<PAGE>
                                                                   EXHIBIT 10.06
 
                             EMPLOYMENT AGREEMENT


        THIS EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into as
of August 26, 1998, by and between UNITED STATES FILTER CORPORATION, a Delaware
corporation (the "Company"), and KENNETH I. WELLINGS ("Executive").

                             W I T N E S S E T H :
                                        
        WHEREAS, the Company and Executive desire to enter into this Agreement
to assure the Company of the continuing and exclusive service of Executive and
to set forth the terms and conditions of Executive's employment with the
Company;

        NOW, THEREFORE, in consideration of the mutual promises and covenants
set forth herein, the parties agree as follows:

1.  Employment.
    ---------- 

    1.1  Title and Duties.  The Company hereby employs Executive as President
         ----------------                                                    
and Chief Operating Officer-International of the Company.  Executive's duties,
responsibilities and authority shall be consistent with Executive's position and
shall include such other duties, responsibilities and authority as may be
assigned to Executive by the Board of Directors of the Company (the "Board") or
the Chief Executive Officer of the Company (the "CEO").

    1.2  Services and Exclusivity of Services.  The Company and Executive
         ------------------------------------                            
recognize that the services to be rendered by Executive are of such a nature as
to be peculiarly rendered by Executive, encompass the individual ability,
managerial skills and business experience of Executive and cannot be measured
exclusively in terms of hours or services rendered in any particular period.
Executive agrees to devote Executive's full business time and to use Executive's
best efforts, energy and ability exclusively toward advancing the business,
affairs and interests of the Company, and matters related thereto.

                                       1
<PAGE>
 
    1.3  Noncompetition and Nonsolicitation.  Executive agrees that during the
         ----------------------------------                                   
Term (as defined in Section 2 below) of this Agreement (and in the case of
termination pursuant to Section 5 below for a period of one year thereafter),
Executive will neither directly nor indirectly engage in a business competing
with any of the businesses conducted by the Company or any of its subsidiaries
or affiliates, nor without the prior written consent of the Board directly or
indirectly have any interest in, own, manage, operate, control, be connected
with as a stockholder, joint venturer, officer, employee, partner or consultant,
or otherwise engage, invest or participate in any business that is competitive
with any of the businesses conducted by the Company or by any subsidiary or
affiliate of the Company; provided, however, that nothing contained in this
section 1.3 shall prevent Executive from investing or trading in stocks, bonds,
commodities, securities, real estate or other forms of investment for
Executive's own account and benefit (directly or indirectly), so long as such
investment activities do not significantly interfere with Executive's services
to be rendered hereunder and are consistent with the conflict of interest
policies maintained by the Company from time to time.  Executive further agrees
that during the Term of this Agreement (and in the case of termination pursuant
to Section 5 below for a period of one year thereafter) Executive will not, in
any manner, directly or indirectly induce or attempt to induce any employee of
the Company to terminate or abandon his or her employment for any purpose
whatsoever (other than for poor performance of an employee employed by the
Company at such time).

2.  Term.  The period of employment under this Agreement (the "Term")
    ----                                                             
shall commence as of  the date first set forth above,  (the "Effective Date")
and shall continue for a period of twenty-four (24) full calendar months
thereafter, as herein provided.  Unless the Company or the Executive gives
written notice to the other party to the contrary at least 60 days prior to the
end of the Term (including any extension), on the first day of the month
following the Effective Date,  and on the first day of each month thereafter,
the Term shall be automatically extended by one full calendar month.  The Term
shall continue until the expiration of all automatic extensions affected as
aforesaid unless and until it ceases or is terminated sooner as provided in this
Agreement.

                                       2
<PAGE>
 
3.  Compensation.
    ------------ 

    3.1  Base Salary.  During the Term, the Company will pay to Executive a base
         ----------- 
salary at the rate of US$235,969 per year, payable in accordance with the
Company practices in effect from time to time ("Base Salary").  Amounts payable
shall be reduced by standard withholding and other authorized deductions.  Such
Base Salary shall be reviewed for increase (but not decrease) in the sole
discretion of the Compensation Committee of the Board of Directors of the
Company not less frequently than annually during the Term.  In conducting any
such review, the Compensation Committee shall consider and take into account,
among other things, any change in Executive's responsibilities, performance of
Executive, and compensation of other similarly situated executives of the
Company and other comparable companies and other pertinent factors.  Executive's
Base Salary shall not be decreased except upon mutual agreement between the
parties.

    3.2  Bonuses, Incentive, Savings and Retirement Plans, Welfare Benefit 
         -----------------------------------------------------------------
Plans. Executive shall be entitled to participate in all annual and long-term
-----
bonuses and incentive, savings and retirement plans generally available to other
similarly situated executive employees of the Company. Executive, and
Executive's family as the case may be, shall be eligible to participate in and
receive all benefits under welfare benefit plans, practices, programs and
policies provided to other similarly situated executive employees of the
Company, including, without limitation, medical, prescription, dental,
disability, salary continuance, employee life, group life, accidental death and
travel accident insurance plans and programs. The Company reserves the right to
modify, suspend or discontinue any and all of its benefits referred to in this
Section 3.2 at any time without recourse by Executive so long as such action is
taken generally with respect to other similarly situated peer executives and
does not single out Executive.

    3.3  Fringe Benefits.  Executive shall be entitled to receive fringe 
         ---------------                                                  
benefits consistent with Executive's duties and position, and in accordance with
the benefits provided to other similarly situated executive employees of the
Company. The Company reserves the right to modify, suspend or discontinue any
and all of its fringe benefits referred to in this Section 3.3 at any time
without recourse by Executive so long as such action is taken generally with
respect to other similarly situated peer executives and does not single out
Executive.

                                       3
<PAGE>
 
    3.4  Expenses.  Executive shall be entitled to reimbursement for expenses
         --------                                                            
incurred in the furtherance of the business of the Company in accordance with
the Company's practices and procedures, as they may exist from time to time.
Executive shall keep complete and accurate records of all expenditures such that
Executive may fully account according to the Company's practices and procedures.

    3.5  Vacation.  Executive shall be entitled to paid vacations and other 
         --------
absences from work that are reasonably consistent with the performance of
Executive's duties as provided in this Agreement. Such vacations and absences
shall be in accordance with those generally provided to other similarly situated
executive employees.

    3.6  Additional Benefits Upon a Change of Control.
         -------------------------------------------- 
         (a)  In the event a Change of Control occurs during the Term, the
Executive shall be entitled to receive, within thirty (30) days after the Change
of Control, a cash lump sum amount equal to :

              (i)  Executive's Base Salary for the balance of the Term, plus the
         target annual incentive bonus scheduled for the year in which there is
         a Change of Control and each year thereafter for the balance of the
         Term (determined without regard to any performance goals); plus

              (ii)  the present value (as determined by a nationally
         recognized employee benefits consulting firm agreed to by Executive and
         the Company) of the health, life insurance, disability and accident
         insurance plans or programs covering Executive for the balance of the
         Term.

         (b) "Change of Control" shall mean the occurrence of any of the
following:


              (i)  the acquisition by any person (including any syndicate or
         group deemed to be a "person" under Section 13(d)(3) or 14(d)(2) of the
         Securities Exchange Act of 1934, as amended (the "Exchange Act"), or
         any successor provision to either of the foregoing, of "beneficial
         ownership" directly or indirectly, of shares of capital stock 

                                       4
<PAGE>
 
         of the Company entitling such person to exercise 50% or more of the
         total voting power of all "Voting Shares" of the Company;

              (ii) during any year or any period of two consecutive years (not
         including any period prior to the execution of this Agreement),
         individuals who at the beginning of such period constitute the Board,
         and any new director (other than a director designated by a person who
         has entered into an agreement with the Company to effect a transaction
         described in clause (i), (iii) or (iv) of this definition) whose
         election by the Board or nomination for election by the Company's
         stockholders 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 (hereinafter referred to as "Continuing
         Directors"), cease for any reason to constitute at least a majority
         thereof;

              (iii) any consolidation of the Company with, or merger of the
         Company into, any other person, any merger of another person into the
         Company, or any sale or transfer of all or substantially all of the
         assets of the Company to another person (other than (x) a consolidation
         or merger which does not result in any reclassification, conversion,
         exchange or cancellation of outstanding shares of capital stock other
         than shares of capital stock owned by any of the parties to the
         consolidation or merger or (y) a merger which is effected solely to
         change the jurisdiction of incorporation of the Company or (z) any
         consolidation with or merger of the Company into a wholly owned
         subsidiary, or any sale or transfer by the Company of all of
         substantially all of its assets to one or more of its wholly owned
         subsidiaries in any one transaction or a series of transactions; or

              (iv)  the stockholders of the Company approve a plan of complete
     liquidation of the Company.

     Notwithstanding the foregoing, unless otherwise determined by the Board of
     Directors, no change in control of the Company shall be deemed to have
     occurred if (x) the Executive is a member of a group which first announces
     a proposal which, if successful, 

                                       5
<PAGE>
 
     would result in a Change of Control, which proposal (including any
     modifications thereof) is ultimately successful, or (y) the Executive
     acquires a two percent or more equity interest in the entity which
     ultimately acquires the Company pursuant to the transaction described in
     (x) of this paragraph.

     "Beneficial Ownership" shall be determined in accordance with Rule 13d-3
     promulgated under the Exchange Act, except that a person shall be deemed to
     be the "beneficial owner" of all securities that such person has the right
     to acquire, whether such right is exercisable immediately or only after the
     passage of time.

     "Voting Share" means all outstanding shares of any class or classes
     (however designated) of capital stock of the Company entitled to vote
     generally in the election of the Board of Directors of the Company.

4.   Confidential Information.

     4.1  General.  Executive acknowledges that during employment by and as a
          -------                                                            
result of a relationship with the Company, Executive will obtain knowledge of
and gain access to information regarding the Company's business, operations,
products, proposed products, production methods, processes, customer lists,
advertising, marketing and promotional plans and materials, price lists, pricing
policies, financial information and other trade secrets, confidential
information and material proprietary to the Company or designated as being
confidential by the Company which is not generally known to non-Company
personnel, including information and material originated, discovered or
developed in whole or in part by Executive (collectively referred to herein as
"Confidential Information"). Executive agrees that during the Term of this
Agreement and, to the fullest extent permitted by law, thereafter, Executive
will, in a fiduciary capacity for the benefit of the Company, hold all
Confidential Information strictly in confidence and will not directly or
indirectly reveal, report, disclose, publish or transfer any of such
Confidential Information to any person, firm or other entity, or utilize any of
the Confidential 

                                       6
<PAGE>
 
Information for any purpose, except in furtherance of Executive's employment
under this Agreement.

    4.2  Proprietary Interest.  All inventions, designs, improvements, patents,
         --------------------                                                  
copyrights and discoveries conceived by Executive during the Term of this
Agreement that are useful in or directly or indirectly related to the business
of the Company or to any experimental work carried on by the Company, shall be
the property of the Company.  Executive will promptly and fully disclose to the
Company all such inventions, designs, improvements, patents, copyrights and
discoveries (whether developed individually or with other persons) and shall
take all steps necessary and reasonably required to assure the Company's
ownership thereof and to assist the Company in protecting or defending the
Company's proprietary rights therein.

    4.3  Return of Materials.  Executive expressly acknowledges that all lists,
         -------------------                                                   
books, records and other Confidential Information of the Company obtained in
connection with the Company's business is the exclusive property of the Company
and that upon the expiration or earlier termination of this Agreement, Executive
will immediately surrender and return to the Company all such items and all
other property belonging to the Company then in the possession of Executive, and
Executive shall not make or retain any copies thereof.

5.  Termination Prior to Expiration of Term.  Executive's employment, and his
    ---------------------------------------                                  
rights under this Agreement, may be terminated prior to the expiration of the
Term of this Agreement only as provided in this section 5.

    5.1  Death or Disability.
         ------------------- 

         (a)  The Company may terminate the Executive's employment hereunder due
to death or Disability (as defined below). If Executive's employment is
terminated as a result of death or Disability, Executive (or Executive's estate
or personal representative in the event of death) shall be entitled to receive
Executive's full Base Salary until the expiration of six months from the date on
which Executive was first unable to substantially perform his duties hereunder.
Executive and/or Executive's dependents shall be entitled to continue to
participate in the Company's welfare benefit plans and programs on the same
terms as similarly situated active 

                                       7
<PAGE>
 
employees for a period of six months from the date Executive was first unable to
substantially perform Executive's duties hereunder. Executive and/or Executive's
dependents shall thereafter be entitled to any continuation of such benefits
provided under such benefit plans or by applicable law.

         (b)  "Disability" shall mean a total and permanent physical or mental
impairment that substantially limits a major life activity of Executive and that
renders Executive unable to perform the essential functions of Executive's
position, even with reasonable accommodation that does not impose an undue
hardship on the Company. Executive's Disability shall be determined by the
Company, in good faith, based upon information supplied by Executive and/or
Executive's medical personnel or others selected by the Company or its insurers.

    5.2  Termination by the Company for Cause.
         ------------------------------------ 
         (a)  The Company may terminate the Executive's employment hereunder
for Cause (as hereinafter defined). If the Company terminates the Executive's
employment hereunder for Cause, the Executive shall be entitled to receive (1)
all Base Salary due employee as of the date of termination, (2) any previously
authorized bonus (if any) for the period of Executive's employment prior to the
discharge or resignation, and (3) any previously vested benefits, such as
previously vested retirement benefits. Furthermore, the Company shall honor any
rights previously vested in Executive under a stock option or similar plan or
program.

         (b)  "Cause" shall mean (1) the Executive's conviction of a felony; (2)
a material breach of this Agreement by the Executive and/or the Executive's
gross neglect of his duties hereunder; or (3) the Executive's addiction to
alcohol or to a drug not prescribed by a physician.

    5.3  Termination Without Cause or Termination for Good Reason.
         -------------------------------------------------------- 
         (a)  The Company may terminate the Executive's employment hereunder
without Cause, and the Executive shall be permitted to terminate his employment
hereunder for Good Reason (as hereinafter defined). If the Company terminates
the Executive's employment hereunder without Cause, other than due to death or
Disability, or if the Employee effects a 

                                       8
<PAGE>
 
termination for Good Reason, the Executive shall be entitled to receive all the
benefits provided for under Section 3.6 of this Agreement.

         (b)  "Good Reason" means and shall be deemed to exist if, without the
prior written consent of the Executive, (1) the Executive suffers a reduction in
duties, responsibilities or effective authority associated with his titles and
positions as set forth and described in this Agreement or is assigned any duties
or responsibilities inconsistent in any material respect therewith; (2) the
Company fails to substantially perform any material term or provision of this
Agreement; or (3) the Executive's compensation or benefits provided for
hereunder is decreased.

6.  Arbitration.
    ----------- 

    6.1  General.  Any dispute, controversy or claim arising out of or relating
         -------
to this Agreement, the breach hereof or the coverage or enforceability of this
arbitration provision shall be settled by arbitration in Riverside County,
California (or such other location as the Company and Executive may mutually
agree), conducted in accordance with the Commercial Arbitration Rules of the
American Arbitration Association, as such rules are in effect in Riverside on
the date of delivery of demand for arbitration.  The arbitration of any such
issue, including the determination of the amount of any damages suffered by
either party hereto by reason of the acts or omissions of the other, shall be to
the exclusion of any court of law.  Notwithstanding the foregoing, either party
hereto may seek any provisional remedy in a court, including but not limited to
an action for injunctive relief or attachment, without waiving the right to
arbitration.

    6.2  Procedure.  There shall be three arbitrators, one to be chosen by each
         ---------                                                             
party at will within 10 days from the date of delivery of demand for arbitration
and the third arbitrator to be selected by the two arbitrators so chosen.  If
the two arbitrators are unable to select a third arbitrator within 10 days after
the last of the two arbitrators is chosen by the parties, the third arbitrator
will be designated, on application by either party, by the American Arbitration
Association.  The decision of a majority of the arbitrators shall be final and
binding on both parties and their respective heirs, executors, administrators,
personal representatives, successors and assigns.  Judgment upon any award of
the arbitrators may be entered in any court having 

                                       9
<PAGE>
 
jurisdiction, or application may be made to any such court for the judicial
acceptance of the award and for an order of enforcement.

    6.3  Costs and Expenses.  The Company shall pay the fees of all arbitrators,
         ------------------                                                     
witnesses and such other expenses as may be generated by the arbitration, except
Executive's attorneys fees, unless a majority of the arbitrators concludes that
such arbitration procedure was not instituted in good faith by Executive.  In
such event the arbitrators shall be empowered to allocate fees and assess costs
and other expenses of the arbitration, except attorneys fees, as they may deem
appropriate, bearing in mind the relative financial abilities of the parties and
the respective merits of their positions.

7.  Non-Assignment.  This Agreement shall not be assignable nor the duties
    --------------                                                        
hereunder delegable by Executive.  None of the payments hereunder may be
encumbered, transferred or in any way anticipated.  The Company shall not assign
this Agreement nor shall it transfer all or any substantial part of its assets
without first obtaining in conjunction with such transfer the express assumption
of the obligations hereof by the assignee or transferee.

8.  Remedies.  Executive acknowledges that the services Executive is to
    --------                                                           
render under this Agreement are of a unique and special nature, the loss of
which cannot reasonably or adequately be compensated for in monetary damages,
and that irreparable injury and damage will result to the Company in the event
of any default or breach of this Agreement by Executive.  Because of the unique
nature of the Confidential Information, Executive further acknowledges and
agrees that the Company will suffer irreparable harm if Executive fails to
comply with the obligations in section 4 hereof and that monetary damages would
be inadequate to compensate the Company for such breach.  Accordingly, Executive
agrees that the Company will, in addition to any other remedies available to it
at law, in equity or, without limitation, otherwise, be entitled to injunctive
relief and/or specific performance to enforce the terms, or prevent or remedy
the violation, of any provisions of this Agreement.  This provision shall not
constitute a waiver by the Company of any rights to damages or other remedies
which it may have pursuant to this Agreement or otherwise.

9.  Survival.  The provisions of sections 4, 5, 6 and 8 shall survive the
    --------                                                             
expiration or earlier termination of this Agreement.

                                       10
<PAGE>
 
10. Notices.  Any notices or other communications relating to this Agreement
    -------                                                                 
shall be in writing and delivered personally or mailed by certified mail, return
receipt requested, to the party concerned at the address set forth below:

    If to Company:    United States Filter Corporation
                      40-004 Cook Street
                      Palm Desert, California  92211
                      Attn: General Counsel

    If to Executive:  At Executive's residence address as maintained by
                      the Company in the regular course of its business for
                      payroll purposes.

Either party may change the address for the giving of notices at any time by
notice given to the other party under the provisions of this section 10.

11.  Entire Agreement.  This Agreement constitutes the entire agreement
     ----------------                                                  
between the parties and supersedes all prior written and oral and all
contemporaneous oral agreements, understandings and negotiations with respect to
the subject matter hereof, other than the terms of that certain written letter
agreement dated _____, 1998 by and among Executive, the Company and Culligan
International, Inc.  This Agreement may not be changed orally, but only by an
agreement in writing signed by both parties.

12.  Counterparts.  This Agreement may be executed in counterparts, each of
     ------------                                                          
which shall be an original, but all of which together shall constitute one
agreement.

13.  Construction.  This Agreement shall be governed under and construed in
     ------------                                                          
accordance with the laws of the State of California.  The paragraph headings and
captions contained herein are for reference purposes and convenience only and
shall not in any way affect the meaning or interpretation of this Agreement.  It
is intended by the parties that this Agreement be interpreted in accordance with
its fair and simple meaning, not for or against either party, and neither party
shall be deemed to be the drafter of this Agreement.

                                       11
<PAGE>
 
14.  Severability.  If any portion or provision of this Agreement is
     ------------                                                   
determined by arbitration or by a court of competent jurisdiction to be invalid,
illegal or unenforceable, the remaining portions or provisions hereof shall not
be affected The covenants in this Agreement are severable and separate, and the
unenforceability of any specific covenant shall not affect the enforceability of
any other covenant.   Moreover, in the event any court of competent jurisdiction
shall determine that the scope, time or territorial restrictions set forth are
unreasonable, then it is the intention of the parties that such restrictions be
enforced to the fullest extent which the court deems reasonable, and this
Agreement shall thereby be reformed.

15.  Binding Effect.  The rights and obligations of the parties under this
     --------------                                                       
Agreement shall be binding upon and inure to the benefit of the permitted
successors, assigns, heirs, administrators, executors and personal
representatives of the parties.

        IN WITNESS WHEREOF, the parties have executed this Agreement on the day
and in the year first written above.


                         UNITED STATES FILTER CORPORATION


                         By:    /s/ Dr. Alfred E. Osborne, Jr.
                                ------------------------------
                         Name:  Dr. Alfred E. Osborne, Jr.
                         Title: Chairman, Compensation Committee of the
                                   Board of Directors


                         EXECUTIVE
                         KENNETH I. WELLINGS

                         /s/ Kenneth I. Wellings 
                         -----------------------
                         Signature

                                       12