Company: GGG
Filing Date: 2025-03-12
Form Type: DEF 14A
Source: 0001193125-25-052581
Chunk: 38

Company: GRACO INC
Filing Date: 2025-03-12
Form: DEF 14A
Chunk 38
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 States as a replacement for those retirement benefits reduced under the Graco Employee Retirement Plan by operation of Section 415 and Section 401(a)(17) of the Internal Revenue Code. |

| • |     | Supplemental Long-Term Disability Program. Each U.S. executive officer is eligible to enroll in the individual executive long-term disability plan under which Graco pays the premiums. Each plan provides the executive officer with a monthly disability benefit of up to $21,800 in the event of long-term disability. |

28 Graco Inc. 2025 Proxy Statement

| • |     | Other Perquisites. We reimburse our executive officers for certain financial planning expenses to encourage them to maximize the value of their compensation and benefit programs. In 2024, the maximum amount reimbursable for financial planning was $10,000 for our CEO and $7,000 for the other executive officers. In order to motivate the executive officers to receive appropriate preventive medical care to support their continued health and productivity, we offer executive officers an executive physical examination program through the Mayo Clinic and Park Nicollet. This program provides a physical examination one time per year for our executive officers. Executive officers may also be reimbursed and/or receive a tax gross-up for certain limited spousal travel and entertainment events. |

Severance and Change of Control Arrangements We have entered into Key Employee Agreements with the CEO and each of the other NEOs, the terms of which are described below under “Change of Control and Post-Termination Payments.” The MOCC believes it is in the best interests of our Company and its shareholders to design compensation programs that:

| • |     | Assist our Company in attracting and retaining qualified executive officers; |

| • |     | Assure our Company will have the continued dedication of our Company’s executive officers in the event of a pending, threatened or actual change of control; |

| • |     | Provide certainty about the consequences of terminating the employment of our executive officers; |

| • |     | Protect our Company by obtaining non-compete covenants from our executive officers that continue after their termination of employment not involving a change of control; and |

| • |     | Obtain a release of any claims from those former executive officers. |

Accordingly, the Key Employee Agreements generally provide for certain benefits if the NEO’s employment or service is involuntarily terminated by our Company without cause prior to a change of control or if, within two years after a change of control, the NEO’s employment or service is terminated