Document:

Description of the Parker-Hannifin Corporation Officer Life Insurance Plan

 Exhibit 10(h) 
  
 

 
  
 OFFICER LIFE INSURANCE PLAN

  
 Summary Plan Document 
  
 September 2005 

 What is the purpose of these Questions & Answers? 
  
 These Questions & Answers are intended to answer questions you may have about the Parker
Hannifin Corporation Officer Life Insurance Plan. They are not intended to be comprehensive and do not address all tax and legal issues surrounding the Plan. You should consult with your personal tax and legal counsel regarding your personal income
and estate tax situation as it relates to this Plan. 
  
 You should also be aware
that the benefit plans and policies established by Parker Hannifin Corporation for its employees should not be construed to be a guarantee or contract of employment. As is customary with such benefit plans and human resources policies, Parker
reserves the right to change or discontinue the Plan at any time and for any reason. 
  
 What is the Parker Hannifin Corporation Officer Life Insurance Plan? 
  
 The Parker Officer Life Insurance Plan is designed to provide corporate officers of Parker with a comprehensive life insurance benefit targeted at 3 times* annual salary during their working careers at Parker
Hannifin, and a life insurance benefit targeted at up to 2 times final salary during retirement. Parker has adopted the Plan to provide enhanced pre- and post-retirement life insurance death benefits for key executives as a means to attract and
retain qualified personnel. This purpose is attained through Parker’s funding of a cash value life insurance Policy that is participant-owned. While the primary purpose of the Plan is to provide an insured death benefit during employment and
after retirement, the insurance Policy will allow for accumulation of cash surrender value that could be used to supplement retirement income. 
  
 How do I become a participant in the Plan? 
  
 You will receive notification of your eligibility from Parker together with an enrollment package. You will become a participant in the Plan by completing the enrollment
and application items by the enrollment deadline, and upon approval by the life insurance carrier, Sun Life. You will be contacted if further information and/or actions are required. 
  
 What are the benefits of participating in this Plan? 
  
 Officers participating in this Plan will receive the following benefits: 
  

	•	 	Substantial Life Insurance Benefits: 

  

			
	Pre-retirement	  	3 x Salary *
	Post-retirement	  	up to 2 x Final Salary**

	*	4 x Salary for Office of Chief Executive; 5 x Salary for Chief Executive Officer 

	**	Designed to last until age 95. 

  

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	•	Benefit Security/Control: You, as the participant, own the life insurance Policy and will ultimately enjoy complete control over its disposition.

  

	•	Estate/Retirement Planning Flexibility: Because the benefit is participant-owned and funded by an individual life insurance Policy, you will decide how to
integrate its features into your overall personal retirement and/or estate plan. 

  

	•	Investment Choice/Flexibility Parker will make all premium payments under the Plan. However, you will be responsible for allocating the net Policy cash values among
the “family” of separate investment accounts that are a part of the Policy. Similar to mutual funds, these separate accounts have a wide range of investment objectives including long-term capital appreciation, fixed income, etc.

  
 Do I have to submit to a medical questionnaire and/or
examination? 
  
 In most cases, there will be no medical exams for the life
insurance benefit. However, you will be asked to complete a brief section of questions on an Application for Life Insurance. If you are not actively at work at the time of enrollment or have missed five or more consecutive days of work in the past
three months due to medical reasons, you may be required to submit to a medical questionnaire and/or be examined. If this should be the case, you will be contacted to discuss what medical information or examination, if any, are necessary. If, for
whatever reason, the insurance company is unwilling to issue a Policy, you will not be able to participate in the Plan. 
  
 How is the Plan funded? 
  
 The life insurance benefits provided under this Plan are funded with an individual flexible premium, variable life insurance Policy. This type of Policy provides both Parker and you with significant premium payment
and asset allocation flexibility. 
  
 Parker will pay all required premium
payments under the Plan, including Policy expenses and charges, until you reach age 65 or for ten years, whichever is longer (the “Premium Period”), in order to provide you with the targeted pre-retirement and post-retirement life
insurance benefits. Parker’s annual premium payments will be calculated based upon the assumption that you will invest the cash value of the Policy in the fixed interest account, which currently pays interest of 4.85% per year. Parker will not
adjust future premium payments due to individual investment performance which is greater or less than the performance of the fixed interest account. You can assure maintenance of the targeted death benefit by investing the Policy cash value in the
fixed interest account, but you are free to choose your own investment allocation. 
  
 How often is my life insurance death benefit adjusted under the Plan? 
  
 During active employment, your targeted life insurance benefit will be adjusted once each year to reflect any change in your base annual salary. The adjustment will be made on January 1 of each year and will reflect your base annual salary
as of December 1 of the previous calendar year. 
  

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 Which insurance company will be issuing the life insurance Policy? 
  
 Parker has selected Sun Life Insurance Company (Sun Life) as the life insurance carrier for
this Plan. 
  
 What are the financial ratings for the insurance carrier?

  
 As of August 1, 2005, Sun Life has received the following ratings for its
financial strength and claims paying ability from the major independent rating agencies shown in the chart below. 
  

			
	 	  	Rating

	 A.M. Best Company
	  	AA+
	 Moody’s
	  	Aa2
	 Standard & Poor’s
	  	AA+
	 Fitch
	  	AA

  
 Please be aware that these ratings are
as of the specified date and there is no guarantee that such ratings will not change in the future. Parker does not guarantee the present or future creditworthiness of any insurance carrier. 
  
 How much will the Plan cost me? 
  
 As mentioned above, insurance premiums under the Plan will be paid by Parker. The premiums
paid by Parker under the Plan will be treated as bonus payments to you for tax purposes. The cost of the Plan to you is limited to the income tax due on the premiums paid by Parker. Taxation will continue as long as premiums are paid by Parker
during the Premium Period. This cost will be reported annually on the W-2 you receive at the end of each tax year. You will also receive a Benefit Statement indicating this amount each year. 
  
 How will I pay the withholding taxes that are due on the “bonus” payment?

  
 Withholding taxes on the “bonus” payment of premiums by Parker
are due immediately upon payment of the premiums by Parker to Sun Life. Parker’s Tax Department will send you a notification each year, approximately 30 days before the taxes are due, with the amount of withholding taxes that you will be
required to pay. You will have the option to pay such withholding taxes either by (1) submitting a check, payable to Parker Hannifin Corporation, before the premium payment can be made on your Policy; or (2) authorizing Parker to withhold the tax
amount due from the premium payment to Sun Life. Failure to pay the taxes in a timely manner may jeopardize your continued participation in the Plan. 
  
 PLEASE NOTE: If you choose to have the tax withheld from the premium payment, there will likely be insufficient cash value to provide the targeted death benefit
under the Plan, and the Policy may lapse at any time. 
  

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 At what age can I retire from Parker and still continue my participation in the Plan? 
  
 For purposes of the Plan, you are treated as having retired if you terminate your employment
on or after reaching age 55. 
  
 What is my target life insurance benefit at
retirement? 
  
 Your target death benefit after retirement (other than in the
event of disability-see below) will be as follows: 
  

			
	 Age at Retirement

	  	 Post-Retirement Target Death Benefit
 as a Multiple of Base Annual Salary

	 Under 55
	  	Parker discontinues premium payments
	 55
	  	1 times
	 56
	  	1.1 times
	 57
	  	1.2 times
	 58
	  	1.3 times
	 59
	  	1.4 times
	 60
	  	1.5 times
	 61
	  	1.6 times
	 62
	  	1.7 times
	 63
	  	1.8 times
	 64
	  	1.9 times
	 65 or older
	  	2 times

  
 At retirement, how is my life
insurance funded to maintain the target death benefit? 
  
 Premium payments
by Parker for the Policy during the Premium Period (which payments may continue post-retirement as described above) are designed to allow sufficient accumulation of cash surrender value to fund your life insurance during retirement until age 95.
Remember, premium calculations assume on-going investment of the cash surrender value of the Policy in the fixed interest account. 
  
 Will the cash surrender value in the Policy be sufficient to provide the target death benefit post-retirement? 
  
 If you use your own funds to satisfy the withholding tax liability described above, it is
intended that the cash surrender value in the Policy at the end of the Premium Period will be sufficient to provide the target death benefit. However, it is possible that the death benefit will lapse prior to age 95 if the actual investment
performance of the Policy which you direct varies from the assumptions used by Parker to calculate premium payments, unless you pay additional premiums. Accordingly, there is no guarantee that the death benefit will be maintained. 
  
 If you satisfy your withholding tax liability described above by allowing Parker to withdraw
the funds from the premium payments, there will not be sufficient remaining cash surrender value to provide the target death benefit until age 95. In fact the Policy 

  

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may lapse at any time, even before retirement. You may choose to decrease the target death benefit to ensure that the coverage will be effective over your
expected lifetime. Alternatively, you may pay additional premiums to maintain the original targeted death benefit. After the Premium Period, Parker’s premium obligation will end. 
  
 What happens if I voluntarily or involuntarily leave Parker under any circumstances other than retirement or disability? 

 
 You will have control of the life insurance Policy because you own it. However, Parker
will not continue premium payments. In order to maintain the life insurance coverage you will need to take some action, such as paying premiums or reducing the amount of insurance. 
  
 What happens if I die while I am still employed by Parker? 
  
 Your designated beneficiary will receive the death benefit provided by the Policy directly from Sun Life. The target death benefit is equal
to your pre-retirement multiple of your base salary, but the actual benefit may vary based upon the performance of the investment funds you have chosen and the manner in which you choose to pay withholding taxes. Upon your death, Parker will cease
paying premiums. 
  
 What happens if I die after retirement? 
  
 Your beneficiary will receive the death benefit provided by the Policy directly from Sun
Life. The target death benefit is equal to your post-retirement multiple of your base salary, but the actual benefit may vary based upon the performance of the investment funds you have chosen and the manner in which you choose to pay withholding
taxes. Upon your death, Parker will cease paying premiums.  
  
 What
happens to my participation in the Plan if I become disabled? 
  
 If you
become disabled so that you are unable to perform your job with Parker or any other job, Parker will continue paying premiums and your participation in the Plan will continue. If you remain so disabled when you reach age 65, your rights and benefits
will then become the same as if you had retired. 
  
 Since I own the Policy,
can I withdraw or borrow the cash surrender value in the Policy? 
  
 If you
borrow, withdraw, pledge or assign any portion of the cash surrender value prior to the expiration of the Premium Period, your participation in the Plan will terminate and Parker will have no obligation to make any future premium payments under the
Plan. After the end of the Premium Period, you may borrow, withdraw, pledge or assign any portion of the cash surrender value in the Policy at any time. 
  

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 Can Parker access any portion of the Policy’s cash surrender value? 
  
 No. You are the owner of the Policy and the Plan does not provide Parker with the right to
access the cash surrender value in the Policy. 
  
 How are death benefits
claimed? 
  
 As soon as Parker learns of your death, Parker or its agent will
contact your designated beneficiary and will explain to your beneficiary the benefits available, describe procedures, provide forms and request any documents needed to process the claim. Alternatively, the beneficiary may contact Sun Life directly
to claim the death benefits under the Policy. 
  
 Who can I name as my
beneficiary? 
  
 You may name anyone you wish as your beneficiary under the
Policy, including both primary and contingent beneficiaries. In addition, you may change your beneficiary under the Policy at any time by completing the proper beneficiary designation change form, submitting that form to Parker and receiving the
insurance company’s acceptance of the change. 
  
 Who will be the owner of
the Policy? 
  
 Unless you specify otherwise at the time of enrollment, you
will be the legal owner of the Policy. However, for estate planning purposes you may, after consultation with your personal tax adviser, elect to transfer ownership of the Policy to a living or family trust or an irrevocable life insurance trust by
submitting documentation to Sun Life and receiving the insurance company’s acceptance of the same. The preparation and legal adequacy of any such documentation will be your responsibility and expense. 
  
 Can the Plan be changed? 
  
 Parker may at any time amend, alter, modify or terminate the Plan. 
  
 What happens to the Plan in the event of a change in control of Parker? 
  
 In the event there is a change in control of Parker (as defined in your Change of Control
Severance Agreement), Parker will secure payment of three additional annual premium payments. Continuation of the Plan will otherwise be at the discretion of the acquiring company. 
  
 Is there a procedure for resolving disputes? 
  
 If disagreements arise, we hope they can be resolved quickly and informally. However, if that is not possible, formal procedures have been
developed so that you can appeal the decision. 
  
 You can file a claim by writing
to: 
  
 Parker Hannifin Corporation 
 Plan Administrator 
 6035 Parkland Boulevard 
 Cleveland, OH 44124-4141 
 (216) 896-3000 
  

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 If your claim is wholly or partially denied, you will receive a written notification of the denial within 90 days after
filing. Your written notification will include the following, if applicable: 
  

	•	 	The reasons for the denial; 

  

	•	 	The Plan provisions on which the denial is based; 

  

	•	 	An explanation of any additional material or information you can provide to support your claim, and the reason it is necessary; and 

  

	•	 	The procedure for requesting a review of the claim. 

  
 If a claim has been denied, you are entitled to a review of the denial: 
  

	•	 	Ask for a review of the denial, by submitting a request to: 

  

	 	Parker Hannifin Corporation 

	 	Plan Administrator 

	 	6035 Parkland Boulevard 

	 	Cleveland, OH 44124-4141 

	 	(216) 896-3000 

  

	•	 	Look at relevant documents; and 

  

	•	 	Submit issues and comments in writing. 

  
 Within 60 days after your request for review is received, a decision on the review will be made. Parker may determine that the 60-day period is insufficient because of
the need for a hearing. If this is the case, the decision may be deferred for an additional 60-day period. You or your beneficiary will be notified if a deferral is necessary. 
  

 - 8 - 

 Will I receive any periodic updates on the Plan and my Policy? 
  
 You will receive an annual statement containing a summary of your current target death
benefit, and your taxable income and withholding for the current year. The annual statement may also contain projections of the cash surrender value at the end of the Premium Period. 
  
 Where can I get more information about the Plan? 
  
 The enrollment package provides additional information about the Plan. You should read all documents in the package carefully and
completely. Parker has retained Marsh to administer the Plan. If you have any questions after reading these Questions and Answers and the enrollment materials, you may contact one of the Parker or Marsh representatives listed below: 
  
 Anne Lo 
 Phone: 609-520-2910 
 Marsh Financial Services 
 212
Carnegie Center 
 Princeton, NJ 08540-6236 
  
 Laura Muka 
 Phone: 609-520-2969 
 Marsh Financial Services 
 212 Carnegie Center 
 Princeton, NJ 08540-6236 
  
 Christopher Pease 
 Phone: 216-937-1341 
 Marsh Financial Services 
 200 Public Square, Suite 1100 
 Cleveland, OH 44114 
  
 Jim Repasky 
 Financial Controls Manager: 
 Retirement Plans 
 216-896-2818 (phone) 
 216-896-4004 (fax) 
 jrepasky@parker.com 
  

 - 9 -Form of Grant Letter for Stock Options for Executive Officers

 Exhibit 10(l) 
  
 Name:  
 PID: 
  
 [Date] 
  
 NOTICE OF GRANT OF NON-QUALIFIED STOCK OPTION 
  
 Effective [Grant Date], the Compensation and Management Development Committee of the Board of Directors (the “Committee”)
of Parker-Hannifin Corporation (the “Company”) granted you a non-qualified stock option to purchase                     
Common Shares under the Company’s 2003 Stock Incentive Plan (the “Plan”). In accordance with the Plan, the option price is 100% of the fair market value (the “Fair Market Value”) of the Common Shares covered by the
option on the grant date, which is taken as the reported closing price of the Common Shares on the New York Stock Exchange - Composite Transactions on that date. Accordingly, the option price is
$             per share. Your option will expire at 4:00 PM Eastern Time on August XX, 20XX (the “Expiration Date”). 
  
 Except as otherwise specified herein the event of a Change in Control of the Company, such
options shall vest as follows: 
  
 [Vesting Schedule] 

 
 provided, however, if your continuous full-time employment is terminated at any time prior
to a vesting date for any reason other than death, permanent disability or retirement under the applicable retirement plan or policy of the Company, any unvested options at such date of termination shall lapse. 
  
 Following vesting, your option is exercisable in accordance with the terms hereof at any time
until the Expiration Date as to all or any portion of the Common Shares subject to the vested option. 
  
 Your option may be exercised only while you are a full-time employee of the Company or one of its subsidiaries. If vested, your option may also be exercised after termination of full-time employment as follows:

  

	(A)	If the termination of full-time employment is due to permanent disability or to retirement under the applicable retirement plan or policy of the Company or a subsidiary, you shall
have the right to exercise the option in whole or in part until the Expiration Date. 

  

	(B)	In the event of your death, the executor or administrator of your estate (or if your estate has already been probated, the beneficiary who has inherited the option) shall have the
right to exercise the option in whole or in part only within the period of two (2) years after the date of your death, subject to the Expiration Date. 

  

	(C)	If the termination of full-time employment is due to any other reason except your permanent disability or retirement as specified in (A) above, or your death as specified in (B)
above, you shall have the right to exercise the option in whole or in part within the period of three (3) months after the date of such termination of full-time employment, subject to the Expiration Date. 

  
 The exercise price may be paid in cash or with other Common Shares of the Company that you
have already owned for at least six (6) months. If you tender Common Shares of the Company to satisfy the exercise price, such Shares will be valued at their Fair Market Value on the day prior to exercise. The date of exercise shall be deemed to be
the day when you have both delivered a notice of exercise to the Company and met the Plan requirements for payment of the exercise price (the “Exercise Date”). 
  
 If you (or a permitted transferee as provided below) tender Common Shares of the Company to satisfy the exercise price, you will receive one
(1) restorative or “reload” grant of stock options effective on the Exercise Date equivalent to the number of Common Shares surrendered to satisfy the exercise price (the “Reload Option”). The Reload Option will have an exercise
price equal to the Fair Market Value of the Common 

 
Page Two 
  
 Shares on the Exercise Date. Except as otherwise specified herein, no Reload Option may be exercised (a) prior to the completion of one (1) year of continuous full-time employment following the Exercise Date; and (b)
unless you have retained ownership of the Common Shares resulting from the option exercise on the Exercise Date (less a sufficient number of Common Shares to satisfy withholding tax obligations) for a period of one (1) year from the Exercise Date.
No more than one (1) Reload Option will be granted hereunder. All other terms and conditions of the Reload Option will be identical to those contained herein, including without limitation the expiration and termination of the Reload Option.

  
 You do not realize income upon the grant of your non-qualified stock option.
However, in any year in which you exercise a part or all of such option, the excess of the fair market value of the Common Shares on the Exercise Date over the option price will be taxed as compensation at supplemental wage rates and will be subject
to withholding for federal, state and local income taxes. Such withholding taxes must be paid to the Company at the time of exercise and may, at your option, be satisfied by surrendering to the Company a portion of the Common Shares received upon
exercise of the stock option. 
  
 Your option is not transferable (other than by
will or the laws of descent and distribution) except to (a) your spouse, children or grandchildren, (b) one or more trusts for the benefit of such family members; or (c) partnerships in which such family members are the only partners;
provided, however, that you do not receive any consideration for the transfer. Any transferred option shall continue to be subject to the same terms and conditions that were applicable immediately prior to its transfer (except
that such transferred option shall not be further transferable by the transferee inter vivos). 
  
 Receipt of shares upon exercise of options granted hereunder may be deferred pursuant to the terms of the Company’s Stock Option Deferral Plan. 
  
 In the event of a Change in Control of the Company (as defined in the Plan), your options granted hereunder shall become exercisable
immediately. The grant of your options hereunder is at all times subject to all other terms, conditions and provisions of the Plan (and any rules or procedures adopted thereunder by the Committee) to the extent not specifically addressed herein.

  
 Please confirm your receipt of this letter and your acceptance of the terms
stated herein by clicking on the “Accept” button below. Failure to acknowledge receipt and accept the terms of this letter will jeopardize your ability to exercise the options granted herein. 
  
 Sincerely yours, 
  
 Thomas A. Piraino, Jr. 
 Vice President, General
Counsel and Secretary

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