X0306 4 2016-09-08 0000042888 GRACO INC GGG 0001190809 MCHALE PATRICK J 88 11TH AVENUE NE MINNEAPOLIS MN 55413 1 1 President and CEO Common Stock 2016-09-08 4 M 0 11500 20.80 A 142229.9023 D Common Stock 2016-09-08 4 S 0 11500 74.1882 D 130729.9023 D Common Stock 1879.3899 I By ESOP Non-qualified Stock Option (Right to Buy) 20.80 2016-09-08 4 M 0 11500 0 D 2019-02-13 Common Stock 11500 213500 D The price reported in Column 4 is a weighted average price. The shares were sold at prices ranging from $73.89 to $74.74, inclusive. The reporting person undertakes to provide Graco Inc., any security holder of Graco Inc., or the staff of the Securities and Exchange Commission, upon request, with full information regarding the number of shares sold at each separate price within the range set forth in the footnote. Included in the amount reported are shares acquiared under Graco Employee Stock Purchase Plan, exempt under Rule 16b-3. Included in this number are dividends paid pursuant to the Graco Employee Stock Ownership Plan, exempt under Rule 16b-3(c). Employee stock option granted pursuant to the Amended and Restated Graco Inc. Stock Incentive Plan (2006) in transaction exempt under Rule 16b-3. The stock option becomes exercisable in four equal annual installments, commencing one year after the date of the grant. /s/ Francis J. Brixius Jr., attorney-in-fact for Mr. McHale 2016-09-08