EX-10.5





 Exhibit 10.5 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (this “Agreement”), is made and entered into as of June 1, 2021 by and between Graham
Corporation, a Delaware corporation with its principal place of business at 20 Florence Avenue, Batavia, New York 14020 (the “Company”), and Daniel Thoren, with a business address at 6325 West 55th Ave, Arvada, CO 80002 (the
“Executive”). 
 WHEREAS, the Company and the Executive desire to enter into this Agreement to describe the
employment relationship and obligations of the parties. 
 NOW, THEREFORE, the parties hereto, intending to be legally bound
and in consideration of the mutual covenants herein contained, agree as follows: 

1.    Employment. The Company hereby agrees to employ the Executive and the Executive hereby
accepts employment as the President and Chief Operating Officer of the Company, upon the terms and conditions hereinafter set forth. 

2.    Duties. 

(a)    The Executive shall have authority and responsibility for the efficient and effective functioning of
the Company as the Company’s President and Chief Operating Officer, and shall report directly to the Company’s Chief Executive Officer. The Executive shall perform such duties generally consistent with Executive’s title and as may
from time to time be required of the Executive by the Company’s Chief Executive Officer or the Board of Directors (the “Board”) of the Company. The Executive’s office shall be located at the Company’s place of business in
Arvada, Colorado. The Executive agrees to travel to the extent reasonably necessary for the performance of Executive’s duties. The Executive shall devote Executive’s full time to the business and affairs of the Company and shall use
Executive’s best efforts, skill and ability in performing Executive’s duties on behalf of the Company. 

(b)    The Executive agrees that the Company, in its discretion, may apply for and procure in its own name
and for its own benefit, life insurance on the life of the Executive in any amount or amounts considered advisable, and that Executive shall have no right, title or interest therein. The Executive further agrees to submit to any medical or other
examination and to execute and deliver any application or other instrument in writing, reasonably necessary to effectuate such insurance, provided such actions do not materially harm the Executive’s ability to otherwise obtain or retain
personal life insurance. 
 3.    Term. 

(a)    Except as otherwise provided in this Agreement to the contrary, this Agreement shall be and remain
in effect during the period of employment (the “Term”) established under this Section 3. 

(b)    Except as provided in Section 3(c), beginning on the effective date of this Agreement, the
Term shall be for one year and shall be automatically extended for one additional day for each day (such that while this Agreement is in effect the remaining Term shall never be 












 
less or greater than one year) that this Agreement is in effect, unless either the Company, or the Executive, respectively, elects not to extend the Term further by giving written notice to the
other party, in which case the Term shall end on the first anniversary of the date on which such written notice is given; provided, however, that in any event, the Term shall end on the last day of the month in which the Executive attains the age of
65. 
 (c)    Notwithstanding anything herein contained to the contrary, (i) this Agreement may be
terminated during the Term as provided for herein and (ii) nothing in this Agreement shall mandate or prohibit a continuation of the Executive’s employment following the expiration of the Term upon such terms and conditions as the Company
and the Executive may mutually agree upon. 
 4.    Base Compensation. As the base compensation
for all services to be rendered by the Executive to the Company, the Company agrees to pay to the Executive, and the Executive shall accept, a salary at a rate of $365,000.00 per annum, payable on a bi-weekly
basis in equal installments of $14,038.46 each, subject to such deductions and withholdings as may be required by law. Periodically, the Chief Executive Officer and the Board will review the salary of the Executive, taking into consideration such
factors as the Executive’s performance and such other matters as it deems relevant and, in its discretion alone, may increase the salary of the Executive to such rate as the Board deems proper; provided that the Company shall in no event be
required to grant any such increase. 
 5.    Incentive Compensation. 

(a)    Bonus. The Executive shall be eligible to receive bonuses and awards under the
Company’s bonus plans or arrangements as may be in effect from time to time, including the Company’s Annual Executive Cash Bonus Plan, as may be from time to time determined by the Board or a committee thereof. 

(b)    Long-Term Incentive Compensation. The Executive shall be eligible to participate in any
long-term incentive compensation plan generally made available to similarly situated executive officers of the Company in accordance with and subject to the terms of such plans, including the Company’s Annual Stock-Based Long-Term Incentive
Award Plan for Senior Executives, as may from time to time be determined by the Board of a committee thereof. 

(c)    Retention Bonus. In consideration for entering into this Agreement (including the
restrictive covenants set forth in this Agreement), and if the Executive remains continuously and actively employed by the Company through June 1, 2023 (the “Retention Date”), the Executive shall receive a single lump sum payment
equal to two (2) years of the Executive’s Base Salary as in effect on the effective date of this Agreement (the “Retention Bonus”). The Retention Bonus shall be less applicable deductions and withholdings, and shall be paid
within thirty (30) days of the Retention Date. 
 (d)    Other Compensation. The Company
may, upon recommendation of the Board or a committee thereof, award to the Executive such other bonuses and compensation as it deems appropriate and reasonable. 

  
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 6.    Benefits. During the term of this
Agreement, the Company shall provide the following benefits to the Executive: 

(a)    Medical. The Company will provide the Executive health coverage for Executive
and Executive’s family in accordance with the Company’s health and medical insurance plans, as the same may be in effect from time to time. The Executive shall be responsible for paying the employee portion of the premiums for such health
and medical insurance plans. 
 (b)    Vacation. The Executive shall be entitled to vacation in
accordance with the Company’s general vacation policies and practices as may be in effect from time to time. The Company acknowledges that the Executive’s employment term with Barber-Nichols, Inc. will be added to the Executive’s
employment term with the Company for purposes of determining the Executive’s entitlement to vacation. 

(c)    General Benefits. The Executive shall be entitled to participate in all employee benefit
plans and arrangements of the Company that may be in effect from time to time and as may from time to time be made available to the other similarly situated executive officers of the Company, subject to and on a basis consistent with the terms,
conditions and overall administration of such plans and arrangements. The Company acknowledges that the Executive’s employment term with Barber-Nichols, Inc. will be added to the Executive’s employment term with the Company for purposes of
determining the Executive’s entitlement to such benefits. 
 (d)    No Limitation of
Company’s Rights. Nothing in this Section 6 shall be construed to limit or restrict the complete discretion of the Company to amend, modify or terminate any employee benefit plan or plans of the Company where such action generally
affects plan participants or employees, including the Executive. 

(e)    Insurance. The Company shall provide Executive with $2,500 per annum for the
purpose of Executive procuring a term insurance policy that names such person(s) of Executive’s choosing as beneficiary(ies). 

7.    Travel Expenses. The Company shall pay or reimburse the Executive for all reasonable and
necessary traveling and other expenses incurred or paid by the Executive in connection with the performance of Executive’s duties under this Agreement upon presentation of expense statements or vouchers and such other supporting information as
the Company may from time to time reasonably request. 
 8.    Termination. This Agreement shall
terminate prior to the Term expiration date, hereinabove set forth, in the event that the Executive shall die or the Board shall reasonably determine that the Executive has become disabled, or if the Executive’s employment shall be terminated
for cause or without cause, as hereinafter provided. 
 (a)    Disability. The Board may
determine that the Executive has become disabled, for purposes of this Agreement, in the event that the Executive shall fail, because of illness or incapacity, to render for three successive months, or for shorter periods aggregating three months or
more in any period of twelve months, services of the character contemplated by this Agreement; and thereupon this Agreement and all rights of the Executive hereunder shall be deemed to have been terminated as of the end of the calendar month in
which such determination is made. 

  
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 (b)    For Cause. The Board may dismiss the
Executive for cause in the event that it determines that there has been willful misconduct by the Executive in connection with the performance of Executive’s duties hereunder, or any other conduct on the part of the Executive which has been
materially injurious to the Company; and thereupon this Agreement shall terminate effective upon the delivery to the Executive of 30-day written notice that the Board has made such determination. For purposes
of this Agreement, “cause” shall be determined only by a good faith finding thereof by the Board, which shall afford the Executive the opportunity to appear before it prior to finalizing any such determination. 

(c)    Without Cause. The Executive may resign without cause at any time upon 30 days’ written
notice to the Company, in which event the Company’s obligation to compensate him ceases on the effective date of Executive’s termination except as to amounts due to him under Section 8(c)(i). The Company may dismiss the Executive
without cause at any time upon 30-days’ written notice to the Executive. In the event that the Company dismisses the Executive other than for cause, or if the Executive resigns because of a material
breach of this Agreement by the Company (which Executive may do only if such breach remains materially uncured after the Executive has provided 30 days prior written notice to the Board), and the Executive’s dismissal or resignation qualifies
as a “separation from service” for purposes of Section 409A of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations and other official guidance issued thereunder (collectively, “Section 409A”),
then the Company shall provide to the Executive: 
 (i)    payment of the compensation
due to him through the effective date of the termination of the Executive’s employment, within ten business days following such effective date of the termination of the Executive’s employment; 

(ii)    continuation of the Executive’s salary for twelve months following the
effective date of the termination of the Executive’s employment at the higher of the rate specified in Section 4 or the Executive’s then-current annualized salary, which salary continuation shall be paid monthly in accordance with the
Company’s regular payroll practices; and 
 (iii)    payment of any Accrued Bonus
(as defined below), to be paid as soon as administratively practicable after the six-month anniversary of the effective date of the termination of the Executive’s employment. Accrued Bonus shall mean any
amount of bonus with respect to any year prior to the year in which dismissal without cause occurs (“Prior Bonus Year”) calculable by applying the formula prescribed by the Company’s incentive compensation plan as it existed on
December 31 of such Prior Bonus Year and employing in the application of such formula the goals, ratios and weighting percentages and other variable figures which the Bonus Plan calls for the Company’s Board or any committee thereof to
determine annually (“Bonus Plan Variables”) which the Company’s Board of Directors or any committee thereof adopted for purposes of the Bonus Plan prior to December 31 of such Prior Bonus Year. Notwithstanding any other provision
of this Section, no Accrued Bonus shall be payable pursuant to this Section 8(c) for any Prior Bonus Year with respect to which a bonus amount was paid to and accepted by the Executive. 

  
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 Notwithstanding anything to the contrary, to the extent that any payments
under Section 8(c) are subject to a six-month waiting period under Section 409A, any such payments that would be payable before the expiration of six months following the Executive’s separation
from service but for the operation of this sentence shall be made during the seventh month following the Executive’s separation from service. 

(d)    In the event that the provisions of Section 8(c) are triggered, the Executive shall resign
from all offices and directorships of the Company and of all subsidiaries and affiliates of the Company, upon payment to the Executive of the amount referred to in Section 8(c)(i). 

(e)    Release of Claims. The Company’s obligation to provide the payments under this
Section 8 is conditioned upon the Executive’s execution of an enforceable release of all claims (and upon the expiration of all applicable rescission periods contained in such release) and Executive’s compliance with all provisions of
this Agreement. If the Executive chooses not to execute such a release (or rescinds such release) or fails to comply with these provisions, then the Company’s obligation to compensate him ceases on the effective date of Executive’s
termination except as to amount due to him under Section 8(c)(i). 
 (f)    Return of
Confidential Documentation. Upon termination of Executive’s employment for any reason whatsoever, the Executive shall return to the Company all working papers, computer equipment, notebooks, strategic plans and other confidential documents
and information, in any form whatsoever. 
 9.    Change in Control. 

(a)    Continuation by Executive of Employment Pending Change in Control. In the event a person
begins a tender or exchange offer, circulates a proxy to stockholders, or takes other steps seeking to effect a Change in Control (as hereinafter defined), the Executive agrees that he will not voluntarily leave the employ of the Company, and will
render the services contemplated in this Agreement, until such person has either abandoned or terminated his or its efforts to effect a Change in Control or until three months after a Change in Control has occurred. 

(b)    Post-Change in Control Termination Benefits. In addition to the benefits otherwise payable
to the Executive (other than Sections 8(c)(ii) and (iii)) pursuant to this Agreement, upon the event of a Termination (as hereinafter defined) of the Executive’s employment with the Company within two years after a Change in Control 

(i)    The Company will pay to the Executive as compensation for services rendered to the
Company a lump sum (subject to any applicable payroll or other taxes required to be withheld) in an amount equal to 2.5 multiplied by the sum of (i) the Executive’s salary at the rate in effect at the time of the Executive’s
termination of employment, and (ii) the target amount of the Executive’s bonus under the Annual Executive Cash Bonus Plan (or successor plan thereto in effect at the time of the Executive’s termination of employment) for the fiscal
year that includes the date of the Executive’s termination of employment. The payment shall be made as soon as 

  
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administratively practicable after the six-month anniversary of the effective date of the termination of the Executive’s employment. In the event the
Executive dies prior to receiving the lump sum payment, but following the occurrence of any event requiring the Company to make the payment required by this Section 9(b)(i), the payment provided for by this Section 9(b)(i) shall be paid to
the Executive’s estate as soon as administratively practicable after the date of the Executive’s death. The payment under this Section 9(b)(i) shall be made in lieu of the payments provided for by Sections 8(c)(ii) and (iii). 

(ii)    The Company shall accelerate and make immediately exercisable in full any unvested
stock options or shares of restricted stock that the Executive then holds. Accelerated stock options shall be exercisable by the Executive in accordance with their terms. 

(iii)    The Company shall pay and provide to the Executive (or, in the event of his death,
to his estate) as soon as administratively practicable after the six-month anniversary of the effective date of the termination of the Executive’s employment (or, in the event of his death, as soon as
administratively practicable after the date of his death), a lump sum payment in an amount equal to the excess, if any, of: 

(1)    the value of the aggregate benefits to which he would be entitled under any and all
qualified and non-qualified defined contribution pension plans maintained by, or covering employees of, the Company if he were 100 percent vested thereunder, such benefits to be determined as of the date
of termination of employment; or 
 (2)    the value of the benefits to which he is
actually entitled under such defined contribution pension plans as of the date of his termination. 

(iv)    The Executive shall not be obligated to seek other employment in mitigation of the
amounts payable or arrangements made under any provision of this Agreement, nor shall any payments under this Agreement be reduced on account of any compensation, benefits or service credits for benefits from any employment that the Executive may
obtain following his Termination. 
 (v)    The Company’s obligation to provide the
payments under this Section 9(b) is conditioned upon the Executive’s execution of an enforceable release of all claims (and upon the expiration of all applicable rescission periods contained in such release) and his compliance with all
provisions of this Agreement. If the Executive chooses not to execute such a release (or rescinds such release) or fails to comply with these provisions, then the Company’s obligation to compensate him ceases on the effective date of his
termination except as to amount due to him under Section 8(c)(1). 
 (vi)    The
Company will provide continuation of the health and medical coverage described in Section 6(a) for a period of 18 months following the effective date of the termination of the Executive’s employment. 

  
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 (c)    Definitions. 

(i)    For the purposes of this Agreement, the term “Change in Control” shall
mean: 
 (1)    the reorganization, merger or consolidation of the Company with one or
more individuals, corporations, partnerships, associations, joint-stock companies, trusts, estates, unincorporated organizations or any other business organizations (“Persons”), other than a transaction following which at least 51% of the
ownership interests of the institution resulting from such transaction are owned by Persons who, immediately prior to such transaction, owned at least 51% of the outstanding voting share of the Company; 

(2)    the acquisition of more than 25% of the voting shares of the Company by any Person
or Persons acting in concert; 
 (3)    the acquisition of substantially all of the
assets of the Company by any Person or Persons acting in concert; or 
 (4)    the
occurrence of any event if, immediately following such event, at least 50% of the members of the Board do not belong to any of the following groups: 

(A)    individuals who were members of the Board on August 11, 2020; or 

(B)    individuals who first became members of the Board after August 11, 2020
either: 
 (1)    upon election to serve as a member of the Board by the affirmative
vote of a majority of the members of the Board, or a nominating committee thereof, in office at the time of such first election; or 

(2)    upon election by the stockholders of the Company to serve as a member of the Board,
but only if nominated for election by affirmative vote of a majority of the members of the Board, or a nominating committee thereof, in office at the time of such first nomination. 

For purposes of this definition, “Person” shall mean an individual, a corporation, a partnership, an
association, a joint-stock company, a trust, an estate, an unincorporated organization and any other business organization. 

(ii)    For the purposes of this Section 9, the term “Termination” shall
mean termination by the Company of the employment of the Executive with the Company (including its subsidiaries) for any reason other than death, disability or cause (as defined 

  
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herein), or resignation of the Executive, that qualifies as a “separation from service” for purposes of Section 409A, upon the occurrence of either of the following events: 

(1)    A change in the nature or scope of the Executive’s authority from that prior to
a Change in Control, a reduction in the Executive’s total compensation (including all and any base compensation, bonuses, incentive compensation and benefits of any kind or nature whatsoever) from that prior to a Change in Control, or failure
of the Company to make any increase in compensation to which the Executive may be entitled under any employment agreement, or a change requiring the Executive to perform services other than in Arvada, Colorado or in any location more than thirty
miles distant from Arvada, Colorado by road, except for required travel on the Company’s business to an extent substantially consistent with the Executive’s present business travel obligations; or 

(2)    A reasonable determination (as defined below) by the Executive that, as a result of
a Change in Control and a change in circumstances thereafter significantly affecting his position, he is unable to exercise the authority, powers, function or duties attached to his position. 

(iii)    Termination of employment by the Executive in his “reasonable
determination” shall mean termination based on: 
 (1)    subsequent to a Change in
Control of the Company, and without the Executive’s express written consent, the assignment to him of any duties inconsistent with his positions, duties, responsibilities and status with the Company immediately prior to a Change in Control, or
a change in the Executive’s reporting responsibilities, titles, or offices as in effect immediately prior to a Change in Control, or any removal of the Executive from or any failure to re-elect him to any
of such positions, except in connection with the termination of his employment for cause, disability or retirement or as a result of his death or by the Executive other than in a reasonable determination; or 

(2)    subsequent to a Change in Control of the Company, a reduction by the Company in the
Executive’s base salary as in effect on the date hereof or as the same may be increased from time to time, or failure of the Company to make an increase in compensation to which the Executive may be entitled under any employment agreement; or

 (3)    subsequent to a Change in Control of the Company, a failure by the Company to
continue any bonus plans in which the Executive is presently entitled to participate (the “Bonus Plans”) as the same may be modified from time to time but substantially in the forms currently in effect, or a failure by the Company to
continue the Executive as a participant in the Bonus Plans on at least the same basis as he presently participates in accordance with the Bonus Plans; or 

(4)    subsequent to a Change in Control of the Company, the failure by the Company to
continue in effect (subject to such changes as may be 

  
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required by law from time to time) any benefit or compensation plan, stock ownership plan, stock purchase plan, stock option plan, life insurance plan, health-and-accident plan or disability plan in which the Executive is participating at the time of Change in Control of the Company (or plans providing him with substantially similar benefits), the taking of
any action by the Company which would adversely affect the Executive’s participation in or materially reduce his benefits under any of such plans or deprive him of any material fringe benefit enjoyed by him at the time of the Change in Control,
or the failure by the Company to provide him with the number of paid vacation days to which he is then entitled in accordance with the Company’s normal vacation policy in effect on the date hereof; or 

(5)    prior to a Change in Control of the Company, the failure by the Company to obtain
the assumption of the agreement to perform this Agreement by any successor as contemplated in Section 17. 

(d)    Golden Parachute Limitation. 

(i)    In the event that the independent auditors most recently selected by the Board (the
“Auditors”) determine that any payment by the Company under this Section 9(d) to or for the benefit of the Executive would be nondeductible by the Company for federal income tax purposes because of the provisions concerning
“excess parachute payments” in Section 280G of the Code, then the total amount of all payments under this Section 9(d) shall be reduced (but not below zero) to the Reduced Amount. For purposes of this Section 9(d), the
“Reduced Amount” shall be the amount that maximizes the total amount of the payments without causing any payment to be nondeductible by the Company because of Section 280G of the Code. 

(ii)    If the Auditors determine that any payment under this Section 9(d) would be
nondeductible by the Company because of Section 280G of the Code, then the Company shall promptly give the Executive notice to that effect and a copy of the detailed calculation thereof and of the Reduced Amount, and the Executive may then
elect, in his sole discretion, which and how much of the payments shall be eliminated or reduced (as long as after such election the aggregate present value of the payments equals the Reduced Amount) and shall advise the Company in writing of his
election within ten days of receipt of notice. If no such election is made by the Executive within such ten-day period, then the Company may elect which and how much of the payments under this
Section 9(d) shall be eliminated or reduced (as long as after such election the aggregate present value of the payments equals the Reduced Amount) and shall notify the Executive promptly of such election. All determinations made by the Auditors
under this Section 9(d) shall be binding upon the Company and the Executive and shall be made within 60 days of the date when a payment becomes payable. 

As a result of uncertainty in the application of Section 280G of the Code at the time of an initial
determination by the Auditors hereunder, it is possible that payments will have been made by the Company that should not have been made (an “Overpayment”) or that additional payments that will not have been made by the Company could have
been made 

  
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(an “Underpayment”), consistent in each case with the calculation of the Reduced Amount hereunder. In the event that the Auditors, based upon the assertion of a deficiency by the
Internal Revenue Service against the Company or the Executive that the Auditors believe has a high probability of success, determine that an Overpayment has been made, such Overpayment shall be treated for all purposes as a loan to the Executive
which he or she shall repay to the Company, together with interest at the applicable federal rate provided in Section 7872(f)(2) of the Code; provided, however, that no amount shall be payable by the Executive to the Company if and to the
extent that such payment would not reduce the amount subject to taxation under Section 4999 of the Code. In the event that the Auditors determine that an Underpayment has occurred, such Underpayment shall promptly be paid or transferred by the
Company to or for the benefit of the Executive, together with interest at the applicable federal rate provided in Section 7872(f)(2) of the Code. 

(e)    Notwithstanding anything to the contrary, to the extent that any payments under Section 9 are
subject to a six-month waiting period under Section 409A, any such payments that would be payable before the expiration of six months following the Executive’s separation from service but for the
operation of this sentence shall be made during the seventh month following the Executive’s separation from service. 

10.    Covenants of Executive. The Executive acknowledges that: (i) the business of the
Company and its affiliates, as currently conducted and as conducted from time to time throughout the term of this Agreement (collectively, the “Business”), is conducted by and is proposed to be conducted by the Company on a world-wide
basis (the “Company’s Market”); (ii) the Business involves providing design, engineering and manufacture of certain vacuum and heat transfer equipment, including but not limited to steam condensers, steam jet ejectors, shell and
tube heat exchangers, plate and frame heat exchangers, Heliflow heat exchangers, liquid ring vacuum pumps and rotary piston pumps, and further involves the design and production of turbomachinery for aerospace, cryogenic, defense, and commercial
applications; (iii) the Company has developed trade secrets and confidential information concerning the Business; and (iv) the agreements and covenants contained in this Section 10 are essential to protect the Business. In order to
induce the Company to enter into this Employment Agreement, the Executive covenants and agrees that: 

(a)    Agreement Not To Compete. For a period of 12 months after the termination of
Executive’s employment with the Company for any reason (such period of time hereinafter referred to as the “Restricted Period”), neither the Executive nor any entity of which 20 percent or more of the beneficial ownership is held
by the Executive or a person related to the Executive by blood or marriage (“Controlled Entity”) will, anywhere in the Company’s Market, directly or indirectly own, manage, operate, control, invest or acquire an interest in, or
otherwise engage or participate in, whether as a proprietor, partner, stockholder, director, officer, member manager, employee or otherwise any business which competes in the Company’s Market with the Business, without the prior written consent
of the Company. Notwithstanding any other provisions of this Agreement, the Executive may make a passive investment in any publicly-traded company or entity in an amount not to exceed five percent of the voting stock of any such company or entity.


  
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 (b)    Agreement Not To Interfere in Business
Relationships. 
 (i)    During the Restricted Period, neither the Executive nor any
Controlled Entity will directly or indirectly solicit, induce or influence any customer, or any other person which has a business relationship with the Company or any affiliate, or which had on the date of this Agreement such a relationship with the
Company or any affiliate, to discontinue or reduce the extent of such relationship with the Company or any affiliate in the Company’s Market. 

(ii)    During the Restricted Period, neither the Executive nor any Controlled Entity will
(1) directly or indirectly recruit, solicit or otherwise induce or influence any stockholder or employee of the Company or any of its affiliates to discontinue such employment or other relationship with the Company or any affiliate, or
(2) employ or seek to employ, or cause any business which competes in the Company’s Markets to employ or seek to employ for any reason, any person who is then (or was at any time within six months prior to the date the Executive or such
business employs or seeks to employ such person) employed by the Company or any affiliate without the prior written consent of the Company. 

(c)    Non-Disparagement. During and after the Term, the
Executive and any Controlled Entity shall not publicly disparage: the Company; the Company’s predecessors, successors, subsidiaries, related entities, and all of their members, shareholders, officers, directors, agents, attorneys, employees, or
board members; or the Company’s customers. Nothing in this Section 10(c) precludes the Executive from making truthful statements in connection with (i) a disclosure required by law, regulation, or order of a court or governmental
agency, (ii) the filing of a good faith report or participation in a proceeding related to an alleged violation of any applicable law, regulation, or order of a court or governmental agency, or (iii) any governmental, quasi-governmental or
administrative or judicial inquiry or court proceeding. During and after the Term, the Company shall not and it shall cause its directors and officers not to publicly disparage the Executive. 

(d)    Confidentiality. During and after the Term, neither the Executive nor any Controlled Entity
will directly or indirectly disclose to anyone, or use or otherwise exploit for the Executive’s or any Controlled Entity’s own benefit or for the benefit of anyone other than the Company, any confidential information, including, without
limitation, any confidential “know-how”, trade secrets, customer lists, details of customer contracts, pricing policies, operational methods, marketing plans or strategies, product development
techniques or plans, business acquisition plans and new personnel acquisition plans of the Company or any affiliate related to the Business or any portion or phase of any scientific, engineering or technical information, design, process, procedure,
formula, improvement, discovery, invention, machinery or device of the Company or any affiliate, whether or not in written or tangible form (all of the preceding is hereinafter referred to as “Confidential Information”). The term
“Confidential Information” does not include, and there shall be no obligation hereunder with respect to, information that becomes generally available to the public or the Company’s competitors other than as a result of a disclosure by
the Executive or a Controlled Entity or any agent or other representative thereof. Neither the Executive nor any Controlled Entity shall have any obligation hereunder to keep confidential any Confidential Information to the extent disclosure is
required by law, or determined in good faith 

  
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by the Executive to be necessary or appropriate to comply with any legal or regulatory order, regulation or requirement; provided, however, that in the event disclosure is required by law, the
Executive or the Controlled Entity concerned shall provide the Company with prompt advance written notice of such requirement so that the Company may seek an appropriate protective order. It is understood that in any new employment, the Executive
may use Executive’s ordinary skill and non-confidential knowledge, even though said skill and non-confidential knowledge may have been gained at the Company. The
Executive’s obligations under this Section 10(d) shall be in addition to, not in substitution for, any common law fiduciary duties the Executive has to the Company regarding information acquired during the course of Executive’s
employment. 
 (e)    Intellectual Property. The Executive shall communicate to the Company full
information concerning all inventions, improvements, discoveries, formulas, processes, systems of organization, management procedures, software or computer applications (hereinafter, collectively, “Intellectual Property”) made or conceived
by him either solely or jointly with others while in the employ of the Company, whether or not perfected during Executive’s period of employment and which shall be within the existing or contemplated scope of the Company’s business during
Executive’s employment. The Executive will assist the Company and its nominees in every way at the Company’s expense in obtaining patents for such Intellectual Property as may be patentable in any and all countries and the Executive will
execute all papers the Company may desire and assignments thereof to the Company or its nominees and said Intellectual Property shall be and remain the property of the Company and its nominees, if any, whether patented or not or assigned or not.

 (f)    Survival of Covenants. In the event of a termination of this Agreement, the covenants
and agreements contained in this Section 10 shall survive, shall continue thereafter, and shall not expire unless and except as expressly set forth in this Section. 

(g)    Remedies. The parties to this Agreement agree that (i) if either the Executive or any
Controlled Entity breaches any provision of this Section 10, the damage to the Company and its affiliates will be substantial, although difficult to ascertain, and money damages will not afford an adequate remedy, and (ii) if either the
Executive or any Controlled Entity is in breach of this Agreement, or threatens a breach of this Agreement, the Company shall be entitled in its own right and/or on behalf of one or more of its affiliates, in addition to all other rights and
remedies as may be available at law or in equity, to (1) injunctive and other equitable relief to prevent or restrain a breach of this Agreement and (2) may require the breaching party to pay damages as the result of any transactions
constituting a breach hereof. 
 (h)    Notice of Immunity. The Executive understands that under
the Defend Trade Secrets Act of 2016 (the “Act’), an individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that (A) is made (i) in confidence to
a Federal, State or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document
filed in a lawsuit or other proceeding, if such filing is made under seal. The Executive further understands that under the Act, an individual who files a lawsuit for retaliation by a company for reporting a suspected violation of law may disclose
the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret,
except pursuant to court order. 

  
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 11.    Indemnification of Executive. In the event
the Executive is terminated for any reason, (a) the Company will hold harmless and indemnify the Executive for all third party claims, actions or other proceedings against the Executive initiated either prior to the termination of employment or
thereafter which relate to duties performed in good faith by the Executive while employed by the Company; and (b) the Company will retain the Executive as named insured under any directors’ and officers’ insurance policies it may
have, for acts of the Executive during the time Executive served as an officer of the Company. Additionally, all reasonable legal and other costs incurred by the Executive to defend Executive will be paid by the Company, as the Executive is billed
for such costs, within ten days of periodic submission to the Company of statements of charges of attorneys and statements of other expenses incurred by the Executive in connection with such defense. 

12.    Effect of Waiver. The waiver by either party of a breach of any provision of this Agreement
shall not operate as or be construed as a waiver of any subsequent breach thereof. 

13.    Notice. Any and all notices provided for herein shall be in writing and shall be physically
delivered or mailed by registered or certified mail, return receipt requested to the parties at their respective addresses set forth hereinabove. Either party may from time to time designate a different address for notices to be sent to such party
by giving the other party due notice of such different address. 
 14.    Modification and
Assignment. This Agreement shall not be modified or amended except by an instrument in writing signed by the parties hereto. This Agreement and all of its terms and conditions shall be binding upon and shall inure to the benefit of the parties
hereto and their respective heirs, legal representatives, successors and assigns, including but not limited to any corporation or other entity with or into which the Company is merged or consolidated or any other successor of the Company. The
Executive agrees that Executive will not and may not assign, transfer or convey, pledge or encumber this Agreement or Executive’s right, title or interest therein, or Executive’s power to execute the same or any monies due or to become due
hereunder, this Agreement being intended to secure the personal services of the Executive, and the Company shall not recognize any such assignment, transfer, conveyance, pledge or encumbrance. 

15.    Applicable Law. This Agreement and the rights and obligations of the parties hereunder shall
be construed and interpreted in accordance with the laws of the State of New York, without giving effect to the conflict of laws provisions thereof. Any action or proceeding brought by either party against the other arising out of or related to the
Agreement shall be brought only in a state court of competent jurisdiction located in the County of Monroe, State of New York or the Federal District Court for the Western District of New York located in Monroe County, New York and the parties
hereby consent to the personal jurisdiction and venue of said courts. 
 16.    Prior Agreements.
This Agreement shall supersede any prior employment agreement, arrangement or understanding between the Company and the Executive, without limitation, and shall be effective from the date specified hereinabove. 

  
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 17.    Business Combinations. In the event of any
sale, merger or any form of business combination affecting the Company, including without limitation the purchase of assets or any other form of business combination, the Company will obtain the express written assumption of this Agreement by the
acquiring or surviving entity from such combination, and failure of the Company to obtain such an assumption will constitute a breach of this Agreement, entitling the Executive to all payments and other benefits to be provided in the event of
termination without cause provided in Section 8. 
 18.    Section 409A.
This Agreement is intended to comply with Section 409A of the Code to the extent its provisions are subject to that law. The parties agree that they will negotiate in good faith regarding amendments necessary to bring this Agreement into
compliance with the terms of that Section or an exemption therefrom as interpreted by guidance issued by the Internal Revenue Service, taking into account any limitations on amendments imposed by Section 409A or Internal Revenue Service
guidance. The parties further agree that to the extent the terms of this Agreement fail to qualify for exemption from or satisfy the requirements of Section 409A, this Agreement may be operated in compliance with Section 409A pending
amendment to the extent authorized by the Internal Revenue Service. In such circumstances the Company and the Executive will administer the Agreement in a manner which adheres as closely as possible to the existing terms and intent of the Agreement
while complying with Section 409A. 
 19.    Headings. The section headings of this
Agreement are for convenience of reference only and are not to be considered in the interpretation of the terms and conditions of this Agreement. 

20.    Invalidity or Unenforceability. If any term or provision of this Agreement is held to be
invalid or unenforceable, for any reason, such invalidity or unenforceability shall not affect any other term or provision hereof and this Agreement shall continue in full force and effect as if such invalid or unenforceable term or provision (to
the extent of the invalidity or unenforceability) had not been contained herein. If any court determines that any provision of Section 10 hereof is unenforceable because of the duration or geographic scope of such provision, such court shall
have the power to reduce the scope or duration of such provision, as the case may be, and, in its reduced form, such provision shall then be enforceable. 

21.    Counterparts. This Agreement may be executed in any number of counterparts, each of which
for all purposes shall be deemed to be an original. 
 [Remainder of page intentionally left blank.] 

  
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 IN WITNESS WHEREOF, the parties hereto have duly executed this agreement as
of the day and year first above written. 
  

					
	 GRAHAM CORPORATION

		
	 By:
	 	 /s/ Jeffrey F. Glajch

		 	 Name:
	 	 Jeffrey F. Glajch

		 	 Title:
	 	Vice President - Finance & Administration, Chief Financial Officer and Corporate Secretary
		
	 By:
	 	 /s/ Daniel Thoren

		 	 Name:
	 	 Daniel Thoren




  
 [Signature Page to the
Employment Agreement of Daniel Thoren]