Exhibit (10)(j)* to Report on Form 10-K for Fiscal Year Ended June 30, 1996 by Parker-Hannifin Corporation Parker-Hannifin Corporation 1997 Target Incentive Bonus Plan Description *Numbered in accordance with Item 601 of Regulation S-K. PARKER-HANNIFIN CORPORATION 1997 TARGET INCENTIVE BONUS PLAN A. Payments earned under the Bonus Plan depend upon the Company's performance against a pre-tax return on average assets (ROAA) schedule which is based upon the Fiscal Year 1997 operating plan. B. The payout under the Plan ranges from 15% to 150% of each participant's target award, with 100% payout set at achievement of fiscal year 1997 planned ROAA. C. Any payout pursuant to the Plan that will result in the exceedance of the $1 million cap on the tax deductibility of executive compensation will be deferred until such time in the earliest subsequent fiscal year that such cap will not be exceeded. D. Participants: All of the executive officers of the Company, plus Group Presidents who are not executive officers. E. Fiscal year 1997 Planned ROAA: 14.6% ROAA Payout Schedule -------------------- FY97 Percentage of Target ROAA Award Paid* ---- -------------------- < 3.4% 0 3.4% 30% 5.2% 40% 6.9% 50% 8.5% 60% 10.1% 70% 10.2% 71% 11.7% 80% 13.2% 90% 14.6% 100% 15.4% 113% 16.2% 125% 17.0% 138% 17.8% 150% * Fiscal year 1997 ROAA less than 10.2% will reduce the amount paid by 50%. F. ROAA will not include the impact of: 1. Environmental costs in excess of planned amounts 2. Acquisitions/divestitures 3. Currency gains or losses