EXHIBIT 10.6



 



Exhibit 10.6


January 13, 2004


Dear Mr. Olivié:



     This letter constitutes the entire agreement between American Standard
Companies and you regarding the separation of your employment with the Company.
Please read this letter carefully, then sign the copy of this Agreement and
Release where indicated on the last page and return it to me by February 3,
2004.



	 	1.	 	Your employment as an officer of the Company and any of its
affiliates of which you have been an officer or director will
terminate on May 1, 2004 (“Termination Date”) and you will remain on
the payroll through May 1, 2004 (at the same Base Salary of $400,000
per annum) even if the Company determines that you do not have to
report to the office throughout this time period. Through the
Termination Date, your Employment Agreement dated March 2, 2001,
revised March 19, 2001 (“Employment Agreement”), shall remain in
effect except as modified hereby.
	 
	 	2.	 	On or about May 1, 2004, in severance payments, you shall
receive in a lump sum payment of $1,400,000 less statutory
deductions representing an amount equal to two times the sum of your
current Base Salary and your Annual Incentive Plan Target award.
	 
	 	3.	 	On or about May 1, 2004, you will also receive an additional
lump sum payment of $350,000, less statutory deductions.
	 
	 	4.	 	With respect to the Annual Incentive Plan, you will receive
the $300,000 award, which you have previously earned with respect to
the 2003 Annual Incentive Plan Year, and which you are entitled to
thereunder. You will also receive a Long-Term Incentive award in
the amount of $520,000 under the Long-Term Incentive Plan, which you
have previously earned with respect to the 2001-03 Long-Term
Incentive Plan year, and which you are entitled to thereunder.
Payments under the foregoing plans will be made at the same time as
payments are made to other participants under each plan.
	 
	 	5.	 	On or about May 1, 2004, you will also be paid a lump sum
amount of $208,897, less statutory deductions, as a special
retention award payment in accordance with your Employment
Agreement.



 






 







	 	6.	 	In consideration of the receipt of the payments described in
Sections 1, 2, 3 and 5, you will surrender any and all rights to
those stock options granted to you under the American Standard
Companies Inc Stock Incentive Plan and the American Standard
Companies Inc. 2002 Omnibus Incentive Plan which have not vested as
of January 15, 2004 (the “Options”), and you release the Company
from any and all claims with respect to the Options.
	 
	 	7.	 	Your accounts in the Savings Plan of American Standard Inc.
and Participating Subsidiary Companies and in the American-Standard
Employee Stock Ownership Plan (the “ESOP”) are fully vested and your
rights and interests therein will be governed by their respective
terms. Contributions to such accounts will cease as of your
Termination Date.
	 
	 	8.	 	On or about May 1, 2004, you will receive a lump sum payment
equal to your accrued, unused vacation time as of your Termination
Date.
	 
	 	9.	 	Your medical, accident and life insurance benefits will be
continued through your Termination Date and for two years following
your Termination Date, under the same terms and conditions as though
you were actively employed, unless and until you acquire at least
equal alternative coverage.
	 
	 	10.	 	The Company will reimburse you for all reasonable bills that
you receive and submit for financial planning, tax return
preparation and audit for one year following your Termination Date,
in accordance with the same procedures for such reimbursement as are
now in effect and applicable to executive officers of the Company,
up to an aggregate maximum of $10,000.
	 
	 	11.	 	The Company shall provide a written reference letter. All
verbal references will be entirely consistent with this written
reference.
	 
	 	12.	 	Release of Claims Against American Standard Inc. In exchange
for those benefits provided herein to which you would not otherwise
be entitled you hereby waive, release and forever discharge American
Standard Companies Inc., American Standard Inc., its subsidiaries,
successors, predecessors and assigns, its employees, agents,
directors, officers and stockholders, past and present, from any and
all claims of any nature whatsoever you have arising out of or in
any way related to your employment and termination of employment,
known or unknown, including, but not limited to, any claims arising
under the Federal Age Discrimination in Employment Act (“ADEA”),
Americans with Disabilities Act (“ADA”), Title VII of the Federal
Civil Rights Act, The Civil Rights Act of 1991, or any other
Federal, State or Local Statutes or Common Law concerning
employment, and you agree to bring no action, suit or other
proceedings in connection hereunder. The Company hereby waives,
releases and forever discharges you from any and all claims of any
nature whatsoever its has arising out of or in any way related to
your employment or your termination of



 






 







	 	 	 	employment. This Section and the release hereunder shall not apply to
claims arising under ADEA after your execution of this Agreement and
Release. Except as may be expressly varied herein, any rights to
benefits under American Standard sponsored benefit plans are governed
exclusively by the written Plan documents.
	 
	 	13.	 	For a period of fifteen months after your Termination Date,
you shall not, directly or indirectly, engage in or have any
ownership interest or financial participation in (other than an
ownership interest of not more than five percent of the outstanding
shares of capital stock of any corporation), or be employed by, or
offer services to, the businesses set forth on Schedule I
(“Competitors”), or become involved, affiliated or provide
assistance with any Competitors as an executive, shareholder,
director, officer, agent, partner, member, investor, employee,
consultant, independent contractor, joint venturer, or otherwise
(other than an ownership interest of not more than five percent of
the outstanding shares of capital stock of any corporation).
	 
	 	14.	 	You agree that for a period of fifteen months following your
Termination Date, you shall not solicit any employee of the Company
or its affiliates to terminate his or her employment.
	 
	 	15.	 	You shall not disclose to any other employer or person any trade
secrets or any proprietary, confidential or privileged information or
materials pertaining to the Company or its affiliates, including
(without limitation) any information concerning the management,
business operations, financial conditions, capital and credit
arrangements or any projections, forecasts or plans with respect to
any of the foregoing (“Confidential Information”); provided that you
have the right to disclose Confidential Information in response to a
governmental inquiry, including a governmental tax audit or a judicial
subpoena. Confidential Information shall not include any data or
information that has been disclosed voluntarily to the public by the
Company, or that has been independently disclosed by others, or that
otherwise enters the public domain at any time through no fault of
yours.
	 
	 	 	 	The American Standard Inc. and Subsidiaries Agreement Concerning
Inventions and Proprietary Information, is incorporated by reference
as if set forth fully herein and as such, you continue to be bound by
all of its provisions.
	 
	 	 	 	In accordance with reasonable ethical and professional standards, you
will refrain from taking actions or making statements, written or
oral, which disparage or defame the good will or reputation of the
Company, its directors, officers, executives and employees of which
could adversely affect the morale of other employees.
	 
	 	 	 	In accordance with reasonable ethical and professional standards, the
Company’s Officers and Directors will refrain from taking actions or
making statements, written or oral, which disparage or defame your
reputation.



 






 







	 	16.	 a)	You agree that you will personally provide reasonable
assistance and cooperation to the Company in activities related to
the prosecution or defense of any pending or future lawsuits or
claims involving the Company. The Company agrees to pay all
reasonable expenses and other costs related to such assistance and
cooperation.
	 
	 	 	 b)	You will promptly notify the Company if you receive any
requests for information regarding the Company from (i) any
member of the press, (ii) in connection with any litigation or
claims described in Section 16(a), or (iii) any third party
regarding any Confidential Information. For a period of fifteen
months after your Date of Termination, you will also notify the
Company if you become aware of any material potential claims
against the Company.
	 
	 	 	 c)	You will refrain from providing any information related
to any claim or potential litigation against the Company to any
non-Company representative without either the Company’s written
permission or being required to provide information pursuant to
legal process.
	 
	 	 	 d)	If required by law to provide sworn testimony regarding
any Company-related matter, you will consult with and have
Company-designated legal counsel present for such testimony.
	 
	 	 	 e)	The Company will be responsible for the costs of such
designated counsel and you will bear no cost for same and also be
responsible for any other reasonable costs incurred by you in
connection with any litigation, claim or investigation regarding
the Company.
	 
	 	 	 f)	You will confine your testimony to items about which
you have knowledge rather than speculation, unless otherwise
directed by legal process.
	 
	 	 	 g)	You will cooperate with the Company’s attorneys to
assist their efforts, especially on matters you have been privy
to, holding all privileged attorney-client matters in strictest
confidence.
	 
	 	 	Nothing in sentences c-g of the above paragraph is intended to apply
to governmental or judicial investigations; provided, however, the
Company will reimburse you for legal expenses if you are compelled to
appear in a government or judicial investigation.
	 
	 	17.	Severability; Entire Agreement; No Oral Modification; No
Waivers
	 
	 	 	Should any of the provisions of this Agreement and Release be
determined to be invalid by a court of competent jurisdiction, the
parties agree that this shall not affect the enforceability of the
other provisions in good faith to effectuate its or their purpose and
to confirm the provision or provisions to law. This Agreement and



 






 







	 	 	 	Release constitutes a single integrated contract expressing the entire
agreement of the parties with respect to the subject matter hereof and
supersedes all prior and contemporaneous oral and written agreements
and discussions with respect to the subject matter hereof. This
Agreement and Release, and all provisions contained in it, shall be
binding upon and inure to the benefit of the parties and their
respective heirs, personal representatives, successors and assigns.
This Agreement and Release may be amended or modified only by an
agreement in writing signed by you and the Company and no amendments
or modifications are contemplated at this time. The failure by the
Company or you to declare a breach or otherwise to assert its rights
under this Agreement and Release or American Standard Sponsored
benefit plans shall not be construed as a waiver of any right the
Company or your, as applicable, have under this Agreement and Release
or under any Company sponsored benefit plans. Your obligations under
Sections 13 — 16 of this Agreement and Release shall not apply in the
event the Company materially breaches this Agreement and Release or
becomes bankrupt
	 
	 	18.	 	Acknowledgements and Certifications
	 
	 	 	 	You acknowledge and certify that you:
	 



	 	a.	 	have read and understand all of the terms of this
Agreement and Release and do not rely on any representation or
statement, written or oral, not set forth in the Agreement and
Release.
	 
	 	b.	 	have had a reasonable period of time to consider this
Agreement and Release;
	 
	 	c.	 	are signing this Agreement and Release knowingly and
voluntarily;
	 
	 	d.	 	have been advised to consult with an attorney before
signing this Agreement and Release;
	 
	 	e.	 	have the right to consider the terms of this Agreement
and Release for 21 days and if you take fewer than 21 days to
review this Agreement and Release, you hereby waive any and all
rights to the balance of the 21 day review period; and
	 
	 	f.	 	have the right to revoke this Agreement and Release
within seven consecutive calendar days after signing and dating
it, by providing written notice of revocation to J. Paul McGrath,
Senior Vice President, General Counsel and Secretary, American
Standard Companies Inc. If you revoke this Agreement and Release
during this seven-day period, it becomes null and void in its
entirety. If you do not revoke this Agreement and Release, after
such seven days, it becomes final.
	 



	 	19.	 	If the Company reasonably, non-discriminatorily,
non-capriciously and non-arbitrarily, determines that you have
materially violated any of your material obligations under this
Agreement and Release, then the Company will notify you in



 






 







	 	 	 	writing of this violation and the Company may, at its option,
terminate the Salary and Benefit Continuation and any other benefits
hereunder to which you were not otherwise entitled. Prior to doing
so, however, you and the Company must discuss and attempt to reach an
agreement, including granting you a period of 30 days to cure an
alleged violation. In the event that agreement cannot be reached or
you fail to cure the alleged violation during the 30-day period, the
determination of whether you have materially violated your material
obligations under this Agreement and Release, and, in the event it is
determined that you have materially violated your material obligations
under this Agreement and Release, the remedy therefor, shall be
settled exclusively through binding arbitration in accordance with
the then applicable rules of the American Arbitration Association, and
judgment upon any award so rendered may be entered in any court having
jurisdiction thereof. Any arbitration shall be conducted in
[Piscataway, New Jersey] or such other location as mutually agreed by
the parties. The arbitration provisions of this section shall be
interpreted according to, and governed by, the Federal Arbitration
Act, 9 U.S.C. § 1 et seq. The prevailing party shall be entitled to
recover his legal fees and expenses incurred in accordance with this
Section, or in accordance with applicable law if it provides for a
greater recovery.
	 
	 	20.	 	The current policy which provides coverage for current and
former Officers and Directors will apply to you.
	 
	 	21.	 	Any amounts payable hereunder or benefits to be provided
hereunder shall be payable to your beneficiary in the event of your
death prior to the payments being made or benefits being provided.
Medical, accident and life insurance benefits will be continued for
your spouse and dependents after your death for the period described
in Section 9.
	 
	 	22.	 	Your obligations and the obligations of the Company as set
forth in this Agreement and Release will survive indefinitely.



[REST OF PAGE INTENTIONALLY BLANK]




	 	 	 	 	 
	Understood
and Agreed:

	 	Sincerely,
	By:	 	/s/ Marc R. Olivié	 	/s/ Lawrence Costello
	 	 	


	 	

	 	 	
Marc R. Olivié
	 	Lawrence Costello

Senior Vice President, Human Resources
	Dated:	 	 	 	 
	 	 	

	 	 
	 	 	 	 	 
	By:	 	 	 	 
	 	 	

	 	 



 






 







	 	 	 	 	 
	 	 	
Marc R. Olivié

	 	 
	Dated:	 	 	 	 
	 	 	

	 	 



 






 



SCHEDULE I



     The Bathroom and Kitchen Line of Businesses of the following Companies:



	 	 	 	 
	 	-	 	
Masco
	 	-	 	
Kohler
	 	-	 	
Toto
	 	-	 	
Grohe
	 	-	 	
Roca
	 	-	 	
Sanitec
	 	-	 	
Jacuzzi
	 	-	 	
Crane