This excerpt taken from the BKS DEF 14A filed Apr 16, 2009.
Performance Period; Procedure.
Not later than 90 days after the commencement of each fiscal year of the Company, the Compensation Committee shall, in writing, designate one or more performance periods for such fiscal year, provided that any performance period of less than one year shall be designated no later than the date on which 25% of such performance period has lapsed, and shall also do the following:
If a person becomes eligible to participate in the Performance Plan after the Compensation Committee has made its initial written determination of the participants for a performance period, such individual may become a participant for the performance period if so designated by the Compensation Committee in writing.
Certification. As soon as reasonably practicable following the conclusion of each performance period, the Compensation Committee will certify, in writing, the amount of the Operating Income and the Incentive Award for each participant.
Payment. Following each certification, the Compensation Committee will determine the amount of the Incentive Award actually payable to each participant in its sole discretion based upon such factors as it deems appropriate, provided that the actual Award shall not exceed the Incentive Award with respect to such participant. Awards will be paid in cash, or, in the Compensation Committees sole discretion, in stock obtained from a stockholder-approved stock plan of the Company or any combination thereof.
Deferral. A participant will be entitled to elect to defer payment of any award under the Performance Plan pursuant to a plan or arrangement satisfying the requirements of Code Section 409A.
Changes in Employment. If a person becomes a participant during a performance period after the Compensation Committee has made its initial determination of the participants for a performance period as described above or if a participant dies or retires or if a participants employment otherwise ceases during a performance period (except for termination by the Company for cause, as determined by the Compensation Committee in its sole discretion), the Incentive Award payable to such a participant may be proportionately reduced based on the period of actual employment during the applicable performance period, as determined by the Compensation Committee in its sole discretion.