Document:

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                                                                   Exhibit 10.35

                                WARRANT AGREEMENT

         THIS WARRANT AGREEMENT ("Agreement") dated as of January 20, 2000,
between WATERLINK, INC., a Delaware corporation (the "Company"), and CID Equity
Partners V, L.P. (the "Warrantholder").

                                R E C I T A L S:
                                 - - - - - - - -

         This Agreement is entered into in connection with the election of John
T. Hackett, a Managing General Partner of the Warrantholder, as a member of the
Board of Directors ("the Board") of the Company. Pursuant to the 1997
Non-Employee Director Stock Option Plan of Waterlink, Inc., each new director of
the Company is to receive an option to purchase 3,000 shares of the Company's
common stock, $.01 par value per share ("Common Stock") on the first day of his
term of office. Mr. Hackett has waived this option due to certain governance
policies of the Warrantholder, and the Company has agreed, in lieu thereof, to
issue to the Warrantholder an equivalent number of warrants to purchase shares
of Common Stock at a warrant price equal to the last reported sales price of a
share of Common Stock on January 20, 2000 (the date of Mr. Hackett's election).

         NOW, THEREFORE, for good and valuable consideration the receipt of
which is hereby acknowledged and the promises and the mutual agreements set
forth herein, the parties hereto agree as follows:

         1. ISSUANCE OF WARRANTS. The Company hereby agrees to issue to the
Warrantholder as of the date hereof, warrants (the "Warrants") to purchase, in
the aggregate, up to 3,000 shares of Common Stock, subject to the terms and on
the conditions set forth in this Agreement. Each Warrant, once issued, will
initially entitle the holder thereof to purchase one share of Common Stock for
the purchase price set forth in Section 5 below, as adjusted from time to time
pursuant to the provisions of Section 10 below.

         2. FORM OF WARRANTS. The text of the Warrants and of the form of
election to purchase Common Stock underlying the Warrants (the "Warrant Stock")
to be set forth on the reverse thereof shall be substantially as set forth in
the warrant certificate (the "Warrant Certificate"), attached as Exhibit A to
this Agreement. Each Warrant Certificate shall be executed on behalf of the
Company by the President or Vice President of the Company and attested by the
Secretary or an Assistant Secretary of the Company. Warrant Certificates shall
be dated as of the date of the execution thereof by the Company either upon
initial issuance or upon division, exchange, substitution or transfer as may be
permitted hereunder, provided that all such issuances of the Warrants shall be
deemed effective as of the date hereof.

         3. REGISTRATION. The Warrant Certificates shall be numbered and shall
be registered on the books of the Company (the "Warrant Register") as they are
issued. The Company shall be entitled to treat the registered holder of any
Warrant Certificate on the Warrant Register (the "Holder") as the owner in fact
thereof for all purposes and shall not be bound to recognize any equitable or
other claim to or interest in such Warrant Certificate, or the Warrants
represented

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thereby, on the part of any other person, and shall not be liable for any
registration or transfer of Warrant Certificates which are registered or to be
registered in the name of a fiduciary or the nominee of a fiduciary unless made
with the actual knowledge that a fiduciary or nominee is committing a breach of
trust in requesting such registration or transfer, or with knowledge of such
facts that the Company's participation therein amounts to bad faith.

         4. TRANSFER OF WARRANT CERTIFICATE. The Warrant Certificate shall be
transferable only on the Warrant Register upon delivery of the Warrant
Certificate duly endorsed by the Holder or by its duly authorized attorney or
representative (with evidence reasonably satisfactory to the Company of such
authorization), or accompanied by evidence reasonably satisfactory to the
Company of succession, assignment or authority to transfer. Notwithstanding the
foregoing, the Company shall have no obligation to cause Warrant Certificates to
be transferred on the Warrant Register to any person, unless the Holder of such
Warrants shall furnish to the Company evidence satisfactory to the Company of
(i) compliance with the registration provisions of Section 5 of the Securities
Act of 1933, as amended (the "Act"), or (ii) the availability of an exemption
from compliance with the registration provisions of Section 5 of the Act.

         5. TERM AND WARRANT PRICE. Each outstanding Warrant entitles the
registered owner thereof to purchase one (1) share of Warrant Stock prior to the
close of business on January 20, 2010 (the tenth (10th) anniversary of the date
hereof (the "Expiration Date")) at an initial purchase price per share of
Warrant Stock of $3.125 (which is the last reported sales price of a share of
Common Stock on January 20, 2000 as reported on The Nasdaq Market), subject to
adjustment pursuant to the provisions of Section 10 of this Agreement (the
"Warrant Price") and subject to earlier termination as hereinafter provided and
to the following:

                  (a) Except as otherwise provided herein, prior to its
         expiration or termination, the Warrants granted hereunder may be
         exercised within the following time limitations:

                           (i) After one (1) year from the date hereof, it may
                  be exercised as to not more than twenty-five percent (25%) of
                  the Common Stock originally subject to the Warrants.

                           (ii) After two (2) years from the date hereof, it may
                  be exercised as to not more than an aggregate of fifty percent
                  (50%) of the Common Stock originally subject to the Warrants.

                           (iii) After three (3) years from the date hereof, it
                  may be exercised as to not more than an aggregate of
                  seventy-five percent (75%) of the Common Stock originally
                  subject to the Warrants.

                           (iv) After four (4) years from the date hereof, it
                  may be exercised as to any part or all of the Common Stock
                  originally subject to the Warrants.

                  (b) In the event John T. Hackett ceases to be a member of the
         Board (other than by reason of death or disability), then (i) the
         Warrants may be exercised by the Warrantholder

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         (to the extent that the Warrantholder was entitled to do so at the time
         of the termination of John T. Hackett's directorship) at any time
         within three (3) months after John T. Hackett ceases to be a member of
         the Board, but not beyond the Expiration Date and (ii) the portion of
         the Warrants that may not be exercised pursuant to Section 5 (a) above
         as of the date John T. Hackett ceases to be a member of the Board shall
         automatically terminate.

                  (c) If John T. Hackett dies or becomes disabled while he is a
         member of the Board, or within three (3) months after the date he
         ceases to be a member of the Board, then (i) the Warrants may be
         exercised (to the extent the Warrantholder shall have been entitled to
         do so at the time of John T. Hackett's death or disability), at any
         time within one (1) year after his death or termination of directorship
         by reason of disability, but not beyond the Expiration Date and (ii)
         the portion of the Warrants that may not be exercised pursuant to
         Section 5 (a) above as of the date of John T. Hackett's death or the
         termination of directorship by reason of disability shall automatically
         terminate as of such date.

         6. EXERCISE OF WARRANTS.

                  (a) Subject to the provisions of this Agreement, each Holder
         shall have the right to purchase from the Company (and the Company
         shall issue and sell to such Holder) the number of fully paid and
         nonassessable shares of Warrant Stock specified in such Holder's
         Warrant Certificate(s) (as adjusted from time to time in accordance
         with the provisions of Section 10 of this Agreement), upon surrender of
         such Warrant Certificate(s) to the Company or its duly authorized
         agent, and upon payment to the Company of the Warrant Price, as
         adjusted in accordance with the provisions of Section 10 of this
         Agreement, for the number of shares of Warrant Stock in respect of
         which such Warrants are then exercised. The date of exercise (the
         "Exercise Date") of any Warrant shall be deemed to be the date of
         receipt by the Company of the Warrant Certificate duly filled in and
         signed and accompanied by proper payment as hereinafter provided.
         Payment of the Warrant Price shall be made as set forth in the Warrant
         Certificate.

                  (b) Subject to Section 7 of this Agreement, upon such exercise
         of the Warrants, and payment of the Warrant Price as aforesaid, the
         Company shall issue and cause to be delivered with all reasonable
         dispatch (but in any event within twenty (20) business days) to or
         (subject to the provisions of Section 4 of this Agreement) upon the
         written order of the Holder, a certificate for the number of full
         shares of Warrant Stock so purchased upon the exercise of such
         Warrants, together with cash, as provided in Section 10 of this
         Agreement, in respect of any fraction of a share of such stock
         otherwise issuable upon such exercise. Except under circumstances
         described in the following sentence, the shares of Warrant Stock
         purchased pursuant to the immediately preceding sentence shall be
         deemed to be issued to the Holder as the record owner of such shares as
         of the close of business on the Exercise Date. Notwithstanding the
         foregoing, if the Company determines, on or after the date of exercise
         of any Warrant, that issuance of the Warrant Stock represented thereby
         would violate an applicable order, law, rule, or regulation, including
         federal or state securities laws, the Company shall so notify
         immediately the exercising Holder and shall in good faith, and

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         as expeditiously as possible, endeavor to issue the Warrant Stock
         without such violation. The right of purchase represented by the
         Warrants shall be exercisable, at the election of the Holder thereof,
         either in full or from time to time in part and, in the event that any
         Warrant is exercised in respect of less than all of the shares of
         Warrant Stock purchasable on such exercise at any time prior to the
         Expiration Date, a new Warrant Certificate evidencing the remaining
         Warrants shall be issued.

         7. PAYMENT OF TAXES. The Company shall pay all documentary stamp taxes,
if any, attributable to the initial issuance of Warrant Stock upon the exercise
of Warrants PROVIDED, HOWEVER, that the Company shall not be required to pay any
tax or taxes which may be payable in respect of any permitted transfer involved
in the issue or delivery of any Warrant Certificates or Warrant Stock in a name
other than that of the registered Holder of such Warrants.

         8. MUTILATED OR MISSING WARRANTS. Upon (i) receipt by the Company of
evidence reasonably satisfactory to it of the loss, theft, destruction or
mutilation of a Warrant Certificate, (ii) if requested by the Company, the
posting of a bond in an amount equal to the value of the lost, stolen or
destroyed Warrant Certificate, (iii) reimbursement to the Company of all
reasonable expenses incident thereto, and (iv) surrender and cancellation of
such Warrant Certificate, if mutilated, the Company will make and deliver in
lieu of such Warrant Certificate a new Warrant Certificate of like tenor and
representing an equivalent right or interest. The term "outstanding" when used
herein with reference to the Warrant Certificate as of any particular time shall
not include any Warrant Certificate in lieu of which a new Warrant Certificate
has been made and delivered by the Company in accordance with the provisions
hereof.

         9. RESERVATION OF WARRANT STOCK.

                  (a) The Company represents that there has been reserved out of
         the authorized and unissued shares of Common Stock, a number of shares
         sufficient to provide for the exercise of the right of purchase
         represented by the Warrant Certificates as initially issued, and the
         Company, which currently acts as the transfer agent for its Common
         Stock ("Transfer Agent") and every subsequent Transfer Agent for any
         shares of the Company's capital stock issuable upon the exercise of any
         of the Warrants are hereby irrevocably authorized and directed at all
         times until the Expiration Date or earlier termination of this
         Agreement to reserve such number of authorized and unissued shares of
         Common Stock as shall be required for such purpose. The Company will
         keep a copy of this Agreement on file with every subsequent Transfer
         Agent for any shares of the Company's capital stock issuable upon the
         exercise of the Warrants. The Company will supply any such subsequent
         Transfer Agent with duly executed stock certificates for issuance on
         exercise of Warrants and will itself provide or make available any cash
         which may be required by Section 10 of this Agreement. All Warrant
         Certificates surrendered in the exercise of the rights thereby
         evidenced shall be canceled.

                  (b) The Company covenants that it shall endeavor to comply
         with all securities laws regulating the offer and delivery of shares of
         Common Stock upon exercise of the Warrants; and that if any shares of
         Common Stock required to be reserved for purposes of

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         exercising the Warrants hereunder require registration with or approval
         of any governmental authority under any Federal or state law before
         such shares may be validly issued or delivered upon exercise of the
         Warrants, the Company shall, in good faith and as expeditiously as
         possible, endeavor to secure such registration or approval, as the case
         may be. The Company covenants that all shares of Common Stock which
         shall be issued upon exercise of the Warrants shall upon issue and
         payment therefor be validly issued, fully paid and nonassessable.

         10. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION. In the event of changes
in all of the outstanding shares of Common Stock by reason of stock dividends,
stock splits, reclassifications, recapitalizations, mergers, consolidations,
combinations, or exchanges of shares, separations, reorganizations or
liquidations, or similar events, or in the event of extraordinary cash or
non-cash dividends being declared with respect to the Common Stock, or similar
transactions or events, the number and class of Common Stock subject to this
Warrant Agreement, applicable purchase prices and all other applicable
provisions, shall, be equitably adjusted by the Board (which adjustments may,
but need not, include payment to the holder of a Warrant, in cash or in shares,
in an amount equal to the difference between the price at which such Warrant may
be exercised and the then current fair market value of the Common Stock subject
to such Warrant as equitably determined by the Board). The foregoing adjustment
and the manner of application of the foregoing provisions shall be determined by
the Board, in its sole discretion. Any such adjustment may provide for the
elimination of any fractional share which might otherwise become subject to a
Warrant.

         11. CHANGE IN CONTROL. Nothwithstanding anything to the contrary
herein, in the case of a Change in Control of the Company, each Warrant granted
hereunder shall terminate ninety (90) days after the occurrence of such Change
in Control, and the Warrantholder shall have the right, commencing at least five
(5) days prior to such Change in Control and subject to any other limitation on
exercise of a Warrant in effect on the date of exercise, to immediately exercise
any Warrant in full, without regard to any limitations set forth in Section 5
(a) above, to the extent it shall not have been previously exercised. "Change in
Control" of the Company means (i) the acquisition of beneficial ownership (as
defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended
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, 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 (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 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

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of the Company or an agreement for the sale or disposition by the Company of all
or substantially all of the Company's assets.

         12. CERTIFICATES TO BEAR LEGENDS. The Warrant Certificates and
certificates representing shares of Warrant Stock shall be subject to a
stop-transfer order and each such certificate shall bear the following legends
by which each Holder shall be found:

                  THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
                  ACT OF 1933 ("ACT"). THEY MAY NOT BE SOLD, OFFERED FOR SALE,
                  PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
                  REGISTRATION STATEMENT AS TO THE SECURITIES UNDER THE ACT OR
                  AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
                  REGISTRATION IS NOT REQUIRED. THESE SECURITIES HAVE BEEN
                  ISSUED UNDER AND ARE GOVERNED BY AND ARE SUBJECT TO THAT
                  CERTAIN WARRANT AGREEMENT DATED AS OF JANUARY 20, 2000 (THE
                  WARRANT AGREEMENT). A COPY OF THE WARRANT AGREEMENT CAN BE
                  OBTAINED FROM THE SECRETARY OF THE COMPANY.

         13. NO RIGHTS AS STOCKHOLDERS; NOTICES TO HOLDERS; UNISSUED WARRANTS.
Nothing contained in this Agreement or in any of the Warrant Certificates shall
be construed conferring upon the Holders or their transferees the right to vote
or to receive dividends or to consent to or receive notice as stockholders in
respect of any meeting of stockholders for the election of directors of the
Company or on any other matter, or any rights whatsoever as stockholders of the
Company. Warrants as to which the conditions precedent to issuance are not
satisfied shall be void and of no effect, and no Purchaser or other party shall
have any rights with respect thereto.

         14. INVESTMENT INTENT. The Warrants to be purchased pursuant to this
Agreement are being purchased for each Purchaser's own account and with no
intention of distributing or reselling the Warrants. The Holder understands that
neither the Warrants nor the Common Stock have been registered under the Act or
any applicable state securities laws and that neither the Warrants nor the
Common Stock can be sold, transferred or otherwise disposed of without
registration under the Act and applicable state securities laws, unless it has
been established to the satisfaction of the Company that they may be sold,
transferred or otherwise disposed of without such registration.

         15. NOTICES. Any notice pursuant to this Agreement to be given or made
by the Holder of any Warrant Certificate to or on the Company shall be
sufficiently given or made if delivered personally or sent by telecopier or by
certified mail, addressed to the Chief Financial Officer of the Company at the
Company's principal executive offices at 4100 Holiday Street, N.W., Suite 201,
Canton, Ohio 44718 (unless notice has been given of a change of such address),
and shall be effective three (3) days after having been mailed or upon receipt
if delivered personally or sent by telecopier, with receipt confirmed by the
office of the President. Notices or demands authorized by this Agreement to be
given or made to the Holder of any Warrant Certificate shall be sufficiently
given or made if delivered personally or sent by certified mail or by
telecopier, addressed to such

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Holder at the address of such Holder as shown on the Warrant Register, and shall
be effective three (3) days after having been mailed or upon receipt if
delivered personally or sent by telecopier, with receipt confirmed.

         16. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of Ohio.

         17. SUPPLEMENTS, AMENDMENTS AND WAIVERS. Any supplement or amendment
to, or any waiver of any provision of, this Agreement shall be effective when
consented to in writing by the Holders of a majority of the Warrants then
outstanding (determined as though there were one Warrant for each share of
Common Stock issuable on the exercise of the then outstanding Warrants) and by
the Company.

         18. SUCCESSORS. All the covenants and provisions of this Agreement by
or for the benefit of the Company or the Holders shall bind and inure to the
benefit of their respective successors and assigns hereunder.

         19. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original; but
such counterparts together shall constitute but one and the same instrument.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed on the day, month and year first above written.

                                           WATERLINK, INC.

                                           By: /s/ T. Scott King
                                              ----------------------------------
                                           Its: President
                                                --------------------------------

                                           CID EQUITY PARTNERS V, L.P.

                                           By: /s/ John T. Hackett
                                              ----------------------------------
                                           Its: Managing General Partner
                                                --------------------------------

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                                    EXHIBIT A

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
("ACT"). THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER THE
ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION
IS NOT REQUIRED.

THESE SECURITIES HAVE BEEN ISSUED UNDER AND ARE GOVERNED BY AND ARE SUBJECT TO
THAT CERTAIN WARRANT AGREEMENT DATED AS OF JANUARY 20, 2000 (THE "WARRANT
AGREEMENT"). A COPY OF THE WARRANT AGREEMENT CAN BE OBTAINED FROM THE SECRETARY
OF THE COMPANY.

                       WARRANT TO PURCHASE COMMON STOCK OF
                                 WATERLINK, INC.
                              WARRANT NO. H-_______

         This certifies that, for value received, ____________________, or its
permitted assigns, is entitled, subject to the terms set forth below, to
purchase from WATERLINK, INC., a Delaware corporation (the "Company"),
______________ shares (the "Shares") (subject to adjustment as provided in
Section 9 of the Warrant Agreement) of fully paid and nonassessable common
stock, $.01 par value per share, of the Company (the "Common Stock"), at the
purchase price of $3.125 per share (the "Purchase Price"), at any time (subject
to the restrictions set forth in the Warrant Agreement)or from time to time up
until 5:00 P.M. Cleveland, Ohio time on January 20, 2010, subject to earlier
termination as provided in the Warrant Agreement.

         1. EXERCISE PROVISIONS.

                  (a) MANNER OF EXERCISE. This Warrant may be exercised by the
         holder of this Warrant surrendering to the Company at its principal
         office at 4100 Holiday Street, N.W., Suite 201, Canton, Ohio 44718, or
         such other address as to which the Company may hereafter give notice to
         the holder, this Warrant, together with the exercise form attached to
         this Warrant duly executed by the holder together with payment to the
         Company in the amount obtained by multiplying the Purchase Price by the
         number of shares of Common Stock designated in the exercise form.
         Payment may be in cash or by cashier's or certified bank check payable
         to the order of the Company.

                  (b) PARTIAL EXERCISE. On any partial exercise, the Company
         shall promptly issue and deliver to the holder of this Warrant a new
         Warrant or Warrants of like tenor in the name of that holder providing
         for the right to purchase that number of shares of Common Stock as to
         which this Warrant has not been exercised.

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         2. DELIVERY OF STOCK CERTIFICATES. Within a reasonable time after full
or partial exercise of this Warrant, the Company at its expense will cause to be
issued in the name of and delivered to the holder of this Warrant in accordance
with the requirements of the Warrant Agreement, a certificate or certificates
for the number of fully paid and nonassessable shares of Common Stock to which
that holder shall be entitled upon such exercise.

         3. COMPLIANCE WITH SECURITIES ACT; DISPOSITION OF WARRANT OR SHARES OF
COMMON STOCK. The holder of this Warrant, by acceptance hereof, agrees that this
Warrant and the Shares of Common Stock to be issued upon exercise hereof are
being acquired for investment and that the holder will not offer, sell or
otherwise dispose of this Warrant or any Shares of Common Stock to be issued
upon exercise hereof, except under circumstances which will not result in a
violation of the Securities Act of 1933, as amended (the "Act") nor violate the
terms of the Warrant Agreement. In addition, any permitted Warrant transferee
will be required to agree to the provisions of this Section 3. The provisions of
this Section 3 shall not apply to any shares of Common Stock, the issuance or
resale of which is registered under the Act.

         4. MISCELLANEOUS PROVISIONS.

                  (a) RESERVATION OF STOCK. The Company covenants that it will
         at all times reserve and keep available, solely for issuance upon
         exercise of this Warrant, all shares of Common Stock or other
         securities from time to time issuable upon exercise of this Warrant.

                  (b) MODIFICATION. This Warrant and any of its terms may be
         changed, waived, or terminated only by a written instrument signed by
         the party against whom enforcement of that change, waiver or
         termination is sought.

                  (c) REPLACEMENT. On receipt of evidence reasonably
         satisfactory to the Company of the loss, theft, destruction, or
         mutilation of this Warrant and subject to the requirements of the
         Warrant Agreement, the Company will execute and deliver, in lieu of
         this Warrant, a new Warrant of like tenor.

                  (d) WARRANT AGENT. The Company may, on written notice to the
         holder of this Warrant, appoint an agent having an office in Cleveland,
         Ohio, for the purposes of issuing Common Stock upon the exercise of
         this Warrant and of replacing or exchanging this Warrant, and after
         that appointment any such issuance, replacement, or exchange shall be
         made at that office by that agent.

                  (e) NO RIGHTS AS STOCKHOLDER. No holder of this Warrant, as
         such, shall, solely by holding this Warrant, be entitled to vote or
         receive dividends or be considered a stockholder of the Company for any
         purpose, nor shall anything in this Warrant be construed to confer on
         any holder of this Warrant as such, any rights of a stockholder of the
         Company or any right to vote, to give or withhold consent to any
         corporate action, to receive notice of meeting of stockholders, to
         receive dividends or subscription rights or otherwise.

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                  (f) ANTI-DILUTION RIGHTS. The holder hereof shall have certain
         anti-dilution protection as to the Shares of Common Stock to be issued
         upon exercise as specifically set forth in the Warrant Agreement which
         may result in the adjustment from time to time of the Purchase Price
         and/or the number of shares of Common Stock issuable upon the exercise
         hereof.

                  (g) NOTICES. Notices hereunder to the holder of this Warrant
         shall be sent as provided in the Warrant Agreement.

Dated as of January 20, 2000                    WATERLINK, INC.

                                                By:____________________________

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                                FORM OF EXERCISE
                                ----------------

                  (To be signed only upon exercise of Warrant)

To:      WATERLINK, INC.

         The undersigned holder of the attached Warrant hereby irrevocably
elects to exercise the right to purchase _______________ shares of Common Stock
of WATERLINK, INC., and herewith makes payment of $___________________ for those
shares, and requests that the certificate for those shares be issued in the name
of the undersigned and delivered to the address below the signature of the
undersigned. The undersigned hereby affirms the statements and covenants all as
set forth in Section 3 of the Warrant.

Dated:_______________, _____

                                            (Signature must conform in all
                                            respects to name of holder as
                                            specified on the face of the
                                            attached Warrant)

                                            ____________________________________
                                            Signature

                                            ____________________________________
                                            Address

                                            ____________________________________<PAGE>   1
                                                                   Exhibit 10.36

                               FIRST AMENDMENT TO
                         EXECUTIVE EMPLOYMENT AGREEMENT

         THIS FIRST AMENDMENT TO EXECUTIVE EMPLOYMENT AGREEMENT (the
"Agreement") is made and entered into as of this 19th day of May, 2000, by and
between Waterlink, Inc., a Delaware corporation (the "Company"), and Mark Brody
("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 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 4.4:

                  4.5 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) one and one-half (1 1/2), and (b) the sum of one hundred
         twenty-five thousand dollars ($125,000) (such payments being referred
         to as the "Change in Control Payment"). All payments under this Section
         4.5 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 4.5(a), if any of the Change
         in Control 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

<PAGE>   2

         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
         4.5(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 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

                                        2

<PAGE>   3

         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 4.5(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 4.5.

         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

                                        3

<PAGE>   4

         (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 4.5 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 of (A) the
                           sum of (1) the Base Salary in effect as of the Date
                           of Termination and (2) the Bonus Payment, and (B) one
                           and one-half (1 1/2), such amounts to be payable to
                           Executive in thirty-six (36) 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. If the Company fails to make, within five (5)
                           days of the dates specified above, any two (2)
                           payments required to be made

                                        4

<PAGE>   5

                           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 (1) year" and inserting "one and one-half (1 1/2) 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) eighteen
         (18) 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) 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.

                                        5

<PAGE>   6

         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

                                                 /s/Mark Brody
                                                 -------------------------
                                                 Mark Brody

                                        6

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