Document:

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                                  EXHIBIT 10(c)

                           PARKER-HANNIFIN CORPORATION

                             EXECUTIVE DEFERRAL PLAN

     WHEREAS, the Parker-Hannifin Corporation Executive Deferral Plan (the
"Plan") was originally established as of October 1, 1994, for the purpose of
attracting high quality executives and promoting in its executives increased
efficiency and an interest in the successful operation of the Company by
offering a deferral opportunity to accumulate capital on favorable economic
terms; and

     WHEREAS, pursuant to the authority granted in Article 14 of the Plan,
Parker-Hannifin Corporation (the "Company"), has the authority to amend the
Plan; and

     WHEREAS, the Plan has been amended from time to time; and

     WHEREAS, the Company now desires to further amend the Plan;

     NOW, THEREFORE, the Plan is hereby amended and restated as of January 1,
2002 except as may be otherwise specifically set forth hereinafter.

                                    ARTICLE 1

                                   Definitions

     1.1  Account shall mean the sum of the Annual Deferral Account and all LTI
Deferral Accounts (vested and unvested).

     1.2  Administrator shall mean the Company or, if applicable, the committee
appointed by the Board of Directors of the Company to administer the Plan
pursuant to Article 12 of the Plan.

     1.3  Annual Deferral shall mean the amount of Compensation which the
Participant elects to defer for a Plan Year pursuant to Articles 2 and 3 of the
Plan.

     1.4  Annual Deferral Account shall mean the notional account established
with respect to a Participant's Annual Deferrals and Automatic Deferrals for
recordkeeping purposes pursuant to Article 4 of the Plan.

     1.5  Automatic Deferral shall mean any amount automatically deferred to
this Plan pursuant to Section 3.4 of this Plan.

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     1.6  Beneficiary shall mean the person or persons or entity designated as
such in accordance with Article 13 of the Plan.

     1.7  Board shall mean the Board of Directors of the Company.

     1.8  Bonuses shall mean amounts paid in cash to the Participant by the
Company in the form of annual and other regular periodic bonuses before
reductions for deferrals under this Plan, the Savings Plan or the Savings
Restoration Plan. "Annual and other regular periodic bonuses" shall include
amounts payable under the Company's Return on Net Assets Plan (RONA) and the
Target Incentive Program, but shall exclude any payments under any long-term
incentive program, any volume incentive or similar bonus program, and any other
extraordinary bonus or incentive program.

     1.9  Change in Control shall mean any of the following events have
occurred:

          (i)   any "person" (as such term is defined in Section 3(a)(9) of the
Securities Exchange Act of 1934 (the "Exchange Act") and as used in Sections
13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a "beneficial owner"
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing 20% or more of the combined voting power
of the Company's then outstanding securities eligible to vote for the election
of the Board (the "Company Voting Securities"); provided, however, that the
event described in this paragraph shall not be deemed to be a Change in Control
by virtue of any of the following situations: (A) an acquisition by the Company
or any corporation or other entity in which the Company has a direct or indirect
ownership interest of 50% or more of the total combined voting power of the then
outstanding securities or interests of such corporation or other entity (a
"Subsidiary"); (B) an acquisition by any employee benefit plan sponsored or
maintained by the Company or any Subsidiary; (C) an acquisition by any
underwriter temporarily holding securities pursuant to an offering of such
securities; (D) a Non-Control Transaction (as defined in paragraph (iii)); (E)
as pertains to a Participant, any acquisition by the Participant or any group of
persons (within the meaning of Sections 13(d)(3) and 14(d)(2) of the Exchange
Act) including the Participant (or any entity in which the Participant or a
group of persons including the Participant, directly or indirectly, holds a
majority of the voting power of such entity's outstanding voting interests); or
(F) the acquisition of Company Voting Securities from the Company, if a majority
of the Board approves a resolution providing expressly that the acquisition
pursuant to this clause (F) does not constitute a Change in Control under this
paragraph (i);

          (ii)  individuals who, at the beginning of any period of twenty-four
(24) consecutive months, constitute the Board (the "Incumbent Board") cease for
any reason to constitute at least a majority thereof; provided, that (A) any
person becoming a director subsequent to the beginning of such twenty-four (24)
month period, whose election, or nomination for election, by the Company's
shareholders was approved by a vote of at least two-thirds of the directors
comprising the Incumbent Board who are then on the Board (either by a specific
vote or by approval of the proxy statement of the Company in which such person
is named as a nominee for director, without objection to such nomination) shall
be, for purposes of

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this paragraph (ii), considered as though such person were a member of the
Incumbent Board; provided, however, that no individual initially elected or
nominated as a director of the Company as a result of an actual or threatened
election contest with respect to directors or any other actual or threatened
solicitation of proxies or consents by or on behalf of any person other than the
Board shall be deemed to be a member of the Incumbent Board;

          (iii) the consummation of a merger, consolidation, share exchange or
similar form of corporate reorganization of the Company or any Subsidiary that
requires the approval of the Company's stockholders, whether for such
transaction or the issuance of securities in connection with the transaction or
otherwise (a "Business Combination"), unless (A) immediately following such
Business Combination: (1) more than 50% of the total voting power of the
corporation resulting from such Business Combination (the "Surviving
Corporation") or, if applicable, the ultimate parent corporation which directly
or indirectly has beneficial ownership of 100% of the voting securities eligible
to e1ect directors of the Surviving Corporation (the "Parent Corporation"), is
represented by Company Voting Securities that were outstanding immediately prior
to the Business Combination (or, if applicable, shares into which such Company
Voting Securities were converted pursuant to such Business Combination), and
such voting power among the holders thereof is in substantially the same
proportion as the voting power of such Company Voting Securities among the
holders thereof immediately prior to the Business Combination, (2) no person
(other than any employee benefit plan sponsored or maintained by the Surviving
Corporation or the Parent Corporation) is or becomes the beneficial owner,
directly or indirectly, of 20% or more of the total voting power of the
outstanding voting securities eligible to elect directors of the Parent
Corporation (or, if there is no Parent Corporation, the Surviving Corporation),
and (3) at least a majority of the members of the board of directors of the
Parent Corporation (or, if there is no Parent Corporation, the Surviving
Corporation), following the Business Combination, were members of the Incumbent
Board at the time of the Board's approval of the execution of the initial
agreement providing for such Business Combination (a "Non-Control Transaction")
or (B) the Business Combination is effected by means of the acquisition of
Company Voting Securities from the Company, and a majority of the Board approves
a resolution providing expressly that such Business Combination does not
constitute a Change in Control under this paragraph (iii); or

          (iv)  the stockholders of the Company approve a plan of complete
liquidation or dissolution of the Company or the sale or other disposition of
all or substantially all of the assets of the Company and its Subsidiaries.

     Notwithstanding the foregoing, a Change in Control shall not be deemed to
occur solely because any person acquires beneficial ownership of more than 20%
of the Company Voting Securities as a result of the acquisition of Company
Voting Securities by the Company which, by reducing the number of Company Voting
Securities outstanding, increases the percentage of shares beneficially owned by
such person; provided, that if a Change in Control would occur as a result of
such an acquisition by the Company (if not for the operation of this sentence),
and after the Company's acquisition such person becomes the beneficial owner of
additional Company Voting Securities that increases the percentage of
outstanding Company Voting Securities beneficially owned by such person, a
Change in Control shall then occur.

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     Notwithstanding anything in this Plan to the contrary, if the Participant's
employment is terminated prior to a Change in Control, and the Participant
reasonably demonstrates that such termination was at the request of a third
party who has indicated an intention or taken steps reasonably calculated to
effect a Change in Control (a "Third Party"), then for all purposes of this
Plan, the date immediately prior to the date of such termination of employment
shall be deemed to be the date of a Change in Control for such Participant.

     1.10 Code shall mean the Internal Revenue Code of 1986, as amended from
time to time.

     1.11 Compensation shall mean the sum of the Participant's Salary and
anticipated Bonuses for a Plan Year before reductions for deferrals under this
Plan, the Savings Plan, the Savings Restoration Plan, or the Benefits Plus
Program. Compensation shall not include any amounts payable on account of
Termination of Employment, whether paid periodically or in a lump sum.

     1.12 Crediting Rate shall mean any notional gains or losses equal to those
generated as if the Participant's Account balance had been invested in one or
more of the investment portfolios designated as available by the Administrator,
less separate account fees and less applicable administrative charges determined
annually by the Administrator.

     A Participant (or after his death, his Beneficiary) may elect to allocate
his Account among the available portfolios. The gains or losses shall be
credited based upon the daily unit values for the portfolio(s) selected by the
Participant. The rules and procedures for allocating the Account balance among
the portfolios shall be determined by the Administrator. The Participant's
allocation is solely for the purpose of calculating the Crediting Rate.
Notwithstanding the method of calculating the Crediting Rate, the Company shall
be under no obligation to purchase any investments designated by the
Participant.

     1.13 Disability shall mean any long term disability as defined under the
Company's long term disability plan. The Administrator, in its complete and sole
discretion, shall determine a Participant's Disability. The Administrator may
require that the Participant submit to an examination on an annual basis, at the
expense of the Company, by a competent physician or medical clinic selected by
the Administrator to confirm Disability. On the basis of such medical evidence,
the determination of the Administrator as to whether or not a condition of
Disability exists or continues shall be conclusive.

     1.14 Early Retirement Date shall mean age 55 with ten or more years of
employment with the Company; provided, however, that any Early Retirement prior
to age 60 must be with the consent of the Compensation Committee of the Board.

     1.15 Eligible Executive shall mean a key employee of the Company or any of
its subsidiaries who: (a) is designated by the Administrator as eligible to
participate in the Plan

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(subject to the restriction in Sections 9.2, 10.3 and 11.2 of the Plan); and (b)
qualifies as a member of the "select group of management or highly compensated
employees" under ERISA.

     1.16 ERISA shall mean the Employee Retirement Income Security Act of 1974,
as amended.

     1.17 Financial Hardship shall mean an unexpected need for cash arising from
an illness, casualty loss, sudden financial reversal, or other such
unforeseeable occurrence as determined by the Administrator. Cash needs arising
from foreseeable events such as the purchase of a residence or education
expenses for children shall not, alone, be considered a Financial Hardship.

     1.18 In-Service Distribution shall mean a distribution elected by the
Participant pursuant to Article 10 of the Plan.

     1.19 LTI Payment shall mean the amount that would otherwise be payable to
an Eligible Executive for a Plan Year under any long-term incentive program of
the Company.

     1.20 LTI Deferral shall mean the amount of any LTI Payment which the
Participant elects to defer with respect to a Plan Year pursuant to Articles 2
and 3 of the Plan.

     1.21 LTI Deferral Account shall mean the one or more notional accounts
established with respect to a Participant's LTI Deferrals for recordkeeping
purposes pursuant to Article 4 of the Plan.

     1.22 Normal Retirement Date shall mean the date on which a Participant
attains age 65.

     1.23 Participant shall mean an Eligible Executive who has elected to
participate and has completed a Participation Agreement pursuant to Article 2 of
the Plan.

     1.24 Participation Agreement shall mean the Participant's written election
to participate in the Plan.

     1.25 Plan Year shall mean the calendar year.

     1.26 Retirement shall mean a termination of employment following Normal or
Early Retirement Date.

     1.27 Salary shall mean the Participant's annual basic rate of pay from the
Company (excluding Bonuses, commissions and other non-regular forms of
compensation) before reductions for deferrals under this Plan, the Savings Plan
or the Savings Restoration Plan.

     1.28 Savings Plan shall mean The Parker Retirement Savings Plan as it
currently exists and as it may subsequently be amended.

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     1.29 Savings Restoration Plan shall mean the Parker-Hannifin Corporation
Savings Restoration Plan as it currently exists and as it may subsequently be
amended.

     1.30 Scheduled Withdrawal shall mean a distribution of all or a portion of
the entire vested amount credited to the Participant's Account requested by the
Participant pursuant to the provisions of Article 10 of the Plan.

     1.31 Termination of Employment shall mean the Participant's employment with
the Company ceases for any reason whatsoever, whether voluntary or involuntary,
other than Retirement or death.

     1.32 Unscheduled Withdrawal shall mean a distribution of all or a portion
of the entire amount credited to the Participant's Account requested by the
Participant pursuant to the provisions of Article 10 of the Plan.

     1.33 Valuation Date shall mean each day on which the New York Stock
Exchange is open, except that for purposes of determining the value of a
distribution under Article 5, 6, 7, 8 or 14, it shall mean the 24th day of each
month (or the most recent business day preceding such date) immediately
preceding the month in which a distribution is to be made.

                                    ARTICLE 2

                                  Participation

     2.1  Participation Agreement/Deferrals.

     (a)  An Eligible Executive shall become a Participant in the Plan on the
first day of the Plan Year following appointment as an Eligible Executive and
submission to the Administrator of an Annual Participation Agreement. To be
effective, the Eligible Executive must submit the Annual Participation Agreement
to the Administrator during the enrollment period designated by the
Administrator. In the Annual Participation Agreement, and subject to the
restrictions in Article 3, the Eligible Executive shall designate the Annual
Deferral for the covered Plan Year.

     (b)  In addition, an Eligible Executive shall become a Participant
automatically as of the date Automatic Deferrals are credited to his Account
pursuant to Section 3.4.

     (c)  With respect to those Participants who are eligible for an LTI
Payment, the Administrator shall provide for a separate enrollment period and
separate LTI Participation Agreements each year under which the Participant may
designate any LTI Deferrals for a specified Plan Year.

     2.2  Continuation of Participation. An Eligible Executive who has become a
Participant in the Plan shall continue as a Participant in the Plan even though
such executive ceases to be an Eligible Executive. However, a Participant shall
not be eligible to elect a new

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Annual Deferral or LTI Deferral unless the Participant is an Eligible Executive
for the Plan Year for which the election is made.

                                    ARTICLE 3

                               Executive Deferrals

     3.1  Deferral Commitment.

     (a)  A Participant may elect in the Annual Participation Agreement to defer
an amount equal to a specified dollar amount of Salary and a specified dollar
amount or percentage of Bonuses to be earned by such Participant during the next
Plan Year.

     (b)  A Participant may elect in the LTI Participation Agreement to defer an
amount equal to a specified dollar amount or a percentage of LTI Payment that
may be payable to the Participant in the next Plan Year.

     (c)  Annual Deferrals and LTI Deferrals under this Plan shall be
irrevocable.

     3.2  Minimum Annual Election.

     (a)  A Participant's elected Annual Deferral for a Plan Year must equal at
least five thousand dollars ($5,000), from either Salary or Bonuses or a
combination of Salary and Bonuses.

     (b)  The elected LTI Deferral for a Plan Year must equal at least five
thousand dollars ($5,000).

     (c)  Where a Participant elects to defer a specified percentage of Salary,
Bonuses, and/or LTI Payment, the determination of whether the Annual Deferral or
LTI Deferral is at least five thousand dollars ($5,000) shall be made by
multiplying the applicable elected percentages of Salary, Bonuses, and/or LTI
Payment to be deferred by the Participant's anticipated Salary, Bonuses, and/or
LTI Payment in the Plan Year immediately preceding the Plan Year for which the
Deferral is being made. The Administrator may, in its sole discretion, permit
Participants to elect to defer amounts in the form of a percentage based on
anticipated future Salary, Bonuses, and/or LTI Payments.

     3.3  Maximum Deferral Commitment.

     (a)  The Annual Deferral for any Plan Year may not exceed 20% of Salary
plus 75% of Bonuses; provided, that the Annual Deferral may not reduce the
Participant's income to an amount below the old age, survivor, and disability
insurance wage base under Social Security.

     (b)  The LTI Deferral for a Plan Year may be 100% of the LTI Payment.

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     (c)  Notwithstanding the foregoing, the Administrator may reduce the amount
of an Annual Deferral and/or an LTI Deferral to the extent necessary to insure
the Participant will have sufficient earnings from the Company from which to
take any taxes required to be withheld from the Participant's earnings under
federal, state or local law.

     3.4  Automatic Deferrals. An amount equal to any Compensation that is not
paid to an Eligible Executive because it cannot be deducted by the Company by
reason of Section 162(m) of the Code shall be deemed to have been deferred under
this Plan.

     3.5  Vesting. Subject to Section 11.3:

     (a)  The Participant's right to the value of his Annual Deferral Account,
as adjusted for gains and losses, shall be 100% vested at all times.

     (b)  The Participant's right to the value of each LTI Deferral Account, as
adjusted for gains and losses, shall be 100% vested as of the third June 30
following the time the LTI Deferral Account is established; provided, however,
that the Participant shall be fully vested in all LTI Deferrals as of the time:
(1) he reaches age 60; (2) he retires prior to age 60 with permission of the
Compensation Committee of the Board; (3) he retires due to Disability; (4) he
dies; (5) there is a Change in Control; or (6) the Plan terminates.

                                    ARTICLE 4

                                    Accounts

     4.1  Accounts. Solely for recordkeeping purposes, the Company shall
maintain for each Participant one Annual Deferral Account for all Annual
Deferrals and all Automatic Deferrals, and shall maintain for each Participant a
separate LTI Deferral Account with respect to each LTI Deferral made by the
Participant.

     4.2  Timing of Credits--Pre-Termination. Each Plan Year, the Company shall
credit to the Annual Deferral Account a Participant's Annual Deferrals and any
Automatic Deferrals as of the time the deferrals would otherwise have been paid
to the Participant but for the Annual Deferral election or the operation of
Section 162(m) of the Code, and shall credit to a separate LTI Deferral Account
a Participant's LTI Deferral as of the time the deferrals would otherwise have
been paid to the Participant but for the LTI Deferral election. Gains or losses
shall be credited to the Participant's Account as of the close of business on
each Valuation Date, based on the Crediting Rate(s) in effect for the day under
Section 1.6.

     4.3  Terminations. Following a Participant's Termination of Employment,
Retirement or death, gains or losses shall continue to be credited to the
Participant's Account through the final Valuation Date.

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     4.4  Statement of Accounts. The Administrator shall provide periodically to
each Participant a statement setting forth the balance of the Annual Deferral
Account and each LTI Deferral Account maintained for such Participant.

                                    ARTICLE 5

                               Retirement Benefits

     5.1  Amount. Upon Retirement, the Company shall pay to the Participant the
value of his Account at the time and in the manner selected by the Participant
pursuant to the rules set forth in Sections 5.2 and 5.3.

     5.2  Form of Retirement Benefits. The retirement benefit shall be paid
monthly over a period of fifteen (15) years or the number of whole years
required to result in a monthly benefit of at least one thousand dollars
($1,000), if less; provided, however, that the Participant may elect to have
payment made in one of the following options:

          (i)   a single lump sum payment in cash;

          (ii)  monthly installments over 5, 10 or 15 years; provided, that if a
monthly benefit is less than $1,000, the Administrator may shorten the payout
period in whole year increments to assure that each monthly payment is at least
$1,000; or

          (iii) an annual lump sum amount payable as of January 1 of each year
equal to a specified whole number percentage (1-8%) of the account balance as of
the Valuation Date preceding each such annual payment, plus monthly installments
of the remaining balance of the account over 5, 10 or 15 years; provided, that
if a monthly benefit is less than $1,000, the Administrator may shorten the
payout period in whole year increments to assure that each monthly payment is at
least $1,000.

     Payments shall be made or shall begin as of the first day of the month no
later than the date sixty (60) days after the Participant's Retirement, unless
the Participant has elected to have payments begin as of January l of a later
year. However, in no event shall payments commence later than the January 1
occurring five (5) years after Retirement or, if earlier, the January 1
following the date the Participant attains age seventy (70). Notwithstanding the
foregoing, the Company may postpone all or a portion of any scheduled payment
until the next fiscal year to avoid loss of the corporate tax deduction under
Internal Revenue Code Section 162(m). Except as provided under Article 6, 9, 10
or 14, the Participant may change the election of the form of payment at any
time, except that if the election is not filed at least thirteen (13) months
prior to the Participant's scheduled date of commencement of payment, the
election shall be ineffective unless the Participant agrees to take a ten
percent (10%) reduction in the value of the Account.

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     5.3  Small Benefit Exception. Notwithstanding any of the foregoing, if the
sum of all benefits payable to the Participant is less than or equal to ten
thousand dollars ($10,000), the Company shall pay such benefits in a single lump
sum.

                                    ARTICLE 6

                              Termination Benefits

     6.1  Amount. As of the first day of the month beginning no later than sixty
(60) days after Termination of Employment, the Company shall pay to the
Participant a termination benefit equal to the balance as of the Valuation Date
of the Annual Deferral Account and each LTI Deferral Account in which he is
vested under Section 3.5(b).

     6.2  Form of Termination Benefits. The Company shall pay the termination
benefits in a single lump sum; provided, however, that except following a Change
in Control the Company may, in its sole discretion, elect to pay the termination
benefits over a period of three (3) years in monthly installments, in which
event the Account shall continue to be credited with gains and losses based on
the Crediting Rate(s) elected by the Participant from time to time.

                                    ARTICLE 7

                                Survivor Benefits

     7.1  Pre-Commencement Survivor Benefit. If the Participant dies prior to
the commencement of installment payments, the Company shall pay the balance of
the Account to the Participant's Beneficiary in one of the following forms,
based on the Participant's election:

          (i)   a single lump sum payment in cash;

          (ii)  monthly installments over 5, 10 or 15 years; provided, that if a
monthly benefit is less than $1,000, the Administrator may shorten the payout
period in whole year increments to assure that each monthly payment is at least
$1,000; or

          (iii) an annual lump sum amount equal to a specified percentage (1-8%)
of the account balance as of the Valuation Date preceding each such annual
payment, plus monthly installments of the remaining balance of the account over
5, 10 or 15 years; provided, that if a monthly benefit is less than $1,000, the
Administrator may shorten the payout period in whole year increments to assure
that each monthly payment is at least $1,000.

     Payments shall be made or shall begin as of the first day of the month no
later than the date sixty (60) days after the Participant's death unless the
Participant has elected to have payments begin as of January l of a later year.
However, in no event shall payments commence later than the January 1 occurring
five (5) years after death or, if earlier, the January 1 following the date the
Participant would have attained age seventy (70). Except as provided in Article
9, 10

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or 14 the Participant (or after his death, his Beneficiary) may change the
election of the form of payment at any time, except that if the election is not
filed at least thirteen (13) months prior to the Participant's death, the
election shall be ineffective unless the Beneficiary agrees to take a ten
percent (10%) reduction in the value of the Account.

     7.2  Post-Commencement Survivor Benefit. If the Participant dies after the
time installment payments have commenced, the Company shall pay the remaining
balance of the Account to the Participant's Beneficiary in accordance with the
following rules, based on the Participant's election:

          (i)   continue in the form in effect before the Participant's death;
or

          (ii)  a single lump sum in cash to be paid the first of the month no
later than the date 60 days after the Participant's death.

     7.3  Small Benefit Payment. Notwithstanding any of the foregoing, in the
event the sum of all benefits payable to the Beneficiary is less than or equal
to ten thousand dollars ($10,000), the Company shall pay such benefits in a
single lump sum.

                                    ARTICLE 8

                                   Disability

     If a Participant suffers a Disability, the Company shall pay the balance of
the Participant's Account as of the Valuation Date to the Participant in
accordance with Article 5 as if the date of the Participant's Termination of
Employment for Disability were the Participant's Normal Retirement Date.

                                    ARTICLE 9

                                Change in Control

     9.1  Distribution.

     (a)  If a Change in Control occurs, the Participant (or after the
Participant's death the Participant's Beneficiary) shall receive a lump sum
payment of the balance of the Account within thirty (30) days after the Change
of Control. In the event such a distribution is made, the Participant shall
receive an additional adjustment payment calculated in accordance with the
formula set forth in Exhibit A hereto.

     (b)  In addition to any other amounts payable hereunder, in the event it
shall be determined that any payment, distribution or acceleration of vesting of
any benefit hereunder would be subject to the excise tax imposed by Section 4999
of the Code, or any successor provision, or any interest or penalties are
incurred by the Participant with respect to such excise

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tax, then the Participant shall be entitled to receive an additional "gross-up
payment" calculated as set forth in the change in control severance agreement in
effect between the Company and the Participant as of the date of the Change in
Control; provided, however, that if the Participant does not have a change in
control severance agreement, the payment under this Section shall be determined
in accordance with the calculation set forth in the most recent change in
control severance agreement entered into by the Company and any executive of the
Company; provided, further, that there shall be no duplication of such
additional payment under this Plan and any change in control severance
agreement.

                                   ARTICLE 10

     Scheduled and Unscheduled Withdrawals, Financial Hardship Distributions

     10.1 Payment of Scheduled Withdrawal. No later than the last day of March
of the Plan Year designated in the initial Annual Participation Agreement for a
Scheduled Withdrawal (which date shall be no sooner than the January 1 following
5 years of participation), the Company shall pay to the Participant, in a lump
sum or four approximately equal annual installments, all or a portion of the
vested balance in the Participant's Annual Deferral and/or his LTI Deferral
Account as of the Valuation Date preceding the time payment is made or
commences.

     10.2 Unscheduled Withdrawal. A Participant (or Beneficiary if the
Participant is deceased) may request an Unscheduled Withdrawal of all or any
portion of the vested balance credited to the Participant's Account as of the
Valuation Date on which the written request is received by the Administrator,
which shall be paid in a single lump sum as soon as practicable following
receipt of the request; provided, however, (i) that the minimum withdrawal shall
be twenty-five percent (25%) of the vested Account balance, and (ii) that an
election to withdraw seventy-five percent (75%) or more of the vested Account
balance shall be deemed to be an election to withdraw the entire vested Account
balance.

     10.3 Unscheduled Withdrawal Penalty. There shall be a penalty deducted from
the Account prior to an Unscheduled Withdrawal equal to ten percent (10%) of the
Unscheduled Withdrawal, which shall be ratably allocated among the Participant's
Annual Deferral Account and each of his vested LTI Deferral Accounts. If a
Participant elects such a withdrawal, any on-going Annual Deferral shall cease,
any election of an LTI Deferral that otherwise would be effective before the
first day of the Plan Year beginning one full Plan Year after such withdrawal
shall not be effective, and the Participant may not make any further deferrals
until one entire Plan Year following the Plan Year in which such withdrawal was
made has elapsed.

     10.4 Financial Hardship Distribution. Upon a finding that the Participant
or the Beneficiary has suffered a Financial Hardship, the Administrator may in
its sole discretion, permit the Participant to request distribution of a portion
or all of his vested benefits under the Plan in the amount reasonably necessary
to alleviate such Financial Hardship, which shall be ratably allocated among the
Participant's Annual Deferral Account and each of his vested LTI

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Deferral Accounts. If a distribution is to be made to a Participant on account
of Financial Hardship, any on-going Annual Deferrals shall cease, any election
of an LTI Deferral that otherwise would be effective before the first day of the
Plan Year beginning one full Plan Year after such withdrawal shall not be
effective, and the Participant may not make any further deferrals until one
entire Plan Year following the Plan Year in which such withdrawal was made has
elapsed; however, there shall be no withdrawal penalty assessed.

     10.5 Small Benefit Exception. Notwithstanding any of the foregoing, if the
sum of all vested benefits payable to the Participant or Beneficiary who has
requested any withdrawal under this Article 10 is less than or equal to ten
thousand dollars ($10,000), the Company shall elect to pay out the entire vested
Account balance (reduced, if applicable, by the ten percent (10%) penalty) in a
single lump sum.

     10.6 Limit on Withdrawals. Notwithstanding any of the foregoing, no
Eligible Executive in a position described in Section 162(m)(3) of the Code (or
who the Company reasonably believes will be in such a position) shall be
permitted to take any distribution from the Plan in any year in which he is in
or is believed to be a position described in Section 162(m)(3) of the Code.

                                   ARTICLE 11

                         Conditions Related to Benefits

     11.1 Nonassignability. The benefits provided under the Plan may not be
alienated, assigned, transferred, pledged or hypothecated by or to any person or
entity, at any time or in any manner whatsoever. 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.

     11.2 No Right to Company Assets. The benefits paid under the Plan shall be
paid from the general funds of the Company, and the Participants and any
Beneficiaries shall be no more than unsecured general creditors of the Company
with no special or prior right to any assets of the Company for payment of any
obligations hereunder.

     11.3 Protective Provisions. The Participant shall cooperate with the
Company by furnishing any and all information requested by the Administrator, in
order to facilitate the payment of benefits hereunder, taking such physical
examinations as the Administrator may deem necessary and taking such other
actions as may be requested by the Administrator. If the Participant refuses to
cooperate, the Company shall have no further obligation to the Participant under
the Plan. If the Participant makes any material misstatement of information or
nondisclosure of medical history, then no benefits shall be payable to the
Participant or the Participant's Beneficiary or estate under the Plan beyond the
sum of the Participant's Annual Deferrals and LTI Deferrals.

                                       13

<PAGE>

     11.4 Withholding. The Participant or the Beneficiary shall make appropriate
arrangements with the Company for satisfaction of any federal, state or local
income tax withholding requirements and Social Security or other employee tax
requirements applicable to the payment of benefits under the Plan. If no other
arrangements are made, the Company may provide, at its discretion, for such
withholding and tax payments as may be required.

                                   ARTICLE 12

                             Administration of Plan

     The Company shall administer the Plan, provided, however, that the Company
may elect to appoint a committee of three (3) or more individuals to administer
the Plan. All references to the Administrator herein shall refer to the Company
or, if such committee has been appointed, the committee.

     The Administrator shall administer the Plan and shall have discretionary
authority to interpret, construe and apply its provisions in accordance with its
terms. The Administrator shall further establish, adopt or revise such rules and
regulations as it may deem necessary or advisable for the administration of the
Plan. All decisions of the Administrator shall be final and binding. The
individuals serving on the committee shall, except as prohibited by law, be
indemnified and held harmless by the Company from any and all liabilities,
costs, and expenses (including legal fees), to the extent not covered by
liability insurance arising out of any action taken by any member of the
committee with respect to the Plan, unless such liability arises from the
individual's own gross negligence or willful misconduct.

                                   ARTICLE 13

                             Beneficiary Designation

     The Participant shall have the right, at any time, to designate any person
or persons as Beneficiary (both primary and contingent) to whom payment under
the Plan shall be made in the event of the Participant's death. The Beneficiary
designation shall be effective when it is submitted in writing to the
Administrator during the Participant's lifetime on a form prescribed by the
Administrator.

     The submission of a new Beneficiary designation shall cancel all prior
Beneficiary designations. Any finalized divorce or marriage of a Participant
subsequent to the date of a Beneficiary designation shall revoke such
designation, unless in the case of divorce the previous spouse was not
designated as Beneficiary and unless in the case of marriage the Participant's
new spouse has previously been designated as Beneficiary. The spouse of a
married Participant shall consent to any designation of a Beneficiary other than
the spouse, and the spouse's consent shall be witnessed by a notary public.

     If a Participant fails to designate a Beneficiary as provided above, or if
the Beneficiary designation is revoked by marriage, divorce, or otherwise
without execution of a new

                                       14

<PAGE>

designation, or if every person designated as Beneficiary predeceases the
Participant or dies prior to complete distribution of the Participant's
benefits, then the Administrator shall direct the distribution of such benefits
to the Participant's estate.

                                   ARTICLE 14

                        Amendment and Termination of Plan

     14.1 Amendment of Plan. Except as provided in Section 14.3, the Company may
at any time amend the Plan in whole or in part, provided, however, that such
amendment: (a) shall not decrease the balance of the Participant's Account at
the time of such amendment; and (b) shall not retroactively decrease the
applicable Crediting Rate of the Plan prior to the time of such amendment. The
Company may amend the Crediting Rate or Fixed Crediting Rate of the Plan
prospectively, in which case, the Company shall notify the Participant of such
amendment in writing within thirty (30) days after such amendment.

     14.2 Termination of Plan. Except as provided in Section 14.3, the Company
may at any time terminate the Plan. If the Company terminates the Plan, the date
of such termination shall be treated as the date of Retirement or Termination of
Employment for the purpose of calculating Plan benefits, and the Company shall
pay to the Participant the benefits the Participant is entitled to receive under
the Plan in monthly installments over a thirty-six (36) month period. Interest
at an annualized rate equal to 90% of the Ten-Year United States Treasury Note
rate as of January 1 of the year in which the Plan is terminated will be
credited to the Participant's Account prospectively commencing as of the date of
the Plan's termination and continuing until distribution under this Section is
completed.

     14.3 Amendment or Termination After Change in Control. Notwithstanding the
foregoing, the Company shall not amend or terminate the Plan without the prior
written consent of affected Participants for a period of two calendar years
following a Change in Control and shall not thereafter amend or terminate the
Plan in any manner which affects any Participant (or Beneficiary) who commences
receiving payment of benefits under the Plan prior to the end of such two year
period following a Change in Control.

     14.4 Company Action. Except as provided in Section 14.3 or 14.5, the
Company's power to amend or terminate the Plan shall be exercisable by the
Company's Board of Directors or by the committee or individual authorized by the
Company's Board of Directors to exercise such powers.

     14.5 Constructive Receipt Termination. In the event the Administrator
determines that amounts deferred under the Plan have been constructively
received by Participants and must be recognized as income for federal income tax
purposes, the Plan shall terminate and distributions shall be made to
Participants in accordance with the Provisions of Section 14.2 or as may be
determined by the Administrator. The determination of the Administrator under
this Section shall be binding and conclusive.

                                       15

<PAGE>

                                   ARTICLE 15

                                  Miscellaneous

     15.1  Successors of the Company. 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.

     15.2  ERISA Plan. The Plan is intended to be an unfunded plan maintained
primarily to provide deferred compensation benefits for "a select group of
management or highly compensated employees" within the meaning of Sections 201,
301 and 401 of ERISA and therefore to be exempt from Parts 2, 3 and 4 of Title I
of ERISA.

     15.3  Trust. The Company shall be responsible for the payment of all
benefits under the Plan. At its discretion, the Company may establish one or
more grantor trusts for the purpose of providing for payment of benefits under
the Plan. Such trust or trusts may be irrevocable, but the assets thereof shall
be subject to the claims of the Company's creditors. Benefits paid to the
Participant from any such trust shall be considered paid by the Company for
purposes of meeting the obligations of the Company under the Plan.

     15.4  Employment Not Guaranteed. Nothing contained in the Plan nor any
action taken hereunder shall be construed as a contract of employment or as
giving any Participant any right to continued employment with the Company.

     15.5  Gender, Singular and Plural. All pronouns and variations thereof
shall be deemed to refer to the masculine, feminine, or neuter, as the identity
of the person or persons may require. As the context may require, the singular
may be read as the plural and the plural as the singular.

     15.6  Captions. The captions of the articles and sections of the Plan are
for convenience only and shall not control or affect the meaning or construction
of any of its provisions.

     15.7  Validity. 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.

     15.8  Waiver of Breach. The waiver by the Company of any breach of any
provision of the Plan by the Participant shall not operate or be construed as a
waiver of any subsequent breach by the Participant.

     15.9  Applicable Law. The Plan shall be governed and construed in
accordance with the laws of Ohio except where the laws of Ohio are preempted by
ERISA.

     15.10 Notice. Any notice or filing required or permitted to be given to the
Company under the Plan shall be sufficient if in writing and hand-delivered, or
sent by first class mail,

                                       16

<PAGE>

facsimile or electronic mail to the principal office of the Company, directed to
the attention of the Administrator. Such notice shall be deemed given as of the
date of delivery, or, if delivery is made by mail, as of the date shown on the
postmark.

                                   ARTICLE 16

                          Claims and Review Procedures

     16.1 Claims Procedure. The Company shall notify a Participant in writing,
within ninety (90) days after his or her written application for benefits, of
his or her eligibility or noneligibility for benefits under the Plan. If the
Company determines that a Participant is not eligible for benefits or full
benefits, the notice shall set forth: (a) the specific reasons for such denial;
(b) a specific reference to the provisions of the Plan on which the denial is
based; (c) a description of any additional information or material necessary for
the claimant to perfect his or her claim, and a description of why it is needed;
and (d) an explanation of the Plan's claims review procedure and other
appropriate information as to the steps to be taken if the Participant wishes to
have the claim reviewed. If the Company determines that there are special
circumstances requiring additional time to make a decision, the Company shall
notify the Participant of the special circumstances and the date by which a
decision is expected to be made, and may extend the time for up to an additional
ninety-day period.

     16.2 Review Procedure. If a Participant is determined by the Company not to
be eligible for benefits, or if the Participant believes that he or she is
entitled to greater or different benefits, the Participant shall have the
opportunity to have such claim reviewed by the Company by filing a petition for
review with the Company within sixty (60) days after receipt of the notice
issued by the Company. Said petition shall state the specific reasons which the
Participant believes entitle him or her to benefits or to greater or different
benefits. Within sixty (60) days after receipt by the Company of the petition,
the Company shall afford the Participant (and counsel, if any) an opportunity to
present his or her position to the Company orally or in writing, and the
Participant (or counsel) shall have the right to review the pertinent documents.
The Company shall notify the Participant of its decision in writing within the
sixty-day period, stating specifically the basis of its decision, written in a
manner calculated to be understood by the Participant and the specific
provisions of the Plan on which the decision is based. If, because of the need
for a hearing, the sixty-day period is not sufficient, the decision may be
deferred for up to another sixty-day period at the election of the Company, but
notice of this deferral shall be given to the Participant. In the event of the
death of the Participant, the same procedures shall apply to the Participant's
beneficiaries.

                                       17

<PAGE>

                                    EXHIBIT A

The purpose of the adjustment payment to be added to the distribution made
pursuant to Section 9.1(a) (the "Make Whole Amount") is to offset the
Participant's inability to defer until retirement or later the payment of taxes
on the amounts deferred and the earnings and interest that would have otherwise
accrued between the date of the Change in Control and the date on which the
Participant elected to commence receipt of his Account (the "Commencement Date")
under the Plan.

The Make Whole Amount shall be calculated as follows:

1.   The Participant's Account balance under the Plan as of the date of the
     Change in Control (exclusive of Automatic Deferrals) (the "EDP Amount")
     will be projected forward to the Commencement Date at an assumed
     tax-deferred annual earnings rate equal to the Moody's Seasoned Baa
     Corporate Bond Yield Average for the last twelve full calendar months prior
     to the Change in Control (the "Moody's Rate") (such projected amount shall
     be known as the "Projected Balance"). The Projected Balance will then be
     converted into annual installment benefit payments based upon the
     Participant's elected form of retirement payments under the Plan, assuming
     continued tax-deferred earnings on the undistributed balance at the Moody's
     Rate (the "Projected Annual Payouts"). The Projected Annual Payouts will
     then be reduced for assumed income taxes at the highest applicable federal,
     state and local marginal rates of taxation in effect in the Participant's
     taxing jurisdiction(s) for the calendar year in which the Make Whole Amount
     is paid (the "Tax Rate"). The after-tax Projected Annual Payouts will be
     known as the "After-Tax Projected Benefits".

2.   The term "Made Whole Amount", as used herein, shall mean the EDP Amount
     plus the Make Whole Amount. The Make Whole Amount is the amount which, when
     added to the EDP Amount, will yield After-Tax Annuity Benefits (as
     hereinafter defined) equal to the After-Tax Projected Benefits, based on
     the following assumptions:

          a.   The Made Whole Amount will be taxed at the Tax Rate upon receipt
               by the Participant.

          b.   The after-tax Made Whole Amount will be deemed to be invested by
               the Participant in a tax-deferred annuity that is structured to
               make payments beginning on the Commencement Date in the same form
               as elected by the Participant under the Plan (the "Annuity").

          c.   The Annuity will accrue interest at the Moody's Rate, less 80
               basis points (i.e., 0.80%).

          d.   Annual Annuity payments will be taxed at the Tax Rate (after
               taking into account the annuity exclusion ratio), yielding
               "After-Tax Annuity Benefits".Agreement for Restricted Stock

  
 Exhibit 10-N 
  
 AGREEMENT FOR RESTRICTED STOCK 
 GRANTED UNDER PRIORITY HEALTHCARE CORPORATION

 1997 STOCK OPTION AND INCENTIVE PLAN 
  
 This Agreement has been entered into as of the 21st day of October, 2002 between Priority Healthcare Corporation, an Indiana corporation (the “Company”) and
                    , an employee of the Company (the “Employee”), pursuant to the Company’s 1997 Stock Option and Incentive Plan (the
“Plan”) and evidences and sets forth certain terms of the grant to the Employee pursuant to the Plan of an aggregate of              shares of Restricted Stock as of the date of
this Agreement. Capitalized terms used herein and not defined herein have the meanings set forth in the Plan. 
  
 SECTION 1.  Receipt of Plan; Restricted Stock and this Agreement Subject to Plan.    The Employee acknowledges receipt of a copy of the Plan. This Agreement and the shares of
Restricted Stock granted to Employee are subject to the terms and conditions of the Plan, all of which are incorporated herein by reference. 
  
 SECTION 2.  Restricted Period; Lapse of Restrictions and Vesting.    Of the
                 shares of Restricted Stock granted to the Employee, the restrictions on the specified portions shall lapse and such portion of the shares shall become
fully vested and not subject to forfeiture to the Company as follows:              shares on October 21, 2003;             
shares on October 21, 2004;              shares on October 21, 2005; and              shares on October 21, 2006. 

 
 SECTION 3.  Certificates for Shares.    Each certificate representing the
shares of Restricted Stock granted to the Employee shall be registered in the name of the Employee and deposited by the Employee, together with a stock power endorsed in blank, with the Company and shall bear the following (or a similar) legend:

  
 “The transferability of this certificate and the shares of stock represented hereby are
subject to the terms and conditions (including forfeiture) contained in the 1997 Stock Option and Incentive Plan of Priority Healthcare Corporation and an Agreement for Restricted Stock entered into between the registered owner and Priority
Healthcare Corporation. Copies of such Plan and Agreement are on file in the office of the Secretary of Priority Healthcare Corporation.” 
  
 Upon the lapse of restrictions on any portion of such shares of Restricted Stock, the Company shall promptly deliver a stock certificate for such portion of shares to the Employee. 

 
 SECTION 4.  Transferability.    Until such time as the restrictions on the
shares of Restricted Stock granted to Employee have lapsed and such shares are no longer subject to forfeiture to the Company, the Employee shall not sell, assign, transfer, pledge or otherwise encumber such shares of Restricted Stock. 

 
 SECTION 5.  Termination.    If the Continuous Service of an Employee is
terminated for cause, or voluntarily by the Employee for any reason (other than death, total or partial disability or normal or early retirement), all shares of Restricted Stock granted to the Employee which at the time of such termination of
Continuous Service are still subject to restrictions shall upon such termination of Continuous Service be forfeited and returned to the Company. 
  
 If the Employee ceases to maintain Continuous Service by reason of death or total or partial disability, then the restrictions with respect to the Ratable Portion of the shares of Restricted Stock
granted to the Employee shall lapse and such shares shall be free of restrictions and shall not be forfeited. 
  
 If
the Employee ceases to maintain Continuous Service by reason of normal or early retirement, all terms of the shares of Restricted Stock granted to the Employee shall remain the same as provided in this Agreement and shall not be forfeited.

  
 If the Employee is terminated without cause, any Restricted Period shall lapse upon such termination and all
shares of Restricted Stock granted to the employee shall become fully vested to the Employee. 
  
 If the Continuous
Service of the Employee is involuntarily terminated, for whatever reason, at any time within twelve months after a Change in Control, any Restricted Period with respect to the shares of Restricted Stock granted to the Employee shall lapse upon such
termination and all shares of Restricted Stock granted to the Employee shall become fully vested in the Employee. 

 
 17 

  
 SECTION 6.  83(b)
Election.    The Employee agrees not to make any election under Section 83(b) of the Code with respect to any shares of Restricted Stock granted under this Agreement. 
  
 IN WITNESS WHEREOF, this Agreement has been executed by the undersigned thereunto duly authorized as of the date first above written. 
  
 
	 PRIORITY HEALTHCARE CORPORATION
 
	 
	 By:
 	 	 

	  	 	 Name:
 Title:
 
	 
	 

	 
	 [Name of Employee]
 

 

 
 18

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