Company: GGG
Filing Date: 2025-03-12
Form Type: DEF 14A
Source: 0001193125-25-052581
Chunk: 45

Company: GRACO INC
Filing Date: 2025-03-12
Form: DEF 14A
Chunk 45
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 between the market price of Graco common stock at exercise and the exercise price of the stock option. |

Change of Control and Post-Termination Payments Summary of the Key Employee Agreement The MOCC reviews the form of the Key Employee Agreement on a periodic basis in consultation with the executive compensation consultant and legal advisors. In November 2023, the MOCC approved certain changes to the form of the Key Employee Agreement, principally to account for developments in local laws related to non-competitionagreements that may apply to persons hired or promoted to executive officers of the Company following such approval, depending on their location (the “New Key Employee Agreement”). These changes do not impact the Key Employee Agreements we entered into with our executive officers prior to such approval (the “Legacy Key Employee Agreement”), which remain unchanged. In addition, we anticipate that, in cases where local laws applicable to a person hired or promoted to an executive officer of the Company following such approval do not require these changes, the Legacy Key Employee Agreement will be offered to such person. Where applicable, the following summary of the Key Employee Agreement highlights the material differences between the terms of the New Key Employee Agreement and the Legacy Key Employee Agreement. The Key Employee Agreement provides for payment of the following benefits if the Company terminates the employment of an executive officer involuntarily without Cause (as defined below) prior to a Change of Control (as defined below):

| • |     | Pro-rata bonus for the year of termination based on actual performance; |

| • |     | Severance pay equal to one times (two times for CEO) base salary plus bonus based on the target level of performance for the year of termination, payable over the severance period; |

| • |     | Continued medical, dental and life insurance for 12 months (18 months for CEO), up to a maximum of 18 months; |

| • |     | Outplacement services; and |

| • |     | Reimbursement of reasonable legal fees incurred to enforce the agreement if the executive officer is the prevailing party. |

The Key Employee Agreement provides for payment of the following benefits if, within two years after a Change of Control, the Company without Cause terminates an executive officer’s employment involuntarily or if the executive officer resigns for Good Reason (as defined below):

| • |     | Pro-rata bonus for the year of termination based on performance at the target level; |

35 Graco Inc. 2025 Proxy Statement

| • |     | Severance pay equal to two times (three