Document:

QuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

Exhibit 10.36    
    

 
 

INVESTMENT MANAGER AGREEMENT    
    

        THIS AGREEMENT, made as of the 15th day of November, 2006, by and between Flagstone Reinsurance Limited (hereinafter called the "Company") and BlackRock (through
its subsidiary BlackRock Financial Management, Inc., hereinafter called the "Manager"). 

 
 

WITNESSETH:    
    

        WHEREAS, the Company has all requisite authority to appoint one or more investment managers to supervise and direct the investment and reinvestment of a portion
of all of the assets of the Company and of certain subsidiaries of the Company; 

        THEREFORE,
for and in consideration of the premises and of the mutual covenants herein contained, the parties hereby agree as follows: 

        1.    Appointment and Status as Investment Manager.    The Company hereby appoints the
Manager as an "Investment Manager." The Manager does hereby accept said appointment and by its execution of this Agreement the Manager represents and warrants that it is registered as an investment
adviser under the Investment Advisers Act of 1940 (the "Advisers Act"). The Manager does also acknowledge that it is a fiduciary with respect to the assets under management and assumes the duties,
responsibilities and obligations of a fiduciary with respect to the services described in Sections 3 through 5 below. 

        2.    Representations by Company.    The Company represents and warrants that
(a) it has all requisite authority to appoint the Manager hereunder, (b) the terms of the Agreement do not conflict with any obligation by which the Company is bound, whether arising by
contract, operation of law or otherwise and (c) this Agreement has been duly authorized by appropriate corporate action. 

        3.    Management Services.    The Manager shall be responsible for the investment and
reinvestment of those assets designated by the Company as subject to the Manager's management (which assets, together with all additions, substitutions and alterations thereto are hereinafter called
the "Account"). The Account may include all securities and instruments described in Exhibit A or appropriate to effect the strategies described therein. The Company does hereby delegate to the
Manager all of its powers, duties and responsibilities with regard to such investment and reinvestment and hereby appoints the Manager as its agent in fact with full authority to buy, sell or
otherwise effect investment transactions involving the assets in its name and for the Account, including without limitation, the power to execute swap, futures, options and other agreements, and to
open and close trading accounts for execution purposes only in connection therewith, with counterparties on the Company's behalf as the Manager deems appropriate from time to time in order to carry
out the Manager's responsibilities hereunder. Said powers, duties and responsibilities shall be exercised exclusively by the Manager pursuant to and in accordance with its fiduciary responsibilities
and the provisions of this Agreement. In deciding on a proper investment of the Account, the Manager shall consider the following factors as communicated in writing to the Manager by the Company from
time to time: a) the investment purposes of the Company, b) the Company's financial needs such as liquidity, c) applicable laws, d) the Company's investment policies and
guidelines, and e) the Account's Investment Guidelines attached as Exhibit A. In addition, in accordance with the Manager's guidelines in effect from time to time, the Manager or its
agent is authorized, but shall not be required, to vote, tender or convert any securities in the Account; to execute waivers, consents and other instruments with respect to such securities; to
endorse, transfer or deliver such securities or to consent to any class action, plan of reorganization, merger, combination, consolidation, liquidation or similar plan with reference to such
securities; and the 

1

 

Manager
shall not incur any liability to the Company by reason of any exercise of, or failure to exercise, any such discretion in the absence of gross negligence or bad faith. 

        Notwithstanding
anything in this Agreement to the contrary, the Manager may, at its own discretion, delegate any or all of its discretionary investment, advisory and other rights,
powers, functions and obligations hereunder to any affiliate of the Manager under the control of BlackRock, Inc., without further consent of the Company;  provided any such delegation shall be
revocable by the Manager and that the Manager shall always remain liable to the Company for the Manager's
obligations hereunder and for all actions of any such affiliates to the same extent as the Manager is liable for its own actions hereunder. In such event, references herein to the Manager shall be
deemed to be references to the relevant affiliate to which the Manager delegates responsibilities hereunder. 

        4.    Accounting and Reports.    At such intervals as shall be mutually agreed upon
between the parties, the Manager shall furnish the Company with appraisals of the Account, performance tabulations, a summary of purchases and sales and such other reports as shall be agreed upon from
time to time. The Manager shall also reconcile accounting, transaction and asset-summary data with custodian reports at
times that are mutually agreeable to the Manager and the Company. In addition, the Manager shall communicate and resolve any significant discrepancies with the custodian. 

        5.    Other Services.    The Manager shall, on invitation, attend meetings with
representatives of the Company to discuss the position of the Account and the immediate investment outlook, or shall submit its views in writing as the Company shall suggest from time to time. 

        6.    Additional Investment Services; Considerations and Acknowledgments.    As agreed
between the parties from time to time, the Manager may provide certain operating, analytical, and reporting support ("Additional Investment Services") for those portfolios of the Company managed by
the Manager and by other parties. The Additional Investment Services may include, but are not limited to the following: (i) establishing appropriate investment mandates and strategies,
(ii) drafting investment policies and guidelines, (iii) supporting the Company's operations, including custodial assistance, (iv) creating a consolidated risk reporting platform
for the Company, (v) providing asset-liability reporting, (vi) providing income projections, and (vii) broad and general consulting on accounting, operational, regulatory, and
other strategic issues. 

        The
Company understands and acknowledges that (a) all Additional Investment Services require the Manager to exercise good-faith judgments that may ultimately prove to
be erroneous, (b) in connection with providing the Additional Investment Services, the Manager will make certain assumptions about the movements of interest rates, volatility of interest rates,
movements of spreads, and the relationship of mortgage prepayments to interest rates, (c) the Manager's assumptions will not necessarily capture all the characteristics and risks inherent in
the Company's portfolios, and (d) the Manager's assumptions are based upon information provided to the Manager by the Company or certain of its third-party vendors that is assumed to be
reliable and accurate, but the Manager does not represent or warrant that it is accurate or complete, and will not be responsible for verifying the accuracy of any such information. 

        7.    Compensation.    For its investment management services rendered hereunder, the
Manager shall be compensated in accordance with Exhibit B, attached hereto. If the management of the Account commences or ends at any time other than the beginning or end of a calendar quarter,
the quarterly fee shall be prorated based on the portion of such calendar quarter during which this Agreement was in force. 

        8.    Custodian.    The securities in the Account shall be held by a custodian duly
appointed by the Company and the Manager is authorized to give instructions to the custodian with respect to all investment decisions regarding the Account. Nothing contained herein shall be deemed to
authorize the 

2

 

Manager
to take or receive physical possession of any of the assets for the Account, it being intended that sole responsibility for safekeeping thereof (in such investments as the Manager may direct)
and the consummation of all purchases, sales, deliveries and investments made pursuant to the Manager's direction shall rest upon the custodian. 

        9.    Brokerage.    The Company hereby delegates to the Manager sole and exclusive
authority to designate the brokers or dealers through whom all purchases and sales on behalf of the Account will be made. Consistent with applicable law, such brokers or dealers may include Merrill
Lynch, Pierce, Fenner & Smith Incorporated, Merrill Lynch International and any other firm that may be presumed an affiliate of the Manager ("Affiliated Broker-Dealers"), and to the extent
that, consistent with applicable law, the Manager may effect transactions with or through its Affiliated Broker-Dealers, the Manager is authorized to do so. The Company understands in such instances
that such Affiliated Broker-Dealers may retain commissions in connection with effecting any transactions for the Account. Such commissions and bid/offer spreads shall not be less favorable to the
Company than those offered by Merrill Lynch International to similar clients with different investment magagers. The Manager will determine the rate or rates, if any, to be paid for brokerage services
provided to the Account. The Manager agrees that securities are to be purchased through such brokers as, in the Manager's best judgment, shall offer the best combination of price and execution. The
Manager, in seeking to obtain best execution of portfolio transactions for the Account, may consider the quality and reliability of brokerage services, as well as research and investment information
and other services provided by brokers or dealers. Accordingly, the Manager's selection of a broker or dealer for transactions for the Account may take into account such relevant factors as
(i) price, (ii) the broker's or dealer's facilities, reliability and financial responsibility, (iii) when relevant, the ability of the broker to effect securities transactions,
particularly with regard to such aspects as timing, order size and execution of the order, (iv) the broker's or dealer's recordkeeping capabilities and (v) the research and other
services provided by such broker or dealer to the Manager which are expected to enhance its general portfolio management capabilities (collectively, "Research"), notwithstanding that the Account may
not be the exclusive beneficiary of such Research. 

        10.    Confidential Information.    All information regarding operations and investments
of the Company shall be regarded as confidential by the Manager. The terms of this Agreement, including the Exhibits hereto, also shall be regarded as confidential by the Company and the Manager and
shall not be disclosed to any third party except with the consent of both parties or if a party becomes legally compelled (by deposition, interrogatory, request for documents, subpoena, civil
investigative demand or similar process) to do so, and then only to the extent of such legal compulsion; provided, further, that in the event of legal compulsion to disclose the terms hereof, the
party subject to such legal process shall (a) first notify the other party of such legal process, unless such notice is prohibited by statute, rule or court order, (b) attempt to obtain
the other party's consent to such disclosure, and (c) in the event consent is not given, agree to permit a motion to quash, or other similar procedural step, to frustrate the production or
publication of information. In making any disclosure under such legal process, a disclosing party agrees to use all reasonable efforts to preserve the confidential nature of such information. 

        11.    Directions to the Manager.    All directions by or on behalf of the Company to the
Manager shall be in writing signed by: 

	Name:	 	Title:
	Mark Byrne	 	Chairman
	Ken McGovern	 	Chief Investment Officer

        The
Manager shall be fully protected in relying upon any direction in accordance with the previous paragraph with respect to any instruction, direction or approval of the Company, and
shall be so protected also in relying upon a certification duly executed on behalf of the Company as to the names 

3

 

of
persons authorized to act for it and in continuing to rely upon such certification until notified by the Company to the contrary. 

        The
Manager shall be fully protected in acting upon any instrument, certificate or paper believed by it to be genuine and to be signed or presented by the proper persons or to any
statement contained in any such writing and may accept the same as conclusive evidence of the truth and accuracy of the statements therein contained. 

        12.    Liabilities of the Manager and the Company.    The Company acting in good faith
shall not be liable for any act or omission of the Manager in connection with the Manager's discharge of its duties; provided, however, this limitation shall not act to relieve the Company from any
responsibility or liability for any fiduciary responsibility, obligation or duty. The Manager, its officers, directors and employees, acting in good faith shall not be liable, and shall be indemnified
by the Company against any and all losses, damages, costs, expenses (including reasonable attorneys' fees), liabilities, claims and demands (collectively, "Losses"), for any action, omission,
information or recommendation in connection with this Agreement, except in the case of the Manager's or such officer's, director's or employee's actual misconduct, gross negligence, willful violation
of any applicable statute or reckless
disregard for its duties and except as further limited in the paragraph immediately below; provided, however, this limitation shall not act to relieve the Manager, its officers, directors and
employees from any responsibility or liability for any responsibility, obligation or duty which the Manager or such officer, director or employee may have under any federal securities act; and
provided, further, however, that to the extent any limitations or restrictions contained in the Investment Guidelines are not adhered to as a result of changes in market value, additions to or
withdrawals from the Account, portfolio rebalancing or other non-volitional acts of the Manager, the Manager shall not be liable to the Company. 

        The
Company understands that in connection with the Additional Investment Services provided by the Manager that (i) the Manager is not serving in an investment advisory capacity,
or making any recommendations or soliciting any action based upon its analyses with respect to those portfolios of the Company not managed by the Manager and (ii) the Company will be solely
responsible for any judgments as to valuation and the purchase and sale of its portfolio securities (other than in the case of the Account). Accordingly, the Manager will not be responsible, and have
no liability, for any conclusions drawn by the Company with respect to its portfolio securities, notwithstanding that such conclusions may, in part, be based upon information provided by the Manager
in connection with the Additional Investment Services. 

        13.    Non-Exclusive Management.    The Company understands that the Manager
will continue to furnish investment management and advisory services to others, and that the Manager shall be at all times free, in its discretion, to make recommendations to others which may be the
same as, or may be different from those made to the Account. The Company further understands that the Manager, its affiliates, and any officer, director, stockholder, employee or any member of their
families may or may not have an interest in the securities whose purchase and sale the Manager may recommend. Actions with respect to securities of the same kind may be the same as or different from
the action which the Manager, or any of its affiliates, or any officer, director, stockholder, employee or any member of their families, or other investors may take with respect thereto. 

        14.    Aggregation and Allocation of Orders.    The Company acknowledges that
circumstances may arise under which the Manager determines that, while it would be both desirable and suitable that a particular security or other investment be purchased or sold for the account of
more than one of the Manager's clients' accounts, there is a limited supply or demand for the security or other investment. Under such circumstances, the Company acknowledges that, while the Manager
will seek to allocate the opportunity to purchase or sell that security or other investment among those accounts on an equitable basis, the Manager shall not be required to assure equality of
treatment among all of its clients 

4

 

(including
that the opportunity to purchase or sell that security or other investment will be proportionally allocated among those clients according to any particular or predetermined standards or
criteria). Where, because of prevailing market conditions, it is not possible to obtain the same price or time of execution for all of the securities or other investments purchased or sold for the
Account, the Manager may average the various prices and charge or credit the Account with the average price. 

        15.    Conflict of Interest.    The Company agrees that the Manager may refrain from
rendering any advice or services concerning securities of companies of which any of the Manager's, or affiliates of the Manager's officers, directors, or employees are directors or officers, or
companies as to which the Manager or any of the Manager's affiliates or the officers, directors and employees of any of them has any substantial economic interest or possesses material
non-public information, unless the Manager either determines in good faith that it may appropriately do so without disclosing such conflict to the Company or discloses such conflict to the
Company prior to rendering such advice or services with respect to the Account. 

        From
time to time, when determined by the Manager in its capacity of a fiduciary to be in the best interest of the Company, the Account may purchase securities from or sell securities to
another account managed by the Manager at prevailing market levels in accordance with the procedures under Rule 17a-7(b) of the Investment Company Act of 1940 and other applicable
law. 

        16.    Effective Period of Agreement and Amendments.    This Agreement shall become
effective on the date hereof. Any amendment to this Agreement shall be written and signed by both parties to the Agreement. No such amendment shall be effective to permit the use of the Account or any
part thereof for any purpose not authorized by the Company's charter. 

        17.    Resignation or Removal of the Manager.    The Manager may be removed by the
Company or may resign upon 30 days' notice in writing. On the effective date of the removal or resignation of the Manager or as close to such date as is reasonably possible, the Manager shall
provide the Company with a final report containing the same information as paragraph 4 above. 

        18.    Assignment.    No assignment (as that term is defined in the Advisers Act) of this
Agreement by the Manager may be made without the consent of the Company, and any such assignment made without such consent shall be null and void for all purposes. Subject to the foregoing, this
Agreement shall inure to the benefit of and be binding upon the parties hereto, their successors and permitted assigns. 

        19.    Severable.    Any term or provision of this Agreement which is invalid or
unenforceable in any applicable jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the
remaining terms or provisions of the Agreement in any jurisdiction. 

        20.    Applicable Law.    To the extent not inconsistent with applicable federal law,
this Agreement shall be construed pursuant to, and shall be governed by, the laws of the state of New York. 

        21.    Investment Manager Brochure.    The Company hereby acknowledges that it has
received from the Manager a copy of the Manager's Form ADV, Part II, at least forty-eight hours prior to entering into this Agreement. 

        22.    Web-site.    The Manager, at the Company's request, will provide
access to its account information electronically, via the world wide web, based upon the Company's use of a BlackRock issued user id and password. The Company acknowledges and agrees the world wide
web is a continually growing medium and the Manager does not make any warranty regarding the security related to the world wide web. The Company must be aware there is no absolute guaranteed system or
technique to fully secure information made available over the web. The Company agrees that it will not share its user id, password and access to information provided electronically with any third
party. 

5

 

        23.    Notices.    All notices required or permitted to be sent under this Agreement
shall be sent, if to the Manager: 

	 	 	 	BlackRock, Inc.

40 East 52nd Street

New York, NY 10022

Attention: Robert Connolly, General Counsel

or by facsimile to (212) 810-3744
	

 	

if to the Company:	
 	

Flagstone Re

24 Church Street

Hamilton, HM11 Bermuda

Attention: Mr. Anthony Philip

or by facsimile to: 441 295-4927

or
such other name or address as may be given in writing to the other party. All notices hereunder shall be sufficient if delivered by facsimile or overnight mail. Any notices shall be deemed given
only upon actual receipt. 

        24.    Counterparts.    This Agreement may be executed in counterparts, each of which
shall be an original but all of which together shall constitute one agreement. 

        25.    Use of Futures.    Pursuant to an exemption from the Commodity Futures Trading
Commission (the "Commission") in connection with accounts of qualified eligible persons, this Agreement is not required to be, and has not been, filed with the Commission. The Commission does not pass
upon the merits of participating in a trading program or upon the adequacy or accuracy of commodity trading advisor disclosure. Consequently, the Commission has not reviewed or approved this
Agreement. 

6

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written. 

	FLAGSTONE REINSURANCE LIMITED	 	 
	

By:	
 	

/s/ MARK BYRNE
	
 	

 
	Name:	 	Mark Byrne	 	 
	Title:	 	Chairman	 	 
	

BLACKROCK

(through its subsidiary BlackRock Financial Management, Inc.)	
 	

 
	

By:	
 	

/s/ MICHAEL HEUBSCH
	
 	

 
	Name:	 	Michael Heubsch	 	 
	Title:	 	Managing Director	 	 

7

 
 
 

Exhibit A    
    
    Investment Guidelines    
    
    Please see separate attachment.    

8

 

 
 

Exhibit B    
    
    Compensation    
    
    Investment Management Services    
    

	Assets
 
	 	Annual Fee

	First $100 million	 	20.0 basis points
	Next $100 million	 	15.0 basis points
	Next $200 million	 	12.5 basis points
	Next $100 million	 	12.0 basis points
	Next $500 million	 	10.0 basis points
	Above $1 billion	 	8.0 basis points

As
compensation for rendering investment management services under this Agreement, the Manager shall be paid a quarterly Asset Management Fee in arrears at the annual rate as detailed above, based on
the net asset value of the Company's total assets, including subsidiaries, managed by the Manager at the end of each calendar quarter. 

9

QuickLinks

Exhibit 10.36

INVESTMENT MANAGER AGREEMENT

WITNESSETH

Exhibit A Investment Guidelines Please see separate attachment.

Exhibit B Compensation Investment Management ServicesQuickLinks
 -- Click here to rapidly navigate through this document

 
  FOURTH AMENDMENT    
    

        FOURTH AMENDMENT, dated as of March 9, 2007 (this "Amendment"), to the Credit Agreement, dated as of May 13, 2004 (as
amended, supplemented or otherwise modified from time to time, the "Credit Agreement"), among PP HOLDING CORPORATION, a Delaware corporation
("Holdings"), POLYPORE, INC. (f/k/a PP Acquisition Corporation), a Delaware corporation (the "Borrower"), the several banks and other
financial institutions or entities from time to time parties thereto (the "Lenders"), GENERAL ELECTRIC CAPITAL CORPORATION, LEHMAN COMMERCIAL PAPER INC. and UBS
SECURITIES LLC, as co-documentation agents, BEAR STEARNS CORPORATE LENDING INC., as syndication agent, and JPMORGAN CHASE BANK, N.A., as administrative agent (in such capacity, the
"Administrative Agent"). 

 
 

W I T N E  S S E T H:  
    

        WHEREAS, pursuant to the Credit Agreement, the Lenders have agreed to make, and have made, certain loans and other extensions of credit to the Borrowers; 

        WHEREAS,
the Borrower has requested, and, upon this Amendment becoming effective, the Lenders have agreed, that certain provisions of the Credit Agreement be amended as set forth below; 

        NOW,
THEREFORE, the parties hereto hereby agree as follows: 

        SECTION
1.    Defined Terms.    Terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement. 

        SECTION
2.    Amendment to Section 1.1 [Defined
Terms].    (a) Section 1.1 of the Credit Agreement is hereby amended by inserting the following defined terms in their appropriate alphabetical
order: 

        "Alnery"
shall mean Alnery No. 104 Limited, a private company limited by shares organized in Hong Kong. 

        "Alnery
Acquisition" shall mean the acquisition by Polypore BV of Alnery pursuant to the Alnery Purchase Agreement. 

        "Alnery
Purchase Agreement" shall mean that certain Joint Venture Agreement entered into as of January 1, 2007 by and among Nippon Sheet Glass
Company, Limited, a corporation organized and existing under the laws of Japan, Alnery, Polypore BV and Tianjin PE Separator Co. Ltd., a wholly foreign owned enterprise organized and existing
under the laws of the People's Republic of China. 

        "Polypore
BV" shall mean Polypore B.V., a limited liability company organized and existing under the laws of the Netherlands. 

	(b)
	The
"Excess Cash Flow" definition is hereby amended by (i) inserting the following words at the end of clause (a)(ii) thereof, immediately before the word "over"
contained therein: 

        "(it
being understood that the incurrence of charges related to the shutdown of the cellulosic business, to the extent included in determining Consolidated EBITDA pursuant to
clause (xvii) of the definition thereof, in an aggregate amount not to exceed $15,000,000, shall not affect the calculation of such amount)"; 

        (ii)   inserting
the words "(other than the Alnery Acquisition)" immediately after the words "Permitted Acquisitions" in clause (b)(iii) thereof;
(iii) inserting the following words at the end of clause (b)(v) thereof, immediately before the "," contained therein: 

        "(it
being understood that the conversion of accrued charges included in determining Consolidated EBITDA pursuant to clause (xvii) of the definition thereof into cash charges
shall not affect the calculation of such amount)"; 

 

        (iv)  deleting
the word "and" at the end of clause (b)(xviii) thereof and substituting in lieu thereof a ";"; (v) deleting
clause (b)(xix) in its entirety and substituting in lieu thereof the following: 

        "(xix) in
the case of the 2006 fiscal year only, to the extent included in determining Consolidated EBITDA for such fiscal year pursuant to clause (xvii) of the definition
thereof, charges related to the shutdown of the cellulosic business not to exceed $15,000,000 and (xx) in the case of (1) the 2006 fiscal year, cash payments scheduled to be made in
fiscal year 2007 not to exceed $6,000,000 and (2) the 2007, 2008 and 2009 fiscal years, additional cash payments actually made in any such fiscal year of up to $5,100,000 in the aggregate to
fulfill the commitments of Polypore BV under the Alnery Purchase Agreement to acquire the remaining unowned Equity Interests of Alnery"; and 

        (vi)  adding
the following new sentence at the end thereof: 

        "Notwithstanding
the foregoing, "Excess Cash Flow" determined in respect of the 2007 fiscal year shall be increased by (i) the excess, if any, of (1) the amount deducted
from the calculation of Excess Cash Flow for the 2006 fiscal year pursuant to clause (b)(xix) above over (2) the actual amount of cash payments made in fiscal year 2007 relating
to the shutdown of the cellulosic business and (ii) the excess, if any, of (1) the amount deducted from the calculation of Excess Cash Flow for the 2006 fiscal year pursuant to
clause (b)(xx)(1) above over (2) the actual amount of cash payments made in fiscal year 2007 (other than any such cash payments financed with the proceeds of Indebtedness, equity
issuances or other proceeds that would not be included in Consolidated EBITDA for such fiscal year) in connection with the Alnery Acquisition.". 

        SECTION
3.    Amendment to Section 2.25 [Prepayment
Fees].    Section 2.25 of the Credit Agreement is hereby amended and restated in its entirety as follows: 

        "SECTION
2.25.    Prepayment Fees.    In the event that, on or before December 13,
2007 (x) any prepayment of the Term Loans is made pursuant to Section 2.13(d) or (y) the Borrower optionally prepays the Term Loans with the proceeds from an incurrence of
Indebtedness (in each case excluding any such prepayment made in connection with (i) an initial public offering yielding gross proceeds from the sale of primary shares of at least $150,000,000
by Holdings, the Borrower or any of its Subsidiaries or any of their holding companies, where at least $150,000,000 of such proceeds are used by Holdings, the Borrower or any of its Subsidiaries or
any of their holding companies to reduce its Indebtedness (regardless of whether the proceeds of such offering are applied to prepay the Term Loans) or (ii) a Change in Control), the Borrower
shall pay to each Term Lender a fee in an amount equal to the product of (a) 1.00% and (b) the principal amount of the Term Loans of such Lender so prepaid." 

        SECTION
4.    Amendment to Section 6.4 [Investments, Loans and
Advances].    Section 6.4(g) of the Credit Agreement is hereby amended by adding the following new language at the end thereof, immediately after the words
""Permitted Acquisition"" "and before the ")": 

"(it
being understood that the acquisition for cash by the Borrower or any of its Subsidiaries of (x) at least 60.0% of the shares of the issued and outstanding Equity Interests of Alnery in
2007 and (y) all or substantially all of the outstanding Equity Interests not acquired, directly or indirectly, pursuant to clause (x) above of Alnery on or before June 30, 2009
shall, in each case, be deemed to be a "Permitted Acquisition"; provided, in each case, that the conditions set forth in clauses (i), (ii), (iii), and (iv) above shall have been met with
respect to such acquisition (it being understood that Alnery shall be deemed to be an "Acquired Entity" for purposes of making such determination))". 

2

 

        SECTION
5.    Conditions to Effectiveness.    (a) Each amendment set forth in
this Amendment shall be effective on the date on which the following conditions precedent have been satisfied or waived (the "Effective Date"): 

        (i)    the
Administrative Agent (or its counsel) shall have received a counterpart of this Amendment executed and delivered by a duly authorized officer of each of
(A) Holdings, (B) the Borrower and (C) Lenders sufficient to approve such amendment in accordance with Section 9.8 of the Credit Agreement; 

        (ii)   the
Borrower shall have paid all fees and expenses of the Administrative Agent, including the reasonable fees and expenses of counsel to the Administrative Agent; and 

        (iii)  after
giving effect to such amendment, no Default or Event of Default shall have occurred and be continuing. 

        (b)   The
Administrative Agent shall notify the Borrower and each Lender (via IntraLinks or such other means reasonably determined by the Administrative Agent) of the
occurrence of the Effective Date of such amendment. 

        SECTION
6.    Representations and Warranties.    Each of the representations and
warranties made by each of Holdings and the Borrower in or pursuant to the Loan Documents shall be true and correct in all material respects on and as of the date hereof as if made as of the date
hereof, except for representations and warranties expressly stated to relate to a specific earlier date, in which case such representations and warranties were true and correct in all material
respects as of such earlier date; provided, that each reference to the Credit Agreement therein shall be deemed to be a reference to the Credit Agreement after giving effect to this Amendment. 

        SECTION
7.    Effect on the Loan Documents.    (a) Except as specifically amended
above, the Credit Agreement and all other Loan Documents shall continue to be in full force and effect and are hereby in all respects ratified and confirmed. 

        (b)   The
execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under
any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents. 

        SECTION
8.    Expenses.    Holdings and the Borrower agree to pay or reimburse the
Administrative Agent for all of its out-of-pocket costs and reasonable expenses incurred in connection with this Amendment, any other documents prepared in connection herewith
and the transaction contemplated hereby, including, without limitation, the reasonable fees and disbursements of counsel to the Administrative Agent. 

        SECTION
9.    Affirmation of Guaranty and Credit Agreement.    The Guarantors hereby
consent to this Amendment and hereby confirm, reaffirm and restate that their obligations under or in respect of the Credit Agreement and the documents related thereto to which they are a party are
and shall remain in full force and effect after giving effect to the foregoing Amendment. 

        SECTION
10.    GOVERNING LAW.    THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HERETO SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

        SECTION
11.    Execution in Counterparts.    This Amendment may be executed by one or
more of the parties to this Amendment on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. 

[Remainder of page intentionally left blank.]  

3

 

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

	 	 	PP HOLDING CORPORATION
	
 	
 	

By:	

/s/  LYNN K. AMOS      

	 	 	Name:	Lynn K. Amos
	 	 	Title:	Chief Financial Officer
	

 	
 	
POLYPORE, INC., as a Borrower
	

 	
 	

By:	

/s/  LYNN K. AMOS      

	 	 	Name:	Lynn K. Amos
	 	 	Title:	Chief Financial Officer
	

 	
 	
JP MORGAN CHASE BANK, as Administrative Agent and a Lender
	

 	
 	

By:	

/s/  PETER A. DEDOUSIS      

	 	 	Name:	Peter A. Dedousis
	 	 	Title:	Managing Director
	

 	
 	
BEAR STEARNS CORPORATE LENDING INC., as Syndication Agent and a Lender
	

 	
 	

By:	

/s/  VICTOR BULZACCHELLI      

	 	 	Name:	Victor Bulzacchelli
	 	 	Title:	Vice President
	

 	
 	
GENERAL ELECTRIC CAPITAL CORPORATION, as Co-Documentation Agent and a Lender
	

 	
 	

By:	

/s/  ROBERT M. KADLICK      

	 	 	Name:	Robert M. Kadlick
	 	 	Title:	Duly Authorized Signatory
	

 	
 	
LEHMAN COMMERCIAL PAPER INC., as Co-Documentation Agent and a Lender
	

 	
 	

By:	

/s/  LEHMAN COMMERCIAL PAPER INC.      

	 	 	Name:	 
	 	 	Title:	 
	

 	
 	

By:	

/s/  [See attached schedule of signatory Lenders]      

	 	 	Name:	 
	 	 	Title:	 

4

 
 
 

ACKNOWLEDGEMENT AND CONSENT    
    

        Each of the undersigned Subsidiary Guarantors hereby acknowledges and consents to the foregoing Fourth Amendment. 

        [LIST
SUBSIDIARY GUARANTORS] 

5

 
 
 

SCHEDULE OF SIGNATORY LENDERS    
    

280
Funding I

Addison CDO. Limited

AIM Floating Rate Fund

Antares Capital Corporation

Antares Funding, L.P., as a Lender

Archimedes Funding III, Ltd.

Avalon Capital Ltd. 3

Bear Stearns Institutional Loan Master Fund

Bear Stearns Investment Products Inc.

Bear Stearns Loan Trust

Big Sky III Senior Loan Trust

Blackrock Senior Income Series

Blackrock Global Floating Rate Income

Bryn Mawr CLO, Ltd.

Carlyle Loan Investment, Ltd.

Carlyle High Yield Partners IV, Ltd.

Carlyle High Yield Partners V, Ltd.

Carlyle High Yield Partners VII, Ltd.

Centaurus Loan Trust

Champlain CLO, Ltd.

Charter View Portfolio

Clarenville CDO, SA

Clydesdale CLO 2003, Ltd.

Clydesdale CLO 2004, Ltd.

Continental Casualty Company

CSAM Funding I

CSAM Funding III

CSAM Funding IV

Diversified Credit Portfolio Ltd.

Eagle Creek CLO, Ltd.

Eaton Vance CDO III, Ltd.

Eaton Vance CDO VII, PLC

Eaton Vance CDO VIII, Ltd.

Eaton Vance CDO IX, Ltd.

Eaton Vance CDO X, Ltd.

Eaton Vance CDO XI, Ltd.

Eaton Vance Credit Opportunities Fund

Eaton Vance Institutional Senior Loan Fund

Eaton Vance Limited Duration Income Fund

Eaton Vance Senior Floating-Rate Trust

Eaton Vance Senior Floating-Rate Income Trust

Eaton Vance Senior Income Trust

Eaton Vance Short Diversified Income Trust

Eaton Vance Variable Leverage Fund Ltd.

Eaton Vance VT Floating-Rate Income Fund

Endurance CLO I, Ltd.

Fall Creek CLO, Ltd.

Fairway Loan Funding Company

First Trust / Highland Capital Floating Rate Income Fund II

6

 

Foothill
Income Trust II, L.P.

Forest Creek CLO, Ltd.

Galaxy III CLO, Ltd.

Galaxy IV CLO Ltd.

Galaxy CLO 2003-1, Ltd.

Gallatin Funding I Ltd.

Gallatin CLO II 2005-1 LTD.

General Electric Capital Corporation, as Administrator for, GE Commercial Loan Holding LLC

General Electric Capital Corporation

Global Enhanced Loan Fund S.A.

Grand Central Asset Trust, BDC Series

Grayson & Co.

Grayston CLO II 2004-1 LTD.

Gulf Stream-Compass CLO 2005-I LTD

Highland Floating Rate LLC

Highland Floating Advantage Fund

Highland Capital Management LP

ING Capital LLC

ING Prime Rate Trust

Intercontinental CDO S.A.

IXIS Loomis Sayles Senior Loan Fund

IXIS Loomis Sayles Senior Loan Fund, LLC

IXIS Loomis Sayles Senior Loan Fund II, LLC

Jupiter Loan Funding LLC

KZH Soleil 2 LLC

Laguna Funding LLC

Landmark IV CDO Limited

The Loomis Sayles Senior Loan Fund II LLC

LFC Loan Funding LLC, for itself or as agent for Loan Funding Corp. THC, Ltd.

Loan Funding III LLC

Loan Funding VII LLC

Long Grove CLO, Limited

Madison Avenue CDO III, Limited

Madison Park Funding IV, Ltd.

MainStay Floating Rate Fund, a series of Eclipse Funds, Inc.

Maplewood (Cayman) Limited

Massachusetts Mutual Life Insurance Company, Bill & Melinda Gates Foundation Trust

Mayport CLO Ltd.

Morgan Stanley Prime Income Trust

Muirfield Trading LLC

National City Bank

Nautique Funding Ltd.

Navigator CDO 2003, LTD, as a Lender

Navigator CDO 2004, LTD, as a Lender

NCRAM Loan Trust

New York Life Insurance Company

New York Life Insurance and Annuity Corporation

The Norinchukin Bank, New York Branch

Nuveen Tax-Advantage Total Return Strategy

Nuveen Floating Rate Income Fund

NYLIM Institutional Floating Rate fund L.P.

7

 

NYLIM
Flatiron CLO 2005-1 Ltd.

Oppenheimer Senior Floating Rate Fund

Petrusse European CLO S.A.

PIMCO Floating Income Fund

PIMCO Floating Rate Income Fund

PIMCO Floating Rate Strategy Fund

PPM Monarch Bay Funding LLC

Putnam Floating Rate Income Fund

Putnam Master Intermediate Income Trust

Restoration Funding CLO, Ltd.

RMF Euro CDO S.A.

RMF Euro CDO II S.A.

Rosemont CLO, Ltd.

Sagamore CLO, Ltd.

Saratoga CLO I, Limited

Senior Debt Portfolio

Senior Loan Portfolio

Southport CLO, Limited

Stanfield Carrera CLO, Ltd.

Stanfield Arbitrage CDO, Ltd.

Stanfield Daytona CLO, Ltd.

Stanfield Bristol CDO, Ltd.

Suffield CLO, Limited

The Sumitomo Trust & Banking Co., Ltd., New York Branch

SunAmerica Life Insurance Company

SunAmerica Senior Floating Rate Fund, Inc.

Symphony CLO I

UBS Loan Finance LLC

Van Kampen Senior Income Fund

Van Kampen Senior Loan Fund

Veritas CLO I., Ltd.

Waterville Funding LLC

Wells Fargo Advantage Short-Term High Yield Basis Fund

Wasatch CLO Ltd.

Waterfall European CLO S.A.

Waveland—INGOTS, LTD. 

8

QuickLinks

FOURTH AMENDMENT

W I T N E S S E T H

ACKNOWLEDGEMENT AND CONSENT

SCHEDULE OF SIGNATORY LENDERS

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}]]