-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, S2+Dz9Wotd1xtIGCxtz142q+i3fkSYlj+rqGpecXQ50oHhlI1sVBLYmNUyncSbCF Q5FZaqqgJ3iYV5gwgOnQ5g== 0000898431-97-000027.txt : 19970131 0000898431-97-000027.hdr.sgml : 19970131 ACCESSION NUMBER: 0000898431-97-000027 CONFORMED SUBMISSION TYPE: S-3 PUBLIC DOCUMENT COUNT: 9 FILED AS OF DATE: 19970130 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNITED STATES FILTER CORP CENTRAL INDEX KEY: 0000318025 STANDARD INDUSTRIAL CLASSIFICATION: REFRIGERATION & SERVICE INDUSTRY MACHINERY [3580] IRS NUMBER: 330266015 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: S-3 SEC ACT: 1933 Act SEC FILE NUMBER: 333-20753 FILM NUMBER: 97514695 BUSINESS ADDRESS: STREET 1: 40-004 COOK STREET CITY: PALM DESERT STATE: CA ZIP: 92211 BUSINESS PHONE: 6193400098 MAIL ADDRESS: STREET 1: 40-004 COOK STREET CITY: PALM DESERT STATE: CA ZIP: 92211 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN TOXXIC CONTROL INC DATE OF NAME CHANGE: 19910401 FORMER COMPANY: FORMER CONFORMED NAME: NOVAN ENERGY INC DATE OF NAME CHANGE: 19871227 S-3 1 As filed with the Securities and Exchange Commission on January 30, 1997 Registration No. 333- _________________________________________________________________ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________ FORM S-3 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 _________________________________ United States Filter Corporation (Exact name of registrant as specified in its charter) DELAWARE 3589 (State or other jurisdiction (Primary Standard Industrial of incorporation or organization) Classification Code Number) 33-0266015 (I.R.S. Employer Identification No.) 40-004 COOK STREET PALM DESERT, CALIFORNIA 92211 (619) 340-0098 (Address, including zip code, and telephone number, including area code, of registrant's principal executive offices) ___________________ DAMIAN C. GEORGINO VICE PRESIDENT, GENERAL COUNSEL AND SECRETARY UNITED STATES FILTER CORPORATION 40-004 COOK STREET PALM DESERT, CALIFORNIA 92211 (619) 340-0098 (Name, address, including zip code, and telephone number, including area code, of agent for service) ___________________ Copy to: JANICE C. HARTMAN KIRKPATRICK & LOCKHART LLP 1500 OLIVER BUILDING PITTSBURGH, PENNSYLVANIA 15222 (412) 355-6500 APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO PUBLIC: From time to time after this registration statement becomes effective. If the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans, please check the following box. ____ If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check the following box. X ____ If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ____ If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ____ If delivery of the prospectus is expected to be made pursuant to Rule 434, please check the following box. ____ ______________________________ CALCULATION OF REGISTRATION FEE TITLE OF AMOUNT PROPOSED PROPOSED AMOUNT EACH CLASS TO BE MAXIMUM MAXIMUM OF OF REGISTERED OFFERING AGGREGATE REGISTRA SECURITIES PRICE PER OFFERING PRICE -TION TO BE SHARE(1) (1) FEE REGISTERED Common stock, par value $.01 per 128,707 share shares $4,255,375 $33.0625 $1,290 (1) Estimated solely for the purpose of calculating the registration fee; computed in accordance with Rule 457(c) on the basis of the average of the high and low sales prices for the Common Stock on January 24, 1997 as reported on the New York Stock Exchange Composite Tape. ______________________________ THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(A) OF THE SECURITIES ACT OF 1933 OR UNTIL THIS REGISTRATION STATEMENT SHALL BECOME EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SAID SECTION 8(A), MAY DETERMINE. Information contained herein is subject to completion or amendment. A registration statement relating to these securities has been filed with the Securities and Exchange Commission. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This Prospectus shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State. SUBJECT TO COMPLETION DATED JANUARY 30, 1997 PROSPECTUS , 1997 128,707 SHARES UNITED STATES FILTER CORPORATION COMMON STOCK (PAR VALUE $.01 PER SHARE) ___________________ This prospectus provides for the offering of up to an aggregate of 128,707 shares (the "Shares") of the Common Stock, par value $.01 per share ("Common Stock"), of United States Filter Corporation (the "Company"). Of the Shares included herein, 75,786 were acquired by NI Industries, Inc. ("NI") on October 24, 1996, in consideration of the sale to the Company of substantially all of the assets of Norris Environmental Services, Inc. ("Norris") pursuant to the terms of an Asset Purchase Agreement dated as of October 24, 1996 (the "Asset Purchase Agreement"). The remaining 52,921 Shares were acquired by Rossi & Partners Ltd. ("R&P", and, together with NI, the "Selling Stockholders") on January 6, 1997 pursuant to the terms of a Letter Agreement dated as of May 30, 1996 between the Company and R&P (the "Letter Agreement") as partial compensation for R&P's role as financial adviser to the Company in connection with the Company s acquisition of the Process Equipment Division ( PED ) of United Utilities Plc on January 6, 1997. See "Selling Stockholders." The Shares may be offered or sold by or for the account of the Selling Stockholders from time to time or at one time on one - 1 - or more exchanges or otherwise, at prices and on terms to be determined at the time of sale, to purchasers directly or by or through brokers or dealers, including Donaldson, Lufkin & Jenrette Securities Corporation ("DLJ"), who may receive compensation in the form of discounts, commissions or concessions. The Selling Stockholders and any such brokers or dealers may be deemed to be "underwriters" within the meaning of the United States Securities Act of 1933, as amended (the "Securities Act"), and any discounts, concessions and commissions received by any such brokers and dealers may be deemed to be underwriting commissions or discounts under the Securities Act. The Company will not receive any of the proceeds from any sale of the Shares offered hereby. See "Use of Proceeds," "Selling Stockholders" and "Plan of Distribution." The Common Stock is listed on the New York Stock Exchange (the "NYSE") and traded under the symbol "USF." The last reported sale price of the Common Stock on the NYSE on January 29, 1997 was $34.00 per share. _____________________ SEE "RISK FACTORS" BEGINNING ON PAGE 5 FOR CERTAIN CONSIDERATIONS RELEVANT TO AN INVESTMENT IN THE COMMON STOCK. _____________________ THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. - 2 - AVAILABLE INFORMATION The Company is subject to the informational requirements of the United States Securities Exchange Act of 1934, as amended (the "Exchange Act"), and in accordance therewith files periodic reports, proxy solicitation materials and other information with the Securities and Exchange Commission (the "Commission"). Such reports, proxy solicitation materials and other information can be inspected and copied at the public reference facilities maintained by the Commission at Judiciary Plaza, 450 Fifth Street, N.W., Washington, D.C. 20549 and at the Commission's Regional Offices located at Seven World Trade Center, Suite 1300, New York, New York 10048 and Citicorp Center 500 West Madison Street, Suite 1400, Chicago, Illinois 60661-2511. Copies of such materials can be obtained from the Public Reference Section of the Commission, 450 Fifth Street, N.W., Washington, D.C. 20549, at prescribed rates. The Commission maintains a Web site that contains reports, proxy and information statements and other information regarding registrants that file electronically with the Commission. Such reports, proxy and information statements and other information may be found on the Commission's Web site address, http://www.sec.gov. The Common Stock is listed on the NYSE. Such reports, proxy solicitation materials and other information can also be inspected and copied at the NYSE at 20 Broad Street, New York, New York 10005. The Company has filed with the Commission a registration statement on Form S-3 (herein, together with all amendments and exhibits, referred to as the "Registration Statement") under the Securities Act with respect to the offering made hereby. This Prospectus does not contain all of the information set forth in the Registration Statement, certain portions of which are omitted in accordance with the rules and regulations of the Commission. Such additional information may be obtained from the Commission's principal office in Washington, D.C. as set forth above. For further information, reference is hereby made to the Registration Statement, including the exhibits filed as a part thereof or otherwise incorporated herein. Statements made in this Prospectus as to the contents of any documents referred to are not necessarily complete, and in each instance reference is made to such exhibit for a more complete description and each such statement is modified in its entirety by such reference. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE The following documents filed by the Company (File No. 1- 10728) with the Commission pursuant to the Exchange Act are incorporated by reference: The Company's Annual Report on Form 10-K for the fiscal year ended March 31, 1996; the Company's Quarterly Reports for the quarters ended June 30, 1996 and September 30, 1996; and the Company's Current Reports on Form 8-K - 3 - dated May 31, 1996 (as amended on Form 8-K/A dated June 28, 1996), June 10, 1996, June 27, 1996, July 15, 1996 (two such Current Reports), August 23, 1996, September 6, 1996, October 28, 1996 (as amended on Form 8-K/A dated December 19, 1996), November 6, 1996, December 2, 1996 and January 6, 1997; and the description of the Common Stock contained in the Company's Registration Statement on Form 8-A, as the same may be amended. All documents and reports subsequently filed by the Company pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act after the date of this Prospectus and prior to the termination of the offering made by this Prospectus shall be deemed to be incorporated by reference herein. Any statement contained herein or in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for purposes of this Prospectus to the extent that a statement contained herein or in any subsequently filed document which is or is deemed to be incorporated by reference herein modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this Prospectus. The Company will provide to each person to whom a copy of this Prospectus is delivered, upon the written or oral request of such person, without charge, a copy of any or all of the documents that are incorporated herein by reference, other than exhibits to such information (unless such exhibits are specifically incorporated by reference into such documents). Requests should be directed to Vice President, General Counsel and Secretary, United States Filter Corporation, 40-004 Cook Street, Palm Desert, California 92211 (telephone (619) 340-0098). THE COMPANY The Company is a leading global provider of industrial and municipal water and wastewater treatment systems, products and services, with an installed base of systems that the Company believes is one of the largest worldwide. The Company offers a single-source solution to industrial and municipal customers through what the Company believes is the industry's broadest range of cost-effective systems, products, services and proven technologies. In addition, the Company has one of the industry's largest networks of sales and service facilities. The Company capitalizes on its large installed base, extensive distribution network and manufacturing capabilities to provide customers with ongoing local service and maintenance. The Company is also a leading provider of service deionization and outsourced water services, including the operation of water and wastewater treatment systems at customer sites. The Company's principal executive offices are located at 40- 004 Cook Street, Palm Desert, California 92211, and its telephone - 4 - number is (619) 340-0098. References herein to the Company refer to United States Filter Corporation and its subsidiaries, unless the context requires otherwise. RISK FACTORS Prospective investors should consider carefully the following factors relating to the business of the Company, together with the other information and financial data included or incorporated by reference in this Prospectus, before acquiring the securities offered hereby. Information contained or incorporated by reference in this Prospectus includes "forward- looking statements" which can be identified by the use of forward-looking terminology such as "believes," "contemplates," "expects," "may," "will," "should," "would" or "anticipates" or the negative thereof or other variations thereon or comparable terminology. No assurance can be given that the future results covered by the forward-looking statements will be achieved. The following matters constitute cautionary statements identifying important factors with respect to such forward-looking statements, including certain risks and uncertainties, that could cause actual results to vary materially from the future results covered in such forward-looking statements. Other factors could also cause actual results to vary materially from the future results covered in such forward-looking statements. ACQUISITION STRATEGY In pursuit of its strategic objective of becoming the leading global single-source provider of water and wastewater treatment systems and services, the Company has, since 1991, acquired and successfully integrated more than 50 United States based and international businesses with strong market positions and substantial water and wastewater treatment expertise. The Company plans to continue to pursue acquisitions that complement its technologies, products and services, broaden its customer base and expand its global distribution network. The Company's acquisition strategy entails the potential risks inherent in assessing the value, strengths, weaknesses, contingent or other liabilities and potential profitability of acquisition candidates and in integrating the operations of acquired companies. Although the Company generally has been successful in pursuing these acquisitions, there can be no assurance that acquisition opportunities will continue to be available, that the Company will have access to the capital required to finance potential acquisitions, that the Company will continue to acquire businesses or that any business acquired will be integrated successfully or prove profitable. INTERNATIONAL TRANSACTIONS - 5 - The Company has made and expects it will continue to make acquisitions and expects to obtain contracts in markets outside the United States. While these activities may provide important opportunities for the Company to offer its products and services internationally, they also entail the risks associated with conducting business internationally, including the risk of currency fluctuations, slower payment of invoices, nationalization and possible social, political and economic instability. RELIANCE ON KEY PERSONNEL The Company's operations are dependent on the continued efforts of senior management, in particular Richard J. Heckmann, the Company's Chairman of the Board, President and Chief Executive Officer. There are no employment agreements between the Company and the members of its senior management, except Thierry Reyners, the Company's Executive Vice President--European Group. Should any of the senior managers be unable to continue in their present roles, the Company's prospects could be adversely affected. PROFITABILITY OF FIXED PRICE CONTRACTS A significant portion of the Company's revenues are generated under fixed price contracts. To the extent that original cost estimates are inaccurate, costs to complete increase, delivery schedules are delayed or progress under a contract is otherwise impeded, revenue recognition and profitability from a particular contract may be adversely affected. The Company routinely records upward or downward adjustments with respect to fixed price contracts due to changes in estimates of costs to complete such contracts. There can be no assurance that future downward adjustments will not be material. CYCLICALITY AND SEASONALITY The sale of capital equipment within the water treatment industry is cyclical and influenced by various economic factors including interest rates and general fluctuations of the business cycle. A significant portion of the Company's revenues are derived from capital equipment sales. While the Company sells capital equipment to customers in diverse industries and in global markets, cyclicality of capital equipment sales and instability of general economic conditions could have an adverse effect on the Company's revenues and profitability. The sale of water and wastewater distribution equipment and supplies is also cyclical and influenced by various economic - 6 - factors including interest rates, land development and housing construction industry cycles. Sales of such equipment and supplies are also subject to seasonal fluctuation in northern climates. As a result of recent acquisitions, the sale of water and wastewater distribution equipment and supplies is a significant component of the Company's business. Cyclicality and seasonality of water and wastewater distribution equipment and supplies sales could have an adverse effect on the Company's revenues and profitability. POTENTIAL ENVIRONMENTAL RISKS The Company's business and products may be significantly influenced by the constantly changing body of environmental laws and regulations, which require that certain environmental standards be met and impose liability for the failure to comply with such standards. The Company is also subject to inherent risks associated with environmental conditions at facilities owned, and the state of compliance with environmental laws, by businesses acquired by the Company. While the Company endeavors at each of its facilities to assure compliance with environmental laws and regulations, there can be no assurance that the Company's operations or activities, or historical operations by others at the Company's locations, will not result in cleanup obligations, civil or criminal enforcement actions or private actions that could have a material adverse effect on the Company. In that regard federal and state environmental regulatory authorities have commenced civil enforcement actions related to alleged multiple violations of applicable wastewater pretreatment standards by a wholly owned subsidiary of the Company at a Connecticut ion exchange regeneration facility acquired by the Company in October 1995 from Anjou International Company ("Anjou"). A grand jury investigation is pending which is believed to relate to the same conditions that were the subject of the civil actions. The Company has certain rights of indemnification from Anjou which may be available with respect to these matters. In addition, the Company's activities as owner and operator of certain hazardous waste treatment and recovery facilities are subject to stringent laws and regulations and compliance reviews. Failure of these facilities to comply with those regulations could result in substantial fines and the suspension or revocation of the facility's hazardous waste permit. In other matters, the Company has been notified by the United States Environmental Protection Agency that it is a potentially responsible party under the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA") at certain sites to which the Company or its predecessors allegedly sent waste in the past. It is possible that the Company could receive other such notices under CERCLA or analogous state laws in the future. The Company does not believe that its liability, if any, relating to such matters will be material. However, there can be no assurance that such matters - 7 - will not be material. In addition, to some extent, the liabilities and risks imposed by environmental laws on the Company's customers may adversely impact demand for certain of the Company's products or services or impose greater liabilities and risks on the Company, which could also have an adverse effect on the Company's competitive or financial position. COMPETITION The water and wastewater treatment industry is fragmented and highly competitive. The Company competes with many United States based and international companies in its global markets. The principal methods of competition in the markets in which the Company competes are technology, prompt availability of local service capability, price, product specifications, customized design, product knowledge and reputation, ability to obtain sufficient performance bonds, timely delivery, the relative ease of system operation and maintenance, and the prompt availability of replacement parts. In the municipal contract bid process, pricing and ability to meet bid specifications are the primary considerations. While no competitor is considered dominant, there are competitors which have significantly greater resources than the Company, which, among other things, could be a competitive disadvantage to the Company in securing certain projects. TECHNOLOGICAL AND REGULATORY CHANGE The water and wastewater treatment business is characterized by changing technology, competitively imposed process standards and regulatory requirements, each of which influences the demand for the Company's products and services. Changes in regulatory or industrial requirements may render certain of the Company's treatment products and processes obsolete. Acceptance of new products may also be affected by the adoption of new government regulations requiring stricter standards. The Company's ability to anticipate changes in technology and regulatory standards and to develop successfully and introduce new and enhanced products on a timely basis will be a significant factor in the Company's ability to grow and to remain competitive. There can be no assurance that the Company will be able to achieve the technological advances that may be necessary for it to remain competitive or that certain of its products will not become obsolete. In addition, the Company is subject to the risks generally associated with new product introductions and applications, including lack of market acceptance, delays in development or failure of products to operate properly. MUNICIPAL AND WASTEWATER MARKET - 8 - Completion of certain recent and pending acquisitions will increase significantly the percentage of the Company's revenues derived from municipal customers. While municipalities represent an important market in the water and wastewater treatment industry, contractor selection processes and funding for projects in the municipal sector entail certain additional risks not typically encountered with industrial customers. Competition for selection of a municipal contractor typically occurs through a formal bidding process which can require the commitment of significant resources and greater lead times than industrial projects. In addition, demand in the municipal market is dependent upon the availability of funding at the local level, which may be the subject of increasing pressure as local governments are expected to bear a greater share of the cost of public services. A company recently acquired by the Company, Zimpro Environmental, Inc. ("Zimpro"), is party to certain agreements (entered into in 1990 at the time Zimpro was acquired from unrelated third parties by the entities from which it was later acquired by the Company), pursuant to which Zimpro agreed, among other things, to pay the original sellers a royalty of 3.0% of its annual consolidated net sales of certain products in excess of $35.0 million through October 25, 2000. Under certain interpretations of such agreements, with which the Company disagrees, Zimpro could be liable for such royalties with respect to the net sales attributable to products, systems and services of certain defined wastewater treatment businesses acquired by Zimpro or the Company or the Company's other subsidiaries after May 31, 1996. The defined businesses include, among others, manufacturing machinery and equipment, and engineering, installation, operation and maintenance services related thereto, for the treatment and disposal of waste liquids, toxic waste and sludge. One of the prior sellers has revealed in a letter to the Company an interpretation contrary to that of the Company. The Company believes that it would have meritorious defenses to any claim based upon any such interpretation and would vigorously pursue the elimination of any threat to expand what it believes to be its obligations pursuant to such agreements. SHARES ELIGIBLE FOR FUTURE SALE The market price of the Common Stock could be adversely affected by the availability for public sale of shares held on January 15, 1997 by security holders of the Company, including: (i) up to 3,750,093 shares which may be delivered by Laidlaw Inc. or its affiliates ("Laidlaw"), at Laidlaw's option in lieu of cash, at maturity pursuant to the terms of 5-3/4% Exchangeable Notes due 2000 of Laidlaw (the amount of shares or cash delivered or paid to be dependent within certain limits upon the value of the Common Stock at maturity); (ii) 7,636,363 shares issuable upon conversion of the Company's 6% Convertible Subordinated - 9 - Notes due 2005 at a conversion price of $18.33 per share of Common Stock; (iii) 9,113,924 shares issuable upon conversion of the Company's 4-1/2% Convertible Subordinated Notes at a conversion price of $39.50 per share of Common Stock; (iv) 2,785,277 outstanding shares that are currently registered for sale under the Securities Act of 1933, as amended (the "Securities Act"), pursuant to two shelf registration statements; and (v) 2,780,522 shares which are subject to agreements pursuant to which the holders have certain rights to request the Company to register the sale of such holders' Common Stock under the Securities Act and/or, subject to certain conditions, to include certain percentages of such shares in other registration statements filed by the Company (1,980,000 of which shares also may be sold from time to time by the holder thereof pursuant to Rule 144 under the Securities Act). In addition, the Company has registered for sale under the Securities Act 3,454,068 shares which may be issuable by the Company from time to time in connection with acquisitions of businesses from third parties. USE OF PROCEEDS The Selling Stockholders will receive all of the net proceeds from any sale of the Shares offered hereby, and none of such proceeds will be available for use by the Company or otherwise for the Company's benefit. SELLING STOCKHOLDERS The following table sets forth certain information regarding beneficial ownership of shares of Common Stock by the Selling Stockholders as of January 30, 1997, and as adjusted to reflect the sale of the Shares by the Selling Stockholders. The respective number of shares indicated as to each Selling Stockholder constitutes less than one percent of the shares of Common Stock outstanding as of such date. Shares Shares Maximum Beneficially Selling Beneficially Shares to Owned Stockholders Owned be Sold As Adjusted ____________ _____ _______ ___________ NI Industries, Inc. 75,786 75,786 -0- Rossi & Partners Ltd. 65,579* 52,921 12,658* ____________________ * Includes or represents 12,658 shares of Common Stock issuable upon conversion of 4-1/2% Convertible Subordinated Notes of the Company. Other than R&P having acted as financial adviser to the Company with respect to the acquisition of PED and NI's ownership - 10 - of Norris Environmental Services, Inc., from which the Company purchased assets pursuant to the Asset Purchase Agreement, the Selling Stockholders do not have, and within the past three years did not have, any position, office or other material relationship with the Company or any of its predecessors or affiliates. PLAN OF DISTRIBUTION The Shares offered hereby may be sold from time to time or at one time by or for the account of the Selling Stockholders on one or more exchanges or otherwise; directly to purchasers in negotiated transactions; by or through brokers or dealers, which may include DLJ, in ordinary brokerage transactions or transactions in which a broker or dealer, which may include DLJ, solicits purchasers; in block trades in which brokers or dealers, which may include DLJ, will attempt to sell Shares as agent but may position and resell a portion of the block as principal; in transactions in which a broker or dealer, which may include DLJ, purchases as principal for resale for its own account; or in any combination of the foregoing methods. Shares may be sold at a fixed offering price, which may be changed, at the prevailing market price at the time of sale, at prices related to such prevailing market price or at negotiated prices. Brokers or dealers may arrange for others to participate in any such transaction and may receive compensation in the form of discounts, commissions or concessions payable by the Company and/or the purchasers of Shares. If required at the time that a particular offer of Shares is made, a supplement to this Prospectus will be delivered that describes any material arrangements for the distribution of Shares and the terms of the offering, including, without limitation, any discounts, commissions or concessions and other items constituting compensation from the Selling Stockholder or otherwise. The Company may agree to indemnify participating brokers or dealers, which may include DLJ, against certain civil liabilities, including liabilities under the Securities Act. The Company and NI are obligated to indemnify each other against certain civil liabilities, including liabilities arising out of the Securities Act. The Selling Stockholders and any such brokers or dealers may be deemed to be "underwriters" within the meaning of the Securities Act, in which event any discounts, commissions or concessions received by such brokers or dealers and any profit on the resale of the Shares purchased by such brokers or dealers may be deemed to be underwriting commissions or discounts under the Securities Act. The Company has informed the Selling Stockholders that the provisions of Rules 10b-6 and 10b-7 under the Exchange Act may apply to their sales of Shares and has furnished the Selling Stockholders with a copy of these rules. The Company also has - 11 - advised the Selling Stockholders of the requirement for delivery of a prospectus in connection with any sale of the Shares. Any Shares covered by this Prospectus which qualify for sale pursuant to Rule 144 under the Securities Act may be sold under Rule 144 rather than pursuant to this Prospectus. There is no assurance that the Selling Stockholders will sell any or all of the Shares. The Selling Stockholders may transfer, devise or gift such Shares by other means not described herein. The Company has agreed to reimburse NI to the extent the net proceeds per Share from the sale of Shares owned by it and sold on or prior to February 18, 1997 do not equal $34.64, and to purchase the Shares owned by NI which have not been sold pursuant to the Registration Statement on or before February 18, 1997 at $34.64 per Share. The Company will pay all of the expenses, including, but not limited to, fees and expenses of compliance with state securities or "blue sky" laws, incident to the registration of the Shares. VALIDITY OF COMMON STOCK The validity of the Shares of Common Stock offered hereby will be passed upon for the Company by Damian C. Georgino, Vice President, General Counsel and Secretary of the Company. INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS The consolidated financial statements of United States Filter Corporation and its subsidiaries as of March 31, 1995 and 1996 and for each of the three years in the period ended March 31, 1996, except for the consolidated financial statements of Davis Water & Waste Industries, Inc. and its subsidiaries as of April 30, 1996 and 1995 and for each of the three years in the period ended April 30, 1996, have been audited by KPMG Peat Marwick LLP, independent certified public accountants, as stated in their report incorporated by reference herein. The consolidated financial statements of Davis Water & Waste Industries, Inc. and its subsidiaries, which have been consolidated with those of the Company, have been audited by Price Waterhouse LLP as stated in their report incorporated herein by reference. Such financial statements of the Company and its consolidated subsidiaries are incorporated by reference herein in reliance upon the report of such firms given on the authority of said firms as experts in accounting and auditing. The combined financial statements of the Systems and Manufacturing Group of Wheelabrator Technologies Inc. as of December 31, 1994 and 1995 and for each of the years in the three year period ended December 31, 1995 have been incorporated by - 12 - reference herein in reliance upon the report of KPMG Peat Marwick LLP, independent certified public accountants, which report is incorporated by reference herein, and upon the authority of said firm as experts in accounting and auditing. The aggregated financial statements of the United Utilities Plc Process Equipment Division as of March 31, 1996 and 1995 and for each of the years in the two-year period ended March 31, 1996, have been incorporated by reference herein in reliance upon the report of KPMG Audit Plc, independent chartered accountants, which report is incorporated by reference herein, and upon the authority of said firm as experts in accounting and auditing. The consolidated financial statements of Davis Water & Waste Industries, Inc. incorporated in this Prospectus by reference to the audited historical financial statements included in United States Filter Corporation's Form 8-K dated June 27, 1996 have been so incorporated in reliance on the report of Price Waterhouse LLP, independent accountants, given on the authority of said firm as experts in auditing and accounting. The consolidated financial statements of Zimpro Environmental, Inc. as of December 31, 1995 and 1994 and for each of the three years in the period ended December 31, 1995 incorporated herein by reference, have been audited by Ernst & Young LLP, independent auditors, as set forth in their report thereon incorporated by reference elsewhere herein, and are included in reliance upon such report given upon the authority of such firm as experts in accounting and auditing. The audited financial statements of WaterPro Supplies Corporation as of December 31, 1995 and for the period from April 7, 1995 to December 31, 1995 incorporated by reference in this prospectus have been audited by Arthur Andersen LLP, independent public accountants as indicated in their report with respect thereto, and are incorporated by reference herein in reliance upon the authority of said firm as experts in giving said report. - 13 - NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS, AND, IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED. THIS PROSPECTUS 128,707 SHARES DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY UNITED STATES FILTER CORPORATION SECURITIES OTHER THAN THE SECURITIES TO WHICH IT RELATES OR AN OFFER TO SELL COMMON STOCK OR THE SOLICITATION OF AN OFFER TO BUY SUCH SECURITIES IN ANY CIRCUMSTANCES IN WHICH SUCH OFFER OR SOLICITATION IS UNLAWFUL. NEITHER THE DELIVERY OF THIS PROSPECTUS NOR ANY SALE MADE HEREUNDER SHALL, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY SINCE THE DATE HEREOF OR THAT THE INFORMATION CONTAINED HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO ITS DATE. ________________ _____________ PROSPECTUS TABLE OF CONTENTS ________________ PAGE Available Information . . . 3 Incorporation of Certain Documents by Reference . 3 The Company . . . . . . . . 4 Risk Factors . . . . . . . 5 Use of Proceeds . . . . . 10 Selling Stockholders . . 10 Plan of Distribution . . 11 Validity of Common Stock 12 ___________, 1997 Independent Certified Public Accountants . . . . . . . 12 PART II INFORMATION NOT REQUIRED IN PROSPECTUS ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION. The estimated expenses to be paid by the Company in connection with the distribution of the securities being registered are as follows: Securities and Exchange Commission Filing Fee . . . . . . . . . . . $ 1,290 Accounting Fees and Expenses . . $ 5,000 Legal Fees and Expenses . . . . . $ 5,000 Miscellaneous Expenses . . . . . $ 710 Total . . . . . . $12,000 ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS. The Certificate of Incorporation and the By-laws of the Company provide for the indemnification of directors and officers to the fullest extent permitted by the General Corporation Law of the State of Delaware, the state of incorporation of the Company. Section 145 of the General Corporation Law of the State of Delaware authorizes indemnification when a person is made a party or is threatened to be made a party to any proceeding by reason of the fact that such person is or was a director, officer, employee or agent of the corporation or is or was serving as a director, officer, employee or agent of another enterprise, at the request of the corporation, and if such person acted in good faith and in a manner reasonably believed by him or her to be in, or not opposed to, the best interests of the corporation. With respect to any criminal proceeding, such person must have had no reasonable cause to believe that his or her conduct was unlawful. If it is determined that the conduct of such person meets these standards, he or she may be indemnified for expenses incurred (including attorney's fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him or her in connection with such proceeding. If such a proceeding is brought by or in the right of the corporation (i.e., a derivative suit), such person may be indemnified against expenses actually and reasonably incurred if he or she acted in good faith and in a manner reasonably believed by him or her to be in, or not opposed to, the best interests of the corporation. There can be no indemnification with respect to II - 1 any matter as to which such person is adjudged to be liable to the corporation; however, a court may, even in such case, allow such indemnification to such person for such expenses as the court deems proper. Where such person is successful in any such proceeding, he or she is entitled to be indemnified against expenses actually and reasonably incurred by him or her. In all other cases, indemnification is made by the corporation upon determination by it that indemnification of such person is proper because such person has met the applicable standard of conduct. The Company maintains an errors and omissions liability policy for the benefit of its officers and directors, which may cover certain liabilities of such individuals to the Company. ITEM 16. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES. (a) Exhibits. The following exhibits are filed as part of this registration statement: EXHIBIT NUMBER DESCRIPTION ------- ----------- 5.01 Opinion of Damian C. Georgino as to the legality of the securities being registered 23.01 Consent of Damian C. Georgino (included in Exhibit 5.01) 23.02 Consents of KPMG Peat Marwick LLP and KPMG Audit Plc 23.03 Consent of Price Waterhouse LLP 23.04 Consent of Ernst & Young LLP 23.05 Consent of Arthur Andersen LLP 24.01 Powers of Attorney (included on signature page of this registration statement) 99.01 Letter Agreement dated as of May 30, 1996 between United States Filter Corporation and Rossi & Partners Ltd. 99.02 Option, Transfer and Registration Agreement dated as of October 24, 1996 between United States Filter Corporation and NI Industries, Inc. 99.03 Letter Agreement between NI Industries, Inc. and United States Filter Corporation II - 2 ITEM 17. UNDERTAKINGS. The undersigned registrant hereby undertakes: (1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement: (i) To include any prospectus required by section 10(a)(3) of the Securities Act of 1933; (ii) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement; (iii) To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement. Provided, however, that paragraphs (i) and (ii) do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement. (2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at the time shall be deemed to be the initial bona fide offering thereof. II - 3 (3) To remove from registration by means of a post- effective amendment any of the securities being registered which remain unsold at the termination of the offering. (4) That, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant's annual report pursuant to section 13(a) or section 15(d) of the Securities Exchange Act of 1934 that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. II - 4 SIGNATURES Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-3 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Palm Desert, State of California, on January 30, 1997. UNITED STATES FILTER CORPORATION By: /s/ Richard J. Heckmann --------------------------------- Richard J. Heckmann Chairman of the Board, President and Chief Executive Officer KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Kevin L. Spence and Damian C. Georgino, and each of them, his true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any and all amendments to this Registration Statement, and to file the same, with all exhibits thereto, and other documentation in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in or about the premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof. Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated. Signature Capacity Date --------- -------- ----- /s/ Richard J. Heckmann Chairman of the January 30, 1997 -------------------------- Board, President Richard J. Heckmann and Chief Executive Officer (Principal Executive Officer) and a Director /s/ Kevin L. Spence Vice President January 30, 1997 -------------------------- and Chief Kevin L. Spence Financial Officer (Principal Financial and Accounting Officer) /s/ Michael J. Reardon Executive Vice January 30, 1997 -------------------------- President and a Michael J. Reardon Director /s/ Tim L. Traff Senior Vice January 30, 1997 -------------------------- President and a Tim L. Traff Director /s/ James E. Clark Director January 30, 1997 -------------------------- James E. Clark /s/ John L. Diederich Director January 30, 1997 -------------------------- John L. Diederich /s/ Robert S. Hillas Director January 30, 1997 -------------------------- Robert S. Hillas /s/ Arthur B. Laffer Director January 30, 1997 -------------------------- Arthur B. Laffer /s/ Alfred E. Osborne ,Jr. Director January 30, 1997 -------------------------- Alfred E. Osborne, Jr. Signature Capacity Date --------- -------- ----- /s/ J. Danforth Quayle Director January 30, 1997 -------------------------- J. Danforth Quayle /s/ C. Howard Wilkins, Jr. Director January 30, 1997 ------------------------- C. Howard Wilkins, Jr. EXHIBIT INDEX EXHIBIT DESCRIPTION SEQUENTIAL PAGE NUMBER ----------- NUMBER ------- --------------- 5.01 Opinion of Damian C. Georgino as to the legality of the securities being registered 23.01 Consent of Damian C. Georgino (included in Exhibit 5.01) 23.02 Consents of KPMG Peat Marwick LLP and KPMG Audit Plc 23.03 Consent of Price Waterhouse LLP 23.04 Consent of Ernst & Young LLP 23.05 Consent of Arthur Andersen LLP 24.01 Powers of Attorney (included on signature page of this registration statement) 99.01 Letter Agreement dated as of May 30, 1996 between United States Filter Corporation and Rossi & Partners Ltd. 99.02 Option, Transfer and Registration Agreement dated as of October 24, 1996 between United States Filter Corporation and NI Industries, Inc. 99.03 Letter Agreement between NI Industries, Inc. and United States Filter Corporation EX-5 2 Exhibit 5.01 January 30, 1997 United States Filter Corporation 40-004 Cook Street Palm Desert, California 92211 Ladies and Gentlemen: I am Vice President, General Counsel and Secretary to United States Filter Corporation, a Delaware corporation (the "Company"), and have acted as counsel to the Company in connection with the Registration Statement on Form S-3 (the "Registration Statement"), filed by the Company on January 30, 1997, with the Securities and Exchange Commission pursuant to the Securities Act of 1933, as amended, with respect to an aggregate of up to 128,707 shares (the "Selling Stockholders' Shares") of the Company's Common Stock, par value $.01 per share, that may be offered or sold from time to time by the selling stockholders identified in the Registration Statement. I am familiar with the Registration Statement and have reviewed the Company's Certificate of Incorporation and By-laws, each as amended and restated. I have also examined such other public and corporate documents, certificates, instruments and corporate records, and such questions of law, as I have deemed necessary for purposes of expressing an opinion on the matters hereinafter set forth. In all examinations of documents, instruments and other papers, I have assumed the genuineness of all signatures on original and certified documents and the conformity to original and certified documents of all copies submitted to me as conformed, photostatic or other copies. On the basis of the foregoing, I am of the opinion that the Selling Stockholders' Shares have been validly issued and are fully paid and non-assessable. I consent to the filing of this opinion as Exhibit 5.01 to the Registration Statement and to the use of my name in the Prospectus forming a part thereof under the caption "Validity of Common Stock". Yours truly, /s/ Damian C. Georgino EX-23 3 Exhibit 23.02 1 of 3 INDEPENDENT AUDITORS' CONSENT To the Board of Directors and Shareholders United States Filter Corporation: We consent to the use of our report incorporated by reference herein and the reference to our firm under the heading "Independent Certified Public Accountants" in the Prospectus. /s/ KPMG Peat Marwick LLP KPMG Peat Marwick LLP Orange County, California January 30, 1997 Exhibit 23.02 2 of 3 INDEPENDENT AUDITORS' CONSENT To the Board of Directors and Shareholders United States Filter Corporation: We consent to the use of our report incorporated by reference herein and the reference to our firm under the heading "Independent Certified Public Accountants" in the Prospectus. /s/ KPMG Peat Marwick LLP KPMG Peat Marwick LLP Chicago, Illinois January 30, 1997 Exhibit 23.02 3 of 3 CONSENT OF INDEPENDENT CHARTERED ACCOUNTANTS To the Board of Directors and Shareholders United Utilities PLC We consent to the use of our report dated 16 October 1996 relating to the aggregated financial statements of the United Utilities PLC Process Division as of 31 March 1996 and 1995 and for each of the years in the two year period ended 31 March 1996 and the reference to our firm under the heading "Independent Certified Public Accountants" in the prospectus to be dated 30 January 1997. /s/ KPMG Audit Plc KPMG Audit Plc Chartered Accountants Manchester Registered Auditors 30 January 1997 EX-23 4 Exhibit 23.03 CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the incorporation by reference in the Prospectus constituting part of this Registration Statement on Form S-3 of United States Filter Corporation of our report dated June 13, 1996 relating to the consolidated financial statements of Davis Water & Waste Industries, Inc., which appears in the Current Report on Form 8-K of United States Filter Corporation dated June 27, 1996. We also consent to the reference to us under the heading "Independent Certified Public Accountants" in such Prospectus. Price Waterhouse LLP Atlanta, Georgia January 30, 1997 EX-23 5 Exhibit 23.04 CONSENT OF INDEPENDENT AUDITORS We consent to the reference to our firm under the caption "Independent Certified Public Accountants" in the Registration Statement (Form S-3) and related Prospectus of United States Filter Corporation for the registration of 128,707 shares of its common stock and to the incorporation by reference therein of our report dated February 8, 1996, except for Notes 4 and 10, as to which the date is May 10, 1996, with respect to the consolidated financial statements of Zimpro Environmental, Inc. included in the Current Report on Form 8-K of United States Filter Corporation dated May 31, 1996, filed with the Securities and Exchange Commission. /s/ Ernst & Young LLP Ernst & Young LLP Minneapolis, Minnesota January 30, 1997 EX-23 6 Exhibit 23.05 CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS As independent public accountants, we hereby consent to the incorporation by reference in this registration statement of our report dated February 8, 1996 included in United States Filter Corporation's Report on Form 8-K dated November 6, 1996 and to all references to our Firm included in this registration statement. /s/ Arthur Andersen LLP Arthur Andersen LLP Minneapolis, Minnesota January 30, 1997 EX-99 7 Exhibit 99.01 Strictly Private & Confidential _______________________________ Messrs. Rossi & Partners Ltd. 10th Floor, Bowater House West 114 Knightsbridge London SW1X7LT United Kingdom For the attention of Mr. Francesco M. Rossi ___________________________________________ 30 May 1996 Dear Sirs: Further to our meeting in Manchester on May 23 and 24, the following outlines our agreement with respect to the engagement by United States Filter Corporation ("USF") of Rossi & Partners Ltd. ("R&P") as financial adviser in relation to the possible acquisition of the Process Equipment Division of United Utilities ("UU") which includes the following companies: Envirex, Wallace & Tiernan, General Filter, Edwards & Jones, Asdor, Consolidated Electric and Acumem. R&P agrees to work exclusively on behalf of USF with regard to the below outlined transaction. 1. Scope of work The tasks undertaken by R&P, in relation to this transaction, may include all or any of the following. a. advice on the strategic matters to be addressed in relation to the proposed acquisition; b. advice during the initial discussions with UU; c. advice on the terms and conditions of the transaction; d. assistance in the negotiations with the Board of UU and its advisers. 2. Remuneration In connection with these services, USF agrees to pay an initial retainer of US$20,000, payable on the signing of this letter. Funds paid to date will be credited against the $20,000. In the event USF, herewith intended as USF and or any of its subsidiaries, enters into a definitive agreement to acquire all or parts of UU's Process Equipment Division which subsequently results in an acquisition transaction, USF agrees to pay R&P or a company indicated by R&P, a transaction fee of 1% based on the aggregate transaction value, payable in cash upon closing. It is understood that such fee may be paid by a party other than USF. For the purpose of this letter, the term "transaction value" means an amount equal to the sum of any cash consideration paid or the aggregate fair market value of any securities issued. USF hereby agrees to pay all disbursements, travel and other outlays or expenses reasonably incurred by R&P in connection with this appointment, such expenses to be approved in advance. USF acknowledges that it will be responsible for all other expenses in connection with the appointment, including, inter alia, all accountancy, legal and other professional expenses, including legal advice, but in all cases to be approved in advance in writing. 3. Indemnification Clause USF agrees that it will indemnify and hold harmless R&P, its directors, employees, agents and controlling persons (each being an "Indemnified Party") from and against all losses, claims, damages, liabilities and expenses, joint or several (including all reasonable fees of counsel and other expenses incurred by any Indemnified Party in connection with the preparation for, or defense of, any claim, action or proceeding, whether or not resulting in any liability), to which such Indemnified Party may become subject under any applicable laws or otherwise, related to or arising out of the engagement of R&P, pursuant to this letter. USF will not be liable under the foregoing indemnification provision to the extent that any loss, claim, damage, liability or expense is found to have resulted primarily from R&P's bad faith or gross negligence. 4. Termination This agreement shall remain in force until further notice. However, USF may terminate the agreement without cause at any time by written notice to R&P. R&P reserves the right to terminate their engagement hereunder at any time and without liability or continuing obligation to USF. Termination of this agreement by any party shall not affect either R&P's indemnification or R&P's right to receive fees if the acquisition of the Process Equipment Division takes place within two years of the termination date of this agreement. 5. Governing Law This agreement shall in all respects be governed by, and construed and enforced in accordance with the English laws. 6. Arbitration Clause Any dispute arising with respect to, or in connection with, our engagement shall be finally decided by a panel of three arbitrators in accordance with the Rules of International Arbitration of the Chamber of Commerce of Geneva, it being understood that the chairman of any panel shall be designed directly by the above mentioned Chamber of Commerce and the other two panelists shall be appointed one each by each of the parties. In case an agreement is not reached the appointment of a panelist shall be made by the above Chamber of Commerce. Unless otherwise agreed in writing to by the parties, the arbitrators shall be fluent in English language. The cost of any arbitration will be assessed against the unsuccessful party and the arbitrators will be required to make such cost part of any ruling issued by them. Yours faithfully, /s/ Richard J. Heckmann Richard J. Heckmann Accepted as of the date first written above. Rossi & Partners Ltd. By /s/ Francesco M. Rossi EX-99 8 Exhibit 99.02 Option, Transfer and Registration Agreement between United States Filter Corporation and NI Industries, Inc. dated as of October 24, 1996 Option, Transfer and Registration Agreement between United States Filter Corporation, and NI Industries, Inc. dated as of October 24, 1996 TABLE OF CONTENTS _________________ PAGE ____ 1. Certain Definitions . . . . . . . . . . . . . . . . 1 2. Restrictions on Transferability . . . . . . . . . . 2 3. Restrictive Legends . . . . . . . . . . . . . . . . 2 4. Notice of Proposed Transfers . . . . . . . . . . . . 3 5. Company Registration . . . . . . . . . . . . . . . . 4 6. Expenses of Registration . . . . . . . . . . . . . . 4 7. Indemnification . . . . . . . . . . . . . . . . . . 5 8. Obligations of the Company . . . . . . . . . . . . . 6 9. Securities Law Compliance . . . . . . . . . . . . . 7 10. Standoff Agreement . . . . . . . . . . . . . . . . 7 11. Rule 144 Requirements . . . . . . . . . . . . . . . 7 12. Put Right and Call Offer . . . . . . . . . . . . . 7 13. Amendment . . . . . . . . . . . . . . . . . . . . . 8 14. Investment Representation. . . . . . . . . . . . . . 8 15. Notices, etc.. . . . . . . . . . . . . . . . . . . . 9 16. Entire Agreement; Severability . . . . . . . . . . . 9 17. Governing Law . . . . . . . . . . . . . . . . . . . 9 18. Counterparts . . . . . . . . . . . . . . . . . . . . 9 OPTION, TRANSFER AND REGISTRATION AGREEMENT ___________________________________________ This Option, Transfer and Registration Agreement ("Agreement") is entered into as of October 24, 1996 among United States Filter Corporation, a Delaware corporation (the "Company"), and NI Industries, Inc., a Delaware corporation ("NI"), with reference to certain shares of Common Stock, $.01 par value (the "Common Stock"), of the Company. 1. Certain Definitions. As used in this Agreement, the following terms shall have the following respective meanings: "Commission" shall mean the United States Securities and Exchange Commission or any other federal agency at the time administering the Securities Act. "Exchange Act" shall mean the United States Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time and any successor thereto. "Registrable Shares" shall mean the Shares held by NI; provided, however, that Shares shall be treated as Registrable Shares only if and so long as they have not been (i) sold in a public distribution or a public securities transaction pursuant to an effective registration statement under the Securities Act, or (ii) sold in a transaction exempt from the registration and prospectus delivery requirements of the Securities Act as a result of which all transfer restrictions and restrictive legends with respect thereto are removed upon the consummation of such sale. The terms "register", "registered" and "registration" refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the declaration or ordering of the effectiveness of such registration statement. "Registration Expenses" shall mean all registration, qualification and filing fees, fees and disbursements of counsel for the Company, accounting fees incident to any such registration, state securities or blue sky fees and expenses, transfer agent and registrar fees, reasonable fees and expenses of any special experts retained by the Company in connection with any such registration, and any listing fees. "Restricted Shares" shall mean the shares of the Company required to bear the legend set forth in paragraph (a) of Section 3 hereof. "Rule 144" shall mean Rule 144 promulgated under the Securities Act, as such Rule shall be in effect at the time, and any successor thereto. "Securities Act" shall mean the United States Securities Act of 1933, as amended, and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time. "Selling and Distribution Expenses" shall mean all underwriting discounts, selling commissions and stock transfer taxes attributable to the sale of Shares by NI and any out-of-pocket expenses of NI incurred in connection with the registration of Shares, including, without limitation, fees and disbursements of counsel for NI if such counsel is not also counsel for the Company, printing expenses and marketing expenses. "Shares" shall mean the 75,786 shares of Common Stock issued to or for the benefit of NI on the date hereof, as that number shall be adjusted for indemnification pursuant to the Asset Purchase Agreement, and any shares of Common Stock issued in respect thereof in connection with stock splits, stock dividends or distributions, or combinations or similar recapitalizations, on or after the date hereof. "Asset Purchase Agreement" shall mean the Asset Purchase Agreement dated as of October 23, 1996 by and among the Company, Norris Environmental Services, Inc. ("Norris") and U.S. Filter Recovery Services (California), Inc. 2. Restrictions on Transferability. The Shares may be sold, assigned, transferred or pledged only in accordance with the conditions specified in this Agreement, which conditions are intended to ensure compliance with the provisions of the Securities Act. 3. Restrictive Legends. (a) Each certificate representing Shares shall (unless otherwise permitted by subsection (c) of this Section 3 or Section 4) be stamped with the following legend: THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933. SUCH SECURITIES MAY NOT BE SOLD, TRANSFERRED OR PLEDGED IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS THE COMPANY RECEIVES AN OPINION OF COUNSEL (WHICH MAY BE COUNSEL FOR THE COMPANY) REASONABLY ACCEPTABLE TO IT STATING THAT SUCH REGISTRATION IS NOT REQUIRED. 2 (b) Each certificate representing Shares shall also be stamped with the following legend: THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND CONDITIONS OF THE OPTION, TRANSFER AND REGISTRATION AGREEMENT BETWEEN NI AND THE COMPANY WHICH INCLUDES RESTRICTIONS ON CERTAIN SALES OF THE SECURITIES. COPIES OF THE AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY. (c) NI consents to the Company's making a notation on its records and giving instructions to any transfer agent of the Company in order to implement the restrictions on transfer established in this Agreement. The legend placed on any certificate pursuant to Section 3(a) and any notations or instructions with respect to the Restricted Shares represented by such certificate will be promptly removed, and the Company will promptly issue a certificate without such legend to NI (i) if such Restricted Shares are disposed of pursuant to an effective registration statement under the Securities Act, or (ii) if NI satisfies the requirements of Rule 144(k) and, where reasonably determined necessary by the Company, provides the Company with an opinion of counsel (which may be an opinion of NI's in-house counsel), both such counsel and such opinion being reasonably satisfactory to the Company, to the effect that (A) NI meets the requirements of Rule 144(k) or (B) a public sale, transfer or assignment of the Shares may be made without registration under the Securities Act. 4. Notice of Proposed Transfers. The holder of each certificate representing Restricted Shares by acceptance thereof agrees to comply in all respects with the provisions of this Section 4. Prior to any proposed sale, assignment, transfer or pledge of any Restricted Shares, unless there is in effect a registration statement under the Securities Act covering the proposed transfer, NI shall notify the Company in writing of its intention to effect such sale, assignment, transfer or pledge and the intended manner and circumstances thereof in reasonable detail. If requested by the Company, any such notice shall be accompanied at NI's expense by a written opinion of legal counsel who is, and whose legal opinion shall be, reasonably satisfactory to the Company, addressed to the Company, to the effect that the proposed transfer of Restricted Shares may be effected without registration under the Securities Act, and by such certificates and other information as the Company may reasonably require to confirm such opinion, whereupon NI shall be entitled to transfer such Restricted Shares in the manner contemplated by such opinion. Each certificate evidencing the Restricted Shares transferred as above provided shall bear, except if such transfer is made pursuant to Rule 144, the appropriate restrictive legend 3 set forth in Section 3(a) above, except that such certificate shall not bear such restrictive legend if in the opinion of counsel for NI and the Company such legend is not required in order to establish compliance with any provisions of the Securities Act. So long as such restrictive legend shall be required to remain on any such certificates, the transfer of the Restricted Shares represented thereby shall be conditioned upon the transferee thereof becoming a party hereto (except that such transferee shall have no rights under Sections 5 or 12 hereof). 5. Company Registration. (a) Notice of Registration. If, at any time or from time to time, the Company shall determine to register any of its Common Stock, either for its own account or the account of a security holder or holders exercising their respective demand registration rights, for distribution pursuant to an underwritten offering, the Company will (i) promptly give to NI written notice thereof, and (ii) include in such registration (and any related qualification under blue sky laws or other compliance), subject to Section 5(b), all the Registrable Shares if so requested in writing by NI within 30 days after their receipt of such written notice from the Company. (b) Underwriting. The right of NI to registration pursuant to this Section 5 shall be conditioned upon NI'S participation in such underwriting and the inclusion of the Registrable Shares in the underwriting to the extent provided herein. NI shall (together with the Company and the other holders distributing shares of Common Stock through such underwriting), if required by the managing underwriter of such offering, enter into an underwriting agreement in customary form with the managing underwriter selected for such underwriting by the Company (or by the holders who have demanded such registration), and shall provide to the Company upon written request such information referenced in Section 5(d) hereof as may be specified in such request. Notwithstanding any other provision of this Section 5, if the managing underwriter in its sole discretion determines that marketing factors require a limitation of the number of shares to be underwritten, the managing underwriter may limit the Registrable Shares to be included in such registration. The Company shall so advise NI and the holders distributing their securities through such underwriting pursuant to piggyback registration rights similar to this Section 5, and the number of Registable Shares and other securities that may be included in such registration and underwriting by NI and such other holders shall be reduced by the number of shares determined by the managing underwriter not to be included in such registration, such cutback to be allocated among NI such other holders in proportion, as nearly as practicable, to the respective amounts of the Registrable Shares and such other 4 securities. If NI disapproves of the terms of any such underwriting, NI may elect to withdraw therefrom by written notice to the Company and the managing underwriter. (c) Right to Terminate Registration. The Company shall have the right to terminate or withdraw any registration under this Section 5 prior to the effectiveness of such registration whether or not NI has elected to include securities in such registration. 6. Expenses of Registration. All Registration Expenses incurred in connection with any registration pursuant to Section 5 shall be borne by the Company. All Selling and Distribution Expenses included in such registration attributable to the Registrable Shares registered on behalf of NI shall be borne by NI pro rata on the basis of the number of Registrable Shares so registered. 7. Indemnification. (a) The Company will indemnify NI, each of its officers, directors, partners, employees and agents and each person controlling NI within the meaning of Section 15 of the Securities Act, with respect to which registration, qualification or compliance has been effected pursuant to this Agreement, against all expenses, claims, losses, damages or liabilities (or actions in respect thereof), including any of the foregoing incurred in settlement of any litigation, commenced or threatened, arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any registration statement, prospectus, offering circular or other document, or any amendment or supplement thereto, incident to any such registration, qualification or compliance, or any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading, or any violation by the Company of any rule or regulation promulgated under the Securities Act or any other federal, state or common law rule or regulation applicable to the Company in connection with any such registration, qualification or compliance, and the Company will reimburse NI, each of its officers, directors, employees and agents and each person controlling NI for any legal and any other expenses reasonably incurred in connection with investigating, preparing or defending any such claim, loss, damage, liability or action, provided that the Company will not be liable in any such case to the extent that any such claim, loss, damage, liability or expense arises out of or is based on any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with any written information furnished to the Company pursuant to an instrument duly executed by NI or controlling 5 person and stated to be specifically for use therein. (b) NI will, if Registrable Shares held by NI are included in the securities as to which such registration, qualification or compliance is being effected, indemnify the Company, each of its directors and officers, each underwriter, if any, of the Company's securities covered by such a registration statement, each person who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act, against all claims, losses, damages and liabilities (or actions in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any such registration statement, prospectus, offering circular or other document, or any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the Company, each of its directors, officers, persons, underwriters or control persons for any legal or any other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage, liability or action, in each case to the extent, but only if and to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such registration statement, prospectus, offering circular or other document in reliance upon and in conformity with any written information furnished to the Company pursuant to an instrument duly executed by NI and stated to be specifically for use therein. (c) Each party entitled to indemnification under this Section 7 (the "Indemnified Party") shall give written notice to the party required to provide indemnification (the "Indemnifying Party") promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of any such claim or any litigation resulting therefrom, provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or litigation, shall be approved by the Indemnified Party (whose approval shall not unreasonably be withheld), and the Indemnified Party may participate in such defense at such party's expense, and provided further that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Agreement unless, but only to the extent that, the failure to give such notice is actually prejudicial to an Indemnifying Party's ability to defend such action. No Indemnifying Party, in the defense of any such claim or litigation, shall, except with the consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such claim or litigation. 6 (d) In order to provide for just and equitable contribution to joint liability under the Securities Act in any case in which NI, or any controlling person of NI, makes a claim for indemnification pursuant to this Section 7 but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case notwithstanding the fact that this Section 7 provides for indemnification in such case, then, the Company and NI will contribute to the aggregate losses, claims, damages or liabilities to which they may be subject (after contribution from others) in such proportion so that NI is responsible for the portion represented by the percentage that the public offering price of its Registrable Shares offered by the registration statement bears to the public offering price of all Shares offered by such registration statement; and the Company is responsible for the remaining portion not payable by any other holder; provided, however, that, in any such case, (A) NI will not be required to contribute any amount in excess of the public offering price of all such Registrable Shares offered by it pursuant to such registration statement; and (B) no person guilty of fraudulent misrepresenta- tion (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. 8. Obligations of the Company. Whenever required under this Agreement to use its best efforts to effect the registration of any Registrable Shares, the Company shall, as expeditiously as reasonably possible: (a) If Registrable Shares owned by NI have been included in a registration statement furnished to NI such numbers of copies of the registration statement and all amendments thereto, any prospectus included in such registration statement, including any preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as NI may reasonably request in order to facilitate the disposition of Registrable Shares owned by NI. (b) Enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing underwriter of such offering. NI shall also enter into and perform its obligations under such an agreement. 9. Securities Law Compliance. If Registrable Shares owned by NI have been included in any registration pursuant to this Agreement NI will comply with the Securities Act and with the Exchange Act with respect to any such registration. 10. Standoff Agreement. NI agrees in connection with any registration of the Company's Common Stock, upon request of the 7 underwriters managing any underwritten offering of the Company's securities, not to sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any Registrable Shares (other than those included in such registration), without the prior written consent of the Company or such underwriters, as the case may be, for such period of time (not to exceed 120 days) from the effective date of such registration as may be requested by the Company or such managing underwriters. 11. Rule 144 Requirements. The Company agrees to: (a) use its best efforts to file with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act; (b) furnish to NI upon request (i) a written statement by the Company as to its compliance with the requirements of Rule 144(c), and the reporting requirements of the Securities Act and the Exchange Act, (ii) a copy of the most recent annual or quarterly report of the Company, and (iii) such other reports and documents of the Company as NI may reasonably request to avail itself of any similar rule or regulation of the Commission allowing itself to sell any such securities without registration; and (c) cooperate with NI in such manner as NI may reasonably request so as to enable sales made in compliance with the requirements of Rule 144 to be made in compliance with the requirements of any transfer agent, registrar or the broker through whom any sales are to be executed. 12. Put Right and Call Offer. (a) Subject to Section 12(b) below, NI shall have the right to sell (the "Put Right") during the Put Right Exercise Period (as defined below), and upon exercise of that right the Company shall purchase, all the Shares then owned by NI at a purchase price per Share equal to 105% of the Average Specified Price (as defined below) during the Put Right Exercise Period. If the Put Right is not duly exercised during the Put Right Exercise Period, it shall expire at the end of the Put Right Exercise Period. The Put Right may be exercised only once. (b) The Company may offer to purchase from (the "Call Offer") during the Call Offer Period (as defined below) all or any portion of the Shares then owned by NI at a purchase price equal to 105% of the Average Specified Price (as defined below). NI may, at its option, accept such Call Offer upon written notice delivered to the Company within twenty business days after notice of the Call Offer is given to NI. If NI does not duly accept the Call Offer in accordance with the terms of the Call Offer and 8 this Agreement, or if any NI accepts the Call Offer but subsequently does not sell to the Company the Shares agreed to be sold by NI to the Company within the period provided for in this Section 12, then both the Call Offer and all rights of NI under Section 12(a) with respect to the Shares subject to such Call Offer shall then immediately expire and be of no further force and effect. (c) The "Average Specified Price" for each Share subject to a Put Right or a Call Offer shall be $32.9875, which is equal to the average of the closing prices of the Common Stock as reported by the New York Stock Exchange for each of the ten consecutive trading days ending on October 3, 1996. The "Put Right Exercise Period" shall be the 90-day period commencing on the 90th day after the date of this Agreement. The "Call Offer Period" shall be the 60-day period commencing on the 120th day after the date of this Agreement. A Put Right may be exercised and a Call Offer may be made only by written notice to the Company or NI, as the case may be, and such notice shall contain the number of Shares to be purchased. The purchase price payable upon purchase and sale of the Shares subject to a Put Right or Call Offer hereunder shall be paid in cash on the Closing Date (as defined below). (d) In the event of an exercise of a Put Right or the making of a Call Offer, the parties to such transaction shall mutually determine a closing date (a "Closing Date") which shall not be more than 30 days, subject to any applicable regulatory waiting periods, after the date the Put Right is exercised or Call Offer is made and accepted by NI, or if any such day is not a business day, then the first business day thereafter. Such closing ("Closing") shall be held at 11:00 a.m., local time, at the principal executive office of the Company, or at such other time or place as the parties may agree. On the Closing Date of a purchase of Shares pursuant to this Section, NI shall deliver to the Company certificates, with stock powers duly endorsed in blank, representing the Shares to be purchased. 13. Amendment. Any provision of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively), only by the written consent of the Company and NI. Any amendment or waiver effected in accordance with this Section 16 shall be binding upon NI, each future holder of any Shares who is a party to this Agreement, and the Company. 14. Investment Representation. NI hereby confirms and represents and warrants to the Company that NI is acquiring the Shares for investment only and not with a view to or in connection with any resale or distribution of the Shares. NI has reviewed all information provided by the Company to Norris pursuant to Section 4.06 of the Asset Purchase Agreement. 9 15. Notices, etc. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered by hand, courier service, United States mail (return receipt requested) or by facsimile, addressed as follows: (a) If to the Company: United States Filter Corporation 40-004 Cook Street Palm Desert, CA 92211 Attn: Damian C. Georgino, Esq. Tel: (619) 341-8125 FAX: (619) 341-9368 (b) If to NI: President NI Industries, Inc. 21001 Van Born Road Taylor, Michigan 48180 Tel: (313) FAX: (313) 374-6430 or to such other address or facsimile number of a party of which such party has given notice to the other parties pursuant to this Section. 16. Entire Agreement; Severability. This Agreement and the Stock Purchase Agreement together with the Schedules and Exhibits thereto set forth all of the provisions, covenants, agreements, conditions and undertakings among the parties hereto with respect to the subject matter hereof. The provisions of this Agreement are severable, and in the event that any one or more provisions are deemed illegal or unenforceable, the remaining provisions shall remain in full force and effect. 17. Governing Law. This Agreement shall be governed by and construed in accordance with the laws (other than those with respect to choice of law) of the State of Delaware. Each of the parties hereto agrees that all claims in any action or proceeding arising out of or related to this Agreement may be heard and determined in any Delaware state court or federal court sitting in the State of Delaware. 18. Counterparts. This Agreement may be executed simultaneously in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties hereto have executed this 10 Agreement as of the date first above written. UNITED STATES FILTER CORPORATION By: /s/ Kevin L. Spence ---------------------------------- Title: Chief Financial Officer NI INDUSTRIES , INC. By: /s/ Timothy Wadhams ---------------------------------- Title: Vice President 11 EX-99 9 Exhibit 99.03 [NI Industries, Inc. letterhead] January 29, 1997 Mr. Damian C. Georgino, Esq. United States Filter Corporation 40-004 Cook Street Palm Desert, CA 92211 Dear Mr. Georgino: On January 22, 1997, NI Industries exercised its "Put Right" (the "Put Right") under paragraph 12 of the Option, Transfer and Registration Agreement (the "Agreement"), dated as of October 24, 1996 between United States Filter Corporation (USF) and NI. USF has asked NI to register and sell its 75,786 shares of USF Common Stock (the "NI Shares") in a public distribution ("Distribution") pursuant to a registration statement which USF shall use its best efforts to effect under the Securities Act (as defined in the Agreement) on Form S-3 ("Registration Statement"). As an accommodation to USF, NI has agreed to participate and sell the NI Shares in the Distribution in lieu of selling the NI Shares in accordance with the Put Right, provided, however, that (i) NI receives the proceeds from such sale (the "Proceeds") no later than February 21, 1997, (ii) USF pays to NI by wire transfer, concurrently with the payment of the Proceeds and the transfer of the unsold NI Shares to USF, which shall in no event be later than February 21, 1997, the difference between the Proceeds and $2,625,000 (the "Additional Payment"), (iii) any NI Shares not sold pursuant to the Distribution will be purchased by USF pursuant to the Agreement on February 21, 1997, (iv) NI shall not be responsible for providing any indemnity to any party whatsoever in connection with its sale of the NI Shares in the Distribution, including, without limitation, any underwriters of the Distribution, and USF's indemnification obligation to NI as set forth in the Agreement will remain in full force and effect, (v) if NI has not received the Proceeds and the Additional Payment by February 21, 1997, then USF will, on such date, purchase the NI Shares from NI and deliver to NI $2,625,000 in payment therefor, and (vi) if NI has not, for any reason not caused by NI, received the Proceeds and/or the Additional Payment by February 21, 1997, interest shall accrue on any unpaid amount from and after February 21, 1997 at the rate of fifteen (15%) percent per annum. The distribution of the NI Shares pursuant to the Registration Statement shall be effected by or through such investment banking January 29, 1997 Page 2 firm as may be designated by USF at the time the Registration Statement is filed. Please acknowledge your agreement to the foregoing by signing below on the attached copy of this letter and returning the same to the undersigned. Very truly yours, NI INDUSTRIES, INC. By /s/ Timothy Wadhams ____________________________ Timothy Wadhams Vice President The foregoing is acknowledged and agreed to: UNITED STATES FILTER CORPORATION By /s/ Tim Traff ___________________________________________ -----END PRIVACY-ENHANCED MESSAGE-----