Company: GGG
Filing Date: 2025-03-12
Form Type: DEF 14A
Source: 0001193125-25-052581
Chunk: 49

Company: GRACO INC
Filing Date: 2025-03-12
Form: DEF 14A
Chunk 49
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 not reflect any reductions that might be made.

| (2) | Reflects two years of base salary and target annual bonus for Mr. Sheahan and one year of base salary and target annual bonus for the other NEOs; annual incremental qualified pension and restoration benefit amount; and the value of other benefits (post-employment health and dental care premiums and life insurance premiums). Should our Company elect to extend the non-compete duration beyond one year, the payment amount for the NEOs, except for Mr. Sheahan, would increase. |

| (3) | Reflects life insurance benefit and, for Messrs. Sheahan and Lowe, annual incremental qualified pension and restoration benefit amount. |

| (4) | Assumes NEO is not age 65 or above and disabled for a full calendar year. Benefit reflects an annualized amount that would be paid on a monthly basis and would cease if NEO reaches their Social Security normal retirement age or is no longer disabled. In addition, for Messrs. Sheahan, Lowe and Johnson, reflects annual incremental qualified pension and restoration benefit amount. |

| (5) | Mr. Johnson retired February 28, 2025 and is therefore only eligible for the retirement benefit. |

**Retirement Benefits Graco Employee Retirement Plan The Graco Employee Retirement Plan – Blue (2017 Statement) (the “Retirement Plan”) is a funded, tax-qualifieddefined benefit pension plan designed to coordinate with Social Security benefits to provide a basic level of retirement benefits for all eligible employees. Eligible executive officers participate in the Retirement Plan on the same terms as the rest of our eligible employees. The Retirement Plan is frozen to employees hired on or after January 1, 2006. Each of the Named Executive Officers is eligible for benefits under the Retirement Plan except for Mr. O’Shea and Ms. Banerjee. Mr. O’Shea participated in a separate Southeast Asian Plan, and Ms. Banerjee was hired by the Company after January 1, 2006. Benefits for those eligible under the Retirement Plan consist of a fixed benefit, which is designed to provide a retirement income at age 65 of 43.5% of a participant’s average monthly compensation, less 18% of Social Security-covered compensation (calculated in a life annuity option) for an employee with 30 years of service. Average monthly compensation is defined as the average of the five consecutive highest years’ cash compensation during the last ten years of service, divided by sixty. The Retirement Plan defines eligible