Exhibit (10)(i)* to Report on Form 10-K for Fiscal Year Ended June 30, 1997 by Parker-Hannifin Corporation Parker-Hannifin Corporation 1998 Target Incentive Bonus Plan Description *Numbered in accordance with Item 601 of Regulation S-K. PARKER-HANNIFIN CORPORATION 1998 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 1998 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 1998 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 1998 Planned ROAA: 16.0% ROAA Payout Schedule -------------------- FY98` Percentage of Target ROAA Award Paid* ---- -------------------- < 3.6% 0 3.6% 30% 5.5% 40% 7.4% 50% 9.2% 60% 11.0% 70% 11.4% 72% 12.7% 80% 14.3% 90% 16.0% 100% 16.8% 113% 17.7% 125% 18.5% 138% 19.3% 150% * Fiscal year 1998 ROAA less than 11.4% 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