Document:

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                                THE TORO COMPANY

                           DEFERRED COMPENSATION PLAN
                           FOR NON-EMPLOYEE DIRECTORS

                            EFFECTIVE JANUARY 1, 1999
                            AS AMENDED JULY 20, 2000

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                                    CONTENTS
<TABLE>
<S>                                                                                                           <C>
Purpose  .................................................................................................    2
I.       DEFINITIONS......................................................................................    2
II.      ELIGIBILITY, PARTICIPATION, DEFERRAL ELECTION....................................................    6
         2.1      Eligibility.............................................................................    6
         2.2      Participation...........................................................................    6
         2.3      Deferral Election.......................................................................    6
III.     CREDITING;VESTING; TAXES.........................................................................    7
         3.1      Amounts to be Credited to Accounts......................................................    7
         3.2      Vesting.................................................................................    8
IV.      DISTRIBUTIONS....................................................................................    9
         4.1      Distributable Events....................................................................    9
         4.2      Method of Payment.......................................................................    9
         4.3      Death Prior to Completion of Payment....................................................    9
         4.4      Payment Prior to Retirement.............................................................    10
         4.5      Unforseeable Financial Emergencies......................................................    10
         4.6      Distribution in the Event of Taxation...................................................    10
         4.7      Withholding.............................................................................    10
         4.8      Deductions..............................................................................    11
V.       BENEFICIARY DESIGNATION..........................................................................    11
VI.      ADMINISTRATION...................................................................................    11
         6.1      Committee Duties........................................................................    11
         6.2      Administrative Committee; Agents........................................................    11
         6.3      Binding Effect of Decisions.............................................................    12
         6.4      Indemnity of Committee and Administrative Committee.....................................    12
VII.     TERMINATION; AMENDMENT OR MODIFICATION...........................................................    12
         7.1      Termination.............................................................................    12
         7.2      Amendment or Modification...............................................................    12
VIII.    TRUST............................................................................................    13
         8.1      Trust Assets............................................................................    13
         8.2      Enforcement of Funding..................................................................    13
         8.3      Miscellaneous...........................................................................    13
IX.      MISCELLANEOUS....................................................................................    13
         9.1      Status of Plan..........................................................................    13
         9.2      Unsecured General Creditor..............................................................    14
         9.3      Nonassignability........................................................................    14
         9.4      Discharge of Obligations................................................................    14
         9.5      Not a Contract of Employment............................................................    14
         9.6      Governing Law...........................................................................    14
         9.7      Notice..................................................................................    15
         9.8      Successors..............................................................................    15
         9.9      Validity................................................................................    15
         9.10     Court Order.............................................................................    15
         9.11     No Assurance of Tax Consequences........................................................    16
</TABLE>
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                                THE TORO COMPANY
                           DEFERRED COMPENSATION PLAN
                           FOR NON-EMPLOYEE DIRECTORS

                            Effective January 1, 1999
                            As amended July 20, 2000

                                     PURPOSE

         The growth and success of The Toro Company depend on its ability to
attract and retain the services of Directors of the highest competence,
initiative, integrity, and ability. The purpose of this Plan is to advance the
interests of the Company and its stockholders through a deferred compensation
program designed to attract, motivate and retain Directors and selected
Consultants. This Plan shall be unfunded for tax purposes and for purposes of
Title I of ERISA.

                                I.   DEFINITIONS

         For purposes of this Plan, the following words and phrases have the
meanings indicated, unless a different meaning is clearly indicated by the
context:

         "Account" means a book entry account established and maintained in the
Company's records in the name of a Participant pursuant to Articles II and III,
and includes a Cash Account, a Common Stock Units Account and a Retirement Units
Account.

         "Beneficiary" means one or more individuals, trusts, estates or other
entities, designated in accordance with, or otherwise determined under, Article
V to receive benefits under this Plan upon the death of a Participant.

         "Board" means the Board of Directors of the Company.

         "Cash Account" means an Account with entries denominated in dollars,
credited in accordance with Section 3.1(a).

         "Change of Control" means:

          (i) 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 (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

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election of directors (the "Outstanding Company Voting Securities"); provided,
however, that for purposes of this subsection (i), the following acquisitions
shall not constitute a Change of Control: (A) any acquisition directly from the
Company, (B) any acquisition by the Company, (C) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any
corporation controlled by the Company, or (D) any acquisition by any corporation
pursuant to a transaction that complies with clauses (A), (B) and (C) of
subsection (iii) of this definition; or

         (ii) 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 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

         (iii) 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, (A) 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, (B) 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 (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

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execution of the initial agreement, or of the action of the Board, providing for
such Business Combination; or

         (iv)Approval by the stockholders of the Company of a complete
liquidation or dissolution of the Company.

         "Code" means the Internal Revenue Code of 1986, as amended and in
effect from time to time.

         "Committee" means the committee described in Article VI, and if an
Administrative Committee has been appointed pursuant to Section 6.2, shall
include such Administrative Committee.

         "Common Stock" means The Toro Company Common Stock, $1.00 par value,
and related preferred share purchase rights, or any other equity security of the
Company designated by the Committee, as such shares may be adjusted in
accordance with Section 3.1(d)(i).

         "Common Stock Units Account" means an Account with entries denominated
in Units (including fractions) that are credited in accordance with Section
3.1(b).

         "Company" means The Toro Company, a Delaware corporation, and any
successor to all or substantially all of the Company's assets or business.

         "Consultant" means an individual engaged by the Company as an
independent contractor to perform consulting or similar services for the Company
or a subsidiary of the Company under a written agreement that specifically
designates certain Consulting Fees as eligible for deferral under this Plan.

         "Consulting Fees" means the consideration paid by the Company or a
subsidiary to a Consultant for services. Consulting Fees shall be calculated
before reduction for amounts voluntarily deferred or contributed by the
Participant pursuant to this Plan.

         "Deferral Election" means a Participant's election under Section 2.2,
made in the form prescribed by the Committee.

         "Director" means any member of the Board who is not an employee of the
Company or of any subsidiary of the Company.

         "Directors Fees" means amounts paid to a Director as compensation (but
not as reimbursement of expenses) for serving on the Board, including retainer
fees, meeting fees and stock grants or awards.

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended and as in effect from time to time.

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         "Participant" means a Director who elects to participate in the Plan in
accordance with Article II, and includes a Consultant who is selected to
participate in the Plan and who elects to do so. Status as a Participant shall
continue for as long as the individual has a balance credited to an Account
under the Plan, even if the Participant is no longer a Director or Consultant.
Neither a Beneficiary, a spouse or former spouse nor an executor or personal
administrator of a Participant's estate shall be treated as a Participant even
if such spouse or the Participant's estate has an interest in the Participant's
benefits under the Plan.

         "Plan" means this Deferred Compensation Plan for Non-Employee
Directors, as it may be amended from time to time.

         "Plan Year" means the calendar year.

         "Retirement", "Retire(s)" or "Retired" refer to resignation or
retirement from the Board or termination of service as a Director for any
reason; and, with respect to a Consultant, means termination of service as a
Consultant for any reason.

         "Retirement Units Account" means an Account with entries denominated in
Units (including fractions) that are credited in accordance with Section 3.1(c)
of the Plan.

         "Retirement Stock Election" means an election permitted one time only
not later than October 31, 2000 to convert cash amounts previously accrued for a
Director's benefit pursuant to The Toro Company Non-Employee Director Retirement
Plan, into Units credited to a Retirement Units Account under this Plan.

         "Trust" means one or more trusts established by the Company to be used
in connection with the Plan.

         "Trustee" means the financial institution acting at the time as trustee
of the Trust.

         "Unforeseeable Financial Emergency" means an unanticipated severe
financial hardship to the Participant resulting from (i) a sudden and unexpected
illness or accident of the Participant or a dependent of the Participant, (ii) a
loss of the Participant's residence or other property due to casualty, or (iii)
other extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant, all as determined in the sole
discretion of the Committee.

         A "Unit" has a value equal to one share of Common Stock, subject to
adjustment by the Committee in accordance with Section 3.1(d) of the Plan.

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                 II.        ELIGIBILITY, PARTICIPATION, DEFERRAL
                                    ELECTION

2.1      ELIGIBILITY

         Any Director is eligible to participate in the Plan. A Consultant who
is selected by the Company to participate is eligible to participate in the
Plan.

2.2      PARTICIPATION

         A Director or eligible Consultant may become a Participant in the Plan
by completing, signing and delivering to the Office of the Corporate Secretary a
Deferral Election, which may include a beneficiary designation, and such other
material as the Committee may request.

2.3      DEFERRAL ELECTION

         (a) Deadline for Delivery. A Director or an eligible Consultant may
deliver a Deferral Election not later than December 31 of any year prior to a
Plan Year in which it is to become effective.

              (i) Notwithstanding the foregoing:

                   (A) In a year in which the Plan is amended to permit deferral
of compensation not previously subject to deferral, a Director or eligible
Consultant may submit a Deferral Election not later than 30 days after the
effective date of the amendment, provided that the election shall be effective
only with respect to Directors Fees or Consulting Fees not due and payable at
the time the election is received.

                   (B) In a year in which an individual first becomes a Director
or an eligible Consultant, the individual may submit a Deferral Election not
later than 30 days after the date the individual becomes eligible to participate
in the Plan, provided that the election shall be effective only with respect to
Directors Fees or Consulting Fees not due and payable at the time the election
is received.

         (b) Election Irrevocable. A Deferral Election is effective upon
delivery and is irrevocable with respect to the Plan Year for which it is made.
A Participant may change a Deferral Election for a subsequent Plan Year by
delivering a new Deferral Election to the Office of the Corporate Secretary not
later than December 31 of the preceding Plan Year.

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                        III.   CREDITING; VESTING; TAXES

3.1      AMOUNTS TO BE CREDITED TO ACCOUNTS

         (a) Cash Account. A Participant's Cash Account shall be credited with
Directors Fees deferred pursuant to a valid Deferral Election and shall be
further credited with interest at a rate and in a manner determined by the
Committee to be consistent with the prime rate of interest charged to individual
borrowers by U.S. Bank, National Association (formerly First Bank National
Association) or its successor. Prior to a Change of Control, the method for
determining the interest crediting rate may be changed at any time, at the
discretion of the Committee. After the Trust is funded in event of a Change of
Control, the Trustee shall have authority to change the method of determining
the interest crediting rate.

         Interest shall be credited at the end of each calendar quarter.

         (b) Common Stock Units Account. A Participant's Common Stock Units
Account shall be credited with a number of Units equal to the number of shares
of Common Stock that otherwise would have been issued to Participant by way of a
stock grant or award and that were deferred pursuant to a valid Deferral
Election.

         (c) Retirement Units Account. A Participant's Retirement Units Account
shall be credited with a number of Units equal to the dollar value of retirement
benefits accrued under The Toro Company Non-Employee Director Retirement Plan at
October 31, 2000 divided by the 4 p.m. New York Stock Exchange closing price of
one share of the Common Stock on October 31, 2000, provided the Participant is
eligible to make an election to convert such accrued benefits and has properly
made the election.

         (d) Account Value. Subject to the provisions of subparagraph (i) of
this Section 3.1(d), the value of Units in a Common Stock Units Account or
Retirement Units Account shall fluctuate with the New York Stock Exchange price
of the Common Stock.

              (i) In the event of a corporate transaction involving the Company
(including, without limitation, any merger, consolidation, recapitalization,
reorganization, split off, spin off, reclassification, combination, stock
dividend, stock split, reverse stock split, repurchase, exchange, issuance of
warrants or other rights to purchase Common Stock or other securities of the
Company, or other similar corporate transaction or change in the corporate
structure of the Company affecting the Common Stock, or a sale by the Company of
all or part of its assets or any distribution to stockholders other than a
normal cash dividend), the Committee shall adjust Accounts to preserve their
benefits or potential benefits. Action by the Committee may include all or any
of (i) appropriate adjustments in the number of Units then credited to an
Account; (ii) conversion of Units to other new or different securities into
which the Common Stock may be converted; (iii) cash payments, or

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(iv) any other adjustment the Committee determines to be equitable and
consistent with the purposes of this Plan. In the event that Common Stock is
converted into cash in connection with a corporate transaction described in this
subsection, the value of the Units in any Account shall be converted to a dollar
amount, by multiplying the number of Units in each Account by the fair market
value of a share of Common Stock on the date of the corporate transaction, and
such amounts shall be credited with interest at a rate and in a manner
determined by the Company to be consistent with the average prime rate of
interest charged by U.S. Bank, National Association to its individual borrowers.
If the Trust is funded in the event of a Change of Control, the Trustee shall
have authority to change the method of determining the interest crediting rate.

         (e) Time of Crediting. Directors Fees and Consulting Fees deferred
under this Plan shall be withheld at the time they otherwise would be paid to
the Participant, whether or not payment occurs during the Plan Year itself.
Units credited to a Retirement Units Account will be credited as of October 31,
2000.

         (f) Dividends. In the event that the Company pays dividends on its
Common Stock, each of the Common Stock Units Account and Retirement Units
Account shall be credited with additional Units (including fractions). The
number of additional Units to be credited shall be determined by dividing the
aggregate dollar value of the dividends that would be paid on the Units, if such
Units were Common Stock, by the 4 p.m. New York Stock Exchange closing price of
one share of the Common Stock on the dividend payment date.

         (g) Self-Employment and Other Taxes. The Company may withhold from a
Participant's Directors Fees or Consulting Fees, in a manner determined by the
Committee, the Participant's share of self-employment, FICA and other taxes that
may be required to be withheld. If necessary, the Committee may reduce the
amount of Directors Fees or Consulting Fees a Participant elects to defer in
order to comply with this Section 3.1(g).

3.2      VESTING

         A Participant's Cash Account and Common Stock Units Account shall at
all times be fully vested, subject only to the Participant's status as a general
creditor of the Company, as provided in Section 9.2. A Director Participant's
Retirement Units Account shall vest on the date that the Director completes five
full years of service as a member of the Board.

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                              IV.   DISTRIBUTIONS

4.1      DISTRIBUTABLE EVENTS

         Distributions under the Plan shall be payable in accordance with a
Participant's Deferral Election upon the earliest of (i) Retirement, (ii) prior
to Retirement if a valid election has been made under Section 4.4, or (iii) an
Unforeseeable Financial Emergency under Section 4.5.

4.2      METHOD OF PAYMENT

         (a) A Participant may elect, in a manner determined by the
Committee, (i) to receive Cash Account distributions in a lump sum or in
quarterly installments over a period of time not to exceed ten years or such
period as the Committee may determine and (ii) to receive Common Stock Units
Account distributions in a single distribution or in annual installments over a
period of time not to exceed ten years or such period as the Committee may
determine and (iii) to receive Retirement Units Account distributions in a
single distribution or over a period of time not to exceed five years.

         (b) An election may be changed to an allowable alternative payment
period by submitting a new election to the Committee, in a form approved by the
Committee, provided that an election submitted less than two years before the
distribution is to commence shall not be given effect. The most recent effective
election received by the Committee shall govern the payment. If a Participant
does not make a valid election with respect to the payment of benefits, then
such benefits shall be payable in a single distribution. The single distribution
shall be made, or installment payments shall commence, on or around the 15th day
of January immediately after the calendar year in which the Participant Retires.

         (c) Any Account denominated in Units shall be payable only in shares of
Common Stock, except that cash shall be paid for any fractional share.
Distributions of Common Stock shall be made either in a single distribution or
in annual installments. If, at the time of any annual installment payment, the
total number of Units in a Participant's Common Stock Units Account and
Retirement Units Account is 1,000 or less, the balance in such Accounts shall be
distributed in a single distribution.

4.3      DEATH PRIOR TO COMPLETION OF PAYMENT

         If a Participant dies after Retirement but before his or her Accounts
are distributed in full, the remaining Account Balance shall be paid to the
Participant's Beneficiary, in a lump sum or, if the Participant has so elected,
in installments.

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4.4      DISTRIBUTION PRIOR TO RETIREMENT

         Subject to Committee approval, a Participant may irrevocably elect in a
Deferral Election to receive all or part of the balance of either or both of the
Cash Account or the Common Stock Units Account, but not the Retirement Units
Account, in any year prior to Retirement. Except as provided in Section 4.5, no
distribution prior to Retirement shall be made until at least two Plan Years
have elapsed following Committee approval of the election. A distribution in any
year shall not exceed the aggregate of the balance of each of the Cash Account
and Common Stock Units Account as of the last day of the Plan Year immediately
prior to the Plan Year in which the distribution is made. Any distribution made
pursuant to an approved election hereunder shall be made in a single
distribution by March 1 of the year in which it becomes payable.

4.5      UNFORESEEABLE FINANCIAL EMERGENCIES

         A Participant who experiences an Unforeseeable Financial Emergency may
request either or both of (i) suspension of any deferrals then in effect and
(ii) a partial or full distribution from the Plan. The Committee shall in its
discretion act on the Participant's request, but a distribution shall not exceed
the lesser of the aggregate balance of the Participant's Accounts or the amount
reasonably needed to satisfy the Unforeseeable Financial Emergency.

4.6      DISTRIBUTION IN THE EVENT OF TAXATION

         A Participant or Beneficiary may request the Committee before a Change
of Control, or the Trustee after a Change of Control, for a distribution of that
portion of any benefit under the Plan that has become taxable to such
Participant or Beneficiary prior to its receipt. The Committee shall not
unreasonably withhold its consent to any such request. After a Change of
Control, the Trustee shall consent to any such request upon a proper showing
that the benefits are taxable. Once consent to such a request is granted, the
Plan shall distribute to the Participant or Beneficiary an amount equal to the
taxable portion of the benefit, but not more than the aggregate balance then
credited to all of the Participant's Accounts. Distribution shall be made not
later than 90 days after the date a request is granted by the Committee. Such a
distribution shall reduce applicable Account balances and the benefits to be
paid under this Plan.

4.7      WITHHOLDING

         The Company or the Trustee shall withhold from any distribution to a
Participant or Beneficiary all federal, state and local income, employment and
other taxes required to be withheld from such distribution, in amounts and in a
manner determined in the discretion of the Company or Trustee.

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4.8      DEDUCTIONS

         Prior to a Change of Control, the Company may deduct from any
distribution to a Participant or Beneficiary any amounts due from the
Participant to the Company.

                          V.   BENEFICIARY DESIGNATION

         Each Participant shall have the right to designate one or more
Beneficiaries (including primary and contingent Beneficiaries) to receive any
benefits payable under the Plan. A Participant shall have the right to change a
Beneficiary by completing a new beneficiary designation on a form approved by
the Committee.

         If a Participant fails to designate a Beneficiary or if all designated
Beneficiaries predecease the Participant or die prior to complete distribution
of the Participant's benefits, then payment shall be made as required under the
Participant's will; or, in the event there is no will under applicable state
law, then to the persons who, at the date of the Participant's death, would be
entitled to share in the distribution of the deceased Participant's estate under
applicable state law then in force governing the decedent's intestate property.

                              VI.   ADMINISTRATION

6.1      COMMITTEE DUTIES

         This Plan shall be administered by a Committee, which shall consist of
the Board, or such committee as the Board may appoint. Members of the Committee
may be Participants. The Committee shall have the discretion and authority,
subject to Section 7.2, to make amendments to this Plan or in its discretion it
may recommend amendments to the Board for its action. The Committee shall have
the discretion and authority to make, amend, interpret and enforce appropriate
rules and regulations for the administration of this Plan and to decide or
resolve, in its discretion, any and all questions involving interpretation of
the Plan. Any individual serving on the Committee who is a Participant shall not
vote or act on any matter relating solely to himself or herself. When making a
determination or calculation, the Committee shall be entitled to rely on
information furnished by a Participant or by the Company.

6.2      ADMINISTRATIVE COMMITTEE; AGENTS

         The Committee may, from time to time, appoint an Administrative
Committee and delegate to the Administrative Committee such duties and
responsibilities (including the authority to make ministerial or administrative
amendments to this Plan) with respect to the Plan as the Committee may
determine. The Committee, and the Administrative Committee, may employ agents
and delegate to them such duties as either Committee sees fit (including acting
through a duly appointed representative) and may from time to time consult with
counsel who may be counsel to the Company.

                                      -11-
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6.3      BINDING EFFECT OF DECISIONS

         The decisions or actions of the Committee, and of the Administrative
Committee, with respect to the administration, interpretation and application of
the Plan and the rules and regulations hereunder shall be final and conclusive
and shall be binding upon all persons having any interest in the Plan.

6.4      INDEMNITY OF COMMITTEE AND ADMINISTRATIVE COMMITTEE

         The Company shall indemnify and hold harmless the members of the
Committee, the Administrative Committee, and any agent or employee to whom the
duties of the Committee or the Administrative Committee may be delegated,
against any and all claims, losses, damages, expenses or liabilities arising
from any action or failure to act with respect to this Plan, except in the case
of willful misconduct.

                  VII.   TERMINATION; AMENDMENT OR MODIFICATION

7.1      TERMINATION

         Although the Company anticipates that the Plan will continue for an
indefinite period of time, it reserves the right to terminate the Plan at any
time with respect to any or all Participants. Upon termination, the Accounts of
the affected Participants shall be paid pursuant to the Participants' election
or, at the discretion of the Company, in a lump sum.

         Termination of the Plan shall not adversely affect the rights under the
Plan of any Participant or Beneficiary who has become entitled to the payment of
any Plan benefits as of the date of termination. The Company shall, however,
have the right to accelerate installment payments without a premium or
prepayment penalty by paying the Account Balance in a single distribution.

7.2      AMENDMENT OR MODIFICATION

         The Company may, at any time, amend or modify the Plan in whole or in
part; provided, that no amendment or modification shall decrease the balances of
a Participant's Accounts. No amendment or modification of the Plan shall affect
the rights of any Participant or Beneficiary who has become entitled to the
distribution of benefits under the Plan as of the date of the amendment or
modification. The Company shall, however, have the right to accelerate
installment payments by paying amounts then credited to the Accounts in a single
distribution without a premium or prepayment penalty.

                                      -12-
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                                  VIII.   TRUST

8.1      TRUST ASSETS

         The Company may transfer to the Trust such assets as it determines, in
its sole discretion, are necessary or appropriate to provide for its liabilities
under the Plan. In the event of a Change of Control, the Company shall, as soon
as possible, but in no event longer than 30 days following the Change of
Control, make irrevocable contributions to the Trust in amounts that are
sufficient to pay the Participants or Beneficiaries the benefits to which the
Participants or their Beneficiaries would be entitled pursuant to the terms of
the Plan as of the date on which the Change of Control occurred, including
benefits that vest under the Plan as a result of the Change of Control. The
Company is entitled at any time or times prior to a Change of Control, in its
sole discretion, to substitute assets of equal fair market value for any assets
held in the Trust.

8.2      ENFORCEMENT OF FUNDING

         If following a Change of Control, irrevocable contributions to the
Trust have not been made as required in Section 8.1 hereof, any Participant or
Beneficiary shall have the right to seek specific performance from the Company
of its obligation to make such contributions. The Company consents to the
jurisdiction of the district courts of the State of Minnesota to determine any
action for such specific performance.

8.3      MISCELLANEOUS

         The provisions of the Plan shall govern the rights of a Participant to
receive distributions pursuant to the Plan. The provisions of the Trust shall
govern the rights of the Company, Participants and the creditors of the Company
to any assets held by the Trust. The Company's obligations under this Plan may
be satisfied with Trust assets distributed pursuant to the terms of the Trust,
and the Company's obligations under the Plan shall be reduced to the extent of
any such distributions.

                               IX.   MISCELLANEOUS

9.1      STATUS OF PLAN

         The Plan is intended to be a plan that is not qualified within the
meaning of Section 401(a) of the Code and that is unfunded and maintained by an
employer primarily for the purpose of providing deferred compensation for a
select management group, within the meaning of ERISA Sections 201(2), 301(a)(3)
and 401(a)(1). The Plan shall be administered and interpreted in a manner
consistent with that intent.

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9.2      UNSECURED GENERAL CREDITOR

         Participants and their Beneficiaries, heirs, successors and assigns
shall have no legal or equitable rights, interests or claims in any property or
assets of the Company or of the Trust. For purposes of the payment of benefits
under this Plan, any and all of the Company's assets including any assets of the
Trust shall be, and remain until paid, the general, unpledged unrestricted
assets of the Company. The Company's obligation under the Plan shall consist
solely of an unfunded and unsecured promise to pay money in the future.

9.3      NONASSIGNABILITY

         Neither a Participant nor a Beneficiary nor any other person shall have
any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or
otherwise encumber, transfer, hypothecate, alienate or convey in advance of
actual receipt, the amounts, if any, payable hereunder, or any part thereof. All
of such rights are expressly declared to be unassignable and nontransferable.
None of the amounts payable under the Plan shall, prior to actual payment, be
subject to seizure, attachment, garnishment or sequestration for the payment of
any debts, judgments, alimony or separate maintenance owed by a Participant or
any other person, be transferable by operation of law in the event of a
Participant's or any other person's bankruptcy or insolvency or be transferable
to a spouse as a result of a property settlement or otherwise.

9.4      DISCHARGE OF OBLIGATIONS

         The payment of benefits under the Plan to a Beneficiary shall fully and
completely discharge the Company and the Committee from all further obligations
under this Plan with respect to the Participant and any other Beneficiary.

9.5      NOT A CONTRACT OF EMPLOYMENT

         The terms and conditions of this Plan shall not constitute a contract
of employment between the Company and the Participant. Nothing in this Plan
shall be deemed to give a Participant the right to be retained as a Director of
the Company or a Consultant to the Company, or interfere with the right of the
Company to sever its relationship with the Participant at any time.

9.6      GOVERNING LAW

         This Plan and Deferral Elections 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 to the substantive law of
another jurisdiction, to the extent not superseded by ERISA.

                                      -14-
<PAGE>   16

9.7      NOTICE

         Any notice or filing required or permitted to be given to the Committee
under this Plan shall be sufficient if in writing and hand-delivered, or sent by
registered or certified mail or by facsimile, to the address below:

                               Corporate Secretary
                                The Toro Company
                            8111 Lyndale Avenue South
                          Bloomington, Minnesota 55420

Such notice shall be deemed given as of the date of delivery or, if delivery is
made by mail, as of the date shown on the postmark on the receipt for
registration or certification.

         Any notice or filing required or permitted to be given to a Participant
under this Plan shall be sufficient if in writing and hand-delivered, or sent by
mail, to the last known address of the Participant.

9.8      SUCCESSORS

         The provisions of this Plan shall bind and inure to the benefit of the
Company and its successors and assigns and the Participant and the Participant's
designated Beneficiaries.

9.9      VALIDITY

         If any provision of this Plan shall be found to be illegal or invalid
for any reason, such illegality or invalidity shall not affect the remaining
parts hereof, but this Plan shall be construed and enforced as if such illegal
or invalid provision had never been inserted herein.

9.10     COURT ORDER

         The Committee is authorized to make any payments directed by court
order. If a court determines that a spouse or former spouse of a Participant has
an interest in the Participant's benefits under the Plan in connection with a
property settlement or otherwise, the Committee, in its sole discretion, shall
have the right, notwithstanding any election made by a Participant, to
immediately distribute the spouse's or former spouse's interest in the
Participant's benefits under the Plan to that spouse or former spouse.

                                      -15-
<PAGE>   17

9.11     NO ASSURANCE OF TAX CONSEQUENCES

         Neither the Company nor the Board nor any other person guarantees or
assures a Participant or Beneficiary of any particular federal or state income
tax, payroll tax, or other tax consequence of participation in this Plan. A
Participant should consult with professional tax advisors regarding all
questions related to the tax consequences of participation.

         IN WITNESS WHEREOF, the Company has signed this Plan document as of
July 20, 2000.

                                   THE TORO COMPANY

                                   By
                                           -------------------------------------
                                   Title
                                           -------------------------------------

<TABLE>
<CAPTION>
Plan History                        Action
------------                        ------
<S>                                 <C>
January 1, 1999                     Effective Date (adopted by Board of Directors on
                                    November 18, 1998)

July 20, 2000                       Amendment to permit deferral of stock grants and awards
                                    and to create retirement accounts for accrued benefits
                                    under the Non-Employee Directors Retirement Plan, to be
                                    terminated on October 31, 2000

</TABLE>

                                      -16-<PAGE>   1
                                                                    EXHIBIT 4(d)

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

                             CMS ENERGY CORPORATION

                               STOCK PURCHASE PLAN

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

                                       1
<PAGE>   2

<TABLE>
<S>                                                                           <C>
ARTICLE I - Definitions........................................................3
ARTICLE II - Participation.....................................................8
ARTICLE III - Dividend Reinvestment and Stock Purchase........................10
ARTICLE IV - Safekeeping Services for Deposited Common Stock..................14
ARTICLE V - Sale of Account Shares; Gift or Transfer of Account Shares........14
ARTICLE VI - Eligible Securities..............................................16
ARTICLE VII - Treatment of Accounts...........................................16
ARTICLE VIII - Certificates and Fractional Shares.............................20
ARTICLE IX - Concerning the Plan..............................................20
ARTICLE X - Administration of the Plan........................................21
ARTICLE XI - Plan Account.....................................................22
ARTICLE XII - Miscellaneous Provision.........................................22
</TABLE>

                                       2
<PAGE>   3

As of July 28, 2000, CMS Energy Corporation, a Michigan corporation (the
"Corporation"), hereby amends and restates its CMS Energy Corporation Stock
Purchase Plan, as amended and restated effective July 28, 1995 (the "Plan"):

The Corporation desires to amend and restate the Plan to include more frequent
and greater stock purchase opportunities and services in an effort to enhance
its attractiveness to investors in all classes of the Corporation's common
stock; and

The purpose of the Plan is to provide interested investors and holders of common
stock of the Corporation and/or preferred stock of its subsidiary, Consumers
Energy Company, a convenient, economical means of increasing their investment in
the Corporation through (i) regular investment of cash dividends paid, (ii)
optional cash investments and/or (iii) initial cash investments in shares of the
Corporation's Common Stock.

                            ARTICLE I - DEFINITIONS

The terms defined in this Article I shall, for all purposes of this Plan, have
the following respective meanings:

Account

The term "Account" shall mean, as to any Participant, the account maintained by
the Administrator evidencing (i) the shares (and/or fractional shares) of Common
Stock (a) purchased through the Plan and/or (b) deposited by such Participant
into the Plan pursuant to Section 4.1 hereof, and credited to such Participant
and (ii) cash held in the Plan pending investment in Common Stock for such
Participant.

Account Shares

The term "Account Shares" shall mean all shares (and/or fractional shares) of
Common Stock credited to the Account of a Participant by the Administrator,
which shall include shares deposited into the Plan pursuant to Section 4.1
hereof.

                                       3
<PAGE>   4

Administrator

The term "Administrator" shall mean the individual (who may be an employee of
the Corporation), bank, trust company or other entity (including the
Corporation) appointed from time to time by the Corporation to act as
Administrator hereunder.

Authorization Form

The term "Authorization Form" shall mean the documentation that the
Administrator (i) shall require to be completed and received prior to an
investor's enrollment in the Plan pursuant to Section 2.2 or 2.3 hereof or a
Participant's changing his options under the Plan pursuant to Section 7.1
hereof, and (ii) may require to be completed and received prior to an optional
cash investment pursuant to Section 2.4 hereof.

Automatic Investment Authorization Form

The term "Automatic Authorization Form" shall mean the documentation that the
Administrator may require to be completed and received prior to an optional cash
investment pursuant to Section 2.4 hereof.

CMS Energy Common Stock

The term "CMS Energy Common Stock" shall mean of common stock, $.01 par value,
of CMS Energy.

Common Stock

The term "Common Stock," shall include (i) CMS Energy Common Stock, or (ii) any
other class of common stock issued by the Corporation.

Corporation

The term "Corporation" shall mean CMS Energy Corporation.

                                       4
<PAGE>   5

Corporation Share Purchase Price

The term "Corporation Share Purchase Price," when used with respect to newly
issued shares of Common Stock, shall mean the average of the closing sales
prices, of that Common Stock computed to three decimal places, as reported on
the NYSE for the last three Trading Days preceding the purchase date.

Direct Deposit Authorization Form

The term "Direct Deposit Authorization Form" shall mean the documentation that
the Administrator shall require to forward non-reinvested Dividends to the
Participant's pre-designated bank, savings or credit union account pursuant to
Section 7.7 hereof.

Dividend

The term "Dividend" shall mean cash dividends paid on Common Stock or Preferred
Stock.

Dividend Payment Date

The term "Dividend Payment Date" shall mean a date on which a cash dividend on
shares of Common Stock or Preferred Stock is paid.

Eligible Securities

The term "Eligible Securities" shall mean those securities of the Corporation
and its Subsidiaries, whether issued prior to, on or after the date hereof, set
forth in Section 6.1 hereof, and such other securities the Corporation may
designate, in its sole discretion, pursuant to Section 6.2 hereof.

Employee

The term "Employee" shall mean all employees (including part-time employees but
excluding temporary and contract employees) of the Corporation and its
subsidiaries.

                                       5
<PAGE>   6

Exchange Act

The term "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended, and the rules and regulations thereunder.

Foreign Person

The term "Foreign Person" shall mean a Person that is a citizen or resident of,
or is organized or incorporated under, or has its principal place of business
in, a country other than the United States, its territories and possessions.

Independent Agent

The term "Independent Agent" shall mean an agent independent of the Corporation
who satisfies applicable legal requirements (including, without limitation, the
requirements of Regulation M promulgated under the Exchange Act) and who has
been selected by the Corporation, pursuant to Section 10.6 hereof, to serve as
an Independent Agent for purposes of making purchases and sales of Common Stock
under the Plan.

Investments

The term "Investments" shall mean deposit of common stock into the Plan, initial
payments or optional payments to purchase Common Stock through the Plan. (These
can be automatic deductions from bank accounts, personal checks, money orders
and other forms of U.S. funds payable to the CMS Stock Plan.)

Investment Date

The term "Investment Date" shall mean at least weekly (generally on Wednesday),
the first Trading Day of the month (or as soon as practicable thereafter), and
as soon as practicable after each Common Stock dividend payment date.

Market Share Purchase Price

                                       6
<PAGE>   7

The term "Market Share Purchase Price," when used with respect to shares of
Common Stock purchased in the open market, shall mean the weighted average
purchase price per share of the aggregate number of shares of each class
purchased in the open market for an Investment Date (excluding any related
brokerage commissions). The Corporation will pay all related brokerage
commissions and service fees, however, the Participant will be responsible for
all applicable taxes.

Market Share Sales Price

The term "Market Share Sales Price," when used with respect to shares of Common
Stock sold under the Plan, shall mean the weighted average sales price per share
(less brokerage fees and commissions, any related service charges and any
transfer taxes) of the aggregate number of shares of each class sold in the open
market for the relevant period.

Maximum Amount

The term "Maximum Amount" shall mean $250,000 per class of Common Stock per
calendar year.

NYSE

The term "NYSE" shall mean the New York Stock Exchange.

Participant

The term "Participant" shall mean a participant in the Plan.

Person

The term "Person" shall mean any individual, corporation, partnership, limited
liability company, joint venture, association, joint-stock company, trust,
estate or unincorporated organization.

Plan

The term "Plan" shall mean the CMS Energy Corporation Stock Purchase Plan.

                                       7
<PAGE>   8

Preferred Stock

The term "Preferred Stock", shall mean the preferred stock of Consumers Energy
Company.

Request Form

The term "Request Form" shall mean the documentation that the Administrator
shall require to be completed and received prior to a Participant's (i) sale of
Account Shares pursuant to Section 5.1 hereof, (ii) gift or transfer of Account
Shares pursuant to Section 5.2 hereof, (iii) withdrawal of whole Account Shares
pursuant to Section 7.2 hereof (unless such Participant will be the record
holder of such Account Shares after withdrawal), (iv) termination of
participation in the Plan pursuant to Section 7.3 hereof, and (v) safekeeping of
shares pursuant to Section 4.1 hereof.

Statement of Account

The term "Statement of Account" shall mean a written statement prepared by the
Administrator and sent to each Participant which reflects (i) current
transactions completed under the Plan, (ii) the number of Account Shares
credited to such Participant's Account at the date of such statement, (iii) the
amount of cash, if any, credited to such Participant's Account pending
investment at the date of such statement and (iv) such additional information
regarding such Participant's Account as the Administrator may determine to be
pertinent to the Participant.

Trading Day

The term "Trading Day" shall mean any day on which trades are reported on the
NYSE.

A pronoun or adjective in the masculine gender includes the feminine gender, and
the singular includes the plural, unless the context clearly indicates
otherwise.

                           ARTICLE II - PARTICIPATION

Section 2.1. Participation. Any Person, whether or not a record holder of Common
Stock, may elect to participate in the Plan; provided, however, that if such
Person is a Foreign Person, he must provide

                                       8
<PAGE>   9

evidence satisfactory to the Administrator that his participation in the Plan
would not violate local laws applicable to the Corporation, the Plan or such
Foreign Person.

An election by a Person to participate in the Plan shall be made by completing
and returning to the Administrator an Authorization Form and (i) electing to
have Dividends on Eligible Securities of which such Person is the record holder
invested in the appropriate class of Common Stock pursuant to Section 2.2
hereof, (ii) depositing certificates representing Common Stock of which such
person is the record holder into the Plan pursuant to Section 4.1 hereof or
(iii) making an initial Investment pursuant to Section 2.3 hereof.

Any Person who has met such requirements and has made and not revoked such
election is herein referred to as a "Participant." A Participant may elect to
participate in any or all of the forms of investment provided in Sections 2.2
through 2.4 hereof by submitting an Authorization Form designating such election
to the Administrator; provided, however, that a Participant may elect to make
optional Investments pursuant to Section 2.4 hereof or utilize the Plan's
safekeeping services provided in Section 4.1 hereof by submitting to the
Administrator a completed optional Investment stub attached to a Statement of
Account in lieu of an Authorization Form.

Section 2.2. Dividend Reinvestment. A Participant may elect to have all or a
portion of any Dividend on his Preferred Stock or Common Stock invested in
shares (and/or fractional shares) of the appropriate class of Common Stock to be
credited to his Account in lieu of receiving such Dividend directly. Any
Dividends payable on CMS Energy Common Stock or on Preferred Stock will be
invested only in CMS Energy Common Stock. If the shareholders authorize, and the
Corporation issues, shares of any additional class or classes of Common Stock,
any Dividend payable upon such class or classes will be invested only in the
same class of Common Stock. If a Participant elects to reinvest only a portion
of the Dividends received on shares of Common Stock or Preferred Stock, that
portion of such Dividends not reinvested in Common Stock will be sent to the
Participant by check in the manner otherwise associated with payment of such
Dividends or by electronic direct deposit if the Participant has elected the
direct deposit option provided in Section 7.7 hereof.

Section 2.3. Initial Investment. A Person not already a Participant may become a
Participant by making an initial Investment of at least $500 per class of Common
Stock being invested in accompanied by a completed Authorization Form. (This
$500 minimum will be waived if a Person enrolls for automatic investment of at
least $100 per month.) A Person who is already a registered shareholder of
Common

                                       9
<PAGE>   10

Stock, may become a Participant by completing and returning an Authorization
Form. Other than automatic deductions, payments shall be received by personal
check or money order payable to CMS Stock Plan. Automatic investment
instructions for an initial Investment must be received 10 days prior to the
last business day of the month. Such payment will be invested in the class of
Common Stock indicated on the Authorization Form, provided, however, that if no
class of Common Stock is indicated on the Authorization Form, the initial
Investment will be invested in CMS Energy Common Stock. An Employee not already
a Participant may become a Participant by electing payroll deductions and
completing an employee payroll deduction authorization form authorizing payroll
deductions of at least $6.25 per pay period for employees paid weekly and at
least $12.50 per pay period for employees paid semi-monthly.

Section 2.4. Optional Investments. A Participant may elect to make cash payments
at any time or from time to time, to the Plan, by personal check or money order
payable to CMS Stock Plan, or through automatic deductions from an account at a
bank or other financial institution (generally on the last banking day of each
month) for investment in Common Stock pursuant to Section 3.4 hereof; provided,
however, that any Participant who elects to make optional Investments pursuant
to this Section 2.4 must invest at least $25 for any single investment and may
not invest more than the Maximum Amount. For purposes of determining whether the
Maximum Amount has been reached, initial Investments shall be counted as
optional Investments. A Participant may elect to purchase any class of Common
Stock by making such optional Investments, but each single investment must be at
least $25 per class of Common Stock. Optional Investments will be applied to the
currently held class of Common Stock unless otherwise indicated. If the
Participant holds more than one class of Common Stock, and no designation is
made, the funds will be applied to CMS Energy Common Stock. Participants can
elect automatic deductions of optional Investments by completing and returning
the Automatic Investment Authorization Form at least 10 days before the end of
the month.

             ARTICLE III - DIVIDEND REINVESTMENT AND STOCK PURCHASE

Section 3.1. Dividend Reinvestment. Dividends as to which reinvestment has been
elected by a Participant shall be paid to the Administrator or its nominee on
behalf of such Participant. Dividends shall be reinvested, at the Corporation's
election, in either (i) newly issued shares of Common Stock purchased from the
Corporation, or (ii) shares of Common Stock purchased in the open market.

                                       10
<PAGE>   11

Section 3.2. Dividend Reinvestment in Newly Issued Shares. Dividend reinvestment
in newly issued shares of Common Stock shall be governed by this Section 3.2. On
an Investment Date with respect to which the Corporation elects to issue new
shares to the Plan in order to effect the reinvestment of Dividends, the
Corporation shall issue to the Administrator upon the Corporation's receipt of
the funds described in (a) below, for crediting by the Administrator to the
Account of a Participant, a number of shares (and/or fractional shares rounded
to three decimal places) of Common Stock equal to (a) the amount of any
Dividends paid to the Administrator on behalf of such Participant since the
preceding Investment Date plus the amount of any Dividends paid to the
Administrator on behalf of such Participant on such Investment Date divided by
(b) the Corporation Share Purchase Price with respect to the Investment Date.
Such shares shall be issued or sold to, and registered in the name of, the
Administrator or its nominee as custodian for such Participants. No interest
shall be paid on Dividends held pending reinvestment pursuant to this Section
3.2.

Section 3.3. Dividend Reinvestment in Shares Purchased in the Open Market.
Dividend reinvestment in shares of Common Stock purchased in the open market
shall be governed by this Section 3.3. On an Investment Date with respect to
which the Corporation elects to effect reinvestment of Dividends in shares of
Common Stock purchased in the open market, the Administrator shall (if it is an
Independent Agent), or shall cause an Independent Agent to, apply the amount of
any Dividends paid to the Administrator on behalf of the Participants since the
preceding Investment Date plus the amount of any Dividends paid to the
Administrator on behalf of the Participants on such Investment Date to the
purchase of shares of Common Stock in the open market. Purchases in the open
market pursuant to this Section 3.3 and Subsection 3.4.2 hereof may be, but are
not required to be, made on the applicable Investment Date and should be
completed as soon as practicable thereafter, or at a later date as necessary or
advisable under applicable law, including without limitation any federal
securities laws. Any Dividends to be reinvested in shares of Common Stock
purchased in the open market pursuant to this Section 3.3 and Subsection 3.4.2
hereof not reinvested in shares of Common Stock within 35 days of receipt by the
Administrator, or, if the Corporation is not the Administrator, by the
Corporation, shall be promptly returned to the Participant by First Class Mail
at his address of record. Open market purchases pursuant to this Section 3.3 and
Subsection 3.4.2 hereof may be made on any securities exchange on which the
Common Stock is traded, in the over-the-counter market or by negotiated
transactions, and may be upon such terms and subject to such conditions with
respect to price and delivery to which the Independent Agent (including the
Administrator if it is also an Independent Agent) may agree. With regard to open
market purchases of shares of Common Stock pursuant to this Section 3.3 and
Subsection 3.4.2 hereof, none of the Corporation, the Administrator (if it is
not also serving as the Independent Agent) or any

                                       11
<PAGE>   12

Participant shall directly or indirectly have any authority or power to control,
influence or direct the time, amounts, manner or price at which shares of Common
Stock may be purchased, the markets on which such shares are to be purchased
(including on any securities exchange, in the over-the-counter market or in
negotiated transactions) or the selection of the broker or dealer (other than
the Independent Agent) through or from whom purchases may be made, except that
the timing of such purchases must be made in accordance with the terms and
conditions of the Plan. For the purpose of making, or causing to be made,
purchases of shares of Common Stock pursuant to this Section 3.3 and Subsection
3.4.2 hereof, and sales of Account Shares pursuant to Section 5.1 hereof, the
Independent Agent shall be entitled to commingle each Participant's funds with
those of all other Participants and to offset purchases of shares of Common
Stock against sales of shares of Common Stock to be made for Participants,
resulting in a net purchase or a net sale of shares. The number of shares
(and/or fractional shares rounded to three decimal places) of Common Stock that
shall be credited to a Participant's Account with respect to an Investment Date
to which this Section 3.3 applies shall be equal to (a) (i) the amount of any
Dividends paid to the Administrator on behalf of such Participant since the
preceding Investment Date plus (ii) the amount of any Dividends paid to the
Administrator on behalf of such Participant on such Investment Date less (iii)
any Dividends to be returned to such Participant pursuant to this Section 3.3
divided by (b) the Market Share Purchase Price with respect to such Investment
Date. Such shares shall be registered in the name of the Administrator or its
nominee as custodian for the Participants. No interest shall be paid on
Dividends held pending reinvestment pursuant to this Section 3.3.

Section 3.4. Optional and Initial Investments. Any optional and initial
Investments received by the Administrator from a Participant at least one
business day prior to an Investment Date shall be made, beginning on such
Investment Date, in either (i) newly issued shares of Common Stock in the manner
provided in Subsection 3.4.1 hereof, or (ii) Common Stock purchased in the open
market in the manner provided in Subsection 3.4.2 hereof. Optional and initial
Investments not received by the Administrator by the business day prior to an
Investment Date need not be invested on such Investment Date; provided, however,
that any such optional and initial Investments not invested on such Investment
Date shall be invested beginning on the next succeeding Investment Date.
Optional and initial Investments not invested in Common Stock within 35 days of
receipt shall be promptly returned to the Participant. No interest shall be paid
on optional and initial Investments held pending investment pursuant to this
Section 3.4.

Subsection 3.4.1 Newly Issued Shares. On an Investment Date with respect to
which the Corporation elects to issue new shares of Common Stock to the Plan in
order to effect the investment of optional and initial Investments, the
Corporation shall issue to the Administrator upon the Corporation's receipt of
the

                                       12
<PAGE>   13

funds described in (a) below, for crediting by the Administrator to the Account
of a Participant, a number of shares (and/or fractional shares rounded to three
decimal places) of Common Stock equal to (a) the amount of any optional and/or
initial Investments received by the Administrator from such Participant since
the preceding Investment Date (excluding any amounts received from such
Participant on the business day of such Investment Date but including any
amounts received from such Participant on the preceding Investment Date that
were not invested on the preceding Investment Date as set forth in Section 3.4
hereof) divided by (b) the Corporation Share Purchase Price with respect to the
Investment Date. Such shares shall be issued or sold to, and registered in the
name of, the Administrator or its nominee as custodian for the Participants.

Subsection 3.4.2 Shares Purchased in the Open Market. On an Investment Date with
respect to which the Corporation elects to effect the investment of optional and
initial Investment in shares of Common Stock purchased in the open market, the
Administrator shall forward to the Independent Agent funds equaling (i) the
amount of any optional and/or initial Investments received by the Administrator
from Participants and dividends to which reinvestment has been elected by
Participants since the preceding Investment Date (excluding any amounts received
from Participants on the business day of such Investment Date but including any
amounts received from Participants on the preceding Investment Date as set forth
in Section 3.4 hereof) less (ii) any optional and/or initial Investments to be
returned to Participants pursuant to Section 3.4 and any Dividends to be
reinvested to be returned to Participants pursuant to Section 3.3, for purchase
of Common Stock in the open market. Such purchases shall be made in the manner
set forth in this Article III. Such shares shall be registered in the name of
the Administrator or its nominee as custodian for the Participants.

Subsection 3.4.3 Request to Stop Investment. If a written request to stop an
optional or initial Investment is received by the Administrator from a
Participant by the business day before the next Investment Date, any optional or
initial Investments from such Participant then held by the Administrator shall
not be used to purchase Common Stock and shall be returned to such Participant.
If such a request is not received by the Administrator by the business day prior
to an Investment Date, any such optional and/or initial Investments shall be
used to purchase shares of Common Stock for such Participant's Account.

                                       13
<PAGE>   14

          ARTICLE IV - SAFEKEEPING SERVICES FOR DEPOSITED COMMON STOCK

Section 4.1. Deposited Common Stock. A Participant may elect to have
certificates representing shares of Common Stock of which the Participant is the
record holder deposited into the Plan by completing a Request Form and
delivering such certificates and Request Form to the Administrator. Shares of
Common Stock so deposited shall be transferred into the name of the
Administrator or its nominee and credited to the depositing Participant's
Account. Dividends paid on shares of Common Stock deposited into the Plan
pursuant to this Section 4.1 will be reinvested in the same manner as shares of
Common Stock purchased under the Plan and credited to a Participant's account.
If no other shares of Common Stock are credited to the Participant's Account,
the Dividends will be fully reinvested unless a completed Authorization Form
designates a different election.

Section 4.2. Withdrawal of Common Stock Deposited Pursuant to Section 4.1.
Shares of Common Stock deposited pursuant to Section 4.1 hereof may be withdrawn
from the Plan pursuant to Section 7.2 hereof.

     ARTICLE V - SALE OF ACCOUNT SHARES; GIFT OR TRANSFER OF ACCOUNT SHARES

Section 5.1. Sale of Account Shares. A Participant may request, at any time,
that all or a portion of his Account Shares be sold by delivering to the
Administrator a completed Request Form to that effect. The Administrator (if it
is not also an Independent Agent) shall forward such sale instructions to the
Independent Agent as soon as practicable once each week. (The intent is to
forward sale instructions to the Independent Agent once each week.) The
Independent Agent shall generally make such sales weekly or as soon as
practicable (in accordance with stock transfer requirements and federal and
state securities laws) after processing such sale instructions. As soon as
practicable following the receipt of proceeds from such sale, the Administrator
shall mail by First Class Mail to such Participant at his address of record a
check in an amount equal to (a) the Market Share Sales Price multiplied by (b)
the number of his Account Shares sold.

If instructions for the sale of shares of Common Stock on which Dividends are
not being reinvested are received by the Administrator on or after the record
date relating to a Dividend Payment Date but before the Dividend Payment Date,
the sale will be processed as described above and a separate check for the
Dividends will be mailed to the Participant following the Dividend Payment Date
or will be directly deposited into the Participant's designated direct deposit
account pursuant to Section 7.7 hereof. If

                                       14
<PAGE>   15

instructions for the sale of shares of Common Stock on which Dividends are being
reinvested are received by the Administrator on or after the record date
relating to a Dividend Payment Date but before the Investment Date, and (i) if
the Participants' sale instructions cover less than all of the shares of Common
Stock credited to their Accounts, the sale will be processed as described above
in the immediately preceding paragraph, the Dividends will be invested and the
newly purchased shares will be credited to their Accounts or (ii) if the
Participants' sale instructions cover all of the shares of Common Stock credited
to their Accounts, the sale instructions will be processed and a check for the
Dividend will be provided.

With regard to open market sales of Account Shares pursuant to this Section 5.1,
none of the Corporation, the Administrator (if it is not also serving as the
Independent Agent) or any Participant shall directly or indirectly have any
authority or power to control, influence or direct the time, amounts, manner or
price at which shares of Common Stock may be sold, the markets on which such
shares are to be sold (including on any securities exchange, in the
over-the-counter market or in negotiated transactions) or the selection of the
broker or dealer (other than the Independent Agent) through or from whom sales
may be made, except that the timing of such sales must be made in accordance
with the terms and conditions of the Plan.

Section 5.2. Gift or Transfer of Account Shares. A Participant may elect to
transfer (whether by gift, private sale or otherwise) ownership of all or a
portion of his Account Shares to the Account of another Participant or establish
an Account for a Person not already a Participant by delivering to the
Administrator a completed Request Form to that effect or a stock assignment
(stock power), acceptable to the Administrator.

Account Shares transferred in accordance with the preceding paragraph shall
continue to be registered in the name of the Administrator as custodian and
shall be credited to the transferee's Account. If the transferee is not already
a Participant, an Account shall be opened in the name of the transferee. Unless
otherwise requested by a transferee who is already a Participant on a completed
Authorization Form, the reinvestment of Dividends on such transferred Account
Shares shall be made in proportion to the reinvestment level (i.e., full,
partial or none) of the transferee's other Account Shares. The Administrator
shall deliver a Statement of Account to such transferee showing the transfer of
such Account Shares into his Account. The transferor may request that the
Administrator deliver to such transferee a gift certificate. The transferor may
request that the Administrator send the gift certificate directly to such
transferee or request that the Administrator deliver such gift certificate to
the transferor for personal

                                       15
<PAGE>   16

delivery to the transferee. The Administrator shall comply with any such request
of a transferor relating to Statements of Account and/or gift certificates as
soon as practicable following receipt of such request.

If a request for transfer with regard to shares of Common Stock credited to a
Participant's Account on which Dividends are not being reinvested is received on
or after the record date relating to a Dividend Payment Date but before the
Dividend Payment Date, the transfer will be processed as described above, and a
separate check for the Dividend will be mailed to the transferor following the
Dividend Payment Date or will be directly deposited into the transferor's
designated direct deposit account, pursuant to Section 7.7 hereof. If a
completed request for transfer with regard to shares of Common Stock credited to
a Participant's Account on which Dividends are being reinvested is received by
the Administrator on or after the record date relating to the Dividend Payment
Date but before the Investment Date, the Dividends will be invested in Common
Stock through the Plan, and (i) if the Participant's transfer instructions cover
less than all of the shares of Common Stock credited to his Account, the
transfer will be processed as described above in the immediately preceding
paragraph and the newly purchased shares of Common Stock will be credited to the
transferor's Account or (ii) if the Participant's transfer instructions cover
all of the shares of Common Stock credited to his Account, the transfer
instructions will be processed following the Investment Date.

                        ARTICLE VI - ELIGIBLE SECURITIES

Section 6.1. Eligible Securities. The following equity securities of the
Corporation and its subsidiaries shall be Eligible Securities:

                  (i)     Common Stock; and
                  (ii)    Preferred Stock.

Section 6.2. Additional Eligible Securities. The Corporation may from time to
time or at any time designate other debt or equity securities of the Corporation
and its subsidiaries as Eligible Securities by notifying the Administrator in
writing of the designation of such securities as Eligible Securities.

                       ARTICLE VII - TREATMENT OF ACCOUNTS

                                       16
<PAGE>   17

Section 7.1. Changing Plan Options. A Participant may elect to change his Plan
reinvestment levels (i.e., full, partial or none) of Dividends by delivering to
the Administrator written instructions or a new Authorization Form to that
effect. To be effective for a Dividend payment, the Authorization Form must be
received by the Administrator by the business day prior to the record date
relating to such Dividend. If the Authorization Form is not received by the
Administrator by the business day prior to the record date relating to such
Dividend, such instructions shall not become effective until after such payment
date. The shares of Common Stock purchased from the reinvestment of such
Dividend shall be credited to the Participant's Account. After the
Administrator's receipt of effective option changing instructions, Dividends as
to which the reinvestment election has been revoked will be paid in cash or by
direct deposit to the Participant's designated direct deposit account, if such
Participant has elected the direct deposit option pursuant to Section 7.7
hereof.

Section 7.2. Right of Withdrawal. A Participant may, at any time or from time to
time, withdraw from the Plan all or any part (other than fractions) of his
Account Shares by delivering to the Administrator (i) appropriate written
withdrawal instructions to that effect, if such Participant will be the record
holder of such Account Shares after withdrawal or (ii) a completed Request Form
or a stock assignment (stock power) to that effect, if the Participant will not
be the record holder of such Account Shares after withdrawal. Subject to the
limitations described in the immediately following paragraph, as soon as
practicable following the Administrator's receipt of (i) appropriate withdrawal
instructions or (ii) a completed Request Form or a stock assignment (stock
power), as the case may be, which indicates the Participant's desire to withdraw
certain of his whole Account Shares, the Administrator shall mail by First Class
Mail to the Participant at his address of record, or to the address of any
Person that the Participant designated, certificates representing such
designated Account Shares.

If a request for withdrawal with regard to shares of Common Stock credited to a
Participant's Account on which Dividends are not being reinvested is received on
or after the record date relating to a Dividend Payment Date but before the
Dividend Payment Date, the withdrawal will be processed as described above, and
a separate check for the Dividend will be mailed to the Participant following
the Dividend Payment Date or will be directly deposited into the Participant's
designated direct deposit account, pursuant to Section 7.7 hereof. If a
completed request for withdrawal with regard to shares of Common Stock credited
to a Participant's Account on which Dividends are being reinvested is received
by the Administrator on or after the record date relating to the Dividend
Payment Date but before the Investment Date, and (i) if the Participant's
withdrawal instructions cover less than all of the shares of Common Stock
credited to his Account, the withdrawal will be processed as described above in
the immediately

                                       17
<PAGE>   18

preceding paragraph, the Dividends will be invested in Common Stock through the
Plan, and the newly purchased shares of Common Stock credited to his Account or
(ii) if the Participant's withdrawal instructions cover all of the shares of
Common Stock credited to his Account, the withdrawal instructions will be
processed and checks for the Dividends and for the sale of any fractional shares
will be provided.

Withdrawal of Account Shares shall not affect reinvestment of Dividends on the
shares withdrawn unless (i) the Participant is no longer the record holder of
such shares, (ii) such reinvestment is changed by the Participant by delivering
to the Administrator written instructions or an Authorization Form to that
effect pursuant to Section 7.1 hereof or (iii) the Participant has terminated
his participation in the Plan.

Other than transfers pursuant to Section 5.2 hereof, shares of Common Stock
credited to a Participant's Account may not be pledged or assigned.

Section 7.3. Right of Termination of Participation. If a Participant's Request
Form indicates the Participant's desire to terminate his participation in the
Plan, the Administrator shall treat such request as a withdrawal of all of such
Participant's whole Account Shares pursuant to Section 7.2 hereof. The
Administrator, in addition to mailing certificates representing all whole
Account Shares, if any, pursuant to Section 7.2 hereof, shall mail by First
Class Mail to the Participant at his address of record checks for an amount
equal to the sum of (i) the amount of cash credited to such Participant's
Account pending investment in Common Stock and (ii) the cash value of any
fractional shares of Common Stock credited to his Account. Such fractional
shares shall be valued at the closing price on the NYSE for the trading day
immediately preceding the date of termination.

Section 7.4. Stock Splits, Stock Dividends and Rights Offerings. Any shares or
other securities representing stock splits or other non-cash distributions on
Account Shares shall be credited to such Participant's Account. Stock splits,
combinations, re-capitalizations and similar events affecting the Common Stock
shall, as to shares credited to Accounts of Participants, be credited to such
Accounts on a pro rata basis.

In the event of a rights offering, a Participant shall receive rights based upon
the total number of whole shares of Common Stock credited to his Account.

Section 7.5. Shareholder Materials; Voting Rights. The Administrator shall send
or forward to each Participant all applicable proxy solicitation materials,
other shareholder materials or consent solicitation

                                       18
<PAGE>   19
materials. Participants shall have the exclusive right to exercise all voting
rights respecting Account Shares credited to their respective Accounts. A
Participant may vote the Account Shares credited to their respective Account in
person or by proxy. A Participant's proxy card shall represent all Account
Shares and shares of Common Stock of which he is the record holder. Account
Shares shall not be voted unless a Participant or the proxy votes them.

Solicitation of the exercise of Participants' voting rights by the management of
the Corporation and others under a proxy or consent provision applicable to all
holders of Common Stock shall be permitted. Solicitation of the exercise of
Participants' tender or exchange offer rights by management of the Corporation
and others shall also be permitted. The Administrator shall notify the
Participants of each occasion for the exercise of their voting rights or rights
with respect to a tender offer or exchange offer within a reasonable time before
such rights are to be exercised. Such notification shall include all information
distributed to the shareholders of the Corporation by the Corporation regarding
the exercise of such rights.

Section 7.6. Statements of Account. As soon as practicable after any Account
transaction or activity, the Administrator shall send to the Participant a
Statement of Account reflecting (i) current transactions completed under the
Plan, (ii) the number of Account Shares credited to such Participant's Account
at the date of such statement, (iii) the amount of funds, if any credited to
such Participant's Account pending investment at the date of such statement and
(iv) such additional information regarding such Participant's Account as the
Administrator may determine to be pertinent to the Participant. As soon as
practicable following a sale of Account Shares by a Participant, the
Administrator shall deliver a confirmation to such Participant.

Section 7.7. Direct Deposit Option. A Participant may elect to have any
Dividends on Account Shares not being reinvested in Common Stock pursuant to the
Plan paid by electronic direct deposit to the Participant's pre-designated bank,
savings or credit union account. To receive such direct deposit of funds, a
Participant must complete, sign and return a Direct Deposit Authorization Form
to the Administrator. Direct deposit will become effective as soon as
practicable after receipt of a completed Direct Deposit Authorization Form. A
Participant may change his designated direct deposit account by delivering
written instructions or a completed Direct Deposit Authorization Form to the
Administrator.

                                       19
<PAGE>   20

                ARTICLE VIII - CERTIFICATES AND FRACTIONAL SHARES

Section 8.1. Certificates. A Participant may, at any time or from time to time,
request in writing to receive a certificate for all or a portion of his whole
Account Shares and upon such request the Administrator shall promptly mail such
certificate (in any event, within ten business days of the receipt of such
written request) by First Class Mail to such Participant at his address of
record; provided, however, that upon the mailing of such certificate the shares
of Common Stock represented by such certificate shall no longer be Account
Shares but shall remain reinvestment Eligible Securities (except to the extent
such Participant has elected not to have Dividends reinvested in Common Stock).

Section 8.2. Fractional Shares. Fractional shares of Common Stock shall be
credited to Accounts as provided in Article III hereof; provided, however, that
no certificate for fractional shares shall be distributed to any Participant at
any time; and provided, further, that the Corporation shall issue and sell only
whole shares of Common Stock to the Administrator in respect of Dividends
reinvested in, and purchases made by the Administrator hereunder of, newly
issued shares.

                        ARTICLE IX - CONCERNING THE PLAN

Section 9.1. Suspension, Modification and Termination. The Corporation may at
any time and from time to time, at its sole option, suspend, modify, amend or
terminate the Plan, in whole, in part or in respect of Participants in one or
more jurisdictions; provided, however, no such amendment shall decrease the
Account of any Participant or result in a distribution to the Corporation of any
amount credited to the Account of any Participant. Upon complete termination of
the Plan, the Accounts of all Participants (or in the case of partial
termination of the Plan, the Accounts of all affected Participants) shall be
treated as if each such Participant had elected to terminate his participation
in the Plan pursuant to Section 7.3 hereof, except that any fraction of a share
of Common Stock shall be valued as of the trading date immediately preceding the
date on which the Plan is terminated. The Administrator shall promptly send each
affected Participant notice of such suspension, modification or termination.

Section 9.2. Rules and Regulations. The Corporation may from time to time adopt
such administrative rules and regulations concerning the Plan as it deems
necessary or desirable for the administration of the Plan. The Corporation shall
have the power and authority to interpret the terms and the provisions of the

                                       20
<PAGE>   21

Plan and shall interpret and construe the Plan and reconcile any inconsistency
or supply any omitted detail in a manner consistent with the general terms of
the Plan and applicable law.

Section 9.3. Costs. All costs of administration of the Plan shall be paid by the
Corporation. The Participants will bear the cost of any brokerage commissions,
any related service charges and applicable taxes incurred in connection with
open market sales of shares of Common Stock made under the Plan. The Corporation
shall pay any brokerage commissions and charges incurred in connection with any
purchase of shares of Common Stock made under the Plan. Any applicable taxes
incurred in connection with such open market purchase shall be borne by the
Participants.

Section 9.4. Termination of a Participant. If a Participant does not have at
least one whole Account Share, the Participant's participation in the Plan may
be terminated by the Corporation, in its sole discretion, upon written notice to
such Participant by mail at his address of record. Additionally, the
Corporation, in its sole discretion, may terminate any Participant's
participation in the Plan after written notice mailed in advance to such
Participant at his address of record. Upon such termination, the Account of such
Participant shall be treated as if he had elected to terminate his participation
in the Plan pursuant to Section 7.3 hereof, except that any fraction of a share
of Common Stock shall be valued as of the trading date immediately preceding the
date on which such Participant's participation is terminated.

                     ARTICLE X - ADMINISTRATION OF THE PLAN

Section 10.1. Selection of an Administrator. The Administrator shall be
appointed by the Corporation. The Administrator's appointment to serve as such
may be revoked by the Corporation at any time. The Administrator may resign at
any time upon reasonable notice to the Corporation. In the event that no
Administrator is appointed, the Corporation shall be deemed to be the
Administrator for purposes of the Plan. The Corporation is presently the
Administrator.

Section 10.2. Compensation. The officers of the Corporation shall make such
arrangements regarding compensation, reimbursement of expenses and
indemnification of the Administrator and any Independent Agent as they from time
to time deem reasonable and appropriate.

Section 10.3. Authority and Duties of Administrator. The Administrator shall
have the authority to undertake any act necessary to fulfill its duties as set
forth in the various provisions of the Plan. Upon

                                       21
<PAGE>   22

receipt, the Administrator shall deposit all Dividends, optional and initial
Investments in a segregated bank account. The Administrator shall maintain
appropriate records of the Accounts of Participants.

Section 10.4. Liability of the Corporation, the Administrator and Any
Independent Agent. The Corporation, the Administrator and any Independent Agent
shall not be liable for any act done in good faith, or for the good faith
omission to act in administering or performing their duties with respect to the
Plan, including, without limitation, any claim of liability arising out of
failure to terminate a Participant's Account upon such Participant's death prior
to receipt of notice in writing of such death, or with respect to the prices at
which shares are purchased or sold for a Participant's Account and the times
when such purchases and sales are made, or with respect to any loss or
fluctuation in the market value after the purchase or sale of such shares.

Section 10.5. Records and Reports. The Administrator shall keep appropriate
records concerning the Plan, Accounts of Participants, purchases and sales of
Common Stock made under the Plan and Participants' addresses of record and shall
send Statements of Account and confirmations to each Participant in accordance
with the provisions of Section 7.6 hereof.

Section 10.6. Selection of Independent Agent. Any Independent Agent serving in
such capacity pursuant to the Plan shall be selected by the Corporation, and the
Administrator and the Corporation, or either of them, shall, subject to the
provisions of Section 3.3 hereof, make such arrangements and enter into such
agreements with the Independent Agent in connection with the activities
contemplated by the Plan as the Administrator and the Corporation, or either of
them, deem reasonable and appropriate.

Section 10.7. Restriction on Changes to the Plan. The Corporation shall not
change basis for determining the amount of its contributions to the Plan or the
basis for determining the frequency of its allocations to the Plan, or any
formula specified in the Plan that determines the amount or timing of Common
Stock to be purchased by the Independent Agent more than one time in any 3-month
period. Any such exercise of its right to change such aspects of the Plan must
be based on a recorded determination by the Corporation's Board of Directors or
Chief Financial Officer that the Corporation's need to raise capital has
changed, or there is another valid reason for such a change in the capital
structure of the Corporation or of one if its major subsidiaries.

                                       22
<PAGE>   23

                            ARTICLE XI - PLAN ACCOUNT

Section 11.1. Creation of the Plan Account. The Corporation shall establish a
non-interest bearing segregated account at a commercial bank organized under the
laws of the United States or any state, which commercial bank must have assets
in excess of $500,000,000.

Section 11.2. Requirements of the Plan Account. The Plan account must be held
for the benefit of the Participants, and cannot be subject to any liens, any
creditor claims, or any other claims against the Corporation. Furthermore, the
Plan account cannot be subject to bankruptcy proceedings if the Corporation
files for bankruptcy under federal or state law. All Dividends, optional
Investments and initial Investments shall be promptly transmitted by the
Administrator in that certain non-interest bearing account (together with all
Dividends, optional Investments and initial Investments deposited therein from
time to time).

                     ARTICLE XII - MISCELLANEOUS PROVISIONS

Section 12.1. Controlling Law. This Plan shall be construed, regulated and
administered under the laws of the State of Michigan.

Section 12.2. Acceptance of Terms and Conditions of Plan by Participants. Each
Participant, by completing an Authorization Form and as a condition of
participation herein, for himself, his heirs, executors, administrators, legal
representatives and assigns, approves and agrees to be bound by the provisions
of this Plan and any subsequent amendments hereto, and all actions of the
Corporation and the Administrator hereunder.

                                       23

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