**Exhibit 10.24**

 

**AMERICAN STANDARD COMPANIES INC.**

**SUPPLEMENTAL SAVINGS PLAN**

**(Restated to include all amendments through December 8,2005)**

 

**Section 1. Purpose**The purpose of the Plan is toprovide those participants in the American Standard Companies Inc. Employee Stock Ownership Plan (the “ESOP”), the Savings Plan of American Standard Inc. and Participating Subsidiary Companies (the “Savings Plan”) and theAmerican Standard Pension Plan (the “Pension Plan”), who are not Corporate Officers participating in the Company’s SERP, and whose employer contributions under the ESOP, the Savings Plan and the Pension Plan have been cut back by thestatutory reduction to the amount of annual compensation recognizable for qualified plan benefit accruals under Section 401(a)(17) of the Code, with an annual benefit, subject to certain limitations, to roughly reflect the equivalent value oflost ESOP, Savings Plan and Pension Plan contributions. 

 

**Section 2**.**Definitions**Whenever used herein, the following terms shall have the meanings set forth below. Words in the masculine gender shall also include the feminine gender. 

 

2.1 Affected Earnings means that portion, if any, of a Participant’s Eligible Compensation for a calendar yearin excess of the Statutory Limitation, provided that, if more than one Valuation Date occurs in a calendar year, the Plan Administrator shall allocate Affected Earnings in such manner as the Plan Administrator shall specify from time to time.

 

2.2 Applicable Interest Rate means for any calendaryear, the interest rate used to credit interest to Participants’ accounts under the Pension Plan. 

 

2.3 ASI means American Standard Inc., a Delaware corporation. 

 

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2.4 Board means the Board of Directors of the Company. 

 

2.5 Cash Account means a separate memorandum account established inrespect of a Participant which shall be credited with awards under the Plan intended to compensate such Participant for employer contributions under the Pension Plan which have been cut back due to the Statutory Limitation. 

 

2.6 Code means the Internal Revenue Code of 1986, as amended, or anysubsequent income tax law of the United States. References to Code shall be deemed to include all subsequent amendments of those sections or the corresponding provisions of any subsequent income tax law. 

 

2.7 Common Stock means the common stock, par value $0.01 per share, ofthe Company. 

 

2.8 Company means American StandardCompanies Inc., a Delaware corporation. 

 

2.9 Disabilitymeans, effective January 1, 2005, the Participant (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expectedto last for a continuous period of not less than twelve (12) months or (ii) is by reason of medically determinable physical or mental impairment, which can be expected to last for a continuous period of not less than twelve(12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Participant’s employer. 

 

2.10 Eligible Compensation means, for any calendar year beginning onor after January 1, 2006, the Participant’s total remuneration, up to a maximum of $250,000 ($235,000 for calendar years prior to January 1, 2006), that would have been included in the definition of 

 

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compensation under the ESOP, the Savings Plan and the Pension Plan but for the Statutory Limitation. 

 

2.11 Employer Contribution Percentage means for each Participant thesum of (a) 3% plus (b) the percentage of such Participant’s compensation for which the Company actually provided a matching contribution under the Savings Plan during the year, determined by taking into account (i) suchParticipant’s level of contributions throughout the year and (ii) whether or not such Participant also participated in the Pension Plan. 

 

2.12 Fair Market Value on any date means the closing price of a Share on such date as reported on the New York Stock Exchange consolidatedreporting system, provided that, in the event that there are no Common Stock transactions reported on such date, Fair Market Value shall mean the closing price of a Share on the immediately preceding date on which Common Stock transactions were soreported. 

 

2.13 Participant means with respect to eachcalendar year any participant in the ESOP, the Savings Plan or the Pension Plan, who is not a corporate officer of the Company who also actively participates in the Company’s Executive Supplemental Retirement Benefit Program (the“SERP”), and whose allowable employer contributions under the ESOP, the Savings Plan or the Pension Plan have been determined by the Plan Administrator to have been cut back by the Statutory Limitation. 

 

2.14 Plan means this American Standard Companies Inc. SupplementalSavings Plan. 

 

2.15 Plan Unit means a Participant’sright to receive pursuant to the Plan one Share upon such Participant’s Termination of Employment, which right is subject to forfeiture in accordance with Section 14 (a) of the Plan. 

 

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2.16 Share means a share of Common Stock. 

 

2.17 Statutory Limitation means for any calendar year the maximumdollar amount of compensation that may be taken into account under the ESOP, the Savings Plan and the Pension Plan pursuant to section 401(a) (17) of the Code. 

 

2.18 Stock Account means a separate memorandum account established in respect of a Participant which shall becredited with Plan Units intended to compensate such Participant for employer contributions under the ESOP and Savings Plan which have been cut back due to the Statutory Limitation. 

 

2.19 Termination of Employment means a Participant’s termination of service as such is defined for purposes ofthe ESOP, the Savings Plan and the Pension Plan. 

 

2.20Valuation Date means the last day of any calendar year (or such other date or dates as the Plan Administrator may specify from time to time). 

 

**Section 3. Form of Benefits.**Benefits awarded under this Plan shall be in the form of either (a) Plan Units and fractions thereof, with each PlanUnit to be equivalent to one Share or (b) cash equivalent credits to the Cash Account. 

 

**Section 4. Stock Account.**The Company shall maintain a Stock Account for each Participant. For each award of Plan Units, the Stock Account shall note the number of Plan Units and fractions thereofawarded, the date of the award, as well as the Fair Market Value that was used to determine the award of Plan Units and fractions thereof. 

 

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**Section 5. Cash Account.**The Company shall maintain a Cash Account for each Participant who receivesan award under the Plan due to such individual’s participation in the Pension Plan. For each award to the Cash Account, the account shall note the amount credited, the date of the award and interest accrued according to this Section 5. Anyamounts credited to the Cash Account shall earn interest at the Applicable Interest Rate in effect for each calendar year, which interest shall be credited in the same manner as credited to Participants’ accounts under the Pension Plan.

 

**Section 6. Awarding of Plan Units.**As of the ValuationDate, the Company will add to each Participant’s Stock Account that number of Plan Units and/or fractions thereof equal to the quotient of: 

 

(a) the Employer Contribution Percentage of the Participant’s Affected Earnings divided by 

 

(b) the Fair Market Value as of the Valuation Date. 

 

Notwithstanding anything to the contrary herein, a Participant whose employer contributionsto the ESOP or Savings Plan have been limited by provisions of the Code applicable to contributions to qualified retirement plans other than the provisions of Section 401(a)(17) of the Code before such Participant would have otherwise beenlimited under Section 401(a)(17) of the Code shall be eligible for an award of Plan Units to the same extent as if such Participant had not first been limited by such other provisions. Notwithstanding the foregoing, for so long as the ValuationDate occurs less frequently than by each payroll period, no Participant shall be 

 

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entitled to the foregoing award of Plan Units if such Participant has experienced a Termination of Employment before the applicable Valuation Date.

 

Whenever a dividend other than a dividend payable in the form of Shares isdeclared with respect to the Company’s Common Stock, the number of Plan Units in the Participant’s Stock Account shall be increased by a number of Plan Units determined by dividing (i) the product of (A) the number of Plan Unitsin the Participant’s Stock Account on the related dividend record date and (B) the amount of any cash dividend declared by the Company on a Share (or, in the case of any dividend distributable in property other than Common Stock, the pershare value of such dividend, as determined by the Company for purposes of income tax reporting) by (ii) the Fair Market Value Per Share on the related dividend payment date. 

 

**Section 7 Awards to the Cash Account.**As of each Valuation Date, the Company will add to the Cash Account of anyParticipant who suffered a reduction in employer credits to the Pension Plan as a result of the Statutory Reduction an amount equal to 3% of such Participant’s Affected Earnings. Notwithstanding anything to the contrary herein, a Participantwhose employer contributions to the Pension Plan have been limited by provisions of the Code applicable to contributions to qualified retirement plans other than the provisions of Section 401(a)(17) of the Code before such Participant wouldhave otherwise been limited under Section 401(a)(17) of the Code shall be eligible for an award under this Section 7 to the same extent as if such Participant had not first been limited by such other provisions. 

 

Notwithstanding the foregoing, for so long as the Valuation Date occurs less frequently thanby 

 

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each payroll period, no Participant shall be entitled to an award if such Participant has experienced a Termination of Employment before the applicableValuation Date. 

 

**Section 8 Vesting and Forfeitures.**AnyParticipant who is employed by the Company or an Affiliate as of January 1, 2004 shall, subject to the last sentences of Sections 6 and 7, be 100% vested in their Cash and Stock Accounts at all times. Cash Account balances of those Participantswho are first employed by the Company or an Affiliate (as such term is defined in the Pension Plan) after January 1, 2004 shall vest in accordance with the vesting rules in effect for the Pension Plan. Stock Account balances of thoseParticipants who are first employed by the Company or an Affiliate (as such term is defined in the Savings Plan) after January 1, 2004 shall vest in accordance with the vesting rules in effect for the Savings Plan. Upon Termination ofEmployment of a Participant who is not vested in his or her Cash Account or Stock Account, such unvested accounts shall be forfeited as of the date of Termination of Employment. Notwithstanding the foregoing, forfeited balances in the Cash Accountand Stock Account shall be subject to restoration in accordance with the rules regarding restoration of forfeited account balances in the Pension Plan and Savings Plan, respectively, including with respect to the Cash Account, restoration ofinterest credits that would have been earned during the period of forfeiture. 

 

**Section 9 Changes in Capital Structure.**In the event of the payment of any dividend payable in, or the making of any distribution of, Shares to holders of record of Shares during the period any Plan Units awarded underthe Plan are credited to a Participant’s Stock Account; or in 

 

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the event of any stock split, combination of Shares, recapitalization or other similar change in the authorized capital stock of the Company during suchperiod; or in the event of the merger or consolidation of the Company into or with any other corporation or the reorganization, dissolution or liquidation of the Company during such period; there shall be credited to such Participant’s StockAccount either (1) Plan Units corresponding to such new, additional or other shares of capital stock of any class or (2) other property (including cash), as such Participant would be entitled to receive as a matter of law if the number ofPlan Units credited to the Participant’s Stock Account at the time of such event were actually Shares owned by such Participant. 

 

**Section 10. Distribution of a Participant’s Stock Account.**

 

Effective January 1, 2005, upon a Participant’s Termination of Employment, such Participant shall be entitled to adistribution of his Stock Account thirty (30) days thereafter , provided that, if the Participant is a “key employee” under Section 416(i) of the Code for the relevant measuring period under Section 409A of the Code,any distribution in connection with the Participant’s Termination of Employment for any reason other than death or Disability will be made six months after Termination of Employment. The distribution shall be in Shares, with one Sharedistributed for each unit in the Stock Account, and fractional units converted to cash based on the Fair Market Value as of the last business day of the month preceding the date of distribution. Notwithstanding the foregoing, so long as it will notcause the Company or ASI to breach any covenant or otherwise incur a default under any credit or other financing agreement to which it is a party, the Company may elect to pay the Participant the cash value of his Shares 

 

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based on the Fair Market Value as of the last business day of the month preceding the date of distribution. Distributions shall be subject to all requiredtax withholdings, and for purposes of Stock Account distributions, the Stock Account shall be valued as of the last business day of the month preceding the date of distribution. In the event of distribution of a Participant’s Stock Account dueto such Participant’s death, distribution under this Section 10 shall be made to the same person or persons to whom such Participant’s interest in the Savings Plan becomes payable as a result of such Participant’s death.

 

**Section 11. Distribution of a Participant’s Cash Account.**

 

Effective January 1, 2005, upon a Participant’sTermination of Employment, such Participant shall be entitled to a distribution of the Actuarial Equivalent value of his Cash Account balance, if any, thirty (30) days thereafter, provided that, if the Participant is a “keyemployee” under Section 416(i) of the Code for the relevant measuring period under Section 409A of the Code, any distribution in connection with the Participant’s Termination of Employment for any reason other than death orDisability will be made six months after Termination of Employment. “Actuarial Equivalent” shall have the same meaning as ascribed to such term in the Pension Plan and Actuarial Equivalent value shall be calculated in the same manner asfor lump sum distributions from the Pension Plan. The distribution shall be in cash, subject to all required tax withholdings, and for purposes of Cash Account distributions, the Cash Account shall be valued as of the last business day of the monthpreceding the date of distribution. In the event of a distribution of a Participant’s Cash Account due to such Participant’s death, distribution under this Section 11 shall be made to the same person or 

 

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persons to whom such Participant’s interest in the Pension Plan becomes payable as a result of such Participant’s death. 

 

**Section 12. Effective Date, Amendment and Termination.**The Plan was firsteffective as of January 1, 1994. Except as otherwise specified, the Plan, as amended and restated herein, shall be effective as of December 8, 2005. The Board may amend or terminate the Plan at any time; provided that, no such amendment ortermination shall impair the rights of a Participant with respect to amounts then credited to his Account under the Plan. 

 

**Section 13. Administration.** The Plan shall be administered by the Senior Vice President, Human Resources (the “Plan Administrator”) or hisdelegate(s). In addition to such functions and responsibilities specifically reserved to the Plan Administrator under the Plan, the Plan Administrator shall have full power and authority, subject to the provisions of the Plan, to determine any andall questions as to eligibility to participate in the Plan, the amounts to be credited to a Participant’s Account(s), a Participant’s right to receive a distribution from the Plan, to interpret and carry out the terms of the Plan, and toexercise discretion where necessary or appropriate in the interpretation of the Plan. All decisions by the Plan Administrator shall be final and binding on all affected parties. Claims made for benefits under the Plan shall be subject to the sameclaims and appeals procedures as the qualified plans. 

 
**Section****14. Miscellaneous.**
 

**a. Unfunded Plan.**The Company shall not be obligated to fund its liabilities 

 

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under the Plan, the Account(s) established for each Participant shall not constitute a trust, and a Participant shall have no claim against the Company orASI or their assets other than as an unsecured general creditor. Without limiting the generality of the foregoing, the Participant’s claim at any time shall be for the amount credited to such Participant’s Stock Account and Cash Account atsuch time. Notwithstanding the foregoing, the Company may establish a grantor’s trust to assist it in meeting its obligations hereunder; provided, however, that in no event shall any Participant have any interest in such trust or property otherthan as an unsecured general creditor. 

 

**b.Non-Alienation.**The right of a Participant to receive a distribution of the value of such Participant’s Account payable pursuant to the Plan shall not be subject to assignment or alienation. 

 

**c. No Right to Continued Employment.**Nothing in this Plan shallbe construed to give any Participant the right to continued employment by the Company or any of its affiliates. 

 

**d. Governing Law.**This Plan and all rights and obligations hereunder shall be construed in accordance with and governed by the laws of theState of Delaware, to the extent such laws are not superseded by ERISA or other federal law. The Plan is intended to be a nonqualified deferred compensation plan maintained for a select group of management or highly compensated individuals.

 

**e**. **Withholding.** The Company shall providefor the withholding of any taxes required to be withheld by federal, state or local law in respect of any contribution, payment or 

 

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distribution made pursuant to the Plan. 

 

**f. Compliance.**The Plan Administrator shall impose such restrictions, limitations, rules and regulations as it may deem advisable in orderto comply with the applicable federal securities laws, the requirements of the New York Stock Exchange or any other applicable stock exchange or automated quotation system, any applicable state securities laws, any provision of the CompanyCertificate of Incorporation of Bylaws, or any other law, regulation, rule, or binding contract to which the Company is subject. The Plan is intended to (i) be an excess parallel plan within the meaning of the New York Stock Exchange rulesrelating to shareholder approval of equity compensation plans and (ii) comply with the applicable requirements of Section 409A of the Code. Notwithstanding anything else contained herein to the contrary, the Company shall not be in breachof its obligations hereunder, nor liable for any interest or other payments, if it fails to make any payments hereunder on the stated date on which such payment is due, so long as such payment is made not later than the last day of the calendar yearin which it is otherwise due hereunder. 

 

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