Document:

<PAGE>

                                                                   Exhibit 10.30

                               FIRST AMENDMENT TO
                             NOTE PURCHASE AGREEMENT

         THIS FIRST AMENDMENT TO NOTE PURCHASE AGREEMENT is entered into as of
June 25, 1996 among BETZ LABORATORIES, INC., a Pennsylvania corporation (the
"Company"), PUTNAM FIDUCIARY TRUST COMPANY ("Putnam"), in its capacity as
successor Trustee (the "Trustee") of The Betz Laboratories, Inc. Employee Stock
Ownership and 401(k) Trust (the "ESOT") of the Betz Laboratories, Inc. Employee
Stock Ownership and 401(k) Plan (the "Plan"), and THE PRUDENTIAL INSURANCE
COMPANY OF AMERICA ("Prudential").

                              W I T N E S S E T H:

         WHEREAS, the Company adopted the Betz Laboratories, Inc. Employee Stock
Ownership Plan (the "Plan") effective January 1, 1989, changed the name of the
Plan to the name shown above effective January 1, 1990, and most recently
amended and restated the Plan effective January 1, 1994; and

         WHEREAS, pursuant to the Plan and effective January 1, 1989, the
Company entered into an Agreement of Trust, with Mellon Bank, N.A. ("Mellon") as
trustee ("Trustee"), thereby establishing the ESOT; and

         WHEREAS, as of June 19, 1989, the ESOT and the Company entered into a
Note Purchase Agreement ("Note Agreement") with Prudential whereby the ESOT sold
and Prudential purchased $100,000,000 principal amount of the ESOT's Notes
(guaranteed by the Company), all of which are still held by Prudential; and

         WHEREAS, as of October 1, 1992, the Company removed Mellon as Trustee,
appointed Putnam as successor Trustee and amended and restated the foregoing
Agreement of Trust, retitling it as "Trust Agreement for Betz Laboratories, Inc.
Employee Stock Ownership and 401(k) Plan," and continued the ESOT with the
successor Trustee; and

         WHEREAS, the Company desires to acquire certain assets of W.R. Grace &
Co.-Conn. and its affiliates pursuant to the Grace Dearborn Worldwide Purchase
and Sale Agreement, dated as of March 11, 1996, between the Company and W.R.
Grace & Co.-Conn. (the "Acquisition Agreement"); and

         WHEREAS, the Company desires to obtain a $750 million credit facility
pursuant to a Credit Agreement, dated as of June 20, 1996 among the Company,
Betz Canada Inc., the banks parties thereto (the "Banks") and Morgan Guaranty
Trust Company of New York, as Agent for the Banks (the "Credit Agreement"); and

         WHEREAS, the consummation of the transactions contemplated by the
Acquisition Agreement and the Credit Agreement may cause the Company to be in
breach of certain covenants contained in the Note Agreement; and

                                       1
<PAGE>
         WHEREAS, in connection with the consummation of the transactions
contemplated by the Acquisition Agreement and the Credit Agreement, the parties
hereto desire to amend certain provisions of the Note Agreement, as provided for
herein.

         NOW, THEREFORE, in consideration of the foregoing premises and mutual
covenants and agreements contained herein, the parties hereto agree as follows:

1.       Amendments to Note Agreement

         (a) Paragraph 5A of the Note Agreement is amended by deleting the
phrase "paragraphs 6A, 6B and 6C" from the second sentence thereof and replacing
it with the phrase "paragraphs 6A, 6B(b), 6C(g), (h) and (i), 6D, 6E, 6F and
6G."

         (b) Paragraph 6 of the Note Agreement is hereby deleted in its
entirety, and the following is hereby inserted in lieu hereof:

                  6. NEGATIVE COVENANTS. The provisions of this paragraph 6
         shall remain in effect only so long as any Note shall remain
         outstanding.

                  6A. Minimum Consolidated Net Worth. Consolidated Net Worth
         will at no time during any fiscal period set forth below be less than
         an amount equal to the sum of (i) $270,000,000 plus (ii) an amount
         equal to 25% of Consolidated Net Income for each fiscal quarter of the
         Company ending after June 30, 1996 and on or prior to the date of
         determination, in each case, for which Consolidated Net Income is
         positive (but with no deduction on account of negative Consolidated Net
         Income for any fiscal quarter of the Company) plus (iii) 50% of the
         aggregate net proceeds, including the fair market value of property
         other than cash (as determined in good faith by the Board of Directors
         of the Company), received by the Company from the issuance and sale
         after the date hereof of any capital stock of the Company (other than
         the proceeds of any issuance and sale of any capital stock (x) to a
         Subsidiary of the Company of (y) which is required to be redeemed, or
         is redeemable at the option of the holder, at any time) or in
         connection with the conversion or exchange of any Debt of the Company
         into capital stock of the Company after December 31, 1995 (such sum
         being the "Minimum Permissible Consolidated Net Worth"); provided that
         the Minimum Permissible Consolidated Net Worth shall be reduced by an
         amount not to exceed $15,000,000 for the after-tax effect of
         restructuring charges actually taken by the Company in relation to its
         acquisition of the Dearborn Business.

                  6B.      Mergers and Sales of Assets.

                           (a) The Company will not consolidate or merge with or
                  into any other Person; provided that the Company may merge
                  with another Person if (x) the Company is the corporation
                  surviving such merger and (y) after giving effect to such
                  merger, no Default shall have occurred and be continuing.

                                       2
<PAGE>
                           (b) The Company will not sell, lease or otherwise
                  transfer, directly or indirectly, assets (exclusive of assets
                  transferred in the ordinary course of business and any
                  Permitted Receivables Disposition) if after giving effect to
                  such transfer the aggregate book value of assets so
                  transferred subsequent to June 20, 1996 would exceed 25% of
                  Consolidated Assets of the day preceding the date of such
                  transfer.

                  6C. Negative Pledge. Neither the Company nor any Subsidiary
         will create, assume or suffer to exist any Mortgage upon any asset now
         owned or hereafter acquired by it, except:

                           (a) Mortgages existing on the date of the acquisition
                  by the Company of the Dearborn Business securing Debt
                  outstanding on such date in an aggregate principal or face
                  amount not exceeding $15,000,000;

                           (b) any Mortgage existing on any asset of any Person
                  at the time such Person becomes a Subsidiary and not created
                  in contemplation of such event;

                           (c) any Mortgage on any asset securing Debt incurred
                  or assumed for the purpose of financing all or any part of the
                  cost of acquiring or constructing such asset, provided that
                  such Mortgage attaches to such asset concurrently with or
                  within 90 days after the acquisition or completion of
                  construction thereof;

                           (d) any Mortgage on any asset of any Person existing
                  at the time such Person is merged or consolidated with or into
                  the Company or a Subsidiary and not created in contemplation
                  of such event;

                           (e) any Mortgage existing on any asset prior to the
                  acquisition thereof by the Company or a Subsidiary and not
                  created in contemplation of such acquisition;

                           (f) any Mortgage arising out of the refinancing,
                  extension, renewal or refunding of any Debt secured by any
                  Mortgage permitted by any of the foregoing clauses of this
                  paragraph, provided that the proceeds of such Debt are used
                  solely for the foregoing purpose and to pay financing costs
                  and such Debt is not secured by any additional assets;

                           (g) Mortgages arising in the ordinary course of its
                  business which (i) do not secure Debt or Derivatives
                  Obligations (ii) do not secure any obligation in an amount
                  exceeding $25,000,000 and (iii) do not in the aggregate
                  materially detract from the value of its assets or materially
                  impair the use thereof in the operation of its business;

                           (h) Mortgages on cash and cash equivalents securing
                  Derivatives Obligations, provided that the aggregate amount of
                  cash and

                                       3
<PAGE>
                  cash equivalents subject to such Mortgages may at no time
                  exceed $25,000,000;

                           (i) Mortgages for current taxes, assessments and
                  other governmental charges not yet due and payable or being
                  contested in good faith and as to which adequate reserves in
                  accordance with generally accepted accounting principles have
                  been established;

                           (j) Mechanics, materialmen's carrier's,
                  warehousemen's or similar Mortgages for sums not yet due and
                  owing or being contested in good faith and as to which
                  adequate reserves in accordance with generally accepted
                  accounting principles have been established;

                           (k) Mortgages created in connection with Permitted
                  Securitization Transactions; provided that, except for the
                  assets transferred pursuant to Permitted Receivables
                  Dispositions made in connection with such Permitted
                  Securitization Transactions, no such Mortgage may extend to
                  any assets of the Company or any Subsidiary of the Company
                  that is not a Bankruptcy Remote Subsidiary; and

                           (l) Mortgages not otherwise permitted by the
                  foregoing clauses of this paragraph 6C securing Debt in an
                  aggregate principal or face amount at any date not to exceed
                  10% of Consolidated Net Worth.

                  6D. Debt to Total Capital. The ratio of Consolidated Debt to
         Total Capital shall not exceed during any period set forth below the
         applicable ratio set forth below for such period.

<TABLE>
<CAPTION>
              Period                                         Ratio
              ------                                         -----
<S>                                                          <C>
June 28, 1996 - December 30, 1996                               72%

December 31, 1996 - December 30, 1997                           70%

December 31, 1997 - December 30, 1998                           65%

December 31, 1998 - December 30, 1999                           57%

December 31, 1999 and thereafter                                50%
</TABLE>

                  6E. Debt of Subsidiaries. Total Debt of all Subsidiaries
         (excluding Debt (i) of a Subsidiary to the Company and (ii) of a
         Subsidiary to a wholly owned Subsidiary) will at no time exceed 30% of
         Total Capital. For purposes of this paragraph 6E any preferred stock of
         a Consolidated Subsidiary held by a Person other than the Company or a
         Wholly-Owned Consolidated Subsidiary shall be included, at the higher
         of its voluntary or involuntary liquidation value, in "Consolidated
         Debt" and in the "Debt" of such Consolidated Subsidiary.

                                       4
<PAGE>
                  6F. Interest Coverage Ratio. As of the last day of each fiscal
         quarter of the Company ending during each period set forth below, the
         Interest Coverage Ratio at such last day will not be less than the
         ratio set forth below opposite such period:

<TABLE>
<CAPTION>
                    Period                                   Ratio
                    ------                                   -----
<S>                                                       <C>
Quarter ending December 31, 1996 through quarter          3.00 to 1.00
ending June 30, 1997

Quarter ending September 30, 1997 through quarter         3.25 to 1.00
ending December 31, 1997

Quarter ending March 31, 1998 through quarter ending      3.50 to 1.00
September 30, 1998

Quarter ending December 31, 1998 and all quarters         4.00 to 1.00
thereafter
</TABLE>

                  6G. Sale-Leaseback Transactions. Neither the Company nor any
         of its Subsidiaries will engage in any Sale-Leaseback Transactions
         unless the Company or such Subsidiary would be entitled, pursuant to
         the provisions of paragraph 6C, to incur Debt with a principal amount
         equal to or exceeding the Value of such Sale-Leaseback Transaction
         secured by a Mortgage on the property to be leased (after giving
         similar effect to all other Sale-Leaseback Transactions in effect at
         such time). For purposes of this paragraph 6G, "Value" means, with
         respect to a Sale-Leaseback Transaction, at any time, the amount equal
         to the greater of (i) the net proceeds of the sale or transfer of the
         property leased pursuant to such Sale-Leaseback; and (ii) the fair
         value in the opinion of the Board of Directors of the Company of such
         property at the time of entering into such Sale-Leaseback Transaction,
         in either case divided first by the number of full years of the term of
         the lease and then multiplied by the number of full years of such term
         remaining at the time of determination, without regard to any renewal
         or extension options contained in the lease.

                  6H. Transactions with Affiliates. The Company will not, and
         will not permit any Subsidiary to, directly or indirectly, pay any
         funds to or for the account of, make any investment (whether by
         acquisition of stock or indebtedness, by loan, advance, transfer of
         property, guarantee or other agreement to pay, purchaser or service,
         directly or indirectly, any Debt, or otherwise) in, lease, sell,
         transfer or otherwise dispose of any assets, tangible or intangible,
         to, or participate in, or effect, any transaction with, any Affiliate
         except on an arms-length basis on terms at least as favorable to the
         Company or such Subsidiary as could have been obtained from a third
         party who was not an Affiliate; provided that the foregoing provisions
         of this Section shall not prohibit any such Person from declaring or
         paying any lawful dividend or other payment ratably in respect of all
         of its capital stock, from paying reasonable compensation to its
         directors and officers or from

                                       5
<PAGE>
         entering into other transactions that the Company determines are in its
         best interests and having a cost to such Person not in excess of
         $5,000,000.

         (c) Paragraph 7A(a)(i) of the Note Agreement is amended by inserting
after the phrase "Gross-up Rate" the phrase "plus the Additional Interest then
applicable."

         (d) The first sentence of paragraph 7D of the Note Agreement is amended
by inserting after the phrase "Gross-up Rate" and after the phrase "Fully Tax
Exempt Rate" the phrase "plus the Additional Interest then applicable."

         (e) Clause (v) of paragraph 9A of the Note Agreement is hereby amended
in its entirety to read as follows:

                  (v) any representation, warranty, certification or statement
         made by the Company or, in the event the Company Notes are not
         outstanding, the ESOT in this Agreement or in any certificate,
         financial statement or other document delivered pursuant to this
         Agreement shall be false in any material respect on the date as of
         which made; or

         (f) The following definitions set forth in paragraph 12A of the Note
Agreement are hereby deleted:

                  Cash Equivalents
                  Consolidated Funded Debt
                  Consolidated Tangible Gross Worth
                  Consolidated Tangible Net Worth
                  Cumulative Net Income Amount
                  Fixed Charges
                  Funded Debt
                  Interest Expense
                  Rent Expense
                  Tax Expense

         (g) The following definitions set forth in paragraph 12A of the Note
Agreement are hereby modified in their entirety so that such definitions, as so
modified, shall read as follows:

         "CONSOLIDATED NET INCOME" means, for any fiscal period, the net income
of the Company and its Consolidated Subsidiaries, determined on a consolidated
basis for such period, exclusive of the effect of any extraordinary or other
non-recurring gain or loss (such as non-recurring restructuring and/or
integration costs arising as a result of the acquisition to the Dearborn
business).

         "MORTGAGES" means, with respect to any asset, any mortgage, lien,
pledge, charge or security interest, or any other type of preferential
arrangement that has the practical effect of creating a security interest, in
respect of such asset. For the purposes of this Agreement, the Company or any
Subsidiary shall be deemed to own subject to a Mortgage any asset which it has

                                       6
<PAGE>
acquired or holds subject to the interest of a vendor or lessor under any
conditional sale agreement, capital lease or other title retention agreement
relating to such asset.

         "QUALIFIED TAX-EXEMPT RATE" shall mean 8.15% plus the Additional
Interest then applicable.

         (h) The following definitions are hereby added to paragraph 12A of the
Note Agreement, to be inserted in the appropriate alphabetical order:

         "ACQUISITION AGREEMENT" means the Grace Dearborn Worldwide Purchase and
Sale Agreement, dated as of March 11, 1996, between the company and W.R. Grace &
Co.-Conn., and any and all amendments thereto.

         "ADDITIONAL INTEREST" means the quotient of (a) the percentage rate
determined in accordance with Schedule X hereto, divided by (b) the Adjustment
Fraction in effect as of June 28, 1996.

         "AFFILIATE" means (i) any Person that directly, or indirectly through
one or more intermediaries, controls the Company (a "Controlling Person") or
(ii) any Person (other than the Company or a Subsidiary) which is controlled by
or is under common control with a Controlling Person. As used herein, the term
"control" means possession, directly or indirectly, of the power to vote 10% or
more of any class of voting securities of a Person or to direct or cause the
direction of the management or policies of a Person, whether through the
ownership of voting securities, by contract or otherwise.

         "BANKRUPTCY REMOTE SUBSIDIARY" means any Subsidiary of the Company
created in connection with a Permitted Securitization Transaction whose only
material creditors are the purchaser or lender related to such Permitted
Securitization Transaction and the Company or any Subsidiary of the Company that
is the originator and seller or contributor of accounts receivable to such
Subsidiary in connection with a Permitted Securitization Transaction.

         "CONSOLIDATED ASSETS" means at any date the assets of the Company and
its Consolidated Subsidiaries, determined on a consolidated basis as of such
date.

         "CONSOLIDATED DEBT" means at any date the Debt of the Company and its
Consolidated Subsidiaries, determined on a consolidated basis as of such date.

         "CONSOLIDATED EBIT" means, for any fiscal period, Consolidated Net
Income for such period, excluding the effect of foreign currency translation
gains and losses arising out of operations of hyperinflationary economies, plus,
to the extent deducted in determining Consolidated Net Income for such period,
the aggregate amount of (i) Consolidated Interest Expense and (ii) income tax
expense.

         "CONSOLIDATED INTEREST EXPENSE" means, for any period, the interest
expense of the Company and its Consolidated Subsidiaries determined on a
consolidated basis for such period (excluding amortization of deferred financing
costs).

                                       7
<PAGE>
         "CONSOLIDATED NET WORTH" means at any date the consolidated
stockholders' equity of the Company and its Consolidated Subsidiaries determined
as of such date (other than any amount attributable to stock which is required
to be redeemed or is redeemable at the option of the holder, if certain events
or conditions occur or exist or otherwise), excluding the effect thereon of
foreign currency translation gains and losses arising after June 30, 1996 out of
operations in hyperinflationary economics.

         "CONSOLIDATED SUBSIDIARY" means at any date any Subsidiary or other
entity the accounts of which would be consolidated with those of the Company in
its consolidated financial statements if such statements were prepared as of
such date.

         "CREDIT AGREEMENT" means the Credit Agreement, dated as of June 20,
1996 among the Company, Betz Canada Inc., the banks parties thereto (the
"Banks") and Morgan Guaranty Trust Company of New York, as Agent for the Banks.

         "DEARBORN BUSINESS" has the meaning set forth in the Acquisition
Agreement.

         "DEBT" of any Person means at any date, without duplication, (i) all
obligations of such Person for borrowed money, (ii) all obligations of such
Person evidenced by bonds, debentures, notes or other similar instruments, (iii)
all obligations of such Person to pay the deferred purchase price of property or
services, except trade accounts payable, construction retentions and similar
items arising in the ordinary course of business, (iv) all obligations of such
Person as lessee which are capitalized in accordance with generally accepted
accounting principles, (v) all noncontingent obligations (and, for purposes of
paragraph 6C, all contingent obligations) of such Person to reimburse any bank
or other Person in respect of amounts paid under a letter of credit or similar
instrument, (vi) all Debt secured by a Mortgage on any asset of such Person up
to the greater of fair market value or book value of such asset, whether or not
such Debt is otherwise an obligation of such Person and (vii) all Debt of others
Guaranteed by such Person.

         "DERIVATIVES OBLIGATIONS" of any Person means all obligations of such
Person in respect of any rate swap transaction, basis swap, forward rate
transaction, commodity swap, commodity option, equity or equity index swap,
equity or equity index option, bond option, interest rate option, foreign
exchange transaction, cap transaction, floor transaction, collar transaction,
currency swap transaction, cross-currency rate swap transaction, currency option
or any other similar transaction (including any option with respect to any of
the foregoing transactions) or any combination of the foregoing transactions.

         "GUARANTEE" by any Person means any obligation, contingent or
otherwise, of such person directly or indirectly guaranteeing any Debt of any
other Person and, without limiting the generality of the foregoing, any
obligation, direct or indirect, contingent or otherwise, of such Person (i) to
purchase or pay (or advance or supply funds for the purchase or payment of) such
Debt (whether arising by virtue of partnership arrangements, by agreement to
keep-well, to purchase assets, goods, securities or services, to take-or-pay, or
to maintain financial statement conditions or otherwise) or (ii) entered into
for the purpose of assuring in any other manner the holder of such Debt of the
payment thereof or to protect such holder against loss in respect thereof (in
whole or in part), provided that the term Guarantee shall not include
endorsements for

                                       8
<PAGE>
collection or deposit in the ordinary course of business. The term "Guarantee"
used as a verb has a corresponding meaning.

         "INTEREST COVERAGE RATIO" means at the end of any fiscal quarter of the
Company the ratio of (i) Consolidated EBIT for the four consecutive fiscal
quarters of the Company and its Consolidated Subsidiaries ending of such date to
(ii) Consolidated Interest Expense for such period; provided that for the
periods ended December 31, 1996 and March 31, 1997, such ratio shall be
calculated from July 1, 1996 through the fiscal quarter then ended.

         "PERMITTED RECEIVABLES DISPOSITION" means any transfer (by way of sale,
pledge or otherwise) by the Company or any Subsidiary to any other Person
(including a Bankruptcy Remote Subsidiary) of accounts receivable and other
rights to payment (whether constituting accounts, chattel paper, instruments,
general intangibles or otherwise and including the right to payment of interest
or finance charges) and related contract and other rights and property
(including all general intangibles, collections and other proceeds relating
thereto, all security therefor (and the property subject thereto), all
guarantees and other agreements or arrangements of whatsoever character from
time to time supporting such right to payment, and all other right, title and
interest in goods relating to a sale which gave rise to such right of payment)
in connection with a Permitted Securitization Transaction.

         "PERMITTED SECURITIZATION TRANSACTION" means any receivables purchase
or financing transaction pursuant to which the Company or a Subsidiary
(including a Bankruptcy Remote Subsidiary) sells or grants a security interest
in its accounts receivable or its Subsidiaries (and related rights and property
as described in the definition of Permitted Receivables Disposition) or an
undivided interest therein, provided that (i) the aggregate principal or
invested amount outstanding at any one time under all such facilities shall not
exceed $100,000,000 and (ii) the recourse of the purchaser or lender with
respect to such transaction for losses resulting from an obligor's failure to
pay a receivable due to credit problems is limited to such accounts receivable
or an interest therein, and the collections thereof.

         "SALE-LEASEBACK TRANSACTION" means any arrangement with any Person
providing for the leasing by the Company or any Subsidiary of any property that,
or of any property similar to and used for substantially the same purposes as
any other property that, has been or is to be sold, assigned, transferred or
otherwise disposed of by the Company or any of its Subsidiaries to such Person
with the intention of entering into such a lease.

         "TOTAL CAPITAL" means, at any date, the sum of (x) Consolidated Debt
plus (y) consolidated shareholders' equity of the Company and its Consolidated
Subsidiaries (including for this purpose any amount attributable to stock which
is required to be redeemed or is redeemable at the option of the holder, if
certain events or conditions occur or exist or otherwise), excluding the effect
thereon of foreign currency translation gains and losses arising after June 30,
1996 out of operations in hyperinflationary economies, in each case determined
at such date.

                                       9
<PAGE>
         "WHOLLY-OWNED CONSOLIDATED SUBSIDIARY" means any Consolidated
Subsidiary all of the shares of capital stock or other ownership interests of
which (except directors' qualifying shares) are at the time directly or
indirectly owned by the Company.

         (i) The Note Agreement is hereby amended by adding as Schedule X
thereto Schedule X as annexed to this Amendment.

2. Representations and Warranties of the Company

         The Company hereby incorporates the representations and warranties
contained in Article 4 of the Credit Agreement (together with all related
defined terms) as in effect on the date hereof by reference herein to the same
extent as if set forth at length herein (the "Incorporated Provisions") and
hereby makes such representations and warranties (to the knowledge of the
Company, when applicable under the Credit Agreement) for the benefit of
Prudential in connection with the execution and delivery of this amendment;
provided, that references in the Incorporated Provisions to "this Agreement" and
"Notes" shall be taken as references to the Note Agreement as amended hereby and
to the Notes outstanding thereunder and references to "Agent," "Bank" and
"Banks" shall be taken as references to Prudential as Holder of the Notes under
the Note Agreement. The Company has heretofore delivered to Prudential true and
correct copies of the Information Memorandum (as defined in the Incorporated
Provisions) and the financial statements and information referred to in Section
4.4 and Section 4.12 of the Incorporated Provisions.

3. Effectiveness of Agreement

         This Amendment shall become effective upon the delivery to Prudential
of an Officer's Certificate certifying: (i) there exists no Default or Event of
Default under the Note Agreement (after giving effect to the provisions of this
Amendment amending the Note Agreement); (ii) the Company has acquired the
Dearborn Business on terms in all material respects as set forth in the
Acquisition Agreement; (iii) the representations and warranties of the Company,
made in Section 2 of this Amendment are true and correct with the same effect as
if made on and as of the date of such Certificate; and (iv) the Initial Funding
Date has occurred under the Credit Agreement.

4. Miscellaneous

         (a) Capitalized terms not otherwise defined herein shall have the
meanings ascribed thereto in the Note Agreement.

         (b) On and after the effective date of this Amendment, each reference
in the Note Agreement and the Notes shall mean and be a reference to the Note
Agreement as amended by this Amendment.

         (c) The Note Agreement, as amended by this Amendment, is and shall
continue to be in full force and effect and is hereby in all respects ratified
and confirmed.

                                       10
<PAGE>
         (d) This Amendment may be executed in any number of counterparts and by
any combination of the parties hereto in separate counterparts, each of which
counterparts shall be an original and all of which taken together shall
constitute one and the same Agreement.

         IN WITNESS WHEREOF, the parties have caused this Amendment to be
executed and delivered by their respective officers thereunto duly authorized as
of the date first above written.

                                     BETZ LABORATORIES, INC. EMPLOYEE
                                     STOCK OWNERSHIP AND 401(K) TRUST
                                     ESTABLISHED BY THE BETZ
                                     LABORATORIES, INC. EMPLOYEE STOCK
                                     OWNERSHIP AND 501(K) PLAN

                                     By:   PUTNAM FIDUCIARY TRUST COMPANY
                                           as Trustee

                                     By:
                                        ---------------------------------------
                                        Title:

                                     BETZ LABORATORIES, INC.

                                     By:
                                        ---------------------------------------
                                        Title:

                                     THE PRUDENTIAL INSURANCE COMPANY
                                     OF AMERICA

                                     By:
                                        ---------------------------------------
                                        Title:

                                       11
<PAGE>
                                   SCHEDULE X

                                 PRICING LEVELS

         "Additional Interest" means, for any date, the rate set forth below in
the column corresponding to the "Pricing Level" that applies at such date:

<TABLE>
<CAPTION>
Level I             Level II           Level III          Level IV            Level V
<S>                 <C>                <C>                <C>                 <C>
 0.00%               0.08%               0.28%              0.38%              0.48%
</TABLE>

         "Level I Pricing" applies to any date if, on any Determination Date
prior thereto (x) the Company's Interest Coverage Ratio equalled or exceeded
6.5:1 and its FFO/Debt Ratio equalled or exceeded 0.55:1 or (y) the Company's
long-term debt was rated A+ or higher by S&P or A1 or higher by Moody's.

         "Level II Pricing" applies at any date if, on any Determination Date
prior thereto (i)(x) the Company's Interest Coverage Ratio equalled or exceeded
5.5:1 and its FFO/Debt Ratio equalled or exceeded 0.50:1 or (y) the Company's
long-term debt was rated A or higher by S&P or A2 or higher by Moody's and (ii)
Level I pricing does not apply.

         "Level III Pricing" applies at any date if, on any Determination Date
prior thereto (i)(x) the Company's Interest Coverage Ratio equaled or exceeded
4.0:1 and its FFO/Debt Ratio equalled or exceeded 0.40:1 or (y) the Company's
long-term debt was rated BBB+ or higher by S&P or Baal or higher by Moody's and
(ii) neither Level I Pricing nor Level II Pricing applies.

         "Level IV Pricing" applies at any date if, on any Determination Date
prior thereto (i)(x) the Company's Interest Coverage Ratio equalled or exceeded
3.0:1 and its FFO/Debt Ratio equalled or exceeded 0.30:1 or (y) the Company's
long-term debt was rated BBB or higher by S&P or Baa2 or higher by Moody's and
(ii) none of the Level I Pricing, Level II Pricing and Level III Pricing
applies.

         "Level V Pricing" applies at any date if, at any such date, no other
Pricing Level applies.

         "Pricing Level" refers to the determination of which Level I, Level II,
Level III, Level IV or Level V applies at any date.

         "Determination Date" means any date after June 30, 1996 in respect of
determining a Pricing Level.

         "FFO/Debt Ratio" means at the end of any fiscal quarter of the Company
the ratio of (x) Funds from Operations for the four fiscal quarters of the
Company and its Consolidated Subsidiaries ending on such date to (y)
Consolidated Debt as of such date.

         "Funds from Operations" for any period means consolidated net income
from continuing operations of the Company and its Consolidated Subsidiaries for
such period plus, to the extent

                                       12
<PAGE>
deducted in determining such consolidated net income for such period, the
aggregate amount of depreciation and amortization expense and deferred income
taxes, and plus (to the extent deducted in determining such consolidated net
income for such period) or minus (to the extent added in determining such
consolidated net income for such period) other non-cash operating items
excluding changes in operating assets and liabilities.

                  "Moody's" means Moody's Investors Service, Inc.

                  "S&P" means Standard & Poor's Ratings Services.

                  In connection with the determination of Pricing Levels, the
following shall apply:

                           (a) The credit ratings to be utilized for purposes of
                  this Schedule are those assigned to the senior unsecured
                  long-term debt securities of the company without third-party
                  credit enhancement, whether or not any such debt securities
                  are actually outstanding, and any rating assigned to any other
                  debt security of the Company shall be disregarded. The rating
                  in effect at any date is that in effect at the close of
                  business on such date.

                                       13<PAGE>
                                                                   Exhibit 10.31

                               SECOND AMENDMENT TO
                             NOTE PURCHASE AGREEMENT

         THIS SECOND AMENDMENT TO NOTE PURCHASE AGREEMENT is entered into as of
June 25, 1998 among BETZDEARBORN INC., a Pennsylvania corporation (the
"Company"), PUTNAM FIDUCIARY TRUST COMPANY ("Putnam"), in its capacity as
successor Trustee (the "Trustee") of The BetzDearborn Inc. Employee Stock
Ownership and 401(k) Trust (the "ESOT") of the BetzDearborn Inc. Employee Stock
Ownership and 401(k) Plan (the "Plan"), and THE PRUDENTIAL INSURANCE COMPANY OF
AMERICA ("Prudential").

                              W I T N E S S E T H:

         WHEREAS, the Company adopted the Betz Laboratories, Inc. Employee Stock
Ownership Plan (the "Plan") effective January 1, 1989, changed the name of the
Plan to the name shown above and most recently amended and restated the Plan
effective January 1, 1994; and

         WHEREAS, pursuant to the Plan and effective January 1,1989 the Company
entered into an Agreement of Trust with Mellon Bank, N.A. ("Mellon") as trustee
("Trustee"), thereby establishing the ESOT; and

         WHEREAS, as of June 19, 1989, the ESOT and the Company entered into a
Note Purchase Agreement with Prudential whereby the ESOT sold and Prudential
purchased $100,000,000 principal amount of the ESOT's Notes (guaranteed by the
Company), all of which are still held by Prudential, which Note Purchase
Agreement was amended by a First Amendment thereto as of June 25, 1996 (as so
amended being herein called the "Note Agreement"); and

         WHEREAS, as of October 1, 1992, the Company removed Mellon as Trustee,
appointed Putnam as successor Trustee and amended and restated the foregoing
Agreement of Trust, retitling it as "Trust Agreement for Betz Laboratories Inc.
Employee Stock Ownership and 401(k) Plan," and continued the ESOT with the
successor Trustee; and

         WHEREAS, the parties hereto desire to amend certain provisions of the
Note Agreement, as provided for herein.

         NOW, THEREFORE, in consideration of the foregoing premises and mutual
covenants and agreements contained herein, the parties hereto agree as follows:

1. Amendments to Note Agreement

         (a) Paragraph 6 of the Note Agreement is hereby deleted in its
entirety, and the following is hereby inserted in lieu thereof:

         6. NEGATIVE COVENANTS. The provisions of this paragraph 6 shall remain
in effect only so long as any Note shall remain outstanding.

         6A. Minimum Consolidated Net Worth. Consolidated Net Worth will at no
time be less than an amount equal to the sum of (i) $295,000,000 plus (ii) an
amount equal to 25% of Consolidated Net Income for each. fiscal quarter of the
Company ending after June 30, 1997 and on
<PAGE>

or prior to the date of determination, in each case, for which Consolidated Net
Income is positive (but with no deduction on account of negative Consolidated
Net Income for any fiscal quarter of the Company) plus (iii) 50% of the
aggregate net proceeds, including the fair market value of property other than
cash (as determined in good faith by the Board of Directors of the Company),
received by the Company from the issuance and sale after October 20, 1997 of any
capital stock of the Company (other than the proceeds of any issuance and sale
of any capital stock (x) to a Subsidiary of the Company or (y) which is required
to be redeemed, or is redeemable at the option of the holder, at any time) or in
connection with the conversion or exchange of any Debt of the Company into
capital stock of the Company after June 30, 1997.

         6B. Mergers and Sales of Assets.

                  (a) The Company will not consolidate or merge with or into any
         other Person; provided that the Company may merge with another Person
         if (x) the Company is the corporation surviving such merger and (y)
         after giving effect to such merger, no Default shall have occurred and
         be continuing.

                  (b) The Company will not sell, lease or otherwise transfer,
         directly or indirectly, assets (exclusive of assets transferred in the
         ordinary course of business and any Permitted Receivables Disposition)
         if after giving effect to such transfer the aggregate book value of
         assets so transferred subsequent to October 20, 1997 would exceed 25%
         of Consolidated Assets as of the day preceding the date of such
         transfer.

         6C. Negative Pledge. Neither the Company nor any Subsidiary will
create, assume or suffer to exist any Mortgage upon any asset now owned or
hereafter acquired by it, except:

                  (a) Mortgages existing on October 20, 1997 securing Debt
         outstanding on such date in an aggregate principal or face amount not
         exceeding $15,000,000;

                  (b) any Mortgage existing on any asset of any Person at the
         time such Person becomes a Subsidiary and not created in contemplation
         of such event;

                  (c) any Mortgage on any asset securing Debt incurred or
         assumed for the purpose of financing all or any part of the cost of
         acquiring or constructing such asset, provided that such Mortgage
         attaches to such asset concurrently with or within 90 days after the
         acquisition or completion of construction thereof;

                  (d) any Mortgage on any asset of any Person existing at the
         time such Person is merged or consolidated with or into the Company or
         a Subsidiary and not created in contemplation of such event;

                  (e) any Mortgage existing on any asset prior to the
         acquisition thereof by the Company or a Subsidiary and not created in
         contemplation of such acquisition;

                  (f) any Mortgage arising out of the refinancing, extension,
         renewal or refunding of any Debt secured by any Mortgage permitted by
         any of the foregoing clauses of this paragraph, provided that the
         proceeds of such Debt are used solely for the foregoing purpose and to
         pay financing costs and such Debt is not secured by any additional
         assets;
<PAGE>

                  (g) Mortgages arising in the ordinary course of its business
         which (i) do not secure Debt or Derivatives Obligations (ii) do not
         secure any obligation in an amount exceeding $25,000,000 and (iii) do
         not in the aggregate materially detract from the value of its assets or
         materially impair the use thereof in the operation of its business;

                  (h) Mortgages on cash and cash equivalents securing
         Derivatives Obligations, provided that the aggregate amount of cash and
         cash equivalents subject to such Mortgages may at no time exceed
         $25,000,000;

                  (i) Mortgages for current taxes, assessments and other
         governmental charges not yet due and payable or being contested in good
         faith and as to which adequate reserves in accordance with generally
         accepted accounting principles have been established;

                  (j) Mechanics, materialmen's carrier's, warehousemen's or
         similar Mortgages for sums not yet due and owing or being contested in
         good faith and as to which adequate reserves in accordance with
         generally accepted accounting principles have been established;

                  (k) Mortgages created in connection with Permitted
         Securitization Transactions; provided that, except for the assets
         transferred pursuant to Permitted Receivables Dispositions made in
         connection with such Permitted Securitization Transactions, no such
         Mortgage may extend to any assets of the Company or any Subsidiary of
         the Company that is not a Bankruptcy Remote Subsidiary; and

                  (1) Mortgages not otherwise permitted by the foregoing clauses
         of this paragraph 6C securing Debt in an aggregate principal or f ace
         amount at any date not to exceed an amount equal to the excess of 10%
         of Consolidated Net Worth over the aggregate Value of Sale-Leaseback
         Transactions which would not have been permitted under paragraph 6F but
         for this clause (1).

         6D. Debt to Total Capital. The ratio of Consolidated Debt to Total
Capital shall not exceed during any period set forth below the applicable ratio
set forth below for such period. For purposes of this paragraph 6D Consolidated
Debt shall exclude accreted discount on Bankers' Acceptances under the Credit
Agreement in amounts not exceeding the amounts thereof as contemplated by the
Credit Agreement as in effect on June 25, 1998.

<TABLE>
<CAPTION>
               Period                                             Ratio
               ------                                             -----
<S>                                                               <C>
June 25, 1998 - December 30, 1998                                   67%
December 31, 1998 - December 30, 1999                               63%
December 31, 1999 - December 30, 2000                               59%
December 31, 2000 and thereafter                                    55%
</TABLE>

         6E. Debt of Subsidiaries. Total Debt of all Subsidiaries (excluding
Debt (i) of a Subsidiary to the Company and (ii) of a Subsidiary to a wholly
owned Subsidiary) will at no time exceed 30% of Total Capital. For purposes of
this paragraph 6E any preferred stock of a Consolidated Subsidiary held by a
Person other than the Company or a Wholly-Owned Consolidated Subsidiary shall be
included, at the higher of its voluntary or involuntary liquidation value, in
"Consolidated Debt" and in the "Debt" of such Consolidated Subsidiary.
<PAGE>
         6F. [This paragraph 6F has been intentionally left blank].

         6G. Sale-Leaseback Transactions. Neither the Company nor any of its
Subsidiaries will engage in any Sale-Leaseback Transactions unless the Company
or such Subsidiary would be entitled, pursuant to the provisions of paragraph
6C, to incur Debt with a principal amount equal to or exceeding the Value of
such Sale-Leaseback Transaction secured by a Mortgage on the property to be
leased (after giving similar effect to all other Sale-Leaseback Transactions in
effect at such time). For purposes of this paragraph 6G and paragraph 6C(l),
"Value" means, with respect to a Sale-Leaseback Transaction, at any time, the
amount equal to the greater of (i) the net proceeds of the sale or transfer of
the property leased pursuant to such Sale-Leaseback Transaction and (ii) the
fair value in the opinion of the Board of Directors of the Company of such
property at the time of entering into such Sale-Leaseback Transaction, in either
case divided first by the number of full years of the term of the lease and then
multiplied by the number of full years of such term remaining at the time of
determination, without regard to any renewal or extension options contained in
the lease.

         6H. Transactions with Affiliates. The Company will not, and will not
permit any Subsidiary to, directly or indirectly, pay any funds to or for the
account of, make any investment (whether by acquisition of stock or
indebtedness, by loan, advance, transfer of property, guarantee or other
agreement to pay, purchaser or service, directly or indirectly, any Debt, or
otherwise) in, lease, sell, transfer or otherwise dispose of any assets,
tangible or intangible, to, or participate in, or effect, any transaction with,
any Affiliate except on an arms-length basis on terms at least as favorable to
the Company or such Subsidiary as could have been obtained from a third party
who was not an Affiliate; provided that the foregoing provisions of this Section
shall not prohibit any such Person from declaring or paying any lawful dividend
or other payment ratably in respect of all of its capital stock, from paying
reasonable compensation to its directors and officers or from entering into
other transactions that the Company determines are in its best interests and
having a cost to such Person not in excess of $5,000,000.

         (b) Clause (iv) of paragraph 9A of the Note Agreement is hereby amended
in its entirety to read as follows:

                  (iv) default in the performance, or breach, of any covenant of
         the Company or, in the event the Company Notes are not outstanding, the
         ESOT contained in paragraph 5 or 6 (other than a covenant a default in
         whose performance or whose breach is elsewhere in this paragraph 9A
         specifically dealt with), and (in the case of the covenants in
         paragraph 5 and in paragraph 6C) the continuance of such default or
         breach for a period of 30 days after the earlier of (x) knowledge
         thereof by the Company and (y) the date there shall have been given to
         the Company and the ESOT, by the holders of at least 25% in aggregate
         unpaid principal amount of the Notes at the time outstanding, a written
         notice specifying such default or breach and requiring it to be
         remedied and stating that such notice is a "Notice of Default"
         hereunder; or

         (c) The following definitions set forth in paragraph 12A of the Note
Agreement are hereby modified in their entirety so that such definitions, as so
modified, shall read as follows:
<PAGE>

         "CONSOLIDATED NET WORTH" means at any date the consolidated
stockholders, equity of the Company and its Consolidated Subsidiaries determined
as of such date (other than any amount attributable to stock which is required
to be redeemed or is redeemable at the option of the holder, if certain events
or conditions occur or exist or otherwise), excluding the effect thereon of
foreign currency translation gains and losses arising after June 30, 1996.

         "CREDIT AGREEMENT" means the Credit Agreement, dated as of October 20,
1997, among the Company, BetzDearborn Canada Inc., the banks parties thereto and
The Chase Manhattan Bank and The Chase Manhattan Bank of Canada as
Administrative Agents.

         "PERMITTED SECURITIZATION TRANSACTION" means any receivables purchase
or financing transaction pursuant to which the Company or a Subsidiary
(including a Bankruptcy Remote Subsidiary) sells or grants a security interest
in its accounts receivable or its Subsidiaries (and related rights and property
as described in the definition of Permitted Receivables Disposition) or an
undivided interest therein, provided that (i) the aggregate principal or
invested amount outstanding at any one time under all such facilities shall not
exceed $150,000,000 and (ii) the recourse of the purchaser or lender with
respect to such transaction for losses resulting from an obligor's failure to
pay a receivable due to credit problems is limited to such accounts receivable
or an interest therein, and the collections thereof.

         "TOTAL CAPITAL" means, at any date, the sum of (x) Consolidated Debt
plus (y) consolidated shareholders' equity of the Company and its Consolidated
Subsidiaries (including for this purpose any amount attributable to stock which
is required to be redeemed or is redeemable at the option of the holder, if
certain events or conditions occur or exist or otherwise), excluding the effect
thereon of foreign currency translation gains and losses arising after June 30,
1996, in each case determined at such date.

2. Representations and Warranties of the Company

         The Company hereby incorporates the representations and warranties
contained in Sections 4.01, 4.02 and 4.03 of the Credit Agreement (together with
all related defined terms) as in effect on the date hereof by reference herein
to the same extent as if set forth at length herein (the "Incorporated
Provisions") and hereby makes such representations and warranties (to the
knowledge of the Company, when applicable under the Credit Agreement) for the
benefit of Prudential in connection with the execution and delivery of this
Amendment; provided, that references in the Incorporated Provisions to "this
Agreement" and "Notes" shall be taken as references to the Note Agreement as
amended hereby and to the Notes outstanding thereunder. The Company represents
and warrants to Prudential that no Default or Event of Default exists under the
Note Agreement, both before and after giving effect to the provisions of this
Amendment.

3. Effectiveness of Amendment

         This Amendment shall become effective upon the execution and delivery
of a counterpart of this Amendment by all of the parties hereto.

4. Miscellaneous
<PAGE>
         (a) Capitalized terms not otherwise defined herein shall have the
meanings ascribed thereto in the Note Agreement.

         (b) On and after the effective date of this Amendment, each reference
in the Note Agreement and the Notes shall mean and be a reference to the Note
Agreement as amended by this Amendment.

         (c) The Note Agreement, as amended by this Amendment, is and shall
continue to be in full force and effect and is hereby in all respects ratified
and confirmed.

         (d) This Amendment may be executed in any number of counterparts and by
any combination of the parties hereto in separate counterparts, each of which
counterparts shall be an original and all of which taken together shall
constitute one and the same agreement.

         IN WITNESS WHEREOF, the parties have caused this Amendment to be
executed and delivered by their respective officers thereunto duly authorized as
of the date first above written.

                                      BETZDEARBORN INC. EMPLOYEE STOCK
                                      OWNERSHIP AND 401(K) TRUST
                                      ESTABLISHED BY THE BETZDEARBORN
                                      INC. EMPLOYEE STOCK OWNERSHIP AND
                                      401(K) PLAN

                                      By: PUTNAM FIDUCIARY TRUST COMPANY
                                          as Trustee

                                      By:
                                         ----------------------------------
                                         Title:

                                      BETZDEARBORN INC.

                                      By:
                                         ----------------------------------
                                         Title:

                                      THE PRUDENTIAL INSURANCE COMPANY
                                      OF AMERICA

                                      By:
                                         ----------------------------------
                                         Title:

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