<PAGE>   1
                                                                   EXHIBIT 10(m)


                                THE TORO COMPANY
                            2000 DIRECTORS STOCK PLAN




1.    PURPOSE OF THE PLAN. The purpose of The Toro Company 2000 Directors Stock
      Plan ("Plan") is to enable The Toro Company (the "Company") to attract and
      retain experienced and knowledgeable directors to serve on the Board of
      Directors of the Company or its subsidiaries, and to further align their
      interests with those of the stockholders of the Company by providing for
      or increasing their stock ownership interests in the Company. It is
      intended that the Plan be interpreted so that transactions under the Plan
      are exempt under Rule 16b-3 under the Securities Exchange Act of 1934, as
      amended (the "Exchange Act"), to the extent applicable.

2.    ELIGIBILITY. All members of the Company's Board of Directors who are not
      current employees of the Company or any of its subsidiaries ("Nonemployee
      Directors") are eligible to participate in the Plan.

3.    PLAN AWARDS.

      a.    DIRECTORS SHARES. To carry out the purposes of the Plan, the Company
            shall issue shares ("Directors Shares") of the Company's Common
            Stock, $1.00 par value and related preferred share purchase rights
            (subject to adjustment as provided in Section 5 hereof) (the "Common
            Stock"), to each person who is then a Nonemployee Director, on the
            first day of each fiscal year in an amount equal to $10,000 divided
            by the fair market value of one share of Common Stock rounded down
            to the greatest number of whole shares. Fair market value for this
            purpose shall be the average of the 4 p.m. Eastern Time closing
            prices of the Common Stock as reported by the New York Stock
            Exchange for each of the trading days in the three calendar months
            immediately prior to the date of issue of the Directors Shares.

      b.    DIRECTORS OPTIONS.

                  i. Annual Grant. Subject to the terms and conditions of this
            Section 3.b., the Company shall grant a nonqualified option
            ("Directors Option") to purchase 2,000 shares of Common Stock, to
            each person who is then a Nonemployee Director, on the first day of
            each fiscal year, except that in Fiscal 2001, the Company shall make
            a one time grant of 1,000 shares to each person serving as a
            Non-Employee Director on the date stockholders first approve the
            Plan. Directors Options will be granted at an exercise price per
            share equal to the fair market value of one share of Common Stock on
            the date of grant, but not less than par value. The fair market
            value for this purpose shall be the 4 p.m. Eastern Time closing
            price of the Common Stock as reported by the New York Stock





<PAGE>   2


            Exchange for the first business day of the Company's fiscal year
            with respect to which the grant is made, except for the one time
            grant, in which case it shall be on the date of grant.

                  ii. VESTING, TRANSFERABILITY AND EXERCISABILITY.

                        (a) VESTING. Directors Options shall be exercisable in
                  whole or in part commencing six months following the date of
                  grant and shall remain exercisable for a term of five years
                  after the date of grant.

                        (b) NO TRANSFER. No Directors Option shall be assigned
                  or transferred, except by will or the laws of descent and
                  distribution. An option so transferred may be exercised after
                  the death of the individual to whom it is granted only by such
                  individual's legal representatives, heirs or legatees, not
                  later than the earlier of the date the option expires or one
                  year after the date of death of such individual, and only with
                  respect to an option exercisable at the time of death.

                        (c) EXERCISE. During the lifetime of a Nonemployee
                  Director, options held by such individual may be exercised
                  only by the Nonemployee Director and only while serving as a
                  member of the Board of Directors of the Company and only if
                  the Nonemployee Director has been continuously so serving
                  since the date such options were granted, except as follows:

                              1. Disability. In the event of disability of a
                        Nonemployee Director, options may be exercised by such
                        individual not later than the earlier of the date the
                        option expires or one year after the date such service
                        as a Nonemployee Director ceases by reason of
                        disability, but only with respect to an option
                        exercisable at the time such service ceases.

                              2. Termination After Five Years of Service. In the
                        event of termination after service as a Nonemployee
                        Director for five years or longer, options may be
                        exercised by such individual not later than the earlier
                        of one year after the date of termination of service as
                        a Nonemployee Director or the date the option expires.

                        (d) METHODS OF EXERCISE AND PAYMENT OF EXERCISE PRICE.
                  Subject to the terms and conditions of the Plan and the terms
                  and conditions of the option agreement, an option may be
                  exercised in whole at any time or in part from time to time,
                  by delivery to the Company at its principal office of a
                  written notice of exercise specifying the number of shares
                  with respect to which the



                                       2

<PAGE>   3


                  option is being exercised, accompanied by payment in full of
                  the exercise price for shares to be purchased at that time.
                  Payment may be made (i) in cash, (ii) by tendering (either
                  actually or by attestation) shares of Common Stock already
                  owned for at least six months (or shorter period necessary to
                  avoid a charge to the Company's earnings for financial
                  statement purposes) valued at the fair market value of the
                  Common Stock on the date of exercise, (iii) in a combination
                  of cash and Common Stock or (iv) by delivery of a notice of
                  exercise of options, together with irrevocable instructions,
                  approved in advance by proper officers of the Company, (A) to
                  a brokerage firm designated by the Company, to deliver
                  promptly to the Company the aggregate amount of sale or loan
                  proceeds to pay the exercise price and any related tax
                  withholding obligations and (B) to the Company, to deliver
                  certificates for such purchased shares directly to such
                  brokerage firm, all in accordance with regulations of the
                  Federal Reserve Board.

                  No shares of Common Stock shall be issued until full payment
                  has been made.

      c.    SHARE PRORATION. If, on any date on which Directors Shares are to be
            issued pursuant to Section 3.a. or Directors Options are to be
            granted pursuant to Section 3.b., the number of shares of Common
            Stock is insufficient for the issuance of the entire number of
            shares to be issued or for the grant of the entire number of
            options, as calculated in accordance with Section 3.a. or Section
            3.b., respectively, then the number of shares to be issued to each
            Nonemployee Director entitled to receive Directors Shares or
            Directors Options on such date shall be such Nonemployee Director's
            proportionate share of such available number of shares or options
            (rounded down to the greatest number of whole shares), provided that
            if a sufficient number of shares of Common Stock is available to
            issue all of the Directors Shares, then the entire number of
            Directors Shares shall be issued first and the number of shares to
            be subjected to options shall be prorated in accordance with this
            section.

4.    SHARES IN LIEU OF FEES. A Nonemployee Director shall have the right to
      elect to receive shares of Common Stock in lieu of annual retainer and
      meeting fees otherwise payable in cash. The election to receive Common
      Stock shall be made prior to the first day of the calendar year in which
      the fees are to be earned. Fees that are earned shall be reserved through
      the year and shares shall be issued in December of that year. The number
      of shares to be issued shall be determined by dividing the amount of the
      cash that otherwise would have been paid by the 4 p.m. Eastern Time
      closing price of one share of Common Stock as reported by the New York
      Stock Exchange for the date that the shares are issued.

5.    STOCK SUBJECT TO PLAN. Subject to adjustment as provided in this paragraph
      and subject to increase by amendment of the Plan, the total number of
      shares of Common Stock that is



                                       3
<PAGE>   4


      reserved and available for issuance in connection with the Plan shall be
      120,000 shares. If any Directors Option granted hereunder expires
      unexercised or terminates, the shares of Common Stock reserved for
      issuance pursuant to such option shall, to the extent of any such
      termination or to the extent the shares covered by an option are not
      issued or used, again be available for option grants under the Plan. Any
      shares issued by the Company in connection with the assumption or
      substitution of outstanding option grants from any acquired corporation
      shall not reduce the shares available for stock awards or option grants
      under the Plan. In the event of a corporate transaction involving the
      Company, the Common Stock or the Company's corporate or capital structure,
      including but not limited to any stock dividend, stock split,
      extraordinary cash dividend, recapitalization, reorganization, merger,
      consolidation, reclassification, split-up, spin-off, combination or
      exchange of shares, or a sale of the Company or of all or part of its
      assets or any distribution to stockholders other than a normal cash
      dividend, the Committee shall make such proportional adjustments as are
      necessary to preserve the benefits or potential benefits of the Directors
      Shares and Directors Options. Action by the Committee may include all or
      any of adjustment in (a) the maximum number and kind of securities subject
      to the Plan as set forth in this paragraph; (b) the maximum number and
      kind of securities that may be made subject to Directors Options and the
      determination of the number or kind of Directors Shares; (c) the number
      and kind of securities subject to any outstanding Directors Option; and
      (d) any other adjustments that the Committee determines to be equitable.

6.    CHANGE OF CONTROL. In the event of a Change of Control of the Company as
      hereinafter defined, all options shall fully vest, and be exercisable in
      their entirety immediately, and notwithstanding any other provisions of
      the Plan, shall continue to be exercisable for three years following the
      Change of Control, but not later than five years after the date of grant.

      Change of Control means:

      a.    The acquisition by any individual, entity or group (within the
            meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a
            "Person") of beneficial ownership (within the meaning of Rule 13d-3
            under the Exchange Act) of 15% or more of either (i) the
            then-outstanding shares of Common Stock of the Company (the
            "Outstanding Company Common Stock") or (ii) 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
            for purposes of this subsection a., the following acquisitions shall
            not constitute a Change of Control: (i) any acquisition directly
            from the Company, (ii) any acquisition by the Company, (iii) any
            acquisition by any employee benefit plan (or related trust)
            sponsored or maintained by the Company or any corporation controlled
            by the Company, or (iv) any acquisition by any corporation pursuant
            to a transaction that complies with clauses (i), (ii) and (iii) of
            subsection c. of this Section 6; or

      b.    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 the Board; provided,
            however, that any individual becoming a director subsequent to the
            date hereof whose election, or nomination for election by the




                                       4
<PAGE>   5


            Company's stockholders, was approved by a vote of at least a
            majority of the directors then comprising the Incumbent Board shall
            be considered as though such individual were a member of the
            Incumbent Board, but excluding, for this purpose, any such
            individual whose initial assumption of office 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

      c.    Consummation of a reorganization, merger or consolidation of the
            Company or sale or other disposition of all or substantially all of
            the assets of the Company or the acquisition by the Company of
            assets or stock of another entity (a "Business Combination"), in
            each case, unless, following such Business Combination, (i) all or
            substantially all of the individuals and entities who were the
            beneficial owners, respectively, of the Outstanding Company Common
            Stock and Outstanding Company Voting Securities immediately prior to
            such Business Combination beneficially own, directly or indirectly,
            more than 50% 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 which 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 and Outstanding
            Company Voting Securities, as the case may be, (ii) no Person
            (excluding any corporation resulting from such Business Combination
            or any employee benefit plan (or related trust) of the Company or
            such corporation resulting from such Business Combination)
            beneficially owns, directly or indirectly, 15% or more of,
            respectively, 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 (iii) 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

      d.    Approval by the stockholders of the Company of a complete
            liquidation or dissolution of the Company.

7.    ADMINISTRATION OF THE PLAN. The Plan shall be administered by a committee
      composed of those members of the Board of Directors of the Company who are
      also employees of the Company (the "Committee"). The Committee shall have
      the authority to carry out all provisions of the Plan; provided, however,
      that it shall have no discretion to determine which Nonemployee Directors
      may receive Directors Shares or Directors Options or to



                                       5
<PAGE>   6


      set the value of such Directors Shares or Directors Options, other than
      to make the calculations required by Section 3.a., Section 3.b. and
      Section 5.

8.    TAX WITHHOLDING. The Company shall have the right to deduct from any
      settlement made under the Plan, including the exercise of an option or the
      sale of shares of Common Stock, any federal, state or local taxes of any
      kind required by law to be withheld with respect to such payments or to
      require the option holder to pay the amount of any such taxes or to take
      such other action as may be necessary in the opinion of the Company to
      satisfy all obligations for the payment of such taxes. If Common Stock is
      withheld or surrendered to satisfy tax withholding, such stock shall be
      valued at its fair market value as of the date such Common Stock is
      withheld or surrendered. The Company may also deduct from any such
      settlement any other amounts due the Company by the option holder.

9.    EFFECTIVE DATE AND TERM OF PLAN. The effective date of the Plan shall be
      March 13, 2001, subject to approval by stockholders. The Plan shall be
      perpetual, unless sooner terminated by action of the Board of Directors.

10.   AMENDMENT. The Board may amend, suspend or terminate the Plan at any time,
      with or without advance notice to option holders.The effective date of any
      amendment to the Plan shall be the date of its adoption by the Board of
      Directors. No amendment of the Plan shall adversely affect in a material
      manner any right of any option holder with respect to any option
      theretofore granted without such option holder's written consent.

11.   GOVERNING LAW. The Plan, options and awards granted under the Plan and
      agreements entered into under the Plan shall be construed, administered
      and governed in all respects under and by the applicable laws of the State
      of Delaware, excluding any conflicts or choice of law rule or principle
      that might otherwise refer construction or interpretation of the Plan or
      an option or an award or agreement to the substantive law of another
      jurisdiction.




                                       6