X0306 4 2016-03-07 0000042888 GRACO INC GGG 0001445183 Ahlers David M 88 11TH AVENUE NE MINNEAPOLIS MN 55413 1 Vice President Common Stock 2016-03-07 4 M 0 23500 20.80 A 42281.3202 D Common Stock 2016-03-07 4 S 0 23500 81.8759 D 18781.3202 D Non-qualified Stock Option (Right to Buy) 20.80 2016-03-07 4 M 0 23500 0 D 2019-02-13 Common Stock 23500 0 D The price reported in Column 4 is a weighted average price. The shares were sold at prices ranging from $81.67 to $82.11, 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 set forth within the footnote. The total number of stock units reported includes stock units acquired in unreported dividend reinvestment transactions. 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. Ahlers 2016-03-07