Exhibit 10.56
 
                            L. B. FOSTER COMPANY 2005
                            THREE YEAR INCENTIVE PLAN
 
 
I.       PURPOSE
 
     This Plan is designed to further motivate selected corporate officers 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      "Committee" shall mean the Compensation Committee of the Board of
              Directors and any successors thereto.
 
     2.2      "Corporation" shall mean L. B. Foster Company and those subsidiar-
              ies thereof in which L. B. Foster Company owns 100% of the
              outstanding common stock.
 
     2.3      "Fiscal Period" means the 2005, 2006 and 2007 calendar years.
 
     2.4      "Incentive Award" shall mean the payment made to a Participant
              under this Plan, after and/or subject to adjustments under
              this Plan.
 
     2.5      "Incentive Income" shall mean the Corporation's aggregate
              pre-tax income for the Fiscal Period determined in accordance
              with generally accepted accounting principles, but excluding
              income with respect to the Corporation's investments in the
              Dakota, Minnesota & Eastern Railroad, LIFO adjustments or
              other gains, losses, charges or income which the Committee, in
              its sole discretion, determines to be extraordinary.
 
     2.6      "Participant" shall mean an officer of the Corporation who is
              specifically selected by the Committee and who satisfies all
              of the eligibility requirements set forth in Article III hereof.
 
     2.7      "Plan" shall mean the L. B. Foster Company 2005 Three Year
              Incentive  Plan,  which Plan shall be in effect with respect to
              the Fiscal Period.
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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 an elected officer of the Company who has
               been selected to participate in the Plan by the Committee.
 
     3.2       A Participant may not have: (i) been terminated for cause;
               (ii) have resigned (other than due to retirement with the
               Committee's consent) prior to the date Individual Incentive
               Awards are paid; (iii), been terminated for any reason
               whatsoever and have received money from the Corporation in
               connection with said termination; unless the Corporation
               agrees in writing that the employee shall remain a Participant
               in this Plan or (iv) have been primarily employed by Natmaya
               or Fosmart during the Fiscal Period; provided, however, that
               the amount of any Incentive Award for a Participant who ceases
               to be an employee during the Fiscal Period for any reason
               shall be only in an amount determined in the Committee's
               discretion and shall be paid to the Participant within the
               first 75 days of the calendar year following the Participant's
               termination of employment.
 
     3.3        As used herein, "cause" to terminate employment shall exist
                upon (i) the failure of an employee capably to 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
                any of the reasonable directives of the employee's
                superior(s). The Committee, in its sole judgment, shall
                determine whether "cause" to terminate employment exists for
                the purposes of this Plan.
 
IV.      CALCULATION OF INCENTIVE AWARDS
 
     4.1        Calculation of Total Amount Available for Incentive Awards
 
                The total amount available for Incentive Awards shall be
                calculated by first determining the applicable percentage in
                the left hand column of the table below (the "Performance
                PercentagThe Performance Percentage shall be calculated by
                dividing Incentive Income minus $13,168,000 by $10,341,000.
                The total amount available for Incentive Awards shall then be
                calculated by multiplying the percentage in the right hand
                column (the "Payout Percentage") of the table below,
                corresponding to the Performance Percentage, by $1,825.000,
                and then deducting any prior payments made to Participants
                under Section 3.2.
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        ------------------------------ ----------------------------
                 Performance           Payout (as % of $1,825,000)
                 Percentage
        ------------------------------ ----------------------------
 
        ------------------------------ ----------------------------
        Less than 70%                                          -0-
        ------------------------------ ----------------------------
        70%                                                  10.0%
        ------------------------------ ----------------------------
        80%                                                  30.0%
        ------------------------------ ----------------------------
        90%                                                  62.5%
        ------------------------------ ----------------------------
        100%                                                100.0%
        ------------------------------ ----------------------------
        110%                                                112.5%
        ------------------------------ ----------------------------
        120%                                                130.0%
        ------------------------------ ----------------------------
        130%                                                150.0%
        ------------------------------ ----------------------------
        150%                                                200.0%
        ------------------------------ ----------------------------
 
        The calculation of the Payout Percentage shall be adjusted
        proportionately between the levels in the table to reflect the
        Performance Percentage actually achieved. For example, if the
        Performance Percentage was 75%, the corresponding Payout
        Percentage would be 20%.
 
4.2      Calculation of Individual Incentive Awards
 
         Each initial Participant shall be assigned points based upon
         the Participant's position, as follows:
 
                 President/CEO                      4 Points
                 Sr. Vice Presidents                2 Points
                 Vice Presidents, Controller        1 Point
 
         Subsequent Participants, if any, designated by the Committee
         shall have points assigned to them by the Committee, based,
         among such other factors as the Committee may deem
         appropriate, upon the subsequent Participant's position and
         the time during the Fiscal Period that the Participant held
         the position. If an initial Participant or a subsequent
         Participant ceases to be an employee of the Corporation at any
         time during the Fiscal Period and still meets the eligibility
         equirements of III, the points assigned to such Participant
         shall be adjusted downward as the Committee, in its
         discretion, determines to be appropriate.
 
         A Participant's Individual Incentive Award shall be calculated
         by multiplying the total amount available for Incentive Awards
         under Section 4.1 by a fraction, the numerator of which shall
         be the Participant's points and the denominator of which shall
         be the sum of all Participants' points, but subject to the
         limitations in V.
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         Example:
 
           The Corporation earns Incentive Income of 24,000,000.
         Participant Smith is assigned two points and the sum of all
         Participants' points is 17. Participant Smith's Incentive
         Award would be calculated as follows:
 
             a.  Calculate Total Amount Available for Incentive Award
 
                ($24,000,000 - $13,168,000) / $10,341,000 = 105% (Performance
                 Percentage)
 
             b.  106.25 (Payment Percentage) X $1,825,000 = $1,939,062
 
             c.  2/17 X $1,939,062 = $228,034 (Individual Incentive Award)
 
V. LIMITATIONS
 
                  Notwithstanding any provision herein to the contrary, an
         Incentive Award payable to any Participant may not exceed twice the
         Incentive Award that would have been payable to such Participant if the
         Corporation had achieved a Performance Percentage of 100%, all of the
         initial Participants had remained Participants for the full Fiscal
         Period and there were no subsequent Participants. In addition, if the
         sum of all points assigned to Participants is fewer than 19, the
         Incentive Awards payable under this Plan shall be adjusted downward in
         amounts determined by the Committee. Any amounts not paid shall remain
         the Corporation's property.
 
VI.      STOCK IN LIEU OF CASH
 
                  Notwithstanding any other provision of this Plan, the
         Committee (subject to having received any necessary authorization from
         the Corporation's shareholders) may substitute shares of the
         Corporation's Common Stock ("Stock") subject to such restrictions on
         transferability as the Corporation's legal counsel may deem necessary
         or appropriate (such restrictions shall provide for no less than a
         two-year restriction on the voluntary transfer of such stock), in lieu
         of cash in an amount up to 50% of the Individual Incentive Awards that
         would otherwise be payable to such Participants under the Plan. The
         amount of stock to be granted to Participant shall be calculated by the
         Committee determining the fair market value of such restricted stock
         (which may include a discount to the stock's then current trading
         price) and substituting such stock for up to 50% of the cash that
         otherwise would have been payable to a Participant as an Incentive
         Award. Cash which would have been payable to Participant, but for this
         Article V, shall not be distributed and shall remain the property of
         the Corporation.
 
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VI.      PAYMENT OF AWARDS
 
                  Payment of Individual Incentive Awards will be made on or
         before March 15, 2008.
 
VII.     ADMINISTRATION AND INTERPRETATION OF THE PLAN
 
                  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 Corporation's Internal Audit Department will review and
         verify the calculation of Incentive Awards.