<PAGE>   1


                                                                    EXHIBIT 10.6


                                     FORM OF
                              EMPLOYMENT AGREEMENT

     This [AMENDED AND RESTATED] Employment Agreement ("Agreement") is entered
into between Southdown, Inc., a Louisiana corporation ("Company"), and
_________________, a resident of __________________________, Texas
("Executive"), effective as of January ___, 2000. The Company and the Executive
are sometimes referred to herein as the "Parties."

     1. Introduction. In connection with the revision of existing employment
agreements, the Company believes that the assurance of the Executive's continued
employment by the Company and the benefit of his business experience are of
material importance. Therefore, the Company and the Executive intend by this
Agreement to rescind any existing employment agreement and to specify the terms
and conditions of the Executive's continuing employment relationship with the
Company.

     2. Employment. The Company hereby employs the Executive and the Executive
hereby accepts continuing employment with the Company upon the terms and
conditions set forth herein.

     3. Duties and Responsibilities.

          3.1. Extent of Service. The Executive shall, during the term of this
Agreement, devote such of his entire time, attention, energies and business
efforts to his duties as an executive of the Company as are reasonably necessary
to carry out his duties specified in Paragraph 3.2 below. The Executive shall
not, during the term of this Agreement, engage in any other business activity
(whether or not such business activity is pursued for gain, profit or other
pecuniary advantage) if such business activity would impair the Executive's
ability to carry out his duties hereunder. This Paragraph 3.1, however, shall
not be construed to prevent the Executive from investing his personal assets as
a passive investor in such form or manner as will not contravene the Company's
Statement of Policy Regarding Corporate Ethics and Conflicts of Interest
("Policy Statement").

          3.2. Position and Duties. Subject to the power of the Board of
Directors [(OR SHAREHOLDERS, AS THE CASE MAY BE)] of the Company to elect and
remove officers [(OR DIRECTORS)], the Executive shall serve the Company as [A
DIRECTOR AND] [STATE POSITION] (or in such other office of comparable or greater
responsibility as the Board of Directors of the Company may determine) and shall
perform, faithfully and diligently, the services and functions relating to such
office or otherwise reasonably incident to such office as may be designated from
time to time by the Board of Directors of the Company; provided that all such
services and functions shall be reasonable and within the Executive's area of
expertise; and provided further that the Executive shall be physically capable
of performing the essential requirements of the job with or without reasonable
accommodation.

          3.3. Place of Employment. During the term of this Agreement, the
Company shall maintain its principal executive offices in the greater Houston,
Texas area, and the Executive's primary place of employment shall be at such
principal executive offices. During the term of this Agreement, the Company will
provide the Executive with a private office, an


<PAGE>   2


executive secretary and other customary staff support services, all as are
commensurate with the services and functions to be performed by him hereunder.

     4. Salary and Other Benefits. Subject to the terms and conditions of this
Agreement:

          4.1. Salary. As compensation for his services under and during the
term of his employment under this Agreement, the Executive shall be paid an
annual salary of not less than $_______, payable in accordance with the then
current payroll policies of the Company. Such salary shall be subject to
increase by the Board of Directors of the Company (or the appropriate committee
thereof) from time to time. The annual salary payable from time to time by the
Company to the Executive pursuant to this Paragraph 4.1 is herein sometimes
referred to as his "Base Salary."

          4.2. Other Benefits. As long as the Executive is employed by the
Company, the Executive shall be entitled to receive the following benefits in
addition to his Base Salary:

               (a) The Executive shall be entitled to participate in the
Company's discretionary bonus plan (the "Bonus Plan") for senior management of
the Company and its consolidated subsidiaries, pursuant to which he shall be
paid each year such additional compensation by way of bonus as the Board of
Directors of the Company (or the appropriate committee thereof) in its sole
discretion shall authorize or agree to pay, payable on such terms and conditions
as it shall determine.

               (b) The Executive shall have the right to participate in all
group benefit and applicable retirement plans of the Company (including without
limitation, disability, accident, medical, life insurance, hospitalization and
pension), all in accordance with the Company's regular practices with respect to
its senior officers.

               (c) The Executive shall be entitled to reimbursement from the
Company for reasonable out-of-pocket expenses incurred by him in the course of
the performance of his duties hereunder.

               (d) The Company shall provide the Executive with an automobile
allowance in the amount of $1,000 per month, subject to statutory withholdings.
Executive shall bear all expenses incurred in connection with owning or
operating his personal automobile.

               (e) In order to promote the interests of the Company, the Company
shall reimburse the Executive for the initiation fees and all annual dues
incurred by him in connection with his membership in one luncheon club and one
country club as may be agreed upon by the Executive and the Company (and the
Company agrees to post any bond required by such clubs and each such bond will
remain the property of the Company).

               (f) The Company shall reimburse Executive an amount up to $5,000
per year for personal financial, tax and estate planning.

               (g) The Executive shall be entitled to such vacation, holidays
and other paid or unpaid leaves of absence as are consistent with the Company's
normal policies or


                                       2


<PAGE>   3


as are otherwise approved by the Company's Board of Directors (or the
appropriate committee thereof).

     5. Term. The term of this Agreement shall be for one year and shall be
automatically extended one day each day, from the effective date hereof;
provided, however, that upon a Change in Control, the term of this Agreement
shall be for two years from the date of the Change in Control.

     6. Termination and Resignation. The Company shall have the right to
terminate the Executive's employment hereunder at any time and for any reason,
and upon any such termination the Executive shall be entitled to receive from
the Company prompt payment of the amount determined pursuant to the applicable
subparagraph of Paragraph 7 below. The Executive shall have the right to
terminate his employment hereunder at any time by resignation, and he shall
thereupon be entitled to receive from the Company prompt payment of the amount
determined pursuant to the applicable subparagraph of Paragraph 7 below.

     7. Payments Upon Termination or After Change in Control.

          7.1. Pro Rata Payment. In the event of the following:

               (i) the Company terminates the Executive's employment for Cause
          (as defined below),

               (ii) the Executive dies or becomes disabled (being the inability
          of the Executive to perform the essential requirements of the job with
          or without reasonable accommodation),

               (iii) the Executive resigns prior to the occurrence of a Change
          in Control (as defined below) of the Company at a time when there is
          no uncured breach by the Company of any term of this Agreement, or

               (iv) the Executive resigns after the occurrence of a Change in
          Control for any reason other than for Good Reason (as defined below);

then in each case the Executive shall be entitled to receive only his Base
Salary on a pro rata basis to the date of termination or resignation.

          7.2. Payments Upon Termination Prior to Change in Control. If prior to
the occurrence of a Change in Control (i) the Company terminates the Executive's
employment for any reason other than for Cause or the Executive's death or
disability or (ii) the Executive resigns because of the breach by the Company of
any term of this Agreement (but only if such breach is not remedied by the
Company promptly after it receives notice thereof from Executive), then in each
case the Executive shall be entitled to receive a lump sum payment equal to two
times his Base Salary.

          7.3. Payments Upon Termination After Change in Control. If after the
occurrence of a Change in Control of the Company, (i) the Company terminates the
Executive's employment hereunder for any reason other than for Cause, or (ii)
the Executive voluntarily


                                       3
<PAGE>   4


resigns his employment hereunder for Good Reason (as defined below), in each
case within two years of the Change in Control, then in each case the Company
will:

               (a) pay to the Executive within 10 days a lump sum termination
payment equal to 2.99 times the sum of his Base Salary and the greater of (i)
the most recent annual bonus paid to the Executive pursuant to the Company's
Bonus Plan (as defined in Paragraph 4.2(a)) prior to the Change in Control or
(ii) his Target Bonus (as defined below) (collectively, the "Lump Sum Payment"),
subject to adjustment as provided in Paragraph 9 below;

               (b) continue to provide the Executive with medical, dental, life
insurance and disability insurance benefits for a period of three years
following the Executive's termination of employment with benefits and employee
contributions no less favorable to the Executive than those provided immediately
prior to the Change in Control; and

               (c) provide individual outplacement services for one year
following termination of employment at Company expense in an amount not to
exceed $20,000.

          7.4. Certain Definitions.

               (a) "Target Bonus" shall mean the target bonus for Executive
specified under the Company's Bonus Plan (as defined in Paragraph 4.2(a)) for
the year in which a Change in Control of the Company occurs.

               (b) Termination by the Company of the Executive's employment for
"Cause" shall mean termination upon the willful misappropriation of funds or
properties of the Company or the willful contravention of the standards referred
to in the last sentence of Paragraph 10 below. For purposes of this definition,
no act, or failure to act, on the Executive's part shall be considered "willful"
unless done, or omitted to be done, by the Executive not in good faith and
without reasonable belief that the Executive's action or omission was in the
best interest of the Company. Notwithstanding the foregoing, the Executive shall
not be deemed to have been terminated for Cause unless and until there shall
have been delivered to the Executive a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters of the entire membership of the
Board of Directors of the Company at a meeting of the Board duly called and held
(after reasonable notice to the Executive and an opportunity for the Executive,
together with his counsel, to be heard before the Board) finding that in the
good faith opinion of the Board the Executive was guilty of the conduct set
forth above and specifying the particulars thereof in detail.

               (c) A "Change in Control" shall be conclusively deemed to have
occurred if (and only if) any of the following shall have taken place: (i) a
change in control is reported by the Company in response to either Item 6(e) of
Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of
1934, as amended ("Exchange Act"), or Item 1 of Form 8-K promulgated under the
Exchange Act, or any similar reporting requirement hereafter promulgated by the
Securities and Exchange Commission; (ii) any person, entity or group (as such
term is used in Sections 13(d) and 14(d) of the Exchange Act), other than any
employee benefit plan sponsored by the Company, is or becomes the beneficial
owner (as


                                       4
<PAGE>   5


defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing forty percent or more of the combined
voting power of the Company's then outstanding securities (as determined under
paragraph (d) of Rule 13d-3 promulgated under the Exchange Act, in the case of
rights to acquire common stock); or (iii) following the election or removal of
directors, a majority of the Board consists of individuals who were not members
of the Board two years before such election or removal, unless the election of
each director who was not a director at the beginning of such two-year period
has been approved in advance by directors representing at least a majority of
the directors then in office who were directors at the beginning of the two-year
period.

               (d) "Good Reason" shall mean, in any case only if an action or
event described in this Paragraph 7.4(d) is not remedied by the Company promptly
after it receives notice thereof from Executive,

               (i) the assignment to the Executive of any duties substantially
          inconsistent with the Executive's position (including offices, titles
          and reporting requirements), authority, duties or responsibilities as
          contemplated by Paragraph 3.2 hereof, or the reduction or elimination
          of any duties or responsibilities previously assigned to the
          Executive;

               (ii) the failure of the Company to comply with any of the
          provisions of Section 4 hereof or to maintain competitive total
          compensation for the Executive, including base pay, annual incentive
          and long-term incentive pay based on then-current practices of
          comparable publicly-traded U.S. companies; or

               (iii) the Company's requiring the Executive to be based at any
          office or location other than as provided in Paragraph 3.3 hereof.

          7.5. Payments Upon a Change in Control. Within ten days following a
Change in Control, the Company shall pay the Executive a lump sum cash payment
equal to most recent annual bonus paid to the Executive pursuant to the
Company's Bonus Plan (as defined in Paragraph 4.2(a)) prior to the Change in
Control, prorated based on the number of days in the calendar year that have
elapsed prior to the Change in Control.

     8. Acceleration of Options. Contemporaneously with the occurrence of a
Change in Control of the Company, the Board of Directors of the Company (or the
appropriate committee thereof) will accelerate all outstanding options
previously granted to the Executive under any then existing Company stock
option, stock appreciation or other employee incentive plan that are not
otherwise exercisable by the Executive at the time the Change in Control of the
Company occurs.

     9. Certain Additional Payments by the Company.

               (a) Anything in this Agreement to the contrary notwithstanding,
in the event it shall be determined that any payment or distribution by the
Company or any of its affiliates to or for the benefit of Executive, whether
paid or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise (any such payments or distributions being individually
referred to herein as a "Payment," and any two or more of such payments or


                                       5
<PAGE>   6


distributions being referred to herein as "Payments"), would be subject to the
excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as
amended ("Code") (such excise tax, together with any interest thereon, any
penalties, additions to tax, or additional amounts with respect to such excise
tax, and any interest in respect of such penalties, additions to tax or
additional amounts, being collectively referred herein to as the "Excise Tax"),
then Executive shall be entitled to receive and the Company shall make an
additional payment or payments (individually referred to herein as a "Gross-Up
Payment," and any two or more of such additional payments being referred to
herein as "Gross-Up Payments") in an amount such that after payment by Executive
of all taxes (as defined in Paragraph 9(k) imposed upon the Gross-Up Payment,
Executive retains an amount of such Gross-Up Payment equal to the Excise Tax
imposed upon the Payments.

               (b) Subject to the provisions of Paragraph 9(c) through (i), any
determination (individually, a "Determination") required to be made under
Paragraphs 9(a) or 9(b), including whether a Gross-Up Payment is required and
the amount of such Gross-Up Payment, shall initially be made, at the Company's
expense, by nationally recognized tax counsel mutually acceptable to the Company
and Executive ("Tax Counsel"). Tax Counsel shall provide detailed supporting
legal authorities, calculations, and documentation both to the Company and
Executive within 15 business days of the termination of Executive's employment,
if applicable, or such other time or times as is reasonably requested by the
Company or Executive. If Tax Counsel makes the initial Determination that no
Excise Tax is payable by Executive with respect to a Payment or Payments, it
shall furnish Executive with an opinion that no Excise Tax will be imposed with
respect to any such Payment or Payments. Executive shall have the right to
dispute any Determination (a "Dispute") within 15 business days after delivery
of Tax Counsel's opinion with respect to such Determination. The Gross-Up
Payment, if any, as determined pursuant to such Determination shall, at the
Company's expense, be paid by the Company to Executive within five business days
of Executive's receipt of such Determination. The existence of a Dispute shall
not in any way affect Executive's right to receive the Gross-Up Payment in
accordance with such Determination. If there is no Dispute, such Determination
shall be binding, final and conclusive upon the Company and Executive, subject
in all respects, however, to the provisions of Paragraph 9(c) through (i) below.
As a result of the uncertainty in the application of Sections 4999 and 280G of
the Code, it is possible that Gross-Up Payments (or portions thereof) which will
not have been made by the Company should have been made ("Underpayment"), and if
upon any reasonable written request from Executive or the Company to Tax
Counsel, or upon Tax Counsel's own initiative, Tax Counsel, at the Company's
expense, thereafter determines that Executive is required to make a payment of
any Excise Tax or any additional Excise Tax, as the case may be, Tax Counsel
shall, at the Company's expense, determine the amount of the Underpayment that
has occurred and any such Underpayment shall be promptly paid by the Company to
Executive.

               (c) The Company shall defend, hold harmless, and indemnify
Executive on a fully grossed-up after tax basis from and against any and all
claims, losses, liabilities, obligations, damages, impositions, assessments,
demands, judgments, settlements, costs and expenses (including reasonable
attorneys', accountants', and experts' fees and expenses) with respect to any
tax liability of Executive resulting from any Final Determination (as defined in
Paragraph 9(j)) that any Payment is subject to the Excise Tax.


                                       6
<PAGE>   7


               (d) If a party hereto receives any written or oral communication
with respect to any question, adjustment, assessment or pending or threatened
audit, examination, investigation or administrative, court or other proceeding
which, if pursued successfully, could result in or give rise to a claim by
Executive against the Company under this Paragraph 9(d) ("Claim"), including,
but not limited to, a claim for indemnification of Executive by the Company
under Paragraph 9(c), then such party shall promptly notify the other party
hereto in writing of such Claim ("Tax Claim Notice").

               (e) If a Claim is asserted against Executive ("Executive Claim"),
Executive shall take or cause to be taken such action in connection with
contesting such Executive Claim as the Company shall reasonably request in
writing from time to time, including the retention of counsel and experts as are
reasonably designated by the Company (it being understood and agreed by the
parties hereto that the terms of any such retention shall expressly provide that
the Company shall be solely responsible for the payment of any and all fees and
disbursements of such counsel and any experts) and the execution of powers of
attorney, provided that:


               (i) within 30 calendar days after the Company receives or
          delivers, as the case may be, the Tax Claim Notice relating to such
          Executive Claim (or such earlier date that any payment of the taxes
          claimed is due from Executive, but in no event sooner than five
          calendar days after the Company receives or delivers such Tax Claim
          Notice), the Company shall have notified Executive in writing
          ("Election Notice") that the Company does not dispute its obligations
          (including, but not limited to, its indemnity obligations) under this
          Agreement and that the Company elects to contest, and to control the
          defense or prosecution of, such Executive Claim at the Company's sole
          risk and sole cost and expense; and

               (ii) the Company shall have advanced to Executive on an
          interest-free basis, the total amount of the tax claimed in order for
          Executive, at the Company's request, to pay or cause to be paid the
          tax claimed, file a claim for refund of such tax and, subject to the
          provisions of the last sentence of Paragraph 9(g), sue for a refund of
          such tax if such claim for refund is disallowed by the appropriate
          taxing authority (it being understood and agreed by the parties hereto
          that the Company shall only be entitled to sue for a refund and the
          Company shall not be entitled to initiate any proceeding in, for
          example, United States Tax Court) and shall indemnify and hold
          Executive harmless, on a fully grossed-up after tax basis, from any
          tax imposed with respect to such advance or with respect to any
          imputed income with respect to such advance; and

               (iii) the Company shall reimburse Executive for any and all costs
          and expenses resulting from any such request by the Company and shall
          indemnify and hold Executive harmless, on fully grossed-up after-tax
          basis, from any tax imposed as a result of such reimbursement.

               (f) Subject to the provisions of Paragraph 9(e), hereof, the
Company shall have the right to defend or prosecute, at the sole cost, expense
and risk of the Company, such Executive Claim by all appropriate proceedings,
which proceedings shall be defended or


                                       7
<PAGE>   8


prosecuted diligently by the Company to a Final Determination; provided,
however, that (i) the Company shall not, without Executive's prior written
consent, enter into any compromise or settlement of such Executive Claim that
would adversely affect Executive, (ii) any request from the Company to Executive
regarding any extension of the statute of limitations relating to assessment,
payment, or collection of taxes for the taxable year of Executive with respect
to which the contested issues involved in, and amount of, the Executive Claim
relate is limited solely to such contested issues and amount, and (iii) the
Company's control of any contest or proceeding shall be limited to issues with
respect to the Executive Claim and Executive shall be entitled to settle or
contest, in his sole and absolute discretion, any other issue raised by the
Internal Revenue Service or any other taxing authority. So long as the Company
is diligently defending or prosecuting such Executive Claim, Executive shall
provide or cause to be provided to the Company any information reasonably
requested by the Company that relates to such Executive Claim, and shall
otherwise cooperate with the Company and its representatives in good faith in
order to contest effectively such Executive Claim. The Company shall keep
Executive informed of all developments and events relating to any such Executive
Claim (including, without limitation, providing to Executive copies of all
written materials pertaining to any such Executive Claim), and Executive or his
authorized representatives shall be entitled, at Executive's expense, to
participate in all conferences, meetings and proceedings relating to any such
Executive Claim.

               (g) If, after actual receipt by Executive of an amount of a tax
claimed (pursuant to an Executive Claim) that has been advanced by the Company
pursuant to Paragraph 9(e)(ii), hereof, the extent of the liability of the
Company hereunder with respect to such tax claimed has been established by a
Final Determination, Executive shall promptly pay or cause to be paid to the
Company any refund actually received by, or actually credited to, Executive with
respect to such tax (together with any interest paid or credited thereon by the
taxing authority and any recovery of legal fees from such taxing authority
related thereto), except to the extent that any amounts are then due and payable
by the Company to Executive, whether under the provisions of this Agreement or
otherwise. If, after the receipt by Executive of an amount advanced by the
Company pursuant to Paragraph 9(e)(ii), a determination is made by the Internal
Revenue Service or other appropriate taxing authority that Executive shall not
be entitled to any refund with respect to such tax claimed and the Company does
not notify Executive in writing of its intent to contest such denial of refund
prior to the expiration of thirty days after such determination, then such
advance shall be forgiven and shall not be required to be repaid and the amount
of such advance shall offset, to the extent thereof, the amount of any Gross-Up
Payments and other payments required to be paid hereunder.

               (h) With respect to any Executive Claim, if the Company fails to
deliver an Election Notice to Executive within the period provided in Paragraph
9(e)(i), hereof or, after delivery of such Election Notice, the Company fails to
comply with the provisions of Paragraph 9(e)(ii), and (iii) and (f) hereof, then
Executive shall at any time thereafter have the right (but not the obligation),
at his election and in his sole and absolute discretion, to defend or prosecute,
at the sole cost, expense and risk of the Company, such Executive Claim.
Executive shall have full control of such defense or prosecution and such
proceedings, including any settlement or compromise thereof. If requested by
Executive, the Company shall cooperate, and shall cause its affiliates to
cooperate, in good faith with Executive and his authorized representatives in
order to contest effectively such Executive Claim. The Company may attend,


                                       8
<PAGE>   9


but not participate in or control, any defense, prosecution, settlement or
compromise of any Executive Claim controlled by Executive pursuant to this
Paragraph 9(h) and shall bear its own costs and expenses with respect thereto.
In the case of any Executive Claim that is defended or prosecuted by Executive,
Executive shall, from time to time, be entitled to current payment, on a fully
grossed-up after tax basis, from the Company with respect to costs and expenses
incurred by Executive in connection with such defense or prosecution.

               (i) In the case of any Executive Claim that is defended or
prosecuted to a Final Determination pursuant to the terms of this Paragraph
9(i), the Company shall pay, on a fully grossed-up after tax basis, to Executive
in immediately available funds the full amount of any taxes arising or resulting
from or incurred in connection with such Executive Claim that have not
theretofore been paid by the Company to Executive, together with the costs and
expenses, on a fully grossed-up after tax basis, incurred in connection
therewith that have not theretofore been paid by the Company to Executive,
within ten calendar days after such Final Determination. In the case of any
Executive Claim not covered by the preceding sentence, the Company shall pay, on
a fully grossed-up after tax basis, to Executive in immediately available funds
the full amount of any taxes arising or resulting from or incurred in connection
with such Executive Claim at least ten calendar days before the date payment of
such taxes is due from Executive, except where payment of such taxes is sooner
required under the provisions of this Paragraph 9(i), in which case payment of
such taxes (and payment, on a fully grossed-up after tax basis, of any costs and
expenses required to be paid under this Paragraph 9(i) shall be made within the
time and in the manner otherwise provided in this Paragraph 9(i).

               (j) For purposes of this Agreement, the term "Final
Determination" shall mean (A) a decision, judgment, decree or other order by a
court or other tribunal with appropriate jurisdiction, which has become final
and non-appealable; (B) a final and binding settlement or compromise with an
administrative agency with appropriate jurisdiction, including, but not limited
to, a closing agreement under Section 7121 of the Code; (C) any disallowance of
a claim for refund or credit in respect to an overpayment of tax unless a suit
is filed on a timely basis; or (D) any final disposition by reason of the
expiration of all applicable statutes of limitations.

               (k) For purposes of this Agreement, the terms "tax" and "taxes"
mean any and all taxes of any kind whatsoever (including, but not limited to,
any and all Excise Taxes, income taxes, and employment taxes), together with any
interest thereon, any penalties, additions to tax, or additional amounts with
respect to such taxes and any interest in respect of such penalties, additions
to tax, or additional amounts.

               (l) For purposes of this Agreement, the terms "affiliate" and
"affiliates" mean, when used with respect to any entity, individual, or other
person, any other entity, individual, or other person which, directly or
indirectly, through one or more intermediaries controls, or is controlled by, or
is under common control with such entity, individual or person. The term
"control" and derivations thereof when used in the immediately preceding
sentence means the ownership, directly or indirectly, of 50% or more of the
voting securities of an entity or other person or possessing the power to direct
or cause the direction of the management and policies of such entity or other
person, whether through the ownership of voting securities, by contract or
otherwise.


                                       9
<PAGE>   10


     10. Preservation of Business; Fiduciary Responsibility. The Executive shall
use his best efforts to preserve the business and organization of the Company
and the Company's consolidated subsidiaries (collectively, the "Consolidated
Company"), to keep available to the Consolidated Company the services of present
employees and to preserve the business relations of the Consolidated Company
with suppliers, distributors, customers and others. The Executive shall not
commit any act, or in any way assist others to commit any act, which would
injure the Consolidated Company. So long as the Executive is employed by the
Company, the Executive shall observe and fulfill proper standards of fiduciary
responsibility attendant upon his service and office and shall comply with the
terms of the Company's Code of Business Conduct, as may be amended from time to
time.

     11. Competitive Activities.

          11.1. As an independent covenant, Executive agrees to refrain for one
(1) year after the termination of his employment for any reason, without written
permission from the Company, from becoming involved in any way, within the
boundaries of the United States, in the business of manufacturing or selling any
cement or ready-mix concrete products, or other products or services competitive
at the time of the termination with those sold and furnished by the Consolidated
Company as an employee, director, officer, shareholder, consultant, partner,
proprietor, or in any other capacity, except as a shareholder owning less than
five percent of the shares of a corporation whose shares are publicly traded.

          11.2. As an independent covenant, Executive agrees to refrain during
his employment by the Company, and in the event of the termination of his
employment for any reason, for one (1) year thereafter, without written
permission from the Company, from diverting, taking, soliciting and/or accepting
on his own behalf or on the behalf of another person, firm, or company, the
business of any customer of the Consolidated Company or any potential customer
of the Consolidated Company whose identity became known to Executive through his
employment by the Company.

          11.3. As an independent covenant, Executive agrees to refrain during
his employment by the Company, and in the event of the termination of his
employment for any reason for a period of one (1) year, thereafter, from
inducing or attempting to influence any employee of the Consolidated Company to
terminate his employment.

          11.4. Executive further agrees that these covenants are made to
protect the legitimate business interests of the Company, including interests in
the Company's "confidential information" as defined in Paragraph 12, and not to
restrict his mobility or to prevent him from utilizing his general technical
skills. Executive understands as a part of these covenants that the Company
intends to exercise whatever legal recourse against him for any breach of this
Agreement and in particular for any breach of these covenants.

     12. Non-Disclosure of Confidential Information. Executive agrees not to
make any unauthorized use, publication, or disclosure, during or subsequent to
his employment by the Company, of any confidential information, generated or
acquired by him during the course of his employment, except to the extent that
the disclosure of confidential information is necessary to fulfill his
responsibilities as an employee of the Company. Executive understands that


                                       10
<PAGE>   11


"confidential information" includes confidential or trade information not
generally known by or available to the public about or belonging to the
Consolidated Company or belonging to other companies to whom the Consolidated
Company may have an obligation to maintain information in confidence, and that
authorization for public disclosure may only be obtained through the Company's
written consent. Executive also understands and agrees that the information
protected by this provision includes, but is not limited to, information of a
technical and a business nature such as ideas, discoveries, designs, inventions,
improvements, trade secrets, know-how, manufacturing processes, product
formulae, design specifications, writings and other works of authorship,
computer programs, financial figures, marketing plans, customer lists and data,
business plans or methods and the like, which relate in any manner to the actual
or anticipated business of the Consolidated Company or related to its actual or
anticipated areas of research and development.

     13. Notice. All notices, requests, demands and other communications given
under or by reason of this Agreement shall be in writing and shall be deemed
given when delivered in person or when mailed, by certified mail (return receipt
requested), postage prepaid, addressed as follows (or to such other address as a
party may specify by notice pursuant to this provision):

                           (a)      To the Company:
                                    Southdown, Inc.
                                    Attention: Secretary
                                    1200 Smith Street, Suite 2400
                                    Houston, Texas 77002

                           (b)      To the Executive:

                                    ----------------------------------

                                    ----------------------------------

                                    ----------------------------------

     14. Controlling Law and Performability. The execution, validity,
interpretation and performance of this Agreement shall be governed by the law of
the State of Texas.

     15. Arbitration. Any dispute or controversy arising under or in connection
with this Agreement shall be settled by binding arbitration in Houston, Texas by
one arbitrator appointed in the manner set forth by the American Arbitration
Association. Any arbitration proceeding pursuant to this Paragraph 15 shall be
conducted in accordance with the Employment Dispute Resolution Rules of the
American Arbitration Association. Judgment may be entered on the arbitrators'
award in any court having jurisdiction.

     16. Expenses. The Company will pay or reimburse the Executive for all costs
and expenses (including arbitration and court costs and attorneys' fees)
incurred by the Executive as a result of any claim, action or proceeding arising
out of, or challenging the validity, advisability or enforceability of, this
Agreement or any provision thereof.

     17. No Obligation to Mitigate. The Executive shall not be required to
mitigate the amount of any payment provided for in Paragraph 7 by seeking other
employment or otherwise, nor shall the amount of any payment provided for in
Paragraph 7 be reduced by any


                                       11
<PAGE>   12


compensation earned by the Executive as a result of employment by another
employer or otherwise.

     18. Additional Instruments. The Parties shall execute and deliver any and
all additional instruments and agreements that may be necessary or proper to
carry out the purposes of this Agreement.

     19. Entire Agreement and Amendments. This Agreement contains the entire
agreement of the Parties relating to the matters contained herein and supersedes
all prior agreements and understandings, oral or written, between the Parties
with respect to the subject matter hereof [INCLUDING, BUT NOT LIMITED TO, THE
PRIOR EMPLOYMENT AGREEMENT BETWEEN THE PARTIES, EFFECTIVE AS OF MARCH 24, 1998];
provided, however, that nothing herein shall affect in any respect the rights
and obligations of the Company and the Executive under any Incentive Agreements
implemented prior to the date of this Agreement and not expressly referred to
herein or under any Indemnity Agreement entered into between the Company and
Executive. This Agreement may be changed only by an agreement in writing signed
by the Party against whom enforcement of any waiver, change, modification,
extension or discharge is sought.

     20. Separability. If any provision of the Agreement is rendered or declared
illegal or unenforceable by reason of any existing or subsequently enacted
legislation or by the decision of any arbitrator or by decree of a court of last
resort, the Parties shall promptly meet and negotiate substitute provisions for
those rendered or declared illegal or unenforceable to preserve the original
intent of this Agreement to the extent legally possible, but all other
provisions of this Agreement shall remain in full force and effect.

     21. Assignments. The Company may assign (whether by operation of law or
otherwise) this Agreement only with the written consent of the Executive, which
consent shall not be withheld unreasonably, and in the event of an assignment of
this Agreement, all covenants, conditions and provisions hereunder shall inure
to the benefit of and be enforceable against the Company's successors and
assigns. The rights and obligations of Executive under this Agreement are
personal to him, and no such rights, benefits or obligations shall be subject to
voluntary or involuntary alienation, assignment or transfer.

     22. Effect of Agreement. Subject to the provisions of Paragraph 21 with
respect to assignments, this Agreement shall be binding upon the Executive and
his heirs, executors, administrators, legal representatives and assigns and upon
the Company and its respective successors and assigns (whether direct or
indirect, by purchase, merger, consolidation or otherwise).

     23. Execution. This Agreement may be executed in multiple counterparts each
of which shall be deemed an original and all of which shall constitute one and
the same instrument.

     24. Waiver of Breach. The waiver by either Party of a breach of any
provision of the Agreement by the other Party shall not operate or be construed
as a waiver by such Party of any subsequent breach by such other Party.


                                       12
<PAGE>   13


     IN WITNESS WHEREOF, the Parties have executed this Agreement effective as
of the date first above written.

                                    "COMPANY"
                                    SOUTHDOWN, INC.

                                    By:
                                       -----------------------------------------
                                    Name:  Clarence C. Comer
                                    Title: President and Chief Executive Officer

                                    "EXECUTIVE"


                                    --------------------------------------------
                                    Name:
                                           ------------------------
                                    Title:
                                           ------------------------


                                       13