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                                                                   Exhibit 10(b)

                               QUIXOTE CORPORATION
                         1991 DIRECTOR STOCK OPTION PLAN
                             AMENDED AUGUST 16, 2000

         1.       PURPOSE

         This Stock Option Plan (the "Plan") is intended as an incentive to
encourage stock ownership by certain Directors of QUIXOTE CORPORATION (the
"Corporation") so that they may acquire or increase their proprietary interest
in the success of the Corporation and to encourage them to continue to render
their services to the Corporation as Directors. It is further intended that
options granted pursuant to this Plan may constitute "incentive stock options"
within the meaning of Section 422A of the Internal Revenue Code, as amended (the
"Code"), if they satisfy the various requirements specified under Code Sec.
422A. Otherwise, options granted pursuant to this Plan shall be "nonqualified
stock options".

         2.       ADMINISTRATION

         The Plan shall be administered by a committee appointed by the Board of
Directors of the Corporation (the "Committee"). The Committee shall consist of
all members of the Corporation's Board of Directors unless the Board adopts a
resolution naming other individuals to serve on the Committee. The Board of
Directors may from time to time remove members from, or add members to, the
Committee. Vacancies on the Committee, howsoever caused, shall be filled by the
Board of Directors. The Committee shall select one of its members as Chairman
and shall hold meetings at such times and places as it may determine. A majority
of the Committee at which a quorum is present, or acts reduced to or approved in
writing by a majority of the members of the Committee, shall be the valid acts
of the Committee. The Committee shall from time to time at its discretion
recommend to the Board of Directors with respect to the Directors who shall be
granted options and the amount of stock to be optioned to each.

         The interpretation and construction by the Committee of any provisions
of the Plan or of any option granted under it shall be final unless otherwise
determined by the Board of Directors. No member of the Board of Directors or the
Committee shall be liable for any action or determination made in good faith
with respect to the Plan or any option granted under it.

         3.       ELIGIBILITY

         The persons who shall be eligible to receive options shall be Directors
of the Corporation as the Board of Directors shall select from time to time from
among those nominated by the Committee, provided however, that only Directors
who are also employees of the Corporation shall be eligible to receive
"incentive stock options" under this Plan. An optionee may hold more than one
option, but only on the terms and subject to the restrictions hereafter set
forth. No person shall be eligible to receive an option for a larger number of
shares of stock than is recommended for him by the Committee, and in no event
shall any optionee in any calendar year receive options under this Plan for
stock with an aggregate fair market value (determined at the time of the grant
of the option) in excess of the limitations set forth in Section 5(b) of the
Plan.

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         4.       STOCK

         The stock subject to options under the Plan shall be shares of the
Corporation's authorized but unissued or reacquired $.01-2/3 par value common
stock, hereafter sometimes called Common Stock. The aggregate number of shares
that may be issued under options shall not exceed 659,445 shares of Common
Stock. The limitations established by each of the preceding sentences shall be
subject to adjustment as provided in Section 5(g) of the Plan.

         In the event that any outstanding option under the Plan for any reason
expires or is terminated, the shares of Common Stock allocable to the
unexercised portion of such option may again be subjected to an option under the
Plan.

         5.       TERMS AND CONDITIONS OF OPTIONS

         Stock options granted under the Plan shall be authorized by the Board
of Directors and shall be evidenced by agreements in such form as the Committee
shall from time to time recommend and the Board of Directors shall from time to
time approve, which agreements shall comply with and be subject to the following
terms and conditions:

                  (a)      OPTIONEE'S AGREEMENT

                  Each optionee shall agree to render to the Corporation his
services as a Director (1) for a period of one year from the date of the option,
or (2) until his death, whichever first occurs, but such agreement shall not
impose upon the Corporation any obligation to retain the optionee in any
capacity for any period; provided, however, the agreement shall permit an
optionee to exercise the option after a "change of control" (as defined at
Section 5(g)) notwithstanding the optionee's failure to have served as a
Director for one year from the date of grant.

                  (b)      NUMBER OF SHARES

                  Each option shall state the number of shares to which it
pertains. Options granted under this Plan may be considered "incentive stock
options" as defined in Code Sec. 422A to the extent that the aggregate fair
market value of stock (determined at the time the option is granted) with
respect to which any such option is exercisable for the first time in a calendar
year is not more than $100,000.

                  (c)      OPTION PRICE

                  Each option shall state the option price, which shall be not
less than 100% of the current market price of the shares of Common Stock of the
Corporation on the business day immediately preceding the date of the granting
of the option; provided, that in the event an optionee owns stock representing
more than ten percent of the voting power or value of the stock of the
Corporation on the date of grant, the option price of an option which is
intended to qualify as an "incentive stock option" shall not be less than 110%
of the current market price of the shares on the date of grant. The current
market price of the Common Stock at any date shall be deemed to be the last
reported sale price determined in the regular way or, in case no such reported
sale takes place on such day, the average of the last reported bid and asked


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prices determined in the regular way, in either case on the principal national
securities exchange on which the Common Stock is admitted to trading or listed,
or if not listed or admitted to trading on any national securities exchange, the
average of highest reported bid and lowest reported asked prices as reported by
NASDAQ or other similar organization if NASDAQ is no longer reporting such
information, or if not so available, the fair market price as determined by the
Board of Directors. Subject to the foregoing, the Board of Directors and the
Committee shall have full authority and discretion in fixing the option price
and be fully protected in doing so.

                  (d)      MEDIUM AND TIME OF PAYMENT

                  The option price is to be paid in full in United States
dollars upon the exercise of the option and may be paid in cash or by check, or
with the approval of the Committee, by the optionee tendering to the Corporation
shares of common stock of the Corporation owned by him and having a fair market
value (determined at the time the Corporation receives written notice of the
optionee's election to exercise the option) equal to the aggregate exercise
price of the options being exercised. With the approval of the Board of
Directors, the optionee may borrow from the Corporation all or any portion of
the funds needed to pay the option price on such terms and conditions as the
Committee deems appropriate, provided that: (1) the interest rate for any such
loan by the Corporation shall not be less than the "applicable federal rate" (as
defined by Code Section 1274(d)(1)(A) in effect on the date of such loan or any
other rate as necessary to avoid the imputation of interest under the Code or
other applicable law, (2) proceeds of the loan are used solely to pay the
exercise price of an option granted pursuant to this Plan, and (3) the optionee
executes a promissory note and such other documents as the Committee deems
appropriate to evidence the optionee's indebtedness to the Corporation.

                  (e)      TERM AND EXERCISE OF OPTIONS

                  Subject to this Section 5(e) and Sections 5(f) and 5(g) of
this Plan, no option shall be exercised either in whole or in part prior to
twelve months from the date it is granted. Subject to the right of cumulation
provided in this Section 5(e), each option granted pursuant to the Plan shall be
exercisable to the extent provided for in the agreement between the Corporation
and each optionee as determined by the Committee in its discretion. The
Committee may provide, however, for the exercise of options after the initial
twelve month period, either as to an increased percentage of shares per year or
as to all remaining shares, if the optionee shall, with the approval of the
Corporation, retire as a Director of the Corporation. To the extent not
exercised, installments shall accumulate and be exercisable, in whole or in
part, in any subsequent period, prior to the expiration of the term described in
the next sentence of this Section 5(e). No option shall be exercisable after the
expiration of ten years from the date it is granted, provided that in the event
the optionee owned stock representing more than ten percent (10%) of the voting
power or value of the stock of the Corporation on the date the option was
granted, any option which is intended to qualify as an "incentive stock option"
must be exercised within five (5) years from the date of grant. During the
optionee's lifetime, the options granted under this Plan may be exercised only
by him.

                  (f)      DEATH OF OPTIONEE AND TRANSFER OF OPTION


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                  If the optionee shall die and shall not have fully exercised
the option, the entire unexercised portion of the option may be exercised within
one year from the date of the optionee's death by the executors or
administrators of the optionee or by any person or persons who shall have
acquired the option directly from the optionee by bequest or inheritance,
subject to the condition that no option shall be exercisable after the
expiration of ten years (five years for an option which is intended to qualify
as an "incentive stock option" to an optionee who owned more than ten percent of
the value or voting power of the stock of the Corporation on the date of grant)
from the date it is granted.

                  No option shall be assignable or transferable by the optionee
otherwise than by will or the laws of descent and distribution.

                  (g)      RECAPITALIZATION

                  Subject to any required action by the stockholders, the number
of shares of Common Stock covered by each outstanding option, and the price per
share thereof in each such option, shall be proportionately adjusted for any
increase or decrease in the number of issued shares of Common Stock of the
Corporation resulting from a subdivision or consolidation of shares or the
payment of a stock dividend (but only on the Common Stock) or any other increase
or decrease in the number of such shares effected without receipt of
consideration by the Corporation.

                  Subject to any required action by the stockholders, if the
Corporation shall be the surviving corporation in any merger or consolidation,
each outstanding option shall pertain to and apply to the securities to which a
holder of the number of shares of Common Stock subject to the option would have
been entitled. A dissolution or liquidation of the Corporation, or a merger or
consolidation in which the Corporation is not the surviving corporation, or a
change in control of the Corporation, as defined, shall cause each optionee to
have the right to exercise his option in whole or in part, notwithstanding the
provisions of Section 5(e) above: (i) immediately prior to such dissolution or
liquidation or merger or consolidation in which the Corporation is not the
surviving corporation, and thereafter; or (ii) after such change of control.

                  "Change of control" of the Corporation shall mean a change in
control of a nature that would be required to be reported in response to Item
6(e) of Schedule 14A of Regulation 14A promulgated under the Securities Exchange
Act of 1934, as amended ("Exchange Act"); provided that, without limitation,
such a change in control shall be deemed to have occurred if (i) any "person"
(as such term is used in Section 13(d) and 14(d) of the Exchange Act) is, or
becomes, the "beneficial owner" (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of securities of the Corporation representing
twenty percent (20%) or more of the combined voting power of the Corporation's
then outstanding securities; or, (2) during any period of two consecutive years,
individuals who at the beginning of such period constitute all members of the
Board of Directors of the Corporation who are not employed by the Corporation
(the "Outside Directors") shall cease for any reason to constitute at least a
majority of the Outside Directors unless the election of each Outside Director,
who was not an Outside Director at the beginning of the period, was approved by
a vote of at least two-thirds (2/3) of the Directors then still in office who
were Directors at the beginning of the period; or,


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(3) there shall be consummated (A) any consolidation or merger of the
Corporation in which the Corporation is not the continuing or surviving
corporation or pursuant to which shares of the Corporation's Common Stock would
be converted into cash, securities or other property, other than a merger of the
Corporation in which the holders of the Corporation's Common Stock immediately
prior to the merger have the same proportionate ownership of common stock of the
surviving corporation immediately after the merger, or (B) any sale, lease,
exchange or other transfer (in one transaction or a series of related
transactions) of all, or substantially all, of the assets of the Corporation or,
(4) the stockholders of the Corporation approve a plan or proposal for the
liquidation or dissolution of the Corporation.

                  To the extent that the foregoing adjustments relate to stock
or securities of the Corporation, such adjustments shall be made by the
Committee, whose determination in that respect shall be final and binding and
conclusive; provided that each option granted pursuant to this Plan which could
qualify as an "incentive stock option" shall not be adjusted in a manner that
causes the option to fail to continue as an "incentive stock option" within the
meaning of Code Section 422A.

                  Except as hereinbefore expressly provided in this Section
5(g), the optionee shall have no rights by reason of any subdivision or
consolidation of shares of stock of any class or the payment of any stock
dividend or any other increase or decrease in the number of shares of stock of
any class or by reason of any change of control, dissolution, liquidation,
merger, or consolidation or spin-off of assets or stock of another corporation,
and any issue of the Corporation of shares of stock of any class, or securities
convertible into shares of stock of any class, shall not affect, and no
adjustment by reason thereof shall be made with respect to, the number or price
of shares of Common Stock subject to the option.

                  The grant of an option pursuant to the Plan shall not affect
in any way the right or power of the Corporation to make adjustments,
reclassifications, reorganizations or changes of its capital or business
structure or to merge, consolidate, dissolve, liquidate, sell, or transfer all
or any part of its business or assets.

                  (h)      RIGHTS AS A STOCKHOLDER

                  An optionee or a transferee of an option shall have no rights
as a stockholder with respect to any shares covered by his option until the date
of the issuance of a stock certificate to him for such shares. No adjustment
shall be made for dividends (ordinary or extraordinary, whether in cash,
securities or other property) or distributions or other rights for which the
record date is prior to the date such stock certificate is issued, except as
provided in Section 5(g) hereof.

                  (i)      MODIFICATION, EXTENSION AND RENEWAL OF OPTIONS

                  Subject to the terms and conditions and within the limitations
of the Plan, the Committee, with the approval of the Board of Directors, may
modify, extend or renew outstanding options granted under the Plan, or accept
the surrender of outstanding options (to the extent not theretofore exercised)
and authorize the granting of new options in substitution therefor (to the
extent not theretofore exercised). The Board of Directors shall not, however,


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modify any outstanding options so as to specify a lower price or accept the
surrender of outstanding options and authorize the granting of new options in
substitution therefor specifying a lower price. Notwithstanding the foregoing
however no modification of an option shall, without the consent of the optionee,
alter or impair any rights or obligations under any option theretofore granted
under the Plan.

                  (j)      INVESTMENT PURPOSE

                  Each option under the Plan shall be granted on the condition
that the stock purchased shall be held for investment purposes, and not with a
view to resale or distribution except that in the event the stock subject to
such option is registered under the Securities Act of 1933, as amended, or in
the event a resale of such stock without such registration would otherwise be
permissible, such condition shall be inoperative if in the opinion of counsel
for the Corporation such condition is not required under the Securities Act of
1933 or any other applicable law, regulation, or rule of any governmental
agency.

                  (k)      OTHER PROVISIONS

                  The option agreements authorized under the Plan shall contain
such other provisions, including, without limitation, restrictions upon the
exercise of the option, as the Committee and the Board of Directors of the
Corporation shall deem advisable.

         6.       TERM OF PLAN

         Options may be granted under the Plan from time to time within a period
of ten years from the date the Plan is adopted, or the date the Plan is approved
by the Stockholders, whichever is earlier.

         7.       INDEMNIFICATION OF COMMITTEE

         In addition to such other rights of indemnification as they may have as
Directors or as members of the Committee, the members of the Committee shall be
indemnified by the Corporation against the reasonable expenses, including
attorneys' fees actually and necessarily incurred in connection with the defense
of any action, suit or proceeding, or in connection with any appeal therein, to
which they or any of them may be a party by reason of any action taken or
failure to act under or in connection with the Plan or any option granted
thereunder, and against all amounts paid by them in settlement thereof (provided
such settlement is approved by independent legal counsel selected by the
Corporation) or paid by them in satisfaction of a judgment except in relation to
matters as to which it shall be adjudged in such action, suit or proceeding that
such Committee member is liable for negligence or misconduct in the performance
of his duties; provided that within sixty (60) days after institution of any
such action, suit or proceeding a Committee member shall in writing offer the
Corporation the opportunity at its own expense, to handle and defend the same.

         8.       AMENDMENT OF THE PLAN

         Upon recommendation of the Committee, the Board of Directors of the
Corporation may, insofar as permitted by law, from time to time, with respect


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to any shares at the time not subject to options, suspend or discontinue the
Plan or revise or amend it in any respect whatsoever except that without
approval of the stockholders, no such revision or amendment shall change the
number of shares subject to the Plan, change the designation of the individuals
eligible to receive options, decrease the price at which options may be granted,
remove the administration of the Plan from the Committee, or extend the period
during which options may be granted.

         The Board of Directors of the Corporation shall, from time to time,
revise, modify, or amend the Plan, in part or in total, without approval of the
stockholders, as may be necessary to satisfy the requirements of the Code such
that certain stock options which are granted under the Plan may qualify as
"incentive stock options" as defined in Code Section 422A and any amendments or
revisions thereof.

         9.       APPLICATION OF FUNDS

         The proceeds received by the Corporation from the sale of Common Stock
pursuant to options will be used for general corporate purposes.

         10.      NO OBLIGATION TO EXERCISE OPTION

         The granting of an option shall impose no obligation upon the optionee
to exercise such option.

Date Plan was adopted by Board of Directors:  August 19, 1991

Date Plan was approved by Stockholders:  November 19, 1991

Date Plan was amended by Board of Directors:  June 25, 1997

Date Plan was amended by Board of Directors:  August 28, 1997

Date amended Plan was approved by Stockholders: November 19, 1997

Date Plan was amended by the Board of Directors: August 21, 1998

Date amended Plan was approved by Stockholders: November 18, 1998

Date Plan was amended by Board of Directors :  September 10, 1999

Date amended Plan was approved by Stockholders:  November 23, 1999

Date Plan was amended by Board of Director:  August 16, 2000


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