Document:

EX-10.(a)

 Exhibit 10(a) 
 Parker-Hannifin Corporation 
 Long-Term Incentive Performance Plan
Under the Performance Bonus Plan 
 1. Effective Date and Purpose. Parker-Hannifin Corporation, an Ohio
corporation (the “Company”), adopts this Parker-Hannifin Corporation Long-Term Incentive Performance Plan Under the Performance Bonus Plan (the “Plan”) effective as of January 26, 2011. The purpose of the Plan is to attract
and retain key executives for the Company and to provide such persons with incentives for superior performance in the form of an opportunity to earn an award that qualifies as a Long-Term Incentive Bonus (as defined in the Company’s 2010
Performance Bonus Plan), while preserving the ability of the Company to deduct Long-Term Incentive Bonuses paid under this Plan as “performance-based compensation” within the meaning of Section 162(m)(4)(C) of the Code. This Plan and
each Award Opportunity granted hereunder shall be subject to the terms and conditions set forth below and the terms and conditions of the Company’s Performance Bonus Plan and Stock Incentive Plan. Capitalized terms not defined in this Plan
shall have the meanings set forth in the Performance Bonus Plan or the Stock Incentive Plan, as applicable. 
 2.
Eligibility. The Committee shall designate the Participants, if any, for each Performance Period. An Eligible Officer who is designated as a Participant for a given Performance Period is not guaranteed of being selected as a
Participant for any other Performance Period. 
 3. Establishment of Award Opportunities. Not later than the 90th day of
each Performance Period and subject to the terms and conditions of Section 5 of the Performance Bonus Plan (including the limits on a Participant’s maximum Long-Term Incentive Bonuses with respect to the Performance Period), the Committee
shall establish the Maximum Shares and Target Shares for each Participant’s Award Opportunity for the Performance Period. The Committee shall provide a Notice of Award to each Participant as soon as practical following the establishment of the
Maximum Shares and Target Shares under the Participant’s Award Opportunity for the Performance Period. 
 4.
Determination of Amount Payable Under Award Opportunities. 
 A. Committee Certification of Management Objectives.
Subject to potential reduction as set forth in Section 4.B and further subject to the other terms and conditions of this Plan, the full number of Maximum Shares granted to a Participant with respect to a Performance Period shall be earned as of
the last day of such Performance Period, provided that (i) following the end of the Performance Period, the Committee has certified that the Company has achieved either (a) average Return on Average Equity of 4% during the Performance
Period, or (b) average Free Cash Flow Margin of 4% during the Performance Period; and (ii) the Participant has been continuously employed by the Company and its Affiliates through the last day of the Performance Period. 

B. Committee Discretion to Reduce Long-Term Incentive Awards. Notwithstanding Section 4.A, the actual number of shares of
Common Stock payable to a Participant with respect to a Performance Period may be reduced (including a reduction to zero) 

 
by the Committee in its sole and absolute discretion based on such factors as the Committee determines to be appropriate, including, without limitation, the Company’s performance with
respect to the performance measures (the “Peer Performance Measures”) set out below, with the number of a Participant’s Target Shares under an Award Opportunity allocated to each of the Peer Performance Measures in proportion to the
percentages set out below. The Peer Performance Measures shall be determined for the Company at the conclusion of the Performance Period, in comparison to the performance of the members of the Company’s Peer Group, determined for each member of
the Peer Group based on its performance at the conclusion of the three fiscal year period of such company ending with or immediately prior to the conclusion of the Performance Period: 

 

					
	 Peer Performance Measure:
	  	Weight:	 
	 Revenue Growth
	  	 	20	% 
	 Earnings Per Share Growth
	  	 	40	% 
	 Average Return on Invested Capital
	  	 	40	% 

 It is the intention of the Committee that the Committee will exercise its discretion as it deems appropriate to reduce
the number of shares of Common Stock that may be delivered to a Participant with respect to each Performance Period based upon the Company’s percentile ranking among the members of the Peer Group with respect to each Peer Performance Measure in
accordance with the following table; provided, however, that the Committee reserves the right to deviate from such approach and may exercise its discretion to reduce the number shares of Common Stock that may be delivered to a Participant with
respect to each Performance Period, if any, based on such other factors as the Committee in its sole and absolute discretion determines to be appropriate: 
  

					
	 Company Percentile Ranking Among Peer Group:
	  	% of Allocable Target
Shares Earned:	 
	 75th percentile or higher
	  	 	200	% 
	 50th percentile
	  	 	100	% (Target Shares) 
	 35th percentile
	  	 	50	% 
	 lower than 35th percentile
	  	 	0	% 

 To the extent that the Company’s percentile ranking among the members of the Peer Group with respect to a Peer
Performance Measure is between the 35th and the 50th percentile, or between the 50th and the 75th percentile, it is currently intended that the Committee will exercise its discretion to determine the appropriate percentage of the allocable Target
Shares that are earned by straight-line interpolation between the percentages set out in the table above. 
 5. Payment of
Long-Term Incentive Bonuses. Except as otherwise provided in this Plan, during the fourth month following the end of the applicable Performance Period and following the certification of the achievement of the management objectives in accordance
with Section 4.A., the Company shall deliver to each Participant the shares of Common Stock, if any, that the Committee has determined (in accordance with Section 4) to be payable with respect to any Award Opportunity. 

  
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 6. Terminations. Except as otherwise provided in this Section 6 or
Section 7, a Participant must remain continuously employed by the Company and its Affiliates through the last day of a Performance Period in order to be entitled to receive payment of any Long-Term Incentive Bonus pursuant to this Plan for such
Performance Period. 
 A. Qualifying Retirement. Notwithstanding the foregoing, in the event of a Participant’s
termination of employment during a Performance Period due to a Qualifying Retirement with respect to such Performance Period, the Participant will be entitled to receive the Award Opportunity, if any, that the Committee determines (in accordance
with Section 4) to be payable for such Performance Period, as if the Participant had remained continuously employed through the end of the Performance Period. Any such Award Opportunity will be payable at the time provided in Section 5,
following the certification of the achievement of the management objectives by the Committee in accordance with Section 4.A. 
 B. Death, Disability, Termination Without Cause, Other Retirement. Notwithstanding the foregoing, in the event of a Participant’s termination of employment during a Performance Period due to
death, Disability, termination of employment by the Company without Cause, or Other Retirement, the Participant will be entitled to receive a prorated Long-Term Incentive Bonus for that Performance Period equal to the product of the amount of the
Award Opportunity, if any, determined to be payable by the Committee pursuant to Section 4 multiplied by a fraction, the numerator of which is the number of full quarters of continuous employment during the Performance Period and the
denominator of which is 12. Any such prorated bonus will be payable at the time provided in Section 5, following the certification of the achievement of the management objectives by the Committee in accordance with Section 4.A. 

C. Other Terminations. Except as otherwise provided pursuant to Section 7, in the event of a Participant’s termination
of employment during a Performance Period for any reason other than Qualifying Retirement, Other Retirement, death, Disability, or termination of employment by the Company without Cause, the Participant will forfeit his or her Award Opportunity for
such Performance Period, without any further action or notice. 
 7. Change in Control. 

A. In General. In the event of a Change in Control (as defined in the Stock Incentive Plan) of the Company during a Performance
Period, each Participant then holding an outstanding Award Opportunity granted under this Plan for such Performance Period shall receive payment of his or her Award Opportunity as follows: (a) within fifteen (15) days following the date of
the Change in Control, each such Participant shall receive a number of shares of Common Stock equal to the number of Target Shares subject to such Award Opportunity; and (b) within forty-five (45) days after the date of such Change in
Control, each such Participant shall receive a number of shares of Common Stock equal to the excess, if any, of (i) the number of shares of Common Stock that would be payable in accordance with Section 4 if the Company had achieved the
management objectives described in Section 4.A for the Performance Period, the Committee had exercised its discretion to reduce the number of shares of Common Stock payable in accordance with Section 4.B based upon the Company’s
percentile ranking among the Peer Group with respect to the Peer Performance Measures as described 

  
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therein, and the Company’s percentile ranking among the Peer Group for each of those Peer Performance Measures during the Performance Period through the end of the fiscal quarter immediately
preceding the date of the Change in Control continued throughout the Performance Period at the same level; over (ii) the number of Target Shares subject to such Award Opportunity. 

B. Anticipatory Termination. Notwithstanding the foregoing, in the event a Change in Control is deemed to occur during the
Performance Period under the Stock Incentive Plan as a result of a Participant’s termination of employment prior to a Change in Control at the request of a third party who has indicated an intention or taken steps reasonably calculated to
effect a Change in Control (“Anticipatory Termination”), such Participant shall receive payment of his or her Award Opportunity with respect to such Performance Period in accordance with the provisions of Section 6.A, applied as if
such Participant had terminated employment due to a Qualifying Retirement on the date of such Anticipatory Termination; provided, however, that if a Change in Control occurs after such Anticipatory Termination and prior to payment of such Award
Opportunity, such Participant shall receive payment of his or her Award Opportunity as follows: (a) within fifteen (15) days following such Change in Control, such Participant shall receive a number of shares of Common Stock equal to the
number of Target Shares subject to such Award Opportunity; and (b) within forty-five (45) days after the date of such Change in Control, such Participant shall receive a number of shares of Common Stock equal to the excess, if any, of
(i) the greater of (x) the number of shares of Common Stock that would be payable in accordance with Section 4 if the Company had achieved the management objectives described in Section 4.A for the Performance Period, the
Committee had exercised its discretion to reduce the number of shares of Common Stock payable in accordance with Section 4.B based upon the Company’s percentile ranking among the Peer Group with respect to the Peer Performance Measures as
described therein, and the Company’s percentile ranking among the Peer Group for each of those Peer Performance Measures during the Performance Period through the end of the fiscal quarter immediately preceding the Anticipatory Termination had
continued throughout the Performance Period at the same level, or (y) the number of shares of Common Stock that would have been payable in accordance with Section 4 if the Company had achieved the management objectives described in
Section 4.A for the Performance Period, the Committee had exercised its discretion to reduce the number of shares of Common Stock in accordance with Section 4.B based upon the Company’s percentile ranking among the Peer Group with
respect to the Peer Performance Measures as described therein, and the Company’s percentile ranking among the Peer Group for each of those Peer Performance Measures during the Performance Period through the end of the fiscal quarter immediately
preceding the subsequent Change in Control had continued throughout the Performance Period at the same level; over (ii) the number of Target Shares subject to such Award Opportunity. 

8. Promotions and New Hires. With respect to a Participant who is newly hired or is promoted by the Company during a Performance
Period, the Committee shall grant an Award Opportunity, or adjust an Award Opportunity previously granted, to such Participant for such Performance Period pursuant to the provisions of this Section 8; provided, however, that no Award
Opportunity shall be granted or adjusted in such a manner as to cause any Long-Term Incentive Bonus payable under this Plan to fail to qualify as “performance-based compensation” within the meaning of section 162(m)(4)(C) of the Code and
Section 1.162-27 of the Treasury Regulations promulgated thereunder. 

  
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 A. Pro-Rated Award Opportunities for Newly-Eligible Executives. A Participant who is
granted an Award Opportunity more than 90 days after the beginning of the Performance Period, either because the Participant is a newly hired Eligible Officer or is promoted into an Eligible Officer position, will be granted an Award Opportunity
under the Plan for such Performance Period based on the number of Maximum Shares and Target Shares established by the Committee during the first 90 days of the Performance Period for the Participant’s grade level, with the number of Maximum
Shares and Target Shares pro-rated based on the ratio of the number of full quarters remaining in the Performance Period on and after the date of hire or promotion (as applicable) to the total number of quarters in the Performance Period. For any
salary grade created between the salary grades for which the Committee has established the number of Maximum Shares and Target Shares as described above, straight-line interpolation shall be used to determine the pro-rated number of Maximum Shares
and Target Shares in accordance with this Section 8.A. 
 B. Adjustments to Outstanding Award Opportunities. If a
Participant is promoted after the beginning of a Performance Period, the Participant’s outstanding Award Opportunity granted for such Performance Period will be adjusted, effective as of the date of such promotion, based on the number of
Maximum Shares and Target Shares established by the Committee during the first 90 days of the Performance Period for the Participant’s grade level. The adjustments to each such Participant’s Award Opportunity shall be pro-rated on a
quarterly basis, with the number of Maximum Shares and Target Shares for the Participant’s original position applicable for the number of full quarters preceding the effective date of the promotion and the number of Maximum Shares and Target
Shares for the Participant’s new position applicable for the remaining number of quarters in the Performance Period. For any salary grade created between the salary grades for which the Committee has established the number of Maximum Shares and
Target Shares as described above, straight-line interpolation shall be used to determine the pro-rated number of Maximum Shares and Target Shares in accordance with this Section 8.B. 

C. Negative Discretion. Notwithstanding any other provision of this Section 8, the Committee retains the discretion to reduce
the amount of any Long-Term Incentive Bonus, including a reduction of such amount to zero. By way of illustration, and not in limitation of the foregoing, the Committee may, in its discretion, determine (i) not to grant a pro-rated Award
Opportunity pursuant to Section 8.A above, (ii) not to adjust an outstanding Award Opportunity pursuant to Section 8.B above, (iii) to grant a pro-rated Award Opportunity in a smaller amount than would otherwise be provided by
Section 8.A above, or (iv) to adjust an outstanding Award Opportunity to produce a smaller Long-Term Incentive Award than would otherwise be provided by Section 8.B above. 

9. Plan Administration. The Committee shall be responsible for administration of the Plan. The Committee is authorized to
interpret the Plan, to prescribe, amend and rescind regulations relating to the Plan, and to make all other determinations necessary or advisable for the administration of the Plan, but only to the extent not contrary to the express provisions of
the 

  
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Plan, the Performance Bonus Plan and the Stock Incentive Plan. Determinations, interpretations or other actions made or taken by the Committee pursuant to the provisions of the Plan shall be
final, binding and conclusive for all purposes and upon all Participants, Eligible Officers, Beneficiaries and all other persons who have or claim an interest herein. The Committee may, in its discretion, but only to the extent permitted by 162(m)
of the Code and applicable law, delegate to one or more directors or employees of the Company any of the Committee’s authority under the Plan. The acts of any such delegates shall be treated under this Plan as acts of the Committee with respect
to any matters so delegated, and any reference to the Committee in the Plan shall be deemed a reference to any such delegates with respect to any matters so delegated. 
 10. Tax Withholding. Each Participant is responsible for any federal, state, local, foreign or other taxes with respect to any Long-Term Incentive Bonus payable under the Plan. To the extent
the Company is required to withhold any federal, state, local, foreign or other taxes in connection with the delivery of Common Stock under this Plan, then the Company may, in its sole discretion, (a) retain a number of shares of Common Stock
otherwise deliverable hereunder with a value equal to the required withholding (based on the Fair Market Value (as defined in the Stock Incentive Plan) of the Common Stock on the applicable date), (b) facilitate a sale of shares of Common Stock
payable pursuant to the Award Opportunity to cover such tax withholding obligation, or (c) apply any other withholding method determined by the Company; provided that in no event shall the value of the shares of Common Stock retained exceed the
minimum amount of taxes required to be withheld or such other amount that will not result in a negative accounting impact. 

11. Unfunded Plan. Each Award Opportunity granted under this Plan represents only a contingent right to receive all or a portion
of the number of Maximum Shares granted subject to the terms and conditions of the Notice of Award, the Plan, the Performance Bonus Plan and the Stock Incentive Plan. Nothing in this Plan shall be construed to create a trust or to establish or
evidence any Participant’s claim of any right to payment of a Long-Term Incentive Bonus other than as an unsecured general creditor with respect to any payment to which he or she may be entitled under this Plan. 

12. Rights of Employer. Neither anything contained in this Plan nor any action taken under this Plan shall be construed as a
contract of employment or as giving any Participant or Eligible Officer any right to continued employment with the Company or any Affiliate. 
 13. Nontransferability. Except as otherwise provided in this Plan, the benefits provided under the Plan may not be alienated, assigned, transferred, pledged or hypothecated by or to any person or
entity, and these benefits shall be exempt from the claims of creditors of any Participant or other claimants and from all orders, decrees, levies, garnishment or executions against any Participant to the fullest extent allowed by law.
Notwithstanding the foregoing, to the extent permitted by the Company, a Participant may designate a Beneficiary or Beneficiaries (both primary and contingent) to receive, in the event of the Participant’s death, any shares of Common Stock
remaining to be delivered with respect to the Participant under the Plan. The Participant shall have the right to revoke any such designation and to re-designate a Beneficiary or Beneficiaries in such manner as may be prescribed by the Company.

  
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 14. Successors. The rights and obligations of the Company under the Plan shall inure
to the benefit of, and shall be binding upon, the successors and assigns of the Company. 
 15. Governing Law. The Plan
and all Award Opportunities shall be construed in accordance with and governed by the laws of the State of Ohio, but without regard to its conflict of law provisions. 
 16. Amendment or Termination. The Committee reserves the right, at any time, without either the consent of, or any prior notification to, any Participant, Eligible Officer or other person, to
amend, suspend or terminate the Plan or any Award Opportunity granted thereunder, in whole or in part, in any manner, and for any reason; provided that any such amendment shall be subject to approval by the shareholders of the Company to the extent
required to satisfy the requirements of Section 162(m) of the Code and the Treasury Regulations promulgated thereunder, and provided further that any such amendment shall not, after the end of the 90-day period described in Section 3 of
the Plan, cause the amount payable under an Award Opportunity to be increased as compared to the amount that would have been paid in accordance with the terms established as of the end of such period. Notwithstanding the foregoing, no amendment,
suspension or termination of the Plan following a Change in Control (as defined in the Stock Incentive Plan) may adversely affect in a material way any Award Opportunity that was outstanding on the date of the Change in Control, without the consent
of the affected Participant. 
 17. Claw-back Policy. Each Award Opportunity granted, and each Long-Term Incentive Bonus
paid, pursuant to this Plan shall be subject to the terms and conditions of the Claw-back Policy. 
 18.
Section 409A of the Code. It is the Company’s intent that each Long-Term Incentive Bonus payable under this Plan shall be exempt from the requirements of Section 409A of the Code under the “short-term deferral”
exception set out in Section 1.409A-1(b)(4) of the Treasury Regulations. The Plan shall be interpreted and administered in a manner consistent with such intent. 
 19. Plan and Performance Bonus Plan Terms Control. In the event of a conflict between the terms and conditions of any Notice of Award and the terms and conditions of the Plan, the terms and
conditions of the Plan shall prevail. In the event of a conflict between the terms and conditions of any Notice of Award or of this Plan and the terms and conditions of the Performance Bonus Plan, the terms and conditions of the Performance Bonus
Plan shall prevail to the extent necessary for Long-Term Incentive Bonuses paid under this Plan to qualify as “performance-based compensation” for purposes of Section 162(m) of the Code and Section 1.162-27 of the Treasury
Regulations promulgated thereunder. In the event of a conflict between the terms and conditions of any Notice of Award and the terms and conditions of the Stock Incentive Plan, the terms and conditions of the Stock Incentive Plan shall prevail.

 20. Severability. If any provision of the Plan is held invalid, void or unenforceable, the same shall not affect, in
any respect whatsoever, the validity of any other provisions of the Plan. 

  
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 21. Waiver. The waiver by the Company of any breach of any provision of the Plan by a
Participant shall not operate or be construed as a waiver of any subsequent breach. 
 22. Captions. The captions of the
sections of the Plan are for convenience only and shall not control or affect the meaning or construction of any of its provisions. 
 23. Consent to Transfer Personal Data. By acknowledging an Award Opportunity, each Participant will voluntarily acknowledge and consent to the collection, use, processing and transfer of personal
data as described in this Section 23. Participants are not obliged to consent to such collection, use, processing and transfer of personal data. However, failure to provide the consent may affect the Participant’s ability to participate in
the Plan. The Company and its Affiliates hold certain personal information about each Participant, that may include name, home address and telephone number, fax number, email address, family size, marital status, sex, beneficiary information,
emergency contacts, passport / visa information, age, language skills, drivers license information, date of birth, birth certificate, social security number or other employee identification number, nationality, C.V. (or resume), wage history,
employment references, job title, employment or severance contract, current wage and benefit information, personal bank account number, tax related information, plan or benefit enrollment forms and elections, option or benefit statements, any shares
of stock or directorships in the Company, details of all options or any other entitlements to shares of Common Stock awarded, canceled, purchased, vested, unvested or outstanding in your favor, for the purpose of managing and administering the Plan
(“Data”). The Company and its Affiliates will transfer Data amongst themselves as necessary for the purpose of implementation, administration and management of each Participant’s participation in the Plan, and may further transfer
Data to any third parties assisting the Company and its Affiliates in the implementation, administration and management of the Plan. These recipients may be located throughout the world, including the United States. By acknowledging an Award
Opportunity, each Participant will authorize such third parties to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the Participant’s participation in
the Plan, including any requisite transfer of such Data as may be required for the administration of the Plan and/or the subsequent holding of shares of stock on the Participant’s behalf to a broker or other third party with whom the
Participant may elect to deposit any shares of stock acquired pursuant to the Plan. A Participant may, at any time, review Data, require any necessary amendments to it or withdraw the consents herein in writing by contacting the Company; however,
withdrawing such consent may affect the Participant’s ability to participate in the Plan. 
 24. Notification of Change
in Personal Data. If your address or contact information changes prior to the delivery of any shares of Common Stock pursuant to an Award Opportunity, the Company must be notified in order to administer the Plan and such Award Opportunity.
Notification of such changes should be provided to the Company as follows: 
 A. U.S. and Canada
Participants (employees who are on the U.S. or Canadian payroll system): 
  

	 	•	 	 Active employees: Update your address and contact information directly through your Personal Profile section in the Employee Self-Service site.

  
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	 	•	 	 Retired, terminated or family member of deceased Participant: Contact the Benefits Service Center at 1-800-992-5564.

 B. Rest of World Participants (employees who are not on the U.S. or Canadian payroll
system): Contact your country Human Resources Manager. 
 25. Electronic Delivery. By acknowledging an Award Opportunity,
each Participant will consent and agree to electronic delivery of any documents that the Company may elect to deliver (including, but not limited to, prospectuses, prospectus supplements, grant or award notifications and agreements, account
statements, annual and quarterly reports, and all other forms of communications) in connection with any Award Opportunity granted under the Plan. By acknowledging an Award Opportunity, each Participant will consent to any and all procedures the
Company has established or may establish for an electronic signature system for delivery and acceptance of any such documents that the Company may elect to deliver, and each Participant will agree that his or her electronic signature is the same as,
and shall have the same force and effect as, his or her manual signature. By acknowledging an Award Opportunity, each Participant will consent and agree that any such procedures and delivery may be effected by a third party engaged by the Company to
provide administrative services related to the Plan. 
 26. Prospectus Notification. Copies of the Stock Incentive Plan,
the plan summary and prospectus which describes the Stock Incentive Plan (the “Prospectus”) and the most recent Annual Report and Proxy Statement issued by the Company (collectively, the “Prospectus Information”) are available
for review by Participants on the UBS One Source Web site. Each Participant shall have the right to receive a printed copy of the Prospectus Information, free of charge, upon request by either calling the third party Plan Administrator at
877-742-7471 or by sending a written request to Parker’s Benefits Department. 
 27. Definitions. The following
capitalized words as used in this Plan shall have the following meanings: 
 “Affiliate” means any corporation or
other entity (including, but not limited to, partnerships, limited liability companies and joint ventures) controlled by the Company. 
 “Award Opportunity” means an opportunity granted by the Committee to a Participant to earn a Long-Term Incentive Bonus under this Plan with respect to a Performance Period, payable in shares of
Common Stock to be delivered under the Stock Incentive Plan, with such opportunity subject to the terms and conditions of this Plan, the Performance Bonus Plan and the Stock Incentive Plan. 

“Beneficiary” means a person designated by a Participant in accordance with Section 13 of the Plan to receive, in the
event of the Participant’s death, any shares of Common Stock remaining to be delivered with respect to the Participant under the Plan. 
 “Board” means the Board of Directors of the Company. 

  
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 “Cause” means any conduct or activity, whether or not related to the business of
the Company, that is determined in individual cases by the Committee to be detrimental to the interests of the Company, including without limitation (a) the rendering of services to an organization, or engaging in a business, that is, in the
judgment of the Committee, in competition with the Company; (b) the disclosure to anyone outside of the Company, or the use for any purpose other than the Company’s business, of confidential information or material related to the Company,
whether acquired by the Participant during or after employment with the Company; (c) fraud, embezzlement, theft-in-office or other illegal activity; or (d) a violation of the Company’s Code of Conduct or other policies. 

“Claw-back Policy” means the Parker-Hannifin Corporation Claw-back Policy, as amended from time to time, or any successor
policy. 
 “Code” means the Internal Revenue Code of 1986, as amended. 

“Committee” means the Human Resources and Compensation Committee of the Board, or such other committee appointed by the Board
to administer the Performance Bonus Plan; provided, however, that in any event the Committee shall be comprised of not less than two directors of the Company, each of whom shall qualify as an “outside director” for purposes of
Section 162(m) of the Code and Section 1.162-27(e)(3) of the Treasury Regulations promulgated thereunder. 

“Common Stock” means the common stock of the Company. 
 “Company” has the meaning given such term in Section 1 of the Plan. 

“Disability” has the meaning set forth in the Parker-Hannifin Corporation Executive Long-Term Disability Plan or such other
long-term disability program of the Company or an Affiliate in which the Participant participates. 
 “Eligible
Officer” means any employee of the Company or an Affiliate who is an executive officer of the Company, whether such person is so employed at the time the Plan is adopted or becomes so employed subsequent to the adoption of the Plan. 

“Free Cash Flow Margin” means the Company’s net cash flow provided by operating activities less capital expenditures for a
calendar year in the Performance Period, expressed as a percentage of the Company’s net sales for such calendar year. Free Cash Flow Margin shall be determined in accordance with generally accepted accounting principles as in effect on the
first day of the applicable Performance Period. Discretionary pension contributions by the Company during the Performance Period are not included in the calculation of Free Cash Flow Margin. For this purpose, a discretionary pension contribution
means a contribution by the Company or one of its subsidiaries to a qualified pension plan for employees of the Company or its subsidiaries where absent actions taken by the Company to affect its funding level in a particular year, no minimum
required contribution would have been required under applicable laws and regulations. 

  
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 “Maximum Shares” means, with respect to an Award Opportunity granted to a
Participant for a Performance Period, the notional number of shares of Common Stock equal to 200% of the Participant’s Target Shares for such Performance Period. Each Maximum Share shall represent the contingent right to receive one share of
Common Stock and shall at all times be equal in value to one share of Common Stock. The number of Maximum Shares granted pursuant to each outstanding Award Opportunity is subject to adjustment in accordance with the terms of the Performance Bonus
Plan. 
 “Notice of Award” means a written or electronic communication to a Participant with respect to a Performance
Period, which provides notice of the Participant’s Maximum Shares and Target Shares for such Performance Period, subject to the terms and conditions of the Plan, the Performance Bonus Plan and the Stock Incentive Plan. 

“Other Retirement” means a termination of employment by a Participant during a Performance Period that constitutes
“retirement” under the policy of the Company or an Affiliate applicable to the Participant at the time of such termination of employment, other than a Qualifying Retirement. For purposes of clarity, whether a Participant’s termination
of employment constitutes an Other Retirement will be determined separately with respect to each Performance Period for which such Participant has an outstanding Award Opportunity at the time of termination of employment. 

“Participant” means an Eligible Officer who has been granted an Award Opportunity with respect to a Performance Period.

 “Peer Group” means the group of peer companies established as such by the Committee and set forth on Appendix
A hereto. 
 “Performance Bonus Plan” means the Parker-Hannifin Corporation 2010 Performance Bonus Plan, as
amended from time to time, or any successor plan. 
 “Performance Period” means a period of three consecutive calendar
years. 
 “Plan” means this Parker-Hannifin Corporation Long-Term Incentive Performance Plan Under the Performance
Bonus Plan, as amended from time to time. 
 “Qualifying Retirement” means termination of employment by a Participant
during a Performance Period (i) after attainment of age 65, or (ii) after attainment of age 60 with at least 10 years of service and after completion of at least 12 months of continuous employment during such Performance Period. For
purposes of clarity, whether a Participant’s termination of employment constitutes a Qualifying Retirement will be determined separately with respect to each Performance Period for which such Participant has an outstanding Award Opportunity at
the time of termination of employment. 
 “Return on Average Equity” means the Company’s net income for a
calendar year in the Performance Period, divided by the average of shareholder’s equity as of the first and last day of such calendar year. Return on Average Equity shall be determined in accordance with generally accepted accounting principles
as in effect on the first day of the applicable Performance Period. 

  
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 “Stock Incentive Plan” means the Parker-Hannifin Corporation 2009 Omnibus Stock
Incentive Plan, as amended from time to time, or any successor plan. 
 “Target Shares” means the notional number of
shares of Common Stock specified as such in a Participant’s Notice of Award for a Performance Period, which may be used by the Committee in the exercise of its discretion under Section 4.B of the Plan to reduce the amount otherwise payable
pursuant to the Participant’s Award Opportunity. 
  

  
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 APPENDIX A 

Peer Group 

Caterpillar Inc. 
 Cooper Industries, Ltd.

 Cummins Inc. 
 Danaher Corporation

 Deere & Company 
 Dover
Corporation 
 Eaton Corporation 

Emerson Electric Co. 
 Flowserve Corporation

 Goodrich Corporation 
 Honeywell
International Inc. 
 Illinois Tool Works Inc. 
 ITT Industries, Inc. 
 Ingersoll-Rand Company Limited 

Johnson Controls, Inc. 
 Pall Corporation

 Rockwell Automation, Inc. 
 SPX
Corporation 
 Textron Inc. 
  

  
 13EX-10.1

 Exhibit 10.1 
 STOCK OPTION AGREEMENT 
 (Incentive Stock Option Grant) 

THIS AGREEMENT (the “Agreement”) is made as of             by and
between DDR CORP., an Ohio corporation (the “Company”), and             , an individual (the “Holder”). 

W I T N E S S E T H: 
 WHEREAS, the Company desires to provide the Holder with an option to purchase             () Common Shares, $0.10 par value per share, of the
Company (“Shares”), pursuant to the Company’s             Equity-Based Award Plan (the “Plan”); and 

WHEREAS, the Holder desires to accept such option. 
 NOW, THEREFORE, in consideration of the mutual covenants herein set forth, the parties hereto hereby agree as follows: 
 1. Grant of Option. The Company does hereby irrevocably grant to the Holder, and the Holder does hereby accept, the right and option (the “Option”) to purchase, at the option of the
Holder,             () Shares at the exercise price per Share of             and upon and subject to the other terms and
conditions hereof and the Plan. 
 2. Term of the Option; Vesting. The Option is exercisable, in whole or in part, once
vested, in accordance with the following schedule. If the Holder is then employed by the Company, the Option shall vest as follows: 
  

			
	Date	 	No. of Shares Vesting

 Shares for which the Option has become exercisable shall be referred to herein as “Vested Shares,” and Shares
for which the Option has not become exercisable shall be referred to herein as “Unvested Shares.” The Option shall terminate on the tenth anniversary of the date hereof and must be exercised, if at all and to the extent exercisable, on or
before such date and shall not thereafter be exercisable, notwithstanding anything herein to the contrary. Notwithstanding anything contained herein to the contrary, it shall be a condition to the Holder’s right to exercise the Option with
respect to any Vested Shares that there shall have been filed with the Securities and Exchange Commission an effective registration statement on Form S-8 (or such other form as the Company shall deem necessary) with respect to the Shares to be
received upon exercise. 
 3. Exercise. Subject to the other terms and conditions hereof, the Option shall be exercisable
from time to time by written notice to the Company (in the form required by the Company) which shall: 
  

	 	(a)	state that the Option is thereby being exercised, the number of Shares with respect to which the Option is being exercised, each person in whose name any certificates
for the Shares should be registered and such person’s address and social security number; 

  

	 	(b)	be signed by the person or persons entitled to exercise the Option and, if the Option is being exercised by anyone other than the Holder, be accompanied by proof
satisfactory to counsel for the Company of the right of such person or persons to exercise the Option under the Plan and all applicable laws and regulations; and 

	 	(c)	be accompanied by such representations, warranties or agreements with respect to the investment intent of such person or persons exercising the Option as the Company
may reasonably request, in form and substance satisfactory to counsel for the Company. 

 As conditions to the
exercise of the Option and the obligation of the Company to issue Shares upon the exercise thereof, the proposed recipient of the Shares shall make any representation or warranty to comply with any applicable law or regulation or to confirm any
factual matters reasonably requested by the Company or its counsel. 
 Upon exercise of the Option and the satisfaction of all
conditions thereto, the Company shall deliver a certificate or certificates for Shares to the specified person or persons at the specified time upon receipt of the aggregate exercise price for such Shares by any method of payment authorized by the
Plan. 
 4. Termination of Employment. Subject to the terms of a Holder’s Individual Agreement, if any, upon
termination of the Holder’s employment with the Company, the Option will be governed by Section 5(b) of the Plan; provided, however, that the provisions of Section 12(a) of the Plan shall be applicable regarding the Option if, within
two (2) years following a Change in Control (or 409A Change in Control, if defined in the Plan), the Holder’s employment with the Company or any Subsidiary or Affiliate is terminated without Cause. If, for any reason, the Option is not
treated as an Incentive Stock Option (as defined below), subject to the terms of a Holder’s Individual Agreement, if any, the Option will be governed as follows upon termination of the Holder’s employment with the Company: 

(a) Termination by Death. If the Holder’s employment with the Company or any Subsidiary or Affiliate terminates by
reason of death, the Option shall become immediately and automatically vested and exercisable. If termination of the Holder’s employment is due to death, then the Option may thereafter be exercised by the estate of the Holder (acting through
its fiduciary) at any time after the date of the Holder’s death (or as the Committee may specify after grant). Notwithstanding the foregoing, in no event will the Option be exercisable after the tenth anniversary of the date hereof. 

(b) Termination by Reason of Disability. If the Holder’s employment with the Company or any Subsidiary or Affiliate
terminates by reason of Disability, the Option shall become immediately and automatically vested and exercisable. If termination of the Holder’s employment is due to Disability, then the Option may thereafter be exercised by the Holder or by
the Holder’s duly authorized legal representative if the Holder is unable to exercise the Option as a result of the Holder’s Disability, at any time after the date of such termination of employment (or such other period as the Committee
may specify after grant). If the Holder dies before the Option is exercised, any unexercised Option held by the Holder shall thereafter be exercisable by the estate of the Holder (acting through its fiduciary) at any time after the date of the
Holder’s death (or such other period as the Committee may specify after grant). Notwithstanding the foregoing, in no event will the Option be exercisable after the tenth anniversary of the date hereof. 

(c) Termination Without Cause After a Change in Control or 409A Change in Control. Notwithstanding anything herein to the
contrary, the provisions of Section 12(a) of the Plan shall be applicable regarding the Option only if, within two (2) years following a Change in Control (or 409A Change in Control, if defined in the Plan), the Holder’s employment
with the Company or any Subsidiary or Affiliate is terminated without Cause. 

 (d) Termination for Cause. If the Holder’s employment with the Company or
any Subsidiary or Affiliate terminates for Cause, the Option will be governed by Section 5(b) of the Plan. 
 (e) Other
Termination. Unless otherwise determined by the Committee, if the Holder’s employment with the Company or any Subsidiary or Affiliate terminates other than in the circumstances described in paragraphs (a), (b), (c) or (d) of
this Section 4, any Vested Shares at the time of termination must be exercised by the Holder within three (3) months after the date the Holder’s employment terminates. Notwithstanding the foregoing, in no event will the Option be
exercisable after the tenth anniversary of the date hereof. Unless otherwise determined by the Committee, any Unvested Shares under the Option shall be forfeited upon termination. 

(f) Leave of Absence. If the Holder is granted a leave of absence by the Company or any Subsidiary or Affiliate, his or her
employment will not be considered terminated, and he or she will continue to be deemed an employee of the Company or Subsidiary or Affiliate during such leave of absence or any extension thereof granted by the Company, Subsidiary or Affiliate for
purposes of the Plan. 
 5. Transferability. The Option and the Holder’s rights therein are not transferable by the
Holder other than by will or the laws of descent and distribution or pursuant to a qualified domestic relations order (as defined in the Internal Revenue Code or the Employee Retirement Income Security Act of 1974, as amended). If, for any reason,
the Option is not treated as an Incentive Stock Option, the Holder may transfer the Option, during his or her lifetime (a) to one or more members of such Holder’s family, (b) to one or more trusts for the benefit of one or more of
such Holder’s family, (c) to a partnership or partnerships of members of such Holder’s family, or (d) to a charitable organization as defined in Section 501(c)(3) of the Code, provided that no consideration is paid for the
transfer and that the transfer would not result in the loss of any exemption under Rule 16b-3 of the Securities Exchange Act of 1934, as amended, with respect to any Option. The transferee of any Option will be subject to all restrictions, terms and
conditions applicable to the Option prior to its transfer. 
 6. Taxes. The Holder hereby agrees to pay to the Company,
in accordance with the terms of the Plan, any federal, state or local taxes of any kind required by law to be withheld and remitted by the Company with respect to an exercise of the Option. The Holder may satisfy such tax obligation, in whole or in
part, by (a) electing to have the Company withhold a portion of the Shares otherwise to be delivered upon exercise of (or the lapse of restrictions relating to) the Option with a Fair Market Value equal to the amount of such taxes, or
(b) delivering to the Company Shares other than Shares issuable upon exercise of (or the lapse of restrictions relating to) the Option with a Fair Market Value equal to the amount of such taxes. The election, if any, must be made on or before
the date that the amount of tax to be withheld is determined. If the Holder does not make such payment to the Company, the Company shall have the right to withhold from any payment of any kind otherwise due to the Holder from the Company, any
federal, state or local taxes of any kind required by law to be withheld with respect to an exercise of the Option or the Shares which are the subject of such Option. 
 7. Subject to the Plan. This Agreement is made and the Option evidenced hereby is granted under and pursuant to, and they are expressly made subject to all of the terms and conditions of, the Plan,
notwithstanding anything herein to the contrary. The Holder hereby acknowledges receipt of a copy of the Plan and that the Holder has read and understands the terms and conditions of the Plan. Capitalized terms not defined herein are used as defined
in the Plan. 
 8. Intent. The Option is intended to be treated as an Incentive Stock Option within the meaning of
Section 422 of the Internal Revenue Code (an “Incentive Stock Option”). The Option shall be construed and exercised consistent with such intention. It is acknowledged that the United States Treasury Department may amend or modify from
time to time its regulations governing Incentive Stock Options. Accordingly, it is understood and agreed by the Holder that the Company may amend or modify the Plan and this Agreement in any respect deemed by the Company to be necessary or desirable
to comply with such regulations, as amended or modified from time to time or to meet the requirements for an Incentive Stock Option. 

 9. Securities Law Compliance. 

(a) Notwithstanding any provision of this Agreement to the contrary, the Option shall not be exercisable unless, at the time the Holder
attempts to exercise the Option, in the opinion of counsel for the Company, all applicable securities laws, rules and regulations have been complied with. The Holder agrees that the Company may impose such restrictions on the Shares as are deemed
advisable by the Company, including, without limitation, restrictions relating to listing or trading requirements. The Holder further agrees that certificates representing the Shares may bear such legends and statements as the Company shall deem
appropriate or advisable to assure, among other things, compliance with applicable securities laws, rules and regulations. 

(b) The Holder agrees that any Shares which the Holder may acquire by virtue of the Option may not be transferred, sold, assigned,
pledged, hypothecated or otherwise disposed of by the Holder unless (i) a registration statement or post-effective amendment to a registration statement under the Securities Act of 1933, as amended, with respect to such Shares has become
effective so as to permit the sale or other disposition of such Shares by the Holder, or (ii) there is presented to the Company an opinion of counsel satisfactory to the Company to the effect that the sale or other proposed disposition of such
Shares by the Holder may lawfully be made otherwise than pursuant to an effective registration statement of post-effective amendment to a registration statement relating to such Shares under the Securities Act of 1933, as amended. 

10. Rights of the Holder. The granting of the Option shall in and of itself not confer any right on the Holder to continue in the
employ of the Company and shall not interfere in any way with the right of the Company to terminate the Holder’s employment at any time, subject to the terms of any employment agreement between the Company and the Holder. The Holder shall have
no dividend, voting or other rights of a stockholder with respect to the Shares which are subject to the Option prior to the purchase of such Shares upon exercise of the Option and the execution and delivery of all other documents and instruments
deemed necessary or desirable by the Company. 
 11. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Ohio, except to the extent otherwise governed by Federal law. 
 IN WITNESS WHEREOF,
the parties have subscribed their names hereto as of the date first above written. 
  

			
	DDR Corp., an Ohio corporation
		
	By:	 	 
	
	 
	Holder’s Signature:

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