<PAGE>



                                                           EXHIBIT 10.34

                                OPTION AGREEMENT

      THIS OPTION AGREEMENT (this "Option Agreement"), dated as of
December 30, 1998, is by and among Falcon Building Products, Inc., a
Delaware corporation ("Falcon"), IFOH Limited, a corporation incorporated
in the Cayman Islands ("IFOH"), and those stockholders of Falcon listed on
Exhibit A hereto.

                                    RECITALS

      A.   Mansfield Plumbing Products, Inc., a Delaware corporation (the
           "Company"), is a wholly owned subsidiary of Falcon.

      B.   The Board of Directors of Falcon has determined that it is in the 
           best interests of Falcon and all of its stockholders for Falcon 
           to sell to (i) the stockholders of record of Falcon on
           December 29, 1998 listed on Exhibit A hereto (the "Exhibit A 
           Stockholders," and collectively with IFOH, the "Holders") and 
           (ii) IFOH an option (the "Option") to purchase up to all the 
           capital stock of the Company outstanding at the time the Option 
           is exercised (the "Shares").

      C.   IFOH has agreed to offer its interest in the Option to the
           stockholders of record of Falcon on December 29, 1998 listed on
           Exhibit B hereto (the "Exhibit B Stockholders").

      D.   Subject to the terms and conditions hereof, Falcon wishes to sell
           and the Holders wish to purchase the Option.

                                    AGREEMENT

         THEREFORE, in consideration of the promises and the mutual 
representations, warranties and covenants contained herein, the parties agree 
as follows:

1.    SALES OF OPTION. Subject to the other terms and conditions of this Option
      Agreement, Falcon hereby grants, sells, transfers and delivers to each of
      the Holders and their successors and assigns, free and clear of all
      security interests, liens, and encumbrances, an undivided percentage
      interest (a "Percentage Interest") in the Option equal to (i) in the case
      of the Exhibit A Stockholders, the percentage interest each Exhibit A
      Stockholder held on December 29, 1998 (the "Record Date") of the total of
      all outstanding capital stock of Falcon, and (ii) in the case of IFOH, the
      percentage interest of the total of all outstanding capital stock of
      Falcon held on the Record Date by the Exhibit B Stockholders. Falcon
      contemplates that the capital structure of the Company will be amended
      between the date hereof and the date of the Closing (as hereinafter
      defined) such that the Company will have authorized classes of capital
      stock with rights, preferences


<PAGE>

      and privileges substantially similar to the classes of capital stock of
      Falcon. If, on the date of the Closing, the capital structure of the
      Company consists of substantially similar classes of capital stock as
      were present in the capital structure of Falcon on the Record Date,
      upon the exercise of the Option each Holder delivering to Falcon a
      Notice of Exercise (as defined in Section 6 below) (an "Exercising
      Holder") will be entitled to receive the same percentage of the same
      class of capital stock of the Company that such Holder (or in the
      case of IFOH, the Exhibit B Stockholders) held of Falcon's capital stock
      on the Record Date. If the capital structure of the Company on the date of
      the Closing does not consist of the same classes of capital stock as were
      present in the capital structure of Falcon on the Record Date, upon the
      exercise of the Option, each Exercising Holder will be entitled to receive
      its Percentage Interest of the outstanding shares of the single class of
      common stock of the Company then outstanding or of such other capital
      stock of the Company as may then be outstanding.

2.    PAYMENT OF THE PURCHASE PRICE. The purchase price (the "Purchase Price")
      for the Option to be paid by wire transfer to Falcon upon the execution of
      this Option Agreement is set forth on Exhibit C hereto.

3.    TERM. The ability of the Holders to exercise their Percentage Interests in
      the Option shall expire on June 30, 1999 at 5:00 p.m. Chicago, Illinois
      time (the "Expiration Date").

4.    EXCLUSIVITY. During the period from the execution of this Option Agreement
      (the "Execution Date") until the earlier of (i) the Closing or (ii) if the
      Option is not exercised, the Expiration Date, Falcon shall not enter into
      or continue any negotiations with respect to the sale or transfer of the
      Shares or any other form of business combination transaction, license,
      sale, liquidation, dissolution or recapitalization involving the Company
      or its assets.

5.    RESTRICTIONS ON TRANSFER OF SHARES. During the period from the Execution
      Date until the earlier of (i) the Closing or (ii) if the Option is not
      exercised, the Expiration Date, Falcon shall not sell, transfer, pledge or
      grant a security interest in, or otherwise dispose of or encumber, the
      Shares; provided, it being understood that the Shares are currently
      pledged to Chase Manhattan Bank ("Chase") as administrative agent under
      the Credit Agreement, dated as of June 17, 1997, by and among Falcon, the
      Company, certain of Falcon's other subsidiaries, Chase and the other
      lenders party thereto.

6.    NOTICE OF EXERCISE AND CLOSING. If a Holder elects to exercise its
      Percentage Interest in the Option, such Holder shall deliver to Falcon a
      "Notice of Exercise." The Notice of Exercise shall; (i) be written, (ii)
      be executed by such Exercising Holder, (iii) state the Exercising Holder's
      intention to exercise its rights under the Option, (iv) be delivered to
      Falcon at its principal place of business no later than the Expiration
      Date and (v) specify the time and date (not more than five business days
      after the Expiration Date) on which such Exercising Holder will be
      prepared


<PAGE>


      to close. Following receipt of a Notice of Exercise from Exercising
      Holders of the Option holding more than fifty percent (50%) of the
      Percentage Interests (the "Notice Date"), Falcon (i) shall schedule
      the time, date and place of the closing of the Option Exercise (the
      "Closing") with respect to such Percentage Interests, which shall not
      be later than fifteen (15) business days after the Notice Date, and (ii)
      shall provide written notice of the Closing to all Holders within two (2)
      business days following the Notice Date. Any Holders who are not then
      Exercising Holders shall have until the close of business of the third
      business day preceding the Closing to file a Notice of Exercise and
      exercise their Percentage Interests in the Option.

7.    EXERCISE PRICE. The price at which the Option can be exercised (the
      "Exercise Price") shall be equal to:

      (i)   $10,000,000 plus

      (ii)  to the extent that the total amount of indebtedness for borrowed
            money ("Indebtedness") for which the Company will be liable
            immediately before, on or after the Closing (the "Closing
            Indebtedness") is less than $70,000,000, the difference between the
            amount of such Indebtedness and $70,000,000 plus (minus)

      (iii) the difference between (y) the sum of the fair market value of any
            capital contributions to the Company (other than loans which
            increase the amount of Indebtedness) ("Capital Contributions") and
            the aggregate amount of after tax net income of the Company during
            the Option Period ("Option Period Net Income") and (z) the fair
            market value of any distributions (other than amounts paid by the
            Company with respect to any Indebtedness, and other than an amount
            of distributions equal to the difference between the amount of
            Closing Indebtedness and the amount of Indebtedness of the Company
            at December 31, 1998) made by the Company in the form of cash,
            property or otherwise during the Option Period, minus

       (iv) to the extent that the total amount of Closing Indebtedness is more
            than $70,000,000 the difference between the amount of such
            Indebtedness and $70,000,000 plus

        (v) the amount of cash or cash equivalents on the books of the Company
            at the Closing.

         An amount equal to each Exercising Holder's Percentage Interest of the
         exercise price shall be paid by wire transfer on the day of the
         Closing.

8.    INTERESTS IN THE OPTION. Each of the entities listed on Exhibit A hereto
      shall hold an undivided Percentage Interest in the Option in the amount
      set forth opposite its

<PAGE>

      name on such Exhibit A. Interests in the Option will not be transferable,
      other than to holders of record of capital stock of Falcon on the Record
      Date. If a majority of the Holders do not deliver a Notice of Exercise
      prior to the Expiration Date, the Option shall expire unexercised. A
      Holder can only exercise its Percentage Interest in the option in full
      and not in part.

9.    REPRESENTATIONS AND WARRANTIES. Falcon hereby makes the representations
      and warranties with respect to the Company and other matters set forth on
      Exhibit D hereto to the Holders on and as of the Execution Date and agrees
      that all such representations and warranties shall be true on the day of
      the Closing as if made on such day. All of the representations and
      warranties set forth on Exhibit D shall expire at, and be terminated and
      extinguished by, the Closing and thereafter be without force or effect,
      except for those set forth in Sections 9.1.2 and 9.2.

10.   COVENANTS AND AGREEMENTS. Falcon hereby makes the covenants and agreements
      with respect to its actions and the actions of the Company during the
      Option Period set forth on Exhibit E hereto.

11.   CONDITIONS TO CLOSING. The conditions set forth on Exhibit F hereto shall
      constitute the conditions to the obligation of each of the Exercising
      Holders to pay an amount equal to their Percentage Interest of the
      Exercise Price to Falcon at the Closing and, in the case of the condition
      set forth in Section 11.2 of Exhibit F relating to the waiting period
      under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 ("HSR"),
      shall also constitute a condition to the obligation of Falcon to sell the
      Shares at the Closing. If any of the conditions to closing set forth on
      Exhibit F have not been satisfied prior to the Closing, the Holders shall
      be entitled to the return of the Purchase Price by Falcon, plus interest
      at the rate of 8% per annum, and any damages that may be imposed under
      Section 13(c) of this Option Agreement as a result of a willful violation
      of a provision of this Option Agreement; provided, that in no event shall
      Falcon be liable in an amount in excess of the Purchase Price. Falcon
      hereby agrees to pay all such amounts to the Holders in accordance with
      their Percentage Interests.

12.   LIMITED RIGHTS OF OPTION HOLDER. The Holders of the Option shall not have
      any of the rights of a holder of voting securities of the Company, either
      at law or in equity, until the Option shall have been duly exercised and
      the Closing shall have occurred.

13.   MISCELLANEOUS.

      a) APPLICABLE LAW. THIS OPTION AGREEMENT SHALL BE GOVERNED BY AND
         CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS, BUT NOT THE CHOICE OF
         LAW PROVISIONS, OF THE STATE OF DELAWARE.

<PAGE>


      b)  HEADINGS. The headings herein are for convenience only and are not
          part of this Option Agreement and shall not affect the interpretation
          thereof.

      c)  ARBITRATION. Any controversy, dispute, or claim arising out of, in
          connection with, or in relation to, the interpretation, performance
          or breach of this Option Agreement, including, without limitation, the
          validity, scope, and enforceability of this Section 13(c), may at the
          election of any party be solely and finally settled by arbitration
          conducted in Illinois, by and in accordance with the then-existing
          rules for commercial arbitration of the American Arbitration
          Association, or any successor organization. Judgment upon any
          award rendered by the arbitrator(s) may be entered by the State
          or Federal Court having jurisdiction thereof. Any of the parties may
          demand arbitration by written notice to the other and to the American
          Arbitration Association ("Demand for Arbitration"). Any Demand for
          Arbitration pursuant to this Section 13(c) shall be made within one
          (1) year from the date that the dispute upon which the demand is 
          based arose. The parties intend that this agreement to arbitrate be
          valid, enforceable and irrevocable.

      d)  ATTORNEY'S FEES. If any suit, action or arbitration arising out of or
          related to this Option Agreement is brought by any party, the
          prevailing party or parties shall be entitled to recover the costs
          and fees (including without limitation reasonable attorneys' fees,
          the fees and costs of experts and consultants, copying, courier and
          telecommunication costs, and deposition costs and all other costs of
          discovery) incurred by such party of parties in such suit or action,
          including without limitation any post-trial or appellate proceeding,
          or in the collection of enforcement of any judgment or award entered
          or made in such suit or action.

      e)  BINDING EFFECT. This Option Agreement shall be binding upon and 
          shall inure to the benefit of the parties hereto and their respective
          successors, permitted assigns, heirs and legal representatives, as the
          case may be.

      f)  AUTHORITY. Each of the signatories to the Option Agreement personally
          warrants that he has been duly authorized and has full authority
          (i) to sign this Option Agreement on behalf of the entity on whose
          behalf he is signing and (ii) to bind such party and its successors
          and assigns to the terms hereof.

      g)  COUNTERPART EXECUTION. This Option Agreement may be executed in
          counterparts, and when each party has signed and delivered to the
          other party at least one such counterpart, each counterpart shall be
          deemed an original, and when taken together with the other signed
          counterpart, shall constitute one agreement.

            [the remainder of this page is intentionally left blank]