Document:

<PAGE>   1
                                                                   Exhibit 10.37

                               SECOND AMENDMENT TO
                         EXECUTIVE EMPLOYMENT AGREEMENT

         THIS SECOND AMENDMENT TO EXECUTIVE EMPLOYMENT AGREEMENT (the
"Agreement") is made and entered into as of this 21st day of May, 2000, by and
between Waterlink, Inc., a Delaware corporation (the "Company"), and T. Scott
King ("Executive").

                              W I T N E S S E T H :

         WHEREAS, the Company and Executive entered into an Executive Employment
Agreement, dated as of May 21, 1998, as amended as of January 20, 2000 (the
"Employment Agreement"); and

         WHEREAS, the Company and Executive desire to amend the Employment
Agreement, as provided below;

         NOW THEREFORE, in consideration of the premises and mutual covenants
contained herein and for other good and valuable consideration, the adequacy and
receipt of which are hereby acknowledged, the parties agree as follows:

         1. CHANGE OF CONTROL BONUS. The Employment Agreement shall be amended
by adding the following Section immediately following Section 4.5:

                  4.6 CHANGE OF CONTROL BONUS. (a) In the event that Executive
         is still employed by the Company at the time of a Change in Control
         (the "Change in Control Date"), the Company shall pay to Executive as
         an additional bonus (the "Change of Control Bonus") (a) a lump sum
         amount equal to the product of (A) the sum of (1) the Base Salary in
         effect as of the Change in Control Date and (2) the Bonus Payment, and
         (B) two (2), and (b) the sum of two hundred fifty thousand dollars
         ($250,000), such payments being referred to as the "Change in Control
         Payment"). All payments under this Section 4.6 shall be made on the
         Change in Control Date. In addition, if the receipt of the lump sum
         pursuant to the foregoing sentence would cause Executive to pay federal
         income tax for the year of receipt at a higher marginal rate than
         Executive would have paid for such year had there not been a Change in
         Control (the "Original Marginal Amount"), Executive shall receive an
         additional amount such that the amount retained by Executive after the
         payment of federal income taxes on such lump sum shall be the same as
         if such lump sum had been taxed at the Original Marginal Rate.
         Executive shall not be required to mitigate the amount of compensation
         payable to Executive hereunder, by securing other employment or
         otherwise, nor will such compensation be reduced by reason of Executive
         securing other employment or for any other reason.

                  (b) In the event that Executive becomes entitled to the Change
         in Control Payment provided for in Section 4.6(a), if any of the Change
         in Control

<PAGE>   2

         Payment will be subject to the tax (the "Excise Tax,") imposed by
         Section 4999 of the Internal Revenue Code of 1986, as amended (the
         "Code"), the Company shall pay to Executive at the time specified
         below, an additional amount (the "Gross- Up Payment") such that the net
         amount retained by Executive, after deduction of any Excise Tax on the
         Change in Control Payment and any federal, state and local income tax
         and Excise Tax upon the payment provided for by this paragraph, shall
         be equal to the Change in Control Payment. For purposes of determining
         whether any of the Change in Control Payment will be subject to the
         Excise Tax and the amount of such Excise Tax, (x) any other payments or
         benefits received or to be received by Executive in connection with a
         Change in Control of the Company (whether pursuant to the terms of this
         Agreement or any other plan, arrangement or agreement with the Company,
         any person whose actions result in a Change in Control or any person
         having such a relationship with the Company or such person as to
         require attribution of stock ownership between the parties under
         section 318(a) of the Code) shall be treated as "parachute payments"
         within the meaning of section 280G(b)(2) of the Code, and all "excess
         parachute payments" within the meaning of section 280G(b)(l) shall be
         treated as subject to the Excise Tax, unless in the opinion of tax
         counsel selected by the Company's independent auditors and acceptable
         to Executive such other payments or benefits (in whole or in part) do
         not constitute parachute payments, or such excess parachute payments
         (in whole or in part) represent reasonable compensation for services
         actually rendered within the meaning of section 280G(b)(4) of the Code,
         (y) the amount of the Change in Control Payment which shall be treated
         as subject to the Excise Tax shall be equal to the lesser of (A) the
         total amount of the Change in Control Payment or (B) the amount of
         excess parachute payments within the meaning of Sections 280G(b)(1) and
         (4) (after applying clause (x), above, and after deducting any excess
         parachute payments in respect of which payments have been made under
         this Section 4.6(b)), and (z) the value of any non-cash benefits or any
         deferred payment or benefit shall be determined by the Company's
         independent auditors in accordance with the principles of Sections
         280G(d)(3) and (4) of the Code. For purposes of determining the amount
         of the Gross-Up Payment, Executive shall be deemed to pay federal
         income taxes at the highest marginal rate of federal income taxation in
         the calendar year in which the Gross-Up Payment is to be made, and
         state and local income taxes at the highest marginal rates of taxation
         in the state and locality of Executive's residence upon the Change in
         Control Date, net of the maximum reduction in federal income taxes
         which could be obtained from deduction of such state and local taxes.
         In the event that the Excise Tax is subsequently determined to be less
         than the amount taken into account hereunder at the time of the Change
         in Control, Executive shall repay to the Company at the time that the
         amount of such reduction in Excise Tax is finally determined the
         portion of the Gross-Up Payment attributable to such reduction plus
         interest on the amount of such repayment at the rate provided in
         section 1274(b) (2) (B) of the Code. In the event that the Excise Tax
         is determined to

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<PAGE>   3

         exceed the amount taken into account hereunder at the Change in Control
         including by reason of any payment the existence or amount of which
         cannot be determined at the time of the Gross-Up Payment), the Company
         shall make an additional gross-up payment in respect of such excess
         (plus any interest payable with respect to such excess) at the time
         that the amount of such excess is finally determined.

                  (c) For purposes of this Agreement, a "Change in Control" of
         the Company shall mean (i) the acquisition of beneficial ownership (as
         defined in Rule 13d-3 under the Securities Exchange Act of 1934, as
         amended (the "Exchange Act")) , directly or indirectly, by any "person"
         (as such term is used in Sections 13(d) and 14 (d) of the Exchange
         Act), other than the Company or Executive or an entity directly or
         indirectly controlled by Executive, of securities of the Company
         representing a majority or more of the combined voting power of the
         Company's then outstanding securities, (ii) the failure, for any
         reason, of the individuals who presently constitute the Board of
         Directors (the "Incumbent Board") to constitute at least a majority
         thereof, provided that any director whose election has been approved in
         advance by directors representing at least two-thirds (2/3) of the
         directors comprising the Incumbent Board or by Executive shall be
         considered, for these purposes, as though such director were a member
         of the Incumbent Board, (iii) the stockholders of the Company approve a
         merger or consolidation of the Company with any other corporation,
         other than a merger or consolidation which would result in the voting
         securities of the Company outstanding immediately prior thereto
         continuing to represent (either by remaining outstanding or by being
         converted into voting securities of the surviving entity) at least a
         majority of the combined voting power of the voting securities of the
         Company or such surviving entity outstanding immediately after such
         merger or consolidation, and such merger or consolidation occurs; or
         (iv) the stockholders of the Company approve a plan of complete
         liquidation of the Company or an agreement for the sale or disposition
         by the Company of all or substantially all of the Company's assets.

                  (d) In the event of a Change in Control, Executive hereby
         agrees that he will be receptive to a request by (i) the person
         referred to in Section 4.6(c)(i), or (ii) the Company or its successor,
         as the case may be, to remain with the Company or its successor during
         an appropriate short-term transition period following the Change in
         Control either under the terms of this Agreement or another agreement,
         all as negotiated in good faith by the Company or its successor and
         Executive, it being agreed that reaching such agreement is not a
         condition to receipt by Executive of payments under this Section 4.6.

                                        3

<PAGE>   4

         2. BONUS PAYMENT.

         (i)   Section 8.1 of the Employment Agreement shall be amended by
         deleting the phrase ", other than any Bonus Payment that is not then
         determined, which shall be paid when such Bonus Payment under Section
         4.2 would otherwise have been due" from the penultimate sentence
         thereof; and

         (ii)     Section 8.2 of the Employment Agreement shall be amended by:

                  (A) deleting the phrase ", other than any Bonus Payment that
                  is not then determined, which shall be paid when such Bonus
                  Payment under Section 4.2 would otherwise have been due" from
                  the first sentence thereof, and

                  (B)      by deleting the last sentence thereof and inserting
                           the following in lieu thereof:

                           The "Bonus Payment" shall mean a payment in an amount
                           equal to the then current Base Salary.

         3. IMPROPER TERMINATION; GOOD REASON. Section 8.4 of the Employment
Agreement shall be amended by deleting that Section in its entirety and
inserting the following in lieu thereof:

         8.4      IMPROPER TERMINATION; GOOD REASON.

                  (a) In the event that there has not been a Change in Control
         Payment made pursuant to Section 4.6 above, then if (x) in breach of
         this Agreement, the Company shall terminate Executive's employment
         other than pursuant to Section 7.3 (it being understood that a
         purported termination pursuant to Section 7.3 which is disputed and
         finally determined not to have been proper shall be a termination by
         the Company in breach of this Agreement) or (y) Executive shall
         terminate his employment for Good Reason, then

                                  (i) The Company shall pay Executive his full
                           Base Salary through the Date of Termination at the
                           rate in effect at the time Notice of Termination is
                           given, as well as all accrued bonus compensation
                           through the Date of Termination; plus

                                 (ii) In lieu of all other salary and incentive
                           compensation payments which Executive would have
                           earned under this Agreement but for his termination,
                           the Company shall pay to Executive, as liquidated
                           damages, an amount equal to the product

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                           of (A) the sum of (1) the Base Salary in effect as of
                           the Date of Termination and (2) the Bonus Payment,
                           and (B) two (2), such amounts to be payable to
                           Executive in forty-eight (48) equal semi- monthly
                           installments on the fifteenth and last day of each
                           month, commencing on the fifteenth day of the month
                           following the month in which the Date of Termination
                           occurs other than any Bonus Payment that is not then
                           determined, which shall be paid in equal installments
                           over the balance of such forty-eight (48)
                           installments commencing no later than ninety (90)
                           days after the end of the fiscal year in which
                           Executive's employment is terminated. If the Company
                           fails to make, within five (5) days of the dates
                           specified above, any two (2) payments required to be
                           made pursuant to this Section 8.4(a)(i) or (ii), the
                           Company shall pay to Executive, within ten (10) days
                           of the date of such second failure, in a lump sum, an
                           amount equal to the sum of the remaining payments
                           (including any payments that the Company failed to
                           make) to which Executive would have been entitled
                           pursuant to Section 8.4(a)(i) and (ii) if such
                           failures had not occurred.

                  (b) If Executive terminates his employment under this
         Agreement for Good Reason, the Company shall pay all other damages for
         any and all loss of benefits which Executive would have received under
         the Company's employee benefit plans if the Company had not breached
         this Agreement and had Executive's employment continued for the full
         Term as then in effect (including, without limitation, benefits
         Executive would have been entitled to receive pursuant to any of the
         Company's pension, profit sharing and other deferred compensation plans
         had his employment continued for such Term at the rate of compensation
         specified herein), and including all legal fees and expenses incurred
         by him as a result of such termination and in enforcing his rights.

         4. CONTINUED MAINTENANCE OF BENEFIT PLANS. Section 8.5 of the
Employment Agreement shall be amended by deleting the reference in the first
sentence to "one and one-half (1 1/2) years" and inserting "two (2) years" in
lieu thereof.

         5. NON-COMPETITION. Section 11.2 of the Employment Agreement shall be
amended by deleting the Section in its entirety and inserting the following in
lieu thereof:

                  11.2 Executive agrees that for a period commencing on the Date
         of Termination and concluding upon the earlier to occur of (a)
         twenty-four (24) months after such Date of Termination and (b) the date
         subsequent to such Date of Termination upon which the Company is in
         material breach of any material provision of this Agreement (provided
         that Executive notifies the Company in writing of such breach and the
         Company does not cure such breach within ten (10)

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         days of the receipt of such notice from Executive), Executive shall not
         own operate, control or participate in the ownership, management,
         manage operation or control, or be employed by or connected in any
         manner in the "Territory" (as defined below) with, any business, firm
         or corporation which is engaged in or competes with the business of the
         Company, its subsidiaries, affiliates or division as such business is
         constituted on the Date of Termination. The Territory shall mean any
         country in the world in which the Company or any of its subsidiaries
         maintains offices or manufacturing facilities or has employees at the
         Date of Termination, it being acknowledged that the Company's business
         is and is intended to continue to be international in nature.

         6. NO OTHER AMENDMENTS. Other than as expressly stated herein, the
Employment Agreement shall remain in full force and effect.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first set forth above.

                                       WATERLINK, INC.

                                       By: /s/Robert Pinkas
                                       ---------------------------------
                                       Name: Robert Pinkas
                                       Title:    Chairman of the Board

                                       /s/T. Scott King
                                       ---------------------------------
                                         T. Scott King

                                        6<PAGE>   1
                                                                   Exhibit 10.38
                                 NINTH AMENDMENT
                                 ---------------

                  This Ninth Amendment (this "Amendment") is entered into as of
this 28th day of September, 2000 among Waterlink, Inc. (the "Company"), Bank of
America, N.A. (f/k/a Bank of America National Trust and Savings Association), as
Agent (the "Agent"), and the financial institutions from time to time party
thereto (the "Banks"). Unless otherwise specified herein, capitalized terms used
in this Amendment shall have the meanings ascribed to them by the Agreement (as
defined below).

                                    RECITALS
                                    --------

                  WHEREAS, the Company, the Agent and the Banks are party to
that certain Amended and Restated Credit Agreement, dated as of June 27, 1997
and as amended and restated as of February 11, 2000, as amended by the Eighth
Amendment to the Amended and Restated Credit Agreement dated as of May 2, 2000
(as amended, supplemented, restated or otherwise modified from time to time, the
"Agreement");

                  WHEREAS, the Company, the Agent and the Banks wish to enter
into certain amendments to the Agreement, each as more fully set forth herein;

                  NOW THEREFORE, in consideration of the mutual execution hereof
and other good and valuable consideration, the parties hereto agree as follows:

                  SECTION  1. Amendments.
                              ----------

                  (a) SECTION 1.01 OF THE AGREEMENT IS HEREBY AMENDED BY
INSERTING THE FOLLOWING DEFINITIONS IN APPROPRIATE ALPHABETICAL ORDER:

                  "AERO-MOD TRANSACTION" shall mean the sale by the Company of
all of the outstanding capital stock of Aero-Mod Incorporated, a Delaware
corporation ("Aero-Mod"), and Waterlink Operational Services, Inc., a Delaware
corporation ("WOSI"), in a single transaction as described more specifically on
Annex A to the Ninth Amendment.

                  "NINTH AMENDMENT" shall mean the Ninth Amendment to this
         Agreement, dated as of September 28, 2000.

                  "NINTH AMENDMENT EFFECTIVENESS DATE" shall mean the date upon
         which the Agent advises the Company that the Ninth Amendment has become
         effective.

                  (b) THE DEFINITIONS OF "2000 TL COMMITMENT" AND "INTEREST
PAYMENT DATE" IN SECTION 1.01 OF THE AGREEMENT ARE HEREBY AMENDED BY DELETING
EACH IN ITS ENTIRETY AND INSERTING THE FOLLOWING IN LIEU THEREOF:

                  "2000 TL COMMITMENT" means from and after the Ninth Amendment
         Effectiveness Date (a) in the aggregate, up to $2,000,000, and (b) as
         to each Bank with a 2000 TL Commitment, its Pro Rata Share as indicated
         on Schedule I to the Ninth

<PAGE>   2

         Amendment; PROVIDED, that on November 15, 2000, the 2000 TL Commitment,
         and the 2000 TL Commitment of each Bank, shall be reduced to zero.

                  "INTEREST PAYMENT DATE" means, as to any Offshore Rate Loan,
         the last day of each Interest Period applicable to such Offshore Rate
         Loan and, as to any Base Rate Loan, the last Business Day of each
         calendar month; PROVIDED, HOWEVER, that if any Interest Period exceeds
         three months, the date that falls three months after the beginning of
         such Interest Period and after each Interest Payment Date thereafter is
         also an Interest Payment Date.

                  (c) THE DEFINITION OF "EBIT" IN SECTION 1.01 OF THE AGREEMENT
IS HEREBY AMENDED BY REPLACING THE PERIOD AT THE END OF SUBCLAUSE (C) WITH A
SEMI-COLON FOLLOWED BY THE WORD "AND", AND ADDING THE FOLLOWING SUBCLAUSE (D)
THERETO:

                  "(D) for all purposes for any period which includes the fourth
         fiscal quarter of the Company's 2000 fiscal year or the first fiscal
         quarter of the Company's 2001 fiscal year, there shall be excluded in
         determining EBIT any expense or loss related to the Aero-Mod
         Transaction, which serves to reduce Net Income of the Company and/or
         its Subsidiaries in such fiscal quarter, PROVIDED, HOWEVER, that the
         aggregate amount of such expenses or losses shall not exceed
         $1,700,000."

                  (d) THE DEFINITION OF "EBITDA" IN SECTION 1.01 OF THE
AGREEMENT IS HEREBY AMENDED BY REPLACING THE PERIOD AT THE END OF SUBCLAUSE (C)
WITH A SEMI-COLON FOLLOWED BY THE WORD "AND", AND ADDING THE FOLLOWING SUBCLAUSE
(D) THERETO:

                  "(D) for all purposes for any period which includes the fourth
         fiscal quarter of the Company's 2000 fiscal year or the first fiscal
         quarter of the Company's 2001 fiscal year, there shall be excluded in
         determining EBITDA any expense or loss related to the Aero-Mod
         Transaction, which serves to reduce Net Income of the Company and/or
         its Subsidiaries in such fiscal quarter, PROVIDED, HOWEVER, that the
         aggregate amount of such expenses or losses shall not exceed
         $1,700,000."

                  (e) CLAUSE (b) OF SECTION 2.09 OF THE AGREEMENT IS HEREBY
         AMENDED BY DELETING IT IN ITS ENTIRETY AND REPLACING IT WITH THE
         FOLLOWING IN LIEU THEREOF:

                  "(b) ASSET DISPOSITIONS. If the Company or any of its
Subsidiaries shall at any time or from time to time make or agree to make a
Disposition then (i) the Company shall promptly provide written notice to the
Agent of such proposed Disposition (including the amount of the estimated Net
Proceeds to be received by the Company in respect thereof) and (ii) promptly
upon receipt by the Company or its Subsidiary of the Net Proceeds of such
Disposition the Company shall FIRST, prepay Term Loans in an aggregate amount
equal to the amount of such Net Proceeds, to be applied to the Scheduled
Repayments in inverse order of maturity (PROVIDED, that in the event that the
Aero-Mod Transaction is consummated (x) on or prior to September 29, 2000, Net
Proceeds from the Aero-Mod Transaction shall be applied FIRST, to repay in full
the

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<PAGE>   3

Scheduled Repayment due on September 29, 2000, SECOND, to repay $1,000,000 of
the Scheduled Repayment due on November 15, 2000, THIRD, to repay the Scheduled
Repayments in inverse order of maturity, FOURTH, to prepay Swing Line Loans
(without any reduction in the Swing Line Loan Commitment) and FIFTH, to prepay
Revolving Loans (without any reduction in the Revolving Loan Commitment) and (y)
after September 29, 2000 and on or before November 15, 2000, Net Proceeds from
the Aero-Mod Transaction shall be reduced by $700,000, then applied FIRST, to
repay $1,000,000 of the Scheduled Repayment due on November 15, 2000, SECOND, to
the Scheduled Repayments in inverse order of maturity, THIRD, prepay Swing Line
Loans (without any reduction in the Swing Line Loan Commitment) and FOURTH,
prepay Revolving Loans (without any reduction in the Revolving Loan
Commitment))."

                  (f) CLAUSE (a) OF SECTION 2.10 OF THE AGREEMENT IS HEREBY
AMENDED BY DELETING IT IN ITS ENTIRETY AND REPLACING IT WITH THE FOLLOWING IN
LIEU THEREOF:

                  "(a) (i) TERM LOANS. On each date set forth below, the Company
         shall be required to repay the principal amount (or such other amount
         after giving effect to any prepayments permitted or required pursuant
         to this Agreement) of the Term Loans as is set forth opposite such date
         (each, a "Scheduled Repayment"):

                           Date                      Amount
                           ----                      ------

                  September 29, 2000               $   700,000
                  November 15, 2000                  1,000,000
                  December 29, 2000                  2,000,000
                  March 30, 2001                     2,000,000
                  June 29, 2001                      2,000,000
                  September 28, 2001                 2,000,000
                  December 31, 2001                  2,500,000
                  March 29, 2002                     2,500,000
                  June 28, 2002                      2,500,000
                  September 30, 2002                 2,500,000
                  December 31, 2002                  2,500,000
                  March 31, 2003                     2,500,000
                  Term Maturity Date                20,835,816.30

                  (ii) The Company shall repay to the Banks on November 15, 2000
         the aggregate principal amount of Term Loans outstanding on such date
         that were borrowed under the 2000 TL Commitment.

Any amendment to this SECTION 2.10(a) shall require the consent of all of the
Banks.".

                  (g) CLAUSE (b)(iii) OF SECTION 3.01 OF THE AGREEMENT IS HEREBY
AMENDED BY DELETING IT IN ITS ENTIRETY AND REPLACING IT WITH THE FOLLOWING IN
LIEU THEREOF:

                  "(iii) the expiry date of any requested Letter of Credit is
         after the Revolving Termination Date;".

                                       3
<PAGE>   4

                  (h) CLAUSE (f) OF SECTION 8.05 OF THE AGREEMENT IS HEREBY
AMENDED BY DELETING THE DOLLAR AMOUNT "$15,000,000" CONTAINED THEREIN AND
REPLACING IT WITH THE DOLLAR AMOUNT "$6,500,000."

                  (i) CLAUSE (b) OF SECTION 8.11 OF THE AGREEMENT IS HEREBY
AMENDED BY DELETING THE FOLLOWING PROVISO IN ITS ENTIRETY:

                  "; PROVIDED, HOWEVER, that the Company may make a one time
         prepayment on any Subordinated Debt in an aggregate amount up to
         $250,000".

                  (j) CLAUSE (a) OF SECTION 10.04 OF THE AGREEMENT AND SECTION
10.05 OF THE AGREEMENT ARE EACH HEREBY AMENDED TO INSERT THE FOLLOWING
PARENTHETICAL AFTER THE PHRASE "MAJORITY BANK" EACH TIME SUCH PHRASE APPEARS
THEREIN:

                  "(or all of the Banks if required by SECTION 11.01)".

                  (k) CLAUSE (a) OF SECTION 11.01 OF THE AGREEMENT IS HEREBY
AMENDED BY DELETING IT IN ITS ENTIRETY AND REPLACING IT WITH THE FOLLOWING IN
LIEU THEREOF:

                  "(a) increase or extend the Commitment of any Bank (or
         reinstate any Commitment terminated pursuant to SECTION 8.02) or
         increase the amount of the L/C Commitment;".

                  SECTION  2.  CONSENT

                   (a) Notwithstanding anything to the contrary contained in the
Agreement, the Banks hereby consent to the consummation of the Aero-Mod
Transaction, and hereby authorize the Agent and the Collateral Agent to take any
action each deems desirable to release Aero-Mod and WOSI from each Collateral
Document to which such Person is a party, release the Lien held by the
Collateral Agent on the capital stock of Aero-Mod and WOSI and return the
capital stock of Aero-Mod and WOSI to the Company.

                  SECTION  3.  REFERENCE TO AND EFFECT UPON THE AGREEMENT.

                  (a) Except as specifically amended above, the Agreement shall
remain in full force and effect and is hereby ratified and confirmed.

                  (b) The execution, delivery and effectiveness of this
Amendment shall not operate as a waiver of any right, power or remedy of the
Bank under the Agreement, nor constitute a waiver of any provision of the
Agreement, except as specifically set forth herein. Upon the effectiveness of
this Amendment, each reference in the Agreement to "this Agreement",
"hereunder", "hereof", "herein" or words of similar import shall mean and be a
reference to the Agreement as amended hereby.

                  SECTION 4. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF ILLINOIS.

                                       4
<PAGE>   5

                  SECTION 5. HEADINGS. Section headings in this Amendment are
included herein for convenience of reference only and shall not constitute a
part of this Amendment for any other purposes.

                  SECTION 6. COUNTERPARTS. This Amendment may be executed in any
number of counterparts (including by facsimile transmission), each of which when
so executed shall be deemed an original but all such counterparts shall
constitute one and the same instrument.

                  SECTION 7. EFFECTIVENESS. This Amendment shall become
effective as of the date first written above upon the delivery to the Agent of
executed signature pages (including by facsimile transmission) to this Amendment
signed by the Company and the Banks.

                            [signature pages follow]

                                       5
<PAGE>   6

         IN WITNESS WHEREOF, the parties hereto have executed this Amendment by
its duly authorized officer as of the date first written above.

                              WATERLINK, INC.

                              By:  /s/ Mark E. Brody
                                 -------------------------------------

                              Title: Chief Financial Officer
                                     ---------------------------------

                              BANK OF AMERICA, N.A., as Agent

                              By: Kristine D. Hyde
                                 -------------------------------------

                              Title: Vice President
                                   -----------------------------------

                              BANK OF AMERICA, N.A., Individually as a Bank

                              By: /s/ Steven R. Arentsen
                                 -------------------------------------

                              Title: Senior Vice President
                                   -----------------------------------

                              COMERICA BANK

                              By:/s/ Preeti Sarnaik
                                 -------------------------------------

                              Title: Assistant Vice President
                                    -----------------------------------

                                       S-1
                              [TO NINTH AMENDMENT]

<PAGE>   7

                              FIFTH THIRD BANK, CENTRAL OHIO

                              By: /s/ Stephen S. Brooks
                                 -------------------------------------

                              Title: Vice President
                                   -----------------------------------

                              HARRIS TRUST AND SAVINGS BANK

                              By: /s/ Michael J. Johnson
                                 -------------------------------------

                              Title: Vice President
                                   -----------------------------------

                              PNC BANK, NATIONAL ASSOCIATION

                              By: /s/ Bruce G. Shearer
                                 -------------------------------------

                              Title: Vice President
                                   -----------------------------------

                              UNION BANK OF CALIFORNIA, N.A.

                              By: /s/ Christiana Creekpaum
                                 -------------------------------------

                              Title: Vice President
                                   -----------------------------------

                                       S-2
                              [TO NINTH AMENDMENT]

<PAGE>   8

                                   SCHEDULE I

                          2000 TL COMMITMENT ALLOCATION

Bank                                Amount                     Pro Rata Share
----                                ------                     --------------

Bank of America, N.A.               $2,000,000                         100%

<PAGE>   9

                                     ANNEX A
                                     -------

Proposed terms of sale of the stock of Aero-Mod Incorporated ("Aero-Mod") and
Waterlink Operational Services, Inc. ("WOSI"):

         FORM OF TRANSACTION: Sale of 100% of the outstanding capital stock of
         Aero-Mod and WOSI.

         PURCHASE PRICE:      $3.6 million cash at closing

         FINANCIAL DATA:      Projected FY 2000 Revenues - $6.2 million
                              Projected FY 2000 EBITDA - $(25,000)
                              Projected September 30, 2000 book value - $5.2 mil

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