Exhibit 10.3
 
BANNER CORPORATION
2013 ANNUAL INCENTIVE BONUS AWARD AGREEMENT

This Incentive Bonus 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 2012
Restricted Stock and Incentive Bonus Plan, as amended from time to time, and the
2013 Annual Incentive Plan (together the "Plans"), which are incorporated herein
by reference.

1.  
Grantee’s Name:
_____________________________

 
2.  
 
Grantee’s Title:
 
_____________________________

 
3.  
 
Grant Date:
 
_____________________________

 
4.  
 
Annual Incentive Targets (as a percentage of base salary):

 
Below
Threshold
Threshold
Target
Stretch
       

5.  
Corporate and Individual Performance Weightings:

 
Corporate
Individual
   

6.  
Corporate Performance Measures, Performance Gate and Weightings:  Performance
will be measured from April 1, 2013 to December 31, 2013, as summarized in the
table below.

 

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

 
7.  
Individual Performance
Measures:                                                                               

  
__________________________________________                                                                             

  
__________________________________________                                                                               

 
__________________________________________                                                                           

  
__________________________________________                                                                       

 
 
8.  
Payout Date:  As soon as practical after the end of the performance period, but
no later than the end of  the year following that performance period, provided
the Grantee is actively employed on the earlier of the date the payout
determination is made with respect to that performance period or the March 15
following the end of that performance period (except in the case of death or
disability, as provided in the 2013 Annual Incentive Plan).

 
 
9.  
Transferability:  The Grantee may not sell, assign, transfer, pledge or
otherwise encumber any incentive bonus 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 as defined in the
Plan.

 
 
 
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10.  
Tax Withholding:  Applicable tax withholding shall apply to the payment of any
incentive bonus awards.

 
11.  
Plan and Committee Decisions are Controlling:  This Agreement and the award and
payment of incentive bonuses to the Grantee are subject in all respects to the
provisions of the Plans, which are controlling.  All awards are subject to
Committee discretion, except for Qualified Performance-Based Awards.   All
awards are subject to the terms of the Plans, including but not limited to the
clawback provisions in the 2013 Annual Incentive Plan. Capitalized terms herein
not defined in this Agreement shall have the meaning ascribed to them in the
Plans.  All decisions, determinations and interpretations by the Committee
respecting the Plans, this Agreement or the award of incentive bonuses shall be
binding and conclusive upon the Grantee, any Beneficiary of the Grantee or the
legal representative thereof.

 
 
12.  
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.

 
 
13.  
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 Plans.

 
 
14.  
Grantee Acceptance:  The Grantee shall signify acceptance of the terms and
conditions of this Agreement and acknowledge receipt of a copy of the Plans by
signing in the space provided below and returning the signed copy to the
Company.

 
 
* * * * *
 

 
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)

 
 
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