Document:

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                                                                    Exhibit 10.4

                                    AGREEMENT

        THIS AGREEMENT ("Agreement"), made and entered into as of the 21st day
of May, 2001, by and among Lafarge Corporation, a Maryland corporation (the
"Company"), Lafarge Canada Inc., a subsidiary of the Company ("LCI"), and Edward
T. Balfe, an individual residing in Great Falls, Virginia (the "Executive"),

                              W I T N E S S E T H:

        WHEREAS, the Executive has indicated his desire to retire as Executive
Vice President and President - Construction Materials of the Company effective
May 31, 2002 and the parties hereto desire to document herein their agreements
relating to the Executive's retirement; and

        WHEREAS, the Company desires to ensure that the Executive will remain an
employee of the Company until May 31, 2002, on the terms and conditions herein
provided;

        NOW, THEREFORE, for and in consideration of the premises and of the
mutual covenants and agreements contained herein, the Executive and the Company
hereby agree as follows:

        1.      Term and Duties. During the period commencing on the date hereof
and ending on May 31, 2002 (the "Term"), the Executive shall perform such
duties, functions and responsibilities required by his position as Executive
Vice President and President - Construction Materials and as are from time to
time delegated to him by the Chief Executive Officer of the Company. During the
Term, the Executive shall devote his skill, attention and best efforts to the
business of the Company to the extent necessary to discharge the
responsibilities assigned to him. Additionally, after the expiration of the
Term, the Company may consider, upon such terms and conditions as the Executive
and the Company may agree, utilizing the Executive for appropriate consulting
assignments at a reasonable emolument to be determined at the time such services
are requested. Upon the expiration of the Term, the Company will offer the
Executive the opportunity to be appointed to the Board of Directors of LCI, it
being understood and agreed that the Executive shall serve at the discretion of
the Company.

        2.      Compensation.

                (i)     Base Amount. The Company shall pay to the Executive
during the Term a base amount ("Base Amount") at the rate of U.S. $445,000 per
year, payable in semi-monthly installments, or otherwise in accordance with the
Company's usual payroll practices. In February 2002, the Board of Directors of
the Company shall determine if any adjustment should be made to the Base Amount
payable to the Executive for the remainder of the Term in accordance with
established Company guidelines. In addition, if and to the extent bonuses are
paid, in February 2002 the Board of Directors of the Company shall determine the
amount of bonus, if any, payable to the Executive for services rendered in 2001
in accordance with the Company's bonus plan. In addition, the Executive shall be
eligible to receive a bonus for services rendered in 2002 in accordance with

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the Company's bonus plan and subject to the recommendations of management and
the Board of Directors and based upon the Company's and the Executive's
performance. Such bonus, if any, shall be prorated for the number of months in
2002 during which the Executive was employed hereunder and paid to the Executive
on or before the effective date of his retirement.

                (ii)    Expenses. The Executive shall be entitled to receive
prompt reimbursement for all reasonable business expenses incurred by the
Executive, in accordance with the policies and procedures of the Company.

                (iii)   Benefit Plans. During the Term, the Executive shall be
entitled to continue to participate in or receive benefits under such of the
Company's and LCI's standard salaried employee benefit plans, executive benefit
plans, policies, practices, and arrangements in which he is presently eligible
to participate, on a basis consistent with the terms, conditions, and overall
administration of such benefit plans and arrangements. In addition, if at any
time prior to May 31, 2003, the Executive moves his principal residence to
Canada, the Executive shall be entitled to receive reimbursement for the
expenses of such move in accordance with the Company's presently existing
standard policy governing cross-border employee transfers; provided, however,
that if such move is made in connection with the acceptance by the Executive of
new employment, such reimbursement shall be reduced by an amount equal to the
moving expenses, if any, paid or reimbursed by the Executive's new employer.

                (iv)    Miscellaneous Pay and Benefits. Upon completion of
Executive's employment on May 31, 2002, the Executive shall be entitled to
receive standard retiree life and medical insurances in accordance with the
forms and coverage offered by the Company or LCI, whichever is applicable to the
Executive, and to receive a retirement allowance in accordance with the terms of
the LCI retirement allowance plan.

                (v)     Retirement Benefits and Special Retirement Supplement.
Upon the completion of the Executive's employment on May 31, 2002, the Executive
shall receive non-discounted pension benefits under the LCI pension plan, a copy
of which is attached as Exhibit A hereto, in accordance with the terms and
conditions of such plan. No amendment to the LCI pension plan occurring after
the date hereof, except amendments require by law, shall adversely affect or in
any way reduce the benefits payable to the Executive under such plan as provided
in this Section 2(v). In addition, in the event that the Executive shall remain
an employee of the Company until May 31, 2002, and shall not be terminated for
Cause (as defined below) prior to that date, the Executive shall be entitled to
receive from the Company a special retirement supplement equal to U.S. $800,000
as of June 1, 2002, which shall be paid, at the election of the Company, in a
single payment in cash or in the form of a pension enhancement payable in a
manner determined by the Company. For purposes of this Agreement, "Cause" shall
mean (i) the continued failure by the Executive to devote time and effort to the
performance of the Executive's duties as an employee consistent with his
performance prior to the date of this Agreement, after written demand for
improved performance has been delivered to the Executive by the Company which
specifically identifies how the Executive has not devoted such consistent time
and effort to the performance of

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his duties; or (ii) the willful engaging by the Executive in misconduct which is
materially injurious to the Company or LCI, monetarily or otherwise.

        If the Company shall determine that the special retirement supplement
shall be paid as a pension enhancement, the Executive's beneficiary with respect
to the survivor benefits, if any, payable under this Section shall be the
Executive's spouse (if any) or other beneficiary who is entitled to survivor
annuity benefits under the LCI pension plan to the extend provided under the
payment form selected by the Company. In the event that the Executive does not
have a spouse or other beneficiary who is entitled to survivor annuity benefits
under the LCI pension plan, then the Executive's secondary beneficiary as
designated by the Executive in writing, or if none, his estate shall be his
beneficiary hereunder.

        If the Executive shall become entitled to the special retirement
supplement pursuant to this Section and the Executive shall die prior to the
date on which benefits are to be paid or commence in payment pursuant to this
Section, then the Executive's beneficiary shall be entitled to receive: (i) if
the Company determines to pay such supplement in a single sum, a single payment
in cash, or (ii) if the Company determines to pay such supplement as a pension
enhancement, an amount equal to the monthly retirement income such beneficiary
would have been entitled to receive if the Executive had commenced receiving the
supplement on the first day of the month following the Executive's termination
of employment with the Company and then died.

        The benefits provided under this Section shall be treated as being
provided under a retirement plan of the Company, the purpose of which is to
provide unfunded pension benefits for a select management or highly compensated
employee. The amounts payable pursuant to this Section are and for all purposes
shall continue to be a part of the general assets and liabilities of the
Company, and the Executive's (and any beneficiaries') right to receive a payment
from the Company pursuant to the Special Retirement Supplement shall be no
greater than the right of any unsecured general creditor of the Company.

                (vi)    Options. If and to the extent options are granted, in
February 2002 the Stock Option Committee of the Board of Directors shall
determine the number of options, if any, to be granted to the Executive in
accordance with the Company's stock option plans (the "Option Plans"). Options
granted to the Executive under the Option Plans shall continue to vest in
accordance with their terms as a result of the Executive's termination of
employment on May 31, 2002, by reason of retirement under the normal retirement
provisions of a pension or retirement plan maintained by the Company or LCI.

                (vii)   Insurance. The Company represents and warrants to the
Executive that during his term as Executive Vice President and President -
Construction Materials, it maintained, and currently maintains, primary
directors' and officers' liability insurance policies in an aggregate amount of
$25 million and excess liability insurance policies for an additional $35
million, subject to the terms and conditions set forth therein. The Company
further represents and warrants that no

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executive officer of the Company has actual knowledge of any existing claim to
be submitted for coverage under such insurance policies.

        3.      Termination. This Agreement shall terminate automatically upon
the death of the Executive. If this Agreement is terminated by reason of the
Executive's death, then except as otherwise provided herein or in the Company's
or LCI's benefit plans the Executive's estate shall receive those death benefits
payable under the Company's or LCI's benefit plans, policies and procedures in
which the Executive is as of the date hereof eligible to participate, including,
without limitation, the LCI pension plan.

        4.      Repayment of Indebtedness. All indebtedness owed by the
Executive to the Company relating to his residence at 793 Stephanie Circle,
Great Falls, Virginia 22066, shall be repaid by the Executive on or before the
earlier to occur of the closing of the sale by the Executive of such residence
or May 31, 2003. The face amount of the note evidencing such indebtedness was
$132,500 as of March 31, 2001. All other indebtedness owed by the Executive to,
or advances to the Executive from, either the Company or LCI shall be repaid by
the Executive on or before August 31, 2002, or deducted from the special
retirement supplement payable to the Executive pursuant to Section 2(v) hereof.

        5.      Confidential Information. The Executive shall hold in strictest
confidence and shall not directly or indirectly use for his own personal benefit
or for the benefit of anyone else or disclose to anyone else (including, without
limitation, any natural person, corporation, partnership or any other form of
entity or person) any of the Company's or LCI's confidential and proprietary
information except with the prior written consent of the Company or to the
extent necessary in connection with the Executive's duties hereunder or unless
required by a court of law. Except as required by law (including, without
limitation, disclosure under applicable securities law and disclosure to
auditors), or as necessary to enforce the terms of this Agreement, the Company,
LCI and the Executive shall hold in strictest confidence the terms of this
Agreement and the Executive shall not disclose to or discuss with any employee
of the Company or LCI the terms of this Agreement. In the event the Executive is
required or requested to disclose confidential information, he will provide
prompt notice to the Company in order that the Company may prepare the
appropriate protective order and/or waive the Executive's compliance with the
provisions of this Agreement. The terms of this Section 5 shall continue in
effect notwithstanding the termination of this Agreement.

        6.      No Conflicting Agreements. The Executive represents and warrants
to the Company and LCI that he is not a party to any agreement, contract, or
understanding, whether employment or otherwise, that would in any way restrict
or prohibit him from undertaking or performing his duties and obligations under
this Agreement.

        7.      Withholding Taxes. The Company and LCI shall withhold from any
payments to be made to the Executive hereunder such amounts as shall be required
by federal, state, and local withholding tax laws. The Executive (and/or his
beneficiary) shall bear all taxes on amounts paid under this Agreement to the
extent that no taxes are withheld, irrespective of whether withholding

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is required. The Executive will be required to pay to the Company the amount of
any federal, state or local taxes required by law to be withheld in connection
with the Agreement in the event that the Executive is not being paid by the
Company or amounts being paid by the Company to the Executive are insufficient
to satisfy any such withholding obligation.

        8.      Covenant Not to Compete. Without the prior written consent of
the Company, which consent shall not be unreasonably withheld, the Executive
shall not, for a period commencing on the date hereof and ending on May 31,
2003, directly or indirectly, engage or participate in any manner whatsoever,
either personally or in any status or capacity, including but not limited to as
an employer, employee, associate, member, officer, director, owner (excluding an
owner of less than 5% of the equity of any business), salesman, representative,
principal, agent, trustee, servant or consultant or by means of any corporation,
partnership, proprietorship or other legal entity or device, in any business or
activity which is in direct or indirect competition with either the Company, LCI
or their respective affiliates in the United States or Canada (a "Competitor").
In the event that the Executive believes that the prior written consent
contemplated by this Section 8 has been unreasonably withheld by the Company,
the Executive shall have the right to have such decision reviewed independently
by the Management Development and Compensation Committee of the Board of
Directors of the Company. In the event that the terms of this Section 8 should
ever be deemed to exceed the time or geographic limitation permitted by
applicable law, then such terms shall be reformed to the maximum time or
geographic limitation permitted by applicable law. In the event of a breach by
the Executive of the terms of this Section 8, the Company shall be entitled to
an injunction restraining him from engaging or participating in such business or
activity. However, nothing in this Section 8 shall be construed as prohibiting
(a) the Company from pursuing any other remedies available to the Company for
the breach by the Executive of the terms of this Section 8, or any other terms
of this Agreement, including the recovery of damages from the Executive or (b)
the Executive from continuing his employment with another employer which, after
his employment by such employer, is acquired or controlled by an entity or
device considered to be a Competitor, provided the Executive had no prior
knowledge of such acquisition or control relationship at the time he commenced
employment with such employer. The term of this Section 8 shall continue in
effect notwithstanding the termination of this Agreement. The restrictive
covenants upon the Executive set forth in this Section 8 are the essence of this
Agreement; they shall be construed as independent of any other provision of this
Agreement, and the existence of any claim or cause of action against the
Company, whether predicated on this Agreement or not shall not constitute a
defense to the enforcement by the Company of the restrictive covenants contained
herein.

        9.      Assignment. This Agreement is personal in nature and none of the
parties hereto shall assign or transfer this Agreement or any rights or
obligations hereunder without the prior written consent of the other parties;
provided, however, that in the event of any consolidation or merger of the
Company or LCI with or into any other corporation or any sale or transfer of all
or substantially all of the assets of either the Company or LCI, this Agreement
shall inure to the benefit of and be binding on the successor to the Company's
or LCI's, as the case may be, business and assets.

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        10.     Notices. For purposes of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered personally or mailed by certified
or registered mail, return receipt requested, postage prepaid:

        if to the Executive, to:    Mr. Edward T. Balfe
                                    793 Stephanie Circle
                                    Great Falls, Virginia  22066

        If to the Company, to:      Lafarge Corporation
                                    12950 Worldgate Drive, Suite 500
                                    Herndon, Virginia  20170
                                    Attention: President and
                                               Chief Executive Officer

        If to LCI, to:              Lafarge Canada Inc.
                                    606 Cathcart
                                    Montreal, Quebec
                                    CANADA H3B 1L7
                                    Attention: President and
                                               Chief Executive Officer

or to such other address as either party may have furnished to the other in
writing in accordance herewith, except that notices of change of address shall
be effective only upon receipt.

        11.     Miscellaneous. No provision of this Agreement may be amended,
modified, waived, or discharged unless such amendment, modification, waiver, or
discharge is in writing and signed by the party against whom the amendment,
modification, waiver, or discharge is sought to be enforced. No waiver by either
party at any time of any breach or default in the performance of any provision
of this Agreement to be performed by the other party shall be deemed a waiver of
any similar or dissimilar provision at the same time or at any prior or
subsequent time. The validity, interpretation, construction, and performance of
this Agreement shall be governed by the laws of the State of Virginia.

        12.     Severability; Validity. Every provision in this Agreement is
intended to be severable. The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement. If any provision of this Agreement is deemed or
held to be invalid or unenforceable, there shall be added automatically to this
Agreement in lieu thereof a provision as similar in terms to such invalid or
unenforceable provision as may be possible and be valid and enforceable.

        13.     Headings. The headings contained herein are for reference
purposes only and shall not in any way affect the meaning or interpretation of
any provision of this Agreement.

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        14.     Entire Agreement. This Agreement constitutes the entire
agreement of the parties hereto relating to the subject matter hereof, and there
are no written or oral terms or representations made by any party other than
those contained herein.

        15.     General Release. In consideration of the monetary payments and
other benefits provided by the Company and LCI to the Executive described above,
the Executive acknowledges and agrees that, except with respect to claims made
under this Agreement or under any of the benefit plans, policies or procedures
contemplated hereby, for which this release shall not apply, he has and will
make no claim of any kind against: (i) the Company, (ii) LCI, (iii) any of the
Company's or LCI's parent companies, subsidiaries, and affiliated companies, or
(iii) any of the officers, directors, agents, employees, representatives,
attorneys, or any successors and assigns of such entities. This includes but is
not limited to any claim based on any state or federal statutory or common law
that applies or is asserted to apply, directly or indirectly, to the Executive's
employment relationship or the termination of the Executive's employment
relationship with either the Company or LCI. Thus, the Executive agrees not to
make any claims such as for wrongful discharge, unlawful discrimination on the
basis of age or other form of unlawful employment discrimination, retaliation,
breach of contract (express or implied), intentional or negligent infliction of
emotional distress, defamation, duress, fraud or misrepresentation, or any
violation of Title VII of the Civil Rights Act of 1964, the Age Discrimination
in Employment Act of 1967, the Employee Retirement Income Security Act of 1974,
or similar state or federal laws.

        The effect of this Agreement is to waive and release any and all claims,
demands, actions, or causes of action that the Executive may now or hereafter
have against the entities and individuals named above for any liability, whether
vicarious, derivative, or direct. This includes any claims for damages (actual
or punitive), back wages, future wages, bonuses, reinstatement, accrued vacation
leave benefits, past and future employee benefits (except to which there is
vested entitlement) including contributions to the Executive's employee benefit
plans, compensatory damages, penalties, equitable relief, attorney's fees, costs
of court, interest, and any and all other loss, expense, or detriment of
whatever kind, resulting from, growing out of, connected with, or related in any
way to the Executive's employment relationship or the termination of the
Executive's employment relationship with either the Company or LCI.
Notwithstanding the foregoing provisions of this Section 15, this general
release does not apply to any rights or claims that may arise after the date
this Agreement is executed and does not affect the coverage referenced in
Section 2(vii) and will terminate contemporaneously with any termination or
expiration of this Agreement if the special retirement supplement contemplated
by Section 2(v) is not paid.

        Neither the Company nor LCI hereby waives or releases any claim, demand
or cause of action that it may now or hereafter have against the Executive for
any liability whatsoever. The Company and LCI represent and warrant that none of
their respective executive officers has actual knowledge of any existing claim
or cause of action of the Company or LCI against the Executive or any present
intention of either the Company or LCI to bring a claim or cause of action
against the Executive. Upon default by any party hereto of any obligation
contemplated by this Agreement, the defaulting party shall be liable for
damages, including without limitation all costs and attorneys' fees incurred by
the non-defaulting party in any suit precipitated by the default.

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        16.     Term of Offer. The Executive acknowledges that he had no fewer
than twenty-one days to consider the terms of this Agreement prior to its
execution.

        17.     Effective Date. This Agreement will become effective and
enforceable seven days after the Executive's execution of this Agreement. At any
time before such date, the Executive understands that he may revoke this
Agreement.

        18.     Consultation With an Attorney. The Executive acknowledges that
he has been advised that he had the right to consult an attorney before
executing this Agreement.

        19.     Voluntary Agreement. The Executive acknowledges that his
execution of this Agreement was knowing and voluntary and that he had a
reasonable time to deliberate regarding its terms.

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date and year first written above.

                             LAFARGE CORPORATION

                             By: /s/ James J. Nealis
                                 ----------------------------------------------
                                 Name: James J. Nealis III
                                       ----------------------------------------
                                 Title: Senior Vice President - Human Resources
                                        ---------------------------------------

                             LAFARGE CANADA INC.

                             By: /s/ James J. Nealis
                                 ----------------------------------------------
                                 Name: James J. Nealis III
                                       ----------------------------------------
                                 Title: Senior Vice President - Human Resources
                                        ---------------------------------------

                             /s/ Edward T. Balfe
                             --------------------------------------------------
                             Edward T. Balfe

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                                                                    Exhibit 10.5

                                    AGREEMENT

        THIS AGREEMENT ("Agreement"), made and entered into as of the 21st day
of May, 2001, by and between Lafarge Corporation, a Maryland corporation (the
"Company"), and Larry J. Waisanen, an individual residing in Great Falls,
Virginia (the "Executive"),

                              W I T N E S S E T H:

        WHEREAS, the Executive is currently employed as Executive Vice President
and Chief Financial Officer of the Company and has agreed to remain employed in
such capacity until at least June 30, 2002, or until his successor is appointed;
and

        WHEREAS, the Company desires to ensure that the Executive will remain an
employee of the Company until at least June 30, 2002, or until his successor is
appointed, on the terms herein provided;

        NOW, THEREFORE, for and in consideration of the premises and of the
mutual covenants and agreements contained herein, the Executive and the Company
hereby agree as follows:

        1.      Term and Duties. The Executive agrees to advise the Company on
or before June 30, 2002 whether he intends to resign as Executive Vice President
and Chief Financial Officer of the Company effective as of December 31, 2002, or
such earlier date as his successor is appointed and commences his or her
employment with the Company. During the period (the "Term") commencing on the
date hereof and ending on December 31, 2002 (the "Termination Date"), the
Executive shall perform such duties, functions and responsibilities required by
his position as Executive Vice President and Chief Financial Officer of the
Company until his resignation from such office is effective and thereafter until
the Termination Date the Executive shall perform such duties as are delegated to
him by the Chief Executive Officer of the Company.

        2.      Compensation.

                (i)     Base Amount. The Company shall pay to the Executive
        during 2001 a base amount ("Base Amount") at the rate of U.S. $300,000
        per year, payable in semi-monthly installments, or otherwise in
        accordance with the Company's usual payroll practices. In February 2002,
        the Board of Directors of the Company shall determine the base amount
        payable to the Executive for the remainder of the Term in accordance
        with established Company guidelines. In addition, if and to the extent
        bonuses are paid, in February 2002, the Board of Directors of the
        Company shall determine the amount of bonus, if any, payable to the
        Executive for services rendered in 2001 in accordance with the Company's
        bonus plan. In addition, in the event that either the Executive resigns
        pursuant to the terms of this Agreement on or before June 30, 2002, or
        the Company elects on or prior to June 30, 2002, to terminate the
        Executive for reasons other than for

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        Cause, the Executive shall be eligible to receive a bonus for services
        rendered in 2002 in accordance with the Company's bonus plan and subject
        to the recommendations of management and the Board of Directors based on
        the Company's and the Executive's performance. Such bonus, if any, will
        be prorated for the number of months in 2002 during which the Executive
        was employed hereunder and paid to the Executive on or before the date
        his employment with the Company is terminated.

                In the event that the Executive shall die during the period
        commencing on the date that either the Executive or the Company shall
        exercise their respective rights under this Agreement to terminate the
        Executive's employment with the Company and ending on the date the
        Executive's successor shall commence employment with the Company, the
        Executive's survivor shall be eligible to receive the Survivor Income
        Benefit normally provided to actively employed officers of the Company.
        In the event that the Executive shall die after his successor shall
        commence employment with the Company but before December 31, 2002, the
        Executive's survivor (determined in accordance with the Company's
        Survivor Income Benefit policy) shall be entitled receive the
        Executive's monthly Base Amount, payable in accordance with this
        Agreement, until December 31, 2002, plus any bonus approved by the Board
        of Directors of the Company which otherwise would be payable to the
        Executive during the period commencing on the date of the Executive's
        death and ending on December 31, 2002.

                (ii)    Expenses. The Executive shall be entitled to receive
        prompt reimbursement for all reasonable business expenses incurred by
        the Executive, in accordance with the policies and procedures of the
        Company.

                (iii)   Benefit Plans. During the Term, the Executive shall be
        entitled to continue to participate in or receive benefits under all of
        the Company's standard salaried employee benefit plans, executive
        benefit plans, policies, practices, and arrangements in which he is
        presently eligible to participate, on a basis consistent with the terms,
        conditions, and overall administration of such benefit plans and
        arrangements. In addition, if at any time prior to the date which is
        ninety (90) days following the Termination Date, the Executive moves his
        principal residence outside of Virginia, the Executive shall be entitled
        to receive reimbursement for the expenses of such move in accordance
        with the Company's presently existing standard policy; provided,
        however, that if such move is made in connection with the acceptance by
        the Executive of new employment, such reimbursement shall be reduced by
        an amount equal to the moving expenses, if any, paid or reimbursed by
        the Executive's new employer.

                (iv)    Miscellaneous Pay and Benefits. The Executive shall be
        entitled to receive standard retiree life and medical insurances in
        accordance with the forms and coverage offered by the Company.

                (v)     Special Retirement Supplement. On or prior to June 30,
        2002, the Executive may elect to resign as Executive Vice President and
        Chief Financial Officer of the Company under the terms of this Agreement
        by giving written notice to the chief executive officer of the Company.
        In the event that the Executive shall elect to resign effective as of
        the

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        Termination Date and the Executive's employment is not terminated for
        Cause prior to the Termination Date, the Executive shall be entitled to
        receive from the Company as of January 1, 2003, a Special Retirement
        Supplement (as set forth below) in an amount (the "Amount") equal to the
        sum of (x) the Executive's annual base salary in effect at the time the
        notice of resignation is provided to the Company, and (y) the amount of
        the 2001 bonus, if any, received by the Executive; provided, however,
        that in any event, the Amount shall not be less than $480,000. In the
        event that the Executive elects not to resign pursuant to the terms of
        this Agreement on or before June 30, 2002, and the Company elects on or
        prior to June 30, 2002, to terminate the Executive effective as of the
        Termination Date for reasons other than for Cause, the Executive shall
        be entitled to receive as of January 1, 2003, a Special Retirement
        Supplement in an amount equal to two times the Amount. For purposes of
        this Agreement, "Cause" shall mean (i) the continued failure by the
        Executive to devote time and effort to the performance of the
        Executive's duties as an employee consistent with his performance prior
        to the date of this Agreement, after written demand for improved
        performance has been delivered to the Executive by the Company which
        specifically identifies how the Executive has not devoted such
        consistent time and effort to the performance of his duties; or (ii) the
        willful engaging by the Executive in misconduct which is materially
        injurious to the Company, monetarily or otherwise.

                The Special Retirement Supplement, if any, shall commence on
        January 1, 2003 and shall be paid in a manner that will provide the
        Executive and his beneficiary additional retirement benefits such that,
        when combined with benefits provided under the Lafarge Corporation
        Retirement Plan (the "Retirement Plan") and the Lafarge Corporation
        Supplemental Executive Retirement Plan (the "SERP"), the Executive
        receives a level monthly pension starting on January 1, 2003, in the
        form of a life annuity with 60 monthly payments guaranteed and a 50%
        survivor annuity thereafter.

                The Executive's beneficiary with respect to the survivor
        benefits, if any, payable under this Section shall be the Executive's
        spouse (if any) who is entitled to survivor annuity benefits under the
        Retirement Plan. In the event that the Executive does not have a spouse
        who is entitled to survivor annuity benefits under the Retirement Plan,
        then the Executive's secondary beneficiary as designated by the
        Executive in writing, or if none, his estate shall be his beneficiary
        hereunder, but only with respect to the portion, if any, of the 60
        months of guaranteed payments remaining as of the date of the
        Executive's death.

                If the Executive shall become entitled to the Special Retirement
        Supplement pursuant to this Section and the Executive shall die prior to
        the date on which benefits are to commence pursuant to this Section,
        then the Executive's beneficiary shall be entitled to receive commencing
        on January 1, 2003, an amount equal to the monthly retirement income
        such beneficiary would have been entitled to receive had the Executive
        commenced receiving the Special Retirement Supplement in the form of a
        life annuity with 60 monthly guaranteed payments and a 50% spousal
        survivor annuity thereafter on January 1, 2003, and then died.

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                The monthly retirement income payable to the Executive pursuant
        to this Section has been determined assuming the Executive will begin
        receiving his retirement benefits under the Retirement Plan and the SERP
        as of January 1, 2006.

                The actuarial conversion of the Amount to the monthly payments
        described in this Section shall be determined using a 7.75% rate of
        interest and the 1983 Group Annuity Mortality Table (with a blend of 50%
        male and 50% female rates).

                The benefits provided under this Section shall be treated as
        being provided under a retirement plan of the Company the purpose of
        which is to provide unfunded pension benefits for a select management or
        highly compensated employee. The amounts payable pursuant to this
        Section are and for all purposes shall continue to be a part of the
        general assets and liabilities of the Company, and the Executive's (and
        any beneficiary's) right to receive a payment from the Company pursuant
        to the Special Retirement Supplement shall be no greater than the right
        of any unsecured general creditor of the Company.

                (vi)    Options. Except as otherwise provided in this Section,
        options granted to the Executive under the Company's option plans (the
        "Option Plans") shall continue to vest in accordance with their terms as
        a result of the Executive's termination of employment on the Termination
        Date by reason of retirement under the normal or early retirement
        provisions of a pension or retirement plan maintained by the Company.

                (vii)   Insurance. The Company represents and warrants to the
        Executive that during his term as Executive Vice President and Chief
        Financial Officer, it maintained, and currently maintains, primary
        directors' and officers' liability insurance policies in an aggregate
        amount of $25 million and excess liability insurance policies for an
        additional $35 million, subject to the terms and conditions set forth
        therein. The Company further represents and warrants that no executive
        officer of the Company has actual knowledge of any existing claim to be
        submitted for coverage under such insurance policies.

                (viii)  Salaried Position Elimination Policy. In the event that
        the Company shall no longer be subject to the reporting requirements of
        Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as
        amended, and thereafter the Executive retires, resigns or is terminated
        other than for Cause, then the Executive's retirement, resignation or
        termination shall be considered an elimination event under the salaried
        position elimination policy of the Company.

        3.      Termination. This Agreement shall terminate automatically upon
the death of the Executive. This Agreement shall also terminate automatically
upon the agreement of the Executive and the Company for the Executive to remain
employed by the Company beyond the Termination Date. If this Agreement is
terminated by reason of the Executive's death, then except as otherwise provided
herein or in the Company's benefit plans, the Executive's estate shall receive
those death benefits payable under the Company's benefit plans, policies and
procedures in which the Executive is as of the date hereof eligible to
participate.

                                       4
<PAGE>   5

        4.      Repayment of Indebtedness. All indebtedness owed by the
Executive to the Company relating to his residence at 806 Sherlin Lane, Great
Falls, Virginia 22066, shall be repaid by the Executive on the earlier to occur
of the closing of the sale by the Executive of such residence or ninety (90)
days following the Termination Date. The face amount of the note evidencing such
indebtedness $73,332.94 as of April 30, 2001. All other indebtedness owed by the
Executive to, or advances to the Executive from, the Company shall be repaid by
the Executive on or before ninety (90) days following the Termination Date.

        5.      Confidential Information. The Executive shall hold in strictest
confidence and shall not directly or indirectly use for his own personal benefit
or for the benefit of anyone else or disclose to anyone else (including, without
limitation, any natural person, corporation, partnership or any other form of
entity or person) any of the Company's confidential and proprietary information
except with the prior written consent of the Company or to the extent necessary
in connection with the Executive's duties hereunder or unless required by a
court of law. Except as required by law (including, without limitation,
disclosure under applicable securities law and disclosure to auditors), or as
necessary to enforce the terms of this Agreement, the Company and the Executive
shall hold in strictest confidence the terms of this Agreement and the Executive
shall not disclose to or discuss with any employee of the Company the terms of
this Agreement. In the event the Executive is required or requested to disclose
confidential information, he will provide prompt notice to the Company in order
that the Company may prepare the appropriate protective order and/or waive the
Executive's compliance with the provisions of this Agreement. The terms of this
Section 5 shall continue in effect notwithstanding the termination of this
Agreement and shall be in addition to the Executive's common law obligations to
the Company as an employee, officer and director (or as a former employee,
officer and director).

        6.      No Conflicting Agreements. The Executive represents and warrants
to the Company that he is not a party to any agreement, contract, or
understanding, whether employment or otherwise, that would in any way restrict
or prohibit him from undertaking or performing his duties and obligations under
this Agreement.

        7.      Withholding Taxes. There shall be deducted from all amounts paid
under this Agreement any taxes required to be withheld by any federal, state,
local or other government. The Executive (and/or his beneficiary) shall bear all
taxes on amounts paid under this Agreement to the extent that no taxes are
withheld, irrespective of whether withholding is required.

        8.      Covenant Not to Compete. Without the prior written consent of
the Company, which consent shall not be unreasonably withheld, the Executive
shall not, for a period commencing on the date hereof and ending on the second
anniversary of the Termination Date, directly or indirectly, engage or
participate in any manner whatsoever, either personally or in any status or
capacity, including but not limited to as an employer, employee, associate,
member, officer, director, owner (excluding an owner of less than 5% of the
equity of any business), salesman, representative, principal, agent, trustee,
servant or consultant or by means of any corporation, partnership,
proprietorship or other legal entity or device, in any business or activity
which is in direct or indirect competition with either the Company or its
affiliates in the United States or Canada (a "Competitor"). In the event that
the Executive believes that the prior written

                                       5
<PAGE>   6

consent contemplated by this Section 8 has been unreasonably withheld by the
Company, the Executive shall have the right to have such decision reviewed
independently by the Management Development and Compensation Committee of the
Board of Directors of the Company. In the event that the terms of this Section 8
should ever be deemed to exceed the time or geographic limitation permitted by
applicable law, then such terms shall be reformed to the maximum time or
geographic limitation permitted by applicable law. In the event of a breach by
the Executive of the terms of this Section 8, the Company shall be entitled to
an injunction restraining him from engaging or participating in such business or
activity. However, nothing in this Section 8 shall be construed as prohibiting
(a) the Company from pursuing any other remedies available to the Company for
the breach by the Executive of the terms of this Section 8, or any other terms
of this Agreement, including the recovery of damages from the Executive or (b)
the Executive from continuing his employment with another employer which, after
his employment by such employer, is acquired or controlled by an entity or
device considered to be a Competitor, provided the Executive had no prior
knowledge of such acquisition or control relationship at the time he commenced
employment with such employer. The term of this Section 8 shall continue in
effect notwithstanding the termination of this Agreement; provided, however,
that the term of this Section 8 shall terminate contemporaneously with the
expiration of this Agreement in the event the Executive and the Company agree at
June 30, 2002 to extend the employment of the Executive with the Company and no
payments are made to the Executive pursuant to Section 2(v) hereof. The
restrictive covenants upon the Executive set forth in this Section 8 are the
essence of this Agreement: they shall be construed as independent of any other
provision of this Agreement, and the existence of any claim or cause of action
against the Company, whether predicated on this Agreement or not, shall not
constitute a defense to the enforcement by the Company of the restrictive
covenants contained herein.

        9.      Assignment. This Agreement is personal in nature and none of the
parties hereto shall assign or transfer this Agreement or any rights or
obligations hereunder without the prior written consent of the other parties;
provided, however, that in the event of any consolidation or merger of the
Company with or into any other corporation or any sale or transfer of all or
substantially all of the assets of the Company, this Agreement shall inure to
the benefit of and be binding on the successor to the Company's business and
assets.

        10.     Notices. For purposes of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered personally or mailed by certified
or registered mail, return receipt requested, postage prepaid:

        If to the Executive, to:    Mr. Larry J. Waisanen
                                    806 Sherlin Lane
                                    Great Falls, Virginia 22066

                                       6
<PAGE>   7

        If to the Company, to:      Lafarge Corporation
                                    12950 Worldgate Drive, Suite 500
                                    Herndon, Virginia  20170
                                    Attention: President and Chief Executive
                                               Officer

or to such other address as either party may have furnished to the other in
writing in accordance herewith, except that notices of change of address shall
be effective only upon receipt.

        11.     Miscellaneous. No provision of this Agreement may be amended,
modified, waived, or discharged unless such amendment, modification, waiver, or
discharge is in writing and signed by the party against whom the amendment,
modification, waiver, or discharge is sought to be enforced. No waiver by either
party at any time of any breach or default in the performance of any provision
of this Agreement to be performed by the other party shall be deemed a waiver of
any similar or dissimilar provision at the same time or at any prior or
subsequent time. The validity, interpretation, construction, and performance of
this Agreement shall be governed by the laws of the State of Virginia.

        12.     Severability; Validity. Every provision in this Agreement is
intended to be severable. The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement. If any provision of this Agreement is deemed or
held to be invalid or unenforceable, there shall be added automatically to this
Agreement in lieu thereof a provision as similar in terms to such invalid or
unenforceable provision as may be possible and be valid and enforceable.

        13.     Headings. The headings contained herein are for reference
purposes only and shall not in any way affect the meaning or interpretation of
any provision of this Agreement.

        14.     Entire Agreement. This Agreement constitutes the entire
agreement of the parties hereto relating to the subject matter hereof, and there
are no written or oral terms or representations made by any party other than
those contained herein.

        15.     General Release. In consideration of the monetary payments and
other benefits provided by the Company to the Executive described above, the
Executive acknowledges and agrees that, except with respect to claims made under
this Agreement or under any of the benefit plans, policies or procedures
contemplated hereby, for which this release shall not apply, he has and will
make no claim of any kind against: (i) the Company, (ii) any of the Company's
parent companies, subsidiaries, and affiliated companies, or (iii) any of the
officers, directors, agents, employees, representatives, attorneys, or any
successors and assigns of such entities. This includes but is not limited to any
claim based on any state or federal statutory or common law that applies or is
asserted to apply, directly or indirectly, to the Executive's employment
relationship or the termination of the Executive's employment relationship with
the Company. Thus, the Executive agrees not to make any claims such as for
wrongful discharge, unlawful discrimination on the basis of age or other form of
unlawful employment discrimination, retaliation, breach of contract (express or
implied), intentional or negligent infliction of emotional distress, defamation,
duress, fraud or misrepresentation, or any violation of Title VII

                                       7
<PAGE>   8

of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of
1967, the Employee Retirement Income Security Act of 1974, or similar state or
federal laws.

        The effect of this Agreement is to waive and release any and all claims,
demands, actions, or causes of action that the Executive may now or hereafter
have against the entities and individuals named above for any liability, whether
vicarious, derivative, or direct. This includes any claims for damages (actual
or punitive), back wages, future wages, bonuses, reinstatement, accrued vacation
leave benefits, past and future employee benefits (except to which there is
vested entitlement) including contributions to the Executive's employee benefit
plans, compensatory damages, penalties, equitable relief, attorney's fees, costs
of court, interest, and any and all other loss, expense, or detriment of
whatever kind, resulting from, growing out of, connected with, or related in any
way to the Executive's employment relationship or the termination of the
Executive's employment relationship with the Company. Notwithstanding the
foregoing provisions of this Section 15, this general release does not apply to
any rights or claims that may arise after the date this Agreement is executed,
does not affect the coverage referenced in Section 2(vii) and will terminate
contemporaneously with the expiration of this Agreement in the event the
Executive and the Company agree on or prior to June 30, 2002, to extend the
employment of the Executive with the Company beyond the Termination Date and no
payments are made to the Executive pursuant to Section 2(v).

        The Company does not hereby waive or release any claim, demand or cause
of action that it may now or hereafter have against the Executive for any
liability whatsoever. The Company represents and warrants that none of executive
officers has actual knowledge of any existing claim or cause of action of the
Company against the Executive or any present intention of the Company to bring a
claim or cause of action against the Executive. Upon default by any party hereto
of any obligation contemplated by this Agreement, the defaulting party shall be
liable for damages, including without limitation all costs and attorneys' fees
incurred by the non-defaulting party in any suit precipitated by the default.

        16.     Term of Offer. The Executive acknowledges that he had no fewer
than twenty-one days to consider the terms of this Agreement prior to its
execution.

        17.     Effective Date. This Agreement will become effective and
enforceable seven days after the Executive's execution of this Agreement. At any
time before such date, the Executive understands that he may revoke this
Agreement.

        18.     Consultation With an Attorney. The Executive acknowledges that
he has been advised that he had the right to consult an attorney before
executing this Agreement.

        19.     Voluntary Agreement. The Executive acknowledges that his
execution of this Agreement was knowing and voluntary and that he had a
reasonable time to deliberate regarding its terms.

                                       8
<PAGE>   9

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date and year first written above.

                            LAFARGE CORPORATION

                            By: /s/ James J. Nealis
                                ------------------------------------------------
                                  Name: James J. Nealis III
                                        ----------------------------------------
                                  Title: Senior Vice President - Human Resources
                                         ---------------------------------------

                            /s/ Larry J. Waisanen
                            ----------------------------------------------------
                            Larry J. Waisanen

                                       9

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