Document:

STOCK OPTION AGREEMENT
                                    (NON-ISO)

      THIS  AGREEMENT,  made this 23rd day of  February,  2001,  by and  between
Graco Inc., a Minnesota corporation (the "Company") and
                                                        ------------------------
(the "Employee").

      WITNESSETH THAT:

      WHEREAS, the Company pursuant to its Long-Term Stock Incentive Plan wishes
to grant this stock option to Employee;

      NOW  THEREFORE,  in  consideration  of the  premises  and  of  the  mutual
covenants herein contained, the parties hereto hereby agree as follows:

      1.  Grant of Option
          ---------------

          The  Company   hereby  grants  to  Employee,   the  right  and  option
          (hereinafter  called the  "option")  to purchase all or any part of an
          aggregate of                  shares of Common  Stock of the  Company,
                      ------------------
          par value $1.00 per share, at the price of $          per share on the
                                                      ----------
          terms and conditions set forth herein.

      2.  Duration and Exercisability
          ---------------------------

          A.  This option may not be exercised by Employee  until the expiration
              of one (1) year from the date of grant,  and this option  shall in
              all  events  terminate  ten (10)  years  after  the date of grant.
              During  the first year from the date of grant of this  option,  no
              portion of this option may be  exercised.  Thereafter  this option
              shall become exercisable in four cumulative installments of 25% as
              follows:
                                                   Total Portion of Option
                              Date                  Which is Exercisable
                              ----                  --------------------
                 One Year after Date of Grant                25%
                 Two Years after Date of Grant               50%
                 Three Years after Date of Grant             75%
                 Four Years after Date of Grant             100%

              In the event that  Employee  does not purchase in any one year the
              full  number of shares of  Common  Stock of the  Company  to which
              he/she is entitled under this option,  he/she may,  subject to the
              terms and conditions of Section 3 hereof,  purchase such shares of
              Common  Stock  in any  subsequent  year  during  the  term of this
              option.

          B.  During  the  lifetime  of  the  Employee,   the  option  shall  be
              exercisable  only  by  him/her  and  shall  not be  assignable  or
              transferable  by  him/her  otherwise  than by will or the  laws of
              descent and distribution.

      3.  Effect of Termination of Employment
          -----------------------------------

          A.   In the event that  Employee  shall  cease to be  employed  by the
               Company or its  subsidiaries  for any reason  other than  his/her
               gross and willful  misconduct,  death,  retirement (as defined in
               Section 3. D. below),  or disability (as defined in Section 3. D.
               below),  Employee  shall have the right to exercise the option at
               any time within one month after such termination of employment to
               the extent of the full  number of shares  he/she was  entitled to
               purchase under the option on the date of termination,  subject to
               the  condition  that no  option  shall be  exercisable  after the
               expiration of the term of the option.

          B.   In the event that  Employee  shall  cease to be  employed  by the
               Company  or its  subsidiaries  by  reason  of  his/her  gross and
               willful  misconduct  during  the  course of  his/her  employment,
               including  but not limited to wrongful  appropriation  of Company
               funds  or  the  commission  of a  felony,  the  option  shall  be
               terminated as of the date of the misconduct.

          C.   If the Employee shall die while in the employ of the Company or a
               subsidiary  or within one month after  termination  of employment
               for any reason other than gross and willful  misconduct and shall
               not have fully exercised the option,  all remaining  shares shall
               become  immediately  exercisable and such option may be exercised
               at any time  within  twelve  months  after  his/her  death by the
               executors or  administrators  of the Employee or by any person or
               persons  to  whom  the  option  is  transferred  by  will  or the
               applicable laws of descent and  distribution,  and subject to the
               condition  that  no  option  shall  be   exercisable   after  the
               expiration of the term of the option.

          D.   If the Employee's  termination of employment is due to retirement
               (either  after  attaining  age 55 with 10  years of  service,  or
               attaining age 65), or due to disability within the meaning of the
               provisions of the Graco Long-Term  Disability Plan subject to the
               conditions  that  no  option  shall  be  exercisable   after  the
               expiration of the terms of the option, all remaining shares shall
               become immediately exercisable and the option may be exercised by
               the  Employee  at any time within  three years of the  Employee's
               retirement,  subject  to the  condition  that no option  shall be
               exercisable  after the  expiration of the term of the option.  In
               the  event of the death of the  Employee  within  the  three-year
               period after retirement,  the option may be exercised at any time
               within  twelve  months after  his/her  death by the  executors or
               administrators  of the  Employee  or by any  person or persons to
               whom the option is transferred by will or the applicable  laws of
               descent  and  distribution,  to the extent of the full  number of
               shares  he/she was  entitled to purchase  under the option on the
               date of death,  and subject to the condition that no option shall
               be exercisable after the expiration of the term of the option.

          E.   Notwithstanding  anything  to  the  contrary  contained  in  this
               Section  3,  if  the  Employee   chooses  to  terminate   his/her
               employment by retirement  (as defined in Section 3. D. above) and
               has not given the Company written notice,  by  correspondence  to
               his/her immediate  supervisor and the Chief Executive Officer, of
               said  intention  to retire not less than six (6) months  prior to
               the date of his/her  retirement,  then in such event for purposes
               of this Agreement said  termination of employment shall be deemed
               to  be  not  a  retirement  but  a  termination  subject  to  the
               provisions of Section 3. A. above, provided, however, that in the
               event  that  the  Chief  Executive   Officer,   in  his/her  sole
               discretion  and  judgement,   determines   that   termination  of
               employment by  retirement of the Employee  without six (6) months
               prior  written  notice is in the best  interests  of the Company,
               then such retirement shall be subject to Section 3. D. above.

      4.  Manner of Exercise
          ------------------

          A.   The option can be  exercised  only by  Employee  or other  proper
               party within the option period  delivering  written notice to the
               Company  at  its  principal  office  in  Minneapolis,  Minnesota,
               stating  the  number of  shares  as to which the  option is being
               exercised and,  except as provided in Section 4. C.,  accompanied
               by  payment-in-full of the option price for all shares designated
               in the notice.

          B.   The Employee  may, at Employee's  election,  pay the option price
               either by check (bank check,  certified check, or personal check)
               or by delivering to the Company for cancellation shares of Common
               Stock of the Company which have been held by the Employee for not
               less than six (6) months  with a fair  market  value equal to the
               option price.  For these  purposes,  the fair market value of the
               Company's  Common Stock shall be the closing  price of the Common
               Stock on the date of exercise on the New York Stock Exchange (the
               "NYSE") or on the principal national securities exchange on which
               such  shares are traded if the shares are not then  traded on the
               NYSE.  If there is not a quotation  available  for such day, then
               the  closing  price on the next  preceding  day for which  such a
               quotation  exists shall be determinative of fair market value. If
               the shares are not then  traded on an  exchange,  the fair market
               value shall be the average of the closing bid and asked prices of
               the Common  Stock as  reported  by the  National  Association  of
               Securities  Dealers  Automated  Quotation  System.  If the Common
               Stock is not then  traded on NASDAQ or on an  exchange,  then the
               fair  market  value  shall be  determined  in such  manner as the
               Company shall deem reasonable.

          C.   The Employee may, with the consent of the Company, pay the option
               price by arranging for the  immediate  sale of some or all of the
               shares issued upon exercise of the option by a securities  dealer
               and the  payment to the Company by the  securities  dealer of the
               option exercise price.

      5.  Payment of Withholding Taxes
          ----------------------------

          Upon exercise of any portion of this option, Employee shall pay to the
          Company an amount  sufficient to satisfy any federal,  state, or local
          withholding tax  requirements  which arise as a result of the exercise
          of the option or provide the Company with satisfactory indemnification
          for such payment.  If the Committee,  as defined in the Company's Long
          Term Stock Incentive  Plan, has in its discretion  determined that the
          Employee  may do so,  such  amount  may be  paid  by the  Employee  by
          delivering to the Company for  cancellation  shares of Common Stock of
          the Company  with a fair market  value equal to the minimum  amount of
          such  withholding  tax requirement by (i) electing to have the Company
          withhold  common shares  otherwise to be delivered  with a fair market
          value equal to the amount of such tax obligation,  or (ii) electing to
          surrender to the Company  previously  owned common  shares with a fair
          market value equal to the amount of such minimum tax obligation.

      6.  Change of Control
          -----------------

          A.  Notwithstanding  Section  2(a)  hereof,  the entire  option  shall
              become  immediately  and fully  exercisable on the day following a
              "Change of  Control"  and shall  remain  fully  exercisable  until
              either  exercised or expiring by its terms.  A "Change of Control"
              means:

              (1)  acquisition by any individual,  entity,  or group (within the
                   meaning of Section  13(d)(3) or 14(d)(2) of the  Exchange Act
                   of 1934), (a "Person"),  of beneficial  ownership (within the
                   meaning  of Rule 13d-3  under the 1934 Act) which  results in
                   the  beneficial  ownership  by such  Person of 25% or more of
                   either

                   (a)  the then outstanding shares of Common Stock of the
                        Company (the "Outstanding Company Common Stock") or

                   (b)  the combined voting power of the then outstanding voting
                        securities of the Company  entitled to vote generally in
                        the  election of  directors  (the  "Outstanding  Company
                        Voting Securities");

                    provided,  however, that the following acquisitions will not
                    result in a Change of Control:

                        (i)   an acquisition directly from the Company,
                        (ii)  an acquisition by the Company,
                        (iii) an acquisition  by an  employee benefit  plan  (or
                              related  trust)  sponsored  or  maintained  by the
                              Company  or  any  corporation  controlled  by  the
                              Company,
                        (iv)  an acquisition by any Person who is deemed to have
                              beneficial ownership  of the  Company common stock
                              or other  Company voting  securities  owned by the
                              Trust Under  the  Will of Clarissa L. Gray ("Trust
                              Person"), provided  that such acquisition does not
                              result in the beneficial ownership  by such Person
                              of 32% or more  of either the Outstanding  Company
                              Common  Stock or  the Outstanding  Company  Voting
                              Securities, and provided further that for purposes
                              of this  Section 6, a  Trust Person  shall  not be
                              deemed to have beneficial ownership of the Company
                              common stock or  other  Company voting  securities
                              owned  by  The Graco Foundation  or  any  employee
                              benefit  plan of  the Company, including,  without
                              limitations, the  Graco Employee  Retirement  Plan
                              and the Graco Employee Stock Ownership Plan,
                        (v)   an acquisition by  the Employee or  any group that
                              includes the Employee, or
                        (vi)  an acquisition  by any  corporation  pursuant to a
                              transaction  that complies  with clauses (a), (b),
                              and (c) of subsection (4) below; and

                   provided,  further, that if any Person's beneficial ownership
                   of  the  Outstanding  Company  Common  Stock  or  Outstanding
                   Company  Voting  Securities  is 25% or more as a result  of a
                   transaction  described in clause (i) or (ii) above,  and such
                   Person   subsequently   acquires   beneficial   ownership  of
                   additional  Outstanding  Company  Common Stock or Outstanding
                   Company Voting  Securities as a result of a transaction other
                   than  that  described  in  clause  (i) or  (ii)  above,  such
                   subsequent acquisition will be treated as an acquisition that
                   causes  such  Person  to own 25% or  more of the  Outstanding
                   Company Common Stock or Outstanding Company Voting Securities
                   and be deemed a Change of Control; and provided further, that
                   in the  event any  acquisition  or other  transaction  occurs
                   which results in the  beneficial  ownership of 32% or more of
                   either  the   Outstanding   Company   Common   Stock  or  the
                   Outstanding  Company  Voting  Securities by any Trust Person,
                   the  Incumbent  Board  may  by  majority  vote  increase  the
                   threshold  beneficial  ownership  percentage  to a percentage
                   above 32% for any Trust Person; or

              (2)  Individuals who, as of the date hereof,  constitute the Board
                   of Directors of the Company (the "Incumbent Board") cease for
                   any reason to  constitute  at least a majority of said Board;
                   provided,  however,  that any individual  becoming a director
                   subsequent to the date hereof whose  election,  or nomination
                   for election by the Company's shareholders, was approved by a
                   vote of at least a majority of the directors then  comprising
                   the  Incumbent  Board  will  be  considered  as  though  such
                   individual  were  a  member  of  the  Incumbent   Board,  but
                   excluding,  for  this  purpose,  any  such  individual  whose
                   initial  membership  on the  Board  occurs  as a result of an
                   actual or  threatened  election  contest  with respect to the
                   election  or  removal  of   directors   or  other  actual  or
                   threatened  solicitation  of  proxies  or  consents  by or on
                   behalf of a Person other than the Board; or

              (3)  The  commencement  or  announcement of an intention to make a
                   tender offer or exchange  offer,  the  consummation  of which
                   would result in the  beneficial  ownership by a Person of 25%
                   or  more  of  the   Outstanding   Company   Common  Stock  or
                   Outstanding Company Voting Securities; or

              (4)  The  approval  by  the  shareholders  of  the  Company  of  a
                   reorganization,  merger, consolidation, or statutory exchange
                   of Outstanding  Company  Common Stock or Outstanding  Company
                   Voting  Securities  or sale or  other  disposition  of all or
                   substantially  all of the  assets of the  Company  ("Business
                   Combination")   or,   if   consummation   of  such   Business
                   Combination  is  subject,  at the  time of such  approval  by
                   stockholders,   to  the   consent   of  any   government   or
                   governmental  agency,  the obtaining of such consent  (either
                   explicitly or implicitly by consummation) excluding, however,
                   such a Business combination pursuant to which

                   (a)  all or substantially all of the individuals and entities
                        who  were  the  beneficial  owners  of  the  Outstanding
                        Company  Common  Stock  or  Outstanding  Company  Voting
                        Securities    immediately   prior   to   such   Business
                        Combination  beneficially  own,  directly or indirectly,
                        more  than 80% of,  respectively,  the then  outstanding
                        shares of common stock and the combined  voting power of
                        the then outstanding voting securities  entitled to vote
                        generally in the election of directors,  as the case may
                        be, of the  corporation  resulting  from  such  Business
                        Combination    (including,    without   limitation,    a
                        corporation  that as a result of such  transaction  owns
                        the Company or all or substantially all of the Company's
                        assets   either   directly   or  through   one  or  more
                        subsidiaries) in  substantially  the same proportions as
                        their  ownership,  immediately  prior  to such  Business
                        Combination of the  Outstanding  Company Common Stock or
                        Outstanding Company Voting Securities,

                   (b)  no  Person  [excluding  any  employee  benefit  plan (or
                        related  trust)  of  the  Company  or  such  corporation
                        resulting from such Business  Combination]  beneficially
                        owns,  directly or  indirectly,  25% or more of the then
                        outstanding  shares of common  stock of the  corporation
                        resulting from such Business Combination or the combined
                        voting power of the then outstanding  voting  securities
                        of such  corporation  except  to the  extent  that  such
                        ownership existed prior to the Business Combination, and

                   (c)  at  least a  majority  of the  members  of the  board of
                        directors  of  the   corporation   resulting  from  such
                        Business Combination were members of the Incumbent Board
                        at the time of the  execution of the initial  Agreement,
                        or of  the  action  of the  Board,  providing  for  such
                        Business Combination; or

              (5)  approval by the stockholders of the Company of a complete
                   liquidation or dissolution of the Company.

          B.  A Change of Control shall not be deemed to have occurred with
              respect to an Employee if:

              (1)  the acquisition of the 25% or greater interest referred to in
                   subparagraph A.(1) of this Section 6 is by a group, acting in
                   concert, that includes the Employee or

              (2)  if at  least  25% of the  then  outstanding  common  stock or
                   combined voting power of the then outstanding  Company voting
                   securities  (or voting  equity  interests)  of the  surviving
                   corporation or of any corporation (or other entity) acquiring
                   all or  substantially  all of the assets of the Company shall
                   be beneficially  owned,  directly or indirectly,  immediately
                   after  a  reorganization,  merger,  consolidation,  statutory
                   share  exchange,   disposition  of  assets,   liquidation  or
                   dissolution  referred  to in  subsections  (4) or (5) of this
                   section by a group,  acting in concert,  that  includes  that
                   Employee.

      7.  Adjustments
          -----------

          If there shall be any change in the number or  character of the Common
          Stock of the Company  through merger,  consolidation,  reorganization,
          recapitalization,  dividend in the form of stock (of whatever amount),
          stock split or other change in the corporate structure of the Company,
          and all or any portion of the option shall then be unexercised and not
          yet expired,  appropriate  adjustments in the outstanding option shall
          be made by the Company, in order to prevent dilution or enlargement of
          option rights.  Such  adjustments  shall include,  where  appropriate,
          changes  in the  number of  shares  of Common  Stock and the price per
          share subject to the outstanding option.

      8.  Miscellaneous
          -------------

          A.  This  option  is  issued  pursuant  to  the  Company's   Long-Term
              Stock Incentive  Plan and is  subject to its terms.  A copy of the
              Plan has been  given to the  Employee.  The  terms of the Plan are
              also  available  for  inspection  during  business  hours  at  the
              principal offices of the Company.

          B.  This Agreement shall not confer on Employee any right with respect
              to  continuance  of  employment  by  the  Company  or  any  of its
              subsidiaries,  nor will it  interfere in any way with the right of
              the Company to terminate  such  employment  at any time.  Employee
              shall have none of the  rights of a  shareholder  with  respect to
              shares  subject to this option  until such shares  shall have been
              issued to him/her upon exercise of this option.

          C.  The  Company  shall at all  times  during  the term of the  option
              reserve  and keep  available  such  number  of  shares  as will be
              sufficient to satisfy the requirements of this Agreement.

      IN WITNESS  WHEREOF,  the parties  hereto have caused this Agreement to be
executed on the day and year first above written.

                                         GRACO INC.

                                         By Its Chief Executive Officer

                                         ---------------------------------------

                                         ---------------------------------------
                                         EmployeeEXECUTION COPY                                                  Exhibit 10.9

                       FOURTH AMENDMENT TO
                   RECEIVABLES PURCHASE AGREEMENT

THIS FOURTH AMENDMENT (this "Amendment") dated as of November 8,
2000 is entered into among SEQUA RECEIVABLES CORP., a New York
corporation (the "Seller"), SEQUA CORPORATION, a Delaware
corporation (the "Servicer"), LIBERTY STREET FUNDING CORP., a
Delaware corporation (the "Issuer"), and THE BANK OF NOVA SCOTIA,
a Canadian chartered bank acting through its New York Agency
("BNS"), as administrator(in such capacity, together with its
successors and assigns in such capacity, the "Administrator").

                                           R E C I T A L S
                                           ---------------

        .      The Seller, the Servicer, the Issuer and the
Administrator are parties to that certain Receivables Purchase
Agreement, dated as of November 13, 1998, as amended by the First
Amendment, dated as of May 28, 1999, by the Second Amendment, dated
as of July 12, 1999, and by the Third Amendment, dated as of May
15, 2000 (the "Agreement").

        .      The Seller, the Servicer, the Issuer and the
Administrator desire to amend the Agreement as hereinafter set
forth.

        NOW THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows:

        1.     Certain Defined Terms.  Capitalized terms which are used
               ---------------------
herein without definition and that are defined in the Agreement
shall have the same meanings herein as in the Agreement.

        2.     Amendments to Agreement.   Subsection (g) of Exhibit V to
               -----------------------   --------------    --------
the Agreement is hereby amended and restated in its entirety as
follows:

               (g) (i) the (A) Default Ratio shall exceed 7% or (B) the
        Delinquency Ratio shall exceed 10% or (ii) the average for
        three consecutive calendar months of: (A) the Default Ratio
        shall exceed 6% or (B) the Delinquency Ratio shall exceed 8%.

<PAGE>
        3.     Representations and Warranties.  Each of the Seller and
               ------------------------------
the Servicer hereby represents and warrants to the Administrator
and the Issuer as follows:

               ()      Representations and Warranties.  The representations
                       ------------------------------
        and warranties of such Person contained in Exhibit III to the
        Agreement are true and correct as of the date hereof (unless
        stated to relate solely to an earlier date, in which case such
        representations and warranties were true and correct as of
        such earlier date).

               ()      Enforceability.  The execution and delivery by such
                       --------------
        Person of this Amendment, and the performance of its
        obligations under this Amendment and the Agreement, as amended
        hereby, are within its corporate powers and have been duly
        authorized by all necessary corporate action on its part.
        This Amendment and the Agreement, as amended hereby, are its
        valid and legally binding obligations, enforceable in
        accordance with its terms.

               ()      Termination Event.  No Termination Event or
        Unmatured Termination Event has occurred and is continuing.

        4.     Effectiveness.  This Amendment shall become effective as
               -------------
of the date hereof upon receipt by the Administrator of the
following, each duly executed and dated as of the date hereof (or
such other date satisfactory to the Administrator), in form and
substance satisfactory to the Administrator:

               (a) counterparts of this Amendment (whether by facsimile
        or otherwise) executed by each of the parties hereto;

               (b) a written statement from Moody's and Standard &
        Poor's that this Amendment will not result in a downgrade or
        withdrawal of the rating of the Notes; and

               (c) such other documents and instruments as the
        Administrator may reasonably request.

        5.     Effect of Amendment.  Except as expressly amended and
               -------------------
modified by this Amendment, all provisions of the Agreement shall
remain in full force and effect.  After this Amendment becomes
effective, all references in the Agreement (or in any other
Transaction Document) to "the Receivables Purchase Agreement,"
"this Agreement," "hereof," "herein" or words of similar effect, in
each case referring to the Agreement, shall be deemed to be
references to the Agreement as amended by this Amendment.  This
Amendment shall not be deemed to expressly or impliedly waive,
amend or supplement any provision of the Agreement other than as
set forth herein.

<PAGE>
        6.     Counterparts.  This Amendment may be executed in any
               ------------
number of counterparts and by different parties on separate
counterparts, and each counterpart shall be deemed to be an
original, and all such counterparts shall together constitute but
one and the same instrument.

        7.     Governing Law.  This Amendment shall be governed by, and
               -------------
construed in accordance with, the internal laws of the State of New
York without reference to conflict of laws principles.

        8.     Section Headings.  The various headings of this Amendment
               ----------------
are inserted for convenience only and shall not affect the meaning
or interpretation of this amendment or the Agreement or any
provision hereof or thereof.

<PAGE>
        IN WITNESS WHEREOF, the parties have executed this Amendment
as of the date first above written.

                                              SEQUA RECEIVABLES CORP.

                                              By:
                                                   Name:
                                                   Title:

                                              SEQUA CORPORATION

                                              By
                                                   Name:
                                                   Title:

                                              LIBERTY STREET FUNDING CORP.

                                              By:
                                                   Name:
                                                   Title:

                                              THE BANK OF NOVA SCOTIA, as
                                              Administrator

                                              By:
                                                   Name:
                                                   Title:

<PAGE>
                           PURCHASERS:

                                      Consented and Agreed:
                                      THE BANK OF NOVA SCOTIA, as a
                                      Purchaser under the Liquidity
                                      Agreement

                                      By:
                                      Name:
                                      Title:

                                      Consented and Agreed:
                                      LLOYDS TSB BANK PLC, as a
                                      Purchaser under the Liquidity
                                      Agreement

                                      By:
                                      Name:
                                      Title:

                                      By:
                                      Name:
                                      Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}]]