in any such court and any claim
that any such  suit,  action or  proceeding  brought  in any such court has been
brought in an inconvenient  forum.  Nothing herein shall affect the right of the
Trustee  or any  Holder  of the  Notes  to serve  process  in any  other  manner
permitted by law or to commence legal  proceedings or otherwise  proceed against
the Company in any other jurisdiction.

     18.  CUSIP  Numbers.  Pursuant  to  a  recommendation  promulgated  by  the
Committee on Uniform Security Identification  Procedures, the Company has caused
CUSIP  numbers to be printed on the Notes and the Trustee may use CUSIP  numbers
in notices of redemption as a convenience to Holders.  No representation is made
as to the correctness or accuracy of such numbers either as printed on the Notes
or as contained in any notice of  redemption  and reliance may be placed only on
the other identification numbers placed thereon.

     The Company  will  furnish to any Holder upon  written  request and without
charge a copy of the Indenture. Request may be made to:

                     Keystone Consolidated Industries, Inc.
                                    Three Lincoln Centre
                                    5430 LBJ Freeway
                                    Suite 1740
                                    Dallas, Texas 75240-2697
                                    Attention: Secretary

<PAGE>

                                 ASSIGNMENT FORM

                  To assign this Note, fill in the form below:

                  (I) or (we) assign and transfer this Note to:

                  (Insert assignee's soc. sec. or tax I.D. no.)

              (Print or type assignee's name, address and zip code)

and irrevocably appoint agent to transfer this Note on the books of the Company.
The agent may substitute another to act for him.

         Date: __________

                         Your Signature:_______________________
                         (Sign  exactly  as your name  appears  on the face of
                         this Note)

                         Signature Guarantee:_________________________________
                          (Signatures must be guaranteed by an
                          "eligible guarantor institution" meeting the
                          requirements of the Registrar, which
                          requirements include membership or
                          participation in the Security Transfer Agent
                          Medallion Program ("STAMP") or such other
                          "signature guarantee program" as may be
                          determined by the Registrar in addition to,
                          or in substitution for, STAMP, all in
                          accordance with the Securities Exchange Act
                          of 1934, as amended.)

<PAGE>

                   SCHEDULE OF EXCHANGES FOR CERTIFICATED NOTE
                            OR ANOTHER GLOBAL NOTE2

         The following exchanges of a part of this Global Note for Certificated
Notes or another Global Note have been made:

<TABLE>
<CAPTION>
<S>                       <C>                    <C>                      <C>                   <C>
                                Amount of              Amount of           Principal Amount
                          ---------------------  ----------------------  ---------------------      Signature of
                               decrease in            increase in           of this Global      ---------------------
                            Principal Amount        Principal Amount        Note following       authorized officer
                             of this Global          of this Global        such decrease (or     of Trustee or Note
    Date of Exchange              Note                    Note                 increase)              Custodian
</TABLE>

--------
1 To be included only if the Note is issued in global form.

2 To be included only if the Note is issued in global form.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00037-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00037-of-00352.parquet"}]]