Exhibit 10(b)
                                                                       

                    THE BLACK & DECKER 1986 STOCK OPTION PLAN


         The  proper  execution  of  the  duties  and  responsibilities  of  the
executive  and other key  employees  of The Black & Decker  Corporation  and its
subsidiaries  is a vital  factor in the  continued  growth  and  success  of the
Corporation.  Toward this end, it is necessary  to attract and retain  effective
and capable  employees to assume  positions which  contribute  materially to the
successful  operation  of the business of the  Corporation.  It will benefit the
Corporation,  therefore,  to bind the interests of these persons more closely to
its own  interests  by  offering  them an  attractive  opportunity  to acquire a
proprietary  interest in the business  enterprise and thereby  provide them with
added incentive to remain in its employ and to increase the  prosperity,  growth
and  earnings  of the  Corporation.  This stock  option  plan will  serve  these
purposes.


                                  ARTICLE 1:00

                                   Definitions

         The  following  terms  wherever  used herein  shall have the  following
meanings respectively:

1:01              The term "Corporation" shall mean The Black & Decker
                  Corporation.

1:02              The term "Code" shall mean the Internal  Revenue Code of 1986,
                  as amended, and any regulation thereto.

1:03              The term  "Incentive  Stock  Option"  shall  mean  any  option
                  granted  pursuant  to  the  Plan  clearly   designated  as  an
                  Incentive Stock Option and which satisfies the requirements of
                  Code Section 422(b).

1:04              The term  "Plan"  shall  mean The  Black & Decker  1986  Stock
                  Option  Plan as  approved  and  recommended  by the  Board  of
                  Directors   on  October   17,  1985  and  as  adopted  by  the
                  shareholders  of the  Corporation  on January 27, 1986, as the
                  same may be further amended from time to time.

1:05              The term "Board of Directors" shall mean the Board of
                  Directors of the Corporation.

1:06              The term "Committee" shall mean a committee to be
                  appointed by the Board of Directors to consist of two or
                  more of those members of the Board of Directors who are
                  Non-Employee Directors within the meaning of Rule 16b-3
                  promulgated under the Exchange Act and are outside
                  directors within the meaning of the Section 162(m)
                  Regulations, as each may be amended from time to time.



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1:07              The term "Exchange Act" shall mean the Securities
                  Exchange Act of 1934, as amended.

1:08              The term  "Nonqualified  Stock  Option"  shall  mean an option
                  granted under the Plan that is not an Incentive Stock Option.

1:09              The  term  "Section   162(m)   Regulations"   shall  mean  the
                  regulations adopted pursuant to Section 162(m) of the Code.


                                  ARTICLE 2:00

                           Effective Date of the Plan

2:01              The Plan shall become effective as of January 27, 1986.


                                  ARTICLE 3:00

                                 Administration

3:01              The Plan shall be administered by the Committee.

3:02              The Committee shall establish, from time to time and at
                  any time, subject to the limitations of the Plan as
                  hereinafter set forth, such rules and regulations and
                  amendments and supplements thereto, as it deems necessary
                  to comply with applicable law and regulation and for the
                  proper administration of the Plan. A majority of the
                  members of the Committee shall constitute a quorum. The
                  vote of a majority of a quorum shall constitute action by
                  the Committee.

3:03              The Committee shall from time to time submit to the Board
                  of Directors for its approval the names of those
                  executives and key managerial personnel who, in its
                  opinion, should receive options, and shall recommend the
                  numbers of shares on which options should be granted to
                  each such person and the nature of the options to be
                  granted.

3:04              The  options  shall be  granted by the  Corporation  and shall
                  become  effective  only after  prior  approval of the Board of
                  Directors,  and  upon the  execution  of an  Option  Agreement
                  between the Corporation and the option holder.




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                                  ARTICLE 4:00

                            Participation in the Plan

4:01              Participation in the Plan shall be limited to such
                  executives and other key managerial personnel of the
                  Corporation and its subsidiaries who are regular, full-
                  time employees of the Corporation, or of any of its
                  subsidiaries, and who from time to time shall be
                  designated by the Committee and approved by the Board of
                  Directors.

4:02              No  member  of the  Board  of  Directors  who is not  also  an
                  employee  shall be eligible  to  participate  in the Plan.  No
                  employee  owning a beneficial  interest in more than 5% of the
                  outstanding  stock of the  Corporation  shall be  eligible  to
                  participate in the Plan.


                                  ARTICLE 5:00

                            Stock Subject to the Plan

5:01              There shall be reserved for the granting of options under
                  the Plan and for issuance and sale pursuant to such
                  options, 1,800,000 shares of the Common Stock of the
                  Corporation. In determining the shares available at any
                  time for granting options, there shall be deducted from
                  the total number of reserved shares, the number of shares
                  with respect to which options have been granted under the
                  Plan which are still outstanding or have been exercised.
                  The shares subject to option shall be made available from
                  the authorized and unissued Common Stock or from treasury
                  shares of the Corporation. If for any reason shares as to
                  which an option has been granted cease to be subject to
                  purchase thereunder, then such shares again shall be
                  available for option under the Plan. However, except as
                  provided in Section 5:03 to prevent dilution, the
                  aggregate number of shares subject to options under the
                  Plan shall not exceed 1,800,000 shares.

5:02              Proceeds  of the  purchase  of  optioned  shares by any option
                  holder shall be used for the general business  purposes of the
                  Corporation.

5:03              In the event of reorganization, recapitalization, stock
                  split, stock dividend, combination of shares, merger,
                  consolidation, acquisition of property or stock, or any
                  change in the capital structure of the Corporation, the
                  Committee shall make such adjustment as may be
                  appropriate in the number and kind of shares reserved for
                  purchase by executives or key managerial employees, in
                  the number, kind and price of shares covered by options
                  granted but not then exercised, and in the number of


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                  stock  appreciation  rights, if any, and in the number of cash
                  appreciation  rights,  if any,  related  to shares  covered by
                  options granted but not then exercised.


                                  ARTICLE 6:00

                         Terms and Conditions of Options

6:01              Each option granted pursuant to the terms of the Plan shall be
                  evidenced by an Option Agreement in such form as the Committee
                  from time to time may determine.

6:02              The option price per share shall be equal to one hundred
                  percent (100%) of the fair market value of a share of the
                  Common Stock of the Corporation on the date on which the
                  option is granted. The fair market value shall be the
                  closing price per share of the Common Stock of the
                  Corporation as finally reported in the New York Stock
                  Exchange Composite Transactions for the New York Stock
                  Exchange on the date on which the option is granted, or
                  if shares of the Common Stock of the Corporation are not
                  sold on such date, the closing price per share of the
                  Common Stock of the Corporation as finally reported in
                  the New York Stock Exchange Composite Transactions for
                  the New York Stock Exchange for the most recent prior
                  date on which the Common Stock of the Corporation was
                  sold.

6:03              Each option, subject to the other limitations herein provided,
                  may  extend  for a period of up to ten years  from the date on
                  which  it is  granted.  The  term  of  each  option  shall  be
                  determined  by the  Committee  at the  time  of  grant  of the
                  option.

6:04              Unless otherwise provided by the Board of Directors upon
                  the recommendation of the Committee, the number of shares
                  subject to each option shall be divided into four
                  installments of twenty-five percent each. The first
                  installment shall be exercisable twelve months after the
                  date the option was granted, and each succeeding
                  installment shall be exercisable twelve months after the
                  date the immediately preceding installment became
                  exercisable. If the holder of an option does not purchase
                  the full number of shares which he or she at any time has
                  become entitled to purchase, the option holder may
                  purchase all or any part of those shares at any
                  subsequent time during the term of the option.

6:05              Options shall be  non-transferable  and non-assignable  except
                  that valid option rights may be  transferred  by  testamentary
                  instrument or by the laws of descent.



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6:06              Upon  voluntary  or  involuntary   termination  of  an  option
                  holder's  employment,  his  or  her  option,  and  all  rights
                  thereunder,   shall  be   terminated   except  to  the  extent
                  previously exercised, and except as provided in Sections 6:07,
                  6:08 and 6:09.

6:07              In the event an option holder (i) ceases to be a key
                  employee of the Corporation due to involuntary
                  termination, or (ii) takes a leave of absence from the
                  Corporation or any of its subsidiaries for personal
                  reasons or by entry into the armed forces of the United
                  States, or any of the departments or agencies of the
                  United States government, or (iii) terminates employment
                  by reason of illness, disability or other special
                  circumstance, the Committee shall consider his or her
                  case and shall, subject to the approval of the Board of
                  Directors, take such action with respect to the related
                  Option Agreement as it may deem appropriate under the
                  circumstances, including accelerating the time previously
                  granted options may be exercised and extending the time
                  following the option holder's termination of employment
                  during which the option holder is entitled to purchase
                  shares subject to such options, provided that in no event
                  may any option be exercised after the expiration of the
                  term of the option.

6:08              If an option holder dies during the term of his or her
                  option without having fully exercised the option, the
                  executor or administrator of his or her estate or the
                  person who inherits the right to exercise the option by
                  bequest or inheritance shall have the right within three
                  years of the option holder's death to purchase the number
                  of shares which the deceased option holder was entitled
                  to purchase at the date of death after which the option
                  shall lapse, provided that in no event may any option be
                  exercised after the expiration of the term of the option.

6:09              If an option holder's employment is terminated without
                  having fully exercised the option, and (i) the option
                  holder is 62 years of age or older, or (ii) the option
                  holder has been employed by the Corporation or any of its
                  subsidiaries or affiliates at least 10 years and the
                  option holder's age plus years of such employment total
                  not less than 55 years, then such option holder shall
                  have the right within three years of the option holder's
                  termination of employment to purchase the number of
                  shares which the option holder was entitled to purchase
                  at the date of termination, after which the option shall
                  lapse, provided that in no event may any option be
                  exercised after the expiration of the term of the option.

6:10              The granting of an option to purchase shares pursuant to
                  the Plan shall not constitute or be evidence of any
                  agreement or understanding, express or implied, on the


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                  part of the Corporation or any of its subsidiaries, to
                  employ the option holder for any specified period.

6:11              The aggregate fair market value (as of the date an
                  Incentive Stock Option is granted) of stock, with respect
                  to which Incentive Stock Options under this Plan and
                  "incentive stock options" (within the meaning of Code
                  Section 422(b)) under all other plans of the Corporation
                  and its subsidiaries are exercisable for the first time
                  by an option holder during any calendar year, shall not
                  exceed $100,000.


                                  ARTICLE 7:00

                          Methods of Exercise of Option

7:01              The option holder (or other person or persons, if any,
                  entitled to exercise an option hereunder) desiring to
                  exercise an option granted under the Plan as to all or
                  part of the shares covered by the option shall notify the
                  Corporation in writing at its principal office at 701
                  East Joppa Road, Towson, Maryland 21286, to that effect,
                  specifying the number of shares to be purchased and the
                  method of payment therefor, and make payment or provision
                  for payment for the shares of Common Stock so purchased
                  in accordance with this Article 7:00.  Such written
                  notice may be given by means of a facsimile transmission.
                  If a facsimile transmission is used, the option holder
                  should mail the original executed copy of the written
                  notice to the Corporation promptly thereafter.

7:02              An option  holder at any time may elect in  writing to abandon
                  an option with respect to the number of shares as to which the
                  option shall not have been exercised.

7:03              Within 10 days after receipt by the  Corporation of the notice
                  provided in Section  7:01,  payment or  provision  for payment
                  shall be made as follows:

                                    (a) the option  shall be exercised as to the
                           number of shares  specified  in the notice by payment
                           to the  Corporation in United States  currency of the
                           purchase price as provided in the option; or

                                    (b) at the  election  of the option  holder,
                           the  option  may be  exercised  as to the  number  of
                           shares  specified  in the notice by  tendering to the
                           Corporation shares of Common Stock of the Corporation
                           already owned by the option  holder  which,  together
                           with  any cash  tendered  therewith,  shall  equal in
                           value the purchase  price.  The value of the tendered
                           shares  for this  purpose  shall  be the fair  market
                           value (as defined in Section 6:02)


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                           of such  shares on the date the  notice  provided  in
                           Section 7:01 is received by the Corporation,  and the
                           option  holder  shall  deliver  only  that  number of
                           shares which,  together with any cash delivered,  has
                           an  aggregate  value  of not less  than the  purchase
                           price as provided in the option; or

                                    (c) the option  holder shall  deliver to the
                           Corporation   an  exercise   notice   together   with
                           irrevocable  instructions  to  a  broker  to  deliver
                           promptly  to the  Corporation  the  amount of sale or
                           loan proceeds necessary to pay the aggregate purchase
                           price of the shares of Common  Stock as to which such
                           exercise  relates  and to sell the  shares  of Common
                           Stock to be issued  upon  exercise  of the option and
                           deliver  the  cash  proceeds  less   commissions  and
                           brokerage fees to the option holder or to deliver the
                           remaining  shares  of  Common  Stock  to  the  option
                           holder.

                  Notwithstanding the foregoing  provisions,  the Committee,  in
                  processing  any purported  exercise of an option granted under
                  the Plan,  may refuse to  recognize  the  methods of  exercise
                  selected  by the  option  holder  (other  than the  methods of
                  exercise set forth in Sections 7:03(a) and 7:03(b)) if, in the
                  opinion of counsel to the  Corporation,  (i) the option holder
                  is or  within  the six  months  preceding  such  exercise  was
                  subject to reporting  under  Section 16(a) of the Exchange Act
                  and (ii) there is a substantial  likelihood that the method of
                  exercise  selected  by the option  holder  would  subject  the
                  option holder to a substantial risk of liability under Section
                  16  of  the  Exchange  Act.   Notwithstanding   the  foregoing
                  provisions,  no  Incentive  Stock  Option may be  exercised in
                  accordance  with the methods of exercise  set forth in Section
                  7:03(c).

7:04              In addition to the alternative methods of exercise set
                  forth in Section 7:03, holders of Nonqualified Stock
                  Options shall be entitled, at or prior to the time the
                  written notice provided for in Section 7:01 is delivered
                  to the Corporation, to elect to have the Corporation
                  withhold from the shares of Common Stock to be delivered
                  upon exercise of the Nonqualified Stock Option that
                  number of shares of Common Stock (determined based on the
                  fair market value (as defined in Section 6:02) of a share
                  of Common Stock on the date the notice set forth in
                  Section 7:01 is received by the Corporation) necessary to
                  satisfy any withholding taxes attributable to the
                  exercise of the Nonqualified Stock Option.
                  Alternatively, such holder of a Nonqualified Stock Option
                  may elect to deliver previously owned shares of Common
                  Stock upon exercise of the Nonqualified Stock Option to
                  satisfy any withholding taxes attributable to the


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                  exercise of the Nonqualified  Stock Option. The maximum amount
                  that an  option  holder  may elect to have  withheld  from the
                  shares of Common Stock otherwise  deliverable upon exercise or
                  the maximum number of previously owned shares an option holder
                  may deliver shall be based on the maximum  federal,  state and
                  local taxes payable by the option holder.  Notwithstanding the
                  foregoing provisions,  the Committee or the Board of Directors
                  may  include  in the  Option  Agreement  relating  to any such
                  Nonqualified  Stock Option provisions  limiting or eliminating
                  the option holder's  ability to pay his or her withholding tax
                  obligation  with  shares  of  Common  Stock  or,  if  no  such
                  provisions  are  included in the Option  Agreement  but in the
                  opinion  of the  Committee  such  withholding  would  have  an
                  adverse tax or  accounting  effect to the  Corporation,  at or
                  prior  to  exercise  of  the  Nonqualified  Stock  Option  the
                  Committee  may so  limit  or  eliminate  the  option  holder's
                  ability  to pay his or her  withholding  tax  obligation  with
                  shares  of  Common   Stock.   Notwithstanding   the  foregoing
                  provisions,  a holder of a  Nonqualified  Stock Option may not
                  elect any of the methods of satisfying his or her  withholding
                  tax  obligation  in respect of any exercise if, in the opinion
                  of  counsel  to  the  Corporation,   (i)  the  holder  of  the
                  Nonqualified   Stock  Option  is  or  within  the  six  months
                  preceding such exercise was subject to reporting under Section
                  16(a)  of the  Exchange  Act and (ii)  there is a  substantial
                  likelihood  that the election or timing of the election  would
                  subject the holder to a  substantial  risk of liability  under
                  Section 16 of the Exchange Act.

7:05              A holder  of an  option  shall  have  none of the  rights of a
                  stockholder  until the shares covered by the option are issued
                  upon exercise of the option.


                                  ARTICLE 8:00

                            Stock Appreciation Rights

8:01              Stock appreciation rights may be granted concurrently
                  with the grant of stock options at the sole discretion of
                  the Committee. If the Committee does grant stock
                  appreciation rights to an option holder, the number of
                  stock appreciation rights granted to the option holder
                  shall equal the number of shares granted pursuant to the
                  related stock option.

8:02              A stock  appreciation  right  shall  entitle an option  holder
                  subject to the terms and  conditions  of the Plan to surrender
                  to the  Corporation for  cancellation  all or a portion of the
                  related stock option granted pursuant to the Plan, but only to
                  the extent  that such  option is then  exercisable,  and to be
                  paid therefor an amount in cash or


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                  a number of shares of Common  Stock having a fair market value
                  on the date the stock appreciation right is exercised equal to
                  the  increase,  if any, of the fair market value of a share of
                  Common Stock on the date of exercise of the stock appreciation
                  right over the value of a share of Common Stock on the date of
                  grant of the related stock option.

8:03              The Committee in its sole discretion shall determine whether a
                  stock  appreciation right will be paid in cash or in shares of
                  Common Stock.

8:04              Stock appreciation rights may only be exercised prior to
                  the exercise, termination or cancellation of the related
                  stock option.


                                  ARTICLE 9:00

                            Cash Appreciation Rights

9:01              Cash appreciation rights may be granted concurrently with
                  the grant of stock options at the sole discretion of the
                  Committee.  If the Committee does grant cash appreciation
                  rights to an option holder, the number of cash
                  appreciation rights granted to an option holder shall
                  equal the number of shares granted pursuant to the
                  related stock option.

9:02              Cash appreciation rights shall entitle an option holder
                  subject to the terms and conditions of the Plan to
                  receive from the Corporation or the subsidiary employing
                  the option holder, upon exercise of all or a portion of
                  the related stock option granted pursuant to the Plan, or
                  upon the surrender of all or a portion of the related
                  stock option granted in exchange for the exercise of
                  stock appreciation rights, if any, granted to the option
                  holder pursuant to the Plan, a payment in cash equal to
                  the sum of (i) the increase in income taxes, if any,
                  incurred by the option holder as a result of the full or
                  partial exercise of the related stock option or, if
                  appropriate, the related stock appreciation right, and
                  (ii) the increase in income taxes, if any, incurred by
                  the option holder as a result of receipt of this cash
                  payment.

9:03              In no event shall the cash payment for a cash
                  appreciation right exceed the increase, if any, of the
                  fair market value of a share of Common Stock on the date
                  of exercise of the related stock option or, if
                  appropriate, of the related stock appreciation right over
                  the value of a share of Common Stock on the date of grant
                  of the related stock option.



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                                  ARTICLE 10:00

                    Amendments and Discontinuance of the Plan

10:01             The Board of Directors shall have the right at any time
                  and from time to time to amend, modify or discontinue the
                  Plan provided that, except as provided in Section 5:03,
                  no such amendment, modification or discontinuance shall
                  (i) revoke or alter the terms of any valid option, stock
                  appreciation right or cash appreciation right previously
                  granted in accordance with the Plan, (ii) increase the
                  number of shares to be reserved for issuance and sale
                  pursuant to options, (iii) change the price determined
                  pursuant to the provisions of Section 6:02, (iv) change
                  the class of employee to whom options may be granted
                  under the Plan, or (v) provide for options exercisable
                  more than ten years after the date granted.


                                  ARTICLE 11:00

                Plan Subject to Governmental Laws and Regulations

11:01             The Plan, and the grant and the exercise of options,
                  stock appreciation rights and cash appreciation rights
                  shall be subject to all applicable governmental laws and
                  regulations. Any other provision of the Plan to the
                  contrary notwithstanding, the Board of Directors may in
                  its discretion make such changes in the Plan as may be
                  required, in their opinion, to conform the Plan to such
                  laws and regulations.


                                  ARTICLE 12:00

                              Duration of the Plan

12:01             No option  shall be  granted  pursuant  to the Plan  after the
                  close of business on January 26, 1996.


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