Document:

EX-10.26

 

Exhibit 10.26

AMERICAN STANDARD INC. 

SUPPLEMENTAL SAVINGS PLAN

(As Amended and Restated as of February 3, 2005)

Section 1. Purpose The purpose of the Plan is to provide 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 the American
Standard Pension Plan (the “Pension Plan”), who are not Corporate Officers and whose employer
contributions under the ESOP, the Savings Plan and the Pension Plan have been cut back by the 1994
statutory reduction to the amount of annual compensation recognizable for qualified plan benefit
accruals under Section 401(a)(17) of the Internal Revenue Code of 1986, with an annual benefit,
subject to certain limitations, to roughly reflect the equivalent value of lost 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 for any calendar year that portion, if any, of a
Participant’s Eligible Compensation in excess of the Statutory Limitation.

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

     2.3 ASCI means American Standard Companies Inc., a Delaware corporation.

     2.4 Board means the Board of Directors of the Company.

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     2.5 Cash Account means a separate memorandum account established in respect 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 Common Stock means the common stock, par value $0.01 per share, of ASCI.

     2.7 Company means American Standard Inc., a Delaware corporation.

     2.8 Eligible Compensation means for any calendar year the Participant’s total
remuneration, up to a maximum of $235,000, that would have been included in the definition of
compensation under the ESOP, the Savings Plan and the Pension Plan but for the Statutory
Limitation.

     2.9 Employer Contribution Percentage means for each Participant the sum of (a) 3% plus
(b) the percentage of such Participant’s compensation for which the Company actually provided a
100% matching contribution under the Savings Plan during the year, determined by taking into
account (i) such Participant’s level of contributions throughout the year and (ii) whether or not
such Participant also participated in the Pension Plan.

     2.10 Fair Market Value on any date means the closing price of a Share on such date as
reported on the New York Stock Exchange consolidated reporting 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
so reported.

     2.11 Participant means with respect to each calendar year any participant in the
ESOP, the Savings Plan or the Pension Plan who is not a corporate officer of the Company and whose

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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.

     2.12 Plan means this American Standard Inc. Supplemental Savings Plan.

     2.13 Plan Unit means a Participant’s right 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.

     2.14 Share means a share of Common Stock.

     2.15 Statutory Limitation means for any calendar year the maximum dollar 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 Internal Revenue Code of 1986, as amended (or any successor
section thereto).

     2.16 Stock Account means a separate memorandum account established in respect of a
Participant which shall be credited 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.

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

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 Plan Unit to be equivalent to one Share or
(b) cash equivalent credits to the Cash Account.

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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
thereof awarded, 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.

Section 5. Cash Account. The Company shall maintain a Cash Account for each Participant who
receives an 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. Any amounts credited to the Cash Account shall
earn interest at the Applicable Interest Rate in effect for each calendar year, which interest
shall be credited on the last business day of each month.

Section 6. Awarding of Plan Units. As of the end of each calendar year, 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 December 31 of that calendar year.

Notwithstanding the foregoing, no Participant shall be entitled to the foregoing award of Plan
Units for the calendar year in which such Participant’s Termination of Employment occurs, unless
such Termination of Employment occurs on December 31st.

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Whenever a dividend other than a dividend payable in the form of Shares is declared with respect to
ASCI’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 Units in
the Participant’s Stock Account on the related dividend record date and (B) the amount of any cash
dividend declared by ASCI on a Share (or, in the case of any dividend distributable in property
other than Common Stock, the per share value of such dividend, as determined by ASCI 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 the end of each calendar year, the Company will
add to the Cash Account of any Participant 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 the foregoing, no Participant shall be entitled to an award
for the calendar year in which such Participant’s Termination of Employment occurs, unless such
Termination of Employment occurs on December 31st.

Section 8 Vesting and Forfeitures. Any Participant 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 Participants
who 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

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for the Pension Plan. Stock Account balances of those Participants 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 of
Employment 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 Account and 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 of interest 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 under the Plan are credited to a Participant’s Stock Account; or in the
event of any stock split, combination of Shares, recapitalization or other similar change in the
authorized capital stock of ASCI during such period; or in the event of the merger or consolidation
of ASCI into or with any other corporation or the reorganization, dissolution or liquidation of
ASCI during such period; there shall be credited to such Participant’s Stock Account 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 of Plan Units credited to the Participant’s Stock Account at the time of such
event were actually Shares owned by such Participant.

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

     Upon a Participant’s Termination of Employment, such Participant shall be entitled to a
distribution of his Stock Account as soon as administratively practical. The distribution shall be
in Shares, with one Share distributed for each unit in the Stock Account, and fractional units
converted to cash based on the Fair Market Value as of the date of such Participant’s Termination
of Employment. Notwithstanding the foregoing, so long as it will not cause the Company or ASCI 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
based on the Fair Market Value as of the date of such Participant’s Termination of Employment in
lieu of a distribution in Shares. Distributions shall be subject to all required tax withholdings,
and for purposes of Stock Account distributions, the Stock Account shall be valued as of the date
of Termination of Employment. In the event of distribution of a Participant’s Stock Account due to
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.

     Upon a Participant’s Termination of Employment, such Participant shall be entitled to a
distribution of the Actuarial Equivalent value of his Cash Account balance, if any, as soon as
administratively practical, provided that, “Actuarial Equivalent” shall have the same meaning as
ascribed to such term in the Pension Plan and Actuarial Equivalent value shall be calculated in

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the same manner as for 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 date of Termination of Employment. 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 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 first effective as of
January 1, 1994. The Plan, as amended and restated herein, shall be effective as of February 3,
2005. The Board may amend or terminate the Plan at any time; provided that, no such amendment or
termination 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 his delegate(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 and all 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 to exercise 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

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to the same claims and appeals procedures as the qualified plans.

Section 14. Miscellaneous.

     a. Unfunded Plan. The Company shall not be obligated to fund its liabilities 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 or its 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 at such
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 other than 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 shall be 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 the State 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

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compensated individuals.

     e. Compliance. The Plan Administrator shall impose such restrictions, limitations,
rules and regulations as it may deem advisable in order to 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
Company or ASCI’s Certificate of Incorporation of Bylaws, or any other law, regulation, rule, or
binding contract to which the Company or ASCI is subject. The Plan is intended to be an excess
parallel plan within the meaning of the New York Stock Exchange rules relating to shareholder
approval of equity compensation plans.

10EX-10.30

 

Exhibit 10.30

CONSULTING AGREEMENT

     CONSULTING AGREEMENT, dated as of February 23, 2005, by and between American Standard
Companies Inc., a Delaware Company, with its principal place of business at One Centennial Avenue,
Piscataway, New Jersey 08855 (the “Company”) and J. Paul McGrath an individual residing at 7 Lenape
Trail, Cedar Grove, New Jersey 07009 (“Consultant”).

     WHEREAS, the Company wishes to avail itself of Consultant’s knowledge, expertise and
experience by hiring Consultant as a consultant;

     WHEREAS, Consultant is willing to serve as a consultant to the Company upon the terms and
conditions set forth below;

     NOW, THEREFORE, in consideration of their mutual promises, the Company and Consultant agree as
follows:

     1. Effective Date. This Agreement shall become effective on the date first stated
above (the “Effective Date”).

     2. Consulting Services. During the period beginning on the Effective Date and
continuing for one year thereafter, (the “Consulting Period”), Consultant shall provide to the
Company, consulting services commensurate with his status and experience with respect to such
matters as shall be reasonably requested from time to time by the Chief Executive Officer, the
General Counsel or the Board of Directors of the Company.

     Consultant shall not, by virtue of the consulting services provided hereunder, be
considered to be an officer or employee of the Company or its affiliates during the Consulting
Period, and shall not have the power or authority to contract in the name of or bind the Company or
its affiliates, except as may be expressly stated in a written delegation of such authority from
the Chief Executive Officer or the General Counsel of the Company. Consultant shall perform the
services hereunder as an independent contractor.

     3. Consulting Fees.

     (a) Fixed Fee. During the Consulting Period, the Company shall pay Consultant
monthly in advance a fixed fee at the rate of $8,333.33 per month.

     (b) Expenses. The Company shall also reimburse Consultant for such reasonable travel,
lodging and other appropriate expenses incurred by Consultant in the course or on account of
rendering consulting services hereunder in accordance with, and subject to the terms and conditions
of, the expense reimbursement policy applicable to expenses incurred by officers of the Company.

     4. Confidential Information. Without the prior written consent of the Chief Executive
Officer or the General Counsel of the Company, and except to the extent

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required by an order of a court having competent jurisdiction or under subpoena from an
appropriate government agency, Consultant shall not disclose to any third person any trade secrets,
customer lists, drawings, designs, product development, marketing plans, sales plans, management
organization, operating policies and manuals, business plans, financial records, any information
related to any of the foregoing or other financial, commercial, business or technical information
related to the Company or any of its affiliates unless such information has been previously
disclosed to the public by the Company or an affiliate or has become public knowledge other than by
Consultant’s breach of this Agreement.

     5. Indemnity. The Company shall indemnify Consultant for any claim arising out of or
in connection with Consultant’s service as a consultant pursuant to the terms of this Agreement in
the same manner and to the same extent as the Company would have indemnified Consultant had he
performed such services as an officer of the Company.

     6. Announcement, Public Comment. Consultant and the Company shall mutually agree upon
the content of any voluntary statements, whether oral or written, to be made by Consultant or the
Company to any third party or parties regarding Consultant’s services as a consultant including,
without limitation, any press release or other statements to the press.

     7. Miscellaneous. This Agreement may only be amended by a written instrument signed
by the Company and Consultant. Except as otherwise expressly provided hereunder, this Agreement
shall constitute the entire agreement between the Company and Consultant with respect to the
subject matter hereof. This Agreement may be executed in counterparts, each of which shall be
deemed an original but all of which together shall constitute one and the same instrument. Any
notices to be given and any payments to be made hereunder shall be delivered in hand or sent by
registered mail, return receipt requested, to the respective party at the address noted above for
such party or to such other address as either such party shall direct by written notice given in
accordance with this Section 7.

     8. Governing Law. This Agreement shall be governed by the laws of the State of New
Jersey, without reference to the principles of conflicts of law.

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

	 	 	 
	American Standard Companies Inc.
	 	 	 
	By:	 	/s/ Lawrence B. Costello
	 	 	 

	 	 	Lawrence B. Costello
	 	 	Sr. V.P. – Human Resources
	 	 	 
	 	 	 
	 	 	 
	By:	 	/s/ J. Paul McGrath
	 	 	 

	 	 	J. Paul McGrath

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