Document:

Exhibit 10.18

PANOLAM/PIONEER

SENIOR MANAGEMENT

ANNUAL PERFORMANCE BONUS PLAN

PLAN RULES—2007

 

 

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 2007. 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 $74.0 million, or 85.00 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

2007 Revised Bonus Plan

 

•              Target Adjusted EBITDA $87.0
Million

•              Minimal Adjusted EBITDA for Bonus
Payout $74.0 Million

	
  Adjusted EBITDA

  	
   

  	
   

  	
   

  	
  Bonus Payout

  
	
  ($ Million)

  	
   

  	
  % of Target

  	
   

  	
  (% of Salary)

  
	
  74.00

  	
   

  	
  85.00

  	
   

  	
  58.13

  
	
  78.30

  	
   

  	
  90.00

  	
   

  	
  63.75

  
	
  82.65

  	
   

  	
  95.00

  	
   

  	
  69.38

  
	
  87.00

  	
   

  	
  100.00

  	
   

  	
  75.00

  
	
  91.35

  	
   

  	
  105.00

  	
   

  	
  84.38

  
	
  95.70

  	
   

  	
  110.00

  	
   

  	
  125.00

  
	
  100.05

  	
   

  	
  115.00

  	
   

  	
  137.50

  

 

Note:

If Adjusted EBITDA falls short of Target Adjusted EBITDA,
Bonus shall be reduced by 1.5x 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 to 100 percent of Base Salary.
 There is no Maximum Bonus Payout.

 

 

TABLE 2

POOL 2

2007 REVISED BONUS PLAN

•      Target Adjusted EBITDA $87.0 Million

•      Minimum
Adjusted EBITDA for Bonus Payout $74.0 Million

 

	
   

  	
   

  	
  Adjusted

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EBITDA

  	
   

  	
   

  	
   

  	
  Bonus Payout

  
	
   

  	
   

  	
  ($Million)

  	
   

  	
  % of Target

  	
   

  	
  (% of Salary)

  
	
   

  	
   

  	
  74.00

  	
   

  	
  85.00

  	
   

  	
  31.00

  
	
   

  	
   

  	
  78.30

  	
   

  	
  90.00

  	
   

  	
  34.00

  
	
   

  	
   

  	
  82.65

  	
   

  	
  95.00

  	
   

  	
  37.00

  
	
  Target

  	
   

  	
  87.00

  	
   

  	
  100.00

  	
   

  	
  40.00

  
	
   

  	
   

  	
  91.35

  	
   

  	
  105.00

  	
   

  	
  45.00

  
	
   

  	
   

  	
  95.70

  	
   

  	
  110.00

  	
   

  	
  66.67

  
	
   

  	
   

  	
  100.05

  	
   

  	
  115.00

  	
   

  	
  73.33

  

 

 

TABLE 3

2007 BONUS POOL PARTICIPANTS

 

	
   

  	
  POOL 1

  	
   

  	
  POOL 2

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  R. J. Muller, Jr.

  	
   

  	
   

  	
  S. Feuring

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  V. Miceli

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. MullerQuickLinks
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Exhibit 4.1    
    

        VOID VOID VOID 

	NUMBER	 	  SHARES
	
GS98	
 	
*1*********

**1********

***1*******

****1******

AKELA PHARMA INC.  

INCORPORATED UNDER THE CANADA BUSINESS CORPORATIONS ACT 

THIS CERTIFIES THAT

** SPECIMEN **

**SPECIMEN**1
Common Shares**CUSIP 00972X200**Certificate GS98**SPECIMEN**1 Common Shares**CUSIP 00972X200**Certificate GS98 **SPECIMEN**1 Common Shares**CUSIP 00972X200**Certificate GS98**SPECIMEN**1
Common Shares**CUSIP 00972X200**Certificate GS98**SPECIMEN**1 Common Shares**CUSIP 00972X200**Certificate GS98 **SPECIMEN**1 Common Shares**CUSIP 00972X200**Certificate GS98**SPECIMEN**1 Common
Shares**CUSIP 00972X200**Certificate GS98**SPECIMEN**1 Common Shares**CUSIP 00972X200**Certificate GS98 **SPECIMEN**1 Common Shares**CUSIP 00972X200**Certificate GS98**SPECIMEN**1 Common Shares**CUSIP
00972X200**Certificate GS98**SPECIMEN**1 Common Shares**CUSIP 00972X200**Certificate GS98**SPECIMEN**1 Common Shares**CUSIP 00972X200**Certificate GS98**SPECIMEN**1 Common Shares**CUSIP 

	is the registered owner of	 	CUSIP: 00972X 20 0

ISIN: CA00972X2005

** ONE **

**SPECIMEN**1
Common Shares**CUSIP 00972X200**Certificate GS98**SPECIMEN**1 Common Shares**CUSIP 00972X200**Certificate GS98 **SPECIMEN**1 Common Shares**CUSIP 00972X200**Certificate GS98**SPECIMEN**1
Common Shares**CUSIP 00972X200**Certificate GS98**SPECIMEN**1 Common Shares**CUSIP 00972X200**Certificate GS98 **SPECIMEN**1 Common Shares**CUSIP 00972X200**Certificate GS98**SPECIMEN**1 Common
Shares**CUSIP 00972X200**Certificate GS98**SPECIMEN**1 Common Shares**CUSIP 00972X200**Certificate GS98 **SPECIMEN**1 Common Shares**CUSIP 00972X200**Certificate GS98**SPECIMEN**1 Common 

FULLY PAID AND NON-ASSESSABLE COMMON SHARES IN THE CAPITAL OF  

AKELA PHARMA INC.  

transferable only on the books of the Corporation by the registered holder in person or by duly authorized Attorney on surrender of this Certificate properly
endorsed. 

This
Certificate is not valid until countersigned and registered by the Transfer Agent and Registrar of the Corporation. 

IN
WITNESS WHEREOF the Corporation has caused this Certificate to be signed by its duly authorized officers. 

	DATED: March 24, 2007	 	 	 	COUNTERSIGNED AND REGISTERED by

Equity Transfer & Trust Company, Toronto, Ontario, Canada as

Main Transfer Agent and Registrar

and

Registrar and Transfer Company, Cranford, NJ, USA as

Co-Transfer Agent
	
/s/ Halvor Jaeger

Halvor Jaeger

Chief Executive Officer	
 	

/s/ Andrew Reiter

Andrew Reiter

Chief Financial Officer	
 	

 

	

 	
 	

By:	

 AUTHORIZED OFFICER

The
Shares represented by this Certificate are transferable at the offices of Equity Transfer & Trust Company, Toronto, Ontario, Canada, and at the offices of Registrar and Transfer Company, Cranford,
NJ, USA. 

SECURITY INSTRUCTIONS ON REVERSE    VOIR LES INSTRUCTIONS DE SÉCURITÉ AU VERSO  

3090794 

FOR VALUE RECEIVED,
                                         
   hereby sell, assign and transfer unto
 

PLEASE INSERT SOCIAL INSURANCE NUMBER OF TRANSFEREE 

    /            /                        -
                        /            /     
                   -                       
 /            /
 

(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF ASSIGNEE) 

	

	

	
 	

Shares
	of the Capital Stock represented by the within Certificate, and do hereby irrevocably constitute and appoint
	 	 	 
	
	 	Attorney
	to transfer the said Stock on the Books of the within named Corporation, with full power of substitution in the premises.

Dated
                                         
          

Signature:
                                         
          

NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE, IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT, OR ANY CHANGE
WHATSOEVER, AND MUST BE GUARANTEED BY A SCHEDULE 1 CANADIAN CHARTERED BANK OR AN ELIGIBLE GUARANTOR INSTITUTION WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM. 

Guaranteed by:
                                         
          

The class of shares represented by this certificate has rights, privileges, restrictions or conditions attached thereto and the Corporation will furnish a
shareholder, on demand and without charge, with a full copy of the text of (i) rights, privileges, restrictions and conditions attached to each class authorized to be issued and to each series
insofar as the same have been fixed by the directors, and (ii) the authority of the directors to fix the rights, privileges, restrictions and conditions of subsequent
series.

QuickLinks

Exhibit 4.1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00131-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00131-of-00352.parquet"}]]