Document:

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                                                                   Exhibit 10.12

                             EMPLOYMENT AGREEMENT
                             --------------------

     THIS EMPLOYMENT AGREEMENT (this "Agreement") is effective as of July 30,
2001 (the "Effective Date"), by and between coolsavings.com inc., a Michigan
corporation (the "Company"), and Matthew Moog ("Moog").

                                   RECITALS:

     The Company desires to continue the employment of Moog and Moog desires to
continue to be employed by the Company, on the terms and subject to the
conditions set forth below.

     NOW, THEREFORE, in consideration of the mutual promises contained in this
Agreement, the parties agree as follows:

1.   Employment.

     a. The Company agrees to employ Moog and Moog accepts the employment, on
     the terms and subject to the conditions set forth below. During the term of
     employment hereunder, Moog shall at all times serve as President, Chief
     Executive Officer and Chief Operating Officer of the Company. In such
     capacity, Moog shall have the general authority to manage the business of
     the Company, subject to the direction of the Board of Directors (the
     "Board") of the Company (and subject to any limitations set forth in the
     Company's Articles of Incorporation, as amended ("Articles") and Bylaws),
     together with such other responsibilities and duties as may be assigned to
     Moog from time to time by the Board, which responsibilities and duties
     shall be consistent with Moog's positions as set forth above.

     b. Moog shall report directly to the Board throughout the term of this
     Agreement. Contemporaneously herewith, the Company shall appoint Moog to
     the Board (to fill an existing vacancy) and shall cause Moog to be included
     on the proxy for the Company's 2001 annual meeting as a director nominated
     for reelection for so long as he is acting as the Company's Chief Executive
     Officer.

     c. For service as a director, officer and employee of the Company, Moog
     shall be entitled to the full protection of the applicable indemnification
     provisions of the Articles and Bylaws of the Company, as they may be
     amended from time to time, and as provided by law.

2.   Term and Location of Employment.

     Subject to the provisions for termination provided below, the term of
     Moog's employment under this Agreement shall commence on the Effective Date
     and shall continue thereafter for a period of three (3) years after the
     Effective Date. For the term of this Agreement, Moog's employment shall be
     within the immediate vicinity of Chicago, Illinois.
<PAGE>

3.   Devotion to the Company's Business.

     Moog shall devote his full-time attention and his best efforts, knowledge,
     and skill to the business of the Company during the term of this Agreement.

4.   Compensation.

     a. During the term of this Agreement, the Company shall pay or provide, as
     the case may be, to Moog the compensation and other benefits and rights set
     forth in this Agreement, including but not limited to, those set forth in
     paragraphs 4, 5, 6, and 7 of this Agreement.

     b. Base Compensation. As compensation for the services to be performed
     hereafter, the Company shall pay to Moog, for each calendar year of this
     Agreement, a base salary (the "Base Salary"), payable in twenty-four (24)
     equal semi-monthly payments. The Base Salary for calendar year 2001 shall
     be Three Hundred Forty-Five Thousand Dollars ($345,000.00), and for each
     calendar year thereafter, it shall not be less than Three Hundred Forty-
     Five Thousand Dollars ($345,000.00).

     c. Annual Salary Increase. Moog's salary shall be reviewed at least once
     annually by the Compensation Committee or the Board of Directors, either of
     which may elect in its discretion to increase Moog's Base Salary at any
     time.

     d. Bonuses. Moog shall be eligible for participation in all bonus plans
     that may be established by the Company for senior management from time to
     time, which bonuses will be in cash and/or in stock options in the Company
     and payable at such times and in such amounts, as determined by any plans
     established by the Compensation Committee or the Board of Directors.

     e. Disability. During any period that Moog fails to perform his duties
     hereunder as a result of incapacity due to physical or mental illness (the
     "Disability Period"), Moog shall continue to receive his full Base Salary,
     bonuses and other benefits at the rate in effect for such period until his
     employment is terminated by the Company pursuant to Section 8a(5) hereof;
     provided, however, that payments so made to Moog during the Disability
     Period shall be reduced by the amounts, if any, which are paid to Moog at
     or prior to the time of any such payment under disability benefit plans of
     the Company.

5.   Benefits.

     a. Insurance. The Company shall provide to Moog all benefits normally
     provided to employees of the Company, including life, medical, dental and
     long term and short term disability insurance for himself, his spouse and
     eligible family members as may be determined by the Board to be consistent
     with the Company's standard policies; provided participation shall be
     subject to eligibility criteria to the extent of salary, age, and health
     qualifications, if any, that may generally apply under such plans.
     Additionally, the Company shall compensate Moog in an amount that, net of
     all applicable taxes, is sufficient to pay the premiums on a term life
     insurance policy on his life in the amount of

<PAGE>

     two times the Base Salary then in effect or Five Hundred Thousand Dollars
     ($500,000.00), whichever is greater. The Company shall procure such policy
     and pay the premium amounts directly to the insurer for the benefit of
     Moog, pay the amounts owing on such compensation to the appropriate taxing
     authorities as and when due, and include the gross amount paid for Moog's
     benefit hereunder in Moog's W2 income. Moog shall be the owner of such
     policy. Moog shall cooperate with the Company in securing the term life
     insurance policy as set forth above.

     b. Benefit Plans. Moog, at his election, may participate, during his
     employment hereunder, in all retirement plans, 401(K) plans and other
     benefit plans of the Company generally available from time to time to other
     executive employees of the Company and for which Moog qualifies under the
     terms of the plans, and nothing in this Agreement shall or shall be deemed
     to in any way affect Moog's right and benefits under any such plan except
     as expressly provided herein. Moog shall also be entitled to participate in
     any equity, stock option or other employee benefit plan that is generally
     available to senior executives. Moog's participation in and benefits under
     any such plan shall be on the terms and subject to the conditions specified
     in the governing document of the particular plan.

     c. Annual Vacation. Effective as of January 1 of each employment year
     hereunder, Moog shall be entitled to four (4) weeks of paid vacation time
     for such year, and up to two (2) weeks of unused vacation time in such year
     may be carried over into the next year. Upon any termination of this
     Agreement for any reason whatsoever, unused paid vacation time to which
     Moog is entitled to in that year (including "carried over" vacation time,
     if any) shall be paid to Moog within ten (10) days of such termination
     based on the Base Salary in effect on the effective date of such
     termination.

     d. Disability Policy. The Company shall compensate Moog in an amount that,
     net of all applicable taxes, is sufficient to pay the premiums on a
     disability insurance policy ("Disability Policy"). The Disability Policy
     shall, at a minimum, provide for the payment of 70% of Moog's Base Salary
     until he reaches the age of sixty-five (65), after a 180 day waiting
     period. The Company shall procure such policy and pay the premium amounts
     directly to the insurer for the benefit of Moog, pay the amounts owing on
     such compensation to the appropriate taxing authorities as and when due,
     and include the gross amount paid for Moog's benefit hereunder in Moog's W2
     income. Moog shall be the owner of such policy. Moog shall cooperate with
     the Company in securing the Disability Policy as set forth above.

6.   Reimbursement of Business Expenses.

     Subject to the Company's general policies, the Company shall reimburse Moog
     or provide him with an expense allowance during the term of this Agreement
     for travel, mobile telephone, and other expenses reasonably and necessarily
     incurred by Moog in connection with the Company's business. Moog shall
     furnish such documentation with respect to reimbursement to be paid
     hereunder as the Company shall reasonably request in accordance with the
     general policies of the Company.

<PAGE>

7.   Issuance of Stock Options/Vesting of Current Options.

     a. Upon execution of this Agreement, the Company shall enter into an award
     agreement with Moog granting Moog an option to purchase Seven Hundred Fifty
     Thousand (750,000) shares (the "Initial Grant") of the Company's common
     stock at an exercise price equal to the greater of (i) the closing price of
     the stock on the Nasdaq stock exchange (the "Closing Trade Price") on the
     date hereof, and (ii) the average Closing Price of the stock during the
     twenty (20) trading days immediately following the date hereof. Said option
     shall vest as follows: The Option shall vest and be immediately exercisable
     for One Hundred Fifty Thousand (150,000) shares as of the date hereof and
     shall vest and become exercisable as to one fifth (1/5) of the total
     Initial Grant shares on each of the first four annual anniversaries of the
     date hereof (e.g., 150,000 per year). Subject to the terms of the
     applicable grant agreement, each portion of the shares covered by the
     Option that vest shall be immediately exercisable and shall remain
     exercisable until the expiration of five (5) years after the vesting date
     applicable to such portion.

     b. Upon execution of this Agreement, the stock options for 250,000 shares
     of common stock in the Company issued to Moog on March 23, 2001 shall be
     amended to provide that they shall immediately and fully vest on January 1,
     2002, and, subject to the terms of the applicable grant agreement, become
     immediately exercisable.

     c. On each of the first two anniversaries of the date hereof (and subject
     to Moog's continuing employment), the Company shall grant Moog an
     additional option which shall be exercisable for not less than 200,000
     shares and shall be subject to a four year vesting schedule.

8.   Termination of Employment.

     a. Moog's employment under this Agreement may be terminated prior to the
     date ending three (3) years after the Effective Date under the following
     circumstances only:

          (1) by the Company, at any time other than during a Disability Period
     under Section 4e, for any reason whatsoever or for no reason, upon not less
     than ninety (90) calendar days written notice to Moog;

          (2) by the Company, at any time for "cause" as defined below, but only
     after written notice to Moog, and Moog's failure to cure within thirty (30)
     calendar days of receipt of such notice;

          (3) by Moog, at any time for any reason whatsoever or for no reason,
     upon not less than ninety (90) calendar days written notice to the Company;

          (4) by Moog, upon the occurrence of: (i) a failure to pay to Moog any
     monies, when due under the terms of this Agreement, within five (5)
     business days after Moog has provided written notice of such failure to
     pay; or (ii) a material breach of this Agreement by the Company that is not
     cured within thirty (30) calendar days after Moog has provided written
     notice that a breach has occurred;

<PAGE>

          (5) by the Company upon Moog's "permanent disability" as defined in
     Section 8c below, without prior notice; and

          (6) automatically upon Moog's death.

     b. For purposes hereof, for "cause" shall mean the material breach of any
     provision of this Agreement by Moog (including but not limited to a
     material breach of Section 11), or any action of Moog (or Moog's failure to
     act), which involves malfeasance, fraud, or moral turpitude, or which, if
     generally known, would or might reasonably have a material adverse effect
     on the Company and/or its reputation.

     c. For purposes hereof, Moog's "permanent disability" shall be deemed to
     have occurred if as a result of Employee's incapacity due to physical or
     mental illness, Moog shall have been absent from his duties hereunder on a
     full-time basis for one hundred twenty (120) consecutive days or a total of
     six (6) months, whether or not consecutive, within any twenty-four (24)
     month period during which Moog, by reason of his physical or mental
     disability or illness, shall have been unable to discharge his duties under
     this Agreement.

     d. No termination of employment under this Agreement shall be effective
     until the terminating party has delivered to the other party written notice
     of such termination setting forth the specific subsection of this Section 8
     upon which such termination is based. Said written notice shall be
     delivered to the other party as soon as reasonably possible after the
     decision to terminate has been made, but in no event later that the number
     of days required by the applicable subsection of this Section 8.

     Upon the effective date of any termination of Moog's employment under this
     Agreement, Moog shall be deemed to have resigned from any and all offices
     and directorships held by Moog in the Company and any entities controlled
     by the Company (the "Affiliates").

9.   Compensation Upon Termination.

     a. In the event that the Company terminates Moog's employment pursuant to
     Section 8a(1) hereof, or if Moog terminates his employment pursuant to
     Section 8a(4), the Company shall promptly pay Moog the sum of: (i) all
     accrued compensation (including vacation time) and bonus earned through the
     effective date of termination and (ii) an amount equal to the greater of
     the present value (determined as of the effective date of termination using
     a 7% discount rate) of the compensation owed Moog for the remainder of the
     original 3 year term of this Agreement or the present value (determined as
     of the effective date of termination using a 7% discount rate) of Moog's
     Base Salary then in effect. Additionally, the Company shall continue to pay
     and provide Moog all other benefits under this Agreement for the remainder
     of the original 3 year term of this Agreement or one (1) year after the
     effective date of termination, whichever is later; provided, however, with
     respect to any benefit in which Moog is no longer eligible to participate
     or which otherwise reasonably cannot be continued for him, the Company, in
     its sole discretion, shall either provide a substantially equivalent form
     of benefit to Moog,

<PAGE>

     or pay to Moog an amount equal to the present value (determined as
     prescribed above with respect to compensation) of the Company's cost of
     providing the benefit (at the applicable cost in effect immediately prior
     to termination of the benefit and including in the case of any amounts
     relating to life insurance and disability insurance under Sections 5(a) and
     5(d), the applicable taxes thereon resulting from any such payments) for
     the remainder of the original three-year term of this Agreement or one (1)
     year after the effective date of termination, whichever is later. If Moog
     accepts alternative employment at or after the effective date of
     termination, the Company shall be relieved of any obligation to provide
     benefits to Moog to the extent that the benefits are duplicative of
     benefits provided to Moog by his new employer; provided, notwithstanding
     the foregoing, if comparable health insurance coverage for Moog and his
     qualified beneficiaries is not provided by a new employer, Moog shall have
     the right to convert his health insurance benefits to individual coverage
     pursuant to COBRA. Should Moog so elect, the Company shall pay for such
     COBRA coverage for 18 months (but in no event later than the fourth
     anniversary of the Effective Date) of health care coverage beginning with
     the month contiguous with the last effective date of Moog's health care
     coverage by the Company.

     b. In the event that the Company terminates Moog's employment pursuant to
     Section 8a(2), or if Moog terminates his employment pursuant to Section
     8a(3), Moog shall be entitled to no further compensation or other benefits
     under this Agreement, except for any unpaid salary (including vacation
     time), bonus and benefits accrued and earned by him hereunder up to and
     including the effective date of such termination.

     c. In the event of termination of Moog's employment under this Agreement
     due to Moog's permanent disability or death (Sections 8a(5) or (6)), Moog
     (or his successors and assigns in the event of his death) shall be entitled
     to that portion of any unpaid salary (including vacation time), bonus and
     benefits accrued and earned by him hereunder up to and including the
     effective date of such termination.

10.  Effect of Termination Upon Company Stock Options. In the event of
     termination of Moog's employment by the Company under this Agreement for
     "cause" pursuant to Section 8a(2) or by Moog pursuant to Section 8a(3)
     hereof, all unvested stock options or other stock based compensation
     awarded to Moog that has not vested shall lapse in accordance with the
     terms of the plan or agreement under which such options were granted. In
     all other events of termination, including but not limited to the Company's
     termination of Moog's employment under this Agreement without "cause" or
     upon the death or permanent disability of Moog, all stock options and other
     stock based compensation awarded to Moog that have not vested shall
     immediately become fully vested and immediately exercisable. Any Stock
     Option Agreements between the Company and Moog shall be amended to conform
     to the provisions of this Section 10.

11.  Confidentiality, Noncompetition, Nonsolicitation, etc. Attached as Exhibit
     A is a copy of the Company's standard Terms of Employment (the "Terms").
     Sections 2 through 10 of the Terms are incorporated herein by this
     reference as if set out in full (with all references to "I" to mean
     "Moog"), provided, the noncompetition covenant set forth in Section 8 of

<PAGE>

     such Terms is hereby modified to be co-extensive with the term of this
     Agreement and for the following periods after the effective date of
     termination of Moog's employment:

     (i)   if Moog's employment is terminated pursuant to Sections 8a(1) or
           8a(4) of this Agreement: for a period of one (1) year from the
           effective date of termination;

     (ii)  if Moog's employment is terminated pursuant to Sections 8a(2) or
           8a(3) of this Agreement: for a period of two (2) years from the
           effective date of termination; and

     (iii) if Moog's employment is not renewed upon expiration of this Agreement
           or is terminated pursuant to Section 8a(5) of this Agreement: for a
           period of one (1) year from the expiration of this Agreement or the
           effective date of termination.

12.  Registration Rights. Moog shall be entitled to the "piggyback" registration
     rights provided for under that certain Registration Rights Agreement dated
     the date hereof among the Company, Moog and certain shareholders of the
     Company.

13.  [Intentionally Omitted]

14.  Arbitration. Any dispute or controversy arising out of or relating to this
     Agreement shall be settled finally and exclusively by arbitration held in
     Chicago, IL in accordance with the Expedited Employment Arbitration Rules
     of the American Arbitration Association then in effect. Such arbitration
     shall be conducted by an arbitrator(s) appointed by the American
     Arbitration Association in accordance with its rules and any finding by
     such arbitrator(s) shall be final and binding upon the parties. Judgment
     upon any award rendered by the arbitrator(s) may be entered in any court
     having jurisdiction thereof, and the parties' consent to the jurisdiction
     of the courts of the State of Illinois for this purpose. Nothing contained
     in this Section 14 shall be construed to preclude the Company from
     obtaining injunctive or other equitable relief to secure specific
     performance or to otherwise prevent a breach or contemplated breach of this
     Agreement by Moog as provided under the incorporated terms of Section 11
     hereof.

     15.  Notices. All notices, requests, consents and other communications,
     required or permitted to be given hereunder to be given under this
     Agreement shall be given in writing and shall be deemed sufficiently given,
     served and received for all purposes upon the first to occur of actual
     receipt, or delivery by generally recognized overnight courier service, or
     three (3) days after deposit in the United States mail, postage prepaid,
     registered or certified, return receipt requested addressed, to the
     following address (or to a revised address provided to the other party):

     If to the Company:

     coolsavings.com.
     360. N. Michigan Ave.
     19th Floor
     Chicago, IL 60601

<PAGE>

     with a copy to:

     Richard H. Rogel
     P.O. Box 1659
     Avon CO 81620-1659

     Guy R. Friddell, III, Esquire
     Manager
     Landmark Ventures VII, LLC
     150 W. Brambleton Avenue
     Norfolk, VA 23510

     If to Moog:

     Matthew Moog

     _______________
     _______________
     _______________

     16.  Miscellaneous.

     a. The provisions of this Agreement are severable and if any one or more
     provisions are determined to be illegal or otherwise unenforceable, in
     whole or in part, the remaining provisions and any partially unenforceable
     provision to the extent enforceable in any jurisdiction nevertheless shall
     be binding and enforceable.

     b. The rights and obligations of the Company under this Agreement shall
     inure to the benefit of, and shall be binding on, the Company and its
     successors and assigns, and the rights and obligations (other than
     obligations to perform services) of Moog under this Agreement shall inure
     to the benefit of, and shall be binding upon, Moog and his heirs, personal
     representatives and assigns. This Agreement is personal to Moog and he may
     not assign his obligations under this Agreement in any manner whatsoever.

     c. The failure of either party to enforce any provision or protections of
     this Agreement shall not in any way be construed as a waiver of any such
     provision or provisions, or as to any future violations thereof, nor
     prevent that party thereafter from enforcing each and every other provision
     of this Agreement. The rights granted the parties herein are cumulative and
     the waiver of any single remedy shall not constitute a waiver of such
     party's right to assert all other legal remedies available to it under the
     circumstances.

     d. This Agreement supersedes all agreements and understandings between the
     parties and may not be modified or terminated orally. No modification,
     termination, waiver, or attempted waiver shall be valid unless in writing
     and signed by the party against whom the same is sought to be enforced.

<PAGE>

     e. This Agreement shall be governed by and construed according to the laws
     of the State of Illinois.

     f. Captions and paragraph headings used herein are for convenience and are
     not a part of this Agreement and shall not be used in construing it.

     g. This Agreement may be executed in two or more counterparts, each of
     which shall be deemed an original, but all of which together shall
     constitute one and the same instrument. Copies (facsimile, photostatic or
     otherwise) of signatures to this Agreement will be deemed to be originals
     and may be relied on to the same extent as the originals.

     h. The Company hereby represents and warrants unto Moog as follows: (i) the
     Company has the requisite corporate power and authority to enter into this
     Agreement and carry out the transactions contemplated hereby; (ii) the
     execution, delivery, and performance of this Agreement and consummation of
     the transactions contemplated hereby have been duly authorized by all
     requisite corporate action and do not violate any agreement by which the
     Company is bound, or any law, rule, or regulation to which the Company is
     subject; and (iii) the person executing this Agreement on behalf of the
     Company has the requisite authority to execute this Agreement, has been
     duly authorized to do so, and upon his execution, this Agreement shall be
     binding upon the Company in accordance with its terms and conditions.

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

                              COMPANY:

                              coolsavings.com inc.
                              a Michigan corporation

                              By:_________________________
                                 Name:____________________
                                 Title:___________________

                              MOOG:

                              ____________________________
                              Matthew Moog<PAGE>   1

                                                                    Exhibit 10.1

                              MANAGEMENT AGREEMENT

        This Management Agreement (this "Agreement") dated as of July 11, 2001,
by and among Lafarge Corporation, a Maryland corporation ("Lafarge Corp."),
Lafarge SA, a corporation organized and existing under the laws of France
("Lafarge"), and Blue Circle North America, an Alabama corporation and an
indirect subsidiary of Lafarge ("BCNA").

                                    RECITALS

        A.      By means of its acquisition of Blue Circle Industries PLC
("BCI"), Lafarge acquired BCI's North American businesses, including (i) five
full-production cement plants, a slag grinding facility, eleven cement
terminals, thirteen pits and quarries for producing aggregates, sixty-one
ready-mixed concrete plants and several concrete block operations in the United
States, and certain additional assets in Ontario, Canada and Hamburg, New Jersey
to be divested by BCNA to third parties, all as owned and operated by BCNA and
as listed on Exhibit A hereto (such assets being herein collectively referred to
as the "Assets" and the business conducted by BCNA with the Assets being
referred to as the "Business") and (ii) certain assets and operations of BCNA
which have been or are currently being divested to third parties.

        B.      By agreement of even date herewith, Lafarge has granted and
extended to Lafarge Corp. an option (the "Option") to purchase the Assets (other
than the Assets being divested to third parties) upon the terms and conditions
set forth therein.

        C.      Lafarge desires that Lafarge Corp. provide certain ongoing
management services to BCNA with respect to the Assets and the Business, and
Lafarge Corp. is willing to provide such services upon the terms and conditions
contained herein.

        NOW, THEREFORE, in consideration of the representations, warranties,
covenants and agreements set forth herein, and for all other good and valuable
consideration the receipt and sufficiency of which are hereby acknowledged, the
parties hereto hereby agree as follows:

                                    ARTICLE I

                                   MANAGEMENT

        Section 1.1. Engagement. Subject to the terms and conditions hereof,
BCNA hereby engages Lafarge Corp. as the manager of the Assets and the Business,
to manage to the extent permitted by law the operations of the Business in their
ordinary course, and Lafarge Corp. agrees to be so engaged by BCNA. Subject to
the terms and conditions hereof, BCNA also hereby engages Lafarge Corp. to
supervise, to the extent required, the fulfillment by BCNA of its obligations to
provide certain transitional administrative services in connection with its sale
of certain businesses to third parties. In addition, the parties may agree by
separate agreement from time to time during the Term (as defined in Article V)
for Lafarge Corp. to undertake certain managerial responsibilities outside of
the ordinary course of business with respect to the Business and/or the Assets.
BCNA agrees to appoint the chief executive officer of Lafarge Corp. as the chief
executive officer of BCNA for the Term, with such authority as is customary for

<PAGE>   2

such position and with the appropriate executive officers of BCNA reporting to
the chief executive officer or his designees.

        Section 1.2. Delegation of Rights, Power and Authority. (a) Subject to
terms and conditions hereof (including the limitation contained in this
subsection (a) and in subsection (b) below), BCNA hereby delegates to Lafarge
Corp. all power and authority to manage the Assets and the Business in the
ordinary course, including without limitation the power and authority, in the
name and on behalf of BCNA:

                (i)     to manage the Assets and operate the Business on a
        day-to-day basis and make all operational decisions with respect thereto
        including, without limitation, decisions relating to pricing, customer
        collections, personnel hirings, terminations and compensation matters,
        corporate and regional reorganizations and restructurings, plant
        operations, and short and long-term contractual arrangements;

                (ii)    to authorize individual capital expenditures and/or
        capital lease projects of up to $10 million, provided such projects are
        within the overall BCNA budget approved by the BCNA Board of Directors;

                (iii)   to acquire assets, in any single transaction or series
        of related transactions, for up to $10 million, provided such
        acquisitions are within the overall BCNA budget for acquisitions and
        development approved by the BCNA Board of Directors;

                (iv)    to sell or divest Assets, in any single transaction or
        series of related transactions, for up to $10 million;

                (v)     to manage all BCNA cash management, debt management and
        treasury functions;

                (vi)    to manage all human resource and personnel matters;

                (vii)   to prepare and present annual capital and operating
        budgets to the Board of Directors of BCNA for approval and to use its
        best efforts to operate within such budgets (it being understood and
        agreed that existing budgets will be used for the remainder of 2001,
        subject to the approval of BCNA and Lafarge Corp.);

                (viii)  to employ from time to time third parties to render
        services to BCNA, including, but not limited to, attorneys, independent
        certified public accountants, consultants, brokers, agents and advisors
        (including attorneys, accountants, consultants, brokers, agents and
        advisors who also may act as attorneys, accountants, consultants,
        brokers, agents and advisors for Lafarge Corp.), to the extent that the
        service to be rendered to BCNA by any such third party is generally
        related to the business purpose or the day-to-day operations of BCNA;

                (ix)    to procure and maintain in force such insurance as
        Lafarge Corp. shall deem prudent to serve as protection against
        liability for loss and damage which may be occasioned by the activities
        to be engaged in by BCNA;

                                       2
<PAGE>   3

                (x)     to control any matters affecting the rights and
        obligations of BCNA, including the conduct of any litigation or
        arbitration proceedings and the incurring of legal expenses and the
        settlement of claims and litigation, to the extent that any such matter
        is generally related to the business purpose or the day-to-day
        operations of BCNA;

                (xi)    to open, maintain and close bank accounts and custodial
        accounts and to execute and deliver checks, drafts, endorsements and
        other orders for the payment of BCNA funds;

                (xii)   to appear and to represent BCNA before any governmental
        authority or regulatory agency and to make all necessary or appropriate
        filings before such authority or agency, to the extent that any such
        appearance, representation or filing is generally related to the
        business purpose or the day-to-day operations of BCNA; and

                (xiii)  to take such other action, execute and deliver such
        other documents and perform such other acts as may be deemed by Lafarge
        Corp. to be necessary or advisable to carry out the business and affairs
        of BCNA.

        (b)     Notwithstanding any other provisions of this Agreement to the
contrary, Lafarge Corp. shall not have the right, power or authority to, and
shall not, do, perform or authorize any of the following by or on behalf of BCNA
without having received the prior consent of the Board of Directors of BCNA:

                (i)     adopt annual capital or operating budgets;

                (ii)    authorize individual capital expenditures and/or capital
        lease projects, divestitures or acquisitions in excess of $10 million;

                (iii)   authorize financial borrowings or lines of credit;

                (iv)    authorize any single corporate guarantee for the payment
        of money or the performance of any contract or other obligation of any
        customer for an amount in excess of $10 million or any guarantee that
        would result in the total of all outstanding BCNA guarantees exceeding
        $25 million; or

                (v)     approve the hiring, termination or compensation
        arrangements of any BCNA employee who reports directly to the CEO or who
        has been designated as a key employee by the BCNA Board of Directors.

        Section 1.3. Interim Period. Lafarge Corp. will commence as soon as
possible an integration study (the "Integration Study") of the Business and
prepare a formal recommendation to BCNA and Lafarge regarding a proposed
structure which would, to the maximum extent possible, integrate the operation
of the Business with the business of Lafarge Corp. and identify synergies and
efficiencies which could be achieved from such integration while maintaining the
separate legal existence of BCNA and the separate reporting of its operations
and operating results. Such study is estimated to be completed within 100 days
from the date hereof and will include recommendations as to functions to be
staffed by BCNA employees, services to be supplied by Lafarge Corp., staffing
levels, office locations, trade name usage and designations

                                       3
<PAGE>   4

regarding product, and reporting procedures and a recommendation for the
operation of the businesses of BCNA which overlap or could overlap with those of
Lafarge Corp. Lafarge Corp. shall to the extent necessary and advisable engage a
consultant in connection with the Integration Study, the cost of which would be
paid fifty percent (50%) by BCNA and fifty percent (50%) by Lafarge Corp. Upon
the completion of the Integration Study and the submission by Lafarge Corp. of
its formal recommendation to BCNA and Lafarge, the parties will use their good
faith efforts to: (i) agree upon and implement an integration plan for the
Business; (ii) quantify the Estimated Incremental Costs and Estimated Net
Synergies as contemplated by Section 2.1(b); and (iii) agree upon such other
modifications to this Agreement as may be appropriate as a result of the
implementation of the recommendations contained in the Integration Study. Unless
otherwise agreed by the parties, Lafarge Corp. agrees to continue the Business
in its ordinary course during the Interim Period for the purpose of preserving
the Assets and, without limitation, shall continue as presently conducted those
businesses within the Business that overlap or could overlap with businesses
presently conducted by Lafarge Corp. until the parties agree upon and implement
an integration plan for such businesses. Notwithstanding the foregoing, Lafarge
Corp. will implement during the Interim Period non-structural cost savings
measures to the extent identified and practicable.

                                   ARTICLE II

                          MANAGEMENT FEE; REIMBURSEMENT

        Section 2.1. Management Fee. (a) During the period (the "Interim
Period") commencing as of the date hereof and ending on October 31, 2001 (or at
such other time as the parties agree to a new fee arrangement pursuant to an
amendment to this Agreement upon completion of the Integration Study), in
consideration of the services performed under this Agreement, BCNA shall pay to
Lafarge Corp. a monthly fee (the "Interim Fee") of $1 million, payable in
arrears on the last day of each month, with the initial payment (for July and
August 2001) due and payable on August 31, 2001, and reimburse Lafarge Corp.
promptly for any cost or expense incurred in connection with the performance of
this Agreement. For the month during which the Interim Period terminates or
expires, the Interim Fee shall be prorated as of the date of such termination or
expiration.

        (b)     Upon the termination or expiration of the Interim Period and for
the remainder of the Term, BCNA shall pay to Lafarge Corp., in consideration of
the services performed under this Agreement, an annual fee (the "Fee") equal to
(i) the Estimated Incremental Costs (as defined below), plus (ii) the greater of
(x) $12 million and (y) forty percent (40%) of the Estimated Net Synergies (as
defined below), plus (iii) ten percent (10%) of the increase, if any, in BCNA's
EBIT before G&A over prior period, starting in respect of the twelve-month
period ending December 31, 2002. The fixed portion of the Fee (contemplated by
clauses (i) and (ii) above) will be agreed upon by the parties at or prior to
the termination of the Interim Period and will be paid in arrears in four equal
quarterly payments for the period commencing on the date the Interim Period
terminates, with the initial payment due and payable three months after the
termination or expiration of the Initial Period, and the portion of the Fee
contemplated by clause (iii) above will be paid on an annual basis following
finalization of BCNA's annual results of operations and in any event, no later
than March 31 of each year during the Term. In addition, the percentage of the
increase contemplated by the portion of the Fee referenced in clause (iii) above
will be retroactively increased from 10% to 25% in the event Lafarge Corp. fails
to

                                       4
<PAGE>   5

purchase the Assets under the Option. The Fee shall be prorated as of the date
of termination or expiration of this Agreement.

        For purposes of this Section 2.1(b), "Estimated Incremental Costs" shall
equal a fixed amount, as agreed upon by the parties upon completion of the
Integration Study, that equals the estimated annual incremental costs that will
be borne by Lafarge Corp. in connection with the performance of its obligations
under this Agreement, and "Estimated Net Synergies" shall be a fixed amount, as
agreed upon by the parties upon completion of the Integration Study, equal to
the estimated annual net synergies to be achieved in selling, general and
administrative cost savings as a result of combining the management of BCNA and
Lafarge Corp.

        (c)     In the event Lafarge engages Lafarge Corp. to perform services
beyond the ordinary course of business contemplated by this Agreement, and
Lafarge Corp. accepts such engagement, Lafarge Corp. will receive such
additional fees as the parties may agree upon in advance of such engagement.

        Section 2.2. Reimbursement of Expenses. BCNA shall reimburse Lafarge
Corp. for any costs or expenses incurred by Lafarge Corp. in connection with the
performance and/or termination of this Agreement, to the extent such costs or
expenses are not included in the compensation arrangements contemplated by the
Interim Fee or the Fee, including without limitation, operating expenditures
such as restructuring charges, relocation costs, and termination expenses.
Lafarge Corp. shall submit to BCNA monthly statements of any such expense, and
promptly provide such further documentation of expenses as BCNA shall reasonably
request. BCNA shall reimburse Lafarge Corp. for such expenses within thirty (30)
days of receipt of a statement. In addition, in the event of the termination of
this Agreement, BCNA shall reimburse Lafarge Corp. for any cost, expense or
financial consequence arising from the structural separation of Lafarge Corp.
and BCNA and their respective businesses, including without limitation any cost
or expense borne by Lafarge Corp. in reducing its management structure to manage
only its operations.

                                   ARTICLE III

                         LIABILITY AND INDEMNIFICATION;
                              CORPORATE OPPORTUNITY

        Section 3.1. Liability. (a) Neither Lafarge Corp., its affiliates,
officers, directors, employees or agents, shall be liable, responsible, or
accountable in damages or otherwise to Lafarge or BCNA for any action taken or
failure to act in connection with the operations, business and affairs of BCNA,
the management of the Business and the Assets or the performance by Lafarge
Corp. of its duties and obligations hereunder, unless such act or failure to act
was the result of willful misconduct or gross negligence.

        (b)     Lafarge Corp. may consult with and be entitled to rely upon the
advice of such legal counsel, accountants, appraisers, investment bankers, and
other consultants and advisers as it deems necessary or appropriate.

                                       5
<PAGE>   6

        Section 3.2. Indemnification. (a) Lafarge shall indemnify and hold
harmless Lafarge Corp., its affiliates, officers, directors, employees and
agents (in this Section sometimes individually called an "Indemnitee") from all
claims, causes of action, judgments, liabilities, damages, charges, fees
(including, without limitation, attorney's fees) and expenses of any kind
arising from the Business, the Assets, the operations, business and affairs of
BCNA or the performance by Lafarge Corp. of its duties and obligations
hereunder; provided, however, that no Indemnitee shall be indemnified by Lafarge
for any acts or omissions by the Indemnitee that constitute willful misconduct
or gross negligence.

        (b)     Without limiting subsection (a) above, Lafarge shall pay or
reimburse expenses incurred by an Indemnitee in connection with the Indemnitee's
appearance as a witness or other participation in a proceeding involving or
affecting BCNA at a time when the Indemnitee is not a named defendant or
respondent in the proceeding.

        (c)     The indemnification provided by this Section shall be in
addition to any other rights to which each Indemnitee may be entitled, as a
matter of law or otherwise, both as to action in the Indemnitee's capacity as
the manager of the Business and/or the Assets or an officer, director, employee
or agent of Lafarge Corp. or an affiliate thereof or as a person serving at the
request of Lafarge Corp. as set forth above and to action in another capacity,
and shall continue as to an Indemnitee who has ceased to serve in such capacity
and shall inure to the benefit of the heirs, successors, assigns, administrators
and personal representatives of the Indemnitees.

        Section 3.3. Corporate Opportunity. Any corporate opportunities
regarding acquisitions in North America presented by third parties to BCNA (or
Lafarge, with respect to BCNA) and/or Lafarge Corp. during the Term will be
first offered to or retained by Lafarge Corp., which will have the right to
pursue such opportunity to the exclusion of BCNA if so determined by the
committee of independent directors of Lafarge Corp. formed to consider, among
other things, issues related to this Agreement (the "Special Committee").
Lafarge and BCNA agree that BCNA shall notify Lafarge Corp. in writing promptly
of any such opportunity and Lafarge Corp. agrees to notify Lafarge and BCNA
within thirty (30) days after receipt of such notice as to whether it intends to
pursue such opportunity.

                                   ARTICLE IV

                           DISPUTE RESOLUTION PROCESS

        Section 4.1. Dispute Resolution Process. The parties agree to utilize
the following dispute resolution process during the Term:

        (a)     The parties subscribe to the principle that the actions taken
under this Agreement should maximize the benefits to both Lafarge Corp. and BCNA
and that, to the extent that a certain action benefits one party to the
detriment of the other, compensatory arrangements should be agreed upon by the
parties. The parties agree that this principle is to be judged in its totality
and not on an item-by-item basis.

        (b)     Any conflict between benefits to Lafarge Corp. and BCNA that
arises and involves matters exceeding $2.5 million that cannot be resolved by
the parties within ten (10)

                                       6
<PAGE>   7

business days would be submitted immediately to a resolution committee (the
"Resolution Committee") consisting of two members of the Special Committee of
Lafarge Corp. and two representatives of Lafarge.

        (c)     In the event a conflict cannot be resolved by the Resolution
Committee within ten (10) business days after submission (i.e., a proposed
action would be clearly beneficial to either Lafarge Corp. or BCNA and
detrimental to the other, and no adequate compensating actions would be taken to
satisfy the maximization principle referenced in (a) above), then the parties
agree either to refrain from taking the proposed action or resolve the issue as
soon as practicable by mediation or arbitration at the offices of Lafarge Corp.
in Herndon, Virginia, with one arbitrator or mediator appointed by the parties.

        Section 4.2. Reports. On a quarterly basis, Lafarge Corp. will prepare
and submit to the Resolution Committee a report describing all matters occurring
during the prior quarter that could involve a potential conflict and stating
whether the potential conflict has or has not been resolved by the parties and
whether the potential conflict requires the attention of the Resolution
Committee. The parties agree that during the Term, the Board of Directors of
Lafarge Corp. shall receive, for the purpose of exercising the rights of Lafarge
Corp. and performing its duties under this Agreement and the Option, quarterly
reports concerning the performance of the Assets containing the same level of
detail that they now receive concerning the business of Lafarge Corp.

                                    ARTICLE V

                                      TERM

        The term of this Agreement (the "Term") shall commence as of the date
hereof and terminate on December 31, 2002; provided, however, that this
Agreement shall be automatically renewed for additional one-year periods unless
either of BCNA or Lafarge Corp. gives the other party written notice no later
than six months prior to the scheduled expiration date of its intention to
terminate this Agreement. In the event this Agreement is not renewed, Lafarge
Corp. will provide such assistance during the six-month period prior to
expiration of this Agreement as Lafarge may reasonably request in implementing
alternative management arrangements for the Business.

                                   ARTICLE VI

                           RELATIONSHIP OF THE PARTIES

        Notwithstanding anything in this Agreement to the contrary, (a) the
relationship of Lafarge Corp. to BCNA and Lafarge shall be and remain that of an
independent contractor; (b) neither Lafarge Corp. nor any officer, director,
employee or agent thereof shall be deemed to be an employee of BCNA or Lafarge
by virtue of this Agreement; (c) nothing contained herein shall be deemed or
construed to create a partnership between BCNA or Lafarge on the one hand, and
Lafarge Corp., on the other hand, or to cause any party hereto to be responsible
in any way for the debts or obligations of any other party hereto.

                                       7
<PAGE>   8

                                   ARTICLE VII

                         REPRESENTATIONS AND WARRANTIES

        Section 7.1. Representations and Warranties of Lafarge Corp. Lafarge
Corp. represents, warrants and covenants to BCNA and Lafarge as follows:

        (a)     Lafarge Corp. is a corporation duly organized, validly existing
and in good standing under the laws of the State of Maryland.

        (b)     Lafarge Corp. has the requisite power and authority to execute
and deliver this Agreement and to perform its obligations hereunder.

        (c)     The execution, delivery and performance by Lafarge Corp. of this
Agreement have been duly and validly authorized, and no other action is required
to be taken to authorize such execution, delivery and performance. The
execution, delivery and performance by Lafarge Corp. of this Agreement are
within the powers of Lafarge Corp. and will not be in contravention of or result
in any breach or constitute a default under any applicable law, rule or
regulation or any loan, note or other agreement or instrument to which Lafarge
Corp. is a party or by which it or any of its properties are bound.

        (d)     No consent, approval, authorization or order of any court or
governmental agency or authority or of any third party which has not been
obtained is required in connection with the execution, delivery and performance
by Lafarge Corp. of this Agreement.

        Section 7.2. Representations and Warranties of BCNA and Lafarge. Each of
BCNA and Lafarge severally represent, warrant and covenant to Lafarge Corp. as
follows:

        (a)     It is an entity duly organized, validly existing and in good
standing under the laws of the county or state of its formation.

        (b)     It has the requisite power and authority to execute and deliver
this Agreement and to perform its respective obligations hereunder.

        (c)     The execution, delivery and performance by it of this Agreement
have been duly and validly authorized, and no other action is required to be
taken to authorize such execution, delivery and performance. The execution,
delivery and performance by it of this Agreement are within its powers and will
not be in contravention of or result in any breach or constitute a default under
any applicable law, rule or regulation or any loan, note or other agreement or
instrument to which it is a party or by which it or any of is properties are
bound.

        (d)     No consent, approval, authorization or order of any court or
governmental agency or authority or of any third party which has not been
obtained is required in connection with the execution, delivery and performance
by it of this Agreement.

                                       8
<PAGE>   9

                                  ARTICLE VIII

                                  MISCELLANEOUS

        Section 8.1. Notice. All notices, demands, requests or other
communications required or permitted to be given under this Agreement shall be
in writing and shall be given either (a) by hand delivery, (b) by United States
mail, certified or registered, return receipt requested, postage prepaid, (c) by
electronic facsimile or (d) by overnight courier service (charges prepaid) with
proof of delivery at the following addresses:

                To Lafarge Corp.:    12950 Worldgate Drive, Suite 500
                                     Herndon, Virginia  20170
                                     Attention: President and Chief Executive
                                                Officer
                                     Fax: 703-796-2218

                To BCNA or Lafarge:  61, rue des Belles Feuilles
                                     75116 Paris
                                     Attention: Vice Chairman and Chief
                                                Operating Officer
                                     Fax:  011 33-1-44-34-12-22

        Section 8.2. Expense of Enforcement. If either party brings an action at
law or in equity to enforce or interpret this Agreement, the prevailing party in
such action shall be entitled to recover reasonable attorneys' fees and
disbursements incurred in connection with such proceeding, including but not
limited to arbitration or appellate proceedings, in addition to any other remedy
granted.

        Section 8.3. Entire Agreement; Acknowledgment. This Agreement
constitutes the full and complete agreement of the parties hereto with respect
to the subject matter hereof. This Agreement may be amended only by subsequent
written agreement among the parties hereto. Lafarge hereby acknowledges and
approves the covenants and agreements made by BCNA under this Agreement and
agrees to cause the BCNA Board of Directors to take any and all necessary action
to carry out the intent and purposes of this Agreement.

        Section 8.4. Severability. If any provision of this Agreement is held to
be unenforceable, this Agreement shall be considered divisible and such
provision shall be deemed inoperative to the extent it is deemed unenforceable,
and in all other respects this Agreement shall remain in full force and effect;
provided, however, that if any such provision may be made enforceable by
limitation thereof, then such provision shall be deemed to be so limited and
shall be enforceable to the maximum extent permitted by applicable law.

        Section 8.5. No Waiver. The failure of any party to insist upon strict
performance of a covenant hereunder or of any obligation hereunder, irrespective
of the length of time for which such failure continues, shall not be a waiver of
such party's right to demand strict compliance in the future. No consent or
waiver, express or implied, to or of any breach or default in the performance of
any obligation hereunder shall constitute a consent or waiver to or of any other
breach or default in the performance of the same or any other obligation
hereunder.

                                       9
<PAGE>   10

        Section 8.6. Survival of Representations and Warranties. All
representations, warranties and covenants made by the parties hereto in this
Agreement or any other document contemplated hereby shall be considered to have
been relied upon by the other parties hereto and shall survive the execution and
delivery of this Agreement, or such other document, regardless of any
investigation made by or on behalf of any such party.

        Section 8.7. Governing Law. This Agreement shall be construed in
accordance with and governed by the internal substantive law of New York. Each
party hereto agrees that the United States District Court for the Southern
District of New York shall have non-exclusive jurisdiction to settle any dispute
which may arise in connection with this Agreement and is not resolved pursuant
to the dispute resolution process contemplated by Article IV.

        Section 8.8. Captions, General, Number and Language of Inclusion. The
captions are inserted in this Agreement only for convenience of reference and do
not define, limit, or describe the scope or intent of any provisions of this
Agreement. Unless the context clearly requires otherwise, the singular includes
the plural, and vice versa, and the masculine, feminine, and neuter adjectives
include one another. As used in this Agreement, the word "including" shall mean
"including, but not limited to". All references to "$" or dollar amounts will be
to lawful currency of the United States of America.

        Section 8.9. Further Assurances. From and after the date hereof, the
parties hereto shall execute and deliver, as appropriate, any instruments or
documents and take or do, as appropriate, any other actions and things
reasonably necessary to enable Lafarge Corp. to perform fully its obligations
under this Agreement and to otherwise carry out the intention of this Agreement.

        Section 8.10. Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective heirs,
legal representatives, successors and assigns; provided, however, that no party
hereto may assign, transfer or otherwise dispose of all or any part of its
rights, duties or obligations hereunder without the written consent of the other
parties.

        Section 8.11. No Third Party Beneficiaries. Nothing in this Agreement,
either express or implied, is intended to or shall confer upon any person other
than the parties hereto, and their respective successors and permitted assigns,
any rights, benefits or remedies of any nature whatsoever under or by reason of
this Agreement.

        Section 8.12. Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall be an original and all of which shall
constitute but one and the same document.

                                       10
<PAGE>   11

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

                             LAFARGE CORPORATION

                             By:/s/ Philippe Rollier
                                ------------------------------------------------
                                    Name: Philippe Rollier
                                         ---------------------------------------
                                    Title: President and Chief Executive Officer
                                           -------------------------------------

                             LAFARGE SA

                             By:/s/ Bernard Kasriel
                                ------------------------------------------------
                                    Name: Bernard Kasriel
                                         ---------------------------------------
                                    Title: Vice Chairman
                                          -------------------------------------

                             BLUE CIRCLE NORTH AMERICA

                             By:/s/ Bernard Kasriel
                                ------------------------------------------------
                                    Name: Bernard Kasriel
                                         ---------------------------------------
                                    Title: Chairman
                                          -------------------------------------

                                       11
<PAGE>   12

                                    EXHIBIT A

                ASSETS COVERED BY MANAGEMENT AGREEMENT AND OPTION

Five Full Production Cement Plants:
        -       Ravena, New York
        -       Harleyville, South Carolina
        -       Atlanta, Georgia
        -       Calera, Alabama
        -       Tulsa, Oklahoma
One Slag Grinding Facility in Sparrows Point, Maryland

Eleven Cement Terminals

61 Ready Mix Concrete Plants in Georgia

13 Quarries and Sand and Gravel Pits in Georgia and Alabama

10 Concrete Block Plants in Georgia

The Option also covers all distribution and mobile equipment related to the
foregoing Assets

              ASSETS COVERED BY MANAGEMENT AGREEMENT UNTIL DIVESTED

PreCon in Ontario

One Quarry in Hamburg, New Jersey

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