Exhibit (10)(m)* to Report
on Form 10-K for Fiscal
Year Ended June 30, 2001
by Parker-Hannifin Corporation

 

 

Parker-Hannifin Corporation 2002 Target Incentive Bonus Plan Description.

 

 

 

*Numbered in accordance with Item 601 of Regulation S-K.

PARKER-HANNIFIN CORPORATION 2002 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 2002 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 2002 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 2002 Planned ROAA: 11.1%

ROAA Payout Schedule
       
FY02
   Percentage of Target
ROAA  
         Award Paid*     
< 2.6%  
0%
  
2.6%
  
30%
  
4.0%
  
40%
  
5.2%
  
50%
  
6.5%
  
60%
  
7.6%
  
68%
  
7.7%
  
70%
  
8.9%
  
80%
  
10.0%
  
90%
  
11.1%
  
100%
  
11.7%
  
113%
  
12.3%
  
125%
  
13.0%
  
138%
  
13.6%
  
150%
  

             * Fiscal year 2002 ROAA less than 7.6% 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