Document:

Exhibit
10.6

 

TAX SHARING AGREEMENT

THIS
AGREEMENT (this “Agreement”) made
and entered into as of                ,
2004, by and among PP Holding Corporation II, a Delaware corporation
(“PHC II”), PP Holding
Corporation, a Delaware  corporation
and direct wholly owned subsidiary of PHC II (“PHC”), Polypore, Inc., a Delaware  corporation and direct wholly owned subsidiary of PHC (“Polypore”), and such direct and indirect
subsidiaries of PHC II that are listed on Exhibit A hereto
from time to time (collectively with PHC and Polypore, the “Subsidiaries” and each individually, a “Subsidiary”).

WITNESSETH:

WHEREAS,
PHC II and each of the Subsidiaries qualifies as an “includible
corporation” within the meaning of Section 1504(b) of the Internal Revenue Code
of 1986, as amended (the “Code”);

WHEREAS,
the affiliated group of corporations, consisting of PHC II, as the common
parent, and each of the Subsidiaries (the “Polypore Group”), qualifies as an
“affiliated group” within the meaning of Section 1504(a) of the Code; and

WHEREAS,
the Polypore Group desires to take advantage of the tax savings that may result
from the filing of U.S. federal income tax returns on a consolidated basis, in
accordance with Sections 1501 et seq.
of the Code and the Treasury Regulations promulgated thereunder.

NOW,
THEREFORE, in consideration of the covenants, agreements, terms and conditions
contained herein, and for other good, valid and binding consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending
to be legally bound, hereby agree as follows:

SECTION 1.  Defined Terms.  As used in this Agreement, the following
terms shall have the following meanings.

“Code” shall have the
meaning set forth in the recitals of this Agreement.

“Fiscal Year” shall mean
the annual accounting period of PHC II and any other Member.

“Interim Payments” shall
have the meaning set forth in Section 3(b) of this Agreement.

“Member” shall mean a
member (as defined in Treasury Regulations Section 1.1502-1(b)) of the Polypore
Group.

“PHC” shall have the
meaning set forth in the heading of this Agreement.

“PHC II” shall have
the meaning set forth in the heading of this Agreement.

“Polypore”
shall have the meaning set forth in the heading of this Agreement.

 

 

“Polypore  Group”
shall have the meaning set forth in the recitals of this Agreement.

“Separate Return Liability”
shall mean, with respect to any Subsidiary for any Fiscal Year, the U.S.
federal income taxes (including any minimum tax or alternative minimum tax)
that would be payable by such Subsidiary to the U.S. Treasury had the
Subsidiary filed a separate income tax return for that Fiscal Year based on the
Subsidiary’s Separate Taxable Income for that Fiscal Year.

“Separate Taxable Income”
shall mean, with respect to any Subsidiary for any Fiscal Year, the income,
gains, losses, deductions and credits of such Subsidiary for that Fiscal Year
calculated as follows:  (i) any
dividends received by one Member from another Member will be assumed to qualify
for the 100% dividends received deduction of Section 243 of the Code or shall
otherwise be eliminated from such calculation; (ii) gain or loss on
intercompany transactions, whether or not deferred, shall be treated by each
Member in the manner required by Treasury Regulations Section 1.1502-13;
(iii) limitations on the calculation of a deduction or the utilization of
tax credits or the calculation of a tax liability shall be made on a
consolidated basis; (iv) net operating losses and credits of a Subsidiary
shall be treated as available to such Subsidiary in determining such
Subsidiary’s Separate Taxable Income, and shall not be reduced even if such net
operating losses or credits are used in determining the consolidated taxable
income of the Polypore Group, instead, such net operating losses and credits
shall be reduced only if, when and to the extent used in determining the
Separate Taxable Income of the Subsidiary; and (v) elections relating to
tax credits and tax computations that differ from the consolidated treatment if
separate returns were filed shall be made on an annual basis by PHC II.

“Subsidiary” and “Subsidiaries” shall have the meanings set
forth in the heading of this Agreement.

SECTION 2.  Consent to
Filing of Consolidated Return.

(a)           PHC II shall
file a consolidated U.S. federal income tax return, and pay to the U.S.
Treasury any taxes due thereon, on behalf of the Polypore Group for the taxable
year ending December 31, 2004, and for each subsequent taxable period for which
this Agreement is in effect and for which the Polypore Group is required or
permitted to file a consolidated tax return; provided, that PHC II
shall not be liable for any taxes attributable to a Subsidiary if such
Subsidiary has not complied with its tax payment requirements as set forth in Section
3 hereof.  Each Subsidiary shall execute
and file such consents, elections and other documents that may be required or
appropriate for the proper filing of such returns.

(b)           Each corporation
that, subsequent to the date of this Agreement, becomes a Member shall be added
to the list of Subsidiaries contained in Exhibit A hereto.  Polypore (or the applicable Member that is
the direct parent corporation of such Subsidiary) shall cause each of the
Subsidiaries listed on Exhibit A hereto, as amended from time to time,
to become a party hereto by executing this Agreement in counterpart.

 

2

 

SECTION 3.  Tax Payments.

(a)           Each Subsidiary
shall make payments to PHC II with respect to each Fiscal Year equal to
its respective Separate Return Liability for such Fiscal Year.  Such payments shall be made in the manner
set forth in paragraphs (b) and (c) below.

(b)           From time to time
during the Fiscal Year each Subsidiary shall make interim payments (“Interim
Payments”) to PHC II with respect to its Separate
Return Liability (i) pursuant to the schedule set forth in Section 6655(c)
of the Code and (ii) calculated under the principles Section 6655(d) of
the Code.  Interim Payments shall be
made no later than 5 calendar days prior to the due date of the relevant
estimated tax payment.

(c)           If a Subsidiary’s
Separate Return Liability for a particular Fiscal Year is greater than its
aggregate Interim Payments with respect to such Fiscal Year, then such
Subsidiary shall pay to PHC II the excess of its Separate Return Liability
over its aggregate Interim Payments at least five calendar days before
PHC II files the Polypore Group’s consolidated U.S. federal income tax
return in respect of such Fiscal Year. 
If a Subsidiary’s aggregate Interim Payments for a particular Fiscal
Year exceed its Separate Return Liability with respect to such Fiscal Year,
such excess shall be allowed as a credit to the Subsidiary in respect of the
Interim Payment next due from that Subsidiary to PHC II.

SECTION 4.  Adjustments to
the Separate Return Liability.

(a)           If for any Fiscal
Year the Internal Revenue Service makes an upward adjust to, or PHC II
files an amended return resulting in an upward adjustment of, the Polypore
Group’s consolidated U.S. federal income tax liability with respect to such
Fiscal Year, then each Subsidiary shall pay to PHC II an amount equal to
the excess of the Separate Return Liability for such Fiscal Year, as adjusted,
over the Separate Return Liability for such Fiscal Year paid to date.  In the event of a downward adjustment, the
excess of a Subsidiary’s Separate Return Liability for such Fiscal Year paid to
date over its Separate Return Liability, as adjusted, shall be allowed as a credit
to the Subsidiary in respect of the Interim Payment next due from that
Subsidiary to PHC II under Section 3 of this Agreement.

(b)           The payments
required under this Section 4 shall be made promptly after a “determination”
(as defined in Section 1313(a) of the Code) in respect of the amount at issue; provided,
however, that payments in the case of the filing of an amended return
shall be made promptly upon such filing.

SECTION 5.  Interest
Payments.  Interest
will be paid pursuant to this Agreement only with respect to payments required
to be made by a Subsidiary as a result of any adjustment or redetermination of
income by the Internal Revenue Service or in the case of a filing of an amended
return.  Such interest will be
calculated at the applicable overpayment or underpayment rate and shall
otherwise be determined in the same manner as would be determined by the
Internal Revenue Service.

SECTION 6.  Appointment of
PHC II as Agent.  Each
Subsidiary hereby appoints PHC II its agent with full power to act on its
behalf in all matters concerning the consolidated U.S. federal income tax
returns filed on behalf of the Polypore Group, including the preparation 

 

3

 

and
filing of such returns (including any amendments thereto), making or revoking
all elections with respect thereto, negotiating and settling any audit,
examination or administrative proceeding with respect to such tax returns, and
commencing and prosecuting any judicial proceeding related to such tax returns.

SECTION 7.  State Tax
Returns.  The provisions of this
Agreement shall apply, as appropriately adjusted, to any Members filing
combined, consolidated, unitary or similar income or franchise returns for
state tax purposes.

SECTION 8.  Miscellaneous.

(a)           This Agreement and
any provision hereof may be amended, waived, discharged or terminated only by
an instrument in writing signed by the party against whom enforcement of the
amendment, waiver, discharge or termination is sought.

(b)           This Agreement shall
constitute the entire agreement between the parties concerning the subject
matter hereof and shall supersede any prior agreements and understandings
between or among the parties with respect to the subject matter hereof.

(c)           The validity,
interpretation and enforceability of this Agreement shall be governed in all
respects by the laws of the State of New York, without regard to conflict of
law principles.

(d)           Failure of any party
at any time to require the other party’s performance of any obligation under
this Agreement shall not affect the right to require performance of that
obligation.  Any waiver by any party of
any breach of any provision of this Agreement shall not be construed as a
waiver of any continuing or succeeding breach of such provision, a waiver or
modification of the provision itself, or a waiver of any right under this
Agreement.

(e)           Section and other
headings contained in this Agreement are for reference purposes only and are in
no way intended to describe, interpret, define or limit the scope, extent or
intent of this Agreement or of any provision hereof.

(f)            Every provision of
this Agreement is intended to be severable. 
If any term or provision hereof is determined to be illegal or invalid
for any reason whatsoever, such illegality or invalidity shall not affect the
validity of the remainder of this Agreement.

(g)           This Agreement may
be executed in multiple counterparts, each of which shall be deemed an original
and all of which together shall constitute one agreement.  The signatures of any party to any such
counterpart shall be deemed to be a signature to, and may be appended to, any
other counterpart.

(h)           This Agreement and
all of the provisions hereof shall be binding upon and inure to the benefit of,
and be enforceable by, the parties hereto and their respective successors and
permitted assigns, but neither this Agreement nor any of the rights, interests
or obligations herein shall be assigned by any party hereto without the prior
written consent of the other parties hereto.

 

4

 

 

(i)            Matters of
interpretation and calculations under this Agreement shall be made in good
faith by PHC II.

(j)            Upon request by
PHC II, each Subsidiary shall pay to PHC II, no later than the due
date of the next Interim Payment due following such request, such Subsidiary’s pro rata share of (i) amounts
expended by PHC II in connection with the determination of the tax
liability of the Polypore Group and the preparation of necessary tax return
filings and (ii) amounts expended by PHC II in determining amounts
due pursuant to this Agreement.

[REMAINDER
OF PAGE LEFT BLANK]

 

5

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first set forth above.

 

	
  PP HOLDING CORPORATION II

  	
   

  	
  PP HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Lynn Amos

  	
   

  	
  By:

  	
  /s/ Lynn Amos

  
	
  Name:

  	
   

  	
  Name:

  
	
  Title

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  POLYPORE, INC.

  	
   

  	
  CELGARD, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Lynn Amos

  	
   

  	
  By:

  	
  /s/ Lynn Amos

  
	
  Name:

  	
   

  	
  Name:

  
	
  Title

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DARAMIC, INC.

  	
   

  	
  DARAMIC ASIA, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Lynn Amos

  	
   

  	
  By:

  	
  /s/ Lynn Amos

  
	
  Name:

  	
   

  	
  Name:

  
	
  Title

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DARAMIC INTERNATIONAL, INC.

  	
   

  	
  POLYPORE HOLDINGS, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Lynn Amos

  	
   

  	
  By:

  	
  /s/ Lynn Amos

  
	
  Name:

  	
   

  	
  Name:

  
	
  Title:

  	
   

  	
  Title:

  

 

 

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EXHIBIT A

 

Celgard, Inc., a Delaware corporation

Daramic, Inc., a Delaware corporation

Daramic Asia, Inc., a Delaware corporation

Daramic International, Inc., a Delaware
corporation

Polypore Holdings, Inc., a Delaware
corporation

 

7Exhibit
4.4

GE FINANCIAL ASSURANCE HOLDINGS, INC.

Company

GENWORTH FINANCIAL, INC.

Successor Company

and

JPMORGAN CHASE BANK

Trustee

Second
Supplemental Indenture

Dated as of May 24, 2004

 

to
the

Indenture

Dated as of June 26, 2001

 

as
amended by

First Supplemental Indenture

Dated
as of June 26, 2001

Providing for the Issuance of Debt Securities

(Unlimited as to Aggregate Principal Amount)

 

 

SECOND
SUPPLEMENTAL INDENTURE

 

SECOND SUPPLEMENTAL INDENTURE (this “Second Supplemental Indenture”), dated as of
May 24, 2004, between GE Financial Assurance Holdings, Inc., a Delaware
corporation (the “Company”),
Genworth Financial, Inc., a Delaware corporation (the “Successor Company”), and JPMorgan Chase Bank,
a New York banking corporation (formerly known as The Chase Manhattan Bank)
(the “Trustee”),
to the Indenture, dated as of June 26, 2001, between the Company and the
Trustee (the “Base Indenture”),
as amended by the First Supplemental Indenture, dated as of June 26, 2001 (the
“First Supplemental Indenture,”
and together with the Base Indenture, the “Indenture”).

RECITALS:

WHEREAS, the Company and the Trustee have heretofore entered into the
Indenture to provide for the issuance of the Company’s unsecured debentures,
notes or other evidences of indebtedness to be issued in one or more series;

WHEREAS, Section 11.01 of the Indenture permits the sale, conveyance,
transfer or other disposition of all or substantially all of the Company’s
assets to any other Person, provided that the successor Person shall be a
corporation or a limited liability company organized and existing under the
laws of the United States of America or a state thereof and such corporation or
limited liability company shall expressly assume (1) the due and punctual
payment of the principal of, and premium, if any, and interest, if any, on all
the Securities according to their tenor, and (2) the due and punctual
performance and observance of all of the covenants and conditions of the
Indenture to be performed by the Company, by supplemental indenture
satisfactory to the Trustee, executed and delivered to the Trustee by the
corporation which shall have acquired such assets;

WHEREAS, Section 10.01(a) of the Indenture permits the Company and the
Trustee to enter into a supplemental indenture to the Indenture without the
consent of the holders of the Securities to evidence the succession of another
corporation to the Company and the assumption by the successor corporation of
the covenants, agreements and other obligations of the Company pursuant to
Article Eleven of the Indenture;

WHEREAS, the Company has transferred substantially all of its assets to
the Successor Company and the Successor Company desires to assume the due and
punctual payment of the principal of, and premium, if any, and interest, if
any, on all of the Securities according to their tenor, and the due and
punctual performance and observance of all of the covenants and conditions of
the Indenture to be performed by the Company and, in connection therewith, the
Trustee has agreed to enter into this Second Supplemental Indenture to reflect
such assumption;

WHEREAS, the Trustee has received an Opinion of Counsel and an
Officers’ Certificate, pursuant to Sections 10.05, 11.03 and 14.05 of the
Indenture, stating that (i) the Second Supplemental Indenture complies with the
requirements of Article Ten of the Indenture, (ii) the transfer of
substantially all of the Company’s assets to the Successor Company and the
Second Supplemental Indenture comply with the provisions of Article Eleven of the
Indenture, and (iii) all conditions precedent provided for in the Indenture to
the execution and delivery by the Trustee of the Second Supplemental Indenture
have been complied with; and

WHEREAS, all things necessary to make this Second Supplemental Indenture
a valid agreement of the Company, the Successor Company and the Trustee, in
accordance with its terms, have been done.

2

 

                                NOW, THEREFORE,
in consideration of the above premises, each party covenants and agrees, for
the benefit of the other parties and for the equal and ratable benefit of all
of the holders of the Securities, as follows:

ARTICLE ONE

ASSUMPTION
OF COMPANY OBLIGATIONS

Section 1.1             Assumption
of Company Obligations.

The Successor Company hereby assumes the obligations of the Company under
the Indenture with respect to the due and punctual payment of the principal of,
and premium, if any, and interest, if any, on all the Securities according to
their tenor, and the due and punctual performance and observance of all of the
covenants and conditions of the Indenture to be performed by the Company;

Section 1.2             The
Successor Company to be Substituted for the Company.

Pursuant to Section 11.02 of the Indenture and not in limitation of any
other provisions thereof, upon execution and delivery of the Second
Supplemental Indenture, the Successor Company shall succeed to and be
substituted for the Company, with the same effect as if it had been named in
the Indenture as the party of the first part and the Company shall be relieved
of any further obligation under the Indenture and the Securities.

Section 1.3             Agencies.

The Successor Company hereby confirms all agency appointments made by
the Company under the Indenture.

Section 1.4             Notices.

For purposes of Section 14.03 of the Base Indenture, the address of the
Successor Company is:

Genworth, Financial, Inc.

6620 West Broad Street

Richmond, Virginia 23230

Attn:       General Counsel

Section 1.5             Notation
on Securities.

All of the 1.6% Notes due 2011 authenticated and delivered after the
date hereof shall bear the following notation, which may be stamped or
imprinted thereon:

“In connection with the transfer of substantially all of the Company’s
assets to Genworth Financial, Inc. and pursuant to the Second Supplemental
Indenture dated as of May 24, 2004, Genworth Financial, Inc. has assumed the
due and punctual payment of the principal of, premium, if any, and interest,
on, this Note and the due and punctual performance and observance of all of the
covenants and conditions of the Indenture to be performed by the Company.”

 

3

 

ARTICLE TWO

MISCELLANEOUS

Section 2.1             Definitions.

Except as otherwise expressly provided or unless the context otherwise
requires, all terms used herein which are defined in the Indenture shall have
the meanings assigned to them in the Indenture.

Section 2.2             Confirmation
of the Indenture.

The Indenture, as supplemented by this Second Supplemental Indenture,
is in all respects ratified and confirmed, and the Indenture, this Second
Supplemental Indenture and all indentures supplemental thereto shall be read,
taken and construed as one and the same instrument.

Section 2.3             Effective Date; Termination.

This Second Supplemental Indenture will take effect as of the date
first set forth above.

Section 2.4             Governing
Law.

This Second Supplemental Indenture shall be deemed to be a contract
made under the laws of the State of New York, and for all purposes shall be
construed in accordance with the laws of said State.

Section 2.5             Counterparts.

This Second Supplemental Indenture may be executed in any number of
counterparts each of which shall be an original, but such counterparts shall
together constitute but one and the same instrument.

Section 2.6             Trustee.

The Trustee makes no representations as to the validity or sufficiency
of this Second Supplemental Indenture. 
The recitals and statements contained in this Second Supplemental
Indenture are deemed to be those of the Company and the Successor Company and
not of the Trustee.

 

*****

[THE
REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

 

4

 

IN WITNESS WHEREOF, the parties hereto have
caused this Second Supplemental Indenture to be duly executed, all as of the
day and year first written above.

	
   

  	
  GE FINANCIAL ASSURANCE HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kathryn A. Cassidy

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Kathryn A. Cassidy

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President and Treasurer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GENWORTH FINANCIAL, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 
  

  	
  /s/ Gary T. Prizzia

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Gary T. Prizzia

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Treasurer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 
  

  	
  /s/ James P. Freeman

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James P. Freeman

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Authorized Person

  	
   

  

 

5

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