Document:

<PAGE>   1
                                                      Exhibit (4) (xviii)

                                                      EXECUTION COPY

                        FIFTH AMENDMENT (this "Fifth Amendment") dated as of
            November 30, 1999 to the Amended and Restated Credit Agreement dated
            as of January 31, 1997 (as amended, the "Credit Agreement";
            capitalized terms used and not otherwise defined herein shall have
            the meanings assigned to them in the Credit Agreement, as amended
            hereby), among American Standard Companies Inc. ("Holding");
            American Standard Inc. ("ASI"); the Subsidiaries of ASI listed in
            Schedule I thereto (the "Subsidiary Borrowers" and, together with
            ASI, the "Borrowers"); the financial institutions party thereto (the
            "Lenders"); The Chase Manhattan Bank, as administrative agent for
            the Lenders (in such capacity, the "Administrative Agent");
            Citibank, N.A., as Documentation Agent (the "Documentation Agent");
            and The Bank of Nova Scotia and Nationsbank, N.A., as Co-Syndication
            Agents (the "Co-Syndication Agents" and, together with the
            Documentation Agent and the Administrative Agent, the "Agents").

            ASI, Holding and the Subsidiary Borrowers have requested that the
Required Lenders (i) consent to the sale by ASI of its Medical Systems Business,
(ii) agree to amend the definitions of "Reorganization" and "Restricted Group"
in the Fourth Amendment and (iii) amend Section 6.06 of the Credit Agreement.
The undersigned Lenders and the Agents are willing to grant such consent and
agree to such amendments on the terms and subject to the conditions set forth
herein. Accordingly, the parties hereto agree as follows:

ARTICLE I.  DEFINITIONS

            (a) For purposes of this Fifth Amendment, the following terms shall
have the meanings set forth below:

            "Fourth Amendment" shall mean the Fourth Amendment dated as of
      December 22, 1998, to the Credit Agreement.

            "Medical Systems Business Sale" shall mean the sale to one or more
      third parties in one or more transactions approved by ASI's Board of
      Directors of, whether by means of the sale of capital stock or assets, or
      both, of (a) ASI's Medical Systems Segment (as described in Holding's
      Annual Report on Form 10-K for the year ended December 31, 1998) and (b)
      Meretek Diagnotics, Inc.

ARTICLE II. AMENDMENTS TO CREDIT AGREEMENT

            SECTION 2.01. Amendment of Section 1.01 of the Credit Agreement.
Section 1.01 of the Credit Agreement is hereby amended by adding the following
definitions in their appropriate alphabetical order:

            ""Attributable Debt" shall mean, on any date, the aggregate rental
      or similar payments, however denominated, made or to be made under any
      Synthetic Lease during the fiscal year in progress on such date multiplied
      by eight."

<PAGE>   2

                                                                               2

            "Synthetic Lease" shall mean any synthetic lease, tax retention
      operating lease, off-balance sheet loan or similar off-balance sheet
      financing product where the transaction is considered indebtedness for
      borrowed money for Federal income tax purposes but is classified as an
      operating lease in accordance with GAAP for financial reporting purposes."

            SECTION 2.02. Amendment to Section 6.06 of the Credit Agreement.
Section 6.06 of the Credit Agreement is hereby amended by replacing Section 6.06
in its entirety with the following:

            "SECTION 6.06.  Synthetic Leases.  Permit the aggregate
      Attributable Debt in respect of all Synthetic Leases for which ASI and
      its Subsidiaries are liable (whether directly, under any Guarantee or
      other suretyship arrangement or otherwise) at any time to exceed
      $100,000,000."

ARTICLE III. CONSENT TO MEDICAL SYSTEMS BUSINESS SALE

            Pursuant to Section 6.02(a)(ii)(1) of the Credit Agreement, the
undersigned Lenders hereby consent to the Medical Systems Business Sale,
provided that such sale is conducted in compliance with clauses (2) through (5)
of Section 6.02(a)(ii) of the Credit Agreement.

ARTICLE IV. AMENDMENTS TO FOURTH AMENDMENT RELATING TO REORGANIZATION

            SECTION 4.01.   Amendment of Certain Definitions.  The
definitions of "Reorganization", "Restricted Group" and "Spin-Off" in the
Fourth Amendment are hereby amended to read as follows:

            ""Reorganization" shall mean a series of transactions, all of which
      shall be completed no later than January 15, 2000, pursuant to which (a)
      ASI will effect the following transactions in the following order: (i)
      each of WABCO Company, Webbco Inc. and WABCO Inc. will merge with and into
      Webbco Inc., which upon effectiveness of the merger will be renamed WABCO
      Co., (ii) ASI will transfer all of its trademarks, tradenames, service
      marks and other similar intellectual property and related rights to ASII,
      and ASI and ASII will enter into territorial licenses which permit ASI and
      its subsidiaries to use all of the foregoing intellectual property in the
      United States, (iii) WABCO Co., Standard Sanitary Manufacturing Company,
      It Holdings Inc., Trane Hellas, Inc. and The Trane Company will merge with
      and into ASII, (iv) ASI will transfer the subsidiaries listed on Schedule
      I hereto to ASII, (v) WABCO Standard Trane Holdings, Inc. will merge with
      and into ASII and (vi) ASI will distribute the capital stock of ASII to
      Holding, all with the result that the corporate structure of Holding and
      its subsidiaries will be as set forth in Schedule II hereto and (b) all
      Liens on any capital stock existing under the Security Documents and all
      Guarantees under the Guarantee Documents will remain in full force and
      effect notwithstanding the transfer of the capital stock of any Guarantor,
      grantor or pledged entity.

            "Restricted Group" shall mean each of ASII, Trane Export Inc. and
      The Trane Company.

            "Spin-Off" shall mean the consummation of the transaction
      described in clause (a)(vi) of the definition of Reorganization."

<PAGE>   3

                                                                               3

            SECTION 4.02.   Amendment of Certain Conditions.   Section 5.02
of the Fourth Amendment is hereby amended by the deletion of paragraphs (d)
and (e) thereof and by the amendment of paragraph (i) thereof to read as
follows:

            "(i) Each Credit Party involved in the Reorganization shall have
      executed and delivered an instrument satisfactory to the Administrative
      Agent acknowledging the continued effectiveness at all times after the
      completion of the Spin-Off of all existing pledges and guarantees under
      the Security Documents and the Guarantee Documents as pledges securing or
      guarantees of the Obligations (including any future advances under the
      Credit Documents), and ASII shall have undertaken the obligations of a
      pledgor under the Security Documents with respect to all equity interests
      of Subsidiaries owned by it following the Reorganization; and"

            SECTION 4.03.   Amendment of Section 6.18 of Credit Agreement.
Section 6.18 of the Credit Agreement is hereby amended to read as follows:

            "SECTION 6.18. Restricted Group. Holding covenants and agrees that
      it shall cause each member of the Restricted Group (a) to engage only in
      those activities in which such member was engaged (or in which
      Subsidiaries merged into such member pursuant to the Reorganization were
      engaged) immediately prior to the Spin-Off; provided, that such member may
      also serve as a holding company for Foreign Subsidiaries engaged in
      businesses not inconsistent with Section 6.17, (b) except in the case of
      ASII, to continue at all times to be at least a direct Designated
      Subsidiary of ASII with the remaining capital stock owned by another
      Designated Subsidiary and (c) not to incur, create, assume or permit to
      exist any Indebtedness other than (i) Indebtedness outstanding on the date
      of the Fourth Amendment (including the Obligations) and (ii) Indebtedness
      owed to Holding, ASI or a Domestic Subsidiary of ASI that is evidenced by
      one or more promissory notes that are pledged as security for the
      Obligations under a Pledge Agreement in form and substance satisfactory to
      the Administrative Agent."

ARTICLE IV. REPRESENTATIONS AND WARRANTIES

            Each of Holding, ASI and the other Borrowers hereby represents and
warrants (but, in the case of representations and warranties relating to Credit
Parties and their Subsidiaries, only as to itself and its Subsidiaries, it being
understood that Holding and ASI make all representations and warranties as to
all parties) to each Lender and the Administrative Agent that this Amendment (a)
has been duly authorized, executed and delivered by Holding, ASI and each other
Borrower or Credit Party and constitutes the legal, valid and binding obligation
of each such person enforceable against it in accordance with its terms, except
as enforcement thereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium and other similar laws affecting the enforceability
of creditors' rights generally and by general principles of equity, and (b) will
not conflict in any respect material to the rights or interests of the Lenders
with or result in any breach of any of the terms, covenants, conditions or
provisions of, or constitute (with notice or lapse of time or both) a default
under, or result in a required prepayment of, or (other than as permitted by the
Credit Agreement as amended hereby or as contemplated by the Security Documents)
result in the creation or imposition of (or the obligation to create or impose)
any Lien

<PAGE>   4

                                                                               4

upon any of the properties or assets of any Credit Party or any of its
Subsidiaries pursuant to the terms of, any indenture, mortgage, deed of trust,
agreement or other instrument to which any Credit Party is a party or by which
it may be subject.

ARTICLE V. EFFECTIVENESS

            The consent provided for in Article II hereof and the amendments
provided for in Article III hereof shall become effective on the date (the
"Effective Date") on which the following conditions precedent shall have been
satisfied:

            (a) the signature lines at the foot of this Amendment shall have
      been executed by the Required Lenders;

            (b) the Administrative Agent shall have received, on behalf of the
      Lenders, an Officer's Certificate of ASI, dated the Effective Date,
      confirming compliance with the conditions precedent set forth in
      paragraphs (b) and (c) of Section 4.01 of the Credit Agreement insofar as
      such conditions precedent relate to ASI and its subsidiaries; and

            (c) all legal matters incidental to this Fifth Amendment shall be
      satisfactory to the Administrative Agent and to Cravath, Swaine & Moore,
      counsel for the Administrative Agent.

ARTICLE VI. MISCELLANEOUS

            SECTION 6.01.  Further Assurances Relating to the
Reorganization. (a) Holding agrees that promptly upon the consummation of the
Spin-Off and pursuant to Section 5.11 of the Credit Agreement, it will grant to
the Administrative Agent for the benefit of the Lenders a perfected security
interest in the capital stock of ASII pursuant to a Supplemental Securities
Pledge Agreement, together with undated stock powers.

            (b) Each of Holding, ASII and ASI confirms that, pursuant to Section
5.11 of the Credit Agreement, it will, and that it will cause any Subsidiary to,
pledge to the Administrative Agent all shares of capital stock of any Subsidiary
that it did not own prior to the commencement of the Reorganization and that it
owns upon completion of the Spin-Off.

            (c) Each of Holding, ASI and ASII agrees that, from time to time at
the request of the Administrative Agent or the Required Lenders, it will
promptly deliver a detailed, written report on the status of the Reorganization
and take such actions as the Administrative Agent or the Required Lenders may
request to perfect or maintain the Liens or maintain the Guarantees contemplated
by the Credit Agreement, as amended by the Fourth Amendment and this Fifth
Amendment.

            SECTION 6.02.  APPLICABLE LAW.  THIS FIFTH AMENDMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

<PAGE>   5

                                                                               5

            SECTION 6.03. Expenses. ASI shall pay all reasonable out-of-pocket
expenses incurred by the Administrative Agent in connection with the
preparation, negotiation, execution, delivery and enforcement of this Fifth
Amendment, including, but not limited to, the reasonable fees, charges and
disbursements of Cravath, Swaine & Moore, counsel for the Administrative Agent.
The agreement set forth in this Section 6.03 shall survive the termination of
the Credit Agreement.

            SECTION 6.04.  Counterparts.  This Fifth Amendment may be
executed in any number of counterparts, each of which shall constitute an
original but all of which when taken together shall constitute but one
agreement.

                           [Intentionally Left Blank]

<PAGE>   6

                                                                               6

            IN WITNESS WHEREOF, the parties hereto have caused this Fifth
Amendment to be duly executed by their duly authorized officers, all as of the
date first above written.

                                    AMERICAN STANDARD COMPANIES INC.,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    AMERICAN STANDARD INC.,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    AMERICAN STANDARD CREDIT INC.,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    WABCO STANDARD GMBH,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    AMERICAN STANDARD (UK) CO.,

                                    by ____________________________________
                                       Name:
                                       Title:

<PAGE>   7

                                                                               7

                                    STANDARD EUROPE, a European Economic
                                      Interest Grouping,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    WABCO STANDARD TRANE INC.,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    WABCO STANDARD TRANE B.V.,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    THE CHASE MANHATTAN BANK, individually
                                    and as Administrative Agent,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    CITIBANK, N.A., individually and as
                                    Documentation Agent,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    THE BANK OF NOVA SCOTIA, individually and
                                    as Co-Syndication Agent,

                                    by ____________________________________
                                       Name:
                                       Title:

<PAGE>   8

                                                                               8

                                    BANK OF AMERICA, N.A., individually and
                                    as Co-Syndication Agent,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    BANKERS TRUST COMPANY,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    NATIONSBANK, N.A., individually and as
                                    Co-Syndication Agent,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    DEUTSCHE BANK AG, NEW YORK AND/OR CAYMAN
                                    ISLANDS BRANCH,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    by ____________________________________
                                       Name:
                                       Title:

                                    THE BANK OF NEW YORK,

                                    by ____________________________________
                                       Name:
                                       Title:

<PAGE>   9

                                                                               9

                                    PARIBAS,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    by ____________________________________
                                       Name:
                                       Title:

                                    CIBC INC.,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    CIBC WOOD GUNDY plc,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    COMPAGNIE FINANCIERE DE CIC ET DE L'UNION
                                    EUROPEENNE,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    by ____________________________________
                                       Name:
                                       Title:

<PAGE>   10

                                                                              10

                                    CREDIT LYONNAIS NEW YORK BRANCH,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    THE INDUSTRIAL BANK OF JAPAN TRUST COMPANY,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    THE LONG TERM CREDIT BANK OF JAPAN, LIMITED,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    THE SANWA BANK LIMITED, NEW YORK BRANCH,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    THE SUMITOMO BANK, LTD.,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    THE TORONTO-DOMINION BANK,

                                    by ____________________________________
                                       Name:
                                       Title:

<PAGE>   11

                                                                              11

                                    ABN AMRO BANK N.V., NEW YORK BRANCH,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    by ____________________________________
                                       Name:
                                       Title:

                                    ALLIED IRISH BANK plc, CAYMAN ISLANDS
                                    BRANCH,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    by ____________________________________
                                       Name:
                                       Title:

                                    ARAB BANKING CORPORATION,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    BANCA COMMERCIALE ITALIANA, NEW YORK BRANCH,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    by ____________________________________
                                       Name:
                                       Title:

<PAGE>   12

                                                                              12

                                    BANK OF MONTREAL,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    BANK OF SCOTLAND,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    THE BANK OF TOKYO-MITSUBISHI, LTD.,
                                    NEW YORK BRANCH,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    CREDIT AGRICOLE INDOSUEZ,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    UNICREDITO ITALIANO, SpA,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    by ____________________________________
                                       Name:
                                       Title:

                                    FLEET NATIONAL BANK,

                                    by ____________________________________
                                       Name:
                                       Title:

<PAGE>   13

                                                                              13

                                    LLOYDS BANK, PLC,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    by ____________________________________
                                       Name:
                                       Title:

                                    MERITA BANK Plc.,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    by ____________________________________
                                       Name:
                                       Title:

                                    NATIONAL CITY BANK,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    THE ROYAL BANK OF SCOTLAND plc,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    THE SAKURA BANK, LIMITED,

                                    by ____________________________________
                                       Name:
                                       Title:

<PAGE>   14

                                                                              14

                                    SOCIETE GENERALE, NEW YORK BRANCH,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    COMERICA BANK,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    ERSTE BANK,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    FIRST UNION NATIONAL BANK,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    STANDARD CHARTERED BANK,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    by ____________________________________
                                       Name:
                                       Title:

<PAGE>   15

                                                                              15

                                    THE SUMITOMO TRUST AND BANKING CO., LTD.,
                                    NEW YORK BRANCH,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    THE TOKAI BANK, LIMITED, NEW YORK BRANCH,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    UNITED STATES NATIONAL BANK OF OREGON,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    UNION BANK OF CALIFORNIA, N.A.,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    BAYERISCHE HYPO -- und VEREINSBANK AG,
                                    New York Branch,

                                    by ____________________________________
                                       Name:
                                       Title:

<PAGE>   16

                                                                              16

                                    THE DAI-ICHI KANGYO BANK, LIMITED,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    FUJI BANK LIMITED,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    TOYO TRUST & BANKING CO., LTD.,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    NATEXIS BANQUE BFCE,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    MARINE MIDLAND BANK, N.A.

                                    by ____________________________________
                                       Name:
                                       Title:

                                    CANADIAN IMPERIAL BANK OF COMMERCE,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    DRESDNER BANK AG,

                                    by ____________________________________
                                       Name:
                                       Title:

<PAGE>   17

                                                                              17

                                    FIRSTTRUST BANK,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    GENERAL ELECTRIC CAPIAL CORPORATION,

                                    by ____________________________________
                                       Name:
                                       Title:

                                    HSBC BANK USA,

                                    by ____________________________________
                                       Name:
                                       Title:

<PAGE>   18

                                    WEBSTER BANK,

                                    by ____________________________________
                                       Name:
                                       Title:

Accepted and Acknowledged as of the
date first above written:

AMERICAN STANDARD INTERNATIONAL, INC.,

by ____________________________________
   Name:
   Title:

STANDARD SANITARY
MANUFACTURING COMPANY,

by ____________________________________
   Name:
   Title:

THE TRANE COMPANY,

by ____________________________________
   Name:
   Title:

TRANE EXPORT INC.,

by ____________________________________
   Name:
   Title:

TRANE WABCO COMPANY,

by ____________________________________
   Name:
   Title:

<PAGE>   19

WABCO STANDARD TRANE
HOLDINGS INC.,

by ____________________________________
   Name:
   Title:<PAGE>   1
Exhibit 10 (ix)

                        AMERICAN STANDARD COMPANIES INC.
                        CORPORATE OFFICER SEVERANCE PLAN
                (As Amended and Restated as of December 2, 1999)

Section I.     Purpose.

        The purpose of the Plan is to provide elected officers of the Company
with severance benefits should their employment with the Company terminate under
the circumstances described below. The Plan supersedes any and all previous
severance pay practices or policies of the Company, whether written or
unwritten.

Section II.    Definitions.

        A.     Agreement and Release - means an agreement prepared by the
Company under which a Participant, in return for the benefits provided under the
Plan, agrees to release the Company and its affiliates from any and all claims
which such Participant may have against the Company at the time the agreement is
executed, and further agrees to certain other undertakings, including
cooperation with the Company in any matter which may give rise to legal claims
against the Company, a one year non-competition obligation, keeping confidential
proprietary information of the company as well as the terms of the Agreement and
Release, settlement of any disputes concerning the Agreement and Release through
binding arbitration, and such other undertakings as the Company may require from
time to time.

        B.     Board - means the Board of Directors of the Company.

        C.     Cause - means a Participant's (i) willful and continued failure
substantially to perform his or her duties with the Company or any Subsidiary
(other than any such failure resulting from incapacity due to reasonably
documented physical or mental illness), after a demand for substantial
performance is delivered to such Participant by the Chairman of the Board or
officer of equivalent authority which specifically identifies the manner in
which it is believed that such Participant has not substantially performed his
or her duties, or (ii) the willful engaging by such Participant in illegal
misconduct materially and demonstrably injurious to the Company or any
Subsidiary or to the trustworthiness or effectiveness of the Participant in the

                                       -1-

<PAGE>   2

performance of his or her duties. For purposes hereof, no act, or failure to
act, on such Participant's part shall be considered "willful" unless done, or
omitted to be done, by him or her not in good faith and without reasonable
belief that his or her action or omission was in the best interest of the
Company or a Subsidiary. Any act, or failure to act, based upon authority given
pursuant to a resolution duly adopted by the Board or based upon the advice of
counsel for the Company shall be conclusively presumed to be done, or omitted to
be done, by such Participant in good faith and in the best interest of the
Company or such Subsidiary.

        D.     Change of Control - means the occurrence of any of the following
events:

               (i)    any person is or becomes the Beneficial Owner, directly or
               indirectly, of securities of the Company representing 15% or more
               of the combined voting power of the Company's then-outstanding
               securities (a "15% Beneficial Owner"); provided, however, that
               (a) the term "15% Beneficial Owner" shall not include (1) Kelso
               ASI Partners, L.P. and Kelso American Standard Partners, L.P.
               ("Kelso") and their affiliates or their immediate transferees
               provided that any such transferee holding 15% or more of the
               combined voting power of the Company's outstanding securities
               following any such transfer does not following or concurrently
               with such transfer acquire any additional shares of such
               securities except from Kelso or any of their affiliates or (2)
               any Beneficial Owner who has crossed such 15% threshold solely as
               a result of an acquisition of securities directly from the
               Company, or solely as a result of an acquisition by the Company
               of Company securities, until such time thereafter as such person
               acquires additional voting securities other than directly from
               the Company and, after giving effect to such acquisition, such
               person would constitute a 15% Beneficial Owner; and (b) with
               respect to any person eligible to file a Schedule 13G pursuant to
               Rule 13d-1(b)(1) under the Act with respect to Company securities
               (an "Institutional Investor"), there shall be excluded from the
               number of securities deemed to be beneficially owned by such
               person a number of securities representing not more than 10% of
               the combined voting power of the Company's then-outstanding
               securities;

               (ii) during any period of two consecutive years beginning after
               December 1, 1996, individuals who at the beginning of such period
               constitute the Board together with those individuals who first
               become directors during such period

                                       -2-

<PAGE>   3

               (other than by reason of an agreement with the Company or the
               Board in settlement of a proxy contest for the election of
               directors) and whose election or nomination for election to the
               Board was approved by a vote of at least two-thirds of the
               directors then still in office who either were directors at the
               beginning of the period or whose election or nomination for
               election was previously so approved (the "Continuing
               Directors"), cease for any reason to constitute a majority of
               the Board;

               (iii)  the shareholders of the Company approve a merger,
               consolidation, recapitalization or reorganization of the Company,
               or a reverse stock split of any class of voting securities of the
               Company, or the consummation of any such transaction if
               shareholder approval is not obtained, other than such transaction
               which would result in at least 75% of the total voting power
               represented by the voting securities of the Company or the
               surviving entity outstanding immediately after such transaction
               being beneficially owned by persons who together owned at least
               75% of the combined voting power of the voting securities of the
               Company outstanding immediately prior to such transaction, with
               the relative voting power of each such continuing holder compared
               to the voting power of each other continuing holder not
               substantially altered as a result of the transaction; provided
               that, for purposes of this paragraph (iii), (a) such continuity
               of ownership (and preservation of relative voting power) shall be
               deemed to be satisfied if the failure to meet such 75% threshold
               (or to preserve such relative voting power) is due solely to the
               acquisition of voting securities by an employee benefit plan of
               the Company or of such surviving entity or of any subsidiary of
               the Company or such surviving entity and (b) voting securities
               beneficially owned by such persons who receive them other than as
               holders of voting securities of the Company outstanding
               immediately prior to such transaction shall not be taken into
               account for purposes of determining whether such 75% threshold
               (or such relative voting power) is satisfied;

               (iv)   the shareholders of the Company approve a plan of complete
               liquidation or dissolution of the Company or an agreement for the
               sale or disposition of all or substantially all the assets of the
               Company unless following the completion of such liquidation or
               dissolution, or such sale or disposition, the 75% threshold

                                       -3-

<PAGE>   4

               (and relative voting power) requirements set forth in
               sub-paragraph (iii) above are satisfied; or

               (v)    any other event which the Plan Administrator determines
               shall constitute a Change of Control for purposes of this Plan;

        provided, however, that a Change of Control shall not be deemed to have
        occurred if one of the following exceptions applies:

               (1)    Unless a majority of the Continuing Directors and of the
                      Plan Administrator determines that the exception set forth
                      in this paragraph (1) shall not apply, none of the
                      foregoing conditions would have been satisfied but for one
                      or more of the following persons acquiring or otherwise
                      becoming the Beneficial Owner of securities of the
                      Company: (A) any person who has entered into a binding
                      agreement with the Company, which agreement has been
                      approved by two-thirds of the Continuing Directors,
                      limiting the acquisition of additional voting securities
                      by such person, the solicitation of proxies by such person
                      or proposals by such person concerning a business
                      combination with the Company (a "Standstill Agreement");
                      (B) any employee benefit plan, or trustee or other
                      fiduciary thereof, maintained by the Company or any
                      Subsidiary; (C) any Subsidiary; or (D) the Company.

               (2)    Unless a majority of the Continuing Directors and of the
                      Plan Administrator determines that the exception set forth
                      in this paragraph (2) shall not apply, none of the
                      foregoing conditions would have been satisfied but for the
                      acquisition by or of the Company of or by another entity
                      (whether by the merger or consolidation, the acquisition
                      of stock or assets, or otherwise) in exchange, in whole or
                      in part, for securities of the Company, provided that,
                      immediately following such acquisition, the Continuing
                      Directors constitute a majority of the Board, or a
                      majority of the board of directors of any other surviving
                      entity, and, in either case, no agreement, arrangement or
                      understanding exists at that time which would cause such
                      Continuing Directors to cease thereafter to constitute a
                      majority of the Board or of such other board of directors.

                                       -4-

<PAGE>   5

               Notwithstanding the foregoing, unless otherwise determined by a
        majority of the Continuing Directors, no Change of Control shall be
        deemed to have occurred with respect to a particular Participant if the
        Change of Control results from actions or events in which such
        Participant is involved in a capacity other than solely as an officer,
        employee or director of the Company.

               For purposes of the foregoing definition of Change of Control,
        the term "Beneficial Owner," with respect to any securities, shall mean
        any person who, directly or indirectly, has or shares the right to vote
        or dispose of such securities or otherwise has "beneficial ownership" of
        such securities (within the meaning of Rule 13d-3 and Rule 13d-5 (as
        such Rules are in effect on December 1, 1996) under the Act), including
        pursuant to any agreement, arrangement or understanding (whether or not
        in writing); provided, however, that (i) a person shall not be deemed
        the Beneficial Owner of any security as a result of any agreement,
        arrangement or understanding to vote such security (A) arising solely
        from a revocable proxy or consent solicited pursuant to, and in
        accordance with, the applicable provisions of the Act and the rules and
        regulations thereunder or (B) made in connection with, or otherwise to
        participate in, a proxy or consent solicitation made, or to be made,
        pursuant to, and in accordance with, the applicable provisions of the
        Act and the rules and regulations thereunder, in either case described
        in clause (A) or clause (B) above whether or not such agreement,
        arrangement or understanding is also then reportable by such person on
        Schedule 13D under the Act (or any comparable or successor report), and
        (ii) a person engaged in business as an underwriter of securities shall
        not be deemed to be the Beneficial Owner of any securities acquired
        through such person's participation in good faith in a firm commitment
        underwriting until the expiration of forty days after the date of such
        acquisition.

        E.     Company - means American Standard Companies Inc., a Delaware
corporation, and any successor thereto.

        F.     Disability - means a Participant's inability, due to reasonably
documented physical or mental illness, for more than six months to perform his
or her duties with the Company or a Subsidiary on a full time basis if, within
30 days after written notice of termination has been given to such Participant,
he or she shall not have returned to the full time performance of his or her
duties.

                                       -5-

<PAGE>   6

        G.     Effective Date - means April 27, 1991.

        H.     Good Reason - means any of the following:

               (i)    an adverse change in a Participant's status or position(s)
        as an executive of the Company or of a Subsidiary, any adverse change in
        a Participant's status or position as an executive of the Company or of
        a Subsidiary as a result of a material diminution in his or her duties
        or responsibilities or a relocation of a Participant's principal place
        of employment to a location which is at least 50 miles further from such
        Participant's principal residence than his or her current location or
        the assignment to him or her of any duties or responsibilities which are
        inconsistent with such status or position(s), or any removal of such
        Participant from or any failure to reappoint or reelect him or her to
        such position(s) (except in connection with the termination of his or
        her employment for Cause, Disability or retirement or as a result of his
        or her death or by him or her other than for Good Reason);

               (ii)   a reduction by the Company or such Subsidiary in such
        Participant's base salary;

               (iii)  the taking of any action by the Company or a Subsidiary
        (including the elimination of a plan without providing substitutes
        therefor or the reduction of his or her awards thereunder) that would
        substantially diminish the aggregate projected value of such
        Participant's awards under the Company's or such Subsidiary's bonus and
        benefit plans in which he or she was participating at the time of the
        taking of such action;

               (iv)   the taking of any action by the Company or such Subsidiary
        that would substantially diminish the aggregate value of the benefits
        provided such Participant under the Company's or such subsidiary's
        medical, health, accident, disability, life insurance, thrift and
        retirement plans in which he or she was participating at the time of the
        taking of such action; or

               (v)    any purported termination by the Company or such
        Subsidiary of such Participant's employment that is not effected for
        Cause, provided that this shall not include termination of employment at
        age sixty-five pursuant to the Company's mandatory retirement policy for
        Corporate Officers.

               Notwithstanding the foregoing, a termination for Good Reason
        shall not have

                                       -6-

<PAGE>   7

        occurred (a) if the Participant consented in writing to the event giving
        rise to the "Good Reason", or (b) with regard to the occurrence of the
        events described in paragraphs 4(ii), (iii) and (iv) above prior to a
        Change of Control, if such reductions or actions are proportionate to
        the reductions or actions applicable to other employees in similar
        positions pursuant to a cost savings plan.

        I.     Participant - means each elected officer of the Company.

        J.     Plan - means the American Standard Companies Inc. Corporate
Officer Severance Plan.

        K.     Plan Administrator - means the Management Development and
Nominating Committee of the Board (the "MDC") or any committee or individual
designated by the MDC to perform some or all of its administrative functions
hereunder.

        L.     Subsidiary - means any corporation or partnership in which the
Company owns, directly or indirectly, 50% or more of the total combined voting
power of all classes of stock of such corporation or of the capital interest or
profits interest of such partnership.

Section III.   Eligibility.

        A Participant shall be eligible to receive the benefits provided under
the Plan in the event that:

        (i)    such Participant voluntarily terminates his or her employment for
               Good Reason or suffers an involuntary termination by the Company
               other than a termination for Cause, provided that in either case
               such termination shall not include a termination upon attainment
               of age sixty-five pursuant to the Company's mandatory retirement
               policy for Corporate Officers; and

        (ii)   such Participant executes an Agreement and Release in a form
               acceptable to the Company at the time of the Participant's
               termination of employment.

No other individual shall be eligible for benefits under the Plan and the
payment of benefits hereunder shall not be affected by the payment of retirement
or other benefits under any other Company plan.

                                       -7-

<PAGE>   8

Section IV.    Severance Payments.

        A Participant who satisfies the eligibility requirements of Section III
hereof shall receive severance payments equal to the sum of the following:

        A.     an amount equal to two times (or in the case of the Chief
Executive Officer of the Company three times) the Participant's annual base
salary in effect on the date the termination occurs; plus

        B.     the amount of the Participant's annual incentive plan target
award in effect for the calendar year in which the termination occurs determined
without regard to whether the applicable targets are obtained, multiplied by a
fraction, the numerator of which is the number of days in the year of
termination that the Participant was an employee of the Company, and the
denominator of which is 365; plus

        C.     the amount (or in the case of the Chief Executive Officer, two
times the amount) of the Participant's annual incentive plan target award in
effect for the year in which the termination occurs determined without regard to
whether the applicable targets are obtained.

Section V.     Certain Additional Payments by the Company.

        (A)    Anything in this Plan to the contrary notwithstanding, in the
event it shall be determined that any payment, award, benefit or distribution
(or any acceleration of any payment, award, benefit or distribution) by the
Company (or any of its affiliated entities) or any entity which effectuates a
Change of Control (or any of its affiliated entities) to or for the benefit of a
Participant (whether pursuant to the terms of this Plan or otherwise, but
determined without regard to any additional payments required under this Section
V) (the "Payments") would be subject to the excise tax imposed by Section 4999
of the Internal Revenue Code of 1986, as amended (the "Code"), or any interest
or penalties are incurred by a Participant with respect to such excise tax (such
excise tax, together with any such interest and penalties, are hereinafter
collectively referred to as the "Excise Tax"), then the Company shall pay to
such Participant (or to the Internal Revenue Service on behalf of Participant)
an additional payment (a "Gross-Up

                                       -8-

<PAGE>   9

Payment") in an amount such that after payment by such Participant of all taxes
(including any Excise Tax) imposed upon the Gross-Up Payment, such Participant
retains (or has had paid to the Internal Revenue Service on his behalf) an
amount of the Gross-Up Payment equal to the sum of (x) the Excise Tax imposed
upon the Payments and (y) the product of any deductions disallowed because of
the inclusion of the Gross-Up Payment in such Participant's adjusted gross
income and the highest applicable marginal rate of federal income taxation for
the calendar year in which the Gross-Up Payment is to be made. For purposes of
determining the amount of the Gross-Up Payment, a Participant shall be deemed
(i) to pay federal income taxes at the highest marginal rates of federal income
taxation for the calendar year in which the Gross-Up Payment is to be made, (ii)
to pay applicable state and local income taxes at the highest marginal rate of
taxation for the calendar year in which the Gross-Up Payment is to be made, net
of the maximum reduction in federal income taxes which could be obtained from
deduction of such state and local taxes and (iii) to have otherwise allowable
deductions for federal income tax purposes at least equal to the Gross-Up
Payment.

        (B)    Subject to the provisions of Section V(a), all determinations
required to be made under this Section V, including whether and when a Gross-Up
Payment is required, the amount of such Gross-Up Payment, and the assumptions to
be utilized in arriving at such determinations, shall be made by the public
accounting firm that is retained by the Company as of the date immediately prior
to the Change of Control (the "Accounting Firm") which shall provide detailed
supporting calculations both to the Company and the Participant within fifteen
(15) business days of the receipt of notice from the Company or Participant that
there has been a Payment, or such earlier time as is requested by the Company
(collectively, the "Determination"). In the event that the Accounting Firm is
serving as accountant or auditor for the individual, entity or group effecting
the Change of Control, the Participant may appoint another nationally recognized
public accounting firm to make the determinations required hereunder (which
accounting firm shall then be referred to as the Accounting Firm hereunder). All
fees and expenses of the Accounting Firm shall be borne solely by the Company
and the Company shall enter into any agreement reasonably requested by the
Accounting Firm in connection with the performance of the services hereunder.
The Gross-Up Payment under this Section V with respect to any Payments shall be
made no later than thirty (30) days following such Payment. If the Accounting
Firm determines that no Excise Tax is payable by the Participant, it shall
furnish the Participant with a written opinion to such effect, and to the effect
that failure to report the Excise Tax, if any, on the Participant's applicable
federal income tax

                                       -9-

<PAGE>   10

return will not result in the imposition of a negligence or similar penalty. The
Determination by the Accounting Firm shall be binding upon the Company and
Participant. As a result of the uncertainty in the application of Section 4999
of the Code at the time of the Determination, it is possible that Gross-Up
Payments which will not have been made by the Company should have been made
("Underpayment") or Gross-Up Payments are made by the Company which should not
have been made ("Overpayment"), consistent with the calculations required to be
made hereunder. In the event that the Participant thereafter is required to make
payment of any Excise Tax or additional Excise Tax, the Accounting Firm shall
determine the amount of the Underpayment that has occurred and any such
Underpayment (together with interest at the rate provided in Section
1274(b)(2)(B) of the Code) shall be promptly paid by the Company to or for the
benefit of the Participant. In the event the amount of the Gross-Up Payment
exceeds the amount necessary to reimburse the Participant for his Excise Tax,
the Accounting Firm shall determine the amount of the Overpayment that has been
made and any such Overpayment (together with interest at the rate provided in
Section 1274(b)(2) of the Code) shall be promptly paid by the Participant (to
the extent he has received a refund if the applicable Excise Tax has been paid
to the Internal Revenue Service) to or for the benefit of the Company.

Section VI.    Payment of Benefits.

        Unless the Plan Administrator determines otherwise, all severance
payments hereunder shall be paid in a single lump sum at, or as soon as
practicable after, the Participant's termination of employment.

Section VII.   Continuation of Welfare Plan Coverage.

        In the event of a Participant's voluntary termination for Good Reason or
his or her involuntary termination by the Company other than a termination for
Cause, such Participant will be entitled, upon payment of any premiums or
co-payments theretofore required for such coverage, to continue all life,
accident, health and disability coverage, on the same basis as in effect on the
date he or she terminated employment, for a period of 24 months from the date of
termination (36 months in the case of the Chief Executive Officer), provided
that, to the extent permitted by law, such coverage may be terminated at the
discretion of the Plan Administrator in the event the Participant obtains at
least equal alternate coverage.

                                      -10-

<PAGE>   11

Section VIII.  Financial Planning Assistance.

        The Company will reimburse a Participant for all bills which the Plan
Administrator determines are reasonably related to financial planning assistance
and tax preparation, provided that such bills are incurred and evidence of
payment by the Participant is submitted to the Plan Administrator within one
year after the date of termination.

Section IX.    Reservation of Right to Amend and Terminate.

        The Company reserves the right, whether in an individual case or more
generally, by a majority of the Continuing Directors to amend, reduce or
eliminate the Plan, in whole or in part, at any time and from time to time
without notice, provided that no amendment to this Plan shall be made for two
years following the occurrence of a Change of Control if such amendment would
reduce the benefits hereunder and no such amendment shall be effective if a
Change of Control occurs within six months following such amendment.

Section X.     Relationship to Other Benefits.

        No payment under the Plan shall be taken into account in determining any
payments, benefits, coverage levels or participation rates under any incentive
compensation plan, any pension, retirement, profit sharing, group insurance, or
other benefit plan of the Company; provided that, a Participant shall not be
entitled to receive the severance payment set forth in Section IV.B. of this
Plan if such Participant becomes entitled to receive a comparable payment
pursuant to Article IV of the Company's Annual Incentive Plan by reason of a
Change of Control.

Section XI.    Administration.

        Subject to Section V of the Plan, the Plan Administrator shall have full
power and authority to interpret and carry out the terms of the Plan, and to
exercise discretion where necessary or appropriate in the interpretation and
administration of the Plan, and prior to a

                                      -11-

<PAGE>   12

Change of Control all decisions by the Plan Administrator shall be final and
binding on all affected parties.

Section XII.   Expenses.

        All expenses of administering the Plan shall be borne by the Company.

Section XIII.   Withholding.

        The Company may withhold from any amounts payable hereunder such
Federal, state or local taxes as may be required to be withheld pursuant to any
applicable law or regulation.

Section XIV.   Governing Law.

        This Plan and all rights and obligations hereunder shall be construed in
accordance with and governed by the laws of the State of Delaware, without
reference to the principles of conflict of laws.

                                      -12-

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