Exhibit 10.18   PANOLAM
/ PIONEER SENIOR
MANAGEMENT ANNUAL
PERFORMANCE BONUS PLAN  PLAN
RULES  2008   1.Membership of the Plan is restricted to
key executives and managers as annually agreed by the Compensation
Committee of Panolam Industries Board of Directors.  Inclusion in the Plan from year to year is
discretionary.  2.This Plan will be in effect for calendar
year 2008.  Given the discretionary
nature of the Plan and the uncertainty of future contingencies, the terms of
the Plan and its operation will be reviewed annually and may be modified and/or
canceled as determined by the Board of Directors.  Details of the Plan will be indicated to
members annually.  3.The Bonus Plan is based on an Adjusted
EBITDA.  Additions/deletions of
operations or other extraordinary events during a Plan year will give rise to
adjustment of targets at the sole discretion of the Compensation Committee.  4.Bonus payments will be calculated on base
salary level at year-end.  Each
participants base bonus percentage target is established at the discretion of
the Chairman and CEO.  Details of any
bonus payment under the Plan will be notified to each member in writing after
year completion and Board approval of the audited results of the Company.  Plant, Distribution Center, Sales and Area
Managers and their Controllers will have 50 percent of their bonus based on the
Companys overall performance, and 50 percent based on their respective areas.  5.Plan members will only be entitled to
receive payment providing that they are on the Company payroll at the time of
payment.  Members who resign or are
dismissed with or without just cause before the payment for any reason
whatsoever will not be eligible for pro-rata awards.  Pro-rata adjustments may be made, however,
where a member joins the Plan during the course of the fiscal year, becomes
disabled, retires or dies.  6.Payments made under the Plan will attract
income tax in the year in which actual payment is made.  7.Operation of the Plan remains entirely at
the discretion of the Board through its nominated Compensation Committee whose
decision remains final in all matters relating to the Plan.  8.The minimum Adjusted EBITDA to achieve a
bonus is $65.8 million, or 90.00 percent of target.  9.The actual bonus payout can be adjusted
from the target calculation to reflect an individuals actual contribution to
the companys performance, at the sole discretion and in the opinion of the
Chairman and CEO.


TABLE 1 POOL 1  2008 BONUS PLAN   ·Target Adjusted EBITDA $73.1 Million ·Minimum Adjusted EBITDA for Bonus Payout
$65.8 Million  Adjusted EBITDA
  
  
  
  Bonus Payout($ Million)
  
  % of Target
  
  (% of Salary)65.8
  
  90.0
  
  56.2868.0
  
  93.0
  
  61.9270.2
  
  96.0
  
  67.56Target
  
  73.1
  
  100.0
  
  75.0075.3
  
  103.0
  
  80.6377.5
  
  106.0
  
  86.2580.4
  
  110.0
  
  125.0
  Note:  If Adjusted EBITDA falls
short of Target Adjusted EBITDA, Bonus shall be reduced by 2.5x the percentage
shortfall.  If Adjusted EBITDA exceeds
Target Adjusted EBITDA, Bonus shall be increased by 2.5x the percentage
exceeded.  If Adjusted EBITDA is 10
percent higher than Target, Target Bonus percentage shall be increased by
one-third to 100 percent of Base Salary. 
There is no Maximum Bonus Payout.


TABLE 2 POOL 2  2008 BONUS PLAN   ·Target Adjusted EBITDA $73.1
Million ·Minimum Adjusted EBITDA for
Bonus Payout $65.8 Million  Actual EBITDA
  
  
  
  Bonus Payout($Million)
  
  % of Target
  
  (% of Salary)65.8
  
  90.0
  
  30.0268.0
  
  93.0
  
  33.0270.2
  
  96.0
  
  36.03Target
  
  73.1
  
  100.0
  
  40.0075.3
  
  103.0
  
  43.0077.5
  
  106.0
  
  46.0080.4
  
  110.0
  
  66.50


TABLE
3  2008
BONUS POOL PARTICIPANTS   Pool 1
  
  Pool 2R.J.
  Muller, Jr.
  
  S. FeuringV. MiceliJ. Muller