Exhibit 10(h)
PARKER-HANNIFIN
CORPORATION
SUMMARY OF RONA BONUS AWARDS IN
LIEU OF
CERTAIN EXECUTIVE
PERQUISITES
Effective January 1, 2008, the
Human Resources and Compensation Committee (the
“Committee”) of the Board of Directors of
Parker-Hannifin Corporation (the “Corporation”)
eliminated certain executive perquisites, replacing them with a
performance based form of compensation designed to approximate the
value of the eliminated perquisites. The perquisites that were
eliminated are: 1) reimbursement or payment for home security
system or services, 2) annual allowance for financial planning, tax
preparation and estate planning, 3) tax gross-ups on the value of
permitted spousal travel which is included in the recipient’s
taxable income 4) reimbursement of monthly dues or assessments
associated with private social club membership, 5) tax gross-ups on
amounts reimbursed for initiation fee for private club membership
which is included in the recipient’s taxable income, and 6)
reimbursement of fees or dues related to membership at health and
fitness clubs. These eliminated perquisites were replaced by a
separate form of RONA Bonus opportunity that is distinct from the
Corporation’s general RONA Bonus program. It is referred to
as Converted RONA Bonuses.
Converted RONA Bonuses are paid in
four installments after the end of each fiscal quarter, in October,
January, April and August. The first three installments are based
on actual year-to-date financial results, reduced by an amount
equal to 25% of the projected year-end RONA re
