Exhibit 10.2
EXECUTION VERSION

FOURTH AMENDMENT TO CREDIT AGREEMENT
THIS FOURTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), is entered into as
of May 23, 2017, with an effective date as of the Fourth Amendment Effective
Date (as defined below), by and among GRACO INC. (the “Company”), the Banks (as
defined in the Credit Agreement) signatory hereto and U.S. Bank National
Association, as administrative agent for the Banks (in such capacity, the
“Agent”). Capitalized terms used herein but not defined herein shall have the
meaning given such terms in the Credit Agreement (as defined below).
W I T N E S S E T H
WHEREAS, the Company, the Borrowing Subsidiaries party thereto from time to
time, the Banks and the Agent are party to that certain Credit Agreement, dated
as of May 23, 2011 (as amended, restated, supplemented, or otherwise modified
prior to the date hereof, the “Credit Agreement”);
WHEREAS, the Company has requested that certain modifications be made to the
Credit Agreement; and
WHEREAS, the Banks party hereto have agreed to amend the Credit Agreement on the
terms and conditions set forth herein.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree to amend the Credit
Agreement as follows:
SECTION 1.Amendment.     Effective as of the Fourth Amendment Effective Date (as
defined in Section 2 below), but subject to the satisfaction of the conditions
precedent set forth in Section 2 below, the definition of “Material Subsidiary”
appearing in Section 1.1 of the Credit Agreement is hereby amended and restated
in its entirety as follows:
“Material Subsidiary” means any Subsidiary designated as such by the Company to
the Agent from time to time, and in any case in each quarterly Compliance
Certificate; provided, that if, upon delivery of the annual or quarterly
consolidated financial statements of the Company under Section 8.1(a) or (b),
the book value (net of reserves) of the assets of all Subsidiaries that are not
Material Subsidiaries (determined based on the consolidated quarterly or annual
balance sheet of the Company and its Subsidiaries, but after giving effect,
without duplication, to the elimination of the asset component of minority
interests, if any in such Subsidiaries) shall exceed 15% of Consolidated Assets
as determined based on such quarterly or annual balance sheet, the Company
shall: (a) promptly designate an additional Material Subsidiary or additional
Material Subsidiaries so that, after giving effect to such designation, such
requirement shall have been met, and (b) comply, and cause such additional
Material Subsidiary or Material Subsidiaries to comply, with the requirements of
Section 8.11 promptly thereafter (and in any case within 45 days after delivery
of the relevant annual or quarterly financial statements). So long as (a) no
Event of Default has occurred and is

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continuing, (b) removal of the Material Subsidiary designation of a Subsidiary
will not cause the book value of the assets of all Subsidiaries that are not
Material Subsidiaries to exceed 15% of Consolidated Assets as of the date of
such removal and (c) such Material Subsidiary is not a “Material Subsidiary”
under the Senior Note Agreements (or the designation of such Subsidiary as a
“Material Subsidiary” is concurrently being removed), the Company may remove the
Material Subsidiary designation of such Subsidiary. No Subsidiary may be
designated as a Borrowing Subsidiary that is not a Material Subsidiary;
provided, however, that if there are no Loans outstanding to a Subsidiary that
had been a Borrowing Subsidiary, the Company is permitted not to designate such
Subsidiary as a Material Subsidiary. Solely for purposes of making any
determination under this definition, the book value (net of reserves) of any
First-Tier Foreign Subsidiary shall be determined on a combined basis with the
book value (net of reserves) of each Second-Tier Foreign Subsidiary in which
such First-Tier Foreign Subsidiary directly or indirectly holds stock or other
Ownership Interests, and the book value (net of reserves) of each Second-Tier
Foreign Subsidiary shall in all other respects be disregarded. In no event shall
any Second-Tier Foreign Subsidiary itself be deemed a Material Subsidiary.
SECTION 2.    Conditions of Effectiveness. This Amendment shall become effective
as of May 15, 2017 (the “Fourth Amendment Effective Date”) when, and only when:
(a)    the Agent shall have received counterparts of this Amendment duly
executed by the Company, the Required Banks and the Agent;
(b)    all of the Agent’s accrued costs, fees and expenses through the date
hereof shall be fully paid; and
(c)    the Senior Note Agreements shall have been amended in a manner
satisfactory to the Agent.
SECTION 3.    Representations and Warranties. Each of the parties hereto
represents and warrants that this Amendment and the Credit Agreement, as amended
by this Amendment, constitute legal, valid and binding obligations of such party
enforceable against such party in accordance with their terms, except as
enforceability may be limited by bankruptcy, insolvency or similar laws
affecting the enforcement of creditors’ rights generally and general equitable
principles. This Amendment shall constitute a Loan Document.
SECTION 4.    Reaffirmation. The Company hereby ratifies and reaffirms the
Pledge Agreement and its pledge of stock or Ownership Interests of Foreign
Subsidiaries thereunder.
SECTION 5.    Reference to and the Effect on the Credit Agreement.
(a)    On and after the Fourth Amendment Effective Date, each reference in the
Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words
of like import referring to the Credit Agreement and each reference to the
Credit Agreement in any certificate delivered in connection therewith, shall
mean and be a reference to the Credit Agreement as amended hereby.

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(b)    Each of the parties hereto hereby agrees that, except as specifically
amended above, the Credit Agreement is hereby ratified and confirmed and shall
continue to be in full force and effect and enforceable, except as such
enforcement may be limited by applicable bankruptcy, insolvency, reorganization
or other similar laws relating to or limiting creditors’ rights generally and
general equitable principles.
(c)    The execution, delivery and effectiveness of this Amendment shall not
operate as a waiver of any right, power or remedy of the Agent or the Banks, nor
constitute a waiver of any provision of the Credit Agreement or any other
documents, instruments and agreements executed and/or delivered in connection
therewith.
SECTION 6.    Headings. Section headings in this Amendment are included herein
for convenience only and shall not constitute a part of this Amendment for any
other purpose.
SECTION 7.    Execution in Counterparts. This Amendment may be executed in any
number of counterparts, all of which taken together shall constitute one and the
same instrument, and any of the parties hereto may execute this Amendment by
signing any such counterpart. Delivery of an executed counterpart of a signature
page to this Amendment by facsimile or by e-mail transmission of a PDF or
similar copy shall be equally as effective as delivery of an original executed
counterpart of this Amendment.
SECTION 8.    Governing Law. The validity, construction and enforceability of
this Amendment shall be governed by the internal laws of the State of Minnesota,
without giving effect to conflict of laws principles thereof, but giving effect
to federal laws of the United States applicable to national banks.
SECTION 9.    Expenses. The Company agrees to pay on demand all reasonable
out-of-pocket costs and expenses of the Agent (including, without limitation,
the reasonable fees and expenses of outside counsel to the Agent) incurred in
connection with the preparation, negotiation and execution of this Amendment and
any other document required to be furnished herewith.
SECTION 10.    Severability.    Any provision of this Amendment which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof or affecting the validity or
enforceability of such provision in any other jurisdiction.
SECTION 11.    Successors; Enforceability. The terms and provisions of this
Amendment shall be binding upon the Borrowers, the Agent and the Banks and their
respective successors and assigns, and shall inure to the benefit of the
Borrowers, the Agent and the Banks and the successors and assigns of the Agent
and the Banks.
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective authorized signatories as of the day and year first
above written.
GRACO INC.

By: /s/ Christian E. Rothe    
Name:    Christian E. Rothe
Title:    Chief Financial Officer and Treasurer

Signature Page to
Amendment No. 4 to Graco Credit Agreement

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U.S. BANK NATIONAL ASSOCIATION
as Agent and a Bank

By: /s/ Mila Yakovlev    
Name:    Mila Yakovlev
Title:    Vice President

Signature Page to
Amendment No. 4 to Graco Credit Agreement

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JPMORGAN CHASE BANK, N.A.
as a Bank

By: /s/ Suzanne Ergastolo    
Name:    Suzanne Ergastolo
Title:    Executive Director

Signature Page to
Amendment No. 4 to Graco Credit Agreement

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WELLS FARGO BANK, NATIONAL ASSOCIATION
as a Bank

By: /s/Mark H. Halldorson    
Name:    Mark H. Halldorson
Title:    Director

Signature Page to
Amendment No. 4 to Graco Credit Agreement

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BANK OF AMERICA, N.A.
as a Bank

By: /s/ Leif Olson    
Name:    Leif Olson
Title:    Vice President

Signature Page to
Amendment No. 4 to Graco Credit Agreement

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PNC BANK, NATIONAL ASSOCIATION
as a Bank

By: /s/ David B. Mitchell    
Name:    David B. Mitchell
Title:    Executive Vice President

Signature Page to
Amendment No. 4 to Graco Credit Agreement

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CITIZENS BANK, N.A.
as a Bank

By: /s/ Thomas S. Lass    
Name:    Thomas S. Lass
Title:    Senior Vice President

Signature Page to
Amendment No. 4 to Graco Credit Agreement

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ING BANK N.V., DUBLIN BRANCH
as a Bank

By: /s/ Sean Hassett    
Name:    Sean Hassett
Title:    Director

By: /s/ Shaun Hawley    
Name:    Shaun Hawley
Title:    Director

Signature Page to
Amendment No. 4 to Graco Credit Agreement

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THE NORTHERN TRUST COMPANY
as a Bank

By: /s/ Molly Drennan    
Name:    Molly Drennan
Title:    Senior Vice President

Signature Page to
Amendment No. 4 to Graco Credit Agreement