Document:

deferredcomp_amend1.htm

    Exhibit
10(a)

      

       

      

       

      

       

      THE
TORO COMPANY

       

      DEFERRED
COMPENSATION PLAN

       

      

       

      

       

      

       

      

       

      

       

      

       

      

       

      

       

      

       

      

       

      Amended
and Restated Effective January 1, 2009

       

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      TABLE
OF CONTENTS

       

       

      Page    

      
        	
                I. DEFINITIONS

              	
                1

              
	
                II.
      ELIGIBILITY AND PARTICIPATION

              	
                4

              
	
                III.
      DEFERRED COMPENSATION

              	
                5

              
	
                    3.1
      Deferral Election

              	
                5

              
	
                    3.2
      Accounts

              	
                5

              
	
                    3.3
      Company Credits

              	
                5

              
	
                IV.
      EARNINGS ON PARTICIPANT ACCOUNTS

              	
                6

              
	
                V.
      DISTRIBUTIONS

              	
                6

              
	
                    5.1
      Available Methods of Distribution

              	
                6

              
	
                    5.2
      Distribution Elections; Absence of a Valid Election

              	
                6

              
	
                    5.3
      Other Distributions

              	
                7

              
	
                    5.4
      Timing of Certain Distributions

              	
                7

              
	
                    5.5
      Limitation on Election of Distribution Method

              	
                7

              
	
                    5.6
      Additional Code Section 409A Limitations

              	
                8

              
	
                VI.
      BENEFICIARY DESIGNATION

              	
                8

              
	
                VII.
      ADMINISTRATION OF THE PLAN

              	
                9

              
	
                    7.1
      Company's Authority

              	
                9

              
	
                    7.2
      Reliance

              	
                9

              
	
                    7.3
      Individual Statements

              	
                9

              
	
                    7.4
      Claims

              	
                9

              
	
                VIII.
      AMENDMENT OR TERMINATION

              	
                11

              
	
                    8.1
      Amendment

              	
                11

              
	
                    8.2
      Termination

              	
                11

              
	
                IX.
      GENERAL PROVISIONS

              	
                12

              
	
                    9.1
      Trust

              	
                12

              
	
                    9.2 No
      Alienation

              	
                12

              
	
                    9.3
      Unfunded Plan

              	
                12

              
	
                    9.4 No
      Guaranty

              	
                12

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                    9.5 No
      Right of Employment

              	
                13

              
	
                    9.6
      Incompetency

              	
                13

              
	
                    9.7
      Corporate Changes

              	
                13

              
	
                    9.8
      Addresses

              	
                13

              
	
                    9.9
      Limitations on Liability

              	
                13

              
	
                    9.10
      Transfers to the Trust

              	
                14

              
	
                    9.11
      Inspection

              	
                14

              
	
                    9.12
      Withholding

              	
                14

              
	
                    9.13
      Singular and Plural

              	
                14

              
	
                    9.14
      Severability

              	
                14

              
	
                    9.15
      Unsecured General Creditor

              	
                15

              
	
                    9.16
      Discharge of Obligations

              	
                15

              
	
                    9.18
      Successors

              	
                15

              
	
                    9.19
      Court Order

              	
                15

              
	
                    9.20 No
      Assurance of Tax Consequences

              	
                15

              
	
                    9.21
      Code Section 409A

              	
                16

              

      

      

      

       

       

      

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      

       

      THE
TORO COMPANY

       

      DEFERRED
COMPENSATION PLAN

       

      Amended
and Restated Effective January 1, 2009

       

      The Toro
Company hereby amends and restates its Deferred Compensation
Plan.  This amendment and restatement is effective for all amounts
deferred on or after January 1, 2005 that remain unpaid as of January 1,
2009.  All grandfathered amounts earned and vested as of December 31,
2004 shall continue to be governed by the 2004 Plan in accordance with then
applicable IRS guidance.  All amounts earned or vested from January 1,
2005 through December 31, 2008 shall be governed by this amendment and
restatement, as modified by the operations of the Plan during such period in
accordance with Code Section 409A and then applicable IRS guidance (including
transition relief).  The Plan is maintained by The Toro Company
primarily for the purpose of providing deferred compensation for a select group
of management or highly compensated employees.  The Plan is unfunded
for purposes of Title I of ERISA.

       

      I.           DEFINITIONS

       

      When used
in the Plan document, the following terms have the meanings indicated unless a
different meaning is plainly required by the context.

       

      "2004 Plan" means the
terms of the Plan in place as of December 31, 2004.

       

      "Beneficiary" means
the person or persons selected by the Participant to receive the benefits
provided under the Plan in the event of the Participant's death.

       

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

       

      "Change of Control"
means:

       

      (a)           
The acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a "Person") of
beneficial ownership (within the meaning of Rule 13d-3 under the Exchange
Act) of 15% or more of either (i) the then-outstanding shares of Common
Stock of the Company (the "Outstanding Company Common Stock") or (ii) the
combined voting power of the then-outstanding voting securities of the Company
entitled to vote generally in the election of directors (the "Outstanding
Company Voting Securities"); provided, however, that for purposes of this
subsection (a), the following acquisitions shall not constitute a Change of
Control: (w) any acquisition directly from the Company, (x) any
acquisition by the Company, (y) any acquisition by any employee benefit
plan (or related trust) sponsored or maintained by the Company or any
corporation controlled by the Company, or (z) any acquisition by any
corporation pursuant to a transaction that complies with clauses (i),
(ii) and (iii) of subsection (c) of this definition;
or

      
        
          
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          1

          
            

          

        

        
           

        

      

       

      (b)           Individuals
who, as of the date hereof, constitute the Board (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 a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board; or

       

      (c)           Consummation
of a reorganization, merger or consolidation of the Company or sale or other
disposition of all or substantially all of the assets of the Company or the
acquisition by the Company of assets or stock of another entity (a "Business
Combination"), in each case, unless, following such Business Combination,
(i) all or substantially all of the individuals and entities who were the
beneficial owners, respectively, of the Outstanding Company Common Stock and
Outstanding Company Voting Securities immediately prior to such Business
Combination beneficially own, directly or indirectly, more than 50% of,
respectively, the then-outstanding shares of common stock and the combined
voting power of the then-outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation
resulting from such Business Combination (including, without limitation, a
corporation that as a result of such transaction owns the Company or all or
substantially all of the Company’s assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination of the Outstanding Company Common
Stock and Outstanding Company Voting Securities, as the case may be,
(ii) no Person (excluding any corporation resulting from such Business
Combination or any employee benefit plan (or related trust) of the Company or
such corporation resulting from such Business Combination) beneficially owns,
directly or indirectly, 15% or more of, respectively, the then-outstanding
shares of common stock of the corporation resulting from such Business
Combination or the combined voting power of the then-outstanding voting
securities of such corporation, except to the extent that such ownership existed
prior to the Business Combination, and (iii) at least a majority of the
members of the board of directors of the corporation resulting from such
Business Combination were members of the Incumbent Board at the time of the
execution of the initial agreement, or of the action of the Board, providing for
such Business Combination; or

       

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

       

      "Code" means the
Internal Revenue Code of 1986, as amended.

       

      "Committee" means the
Compensation and Human Resources Committee of the Board or any successor
committee and its delegates with respect to the Plan.

      
        
          
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          2

          
            

          

        

        
           

        

      

       

      "Common Stock" means
the Company's common stock, par value $1.00 per share, and related preferred
share purchase rights.

       

      "Company" means The
Toro Company, a Delaware corporation.  Except as used in Articles VII
and VIII, "Company" also includes any participating Subsidiary.

       

      "Compensation" means
all amounts received by a Participant from the Company that are subject to
federal income tax withholding; provided that (a) Compensation shall not
include any amount received by a Participant on account of the grant or exercise
of an option to purchase Common Stock, or on account of any other amount
received in connection with The Toro Company Performance Share Plan or successor
plan or otherwise based on the value of Common Stock; (b) Compensation
shall include an amount equal to any reductions in a Participant's gross income
as a result of salary reductions under Section 125, 132(f)(4) or 402(e)(3) of
the Code; and (c) Compensation includes cash payments to which an employee may
be entitled under The Toro Company Annual Management Incentive Plan I or II, or
successor plan.

       

      "Director" means the
person serving as Director of Compensation and Benefits of the
Company.

       

      "Disability" means the
Participant is (a) unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment that can be
expected to result in death or can be expected to last for a continuous period
of not less than 12 months; (b) receiving income replacement benefits for a
period of not less than three months under an accident and health plan covering
Company employees because of any medically determinable physical or mental
impairment that can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months; (c) determined to be
totally disabled by the Social Security Administration or Railroad Retirement
Board; or (d) determined to be disabled in accordance with the Company's Long
Term Disability Plan, provided that such plan's definition complies with
Treasury Regulation Section 1.409A-3(i)(4).

       

      "ERISA" means the
Employee Retirement Income Security Act of 1974, as amended.

       

      "Fiscal Year" means
the fiscal year of the Company, which begins on November 1st and ends on the
following October 31st.

       

      "IRS"
means the Internal Revenue Service.

       

      "Participant" means an
eligible employee who has executed a deferred compensation
agreement.

       

      "Plan" means the
Deferred Compensation Plan, including any amendments thereto.

       

      "Plan Year" means the
calendar year.

      
        
          
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          3

          
            

          

        

        
           

        

      

       

      "Retirement Plan"
means The Toro Company Investment, Savings and Employee Stock Ownership Plan or
any successor or replacement plan.

       

      "Specified Employee"
means a Participant who, as of the date of the Participant's separation from
service for any reason and unless the Company has designated otherwise in
accordance with Treasury Regulation Section 1.409A-1(i), is an elected officer
of the Company.  If a Participant is an elected officer as of
December 31, the Participant shall be treated as a Specified Employee for
the entire 12-month period beginning on the next following
April 1.

       

      “Stable Return Fund
Measure” means the earnings rate paid or credited from time to time on
assets held in the Stable Return Fund under the Retirement Plan.

       

      "Subsidiary" means any
corporation that is a component member of the controlled group of corporations
of which the Company is the common parent.  Controlled group shall be
determined by reference to Section 1563 of the Code but shall include any
corporation described in Section 1563(b)(2) thereof.

       

      "Trust" means the
trust established or maintained by the Company that is used in connection with
the Plan to assist the Company in meeting its obligations under the
Plan.

       

      "Trustee" means the
corporation or individual selected by the Company to serve as Trustee for the
Trust.

       

      "Unforeseeable
Emergency"  means a severe financial hardship to a Participant
resulting from an illness or accident of the Participant, the Participant's
spouse, the Participant's Beneficiary or the Participant's dependent (as defined
in Code Section 152, without regard to Sections 152(b)(1), (b)(2) and
(d)(1)(B)); loss of the Participant's property due to casualty (including the
need to rebuild a home following damage to a home not otherwise covered by
insurance, for example, not as a result of a natural disaster); or other similar
extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Participant.  For example, (a) imminent
foreclosure of or eviction from the Participant's primary residence may
constitute an Unforeseeable Emergency; (b) the need to pay for medical expenses,
including nonrefundable deductibles, as well as for the costs of prescription
drug medications, may constitute an Unforeseeable Emergency; (c) the need to pay
for the funeral expenses of a spouse, a Beneficiary or a dependent (as defined
in Code Section 152, without regard to Sections 152(b)(1), (b)(2) and (d)(1)(B))
may also constitute an Unforeseeable Emergency; and (d) the purchase of a home
and the payment of college tuition are not Unforeseeable
Emergencies.

       

      II.           ELIGIBILITY
AND PARTICIPATION

       

      All
management or highly compensated employees who are at the director level or
above with the Company are eligible to become Participants.

      
        
          
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          4

          
            

          

        

        
           

        

      

       

      An
eligible employee will become a Participant upon submission of a completed
election form, in the form approved by the Committee, to the
Director.

       

      Once an
employee has become a Participant, the Participant's account under the Plan will
remain in effect until distributed as provided herein, even if for any
subsequent Plan Year or portion thereof the employee ceases to meet the
eligibility requirements of this Article II or ceases to be a Participant for
any other reason.

       

      III.           DEFERRED
COMPENSATION

       

      
        	
                3.1

              	
                Deferral
      Election

              

      

       

      (a)           A
Participant may elect to defer Compensation for a calendar year by completing
and submitting a deferral election in a manner and on the form prescribed by the
Committee.  Such election must be submitted to the Director by
December 31 to be effective in the following year.  Notwithstanding
the foregoing, elections to defer cash bonus Compensation, including but not
limited to payments under The Toro Company Annual Management Incentive Plan I or
II, must be made on a Fiscal Year basis.  A Participant may elect to
defer bonus Compensation by completing and submitting a deferral election as
provided above by the end of the Fiscal Year immediately preceding the Fiscal
Year in which the services giving rise to the bonus are to be
performed.  An election shall take effect as of January 1 of the year
following the year in which it is received or the first day of the Company's
Fiscal Year following the Fiscal Year in which the deferral election is received
by the Director.

       

      (b)           A
Participant shall not be eligible to defer Compensation for any calendar year or
bonus Compensation for any Fiscal Year following the year in which the
Participant no longer satisfies the eligibility requirements of the Plan, unless
the Committee in its discretion permits such a deferral.

       

      
        	
                3.2

              	
                Accounts

              

      

       

      The
Company shall establish and maintain an account for each Participant and shall
credit such account with amounts deferred by the Participant pursuant to Section
3.1 and the Participant's deferral election.

       

      
        	
                3.3

              	
                Company
      Credits

              

      

       

      The
Company shall credit a Participant's account as of December 31 each year with an
amount equal to the difference between (a) the amount that would have been
credited to the Participant's account under the Retirement Plan for the Plan
Year had the Participant not made an election to defer Compensation for the year
under Section 3.1 of the Plan, and (b) the amount actually credited to
the Participant's account under the Retirement Plan for the Plan
Year.  To prevent duplication of benefits, credits under this
Section 3.3 shall not be made with respect to any year or partial year in
which the Participant or any account of the Participant receives comparable
credits under the Company's Supplemental Benefit Plan or any other Company
plan.

      
        
          
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          5

          
            

          

        

        
           

        

      

       

       

       

      IV.           EARNINGS
ON PARTICIPANT ACCOUNTS

       

      Amounts
held in an account maintained for a Participant shall be credited with earnings
at a rate and in a manner authorized by the Committee from time to time;
provided that the earnings rate shall be based on a Participant's selection from
among fund choices made available by the Committee from time to time, and
provided further that such choices shall not include a Common Stock
fund.  Earnings shall be credited as of the end of each business day
that the Committee authorizes the Plan's recordkeeping system to determine the
value of gains and losses.  Notwithstanding the foregoing, for
Participants who did not make a one-time election as of October 31, 2006 to
allocate all funds in all accounts, past and future, so that earnings are based
on the rate of return from one or more of the funds made available by the
Committee as described above, the earnings shall be determined based on the
Stable Return Fund Measure.

       

      V.           DISTRIBUTIONS

       

      
        	
                5.1

              	
                Available
      Methods of Distribution

              

      

       

      Available
methods of distribution are (i) approximately equal annual, quarterly or
monthly installment payments over a period not to exceed ten years or (ii) a
single lump-sum distribution.

       

      
        	
                5.2

              	
                Distribution
      Elections; Absence of a Valid
Election

              

      

       

      (a)           Except
as provided in Section 5.3, the amount of the Participant's deferred
compensation account shall be distributed on the Participant's retirement,
resignation or termination from employment with the Company, or on the
Disability or death of the Participant, whichever occurs
first.  Distributions shall be made in accordance with the
Participant's distribution election most recently filed with the Director with
respect to each Plan Year; provided that any election change filed one year or
less before the date of the Participant's retirement, resignation or separation
from service shall be disregarded in accordance with Section 5.5.

       

      (b)           In
the absence of a valid election, the Company shall pay the accrued amount in a
single lump sum after the Participant's retirement, resignation or termination
from employment with the Company, or on the Disability or death of the
Participant, whichever occurs first.  In the event of the
Participant's death before such lump sum distribution has occurred, the amount
will be distributed in a lump sum to any designated Beneficiary or to the estate
or legal representative of the Participant.

      
        
          
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          6

          
            

          

        

        
           

        

      

      5.3           Other
Distributions

       

      (a)           Notwithstanding
Section 5.1, a Participant may irrevocably elect, in the Participant's deferral
election, to receive a single sum distribution of the Participant's Accounts in
a specified year no earlier than two years following the year to which such
deferral election applies.

       

      (b)           A
Participant who incurs an Unforeseeable Emergency, as determined by the
Committee based on the relevant facts and circumstances, may make a written
request to the Company for a hardship withdrawal from the Participant’s
account.  Upon receiving such a request, the Committee (i) shall
cancel a Participant's deferrals under the Plan for the remainder of the Plan
Year, and (ii) may make a distribution from the Participant's
account.  Withdrawals of amounts because of an Unforeseeable Emergency
are permitted to the extent reasonably necessary to satisfy the emergency need
(which may include amounts necessary to pay any federal, state, local or foreign
income taxes or penalties reasonably anticipated to result from the
distribution).  A distribution on account of an Unforeseeable
Emergency may not be made to the extent that such emergency is or may be
relieved through reimbursement or compensation from insurance or otherwise, by
liquidation of the Participant's assets, to the extent the liquidation of such
assets would not cause severe financial hardship, or by cessation of deferrals
under the Plan.  Notwithstanding the foregoing, in the event that a
Participant has received a hardship distribution from any defined contribution
plan with a 401(k) cash or deferred arrangement maintained by the Company,
regardless of whether the Participant has requested a distribution as a result
of an Unforeseeable Emergency under the Plan, the Participant's deferrals under
the Plan shall be cancelled through the end of the current Plan Year, or the end
of the subsequent Plan Year if the six-month period under Treasury Regulation
Section 1.401(k)-1(d)(3)(iv)(E)(2) does not end in the current Plan
Year.

       

      
        	
                5.4

              	
                Timing
      of Certain Distributions

              

      

       

      Except in
the event of the Participant's death or Disability, benefits payable under the
Plan shall be paid beginning in January of the calendar year immediately
following the calendar year in which the distributable event
occurs.  In the event of a Participant's death or Disability, benefits
shall be distributed beginning in the first month following the month in which
the Participant's death occurred or the determination of Disability is
made.

       

      
        	
                5.5

              	
                Limitation
      on Election of Distribution Method

              

      

       

      (a)           A
Participant may change the Participant's election only one time with respect to
each applicable Plan Year after making an initial election with respect to
distributions under the Plan.  Such distribution election change must
be in accordance with Section 5.5(b).

       

      (b)           Except
as limited by Section 5.5(a), a Participant may change the Participant's
election at any time subject to the following: (i) any change shall not take
effect until at least 12 months after the date on which the election change is
made, and (ii) in the case of an election change relating to payments other than
on account of an Unforeseeable Emergency,

      
        
          
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          7

          
            

          

        

        
           

        

      

       

      death or
Disability of the Participant, the payment shall be deferred for a period of not
less than five years from the date such payment would otherwise have been paid
(or in the case of installment or annuity payments, five years from the date the
first amount would otherwise have been paid).

       

      (c)           As
provided in Section 5.2(b), if a Participant fails to elect a method of payment
in the Participant's initial deferral election, benefits payable under the Plan
to or on behalf of a Participant shall be paid in a single distribution to the
Participant, or in the event of the Participant's death, to the Participant's
designated Beneficiary under the Plan.  Any change in this default
election must comply with Sections 5.5(a) and (b).

       

      
        	
                5.6

              	
                Additional
      Code Section 409A Limitations

              

      

       

      In the
case of a Participant who is a Specified Employee as of the date of the
Participant's termination from employment, all payments under the Plan to which
the Participant is otherwise entitled due to retirement, resignation or other
separation from service for any other reason shall be delayed to the extent
necessary so that the first payment made to the Participant is not made earlier
than six months following such separation date (or if earlier than the end of
that six-month period, the date of death of the Specified Employee) as required
under Treasury Regulation Section 1.409A-3(i)(2).  With respect to any
payments hereunder that are subject to Code Section 409A and that are payable on
account of a termination of employment, the determination of whether the
Participant has had a termination of employment shall be made in accordance with
Code Section 409A and its requirements for a separation from
service.

       

      VI.           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 designating a new Beneficiary in a manner and 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 payment shall be made 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.

      
        
          
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          8

          
            

          

        

        
           

        

      

       

      VII.           ADMINISTRATION
OF THE PLAN

       

      
        	
                7.1

              	
                Company's
      Authority

              

      

       

      The Plan
shall be administered by the Company, which shall have the authority, duty and
power to interpret and construe the provisions of the Plan as it deems
appropriate.  The Company shall have the duty and responsibility of
maintaining records, making the requisite calculations and dispersing the
payments hereunder except to the extent delegated to a third
party.  The Company's interpretations, determinations, regulations and
calculations shall be final and binding on all persons and parties
concerned.

       

      
        	
                7.2

              	
                Reliance

              

      

       

      The
Company shall be entitled to rely conclusively upon all tables, valuations,
certificates, opinions and reports furnished by any actuary, accountant,
controller, counsel or other person employed or engaged by the Company with
respect to the Plan.

       

      
        	
                7.3

              	
                Individual
      Statements

              

      

       

      The
Company or its service provider shall furnish individual statements of accrued
benefits to each Participant, or current Beneficiary, at least annually, in such
form as determined by the Company.

       

      
        	
                7.4

              	
                Claims

              

      

       

      The
employee benefit plan procedures in this Section 7.4 are intended to comply with
Section 503 of ERISA and Section 2560.503-1 of the Department of Labor
Regulations and pertain to claims by Participants and Beneficiaries
("claimants") for Plan benefits, consideration of such claims and review of
claim denials.  For purposes of these procedures, a "claim" is a
request for a benefit by a Participant or Beneficiary under the
Plan.  A claim is filed when the requirements of these procedures have
been met.

       

      (a)           If
a claim is wholly or partially denied, notice of the decision, meeting the
requirements of Section 7.4(b), shall be furnished to the claimant within a
reasonable period of time after receipt of the claim by the
Company.  If notice of the denial of a claim is not furnished in
accordance with this Section 7.4(a) within a reasonable period of time, the
claim shall be deemed denied and the claimant shall be permitted to proceed to
the review stage described in Section 7.4(c).  For purposes of this
Section 7.4(a), the period of time for notification to the claimant will not
exceed 90 days (45 days for Disability claims) after receipt of the claim by the
Company, unless special circumstances require an extension of time for
processing the claim.  If such an extension of time for processing is
required, written notice of the extension shall be furnished to the claimant
prior to the termination of the initial 90-day period (45 days for Disability
claims).  In no event shall such extension exceed a period of 90 days
(30 days for Disability claims) from the end of such initial
period.  The extension notice shall indicate the special circumstances
requiring an extension of time and

      
        
          
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          9

          
            

          

        

        
           

        

      

       

      the date
by which the Company expects to render the final decision (see the paragraph
below for the contents of the extension notice with respect to Disability
claims).

       

      In
addition, with respect to Disability claims, if, prior to the end of the first
30-day extension period, the Company determines that, due to matters beyond the
control of the Plan, a decision cannot be rendered within that extension period,
the period for making the determination may be extended for up to an additional
30 days, provided that the Company notifies the claimant, prior to the
expiration of the first 30-day extension period, of the circumstances requiring
the extension and the date as of which the Plan expects to render a
decision.  Both notices of extension shall specifically explain the
standards on which entitlement to a benefit is based, the unresolved issues that
prevent a decision on the claim, and the additional information needed to
resolve those issues, and the claimant shall be afforded at least 45 days within
which to provide the specified information.

       

      (b)           The
Company shall provide to every claimant who is denied a claim for benefits
written notice setting forth in a manner calculated to be understood by the
claimant:

       

      
        	
                 
      

              	
                (i)

              	 	
                the
      specific reason or reasons for the
denial;

              

      

       

      
        	
                 
      

              	
                (ii)

              	 	
                specific
      reference to pertinent provisions of the Plan on which the denial is
      based;

              

      

       

      
        	
                 
      

              	
                (iii)

              	 	
                a
      description of any additional material or information necessary for the
      claimant to perfect the claim and an explanation of why such material or
      information is necessary;

              

      

       

      
        	
                 
      

              	
                (iv)

              	 	
                appropriate
      information as to the steps to be taken if the Participant or Beneficiary
      wishes to submit a claim for review;
and

              

      

       

      
        	
                 
      

              	
                (v)

              	 	
                in
      the case of an adverse benefit determination regarding Disability
      benefits, if an internal rule, guideline, protocol or other similar
      criterion was relied upon in making the adverse determination, either the
      specific rule, guideline, protocol or other similar criterion; or a
      statement that such rule, guideline, protocol or other similar criterion
      was relied upon in making the adverse determination and that a copy of
      such rule, guideline, protocol or other criterion will be provided free of
      charge to the claimant upon
request.

              

      

       

      (c)           If
a claim is denied in whole or in part and if the claimant is dissatisfied with
the disposition of the claim, the claimant or the claimant's duly authorized
representative shall have a reasonable opportunity to appeal the denied claim to
the Company or to a person designated by the Company, and shall have a full and
fair review of the claim and its denial.  Under this review procedure,
a claimant or the claimant's duly authorized representative may:

       

      
        	
                 
      

              	
                (i)

              	 	
                request
      a review upon written application to the
  Company;

              

      

      
        
          
            PAGE

          

           

        

        
          10

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (ii)

              	 	
                review
      pertinent documents; and

              

      

       

      
        	
                 
      

              	
                (iii)

              	 	
                submit
      issues and comments in writing.

              

      

       

      A
claimant must file such a request for review of a denied claim within a
reasonable period of time, not to exceed 60 days (180 days for Disability
claims) after receipt by the claimant of written notification of denial of a
claim.

       

      (d)           A
decision by the Company shall be made promptly and shall not ordinarily be made
later than 60 days (45 days for Disability claims) after the receipt by the
Company of a request for review, unless special circumstances (such as the need
to hold a hearing) require an extension of time for processing, in which case a
decision shall be rendered as soon as possible, but not later than 120 days (90
days for Disability claims) after receipt of a request for review.  If
an extension of time for review is required because of special circumstances,
written notice of the extension shall be furnished to the claimant prior to the
commencement of the extension.  The decision on review shall be in
writing and shall include specific reasons for the decision, written in a manner
calculated to be understood by the claimant, as well as specific references to
the pertinent provisions of the Plan on which the decision is
based.  The decision on review shall be furnished to the claimant
within the period of time described in this Section 7.4(d).  If the
decision on review is not furnished within such time, the claim shall be deemed
denied on review.

       

      VIII.                      AMENDMENT
OR TERMINATION

       

      
        	
                8.1

              	
                Amendment

              

      

       

      The
Company reserves the power to amend or terminate the Plan at any time by action
of the Committee, ratified by the Board; provided that no amendment or
modification shall decrease the then current 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.

       

      
        	
                8.2

              	
                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.  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.  Any acceleration of the time and form of payment as a
result of the termination of the Plan shall be in accordance with Treasury
Regulation Section 1.409A-3(j)(4)(ix).

      
        
          
            PAGE

          

           

        

        
          11

          
            

          

        

        
           

        

      

      IX.           GENERAL
PROVISIONS

       

      
        	
                9.1

              	
                Trust

              

      

       

      The
Company has established a Trust that may be used to pay benefits arising under
the Plan and costs, charges and expenses relating thereto.  To the
extent that the funds held in the Trust are insufficient to pay such benefits,
costs, charges and expenses, the Company shall pay them.

       

      
        	
                9.2

              	
                No
      Alienation

              

      

       

      Except as
the Committee determines is required by law or order of a court of competent
jurisdiction, neither the benefits payable hereunder nor the right to receive
future benefits under the Plan may be anticipated, alienated, sold, transferred,
assigned, pledged, encumbered, or subjected to any charge or legal process, and
no interest or right to receive a benefit may be taken, either voluntarily or
involuntarily, for the satisfaction of the debts of, or other obligations or
claims against, any person or entity, including claims for alimony, support,
separate maintenance and claims in bankruptcy proceedings.

       

      
        	
                9.3

              	
                Unfunded
      Plan

              

      

       

      The Plan
shall at all times be considered entirely unfunded both for tax purposes and for
purposes of Title I of ERISA.  Funds invested under the Plan,
including amounts held in the Trust, shall continue for all purposes to be part
of the general assets of the Company and available to the general creditors of
the Company in the event of the Company's bankruptcy (when the Company is
involved in a pending proceeding under the Federal Bankruptcy Code) or
insolvency (when the Company is unable to pay its debts as they
mature).  In the event of the Company's bankruptcy or insolvency, the
Board and the Company's Chief Executive Officer shall notify the Trustee in
writing of such an occurrence within three business days following the Company's
becoming aware of such occurrence.  No Participant or any other person
shall have any interests in any particular assets of the Company by reason of
the right to receive a benefit under the Plan, and to the extent the Participant
or any other person acquires a right to receive benefits under the Plan, such
right shall be no greater than the right of any general unsecured creditor of
the Company.  The Plan constitutes a mere promise by the Company to
make payments to the Participants in the future.

       

      
        	
                9.4

              	
                No
      Guaranty

              

      

       

      Nothing
contained in the Plan shall constitute a guaranty by the Company or any other
person or entity that any funds in the Trust or the assets of the Company will
be sufficient to pay any benefit hereunder.

      
        
          
            PAGE

          

           

        

        
          12

          
            

          

        

        
           

        

      

      9.5           No
Right of Employment

       

      No
Participant shall have any right to a benefit under the Plan except in
accordance with the terms of the Plan.  Establishment and continuance
of the Plan shall not be construed to give any Participant the right to be
retained in the service of the Company.

       

      
        	
                9.6

              	
                Incompetency

              

      

       

      If any
person entitled to a benefit payment under the Plan is declared incompetent and
a conservator or other person legally charged with the care of such person or of
the estate of such person is appointed, any benefits under the Plan to which the
person is entitled shall be paid to such conservator or other person legally
charged with the care of the person or such person's estate.  Except
as provided above, when the Company determines that such person is unable to
manage such person's affairs, the Company may provide for such payment or any
part thereof to be made to any other person or institution then contributing
toward or providing for the care and maintenance of such person.  Any
such payment shall be a payment for the account of such Person and a complete
discharge of any liability of the Company and the Plan therefor.

       

      
        	
                9.7

              	
                Corporate
      Changes

              

      

       

      The Plan
shall not be automatically terminated by a transfer or sale of assets of the
Company or by the merger or consolidation of the Company into or with any other
corporation or other entity, but the Plan shall continue after such sale, merger
or consolidation only if and to the extent that the transferee, purchaser or
successor entity agrees to continue the Plan.  In the event the Plan
is not continued by the transferee, purchaser or successor entity, then the Plan
shall terminate subject to the provisions of Article VIII.

       

      
        	
                9.8

              	
                Addresses

              

      

       

      Each
Participant shall keep the Company informed of the Participant's current address
and the current address of the Participant's Beneficiary.  The Company
shall not be obligated to search for any person.

       

      
        	
                9.9

              	
                Limitations
      on Liability

              

      

       

      Notwithstanding
any of the preceding provisions of the Plan, neither the Company nor any
individual acting as an employee or agent of the Company shall be liable to any
Participant, any former Participant, or any other person for any claim, loss,
liability or expense incurred in connection with the Plan, unless attributable
to fraud or willful misconduct on the part of the Company or any such employee
or agent of the Company.

      
        
          
            PAGE

          

           

        

        
          13

          
            

          

        

        
           

        

      

      9.10        Transfers
to the Trust

       

      On the
occurrence of a Change of Control or if a Participant elects to direct the
investment of amounts credited to the Participant's account pursuant to Article
IV, the Company shall transfer cash or property to the account or accounts
maintained in the name of each affected Participant or Participants for the Plan
under the Trust in an amount equal to the present value of all accumulated or
accrued benefits then payable to or on behalf of such Participant or
Participants under the Plan, plus any applicable fees.  The Company
may also transfer cash or property to the accounts maintained for any
Participant under the Trust in an amount equal to the present value of all
accumulated or accrued benefits then payable under the Plan at any time in the
sole discretion of the Company.  Thereafter, the Company may, and
after a Change of Control it shall, for each Plan Year, transfer cash or
property no later than 30 days after the end of the Plan Year in which the
initial transfer occurs, and thereafter on each anniversary thereof, to such
account or accounts maintained for the affected Participant or Participants
under the Trust an amount equal to the additional benefit accrued under the
terms of the Plan during and in relation to the most recent Plan Year then
ended.  If a transfer occurs, the accounts of the Participants shall
be credited with interest, or earnings and losses in accordance with Article
IV.

       

      
        	
                9.11

              	
                Inspection

              

      

       

      Each
Participant shall receive a copy of the Plan and the Company will make available
for inspection by any Participant or designated Beneficiary a copy of any rules
and regulations that are used by the Company in administering the
Plan.

       

      
        	
                9.12

              	
                Withholding

              

      

       

      Any
amounts payable pursuant to the Plan may be reduced by the amount of any
federal, state or local taxes required by law to be withheld with respect to
such payments and by any amount owed by the Participant to the
Company.

       

      
        	
                9.13

              	
                Singular
      and Plural

              

      

       

      Except
when otherwise required by the context, any singular terminology shall include
the plural.

       

      
        	
                9.14

              	
                Severability

              

      

       

      If a
provision of the Plan shall be held to be illegal or invalid, the illegality or
invalidity shall not affect the remaining parts of the Plan and the Plan shall
be construed and enforced as if the illegal or invalid provision had not been
included.

      
        
          
            PAGE

          

           

        

        
          14

          
            

          

        

        
           

        

      

      9.15        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 the
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.

       

      
        	
                9.16

              	
                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 the
Plan with respect to the Participant and any Beneficiary.

       

      9.17       Governing
Law

       

      To the
extent that it is not governed by United States federal law, 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 of law rule or principle
that might otherwise refer construction or interpretation of the Plan or a
deferral election to the substantive law of another jurisdiction.

       

      
        	
                9.18

              	
                Successors

              

      

       

      The
provisions of the 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.

       

      
        	
                9.19

              	
                Court
      Order

              

      

       

      Notwithstanding
Section 9.2, the Committee is authorized to make any payments directed by a
qualified domestic relations order (as defined in Code Section
414(p)(1)(B)).  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.

       

      
        	
                9.20

              	
                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 the Plan.  A
Participant should consult with professional tax advisors regarding all
questions related to the tax consequences of participation.

      
        
          
            PAGE

          

           

        

        
          15

          
            

          

        

        
           

        

      

      9.21           Code
Section 409A

       

      The Plan
document is intended to comply with the requirements of Code Section 409A
(including accompanying regulations and current IRS guidance) and conform to the
current operation of the Plan.  The terms of the Plan shall be
interpreted, operated and administered in a manner consistent with this
intention to the extent the Committee deems necessary to comply with Code
Section 409A and any official guidance issued thereunder.

       

      * * * *
*

      
        
          
            PAGE

          

           

        

        
          16

          
            

          

        

        
           

        

      

       

      IN
WITNESS WHEREOF, an authorized officer of the Company has signed this document
on the 21st day of
July, 2008, to be effective January 1, 2009.

       

      

       

      THE TORO
COMPANY

       

      

       

      

       

      By:          Michael J.
Hoffman                                                       

       

      Its:          Chairman, President and
CEO

       

      

      
        
          
            PAGE

          

           

        

        
          17deferredcomp_officer1.htm

    Exhibit
10(b)

       

       

      

       

       

      

       

       

      THE
TORO COMPANY

       

       

      DEFERRED
COMPENSATION PLAN

       

       

      FOR
OFFICERS

       

       

      

       

       

       

       

      

       

       

      

       

       

      Amended
and Restated Effective January 1, 2009

       

      

       

      
        
           

        

        
           

          
            

          

        

        
           

          
            TABLE
OF CONTENTS

            

            
 

          

        

      

       

      Page           

      
        	
                THE TORO COMPANY

              	
                1

              
	
                DEFERRED
      COMPENSATION PLAN FOR OFFICERS

              	
                1

              
	
                AMENDED
      AND RESTATED EFFECTIVE JANUARY 1, 2009

              	
                1

              
	
                I.
      DEFINITIONS

              	
                1

              
	
                II.
      ELIGIBILITY; PARTICIPATION; DEFERRAL

              	
                5

              
	
                2.1 Eligibility

              	
                5

              
	
                2.2 Participation

              	
                5

              
	
                2.3 Deferral
    Election

              	
                5

              
	
                III.
      PARTICIPANTS' ACCOUNTS

              	
                6

              
	
                3.1 General

              	
                6

              
	
                3.2 Number of Units to Be
      Credited

              	
                7

              
	
                IV.
      VESTING

              	
                7

              
	
                V.
      DISTRIBUTIONS

              	
                7

              
	
                5.1 Distributable
      Events

              	
                7

              
	
                5.2 Distribution of
      Benefits

              	
                7

              
	
                5.3 Other
      Distributions

              	
                8

              
	
                5.4 Commencement of
      Distributions

              	
                8

              
	
                5.5 Form of
    Payment

              	
                9

              
	
                5.6 Additional Code Section 409A
      Limitations

              	
                9

              
	
                VI.
      BENEFICIARY DESIGNATION

              	
                9

              
	
                VII.
      ADMINISTRATION OF THE PLAN

              	
                10

              
	
                7.1 Administrator

              	
                10

              
	
                7.2 Authority of
      Administrator

              	
                10

              
	
                7.3 Operation of
    Plan

              	
                10

              
	
                7.4 Claims
    Procedures

              	
                10

              
	
                VIII.
      AMENDMENT OR TERMINATION

              	
                12

              
	
                8.1 Amendment or Termination of
      the Plan

              	
                12

              
	
                8.2 Accounts After
      Termination

              	
                13

              
	
                IX.
      GENERAL PROVISIONS

              	
                13

              
	
                9.1 Trust

              	
                13

              
	
                9.2 No Alienation

              	
                13

              
	
                9.3 Unfunded Plan

              	
                13

              
	
                9.4 No Guaranty

              	
                14

              
	
                9.5 No Right of
      Employment

              	
                14

              
	
                9.6 Incompetency

              	
                14

              
	
                9.7 Corporate
    Changes

              	
                14

              
	
                9.8 Addresses

              	
                14

              
	
                9.9 Limitations on
      Liability

              	
                15

              
	
                9.10 Transfers to the
      Trust

              	
                15

              
	
                9.11 Inspection

              	
                15

              
	
                9.12 Withholding

              	
                15

              
	
                9.13 Voting of
    Stock

              	
                15

              
	
                9.14 Singular and
      Plural

              	
                15

              
	
                9.15 Severability

              	
                16

              
	
                9.16 Unsecured General
      Creditor

              	
                16

              
	
                9.17 Discharge of
      Obligations

              	
                16

              
	
                9.18 Governing
Law

              	
                16

              
	
                9.19 Successors

              	
                16

              
	
                9.20 Court Order

              	
                16

              
	
                9.21 No Assurance of Tax
      Consequences

              	
                16

              
	
                9.22 Code Section
      409A

              	
                17

              

      

      

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      THE
TORO COMPANY

       

      DEFERRED
COMPENSATION PLAN

       

      FOR
OFFICERS

       

      Amended
and Restated Effective January 1, 2009

       

      The Toro
Company hereby amends and restates its Deferred Compensation Plan for Officers,
originally effective as of January 21, 1998.  This amendment and
restatement is effective for all amounts deferred on or after January 1, 2005
that remain unpaid as of January 1, 2009.  All grandfathered amounts
earned and vested as of December 31, 2004 shall continue to be governed by the
2004 Plan document in accordance with then applicable IRS
guidance.  All amounts earned or vested from January 1, 2005 through
December 31, 2008 shall continue to be governed by this amendment and
restatement, as modified by the operations of the Plan during such period in
accordance with Internal Revenue Code Section 409A and then applicable IRS
guidance (including transition relief).

       

      The
purpose of the Plan is to provide the opportunity for selected officers of the
Company to defer receipt of compensation that may be payable under the
Performance Share Plan and to acquire and retain Common Stock in the form of
Units.  This amendment eliminates references to the opportunity to
defer compensation under AMIP II but retains references to existing accounts
previously established in connection with that compensation.

       

      I.           DEFINITIONS

       

      When used
in the Plan, the following terms have the meanings indicated unless a different
meaning is plainly required by the context:

       

      "2004 Plan" means the
terms of the Plan in place as of December 31, 2004.

       

      "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 of the Plan, and includes Retained
Units Accounts, Matching Units Accounts and Performance Share Units
Accounts.

       

      "AMIP II" means The
Toro Company Annual Management Incentive Plan II, as amended from time to time,
and any successor plan designated as such by the Board.

       

      "Award Term" means the
performance period established by the Committee for awards granted under the
Performance Share Plan.

       

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

       

      "Beneficiary" means
the person or persons selected by the Participant to receive the benefits
provided under the Plan in the event of the Participant's death.

       

      "Change of Control"
means:

       

      (a)           The
acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a "Person") of
beneficial ownership (within

       

      
        
          
             PAGE

          

           

        

        
          1

          
            

          

        

        
           

        

      

      the
meaning of Rule 13d-3 under the Exchange Act) of 15% or more of either (i) the
then-outstanding shares of Common Stock of the Company (the "Outstanding Company
Common Stock") or (ii) the combined voting power of the then-outstanding voting
securities of the Company entitled to vote generally in the election of
directors (the "Outstanding Company Voting Securities"); provided, however, that
for purposes of this subsection (a), the following acquisitions shall not
constitute a Change of Control:  (w) any acquisition directly from the
Company, (x) any acquisition by the Company, (y) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any
corporation controlled by the Company, or (z) any acquisition by any corporation
pursuant to a transaction that complies with clauses (i), (ii) and (iii) of
subsection (c) of this definition; or

       

      (b)           Individuals
who, as of the date hereof, constitute the Board (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 a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board; or

       

      (c)           Consummation
of a reorganization, merger or consolidation of the Company or sale or other
disposition of all or substantially all of the assets of the Company or the
acquisition by the Company of assets or stock of another entity (a "Business
Combination"), in each case, unless, following such Business Combination, (i)
all or substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 50% of, respectively, the
then-outstanding shares of common stock and the combined voting power of the
then-outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of the corporation resulting from such Business
Combination (including, without limitation, a corporation that as a result of
such transaction owns the Company or all or substantially all of the Company's
assets either directly or through one or more subsidiaries) in substantially the
same proportions as their ownership, immediately prior to such Business
Combination, of the Outstanding Company Common Stock and Outstanding Company
Voting Securities, as the case may be, (ii) no Person (excluding any corporation
resulting from such Business Combination or any employee benefit plan (or
related trust) of the Company or such corporation resulting from such Business
Combination) beneficially owns, directly or indirectly, 15% or more of,
respectively, the then-outstanding shares of common stock of the corporation
resulting from such Business Combination or the combined voting power of the
then-outstanding voting securities of such corporation, except to the extent
that such ownership existed prior to the Business Combination, and (iii) at
least a majority of the members of the board of directors of the corporation
resulting from such Business Combination were members of the Incumbent Board at
the time of the execution of the initial agreement, or of the action of the
Board, providing for such Business Combination; or

       

      
        
          
             PAGE

          

           

        

        
          2

          
            

          

        

        
           

        

      

      (d)           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.

       

      "Committee" means the
Compensation and Human Resources Committee of the Board, or any successor
committee, and its delegates with respect the Plan.

       

      "Common Stock" means
the Company's common stock, par value $1.00 per share, and the related Preferred
Share Purchase Rights, as such shares may be adjusted in accordance with Section
3.1(c).

       

      "Company" means The
Toro Company, a Delaware corporation.  Except as used in Articles VII
and VIII, "Company" also includes any participating Subsidiary.

       

      "Deferral Election"
shall mean a Participant's election under Section 2.3, made in a manner and on
the form prescribed by the Committee.

       

      "Disability" means the
Participant is (a) unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment that can be
expected to result in death or can be expected to last for a continuous period
of not less than 12 months; (b) receiving income replacement benefits for a
period of not less than three months under an accident and health plan covering
Company employees because of any medically determinable physical or mental
impairment that can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months; (c)  determined to be
totally disabled by the Social Security Administration or Railroad Retirement
Board; or (d) determined to be disabled in accordance with the Company's Long
Term Disability Plan, provided that such plan's definition complies with
Treasury Regulation Section 1.409A-3(i)(4).

       

      "Eligible Officer"
means an officer of the Company or a Subsidiary, described in
Section 2.1.

       

      "ERISA" means the
Employee Retirement Income Security Act of 1974, as amended.

       

      "Fair Market Value"
means the closing price of one share of Common Stock as reported by the New York
Stock Exchange, except that where a different meaning is established in the
Performance Share Plan for any particular purpose, that meaning shall govern for
that purpose.

       

      "Fiscal Year" means
the fiscal year of the Company, which begins on November 1 and ends on the
following October 31.

       

      "IRS" means the
Internal Revenue Service.

       

      "Matching Units
Account" means an Account previously established under the Plan in
connection with AMIP II compensation, with entries denominated in Units
(including fractions), but to which no additional Units may be
credited.

       

      
        
          
             PAGE

          

           

        

        
          3

          
            

          

        

        
           

        

      

      "Participant" means an
Eligible Officer who delivers a Deferral Election in accordance with Sections
2.2 and 2.3 and for whom Units are actually credited to an
Account.  An individual shall not cease to be a Participant if the
person ceases to be an Eligible Officer, as long as Units remain credited to
such Participant's Accounts.  A Beneficiary, a spouse or former
spouse, or an executor or personal administrator of a Participant's estate shall
not be treated as a Participant even if such individual or the Participant's
estate has an interest in the Participant's benefits under the
Plan.

       

      "Performance Shares"
are rights to receive shares of Common Stock or Units, awarded under the
Performance Share Plan.

       

      "Performance Share Units
Account" means an Account with entries denominated in Units that are
credited in accordance with Section 3.2.

       

      "Performance Share
Award" means the award that sets forth the number of Performance Shares
granted under the Performance Share Plan.

       

      "Performance Share
Plan" means The Toro Company Performance Share Plan, as amended from time
to time, and any successor plan designated as such by the Board.

       

      "Plan" means the
Deferred Compensation Plan for Officers, as amended from time to
time.

       

      "Retained Units
Account" means an Account previously established under the Plan in
connection with AMIP II compensation, with entries denominated in Units
(including fractions), but to which no additional Units may be
credited.

       

      "Specified Employee"
means a Participant who, as of the date of the Participant's separation from
service for any reason and unless the Company has designated otherwise in
accordance with Treasury Regulation Section 1.409A-1(i), is an elected officer
of the Company.  If a Participant is an elected officer as of December
31, the Participant shall be treated as a Specified Employee for the entire
12-month period beginning on the next following April 1.

       

      "Subsidiary" means any
corporation that is a component member of the controlled group of companies of
which the Company is the common parent.  Controlled group shall be
determined with reference to Section 1563 of the Code but shall include any
corporation described in Section 1563(b)(2) thereof.

       

      "Trust" means a trust
established or maintained by the Company that may be used in connection with the
Plan to assist the Company in meeting its obligations under the
Plan.  The Plan shall constitute an unfunded arrangement, and the
Trust shall not affect the status of the Plan as an unfunded
plan.  Participants and their Beneficiaries shall have no preferred
claim on, or any beneficial ownership interest in, any assets of any such
Trust.

       

      "Trustee" means the
corporation or person or persons selected by the Company to serve as Trustee for
the Trust.

       

      
        
          
             PAGE

          

           

        

        
          4

          
            

          

        

        
           

        

      

      "Unforeseeable
Emergency"  means a severe financial hardship to a Participant
resulting from an illness or accident of the Participant, the Participant's
spouse, the Participant's Beneficiary or the Participant's dependent (as defined
in Code Section 152, without regard to Sections 152(b)(1), (b)(2) and
(d)(1)(B)); loss of the Participant's property due to casualty (including the
need to rebuild a home following damage to a home not otherwise covered by
insurance, for example, not as a result of a natural disaster); or other similar
extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Participant.  For example, (a) imminent
foreclosure of or eviction from the Participant's primary residence may
constitute an Unforeseeable Emergency; (b) the need to pay for medical expenses,
including nonrefundable deductibles, as well as for the costs of prescription
drug medications, may constitute an Unforeseeable Emergency; (c) the need to pay
for the funeral expenses of a spouse, a Beneficiary or a dependent (as defined
in Code Section 152, without regard to Sections 152(b)(1), (b)(2) and (d)(1)(B))
may also constitute an Unforeseeable Emergency; and (d) the purchase of a home
and the payment of college tuition are not Unforeseeable
Emergencies.

       

      "Unit" means a
denomination that has a value equal to one share of Common Stock, subject to
adjustment by the Committee as contemplated by Section 3.1(c) of the
Plan.

       

      II.           ELIGIBILITY;
PARTICIPATION; DEFERRAL

       

      
        	
                2.1

              	
                Eligibility

              

      

       

      An
officer of the Company or a Subsidiary who is granted a Performance Share Award
under the Performance Share Plan is eligible to participate in the
Plan.

       

      
        	
                2.2

              	
                Participation

              

      

       

      An
Eligible Officer may become a Participant in the Plan by executing and
delivering to the Company’s Director of Compensation and Benefits, or successor
position, a Deferral Election in the form prescribed by the
Company.

       

      
        	
                2.3

              	
                Deferral
      Election

              

      

       

      (a)           Deadline for
Delivery.  An Eligible Officer may elect to defer Performance
Shares that may be delivered in settlement of a Performance Share Award by
completing and submitting a Deferral Election to the Director of Compensation
and Benefits, or successor position, on or before the date that is the last day
of the Fiscal Year immediately prior to the commencement of the last Fiscal Year
of the Award Term to which the Performance Share Award relates, provided that
the Eligible Officer performs services continuously from the later of the
beginning of the Award Term or the date the performance goals are established by
the Committee through the date an election is made.  In no event may a
Deferral Election be made after such compensation has become "readily
ascertainable" as defined in Treasury Regulation Section
1.409A-2(a)(8).

       

      (b)           Amount to Be
Deferred.  The Deferral Election shall relate to compensation
that may be earned with respect to the Award Term to which a Performance Share
Award relates.  A Deferral Election may designate up 100% of
Performance Shares in a Performance Share Award to be deferred.

       

      
        
          
             PAGE

          

           

        

        
          5

          
            

          

        

        
           

        

      

      (c)           Effectiveness.  The
Deferral Election is irrevocable, shall be effective upon delivery and shall
remain in effect only with respect to the Award Term for which it is
made.

       

      III.           PARTICIPANTS'
ACCOUNTS

       

      
        	
                3.1

              	
                General

              

      

       

        
(a)           Certification
Required.  No Units or other amount shall be credited to any
Account with respect to any Performance Share Award until the Committee has
certified in writing as required by the Performance Share Plan that the
performance goals established with respect to such award have been achieved and
Performance Shares in such award have vested.

       

      (b)          Separate
Accounts.  The value of each of a Participant's Retained Units
Account and Matching Units Account, if any, and Performance Share Units Account
shall be accounted for separately.

       

      (c)          Account
Value.  Subject to the provisions of this Section 3.1(c), the
value of Units in any Account shall fluctuate with the Fair Market Value of the
Common Stock.  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 (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) conversion
to a cash balance, or (iv) any other adjustment the Committee determines to be
equitable and consistent with the purposes of the Plan.  In the event
that Common Stock is converted into cash in connection with a corporate
transaction described in this Section 3.1(c), 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 cash amounts shall thereafter 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.

       

      (d)          Dividends.  In
the event that the Company pays dividends on its Common Stock, each 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 Fair Market Value of one share of the Common
Stock on the dividend payment date.

       

      
        
          
             PAGE

          

           

        

        
          6

          
            

          

        

        
           

        

      

      (e)          Continuation of
Accounts.  Notwithstanding that a Participant ceases to be an
Eligible Officer, any Accounts established for such Participant shall continue
to be maintained until distribution of the assets in accordance with the Plan
and the Participant's Deferral Election.

       

      
        	
                3.2

              	
                Number
      of Units to Be Credited

              

      

       

      The
number of Performance Share Units to be credited to a Participant's Performance
Share Account with respect to a Performance Share Award shall be the portion of
the total number of Performance Shares in the award that is subject to the
Deferral Election.

       

      IV.           VESTING

       

      All
amounts credited to a Participant's Accounts shall be 100% vested at all
times.

       

      V.           DISTRIBUTIONS

       

      
        	
                5.1

              	
                Distributable
      Events

              

      

       

      Benefits
shall be payable under the Plan to or on behalf of a Participant, in accordance
with the elections made by the Participant under the Plan, upon the earliest to
occur of the following events:

       

      
        	
                 
      

              	
                (a)

              	
                death;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                Disability;
      or

              

      

       

      
        	
                 
      

              	
                (c)

              	
                separation
      from service.

              

      

       

      
        	
                5.2

              	
                Distribution
      of Benefits

              

      

       

      (a)          Value of
Benefits.  In the event a Participant becomes eligible to
receive a payment under the Plan, the Participant shall be entitled to receive
the value of all the Participant’s Accounts.

       

      (b)          Election of Method of
Payment.  Benefits payable to a Participant or, in the event of
the Participant's death, to the Participant's designated Beneficiary under the
Plan shall be paid in accordance with one of the available methods of payment
referred to in Section 5.2(d) in accordance with the Participant's initial
Deferral Election unless such Participant has elected to change the method of
payment in accordance with Section 5.2(c).

       

      (c)          Change in Election of Method
of Payment.  A Participant may change the method of payment by
electing another method available under the Plan at any time up to one year
before the date of the Participant's retirement from the Company; provided,
however, that a Participant may make only one such election change with respect
to each applicable Plan year.  Such election changes are also subject
to the following: (i) any change shall not take effect until at least 12 months
after the date on which the election change is made, and (ii) in the case of an
election change relating to payments other than on account of an Unforeseeable
Emergency, death or Disability of the Participant, the payment shall be deferred
for a period of not less than

       

      
        
          
             PAGE

          

           

        

        
          7

          
            

          

        

        
           

        

      

      five
years after the date such payment would otherwise have been paid (or in the case
of installment payments, five years after the date the first installment would
otherwise have been paid).

       

      (d)          Available Methods of
Payment.  Available methods of payment are
(i) approximately equal annual, quarterly or monthly installment payments
over a period not to exceed ten years or (ii) a single lump-sum
distribution.

       

      (e)          Absence of Election of
Method of Payment.  If a Participant fails to elect a method of
payment in the Participant's initial Deferral Election, benefits payable under
the Plan to or on behalf of a Participant shall be paid in a single distribution
to the Participant, or in the event of the Participant's death, to the
Participant's designated Beneficiary under the Plan.  Any change in
this default election must comply with Section 5.2(c).

       

      
        	
                5.3

              	
                Other
      Distributions

              

      

       

      (a)          In-Service
Distributions.  Notwithstanding Section 5.1, a Participant may
irrevocably elect, in the Participant's Deferral Election, to receive a single
sum distribution of the Participant's Accounts in a specified year no earlier
than two years following the year to which such Deferral Election
applies.

       

      (b)          Unforeseeable Emergency
Distribution.  A Participant who incurs an Unforeseeable
Emergency, as determined by the Committee based on the relevant facts and
circumstances, may make a written request to the Company for a hardship
withdrawal from the Participant’s account.  Upon receiving such a
request, the Committee (i) shall cancel a Participant's deferrals under the Plan
for the remainder of the Plan Year, and (ii) may make a distribution from the
Participant's account.  Withdrawals of amounts because of an
Unforeseeable Emergency are permitted to the extent reasonably necessary to
satisfy the emergency need (which may include amounts necessary to pay any
federal, state, local or foreign income taxes or penalties reasonably
anticipated to result from the distribution).  A distribution on
account of an Unforeseeable Emergency may not be made to the extent that such
emergency is or may be relieved through reimbursement or compensation from
insurance or otherwise, by liquidation of the Participant's assets, to the
extent the liquidation of such assets would not cause severe financial hardship,
or by cessation of deferrals under the Plan.  Notwithstanding the
foregoing, in the event that a Participant has received a hardship distribution
from any defined contribution plan with a 401(k) cash or deferred arrangement
maintained by the Company, regardless of whether the Participant has requested a
distribution as a result of an Unforeseeable Emergency under the Plan, the
Participant's deferrals under the Plan shall be cancelled through the end of the
current Plan Year, or the end of the subsequent Plan Year if the six-month
period under Treasury Regulation Section 1.401(k)-1(d)(3)(iv)(E)(2) does not end
in the current Plan Year.

       

      
        	
                5.4

              	
                Commencement
      of Distributions

              

      

       

      Payment
of a benefit shall begin in accordance with the provisions of this Section
5.4.

       

      
        
          
             PAGE

          

           

        

        
          8

          
            

          

        

        
           

        

      

         
(a)           Death or
Disability.  If a benefit is payable because of a Participant's
death or Disability, payment shall begin on the 15th day of the first month
immediately following the month in which the Participant's death occurs or the
determination of Disability is made.

       

      (b)          Other
Termination.  Subject to Section 5.6, if a benefit is payable
because of a Participant's separation from service with the Company for any
reason other than death or Disability or pursuant to an early retirement
election, payment shall begin in January immediately following the calendar year
in which the separation from service occurs.

       

      (c)          In-Service
Distribution.  If a Participant has properly made an in-service
distribution election under Section 5.3(a), payment shall begin in of January of
the calendar year in which the Participant has elected to receive the in-service
distribution, as set forth in Participant's Deferral Election.

       

      
        	
                5.5

              	
                Form
      of Payment

              

      

       

      If a
benefit is payable to or on behalf of a Participant under the Plan, vested Units
in the Participant's Accounts shall be distributed in the form of an equal
number of shares of Common Stock, and any vested fractional Unit shall be
converted into cash based on the Fair Market Value of the Common Stock
immediately prior to distribution.  Common Stock may be original issue
shares, treasury shares or shares purchased in the market or from private
sources or a combination thereof.

       

      
        	
                5.6

              	
                Additional
      Code Section 409A Limitations

              

      

       

      In the
case of a Participant who is a Specified Employee as of the date of the
Participant's termination from employment, all payments under the Plan to which
he or she is otherwise entitled due to early retirement, retirement, resignation
or other separation from service for any other reason shall be delayed to the
extent necessary so that the first payment made to the Participant is not made
earlier than six months (or if earlier than the end of that six-month period,
the date of death of the Specified Employee) as required under Treasury
Regulation Section 1.409A-3(i)(2).  With respect to any payments
hereunder that are subject to Code Section 409A and that are payable on account
of a termination of employment, the determination of whether the Participant has
had a termination of employment shall be made in accordance with Code Section
409A and its requirements for a separation from service.

       

      VI.           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 designating a new Beneficiary in a manner and 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 controlling trust; or, in the event there is no will or
trust under applicable state law, then payment shall be made to the persons who,
at the date of the Participant's death, would be entitled to share in the
distribution

       

      
        
          
             PAGE

          

           

        

        
          9

          
            

          

        

        
           

        

      

      of the
deceased Participant's estate under applicable state law then in force governing
the decedent's intestate property.

       

      VII.           ADMINISTRATION
OF THE PLAN

       

      
        	
                7.1

              	
                Administrator

              

      

       

      The
Company shall be the administrator of the Plan.  The Committee shall
act on behalf of the Company with respect to the administration of the Plan and
may delegate authority with respect to the administration of the Plan to a
committee, a person or persons as it deems necessary or appropriate for the
administration and operation of the Plan.  It is the Company's
intention that, with respect to Participants subject to Section 16 of the
Securities Exchange Act of 1934, transactions under the Plan will comply with
all applicable requirements of Rule 16b-3 or its successors and with any Company
policy with respect to insider trading.  To the extent any action by
the administrator fails to so comply, it shall be deemed null and void to the
extent permitted by law and deemed advisable by the Committee.

       

      
        	
                7.2

              	
                Authority
      of Administrator

              

      

       

      The
Company shall have the authority, duty and power to interpret and construe the
provisions of the Plan as it deems appropriate; to adopt, establish and revise
rules, procedures and regulations relating to the Plan; to determine the
conditions subject to which any benefits may be payable; to resolve all
questions concerning the status and rights of Participants and others under the
Plan, including, but not limited to, eligibility for benefits; and to make any
other determinations necessary or advisable for the administration of the
Plan.  The Company shall have the duty and responsibility of
maintaining records, mailing the requisite calculations and disbursing payments
hereunder.  The determinations, interpretations, regulations and
calculations of the Company shall be final and binding on all persons and
parties concerned.  The Corporate Secretary of the Company shall be
the agent of the Plan for the service of legal process in accordance with
Section 502 of ERISA.

       

      
        	
                7.3

              	
                Operation
      of Plan

              

      

       

      The
Company shall be responsible for the general operation and administration of the
Plan and for carrying out the provisions thereof.  The Company shall
be responsible for the expenses incurred in the administration of the
Plan.  The Company shall also be responsible for determining
eligibility for payments and the amounts payable pursuant to the
Plan.  The Company shall be entitled to rely conclusively upon all
tables, valuations, certificates, opinions and reports furnished by any actuary,
accountant, controller, counsel or other person employed or engaged by the
Company with respect to the Plan.

       

      
        	
                7.4

              	
                Claims
      Procedures

              

      

       

      The
Company intends to make payments under the Plan without requiring that a
Participant submit a claim form.  However, a Participant who believes
a payment is due under the Plan may submit a claim for payments.  For
claims procedure purposes, an individual designated by the Company as the
"Claims Manager" shall administer the claims process on behalf of the
Company.  The procedures in Section 7.4 are intended to comply with
Section 503

       

      
        
          
             PAGE

          

           

        

        
          10

          
            

          

        

        
           

        

      

      of ERISA
and Section 2560.503-1 of the Department of Labor Regulations and pertain to
claims by Participants and Beneficiaries ("claimants") for Plan benefits,
consideration of such claim and review of claim denials.  For these
purposes, a "claim" is a request for benefits under the Plan and must be made by
the claimant in writing filed with the Claims Manager and must state the
claimant's name and the nature of benefits payable.  A claim is filed
when the requirements of these procedures have been met.

       

      (a)           If
a claim is wholly or partially denied, notice of the decision, meeting the
requirements of Section 7.4(b), shall be furnished to the claimant within a
reasonable period of time after receipt of the claim by the
Company.  If notice of the denial of a claim is not furnished in
accordance with this Section 7.4(a) within a reasonable period of time, the
claim shall be deemed denied and the claimant shall be permitted to proceed to
the review stage described in Section 7.4(c).  For purposes of this
Section 7.4(a), the period of time for notification to the claimant will not
exceed 90 days (45 days for Disability claims) after receipt of the claim by the
Company, unless special circumstances require an extension of time for
processing the claim.  If such an extension of time for processing is
required, written notice of the extension shall be furnished to the claimant
prior to the termination of the initial 90-day period (45 days for Disability
claims.  In no event shall such extension exceed a period of 90 days
(30 days for Disability claims) from the end of such initial
period.  The extension notice shall indicate the special circumstances
requiring an extension of time and the date by which the Company expects to
render the final decision (see the paragraph below for the contents of the
extension notice with respect to Disability claims).

       

      In
addition, with respect to Disability claims, if, prior to the end of the first
30-day extension period, the Company determines that, due to matters beyond the
control of the Plan, a decision cannot be rendered within that extension period,
the period for making the determination may be extended for up to an additional
30 days, provided that the Company notifies the claimant, prior to the
expiration of the first 30-day extension period, of the circumstances requiring
the extension and the date as of which the Plan expects to render a
decision.  Both notices of extension shall specifically explain the
standards on which entitlement to a benefit is based, the unresolved issues that
prevent a decision on the claim, and the additional information needed to
resolve those issues, and the claimant shall be afforded at least 45 days within
which to provide the specified information.

       

      (b)           The
Company shall provide to every claimant who is denied a claim for benefits
written notice setting forth in a manner calculated to be understood by the
claimant:

       

      
        	
                 
      

              	
                (i)

              	 	
                the
      specific reason or reasons for the
denial;

              

      

       

      
        	
                 
      

              	
                (ii)

              	 	
                specific
      reference to pertinent provisions of the Plan on which the denial is
      based;

              

      

       

      
        	
                 
      

              	
                (iii)

              	 	
                a
      description of any additional material or information necessary for the
      claimant to perfect the claim and an explanation of why such material or
      information is necessary;

              

      

       

      
        
          
             PAGE

          

           

        

        
          11

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                (iv)

              	 	
                appropriate
      information as to the steps to be taken if the Participant or Beneficiary
      wishes to submit a claim for review;
and

              

      

       

      
        	
                 
      

              	
                (v)

              	 	
                in
      the case of an adverse benefit determination regarding Disability
      benefits, if an internal rule, guideline, protocol or other similar
      criterion was relied upon in making the adverse determination, either a
      copy of the specific rule, guideline, protocol or other similar criterion
      or a statement that such rule, guideline, protocol or other similar
      criterion was relied upon in making the adverse determination and that a
      copy of such rule, guideline, protocol or other criterion will be provided
      free of charge to the claimant upon
request.

              

      

       

      (c)           If
a claim is denied in whole or in part and if the claimant is dissatisfied with
the disposition of the claim, the claimant or the claimant's duly authorized
representative shall have a reasonable opportunity to appeal the denied claim to
the Company or to a person designated by the Company, and shall have a full and
fair review of the claim and its denial.  Under this review procedure,
a claimant or the claimant's duly authorized representative may:

       

      
        	
                 
      

              	
                (i)

              	 	
                request
      a review upon written application to the
  Company;

              

      

       

      
        	
                 
      

              	
                (ii)

              	 	
                review
      pertinent documents; and

              

      

       

      
        	
                 
      

              	
                (iii)

              	 	
                submit
      issues and comments in writing.

              

      

       

      A
claimant must file such a request for review of a denied claim within a
reasonable period of time, not to exceed 60 days (180 days for Disability
claims) after receipt by the claimant of written notification of denial of a
claim.

       

      (d)           A
decision by the Company shall be made promptly and shall not ordinarily be made
later than 60 days (45 days for Disability claims) after the receipt by the
Company of a request for review, unless special circumstances (such as the need
to hold a hearing) require an extension of time for processing, in which case a
decision shall be rendered as soon as possible, but not later than 120 days (90
days for Disability claims) after receipt of a request for review.  If
an extension of time for review is required because of special circumstances,
written notice of the extension shall be furnished to the claimant prior to the
commencement of the extension.  The decision on review shall be in
writing and shall include specific reasons for the decision, written in a manner
calculated to be understood by the claimant, as well as specific references to
the pertinent provisions of the Plan on which the decision is
based.  The decision on review shall be furnished to the claimant
within the period of time described in this subsection (d).  If the
decision on review is not furnished within such time, the claim shall be deemed
denied on review.

       

      VIII.                      AMENDMENT
OR TERMINATION

       

      
        	
                8.1

              	
                Amendment
      or Termination of the Plan

              

      

       

      The
Company reserves the power to amend or terminate the Plan at any time by action
of the Committee, ratified by the Board, but

       

      
        
          
             PAGE

          

           

        

        
          12

          
            

          

        

        
           

        

      

         
(a)           no
amendment or termination of the Plan may alter, impair or reduce any benefit of
a Participant under the Plan to which such Participant may have previously
become entitled prior to the effective date of such amendment or termination,
without the written consent of such Participant,

       

      (b)          no
amendment may be made that would contravene the amendment and termination
provisions of AMIP II or the Performance Share Plan, if applicable,
and

       

      (c)          no
amendment may increase the benefits payable to a Participant who is referred to
in Section 162(m) of the Code unless AMIP II or the Performance Share Plan, as
the case may be, has first been amended to permit an increase, in accordance
with the amendment provisions of AMIP II or the Performance Share Plan, relating
to stockholder approval.

       

      
        	
                8.2

              	
                Accounts
      After Termination

              

      

       

      No
further Units (or fractions thereof) shall be credited to any Account of any
Participant after the date on which the Plan is terminated, except that (a)
Accounts shall continue to be credited with additional Units (and fractions
thereof) equal in value to dividends paid on an equivalent value of Common
Stock, if any, in accordance with Section 3.1(d) until all benefits are
distributed to a Participant or to the Participant's beneficiaries, and (b) the
distribution provisions of the Plan shall continue in effect as if the Plan had
not been terminated.  Accordingly, upon such termination of the Plan
the benefits credited to the Accounts shall be payable in accordance with the
elections made by the Participants and the distribution provisions of the
Plan.  In the event that the Committee and the Board properly
terminate the Plan so that the time and form of payment are accelerated as a
result of such termination, then the time and form of payment shall be in
accordance with Treasury Regulation Section 1.409A-3(j)(4)(ix).

       

      IX.           GENERAL
PROVISIONS

       

      
        	
                9.1

              	
                Trust

              

      

       

      The
Company has established a Trust that may be used to pay benefits arising under
the Plan and costs, charges and expenses relating thereto.  To the
extent that the funds held in the Trust are insufficient to pay such benefits,
costs, charges and expenses, the Company shall pay them.

       

      
        	
                9.2

              	
                No
      Alienation

              

      

       

      Except as
the Committee determines is required by law or order of a court of competent
jurisdiction, Units credited to a Participant's Accounts, and any rights or
privileges pertaining thereto, may not be anticipated, alienated, sold,
transferred, assigned, pledged, encumbered or subjected to any charge or legal
process, and no interest or right to receive a benefit may be taken, either
voluntarily or involuntarily, for the satisfaction of the debts of, or other
obligations or claims against, any person or entity, including claims for
alimony, support, separate maintenance and claims in bankruptcy
proceedings.

       

      
        
          
             PAGE

          

           

        

        
          13

          
            

          

        

        
           

        

      

       

      
         

        9.3           Unfunded
Plan

         

      

      The Plan
shall at all times be considered entirely unfunded both for tax purposes and for
purposes of Title I of ERISA.  Funds invested hereunder shall continue
for all purposes to be part of the general assets of the Company and available
to the general creditors of the Company in the event of a bankruptcy
(involvement in a pending proceeding under the Federal Bankruptcy Code) or
insolvency (inability to pay debts as they mature).  In the event of
such a bankruptcy or insolvency, the Company shall notify the Trustee of the
Trust and each Participant in writing of such an occurrence within three
business days after the Company obtains knowledge of such
occurrence.  No Participant or any other person shall have any
interest in any particular assets of the Company by reason of the right to
receive a benefit under the Plan, and to the extent a Participant or any other
person acquires a right to receive benefits under the Plan, such right shall be
no greater than the right of any general unsecured creditor of the
Company.  The Plan constitutes a mere promise by the Company to make
payments to the Participants in the future.

       

      
        	
                9.4

              	
                No
      Guaranty

              

      

       

      Nothing
contained in the Plan shall constitute a guaranty by the Company or any other
person or entity that any funds in any trust or the assets of the Company will
be sufficient to pay any benefit hereunder.

       

      
        	
                9.5

              	
                No
      Right of Employment

              

      

       

      No
Participant shall have any right to a benefit under the Plan except in
accordance with the terms of the Plan.  Establishment and continuance
of the Plan shall not be construed to give any Participant the right to be
retained in the service of the Company.

       

      
        	
                9.6

              	
                Incompetency

              

      

       

      If any
person who may be eligible to receive a benefit under the Plan has been declared
incompetent and a conservator or other person legally charged with the care of
such person or of the estate of such person has been appointed, any benefit
payable under the Plan that the person is eligible to receive shall be paid to
such conservator or other person legally charged with the care of the person or
such person's estate.  Except as provided above, when the Committee
has determined that such a person is unable to manage such person's affairs, the
Committee may provide for such payment or any part thereof to be made to any
other person or institution then contributing toward or providing for the care
and maintenance of such person.  Any such payment shall be a payment
for the account of such person and a complete discharge of any liability of the
Company and the Plan therefor.

       

      
        	
                9.7

              	
                Corporate
      Changes

              

      

       

      The Plan
shall not be automatically terminated by a transfer or sale of assets of the
Company or by the merger or consolidation of the Company into or with any other
corporation or other entity, but the Plan shall continue after such sale, merger
or consolidation only if and to the extent that the transferee, purchaser or
successor entity agrees to continue the Plan.  In the event the Plan
is not continued by the transferee, purchaser or successor entity, then the Plan
shall terminate subject to the provisions of Article VIII.

       

      
        
          
             PAGE

          

           

        

        
          14

          
            

          

        

        
           

        

      

       

      9.8         
Addresses

       

      Each
Participant shall keep the Company informed of the Participant's current address
and the current address of the Participant's Beneficiary.  The Company
shall not be obligated to search for any person.

       

      
        	
                9.9

              	
                Limitations
      on Liability

              

      

       

      Notwithstanding
any of the provisions of the Plan to the contrary, neither the Company nor any
individual acting as an employee or agent of the Company shall be liable to any
Participant or any other person for any claim, loss, liability or expense
incurred in connection with the Plan, unless attributable to fraud or willful
misconduct on the part of the Company or any such employee or agent of the
Company.

       

      
        	
                9.10

              	
                Transfers
      to the Trust

              

      

       

      On the
occurrence of a Change of Control, the Company shall transfer cash or property
to the account or accounts maintained in the name of each affected Participant
or Participants for the Plan under the Trust in an amount equal to the present
value of all accumulated or accrued benefits then payable to or on behalf of
such Participant or Participants under the Plan, plus any applicable
fees.  The Company may also transfer cash or property to the accounts
maintained for any Participant under the Trust in an amount equal to the present
value of all accumulated or accrued benefits then payable under the Plan at any
time in the sole discretion of the Company.  Thereafter, the Company
may, and after a Change of Control it shall, for each Plan year, transfer cash
or property no later than 30 days after the end of the Plan year in which the
initial transfer occurs, and thereafter on each anniversary thereof, to such
account or accounts maintained for the affected Participant or Participants
under the Trust an amount equal to the additional benefit accrued under the
terms of the Plan during and in relation to the most recent Plan year then
ended.

       

      
        	
                9.11

              	
                Inspection

              

      

       

      Each
Participant shall receive a copy of the Plan and the Company will make available
for inspection by any Participant or designated Beneficiary a copy of any rules
and regulations that are used by the Company in administering the
Plan.

       

      
        	
                9.12

              	
                Withholding

              

      

       

      Any
amounts payable pursuant to the Plan may be reduced by the amount of any
federal, state or local taxes required by law to be withheld with respect to
such payments and by any amount owed by the Participant to the
Company.

       

      
        	
                9.13

              	
                Voting
      of Stock

              

      

       

      Participants
shall not be entitled to voting rights with respect to Units held in their
Accounts.

       

      
        
          
             PAGE

          

           

        

        
          15

          
            

          

        

        
           

        

      

       

      9.14        Singular
and Plural

       

      Except
when otherwise required by the context, any singular terminology shall include
the plural.

       

      
        	
                9.15

              	
                Severability

              

      

       

      If a
provision of the Plan shall be held to be illegal or invalid, the illegality or
invalidity shall not affect the remaining parts of the Plan and the Plan shall
be construed and enforced as if the illegal or invalid provision had not been
included.

       

      
        	
                9.16

              	
                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 the
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.

       

      
        	
                9.17

              	
                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 the
Plan with respect to the Participant and any Beneficiary.

       

      
        	
                9.18

              	
                Governing
      Law

              

      

       

      To the
extent that it is not governed by United States federal law, 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 of law rule or
principle that might otherwise refer construction or interpretation of the Plan
or a deferral election to the substantive law of another
jurisdiction.

       

      
        	
                9.19

              	
                Successors

              

      

       

      The
provisions of the 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.

       

      
        	
                9.20

              	
                Court
      Order

              

      

       

      Notwithstanding
Section 9.2, the Committee is authorized to make any payments directed by a
qualified domestic relations order (as defined in Code Section
414(p)(1)(B)).  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.

       

      
        
          
             PAGE

          

           

        

        
          16

          
            

          

        

        
           

        

      

       

      9.21        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 the Plan.  A
Participant should consult with professional tax advisors regarding all
questions related to the tax consequences of participation.

       

      
        	
                9.22

              	
                Code
      Section 409A

              

      

       

      The Plan
document is intended to comply with the requirements of Code Section 409A
(including accompanying regulations and current IRS guidance) and conform to the
current operation of the Plan.  The terms of the Plan shall be
interpreted, operated and administered in a manner consistent with this
intention to the extent the Committee deems necessary to comply with Code
Section 409A and any official guidance issued thereunder.

       

      * * * *
*

      
        
          
             PAGE

          

           

        

        
          17

          
            

          

        

        
           

        

      

       

      IN
WITNESS WHEREOF, an authorized officer of the Company has signed this document
on the 21st day of
July, 2008, to be effective January 1, 2009.

       

      

       

      THE TORO
COMPANY

       

      

       

      

       

      

       

      By:                                                                Michael J.
Hoffman

       

      Its:          Chairman, President and
CEO

      

       

      

       

      
        
          
             PAGE

          

           

        

        
          18

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