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<div style="font-family:Times New Roman;">
 <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p align="center" style="border:none;margin:0pt 0pt 12.0pt;padding:0pt;text-align:center;"><b><font size="2" face="Times New Roman">As filed with the Securities and Exchange Commission on September 29, 2006</font></b></p> <p align="right" style="border:none;margin:0pt 0pt 12.0pt;padding:0pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Registrant Statement No. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b><a name="scotch"></a></p> </div>

<p align="center" style="margin:12.0pt 0pt .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">SECURITIES
AND EXCHANGE COMMISSION</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Washington,
D.C. 20549</font></b></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;text-align:center;"><hr size="1" width="160" noshade color="black" align="center" style="width:120.0pt;"></div>

<p align="center" style="margin:12.0pt 0pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">FORM S-8</font></b></p>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">REGISTRATION
STATEMENT</font></b></p>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">UNDER</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">THE
SECURITIES ACT OF 1933</font></b></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;text-align:center;"><hr size="1" width="160" noshade color="black" align="center" style="width:120.0pt;"></div>

<p align="center" style="margin:12.0pt 0pt .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">QUIXOTE
CORPORATION</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact name of registrant as specified in its
charter)</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.64%;">
  <p align="center" style="font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;"><!-- SET mrlNoTableShading --><b>Delaware</b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.64%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">36-2675371</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.64%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State of
  incorporation)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.64%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(IRS Employer</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.64%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.64%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Identification
  No.)</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.64%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.64%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.64%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Thirty-Five
  East Wacker Drive, Chicago, Illinois</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.64%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">60601</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.64%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of
  principal executive offices)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.64%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Zip Code)</font></p>
  </td>
 </tr>
</table>

</div>

<p align="center" style="margin:12.0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">QUIXOTE
CORPORATION INCENTIVE SAVINGS PLAN</font></b></p>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(as
amended and restated January 1, 2006)</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Full title of the Plan)</font></p>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Joan R.
Riley</font></b></p>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Vice
President, Secretary and General Counsel</font></b></p>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Quixote
Corporation</font></b></p>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Thirty-Five
East Wacker Drive</font></b></p>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Chicago,
Illinois&#160; 60601</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Name and address of agent for service)</font></p>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(312)
467-6755</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Telephone number, including area code, of agent for service)</font></p>

<div align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><hr size="1" width="160" noshade color="black" align="center" style="width:120.0pt;"></div>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Calculation of Registration Fee</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="24%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:24.34%;">
  <p align="left" style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><!-- SET mrlNoTableShading -->Title&nbsp;of&nbsp;Securities&nbsp;to&nbsp;be&nbsp;Registered</p>
  </td>
  <td width="1%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:1.2%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="17%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:17.64%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Amount&nbsp;Being&nbsp;Registered<br>
  (1)(3)</font></b></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:1.2%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="17%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:17.64%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Proposed&nbsp;Maximum<br>
  Offering&nbsp;Price&nbsp;Per<br>
  Share(2)</font></b></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:1.2%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="17%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:17.64%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Proposed&nbsp;Maximum<br>
  Aggregate&nbsp;Offering<br>
  Price(2)</font></b></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:1.2%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="17%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:17.64%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Amount&nbsp;of<br>
  Registration&nbsp;Fee</font></b></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.34%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="24%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:24.34%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Common Stock $.01-</font><font size="1" style="font-size:7.0pt;position:relative;top:-3.0pt;">2</font>/<font size="1" style="font-size:7.0pt;position:relative;top:3.0pt;">3</font>&nbsp;Par Value(3)</p>
  </td>
  <td width="1%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:1.2%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="17%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:17.64%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">300,000 Shares</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:1.2%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0pt 0pt 0pt 0pt;width:1.0%;">
  <p align="left" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$</font></p>
  </td>
  <td width="16%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:16.64%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.03</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:1.2%;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0pt 0pt 0pt 0pt;width:1.0%;">
  <p align="left" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$</font></p>
  </td>
  <td width="16%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:16.64%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5,109,000</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:1.2%;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0pt 0pt 0pt 0pt;width:1.0%;">
  <p align="left" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$</font></p>
  </td>
  <td width="16%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:16.64%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">546.66</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.34%;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="182" style="border:none;"></td>
  <td width="9" style="border:none;"></td>
  <td width="136" style="border:none;"></td>
  <td width="9" style="border:none;"></td>
  <td width="7" style="border:none;"></td>
  <td width="124" style="border:none;"></td>
  <td width="9" style="border:none;"></td>
  <td width="7" style="border:none;"></td>
  <td width="124" style="border:none;"></td>
  <td width="9" style="border:none;"></td>
  <td width="7" style="border:none;"></td>
  <td width="124" style="border:none;"></td>
  <td width="2" style="border:none;"></td>
 </tr>
</table>

<div style="margin:12.0pt 0pt .0001pt;page-break-after:avoid;"><hr size="1" width="160" noshade color="black" align="left" style="width:120.0pt;"></div>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt 22.8pt;text-indent:-22.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>This Registration
Statement shall also cover any additional shares of Common Stock which may
become issuable under the Quixote Corporation Incentive Savings Plan by reason
of any stock dividend, stock split, recapitalization or other similar
transaction effected without receipt of consideration which results in an
increase in the number of outstanding shares of Common Stock of Quixote Corporation.</p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt 22.8pt;text-indent:-22.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Estimated solely
for purposes of calculating the registration fee under Rule 457(h), based upon
the average of the high and low prices as reported by the NASDAQ Global Market<font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">SM </font>System on September 26, 2006.</p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt 22.8pt;text-indent:-22.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Includes the
preferred stock rights associated with the Common Stock which will be issued
for no additional consideration.</p>

<p style="margin:12.0pt 0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Registrant is
registering its contribution from time to time of 300,000 shares of its Common
Stock to the Quixote Corporation Incentive Savings Plan as amended and restated
January 1, 2006 (the &#147;Plan&#148;), and the subsequent sale or other distribution of
these 300,000 shares to employees or other persons pursuant to the Plan. These
shares constitute the Registrant&#146;s matching contribution for employees pursuant
to the terms of the Plan.</font></p>


 <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p style="border:none;margin:0pt 0pt .0001pt;padding:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p> </div>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<br clear="all" style="page-break-before:always;">

<div style="font-family:Times New Roman;">
 <p style="color:#9C412A;font-size:10.0pt;font-weight:bold;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" color="#9c412a" face="Times New Roman" style="font-size:10.0pt;">Subject to Completion, Dated </font></b><font size="1" style="font-size:9.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>, 2006</p>

<p align="left" style="background:white;color:#9C412A;font-weight:bold;margin:6.0pt 0pt;text-align:left;"><b><font size="2" color="#9c412a" face="Times New Roman" style="font-size:10.0pt;">The
information in this prospectus is not complete and may be changed. The selling
stockholders may not sell these securities until the registration statement
filed with the Securities and Exchange Commission is effective.&#160; This prospectus is not an offer to sell these
securities and it is not soliciting an offer to buy these securities in any
state where the offer of sale is not permitted.</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">PROSPECTUS<a name="Prospectus_060408"></a></font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">QUIXOTE
CORPORATION<a name="QuixoteCorporation_060410"></a></font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">300,000 Shares<a name="a300000Shares_060410"></a></font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">of </font>Common Stock<a name="OfCommonStock_060410"></a></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The shares of common stock described in this
prospectus are being offered for sale from time to time by the selling
stockholders who acquired these shares by distribution from the Quixote Corporation
Incentive Savings Plan as amended and restated effective January 1, 2006 (the
&#147;Plan&#148;) or by the Plan, acting at the request of the selling stockholders
pursuant to the terms of the Plan.&#160; We
will not receive any proceeds from any sale of common stock offered pursuant to
this prospectus.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The selling stockholders (or the Plan, at their
request) may offer and sell the shares of common stock at various times and in
various types of transactions, including sales in the open market, sales in
negotiated transactions and sales by a combination of these methods.&#160;&#160; Shares may be sold at the market price of
the common stock at the time of a sale, at prices relating to the market price
over a period of time, or at prices negotiated with the buyers of shares.&#160; The shares may be sold through underwriters
or dealers which the selling stockholders may select.&#160; If underwriters or dealers are used to sell
the securities, we will name them and describe their compensation in a prospectus
supplement.&#160; For a detailed description
of the various methods by which the selling stockholders may offer and sell the
common stock described in this prospectus see the discussions entitled &#147;Plan of
Distribution&#148; on page 19 of this prospectus.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The selling stockholders are responsible for all
brokerage fees and commissions and similar sale-related expenses.&#160; We are paying expenses relating to the
registration of the shares with the Securities and Exchange Commission.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our common stock is traded on The NASDAQ Global Market
under the symbol &#147;QUIX.&#148;&#160; On September
26, 2006, the closing price of Quixote common stock was $17.12.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Investing in Quixote Corporation&#146;s common stock
involves risks.&#160; See the sections
entitled &#147;Disclosure Regarding Forward-Looking Statements&#148; on page 3 and &#147;Risk
Factors&#148; beginning on page 4 of this prospectus to read about factors to
consider in connection with purchasing these shares.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Neither the Securities and Exchange Commission nor
any state securities commission has approved or disapproved these securities,
or determined if this prospectus is truthful or complete.&#160; Any representations to the contrary is a
criminal offense.</font></b></p>


 <p style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The date of this prospectus is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2006</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<div style="font-family:Times New Roman;">
 <p style="margin:0pt 0pt .0001pt;text-align:center;"></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">TABLE OF
CONTENTS</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="92%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:92.28%;">
  <p style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:1.44%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="6%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:6.3%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Page</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="92%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:92.28%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:6.3%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="92%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:92.28%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;"><a href="#DisclosureRegardingForwardlooking_053901">DISCLOSURE
  REGARDING FORWARD-LOOKING STATEMENTS</a></font></b></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.3%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#DisclosureRegardingForwardlooking_053901">3</a></font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="92%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:92.28%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.3%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="92%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:92.28%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;"><a href="#AboutThisProspectus_053905">ABOUT THIS PROSPECTUS</a></font></b></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.3%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#AboutThisProspectus_053905">3</a></font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="92%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:92.28%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.3%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="92%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:92.28%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;"><a href="#RiskFactors_053908">RISK
  FACTORS</a></font></b></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.3%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#RiskFactors_053908">4</a></font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="92%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:92.28%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.3%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="92%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:92.28%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;"><a href="#QuixoteCorporation_054537">QUIXOTE CORPORATION</a></font></b></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.3%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#QuixoteCorporation_054537">10</a></font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="92%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:92.28%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.3%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="92%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:92.28%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;"><a href="#UseOfProceeds_054733">USE
  OF PROCEEDS</a></font></b></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.3%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#UseOfProceeds_054733">12</a></font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="92%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:92.28%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.3%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="92%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:92.28%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;"><a href="#SellingStockholders_054736">SELLING STOCKHOLDERS</a></font></b></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.3%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#SellingStockholders_054736">12</a></font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="92%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:92.28%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.3%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="92%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:92.28%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;"><a href="#DescriptionOfCapitalStock_054742">DESCRIPTION OF CAPITAL
  STOCK</a></font></b></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.3%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#DescriptionOfCapitalStock_054742">12</a></font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="92%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:92.28%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.3%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="92%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:92.28%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;"><a href="#PlanOfDistribution_055158">PLAN OF DISTRIBUTION</a></font></b></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.3%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#PlanOfDistribution_055158">19</a></font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="92%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:92.28%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.3%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="92%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:92.28%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;"><a href="#LegalMatters_055233">LEGAL
  MATTERS</a></font></b></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.3%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#LegalMatters_055233">20</a></font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="92%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:92.28%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.3%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="92%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:92.28%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;"><a href="#WhereYouCanFindMoreInformation_055235">WHERE YOU CAN
  FIND MORE INFORMATION</a></font></b></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.3%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#WhereYouCanFindMoreInformation_055235">20</a></font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="92%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:92.28%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.3%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="92%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:92.28%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;"><a href="#IncorporationByReference_055239">INCORPORATION BY
  REFERENCE</a></font></b></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.3%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#IncorporationByReference_055239">21</a></font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<div>
 <p style="margin:0pt 0pt .0001pt;text-align:center;"></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DISCLOSURE
REGARDING FORWARD-LOOKING STATEMENTS</font></b><a name="DisclosureRegardingForwardlooking_053901"></a></h1>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our disclosure and analysis in this prospectus and any prospectus
supplement, including information incorporated by reference, may include
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, or the Securities Act, Section 21E of the Securities
Exchange Act of 1934, as amended, or the Exchange Act, and the Private
Securities Litigation Reform Act of 1995, that are subject to risks and
uncertainties. You can identify these statements by forward-looking words such
as &#147;may,&#148; &#147;will,&#148; &#147;expect,&#148; &#147;anticipate,&#148; &#147;believe,&#148; &#147;estimate,&#148; &#147;plan&#148; and &#147;continue&#148;
or similar words.&#160; We have based these
statements on our current expectations about future events.&#160; We make no undertaking to update these
statements or to revise them to reflect subsequent events.&#160; Although we believe that our expectations
reflected in or suggested by our forward-looking statements are reasonable, our
actual results may differ materially from what we currently expect.&#160; Important factors which could cause our
actual results to differ materially from the forward-looking statements in this
prospectus or in the documents that we incorporate by reference into this prospectus
include those described under &#147;Risk Factors&#148; and the following:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>uncertainties related to continued federal, state
and municipal funding for highways and transportation safety, and risks related
to reductions in government expenditures;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the successful completion, integration and rationalization
of our acquisitions;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the ability to generate sufficient future cash
flows to be in compliance with our financing agreements;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the introduction and acceptance of our products
and services;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>unfavorable changes in product sales mix;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>seasonality, along with the extent and timing of
the award of large contracts;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the cyclical nature of our governmental markets;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>competitive and pricing pressures;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>increasing raw material and freight costs;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>excess manufacturing capacity;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the possible impairment of goodwill, intangible
assets and other long-lived assets;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>uncertainties relating to managing and expanding
international markets;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>weather conditions and natural disasters;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>acts of war;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>general economic conditions including rising
interest rates;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>other risks and uncertainties as may be detailed
from time to time in our public announcements and Securities and Exchange
Commission filings.</p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You
should carefully read this prospectus, supplements to this prospectus and the
documents that we incorporate by reference into this prospectus completely and
with the understanding that our actual future results may be materially
different from what we expect.&#160; All
forward-looking statements attributable to us are expressly qualified by these
cautionary statements.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ABOUT
THIS PROSPECTUS</font></b><a name="AboutThisProspectus_053905"></a></h1>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This
prospectus is part of a registration statement that we filed with the
Securities and Exchange Commission utilizing a &#147;shelf registration&#148;
process.&#160; Under this shelf registration
process, the selling stockholders may, from time to time, offer and sell up to
300,000 shares of our common stock described in this prospectus.&#160; The information in this prospectus or any
supplement may not contain all of the information that may be important to
you.&#160; You should read the entire prospectus
or any supplement, as well as the documents incorporated by reference in the
prospectus or any supplement, before making an investment decision.</font></p>

<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You should rely only on the information contained in this prospectus or
any supplement.&#160; We have not authorized
any other person to provide you with different information.&#160; If anyone provides you with different or
inconsistent information, you should not rely on it.&#160; We are not making an offer to sell these
shares in any jurisdiction where the offer or sale is not permitted.&#160; You should not assume that the information in
this prospectus or any supplement is accurate as of any date other than the
date on the front cover of such documents.&#160;
Our business, financial condition, results of operations and prospects
may have changed since that date.</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">3</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">When used in this prospectus and any prospectus supplement, the terms &#147;Quixote,&#148;
&#147;we,&#148; &#147;our,&#148; &#147;us&#148; and &#147;Company&#148; refer to Quixote Corporation and its
subsidiaries.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">RISK
FACTORS</font></b><a name="RiskFactors_053908"></a></h1>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Before you invest
in our shares, you should be aware that the occurrence of any of the events
described in this Risk Factors section and elsewhere in this prospectus or in a
supplement to this prospectus could have a material adverse effect on our
business, financial condition and results of operations.&#160; You should carefully consider these risk
factors and the specific risks set forth under the caption &#147;Risk Factors&#148; in
any supplement to this prospectus, together with all of the other information
included in this prospectus or in a supplement to this prospectus and in
documents we incorporate by reference before you decide to purchase our
shares.&#160; This prospectus contains
forward-looking statements that involve risks and uncertainties.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Investors are
cautioned that all forward-looking statements involve risks and uncertainties,
including those detailed in the Company&#146;s public filings with the SEC, news
releases and other communications, which speak only as of the dates of those
filings or communications.&#160; There can be
no assurance that actual results will not differ materially from the Company&#146;s
expectations.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">A decrease or delay in federal
government funding of transportation safety and highway construction and
maintenance may cause our revenues and profits to decrease.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We depend
substantially on federal, state and municipal funding for transportation
safety, highway construction and maintenance and other related infrastructure
projects. Any decrease or delay in government funding for transportation
safety, highway construction and maintenance and other related infrastructure
projects could cause our revenues and profits to decrease.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Federal government
funding for infrastructure projects is usually accomplished through highway
authorization bills, which establish funding over a multi-year period. The most
recent highway authorization bill, SAFETEA-LU, became law in August 2005, after
the prior law which authorized federal spending through September 30, 2003 was
extended at then current funding levels eleven times over almost two years.&#160; Until the new law was passed, the
transportation safety allotment in federal and state budgets was uncertain, and
we believe this uncertainty negatively impacted spending on the products and
services offered by the Company.&#160; The
delayed passage of the new highway funding bill adversely affected our
financial performance in fiscal year 2004 and fiscal year 2005.&#160; Given the long sales cycle typical in our
business, we did not begin to realize the benefit of SAFETEA-LU&#146;s passage
until late fiscal 2006.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Even after federal
legislation is enacted, funding appropriations may be revised in future
congressional sessions, and federal funding for infrastructure projects may be
reduced in the future.&#160; In addition,
Congress could pass legislation in future sessions which would divert highway
funds for other national purposes or would restrict funding for infrastructure
projects unless states comply with certain federal policies.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Constraints on state and local
government budgets may adversely affect our financial performance.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Many states reduce
spending on highways due to budget constraints given the national and local
economies.&#160; Such budgetary constraints
adversely affect the ability of states to fund transportation, highway and
infrastructure projects, and therefore reduce the demand for our products.&#160; Municipalities also suffer from budget
constraints that can reduce transportation safety spending.&#160; Reduced state and municipal spending due to
budget restraints adversely affected our performance in fiscal year 2004 and
fiscal year 2005.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Downturns in the U.S. economy or
the transportation safety and highway construction industries may adversely
affect our revenues and operating results.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">General economic
downturns, including downturns in the transportation safety and highway
construction industries, could result in a material decrease in our revenues
and operating results.&#160; We believe that
the economic downturn and the related political uncertainty during fiscal years
2002 through 2005 negatively affected our expected revenue growth. Sales of our
products are sensitive to foreign, domestic and regional economies in general,</font></p>


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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and in particular,
changes in government infrastructure spending.&#160;
Many of our costs are fixed and cannot be quickly reduced in response to
decreased demand.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Sales of our products often are
subject to government testing, inspection and approval.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We frequently
supply products and services pursuant to agreements with general contractors
that have entered into contracts with federal, state or municipal government
agencies.&#160; In some cases we enter into
contracts directly with government agencies.&#160;
At times these contracts require engineered systems which combine our
Inform and Intersection Control products, sometimes in conjunction with our
Protect and Direct products, into complex systems which may themselves be
incorporated into other systems.&#160; The
successful completion of our obligations under these contracts is often subject
to satisfactory testing, inspection and approval of such products and services
by a representative of the contracting agency.&#160;
Although we endeavor to satisfy the requirements of each of these
contracts to which we are a party, no assurance can be given that the necessary
approval of our products and services will be granted on a timely basis or at
all, and that we will receive any payments due to us.&#160; In some cases, we may be dependent on others
to complete these projects which may also delay payments to us.&#160; Any failure to obtain these approvals and
payments may have a material adverse effect on our business and future
financial performance.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Past and
future acquisitions involve risks that could adversely affect our future
financial results</font></b>.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have completed
seven acquisitions since 1997 and may acquire additional businesses in the
future. We may be unable to achieve the benefits expected to be realized from
our acquisitions. In addition, we may incur additional costs and our management&#146;s
attention may be diverted because of unforeseen expenses, difficulties,
complications, delays and other risks inherent in acquiring businesses,
including the following:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>we may have difficulty integrating
the acquired businesses as planned, which may include integration of systems of
internal controls over financial reporting and other financial and
administrative functions;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>acquisitions may divert management&#146;s
attention from our existing operations;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>we may have difficulty in competing
successfully for available acquisition candidates, completing future
acquisitions or accurately estimating the financial effect of any businesses we
acquire;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>we may have delays in realizing the
benefits of our strategies for an acquired business;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>we may not be able to retain key
employees necessary to continue the operations of an acquired business;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>acquisition costs may be met with cash
or debt, increasing the risk that we will be unable to satisfy current
financial obligations;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>we may acquire businesses that are
less profitable or have lower profit margins than our historical profit
margins; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>acquired
companies may have unknown liabilities that could require us to spend
significant amounts of additional capital.</p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In May and December, 2003,
we made two acquisitions in the Intersection Control segment.&#160; Integration of these businesses, combined
with reduced demand for our products adversely affected our financial
performance in fiscal 2004, 2005 and 2006.&#160;
Given substandard performance of our Intersection Control segment, we
recorded asset impairment charges in that segment of $22,735,000 for the year
ended June 30, 2004 and $13,374,000 for the year ended June 30, 2006.&#160; Confronted with the continued
underperformance of the Intersection Control business, on April 25, 2006, our
Board of Directors approved a restructuring plan for our Intersection Control
business that includes further rationalizing of operations and divesting
certain non-core product lines.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Management&#146;s
estimates and assumptions affect reported amounts of expenses.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Goodwill and other indefinite-lived intangible assets are tested for
impairment at least annually, and the results of such testing may adversely
affect our financial results.&#160; We use a
third party appraisal firm to assist our determination of fair values, but the
impairment review is highly judgmental and involves the use of significant
estimates and assumptions.&#160; These
estimates and assumptions have a significant impact on the amount of any
impairment charge recorded, and actual results may differ significantly from
the estimates and assumptions used.</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We recognize deferred tax assets and liabilities for the expected future
tax consequences of events which are included in the financial statements or
tax returns.&#160; In assessing the
realizability of the deferred tax assets, management makes certain assumptions
about whether the deferred tax assets will be realized.&#160; We expect the deferred tax assets currently
recorded to be fully realizable, however there can be no assurance that an
increased valuation allowance would not need to be recorded in the future.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Our
business could be adversely affected by reduced levels of cash, whether from
operations or from bank borrowings.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our principal sources of funds have historically been cash flows from
operations and borrowings from banks.&#160;
Our financial performance in fiscal year 2004 adversely affected the
amount of cash flow from operations and required us to modify our bank credit
agreement in order to avoid the occurrence of events of defaults relating to
certain covenants and financial ratios.&#160;
Amendments to the credit agreement in fiscal 2005 required us to modify
certain covenants, pledge our assets as collateral, reduce the maximum amount
of availability under the revolving credit facility to $38 million, and limit
our dividend payments.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Although we are currently in compliance with the covenants of the credit
agreement, our ability to remain in compliance in the future will depend on our
future performance and may be affected by events beyond our control.&#160; There can be no assurance that we will
generate sufficient earnings and cash flow to remain in compliance with the credit
agreement, or that we will be able to obtain future amendments to the credit
agreement to avoid a default.&#160; In the
event of a default, there can be no assurance that we could negotiate a new
credit agreement or that we could obtain a new credit agreement with
satisfactory terms and conditions within a reasonable time period.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">If we
are unable to protect our proprietary technology from infringement or if our
technology infringes technology owned by others, then the demand for our
products may decrease or we may be forced to modify our products which could
increase our costs.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We hold numerous
patents covering technology and applications related to many of our products
and systems, and numerous trademarks and trade names registered with the U.S.
Patent and Trademark Office and in foreign countries. Our existing or future
patents or trademarks may not adequately protect us against infringements, and
pending patent or trademark applications may not result in issued patents or
trademarks. Our patents, registered trademarks and patent applications may not
be upheld if challenged, and competitors may develop similar or superior
methods or products outside the protection of our patents. This could increase
competition for our products and materially decrease our revenues. If our
products are deemed to infringe upon the patents or proprietary rights of
others, we could be required to modify the design of our products, change the
name of our products or obtain a license for the use of some of the
technologies used in our products. We may be unable to do any of the foregoing
in a timely manner, upon acceptable terms and conditions, or at all, and the
failure to do so could cause us to incur additional costs or lose expected
revenue.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Our
success depends on our management and other employees.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The single largest
factor in our ability to profitably execute our work is our ability to attract,
develop and maintain qualified personnel.&#160;
Our success in attracting qualified people is dependent on the resources
available in individual geographic areas and the impact on the labor supply due
to general economic conditions as well as our ability to provide a competitive
compensation package and work environment.&#160;
Leslie J. Jezuit, our Chairman and President, and Daniel P. Gorey, our
Chief Financial Officer, are of significant importance to our business and
operations and neither has an employment agreement with us. The loss of their
services may adversely affect our business. In addition, our ability to attract
and retain qualified engineers, skilled manufacturing and marketing personnel
and other professionals, either through direct hiring or acquisition of other
businesses employing such professionals, will also be an important factor in
determining our future success.</font></p>


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<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Difficulties
in managing and expanding in international markets could affect future growth
in these markets.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In fiscal year
2006, international sales represented approximately $21,821,000 or 14%, of our
total sales and we believe international markets could be an important source
of growth. We plan to continue to increase our presence in these markets. In
connection with any increase in international sales efforts, we need to hire,
train and retain qualified personnel in countries where language, cultural or
regulatory barriers may exist. Moreover, funding and government requirements
vary by country with respect to transportation safety.&#160; In a number of countries there are no
governmental requirements or funding for transportation safety and we must
educate officials and demonstrate the need for and benefits of our products. In
addition, international revenues are subject to the following risks:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>fluctuating currency exchange rates could
reduce the demand for or profitability of foreign sales by affecting the
pricing of our products;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the burden of complying with a wide
variety of foreign laws and regulations, including the requirements for
additional testing of our products;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>dependence on foreign sales agents;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>political and economic instability of
foreign governments; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
imposition of protective legislation such as import or export barriers.</p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">We depend on principal customers.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We depend on
principal customers, however, no single customer of Quixote represents a
significant portion of total revenues.&#160;
In fiscal 2006, approximately 11% and 9% of our consolidated revenues
resulted from sales to customers in the States of California and Texas,
respectively.&#160; Customers may consist of
distributors, contractors, departments of transportation, state agencies, local
governments or municipalities. A change in policy in state spending could
materially affect our sales in either state.&#160;
The loss of, or a significant reduction in, orders from these or our
other major customers could have a material adverse effect on our financial
condition and results of operations.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">We are in
a competitive marketplace.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To the extent one
or more of our current or future competitors introduce products that better
address customer requirements, or are less expensive than our products, our
business could be adversely affected and we may be unable to maintain our
leadership position in certain products.&#160;
Competition may adversely affect the selling prices and the profit
margins on our products.&#160; We may not be
successful in developing and marketing our existing products or new products or
incorporating new technology on a timely basis or at a reduced cost.&#160; If we are unable to timely develop and
introduce new products, or enhance existing products, or reduce costs, in
response to changing market conditions or customer requirements or demands, our
business and results of operations could be materially and adversely affected.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have acquired
complementary businesses over the past several years and, as a part of our
strategy, may continue to acquire complementary businesses.&#160; The gross profit margins of certain acquired
product lines are lower than our historical gross profit margin, which
adversely affects our gross profit margin.&#160;
Given competitive conditions, we may be unable to improve our gross
profit margins for these businesses and products.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have been
affected by increased prices for certain commodities, particularly aluminum,
steel and resin, which are a significant component of the cost of certain of
our products.&#160; Such price increases
negatively impact our gross margin for certain products, because we have been
unable to pass along cost increases to our customers.&#160; Increasing fuel and freight costs adversely
affected our performance in fiscal 2006.&#160;
These trends may continue into fiscal 2007.</font></p>


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<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Our facilities or facilities of
our customers and suppliers could be susceptible to natural disasters.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Two of our major
facilities are located in the Southeastern U.S.&#160;
Should a natural disaster such as a hurricane, tornado, earthquake or
flood severely damage one of our major manufacturing facilities, or damage a
major facility of one or more of our significant customers or suppliers, our
business could be materially disrupted.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Our insurance coverage could be
inadequate.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In accordance with
risk management practices, we continually re-evaluate risks, their potential
costs and the cost of minimizing them. To reduce our exposure to material
risks, we purchase insurance in certain circumstances.&#160; We believe that we maintain adequate
insurance coverage, however, certain risks are inherent in our business and our
insurance may not be adequate to cover potential claims.&#160; Although we maintain liability insurance, we
cannot assure that the coverage limits under these insurance programs will be
adequate to protect us against future claims, or that we can and will maintain
this insurance on acceptable terms in the future.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Acts of war could adversely
impact our business and operating results.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Acts of war
(wherever located around the world) may cause damage or disruption to our
employees, facilities, suppliers, distributors or customers, which could
significantly impact our sales, costs, expenses and financial condition.&#160; The potential acts of war or hostility may
create many economic and political uncertainties, which could adversely affect
our business and results of operations in ways that cannot presently be
predicted.&#160; We are uninsured for losses
and interruption caused by acts of war.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Our
quarterly operating results are likely to fluctuate, which may affect our stock
price.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our quarterly
revenues, expenses, operating results and gross profit margins vary
significantly from quarter to quarter.&#160;
As a result, our operating results may fall below the expectations of
securities analysts and investors in some quarters, which could result in a
decrease in the market price of our common stock. The reasons our quarterly
results may fluctuate include:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>seasonality inherent in our
transportation safety and highway construction and maintenance business;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>variations in profit margins
attributable to product mix;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>changes in the general competitive
and economic conditions;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>delays in, or uneven timing in the
delivery of, customer orders;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the introduction of new products by
us or our competitors; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>delays
in federal highway funding and budgetary restraints on state and local
government spending.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Period to period
comparisons of such items should not be relied on as indications of future
performance.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">We may experience volatility in
our stock price.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The market price of our common stock may be subject to significant
fluctuations in response to various factors, including:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 72.0pt;text-indent:-54.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the relatively small public float of our stock;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>quarterly fluctuations in our operating results,
as described in the prior risk factor;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 72.0pt;text-indent:-54.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>changes in securities analysts&#146; estimates of our
future earnings; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 39.9pt;text-indent:-21.9pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>loss of significant customers or significant
business developments relating to us or our competitors.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our failure to meet
analysts&#146; expectations, even if minor, could cause the market price of our
common stock to decline.&#160; In addition,
stock markets have generally experienced a high level of price and volume
volatility, and the market prices of equity securities of many companies have
experienced wide price fluctuations not necessarily related to the operating
performance of such companies.&#160; These
broad market fluctuations may adversely affect our common stock&#146;s market
price.&#160; In the past, securities class
action lawsuits frequently have been instituted against</font></p>


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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">companies following periods of volatility in the market
price of such companies&#146; securities.&#160; If
any such litigation is instigated against us, it could result in substantial
costs and a diversion of management&#146;s attention and resources, which could have
a material adverse effect on our business, results of operations and financial
condition.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Certain provisions of Delaware
law, our certificate of incorporation and our stockholder rights plan have
potential anti-takeover effects.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Certain provisions
of Delaware law and of our Certificate of Incorporation and By-Laws could make a
merger, tender offer, or proxy contest involving us more difficult, even if
such events could be beneficial to the interests of our stockholders.&#160; These provisions include:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Section 203 of
the Delaware General Corporation Law which prohibits us from engaging in any
business combination with any interested stockholder for a period of three
years from the date the person became an interested stockholder unless specific
conditions are met;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the requirement
that 60% of the stockholders entitled to vote thereon approve certain
transactions; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
existence of &#147;blank check&#148; preferred stock that may be issued by our board of
directors without stockholder approval on such terms as the board may
determine.</p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We
also have a stockholders rights plan that could make a change of control of our
Company more difficult.&#160; See &#147;Description
of Capital Stock&#148;.</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">*&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
*&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; *</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The foregoing list
is not exhaustive.&#160; There can be no
assurance that we have correctly identified and evaluated all factors affecting
our business.&#160; Additional risks and
uncertainties not presently known to us or that we currently believe to be
immaterial also may adversely impact us.&#160;
Should any risks and uncertainties develop into actual events, these
developments could have material adverse effects on our business, financial
condition and results of operations.&#160; For
these reasons, the reader is cautioned not to place undue reliance on our
forward-looking statements.</font></p>


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<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">QUIXOTE
CORPORATION</font></b><a name="QuixoteCorporation_054537"></a></h1>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The following
summary contains basic information about us.&#160;
It likely does not contain all the information that is important to
you.&#160; We encourage you to read this
entire prospectus and the documents we have referred you to, including our consolidated financial statements
and the notes thereto that are incorporated by reference into this prospectus.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Our
Business</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Quixote
and its subsidiaries develop, manufacture and sell highway and transportation
safety products in both domestic and international markets.&#160; <font style="letter-spacing:-.1pt;">Our three
reportable segments are: the manufacture and sale of highway and transportation
safety products which Protect and Direct; the manufacture and sale of products
and services which Inform; and the manufacture and sale of Intersection Control
products.&#160; The Protect and Direct segment
provides solutions for improving safety on the roads either by minimizing the
severity of crashes that occur or by preventing crashes from occurring by
directing or guiding traffic.&#160; The
primary product lines within the Protect and Direct segment include
energy-absorbing products such as crash cushions, truck-mounted attenuators,
sand-filled barrels and water-filled barriers, and directing and guiding
products such as flexible post delineators and glare screen systems.&#160; The Inform segment provides solutions for
improving traffic flow and safety on roads and runways by providing
information.&#160; The primary product lines
within the Inform segment include advanced sensing products which measure
distance, count and classify vehicles, and sense weather conditions, and
computerized highway advisory radio transmitting systems.&#160; The Intersection Control segment provides
solutions for controlling intersections, including intelligent intersection
control systems.</font></font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our business is directly affected by federal, state and municipal
government funding for transportation safety, highway construction and
maintenance, and other infrastructure projects.&#160;
A significant part of our sales are ultimately financed by funds
provided to the states by the federal government through the federal
transportation funding bill.&#160; The last
six-year federal bill expired on September 30, 2003 and was extended eleven
times over almost two years.&#160; The current
bill, SAFETEA-LU, was enacted in August 2005.&#160;
Until the new legislation was enacted, the transportation safety
allotment in federal and state budgets was uncertain.&#160; We believe that the prolonged uncertainty
negatively impacted the sales of our products and services in fiscal years
2004, 2005 and the early part of 2006 and, as a result, adversely affected our
financial performance in those fiscal years.&#160;
We believe that the passage of SAFETEA-LU improved that situation.&#160; We believe we began to realize the benefit of
the bill&#146;s passage in the second half of fiscal 2006 with growth in sales across
all our segments.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, many states suffered from budget constraints in fiscal years
2004 and 2005, given both national and local economies.&#160; Such budget constraints adversely affected
the ability of the states to fund highway and infrastructure projects, and
therefore reduced the demand for our products.&#160;
Municipalities also suffered from budget restraints that reduced
transportation safety spending.&#160; Due to
the improvement in general economic conditions, we believe that state and
municipal budgetary conditions improved during fiscal 2006 and positively
impacted our sales growth.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">Our principal executive offices are located at 35 East Wacker Drive,
Suite 1100, Chicago, Illinois 60601, and our telephone number at that address
is (312) 467-6755. Our website is located at http://www.quixotecorp.com.
Information contained in our website is not a part of this prospectus.&#160; </font>As of September 19, 2006, we employed
approximately 750 people.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;letter-spacing:-.1pt;">New Developments</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">Given the continued underperformance of the Intersection Control
segment, we decided to restructure that segment and divest certain non-core
product lines.&#160; On April 25, 2006, our
Board of Directors approved a restructuring plan for our Intersection Control
segment, which is comprised of U.S. Traffic Corporation (UST) and Peek Traffic
Corporation (Peek Traffic).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Plan reduces
costs through headcount and facility reductions, as well as through the
discontinuation of non-core and low margin product lines.&#160; The Plan also outsources non-core
manufacturing activities.&#160; As part of the
restructuring plan, we sold the portable variable message sign, illuminated
street lighting and tunnel lighting product</font></p>


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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">lines in June 2006.&#160; We are in the process of moving production of
the remaining intersection control products to our Palmetto, Florida and
Bedford, Pennsylvania facilities.&#160; We
plan to cease production and close the facilities in Santa Fe Springs,
California and Tecate, Mexico by the end of September 2006.&#160; We expect the restructuring plan will result
in profitability for the Intersection Control segment beginning in third
quarter of fiscal 2007 with annualized cost savings of approximately $5 to $6
million.&#160; However, there can be no
assurance that we will achieve that level of cost savings.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">See &#147;Intersection Control Segment&#148; at page 12.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;letter-spacing:-.1pt;">Protect and Direct Segment</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">Our Protect and Direct category of products, which reduce
the severity of crashes, includes our patented highway crash cushions which
were first conceived and developed in 1969.&#160;
These products were developed and sold in response to the high number of
fatalities and serious injuries suffered by occupants of errant vehicles in
collisions with roadside hazards, such as bridge abutments, overpass piers,
overhead sign supports, lane dividers, traffic islands and toll booths.&#160; Since 1969, various types of highway crash
cushions have been installed in front of thousands of life-threatening roadside
hazards.&#160; The Federal Highway Administration
(FHWA) endorses the installation of highway crash cushions as an effective
safety program.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">We develop, manufacture and market lines of patented
highway crash cushion systems and other barriers which absorb and dissipate the
force of impact in collisions between vehicles and fixed roadside objects or
slow moving highway construction vehicles.&#160;
The product lines utilize the principles of momentum transfer and
kinetic energy to safely decelerate errant vehicles.&#160; Energy absorption or energy dissipation is
accomplished by using different combinations of water, aluminum, steel, urethane
foam systems, cardboard, plastic structures, elastometric cylinders and sand.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">&#160;We also
manufacture and sell products that prevent crashes and help control the flow of
traffic by directing or guiding traveling vehicles.&#160; These products consist of a line of flexible
sign and guide post systems (delineators) and a glare screen system.&#160; The guide posts are used to delineate a
travel way, channel vehicles or mark the location of an object.&#160; The guide post system features an in-ground
anchor system that permits inexpensive repair and replacement techniques.&#160; The glare screen system is installed on top
of median barriers to eliminate the distraction of lights from oncoming
vehicles on roads.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">&#160;Our products in
the Protect and Direct segment also include a crashworthy barrier arm for use
at areas such as railroad crossings, toll roads and as security for access
ways, driveways and parking lots.&#160; In
addition, we market a FreezeFree&#174;</font><font size="1" style="font-size:6.5pt;letter-spacing:-.1pt;position:relative;top:-3.0pt;"> </font><font style="letter-spacing:-.1pt;">anti-icing system which automatically or manually
dispenses deicing liquids in advance of ice formation on bridges, roads and
overpasses.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;letter-spacing:-.1pt;">Inform Segment</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">To expand our business within the highway and
transportation safety industry, in 1998 we began acquiring companies that
manufacture intelligent transportation systems (ITS) products, which provide
information to ease congestion and improve traffic flow.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">We manufacture and sell portable or permanent sensors
that record traffic volume, speed, and length classification of vehicles.&#160; These sensors also collect, analyze and store
traffic, road surface conditions and freezing point data which can be relayed
on a real-time basis to a transportation department&#146;s base computer or control
center via telephone, cellular link, fiber optic connection or a wireless
link.&#160; We also manufacture and market
road/runway weather information systems.&#160;
Using a tower equipped with weather instruments and special detectors,
these systems can detect freezing conditions and provide valuable weather
information to transportation departments or airports in order to dispatch salt
trucks or automatically activate anti-icing systems.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">We are a leading manufacture of highway advisory radio
(HAR) systems that broadcast traffic information using an AM radio frequency
with reception up to six miles from the unit.&#160;
HAR systems, in connection with flashing lights and message signs,
advise drivers to tune into a particular AM station to hear messages about
traffic, road conditions and weather.&#160;
These HAR systems can be permanent or mobile.&#160; Our Intellizone&#174; system is designed to</font></p>


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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">provide real-time information to motorists by integrating traffic and/or
weather sensors, variable message signs and computer controlled software.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;letter-spacing:-.1pt;">Intersection Control Segment</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">To further expand our business within the highway and
transportation safety industry, in 2003 we began acquiring companies that
manufacture intelligent transportation system products which control
intersections.&#160; As of April 2006, we
adopted a restructuring plan for this segment.&#160;
After the restructuring of the product lines within this segment, its
products will include traffic controllers, traffic and pedestrian signals,
traffic uninterruptible power supply (UPS) systems, video detection equipment,
toll road monitoring systems and parking detection devices.&#160; Traffic controllers and detectors are devices
that control traffic signal operations at intersections either with pre-set
timers or with detectors that enable the signals to change in response to
variations in traffic.&#160; Traffic and
pedestrian signals are LED or incandescent signals for intersection operations
and pedestrian crossings which may include a numerical countdown warning before
a signal changes.&#160; UPS systems are power
systems with battery backup that keep a lighted intersection operating either
normally or in flash-mode during a power interruption.&#160; Video detection systems are based on one or
more cameras that allow traffic authorities to monitor or manage traffic flow
from a remote location.&#160; A toll road
monitoring system is a data collection system able to count axles of vehicles
in order for the proper authorities to ensure the proper toll amount is
collected.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">See &#147;New Developments&#148; at pages 10 and 11 for a
discussion of our restructuring plan.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">USE OF PROCEEDS</font></b><a name="UseOfProceeds_054733"></a></h1>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All shares of
common stock sold pursuant to this prospectus will be sold by the selling
stockholders and Quixote will not receive any of the proceeds from such sales.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SELLING
STOCKHOLDERS</font></b><a name="SellingStockholders_054736"></a></h1>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
common stock being registered by this prospectus consists of 300,000 shares of
common stock that will be held by the Plan or by persons who acquired or will
acquire those shares from the Plan, pursuant to its terms.&#160; The Plan is an employee benefit plan that
complies with Section 401(k) of the Internal Revenue Code.&#160; Employees of the Company and its subsidiaries
may acquire shares of common stock pursuant to the terms of the Plan, and may
sell such shares either directly or indirectly by requesting the Plan to sell
the shares.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">See &#147;Plan of
Distribution&#148; on page 19 of this prospectus.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DESCRIPTION
OF CAPITAL STOCK</font></b><a name="DescriptionOfCapitalStock_054742"></a></h1>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our authorized
capital stock consists of 30,000,000 shares of common stock, $0.01-2/3&#160; par value, and 100,000 shares of preferred
stock, no par value per share. The following summary is qualified in its
entirety by reference to our certificate of incorporation and bylaws, copies of
which are filed as exhibits to our previous filings with the Securities and
Exchange Commission and incorporated herein by reference.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Common Stock</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are authorized
to issue 30,000,000 shares of common stock, $0.01-2/3 par value per share. &#160;Each holder of our common stock is entitled to
one vote for each share held.&#160; Except as
provided below under &#147;Certain Other Anti-Takeover Matters&#148;, stockholders do not
have the right to cumulate their votes in elections of directors.&#160; Directors are elected if they receive at
least sixty percent of all votes of shares entitled to vote.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our common stock
is listed on The Nasdaq Global Market</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">SM</font>.&#160;
Subject to the preferential rights of any holders of any outstanding
series of preferred stock, holders of our common stock will be entitled to
dividends on a pro rata basis upon declaration of dividends by our board of
directors.&#160; Dividends are payable only
out of unreserved</p>


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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and unrestricted surplus
that is legally available for the payment of dividends. Dividends that may be
declared on our common stock will be paid in an equal amount to the holder of
each share.&#160; No pre-emptive rights are
conferred upon the holders of such stock and there are no liquidation or
conversion rights.&#160; There are no
redemption or sinking fund provisions and there is no liability to further
calls or to assessments by us. Any determination to declare or pay dividends in
the future will be at the discretion of our board of directors and will depend
on our results of operations, financial condition, contractual or legal
restrictions and other factors deemed relevant by our board of directors. Upon
our liquidation, holders of our common stock will be entitled to a pro rata
distribution of our assets, after payment of all amounts owed to our creditors
and the preferential amounts owing with respect to any of our outstanding
preferred stock.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&#160;Preferred Stock</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The rights,
preferences and privileges of holders of common stock are subject to, and may
be adversely affected by, the rights of the holders of shares of any series of
preferred stock that we may designate and issue in the future.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our certificate of
incorporation provides for the issuance of up to 100,000 shares of preferred
stock. Our board of directors will have the authority, without further action
by the stockholders, to issue up to 100,000 shares of preferred stock in one or
more series and to designate the rights, preferences, privileges and
restrictions of each such series. The issuance of preferred stock could have
the effect of restricting dividends on the common stock, diluting the voting
power of the common stock, impairing the liquidation rights of the common stock
or delaying or preventing a change in control without further action by the
stockholders.&#160; Subject to the rights of
the holders of any series of preferred stock, the number of authorized shares
of any series of preferred stock may be increased or decreased (but not below
the number of shares thereof then outstanding) by resolution adopted by our
board of directors.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In connection with
a previous stockholder rights plan, we authorized 10,000 shares of Series A
preferred stock, none of which was issued.&#160;
At present, 10,000 shares of Series B junior participating preferred
stock have been authorized and are reserved for issuance under the rights plan
as described below. We have no plans to issue any other shares of preferred
stock.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Rights Plan</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Effective June 30,
1998, our board of directors adopted a stockholder rights plan.&#160; To implement the rights plan, our board of
directors declared a dividend distribution of one right for each outstanding
share of common stock, to shareholders of record at the close of business on
July 14, 1998, and for each share of common stock issued between July 14, 1998
and the distribution date.&#160; When exercisable,
each right will entitle the registered holder to purchase from us a unit
consisting of one one-thousandth of a share of Series B junior participating
preferred stock, no par value per share, at a purchase price of $40.00, subject
to adjustment.&#160; The description and terms
of the rights are set forth in a rights agreement between us and EquiServe
Trust Company, N.A. (n/k/a Computershare Trust Company N.A.) as rights agent,
dated as of July 24, 1998, a copy of which is attached as Exhibit 1 to our Form
8-A Registration Statement, File No. 001-08123, filed with the Securities and
Exchange Commission on July 23, 1998.&#160;
This summary description does not purport to be complete and is
qualified in its entirety by reference to the rights agreement.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Common
Stock Certificates Representing Right.&#160; </font></i></b>Initially,
the rights will be evidenced by Quixote common stock certificates representing
shares then outstanding, and no separate certificates for the rights will be
distributed.&#160; The rights will be
exercisable and transferable apart from our common stock and a distribution
date will occur upon the earliest of (1) ten days following the stock
acquisition date, which is a public announcement that a person or group of
affiliated or associated persons (an acquiring person) has acquired, or
obtained the right to acquire, beneficial ownership of 15% or more of our
outstanding common stock and (2) ten business days following the commencement
of a tender offer or exchange offer that would result in the beneficial
ownership by a person or group of 20% or more of our outstanding common stock.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Until the
distribution date, (1) the rights will be evidenced by Quixote common stock
certificates and will be transferred with and only with such common stock
certificates, (2) new common stock certificates issued after</font></p>


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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">July 14, 1998 will
contain a notation incorporating the rights agreement by reference, and (3) the
surrender for transfer of any certificates for common stock outstanding will
also constitute the transfer of the rights associated with the common stock
represented by such certificate.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Issuance
of Rights Certificates.&#160; </font></i></b>As
soon as practicable following the distribution date, separate certificates
representing only rights shall be mailed to the holders of record of our common
stock as of the close of business on the distribution date, and such separate
rights certificates alone shall represent such rights from and after the
distribution date.&#160; Except as otherwise
determined by our board of directors, only shares of our common stock issued
before the distribution date will be issued with rights.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Expiration
of Rights.</font></i></b>&#160; The
rights are not exercisable until the distribution date and will expire at the
close of business on July 24, 2008, unless earlier redeemed or exchanged by us
as described below.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Exercise
of Rights.&#160; </font></i></b>If any
person becomes the beneficial owner of 15% or more of the then-outstanding
shares of our common stock (except pursuant to an offer for all outstanding
shares of our common stock determined by our board of directors who are not
officers of Quixote and who are not representatives, nominees, affiliates or
associates of an acquiring person or adverse person<b> </b>to
be fair to and otherwise in the best interests of us and our shareholders), or
our board of directors declares any individual or entity (alone or together
with its affiliates and associates as defined in Rule 12b-2 of the Securities
and Exchange Act of 1934, as amended) owning at least 10% of the
then-outstanding shares of our common stock to be an adverse person (as defined
in the rights agreement), each holder of a right will thereafter have the right
to receive, upon exercise thereof, the number of shares of our common stock
(or, in certain circumstances, cash, property, or other securities of Quixote
or a reduction in the purchase price) having a value equal to two times the
exercise price of the right.&#160;
Notwithstanding any of the foregoing, following the occurrence of either
event described above, all rights that are, or (under certain circumstances
specified in the rights agreement) were, beneficially owned by any acquiring
person will be void.&#160; The rights are not,
however, exercisable following the occurrence of the event set forth above
until such time as the rights are no longer redeemable by us, as described
below.&#160; Further, rights generally are
exercisable only after the effectiveness of a registration statement covering
the underlying shares of our common stock under the Securities Act of 1933, as
amended.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For example, at an
exercise price of $40.00, each right not owned by an acquiring person or an
adverse person (or by certain related parties) following an event set forth in
the preceding paragraph would entitle its holder to purchase $80.00 worth of
common stock (or other consideration, as noted above) for $40.00.&#160; Assuming that the common stock had a
per-share market value of $20.00 at such time, the holder of each valid right
would be entitled to purchase four shares of our common stock for $40.00.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If at any time
following the stock acquisition date or the date on which an individual or
entity is declared an adverse person pursuant to the rights agreement, (1) we
are acquired in a merger or other business combination transaction in which we
are not the surviving corporation (other than pursuant to a qualified offer as
described above), or (2) more than 50% of our assets or earning power is sold
or transferred (each of such events is referred to as a &#147;Section 13 Event&#148;),
then each holder of a right (except rights that have been previously voided, as
set forth above) shall thereafter have the right to receive, upon exercise,
common stock of the acquiring company having a value equal to two times the
exercise price of the right.&#160; If the
rights cannot be exercised for common stock of the acquiring company as set
forth above, rights holders will be entitled to put the rights to the acquiring
company for cash equal to the exercise price of the rights (i.e., at a 50%
discount).&#160; The events described in this
paragraph and in the second preceding paragraph are referred to as the
triggering events.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Adjustments
to Prevent Dilution.</font></i></b>&#160;
The purchase price payable, and the number of units of preferred stock
or other securities or property issuable, upon exercise of the rights are
subject to adjustment from time to time to prevent dilution (1) in the event of
a stock dividend on, or a subdivision, combination, or reclassification of, the
preferred stock, (2) if holders of the preferred stock are granted certain
rights or warrants to subscribe for preferred stock or convertible securities
at less than the current market price of the preferred stock, or (3) upon the
distribution to holders of the preferred stock of evidences of indebtedness or
assets (excluding regular quarterly cash dividends) or of subscription rights
or warrants (other than those referred to above).</p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">With certain
exceptions, no adjustment in the purchase price will be required until
cumulative adjustments amount to at least 1% of the purchase price.&#160; No fractional units of preferred stock will
be issued and, in lieu thereof, an adjustment in cash will be made based on the
market price of the preferred stock on the last trading date before the date of
exercise.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Redemption
of Rights.</font></i></b>&#160; At any
time until ten days following the stock acquisition date (or such later date as
our board of directors may determine), we may redeem the rights in whole, but
not in part, at a price of $.01 per right, payable in cash, or shares of common
stock or other consideration deemed appropriate by our board of directors.&#160; Immediately upon the action of our board of
directors ordering redemption of the rights, the rights will terminate and the
only right of the holders of rights will be to receive the $.01 redemption
price.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">No
Stockholder Rights Before Exercise.</font></i></b>&#160; Until a right is exercised, the holder
thereof, as such, will have no rights as a stockholder of Quixote, including
the right to vote or to receive dividends. While the distribution of the rights
will not be taxable to stockholders or to us, stockholders may, depending upon
the circumstances, recognize taxable income if the rights become exercisable
for common stock (or other consideration) or for common stock of an acquiring
company as set forth above.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Amendment
of Rights Agreement.&#160; </font></i></b>Any
of the provisions of the rights agreement may be amended by our board of
directors before the distribution date. After the distribution date, the
provisions of the rights agreement may be amended by our board of directors to
cure any ambiguity, to correct inaccuracies and inconsistencies, to make changes
that do not adversely affect the interests of holders of rights (excluding the
interests of any acquiring person or an adverse person or any of their
affiliates or associates), or to shorten or lengthen any time period under the
rights agreement; however, no amendment to adjust the time period governing
redemption shall be made at such time as the rights are not redeemable.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Anti-takeover
Effects</font></i></b>.&#160; The
rights have certain anti-takeover effects.&#160;
The rights will cause substantial dilution to a person or group that
attempts to acquire Quixote in a manner which causes the rights to become
discount rights unless the offer is conditional on a substantial number of
rights being acquired.&#160; The rights,
however, should not affect any prospective offeror willing to make an offer at
a fair price and otherwise in the best interests of Quixote and its
stockholders as determined by a majority of the directors who are not
affiliated with the person making the offer, or willing to negotiate with the
board of directors.&#160; The rights should
not interfere with any merger or other business combination approved by the
board of directors since the board of directors may, at its option, at any time
until ten business days following the stock acquisition date redeem all but not
less than all the then outstanding rights at the redemption price.</p>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Certificate
Of Incorporation Provisions Requiring Supermajority Approval Of Certain Actions</font></b></h1>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our certificate of
incorporation provides that holders of at least sixty percent (60%) of our issued
and outstanding shares must agree to:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 54.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>amend our certificate of
incorporation;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>adopt or approve any agreement or
plan of merger or consolidation or any transaction including a merger of
consolidation of Quixote;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 54.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>elect directors;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 54.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>transfer all or substantially all of
our property and assets; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 54.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>adopt
or approve a plan of liquidation or dissolution.</p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Limitation of Liability and
Indemnification Matters</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our certificate of
incorporation provides that a director of Quixote will not be liable to Quixote
or its stockholders for monetary damages for breach of fiduciary duty as a
director, except in certain cases where liability is mandated by the Delaware
General Corporation Law. Our by-laws provide for indemnification, to the
fullest extent permitted by law, of any person made or threatened to be made a
party to any action, suit or proceeding by reason of the fact that such person
is or was a director or officer of Quixote, or is or was a director of a
subsidiary of Quixote, or, at the request of Quixote, serves or served as a
director or officer of or in any other capacity for, or in</font></p>


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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">relation to, any other
enterprise, against all expenses, liabilities, losses and claims actually
incurred or suffered by such person in connection with the action, suit or proceeding.
Our by-laws also provide that, to the extent authorized from time to time by
our board of directors, Quixote may provide to any one or more employees and
other agents of Quixote or any subsidiary or other enterprise, rights of
indemnification and to receive payment or reimbursement of expenses, including
attorneys&#146; fees, that are similar to the rights conferred by the by-laws on
directors and officers of Quixote or any subsidiary or other enterprise.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 203 of the Delaware
General Corporation Law</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are subject to
the provisions of Section 203 of the Delaware General Corporation Law. In
general, Section 203 prohibits a publicly held Delaware corporation from
engaging in a &#147;business combination&#148; with an &#147;interested stockholder&#148; for a
period of three years after the date of the transaction in which the person
became an interested stockholder, unless the business combination is approved
in a prescribed manner. A &#147;business combination&#148; includes a merger, asset sale
or a transaction resulting in a financial benefit to the interested
stockholder. An &#147;interested stockholder&#148; under Section 203 is a person who,
together with affiliates and associates, owns (or, in certain cases, within
three years prior, did own) 15% or more of the corporation&#146;s outstanding voting
stock. Under Section 203, a business combination between Quixote and a Section
203 interested stockholder is prohibited unless it satisfies one of the
following conditions:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>prior
to the time the stockholder became a Section 203 interested stockholder, our
board of directors must have previously approved either the business
combination or the transaction that resulted in the stockholder becoming a
Section 203 interested stockholder;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>on
consummation of the transaction that resulted in the stockholder becoming a
Section 203 interested stockholder, the Section 203 interested stockholder
owned at least 85% of our voting stock outstanding at the time the transaction
commenced (excluding, for purposes of determining the number of shares
outstanding, shares owned by persons who are directors and officers); or</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
business combination is approved by our board of directors and authorized at an
annual or special meeting of the stockholders by the affirmative vote of at
least 66 2/3% of the outstanding voting stock which is not owned by the Section
203 interested stockholder.</p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Certain Other Anti-Takeover
Matters</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Business
Combination and Limitations in our Certificate of Incorporation</font></i></b>.&#160; In addition to the requirements of Section
203 described above, our certificate of incorporation requires the affirmative
vote of the holders of at least 60% of our outstanding voting stock not owned
by an interested stockholder (as defined below), for the approval of certain
business combinations and certain other transactions with an interested
stockholder unless certain minimum price and procedural requirements are met
and for the amendment or repeal of these provisions.&#160; An &#147;interested stockholder&#148; is defined by our
certificate of incorporation as any person or entity that either (i)
beneficially owns 5% or more of our outstanding voting stock, (ii) is an
affiliate of Quixote and, at any time within the two years prior to the date
the determination is made, was the beneficial owner of 5% or more of our voting
stock or (iii) is the assignee of, or otherwise succeeds to, shares
beneficially owned by an interested stockholder during the two years prior to
the date the determination is made (other than as a result of a public offering
under the Securities Act of 1933).&#160; This
super-majority approval would not be required if (1) the business combination
has been approved by a majority of disinterested directors (being those
directors who are not affiliated with the interested stockholder and who were
directors prior to the time the interested stockholder became an interested
stockholder) or (2) all following conditions are satisfied:&#160; (a) the cash or fair market value of the
consideration to be received per share by holders of the common stock is not
less than the higher of (i) the highest price paid for any common stock by any
person who is an interested stockholder during the two years prior to the
announcement of the proposed business combination or in the transaction in
which such person became an interested stockholder (whichever is higher) or
(ii) the price of our common stock on the announcement date or the date on
which the interested stockholder became an interested stockholder (whichever is
higher); (b) the consideration to be received by holders of a particular class
of outstanding voting stock shall be in cash or in the same form as the
interested stockholder has previously paid for shares of such class of voting
stock; (c) after becoming an interested stockholder and prior to consummation
of such business combination, (i) there has been no reduction in dividends, or
an</p>


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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">effective reduction in
the number of common shares outstanding, unless approved by the board, (ii)
such interested stockholder shall not have become the beneficial owner of any
additional shares of common stock except as part of the transaction which
resulted in such stockholder becoming an interested stockholder and (iii) the
interested stockholder shall not have received the benefit, directly or
indirectly (except proportionately as a stockholder), of any loans or other
financial assistance provided by us, or made any major change in our equity
capital structure; and (d) if such proposal otherwise requires stockholder
approval, a proxy statement responsive to the requirements of the Securities
Exchange Act of 1934, whether or not we are subject to such requirements, shall
be mailed to our stockholders for the purpose of soliciting stockholder
approval of such business combination.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Cumulative
Voting Triggered by 60% Stockholder</font></i></b>.&#160; The certificate of incorporation also
provides that in any election of directors on or after the date on which any
person becomes the beneficial holder of 60% of our outstanding voting stock,
and until such time as no 60% stockholder any longer exists:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 74.25pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>there
shall be cumulative voting for the election of directors so that any holder of
shares of voting stock entitled to vote in such election may cumulate such
stockholder&#146;s votes and give one candidate a number of votes equal to the
number of directors to be elected multiplied by the number of votes to which
stockholder&#146;s shares are entitled, or distribute such stockholder&#146;s votes on
the same principle among as many candidates as such stockholder sees fit; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 74.25pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any
person who is the beneficial owner of shares of voting stock with a market
price of $100,000 or more shall have the right to nominate one or more
candidates for election to the board of directors and such candidates shall be
entitled to include in any proxy statement or other communication with respect
to such election to be sent to the holders of shares of voting stock during
such period, at our expense, descriptions and other statements of such
candidates which shall receive equal space, coverage and treatment as is
received by candidates nominated by the board of directors or our management.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our certificate of
incorporation and by-laws include a number of other provisions that may have
the effect of encouraging persons considering unsolicited tender offers or
other unilateral takeover proposals to negotiate with our board of directors
rather than pursue non-negotiated takeover attempts. These provisions include:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Classified
Board of Directors</font></i></b>.&#160;
Our certificate of incorporation provides for a board of directors that
consists of three to nine members divided into three classes, with one class to
be elected each year to serve for a three-year term. As a result, at least two
annual meetings of stockholders may be required for the stockholders to change
a majority of our board of directors. In addition, the stockholders can only remove
directors by the affirmative vote of the holders of not less than 75% of the
outstanding shares of our capital stock entitled to vote in the election of
directors. Vacancies on our board of directors may be filled only by our board
of directors. The classification of directors and the inability of stockholders
to remove directors without a supermajority vote and to fill vacancies on the
board of directors will make it more difficult to change the composition of our
board of directors, but will promote a continuity of existing management.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">No
Written Consent of Stockholders; Limitations on Call of Special Meetings</font></i></b>.&#160; Our certificate of incorporation requires all
stockholder actions to be taken by a vote of the stockholders at an annual or
special meeting, and does not permit our stockholders to act by written
consent, without a meeting.&#160; Our bylaws
provide that only our chairman, our president or a majority of our board may
call a special stockholders&#146; meeting.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Supermajority
Approval of Amendment of Charter</font></i></b>.&#160; Our certificate of incorporation requires the
approval of not less than 65% of our outstanding voting stock to amend the
provisions of the certificate of incorporation which provide for a classified
board, limit stockholder actions by consent or by the calling of a special
meeting of stockholders and business combinations with an interested
shareholder.&#160;&#160; Those provisions will make
it more difficult to dilute the anti-takeover effects of our certificate of
incorporation.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Blank
Check Preferred Stock</font></i></b>.&#160;
Our certificate of incorporation provides for 100,000 authorized shares
of preferred stock. The existence of authorized but unissued shares of
preferred stock may enable the board of directors to render more difficult or
to discourage an attempt to obtain control of Quixote by means of a merger,
tender offer, proxy contest or otherwise. For example, if in the due exercise
of its fiduciary obligations, the board of directors</p>


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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">were to determine that a
takeover proposal is not in the best interests of Quixote, the board of
directors could cause shares of preferred stock to be issued without
stockholder approval in one or more private offerings or other transactions
that might dilute the voting or other rights of the proposed acquiror or
insurgent stockholder or stockholder group. In this regard, the certificate of
incorporation grants our board of directors broad power to establish the rights
and preferences of authorized and unissued shares of preferred stock. The
issuance of shares of preferred stock could decrease the amount of earnings and
assets available for distribution to holders of shares of common stock and
nonvoting common stock. The issuance may also adversely affect the rights and
powers, including voting rights, of such holders and may have the effect of
delaying, deterring or preventing a change in control of Quixote. The board of
directors currently does not intend to seek stockholder approval prior to any
issuance of shares of preferred stock, unless otherwise required by law.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Listing</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our common stock
is listed on The Nasdaq Global Market</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">SM</font>.</p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Transfer Agent</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The transfer agent
for our common stock is Computershare Trust Company, N.A.</font></p>


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<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PLAN OF DISTRIBUTION</font></b><a name="PlanOfDistribution_055158"></a></h1>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
selling stockholders, or the Plan at the request of the selling stockholders,
may from time to time sell the shares of common stock directly to purchasers on
The Nasdaq Global Market</font><font size="1" face="Times New Roman" style="font-size:6.5pt;position:relative;top:-3.0pt;">SM</font><font face="Times New Roman">&#160;(or on any other national securities exchange
where the shares of common stock may be trading) or other over-the-counter
market at prices and at terms then prevailing or at prices related to the then
current market price or in negotiated transactions.&#160; These shares of common stock may be sold by
one or more of the following:</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt .0001pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">a block
trade in which the broker or dealer will attempt to sell shares as agent but
may position and resell a portion of the block as principal to facilitate the
transaction;</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt .0001pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">purchases by
a broker or dealer as principal and resale by a broker or dealer for its
account using this prospectus;</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt .0001pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">through the
writing of options;</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt .0001pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">ordinary
brokerage transactions in which the broker does not solicit purchasers and
transactions in which the broker does solicit purchasers;</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt .0001pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">transactions
directly with a market maker; and</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">in privately
negotiated transactions not involving a broker or dealer.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each
sale may be made either at market prices prevailing at the time of the sale, at
negotiated prices, at fixed prices which may be changed, or at prices related
to prevailing market prices.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
selling stockholders will act independently of Quixote in making decisions with
respect to the timing, manner and size of each sale.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Brokers
or dealers engaged by any of the selling stockholders to sell the shares may
arrange for other brokers or dealers to participate.&#160; Brokers or dealers engaged to sell the shares
will receive compensation in the form of commissions or discounts in amounts to
be negotiated before each sale and which may be in excess of customary
discounts or commissions.&#160; These brokers
or dealers and any other participating brokers or dealers may be determined to
be underwriters within the meaning of the Securities Act of 1933.&#160; We will receive no proceeds from any resales
of the shares offered by this prospectus, and we anticipate that the brokers or
dealers, if any, participating in the sales of the shares will receive their
usual and customary selling commissions.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Some
persons participating in this offering may engage in transactions that
stabilize, maintain or otherwise affect the price of the securities, including
the entry of stabilizing bids or syndicate covering transactions or the
imposition of penalty bids.&#160; The selling
stockholders and any other person participating in a distribution will be
subject to applicable provisions of the Exchange Act and the rules and
regulations thereunder including Regulation M.&#160;
This regulation may limit the timing of purchases and sales of any of
the securities by the selling stockholders and any other person.&#160; The anti-manipulation rules under the
Exchange Act may apply to sales of securities in the market and to the activities
of the selling stockholders and their affiliates.&#160; Furthermore, Regulation M of the Exchange Act
may restrict the ability of any person engaged in the distribution of the
securities to engage in market-making activities with respect to the particular
securities being distributed for a period of up to five business days before
the distribution.&#160; All of the foregoing
may affect the marketability of the securities and the ability of any person or
entity to engage in market-making activities with respect to the securities.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
selling stockholders may enter into hedging transactions.&#160; Persons with whom they enter into hedging
transactions may engage in short sales of our common stock.&#160; The selling stockholders may engage in short
sales of our common stock and transactions involving options, swaps,
derivatives and other transactions involving our securities or its investments
in those securities, and may sell and deliver the shares covered by this
prospectus under agreements to undertake these transactions or in settlement of
securities loans.&#160; These transactions may
be entered into with broker-dealers or other financial institutions that may
resell those shares.&#160; The selling stockholders
may pledge their shares to secure borrowings.&#160;
Upon delivery of the shares or a default by a selling stockholder, the
broker-dealer or financial institution may offer and sell the pledged shares.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Selling
stockholders may resell all or a portion of their shares in open market
transactions in reliance upon available exemptions under the Securities Act
including in reliance upon Rule 144 under the Securities Act, provided they
meet the criteria and conform to the requirements of one of these
exemptions.&#160; The selling stockholders may
decide not to sell all or a portion of the shares offered under this
prospectus.</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A selling
stockholder may from time to time pledge or grant a security interest in some
or all of the common stock owned by them and, if they default in the
performance of their secured obligations, the pledgees or secured parties may
offer and sell the shares of common stock from time to time under this
prospectus, or under an amendment to this prospectus under Rule 424(b)(3) or
other applicable provision of the Securities Act of 1933 amending the list of
selling stockholders to include the pledgee, transferee or other successors in
interest as selling stockholders under this prospectus.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To comply with the
securities laws of some states, if applicable, the shares will be sold in those
states only through brokers or dealers.&#160;
The shares may not be sold in some states unless they have been
registered or qualified for sale in those states or an exemption from
registration or qualification is available and is complied with.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If necessary, the
specific shares of our common stock to be sold, the name of the selling
stockholder, the purchase and public offering prices, the names of any agent,
dealer or underwriter, and any applicable commissions or discounts will be
disclosed in an accompanying prospectus supplement or, if appropriate, a
post-effective amendment to the registration statement of which this prospectus
is a part.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We will bear all
expenses of the offering of the common stock that is offered in this prospectus
including without limitation all filing, registration and qualification,
printing, legal and accounting fees, except that the selling stockholders will
pay any applicable underwriting commissions and expenses, brokerage fees and
transfer taxes, and the fees and disbursements of their counsel and experts.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The selling
stockholders are not restricted as to the price or prices at which they may
sell the shares of our common stock offered under this prospectus. Sales of
shares at less than the market price may depress the market price of our stock.
Moreover, the selling stockholders are not restricted as to the number of
shares which may be sold at any one time, and it is possible that a significant
number of shares could be sold at the same time which may also depress the
market price of our stock.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;text-indent:20.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">LEGAL MATTERS</font></b><a name="LegalMatters_055233"></a></h1>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The validity of
the shares of common stock offered pursuant to this prospectus will be passed
upon by Joan R. Riley, Esq., General Counsel of Quixote.&#160; Ms. Riley beneficially owns, or has rights to
acquire under Quixote&#146;s employee benefit plans, an aggregate of less than 2% of
Quixote&#146;s common stock.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHERE YOU CAN FIND MORE INFORMATION</font></b><a name="WhereYouCanFindMoreInformation_055235"></a></h1>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We file annual,
quarterly and special reports, proxy statements, and other information with the
Securities and Exchange Commission (&#147;Commission&#148;).&#160; You may read and copy any materials we file
with the Commission at the Commission&#146;s public reference room at 450 Fifth
Street, N.W., Washington, D.C. 20549. Please call the Commission at
1-800-SEC-0330 for more information on its public reference rooms. The
Commission also maintains an Internet Website at http://www.sec.gov that
contains reports, proxy and information statements, and other information
regarding issuers that file electronically with the Commission.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We maintain an
internet website http://www.quixotecorp.com, at which you can access our annual
report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form
8-K, and amendments to those reports filed pursuant to Section 13(a) or 15(d)
of the Exchange Act.&#160; We make those filings
available on our website as soon as reasonably practicable after such material
is filed, or furnished, to the Securities and Exchange Commission.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have filed a
registration statement on Form S-8 to register with the Commission the
securities described herein.&#160; This
prospectus is a part of that registration statement and constitutes a
prospectus of Quixote.&#160; As allowed by
Commission rules, this prospectus does not contain all the information that can
be found in the registration statement or the exhibits to the registration
statement.</font></p>


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<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">INCORPORATION BY REFERENCE</font></b><a name="IncorporationByReference_055239"></a></h1>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Commission
allows us to &#147;incorporate by reference&#148; the information we file with them,
which means that we can disclose important information to you by referring you
to those documents. The information incorporated by reference is considered to
be a part of this prospectus, and later information that we file with the
Commission will automatically update and supersede this information.&#160; In all cases, you should rely on the later
information over comparable but earlier dated information included in this
prospectus. We incorporate by reference the documents listed below and any
future filings we make with the Commission under Sections 13(a), 13(c), 14 or
15(d) of the Securities Exchange Act of 1934, as amended:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Annual Report on Form 10-K for the year ended
June 30, 2006 (including information specifically incorporated by reference
into our Form 10-K from our definitive Proxy Statement) filed with the
Commission on September 13, 2006.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>All documents subsequently filed by Quixote
pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Securities Exchange Act
of 1934, as amended, shall be deemed to be incorporated by reference in this
prospectus and to be part hereof from the date of filing of such documents.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>All documents filed by Quixote after the date of
filing the initial registration statement on Form S-8, of which this
prospectus is a part, and prior to the effectiveness of such registration
statement pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Securities
Exchange Act of 1934, as amended, shall be deemed to be incorporated by
reference into this prospectus and to be part hereof from the date of filing of
such documents.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On request we will provide, at no cost to each person, including any
beneficial owner who receives a copy of this prospectus, a copy of any or all
of the documents incorporated in this prospectus by reference.&#160; We will not provide exhibits to any such
documents, however, unless such exhibits are specifically incorporated by
reference into those documents.&#160; Written
or telephone requests for such copies should be addressed to Quixote&#146;s
executive offices located at 35 East Wacker Drive, Chicago, Illinois 60601,
Attention: Corporate Secretary, telephone number (312) 467-6755.</font></p>


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 <p style="margin:0pt 0pt .0001pt;text-align:center;"></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="border:none;border-top:double windowtext 1.5pt;padding:1.0pt 0pt 0pt 0pt;">

<p align="center" style="border:none;margin:0pt 0pt 12.0pt;padding:0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Quixote
Corporation</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">300,000 Shares</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">of</font></b></p>

<p align="center" style="margin:0pt 0pt 24.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Common
Stock</font></b></p>

<div align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><hr size="1" width="160" noshade color="black" align="center" style="width:120.0pt;"></div>

<p align="center" style="margin:6.0pt 0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Prospectus</font></b></p>

<div align="center" style="margin:0pt 0pt 24.0pt;text-align:center;"><hr size="1" width="160" noshade color="black" align="center" style="width:120.0pt;"></div>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt 0pt 1.0pt 0pt;">

<p align="center" style="border:none;margin:0pt 0pt 12.0pt;padding:0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

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<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PART II</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">INFORMATION
REQUIRED IN THE REGISTRATION STATEMENT</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ITEM 3.&#160;&#160;&#160;&#160; INCORPORATION OF DOCUMENTS BY REFERENCE</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Quixote
Corporation (the &#147;Company&#148;) hereby incorporates into this Registration
Statement by reference the following documents filed with the Securities and
Exchange Commission (the &#147;Commission&#148;) (File No. 001-08123):</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160; The Company&#146;s Annual Report
on Form 10-K filed pursuant to Section 13(a) of the Securities Exchange Act of
1934 as amended (the &#147;Securities Exchange Act&#148;) for the fiscal year ended June
30, 2006 (including information specifically incorporated by reference into our
form 10-K Report from our Proxy Statement for the annual meeting of stockholders
on November 16, 2006) filed with the Commission on September&nbsp;13, 2006; and</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160; The description of the
Common Stock of the Company contained in the registration statement filed by
the Company under the Securities Exchange Act, including any amendment or report
filed for the purpose of updating such description.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All documents filed by the Company pursuant to Section 13(a), 13(c), 14
or 15(d) of the Securities Exchange Act subsequent to the date of this
Registration Statement and prior to the filing of a post-effective amendment
which indicates that all securities offered hereby have been sold or which
deregisters all securities remaining unsold, shall be deemed to be incorporated
by reference herein and to be a part hereof from the date of the filing of such
reports and documents.&#160; Any statement
contained in a document incorporated herein by reference shall be deemed to be
modified or superseded for purposes of this Registration Statement to the
extent that a statement contained herein or in any other subsequently filed
document which also is incorporated by reference herein modifies or supersedes
such statement.&#160; Any such statement so
modified or superseded shall not be deemed, except as so modified or
superseded, to constitute a part of this Registration Statement.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ITEM 5.&#160;&#160;&#160;&#160; INTERESTS OF NAMED EXPERTS AND COUNSEL</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The validity of
the shares of Common Stock being registered pursuant to this Registration
Statement has been passed upon by Joan R. Riley, Esq., Vice President,
Secretary and General Counsel of the Company.&#160;
Ms. Riley beneficially owns or has rights to acquire under Quixote&#146;s
employee benefit plans an aggregate of less than 2% of the shares of Common
Stock of the Company.</font></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ITEM 6.&#160;&#160;&#160;&#160; INDEMNIFICATION OF OFFICERS AND DIRECTORS</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company is
subject to the Delaware General Corporation Law.&#160; Delaware law provides that officers and
directors may receive indemnification from their corporations for certain
actual or threatened lawsuits.&#160; Delaware
law sets out the standard of conduct which the officers and directors must meet
in order to be indemnified, the parties who are to determine whether the
standard has been met, and the types of expenditures which will be
indemnified.&#160; Delaware law further
provides that a corporation may purchase indemnification insurance providing
indemnification for the officers and directors whether or not the corporation
would have the power to indemnity them against such liability under the
provisions of the Delaware law.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company has
adopted a provision within its By-Laws which provides that the Company will
indemnify its officers and directors to the full extent permitted by Delaware
law.&#160; Further, the Company is covered</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">II-</font><font face="Times New Roman">1</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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 <p style="margin:0pt 0pt .0001pt;text-align:center;"></p>


<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">by insurance which will
reimburse it for certain amounts it is obligated to pay in lawsuits involving
officers and directors serving in such capacities in which the damages,
judgments, settlements, costs, charges or expenses incurred in connection with
the defense of the action, suit or proceeding are reimbursable pursuant to law.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ITEM 8.&#160;&#160;&#160;&#160; EXHIBITS</font></b></p>

<div align="center" style="font-family:Times New Roman;">

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;">
 <tr style="page-break-inside:avoid;">
  <td width="60" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.0pt;">
  <p align="right" style="font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:right;"><!-- SET mrlHTMLTableCenter --><!-- SET mrlNoTableShading -->4(a)</p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="593" valign="top" style="padding:0pt .7pt 0pt 0pt;width:444.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Restated Certificate of Incorporation dated November
  22, 2005 filed as Exhibit 3(a) to the Registrant&#146;s Form 10-Q Report for the
  quarter ended December 31, 2005, File No. 001-08123, and incorporated herein
  by reference; Certificate of Designation, Preferences and Rights of Series B
  Junior Participating Preferred Stock dated July 24, 1998, filed as Exhibit 1
  to the Registrant&#146;s Form 8-A Registration Statement dated July 23, 1998, File
  No. 001-08123, and incorporated herein by reference.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="60" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.0pt;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="593" valign="top" style="padding:0pt .7pt 0pt 0pt;width:444.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="60" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.0pt;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="593" valign="top" style="padding:0pt .7pt 0pt 0pt;width:444.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amended and Restated By-Laws of the Registrant as
  amended through January 24, 2006, filed as Exhibit 3(b) to the Registrant&#146;s
  Form 8-K Report dated January 26, 2006, file No. 001-08123, and incorporated
  herein by reference.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="60" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.0pt;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="593" valign="top" style="padding:0pt .7pt 0pt 0pt;width:444.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="60" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.0pt;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="593" valign="top" style="padding:0pt .7pt 0pt 0pt;width:444.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amendment to Rights Agreement dated as of October
  15, 2001 between the Registrant and BankBoston, N.A., filed as Exhibit 4(a)
  to the Registrant&#146;s Form 10-Q Report for the quarter ended December 31, 2001,
  File No. 001-08123, and incorporated herein by reference; Rights Agreement
  dated as of July 24, 1998, between the Registrant and BankBoston, N.A., as
  Rights Agent, filed as Exhibit 1 to the Registrant&#146;s Form 8-A Registration
  Statement dated July 23, 1998, File No. 001-08123, and incorporated herein by
  reference.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="60" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.0pt;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="593" valign="top" style="padding:0pt .7pt 0pt 0pt;width:444.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="60" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.0pt;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5(a)</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="593" valign="top" style="padding:0pt .7pt 0pt 0pt;width:444.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Opinion of Counsel</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="60" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.0pt;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="593" valign="top" style="padding:0pt .7pt 0pt 0pt;width:444.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="60" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.0pt;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="593" valign="top" style="padding:0pt .7pt 0pt 0pt;width:444.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Registrant does not have a determination letter
  from the Internal Revenue Service (IRS) with respect to qualification of the
  Quixote Corporation Incentive Savings Plan (Plan); the Registrant undertakes
  to submit the Plan and any amendment thereto to the IRS in a timely manner
  and will make all changes required by the IRS in order to qualify the Plan.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="60" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.0pt;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="593" valign="top" style="padding:0pt .7pt 0pt 0pt;width:444.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="60" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.0pt;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23(a)</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="593" valign="top" style="padding:0pt .7pt 0pt 0pt;width:444.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consent of Grant Thornton, LLP</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="60" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.0pt;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="593" valign="top" style="padding:0pt .7pt 0pt 0pt;width:444.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="60" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.0pt;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23(b)</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="593" valign="top" style="padding:0pt .7pt 0pt 0pt;width:444.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consent of PricewaterhouseCoopers LLP</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="60" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.0pt;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="593" valign="top" style="padding:0pt .7pt 0pt 0pt;width:444.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="60" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.0pt;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23(c)</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*</font></p>
  </td>
  <td width="593" valign="top" style="padding:0pt .7pt 0pt 0pt;width:444.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consent of Joan R. Riley, Esq.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="60" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.0pt;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="593" valign="top" style="padding:0pt .7pt 0pt 0pt;width:444.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="60" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.0pt;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="593" valign="top" style="padding:0pt .7pt 0pt 0pt;width:444.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Power of Attorney</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="60" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.0pt;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="593" valign="top" style="padding:0pt .7pt 0pt 0pt;width:444.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="60" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.0pt;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99(a)</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="593" valign="top" style="padding:0pt .7pt 0pt 0pt;width:444.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Quixote Corporation Incentive Savings Plan as
  amended and restated January 1, 2006</font></p>
  </td>
 </tr>
</table>

</div>

<div style="margin:12.0pt 0pt .0001pt;page-break-after:avoid;"><hr size="1" width="160" noshade color="black" align="left" style="width:120.0pt;"></div>

<p style="margin:0pt 0pt 12.0pt 59.85pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*Not filed; incorporated in Exhibit 5(a)</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ITEM 9.&#160;&#160;&#160;&#160; UNDERTAKINGS</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
undersigned registrant hereby undertakes:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>To
file, during any period in which offers or sales are being, made, a
post-effective amendment to this registration statement:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>To
include any prospectus required by Section 10(a)(3) of the Securities Act of
1933;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>To
reflect in the prospectus any facts or events arising after the effective date
of the registration statement (or the most recent post-effective amendment
thereof) which, individually or in the aggregate,</p>


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<p style="margin:0pt 0pt 12.0pt 37.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">represent a fundamental change in the information set
forth in the registration statement.&#160;
Notwithstanding the foregoing, any increase or decrease in volume of
securities offered (if the total dollar value of securities offered would not
exceed that which was registered) and any deviation from the low or high end of
the estimated maximum offering range may be reflected in the form of prospectus
filed with the Commission pursuant to Rule 424(b) promulgated under the
Securities Act if, in the aggregate, the changes in volume and price represent
no more than a 20% change in the maximum aggregate offering price set forth in
the &#147;Calculation of Registration Fee&#148; table in the effective registration
statement;</font></p>

<p style="margin:0pt 0pt 12.0pt 37.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; To
include any material information with respect to the plan of distribution not
previously disclosed in the registration statement or any material change to
such information in the registration statement;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Provided; however,
that paragraphs (a)(1)(i) and (a)(1)(ii) do not apply if the registration
statement is on Form S-3 or Form S-8, and the information required to be
included in a post-effective amendment by those paragraphs is contained in
periodic reports filed by the registrant pursuant to Section 13 or Section
15(d) of the Securities Exchange Act of 1934 that are incorporated by reference
in the registration statement.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; That, for the purpose of determining
any liability under the Securities Act of 1933, each such post-effective
amendment shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; To remove from the registration by
means of a post-effective amendment any of the securities being registered
which remain unsold at the termination of the offering.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(4)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; That, for the purpose of determining
liability under the Securities Act of 1933 to any purchaser:</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If the registrant is relying on Rule
430B:</font></p>

<p style="margin:0pt 0pt 12.0pt 37.05pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(A)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each
prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed
to be part of the registration statement as of the date the filed prospectus
was deemed part of and included in the registration statement; and</font></p>

<p style="margin:0pt 0pt 12.0pt 37.05pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(B)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each
prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7)
as part of a registration statement in reliance on Rule 430B relating to an
offering made pursuant to Rule 415(a)(1)(i), or (vii), or (x) for the purpose
of providing the information required by section 10(a) of the Securities Act of
1933 shall be deemed to be part of and included in the registration statement
as of the earlier of the date such form of prospectus is first used after
effectiveness or the date of the first contract of sale of securities in the
offering described in the prospectus.&#160; As
provided in Rule 430B, for liability purposes of the issuer and any person that
is at that date an underwriter, such date shall be deemed to be a new effective
date of the registration statement relating to the securities in the
registration statement to which that prospectus relates, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering
thereof.&#160; <i>Provided,
however, </i>that no statement made in a registration statement or
prospectus that is part of the registration statement or made in a document
incorporated or deemed incorporated by reference into the registration
statement or prospectus that is part of the registration statement will, as to
a purchaser with a time contract of sale prior to such effective date,
supersede or modify any statement that was made in the registration statement
or prospectus that was part of the registration statement or made in any such
document immediately prior to such effective date; or</font></p>

<p style="margin:0pt 0pt 12.0pt 37.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If
the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule
424(b) as part of a registration statement relating to an offering, other than
registration statements relying on Rule 430B or other than prospectuses filed
in reliance on Rule 430A, shall be deemed to be part of and included in the
registration statement as of the date it is first used after
effectiveness.&#160; <i>Provided,
however, </i>that no statement made in a registration statement or
prospectus that is part of the registration statement or made in a document
incorporated or deemed incorporated by reference into the registration
statement or prospectus that is part of the registration statement will, as to
a purchaser with a time of contract or sale prior to such first use, supersede
or modify any statement that was made in the registration statement or
prospectus that</font></p>


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<p style="margin:0pt 0pt 12.0pt 37.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">was part of the registration statement or made in any
such document immediately prior to such date of first use.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The undersigned registrant hereby
undertakes that, for purposes of determining any liability under the Securities
Act of 1933, each filing of the registrant&#146;s annual report pursuant to Section
13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where
applicable, each filing of an employee benefit plan&#146;s annual report pursuant to
Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by
reference in the registration statement shall be deemed to be a new
registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Insofar as indemnification for
liabilities arising under the Securities Act of 1933 may be permitted to
directors, officers and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been advised that in the
opinion of the Securities and Exchange Commission such indemnification is
against public policy as expressed in the Act and is, therefore,
unenforceable.&#160; In the event that a claim
for indemnification against such liabilities (other than the payment by the
registrant of expenses incurred or paid by a director, officer or controlling
persons of the registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in connection
with the securities being registered, the registrant will, unless in the
opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it against public policy as expressed in the Act and will be
governed by the final adjudication of such issue.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The undersigned registrant hereby
undertakes that:</font></p>

<p style="margin:0pt 0pt 12.0pt 37.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; For
purposes of determining any liability under the Securities Act of 1933, the
information omitted from the form of prospectus filed as part of this
registration statement in reliance upon Rule 430A and continued in a form of
prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h)
under the Securities Act shall be deemed to be part of this registration
statement as of the time it was declared effective.</font></p>

<p style="margin:0pt 0pt 12.0pt 37.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; For
purposes of determining any liability under the Securities Act of 1933, each
post-effective amendment that contains a form of prospectus shall be deemed to
be a new registration statement relating to the securities offered therein, and
the offering of such securities at that time shall be deemed to be the initial
bona fide offering thereof.</font></p>


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<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SIGNATURES</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant certifies that it has reasonable grounds to believe that it
meets all of the requirements for filing of Form S-8 and has duly caused this
registration statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of Chicago, State of Illinois on the 28th day of
September, 2006.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
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  </td>
  <td width="49%" colspan="4" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.42%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">QUIXOTE CORPORATION</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="49%" colspan="4" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.42%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="49%" colspan="4" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.42%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="3%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:37.7%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ LESLIE J. JEZUIT</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="45%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;Leslie J. Jezuit</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="45%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;Chairman and Chief
  Executive Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt .0001pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant
to the requirements of the Securities Act of 1933, this Registration Statement
has been signed below by the following persons in the capacities and on the
dates indicated.</font></p>

<p style="margin:0pt 0pt .0001pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
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  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --><b><font size="1" style="font-size:8.0pt;font-weight:bold;">Signature</font></b></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:43.26%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Title</font></b></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.94%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="21%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:21.28%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Date</font></b></p>
  </td>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:29.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;/s/ LESLIE J. JEZUIT</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chairman, Chief Executive Officer and Director </font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">September 28, 2006</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:29.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Leslie J. Jezuit</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Principal Executive Officer)</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:29.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ DANIEL P. GOREY</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vice President, Chief
  Financial Officer, Treasurer and </font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">September 28, 2006</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:29.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Daniel P. Gorey</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director (Principal
  Financial Officer and Principal Accounting Officer)</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:29.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ JAMES H. DEVRIES</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">September 28, 2006</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:29.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">James H. DeVries</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:29.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ LAWRENCE C. MCQUADE</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">September 28, 2006</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:29.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Lawrence C. McQuade</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:29.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ DUANE M. TYLER</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">September 28, 2006</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:29.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Duane M. Tyler</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:29.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ ROBERT D. VAN ROIJEN,
  JR.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">September 28, 2006</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:29.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Robert D. van Roijen, Jr.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">II-</font><font face="Times New Roman">5</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT INDEX</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:11.92%;">
  <p align="left" style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:left;"><!-- SET mrlNoTableShading -->Exhibit No.</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.92%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="85%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:85.18%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Exhibit</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="11%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:11.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5(a)</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="85%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:85.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Opinion of Counsel</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="11%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:11.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23(a)</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="85%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:85.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consent of Grant Thornton LLP</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="11%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:11.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23(b)</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="85%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:85.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consent of PricewaterhouseCoopers LLP</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="11%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:11.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="85%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:85.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Power of Attorney</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="11%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:11.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99(a)</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="85%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:85.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Quixote Corporation Incentive Savings Plan as
  amended and restated January 1, 2006</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


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[{"type": "S-8", "sequence": "1", "filename": "a06-20405_1s8.htm", "description": "SECURITIES TO BE OFFERED TO EMPLOYEES PURSUANT TO EMPLOYEE BENEFIT PLANS", "secsgml_size_bytes": 247574}]
{"company-data": {"conformed-name": "QUIXOTE CORP", "cik": "0000032870", "assigned-sic": "3089", "irs-number": "362675371", "state-of-incorporation": "DE", "fiscal-year-end": "0630"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-137704", "film-number": "061117744"}, "business-address": {"street1": "35 E. WACKER DRIVE", "street2": "SUITE 1100", "city": "CHICAGO", "state": "IL", "zip": "60601", "phone": "3124676755"}, "mail-address": {"street1": "35 E. WACKER DRIVE", "street2": "SUITE 1100", "city": "CHICAGO", "state": "IL", "zip": "60601"}, "former-company": {"former-conformed-name": "ENERGY ABSORPTION SYSTEMS INC", "date-changed": "19800815"}}
As filed with the Securities and Exchange Commission on September 29, 2006
Registrant Statement No.
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM S-8
REGISTRATION
STATEMENT
UNDER
THE
SECURITIES ACT OF 1933
QUIXOTE
CORPORATION
(Exact name of registrant as specified in its
charter)
Delaware
36-2675371
(State of
  incorporation)
(IRS Employer
Identification
  No.)
Thirty-Five
  East Wacker Drive, Chicago, Illinois
60601
(Address of
  principal executive offices)
(Zip Code)
QUIXOTE
CORPORATION INCENTIVE SAVINGS PLAN
(as
amended and restated January 1, 2006)
(Full title of the Plan)
Joan R.
Riley
Vice
President, Secretary and General Counsel
Quixote
Corporation
Thirty-Five
East Wacker Drive
Chicago,
Illinois  60601
(Name and address of agent for service)
(312)
467-6755
(Telephone number, including area code, of agent for service)
Calculation of Registration Fee
Title of Securities to be Registered
Amount Being Registered
(1)(3)
Proposed Maximum
Offering Price Per
Share(2)
Proposed Maximum
Aggregate Offering
Price(2)
Amount of
Registration Fee
Common Stock $.01-
2
/
3
Par Value(3)
300,000 Shares
$
17.03
$
5,109,000
$
546.66
(1)
This Registration
Statement shall also cover any additional shares of Common Stock which may
become issuable under the Quixote Corporation Incentive Savings Plan by reason
of any stock dividend, stock split, recapitalization or other similar
transaction effected without receipt of consideration which results in an
increase in the number of outstanding shares of Common Stock of Quixote Corporation.
(2)
Estimated solely
for purposes of calculating the registration fee under Rule 457(h), based upon
the average of the high and low prices as reported by the NASDAQ Global Market
SM
System on September 26, 2006.
(3)
Includes the
preferred stock rights associated with the Common Stock which will be issued
for no additional consideration.
The Registrant is
registering its contribution from time to time of 300,000 shares of its Common
Stock to the Quixote Corporation Incentive Savings Plan as amended and restated
January 1, 2006 (the "Plan"), and the subsequent sale or other distribution of
these 300,000 shares to employees or other persons pursuant to the Plan. These
shares constitute the Registrant's matching contribution for employees pursuant
to the terms of the Plan.
Subject to Completion, Dated
, 2006
The
information in this prospectus is not complete and may be changed. The selling
stockholders may not sell these securities until the registration statement
filed with the Securities and Exchange Commission is effective.  This prospectus is not an offer to sell these
securities and it is not soliciting an offer to buy these securities in any
state where the offer of sale is not permitted.
PROSPECTUS
QUIXOTE
CORPORATION
300,000 Shares
of
Common Stock
The shares of common stock described in this
prospectus are being offered for sale from time to time by the selling
stockholders who acquired these shares by distribution from the Quixote Corporation
Incentive Savings Plan as amended and restated effective January 1, 2006 (the
"Plan") or by the Plan, acting at the request of the selling stockholders
pursuant to the terms of the Plan.  We
will not receive any proceeds from any sale of common stock offered pursuant to
this prospectus.
The selling stockholders (or the Plan, at their
request) may offer and sell the shares of common stock at various times and in
various types of transactions, including sales in the open market, sales in
negotiated transactions and sales by a combination of these methods.   Shares may be sold at the market price of
the common stock at the time of a sale, at prices relating to the market price
over a period of time, or at prices negotiated with the buyers of shares.  The shares may be sold through underwriters
or dealers which the selling stockholders may select.  If underwriters or dealers are used to sell
the securities, we will name them and describe their compensation in a prospectus
supplement.  For a detailed description
of the various methods by which the selling stockholders may offer and sell the
common stock described in this prospectus see the discussions entitled "Plan of
Distribution" on page 19 of this prospectus.
The selling stockholders are responsible for all
brokerage fees and commissions and similar sale-related expenses.  We are paying expenses relating to the
registration of the shares with the Securities and Exchange Commission.
Our common stock is traded on The NASDAQ Global Market
under the symbol "QUIX."  On September
26, 2006, the closing price of Quixote common stock was $17.12.
Investing in Quixote Corporation's common stock
involves risks.  See the sections
entitled "Disclosure Regarding Forward-Looking Statements" on page 3 and "Risk
Factors" beginning on page 4 of this prospectus to read about factors to
consider in connection with purchasing these shares.
Neither the Securities and Exchange Commission nor
any state securities commission has approved or disapproved these securities,
or determined if this prospectus is truthful or complete.  Any representations to the contrary is a
criminal offense.
The date of this prospectus is                , 2006
TABLE OF
CONTENTS
Page
DISCLOSURE
  REGARDING FORWARD-LOOKING STATEMENTS
3
ABOUT THIS PROSPECTUS
3
RISK
  FACTORS
4
QUIXOTE CORPORATION
10
USE
  OF PROCEEDS
12
SELLING STOCKHOLDERS
12
DESCRIPTION OF CAPITAL
  STOCK
12
PLAN OF DISTRIBUTION
19
LEGAL
  MATTERS
20
WHERE YOU CAN
  FIND MORE INFORMATION
20
INCORPORATION BY
  REFERENCE
21
DISCLOSURE
REGARDING FORWARD-LOOKING STATEMENTS
Our disclosure and analysis in this prospectus and any prospectus
supplement, including information incorporated by reference, may include
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, or the Securities Act, Section 21E of the Securities
Exchange Act of 1934, as amended, or the Exchange Act, and the Private
Securities Litigation Reform Act of 1995, that are subject to risks and
uncertainties. You can identify these statements by forward-looking words such
as "may," "will," "expect," "anticipate," "believe," "estimate," "plan" and "continue"
or similar words.  We have based these
statements on our current expectations about future events.  We make no undertaking to update these
statements or to revise them to reflect subsequent events.  Although we believe that our expectations
reflected in or suggested by our forward-looking statements are reasonable, our
actual results may differ materially from what we currently expect.  Important factors which could cause our
actual results to differ materially from the forward-looking statements in this
prospectus or in the documents that we incorporate by reference into this prospectus
include those described under "Risk Factors" and the following:
·
uncertainties related to continued federal, state
and municipal funding for highways and transportation safety, and risks related
to reductions in government expenditures;
·
the successful completion, integration and rationalization
of our acquisitions;
·
the ability to generate sufficient future cash
flows to be in compliance with our financing agreements;
·
the introduction and acceptance of our products
and services;
·
unfavorable changes in product sales mix;
·
seasonality, along with the extent and timing of
the award of large contracts;
·
the cyclical nature of our governmental markets;
·
competitive and pricing pressures;
·
increasing raw material and freight costs;
·
excess manufacturing capacity;
·
the possible impairment of goodwill, intangible
assets and other long-lived assets;
·
uncertainties relating to managing and expanding
international markets;
·
weather conditions and natural disasters;
·
acts of war;
·
general economic conditions including rising
interest rates;
·
other risks and uncertainties as may be detailed
from time to time in our public announcements and Securities and Exchange
Commission filings.
You
should carefully read this prospectus, supplements to this prospectus and the
documents that we incorporate by reference into this prospectus completely and
with the understanding that our actual future results may be materially
different from what we expect.  All
forward-looking statements attributable to us are expressly qualified by these
cautionary statements.
ABOUT
THIS PROSPECTUS
This
prospectus is part of a registration statement that we filed with the
Securities and Exchange Commission utilizing a "shelf registration"
process.  Under this shelf registration
process, the selling stockholders may, from time to time, offer and sell up to
300,000 shares of our common stock described in this prospectus.  The information in this prospectus or any
supplement may not contain all of the information that may be important to
you.  You should read the entire prospectus
or any supplement, as well as the documents incorporated by reference in the
prospectus or any supplement, before making an investment decision.
You should rely only on the information contained in this prospectus or
any supplement.  We have not authorized
any other person to provide you with different information.  If anyone provides you with different or
inconsistent information, you should not rely on it.  We are not making an offer to sell these
shares in any jurisdiction where the offer or sale is not permitted.  You should not assume that the information in
this prospectus or any supplement is accurate as of any date other than the
date on the front cover of such documents. 
Our business, financial condition, results of operations and prospects
may have changed since that date.
3
When used in this prospectus and any prospectus supplement, the terms "Quixote,"
"we," "our," "us" and "Company" refer to Quixote Corporation and its
subsidiaries.
RISK
FACTORS
Before you invest
in our shares, you should be aware that the occurrence of any of the events
described in this Risk Factors section and elsewhere in this prospectus or in a
supplement to this prospectus could have a material adverse effect on our
business, financial condition and results of operations.  You should carefully consider these risk
factors and the specific risks set forth under the caption "Risk Factors" in
any supplement to this prospectus, together with all of the other information
included in this prospectus or in a supplement to this prospectus and in
documents we incorporate by reference before you decide to purchase our
shares.  This prospectus contains
forward-looking statements that involve risks and uncertainties.
Investors are
cautioned that all forward-looking statements involve risks and uncertainties,
including those detailed in the Company's public filings with the SEC, news
releases and other communications, which speak only as of the dates of those
filings or communications.  There can be
no assurance that actual results will not differ materially from the Company's
expectations.
A decrease or delay in federal
government funding of transportation safety and highway construction and
maintenance may cause our revenues and profits to decrease.
We depend
substantially on federal, state and municipal funding for transportation
safety, highway construction and maintenance and other related infrastructure
projects. Any decrease or delay in government funding for transportation
safety, highway construction and maintenance and other related infrastructure
projects could cause our revenues and profits to decrease.
Federal government
funding for infrastructure projects is usually accomplished through highway
authorization bills, which establish funding over a multi-year period. The most
recent highway authorization bill, SAFETEA-LU, became law in August 2005, after
the prior law which authorized federal spending through September 30, 2003 was
extended at then current funding levels eleven times over almost two years.  Until the new law was passed, the
transportation safety allotment in federal and state budgets was uncertain, and
we believe this uncertainty negatively impacted spending on the products and
services offered by the Company.  The
delayed passage of the new highway funding bill adversely affected our
financial performance in fiscal year 2004 and fiscal year 2005.  Given the long sales cycle typical in our
business, we did not begin to realize the benefit of SAFETEA-LU's passage
until late fiscal 2006.
Even after federal
legislation is enacted, funding appropriations may be revised in future
congressional sessions, and federal funding for infrastructure projects may be
reduced in the future.  In addition,
Congress could pass legislation in future sessions which would divert highway
funds for other national purposes or would restrict funding for infrastructure
projects unless states comply with certain federal policies.
Constraints on state and local
government budgets may adversely affect our financial performance.
Many states reduce
spending on highways due to budget constraints given the national and local
economies.  Such budgetary constraints
adversely affect the ability of states to fund transportation, highway and
infrastructure projects, and therefore reduce the demand for our products.  Municipalities also suffer from budget
constraints that can reduce transportation safety spending.  Reduced state and municipal spending due to
budget restraints adversely affected our performance in fiscal year 2004 and
fiscal year 2005.
Downturns in the U.S. economy or
the transportation safety and highway construction industries may adversely
affect our revenues and operating results.
General economic
downturns, including downturns in the transportation safety and highway
construction industries, could result in a material decrease in our revenues
and operating results.  We believe that
the economic downturn and the related political uncertainty during fiscal years
2002 through 2005 negatively affected our expected revenue growth. Sales of our
products are sensitive to foreign, domestic and regional economies in general,
4
and in particular,
changes in government infrastructure spending. 
Many of our costs are fixed and cannot be quickly reduced in response to
decreased demand.
Sales of our products often are
subject to government testing, inspection and approval.
We frequently
supply products and services pursuant to agreements with general contractors
that have entered into contracts with federal, state or municipal government
agencies.  In some cases we enter into
contracts directly with government agencies. 
At times these contracts require engineered systems which combine our
Inform and Intersection Control products, sometimes in conjunction with our
Protect and Direct products, into complex systems which may themselves be
incorporated into other systems.  The
successful completion of our obligations under these contracts is often subject
to satisfactory testing, inspection and approval of such products and services
by a representative of the contracting agency. 
Although we endeavor to satisfy the requirements of each of these
contracts to which we are a party, no assurance can be given that the necessary
approval of our products and services will be granted on a timely basis or at
all, and that we will receive any payments due to us.  In some cases, we may be dependent on others
to complete these projects which may also delay payments to us.  Any failure to obtain these approvals and
payments may have a material adverse effect on our business and future
financial performance.
Past and
future acquisitions involve risks that could adversely affect our future
financial results
.
We have completed
seven acquisitions since 1997 and may acquire additional businesses in the
future. We may be unable to achieve the benefits expected to be realized from
our acquisitions. In addition, we may incur additional costs and our management's
attention may be diverted because of unforeseen expenses, difficulties,
complications, delays and other risks inherent in acquiring businesses,
including the following:
·
we may have difficulty integrating
the acquired businesses as planned, which may include integration of systems of
internal controls over financial reporting and other financial and
administrative functions;
·
acquisitions may divert management's
attention from our existing operations;
·
we may have difficulty in competing
successfully for available acquisition candidates, completing future
acquisitions or accurately estimating the financial effect of any businesses we
acquire;
·
we may have delays in realizing the
benefits of our strategies for an acquired business;
·
we may not be able to retain key
employees necessary to continue the operations of an acquired business;
·
acquisition costs may be met with cash
or debt, increasing the risk that we will be unable to satisfy current
financial obligations;
·
we may acquire businesses that are
less profitable or have lower profit margins than our historical profit
margins; and
·
acquired
companies may have unknown liabilities that could require us to spend
significant amounts of additional capital.
In May and December, 2003,
we made two acquisitions in the Intersection Control segment.  Integration of these businesses, combined
with reduced demand for our products adversely affected our financial
performance in fiscal 2004, 2005 and 2006. 
Given substandard performance of our Intersection Control segment, we
recorded asset impairment charges in that segment of $22,735,000 for the year
ended June 30, 2004 and $13,374,000 for the year ended June 30, 2006.  Confronted with the continued
underperformance of the Intersection Control business, on April 25, 2006, our
Board of Directors approved a restructuring plan for our Intersection Control
business that includes further rationalizing of operations and divesting
certain non-core product lines.
Management's
estimates and assumptions affect reported amounts of expenses.
Goodwill and other indefinite-lived intangible assets are tested for
impairment at least annually, and the results of such testing may adversely
affect our financial results.  We use a
third party appraisal firm to assist our determination of fair values, but the
impairment review is highly judgmental and involves the use of significant
estimates and assumptions.  These
estimates and assumptions have a significant impact on the amount of any
impairment charge recorded, and actual results may differ significantly from
the estimates and assumptions used.
5
We recognize deferred tax assets and liabilities for the expected future
tax consequences of events which are included in the financial statements or
tax returns.  In assessing the
realizability of the deferred tax assets, management makes certain assumptions
about whether the deferred tax assets will be realized.  We expect the deferred tax assets currently
recorded to be fully realizable, however there can be no assurance that an
increased valuation allowance would not need to be recorded in the future.
Our
business could be adversely affected by reduced levels of cash, whether from
operations or from bank borrowings.
Our principal sources of funds have historically been cash flows from
operations and borrowings from banks. 
Our financial performance in fiscal year 2004 adversely affected the
amount of cash flow from operations and required us to modify our bank credit
agreement in order to avoid the occurrence of events of defaults relating to
certain covenants and financial ratios. 
Amendments to the credit agreement in fiscal 2005 required us to modify
certain covenants, pledge our assets as collateral, reduce the maximum amount
of availability under the revolving credit facility to $38 million, and limit
our dividend payments.
Although we are currently in compliance with the covenants of the credit
agreement, our ability to remain in compliance in the future will depend on our
future performance and may be affected by events beyond our control.  There can be no assurance that we will
generate sufficient earnings and cash flow to remain in compliance with the credit
agreement, or that we will be able to obtain future amendments to the credit
agreement to avoid a default.  In the
event of a default, there can be no assurance that we could negotiate a new
credit agreement or that we could obtain a new credit agreement with
satisfactory terms and conditions within a reasonable time period.
If we
are unable to protect our proprietary technology from infringement or if our
technology infringes technology owned by others, then the demand for our
products may decrease or we may be forced to modify our products which could
increase our costs.
We hold numerous
patents covering technology and applications related to many of our products
and systems, and numerous trademarks and trade names registered with the U.S.
Patent and Trademark Office and in foreign countries. Our existing or future
patents or trademarks may not adequately protect us against infringements, and
pending patent or trademark applications may not result in issued patents or
trademarks. Our patents, registered trademarks and patent applications may not
be upheld if challenged, and competitors may develop similar or superior
methods or products outside the protection of our patents. This could increase
competition for our products and materially decrease our revenues. If our
products are deemed to infringe upon the patents or proprietary rights of
others, we could be required to modify the design of our products, change the
name of our products or obtain a license for the use of some of the
technologies used in our products. We may be unable to do any of the foregoing
in a timely manner, upon acceptable terms and conditions, or at all, and the
failure to do so could cause us to incur additional costs or lose expected
revenue.
Our
success depends on our management and other employees.
The single largest
factor in our ability to profitably execute our work is our ability to attract,
develop and maintain qualified personnel. 
Our success in attracting qualified people is dependent on the resources
available in individual geographic areas and the impact on the labor supply due
to general economic conditions as well as our ability to provide a competitive
compensation package and work environment. 
Leslie J. Jezuit, our Chairman and President, and Daniel P. Gorey, our
Chief Financial Officer, are of significant importance to our business and
operations and neither has an employment agreement with us. The loss of their
services may adversely affect our business. In addition, our ability to attract
and retain qualified engineers, skilled manufacturing and marketing personnel
and other professionals, either through direct hiring or acquisition of other
businesses employing such professionals, will also be an important factor in
determining our future success.
6
Difficulties
in managing and expanding in international markets could affect future growth
in these markets.
In fiscal year
2006, international sales represented approximately $21,821,000 or 14%, of our
total sales and we believe international markets could be an important source
of growth. We plan to continue to increase our presence in these markets. In
connection with any increase in international sales efforts, we need to hire,
train and retain qualified personnel in countries where language, cultural or
regulatory barriers may exist. Moreover, funding and government requirements
vary by country with respect to transportation safety.  In a number of countries there are no
governmental requirements or funding for transportation safety and we must
educate officials and demonstrate the need for and benefits of our products. In
addition, international revenues are subject to the following risks:
·
fluctuating currency exchange rates could
reduce the demand for or profitability of foreign sales by affecting the
pricing of our products;
·
the burden of complying with a wide
variety of foreign laws and regulations, including the requirements for
additional testing of our products;
·
dependence on foreign sales agents;
·
political and economic instability of
foreign governments; and
·
the
imposition of protective legislation such as import or export barriers.
We depend on principal customers.
We depend on
principal customers, however, no single customer of Quixote represents a
significant portion of total revenues. 
In fiscal 2006, approximately 11% and 9% of our consolidated revenues
resulted from sales to customers in the States of California and Texas,
respectively.  Customers may consist of
distributors, contractors, departments of transportation, state agencies, local
governments or municipalities. A change in policy in state spending could
materially affect our sales in either state. 
The loss of, or a significant reduction in, orders from these or our
other major customers could have a material adverse effect on our financial
condition and results of operations.
We are in
a competitive marketplace.
To the extent one
or more of our current or future competitors introduce products that better
address customer requirements, or are less expensive than our products, our
business could be adversely affected and we may be unable to maintain our
leadership position in certain products. 
Competition may adversely affect the selling prices and the profit
margins on our products.  We may not be
successful in developing and marketing our existing products or new products or
incorporating new technology on a timely basis or at a reduced cost.  If we are unable to timely develop and
introduce new products, or enhance existing products, or reduce costs, in
response to changing market conditions or customer requirements or demands, our
business and results of operations could be materially and adversely affected.
We have acquired
complementary businesses over the past several years and, as a part of our
strategy, may continue to acquire complementary businesses.  The gross profit margins of certain acquired
product lines are lower than our historical gross profit margin, which
adversely affects our gross profit margin. 
Given competitive conditions, we may be unable to improve our gross
profit margins for these businesses and products.
We have been
affected by increased prices for certain commodities, particularly aluminum,
steel and resin, which are a significant component of the cost of certain of
our products.  Such price increases
negatively impact our gross margin for certain products, because we have been
unable to pass along cost increases to our customers.  Increasing fuel and freight costs adversely
affected our performance in fiscal 2006. 
These trends may continue into fiscal 2007.
7
Our facilities or facilities of
our customers and suppliers could be susceptible to natural disasters.
Two of our major
facilities are located in the Southeastern U.S. 
Should a natural disaster such as a hurricane, tornado, earthquake or
flood severely damage one of our major manufacturing facilities, or damage a
major facility of one or more of our significant customers or suppliers, our
business could be materially disrupted.
Our insurance coverage could be
inadequate.
In accordance with
risk management practices, we continually re-evaluate risks, their potential
costs and the cost of minimizing them. To reduce our exposure to material
risks, we purchase insurance in certain circumstances.  We believe that we maintain adequate
insurance coverage, however, certain risks are inherent in our business and our
insurance may not be adequate to cover potential claims.  Although we maintain liability insurance, we
cannot assure that the coverage limits under these insurance programs will be
adequate to protect us against future claims, or that we can and will maintain
this insurance on acceptable terms in the future.
Acts of war could adversely
impact our business and operating results.
Acts of war
(wherever located around the world) may cause damage or disruption to our
employees, facilities, suppliers, distributors or customers, which could
significantly impact our sales, costs, expenses and financial condition.  The potential acts of war or hostility may
create many economic and political uncertainties, which could adversely affect
our business and results of operations in ways that cannot presently be
predicted.  We are uninsured for losses
and interruption caused by acts of war.
Our
quarterly operating results are likely to fluctuate, which may affect our stock
price.
Our quarterly
revenues, expenses, operating results and gross profit margins vary
significantly from quarter to quarter. 
As a result, our operating results may fall below the expectations of
securities analysts and investors in some quarters, which could result in a
decrease in the market price of our common stock. The reasons our quarterly
results may fluctuate include:
·
seasonality inherent in our
transportation safety and highway construction and maintenance business;
·
variations in profit margins
attributable to product mix;
·
changes in the general competitive
and economic conditions;
·
delays in, or uneven timing in the
delivery of, customer orders;
·
the introduction of new products by
us or our competitors; and
·
delays
in federal highway funding and budgetary restraints on state and local
government spending.
Period to period
comparisons of such items should not be relied on as indications of future
performance.
We may experience volatility in
our stock price.
The market price of our common stock may be subject to significant
fluctuations in response to various factors, including:
·
the relatively small public float of our stock;
·
quarterly fluctuations in our operating results,
as described in the prior risk factor;
·
changes in securities analysts' estimates of our
future earnings; and
·
loss of significant customers or significant
business developments relating to us or our competitors.
Our failure to meet
analysts' expectations, even if minor, could cause the market price of our
common stock to decline.  In addition,
stock markets have generally experienced a high level of price and volume
volatility, and the market prices of equity securities of many companies have
experienced wide price fluctuations not necessarily related to the operating
performance of such companies.  These
broad market fluctuations may adversely affect our common stock's market
price.  In the past, securities class
action lawsuits frequently have been instituted against
8
companies following periods of volatility in the market
price of such companies' securities.  If
any such litigation is instigated against us, it could result in substantial
costs and a diversion of management's attention and resources, which could have
a material adverse effect on our business, results of operations and financial
condition.
Certain provisions of Delaware
law, our certificate of incorporation and our stockholder rights plan have
potential anti-takeover effects.
Certain provisions
of Delaware law and of our Certificate of Incorporation and By-Laws could make a
merger, tender offer, or proxy contest involving us more difficult, even if
such events could be beneficial to the interests of our stockholders.  These provisions include:
·
Section 203 of
the Delaware General Corporation Law which prohibits us from engaging in any
business combination with any interested stockholder for a period of three
years from the date the person became an interested stockholder unless specific
conditions are met;
·
the requirement
that 60% of the stockholders entitled to vote thereon approve certain
transactions; and
·
the
existence of "blank check" preferred stock that may be issued by our board of
directors without stockholder approval on such terms as the board may
determine.
We
also have a stockholders rights plan that could make a change of control of our
Company more difficult.  See "Description
of Capital Stock".
*         
*          *
The foregoing list
is not exhaustive.  There can be no
assurance that we have correctly identified and evaluated all factors affecting
our business.  Additional risks and
uncertainties not presently known to us or that we currently believe to be
immaterial also may adversely impact us. 
Should any risks and uncertainties develop into actual events, these
developments could have material adverse effects on our business, financial
condition and results of operations.  For
these reasons, the reader is cautioned not to place undue reliance on our
forward-looking statements.
9
QUIXOTE
CORPORATION
The following
summary contains basic information about us. 
It likely does not contain all the information that is important to
you.  We encourage you to read this
entire prospectus and the documents we have referred you to, including our consolidated financial statements
and the notes thereto that are incorporated by reference into this prospectus.
Our
Business
Quixote
and its subsidiaries develop, manufacture and sell highway and transportation
safety products in both domestic and international markets.
Our three
reportable segments are: the manufacture and sale of highway and transportation
safety products which Protect and Direct; the manufacture and sale of products
and services which Inform; and the manufacture and sale of Intersection Control
products.  The Protect and Direct segment
provides solutions for improving safety on the roads either by minimizing the
severity of crashes that occur or by preventing crashes from occurring by
directing or guiding traffic.  The
primary product lines within the Protect and Direct segment include
energy-absorbing products such as crash cushions, truck-mounted attenuators,
sand-filled barrels and water-filled barriers, and directing and guiding
products such as flexible post delineators and glare screen systems.  The Inform segment provides solutions for
improving traffic flow and safety on roads and runways by providing
information.  The primary product lines
within the Inform segment include advanced sensing products which measure
distance, count and classify vehicles, and sense weather conditions, and
computerized highway advisory radio transmitting systems.  The Intersection Control segment provides
solutions for controlling intersections, including intelligent intersection
control systems.
Our business is directly affected by federal, state and municipal
government funding for transportation safety, highway construction and
maintenance, and other infrastructure projects. 
A significant part of our sales are ultimately financed by funds
provided to the states by the federal government through the federal
transportation funding bill.  The last
six-year federal bill expired on September 30, 2003 and was extended eleven
times over almost two years.  The current
bill, SAFETEA-LU, was enacted in August 2005. 
Until the new legislation was enacted, the transportation safety
allotment in federal and state budgets was uncertain.  We believe that the prolonged uncertainty
negatively impacted the sales of our products and services in fiscal years
2004, 2005 and the early part of 2006 and, as a result, adversely affected our
financial performance in those fiscal years. 
We believe that the passage of SAFETEA-LU improved that situation.  We believe we began to realize the benefit of
the bill's passage in the second half of fiscal 2006 with growth in sales across
all our segments.
In addition, many states suffered from budget constraints in fiscal years
2004 and 2005, given both national and local economies.  Such budget constraints adversely affected
the ability of the states to fund highway and infrastructure projects, and
therefore reduced the demand for our products. 
Municipalities also suffered from budget restraints that reduced
transportation safety spending.  Due to
the improvement in general economic conditions, we believe that state and
municipal budgetary conditions improved during fiscal 2006 and positively
impacted our sales growth.
Our principal executive offices are located at 35 East Wacker Drive,
Suite 1100, Chicago, Illinois 60601, and our telephone number at that address
is (312) 467-6755. Our website is located at http://www.quixotecorp.com.
Information contained in our website is not a part of this prospectus.
As of September 19, 2006, we employed
approximately 750 people.
New Developments
Given the continued underperformance of the Intersection Control
segment, we decided to restructure that segment and divest certain non-core
product lines.  On April 25, 2006, our
Board of Directors approved a restructuring plan for our Intersection Control
segment, which is comprised of U.S. Traffic Corporation (UST) and Peek Traffic
Corporation (Peek Traffic).
The Plan reduces
costs through headcount and facility reductions, as well as through the
discontinuation of non-core and low margin product lines.  The Plan also outsources non-core
manufacturing activities.  As part of the
restructuring plan, we sold the portable variable message sign, illuminated
street lighting and tunnel lighting product
10
lines in June 2006.  We are in the process of moving production of
the remaining intersection control products to our Palmetto, Florida and
Bedford, Pennsylvania facilities.  We
plan to cease production and close the facilities in Santa Fe Springs,
California and Tecate, Mexico by the end of September 2006.  We expect the restructuring plan will result
in profitability for the Intersection Control segment beginning in third
quarter of fiscal 2007 with annualized cost savings of approximately $5 to $6
million.  However, there can be no
assurance that we will achieve that level of cost savings.
See "Intersection Control Segment" at page 12.
Protect and Direct Segment
Our Protect and Direct category of products, which reduce
the severity of crashes, includes our patented highway crash cushions which
were first conceived and developed in 1969. 
These products were developed and sold in response to the high number of
fatalities and serious injuries suffered by occupants of errant vehicles in
collisions with roadside hazards, such as bridge abutments, overpass piers,
overhead sign supports, lane dividers, traffic islands and toll booths.  Since 1969, various types of highway crash
cushions have been installed in front of thousands of life-threatening roadside
hazards.  The Federal Highway Administration
(FHWA) endorses the installation of highway crash cushions as an effective
safety program.
We develop, manufacture and market lines of patented
highway crash cushion systems and other barriers which absorb and dissipate the
force of impact in collisions between vehicles and fixed roadside objects or
slow moving highway construction vehicles. 
The product lines utilize the principles of momentum transfer and
kinetic energy to safely decelerate errant vehicles.  Energy absorption or energy dissipation is
accomplished by using different combinations of water, aluminum, steel, urethane
foam systems, cardboard, plastic structures, elastometric cylinders and sand.
We also
manufacture and sell products that prevent crashes and help control the flow of
traffic by directing or guiding traveling vehicles.  These products consist of a line of flexible
sign and guide post systems (delineators) and a glare screen system.  The guide posts are used to delineate a
travel way, channel vehicles or mark the location of an object.  The guide post system features an in-ground
anchor system that permits inexpensive repair and replacement techniques.  The glare screen system is installed on top
of median barriers to eliminate the distraction of lights from oncoming
vehicles on roads.
Our products in
the Protect and Direct segment also include a crashworthy barrier arm for use
at areas such as railroad crossings, toll roads and as security for access
ways, driveways and parking lots.  In
addition, we market a FreezeFree®
anti-icing system which automatically or manually
dispenses deicing liquids in advance of ice formation on bridges, roads and
overpasses.
Inform Segment
To expand our business within the highway and
transportation safety industry, in 1998 we began acquiring companies that
manufacture intelligent transportation systems (ITS) products, which provide
information to ease congestion and improve traffic flow.
We manufacture and sell portable or permanent sensors
that record traffic volume, speed, and length classification of vehicles.  These sensors also collect, analyze and store
traffic, road surface conditions and freezing point data which can be relayed
on a real-time basis to a transportation department's base computer or control
center via telephone, cellular link, fiber optic connection or a wireless
link.  We also manufacture and market
road/runway weather information systems. 
Using a tower equipped with weather instruments and special detectors,
these systems can detect freezing conditions and provide valuable weather
information to transportation departments or airports in order to dispatch salt
trucks or automatically activate anti-icing systems.
We are a leading manufacture of highway advisory radio
(HAR) systems that broadcast traffic information using an AM radio frequency
with reception up to six miles from the unit. 
HAR systems, in connection with flashing lights and message signs,
advise drivers to tune into a particular AM station to hear messages about
traffic, road conditions and weather. 
These HAR systems can be permanent or mobile.  Our Intellizone® system is designed to
11
provide real-time information to motorists by integrating traffic and/or
weather sensors, variable message signs and computer controlled software.
Intersection Control Segment
To further expand our business within the highway and
transportation safety industry, in 2003 we began acquiring companies that
manufacture intelligent transportation system products which control
intersections.  As of April 2006, we
adopted a restructuring plan for this segment. 
After the restructuring of the product lines within this segment, its
products will include traffic controllers, traffic and pedestrian signals,
traffic uninterruptible power supply (UPS) systems, video detection equipment,
toll road monitoring systems and parking detection devices.  Traffic controllers and detectors are devices
that control traffic signal operations at intersections either with pre-set
timers or with detectors that enable the signals to change in response to
variations in traffic.  Traffic and
pedestrian signals are LED or incandescent signals for intersection operations
and pedestrian crossings which may include a numerical countdown warning before
a signal changes.  UPS systems are power
systems with battery backup that keep a lighted intersection operating either
normally or in flash-mode during a power interruption.  Video detection systems are based on one or
more cameras that allow traffic authorities to monitor or manage traffic flow
from a remote location.  A toll road
monitoring system is a data collection system able to count axles of vehicles
in order for the proper authorities to ensure the proper toll amount is
collected.
See "New Developments" at pages 10 and 11 for a
discussion of our restructuring plan.
USE OF PROCEEDS
All shares of
common stock sold pursuant to this prospectus will be sold by the selling
stockholders and Quixote will not receive any of the proceeds from such sales.
SELLING
STOCKHOLDERS
The
common stock being registered by this prospectus consists of 300,000 shares of
common stock that will be held by the Plan or by persons who acquired or will
acquire those shares from the Plan, pursuant to its terms.  The Plan is an employee benefit plan that
complies with Section 401(k) of the Internal Revenue Code.  Employees of the Company and its subsidiaries
may acquire shares of common stock pursuant to the terms of the Plan, and may
sell such shares either directly or indirectly by requesting the Plan to sell
the shares.
See "Plan of
Distribution" on page 19 of this prospectus.
DESCRIPTION
OF CAPITAL STOCK
Our authorized
capital stock consists of 30,000,000 shares of common stock, $0.01-2/3  par value, and 100,000 shares of preferred
stock, no par value per share. The following summary is qualified in its
entirety by reference to our certificate of incorporation and bylaws, copies of
which are filed as exhibits to our previous filings with the Securities and
Exchange Commission and incorporated herein by reference.
Common Stock
We are authorized
to issue 30,000,000 shares of common stock, $0.01-2/3 par value per share.  Each holder of our common stock is entitled to
one vote for each share held.  Except as
provided below under "Certain Other Anti-Takeover Matters", stockholders do not
have the right to cumulate their votes in elections of directors.  Directors are elected if they receive at
least sixty percent of all votes of shares entitled to vote.
Our common stock
is listed on The Nasdaq Global Market
SM
. 
Subject to the preferential rights of any holders of any outstanding
series of preferred stock, holders of our common stock will be entitled to
dividends on a pro rata basis upon declaration of dividends by our board of
directors.  Dividends are payable only
out of unreserved
12
and unrestricted surplus
that is legally available for the payment of dividends. Dividends that may be
declared on our common stock will be paid in an equal amount to the holder of
each share.  No pre-emptive rights are
conferred upon the holders of such stock and there are no liquidation or
conversion rights.  There are no
redemption or sinking fund provisions and there is no liability to further
calls or to assessments by us. Any determination to declare or pay dividends in
the future will be at the discretion of our board of directors and will depend
on our results of operations, financial condition, contractual or legal
restrictions and other factors deemed relevant by our board of directors. Upon
our liquidation, holders of our common stock will be entitled to a pro rata
distribution of our assets, after payment of all amounts owed to our creditors
and the preferential amounts owing with respect to any of our outstanding
preferred stock.
Preferred Stock
The rights,
preferences and privileges of holders of common stock are subject to, and may
be adversely affected by, the rights of the holders of shares of any series of
preferred stock that we may designate and issue in the future.
Our certificate of
incorporation provides for the issuance of up to 100,000 shares of preferred
stock. Our board of directors will have the authority, without further action
by the stockholders, to issue up to 100,000 shares of preferred stock in one or
more series and to designate the rights, preferences, privileges and
restrictions of each such series. The issuance of preferred stock could have
the effect of restricting dividends on the common stock, diluting the voting
power of the common stock, impairing the liquidation rights of the common stock
or delaying or preventing a change in control without further action by the
stockholders.  Subject to the rights of
the holders of any series of preferred stock, the number of authorized shares
of any series of preferred stock may be increased or decreased (but not below
the number of shares thereof then outstanding) by resolution adopted by our
board of directors.
In connection with
a previous stockholder rights plan, we authorized 10,000 shares of Series A
preferred stock, none of which was issued. 
At present, 10,000 shares of Series B junior participating preferred
stock have been authorized and are reserved for issuance under the rights plan
as described below. We have no plans to issue any other shares of preferred
stock.
Rights Plan
Effective June 30,
1998, our board of directors adopted a stockholder rights plan.  To implement the rights plan, our board of
directors declared a dividend distribution of one right for each outstanding
share of common stock, to shareholders of record at the close of business on
July 14, 1998, and for each share of common stock issued between July 14, 1998
and the distribution date.  When exercisable,
each right will entitle the registered holder to purchase from us a unit
consisting of one one-thousandth of a share of Series B junior participating
preferred stock, no par value per share, at a purchase price of $40.00, subject
to adjustment.  The description and terms
of the rights are set forth in a rights agreement between us and EquiServe
Trust Company, N.A. (n/k/a Computershare Trust Company N.A.) as rights agent,
dated as of July 24, 1998, a copy of which is attached as Exhibit 1 to our Form
8-A Registration Statement, File No. 001-08123, filed with the Securities and
Exchange Commission on July 23, 1998. 
This summary description does not purport to be complete and is
qualified in its entirety by reference to the rights agreement.
Common
Stock Certificates Representing Right.
Initially,
the rights will be evidenced by Quixote common stock certificates representing
shares then outstanding, and no separate certificates for the rights will be
distributed.  The rights will be
exercisable and transferable apart from our common stock and a distribution
date will occur upon the earliest of (1) ten days following the stock
acquisition date, which is a public announcement that a person or group of
affiliated or associated persons (an acquiring person) has acquired, or
obtained the right to acquire, beneficial ownership of 15% or more of our
outstanding common stock and (2) ten business days following the commencement
of a tender offer or exchange offer that would result in the beneficial
ownership by a person or group of 20% or more of our outstanding common stock.
Until the
distribution date, (1) the rights will be evidenced by Quixote common stock
certificates and will be transferred with and only with such common stock
certificates, (2) new common stock certificates issued after
13
July 14, 1998 will
contain a notation incorporating the rights agreement by reference, and (3) the
surrender for transfer of any certificates for common stock outstanding will
also constitute the transfer of the rights associated with the common stock
represented by such certificate.
Issuance
of Rights Certificates.
As
soon as practicable following the distribution date, separate certificates
representing only rights shall be mailed to the holders of record of our common
stock as of the close of business on the distribution date, and such separate
rights certificates alone shall represent such rights from and after the
distribution date.  Except as otherwise
determined by our board of directors, only shares of our common stock issued
before the distribution date will be issued with rights.
Expiration
of Rights.
The
rights are not exercisable until the distribution date and will expire at the
close of business on July 24, 2008, unless earlier redeemed or exchanged by us
as described below.
Exercise
of Rights.
If any
person becomes the beneficial owner of 15% or more of the then-outstanding
shares of our common stock (except pursuant to an offer for all outstanding
shares of our common stock determined by our board of directors who are not
officers of Quixote and who are not representatives, nominees, affiliates or
associates of an acquiring person or adverse person
to
be fair to and otherwise in the best interests of us and our shareholders), or
our board of directors declares any individual or entity (alone or together
with its affiliates and associates as defined in Rule 12b-2 of the Securities
and Exchange Act of 1934, as amended) owning at least 10% of the
then-outstanding shares of our common stock to be an adverse person (as defined
in the rights agreement), each holder of a right will thereafter have the right
to receive, upon exercise thereof, the number of shares of our common stock
(or, in certain circumstances, cash, property, or other securities of Quixote
or a reduction in the purchase price) having a value equal to two times the
exercise price of the right. 
Notwithstanding any of the foregoing, following the occurrence of either
event described above, all rights that are, or (under certain circumstances
specified in the rights agreement) were, beneficially owned by any acquiring
person will be void.  The rights are not,
however, exercisable following the occurrence of the event set forth above
until such time as the rights are no longer redeemable by us, as described
below.  Further, rights generally are
exercisable only after the effectiveness of a registration statement covering
the underlying shares of our common stock under the Securities Act of 1933, as
amended.
For example, at an
exercise price of $40.00, each right not owned by an acquiring person or an
adverse person (or by certain related parties) following an event set forth in
the preceding paragraph would entitle its holder to purchase $80.00 worth of
common stock (or other consideration, as noted above) for $40.00.  Assuming that the common stock had a
per-share market value of $20.00 at such time, the holder of each valid right
would be entitled to purchase four shares of our common stock for $40.00.
If at any time
following the stock acquisition date or the date on which an individual or
entity is declared an adverse person pursuant to the rights agreement, (1) we
are acquired in a merger or other business combination transaction in which we
are not the surviving corporation (other than pursuant to a qualified offer as
described above), or (2) more than 50% of our assets or earning power is sold
or transferred (each of such events is referred to as a "Section 13 Event"),
then each holder of a right (except rights that have been previously voided, as
set forth above) shall thereafter have the right to receive, upon exercise,
common stock of the acquiring company having a value equal to two times the
exercise price of the right.  If the
rights cannot be exercised for common stock of the acquiring company as set
forth above, rights holders will be entitled to put the rights to the acquiring
company for cash equal to the exercise price of the rights (i.e., at a 50%
discount).  The events described in this
paragraph and in the second preceding paragraph are referred to as the
triggering events.
Adjustments
to Prevent Dilution.
The purchase price payable, and the number of units of preferred stock
or other securities or property issuable, upon exercise of the rights are
subject to adjustment from time to time to prevent dilution (1) in the event of
a stock dividend on, or a subdivision, combination, or reclassification of, the
preferred stock, (2) if holders of the preferred stock are granted certain
rights or warrants to subscribe for preferred stock or convertible securities
at less than the current market price of the preferred stock, or (3) upon the
distribution to holders of the preferred stock of evidences of indebtedness or
assets (excluding regular quarterly cash dividends) or of subscription rights
or warrants (other than those referred to above).
14
With certain
exceptions, no adjustment in the purchase price will be required until
cumulative adjustments amount to at least 1% of the purchase price.  No fractional units of preferred stock will
be issued and, in lieu thereof, an adjustment in cash will be made based on the
market price of the preferred stock on the last trading date before the date of
exercise.
Redemption
of Rights.
At any
time until ten days following the stock acquisition date (or such later date as
our board of directors may determine), we may redeem the rights in whole, but
not in part, at a price of $.01 per right, payable in cash, or shares of common
stock or other consideration deemed appropriate by our board of directors.  Immediately upon the action of our board of
directors ordering redemption of the rights, the rights will terminate and the
only right of the holders of rights will be to receive the $.01 redemption
price.
No
Stockholder Rights Before Exercise.
Until a right is exercised, the holder
thereof, as such, will have no rights as a stockholder of Quixote, including
the right to vote or to receive dividends. While the distribution of the rights
will not be taxable to stockholders or to us, stockholders may, depending upon
the circumstances, recognize taxable income if the rights become exercisable
for common stock (or other consideration) or for common stock of an acquiring
company as set forth above.
Amendment
of Rights Agreement.
Any
of the provisions of the rights agreement may be amended by our board of
directors before the distribution date. After the distribution date, the
provisions of the rights agreement may be amended by our board of directors to
cure any ambiguity, to correct inaccuracies and inconsistencies, to make changes
that do not adversely affect the interests of holders of rights (excluding the
interests of any acquiring person or an adverse person or any of their
affiliates or associates), or to shorten or lengthen any time period under the
rights agreement; however, no amendment to adjust the time period governing
redemption shall be made at such time as the rights are not redeemable.
Anti-takeover
Effects
.  The
rights have certain anti-takeover effects. 
The rights will cause substantial dilution to a person or group that
attempts to acquire Quixote in a manner which causes the rights to become
discount rights unless the offer is conditional on a substantial number of
rights being acquired.  The rights,
however, should not affect any prospective offeror willing to make an offer at
a fair price and otherwise in the best interests of Quixote and its
stockholders as determined by a majority of the directors who are not
affiliated with the person making the offer, or willing to negotiate with the
board of directors.  The rights should
not interfere with any merger or other business combination approved by the
board of directors since the board of directors may, at its option, at any time
until ten business days following the stock acquisition date redeem all but not
less than all the then outstanding rights at the redemption price.
Certificate
Of Incorporation Provisions Requiring Supermajority Approval Of Certain Actions
Our certificate of
incorporation provides that holders of at least sixty percent (60%) of our issued
and outstanding shares must agree to:
·
amend our certificate of
incorporation;
·
adopt or approve any agreement or
plan of merger or consolidation or any transaction including a merger of
consolidation of Quixote;
·
elect directors;
·
transfer all or substantially all of
our property and assets; and
·
adopt
or approve a plan of liquidation or dissolution.
Limitation of Liability and
Indemnification Matters
Our certificate of
incorporation provides that a director of Quixote will not be liable to Quixote
or its stockholders for monetary damages for breach of fiduciary duty as a
director, except in certain cases where liability is mandated by the Delaware
General Corporation Law. Our by-laws provide for indemnification, to the
fullest extent permitted by law, of any person made or threatened to be made a
party to any action, suit or proceeding by reason of the fact that such person
is or was a director or officer of Quixote, or is or was a director of a
subsidiary of Quixote, or, at the request of Quixote, serves or served as a
director or officer of or in any other capacity for, or in
15
relation to, any other
enterprise, against all expenses, liabilities, losses and claims actually
incurred or suffered by such person in connection with the action, suit or proceeding.
Our by-laws also provide that, to the extent authorized from time to time by
our board of directors, Quixote may provide to any one or more employees and
other agents of Quixote or any subsidiary or other enterprise, rights of
indemnification and to receive payment or reimbursement of expenses, including
attorneys' fees, that are similar to the rights conferred by the by-laws on
directors and officers of Quixote or any subsidiary or other enterprise.
Section 203 of the Delaware
General Corporation Law
We are subject to
the provisions of Section 203 of the Delaware General Corporation Law. In
general, Section 203 prohibits a publicly held Delaware corporation from
engaging in a "business combination" with an "interested stockholder" for a
period of three years after the date of the transaction in which the person
became an interested stockholder, unless the business combination is approved
in a prescribed manner. A "business combination" includes a merger, asset sale
or a transaction resulting in a financial benefit to the interested
stockholder. An "interested stockholder" under Section 203 is a person who,
together with affiliates and associates, owns (or, in certain cases, within
three years prior, did own) 15% or more of the corporation's outstanding voting
stock. Under Section 203, a business combination between Quixote and a Section
203 interested stockholder is prohibited unless it satisfies one of the
following conditions:
·
prior
to the time the stockholder became a Section 203 interested stockholder, our
board of directors must have previously approved either the business
combination or the transaction that resulted in the stockholder becoming a
Section 203 interested stockholder;
·
on
consummation of the transaction that resulted in the stockholder becoming a
Section 203 interested stockholder, the Section 203 interested stockholder
owned at least 85% of our voting stock outstanding at the time the transaction
commenced (excluding, for purposes of determining the number of shares
outstanding, shares owned by persons who are directors and officers); or
·
the
business combination is approved by our board of directors and authorized at an
annual or special meeting of the stockholders by the affirmative vote of at
least 66 2/3% of the outstanding voting stock which is not owned by the Section
203 interested stockholder.
Certain Other Anti-Takeover
Matters
Business
Combination and Limitations in our Certificate of Incorporation
.  In addition to the requirements of Section
203 described above, our certificate of incorporation requires the affirmative
vote of the holders of at least 60% of our outstanding voting stock not owned
by an interested stockholder (as defined below), for the approval of certain
business combinations and certain other transactions with an interested
stockholder unless certain minimum price and procedural requirements are met
and for the amendment or repeal of these provisions.  An "interested stockholder" is defined by our
certificate of incorporation as any person or entity that either (i)
beneficially owns 5% or more of our outstanding voting stock, (ii) is an
affiliate of Quixote and, at any time within the two years prior to the date
the determination is made, was the beneficial owner of 5% or more of our voting
stock or (iii) is the assignee of, or otherwise succeeds to, shares
beneficially owned by an interested stockholder during the two years prior to
the date the determination is made (other than as a result of a public offering
under the Securities Act of 1933).  This
super-majority approval would not be required if (1) the business combination
has been approved by a majority of disinterested directors (being those
directors who are not affiliated with the interested stockholder and who were
directors prior to the time the interested stockholder became an interested
stockholder) or (2) all following conditions are satisfied:  (a) the cash or fair market value of the
consideration to be received per share by holders of the common stock is not
less than the higher of (i) the highest price paid for any common stock by any
person who is an interested stockholder during the two years prior to the
announcement of the proposed business combination or in the transaction in
which such person became an interested stockholder (whichever is higher) or
(ii) the price of our common stock on the announcement date or the date on
which the interested stockholder became an interested stockholder (whichever is
higher); (b) the consideration to be received by holders of a particular class
of outstanding voting stock shall be in cash or in the same form as the
interested stockholder has previously paid for shares of such class of voting
stock; (c) after becoming an interested stockholder and prior to consummation
of such business combination, (i) there has been no reduction in dividends, or
an
16
effective reduction in
the number of common shares outstanding, unless approved by the board, (ii)
such interested stockholder shall not have become the beneficial owner of any
additional shares of common stock except as part of the transaction which
resulted in such stockholder becoming an interested stockholder and (iii) the
interested stockholder shall not have received the benefit, directly or
indirectly (except proportionately as a stockholder), of any loans or other
financial assistance provided by us, or made any major change in our equity
capital structure; and (d) if such proposal otherwise requires stockholder
approval, a proxy statement responsive to the requirements of the Securities
Exchange Act of 1934, whether or not we are subject to such requirements, shall
be mailed to our stockholders for the purpose of soliciting stockholder
approval of such business combination.
Cumulative
Voting Triggered by 60% Stockholder
.  The certificate of incorporation also
provides that in any election of directors on or after the date on which any
person becomes the beneficial holder of 60% of our outstanding voting stock,
and until such time as no 60% stockholder any longer exists:
·
there
shall be cumulative voting for the election of directors so that any holder of
shares of voting stock entitled to vote in such election may cumulate such
stockholder's votes and give one candidate a number of votes equal to the
number of directors to be elected multiplied by the number of votes to which
stockholder's shares are entitled, or distribute such stockholder's votes on
the same principle among as many candidates as such stockholder sees fit; and
·
any
person who is the beneficial owner of shares of voting stock with a market
price of $100,000 or more shall have the right to nominate one or more
candidates for election to the board of directors and such candidates shall be
entitled to include in any proxy statement or other communication with respect
to such election to be sent to the holders of shares of voting stock during
such period, at our expense, descriptions and other statements of such
candidates which shall receive equal space, coverage and treatment as is
received by candidates nominated by the board of directors or our management.
Our certificate of
incorporation and by-laws include a number of other provisions that may have
the effect of encouraging persons considering unsolicited tender offers or
other unilateral takeover proposals to negotiate with our board of directors
rather than pursue non-negotiated takeover attempts. These provisions include:
Classified
Board of Directors
. 
Our certificate of incorporation provides for a board of directors that
consists of three to nine members divided into three classes, with one class to
be elected each year to serve for a three-year term. As a result, at least two
annual meetings of stockholders may be required for the stockholders to change
a majority of our board of directors. In addition, the stockholders can only remove
directors by the affirmative vote of the holders of not less than 75% of the
outstanding shares of our capital stock entitled to vote in the election of
directors. Vacancies on our board of directors may be filled only by our board
of directors. The classification of directors and the inability of stockholders
to remove directors without a supermajority vote and to fill vacancies on the
board of directors will make it more difficult to change the composition of our
board of directors, but will promote a continuity of existing management.
No
Written Consent of Stockholders; Limitations on Call of Special Meetings
.  Our certificate of incorporation requires all
stockholder actions to be taken by a vote of the stockholders at an annual or
special meeting, and does not permit our stockholders to act by written
consent, without a meeting.  Our bylaws
provide that only our chairman, our president or a majority of our board may
call a special stockholders' meeting.
Supermajority
Approval of Amendment of Charter
.  Our certificate of incorporation requires the
approval of not less than 65% of our outstanding voting stock to amend the
provisions of the certificate of incorporation which provide for a classified
board, limit stockholder actions by consent or by the calling of a special
meeting of stockholders and business combinations with an interested
shareholder.   Those provisions will make
it more difficult to dilute the anti-takeover effects of our certificate of
incorporation.
Blank
Check Preferred Stock
. 
Our certificate of incorporation provides for 100,000 authorized shares
of preferred stock. The existence of authorized but unissued shares of
preferred stock may enable the board of directors to render more difficult or
to discourage an attempt to obtain control of Quixote by means of a merger,
tender offer, proxy contest or otherwise. For example, if in the due exercise
of its fiduciary obligations, the board of directors
17
were to determine that a
takeover proposal is not in the best interests of Quixote, the board of
directors could cause shares of preferred stock to be issued without
stockholder approval in one or more private offerings or other transactions
that might dilute the voting or other rights of the proposed acquiror or
insurgent stockholder or stockholder group. In this regard, the certificate of
incorporation grants our board of directors broad power to establish the rights
and preferences of authorized and unissued shares of preferred stock. The
issuance of shares of preferred stock could decrease the amount of earnings and
assets available for distribution to holders of shares of common stock and
nonvoting common stock. The issuance may also adversely affect the rights and
powers, including voting rights, of such holders and may have the effect of
delaying, deterring or preventing a change in control of Quixote. The board of
directors currently does not intend to seek stockholder approval prior to any
issuance of shares of preferred stock, unless otherwise required by law.
Listing
Our common stock
is listed on The Nasdaq Global Market
SM
.
Transfer Agent
The transfer agent
for our common stock is Computershare Trust Company, N.A.
18
PLAN OF DISTRIBUTION
The
selling stockholders, or the Plan at the request of the selling stockholders,
may from time to time sell the shares of common stock directly to purchasers on
The Nasdaq Global Market
SM
(or on any other national securities exchange
where the shares of common stock may be trading) or other over-the-counter
market at prices and at terms then prevailing or at prices related to the then
current market price or in negotiated transactions.  These shares of common stock may be sold by
one or more of the following:
·
a block
trade in which the broker or dealer will attempt to sell shares as agent but
may position and resell a portion of the block as principal to facilitate the
transaction;
·
purchases by
a broker or dealer as principal and resale by a broker or dealer for its
account using this prospectus;
·
through the
writing of options;
·
ordinary
brokerage transactions in which the broker does not solicit purchasers and
transactions in which the broker does solicit purchasers;
·
transactions
directly with a market maker; and
·
in privately
negotiated transactions not involving a broker or dealer.
Each
sale may be made either at market prices prevailing at the time of the sale, at
negotiated prices, at fixed prices which may be changed, or at prices related
to prevailing market prices.
The
selling stockholders will act independently of Quixote in making decisions with
respect to the timing, manner and size of each sale.
Brokers
or dealers engaged by any of the selling stockholders to sell the shares may
arrange for other brokers or dealers to participate.  Brokers or dealers engaged to sell the shares
will receive compensation in the form of commissions or discounts in amounts to
be negotiated before each sale and which may be in excess of customary
discounts or commissions.  These brokers
or dealers and any other participating brokers or dealers may be determined to
be underwriters within the meaning of the Securities Act of 1933.  We will receive no proceeds from any resales
of the shares offered by this prospectus, and we anticipate that the brokers or
dealers, if any, participating in the sales of the shares will receive their
usual and customary selling commissions.
Some
persons participating in this offering may engage in transactions that
stabilize, maintain or otherwise affect the price of the securities, including
the entry of stabilizing bids or syndicate covering transactions or the
imposition of penalty bids.  The selling
stockholders and any other person participating in a distribution will be
subject to applicable provisions of the Exchange Act and the rules and
regulations thereunder including Regulation M. 
This regulation may limit the timing of purchases and sales of any of
the securities by the selling stockholders and any other person.  The anti-manipulation rules under the
Exchange Act may apply to sales of securities in the market and to the activities
of the selling stockholders and their affiliates.  Furthermore, Regulation M of the Exchange Act
may restrict the ability of any person engaged in the distribution of the
securities to engage in market-making activities with respect to the particular
securities being distributed for a period of up to five business days before
the distribution.  All of the foregoing
may affect the marketability of the securities and the ability of any person or
entity to engage in market-making activities with respect to the securities.
The
selling stockholders may enter into hedging transactions.  Persons with whom they enter into hedging
transactions may engage in short sales of our common stock.  The selling stockholders may engage in short
sales of our common stock and transactions involving options, swaps,
derivatives and other transactions involving our securities or its investments
in those securities, and may sell and deliver the shares covered by this
prospectus under agreements to undertake these transactions or in settlement of
securities loans.  These transactions may
be entered into with broker-dealers or other financial institutions that may
resell those shares.  The selling stockholders
may pledge their shares to secure borrowings. 
Upon delivery of the shares or a default by a selling stockholder, the
broker-dealer or financial institution may offer and sell the pledged shares.
Selling
stockholders may resell all or a portion of their shares in open market
transactions in reliance upon available exemptions under the Securities Act
including in reliance upon Rule 144 under the Securities Act, provided they
meet the criteria and conform to the requirements of one of these
exemptions.  The selling stockholders may
decide not to sell all or a portion of the shares offered under this
prospectus.
19
A selling
stockholder may from time to time pledge or grant a security interest in some
or all of the common stock owned by them and, if they default in the
performance of their secured obligations, the pledgees or secured parties may
offer and sell the shares of common stock from time to time under this
prospectus, or under an amendment to this prospectus under Rule 424(b)(3) or
other applicable provision of the Securities Act of 1933 amending the list of
selling stockholders to include the pledgee, transferee or other successors in
interest as selling stockholders under this prospectus.
To comply with the
securities laws of some states, if applicable, the shares will be sold in those
states only through brokers or dealers. 
The shares may not be sold in some states unless they have been
registered or qualified for sale in those states or an exemption from
registration or qualification is available and is complied with.
If necessary, the
specific shares of our common stock to be sold, the name of the selling
stockholder, the purchase and public offering prices, the names of any agent,
dealer or underwriter, and any applicable commissions or discounts will be
disclosed in an accompanying prospectus supplement or, if appropriate, a
post-effective amendment to the registration statement of which this prospectus
is a part.
We will bear all
expenses of the offering of the common stock that is offered in this prospectus
including without limitation all filing, registration and qualification,
printing, legal and accounting fees, except that the selling stockholders will
pay any applicable underwriting commissions and expenses, brokerage fees and
transfer taxes, and the fees and disbursements of their counsel and experts.
The selling
stockholders are not restricted as to the price or prices at which they may
sell the shares of our common stock offered under this prospectus. Sales of
shares at less than the market price may depress the market price of our stock.
Moreover, the selling stockholders are not restricted as to the number of
shares which may be sold at any one time, and it is possible that a significant
number of shares could be sold at the same time which may also depress the
market price of our stock.
LEGAL MATTERS
The validity of
the shares of common stock offered pursuant to this prospectus will be passed
upon by Joan R. Riley, Esq., General Counsel of Quixote.  Ms. Riley beneficially owns, or has rights to
acquire under Quixote's employee benefit plans, an aggregate of less than 2% of
Quixote's common stock.
WHERE YOU CAN FIND MORE INFORMATION
We file annual,
quarterly and special reports, proxy statements, and other information with the
Securities and Exchange Commission ("Commission").  You may read and copy any materials we file
with the Commission at the Commission's public reference room at 450 Fifth
Street, N.W., Washington, D.C. 20549. Please call the Commission at
1-800-SEC-0330 for more information on its public reference rooms. The
Commission also maintains an Internet Website at http://www.sec.gov that
contains reports, proxy and information statements, and other information
regarding issuers that file electronically with the Commission.
We maintain an
internet website http://www.quixotecorp.com, at which you can access our annual
report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form
8-K, and amendments to those reports filed pursuant to Section 13(a) or 15(d)
of the Exchange Act.  We make those filings
available on our website as soon as reasonably practicable after such material
is filed, or furnished, to the Securities and Exchange Commission.
We have filed a
registration statement on Form S-8 to register with the Commission the
securities described herein.  This
prospectus is a part of that registration statement and constitutes a
prospectus of Quixote.  As allowed by
Commission rules, this prospectus does not contain all the information that can
be found in the registration statement or the exhibits to the registration
statement.
20
INCORPORATION BY REFERENCE
The Commission
allows us to "incorporate by reference" the information we file with them,
which means that we can disclose important information to you by referring you
to those documents. The information incorporated by reference is considered to
be a part of this prospectus, and later information that we file with the
Commission will automatically update and supersede this information.  In all cases, you should rely on the later
information over comparable but earlier dated information included in this
prospectus. We incorporate by reference the documents listed below and any
future filings we make with the Commission under Sections 13(a), 13(c), 14 or
15(d) of the Securities Exchange Act of 1934, as amended:
·
Annual Report on Form 10-K for the year ended
June 30, 2006 (including information specifically incorporated by reference
into our Form 10-K from our definitive Proxy Statement) filed with the
Commission on September 13, 2006.
·
All documents subsequently filed by Quixote
pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Securities Exchange Act
of 1934, as amended, shall be deemed to be incorporated by reference in this
prospectus and to be part hereof from the date of filing of such documents.
·
All documents filed by Quixote after the date of
filing the initial registration statement on Form S-8, of which this
prospectus is a part, and prior to the effectiveness of such registration
statement pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Securities
Exchange Act of 1934, as amended, shall be deemed to be incorporated by
reference into this prospectus and to be part hereof from the date of filing of
such documents.
On request we will provide, at no cost to each person, including any
beneficial owner who receives a copy of this prospectus, a copy of any or all
of the documents incorporated in this prospectus by reference.  We will not provide exhibits to any such
documents, however, unless such exhibits are specifically incorporated by
reference into those documents.  Written
or telephone requests for such copies should be addressed to Quixote's
executive offices located at 35 East Wacker Drive, Chicago, Illinois 60601,
Attention: Corporate Secretary, telephone number (312) 467-6755.
21
Quixote
Corporation
300,000 Shares
of
Common
Stock
Prospectus
,
2006
PART II
INFORMATION
REQUIRED IN THE REGISTRATION STATEMENT
ITEM 3.     INCORPORATION OF DOCUMENTS BY REFERENCE
Quixote
Corporation (the "Company") hereby incorporates into this Registration
Statement by reference the following documents filed with the Securities and
Exchange Commission (the "Commission") (File No. 001-08123):
(a)   The Company's Annual Report
on Form 10-K filed pursuant to Section 13(a) of the Securities Exchange Act of
1934 as amended (the "Securities Exchange Act") for the fiscal year ended June
30, 2006 (including information specifically incorporated by reference into our
form 10-K Report from our Proxy Statement for the annual meeting of stockholders
on November 16, 2006) filed with the Commission on September 13, 2006; and
(b)   The description of the
Common Stock of the Company contained in the registration statement filed by
the Company under the Securities Exchange Act, including any amendment or report
filed for the purpose of updating such description.
All documents filed by the Company pursuant to Section 13(a), 13(c), 14
or 15(d) of the Securities Exchange Act subsequent to the date of this
Registration Statement and prior to the filing of a post-effective amendment
which indicates that all securities offered hereby have been sold or which
deregisters all securities remaining unsold, shall be deemed to be incorporated
by reference herein and to be a part hereof from the date of the filing of such
reports and documents.  Any statement
contained in a document incorporated herein by reference shall be deemed to be
modified or superseded for purposes of this Registration Statement to the
extent that a statement contained herein or in any other subsequently filed
document which also is incorporated by reference herein modifies or supersedes
such statement.  Any such statement so
modified or superseded shall not be deemed, except as so modified or
superseded, to constitute a part of this Registration Statement.
ITEM 5.     INTERESTS OF NAMED EXPERTS AND COUNSEL
The validity of
the shares of Common Stock being registered pursuant to this Registration
Statement has been passed upon by Joan R. Riley, Esq., Vice President,
Secretary and General Counsel of the Company. 
Ms. Riley beneficially owns or has rights to acquire under Quixote's
employee benefit plans an aggregate of less than 2% of the shares of Common
Stock of the Company.
ITEM 6.     INDEMNIFICATION OF OFFICERS AND DIRECTORS
The Company is
subject to the Delaware General Corporation Law.  Delaware law provides that officers and
directors may receive indemnification from their corporations for certain
actual or threatened lawsuits.  Delaware
law sets out the standard of conduct which the officers and directors must meet
in order to be indemnified, the parties who are to determine whether the
standard has been met, and the types of expenditures which will be
indemnified.  Delaware law further
provides that a corporation may purchase indemnification insurance providing
indemnification for the officers and directors whether or not the corporation
would have the power to indemnity them against such liability under the
provisions of the Delaware law.
The Company has
adopted a provision within its By-Laws which provides that the Company will
indemnify its officers and directors to the full extent permitted by Delaware
law.  Further, the Company is covered
II-
1
by insurance which will
reimburse it for certain amounts it is obligated to pay in lawsuits involving
officers and directors serving in such capacities in which the damages,
judgments, settlements, costs, charges or expenses incurred in connection with
the defense of the action, suit or proceeding are reimbursable pursuant to law.
ITEM 8.     EXHIBITS
4(a)
Restated Certificate of Incorporation dated November
  22, 2005 filed as Exhibit 3(a) to the Registrant's Form 10-Q Report for the
  quarter ended December 31, 2005, File No. 001-08123, and incorporated herein
  by reference; Certificate of Designation, Preferences and Rights of Series B
  Junior Participating Preferred Stock dated July 24, 1998, filed as Exhibit 1
  to the Registrant's Form 8-A Registration Statement dated July 23, 1998, File
  No. 001-08123, and incorporated herein by reference.
(b)
Amended and Restated By-Laws of the Registrant as
  amended through January 24, 2006, filed as Exhibit 3(b) to the Registrant's
  Form 8-K Report dated January 26, 2006, file No. 001-08123, and incorporated
  herein by reference.
(c)
Amendment to Rights Agreement dated as of October
  15, 2001 between the Registrant and BankBoston, N.A., filed as Exhibit 4(a)
  to the Registrant's Form 10-Q Report for the quarter ended December 31, 2001,
  File No. 001-08123, and incorporated herein by reference; Rights Agreement
  dated as of July 24, 1998, between the Registrant and BankBoston, N.A., as
  Rights Agent, filed as Exhibit 1 to the Registrant's Form 8-A Registration
  Statement dated July 23, 1998, File No. 001-08123, and incorporated herein by
  reference.
5(a)
Opinion of Counsel
(b)
The Registrant does not have a determination letter
  from the Internal Revenue Service (IRS) with respect to qualification of the
  Quixote Corporation Incentive Savings Plan (Plan); the Registrant undertakes
  to submit the Plan and any amendment thereto to the IRS in a timely manner
  and will make all changes required by the IRS in order to qualify the Plan.
23(a)
Consent of Grant Thornton, LLP
23(b)
Consent of PricewaterhouseCoopers LLP
23(c)
*
Consent of Joan R. Riley, Esq.
24
Power of Attorney
99(a)
Quixote Corporation Incentive Savings Plan as
  amended and restated January 1, 2006
*Not filed; incorporated in Exhibit 5(a)
ITEM 9.     UNDERTAKINGS
(a)
The
undersigned registrant hereby undertakes:
(1)
To
file, during any period in which offers or sales are being, made, a
post-effective amendment to this registration statement:
(i)
To
include any prospectus required by Section 10(a)(3) of the Securities Act of
1933;
(ii)
To
reflect in the prospectus any facts or events arising after the effective date
of the registration statement (or the most recent post-effective amendment
thereof) which, individually or in the aggregate,
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2
represent a fundamental change in the information set
forth in the registration statement. 
Notwithstanding the foregoing, any increase or decrease in volume of
securities offered (if the total dollar value of securities offered would not
exceed that which was registered) and any deviation from the low or high end of
the estimated maximum offering range may be reflected in the form of prospectus
filed with the Commission pursuant to Rule 424(b) promulgated under the
Securities Act if, in the aggregate, the changes in volume and price represent
no more than a 20% change in the maximum aggregate offering price set forth in
the "Calculation of Registration Fee" table in the effective registration
statement;
(iii)          To
include any material information with respect to the plan of distribution not
previously disclosed in the registration statement or any material change to
such information in the registration statement;
Provided; however,
that paragraphs (a)(1)(i) and (a)(1)(ii) do not apply if the registration
statement is on Form S-3 or Form S-8, and the information required to be
included in a post-effective amendment by those paragraphs is contained in
periodic reports filed by the registrant pursuant to Section 13 or Section
15(d) of the Securities Exchange Act of 1934 that are incorporated by reference
in the registration statement.
(2)           That, for the purpose of determining
any liability under the Securities Act of 1933, each such post-effective
amendment shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.
(3)           To remove from the registration by
means of a post-effective amendment any of the securities being registered
which remain unsold at the termination of the offering.
(4)           That, for the purpose of determining
liability under the Securities Act of 1933 to any purchaser:
(i)            If the registrant is relying on Rule
430B:
(A)          Each
prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed
to be part of the registration statement as of the date the filed prospectus
was deemed part of and included in the registration statement; and
(B)          Each
prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7)
as part of a registration statement in reliance on Rule 430B relating to an
offering made pursuant to Rule 415(a)(1)(i), or (vii), or (x) for the purpose
of providing the information required by section 10(a) of the Securities Act of
1933 shall be deemed to be part of and included in the registration statement
as of the earlier of the date such form of prospectus is first used after
effectiveness or the date of the first contract of sale of securities in the
offering described in the prospectus.  As
provided in Rule 430B, for liability purposes of the issuer and any person that
is at that date an underwriter, such date shall be deemed to be a new effective
date of the registration statement relating to the securities in the
registration statement to which that prospectus relates, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering
thereof.
Provided,
however,
that no statement made in a registration statement or
prospectus that is part of the registration statement or made in a document
incorporated or deemed incorporated by reference into the registration
statement or prospectus that is part of the registration statement will, as to
a purchaser with a time contract of sale prior to such effective date,
supersede or modify any statement that was made in the registration statement
or prospectus that was part of the registration statement or made in any such
document immediately prior to such effective date; or
(ii)           If
the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule
424(b) as part of a registration statement relating to an offering, other than
registration statements relying on Rule 430B or other than prospectuses filed
in reliance on Rule 430A, shall be deemed to be part of and included in the
registration statement as of the date it is first used after
effectiveness.
Provided,
however,
that no statement made in a registration statement or
prospectus that is part of the registration statement or made in a document
incorporated or deemed incorporated by reference into the registration
statement or prospectus that is part of the registration statement will, as to
a purchaser with a time of contract or sale prior to such first use, supersede
or modify any statement that was made in the registration statement or
prospectus that
II-
3
was part of the registration statement or made in any
such document immediately prior to such date of first use.
(b)           The undersigned registrant hereby
undertakes that, for purposes of determining any liability under the Securities
Act of 1933, each filing of the registrant's annual report pursuant to Section
13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where
applicable, each filing of an employee benefit plan's annual report pursuant to
Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by
reference in the registration statement shall be deemed to be a new
registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof.
(c)           Insofar as indemnification for
liabilities arising under the Securities Act of 1933 may be permitted to
directors, officers and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been advised that in the
opinion of the Securities and Exchange Commission such indemnification is
against public policy as expressed in the Act and is, therefore,
unenforceable.  In the event that a claim
for indemnification against such liabilities (other than the payment by the
registrant of expenses incurred or paid by a director, officer or controlling
persons of the registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in connection
with the securities being registered, the registrant will, unless in the
opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it against public policy as expressed in the Act and will be
governed by the final adjudication of such issue.
(d)           The undersigned registrant hereby
undertakes that:
(i)            For
purposes of determining any liability under the Securities Act of 1933, the
information omitted from the form of prospectus filed as part of this
registration statement in reliance upon Rule 430A and continued in a form of
prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h)
under the Securities Act shall be deemed to be part of this registration
statement as of the time it was declared effective.
(ii)           For
purposes of determining any liability under the Securities Act of 1933, each
post-effective amendment that contains a form of prospectus shall be deemed to
be a new registration statement relating to the securities offered therein, and
the offering of such securities at that time shall be deemed to be the initial
bona fide offering thereof.
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4
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant certifies that it has reasonable grounds to believe that it
meets all of the requirements for filing of Form S-8 and has duly caused this
registration statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of Chicago, State of Illinois on the 28th day of
September, 2006.
QUIXOTE CORPORATION
By:
/s/ LESLIE J. JEZUIT
Leslie J. Jezuit
Chairman and Chief
  Executive Officer
Pursuant
to the requirements of the Securities Act of 1933, this Registration Statement
has been signed below by the following persons in the capacities and on the
dates indicated.
Signature
Title
Date
/s/ LESLIE J. JEZUIT
Chairman, Chief Executive Officer and Director
September 28, 2006
Leslie J. Jezuit
(Principal Executive Officer)
/s/ DANIEL P. GOREY
Vice President, Chief
  Financial Officer, Treasurer and
September 28, 2006
Daniel P. Gorey
Director (Principal
  Financial Officer and Principal Accounting Officer)
/s/ JAMES H. DEVRIES
Director
September 28, 2006
James H. DeVries
/s/ LAWRENCE C. MCQUADE
Director
September 28, 2006
Lawrence C. McQuade
/s/ DUANE M. TYLER
Director
September 28, 2006
Duane M. Tyler
/s/ ROBERT D. VAN ROIJEN,
  JR.
Director
September 28, 2006
Robert D. van Roijen, Jr.
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EXHIBIT INDEX
Exhibit No.
Exhibit
5(a)
Opinion of Counsel
23(a)
Consent of Grant Thornton LLP
23(b)
Consent of PricewaterhouseCoopers LLP
24
Power of Attorney
99(a)
Quixote Corporation Incentive Savings Plan as
  amended and restated January 1, 2006
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