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<TITLE>S-8, Graco Inc. Amended and Restated Stock Incentive Plan (2006)</TITLE>
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     <TD WIDTH="70%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="20%" ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Registration No.</FONT></TD>
     <TD WIDTH="10%" ALIGN="LEFT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD></TR>
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<P ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>As filed with the
Securities and Exchange Commission on May 16, 2006  </FONT></P>



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<P ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>UNITED STATES <BR>SECURITIES AND EXCHANGE
COMMISSION </B><BR>Washington, D.C. 20549 </FONT> </P>

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<H1 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>FORM S-8<BR>REGISTRATION STATEMENT
UNDER<BR>THE SECURITIES ACT OF 1933 </FONT></H1>

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<P ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>GRACO INC.</B><BR>(Exact
name of registrant as specified in its charter) </FONT> </P>

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     <TH ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Minnesota</FONT></TH>
     <TH><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TH>
     <TH ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">41-0285640</FONT></TH></TR>
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     <TD WIDTH="34%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">(State or other jurisdiction of</FONT></TD>
     <TD WIDTH="33%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="33%" ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">(I.R.S. Employer Identification No.)</FONT></TD></TR>
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     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">incorporation or organization)</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
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<P ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>88-11th Avenue N.E.<BR>Minneapolis, Minnesota
55413-1894</B><BR>(Address of registrant&#146;s principal executive offices, including zip
code) </FONT>

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<P ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Graco Inc. Amended and
Restated Stock Incentive Plan (2006)</B><BR>(Full title of the plan) </FONT> </P>

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<P ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Karen P. Gallivan<BR>Vice President, General
Counsel &amp; Secretary<BR>88-11th Avenue N.E.<BR>Minneapolis, Minnesota
55413-1894<BR>(612) 623-6664 </B><BR>(Name,
address and telephone number,<BR>including
area code, of agent for service) </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>CALCULATION OF
REGISTRATION FEE </FONT></H1>

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     <TD WIDTH="20%" ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="20%" ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="20%" ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Proposed maximum</FONT></TD>
     <TD WIDTH="20%" ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Proposed maximum</FONT></TD>
     <TD WIDTH="20%" ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Title of Securites</B> </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Amount to be</B> </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">offering price per</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">aggregate offering</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Amount of</FONT></TD></TR>
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     <TD ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>to be registered</B> </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>registered</B> </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">share<SUP>1</SUP> </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">price<SUP>1</SUP></FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">registration fee</FONT></TD></TR>
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     <TD COLSPAN=5><HR SIZE="1" COLOR="Black" NOSHADE="Noshade"></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Common Stock</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">4,000,000 shares</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">$47.99</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">$191,960,000</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">$20,539.72</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">($1.00 par value)</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
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<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>1.&nbsp;&nbsp;Estimated solely for
the purpose of calculating the registration fee in accordance with Rule 457(c)and 457
(h)(1), based upon the average of the high and low prices of the Common Stock as reported
on the New York Stock Exchange on  May 10, 2006.  </FONT></P>
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<P ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>PART II.<BR>INFORMATION REQUIRED IN THE REGISTRATION STATEMENT </FONT></P>


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<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Item 3.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incorporation of Documents by Reference. </FONT> </P>

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<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following documents, which have been filed by Graco Inc. (the &#147;Company&#148;) with
the Securities and Exchange Commission, are incorporated by reference in this
Registration Statement, as of their respective dates:  </FONT></P>


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<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;               The
Company&#146;s Annual Report on Form 10-K for the fiscal year ended December
               30, 2005;  </FONT></P></TD></TR>
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<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;               All
other reports of the Company filed pursuant to Section 13(a) or 15(d) of the
               Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;),
               since the end of the fiscal year covered by the Annual Report on Form 10-K
               referred to in subsection (a) above; and  </FONT></P></TD></TR>
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<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;               The
description of the Company&#146;s Common Stock, par value $1.00 per share,
               contained in any Registration Statement or report filed under the Exchange
Act,                including any amendment or report filed for the purpose of updating
such                description.  </FONT></P></TD></TR>
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<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
documents filed by the Company pursuant to Sections 13(a), 13(c), 14 and 15(d) of the
Exchange Act after the date of this Registration Statement and prior to the filing of a
post-effective amendment to this Registration Statement which indicates that all
securities offered here have been sold or which deregisters all securities remaining
unsold, shall be deemed to be incorporated by reference in this Registration Statement
and to be a part of this Registration Statement from the respective dates of filing of
such documents.  </FONT></P>


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<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Item 4.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Description
of Securities. </FONT> </P>

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<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
applicable. </FONT></P>


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<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Item 5.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interests
of Named Experts and Counsel. </FONT> </P>

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<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Karen
P. Gallivan, Vice President, General Counsel and Secretary of the Company, has given her
opinion about certain legal matters affecting the shares of the Company&#146;s Common
Stock registered under this Registration Statement. Ms. Gallivan is eligible to
participate in the Graco Inc. Amended and Restated Stock Incentive Plan (2006) and, as of
May 12, 2006, she is the beneficial owner of 19,925 shares of the Company&#146;s Common
Stock.  </FONT></P>


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<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Item 6.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indemnification of Directors and Officers. </FONT> </P>

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<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
302A.521 of the Minnesota Business Corporation Act provides that a company shall, subject
to certain limitations, indemnify officers and directors made or threatened to be made a
party to a proceeding by reason of that officer or director&#146;s former or present
official capacity with the company. As required, we will indemnify that person against
judgments, penalties, fines, settlements and reasonable expenses if the officer or
director:  </FONT></P>


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<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&#149; </FONT></TD>
<TD WIDTH=90%><P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>has
not been indemnified by another organization;  </FONT></P></TD>
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<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&#149; </FONT></TD>
<TD WIDTH=90%><P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>acted
in good faith;  </FONT></P></TD>
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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>      &#149; </FONT></TD>
<TD WIDTH=90%><P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>has
not received an improper personal benefit and Section 302A.255 regarding
            director conflicts of interests, if applicable, has been satisfied; </FONT></P></TD>
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<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>      &#149; </FONT></TD>
<TD WIDTH=90%><P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>assuming
the case is a criminal proceeding, the person had no reasonable cause             to
believe the conduct was unlawful; and </FONT></P></TD>
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<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&#149; </FONT></TD>
<TD WIDTH=90%><P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>reasonably
believed that the conduct was in the best interests of the company or, in the case of an
officer or director who is or was serving at the request of the company as a director,
officer, partner, trustee, employee or agent of another organization or employee benefit
plan, reasonably believed that the conduct was not opposed to the best interests of the
company.  </FONT></P></TD>
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<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Article
7 of the Company&#146;s Restated Articles of Incorporation, as amended to date, provides
that no director of the Company shall be personally liable to Graco or its shareholders
for monetary damages for breach of fiduciary duty by such director as a director,
provided, however, that the liability of the director shall not be eliminated or limited
(i) for breach of the director&#146;s duty of loyalty to the corporation or its
shareholders, (ii) for acts or omissions not in good faith or which involve intentional
misconduct or a knowing violation of the law, (iii) under Section 302A.559 of the
Minnesota Business Corporation Act or Section 80A.23 of the Minnesota Securities Law or
(iv) for any transactions from which the director derived an improper personal benefit.
Article 7 further provides that no amendment to or repeal of the Article shall apply to
or have any effect on the liability or alleged liability of any director for or with
respect to any acts or omissions of such director occurring prior to such amendment or
repeal.  </FONT></P>


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<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
8.01 of the Company&#146;s Bylaws provides that the Company shall indemnify its officers
and directors under such circumstances and to the extent permitted by Section 302A.521,
as now enacted or as hereafter amended.  </FONT></P>


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<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company maintains directors&#146; and officers&#146; liability insurance which covers
certain liabilities and expenses of its directors and officers and covers the Company for
reimbursement of payments to its directors and officers in respect of such liabilities
and expenses.  </FONT></P>


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<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Item 7.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exemption from
Registration Claimed. </FONT> </P>

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<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
applicable. </FONT></P>


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<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Item 8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits.</B> </FONT> </P>

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<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>3.1  </FONT></TD>
<TD WIDTH=90%><P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Restated
Articles of Incorporation of Graco Inc., as amended September 24, 2004 (Incorporated by reference to Exhibit 3.1 to the Company's 2004 Annual Report
on Form 10-K) </FONT></P></TD></TR>
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<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>4.1 </FONT></TD>
<TD WIDTH=90%><P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Rights
Agreement dated as of February 25, 2000, between the Company and Wells Fargo Bank N.A., formerly
known as Norwest Bank Minnesota, National Association, as Rights Agent, including as
Exhibit A the form of the Certificate of Designation, Preferences and Rights of Series A
Junior Participating Preferred Shares. (Incorporated by reference to Exhibit 4 to the
Company&#146;s Report on  Form 8-K dated February 25, 2000) </FONT></P></TD></TR>
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<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>4.2 </FONT></TD>
<TD WIDTH=90%><P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Credit
Agreement dated April 1, 2006 between the Company and Wachovia Bank, N.A. (Incorporated
by reference to Exhibit 10.1 to the Company&#146;s Report on Form 10-Q for the thirteen
weeks ending March 31, 2006)  </FONT></P></TD>
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<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>5.1  </FONT></TD>
<TD WIDTH=90%><P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Opinion
and consent of Karen P. Gallivan, Vice President, General Counsel and
            Secretary of Graco Inc., regarding legality. </FONT></P></TD>
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<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>23.1  </FONT></TD>
<TD WIDTH=90%><P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Consent
of Deloitte &amp; Touche LLP, independent registered public accounting firm.  </FONT></P></TD>
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<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>24.1  </FONT></TD>
<TD WIDTH=90%><P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Power
of Attorney</FONT></P></TD>
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<BR>

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<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Item 9.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Undertakings. </FONT> </P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>A. </FONT></TD>
<TD WIDTH=95%><P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Post-Effective
Amendments. </FONT></P></TD></TR>
</TABLE>
<BR>

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<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned registrant hereby undertakes:  </FONT></P>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;               To
file, during any period in which offers or sales are being made, a
               post-effective amendment to this registration statement:  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;               To
include any prospectus required by Section 10(a)(3) of the Securities Act;  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;               To
reflect in the prospectus any facts or events arising after the effective
               date of the registration statement (or the most recent post-effective
amendment                thereof) which, individually or in the aggregate, represent a
fundamental change                in the information set forth in the registration
statement. Notwithstanding the                foregoing, any increase or decrease in
volume of securities offered (if the                total dollar value of securities
offered would not exceed that which is                registered) and deviation from the
low or high end of the estimated maximum                offering range may be reflected
in the form of prospectus filed with the                Commission pursuant to Rule
424(b) if, in the aggregate, the changes in volume                and price represent no
more than a 20% change in the maximum aggregate offering                price set forth
in the &#147;Calculation of Registration Fee&#148; table in the                effective
registration statement;  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;               To
include any material information with respect to the plan of distribution not
               previously disclosed in the registration statement or any material change
to                such information in the registration statement;  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><P ALIGN=JUSTIFY>
<FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><I>provided,
however, </I>that paragraphs (i) and (ii) above will not apply if the information required to
be included in a post-effective amendment by those paragraphs is contained in reports
filed by the registrant pursuant to Section 13 or Section 15(d) of the Securities
Exchange Act that are incorporated by reference in this registration statement. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That,
for the purpose of determining any liability under the Securities Act,
               each such post-effective amendment shall be deemed to be a new
registration                statement relating to the securities offered therein, and the
offering of such                securities at that time shall be deemed to be the initial
bona fide offering                thereof.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
remove from registration by means of a post-effective amendment any of the
               securities being registered which remain unsold at the termination of the
               offering.  </FONT></P></TD>
</TR>
</TABLE>
<BR>


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<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>B.&nbsp;&nbsp;&nbsp;&nbsp;          Subsequent
Documents Incorporated by Reference.  </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned registrant hereby undertakes that, for purposes of determining any liability
under the Securities Act, each filing of the registrant&#146;s annual report pursuant to
Section 13(a) or Section 15(d) of the Securities Exchange Act that is incorporated by
reference in the registration statement shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.  </FONT></P></TD></TR>
</TABLE>
<BR>

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<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>C.&nbsp;&nbsp;&nbsp;&nbsp;          Claims
for Indemnification.  </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to
directors, officers and controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as
expressed in the Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the registrant of
expenses incurred or paid by a director, officer or other controlling person of the
registrant in the successful defense of any action, suit or proceeding) is asserted by
such director, officer or controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as expressed in the
Act and will be governed by the final adjudication of such issue.  </FONT></P></TD></TR>
</TABLE>
<BR>
<PAGE>


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<P ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>SIGNATURES</B> </FONT> </P>

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<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Act of 1933, the registrant certifies that it has
reasonable grounds to believe that it meets all of the requirements for filing on Form
S-8 and has duly caused this Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Minneapolis, State of Minnesota on
the 15th day of May, 2006.  </FONT></P>












<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TH COLSPAN=2 ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">GRACO INC.</FONT></TH></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="5%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">By:</FONT></TD>
     <TD WIDTH="95%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><U>/s/Karen P. Gallivan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Karen P. Gallivan</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Vice President, General Counsel<BR>and Secretary</FONT></TD></TR>
</TABLE>
<BR>

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<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Act, this Registration Statement has been signed by
the following persons in the capacities and on the date indicated. </FONT></P>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TH ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Signature</FONT></TH>
     <TH ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Title</FONT></TH></TR>
<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">/s/David A. Roberts</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><HR ALIGN=LEFT WIDTH=95% SIZE=1 NOSHADE><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Chief Executive Officer</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">David A. Roberts</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><I>(Principal Executive Officer)</I> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">/s/James A. Graner</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><HR ALIGN=LEFT WIDTH=95% SIZE=1 NOSHADE><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Chief Financial Officer and Treasurer</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">James A. Graner</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><I>(Principal Financial and Accounting Officer)</I> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">David A. Roberts</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Director, Chairman of the Board</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Robert G. Bohn</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Director</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">William J. Carroll</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Director</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Jack W. Eugster</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Director</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">J. Kevin Gilligan</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Director</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Lee R. Mitau</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Director</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">James H. Moar</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Director</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Martha A.M. Morfitt</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Director</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Mark H. Rauenhorst</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Director</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">William G. Van Dyke</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Director</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">R. William Van Sant</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Director</FONT></TD></TR>
</TABLE>


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<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>David A.
Roberts, by signing his name hereto, does hereby sign this document on behalf of himself
and each of the above named directors of the Registrant pursuant to powers of attorney
duly executed by such persons (set forth in Exhibit 24.1 to this Registration Statement).</FONT></P>
<BR>
<BR>
<BR>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">/s/David A. Roberts</FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><HR ALIGN=LEFT WIDTH=95% SIZE=1 NOSHADE><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">David A. Roberts</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">(For himself and as attorney-in-fact)</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Dated: May 15, 2006</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>
<PAGE>


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<H1 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>EXHIBIT INDEX </FONT></H1>
<BR>
<BR>


<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TH ALIGN="LEFT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Exhibit Number</FONT></TH>
     <TH><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Description</FONT></TH>
     <TH ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Page</FONT></TH></TR>
<TR VALIGN="TOP">
     <TD WIDTH="10%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="80%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="10%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">3.1</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Restated Articles of
                   Incorporation of Graco Inc., as
                   amended September 24, 2004
                   (incorporated by reference to
                   Exhibit 3.1 to the Company's
                   2004 Annual Report on Form 10-K)</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">4.1</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Rights Agreement dated as of
                   February 25, 2000, between the
                   Company and Wells Fargo Bank N.A.,
                   formerly known as Norwest Bank
                   Minnesota, National
                   Association, as Rights Agent,
                   including as Exhibit A the form
                   of the Certificate of
                   Designation, Preferences and
                   Rights of Series A Junior
                   Participating Preferred
                   Shares.  (Incorporated by
                   reference to Exhibit 4 to the
                   Company's Report on Form 8-K
                   dated February 25, 2000)</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">4.2</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Credit Agreement dated April 1,
                   2006 between the Company and
                   Wachovia Bank, N.A.
                   (Incorporated by reference to
                   Exhibit 10.1 to the Company's
                   Report on Form 10-Q for the
                   thirteen weeks ending March 31,
                   2006)</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">5.1</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Opinion and Consent of Karen P.
                   Gallivan, Vice President,
                   General Counsel and Secretary
                   of Graco Inc., regarding
                   legality.</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">23.1</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Consent of Deloitte &amp; Touche
                   LLP, independent registered
                   public accounting firm.</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">24.1</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Power of Attorney</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>
<PAGE>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-Arial" FSL="Default" -->
<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Exhibit 5.1</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-Arial" FSL="Default" -->
<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>May 8, 2006</FONT></P>
<BR>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-Arial" FSL="Project" -->
<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Graco Inc.<BR>88-11th
Avenue N.E.<BR>Minneapolis, Minnesota 55413-1894  </FONT></P>
<BR>
<BR>
<BR>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-Arial" FSL="Default" -->
<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>To Whom it
May Concern:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-Arial" FSL="Default" -->
<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>I am a
member of the bar of the State of Minnesota and Vice President, General Counsel and
Secretary of Graco Inc. (the &#147;Company&#148;). Reference is made to the
Registration Statement on Form S-8 that the Company intends to file with the Securities
and Exchange Commission pursuant to the Securities Act of 1933, as amended, for the
purpose of registering 4,000,000 shares of Common Stock, $1.00 par value, of the Company,
to be issued to employees, officers and non-employee directors of the Company pursuant to
the Graco Inc. Amended and Restated Stock Incentive Plan (2006) (the
&#147;Plan&#148;).</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-Arial" FSL="Project" -->
<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>I have
examined such documents and have reviewed such questions of law as I have considered
necessary and appropriate for the purposes of this opinion. I am of the opinion that the
shares of Common Stock to be issued upon exercise of stock options granted pursuant to the
Plan, will be legally issued, fully paid and nonassessable, provided (i) the value
received by the Company is at least equal to the par value of the shares of Common Stock
and (ii) the Registration Statement shall have become effective under the Securities Act
of 1933, as amended. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-Arial" FSL="Default" -->
<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>I
consent to the use of this opinion as an exhibit to the Registration Statement.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-Arial" FSL="Default" -->
<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Very truly
yours, </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-Arial" FSL="Default" -->
<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><U>/s/Karen P.
Gallivan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>Karen P.
Gallivan<BR>
Vice President, General Counsel<BR>&nbsp;&nbsp;&nbsp;and
Secretary </FONT> </P>
<PAGE>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-Arial" FSL="Default" -->
<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Exhibit
23.1</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-Arial" FSL="Project" -->
<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>CONSENT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM </FONT></P>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-Arial" FSL="Project" -->
<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>We
consent to the incorporation by reference in this Registration Statement on Form S-8 of
our reports dated February 24, 2006, relating to the financial statements and financial
statement schedule of Graco Inc., and management&#146;s report on the effectiveness of
internal control over financial reporting appearing in the Annual Report on Form 10-K of
Graco Inc. for the year ended December 30, 2005. </FONT></P>
<BR>
<BR>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-Arial" FSL="Default" -->
<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><U>/s/Deloitte
&amp; Touche LLP&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>Deloitte
&amp; Touche LLP<BR>Minneapolis, Minnesota </FONT> </P>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-Arial" FSL="Default" -->
<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>May 11, 2006</FONT></P>

<PAGE>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-Arial" FSL="Default" -->
<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Exhibit
24.1 </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center Bold-Arial" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>POWER OF ATTORNEY  </FONT></H1>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-Arial" FSL="Project" -->
<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>KNOW ALL
PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby
constitutes and appoints David A. Roberts, his or her true and lawful attorney-in-fact and
agent with full powers of substitution and resubstitution, for him or her and in his or
her name, place and stead, in any and all capacities, to execute one or more Registration Statements
on Form S-8 to be filed under the Securities Act of 1933 for the registration of (i)
4,000,000 shares of Common Stock of Graco Inc. under the Graco Inc. Amended and Restated
Stock Incentive Plan (2006) and (ii) 2,000,000 shares of Common Stock of Graco Inc. under
the Graco Inc. 2006 Employee Stock Purchase Plan, and any and all post-effective
amendments thereto, and to file such registration statements, with all exhibits thereto,
and other documents in connection therewith, with the Securities and Exchange Commission,
granting unto said attorney-in-fact and agent, full power and authority to do and perform
to all intents and purposes as he or she might or could do in person, hereby ratifying and
confirming all that said attorney-in-fact and agent, or his substitute or substitutes, may
lawfully do or cause to be done by virtue hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-Arial" FSL="Default" -->
<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>In
witness whereof, this Power of Attorney has been signed by the following persons on the
date indicated. </FONT></P>


<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TH>&nbsp;</TH>
     <TH><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Date</FONT></TH></TR>
<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">/s/Lee R. Mitau</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">April 21, 2006</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><HR ALIGN=LEFT WIDTH=95% SIZE=1 NOSHADE><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Lee R. Mitau</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">/s/Robert G. Bohn</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">April 21, 2006</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><HR ALIGN=LEFT WIDTH=95% SIZE=1 NOSHADE><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Robert G. Bohn</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">/s/William J. Carroll</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">April 21, 2006</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><HR ALIGN=LEFT WIDTH=95% SIZE=1 NOSHADE><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">William J. Carroll</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">/s/Jack W. Eugster</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">April 21, 2006</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><HR ALIGN=LEFT WIDTH=95% SIZE=1 NOSHADE><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Jack W. Eugster</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">/s/J. Kevin Gilligan</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">April 21, 2006</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><HR ALIGN=LEFT WIDTH=95% SIZE=1 NOSHADE><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">J. Kevin Gilligan</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">/s/James H. Moar</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">April 21, 2006</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><HR ALIGN=LEFT WIDTH=95% SIZE=1 NOSHADE><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">James H. Moar</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">/s/Martha A.M. Morfitt</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">April 21, 2006</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><HR ALIGN=LEFT WIDTH=95% SIZE=1 NOSHADE><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Martha A.M. Morfitt</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">/s/Mark H. Rauenhorst</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">April 21, 2006</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><HR ALIGN=LEFT WIDTH=95% SIZE=1 NOSHADE><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Mark H. Rauenhorst</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">/s/David A. Roberts</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">April 21, 2006</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><HR ALIGN=LEFT WIDTH=95% SIZE=1 NOSHADE><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">David A. Roberts</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">/s/William G. Van Dyke</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">April 21, 2006</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><HR ALIGN=LEFT WIDTH=95% SIZE=1 NOSHADE><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">William G. Van Dyke</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">/s/R. William Van Sant</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">April 21, 2006</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><HR ALIGN=LEFT WIDTH=95% SIZE=1 NOSHADE><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">R. William Van Sant</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>


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{"company-data": {"conformed-name": "GRACO INC", "cik": "0000042888", "assigned-sic": "3561", "irs-number": "410285640", "state-of-incorporation": "MN", "fiscal-year-end": "1225"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-134162", "film-number": "06844808"}, "business-address": {"street1": "88 11TH AVENUE NE", "city": "MINNEAPOLIS", "state": "MN", "zip": "55413-1894", "phone": "6126236000"}, "mail-address": {"street1": "C/O CORPORATE SERVICE COMPANY", "street2": "MULTIFOODS TOWER, 33 SOUTH 6TH STREET", "city": "MINNEAPOLIS", "state": "MN", "zip": "55402"}}
S-8, Graco Inc. Amended and Restated Stock Incentive Plan (2006)
Registration No.
As filed with the
Securities and Exchange Commission on May 16, 2006
UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
FORM S-8
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
GRACO INC.
(Exact
name of registrant as specified in its charter)
Minnesota
41-0285640
(State or other jurisdiction of
(I.R.S. Employer Identification No.)
incorporation or organization)
88-11th Avenue N.E.
Minneapolis, Minnesota
55413-1894
(Address of registrant's principal executive offices, including zip
code)
Graco Inc. Amended and
Restated Stock Incentive Plan (2006)
(Full title of the plan)
Karen P. Gallivan
Vice President, General
Counsel & Secretary
88-11th Avenue N.E.
Minneapolis, Minnesota
55413-1894
(612) 623-6664
(Name,
address and telephone number,
including
area code, of agent for service)
CALCULATION OF
REGISTRATION FEE
Proposed maximum
Proposed maximum
Title of Securites
Amount to be
offering price per
aggregate offering
Amount of
to be registered
registered
share
1
price
1
registration fee
Common Stock
4,000,000 shares
$47.99
$191,960,000
$20,539.72
($1.00 par value)
1.  Estimated solely for
the purpose of calculating the registration fee in accordance with Rule 457(c)and 457
(h)(1), based upon the average of the high and low prices of the Common Stock as reported
on the New York Stock Exchange on  May 10, 2006.
PART II.
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
Item 3.
Incorporation of Documents by Reference.
The
following documents, which have been filed by Graco Inc. (the "Company") with
the Securities and Exchange Commission, are incorporated by reference in this
Registration Statement, as of their respective dates:
(a)                   The
Company's Annual Report on Form 10-K for the fiscal year ended December
               30, 2005;
(b)                   All
other reports of the Company filed pursuant to Section 13(a) or 15(d) of the
               Securities Exchange Act of 1934, as amended (the "Exchange Act"),
               since the end of the fiscal year covered by the Annual Report on Form 10-K
               referred to in subsection (a) above; and
(c)                   The
description of the Company's Common Stock, par value $1.00 per share,
               contained in any Registration Statement or report filed under the Exchange
Act,                including any amendment or report filed for the purpose of updating
such                description.
All
documents filed by the Company pursuant to Sections 13(a), 13(c), 14 and 15(d) of the
Exchange Act after the date of this Registration Statement and prior to the filing of a
post-effective amendment to this Registration Statement which indicates that all
securities offered here have been sold or which deregisters all securities remaining
unsold, shall be deemed to be incorporated by reference in this Registration Statement
and to be a part of this Registration Statement from the respective dates of filing of
such documents.
Item 4.
Description
of Securities.
Not
applicable.
Item 5.
Interests
of Named Experts and Counsel.
Karen
P. Gallivan, Vice President, General Counsel and Secretary of the Company, has given her
opinion about certain legal matters affecting the shares of the Company's Common
Stock registered under this Registration Statement. Ms. Gallivan is eligible to
participate in the Graco Inc. Amended and Restated Stock Incentive Plan (2006) and, as of
May 12, 2006, she is the beneficial owner of 19,925 shares of the Company's Common
Stock.
Item 6.
Indemnification of Directors and Officers.
Section
302A.521 of the Minnesota Business Corporation Act provides that a company shall, subject
to certain limitations, indemnify officers and directors made or threatened to be made a
party to a proceeding by reason of that officer or director's former or present
official capacity with the company. As required, we will indemnify that person against
judgments, penalties, fines, settlements and reasonable expenses if the officer or
director:
•
has
not been indemnified by another organization;
•
acted
in good faith;
•
has
not received an improper personal benefit and Section 302A.255 regarding
            director conflicts of interests, if applicable, has been satisfied;
•
assuming
the case is a criminal proceeding, the person had no reasonable cause             to
believe the conduct was unlawful; and
•
reasonably
believed that the conduct was in the best interests of the company or, in the case of an
officer or director who is or was serving at the request of the company as a director,
officer, partner, trustee, employee or agent of another organization or employee benefit
plan, reasonably believed that the conduct was not opposed to the best interests of the
company.
Article
7 of the Company's Restated Articles of Incorporation, as amended to date, provides
that no director of the Company shall be personally liable to Graco or its shareholders
for monetary damages for breach of fiduciary duty by such director as a director,
provided, however, that the liability of the director shall not be eliminated or limited
(i) for breach of the director's duty of loyalty to the corporation or its
shareholders, (ii) for acts or omissions not in good faith or which involve intentional
misconduct or a knowing violation of the law, (iii) under Section 302A.559 of the
Minnesota Business Corporation Act or Section 80A.23 of the Minnesota Securities Law or
(iv) for any transactions from which the director derived an improper personal benefit.
Article 7 further provides that no amendment to or repeal of the Article shall apply to
or have any effect on the liability or alleged liability of any director for or with
respect to any acts or omissions of such director occurring prior to such amendment or
repeal.
Section
8.01 of the Company's Bylaws provides that the Company shall indemnify its officers
and directors under such circumstances and to the extent permitted by Section 302A.521,
as now enacted or as hereafter amended.
The
Company maintains directors' and officers' liability insurance which covers
certain liabilities and expenses of its directors and officers and covers the Company for
reimbursement of payments to its directors and officers in respect of such liabilities
and expenses.
Item 7.
Exemption from
Registration Claimed.
Not
applicable.
Item 8.        Exhibits.
3.1
Restated
Articles of Incorporation of Graco Inc., as amended September 24, 2004 (Incorporated by reference to Exhibit 3.1 to the Company's 2004 Annual Report
on Form 10-K)
4.1
Rights
Agreement dated as of February 25, 2000, between the Company and Wells Fargo Bank N.A., formerly
known as Norwest Bank Minnesota, National Association, as Rights Agent, including as
Exhibit A the form of the Certificate of Designation, Preferences and Rights of Series A
Junior Participating Preferred Shares. (Incorporated by reference to Exhibit 4 to the
Company's Report on  Form 8-K dated February 25, 2000)
4.2
Credit
Agreement dated April 1, 2006 between the Company and Wachovia Bank, N.A. (Incorporated
by reference to Exhibit 10.1 to the Company's Report on Form 10-Q for the thirteen
weeks ending March 31, 2006)
5.1
Opinion
and consent of Karen P. Gallivan, Vice President, General Counsel and
            Secretary of Graco Inc., regarding legality.
23.1
Consent
of Deloitte & Touche LLP, independent registered public accounting firm.
24.1
Power
of Attorney
Item 9.
Undertakings.
A.
Post-Effective
Amendments.
The
undersigned registrant hereby undertakes:
(1)                       To
file, during any period in which offers or sales are being made, a
               post-effective amendment to this registration statement:
(a)                           To
include any prospectus required by Section 10(a)(3) of the Securities Act;
(b)                           To
reflect in the prospectus any facts or events arising after the effective
               date of the registration statement (or the most recent post-effective
amendment                thereof) which, individually or in the aggregate, represent a
fundamental change                in the information set forth in the registration
statement. Notwithstanding the                foregoing, any increase or decrease in
volume of securities offered (if the                total dollar value of securities
offered would not exceed that which is                registered) and deviation from the
low or high end of the estimated maximum                offering range may be reflected
in the form of prospectus filed with the                Commission pursuant to Rule
424(b) if, in the aggregate, the changes in volume                and price represent no
more than a 20% change in the maximum aggregate offering                price set forth
in the "Calculation of Registration Fee" table in the                effective
registration statement;
(c)                           To
include any material information with respect to the plan of distribution not
               previously disclosed in the registration statement or any material change
to                such information in the registration statement;
provided,
however,
that paragraphs (i) and (ii) above will not apply if the information required to
be included in a post-effective amendment by those paragraphs is contained in reports
filed by the registrant pursuant to Section 13 or Section 15(d) of the Securities
Exchange Act that are incorporated by reference in this registration statement.
(2)        That,
for the purpose of determining any liability under the Securities Act,
               each such post-effective amendment shall be deemed to be a new
registration                statement relating to the securities offered therein, and the
offering of such                securities at that time shall be deemed to be the initial
bona fide offering                thereof.
(3)        To
remove from registration by means of a post-effective amendment any of the
               securities being registered which remain unsold at the termination of the
               offering.
B.              Subsequent
Documents Incorporated by Reference.
The
undersigned registrant hereby undertakes that, for purposes of determining any liability
under the Securities Act, each filing of the registrant's annual report pursuant to
Section 13(a) or Section 15(d) of the Securities Exchange Act that is incorporated by
reference in the registration statement shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.
C.              Claims
for Indemnification.
Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to
directors, officers and controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as
expressed in the Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the registrant of
expenses incurred or paid by a director, officer or other controlling person of the
registrant in the successful defense of any action, suit or proceeding) is asserted by
such director, officer or controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as expressed in the
Act and will be governed by the final adjudication of such issue.
SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, the registrant certifies that it has
reasonable grounds to believe that it meets all of the requirements for filing on Form
S-8 and has duly caused this Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Minneapolis, State of Minnesota on
the 15th day of May, 2006.
GRACO INC.
By:
/s/Karen P. Gallivan
Karen P. Gallivan
Vice President, General Counsel
and Secretary
Pursuant
to the requirements of the Securities Act, this Registration Statement has been signed by
the following persons in the capacities and on the date indicated.
Signature
Title
/s/David A. Roberts
Chief Executive Officer
David A. Roberts
(Principal Executive Officer)
/s/James A. Graner
Chief Financial Officer and Treasurer
James A. Graner
(Principal Financial and Accounting Officer)
David A. Roberts
Director, Chairman of the Board
Robert G. Bohn
Director
William J. Carroll
Director
Jack W. Eugster
Director
J. Kevin Gilligan
Director
Lee R. Mitau
Director
James H. Moar
Director
Martha A.M. Morfitt
Director
Mark H. Rauenhorst
Director
William G. Van Dyke
Director
R. William Van Sant
Director
David A.
Roberts, by signing his name hereto, does hereby sign this document on behalf of himself
and each of the above named directors of the Registrant pursuant to powers of attorney
duly executed by such persons (set forth in Exhibit 24.1 to this Registration Statement).
/s/David A. Roberts
David A. Roberts
(For himself and as attorney-in-fact)
Dated: May 15, 2006
EXHIBIT INDEX
Exhibit Number
Description
Page
3.1
Restated Articles of
                   Incorporation of Graco Inc., as
                   amended September 24, 2004
                   (incorporated by reference to
                   Exhibit 3.1 to the Company's
                   2004 Annual Report on Form 10-K)
4.1
Rights Agreement dated as of
                   February 25, 2000, between the
                   Company and Wells Fargo Bank N.A.,
                   formerly known as Norwest Bank
                   Minnesota, National
                   Association, as Rights Agent,
                   including as Exhibit A the form
                   of the Certificate of
                   Designation, Preferences and
                   Rights of Series A Junior
                   Participating Preferred
                   Shares.  (Incorporated by
                   reference to Exhibit 4 to the
                   Company's Report on Form 8-K
                   dated February 25, 2000)
4.2
Credit Agreement dated April 1,
                   2006 between the Company and
                   Wachovia Bank, N.A.
                   (Incorporated by reference to
                   Exhibit 10.1 to the Company's
                   Report on Form 10-Q for the
                   thirteen weeks ending March 31,
                   2006)
5.1
Opinion and Consent of Karen P.
                   Gallivan, Vice President,
                   General Counsel and Secretary
                   of Graco Inc., regarding
                   legality.
23.1
Consent of Deloitte & Touche
                   LLP, independent registered
                   public accounting firm.
24.1
Power of Attorney
Exhibit 5.1
May 8, 2006
Graco Inc.
88-11th
Avenue N.E.
Minneapolis, Minnesota 55413-1894
To Whom it
May Concern:
I am a
member of the bar of the State of Minnesota and Vice President, General Counsel and
Secretary of Graco Inc. (the "Company"). Reference is made to the
Registration Statement on Form S-8 that the Company intends to file with the Securities
and Exchange Commission pursuant to the Securities Act of 1933, as amended, for the
purpose of registering 4,000,000 shares of Common Stock, $1.00 par value, of the Company,
to be issued to employees, officers and non-employee directors of the Company pursuant to
the Graco Inc. Amended and Restated Stock Incentive Plan (2006) (the
"Plan").
I have
examined such documents and have reviewed such questions of law as I have considered
necessary and appropriate for the purposes of this opinion. I am of the opinion that the
shares of Common Stock to be issued upon exercise of stock options granted pursuant to the
Plan, will be legally issued, fully paid and nonassessable, provided (i) the value
received by the Company is at least equal to the par value of the shares of Common Stock
and (ii) the Registration Statement shall have become effective under the Securities Act
of 1933, as amended.
I
consent to the use of this opinion as an exhibit to the Registration Statement.
Very truly
yours,
/s/Karen P.
Gallivan
Karen P.
Gallivan
Vice President, General Counsel
and
Secretary
Exhibit
23.1
CONSENT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
We
consent to the incorporation by reference in this Registration Statement on Form S-8 of
our reports dated February 24, 2006, relating to the financial statements and financial
statement schedule of Graco Inc., and management's report on the effectiveness of
internal control over financial reporting appearing in the Annual Report on Form 10-K of
Graco Inc. for the year ended December 30, 2005.
/s/Deloitte
& Touche LLP
Deloitte
& Touche LLP
Minneapolis, Minnesota
May 11, 2006
Exhibit
24.1
POWER OF ATTORNEY
KNOW ALL
PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby
constitutes and appoints David A. Roberts, his or her true and lawful attorney-in-fact and
agent with full powers of substitution and resubstitution, for him or her and in his or
her name, place and stead, in any and all capacities, to execute one or more Registration Statements
on Form S-8 to be filed under the Securities Act of 1933 for the registration of (i)
4,000,000 shares of Common Stock of Graco Inc. under the Graco Inc. Amended and Restated
Stock Incentive Plan (2006) and (ii) 2,000,000 shares of Common Stock of Graco Inc. under
the Graco Inc. 2006 Employee Stock Purchase Plan, and any and all post-effective
amendments thereto, and to file such registration statements, with all exhibits thereto,
and other documents in connection therewith, with the Securities and Exchange Commission,
granting unto said attorney-in-fact and agent, full power and authority to do and perform
to all intents and purposes as he or she might or could do in person, hereby ratifying and
confirming all that said attorney-in-fact and agent, or his substitute or substitutes, may
lawfully do or cause to be done by virtue hereof.
In
witness whereof, this Power of Attorney has been signed by the following persons on the
date indicated.
Date
/s/Lee R. Mitau
April 21, 2006
Lee R. Mitau
/s/Robert G. Bohn
April 21, 2006
Robert G. Bohn
/s/William J. Carroll
April 21, 2006
William J. Carroll
/s/Jack W. Eugster
April 21, 2006
Jack W. Eugster
/s/J. Kevin Gilligan
April 21, 2006
J. Kevin Gilligan
/s/James H. Moar
April 21, 2006
James H. Moar
/s/Martha A.M. Morfitt
April 21, 2006
Martha A.M. Morfitt
/s/Mark H. Rauenhorst
April 21, 2006
Mark H. Rauenhorst
/s/David A. Roberts
April 21, 2006
David A. Roberts
/s/William G. Van Dyke
April 21, 2006
William G. Van Dyke
/s/R. William Van Sant
April 21, 2006
R. William Van Sant