GRACO INC
EXHIBIT 10.9, CEO AWARD PROGRAM
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<DESCRIPTION>EXHIBIT 10.9, CEO AWARD PROGRAM
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<TITLE>Exhibit 10.9, CEO Award Program</TITLE>
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<P ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Exhibit 10.9 </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>CEO Award Program </FONT></P>

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<P ALIGN=JUSTIFY><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>The CEO Award Program is
a discretionary bonus program of Graco Inc. (the &#147;Company&#148;). This program
authorizes the Chief Executive Officer of the Company to make awards that recognize
outstanding contributions of those Company employees who are eligible for the award of
bonuses under the Corporate and Business Unit Annual Bonus Plan. Awards may be made in
such amounts and to such number of employees as the CEO may determine. The awards may be
paid in either cash or common shares of the Company, but the aggregate value of all awards
is not to exceed $100,000 in any fiscal year. </FONT></P>
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