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                                                               EXHIBIT (10)(vii)

                                                      March 2, 2001
                                                      REVISED MARCH 19, 2001

Mr. Marc R. Olivie
236 North Concord Street
Lancaster, PA 17603

Dear Marc,

We are delighted that you have accepted this offer of employment to join
American Standard in the capacity of President - Worldwide Plumbing, Fixtures
and Fittings, reporting to me. This offer of employment was contingent upon, and
has been approved by, the Board of Directors of American Standard Companies.

As we discussed, your annual base salary rate will be $400,000.00, or on a
bimonthly basis, $16,666.67. You will also participate in our Annual Incentive
Plan (AIP) with an incentive target of 75%. We will guarantee a minimum
incentive payment in the amount of $300,000.00 for the first, second, and third
years, 2001, 2002, and 2003, respectively. The incentives are generally paid in
the first quarter of the year following the year in which they are earned.

You will be eligible to participate in American Standard's Elected Officer Long
Term Incentive Plan (LTIP) with a target of 130%. We will guarantee a minimum
LTIP payment in the amount of $520,000.00 for the first, second, and third
years, 2001, 2002, and 2003, respectively.

In addition, you will receive a Stock Option award of 100,000 shares of American
Standard common stock, with a grant price equal to the average of the highest
and lowest trading price of the stock on the date you commence employment. This
does not constitute a commitment for a Stock Option award or the amount of such
award for any period other than the one addressed. As discussed, you will
continue to be eligible to participate in our Stock Option program with the
intention to recommend, subject to Board discretion, an annual award in the
range of 50,000 shares of American Standard common stock.

On your behalf, we will provide you a special 3-year retention program that
includes the following: At the completion of your 3-year anniversary, an
analysis will be made to determine the accumulated Economic Value of your
combined total compensation i.e., base salary, annual bonuses (AIP), Long Term
Incentive Plan (LTIP) payments, and the total value of Stock Options exercised
to date (the "Economic Value"). Then, we will compare that Economic Value with
the $7 million of expected total compensation value for the three full years
that you have currently.

In the event that the Economic Value as defined above is less than $7 million,
you will be provided a one-time opportunity to forfeit the total options granted
and unexercised to date, in exchange for a cash payment equivalent to 50% of the
difference between total cash paid (base salary, annual bonuses (AIP), Long Term
Incentive Plan (LTIP) payments), plus the total value of Stock Options exercised
to date, during your first three years of employment with American Standard and
the established value of $7 million. Thereafter, you will continue to be
eligible for annual Stock Option awards.

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In the event of your voluntary termination from the company, without cause,
before your three year anniversary, the company will pro-rate and apply the
terms of the above special three-year retention program for the term of actual
employment.

You are entitled to participate in the American Standard Benefits Program as
described in the attached summary. In addition, by agreement, you will be
provided with five (5) weeks vacation per annum accrued and paid according to
existing policy.

Attached is the relocation program description. With respect to the Mortgage
Interest Differential (MID), the company will pay the difference between the
selling price of your current home in Pennsylvania and your new mortgage
interest rate in New Jersey at the rate of: 100 % for the first twelve month
period, 66 2/3% for the second twelve month period, and 33 1/3% for the final
twelve month period.

You will have 18 months to physically relocate from Pennsylvania to New Jersey.
You will also be provided with up to 9 months of temporary living (which
includes your rental payment and utilities) during the period prior to the
relocation of your family. In the event that you decide to expedite your move,
or otherwise feel that it is necessary, we will provide the assistance of third
party purchase of your current residence. We will, of course, make every effort
to make your relocation to New Jersey comfortable for you and your family.

American Standard maintains an employment-at-will policy, which means that you
or the company can terminate your employment with or without cause, at any time
and for any reason. There is nothing in this letter that is intended to
constitute a contract of employment for a guaranteed period of time. The terms
of this letter cannot be modified or changed unless done so in writing by the
individual signing this letter.

This offer of employment is contingent upon your compliance with the Immigration
and Naturalization Reform Act of 1997, satisfactory reference checks, signing of
the company's "Agreement Relating to Assignment of Inventions, Non-Disclosure of
Confidential Information" and Code of Conduct.

Marc, we expect that your decision to join the company will be mutually
rewarding and we anticipate that you will form many productive and enjoyable
relationships.

Please sign below indicating your acceptance of this offer and confirm your
anticipated commencement date.

Sincerely yours,

/s/ Fred Poses

Fred Poses
Chairman and Chief Executive Officer

* Attachments

/s/ Marc Olivie
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Signature                                  Anticipated Commencement Date