Document:

AMENDED AND RESTATED INVESTORS RIGHTS AGREEMENT
                                  BY AND AMONG
                                 ABC-NACO INC.,
                                       AND

                         THE INVESTORS SET FORTH HEREIN

                            DATED AS OF JUNE 25, 2001

<PAGE>

                                        i
                                TABLE OF CONTENTS
Section  1.     Definitions.     3
Section  2.     Covenants  of  the  Corporation Not Surviving Conversion.     7
Section  3.     Covenants  of  the  Corporation  Surviving  Conversion.     8
Section  4.     Registration  Rights.     8
Section  5.     Management  Rights.     24
Section  6.     Severability;  Governing  Law.     25
Section  7.     Benefits  of  Agreement.     26
Section  8.     Notices.     26
Section  9.     Changes.     27
Section  10.     Captions.     28
Section  11.     Nouns  and  Pronouns.     28
Section  12.     Merger  Provision.     28
Section  13.     Counterparts.     28

<PAGE>

                                       35
                 AMENDED AND RESTATED INVESTORS RIGHTS AGREEMENT
     THIS  IS  AN  AMENDED  AND  RESTATED  INVESTORS  RIGHTS  AGREEMENT,  (this
"Agreement"),  dated  as  of  this 25th day of June, 2001, by and among ABC-NACO
INC., a Delaware corporation (the "Corporation"), having its principal office at
2001  Butterfield  Road,  Suite  502,  Downers  Grove,  Illinois  60515, and the
investors  set  forth  on  Schedule  I  hereto  (individually  referred to as an
"Investor"  and  collectively  as  the  "Investors").
                                   BACKGROUND
     A.     The  Corporation  is a corporation duly organized and existing under
the  laws  of  the  State  of  Delaware  with  an  authorized  capitalization of
101,000,000  shares  of  which  (i) 1,000,000 shares are authorized as Preferred
Stock  (as  defined  below),  of  which  (a) 100,000 shares have been designated
Series  A Preferred Stock, none of which are issued and outstanding; (b) 300,000
shares have been designated Series B Preferred Stock (as defined below), none of
which are issued and outstanding; (c) 325,000 shares have been designated Series
B-1  Preferred Stock (as defined below) 317,097.62 are issued and outstanding as
of  this  date  and  (c)  150,000 shares have been designated Series C Preferred
Stock  (as  defined  below)  all  of which are issued and outstanding as of this
date;  and  (ii)  100,000,000  shares are authorized as Common Stock (as defined
below).  All  of  the  shares  of  Series  B  Preferred  Stock were retired upon
consummation  of  the  exchange  of  the  Series B Preferred Stock for shares of
Series  B-1  Preferred  Stock  pursuant  to  the  Exchange  Agreement.
B.     The  Corporation  and  the Investors have entered into the Series C Stock
Purchase  Agreement  (as  defined  below).
C.     The  Investors  currently  own  317,097.62 shares of Series B-1 Preferred
Stock  and,  in  connection  with  the  Closing  of  the Series C Stock Purchase
Agreement,  that  number of shares of the Corporation's Series C Preferred Stock
(including  any shares hereafter acquired by the Investors, and their successors
or  assigns  from  any  person  by  any means, including without limitation, any
acquisition  by  gift,  purchase,  dividend,  conversion,  stock  split,
recapitalization  or  otherwise,  collectively, the "Shares") set forth opposite
the  name of each Investor on Schedule I attached hereto.  It is deemed to be in
the  best  interest of the Corporation that provision be made for the continuity
and  stability of the business and policies of the Corporation and, to that end,
the  Corporation and each of the Investors hereby set forth their agreement with
respect  to  the  Shares.
NOW,  THEREFORE, in consideration of the premises and of the mutual consents and
obligations  hereinafter  set  forth, the parties hereto hereby further agree as
follows:

Section  1.          Definitions.  All  capitalized terms used in this Agreement
shall  have  the  meaning  assigned  to  them  elsewhere in this Agreement or as
specified  below:
          "Additional  Warrant"  means  the  Additional  Closing  Common  Stock
Purchase  Warrant  of  the  Company  issued  pursuant  to  the Series C Purchase
Agreement,  in  the  form  attached  hereto  as  Exhibit  D-1  hereto.

     "Affiliate"  of  a  person  means (i) a person that directly or indirectly,
through  one  or  more  intermediaries,  controls,  is controlled by or is under
common  control  with,  the first mentioned person, and (ii) "associate", as the
term is defined in Rule 12b-2 promulgated under the Exchange Act as in effect as
of  the  date  of  this  Agreement.
"Amended Restated Certificate of Incorporation" means the Corporation's Restated
Certificate  of  Incorporation,  as  amended  to  date  and  as  amended  by the
Certificate  of Amendment thereto, filed in the Office of the Secretary of State
of  the  State  of  Delaware,  a  copy of which is attached hereto as Exhibit A.
"Closing"  means the closing of the transactions contemplated under the Series C
Stock  Purchase  Agreement.
"Closing  Date"  means  the  date  on which the Closing under the Series C Stock
Purchase  Agreement  occurs.
"Closing Warrant" means the Closing Common Stock Purchase Warrant of the Company
issued  pursuant to the Series C Purchase Agreement, in the form attached hereto
as  Exhibit  D-2  hereto.
"Commission"  means  the  United  States  Securities  and  Exchange  Commission.
"Common  Stock"  means  (a)  the  Corporation's Common Stock, par value $.0l per
share,  as authorized on the date of this Agreement, (b) any other capital stock
of  any  class or classes (however designated) of the Corporation, authorized on
or  after  the  date  hereof, the holders of which shall have the right, without
limitation  as  to amount, either to all or to a share of the balance of current
dividends  and  liquidating  distributions  after  the  payment of dividends and
distributions  on  any  shares entitled to preference under the Amended Restated
Certificate of Incorporation (as the same may be amended from time to time after
the  Closing),  and  (c) any other securities into which or for which any of the
securities described in clause (a) or (b) of this definition may be converted or
exchanged  pursuant  to a plan of recapitalization, reorganization, merger, sale
of  assets  or  otherwise.
"Conversion  Price"  means  (a) with respect to the conversion of the Series B-1
Preferred  Stock to Common Stock, $9.00, as may be adjusted from time to time in
accordance with the provisions of the Series B-1 Certificate of Designation, and
(b)  with  respect  to  the conversion of the Series C Preferred Stock to Common
Stock,  $2.50,  as  may  be  adjusted  from  time to time in accordance with the
provisions  of  the  Series  C  Certificate  of  Designation.
"Default Dividends" shall have the meaning set forth in the Series C Certificate
of  Designation.
"Documents"  means  this  Agreement,  the Series C Stock Purchase Agreement, the
Series  B-1  Certificate of Designation, the Series C Certificate of Designation
and  the  Exchange  Agreement.
"Exchange  Act"  means  the Securities Exchange Act of 1934, as amended, and the
rules  and regulations of the Commission promulgated thereunder, all as the same
shall  be  in  effect  at  the  time.
"Exchange  Act  Registration  Statement"  means  a  registration statement filed
pursuant  to the Exchange Act, relating to any class of equity securities of the
Corporation.
"Exchange  Agreement"  shall mean the Exchange Agreement dated as of April 17th,
2001,  between  the  Company  and  the holders of Series B Preferred Stock named
therein.
"Excluded  Form" means a registration statement filed pursuant to the Securities
Act  on  Form  S-8,  S-4  or  any  similar  or  successor  forms.
"Form  S-3"  shall mean the form under the Securities Act as is in effect on the
date  hereof  or  any  successor  registration  forms  under  the Securities Act
subsequently  adopted  by the Commission which permit inclusion or incorporation
of  substantial  information  by  reference  to  other  documents  filed  by the
Corporation  with  the  Commission.
"Holder"  shall  mean  any  holder  of  Series  B-1  Preferred Stock or Series C
Preferred  Stock owning of record Registrable Securities that have not been sold
to the public and, for purposes of this Agreement, a record holder of the Series
B-1  Preferred  Stock  or  Series  C  Preferred  Stock  convertible  into  such
Registrable  Securities  shall  be  deemed  to be the Holder of such Registrable
Securities;  provided,  however,  that  the  Corporation  shall  in  no event be
obligated  to  register  the  Series  B-1  Preferred Stock or Series C Preferred
Stock,  and  that  Holders  of  Registrable  Securities shall not be required to
convert  their  shares of Series B-1 Preferred Stock or Series C Preferred Stock
into  Common  Stock  in  order to exercise the registration rights granted under
Section  4 hereof, until immediately before the effectiveness of the offering to
which  the  registration  relates.
"Initiating  Holders"  shall  have  the  meaning  set  forth in Section 4(d)(ii)
hereof.
"Material  Adverse  Effect"  shall  mean (i) any adverse change in the condition
(financial  or  otherwise),  assets  (including  without limitation tangible and
intangible assets), liabilities, business, or results of operations or prospects
of the Company or any of  its Subsidiaries, which change, individually or in the
aggregate,  is material to the Company and its Subsidiaries taken as a whole, or
(ii)  any  event, matter, condition or effect which materially adversely impairs
the  ability  of  the Company to perform on a timely basis its obligations under
this  Agreement  or  the  Company to consummate the transactions contemplated by
this  Agreement.
"NASD"  shall  have  the  meaning  set  forth  in  Section  4(c)(xiv)  hereof.
"NASDAQ"  means  the  NASDAQ  National  Market.
"NYSE"  means  the  New  York  Stock  Exchange.
"Person"  means  and  includes  an  individual,  a corporation, a partnership, a
trust, an unincorporated organization and a government or any department, agency
or  political  subdivision  thereof.
"Preferred  Stock"  shall  mean the Corporation's Series B-1 Preferred Stock and
Series  C  Preferred  Stock.
"Register,"  "registered"  and  "registration"  shall  refer  to  a registration
effected by preparing and filing a registration statement in compliance with the
Securities  Act,  and  the  declaration  or  ordering  of  effectiveness of such
registration  statement.
"Registrable  Securities"  means:  (a)  all  the  shares  of Common Stock of the
Corporation  issued  or issuable upon the conversion of the shares of Series B-1
Preferred  Stock or Series C Preferred Stock that are now owned or may hereafter
be  acquired  by  any  Holder  or  its permitted successors and assigns; (b) all
shares  of  Common Stock of the Corporation issued or issuable upon the exercise
of  the  Closing  Warrant  or  the  Additional Warrant that are now owned or may
hereafter be acquired by any Holder or its permitted successors and assigns; and
(c)  any  shares  of Common Stock of the Corporation issued as (or issuable upon
the  conversion  or  exercise  of  any warrant, right or other security which is
issued  as) a dividend or other distribution with respect to, or in exchange for
or  in replacement of all such shares of Common Stock described in clause (a) of
this definition; excluding in all cases, however, (i) any Registrable Securities
sold  pursuant  to registration under the Securities Act or (ii) any Registrable
Securities  publicly  sold,  subsequent  to  the  Corporation's  initial  public
offering of securities registered under the Securities Act, pursuant to Rule 144
(or  similar  or  successor  rule)  promulgated  under  the  Securities  Act.
"Registrable  Securities  then  outstanding"  means  the  number  of  shares  of
Registrable Securities that are then issued and outstanding or are then issuable
pursuant  to the exercise or conversion of then outstanding and then exercisable
options,  warrants  or  convertible  securities.
"Registration Expenses" shall have the meaning set forth in Section 4(d) hereof.
"Securities  Act"  shall  mean  the  Securities Act of 1933, as amended, and the
rules  and regulations of the Commission promulgated thereunder, all as the same
shall  be  in  effect  at  the  time.
"Series  B  Preferred  Stock"  shall  mean  the Corporation's authorized 300,000
shares of Series B Preferred Stock, par value $1.00 per share, all of which were
retired  upon consummation of the exchange of shares of Series B Preferred Stock
for  shares  of  Series  B-1 Preferred Stock pursuant to the Exchange Agreement.
"Series  B-1  Certificate  of  Designation"  shall  mean  the  Certificate  of
Designation  of  Series B-1 Cumulative Convertible Participating Preferred Stock
of  the  Corporation.  A  copy  of  the Series B-1 Certificate of Designation is
attached  hereto  as  Exhibit  B.
"Series  B-1  Preferred  Stock"  shall mean the Corporation's authorized 325,000
shares  of Series B Cumulative Convertible Preferred Stock, par value $ 1.00 per
share,  having  the  designations,  rights,  preferences  and  privileges  and
qualifications, limitations and restrictions of preferred stock set forth in the
Series  B-1  Certificate  of  Designation.
"Series  B  Stock  Purchase  Agreement"  shall mean the Preferred Stock Purchase
Agreement  dated  as  of  February  18,  2000,  by and among the Corporation and
certain  of  the  Investors,  as  the  same  may  be  amended from time to time.
"Series  C Certificate of Designation" shall mean the Certificate of Designation
of  Series  C  Cumulative  Convertible  Participating  Preferred  Stock  of  the
Corporation.  A  copy  of  the  Series  C Certificate of Designation is attached
hereto  as  Exhibit  C.
"Series  C  Preferred  Stock"  shall  mean  the Corporation's authorized 150,000
shares  of Series C Cumulative Convertible Preferred Stock, par value $ 1.00 per
share,  having  the  designations,  rights,  preferences  and  privileges  and
qualifications, limitations and restrictions of preferred stock set forth in the
Series  C  Certificate  of  Designation.
"Series  C Stock Purchase Agreement" shall mean the Series C Preferred Stock and
Common  Stock Warrant Purchase Agreement dated as of April 17, 2001 by and among
the  Corporation  and  certain of the Investors, as the same may be amended from
time  to  time.
"Subsidiaries"  shall  mean,  when  used  with  reference  to  a person, means a
corporation or limited liability company, the majority of the outstanding voting
securities  or membership interests of which are owned directly or indirectly by
such  person.
"Violation"  shall  have  the  meaning  set  forth  in  Section  4(i)(i) hereof.
Section  2.          Covenants  of the Corporation Not Surviving Conversion.  So
long  as  any  shares  of  the  Preferred Stock are outstanding, the Corporation
hereby  covenants  and  agrees  as  follows:
(a)          Reserve  for  Reserved  Shares.  The  Corporation  currently  has
reserved  an  aggregate  of 22 Million (22,000,000) shares of its authorized but
unissued  Common Stock for purposes of effecting the conversion of the shares of
Preferred  Stock  and  paying  the  Investors  dividends  in  Common Stock.  The
Corporation  shall  at  all  times  take  appropriate  steps to reserve and keep
available  out  of  its  authorized but unissued shares of Common Stock, for the
purpose of effecting the conversion of the shares of Preferred Stock, paying the
     Investors dividends in Common Stock and paying Default Dividends in respect
to  the  Preferred  Stock  in  accordance  with  the  Series  B-1 Certificate of
Designation  and  Series  C  Certificate of Designation, and otherwise complying
with  the terms of this Agreement, such additional number of its duly authorized
but  unissued  shares  of  Common  Stock  as  shall  be sufficient to effect the
conversion  of  the  shares of Preferred Stock from time to time outstanding, or
otherwise to comply with the terms of this Agreement.  If at any time the number
of  authorized  but  unissued  shares of Common Stock shall not be sufficient to
effect  the  conversion of the shares of Preferred Stock, or otherwise to comply
with  the  terms  of  this  Agreement  or  either  the Series B-1 Certificate of
Designation  or  the  Series C Certificate of Designation, the Corporation shall
forthwith  take  such  corporate  action  as  may  be  necessary to increase its
authorized but unissued shares of Common Stock to such number of shares as shall
be  sufficient  for  such  purposes.  The  Corporation  shall  obtain  any
authorization,  consent, approval or other action by or make any filing with any
court  or  administrative  body  that  may  be  required  under applicable state
securities  laws  in connection with the issuance of shares of Common Stock upon
conversion  of  the  shares  of  Preferred  Stock.
(b)          Rule  144.  As  set  forth  in Section 4(k) hereto, the Corporation
shall  take  all  necessary  action  to comply with the requirements of Rule 144
under  the  Securities  Act.
Section  3.          Covenants  of the Corporation Surviving Conversion.  At all
times  from  the  date  of  this  Agreement the Corporation hereby agrees to the
following  covenants:
(a)          NASDAQ  Listing.  The  Corporation shall take all actions necessary
or  appropriate  to  ensure that the shares of stock issuable upon conversion of
the  Series  B-1  Preferred  Stock  and  Series  C Preferred Stock are listed or
authorized  to  be  quoted  on  the  NASDAQ or listed on any national securities
exchange  on which shares of Common Stock are then listed.  The Corporation will
take  all  actions necessary or appropriate to ensure that it maintains a public
market  for  its  Common  Stock  on  NASDAQ  or  the  NYSE.
(b)          Meetings  with  Management.  The  Corporation shall arrange for and
make  available  members  of its executive management to meet with the Investors
and  their  representatives,  at  such  times  as the Investors shall reasonably
request,  but no less frequently than on a quarterly basis (if so requested), to
discuss with the Investors and their representatives the Corporation's business,
results  of  operations, financial statements, prospects and any other topics or
issues that the Investors may reasonably request to be reviewed and discussed at
such  meetings.
(c)          Registration  Rights.  The  Corporation  shall  take  all necessary
action to give effect to the registration rights set forth in Section 4 hereto.
(d)          Securities  Filings.  The  Corporation  shall take all necessary or
appropriate  actions  requested  by  the  Investors  to  assist the Investors in
complying with the Investors' obligations to make any and all securities filings
under  the  Exchange  Act, the Securities Act or the applicable state securities
laws  of  any  state  required  in connection with the transactions contemplated
herein.
Section  4.          Registration  Rights.
(a)          Restrictive  Legend.  Each  certificate for the Preferred Stock and
each certificate for any such securities issued to subsequent transferees of any
     such certificate shall be stamped or otherwise imprinted with the following
legend  and  shall  not  be  transferable  except  in compliance with or a valid
exception  from  the  Securities  Act  and  applicable  state  "blue sky" laws:
"THE  SECURITIES  REPRESENTED  BY  THIS  CERTIFICATE  HAVE  BEEN  ACQUIRED  FOR
INVESTMENT  AND  HAVE  NOT  BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED,  OR  ANY  APPLICABLE  STATE SECURITIES LAW. THESE SECURITIES MAY NOT BE
SOLD  OR  TRANSFERRED  IN  THE  ABSENCE  OF  SUCH  REGISTRATION  OR AN EXEMPTION
THEREFROM  UNDER  SAID  ACT  AND  APPLICABLE  STATE  SECURITIES  LAW."
(b)          Shelf  Registration.
(i)          The  Corporation shall, at its sole cost and expense, file with the
Commission  and  thereafter  shall  use its best efforts to cause to be declared
effective,  not  later  than ninety (90) calendar days after the Closing Date, a
registration  statement  (the  "Shelf Registration Statement"), on a Form S-3 or
any  successor  form  thereto,  if the Company is then eligible, relating to the
offer  and  sale  of  the shares of Common Stock issuable upon conversion of the
shares  of Preferred Stock and Common Stock issuable in respect of any dividends
described  in  the  Series  B-1  Certificate  of  Designation  on  the shares of
Preferred Stock (the "Securities") by the Holders thereof, from time to time, in
     accordance  with  the  methods  of  distribution  set  forth  in  the Shelf
Registration  Statement  and Rule 415 under the Securities Act (hereinafter, the
"Shelf  Registration");  provided,  however, that no Holder of Securities (other
than  the  Investors)  shall  be entitled to have the Securities covered by such
Shelf  Registration Statement unless such Holder of Securities agrees in writing
to be bound by all the provisions of this Agreement applicable to such Holder of
Securities.
(ii)          The  Corporation  shall  use  its  best  efforts to keep the Shelf
Registration  Statement continuously effective in order to permit the prospectus
included therein to be lawfully delivered by the Holders of Securities until all
the  shares  of Securities covered by the Shelf Registration Statement have been
sold  pursuant  thereto.  The  Corporation  shall be deemed not to have used its
best  efforts  to  keep  the  Shelf  Registration Statement effective during the
requisite period if it voluntarily takes any action that would result in Holders
of  the  Securities  covered  thereby  not  being  able  to  offer and sell such
Securities  during  that  period,  unless  such action is required by applicable
law.
(iii)          Notwithstanding  any  other  provisions  of this Agreement to the
contrary,  the  Corporation shall cause the Shelf Registration Statement and the
related  prospectus and any amendment or supplement thereto, as of the effective
date of the Shelf Registration Statement, amendment or supplement, (A) to comply
in  all material respects with the applicable requirements of the Securities Act
and  the  rules  and  regulations  of  the Commission and (B) not to contain any
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary in order to make the statements therein, in light
of  the  circumstances  under  which  they  were  made,  not  misleading.
(c)          Shelf  Registration  Procedures.  In  connection  with  any  Shelf
Registration contemplated by Section 4(b) hereof, the following provisions shall
     apply:
(i)          The  Corporation shall (A) furnish to the Investors and each Holder
of Securities, if applicable, prior to the filing thereof with the Commission, a
     copy  of  the  Shelf  Registration Statement and each amendment thereof and
each  supplement,  if  any, to the prospectus included therein and, in the event
that  the Investors or any Holder of Securities, if applicable, is participating
in  the  Shelf  Registration Statement, shall use its best efforts to reflect in
each  such  document,  when  so filed with the Commission, such comments as such
Investors  or  any  Holder of Securities, if applicable, reasonably may propose;
and  (B)  include  the  names  of  the Holders of Securities who propose to sell
Securities  pursuant  to  the  Shelf  Registration Statement as selling security
holders.
(ii)          The  Corporation  shall advise (and confirm such advice in writing
if  requested  by  the recipient of the advice) the Investors and the Holders of
Securities,  if  applicable:
(A)          when  the Shelf Registration Statement or any amendment thereto has
been  filed with the Commission and when the Shelf Registration Statement or any
post-effective  amendment  thereto  has  become  effective;
(B)          of  any  request by the Commission for amendments or supplements to
the  Shelf  Registration  Statement  or  the  prospectus included therein or for
additional  information;
(C)          of  the issuance by the Commission of any stop order suspending the
effectiveness  of  the  Shelf  Registration  Statement  or the initiation of any
proceedings  for  that  purpose;
(D)          of  the  receipt  of  the  Corporation  or its legal counsel of any
notification  with  respect  to  the  suspension  of  the  qualification  of the
Securities  for sale in any jurisdiction or the initiation or threatening of any
proceeding  for  such  purpose;  and
(E)          of the happening of any event that requires the Corporation to make
changes  in the Shelf Registration Statement or the prospectus in order that the
Shelf  Registration  Statement  or  the  prospectus  does  not contain an untrue
statement  of  a  material fact nor omit to state a material fact required to be
stated  therein  or  necessary  to  make the statements therein not misleading.
(iii)          The  Corporation  shall  use  its  best  efforts  to  obtain  the
withdrawal  at  the  earliest  possible  time  of  any  order  suspending  the
effectiveness  of  the  Shelf  Registration  Statement.
(iv)          The  Corporation  shall  furnish  to  each  Holder  of  Securities
included within the coverage of the Shelf Registration, without charge, at least
one  copy  of  the Shelf Registration Statement and any post-effective amendment
thereto,  including  financial  statements  and schedules, and, if the Holder of
Securities  so  requests  in  writing, all exhibits thereto (including those, if
any,  incorporated  by  reference).
(v)          The Corporation shall deliver to each Holder of Securities included
within the coverage of the Shelf Registration, without charge, as many copies of
the  prospectus  (including  each  preliminary prospectus) included in the Shelf
Registration  Statement  and  any amendment or supplement thereto as such person
may  reasonably request.  The Corporation consents, subject to the provisions of
this  Agreement,  to  the  use  of the prospectus or any amendment or supplement
thereto  included  in  the  Shelf  Registration Statement by each of the selling
Holders  of  the  Securities  in  connection  with  the offering and sale of the
Securities  covered  by  such  prospectus  or any such amendment or supplement.
(vi)          Prior to any public offering of the shares of Securities, pursuant
to  any  Shelf Registration Statement, the Corporation shall register or qualify
or  cooperate  with  the  Holders  of  Securities  included  therein  and  their
respective  counsel  in connection with the registration or qualification of the
Securities  for  offer  and sale under the securities or "blue sky" laws of such
states  of  the  United States as any Holder of Securities covered by such Shelf
Registration  Statement;  provided,  however,  that the Corporation shall not be
required to (A) qualify generally to do business in any jurisdiction where it is
not  then  so qualified or (B) take any action which would subject it to general
service  of  process  or to taxation in any jurisdiction where it is not then so
subject.
(vii)          The Corporation shall cooperate with the Holders of Securities to
facilitate  the timely preparation and delivery of certificates representing the
Securities  to  be sold pursuant to any Shelf Registration Statement free of any
restrictive  legends  and  in such denominations and registered in such names as
the Holders of Securities may request a reasonable period of time prior to sales
of  the  Securities  pursuant  to  such  Shelf  Registration  Statement.
(viii)          Upon  the occurrence of any event contemplated by paragraphs (B)
through  (E)  of  Section  4(c)(ii)  above  during  the  period  for  which  the
Corporation  is  required to maintain an effective Shelf Registration Statement,
the  Corporation  shall  promptly prepare and file a post-effective amendment to
the  Shelf  Registration Statement or a supplement to the related prospectus and
any  other  required  document  so  that,  as thereafter delivered to Holders of
Securities,  the  prospectus  will not contain an untrue statement of a material
fact  or  omit  to  state  any  material  fact  required to be stated therein or
necessary  to  make  the statements therein, in light of the circumstances under
which they were made, not misleading.  If the Corporation notifies the Investors
and  the  Holders  of  Securities  then Investors, and the Holders of Securities
shall  suspend  use  of  such prospectus, and the period of effectiveness of the
Shelf  Registration  Statement  provided  for  in  Section  4(b)  above shall be
extended by the number of days from and including the date of the giving of such
notice  to  and  including  the  date  when  the  Investors  and  the Holders of
Securities  shall have received such amended or supplemented prospectus pursuant
to  this  Section  4(c)(viii).
(ix)          The  Corporation will comply with all rules and regulations of the
Commission  to  the  extent  and  so  long  as  they are applicable to the Shelf
Registration  and  will  make  generally  available  to its security holders (or
otherwise  provide  in  accordance  with Section 11(a) of the Securities Act) an
earnings  statement  (which  need  not  be audited) satisfying the provisions of
Section 11(a) of the Securities Act, no later than forty-five (45) calendar days
after the end of a 12-month period (or ninety (90) calendar days, if such period
is  a  fiscal  year)  beginning  with the first month of the Corporation's first
fiscal  quarter  commencing  after  the  effective  date  of  the  Registration
Statement,  which  statement  shall  cover  such  12-month  period.
(x)          Each  Holder  of  Securities  to  be  sold  pursuant  to  the Shelf
Registration  Statement  shall  furnish  to  the  Corporation  such  information
regarding  the  Holder and the distribution of the Securities as the Corporation
may  from time to time reasonably require and request for inclusion in the Shelf
Registration  Statement  (and  shall promptly correct any information previously
furnished  if  the  inclusion  of  such  information  in such Shelf Registration
Statement would be materially misleading), and the Securities of any Holder that
unreasonably  fails  to  furnish  such  information  that  unreasonably fails to
furnish such information within a reasonable time after receiving such request.
(xi)          The  Corporation  shall  enter  into  such  customary  agreements
(including  if  requested  an underwriting agreement in customary form) and take
all  such  other  action,  if  any, as any Holder of Securities shall reasonably
request in order to facilitate the disposition of the Securities pursuant to any
Shelf  Registration.  If  an  underwriting agreement is entered into pursuant to
this  paragraph,  the  Corporation  shall  cause  any  such agreement to contain
indemnification  provisions  and  procedures  substantially similar to those set
forth in Section 4(i) hereof (or such other procedures acceptable to the Holders
of  a  majority  of  the aggregate principal amount of the Securities registered
under the applicable Shelf Registration Statement and the managing underwriters,
if  any)  with respect to all parties to be indemnified pursuant to Section 4(i)
hereof.
(xii)          In  the case of any Shelf Registration, the Corporation shall (A)
make  reasonably  available  for  inspection  by  the Holders of Securities, any
underwriter  participating in any disposition pursuant to the Shelf Registration
Statement and any attorney, accountant or other agent retained by the Holders of
Securities  or  any  such  underwriter all relevant financial and other records,
pertinent  corporate  documents  and properties of the Corporation and (B) cause
the  Corporation's  officers,  directors, employees, accountants and auditors to
supply  all  relevant  information  reasonably  requested  by  the  Holders  of
Securities  or any such underwriter, attorney, accountant or agent in connection
with  the  Shelf  Registration  Statement,  in  each case as shall be reasonably
necessary,  in  the  judgment  of  the Holder or any such underwriter, attorney,
accountant  or  agent  referred  to  in  this paragraph, to conduct a reasonable
investigation  within the meaning of Section 11 of the Securities Act; provided,
however,  that  the  foregoing  inspection  and  information  gathering shall be
coordinated  on behalf of the Investors and Holders of Securities by one counsel
designated  by  and on behalf of such other parties; and provided, further, that
as  to any information that is designated in writing by the Corporation, in good
faith,  as  confidential at the time of delivery, such information shall be kept
confidential  by the Holders of Securities or by any such underwriter, attorney,
accountant  or  other  agent.
(xiii)          In  the  case of any Shelf Registration, (A) the Corporation, if
reasonably  requested by Holders of a majority of the Securities covered by such
Shelf  Registration,  which  request  shall  not  be more frequent than once per
fiscal  quarter,  shall  cause  its  counsel  to  deliver an opinion and updates
thereof  relating  to the Securities in customary form addressed to such Holders
of  Securities and dated, in the case of the initial opinion, the effective date
of  such  Shelf Registration Statement, provided such opinion is requested prior
to  the  effective  date (it being agreed that the matters to be covered by such
opinion  shall  include  such  matters  as  are customarily included in opinions
requested  in  underwritten offerings); and (B) the Corporation, if requested by
any  majority of Holders of Securities covered by such Shelf Registration, shall
cause  its  officers  to  execute  and  deliver  all  customary  documents  and
certificates  and  updates  thereof  reasonably  requested.
(xiv)          In the event that any broker-dealer registered under the Exchange
Act  shall  underwrite  any  Securities  or  participate  as  a  member  of  an
underwriting  syndicate or selling group or "assist in the distribution" (within
the  meaning  of  the  Rules  of  Fair  Practice and the By-Laws of the National
Association  of  Securities Dealers, Inc. ("NASD")) thereof, whether as a Holder
of  such Securities or as an underwriter, a placement or sales agent or a broker
or  dealer  in respect thereof, or otherwise, the Corporation shall use its best
efforts  to assist such broker-dealer in complying with the requirements of such
Rules  and  By-Laws,  including,  without  limitation,  by  (A) if such Rules or
By-Laws  shall  so  require,  engaging a "qualified independent underwriter" (as
defined  in  Section  2720  thereof)  to  participate  in the preparation of the
Registration  Statement relating to such Securities, to exercise usual standards
of  due  diligence  in  respect  thereto  and,  if  any  portion of the offering
contemplated by such Shelf Registration Statement is an underwritten offering or
is  made  through  a  placement  or  sales agent, to recommend the yield of such
Securities,  (B)  indemnifying any such qualified independent underwriter to the
extent  of  the indemnification of underwriters provided in Section 4(i) hereof,
and  (C)  providing such information to such broker-dealer as may be required in
order  for  such  broker-dealer  to comply with the requirements of the Rules of
Fair  Practice  of  the  NASD.
(xv)          The Corporation shall use its best efforts to take all other steps
necessary  to  effect  the  registration  of  the  Securities covered by a Shelf
Registration  Statement  contemplated  hereby.
(d)          Demand  Registration.  In  addition  to  the  Shelf  Registration
referred  to  in Section 4(b) hereof, the Holders of at least thirty-three (33%)
of  the  Registrable  Securities  then  outstanding  may  elect  to  require the
Corporation  to  effect,  at  the  Corporation's  sole  cost  and  expense,  a
registration  of  Registrable  Securities under this Section 4(d) (the "Holders'
Demand  Request"):
(i)          If  the  Corporation  receives the Holders' Demand Request that the
Corporation  file  a  registration  statement  on  Form  S-1  or S-3 (or similar
successor  forms)  under  the  Securities  Act  covering the registration of the
Registrable  Securities,  then  the  Corporation shall, within ten (10) business
days  after  the  receipt  thereof,  give  written notice of such request to all
Holders,  and  effect,  as  soon  as  practicable,  the  registration  under the
Securities  Act  of  all  Registrable Securities which the Holders request to be
registered and included in such registration, subject only to the limitations of
     this  Section  4(d).
(ii)          If  the  Holders  initiating  the  registration request under this
Section  4(d)  ("Initiating  Holders")  intend  to  distribute  the  Registrable
Securities  covered  by their request by means of an underwriting, they shall so
advise  the Corporation as a part of their request made pursuant to this Section
4(d)  and  the  Corporation shall include such information in the written notice
referred  to  in Section 4(d)(i) hereof.  In such event, the right of any Holder
to  include  such  Holder's Registrable Securities in such registration shall be
conditioned  upon  such  Holder's  participation  in  such  underwriting and the
inclusion  of  such  Holder's Registrable Securities in the underwriting (unless
otherwise  mutually  agreed  by a majority in interest of the Initiating Holders
and  such  Holder)  to  the  extent  provided  herein.  All Holders proposing to
distribute  their  securities  through  such  underwriting  shall  enter into an
underwriting  agreement  in  customary  form  with  the  managing underwriter or
underwriters  selected  for  such  underwriting.
(iii)          The  Corporation  is  obligated  to  effect  only  one  (1)  such
registration unless the Shelf Registration Statement referred to in Section 4(b)
is  not declared, or if declared, does not remain effective then the Corporation
shall  be  obligated  to effect two (2) such registrations one of which shall be
exercisable  by the holders of Series B-1 Preferred Stock and one which shall be
exercisable  by  the holders of Series C Preferred Stock, each of which shall be
pursuant  to  the  terms  of  this  Section  4(d)  set  forth  above.
(iv)          All  expenses  incurred  in  connection with a demand registration
effected pursuant to this Section 4(d), including without limitation all federal
and  "blue  sky"  registration  and qualification fees, printers' and accounting
fees,  fees and disbursements of counsel for the Corporation, and of one counsel
for  the  participating  Holders together (the "Registration Expenses") shall be
borne  by  the  Corporation.
(e)          Piggyback  Registrations.
(i)          The  Corporation shall notify all Holders of Registrable Securities
in  writing  at  least  forty-five  (45)  calendar  days  prior  to  filing  any
registration  statement  under  the  Securities  Act for purposes of effecting a
public offering of securities of the Corporation (including, but not limited to,
     registration  statements  relating  to secondary offerings of securities of
the  Corporation,  but  excluding registration statements on an Excluded Form or
relating  to  any employee benefit plan or a corporate reorganization) and shall
afford each such Holder an opportunity to include in such registration statement
all  or  any  part of the Registrable Securities then held by such Holder.  Each
Holder desiring to include in any such registration statement all or any part of
the  Registrable  Securities  held  by  such  Holder  shall,  within twenty (20)
calendar  days after receipt of the above-described notice from the Corporation,
so  notify  the  Corporation  in  writing,  and  in such notice shall inform the
Corporation  of  the  number  of  Registrable  Securities  such Holder wishes to
include  in such registration statement.  If a Holder decides not to include all
of  its Registrable Securities in any registration statement thereafter filed by
the  Corporation,  such  Holder shall nevertheless continue to have the right to
include  any  Registrable Securities in any subsequent registration statement or
registration  statements  as  may  be  filed  by the Corporation with respect to
offerings  of  its  securities,  all  upon  the  terms  and conditions set forth
herein.
(ii)          If  the  registration  statement under which the Corporation gives
notice  under  this  Section  4(e)  (the  "Piggyback  Registration")  is  for an
underwritten  offering,  the  Corporation  shall  so  advise  the  Holders  of
Registrable  Securities.  In  such  event,  the  right  of  any  such  Holder's
Registrable Securities to be included in a registration pursuant to this Section
4(e)  shall be conditioned upon such Holder's participation in such underwriting
and the inclusion of such Holder's Registrable Securities in the underwriting to
the  extent  provided  herein.  All  Holders  proposing  to  distribute  their
Registrable  Securities  through  such  underwriting  shall  enter  into  an
underwriting  agreement  in such customary form with the managing underwriter or
underwriters  selected  for such underwriting.  If any Holder disapproves of the
terms  of  any such underwriting, such Holder may elect to withdraw therefrom by
written  notice  to the Corporation and the underwriter, delivered at least five
(5)  business  days  prior  to the effective date of the registration statement.
Any Registrable Securities excluded or withdrawn from such underwriting shall be
excluded  and  withdrawn  from  the  registration.
(iii)          If  any  of the Registrable Securities registered pursuant to any
Piggyback  Registration  are  to  be  sold  in  one  or  more  firm  commitment
underwritten  offerings,  and  the  managing  underwriters advise in writing the
Corporation  and the holders of such Registrable Securities that in its or their
opinion  or, in the case of a Piggyback Registration not being underwritten, the
Corporation  shall  reasonably  determine (and notify the holders of Registrable
Securities  of such determination), after consultation with an investment banker
of  nationally  recognized  standing,  that the number of shares of Common Stock
(including  Registrable Securities) proposed to be sold in such offering exceeds
the  maximum number of shares of Common Stock that can be sold in such offering,
the  Corporation  shall include in such registration only such maximum number of
shares  of Common Stock (including Registrable Securities) which, in the opinion
of  such  underwriter  or  underwriters, or the Corporation, as the case may be,
selected  in  the  following  order of priority: (A) first, all of the shares of
Common  Stock that the Corporation proposes to sell for its own account, if any,
and  (B)  second, the securities requested to be included therein, and which the
managing  underwriters  shall  in  their  reasonable  discretion deem advisable,
allocated  pro  rata,  based upon the number of shares of Common Stock that each
such  person  shall  have  requested  to  be  included  therein.
(iv)          All  Registration  Expenses  incurred  in  connection  with  a
registration  pursuant  to this Section 4(e) shall be borne by the Corporation.
(f)          Additional  Registration  Rights.  If  the  Corporation  grants
registration rights to holders of any security of the Corporation which are more
     favorable  to  such holders than the registration rights granted hereunder,
then  such more favorable registration rights shall also be deemed to be granted
to  the  Holders  of  the  Registrable Securities hereunder, and the Corporation
covenants  and agrees to take any and all steps necessary to modify the terms of
this  Agreement  to  so  provide.
(g)          Obligations  of  the  Corporation.  Whenever required to effect the
registration of any Registrable Securities under this Agreement, the Corporation
shall,  as  expeditiously  as  reasonably  possible:
(i)          Except as otherwise provided in Section 4(b), prepare and file with
     the  Commission  a  registration statement with respect to such Registrable
Securities  and  use  its  best  efforts to cause such registration statement to
become  and  remain  effective  within  one hundred fifty (150) calendar days of
notice  from  the  Holders of the Registrable Securities provided, however, that
before  filing  a  registration  statement  or  prospectus  or any amendments or
supplements  thereto  pursuant to Section 4(e), including documents incorporated
by reference after the initial filing of the registration statement and prior to
effectiveness  thereof, the Corporation shall furnish to one firm of counsel for
the Holders (selected by a majority of the Holders) copies of all such documents
in  the  form substantially as proposed to be filed with the Commission at least
four  (4)  business days prior to filing for review and comment by such counsel,
which  opportunity  to  comment  shall  include  an absolute right to control or
contest  disclosure  if the applicable Holder reasonably believes that it may be
subject  to  controlling  person liability under applicable securities laws with
respect  thereto;
(ii)          Except  as  otherwise  provided  in Section 4(b), prepare and file
with  the  Commission  such  amendments  and  supplements  to  such registration
statement  and  the  prospectus  used  to  comply  with  the  provisions  of the
Securities Act with respect to the disposition of all securities covered by such
registration statement and to keep such registration statement effective, in the
case of a firm commitment underwriting, until each underwriter has completed the
distribution  of  all  securities  purchased by it and, in the case of any other
offering,  until  the  earlier of the sale of all Registrable Securities covered
thereby  or  one  hundred  eighty  (180)  calendar days after the effective date
thereof;  provided,  however,  that  such 180-day period shall be extended for a
period  of  time  equal  to  the  period  the  Holder  refrains from selling any
Registrable  Securities  included  in  such  registration  at  the request of an
underwriter  of  the  Common Stock or if the Corporation has provided the notice
described  in  subparagraph  (vii)  below;
(iii)          In  connection  with  a  registration  pursuant  to Section 4(e),
promptly  notify each Holder of any stop order issued or threatened to be issued
by  the  Commission  in  connection  therewith  (and take all reasonable actions
required  to  prevent the entry of such stop order or to remove it if entered);
(iv)          Furnish  to  the  Holders  such  number of copies of a prospectus,
including a preliminary prospectus, in conformity with her documents as they may
reasonably  request  in  order  to facilitate the disposition of the Registrable
Securities  owned  by  them  that  are  included  in  such  registration;
(v)          Use  its  best  efforts  (i) to register and qualify the securities
covered  by  such registration statement under such other securities or blue sky
laws  of such jurisdictions as shall be reasonably requested by the Holders, and
(ii)  in  connection with a registration pursuant to Section 4(e), to obtain the
withdrawal  of  any  order  suspending  the  effectiveness  of  a  registration
statement,  or  the lifting of any suspension of the qualification (or exemption
from  qualification)  of  the  offer  and  transfer  of  any  of the Registrable
Securities  in any jurisdiction, at the earliest possible moment; provided, that
the  Corporation shall not be required in connection therewith or as a condition
thereto  to  qualify  to  do business or to file a general consent to service of
process  in  any  such  states  or  jurisdictions;
(vi)          Use  its  best  efforts  to  list  the  securities covered by such
registration statement with any securities exchange, if any, on which the Common
Stock  of  the  Corporation  is  then  listed;
(vii)          In  the event of any underwritten public offering, enter into and
perform  its obligations under an underwriting agreement, in usual and customary
form,  with  the  managing  underwriter(s)  of  such  offering.  Each  Holder
participating  in  such  underwriting  shall  also  enter  into  and perform its
obligations  under  such  an  agreement;
(viii)          Notify  each  Holder  of  Registrable  Securities  and  each
underwriter  under  such  registration  statement  at any time when a prospectus
relating  thereto  is  required  to be delivered under the Securities Act of the
happening  of  any  event  as  a result of which the prospectus included in such
registration  statement,  as  then  in effect, includes an untrue statement of a
material fact or omits to state a material fact required to be stated therein or
necessary  to  make  the  statements  therein not misleading in the light of the
circumstances then existing, and promptly thereafter, prepare and furnish to all
Holders  a  reasonable  number  of  copies  of  an  amended  to  or supplemental
prospectus  as  may  be  necessary  so  that,  as  thereafter  delivered  to the
purchasers  of such Registrable Securities, such prospectus shall not include an
untrue  statement  of stated therein or necessary to make the statements therein
not  misleading  in  the  light  of  the  circumstances  then  existing;
(ix)          Furnish,  at  the request of any Holder requesting registration of
Registrable  Securities,  on  the  date  that  such  Registrable  Securities are
delivered  to  the  underwriters  for  sale,  if  such securities are being sold
through  underwriters,  or,  if  such  securities  are  not  being  sold through
underwriters,  on  the date that the registration statement with respect to such
securities  becomes  effective,  (A)  an  opinion, dated as of such date, of the
counsel  representing  the Corporation for the purposes of such registration, in
form  and  substance  as is customarily given to underwriters in an underwritten
public  offering  and  reasonably  satisfactory to a majority in interest of the
Holders  requesting  registration, addressed to the underwriters, if any, and to
the  Holders  requesting  registration  of  Registrable  Securities,  and  (B) a
"comfort"  letter  dated  as of such date, from the independent certified public
accountants of the Corporation, in form and substance as is customarily given by
independent  certified  public  accountants  to  underwriters in an underwritten
public  offering  and  reasonably  satisfactory to a majority in interest of the
Holders  requesting  registration, addressed to the underwriters, if any, and to
the  Holders  requesting  registration  of  the  Registrable  Securities;
(x)          In connection with a registration pursuant to Section 4(e), provide
and  cause  to  be maintained a transfer agent and registrar for all Registrable
Securities  covered  by  such  registration statement from and after a date note
later  than  the  effective  date  of  such  registration  statement;
(xi)          Make  available  for  inspection  by  each  seller  of Registrable
Securities, any underwriter participating in any registration statement, and any
attorney,  accountant  by  such  seller  or underwriter, all financial and other
records,  pertinent  corporate  documents and properties of the Corporation, and
cause  the  Corporation's  officers,  directors  and  employees  to  supply  all
information  reasonably  requested  by  any  such seller, underwriter, attorney,
accountant  or  agent  in  connection  with  such  registration  statement;
(xii)          In  connection  with a registration pursuant to Section 4(e), use
the  Corporation's  reasonable  efforts  to  provide  a  CUSIP  number  for  the
Registrable  Securities  prior  to  the effective date of the first registration
statement  including  Registrable  Securities;  and
(xiii)          In connection with a registration pursuant to Section 4(e), take
such other actions as are reasonably required in order to expedite or facilitate
the  disposition  of Registrable Securities included in each such registration.
(h)          Furnish  Information.  It  shall  be  a  condition precedent to the
obligations  of  the  Corporation  to take any action pursuant to Sections 4(b),
4(d)  and  4(e)  that  the selling Holders shall furnish to the Corporation such
information  regarding  themselves, the Registrable Securities held by them, and
the  intended  method  of disposition of such securities as shall be required to
effect  the  registration  of  their  Registrable  Securities.
(i)          Indemnification.  In  the  event  any  Registrable  Securities  are
included  in  a  registration  statement  under  Sections  4(b),  4(d) or 4(e):
(i)          To the extent permitted by law, the Corporation shall indemnify and
     hold  harmless  each  Holder,  the partners, officers and directors of each
Holder,  any  underwriter (as defined in the Securities Act) for such Holder and
each  person, if any, who controls such Holder or underwriter within the meaning
of  the Securities Act or the Exchange Act, against any losses, claims, damages,
or  liabilities  (joint  or  several),  and,  in  connection with a registration
pursuant  to  Sections 4(b) or 4(e), including attorneys' fees and disbursements
and  expenses of investigation, incurred by such party pursuant to any actual or
threatened  action,  suit, proceeding or investigation, to which they may become
subject  under  the  Securities  Act, the Exchange Act or other federal or state
law,  insofar  as  such  losses,  claims,  damages or liabilities (or actions in
respect  thereof arise out of or are based upon any of the following statements,
omissions  or  violations  (collectively,  a  "Violation")):
(A)          any untrue statement or alleged untrue statement of a material fact
     contained  in  such  registration  statement,  including  any  preliminary
prospectus  or  final  prospectus  contained  therein  or  any  amendments  or
supplements  thereto,
(B)          the  omission  or alleged omission to state therein a material fact
required  to  be stated therein, or necessary to make the statements therein not
misleading,  or
(C)          any  violation  or  alleged  violation  by  the  Corporation of the
Securities  Act,  the  Exchange  Act, any federal or state securities law or any
rule or regulation promulgated under the Securities Act, the Exchange Act or any
federal  or state securities law in connection with the offering covered by such
registration statement, and the Corporation shall reimburse each such Holder, or
a partner, officer or director, underwriter or controlling person of such Holder
for  any  legal  or  other expenses reasonably incurred by them, as incurred, in
connection  with  investigating  or  defending  any  such  loss,  claim, damage,
liability  or  action; provided, however, that the indemnity agreement contained
in  this  Section 4(i) shall not apply to amounts paid in settlement of any such
loss,  claim, damage, liability or action if such settlement is effected without
the consent of the Corporation (which consent shall not be unreasonably withheld
or  delayed), nor shall the Corporation be liable in any case for any such loss,
claim,  damage,  liability  or  action to the extent that it arises out of or is
based  upon  a  Violation  which  occurs in reliance upon and in conformity with
written  information  furnished  expressly  for  use  in  connection  with  such
registration  by  such  Holder,  or a partner, officer, director, underwriter or
controlling  person  of  such  Holder;  provided,  further,  that  the indemnity
agreement  contained  in this Section 4(i) shall not apply to any underwriter to
the  extent  that any such loss is based on or arises out of an untrue statement
or  alleged  untrue  statement  of  a  material  fact, or an omission or alleged
omission  to state a material fact, contained in or omitted from any preliminary
prospectus  if  the  final  prospectus  shall  correct  such untrue statement or
alleged  untrue  statement,  or such omission or alleged omission, and a copy of
the  final  prospectus  has not been sent or given to such person at or prior to
the  confirmation  of  sale  to  such  person  if  such underwriter was under an
obligation  to  deliver such final prospectus and failed to do so.  With respect
to  registrations pursuant to Sections 4(b) and 4(e), the Corporation also shall
indemnify  underwriters, selling brokers, dealer managers and similar securities
industry  professionals  participating  in  the  distribution,  their  officers,
directors,  agents  and  employees  and  each  person  who controls such persons
(within  the  meaning  of  Section 15 of the Securities Act or Section 20 of the
Exchange  Act)  to  the  same  extent  as  provided  above  with  respect to the
indemnification  of  the  Holders.
(ii)          To  the  extent  permitted  by  law,  each  selling  Holder  shall
indemnify  and hold harmless the Corporation, each of its directors and officers
who  have  signed  the registration statement, each person, if any, who controls
the  Corporation  within  the meaning of the Securities Act, any underwriter and
any  other Holder selling securities under such registration statement or any of
such  other  Holder's partners, directors or officers or any person who controls
such  Holder  within  the  meaning  of  the  Securities Act or the Exchange Act,
against  any  losses, claims, damages or liabilities (joint or several) to which
the  Corporation  or any such director, officer, controlling person, underwriter
or  other  such Holder, or a partner, director, officer or controlling person of
such  other Holder may become subject under the Securities Act, the Exchange Act
or  other  federal  or  state  law,  insofar  as such losses, claims, damages or
liabilities  (or  actions in respect thereto) arise out of or are based upon any
Violation,  in  each  case  to  the  extent  (and  only to the extent) that such
Violation  occurs  in  reliance  upon and in conformity with written information
furnished by such Holder expressly for use in connection with such registration;
     and each such Holder shall reimburse any legal or other expenses reasonably
incurred  by  the Corporation or any such director, officer, controlling person,
underwriter or other Holder, partner, officer, director or controlling person of
such  other  Holder in connection with investigating or defending any such loss,
claim,  damage,  liability  or  action;  provided,  however,  that the indemnity
agreement  contained  in  this  Section  5(j) shall not apply to amounts paid in
settlement  of  any  such  loss,  claim,  damage,  liability  or  action if such
settlement  is  effected  without the consent of the Holder, which consent shall
not  be  unreasonably  withheld;  and  provided, further, that the total amounts
payable  in  indemnity by a Holder under this Section 4(i)(ii) in respect of any
Violation  shall  not  exceed  the  net  proceeds received by such Holder in the
registered  offering  out  of  which  such  Violation  arises.
(iii)          Promptly after receipt by an indemnified party under this Section
4(i)  of  notice  of  the commencement of any action (including any governmental
action),  such  indemnified  party shall, if a claim in respect thereof is to be
made  against  any  indemnifying  party  under this Section 4(i), deliver to the
indemnifying  party  a  written  notice  of  the  commencement  thereof  and the
indemnifying  party  shall  have the right to participate in, and, to the extent
the  indemnifying  party  so  desires, jointly with any other indemnifying party
similarly  noticed,  to  assume  the  defense  thereof  with  counsel  mutually
satisfactory  to the parties; provided, however, that an indemnified party shall
have  the right to retain its own counsel, with the fees and expenses to be paid
by  the  indemnifying  party, if representation of such indemnified party by the
counsel  retained by the indemnifying party would be inappropriate due to actual
or  potential  differing  interests between such indemnified party and any other
party  represented  by  such counsel in such proceeding.  The failure to deliver
written  notice  to  the  indemnifying  party  within  a  reasonable time of the
commencement  of  any  such action, if prejudicial to its ability to defend such
action,  shall  relieve  such  indemnifying  party  of  any  liability  to  the
indemnified  party  under  this  Section  4(i),  but  the omission so to deliver
written  notice  to the indemnifying party shall not relieve it of any liability
that  it  may  have  to  any indemnified party otherwise than under this Section
4(i).
(iv)          With  respect to registrations pursuant to Sections 4(b) and 4(e),
any  fees and expenses incurred by the indemnified party (including any fees and
expenses  incurred  in connection with investigating or preparing to defend such
action  or  proceeding)  shall  be  paid  to the indemnified party, as incurred,
within  thirty  (30)  days  of  written notice thereof to the indemnifying party
(regardless  of whether it is ultimately determined that an indemnified party is
not  entitled  to  indemnification hereunder).  Any such indemnified party shall
have  the  right  to  employ  separate  counsel  in  any  such  action, claim or
proceeding  and to participate in the defense thereof, but the fees and expenses
of  such  counsel shall be the expenses of such indemnified party unless (A) the
indemnifying  party  has  agreed  to  pay  such  fees  and  expenses  or (B) the
indemnifying  party  shall  have  failed  to promptly assume the defense of such
action,  claim  or proceeding or (C) the named parties to any such action, claim
or  proceeding  (including  any impleaded parties) include both such indemnified
party  and  the  indemnifying  party, and such indemnified party shall have been
advised  by counsel that there may be one or more legal defenses available to it
which  are  different from or in addition to those available to the indemnifying
party  and  that  the  assertion  of  such  defenses  would create a conflict of
interest  such  that  counsel  employed  by  the  indemnifying  party  could not
faithfully  represent  the indemnified party (in which case, if such indemnified
party  notifies  the  indemnifying  party  in  writing  that it elects to employ
separate  counsel  at  the  expense  of the indemnifying party, the indemnifying
party  shall  not  have the right to assume the defense of such action, claim or
proceeding  on  behalf  of such indemnified party, it being understood, however,
that  the  indemnifying party shall not, in connection with any one such action,
claim  or  proceeding  or separate but substantially similar or related actions,
claims  or  proceedings in the same jurisdiction arising out of the same general
allegations  or circumstances, be liable for the reasonable fees and expenses of
more  than  one  separate  firm  of  attorneys  (together with appropriate local
counsel)  at any time for all such indemnified parties, unless in the reasonable
judgment  of  such  indemnified  parties  with  respect to such action, claim or
proceeding,  in which event the indemnifying party shall be obligated to pay the
fees  and  expenses  of  such  additional counsel or counsels).  No indemnifying
party  shall be liable to an indemnified party for any settlement of any action,
proceeding or claim without the written consent of the indemnifying party, which
consent  shall  not  be  unreasonably  withheld  or  delayed.
(v)          In  order  to  provide for just and equitable contribution to joint
liability  under  the  Securities Act in any case in which either (A) any Holder
exercising  rights  under  this Agreement, or any controlling person of any such
Holder,  makes  a claim for indemnification pursuant to this Section 4(i) but it
is  judicially determined (by the entry of a final judgment or decree by a court
of  competent jurisdiction and the expiration of time to appeal or the denial of
the  last right of appeal) that such indemnification may not be enforced in such
case  notwithstanding  the  fact  that  this  Section  4(i)  provides  for
indemnification  in  such case, or (B) contribution under the Securities Act may
be  required  on  the  part  of  any such selling Holder or any such controlling
person in circumstances for which indemnification is provided under this Section
4(i),  then,  and  in  each  such  case,  the  Corporation  or such Holder shall
contribute  to  the  aggregate  losses,  claims,  damages  or  liabilities as is
appropriate  to  reflect  not  only  the  relative  benefits  received  by  the
indemnified party and the indemnifying party, but also the relative fault of the
indemnified  party  and  the  indemnifying  party, as well as any other relevant
equitable  considerations.  The  relative  fault  of such indemnifying party and
indemnified  parties  shall  be  determined by reference to, among other things,
whether any action in question, including any untrue or alleged untrue statement
of a material fact or omission or alleged omission to state a material fact, has
been  made by, or relates to information supplied by, such indemnifying party or
indemnified  parties,  and  the  parties'  relative intent, knowledge, access to
information  and  opportunity  to  correct  or  prevent  such  action; provided,
however,  that,  in  any  such  case,  (1)  no  such Holder shall be required to
contribute  any  amount  in  excess  of  the  public  offering price of all such
Registrable  Securities  offered  and  sold  by  such  Holder  pursuant  to such
registration statement; and (2) no person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution  from  any  person  who  was  not  guilty  of  such  fraudulent
misrepresentation.
(vi)          The  obligations of the Corporation and Holders under this Section
4(i) shall survive the completion of any offering of Registrable Securities in a
registration  statement,  and  the  termination  of  this  Agreement.
(j)          "Market  Stand-Off'  Agreement.  Each  Holder hereby agrees that it
shall  not,  to  the  extent  requested by the Corporation and an underwriter of
Common  Stock  of  the Corporation, sell or otherwise transfer or dispose of any
Registrable  Securities  (other  than Registrable Securities being registered in
such  offering)  for up to that period of time following the effective date of a
registration  statement  of the Corporation filed under the Securities Act as is
requested  by  the  managing  underwriter(s) of such offering, not to exceed one
hundred  twenty  (120)  calendar  days;  provided,  however,  that:
(i)          such  agreement  shall  be  applicable  only  to  the  first  such
registration  statement of the Corporation which covers securities to be sold on
its  behalf  to  the  public  in an underwritten offering but not to Registrable
Securities  sold  pursuant  to  such  registration  statement;  and
(ii)          all  officers,  directors  and  ten  percent  (10%)  or  greater
stockholders  of  the Corporation, provided such stockholders have acquired such
securities  directly  from  the  Corporation,  then  holding Common Stock of the
Corporation,  shall  enter  into  similar  agreements.
     In order to enforce the foregoing covenant, the Corporation may impose stop
transfer  instructions with respect to the then-remaining Registrable Securities
of  each  Holder  (and the shares or securities of every other person subject to
the  foregoing  restriction)  until  the  end  of  such  period.
(k)          Rule  144  Reporting.  With a view to making available the benefits
of  certain rules and regulations of the Commission which may at any time permit
the  sale  of the Registrable Securities to the public without registration, the
Corporation  agrees  to:
(i)          Make  and  keep  public  information  available, as those terms are
understood  and  defined  in  Rule  144  under  the  Securities  Act;
(ii)          File  with the Commission in a timely manner all reports and other
documents  required of the Corporation under the Securities Act and the Exchange
Act;  and
(iii)          So  long  as a Holder owns any Registrable Securities, furnish to
the  Holder  forthwith upon request a written statement by the Corporation as to
its  compliance  with  the  reporting  requirements of said Rule 144, and of the
Securities  Act  and  the  Exchange  Act,  a  copy  of the most recent annual or
quarterly report of the Corporation, and such other reports and documents of the
Corporation as a Holder may reasonably request in availing itself of any rule or
regulation  of  the  Commission  allowing  a  Holder to sell any such securities
without  registration.
(l)          Removal  of Legends, Etc.  Notwithstanding the foregoing provisions
of  this  Section  4,  the  restrictions  imposed  by  this  Section  4 upon the
transferability of any Registrable Securities shall cease and terminate when any
     such Registrable Securities are sold or otherwise disposed of in accordance
with  the  intended  method  of disposition by the seller or sellers thereof set
forth  in  the registration statement which does not require that the securities
transferred  bear  the  legend  set  forth  in  Section  4(a).  Whenever  the
restrictions  imposed  by this Section 4 shall terminate as herein provided, the
Holder  of  any  Registrable  Securities  as  to  which  such  restrictions have
terminated  shall  be entitled to receive from the Corporation, without expense,
one  or  more  new  certificates not bearing the restrictive legend set forth in
Section  4(a) and not containing any other reference to the restrictions imposed
by  this  Section  4.
(m)          Filing  of  Reports  Under the Exchange Act.  The Corporation shall
give  prompt  notice  to  the  Investor  of:
(i)          the  filing  of  an  Exchange  Act  Registration  Statement;  and
(ii)          the  effectiveness of such Exchange Act Registration Statement and
the  number of shares of such class of equity securities outstanding as reported
in  such  Exchange Act Registration Statement, in order to enable the parties to
this  Agreement to comply with any reporting requirements under the Exchange Act
or  the Securities Act. The Corporation shall, at any time after the Corporation
shall  register any shares of Common Stock under the Securities Act and upon the
written  request  of  any  Investor, file an Exchange Act Registration Statement
relating  to  any class of Equity Securities of the Corporation then held by the
Investors,  whether  or not the class of equity securities with respect to which
such request is made shall be held by at least the number of persons which would
require  the  filing  of  a registration statement under Section 12(g)(1) of the
Exchange  Act.  The Corporation shall comply with all the reporting requirements
of  the  Exchange  Act,  and  shall  comply  with  all  other public information
reporting  requirements  of the Commission as a condition to the availability of
an  exemption  from  the Securities Act (under Rule 144 thereof, as amended from
time  to  time,  or  successor rule thereto or otherwise) for the sale of Common
Stock  by  the  Investors.  The  Corporation  shall  cooperate  with Investor in
supplying such information as may be necessary for the Investors to complete and
file  any  information  reporting  forms  presently or hereafter required by the
Commission  as  a  condition  to  the  availability  of  an  exemption  from the
Securities  Act  (under  Rule  144  thereof or otherwise) for the sale of Common
Stock  by  any  Investor.
(n)          Underwritten Registration.  Except in the case of an offering under
     a registration under Section 4(d), if any of the Registrable Securities are
to  be  sold  in  an  underwritten offering, the investment banker or investment
bankers  and  manager  or  managers  that  will  administer the offering will be
selected  by  the  Corporation and, in the case of a registration effected under
Sections  4(b)  or  4(e),  approved  in  writing  by  the  Holders  of  at least
thirty-three (33%) percent of the Registrable Securities requesting inclusion of
their  Registrable  Securities  in such registration statement.  In the event of
underwritten  offering  of  Registrable Securities in connection with a Holders'
Demand  Request,  the  investment  banker  or  investment bankers and manager or
managers that will administer the offering will be selected by the Holders of at
least  thirty-three  (33%)  percent  of  the  Registrable  Securities requesting
inclusion  of  their Registrable Securities in such registration statement under
Section  4(d).
Section  5.          Management  Rights.
(a)          Board  of  Directors.  So long as not less than twenty-five percent
(25%) of the originally issued shares of Series B-1 Preferred Stock and Series C
     Preferred  Stock,  collectively,  are held by the Investors, the holders of
shares  of  Series  B-1  Preferred  Stock  and Series C Preferred Stock shall be
entitled  to  nominate three (3) persons to the Corporation's Board of Directors
(the  "Preferred  Nominee")  whether by annual meeting, special meeting, written
consent  or  otherwise of which one (1) Preferred Nominee shall be a designee of
Furman  Selz  Private Investments LLC (in its capacity as manager of Furman Selz
Investors  II  L.P.) and one (1) Preferred Nominee shall be a designee of Furman
Selz  Private Investments III LLC (in its capacity as manager of ING Furman Selz
Investors  III LP).  A vacancy in any directorship entitled to be elected by the
holders of record of shares of Series B-1 Preferred Stock and Series C Preferred
Stock  (including  without  limitation,  a  vacancy  resulting from the decision
during  an earlier election by the holders of the Series B-1 Preferred Stock and
the  Series  C  Preferred  Stock  not to fill the directorship to be held by the
Preferred  Nominee)  shall  be  filled  only  by  vote or written consent of the
holders of record of shares of Series B-1 Preferred Stock and Series C Preferred
Stock,  in the manner set forth in the Series B-1 Certificate of Designation and
the  Series C Certificate of Designation.  Each Preferred Nominee who shall have
been  elected  as provided in Paragraph A.8.(b) of the Series B-1 Certificate of
Designation  and  the  Series C Certificate of Designation may be removed during
his  or  her  term  of  office, whether with or without cause, by the holders of
record  of  a  majority of the shares of Series B-1 Preferred Stock and Series C
Preferred  Stock  then  outstanding.  The holders of record of a majority of the
shares  of  Series  B-1  Preferred  Stock  and  Series  C  Preferred  Stock then
outstanding  shall have the right to call meetings of the Board of Directors and
management  of  the Corporation, upon no less than ten (10) calendar days' prior
written  notice; provided, that such meetings are called no more frequently than
once  per  fiscal  quarter.  The  Board  of  Directors shall not be permitted to
establish  any committees unless one (1) elected Preferred Nominee is invited to
serve on such committee, including any special committee created by the Board of
Directors  not  in  the  ordinary  course of business, and the Corporation shall
cause  such  elected  Preferred  Nominee  to  be  so  appointed.
(b)          Observer  Rights.  In  the  event that the Investors no longer have
the  right  to  nominate directors pursuant to Section 5(a) above, the Investors
shall  have  the  observer  and  inspection  rights  set  forth  below.
(i)          The  Corporation shall give to each Investor notice of each meeting
of  the  Board  of Directors of the Corporation at the same time and in the same
manner as notice is given to the directors of the Corporation.  One (1) designee
     of  each of Furman Selz Private Investments LLC (in its capacity as manager
of  Furman  Selz  Investors II L.P.) and Furman Selz Private Investments III LLC
(in  its  capacity  as  manager  of  ING  Furman Selz Investors III LP) shall be
entitled to attend in person, as an observer, all meetings held in person and to
listen to telephone meetings of the Board of Directors of the Corporation solely
for  the  purpose  of  allowing  the  Investors to have current information with
respect  to  the  affairs  of the Corporation.  The Corporation shall provide to
such  parties in connection with each meeting their respective observer designee
is  entitled  to  attend,  whether or not present at such meeting, copies of all
notices,  minutes,  consents,  and  all  other  materials or information that it
provides  to  the  directors of the Corporation with respect to such meeting, at
the  same  time such materials and information are given to the directors of the
Corporation  (except that materials and information provided to directors of the
Corporation at meetings at which a designee of such parties is not present shall
be  provided  to  such parties promptly after the meeting).  The observer rights
afforded by this Section 3(c) shall apply for so long as the Investors and their
affiliates  own  any  shares  of  either  Series B-1 Preferred Stock or Series C
Preferred  Stock;  provided,  however, that such rights shall not apply upon the
filing  of  a registration statement under the Securities Act by the Corporation
in  which  all  of  the  Registrable  Securities of the Investors are included.
(ii)          The  Corporation  and its Subsidiaries will upon reasonable notice
(A)  give  each  of  the  Investors  and their authorized representatives access
during  regular business hours to all of the Corporation's and its Subsidiaries'
offices  and  to all books and records of each, (B) permit each of the Investors
to  make such inspections as it may require (and the Corporation shall cooperate
with  such Investor in any inspections), and (C) cause its officers and those of
its  Subsidiaries  to  furnish  each  of  the  Investors with such financial and
operating data and other information with respect to the business and properties
of  the  Corporation and its Subsidiaries as such Investor may from time to time
request.  The  Investors  shall maintain the confidentiality of any confidential
and  proprietary  information so obtained by it which is not otherwise available
from  other  sources that are free from similar restrictions; provided, however,
that  the  foregoing  shall in no way limit or otherwise restrict the ability of
each  of  the  Investors or such authorized representatives to disclose any such
information  concerning  the Corporation or its Subsidiaries which such Investor
may  be  required  to disclose (x) to such Investor's partners, board members or
stockholders,  to  the  extent  required  to  satisfy  such Investor's fiduciary
obligations to such Persons, or (y) otherwise pursuant to or as required by law;
provided  further,  that,  to  the  extent legally permitted, the Investors will
notify  the  Corporation  of  such  disclosure  and  afford  the  Corporation an
opportunity  promptly  to  oppose  such  disclosure.
Section  6.          Severability;  Governing  Law.  If  any  provisions of this
Agreement is determined to be illegal and unenforceable by any court of law, the
     remaining  provisions shall be severable and enforceable in accordance with
their  terms.  The  parties  hereto agree that Investor would suffer irreparable
damage  would  occur  in  the event that any of the provisions of this Agreement
were  not  performed  in  accordance with their specific terms or were otherwise
breached  by  the  Corporation.  It is accordingly agreed that Investor shall be
entitled  to  an injunction or injunctions to prevent breaches of this Agreement
and  to  enforce specifically the terms and provisions hereof in any state court
located  in  the  State of New York, or the United States District Court for the
Southern  District of New York or any federal court in the State of New York (as
to  which  the  Corporation agrees to submit to jurisdiction for the purposes of
such  or  any other action), this being in addition to any other remedy to which
Investor  is  entitled at law or in equity, and, if an Investor is successful on
the merits in any such action, that the costs and expenses (including reasonable
attorneys'  fees)  incurred by Investor in seeking enforcement of this Agreement
or the Certificate of Designation shall be the sole and exclusive responsibility
of  the  Corporation.  This  Agreement  shall  be  governed by, and construed in
accordance  with,  the  laws  of  the State of New York as to matters within the
scope thereof, and as to all other matters shall be governed by and construed in
accordance  with  the  internal  law  of  the  State  of  Delaware.
Section 7.          Benefits of Agreement.  This Agreement shall be binding upon
and  inure  benefit  of the parties and their respective successors and assigns,
legal  representatives  and  heirs.  Subject  to  the  terms  of this Agreement,
including  the  five  percent  (5%) limitation set forth below, the Investor may
transfer  any  or  all of its rights hereunder to any purchaser or transferee of
all  or  a  portion  of  the  currently outstanding shares of Series B Preferred
Stock,  including  any  right  or  interest  therein,  without the prior written
consent  of the Corporation or any stockholder of the Corporation.  In the event
that a transfer involves at least five percent (5%) of the currently outstanding
shares  of  Series  B  Preferred Stock, including any right or interest therein,
such  transferee  shall  be  deemed  to  be  "Investor,"  and  a  "Holder",  as
appropriate,  for purposes of this Agreement, and may again transfer such rights
in  accordance  with,  and  subject  to,  the  terms  of  this  Agreement.
Section  8.          Notices.  All  notices, requests, claims, demands and other
communication  hereunder  shall  be  in writing and shall be deemed to have been
duly  given when delivered in person, by cable, telegram, facsimile transmission
with  confirmation  of  receipt,  or  telex,  or by registered or certified mail
(postage  prepaid,  return  receipt  requested)  to  the  respective  parties as
follows:
if  to  Investors:
c/o  FS  Private  Investments  LLC,  Manager
c/o  FS  Private  Investments  III  LLC,  Manager
55  East  52nd  Street,  37th  Floor
New  York,  New  York  10055-0002
Attention:     James  L.  Luikart
Phone:          (212)  284-1700
Fax:          (212)284-1717

with  a  required  copy  to:

Dechert
4000  Bell  Atlantic  Tower
1717  Arch  Street
Philadelphia,  PA  19103-2793
Attention:     Carmen  J.  Romano,  Esq.
Phone:          (215)  994-4000
Fax:          (215)  994-2222

if  to  the  Company:

ABC-NACO  INC.
2001  Butterfield  Road
Suite  502
Downers  Grove,  Illinois  60515
     Attention: Wayne R. Rockenbach
     Senior Vice President and Chief Financial Officer
     Phone: (630) 792-2010
     Fax: (630) 916-6429

with  required  copies  to:

ABC-NACO  Inc.
335  Eisenhower  Lane  South
Lombard,  IL  60148
Attention:     Mark  F.  Baggio,  Esq.
     Vice President, General Counsel
     and Secretary
     Phone: (630) 792-2010
     Fax: (630) 916-6429

Schiff  Hardin  &  Waite
6600  Sears  Tower
Chicago,  Illinois  60606
     Attention: Robert J. Regan, Esq.
     Phone: (312) 258-5606
     Fax: (312) 258-5700

or  to  such  other  address  as  the  person  to  whom notice is given may have
previously  furnished  to  the  others  in writing in the manner set forth above
(provided  that  notice  of  any  change of address shall be effective only upon
receipt  thereof).
Section 9.          Changes.  The terms and provisions of this Agreement may not
     be  modified,  amended, or any of the provisions hereof waived, temporarily
or  permanently,  except  pursuant to the written consent of the parties hereto;
except  that any rights applicable to Investor may be waived by Investor without
the  consent  of the Corporation, or the other stockholders of the Corporation.
Section 10.          Captions.  The captions herein are inserted for convenience
only and are not intended to define, limit, extend or describe the scope of this
Agreement  or  affect  the  construction  hereof.
Section  11.          Nouns and Pronouns.  Whenever the context may require, any
pronoun  herein  shall  include  the corresponding masculine, feminine or neuter
forms  and  the singular form of names and pronouns shall include the plural and
vice-versa.
Section  12.          Merger  Provision.  This  Agreement  (as  the  same may be
amended  from  time),  the  Series  B  Stock  Purchase  Agreement,  the Exchange
Agreement  and  the  Series  C  Stock  Purchase Agreement, constitute the entire
agreement  and  understanding among the parties pertaining to the subject matter
hereof  and  supersede  all  prior  and  contemporaneous  agreements therewith.
Section  13.          Counterparts.  This  Agreement  may  be executed in one or
more  counterparts,  each of which shall be deemed to be an original, but all of
which  taken  together  shall  constitute  one  and  the  same  instrument.

<PAGE>
IN  WITNESS  WHEREOF,  the  parties hereto have caused this Agreement to be duly
executed  on  their  behalf
ABC-NACO  INC.

     By:_________________________________
     Name:  Wayne  R.  Rockenbach
     Title:     Chief     Financial  Officer
INVESTORS:
FURMAN  SELZ  INVESTORS  II  L.P.
FS  EMPLOYEE  INVESTORS  LLC
FS  PARALLEL  FUND  L.P.
By:     FS  PRIVATE  INVESTMENTS
     LLC,  Manager
By:_________________________________
     Name:     James  L.  Luikart
     Title:     Managing  Member

ING  FURMAN  SELZ  INVESTORS  III  L.P.
ING  BARINGS  U.S.  LEVERAGED  EQUITY
     PLAN  LLC
ING  BARINGS  GLOBAL  LEVERAGED
     EQUITY  PLAN  LTD.

By:  FS  PRIVATE  INVESTMENTS  III,
     LLC,  Manager

By:
     Name:
     Title

   [signatures continued on next page]

<PAGE>
INVESTORS:

By:
     James  Dowling
<PAGE>

SCHEDULE  I

Investors     Series B Preferred Stock     Series B-1 Preferred Stock     Series
                                C Preferred Stock

FURMAN  SELZ  INVESTORS  II  L.P.       0     139,303.54     65,895
FS  EMPLOYEE  INVESTORS  LLC       0     11,938.43     5,640
FS  PARALLEL  FUND  L.P.       0     6,777.77     3,210
ING  FURMAN  SELZ  INVESTORS  III  L.P.       0     110,107.15     52,080
ING  BARINGS  U.S.  LEVERAGED  EQUITY  PLAN LLC       0     33,484.93     15,840
ING  BARINGS  GLOBAL  LEVERAGED EQUITY PLAN LTD.       0     14,427.66     6,825
JAMES  DOWLING       0     1,058.13     510

<PAGE>
                                    EXHIBIT A
                  Amended Restated Certificate of Incorporation

<PAGE>
                                    EXHIBIT B
                      Series B-1 Certificate of Designation

<PAGE>
                                    EXHIBIT C
                       Series C Certificate of Designation

<PAGE>
                                   EXHIBIT D-1
                               Additional Warrant

<PAGE>
                                   EXHIBIT D-2
Closing  WarrantTHESE  SECURITIES  HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED  (THE  "ACT"),  OR  THE  SECURITIES  LAWS  OF  ANY  STATE AND MAY NOT BE
TRANSFERRED  WITHOUT  REGISTRATION  UNDER THE ACT OR STATE SECURITIES LAWS OR AN
EXEMPTION  THEREFROM.
                                     FORM OF
                      CLOSING COMMON STOCK PURCHASE WARRANT
                                       OF
                                  ABC-NACO INC.

No.  _____     Certificate  for  _________  Warrant  Shares

     ABC-NACO  INC.,  a  Delaware  corporation (the "Company"), hereby certifies
that  ___________________,  or  assigns,  is the holder of the warrant set forth
above  (the  "Warrant").  The  Warrant entitles the holder thereof (a "Holder"),
subject  to  the  provisions  contained herein, to purchase from the Company the
aggregate  number  of  shares  of common stock, par value $.01 per share, of the
Company ("Common Stock") set forth above (the "Warrant Shares"), at the exercise
price  of  $.01 per share (the "Exercise Price"), subject to adjustment upon the
occurrence of certain events described hereinafter.  The Warrant shall terminate
and become void as of 5:00 p.m., Chicago time, on June 25, 2011 (the "Expiration
Date").
1.     Do  not  Remove.
     This  Warrant is issued under and in accordance with the Series C Preferred
Stock  and  Common  Stock Warrant Purchase Agreement, dated as of April 17, 2001
(the  "Stock  Purchase  Agreement"), between the Company and the Investors named
therein.
The  Exercise  Price  and the number of shares of Common Stock issuable upon the
exercise  of  the  Warrant  are subject to adjustment as provided hereinafter in
Section  2.
All  shares  of  Common  Stock  issuable by the Company upon the exercise of the
Warrant  shall,  upon  such issuance, be duly and validly issued, fully paid and
non-assessable.
1.1.          Exercise Period.  This Warrant may be exercised, by the Holder, at
     any  time  and  from  time  to time, commencing on the date of the original
issuance  of  this  Warrant  up  to  and  including  the  Expiration  Date.
1.2.          Exercise  Procedure.  In order to exercise the Warrant, the Holder
hereof  must  surrender  the  Warrant  at  the  office  of  the Company, at 2001
Butterfield  Road,  Suite  502,  Downers  Grove,  Illinois  60515,  Attention:
Secretary, or such other address as the Company may specify by written notice to
the  Holder  hereof,  with  the  Exercise  Subscription  Form attached hereto as
Exhibit A duly executed by the Holder hereof, together with any required payment
in full of the Exercise Price then in effect for the Warrant Shares, as to which
the  Warrant  is submitted for exercise, all subject to the terms and conditions
hereof.  Any  such  payment  of  the  Exercise Price shall be in cash (except as
provided  in  Section  1.4 hereof), payable to the order of the Company, by bank
check  or  wire  transfer  of  an amount equal to the applicable Exercise Price.
1.3.          Partial Exercise.  This Warrant may be exercised for less than the
aggregate  number  of Warrant Shares, in which case the number of Warrant Shares
receivable  upon  the  exercise  of this Warrant as a whole, and the sum payable
upon  the exercise of this Warrant as a whole, shall be proportionately reduced.
Upon any such partial exercise, the Company, at is expense shall forthwith issue
to  the  Holder  hereof  a new Warrant or Warrants of like tenor calling for the
number  of  remaining Warrant Shares as to which rights have not been exercised,
such  Warrant  or  Warrants to be issued in the name of the holder hereof or its
nominee  (upon  payment  by  such  holder  of  any  applicable  transfer taxes).
1.4.          Net  Issue  Exercise.
(a)     In  lieu  of  paying the Exercise Price in cash, the Holder may elect to
pay  the  Exercise Price with Warrant Shares by surrender of this Warrant at the
principal  office of the Company together with notice of such election, in which
event  the  Company  shall  issue  to  the  Holder that number of Warrant Shares
computed  using  the  following  formula:

                               [GRAPHIC  OMITED]

Where
X     is  the  number  of Warrant Shares to be issued to Holder pursuant to this
Section  1.4;
Y     is  the  number  of  Warrant  Shares as to which Holder is exercising this
Warrant;
A     is  the  Fair Market Value Price (as hereinafter defined) of the Company's
Common  Stock  in  effect  under this Warrant as of the date of exercise of this
Warrant;  and
     B     is  the Exercise Price in effect under this Warrant as of the date of
exercise  of  this  Warrant.
(b)     As  used  herein,  the "Fair Market Value Price" of the Company's Common
Stock  shall  be  the  average  of the closing prices per share of the Company's
Common  Stock  as  reported  by the Nasdaq National Market ("NASDAQ") (or on any
exchange on which Common Stock is listed) or, if there is no such closing price,
     the  average  of  the  closing  bid  and  asked  prices  quoted  in  the
Over-The-Counter  Market  Summary,  whichever is applicable, as published in the
Eastern  Edition  of  The  Wall  Street  Journal  for  the ten (10) trading days
immediately  prior to the date of determination of such price.  If the Company's
Common  Stock  is  not traded on NASDAQ (or other exchange) or Over-The-Counter,
the  "Fair  Market Value Price" of the Company's Common Stock shall be the price
per  share  as  determined  in  good  faith by the Company's Board of Directors.
1.5.          Expenses  in  Connection with Exercise.  The Company shall pay all
taxes  and  other  governmental charges that may be imposed on the Company or on
the  Warrant  or  on the Warrant Shares or any other securities deliverable upon
exercise of the Warrant.  The Company shall not be required, however, to pay any
     tax or other charge imposed in connection with any transfer involved in the
issue  of  any  certificate  for  shares  of  Common  Stock  or other securities
underlying the Warrant or payment of cash to any person other than the Holder of
the  Warrant  surrendered  upon  the  exercise of a Warrant, and in case of such
transfer  or  payment,  the  Company  shall  not  be required to issue any stock
certificate  or  pay any cash until such tax or other charge has been paid or it
has  been  established  to  the Company's satisfaction that no such tax or other
charge  is  due.

2.     Do  not  Remove.
2.1.          Adjustments.  The  number of Warrant Shares issuable upon exercise
of  the Warrant  and the Exercise Price shall be subject to adjustment from time
to  time  as  follows:
(a)     Adjustment  for  Dividends  in  Other  Stock,  Property,  etc.;
Reclassification,  etc.  In  case  the  holders  of  Common  Stock (or any Other
Securities,  as  defined  below)  have received, or (on or after the record date
fixed  for  the  determination  of stockholders eligible to receive) have become
entitled  to  receive,  without  payment  therefor,
(i)     other  or  additional  stock or other securities or property (other than
cash)  by  way  of  dividend,  or
(ii)     any  cash  (excluding  cash dividends payable solely out of earnings or
earned  surplus  of  the  Company),  or
(iii)     other  or  additional stock or other securities or property (including
cash)  by  way  of  spin-off,  split-up,  reclassification,  recapitalization,
combination  of  shares  or  similar  corporate  rearrangement, or any merger or
consolidation or the sale, conveyance or disposition of a majority of the assets
of  the  Company  and  its Subsidiaries on a consolidated basis (other than to a
wholly  owned  Subsidiary  of  the  Company),
other  than  additional shares of Common Stock (or Other Securities) issued as a
stock dividend or in a stock-split (adjustments in respect of which are provided
for  in  Section 2.1(b)), then and in each such case the Holder, on the exercise
hereof as provided in Section 1, will be entitled to receive the amount of stock
and  other  securities  and property (including cash in the cases referred to in
subdivisions  (ii)  and  (iii) of this Section 2.1(a)) that such Holder would be
entitled  to  receive  on  the date of such exercise if on the date hereof, such
Holder  had  been  the  holder of record of the number of shares of Common Stock
called  for  on  the  face of this Warrant and had thereafter, during the period
from  the  date  hereof  up to and including the date of such exercise, retained
such  shares  and  all  such  other or additional stock and other securities and
property  (including  cash in the cases referred to in clauses (ii) and (iii) of
this  Section 2.1(a)) receivable by such Holder as aforesaid during such period,
giving  effect  to  all  adjustments  called  for  during such period by Section
2.1(b).  The  term  "Other  Securities"  means  stock or other securities of the
Company  or  any other Person (i) which the Holder at any time shall be entitled
to  receive, or shall have received, on the exercise of this Warrant, in lieu of
or  in  addition to Common Stock, or (ii) which at any time shall be issuable or
shall have been issued in exchange for or in replacement of Common Stock or such
other  stock  or  securities  pursuant  to  the  terms  hereof.

(b)     Adjustment  for  Stock  Dividend,  Stock Split, etc.  If the Company (i)
issues  additional shares of Common Stock as a dividend or other distribution on
outstanding  shares  of  Common Stock, (ii) subdivides its outstanding shares of
Common  Stock,  (iii)  combines  its  outstanding  shares of Common Stock into a
smaller  number  of  shares  of  Common Stock, and then, in each such event, the
number  of  Warrant  Shares  issuable  upon exercise of this Warrant immediately
prior to the record date for such dividend or distribution or the effective date
     of  such  subdivision  or  combination  shall  be  adjusted, and thereafter
simultaneously  with  such  event,  The  Exercise  Price  shall  be  adjusted by
multiplying  the  current  Exercise  Price by a fraction, the numerator of which
will  be  the  number of shares of Common Stock outstanding immediately prior to
such  event  and the denominator of which will be the number of shares of Common
Stock outstanding immediately after such event, and the product so obtained will
thereafter  be the Exercise Price then in effect ; provided, however, that in no
event shall the Exercise Price of this Warrant be adjusted downward to an amount
that  is  below  the  then current par value of the Common Stock.  An adjustment
made  pursuant  to  this Section 2.1(b) shall become effective immediately after
the  effective  date  of  such event retroactive to the record date, if any, for
such  event.
(c)     Notices  of  Record  Date,  etc.  In  the  event  of:
(i)     any  taking  by  the  Company of a record of the holders of any class of
securities  for  the purpose of determining the holders thereof who are entitled
to  receive  any  dividend or other distribution, or any right to subscribe for,
purchase  or  otherwise  acquire  any  shares of stock of any class or any other
securities  or  property,  or  to  receive  any  other  right,  or
(ii)     any  capital  reorganization  of  the  Company, any reclassification or
recapitalization  of the capital stock of the Company or any sale of the Company
(whether by sale of stock, merger, consolidation or sale of all or substantially
all  the  assets  of  the  Company  or  otherwise),  or
(iii)     any voluntary or involuntary dissolution, liquidation or winding-up of
the  Company,
then  and  in each such event the Company will mail or cause to be mailed to the
Holder  a notice specifying (A) the date on which any such record is to be taken
for  the purpose of such dividend, distribution or right, and stating the amount
and character of such dividend, distribution or right, and (B) the date on which
any  such  reorganization,  reclassification,  recapitalization,  transfer,
consolidation,  merger, dissolution, liquidation or winding-up is to take place,
and the time, if any is to be fixed, as of which the holders of record of Common
Stock  (or Other Securities) will be entitled to exchange their shares of Common
Stock (or Other Securities) for securities or other property deliverable on such
reorganization,  reclassification,  recapitalization,  transfer,  consolidation,
merger,  dissolution,  liquidation or winding-up.  Such notice will be mailed at
least ten (10) Business Days prior to the date specified in such notice on which
any  such  action is to be taken.  For purposes of this Warrant, the term "Other
Securities"  shall  mean  stock  or other securities of the Company or any other
entity  (corporate  or  otherwise)  (i)  which  the  Holder at any time shall be
entitled to receive, or shall have received, on the exercise of this Warrant, in
lieu  of  or  in  addition  to  Common Stock, or (ii) which at any time shall be
issuable  or  shall have been issued in exchange for or in replacement of Common
Stock  or  such  other stock or securities pursuant to the terms hereof; and the
term  "Business Day" shall mean any day other than Saturday, Sunday or other day
in which commercial money center banks in New York City, New York are closed for
business.

(d)     De Minimis Adjustments.  No adjustment in the number of shares of Common
     Stock  issuable  hereunder  shall  be required unless such adjustment would
require  an  increase  or decrease of at least one-tenth of one percent (.1%) in
the  number  of  shares  of  Common  Stock  purchasable upon an exercise of each
Warrant; provided, however, that any adjustments which by reason of this Section
2.1(d)  are  not  required  to  be  made shall be carried forward and taken into
account  in  any  subsequent  adjustment.  All calculations shall be made to the
nearest  one  one-thousandth  (1/1,000)  of  a  share.
2.2.          Officers'  Statement  as  to  Adjustments.  Whenever the number of
Warrant  Shares  or  other  stock or property issuable upon the exercise of this
Warrant  or  the  Exercise Price shall be adjusted as provided in Section 2.1(a)
and Section 2.1(b) hereof, respectively, the Company shall forthwith (i) file at
     each office designated for the exercise of this Warrant a statement, signed
by  the Chairman of the Board, the President, or any Vice President or Treasurer
of  the  Company,  and  (ii)  provide written notice, sent by mail, first class,
postage  prepaid,  to the record Holder of this Warrant at its address appearing
on  the  stock  register,  in  each  case showing in reasonable detail the facts
requiring  such  adjustment  and  the computation by which such adjustments were
made.
2.3.          Fractional  Interest.  The  Company may, but shall not be required
to,  issue  fractional  shares  of Common Stock on the exercise of Warrants.  If
more  than  one Warrant shall be presented for exercise in full at the same time
by  the  same  Holder,  the number of full shares of Common Stock which shall be
issuable  upon  such  exercise  thereof  shall  be  computed on the basis of the
aggregate  number  of  shares  of  Common  Stock  acquirable  on exercise of the
Warrants so presented.  If any fraction of a share of Common Stock would, except
for  the  provisions  of  this  Section  2.3  be issuable on the exercise of any
Warrant (or specified portion thereof), the Company may, in lieu thereof, pay an
amount in cash calculated by it to be equal to the then current market value per
share  of  Common Stock (as determined by the Board of Directors)  multiplied by
such fraction computed to the nearest whole cent; provided, however, that in the
event  the  Company  is unable or is not permitted under applicable law or under
any  applicable  financing  agreements  to  pay such amount in cash, the Company
shall  issue  fractional shares rounded to the nearest one one-hundredth (1/100)
of  a  share.
2.4.          Adjustment by Board of Directors.  If any event occurs as to which
     the  provisions  of  Section 2.1 are not strictly applicable or if strictly
applicable  would not fairly protect the rights of the Holder of this Warrant in
accordance with the essential intent and principles of such provisions, then the
Board  of  Directors  shall  make  an  adjustment  in  the  application  of such
provisions,  in  accordance  with such essential intent and principles, so as to
protect  such rights as aforesaid, but in no event shall any adjustment have the
effect  of increasing the Exercise Price as otherwise determined pursuant to any
of  the  provisions of Section 2.1 except in the case of a combination of shares
of  a  type  contemplated  in  Section  2.1(a) and then in no event to an amount
larger  than  the  Exercise  Price  as  adjusted  pursuant  to  Section  2.1(b).
3.     Do  not  Remove.

3.1.          Exchange of Warrant.  At the option of the Holder, the Warrant may
     be  exchanged  at  such office, and upon payment of the charges hereinafter
provided.  Whenever  the  Warrant  is  so  surrendered for exchange, the Company
shall  execute  and  deliver  the Warrant that the Holder making the exchange is
entitled  to  receive.
3.2.          Company's  Obligations.  A Warrant issued upon any registration of
transfer  or  exchange  of  the  Warrant  shall  be the valid obligations of the
Company,  evidencing  the  same  obligations,  and entitled to the same benefits
under this Warrant, as the Warrant surrendered for such registration of transfer
or  exchange.
3.3.          Evidence  of Transfer or Assignment.  This Warrant, if surrendered
for  registration  of transfer or exchange shall (if so required by the Company)
be  duly endorsed, or be accompanied by a written instrument of transfer in form
attached  hereto  as  Exhibit  B,  duly  executed  by the Holder thereof or such
Holder's  attorney  duly  authorized  in  writing.
3.4.          Delivery  of  Stock  Certificates  on  Exercise.  As  soon  as
practicable  after  the  exercise  of  this  Warrant and payment of the Exercise
Price,  and  in any event within ten (10) Business Days thereafter, the Company,
at  its  expense,  will  cause  to be issued in the name of and delivered to the
holder  hereof  a  certificate  or certificates for the number of fully paid and
non-assessable shares or other securities or property to which such holder shall
be  entitled  upon such exercise, plus, in lieu of any fractional share to which
such  holder  would  otherwise  be  entitled,  cash  in  an amount determined in
accordance  with  Section  2.3  hereof.  The  Company  agrees that the shares so
purchased  shall be deemed to be issued to the holder hereof as the record owner
of  such  shares  as  of the close of business on the date on which this Warrant
shall  have  been  surrendered  and  payment  made for such shares as aforesaid.
3.5.          No  Charges.  No service charge shall be made for any registration
of  transfer  or  exchange  of  the  Warrant.
4.     Do  not  Remove.

4.1.          No Voting Rights.  Prior to the exercise of the Warrant, no Holder
     of  this Warrant, as such, shall be entitled to any rights of a stockholder
of the Company, including, without limitation, the right to vote, to consent, to
exercise any preemptive right, to receive any notice of meetings of stockholders
for  the  election of directors of the Company or any other matter or to receive
any  notice  of  any  proceedings  of the Company, except as may be specifically
provided  for  herein.
4.2.          Right  of Action and Remedies.  All rights of action in respect of
this  Warrant  are  vested  in  the Holder of the Warrant, and any Holder of the
Warrant or the Holder of any other Warrant, may, in such Holder's own behalf and
     for  such Holder's own benefit, enforce, and may institute and maintain any
suit, action or proceeding against the Company suitable to enforce, or otherwise
in  respect of, such Holder's right to exercise, exchange or tender for purchase
such  Holder's  Warrant  in  the manner provided herein.  The Company stipulates
that  the  remedies  at  law  of  the holder of this Warrant in the event of any
default by the Company in the performance of or compliance with any of the terms
of  this  Warrant  are  not  and  will not be adequate, and that the same may be
specifically  enforced.
5.     Do  not  Remove.

5.1.          Surrender  of  Warrant.  A  Warrant  surrendered  for  exercise or
redemption  shall,  if  surrendered to the Company shall be promptly canceled by
the Company and shall not be reissued by the Company.  The Company shall destroy
     such  each  canceled  Warrant.
5.2.          Mutilated,  Destroyed,  Lost  and  Stolen  Warrants.
(a)     If  (i)  a  mutilated  Warrant is surrendered to the Company or (ii) the
Company  receives  evidence  to  its reasonable satisfaction of the destruction,
loss  or  theft  of  the  Warrant,  and  there  is delivered to the Company such
security or indemnity as may be required by it to save it harmless, then, in the
     absence  of  notice to the Company that such Warrant has been acquired by a
bona  fide purchaser, the Company shall execute and deliver, in exchange for any
such mutilated Warrant or in lieu of any such destroyed, lost or stolen Warrant,
a  new  Warrant of like tenor and for a like aggregate number of Warrant Shares.
(b)     Upon the issuance of any new Warrant under this Section 5.2, the Company
may  require  the  payment  of  a  sum  sufficient  to  cover  any  tax or other
governmental  charge  that may be imposed in relation thereto and other expenses
(including the reasonable fees and expenses of the Company and of counsel to the
Company)  in  connection  therewith.
(c)     A  new  Warrant  executed  and delivered pursuant to this Section 5.2 in
lieu  of  any  destroyed,  lost  or  stolen Warrant shall constitute an original
contractual  obligation  of  the  Company, whether or not the destroyed, lost or
stolen Warrant shall be at any time enforceable by anyone, and shall be entitled
to  the  benefits  of  this Warrant equally and proportionately with any and all
other  Warrants  duly  executed  and  delivered  hereunder.
(d)     The  provisions of this Section 5.2 are exclusive and shall preclude (to
the  extent lawful) all other rights or remedies with respect to the replacement
of  mutilated,  destroyed,  lost  or  stolen  Warrants.
5.3.          Notices.  (a)  Except as otherwise provided in Section 5.3(b), any
notice,  demand  or  delivery  authorized  by this Warrant shall be sufficiently
given  or  made  when mailed if sent by first-class mail, postage prepaid, or by
facsimile,  addressed  to  any Holder of the Warrant at such Holder's address or
facsimile  number  shown  on  the  register of the Company and to the Company as
follows:
If  to  the  Company:

ABC-NACO  INC.
2001  Butterfield  Road
Suite  502
Downers  Grove,  Illinois  60515
Attention:  Secretary

or such other address as shall have been furnished to the party giving or making
such  notice,  demand  or  delivery.
(a)     Hidden  text  do  not  remove
(b)     Any  notice  required  to be given by the Company to the Holder shall be
made by mailing by registered mail, return receipt requested, or by facsimile to
the  Holders at their respective addresses shown on the register of the Company.
Any  notice  that  is mailed or sent via facsimile in the manner herein provided
shall  be  conclusively  presumed  to  have  been  duly  given  when  mailed  or
transmitted,  whether  or  not  the  Holder  receives  the  notice.
5.4.          Persons  Benefiting.  This Warrant shall be binding upon and inure
to  the  benefit  of the Company, and its respective successors and assigns, and
the  Holder,  from  time  to  time,  of the Warrant.  Nothing in this Warrant is
intended  or  shall  be  construed  to  confer  upon  any Person, other than the
Company,  and  the  Holder of the Warrant any right, remedy or claim under or by
reason  of  this  Warrant  or  any  part  hereof.
5.5.          Counterparts.  This  Warrant  may  be  executed  in  any number of
counterparts,  each  of  which  shall  be  deemed  an original, but all of which
together  constitute  one  and  the  same  instrument.
5.6.          Headings.  The  descriptive  headings  of  the several Sections of
this  Warrant  are  inserted for convenience and shall not control or affect the
meaning  or  construction  of  any  of  the  provisions  hereof.
5.7.          Amendments.  The  Company  shall  not,  without  the prior written
consent  of  the  Holder of the Warrant, by supplemental agreement or otherwise,
make  any  changes,  modifications  or  amendments  to  this  Warrant.
5.8.          Applicable  Law.  THIS  WARRANT  AND  ALL RIGHTS ARISING HEREUNDER
SHALL  BE  GOVERNED BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS
AND  INSTRUMENTS  EXECUTED  AND  TO  BE  PERFORMED  ENTIRELY  IN  SUCH  STATE.
5.9.          Waiver of Jury Trial.  EACH PARTY TO THIS WARRANT, AND EACH HOLDER
BY  ACCEPTANCE  OF  THE  WARRANT, HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO
TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS WARRANT
OR  THE  TRANSACTIONS  CONTEMPLATED  HEREBY.

<PAGE>

This  Warrant shall not be valid for any purpose until it shall have been signed
by  the  Company.
Dated:  June  __,  2001

     ABC-NACO  INC.

     By:
     Name:
Title:

<PAGE>
ACCEPTED  AS  OF  THE  DATE  HEREOF:
     HOLDER

_______________________________

<PAGE>
                                                                       Exhibit B
                                                                       ---------

                                                                       Exhibit A
                                                                       ---------

                  [To be signed only upon exercise of Warrant]
                           EXERCISE SUBSCRIPTION FORM
To:     ABC-NACO  INC.
     2001  Butterfield  Road
     Suite  502
     Downers  Grove,  Illinois  60515
     Attn:  Secretary
     The  undersigned,  the  holder  of  the  within Warrant, hereby irrevocably
elects  to  exercise  the purchase right represented by such Warrant for, and to
purchase thereunder, ______ shares of Common Stock of _____________ and herewith
makes  payment  of  $_____ therefor, and requests that the certificates for such
shares be issued in the name of, and be delivered to ____________, whose address
is  _____________.
Dated:  _____________

By

     Address:

<PAGE>
                  [To be signed only upon transfer of Warrant]
                         FORM OF ASSIGNMENT AND TRANSFER
     FOR  VALUE  RECEIVED,  the  undersigned hereby sells, assigns and transfers
unto  ___________  the  right  represented by the within Warrant to purchase the
______  shares  of  the Common Stock of ____________________ to which the within
Warrant  relates,  and appoints _____________ attorney to transfer said right on
the  books  of  _____________________  with  full  power  of substitution in the
premises.
Dated:  _____________

     By

     Address:

<PAGE>

     Exhibit C
     ---------
748927.1.01  08/10/01  5:58  PM

                         [NET ISSUE EXERCISE OF WARRANT]
                           FORM OF NET ISSUE EXERCISE
To:     ABC-NACO  INC.
     2001  Butterfield  Road
     Suite  502
     Downers  Grove,  Illinois  60515
     Attn:  Secretary
     The undersigned, the holder of the attached Warrant number W ______, hereby
irrevocably  elects  to  exercise the purchase right represented by such Warrant
pursuant  to  Section  1.4  (Net  Issue Exercise) thereof, and requests that the
certificates  for  such  shares  be  issued  in the name of, and be delivered to
____________________________,  whose  address  is _____________________________.
Dated:  _____________________     ___________________________________
     By:  ________________________________
     Address:
     ____________________________________
     ____________________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]