Exhibit 10.55
 
                            L. B. FOSTER COMPANY 2006
                     MANAGEMENT INCENTIVE COMPENSATION PLAN
 
 
I.       PURPOSE
 
     This Plan is designed to motivate  employees  to achieve  goals,  to reward
employees who achieve such goals and to improve corporate performance.
 
II.      CERTAIN DEFINITIONS
 
     The terms below shall be defined as follows for the  purposes of this Plan.
The definitions  shall be subject to such adjustments as, from time to time, may
be made, by the Committee.
 
2.1  "Base  Compensation"  shall mean the total base salary,  rounded to the
     nearest  whole dollar,  actually  paid to a  Participant  during the Fiscal
     Year, excluding payment of overtime,  incentive compensation,  commissions,
     reimbursement of expenses,  severance, car allowances or any other payments
     not deemed part of a Participant's base salary; provided, however, that the
     Participant's  contributions to the Corporation's Voluntary Investment Plan
     shall be included in Base Compensation.  Base Compensation for Participants
     who die, retire or are terminated shall include only such compensation paid
     to such during the fiscal year with  respect to the period  prior to death,
     retirement or termination.
 
2.2  "Committee"  shall  mean the  Compensation  Committee  of the Board of
     Directors and any successors thereto.
 
2.3  "Corporation"  shall mean L. B. Foster Company and those  subsidiaries
     thereof in which L.B.  Foster Company owns 100% of the  outstanding  common
     stock.
 
2.4  "Department/Individual  Goals" are those  goals  approved by the Chief
     Executive  Officer and utilized to establish  incentive  awards pursuant to
     Section 4.3
 
2.5  "Fiscal Year" means the 2006 calendar year.
 
2.6  "Incentive  Award" shall mean the payment made to a Participant  under
     this Plan, after and/or subject to adjustments under this Plan.
 
2.7  "Incentive  Income" shall mean the pre-tax income (after,  inter alia,
     deductions for benefits payable under the annual sales incentive and profit
     sharing plans) for the Corporation or, as applicable, for an Operating Unit
     for the Fiscal Year, but determined in accordance  with  generally-accepted
     accounting principles, excluding (i) benefits payable under this Plan; (ii)
     dividends and related  interest with respect to Dakota  Minnesota & Eastern
     Railroad  Corporation  preferred  stock to the extent not  included  in the
     Corporation's  Planned Incentive Income;  and (iii) any portion of gains or
     losses  arising from  transactions  not in the ordinary  course of business
     which the Committee, in its sole discretion, determines to exclude.
 
2.8  "Operating  Unit" shall mean the following units or divisions which are
     reported in the Company's  internal  financial  statements:  CXT Rail,  CXT
     Buildings,  Foster Coated Pipe, Threaded Products, Rail Products (excluding
     CXT Rail), Piling and Fabricated  Products,  subject to such adjustments as
     may be made by the Chief Executive Officer.
 
2.9  "Participant"  shall mean a salaried  employee of the  Corporation who
     satisfies  all of the  eligibility  requirements  set forth in Article  III
     hereof.
 
2.10 "Plan"  shall  mean the L. B.  Foster  Company  Management  Incentive
     Compensation Plan, which Plan shall be in effect with respect to the Fiscal
     Year.
 
2.11 "Planned Incentive Income" shall mean, as applicable, Incentive Income
     for  the   Corporation   and  each   Operating  Unit  as  approved  by  the
     Corporation's Board of Directors.
 
2.12 "Target  Award"  shall  mean  the  product  of a  Participant's  Base
     Compensation multiplied by said Participant's Target Percentage.
 
2.13 "Target   Percentage"  shall  mean  those  percentages   assigned  to
     Participants pursuant to Section 4.1 hereof.
 
III.     ELIGIBILITY
 
     Unless changed or amended by the  Committee,  an employee shall be deemed a
Participant in the Plan only if all of the following requirements are satisfied:
 
3.1  A Participant  must be a salaried  employee (but  excluding an employee
     whose sole title is Chairman of the Board) of the  Corporation,  at a grade
     level  set  forth  in  Section  4.1 or as  otherwise  approved  both by the
     Corporation's  Chairman of the Board and Chief  Executive  Officer,  for at
     least six (6) months of the entire fiscal year, unless deceased or retired.
 
3.2  A Participant may not  have:  (i) been  terminated  for  cause;  (ii)
     voluntarily have resigned (other than due to retirement with the Company's
     consent) prior to the date  Individual  Incentive  Awards are paid;  (iii),
     unless the Corporation  agrees in writing that the employee shall remain a
     Participant in this Plan,  been  terminated  for any reason  whatsoever and
     have  received  money  from  the   Corporation  in  connection   with  said
     termination, or (iv) have been primarily employed by Natmaya or Fosmart
     during the Fiscal Year.
 
3.3  A Participant's  Target  Percentage shall be based on the Participant's
     Grade Level on July 1, 2006.  Those Participants who have retired or died
     prior to July 1, 2006 shall have a Target Percentage based upon their grade
     level at death or retirement.
 
3.4  A Participant  may not,  unless  agreed  to in  writing  by the  Chief
     Executive Officer,  be a participant in any other incentive plan maintained
     by the Corporation, other than the Corporation's stock option plans.
 
3.5  As used herein,  "cause" to terminate  employment  shall exist upon (i)
     the failure of an employee  to  substantially  perform his duties with the
     Corporation; (ii) the  engaging by an employee in any  criminal  act or in
     other conduct  injurious  to the  Corporation;  or (iii) the failure of an
     employee to follow the reasonable directives of the employee's superior(s).
 
IV.      CALCULATION OF INCENTIVE AWARDS
 
4.1  Eligibility  and Target  Percentages.  Each  Participant  shall have a
     Target  Percentage  based  upon the  grade  level of such  Participant,  as
     follows:
 
2006 MIP ELIGIBILITY AND TARGET PERCENTAGES
------------------------- --------------------
MANAGEMENT GRADE LEVEL    TARGET PERCENTAGE
------------------------- --------------------
       GRADE X28                 5%
------------------------- --------------------
       GRADE X29                 10%
------------------------- --------------------
       GRADE X30                 15%
------------------------- --------------------
       GRADE X31                 20%
------------------------- --------------------
       GRADE X32                 20%
------------------------- --------------------
       GRADE X33                 20%
------------------------- --------------------
       GRADE O40                 20%
------------------------- --------------------
       GRADE O41                 20%
------------------------- --------------------
       GRADE O42                 30%
------------------------- --------------------
       GRADE O43                 35%
------------------------- --------------------
       GRADE O50                 45%
------------------------- --------------------
 
Other employees selected, in writing, by the Corporation's Chairman of the
Board and Chief Executive Officer may also be made Participants in the Plan on
such terms as may be approved by the Chairman of the Board and Chief Executive
Officer.
 
 
4.2  Thresholds.  The  following  table  shows  how  Incentive  Awards  are
     calculated, prior to adjustment and to limitations under this Plan:
 
-------------------------------- ------------------------------------
Actual  Performance,  based on   Unadjusted  Incentive  Award,
Percentage of Planned Incentive  as Percentage of Lower of Target
Income Achieved                  Award or Target Award at Incentive
                                 Planned Income
-------------------------------- ------------------------------------
Outstanding                      Corporate           Operating Unit
-------------------------------- ------------------- ----------------
160% and over                    200%                200%
-------------------------------- ------------------- ----------------
155%                             190%                190%
-------------------------------- ------------------- ----------------
150%                             180%                180%
-------------------------------- ------------------- ----------------
145%                             170%                170%
-------------------------------- ------------------- ----------------
140%                             160%                160%
-------------------------------- ------------------- ----------------
135%                             150%                150%
-------------------------------- ------------------- ----------------
130%                             140%                140%
-------------------------------- ------------------- ----------------
125%                             130%                130%
-------------------------------- ------------------- ----------------
Exceeding
-------------------------------- ------------------- ----------------
120%                             120%                120%
-------------------------------- ------------------- ----------------
115%                             115%                115%
-------------------------------- ------------------- ----------------
110%                             110%                110%
-------------------------------- ------------------- ----------------
105%                             105%                105%
-------------------------------- ------------------- ----------------
Target
-------------------------------- ------------------- ----------------
100%                             100%                100%
-------------------------------- ------------------- ----------------
Threshold
-------------------------------- ------------------- ----------------
90%                              80%                 80%
-------------------------------- ------------------- ----------------
80%                              60%                 60%
-------------------------------- ------------------- ----------------
70%                              40%
-------------------------------- ------------------- ----------------
 
 
The calculation of "Unadjusted Incentive Award" in the second and third columns
of the above table shall be adjusted proportionately to reflect "Percentage of
Income Achieved" between the levels in the table. For example, if Corporate
achieved 73% of "Planned Incentive Income", the percentage in the second column
would be deemed to be 46%; if Corporate achieved 137% of "Planned Incentive
Income" the percentage in the second column would be deemed to be 154%.
 
4.3  Allocated Target Awards. For purposes of calculating  Incentive Awards,
     a  Participant's  Target  Award  shall  be  allocated  as  follows,   which
     allocations shall be approved by the Chief Executive Officer.
-------------------- --------------- ---------------- -------------------------
                     Corporate       Operating Unit   Department/Individual
                                                      Goals
-------------------- --------------- ---------------- -------------------------
CEO                  100%
-------------------- --------------- ---------------- -------------------------
Operating Unit
Heads                20%             60%              20%
-------------------- --------------- ---------------- -------------------------
Corporate            80%                              20%
-------------------- --------------- ---------------- -------------------------
General  Managers &
other  Participants
with a grade  level
X30 & above          20%             60%              20%
-------------------- --------------- ---------------- -------------------------
Other Participants                   80%              20%
-------------------- --------------- ---------------- -------------------------
 
4.4  Limitations  and Adjustments to Awards.  The portion of a Participant`s
     Target Award allocated to  "Department/Individual  Goals" shall be adjusted
     to the same extent that the  Participant's  Target  Award(s)  allocated  to
     Corporate or Operating  Units are adjusted under Sections 4.2 and 4.4 based
     upon the primary  allocation  of the  Participant's  Target  Award  between
     Corporate and Operating Units(s).
 
     All  Incentive  Awards  attributable  to an Operating  Unit or to Corporate
     (including  Incentive Awards attributable to  Department/Individual  Goals)
     may not exceed 16% of the applicable Operating Unit's or Corporate's actual
     Incentive  Income when  Corporate or the  Operating  Unit,  as  applicable,
     attains 100% or less of its Planned Incentive Income. Such Incentive Awards
     allocated to an Operating  Unit or to  Corporate,  if  necessary,  shall be
     proportionately  adjusted  downward  so  that  the  sum of  such  resulting
     Incentive  Awards  does not exceed  16% of the  applicable  Corporate's  or
     Operating Unit's actual Incentive Income.
 
     If Incentive Income exceeds 100% of Planned Incentive Income, the Incentive
     Award shall be  adjusted  by (i)  proportionately  adjusting  downward,  if
     necessary,  the  Incentive  Awards  allocated  to  the  Operating  Unit  or
     Corporate so that the sum of the resulting  Incentive  Awards  allocated to
     the  Operating  Unit or  Corporate  does not exceed  16% of the  applicable
     Corporate or Operating Unit's Planned  Incentive  Income;  and then (ii) by
     multiplying  the  Incentive  Award  that  would  have been paid at  Planned
     Incentive  Income by the applicable  percentage in the right hand column of
     the table in Section 4.2.
 
     Incentive  awards  attributable to an Operating Unit are not adjusted under
     this Section 4.4 based upon overall Corporate Incentive Income, but instead
     are adjusted based on such Operating Unit's Incentive Income.
 
     The Chief Executive  Officer may, in his  discretion,  reduce any Incentive
     Awards  payable  under this Plan by up to 25% and the total  amount of such
     reduction(s)  shall be  added to the  amount  available  for  discretionary
     awards under Article V.
 
4.5  Department/Individual  Goals.  Determinations  on the achieve- ment of
     Department/Individual  Goals  shall be  approved  by the Chief Ex-ecutive
     Officer.
 
Example 1:
 
General  Manager  Smith works for CXT  Buildings  and has a Target Award of
$18,000 (i.e.  Base  Compensation  of $90,000 and a 20% Target  Percentage).  In
2006, the Corporation earns $7,000,000 of Incentive Income, which is 100% of its
Planned  Incentive Income and CXT Buildings earns $2,000,000 of Incentive Income
which is 125% of its Planned Incentive Income ($1, 600,000).  The CEO determines
that Mr. Smith has achieved 1/2 of his Department/Individual  goals. Mr. Smith's
Incentive  Award (ignoring the 16% limits and the CEO's ability to adjust upward
or downward), would be calculated as follows:
 
a.   $ 3,600 of Mr.  Smith's  Target Award (20% X $18,000) would be allocated
     to Corporate. Assuming that Corporate total awards do not exceed 16% of the
     Corporation's  Incentive  Income and since  Corporate  achieved 100% of its
     Planned  Incentive  Income,  Mr.  Smith  would  receive  $ 3,600  from  the
     Corporate allocation. See Sec. 4.2.
 
b.   $ 10,800 of the Target  Award (or 60% of $18,000)  would be allocated to
     the Operating Unit. Since CXT Buildings earned 125% of Planned Income,  Mr.
     Smith  would  receive  $14,040  ($10,800  X 130%) from the  Operating  Unit
     allocation.
 
c.   $3,600 (or 20% of $18,000)  was  allocated  to  individual/departmental
     Goals.  Since Mr.  Smith's  Target  Award  was  primarily  allocated  to an
     Operating  Unit, Mr. Smith would have been eligible to receive a maximum of
     $4,680  ($3,600 X 130%)  from the  achievement  of  individual/departmental
     goals.  Since Mr. Smith achieved 50% of his goals,  he would receive $2,340
     from the individual/departmental goals allocation.
 
d.   Mr. Smith's total Incentive Award would be $19,980.
 
Example 2:
 
Same facts as  Example  1,  except  that:  (i) the total of all  unadjusted
Incentive  Awards  (without  reference to 16% limitations and with CXT Buildings
Incentive Income being 125% of its Planned Income of $1,600,000) based on Target
Awards  allocated to CXT Buildings would have been $450,000;  and (ii) the total
Incentive  Awards payable from Corporate,  without  adjustment,  would have been
$600,000. Mr. Smith's Incentive Award would be calculated as follows:
 
a.   Mr.  Smith's  Corporate  allocation  would be unaffected by the 16% caps
     since  the  maximum  Corporate  allocation  would be 16% X  $7,000,000,  or
     $1,120,000,  which  exceeds the $600,000 of Incentive  Awards  payable from
     Corporate;. Mr. Smith would receive $3,600 from his Corporate allocation.
 
b.   If CXT Buildings had achieved its Planned Incentive Income of $1,600,000
     its maximum  aggregate  Incentive  Awards could not have exceeded  $256,000
     ($1,600,000  X 16%).  Since  CXT  Buildings  achieved  125% of its  Planned
     Incentive Income, the total Incentive Awards would be limited to $256,000 X
     130%, see Sec. 4.2, or $332,800.  Accordingly,  Mr. Smith would receive 74%
     ($332,800 / $450,000) of the unadjusted  $16,380 ($14,040 + $2,340, see (b)
     and (c) of Example 1), or $12,121 from the Operating Unit allocation.
 
c.   Mr. Smith's total Incentive Award would be $15,721.
 
Example 3:
 
Same facts as Example 2, except that General Manager Smith works for Fabricated
Products which has a planned loss for 2006:
 
a.   Mr. Smith's  Corporate  allocation  would be  unaffected  and he would
     receive $3,600 from the Corporate allocation.
 
b.   Fabricated  Product's  maximum  aggregate  Incentive  Awards at Planned
     Incentive  Income  are  negative  and the only  award  Mr.  Smith  would be
     eligible to receive, other than Mr. Smith's corporate allocation,  would be
     a discretionary award under Article V below.
 
c.   Mr. Smith's  total   Incentive   Award  would  be  $3,600;   plus  any
     discretionary award under Article V.
 
The examples are for illustrative purposes only and do not contain the Company's
or any Operating Unit's actual Planned Incentive Income.
 
V.       DISCRETIONARY AWARDS
 
     An amount shall be available for  discretionary  awards equal to the sum of
(i)  $100,000;  (ii) the  amount  which  would  have  been paid  except  that an
individual was not a Participant due to such individual's failure to satisfy the
requirements of Sections 3.2(i) or 3.2(ii); (iii) the amount of any reduction in
Incentive Awards made by the Chief Executive Officer under Section 4.4; and (iv)
any amount,  otherwise available for payment, that was not paid due to a failure
to  achieve  Department/Individual  goals  pursuant  to  Sections  4.3 and  4.4.
Discretionary awards shall be determined by the Chief Executive Officer,  except
that any  discretionary  awards to officers,  elected by the Board of Directors,
must be approved by the Committee.  Amounts  available under this Article V, but
not paid, shall remain the Corporation's property.
 
VI.      PAYMENT OF AWARDS
 
     Payment of Individual  Incentive Awards will be made on or before the later
of March 15, 2007 or the  completion of the audit for the  Corporation's  Fiscal
Year.
 
VII.     ADMINISTRATION AND INTERPRETATION OF THE PLAN
 
     The Chief  Executive  Officer,  if there is a dispute,  shall determine the
Operating  Unit(s) that will  receive  credit for any sale and/or how credit for
any sale is to be  allocated  among any  Operating  Units.  The Chief  Executive
Officer's  decisions  are  subject  to  final  review  by the  Committee  if the
Committee requests such review.
 
     A  determination  by  the  Committee  in  carrying  out,  administering  or
interpreting  this Plan shall be final and binding for all purposes and upon all
interested persons and their heirs, successors and personal representatives.
 
     The Committee may, from time to time, amend the Plan;.
 
     The Chief Executive Officer may delegate any of his duties herein.
 
     The  Corporation's  Internal  Audit  Department  will review and verify the
calculation of Incentive Awards.