Exhibit (10)(i)* to Report on Form 10-K for Fiscal Year Ended June 30, 1998 by Parker-Hannifin Corporation Parker-Hannifin Corporation 1999 Target Incentive Bonus Plan Description *Numbered in accordance with Item 601 of Regulation S-K. PARKER-HANNIFIN CORPORATION 1999 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 1999 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 1999 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 1999 Planned ROAA: 15.4% ROAA Payout Schedule -------------------- FY99 Percentage of Target ROAA Award Paid* ---- -------------------- < 3.2% 0% 3.2% 30% 5.2% 40% 7.0% 50% 8.8% 60% 10.5% 70% 11.0% 73% 12.2% 80% 13.8% 90% 15.4% 100% 16.3% 113% 17.1% 125% 17.9% 138% 18.7% 150% * Fiscal year 1999 ROAA less than 11.0% 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