Exhibit 10.8
 
BANNER CORPORATION
[FORM OF] PERFORMANCE UNIT AWARD AGREEMENT

This Performance Unit Award (“Award”) is granted by Banner Corporation
(“Company”) to [Name] (“Grantee”) in accordance with the terms of this Agreement
("Agreement") and subject to the provisions of the Banner Corporation 2014
Omnibus Incentive Plan, as amended from time to time (the “Plan”), which is
incorporated herein by reference.

1.  
Grantee’s Name:        ___________________________________
 

2.  
Grantee’s Title:          ___________________________________
 

3.  
Grant Date:                 ___________________________________
 

4.  
Number of Performance Shares/Units (referred to herein as “PSUs”):

 
Performance
Shares                            ___________________________________
 
[OR]
 
Performance
Units                              ___________________________________
Performance Unit Cash% ______________
Performance Unit Stock% ______________

5.  
Annual Incentive Targets (Provide attachment or other incentive target
information as necessary.):

Below
Threshold
Threshold
Target
Stretch
       

6.  
Performance
Period:                                                                  ____________________________________

7.  
Vesting Date:  100% of the earned PSUs will vest on [           ], provided that
Grantee is then serving as an Employee of the Company or any Affiliate on that
date.   [Following three sentences are optional.] If the Grantee's Service
terminates before the end of the Performance Period by reason of death,
Disability or Retirement, then the Grantee shall be entitled to a pro rata
payment based on the number of months’ Service during the Performance Period but
based on the achievement of performance goals during the entire Performance
Period.  If a Change in Control occurs prior to the end of a Performance Period,
and the Grantee experiences an Involuntary Separation from Service during the
365-day period following the date of such Change in Control, then the Grantee
shall be entitled to a payment of his performance Award as follows: [describe
how the performance Award payment will be calculated and paid, e.g., pro rata or
full, whether performance goals shall be deemed to be fully met].   If at the
effective time of the Change in Control the successor to the Company’s business
and/or assets does not either assume the non-vested PSUs or replace the
non-vested PSUs with an award that is determined by the Committee to be at least
equivalent in value to such non-vested PSUs on the date of the Change in
Control, then the Committee shall determine: (a) the extent to

 
 
Page 1 of 4

--------------------------------------------------------------------------------

 
 
 
which performance goals have been attained, (b) whether any of the other terms
and conditions with respect to an Award relating to such Performance Period have
been satisfied, (c) what, if any, payment is due with respect to an Award, and
(d) in the case of Performance Units, whether such payment shall be made in
cash, Shares or a combination thereof.  In no event shall payments be made in
connection with a PSU upon a Termination for Cause.

 
8.  
Corporate and Individual Performance Weightings (Include attachment or other
performance weighting information as necessary.):

 
Corporate
Individual
   

9.  
Corporate Performance Measures, Performance Gate and Weightings: Performance
will be measured from __________________ to ___________________, as summarized
in the table below. (Include attachment or other performance measure information
as necessary.)

 
Relative
Absolute Performance
Weighting
% of
Target
Performance Measure 
Performance Gate
Threshold
Target
Stretch
                                               

 
10.  
Individual Performance Measures (Attach schedule as necessary)
______________________________________________________________________________________________
______________________________________________________________________________________________
______________________________________________________________________________________________
______________________________________________________________________________________________

11.  
Dividend Equivalents (applicable only to the extent PSUs are to be paid in
Shares):  PSUs will accumulate dividend equivalents. The dividend equivalents
shall equal the dividends actually paid with respect to Shares of Company common
stock during the period while (and to the extent) the PSUs remain outstanding
and unpaid. The dividend equivalents shall accumulate, without interest, and be
paid in cash at the time the Shares are paid with respect to any earned PSUs, or
shall be forfeited at the time the PSUs are forfeited. For purposes of
determining the amount of dividends accumulated and to be paid with respect any
PSUs that become payable, the PSUs which are payable will be considered to have
been outstanding from the Grant Date.

 
 
12.  
Payout Date:  If the Committee determines that payments are due under a PSU with
respect to a Performance Period, then payment shall be made in a lump sum within
60 days after the Committee determination, but in no event later than the end of
the year following that Performance Period, provided the Grantee is actively
employed by the Company or an Affiliate on the last day of the Performance
Period to which the PSU

 
 
Page 2 of 4

--------------------------------------------------------------------------------

 
 
 
relates. (Specify whether the grantee must also be employed on the date of
payment.  Specify additional or different payout terms.  If payout terms provide
for the deferral of compensation, include provisions that comply with section
409A of the Code.)

 
13.  
Transferability:  The Grantee may not sell, assign, transfer, pledge or
otherwise encumber any PSU award benefits that have not vested, except in the
event of the Grantee’s death, by will or by the laws of descent and
distribution, or pursuant to a Domestic Relations Order.

 
14.  
Tax Withholding:  Applicable tax withholding shall apply to the payment of any
PSU awards.

 
15.  
Plan and Committee Decisions are Controlling:  This Agreement and the award and
payment of performance compensation to the Grantee are subject in all respects
to the provisions of the Plan, which is incorporated herein by this reference
and is controlling.  All awards are subject to Committee discretion, except for
Qualified Performance-Based Awards.   Capitalized terms herein not defined in
this Agreement shall have the meaning ascribed to them in the Plan.  All
decisions, determinations and interpretations by the Committee respecting the
Plan, this Agreement or the award of PSUs shall be binding and conclusive upon
the Grantee, any Beneficiary of the Grantee or the legal representative thereof.

 
16.  
Adjustments for Changes in the Capitalization of the Company: In the event of
any recapitalization, forward or reverse stock split, reorganization, merger,
consolidation, spin-off, combination, exchange of Shares or other securities,
stock dividend, special or recurring dividend or distribution, liquidation,
dissolution or other similar corporate transaction or event, the Committee, in
its sole discretion, shall adjust the number of PSUs that are designated to be
paid in Shares.  Any additional PSUs received by the Grantee as a result of any
such adjustment shall be subject to all restrictions and requirements applicable
to PSUs that have not vested.  The Grantee agrees to execute any documents
required by the Committee in connection with an adjustment under this Section
16.

 
17.  
Grantee’s Employment:  Nothing in this Agreement shall limit the right of the
Company or any of its Affiliates to terminate the Grantee's service or
employment, or otherwise impose upon the Company or any of its Affiliates any
obligation to employ or accept the services or employment of the Grantee.

 
18.  
Regulatory, Recoupment and Holding Period Requirements:   The Grantee
acknowledges and agrees that this Award and receipt of any Shares hereunder by
any person is subject to (a) the provisions of the Plan, including but not
limited to Section 13.10, including possible reduction, cancellation, forfeiture
or recoupment (clawback), delayed payment or holding period requirements, and
(b) any policies which the Company may adopt in furtherance of any regulatory
requirements (including, but not limited to, the Dodd-Frank Wall Street Reform
and Consumer Protection Act) or otherwise.

 
19.  
Amendment:  The Committee may waive any conditions of or rights of the Company
or modify or amend the terms of this Agreement, as and to the extent permitted
by the Plan.

 
20.  
Grantee Acceptance:  The Grantee shall signify acceptance of the terms and
conditions of this Agreement and acknowledge receipt of a copy of the Plan by
signing in the space provided below and returning the signed copy to the
Company.

 
 
[Signatures on following page]
 
 
Page 3 of 4

--------------------------------------------------------------------------------

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

 
BANNER CORPORATION
   
 
 
   
By ________________________________
   
Its  ________________________________
                           
ACCEPTED BY GRANTEE
         
___________________________________
    (Signature)     
 
   
___________________________________
   
(Print Name)
         
___________________________________
    (Street Address)           
___________________________________
    (City, State & Zip Code)   

 
 
 
 
 
 
 
Page 4 of 4

--------------------------------------------------------------------------------