Document:

EXHIBIT 10(o)-1

 

TCF FINANCIAL CORPORATION

2007 MANAGEMENT INCENTIVE PLAN —
LEASING EXECUTIVE

 

1.             Eligibility
- The Participant shall be given a copy of this 2007 Management Incentive Plan
— Leasing Executive (the “Plan”) and required to sign an acknowledgment of its
terms. The participants in the Plan are those approved by the
Compensation/Nominating/Corporate Governance Committee (the “Committee”).

 

2.             All participants
will be initially evaluated by the Chief Executive Officer of TCF Financial
(the “Chairman”) who will forward all recommendations to the Committee for
approval. The Committee evaluates the performance of the Chairman. The
Committee will consider the earnings performance relative to the goals
[approved by the Compensation Committee] on Exhibit and shall also evaluate all
other matters it deems appropriate in its sole discretion, subject to limits
imposed on such discretion under the Performance-Based Plan. Evaluations will
be performed pursuant to the terms of the TCF Performance-Based Compensation
Policy for Covered Executive Officers (the “Performance-Based Plan”) in the
case of Covered Executive Officers (as defined in that Plan).

 

3.             The criteria for
awards (subject to paragraph 4) is as follows: The amount of incentive payable
to a participant shall be determined by the achievement of earnings financial
goals on Exhibit A attached. The bonus percentage shall be calculated, in the
case of earnings achievement which falls between goals, by interpolation as
follows: The amount by which the earnings achievement exceeds the goal shall be
divided by the amount between the earnings goal exceeded and the next earnings
goal. The result shall be stated in the form of a percentage which shall be
multiplied by the total bonus percentage points between earnings goals. The
result shall be added to the bonus percentage corresponding to the earnings
goal that was exceeded. The maximum bonus shall be 200%, even if results are
achieved beyond the maximum goal.

 

4.             The Plan is
intended to qualify as performance-based compensation under Section 162(m) of
the Internal Revenue Code and all interpretations, actions, and approvals shall
be consistent with the requirements of such Section 162(m). The Committee may
in its discretion, reduce, defer or eliminate the amount of the incentive
determined under paragraph 3 of this Agreement for a Covered Executive Officer
in the Performance-Based Plan. In addition, for participants who are not
subject to the Performance-Based Plan, the Committee may in its discretion
increase the amount of the incentive calculated under paragraph 3 of this
Agreement. The Committee has authority to make interpretations under this Plan
and to approve the calculations under Paragraph 3. Incentive compensation will
be paid in cash as soon as possible following approval of awards by the
Compensation/Nominating/Corporate Governance Committee. Except for Covered
Executive Officers, the participant must be employed by TCF Financial (or the
same subsidiary as employed by on the date of this Acknowledgment) on the date
the incentive is paid in the same job position as the position for which the
incentive was earned in order to receive the incentive payment. However, where
the participant has transferred to another position within TCF, the Committee
may in its discretion determine to pay part, none, or all of the incentive
based on any factors the Committee considers relevant.

 

5.             The Committee may
amend this Plan from time to time as it deems appropriate, except that any
amendment shall be in writing signed by the executive and TCF Financial and no
amendment may contravene requirements of the Performance-Based Plan. This Plan
shall not be construed as a contract of employment, nor shall it be considered
a term of employment, nor as a binding contract to pay awards. Nothing in this
Plan overrides the Employment Agreement.

 

6.             This
Plan is effective for service on or after January 1, 2007, and supersedes and
replaces the prior

Management Incentive Compensation Plan and any other prior incentive
arrangements with respect to executives in this Plan.

 

Acknowledgment

 

I have received, read, and acknowledge the terms of the foregoing plan.

 

 

	
  February 16, 2007

  	
   

  	
  /s/ Craig R. Dahl

  
	
  Date

  	
   

  	
  SignatureExhibit 4.1

THE TORO COMPANY, as Issuer

 

THE BANK OF NEW YORK TRUST COMPANY, N.A., as Trustee

 

FIRST SUPPLEMENTAL INDENTURE

Dated as of April 26, 2007

 

Creating a series
of Securities

Designated

6.625% Notes due May 1, 2037

Supplemental to
Indenture

Dated as of April 20, 2007

TABLE
OF CONTENTS

	
  

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  Section 1.01

  	
  Definitions

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II GENERAL TERMS AND CONDITIONS OF THE NOTES

  	
   

  	
  4

  
	
   

  	
   

  	
   

  
	
  Section 2.01

  	
  Designation and Principal Amount

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.02

  	
  Stated Maturity

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.03

  	
  Form, Denominations and Payment

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.04

  	
  Interest

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.05

  	
  Defeasance and Covenant Defeasance

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III REDEMPTION OF THE NOTES

  	
   

  	
  5

  
	
   

  	
   

  	
   

  
	
  Section 3.01

  	
  Optional Redemption

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.02

  	
  No Sinking Fund

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV CHANGE OF CONTROL

  	
   

  	
  6

  
	
   

  	
   

  	
   

  
	
  Section 4.01

  	
  Repurchase Upon Change of Control Triggering Event

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V FORM OF NOTE

  	
   

  	
  7

  
	
   

  	
   

  	
   

  
	
  Section 5.01

  	
  Form of Note

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI MISCELLANEOUS

  	
   

  	
  15

  
	
   

  	
   

  	
   

  
	
  Section 6.01

  	
  Ratification of Indenture

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.02

  	
  Governing Law

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.03

  	
  Separability

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.04

  	
  Counterparts

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.05

  	
  Recitals

  	
   

  	
  15

  
					

 

FIRST SUPPLEMENTAL INDENTURE, dated as of April 26,
2007 (the “First Supplemental Indenture”), by and between The Toro
Company, a corporation duly organized and existing under the laws of the State
of Delaware (the “Company”), and The Bank of New York Trust Company,
N.A., as trustee (the “Trustee”).

WHEREAS, the Company has heretofore executed and
delivered its Indenture, dated as of April 20, 2007 (the “Base Indenture”)
to the Trustee to provide for the future issuance of the Company’s unsecured
debentures, notes, bonds or other evidences of indebtedness (the “Securities”),
to be issued from time to time in one or more series and unlimited as to
principal amount;

WHEREAS, the Company desires to provide for the
establishment of a new series of its Securities to be known as its 6.625% Notes
due May 1, 2037 (the “Notes”), which shall be in the form of unsecured
and unsubordinated notes, with specific terms and provisions, the form and
substance of such Notes and the terms, provisions and conditions thereof to be
set forth as provided herein and in the Base Indenture;

WHEREAS, Section 9.01 of the Base Indenture provides
that, without the consent of the Holders, the Company, when authorized by a
Board Resolution, and the Trustee, at any time and from time to time, may enter
into one or more indentures supplemental to the Base Indenture, in form
satisfactory to the Trustee, to establish the form and terms of Securities of
any series as permitted by Sections 2.01 and 3.01 thereof; and

WHEREAS, the Company has requested that the Trustee
execute and deliver this First Supplemental Indenture, and all requirements
necessary to make this First Supplemental Indenture a valid instrument in
accordance with its terms, and to make the Notes, when executed by the Company
and authenticated and delivered by the Trustee, the valid obligations of the
Company, have been done and performed, and the execution and delivery of this
First Supplemental Indenture have been duly authorized in all respects.

NOW THEREFORE, the Company and the Trustee, in
consideration of the premises and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, hereby covenant
and agree, for the equal and proportionate benefit of all Holders of Notes, as
follows:

ARTICLE I

DEFINITIONS

Section 1.01           Definitions.  For all purposes of the Base Indenture and
this First Supplemental Indenture relating to the series of Securities
(consisting of the Notes) established hereby, except as otherwise expressly
provided or unless the context otherwise requires:

(a)           a
term not defined herein that is defined in the Base Indenture has the same
meaning when used in this First Supplemental Indenture;

(b)           the
definition of any term in this First Supplemental Indenture that is also defined
in the Base Indenture shall supersede the definition of such term in the Base
Indenture;

(c)           a
term defined anywhere in this First Supplemental Indenture has the same meaning
throughout;

(d)           the
singular includes the plural and vice versa;

(e)           headings
are for convenience of reference only and do not affect interpretation;

(f)            the
following terms have the meanings given to them in this Section 1.01(f):

“Below Investment Grade Rating Event” means the
Notes are rated below an Investment Grade Rating by both of the Rating Agencies
(as defined below) on any date from the date of the public notice of an
arrangement that could reasonably be expected to result in a Change of Control
until the end of the 60-day period following public notice of the occurrence of
the Change of Control (which 60-day period shall be extended so long as the
rating of the Notes is under publicly announced consideration for possible
downgrade by either of the Rating Agencies).

“Change of Control” means the occurrence of any
of the following: (1) the direct or indirect sale, transfer, conveyance or
other disposition (other than by way of merger or consolidation), in one or a
series of related transactions, of all or substantially all of the properties
or assets of the Company and its subsidiaries taken as a whole to any “person”
(as that term is used in Section 13(d)(3) of the Exchange Act), other than the
Company or one of its subsidiaries; (2) the consummation of any transaction
(including, without limitation, any merger or consolidation) the result of
which is that any “person” (as that term is used in Section 13(d)(3) of the
Exchange Act) becomes the beneficial owner, directly or indirectly, of more
than 50% of the then outstanding number of shares of the Company’s voting
stock; or (3) the first day on which a majority of the members of the Company’s
Board of Directors are not Continuing Directors; provided, however,
that a transaction will not be deemed to involve a Change of Control if the
Company becomes a wholly owned subsidiary of a holding company and the holders
of the voting stock of such holding company immediately following that
transaction are substantially the same as the holders of the Company’s voting
stock immediately prior to that transaction. 
For purposes of the foregoing definition, “voting stock” means capital
stock of any class or kind the holders of which are ordinarily, in the absence
of contingencies, entitled to vote for the election of directors (or persons
performing similar functions) of the Company, even if the right so to vote has
been suspended by the happening of such a contingency.

“Change of Control Triggering Event” means the
occurrence of both a Change of Control and a Below Investment Grade Rating
Event.

“Company” means the Person named as the “Company”
in the preamble of this First Supplemental Indenture until a successor Person
shall have become such pursuant to the applicable provisions of the Base
Indenture, and thereafter “Company” shall mean such successor Person.

“Continuing Directors” means, as of any date of
determination, any member of the Board of Directors of the Company who (1) was
a member of such Board of Directors on the 

 2
 

date of the issuance of the Notes; or (2) was
nominated for election or elected to such Board of Directors with the approval
of a majority of the Continuing Directors who were members of such Board of
Directors at the time of such nomination or election (either by a specific vote
or by approval of the Company’s proxy statement in which such member was named
as a nominee for election as a director, without objection to such nomination).

“Depositary” means, with respect to the Notes,
The Depository Trust Company or any successor clearing agency.

“First Supplemental Indenture” shall have the
meaning set forth in the preamble hereto.

“Interest Payment Period” means any semi-annual
period during which interest accrues on the Notes in accordance with Section
2.04(b) hereof.

“Investment Grade
Rating” means a rating by Moody’s equal to or higher than Baa3 (or the
equivalent under any successor rating category of Moody’s) and a rating by
S&P equal to or higher than BBB- (or the equivalent under any successor
rating category of S&P).

“Make-whole Amount”
shall have the meaning set forth in Section 3.01 hereof.

“Moody’s” means
Moody’s Investors Service Inc.

“Notes” shall have the meaning set forth in the
recitals of this First Supplemental Indenture.

“Rating Agencies”
means (1) both of Moody’s and S&P (to the extent each of them is then
rating the Notes); and (2) if either or both Moody’s or S&P ceases to rate
the Notes or fails to make a rating of the Notes publicly available for reasons
outside of the Company’s control, a “nationally recognized statistical rating
organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange
Act, selected by the Company (as certified by a resolution of the Company’s
Board of Directors) as a replacement agency for either of Moody’s or S&P,
or both of them, as the case may be.

“Reinvestment Rate”
means .30% plus the arithmetic mean of the yields under the headings “Week
Ending” published in the most recent statistical release under the caption “Treasury
Constant Maturities” for the maturity, rounded to the nearest month,
corresponding to the remaining life to maturity, as of the payment date of the
Notes being redeemed.  If no maturity
exactly corresponds to such maturity, yields for the two published maturities
most closely corresponding to such maturity will be calculated pursuant to the
immediately preceding sentence and the Reinvestment Rate will be interpolated
or extrapolated from such yields on a straight-line basis, rounding in each of
the relevant periods to the nearest month. 
For purposes of calculating the Reinvestment Rate, the most recent statistical
release published prior to the date of determination of the Make-whole Amount
will be used.

“S&P” means
Standard & Poor’s Ratings Services, a division of McGraw-Hill Companies
Inc.

 3
 

“Statistical release” means the statistical
release designated “H.15(519)” or any successor publication which is published
weekly by the Federal Reserve System and which establishes yields on actively
traded United States government securities adjusted to constant maturities or,
if such statistical release is not published at the time of any determination,
then such other reasonably comparable index which shall be designated by us.

“Trustee” means the Person named as “Trustee”
in the preamble of this First Supplemental Indenture until a successor Trustee
shall have become such pursuant to the applicable provisions of the Base
Indenture, and thereafter “Trustee” shall mean or include each Person who is
then a Trustee under the Base Indenture, and if at any time there is more than
one such Person, “Trustee” as used with respect to the Notes shall mean the
Trustee with respect to the Notes.

ARTICLE
II

GENERAL TERMS AND CONDITIONS OF THE NOTES

Pursuant to Section 3.01 of the Base Indenture, the
Notes are hereby established with the following terms and other provisions:

Section 2.01           Designation
and Principal Amount.  (a)  There is hereby established a new series of
Securities designated the 6.625% Notes due May 1, 2037, which shall be
unsecured and unsubordinated obligations of the Company initially limited to an
aggregate principal amount of $125,000,000, subject to Section 2.01(b) below
and excluding any Notes which may be authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other Notes
pursuant to Section 3.04, 3.05, 3.06, 9.06 or 11.07 of the Base Indenture.

(b)           The Company may,
from time to time, subject to compliance with any other applicable provisions
of this First Supplemental Indenture but without the consent of the Holders,
create and issue pursuant to this First Supplemental Indenture an unlimited
principal amount of additional Securities (in excess of any amounts theretofore
issued) having the same terms and conditions as those of the other
outstanding Securities, except that any such additional Securities (i) may
have a different issue date and issue price from other outstanding Securities
and (ii) may have a different amount of interest payable on the first
Interest Payment Date after issuance than the amount payable on other
outstanding Securities.  Such additional
Securities shall constitute part of the same series of Securities hereunder,
unless any such adjustment pursuant to this Section 2.01(b) shall cause
such additional Securities to constitute, as determined pursuant to an opinion
of counsel, a different class of securities than the original series of Securities
for United States federal income tax purposes.

Section 2.02           Stated
Maturity.  The date on which the
principal of the Notes shall become due and payable is May 1, 2037.

Section 2.03           Form,
Denominations and Payment.  The Notes
shall be issued only in registered form without coupons and shall be initially
issued in the form of one or more permanent Global Securities, in the form as
set forth in Article IV hereof.  The
Notes shall be issued in denominations of $1,000 and integral multiples of
$1,000 in excess thereof.  Payment 

 4
 

of any
principal (and premium, if any) and interest on Notes issued as Global
Securities shall be payable by the Company through the Trustee or another
Paying Agent to the Depositary in immediately available funds.

Section 2.04           Interest.

(a)           The Notes will bear
interest at the per annum rate of 6.625%, payable semi-annually in arrears on
each May 1 and November 1, commencing November 1, 2007 (each, an “Interest
Payment Date”).

(b)           Interest will accrue
from and including April 26, 2007 or the last Interest Payment Date in respect
of which interest has been paid or duly provided for, as applicable, to, but
not including, the next succeeding Interest Payment Date or, if earlier, an
applicable Redemption Date or the Stated Maturity, as the case may be.  Otherwise than in connection with the Stated
Maturity of, early redemption of, or the payment in whole or in part of
Defaulted Interest on, the Notes, interest on the Notes may be paid only on an
Interest Payment Date.

(c)           The amount of
interest payable for any full Interest Payment Period will be computed on the
basis of a 360-day year consisting of twelve thirty-day months.

(d)           In the event that
any Interest Payment Date is not a Business Day, payment of the interest
payable on such Interest Payment Date shall be made on the next succeeding day
that is a Business Day without any interest or other payment in respect of any
such delay.

(e)           Interest shall be
payable on each Interest Payment Date to the person in whose name the Note is
registered at the close of business on the Regular Record Date for such
interest payment, which shall be the April 15th or October 15th (whether or not
a Business Day), as the case may be, next preceding such Interest Payment Date.

Section 2.05           Defeasance
and Covenant Defeasance.  The Notes
shall be defeasible pursuant to Section 13.02 (Defeasance and Discharge) and
Section 13.03 (Covenant Defeasance) of the Base Indenture.

ARTICLE
III

REDEMPTION OF THE NOTES

Section 3.01           Optional
Redemption.  The Company may, at its
option, redeem the Notes, in whole at any time or in part from time to time,
upon notice given by mail not less than 30 nor more than 60 days before the
Redemption Date, at a Redemption Price equal to the sum of the principal amount
of the Notes called for redemption, accrued interest on that principal amount
to the Redemption Date, and the Make-whole Amount, if any, with respect to the
Notes.  “Make-whole Amount” means, in
connection with any redemption at the option of the Company, the excess, if
any, of (a) the aggregate present value as of the date of such redemption of
each dollar of principal being redeemed and the amount of interest, exclusive
of interest accrued to the Redemption Date, that would have been payable in
respect of each such dollar if such 

 5
 

redemption had
not been made, determined by discounting, on a semi-annual basis (assuming a
360-day year of twelve 30-day months), such principal and interest at the
Reinvestment Rate, determined on the third Business Day preceding the date notice
of such redemption is given, from the respective dates on which such principal
and interest would have been payable if such redemption had not been made, to
the Redemption Date, over (b) the aggregate principal amount of the Notes being
redeemed.  The Company may, at its
option, designate any third party to act as calculation agent with respect to
the Make-whole Amount; provided, however, that the Trustee shall not be
responsible or liable for the calculation of any Make-whole Amount. In case the
Company shall elect to redeem less than all of the Notes, the Company shall,
not less than 30 days nor more than 60 days prior to the redemption date fixed
by the Company, notify the Trustee in writing of such redemption date, and of
the principal amount of the Notes to be redeemed.

The Company shall
give prior written notice of any Make-Whole Amount prior to the date of payment
thereof.  The Trustee shall not be
responsible or liable for the calculation of any Make-Whole Amount.

Section 3.02           No
Sinking Fund.  The Notes shall not be
entitled to the benefit of any sinking fund.

ARTICLE
IV

CHANGE OF
CONTROL

Section 4.01           Repurchase
Upon Change of Control Triggering Event. 
(a) If a Change of Control Triggering Event occurs, unless the Company
has exercised its right to redeem the Notes as described in Article III above,
it will make an offer to each holder (the “Change of Control Offer”) to
repurchase all or any part (equal to $1,000 or an integral multiple of $1,000
in excess thereof) of such holder’s Notes at a repurchase price in cash equal
to 101% of the aggregate principal amount of Notes repurchased plus accrued and
unpaid interest, if any, thereon, to the date of repurchase.  Within 30 days following any Change of Control
Triggering Event, the Company will mail a notice to each Holder, with a copy to
the Trustee, describing the transaction or transactions that constitute the
Change of Control Triggering Event and offering to repurchase the Notes on the
payment date specified in the notice, which date will be no earlier than 30
days and no later than 60 days from the date such notice is mailed (the “Change
of Control Payment Date”), pursuant to the procedures required by the Notes and
described in such notice.

(b) The Company will comply with the requirements of
Rule 14e-1 under the Exchange Act, and any other securities laws and
regulations thereunder, to the extent those laws and regulations are applicable
in connection with the repurchase of the Notes as a result of a Change of
Control Triggering Event.  To the extent
that the provisions of any securities laws or regulations conflict with the
Change of Control repurchase provisions of the Notes, the Company will comply
with the applicable securities laws and regulations and will not be deemed to
have breached its obligations under the Change of Control repurchase provisions
of the Notes by virtue of such conflicts.

 6
 

(c) On the Change of Control Payment Date, the Company
will, to the extent lawful:

(i)    accept for payment all Notes or portions of
Notes properly tendered pursuant to the Change of Control Offer;

(ii)   deposit with the Paying Agent an amount equal
to the Change of Control Payment in respect of all Notes or portions of Notes
properly tendered; and

(iii)  deliver or cause to be delivered to the
Trustee the Notes properly accepted, together with an Officers’ Certificate
stating the aggregate principal amount of Notes being purchased.

ARTICLE V

FORM OF NOTE

Section 5.01           Form of
Note.  The Notes and the Trustee’s
Certificate of Authentication to be endorsed thereon are to be substantially in
the following forms:

[FORM OF NOTE]

THIS SECURITY IS A
GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND
IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF.  THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE
OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE
OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH
DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN
THE INDENTURE.

Unless this
certificate is presented by an authorized representative of The Depository
Trust Company, a New York corporation (the “Depositary”), to the Company (as
defined below) or its agent for registration of transfer, exchange or payment,
and any certificate issued is registered in the name of Cede & Co. or such
other name as requested by an authorized representative of the Depositary (and
any payment is made to Cede & Co. or to such other entity as is requested
by an authorized representative of the Depositary), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since
the registered owner hereof, Cede & Co., has an interest herein.

6.625% NOTE DUE
May 1, 2037

THE TORO COMPANY

	
  No.

  	
   

  	
   

  	
  CUSIP No.

  	
   

  

 

 7
 

PRINCIPAL AMOUNT:   $125,000,000.00

The Toro Company,
a corporation duly organized and existing under the laws of the State of
Delaware (herein called the “Company”, which term includes any successor Person
under the Indenture hereinafter referred to), for value received, hereby
promises to pay to Cede & Co., or registered assigns, the principal sum of ONE
HUNDRED TWENTY-FIVE MILLION U.S. Dollars (U.S.$125,000,000.00) on May 1, 2037
and to pay interest thereon from April 26, 2007 or from the most recent
Interest Payment Date to which interest has been paid or duly provided for,
semi-annually on May 1 and November 1 in each year, commencing November 1, 2007
at the rate of 6.625% per annum, until the principal hereof is paid or made
available for payment, provided that any principal and premium, and any
such installment of interest, which is overdue shall bear interest at the rate
of 6.625% per annum (to the extent that the payment of such interest shall be
legally enforceable), from the dates such amounts are due until they are paid
or made available for payment, and such interest shall be payable on demand.
The interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in such Indenture, be paid to the Person in
whose name this Security (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest, which
shall be the April 15th or October 15th (whether or not a Business Day), as the
case may be, next preceding such Interest Payment Date.  Any such interest not so punctually paid or
duly provided for will forthwith cease to be payable to the Holder on such
Regular Record Date and may either be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to
be fixed by the Trustee, notice whereof shall be given to Holders of Securities
of this series not less than 10 days prior to such Special Record Date, or be
paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities of this series
may be listed, and upon such notice as may be required by such exchange, all as
more fully provided in said Indenture.

Payment of the
principal of (and premium, if any) and interest on this Security will be made
at the office or agency of the Company maintained for that purpose in the
Borough of Manhattan, The City of New York, in such coin or currency of the
United States of America as at the time of payment is legal tender for payment
of public and private debts; provided, however, that at the option
of the Company payment of interest may be made by check mailed to the address
of the Person entitled thereto as such address shall appear in the Security
Register or by transfer to an account maintained by the payee with a bank
located in the United States.

This Security is
one of a duly authorized issue of securities of the Company (herein called the “Securities”),
issued and to be issued in one or more series under an Indenture, dated as of
April 20, 2007 (herein called the “Indenture”, which term shall have the
meaning assigned to it in such instrument), as amended and supplemented by a
First Supplemental Indenture dated as of April 26, 2007, between the Company
and The Bank of New York Trust Company, N.A., as Trustee (herein called the “Trustee”,
which term includes any successor trustee under the Indenture), and reference
is hereby made to the Indenture and all indentures supplemental thereto for a
statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the
Securities and of the 

 8
 

terms upon which the
Securities are, and are to be, authenticated and delivered. This Security is
one of the series designated on the face hereof.

The Company may, at its option, redeem this Security,
in whole at any time or in part from time to time, upon notice given by mail
not less than 30 nor more than 60 days before the Redemption Date, at a
Redemption Price equal to the sum of the principal amount of this Security,
accrued interest on that principal amount to the Redemption Date, and the
Make-whole Amount, if any, with respect to this Security.

For purposes of
the immediately preceding paragraph, the following defined terms shall have the
meanings specified:

“Make-whole Amount”
means, in connection with any redemption at the option of the Company, the
excess, if any, of the (a) aggregate present value as of the date of such
redemption of each dollar of principal being redeemed and the amount of
interest, exclusive of interest accrued to the Redemption Date, that would have
been payable in respect of each such dollar if such redemption had not been
made, determined by discounting, on a semi-annual basis (assuming a 360-day
year of twelve 30-day months), such principal and interest at the Reinvestment
Rate, determined on the third Business Day preceding the date notice of such
redemption is given, from the respective dates on which such principal and
interest would have been payable if such redemption had not been made, to the
Redemption Date, over (b) the aggregate principal amount of Securities with
like tenor and terms to this Security being redeemed.  In case the Company shall elect to redeem
less than all of the Securities with like tenor and terms to this Security, the
Company shall, not less than 30 days nor more than 60 days prior to the
redemption date fixed by the Company, notify the Trustee in writing of such
redemption date, and of the principal amount of such Securities to be redeemed.

“Redemption Date”, when used with respect to any
Security to be redeemed, means the date fixed for such redemption by or
pursuant to the Indenture.

“Redemption Price”, when used with respect to any
Security to be redeemed, means the price at which it is to be redeemed pursuant
to the Indenture.

If a Change of Control Triggering Event occurs, unless
the Company has exercised its right to redeem the Securities as described
above, the Company shall make an offer to each Holder (the “Change of Control
Offer”) to repurchase all or any part (equal to $1,000 or an integral multiple
of $1,000 in excess thereof) of such Holder’s Securities at a repurchase price
in cash equal to 101% of the aggregate principal amount of the Securities to be
repurchased plus accrued and unpaid interest, if any, thereon, to the date of
repurchase.  Within 30 days following any
Change of Control Triggering Event, the Company shall mail a notice to each
Holder, with a copy to the Trustee, describing the transaction or transactions
that constitute the Change of Control Triggering Event and offering to
repurchase the Securities on the payment date specified in the notice, which
date shall be no earlier than 30 days and no later than 60 days from the date
such notice is mailed (the “Change of Control Payment Date”), pursuant to the
procedures required by the Securities and described in such notice.

 9
 

The Company shall comply with the requirements of Rule
14e-1 under the Exchange Act, and any other securities laws and regulations
thereunder, to the extent those laws and regulations are applicable in
connection with the repurchase of the Securities as a result of a Change of
Control Triggering Event.  To the extent
that the provisions of any securities laws or regulations conflict with the
Change of Control repurchase provisions of the Securities, the Company shall
comply with the applicable securities laws and regulations and will not be
deemed to have breached its obligations under the Change of Control repurchase
provisions of the Securities by virtue of such conflicts.

On the Change of Control Payment Date, the Company
shall, to the extent lawful:

(i)             accept for payment
all Securities or portions of Securities properly tendered pursuant to the
Change of Control Offer;

(ii)          deposit with the Paying
Agent an amount equal to the Change of Control Payment in respect of all
Securities or portions of Securities properly tendered; and

(iii)       deliver or cause to be
delivered to the Trustee the Securities properly accepted, together with an
Officers’ Certificate stating the aggregate principal amount of Securities
being purchased.

“Below Investment Grade Rating Event” means the
Securities are rated below an Investment Grade Rating by both of the Rating
Agencies (as defined below) on any date from the date of the public notice of
an arrangement that could reasonably be expected to result in a Change of
Control until the end of the 60-day period following public notice of the
occurrence of the Change of Control (which 60-day period shall be extended so
long as the rating of the Securities is under publicly announced consideration
for possible downgrade by either of the Rating Agencies).

“Change of Control” means the occurrence of any of the
following: (1) the direct or indirect sale, transfer, conveyance or other
disposition (other than by way of merger or consolidation), in one or a series
of related transactions, of all or substantially all of the properties or
assets of the Company and its subsidiaries taken as a whole to any “person” (as
that term is used in Section 13(d)(3) of the Exchange Act), other than the
Company or one of its subsidiaries; (2) the consummation of any transaction
(including, without limitation, any merger or consolidation) the result of
which is that any “person” (as that term is used in Section 13(d)(3) of the
Exchange Act) becomes the beneficial owner, directly or indirectly, of more
than 50% of the then outstanding number of shares of the Company’s voting
stock; or (3) the first day on which a majority of the members of the Company’s
Board of Directors are not Continuing Directors; provided, however,
that a transaction will not be deemed to involve a Change of Control if the
Company becomes a wholly owned subsidiary of a holding company and the holders
of the voting stock of such holding company immediately following that
transaction are substantially the same as the holders of the Company’s voting
stock immediately prior to that transaction. 
For purposes of the foregoing definition, “voting stock” means capital
stock of any class or kind the holders of which are ordinarily, in the absence
of contingencies, entitled to vote for the election of directors (or persons
performing similar functions) of the Company, even if the right so to vote has
been suspended by the happening of such a contingency.

 10
 

“Change of Control
Triggering Event” means the occurrence of both a Change of Control and a Below
Investment Grade Rating Event.

“Continuing Directors” means, as of any date of
determination, any member of the Board of Directors of the Company who (1) was
a member of such Board of Directors on the date of the issuance of the
Securities; or (2) was nominated for election or elected to such Board of
Directors with the approval of a majority of the Continuing Directors who were
members of such Board of Directors at the time of such nomination or election
(either by a specific vote or by approval of the Company’s proxy statement in
which such member was named as a nominee for election as a director, without
objection to such nomination).

“Investment Grade Rating”
means a rating by Moody’s equal to or higher than Baa3 (or the equivalent under
any successor rating category of Moody’s) and a rating by S&P equal to or
higher than BBB- (or the equivalent under any successor rating category of
S&P).

“Moody’s” means Moody’s
Investors Service Inc.

“Rating Agencies” means
(1) both of Moody’s and S&P (to the extent each of them is then rating the
Securities); and (2) if either or both of Moody’s or S&P ceases to rate the
Securities or fails to make a rating of the Securities publicly available for
reasons outside of the Company’s control, a “nationally recognized statistical
rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the
Exchange Act, selected by the Company (as certified by a resolution of the
Company’s Board of Directors) as a replacement agency for either of Moody’s or
S&P, or both of them, as the case may be.

“S&P” means Standard
& Poor’s Ratings Services, a division of McGraw-Hill Companies Inc.

The Indenture contains provisions for Defeasance at
any time of the entire indebtedness of this Security or certain restrictive
covenants and Events of Default with respect to this Security, in each case
upon compliance with certain conditions set forth in the Indenture.

If an Event of Default with respect to Securities of
this series shall occur and be continuing, the principal of the Securities of
this series may be declared due and payable in the manner and with the effect
provided in the Indenture.

The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the rights of the
Holders of the Securities of each series to be affected under the Indenture at
any time by the Company and the Trustee with the consent of the Holders of a
majority in principal amount of the Securities at the time Outstanding of each
series to be affected.  The Indenture
also contains provisions permitting the Holders of specified percentages in
principal amount of the Securities of each series at the time Outstanding, on
behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. 
Any such consent or waiver by the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future Holders of this
Security and of any Security issued upon the registration of transfer of this 

 11
 

Security or in exchange
for or in lieu of this Security, whether or not notation of such consent or
waiver is made upon this Security.

As provided in and
subject to the provisions of the Indenture, the Holder of this Security shall
not have the right to institute any proceeding with respect to the Indenture or
for the appointment of a receiver or trustee or for any other remedy
thereunder, unless such Holder shall have previously given the Trustee written
notice of a continuing Event of Default with respect to the Securities of this
series, the Holders of not less than 25% in principal amount of the Securities
of this series at the time Outstanding shall have made written request to the
Trustee to institute proceedings in respect of such Event of Default as Trustee
and offered the Trustee reasonable indemnity, and the Trustee shall not have
received from the Holders of a majority in principal amount of Securities of
this series at the time Outstanding a direction inconsistent with such request,
and shall have failed to institute any such proceeding, for 60 days after
receipt of such notice, request and offer of indemnity. The foregoing shall not
apply to any suit instituted by the Holder of this Security for the enforcement
of any payment of principal hereof or any premium or interest hereon on or
after the respective due dates expressed herein.

No reference herein to
the Indenture and no provision of this Security or of the Indenture shall alter
or impair the obligation of the Company, which is absolute and unconditional,
to pay the principal of and any premium and interest on this Security at the
times, place and rate, and in the coin or currency, herein prescribed.

As provided in the
Indenture and subject to certain limitations therein set forth, the transfer of
this Security is registrable in the Security Register, upon surrender of this
Security for registration of transfer at the office or agency of the Company in
any place where the principal of and any premium and interest on this Security
are payable, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Security Registrar duly
executed by, the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Securities of this series and of like tenor, of
authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees.

The Securities of this
series are issuable only in registered form without coupons in denominations of
$1,000 and any integral multiple thereof. 
As provided in the Indenture and subject to certain limitations therein
set forth, Securities of this series are exchangeable for a like aggregate
principal amount of Securities of this series and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same.

No service charge shall
be made for any such registration of transfer or exchange, but the Company may
require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith. 
Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the owner hereof for
all purposes, whether or not this Security be overdue, and neither the Company,
the Trustee nor any such agent shall be affected by notice to the contrary.

The
Company, the Trustee, and any Paying Agent may deem and treat the registered
Holder hereof as the absolute owner of this Security at his, her or its address
as it 

 12
 

appears on the
register books of the Company as kept by the Trustee or duly authorized agent
of the Company (whether or not this Security shall be overdue), for the purpose
of receiving payment of or on account hereof and for all other purposes, and
neither the Company nor the Trustee nor any Paying Agent shall be affected by
any notice to the contrary.  All payments
made to or upon the order of such registered Holder shall, to the extent of the
sum or sums paid, effectively satisfy and discharge liability for moneys
payable on this Security.

All
terms used in this Security which are defined in the Indenture shall have the
meanings assigned to them in the Indenture.

Unless
the certificate of authentication hereon has been executed by the Trustee
referred to on the reverse hereof by manual signature, this Security shall not
be entitled to any benefit under the Indenture or be valid or obligatory for
any purpose.

IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed
under its corporate seal.

	
  Dated:

  
	
   

  
	
   

  
	
   

  	
  THE TORO COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

The Trustee’s certificates of authentication shall be
in substantially the following form:

This is one of the
Securities of the series designated therein referred to in the within-mentioned
Indenture.

	
  Dated:

  
	
   

  
	
   

  
	
   

  	
  THE BANK OF NEW YORK 

  TRUST COMPANY, N.A., as 

  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized Signatory

  

 

 13
 

ABBREVIATIONS

The following
abbreviations, when used in the inscription on the face of this instrument,
shall be construed as though they were written out in full according to
applicable laws or regulations.

	
  TEN COM - 

  	
  as tenants

  	
  UNIF GIFT MIN ACT - . . .Custodian..

  
	
   

  	
  in common

  	
   

  	
  (Cust) (Minor)

  
	
  TEN ENT - 

  	
  as tenants by

  	
   

  	
  Under Uniform Gifts to

  
	
   

  	
  the entireties

  	
   

  	
  Minor Act

  
	
  JT TEN -

  	
  as joint tenants

  	
   

  
	
   

  	
  with right of

  	
   

  
	
   

  	
  survivorship and

  	
   

  	
   

  	
   

  
	
   

  	
  not as tenants in

  	
   

  	
  (State)

  
	
   

  	
  Common

  	
   

  

 

Additional abbreviations
may also be used though not in the above list.

 

	
  FOR VALUE RECEIVED, the
  undersigned hereby sell(s), assign(s) and transfer(s) unto

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Please insert
  Social Security or other identifying number of Assignee)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Please print or
  typewrite name and address including postal zip code of Assignee)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

the within Security of
THE TORO COMPANY and does hereby irrevocably constitute and appoint                                          
                                      attorney
to transfer the said Security on the books of the Company, with full power of
substitution in the premises.

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  

 

[NOTICE:  The signature to this assignment must
correspond with the name as written upon the face of the within instrument in
every particular, without alteration or enlargement or any change whatever.]

 14
 

ARTICLE
VI

MISCELLANEOUS

Section 6.01           Ratification
of Indenture.  The Base Indenture as
amended and supplemented by this First Supplemental Indenture, is in all
respects ratified and confirmed, and this First Supplemental Indenture shall be
deemed part of the Base Indenture in the manner and to the extent herein and
therein provided.

Section 6.02           Governing
Law.  This First Supplemental
Indenture and each Note shall be deemed to be a contract made under the laws of
the State of New York, and for all purposes shall be construed in accordance
with the laws of said State applicable to contracts made and to be performed
entirely within said State.

Section 6.03           Separability.  In case any one or more of the provisions
contained in this First Supplemental Indenture or in the Notes shall for any
reason be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other
provisions of this First Supplemental Indenture or of the Notes; this First
Supplemental Indenture and the Notes shall be construed as if such invalid or
illegal or unenforceable provision had never been contained herein or therein.

Section 6.04           Counterparts.  This First Supplemental Indenture may be
executed in any number of counterparts each of which shall be an original; but
such counterparts shall together constitute but one and the same instrument.

Section 6.05           Recitals.  The Trustee makes no representations as to
the validity or sufficiency of this First Supplemental Indenture or of the
Notes.  The recitals and statements
herein and in the Notes (except in the Trustee’s certificate of authentication)
are deemed to be those of the Company and not those of the Trustee, and the
Trustee assumes no responsibility for their correctness.

 15

IN WITNESS WHEREOF, the
parties hereto have caused this First Supplemental Indenture to be duly
executed by their respective officers thereunto duly authorized, on the date or
dates indicated in the acknowledgments and as of the day and year first above written.

	
  

  	
  THE TORO COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Stephen
  P. Wolfe

  	
   

  
	
   

  	
   

  	
  Name:  Stephen
  P. Wolfe

  
	
   

  	
   

  	
  Title:   
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW
  YORK TRUST 

  COMPANY, N.A., as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ D. G. Donovan

  	
   

  
	
   

  	
   

  	
  Name:  D.G.
  Donovan

  
	
   

  	
   

  	
  Title:    Vice
  President

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