FORM 4
[ ] Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).         
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES
                                                                                  
OMB APPROVAL
OMB Number: 3235-0287
Expires: November 30, 2011
Estimated average burden
hours per response... 0.5
                      
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public
Utility Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940
                      

1. Name and Address of Reporting Person *

Zumbolo Brian J 		2. Issuer Name and Ticker or Trading Symbol

GRACO INC [ GGG ] 		5. Relationship of Reporting Person(s) to Issuer (Check all applicable)

_____ Director                      _____ 10% Owner
__ X __ Officer (give title below)      _____ Other (specify below)
Vice President and General Mgr
(Last)          (First)          (Middle)

88 11TH AVENUE NE 		3. Date of Earliest Transaction (MM/DD/YYYY)

2/13/2012
(Street)

MINNEAPOLIS, MN 55413
(City)        (State)        (Zip)
4. If Amendment, Date Original Filed (MM/DD/YYYY)

 
6. Individual or Joint/Group Filing (Check Applicable Line)

_ X _ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3) 		2. Trans. Date 2A. Deemed Execution Date, if any 3. Trans. Code
(Instr. 8) 		4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5) 		5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4) 		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V Amount (A) or (D) Price
Common Stock   2/13/2012     M    1124   A $27.91   1802   D    
Common Stock   2/13/2012     X    300   A $32.95   2102   D    
Common Stock   2/13/2012     X    5000   A $40.68   7102   D    
Common Stock   2/13/2012     M    18000   A $35.90   25102   D    
Common Stock   2/13/2012     M    16000   A $20.80   41102   D    
Common Stock   2/13/2012     M    2398   A $27.17   43500   D    
Common Stock   2/13/2012   (1)   S    42822   D $50   (2) 678   (3) D    

Table II - Derivative Securities Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities)
1. Title of Derivate Security
(Instr. 3) 		2. Conversion or Exercise Price of Derivative Security 3. Trans. Date 3A. Deemed Execution Date, if any 4. Trans. Code
(Instr. 8) 		5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5) 		6. Date Exercisable and Expiration Date 7. Title and Amount of Securities Underlying Derivative Security
(Instr. 3 and 4) 		8. Price of Derivative Security
(Instr. 5) 		9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Non-Qualified Stock Option (right to buy)   $20.80   2/13/2012     M         16000      (4) 2/13/2019   Common Stock   16000   $ 0   26000   D    
Non-Qualified Stock Option (right to buy)   $27.17   2/13/2012     M         2398      (4) 2/12/2020   Common Stock   2398   $ 0   27602   D    
Non-Qualified Stock Option (right to buy)   $27.91   2/13/2012     M         1124      (5) 2/19/2014   Common Stock   1124   $ 0   0   D    
Non-Qualified Stock Option (right to buy)   $32.95   2/13/2012     X         300      (6) 9/23/2014   Common Stock   300   $ 0   0   D    
Non-Qualified Stock Option (right to buy)   $35.90   2/13/2012     M         18000      (4) 2/15/2018   Common Stock   18000   $ 0   12000   D    
Non-Qualified Stock Option (right to buy)   $40.68   2/13/2012     X         5000      (7) 2/17/2016   Common Stock   5000   $ 0   0   D    

Explanation of Responses:
( 1)  Sale pursuant to a 10b5-1 Trading Plan effective February 6, 2012.
( 2)  The price reported in Column 4 is a weighted average price. The shares were sold in multiple transactions with prices ranging from $50.0000 to $50.0050, 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.
( 3)  Included in the amount reported are shares acquired under Graco Inc. 2006 Employee Stock Purchase Plan, exempt under Rule 16b-3.
( 4)  Employee stock option granted pursuant to the Amended and Restated Stock Incentive Plan (2006) in transaction exempt under Section 16b-3. The stock option becomes exercisable in four equal annual installments, commencing one year after the date of the grant.
( 5)  Employee stock option granted pursuant to the Graco Inc. Stock Incentive Plan 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.
( 6)  Employee stock option granted pursuant to the Graco Inc. 1999 Employee Stock Incentive Plan. The stock option becomes exercisable three years after the date of the grant.
( 7)  Employee stock option granted pursuant to the Graco Inc. 1999 Employee Stock Incentive Plan. The stock option becomes exercisable in four equal annual installments, commencing one year after the date of the grant.

Reporting Owners
Reporting Owner Name / Address
Relationships
Director 10% Owner Officer Other
Zumbolo Brian J
88 11TH AVENUE NE
MINNEAPOLIS, MN 55413

Vice President and General Mgr

Signatures
By: Carrie Daniel Russell, Attorney-in-Fact For: Brian J. Zumbolo 2/14/2012
** Signature of Reporting Person Date


Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.
Graco (NYSE:GGG)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Graco Charts.
Graco (NYSE:GGG)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Graco Charts.