EXECUTIVE LIFE INSURANCE AGREEMENT
This Executive Life Insurance Agreement ("Agreement") is made, as of January 1, 2002, by and between Parker-
Hannifin Corporation, an Ohio corporation (the "Corporation"), and
__________________________________ (the "Executive").
A. The Executive desires to insure his or her life for the benefit and protection of his or her family or designated
beneficiary under the Policy (as defined below); and
B. The Corporation desires to help the Executive provide certain insurance for the benefit and protection of his or
her family or designated beneficiary by providing funds to pay the premiums due on the Policy in accordance with
this Agreement; and
C. The Executive, as owner of the Policy, desires to assign certain rights and interests in the Policy to the
Corporation, to the extent provided herein, as security for repayment of certain funds provided by the
Corporation for the acquisition and/or maintenance of the Policy.
NOW, THEREFORE, in consideration of the foregoing, and the mutual agreements and covenants set forth
below, the parties to this Agreement agree as follows:
1. Definitions. For purposes of this Agreement, unless otherwise clearly apparent from the context, the following
phrases or terms shall have the following indicated meanings:
(a) "Aggregate Premiums Paid" shall mean, at any time, an amount equal to (i) the cumulative premiums paid by
the Corporation on the Policy, less (ii) any policy loans to the Corporation and accrued and unpaid interest
thereon. Notwithstanding the foregoing, Aggregate Premiums Paid shall not include extra benefit riders or
agreements, other than those providing additional life insurance coverage on the Executive, and shall not include
premiums waived pursuant to the terms of any disability waiver of a premium rider.
(b) "Base Annual Salary" shall mean the base annual compensation, excluding profit-sharing, RONA, bonuses,
commissions, overtime, relocation expenses, incentive pa