Exhibit (10)(q)* to Report
on Form 10-K for Fiscal
Year Ended June 30, 2002
by Parker-Hannifin Corporation
Parker-Hannifin Corporation 2003-04-05 Long Term Incentive Plan Description.
* Numbered in accordance with Item 601 of Regulation S-K.
LONG TERM INCENTIVE PLAN
The purpose of the Plan is to provide a long-term incentive portion of bonus compensation. The Plan's focus is on
return on equity. It balances a competitive base salary pay structure, an annual cash bonus compensation based
on a return on average assets, and a stock option plan with ten-year exercise rights. The return on equity
objective is a key financial goal and comprehends return on sales at the net income level and asset utilization.
The participants in this Plan are limited to Corporate Officers and Group Presidents. They clearly can affect
broadly the overall financial performance of the company.
The key elements of Parker-Hannifin's Plan are as follows:
Those key executives having a critical impact on the long term performance of the Company selected by the
Chief Executive Officer and approved by the Compensation and Management Development Committee of the
Board (the "Committee").
Three-year average Return on Equity with the grant to cover FY 03, 04 and 05.
Size of Awards
Commensurate with bonus compensation and stock option level of participants as determined by the CEO with
approval of the Compensation and Management Development Committee.
Form of Awards
Awards will be expressed as a certain number of performance units calculated by dividing the dollar equivalent of
the award by the June 30, 2002 Parker stock price.
The Return on Equity objective is 15%.
Share Price Fluctuation
The value of the performance units during the Performance Period will fluctuate with the value of Parker common
LONG TERM INCENTIVE P