Document:

<PAGE>   1
                                                                   EXHIBIT 10.25

                                 FIRST AMENDMENT

         THIS FIRST AMENDMENT, dated as of February 16, 2001 (this "Amendment"),
amends the Long Term Credit Agreement, dated as of September 2, 1999 (the
"Credit Agreement"), among the Borrower, various subsidiaries thereof, various
financial institutions and BANK OF AMERICA, N.A., as Administrative Agent. Terms
defined in the Credit Agreement are, unless otherwise defined herein or the
context otherwise requires, used herein as defined therein.

         WHEREAS, the Company, the Lenders and the Administrative Agent have
entered into the Credit Agreement; and

         WHEREAS, the parties hereto desire to reduce the Total Commitment and
amend the Credit Agreement in certain respects as more fully set forth below;

         NOW, THEREFORE, the parties hereto agree as follows:

         SECTION 1 Amendments. Subject to the satisfaction of the conditions
precedent set forth in Section 3, the Credit Agreement shall be amended as set
forth below:

         (1) Addition of Definitions. The following new definitions are added to
Section 1.01 in appropriate alphabetical sequence:

                  Foreign Subsidiary means any Subsidiary (i) organized under
         the laws of a jurisdiction other than the United States or a state
         thereof and (ii) which conducts substantially all of its business and
         operations in a jurisdiction other than the United States.

                  Subsidiary Guarantor means, on any day, each Subsidiary that
         has executed a counterpart of the Subsidiary Guaranty on or prior to
         that day (and has not been released from its obligations thereunder in
         accordance with the terms hereof).

                  Subsidiary Guaranty means a Subsidiary Guaranty issued by
         various Subsidiaries of the Company, substantially in the form of
         Exhibit I.

         (2) Amendment to Section 1.01. Section 1.01 is amended by deleting the
definitions of "EBITDA," "Interest Coverage Ratio" and "Leverage Ratio" in their
entirety and substituting the following therefor, respectively:

                  EBITDA means, for any period, the sum of the consolidated net
         income of the Company for such period excluding the effect of any
         extraordinary or non-recurring gains

<PAGE>   2

         and any extraordinary or non-recurring non-cash losses in such period
         plus, to the extent deducted in determining such consolidated net
         income, Interest Expense, income tax expense, depreciation and
         amortization for such period, provided that the financial results of
         the Company's equipment segment which was classified as a "discontinued
         operation"effective December 31, 2000, shall be excluded in calculating
         EBITDA, except to the extent that the negative contribution to EBITDA
         for such equipment segment for the period beginning January 1, 2001 and
         ending on any date of determination of EBITDA would exceed $25,000,000.

                  Interest Coverage Ratio means, for any period, the ratio of
         (i) EBITDA plus rent expense for such period (excluding, for any
         calculation after the divestiture or liquidation of Lincoln Industrial
         Corporation, Lincoln Automotive Company or Century Mfg. Co. or a
         business unit of any of the foregoing, any portion thereof attributable
         to the entity or assets divested or liquidated) to (ii) Interest
         Expense plus rent expense of the Company and its Subsidiaries for such
         period (excluding, for any calculation after the divestiture or
         liquidation of Lincoln Industrial Corporation, Lincoln Automotive
         Company or Century Mfg. Co. or a business unit of any of the foregoing,
         any portion thereof attributable to the entity or assets divested or
         liquidated).

                  Leverage Ratio means, as of any date, the ratio of (a) the sum
         (without duplication) of (i) all Debt of the Company and its
         Consolidated Subsidiaries plus (ii) all Synthetic Lease Obligations of
         the Company and its Consolidated Subsidiaries, all determined on a
         consolidated basis, to (b) EBITDA for the period of four consecutive
         fiscal quarters most recently ended on or before such date for which
         financial statements have been delivered pursuant to subsection
         13.01(a) or (b); provided that for purposes of calculating EBITDA
         pursuant to this clause (b), the consolidated net income of any Person
         or business unit acquired (or divested or liquidated, if the sales
         revenue generated by such Person or business unit in the 12 months
         prior to such divestiture or liquidation was $25,000,000 or more) by
         the Company or any Subsidiary during such period (plus, to the extent
         deducted in determining such consolidated net income, Interest Expense,
         income tax expense, depreciation and amortization of such Person or
         business unit) shall be included (or, in the case of a divestiture or
         liquidation, excluded) on a pro forma basis for such period (assuming
         the consummation of each such acquisition and the incurrence or
         assumption of any Debt in connection therewith (or the consummation of
         such divestiture or liquidation) occurred on the first day of such
         period) in accordance with Article 11 of Regulation S-X of the
         Securities and Exchange Commission.

         (3) Amendment to Section 13.02. Section 13.02 is amended in its
entirety to read as follows:

                  13.02 Maximum Leverage Ratio. The Company shall not at any
         time permit the Leverage Ratio to exceed the applicable ratio set forth
         below during any period set forth below:

                                       2
<PAGE>   3

<TABLE>
<CAPTION>
                  FISCAL QUARTER ENDING:              LEVERAGE RATIO
<S>                                                   <C>
                  Prior to 6/30/01                      4.25 to 1.0

                  6/30/01                               4.00 to 1.0

                  9/29/01                               3.50 to 1.0

                  12/31/01 and thereafter               3.00 to 1.0.
</TABLE>

         (4) Amendment to Section 13.03. Section 13.03 is amended in its
entirety to read as follows:

                  13.03 Minimum Interest Coverage Ratio. The Company shall not
         at any time permit the Interest Coverage Ratio to be less than the
         applicable ratio set forth below during any period set forth below:

<TABLE>
<CAPTION>
                  COMPUTATION PERIOD ENDING:        INTEREST COVERAGE RATIO
<S>                                                 <C>
                  On or prior to 6/30/01                2.25 to 1.0

                  9/29/01                               2.50 to 1.0

                  12/31/01 and thereafter               3.00 to 1.0.
</TABLE>

         For purposes of the foregoing, a "Computation Period" is any period of
         four consecutive fiscal quarters of the Company ending on the last day
         of a fiscal quarter.

         (5) Amendment to Section 13.06. Section 13.06 is amended by (i)
deleting the word "and" at the end of subsection (b) thereof and (ii) adding the
following as new subsections (d) and (e) thereof:

                  (d) Debt under the Subsidiary Guaranty; and

                  (e) so long as the Subsidiary Guaranty is in effect, Debt
         arising under unsecured guaranties of other Senior Debt of the Company;

         (6) Addition of new Section 13.13. The following new Section 13.13 is
added in proper numerical sequence:

                  13.13. Subsidiary Guaranty. The Company will take, and will
         cause its Subsidiaries to take such actions as are reasonably necessary
         or as the Administrative Agent may reasonably request (including
         delivery of authorization

                                       3
<PAGE>   4

         documents and customary opinions of counsel) so that as of May 1, 2001
         and at all times thereafter all of the Company's obligations hereunder
         are guaranteed by Subsidiaries (other than Foreign Subsidiaries) that,
         in the aggregate together with the Company, own 90% or more of the
         consolidated assets of the Company and its Subsidiaries (excluding
         Foreign Subsidiaries) and earned 90% or more of the consolidated
         revenue of the Company and its Subsidiaries (excluding Foreign
         Subsidiaries) during the most recent period of four consecutive fiscal
         quarters (excluding the revenues of any Subsidiary or business unit
         which has been divested or liquidated on or prior to any date of
         determination), in each case pursuant to the Subsidiary Guaranty.

         (7) Amendment to Section 14.01. Section 14.01 is amended by (i)
deleting the word "or" at the end of subsection (j) thereof, (ii) inserting the
word "or" after subsection (k) thereof, and (iii) adding the following as a new
subsection (l) thereof:

                  (l) the Subsidiary Guaranty shall cease to be in full force
         and effect with respect to any Subsidiary Guarantor (other than as a
         result of such Subsidiary Guarantor ceasing to be a Subsidiary pursuant
         to a transaction permitted hereunder), any Subsidiary Guarantor shall
         fail (subject to any applicable grace period) to comply with or to
         perform any applicable provision of the Subsidiary Guaranty, or any
         Subsidiary Guarantor (or any Person by, through or on behalf of such
         Subsidiary Guarantor) shall contest in any manner the validity, binding
         nature or enforceability of the Subsidiary Guaranty with respect to
         such Subsidiary Guarantor.

         (8) Addition of New Section 15.13. The following new Section 15.13 is
added in proper numerical sequence:

                  15.13 Subsidiary Guaranty. (a) Subject to the proviso
         contained in clause (b) below, the Administrative Agent shall, and the
         Lenders irrevocably authorize the Administrative Agent to, release any
         Person which is a Subsidiary Guarantor from its obligations under the
         Subsidiary Guaranty, if such Person ceases to be a Subsidiary Guarantor
         pursuant to a transaction that does not result in a default of any
         provision hereof (including Section 13.13). Upon request by the
         Administrative Agent at any time, the Required Lenders will confirm in
         writing the Administrative Agent's authority to release any Subsidiary
         from its obligations under the Subsidiary Guaranty pursuant to this
         Section 15.13.

                  (b) The Administrative Agent agrees to promptly execute and
         deliver to the Company all documents reasonably required to evidence
         any release permitted under this Agreement; provided that such release
         also is permitted under the 364-Day Credit Agreement and the Company
         certifies that such release also is permitted under any other agreement
         governing indebtedness for borrowed

                                       4
<PAGE>   5

         money of the Company which is entitled to the benefits of the
         Subsidiary Guaranty.

         (9) Amendment to Section 16.04. Section 16.04 is amended by (i)
deleting the word "or" at the end of clause (e) thereof, (ii) re-designating
clause "(f)" as clause "(g)" and (iii) inserting the following new clause (f):

                  (f) release any Subsidiary Guarantor from its obligations
         under the Subsidiary Guaranty (other than with respect to a Person
         which ceases to be a Subsidiary Guarantor pursuant to a transaction
         that does not result in a default of any provision hereof (including
         Section 13.13)); or

         (10) Amendment of Pricing Schedule. Schedule 1.01 (Pricing Schedule) is
amended in its entirety by substituting the Schedule 1.01 attached hereto
therefor (and such Pricing Schedule shall become effective immediately upon the
effectiveness of this Amendment).

         (11) Amendment of Commitment Schedule. Schedule 2.01 (Commitments and
Pro Rata Shares) is hereby amended in its entirety by substituting the Schedule
2.01 attached hereto therefor (and such Schedule 2.01 shall become effective
immediately upon the effectiveness of this Amendment).

         (12) Addition of New Exhibit I. Exhibit I attached hereto is added in
the proper alphabetical sequence.

         SECTION 2 Representations and Warranties. The Company represents and
warrants to the Lenders that (a) each of the representations and warranties of
the Company set forth in the Credit Agreement is true and correct as of the date
of the execution and delivery of this Amendment by the Company, with the same
effect as if made on such date, (b) the execution and delivery by the Company of
this Amendment and the performance by the Company of its obligations under the
Credit Agreement, as amended hereby (as so amended, the "Amended Credit
Agreement"), (i) are within the powers of the Company, (ii) have been duly
authorized by all necessary action on the part of the Company, (iii) have
received all necessary governmental approval and (iv) do not and will not
contravene or conflict with (A) any provision of law or the certificate of
incorporation or by-laws or other organizational documents of the Company or (B)
any agreement, judgment, injunction, order, decree or other instrument binding
upon the Company or any of its Subsidiaries and (c) the Amended Credit Agreement
is a legal, valid and binding obligation of the Company enforceable against the
Company in accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency or other similar laws of general application affecting
the enforcement of creditors' rights or by general principles of equity limiting
the availability of equitable remedies.

         SECTION 3 Effectiveness. This Amendment shall become effective on the
date on which the Administrative Agent has received each of the following:

                                       5
<PAGE>   6

         (1) counterparts (or facsimiles thereof) of signature pages to this
Amendment executed by the Company, the Required Lenders and the Administrative
Agent;

         (2) payment by the Company to the Administrative Agent of the fees
required by Section 4 hereof;

         (3) a certificate of the secretary or an assistant secretary of the
Company as to:

                  (i)      resolutions of the board of directors of the Company
                           authorizing the execution and delivery of this
                           Amendment and the performance by the Company of its
                           obligations under the Amended Credit Agreement; and

                  (ii)     the incumbency and signatures of those of its
                           officers authorized to execute and deliver this
                           Amendment; and

         (4) such other documents as the Administrative Agent or any Lender may
reasonably request.

         SECTION 4 Consent Fee. The Company shall pay on or before the effective
date hereof and in immediately available funds to the Administrative Agent, for
the account of each Committed Lender which has delivered to the Administrative
Agent (by facsimile or otherwise) (x) on or before 5:00 p.m. (Chicago time) on
February 14, 2001, an executed letter consenting hereto and (y) on or before
5:00 p.m. (Chicago time) on February 16, 2001, an executed counterpart of the
applicable signature page hereof, a consent fee equal to 0.125% of the amount of
such Committed Lender's Commitment under the Credit Agreement.

         SECTION 5 Miscellaneous.

         (1) Continuing Effectiveness, etc. As herein amended, the Credit
Agreement shall remain in full force and effect and is hereby ratified and
confirmed in all respects. After the effective date hereof, all references in
the Credit Agreement and the Notes to "Credit Agreement", "Agreement" or similar
terms shall refer to the Amended Credit Agreement.

         (2) Limited Waiver. The Required Lenders hereby waive any failure by
the Borrower to comply with Section 13.02 or Section 13.03 of the Credit
Agreement for the applicable calculation period ending on December 31, 2000. The
aforementioned waiver is limited to the matters specifically identified therein
and shall not be deemed to constitute a waiver or consent with respect to any
other matter whatsoever.

         (3) Counterparts. This Amendment may be executed in any number of
counterparts and by the different parties on separate counterparts, and each
such counterpart shall be deemed to be an original but all such counterparts
shall together constitute one and the same Amendment.

                                       6
<PAGE>   7

         (4) Expenses. The Company agrees to pay the reasonable costs and
expenses of the Administrative Agent (including attorney's fees and expenses) in
connection with the preparation, execution and delivery of this Amendment.

         (5) Governing Law. This Amendment shall be a contract made under and
governed by the internal laws of the State of Illinois applicable to contracts
made and to be performed entirely within such State.

         (6) Successors and Assigns. This Amendment shall be binding upon the
Company, the Lenders and the Administrative Agent and their respective
successors and assigns, and shall inure to the benefit of the Company, the
Lenders and the Administrative Agent and the respective successors and assigns
of the Lenders and the Administrative Agent.

         (7) Administrative Agent. The Required Lenders acknowledge that the
Administrative Agent will act as administrative agent for the Lenders for
purposes of the Subsidiary Guaranty. The Required Lenders authorize the
Administrative Agent to act in such capacity and to enter into a Subsidiary
Guaranty on behalf of the Lenders and to execute and deliver such documents as
may reasonably be required or appropriate in connection therewith.

                    [Signatures begin on the following page.]

                                       7
<PAGE>   8

         Delivered at Chicago, Illinois as of the day and year first above
written.

                                            PENTAIR, INC.

                                            By
                                            Title

                                            BANK OF AMERICA, N.A.,
                                            individually and as Administrative
                                            Agent

                                            By
                                            Title

                                            BANK ONE, NA (Main Office Chicago)
                                            (formerly known as The First
                                            National Bank of Chicago)

                                            By
                                            Title

                                            U.S. BANK NATIONAL ASSOCIATION

                                            By
                                            Title

                                            MORGAN GUARANTY TRUST COMPANY OF
                                            NEW YORK

                                            By
                                            Title

                                            FIRST UNION NATIONAL BANK

                                            By
                                            Title

                                                              First Amendment to
                                                      Long Term Credit Agreement

                                      S-1
<PAGE>   9

                                            THE INDUSTRIAL BANK OF JAPAN,
                                            LIMITED

                                            By
                                            Title

                                            By
                                            Title

                                            THE BANK OF TOKYO - MITSUBISHI,
                                            LTD., CHICAGO BRANCH

                                            By
                                            Title

                                            By
                                            Title

                                            BANK HAPOALIM B.M.

                                            By
                                            Title

                                            By
                                            Title

                                            CREDIT AGRICOLE INDOSUEZ

                                            By
                                            Title

                                            By
                                            Title

                                                              First Amendment to
                                                      Long Term Credit Agreement

                                      S-2
<PAGE>   10

                                            CREDIT LYONNAIS CHICAGO BRANCH

                                            By
                                            Title

                                            By
                                            Title

                                            SUNTRUST BANK (formerly known as
                                            SunTrust Bank, Central Florida,
                                            N.A.)

                                            By
                                            Title

                                            WELLS FARGO BANK, NATIONAL
                                            ASSOCIATION

                                            By
                                            Title

                                            By
                                            Title

                                            BANCA DI ROMA - CHICAGO BRANCH

                                            By
                                            Title

                                            By
                                            Title

                                                              First Amendment to
                                                      Long Term Credit Agreement

                                      S-3
<PAGE>   11

                                            BANCA NAZIONALE DEL LAVORO S.p.A.
                                            NEW YORK BRANCH

                                            By
                                            Title

                                            By
                                            Title

                                            BANKBOSTON, N.A.

                                            By
                                            Title

                                            BANK OF MONTREAL

                                            By
                                            Title

                                            THE BANK OF NEW YORK

                                            By
                                            Title

                                            BNP PARIBAS (formerly known as
                                            Banque Nationale De Paris)

                                            By
                                            Title

                                            By
                                            Title

                                                              First Amendment to
                                                      Long Term Credit Agreement

                                      S-4
<PAGE>   12

                                            FIRSTAR BANK, N.A. (formerly known
                                            as Firstar Bank of Minnesota, N.A.)

                                            By
                                            Title

                                            FLEET NATIONAL BANK

                                            By
                                            Title

                                            MELLON BANK, N.A.

                                            By
                                            Title

                                            SANWA BANK LIMITED

                                            By
                                            Title

                                            By
                                            Title

                                                              First Amendment to
                                                      Long Term Credit Agreement

                                      S-5

<PAGE>   13

                                            COMMERZBANK AKTIENGESELLSCHAFT,
                                            NEW YORK AND GRAND CAYMAN BRANCHES

                                            By
                                            Title

                                            By
                                            Title

                                            MICHIGAN NATIONAL BANK

                                            By
                                            Title

                                            NATIONAL CITY BANK

                                            By
                                            Title

                                            BANCO ESPIRITO SANTO, S.A. NEW YORK
                                            BRANCH

                                            By
                                            Title

                                            By
                                            Title

                                                              First Amendment to
                                                      Long Term Credit Agreement

                                      S-6

<PAGE>   14

                                  SCHEDULE 1.01

                                PRICING SCHEDULE

        The Applicable Margin, the Facility Fee Rate, the LC Fee Rate, the Usage
Fee Rate and the Fronting Margin shall be determined as follows:

        1. The Applicable Margin, the Facility Fee Rate, the LC Fee Rate, the
Usage Fee Rate and the Fronting Margin shall each be as set forth in the table
below and shall be calculated based on (a) the credit ratings assigned by
Moody's and S&P to the Company's debt obligations under this Agreement and the
364-Day Credit Agreement (each a "Bank Debt Rating"), if Moody's and S&P have
issued such ratings, or (b) if either Moody's or S&P has not issued a Bank Debt
Rating, the general corporate rating assigned by Moody's and S&P to the Company
(each a "Corporate Rating"), or (c) if either Moody's or S&P has issued neither
a Bank Debt Rating nor a Corporate Rating, the credit ratings assigned by
Moody's and S&P to the Company's long term senior unsecured non-credit-enhanced
public Debt (each a "Senior Debt Rating").

       2. Prior to March 30, 2001, the Applicable Margin, the Facility Fee Rate,
the LC Fee Rate, the Usage Fee Rate and the Fronting Margin (collectively, the
"Pricing") shall be Level IV (notwithstanding that calculations made in
accordance with the other provisions of this Schedule 1.01 would specify a lower
level).

       3. If one Bank Debt Rating, Corporate Rating or Senior Debt Rating is
higher than the other (i.e., the Moody's rating is higher than the S&P rating,
or vice versa), the lower of such ratings shall determine the Pricing. If at any
time either Moody's or S&P does not have in effect a Bank Debt Rating, a
Corporate Rating or a Senior Debt Rating (including any time when neither
Moody's nor S&P has in effect any such rating), the Pricing shall be Level VI.

       4. The Pricing shall be adjusted two Business Days after any applicable
change in the Bank Debt Rating, Corporate Rating or Senior Debt Rating by either
Moody's or S&P.

<PAGE>   15

<TABLE>
<CAPTION>
                 LEVEL I     LEVEL II     LEVEL III   LEVEL IV   LEVEL V   LEVEL VI
-----------------------------------------------------------------------------------
<S>              <C>         <C>          <C>         <C>        <C>      <C>
BANK DEBT        A-/A3 OR                                                  BB/Ba2
RATINGS,         HIGHER      BBB+/Baa1    BBB/Baa2    BBB-/Baa3  BB+/Ba1   OR LOWER
CORPORATE
RATINGS OR
SENIOR DEBT
RATINGS
-----------------------------------------------------------------------------------
APPLICABLE
MARGIN (bps)       60.0        70.0          80.0      102.5      125.0      145.0
-----------------------------------------------------------------------------------
FACILITY FEE
(bps)              15.0        17.5          20.0       22.5       25.0       30.0
-----------------------------------------------------------------------------------
LC FEE RATE
(bps)              60.0        70.0          80.0      102.5      125.0      145.0
-----------------------------------------------------------------------------------
USAGE FEE
RATE (bps)         60.0        70.0          80.0      102.5      125.0      145.0
-----------------------------------------------------------------------------------
FRONTING
MARGIN (bps)       10.0        10.0          11.0      13.25       20.0       24.0
----------------------------------------------------------------------------------
</TABLE>

<PAGE>   16

                                  SCHEDULE 2.01

                                   COMMITMENTS
                               AND PRO RATA SHARES

<TABLE>
<CAPTION>
                                                              Pro Rata
         Lender                              Commitment         Share
         ------                              ----------       ---------
<S>                                         <C>              <C>
Bank of America, N.A.                       $ 32,800,000     8.74666667%
Bank One, N.A.                              $ 32,800,000     8.74666667%
Morgan Guaranty Trust
         Company of New York                $ 32,800,000     8.74666667%
U.S. Bank National Association              $ 32,800,000     8.74666667%
First Union National Bank                   $ 18,800,000     5.01333333%
The Industrial Bank of Japan, Limited       $ 18,800,000     5.01333333%
The Bank of Tokyo - Mitsubishi, Ltd.,
         Chicago Branch                     $ 18,800,000     5.01333333%
Fleet National Bank                         $ 18,800,000     5.01333333%
Bank Hapoalim B.M.                          $ 15,700,000     4.18666667%
Credit Agricole Indosuez                    $ 15,700,000     4.18666667%
Credit Lyonnais Chicago Branch              $ 11,000,000     2.93333333%
SunTrust Bank                               $ 11,000,000     2.93333333%
Wells Fargo Bank, National Association      $ 11,000,000     2.93333333%
Banca di Roma - Chicago Branch              $  9,400,000     2.50666667%
Banca Nazionale del Lavoro S.p.A.
         New York Branch                    $  9,400,000     2.50666667%
Bank of Montreal                            $  9,400,000     2.50666667%
The Bank of New York                        $  9,400,000     2.50666667%
BNP Paribas                                 $  9,400,000     2.50666667%
Firstar Bank, N.A.                          $  9,400,000     2.50666667%
Mellon Bank, N.A.                           $  9,400,000     2.50666667%
Sanwa Bank Limited                          $  9,400,000     2.50666667%
Commerzbank Aktiengesellschaft,
         New York and Grand Cayman
         Branches                           $  8,100,000     2.16000000%
Michigan National Bank                      $  8,100,000     2.16000000%
National City Bank                          $  8,100,000     2.16000000%
Banco Espirito Santo,
         S.A. New York Branch               $  4,700,000     1.25333333%

TOTAL                                       $375,000,000            100%
</TABLE>

                                                              First Amendment to
                                                      Long Term Credit Agreement

<PAGE>   17

                                    EXHIBIT I

                                                              First Amendment to
                                                      Long Term Credit Agreement<PAGE>   1
                                                                   EXHIBIT 10.27

                                SECOND AMENDMENT

         THIS SECOND AMENDMENT, dated as of February 16, 2001 (this
"Amendment"), amends the 364-Day Credit Agreement dated as of September 2, 1999
(as previously amended, the "Credit Agreement"), among PENTAIR, INC., various
financial institutions, and BANK OF AMERICA, N.A., as Administrative Agent.
Terms defined in the Credit Agreement are, unless otherwise defined herein or
the context otherwise requires, used herein as defined therein.

         WHEREAS, the Company, the Lenders and the Administrative Agent have
entered into the Credit Agreement; and

         WHEREAS, the parties hereto desire to reduce the Total Commitment and
amend the Credit Agreement in certain respects as more fully set forth below;

         NOW, THEREFORE, the parties hereto agree as follows:

         SECTION 1 Amendments. Subject to the satisfaction of the conditions
precedent set forth in Section 3, the Credit Agreement shall be amended as set
forth below:

         (1) Addition of Definitions. The following new definitions are added to
Section 1.01 in appropriate alphabetical sequence:

                  Foreign Subsidiary means any Subsidiary (i) organized under
         the laws of a jurisdiction other than the United States or a state
         thereof and (ii) which conducts substantially all of its business and
         operations in a jurisdiction other than the United States.

                  Subsidiary Guarantor means, on any day, each Subsidiary that
         has executed a counterpart of the Subsidiary Guaranty on or prior to
         that day (and has not been released from its obligations thereunder in
         accordance with the terms hereof).

                  Subsidiary Guaranty means a Subsidiary Guaranty issued by
         various Subsidiaries of the Company, substantially in the form of
         Exhibit I.

         (2) Amendment to Section 1.01. Section 1.01 is amended by deleting the
definitions of "EBITDA," "Interest Coverage Ratio" and "Leverage Ratio" in their
entirety and substituting the following therefor, respectively:

                  EBITDA means, for any period, the sum of the consolidated net
         income of the Company for such period excluding the effect of any
         extraordinary or non-recurring gains and any extraordinary or
         non-recurring non-cash losses in such period plus, to the extent

<PAGE>   2

         deducted in determining such consolidated net income, Interest Expense,
         income tax expense, depreciation and amortization for such period,
         provided that the financial results of the Company's equipment segment
         which was classified as a "discontinued operation"effective December
         31, 2000, shall be excluded in calculating EBITDA, except to the extent
         that the negative contribution to EBITDA for such equipment segment for
         the period beginning January 1, 2001 and ending on any date of
         determination of EBITDA would exceed $25,000,000.

                  Interest Coverage Ratio means, for any period, the ratio of
         (i) EBITDA plus rent expense for such period (excluding, for any
         calculation after the divestiture or liquidation of Lincoln Industrial
         Corporation, Lincoln Automotive Company or Century Mfg. Co. or a
         business unit of any of the foregoing, any portion thereof attributable
         to the entity or assets divested or liquidated) to (ii) Interest
         Expense plus rent expense of the Company and its Subsidiaries for such
         period (excluding, for any calculation after the divestiture or
         liquidation of Lincoln Industrial Corporation, Lincoln Automotive
         Company or Century Mfg. Co. or a business unit of any of the foregoing,
         any portion thereof attributable to the entity or assets divested or
         liquidated).

                  Leverage Ratio means, as of any date, the ratio of (a) the sum
         (without duplication) of (i) all Debt of the Company and its
         Consolidated Subsidiaries plus (ii) all Synthetic Lease Obligations of
         the Company and its Consolidated Subsidiaries, all determined on a
         consolidated basis, to (b) EBITDA for the period of four consecutive
         fiscal quarters most recently ended on or before such date for which
         financial statements have been delivered pursuant to subsection 8.01(a)
         or (b); provided that for purposes of calculating EBITDA pursuant to
         this clause (b), the consolidated net income of any Person or business
         unit acquired (or divested or liquidated, if the sales revenue
         generated by such Person or business unit in the 12 months prior to
         such divestiture or liquidation was $25,000,000 or more) by the Company
         or any Subsidiary during such period (plus, to the extent deducted in
         determining such consolidated net income, Interest Expense, income tax
         expense, depreciation and amortization of such Person or business unit)
         shall be included (or, in the case of a divestiture or liquidation,
         excluded) on a pro forma basis for such period (assuming the
         consummation of each such acquisition and the incurrence or assumption
         of any Debt in connection therewith (or the consummation of such
         divestiture or liquidation) occurred on the first day of such period)
         in accordance with Article 11 of Regulation S-X of the Securities and
         Exchange Commission.

         (3) Amendment to Section 8.02. Section 8.02 is amended in its entirety
to read as follows:

                  8.02 Maximum Leverage Ratio. The Company shall not at any time
         permit the Leverage Ratio to exceed the applicable ratio set forth
         below during any period set forth below:

                                       2
<PAGE>   3

<TABLE>
<CAPTION>
                  FISCAL QUARTER ENDING:              LEVERAGE RATIO
<S>                                                   <C>

                  Prior to 6/30/01                      4.25 to 1.0

                  6/30/01                               4.00 to 1.0

                  9/29/01                               3.50 to 1.0

                  12/31/01 and thereafter               3.00 to 1.0.
</TABLE>

         (4) Amendment to Section 8.03. Section 8.03 is amended in its entirety
to read as follows:

                  8.03 Minimum Interest Coverage Ratio. The Company shall not at
         any time permit the Interest Coverage Ratio to be less than the
         applicable ratio set forth below during any period set forth below:

<TABLE>
<CAPTION>
                  COMPUTATION PERIOD ENDING:        INTEREST COVERAGE RATIO
<S>                                                 <C>
                  On or prior to 6/30/01                 2.25 to 1.0

                  9/29/01                                2.50 to 1.0

                  12/31/01 and thereafter                3.00 to 1.0.
</TABLE>

         For purposes of the foregoing, a "Computation Period" is any period of
         four consecutive fiscal quarters of the Company ending on the last day
         of a fiscal quarter.

         (5) Amendment to Section 8.06. Section 8.06 is amended by (i) deleting
the word "and" at the end of subsection (b) thereof, and (ii) adding the
following as new subsections (d) and (e) thereof:

                  (d)      Debt under the Subsidiary Guaranty; and

                  (e)      so long as the Subsidiary Guaranty is in effect, Debt
                           arising under unsecured guaranties of other Senior
                           Debt of the Company;

         (6) Addition of new Section 8.11. The following new Section 8.11 is
added in proper numerical sequence:

                  8.11. Subsidiary Guaranty. The Company will take, and will
         cause its Subsidiaries to take such actions as are reasonably necessary
         or as the Administrative Agent may reasonably request (including
         delivery of authorization documents and customary opinions of counsel)
         so that as of May 1, 2001 and at all times thereafter all of the
         Company's obligations hereunder are guaranteed by

                                       3
<PAGE>   4

         Subsidiaries (other than Foreign Subsidiaries) that, in the aggregate
         together with the Company, own 90% or more of the consolidated assets
         of the Company and its Subsidiaries (excluding Foreign Subsidiaries)
         and earned 90% or more of the consolidated revenue of the Company and
         its Subsidiaries (excluding Foreign Subsidiaries) during the most
         recent period of four consecutive fiscal quarters (excluding the
         revenues of any Subsidiary or business unit which has been divested or
         liquidated on or prior to any date of determination), in each case
         pursuant to the Subsidiary Guaranty.

         (7) Amendment to Section 9.01. Section 9.01 is amended by (i) deleting
the word "or" at the end of subsection (j) thereof, (ii) inserting the word "or"
after subsection (k) thereof, and (iii) adding the following as a new subsection
(l) thereof:

                  (l) the Subsidiary Guaranty shall cease to be in full force
         and effect with respect to any Subsidiary Guarantor (other than as a
         result of such Subsidiary Guarantor ceasing to be a Subsidiary pursuant
         to a transaction permitted hereunder), any Subsidiary Guarantor shall
         fail (subject to any applicable grace period) to comply with or to
         perform any applicable provision of the Subsidiary Guaranty, or any
         Subsidiary Guarantor (or any Person by, through or on behalf of such
         Subsidiary Guarantor) shall contest in any manner the validity, binding
         nature or enforceability of the Subsidiary Guaranty with respect to
         such Subsidiary Guarantor.

         (8) Addition of New Section 10.13. The following new Section 10.13 is
added in proper numerical sequence:

                  10.13 Subsidiary Guaranty. (a) Subject to the proviso
         contained in clause (b) below, the Administrative Agent shall, and the
         Lenders irrevocably authorize the Administrative Agent to, release any
         Person which is a Subsidiary Guarantor from its obligations under the
         Subsidiary Guaranty, if such Person ceases to be a Subsidiary Guarantor
         pursuant to a transaction that does not result in a default of any
         provision hereof (including Section 8.11). Upon request by the
         Administrative Agent at any time, the Required Lenders will confirm in
         writing the Administrative Agent's authority to release any Subsidiary
         from its obligations under the Subsidiary Guaranty pursuant to this
         Section 10.13.

                  (b) The Administrative Agent agrees to promptly execute and
         deliver to the Company all documents reasonably required to evidence
         any release permitted under this Agreement; provided that such release
         also is permitted under the Long Term Credit Agreement and the Company
         certifies that such release also is permitted under any other agreement
         governing indebtedness for borrowed money of the Company which is
         entitled to the benefits of the Subsidiary Guaranty.

                                       4
<PAGE>   5

         (9) Amendment to Section 11.04. Section 11.04 is amended by (i)
deleting the word "or" at the end of clause (d) thereof, (ii) re-designating
clause "(e)" as clause "(f)" and (iii) inserting the following new clause (e):

         (e)      release any Subsidiary Guarantor from its obligations under
                  the Subsidiary Guaranty (other than with respect to a Person
                  which ceases to be a Subsidiary Guarantor pursuant to a
                  transaction that does not result in a default of any provision
                  hereof (including Section 8.11)); or

         (10) Amendment of Pricing Schedule. Schedule 1.01 (Pricing Schedule) is
amended in its entirety by substituting the Schedule 1.01 attached hereto
therefor (and such Pricing Schedule shall become effective immediately upon the
effectiveness of this Amendment).

         (11) Amendment of Commitment Schedule. Schedule 2.01 (Commitments and
Pro Rata Shares) is hereby amended in its entirety by substituting the Schedule
2.01 attached hereto therefor (and such Schedule 2.01 shall become effective
immediately upon the effectiveness of this Amendment).

         (12) Addition of New Exhibit I. Exhibit I attached hereto is added in
the proper alphabetical sequence.

         SECTION 2 Representations and Warranties. The Company represents and
warrants to the Lenders that (a) each of the representations and warranties of
the Company set forth in the Credit Agreement is true and correct as of the date
of the execution and delivery of this Amendment by the Company, with the same
effect as if made on such date, (b) the execution and delivery by the Company of
this Amendment and the performance by the Company of its obligations under the
Credit Agreement, as amended hereby (as so amended, the "Amended Credit
Agreement"), (i) are within the powers of the Company, (ii) have been duly
authorized by all necessary action on the part of the Company, (iii) have
received all necessary governmental approval and (iv) do not and will not
contravene or conflict with (A) any provision of law or the certificate of
incorporation or by-laws or other organizational documents of the Company or (B)
any agreement, judgment, injunction, order, decree or other instrument binding
upon the Company or any of its Subsidiaries and (c) the Amended Credit Agreement
is a legal, valid and binding obligation of the Company enforceable against the
Company in accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency or other similar laws of general application affecting
the enforcement of creditors' rights or by general principles of equity limiting
the availability of equitable remedies.

         SECTION 3 Effectiveness. This Amendment shall become effective on the
date on which the Administrative Agent has received each of the following:

         (1) counterparts (or facsimiles thereof) of signature pages to this
Amendment executed by the Company, the Required Lenders and the Administrative
Agent;

                                       5
<PAGE>   6

         (2) payment by the Company to the Administrative Agent of the fees
required by Section 4 hereof;

         (3) a certificate of the secretary or an assistant secretary of the
Company as to:

                  (i)      resolutions of the board of directors of the Company
                           authorizing the execution and delivery of this
                           Amendment and the performance by the Company of its
                           obligations under the Amended Credit Agreement; and

                  (ii)     the incumbency and signatures of those of its
                           officers authorized to execute and deliver this
                           Amendment; and

         (4) such other documents as the Administrative Agent or any Lender may
reasonably request.

         SECTION 4 Consent Fee. The Company shall pay on or before the effective
date hereof and in immediately available funds to the Administrative Agent, for
the account of each Lender which has delivered to the Administrative Agent (by
facsimile or otherwise) (x) on or before 5:00 p.m. (Chicago time) on February
14, 2001, an executed letter consenting hereto and (y) on or before 5:00 p.m.
(Chicago time) on February 16, 2001, an executed counterpart of the applicable
signature page hereof, a consent fee equal to 0.125% of the amount of such
Lender's Commitment under the Credit Agreement.

         SECTION 5 Miscellaneous.

         (1) Continuing Effectiveness, etc. As herein amended, the Credit
Agreement shall remain in full force and effect and is hereby ratified and
confirmed in all respects. After the effective date hereof, all references in
the Credit Agreement and the Notes to "Credit Agreement", "Agreement" or similar
terms shall refer to the Amended Credit Agreement.

         (2) Limited Waiver. The Required Lenders hereby waive any failure by
the Company to comply with Section 8.02 or Section 8.03 of the Credit Agreement
for the applicable calculation period ending on December 31, 2000. The
aforementioned waiver is limited to the matters specifically identified therein
and shall not be deemed to constitute a waiver or consent with respect to any
other matter whatsoever.

         (3) Counterparts. This Amendment may be executed in any number of
counterparts and by the different parties on separate counterparts, and each
such counterpart shall be deemed to be an original but all such counterparts
shall together constitute one and the same Amendment.

         (4) Expenses. The Company agrees to pay the reasonable costs and
expenses of the Administrative Agent (including attorney's fees and expenses) in
connection with the preparation, execution and delivery of this Amendment.

                                       6
<PAGE>   7

         (5) Governing Law. This Amendment shall be a contract made under and
governed by the internal laws of the State of Illinois applicable to contracts
made and to be performed entirely within such State.

         (6) Successors and Assigns. This Amendment shall be binding upon the
Company, the Lenders and the Administrative Agent and their respective
successors and assigns, and shall inure to the benefit of the Company, the
Lenders and the Administrative Agent and the respective successors and assigns
of the Lenders and the Administrative Agent.

         (7) Administrative Agent. The Required Lenders acknowledge that the
Administrative Agent will act as administrative agent for the Lenders for
purposes of the Subsidiary Guaranty. The Required Lenders authorize the
Administrative Agent to act in such capacity and to enter into a Subsidiary
Guaranty on behalf of the Lenders and to execute and deliver such documents as
may reasonably be required or appropriate in connection therewith.

                    [Signatures begin on the following page.]

                                       7
<PAGE>   8

         Delivered at Chicago, Illinois as of the day and year first above
written.

                                            PENTAIR, INC.

                                            By:
                                            Title:

                                            BANK OF AMERICA, N.A.,
                                             individually and as Administrative
                                             Agent

                                            By:
                                            Title:

                                            BANK ONE, NA (Main Office Chicago)
                                            (formerly known as The First
                                            National Bank of Chicago)

                                            By:
                                            Title:

                                            U.S. BANK NATIONAL ASSOCIATION

                                            By:
                                            Title:

                                            MORGAN GUARANTY TRUST COMPANY
                                             OF NEW YORK

                                            By:
                                            Title:

                                                             Second Amendment to
                                                        364-Day Credit Agreement

                                      S-1
<PAGE>   9

                                            THE BANK OF TOKYO-MITSUBISHI, LTD.,
                                            CHICAGO BRANCH

                                            By:
                                            Title:

                                            By:
                                            Title:

                                            BANCA NAZIONALE DEL LAVORO S.p.A.
                                             NEW YORK BRANCH

                                            By:
                                            Title:

                                            By:
                                            Title:

                                            BANCA ANTONVENETA NEW YORK BRANCH

                                            By:
                                            Title:

                                            By:
                                            Title:

                                            BANK HAPOALIM B.M.

                                            By:
                                            Title:

                                            By:
                                            Title:

                                                             Second Amendment to
                                                        364-Day Credit Agreement

                                      S-2
<PAGE>   10

                                            FIRST UNION NATIONAL BANK

                                            By:
                                            Title:

                                            THE INDUSTRIAL BANK OF JAPAN,
                                            LIMITED

                                            By:
                                            Title:

                                            FLEET NATIONAL BANK

                                            By:
                                            Title:

                                            CREDIT LYONNAIS CHICAGO BRANCH

                                            By:
                                            Title:

                                            By:
                                            Title:

                                            SUNTRUST BANK (formerly known as
                                            SunTrust Bank, Central Florida,
                                            N.A.)

                                            By:
                                            Title:

                                                             Second Amendment to
                                                        364-Day Credit Agreement

                                      S-3
<PAGE>   11

                                            WELLS FARGO BANK, NATIONAL
                                            ASSOCIATION

                                            By:
                                            Title:

                                            By:
                                            Title:

                                            THE DAI-ICHI KANGYO BANK, LTD.

                                            By:
                                            Title:

                                            BANCA DI ROMA - CHICAGO BRANCH

                                            By:
                                            Title:

                                            By:
                                            Title:

                                            FIRSTAR BANK, N.A. (formerly known
                                            as Firstar Bank of Minnesota, N.A.)

                                            By:
                                            Title:

                                            MELLON BANK, N.A.

                                            By:
                                            Title:

                                                             Second Amendment to
                                                        364-Day Credit Agreement

                                      S-4
<PAGE>   12

                                            SANWA BANK LIMITED

                                            By:
                                            Title:

                                            By:
                                            Title:

                                            THE BANK OF NEW YORK

                                            By:
                                            Title:

                                            BNP PARIBAS (formerly known as
                                            Banque Nationale De Paris)

                                            By:
                                            Title:

                                            By:
                                            Title:

                                            NATIONAL CITY BANK

                                            By:
                                            Title:

                                                             Second Amendment to
                                                        364-Day Credit Agreement

                                      S-5
<PAGE>   13

                                  SCHEDULE 1.01

                                PRICING SCHEDULE

        The Applicable Margin and Facility Fee Rate shall be determined as
follows:

        1. The Applicable Margin and the Facility Fee Rate shall be as set forth
in the table below and shall be calculated based on (a) the credit ratings
assigned by Moody's and S&P to the Company's debt obligations under this
Agreement and the Long Term Credit Agreement (each a "Bank Debt Rating"), if
Moody's and S&P have issued such ratings, or (b) if either Moody's or S&P has
not issued a Bank Debt Rating, the general corporate rating assigned by Moody's
and S&P to the Company (each a "Corporate Rating"), or (c) if either Moody's or
S&P has issued neither a Bank Debt Rating nor a Corporate Rating, the credit
ratings assigned by Moody's and S&P to the Company's long term senior unsecured
non-credit-enhanced public Debt (each a "Senior Debt Rating").

       2. Prior to March 30, 2001, the Applicable Margin and the Facility Fee
Rate (collectively, the "Pricing") shall be Level IV (notwithstanding that
calculations made in accordance with the other provisions of this Schedule 1.01
would specify a lower level).

       3. If one Bank Debt Rating, Corporate Rating or Senior Debt Rating is
higher than the other (i.e., the Moody's rating is higher than the S&P rating,
or vice versa), the lower of such ratings shall determine the Pricing. If at any
time either Moody's or S&P does not have in effect a Bank Debt Rating, a
Corporate Rating or a Senior Debt Rating (including any time when neither
Moody's nor S&P has in effect any such rating), the Pricing shall be Level V.

       4. The Pricing shall be adjusted two Business Days after any applicable
change in the Bank Debt Rating, Corporate Rating or Senior Debt Rating by either
Moody's or S&P.

<TABLE>
<CAPTION>
                LEVEL I      LEVEL II    LEVEL III   LEVEL IV     LEVEL V
--------------------------------------------------------------------------
<S>             <C>          <C>        <C>         <C>         <C>
BANK DEBT       A-/A3 OR
RATINGS,        HIGHER       BBB+/Baa1   BBB/Baa2    BBB-/Baa3    BB+/Ba1
CORPORATE                                                         OR LOWER
RATINGS OR
SENIOR DEBT
RATINGS
--------------------------------------------------------------------------
APPLICABLE
MARGIN
(bps)              65.0         75.0       85.0        107.5       130.0
--------------------------------------------------------------------------
FACILITY FEE
(bps)              10.0         12.5       15.0         17.5        20.0
--------------------------------------------------------------------------
</TABLE>

<PAGE>   14

                                  SCHEDULE 2.01

                                   COMMITMENTS
                               AND PRO RATA SHARES

<TABLE>
<CAPTION>
                                                                     Pro
                                                                     Rata
         Lender                             Commitment               Share
         ------                             ----------               -----
<S>                                         <C>                  <C>
Bank of America, N.A.                       $ 30,500,000         9.10447761%
Bank One, NA                                $ 30,450,000         9.08955224%
U.S. Bank National Association              $ 30,450,000         9.08955224%
Morgan Guaranty Trust Company of New York   $ 27,840,000         8.31044776%
The Bank of Tokyo - Mitsubishi, Ltd.,
     Chicago Branch                         $ 21,750,000         6.49253731%
Banca Nazionale del Lavoro S.p.A.
     New York Branch                        $ 17,400,000         5.19402985%
Banca Antonveneta New York Branch           $ 17,400,000         5.19402985%
Bank Hapoalim B.M.                          $ 17,400,000         5.19402985%
First Union National Bank                   $ 17,400,000         5.19402985%
The Industrial Bank of Japan, Limited       $ 15,660,000         4.67462687%
Fleet National Bank                         $ 15,660,000         4.67462687%
Credit Lyonnais Chicago Branch              $  9,570,000         2.85671642%
SunTrust Bank                               $  9,570,000         2.85671642%
Wells Fargo Bank, National Association      $  9,570,000         2.85671642%
The Dai-Ichi Kangyo Bank, Ltd.              $  8,700,000         2.59701493%
Banca di Roma - Chicago Branch              $  8,700,000         2.59701493%
Firstar Bank, N.A.                          $  8,700,000         2.59701493%
Mellon Bank, N.A.                           $  7,830,000         2.33731343%
Sanwa Bank Limited                          $  7,830,000         2.33731343%
The Bank of New York                        $  7,830,000         2.33731343%
BNP Paribas                                 $  7,830,000         2.33731343%
National City Bank                          $  6,960,000         2.07761194%

TOTAL                                       $335,000,000                100%
</TABLE>

<PAGE>   15

                                    EXHIBIT I

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