Document:

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                                THE TORO COMPANY
                       ANNUAL MANAGEMENT INCENTIVE PLAN II

1.  PLAN PURPOSE. The purpose of The Toro Company Annual Management Incentive
    Plan II (the "Plan") is to enhance stockholder value of The Toro Company
    (the "Company") by providing an annual incentive to reinforce achievement of
    the Company's performance goals ("Performance Goals"); to link a significant
    portion of a participating officer's annual compensation to the achievement
    by the Company, and in certain cases, a division or individual, of
    Performance Goals; to attract, motivate and retain officers on a competitive
    basis by making awards based on annual achievement of Performance Goals
    ("Annual Performance Awards"); and to encourage selected officers to acquire
    and retain shares of the Common Stock, par value $1.00 per share, and
    related Preferred Share Purchase Rights of the Company ("Common Stock").

2.  ELIGIBILITY AND PARTICIPATION. Within the first 90 days of each fiscal year,
    or before the first 25% of a shorter performance period has elapsed, the
    Compensation Committee (the "Committee") shall select as recipients of
    Annual Performance Awards ("Plan Participants") those officers of the
    Company who, through their position or performance, can have a significant,
    positive impact on the Company's financial results. Plan Participants are
    designated to participate in the Plan for one fiscal year, but may be
    renominated and selected again. Newly-hired and newly-promoted officers may
    be selected as Plan Participants after the first 90 days of a fiscal year
    subject to the provisions of this paragraph and subparagraph 4.a. With
    respect to persons subject to Section 16 of the Securities Exchange Act of
    1934 ("Exchange Act"), transactions under the Plan are intended to comply
    with all applicable conditions of Rule 16b-3 or its successor provisions
    under the Exchange Act. To the extent any provision of the Plan or action by
    the Committee fails to so comply, it shall be deemed null and void, to the
    extent permitted by law and deemed advisable by the Committee.

3.  AWARD AMOUNTS.

    a.  TARGET PAYOUT. The target amount that may be paid with respect to an
        Annual Performance Award (the "Target Payout") shall be determined by
        the Committee and shall be based on a percentage of a Plan Participant's
        actual annual base salary at the time of grant ("Participation Factor"),
        within the range established by this subparagraph and subject to
        adjustment as provided in the last sentence of this subparagraph. The
        Participation Factors, which are intended to reflect a Plan
        Participant's level of responsibility, are up to 60% for the Chairman
        and Chief Executive Officer, up to 55% for the President and Chief
        Operating Officer if one should be elected, up to 50% for other elected
        officers and up to 45% for other officers. The Chief Executive Officer
        may approve modifications to the foregoing Participation Factors for any
        participant who is not a person referred to in Section 162(m) of the
        Internal Revenue Code of 1986, as amended, or the regulations thereunder
        ("Section 162(m)"), if such modification is based on level of
        responsibility. The Committee may establish curves, matrices or other
        measurements for prorating the amount of payouts for achievement of
        Performance Goals at less than the Target Payout.

    b.  MAXIMUM PAYOUT. The Committee may also establish a maximum potential
        payout amount (the "Maximum Payout") with respect to an Annual
        Performance Award of up to 200% of the Target Payout in the event
        Performance Goal targets are exceeded by an amount established by the
        Committee at the time Performance Goals are established. The Committee
        may establish curves, matrices or other measurements for prorating the
        amount of payouts for achievement of Performance Goals at greater than
        the Target Payout but less than the Maximum Payout.

    c.  DIVISION PAYOUT. At the time an Annual Performance Award is made, the
        Committee may establish supplemental division-specific Performance Goals
        ("Supplemental Division Performance Goals") and may provide that
        achievement of a Supplemental Division Performance Goal at or above an
        established target level shall be required in order to earn a Target
        Payout or Maximum Payout. The Committee shall also have the discretion
        to reduce by an amount up to 20% the amount that would otherwise be paid
        under the division payout formula to a division vice president or
        general manager based on the Committee's evaluation of the quality of
        division performance.
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    d.  STRATEGIC PERFORMANCE MEASURE PAYOUT. At the time an Annual Performance
        Award is made, the Committee may increase the Target Payout and the
        Maximum Payout (as either may be prorated in accordance with
        subparagraphs 3.a. and 3.b.) by up to 20% but to not more than 200% of
        the Target Payout, for selected Plan Participants ("Strategic
        Performance Participants"), to reflect individual strategic performance
        measures ("SPM Performance Goals") established at that time by the
        Committee. The Committee shall have the discretion to reduce by an
        amount up to 20% the amount that would otherwise be paid under the
        payout formula to a Strategic Performance Participant based on the
        Committee's evaluation of the individual's achievement of the SPM
        Performance Goal.

    e.  SECTION 162(m) MAXIMUM. With respect to any Plan Participant who is or
        may become a person referred to in Section 162(m), the maximum dollar
        amount that may be paid under an Annual Performance Award shall be set
        at the time the Committee grants the award and establishes Performance
        Goals under the award, and the Committee shall have the discretion to
        decrease an award payment, but may not under any circumstances increase
        such amount. Notwithstanding any other provision of this Plan, the
        maximum dollar amount a Plan Participant may be paid under an Annual
        Performance Award, whether in cash or Common Stock or Common Stock
        units, with respect to any fiscal year is $1,500,000. The Committee may,
        in its discretion, decrease this maximum, but may not, under any
        circumstances, increase this maximum.

4.  PERFORMANCE GOALS.

    a.  ESTABLISHMENT. An award payment under an Annual Performance Award shall
        be made to a Plan Participant only if the Company, a division and/or the
        individual participant achieves Performance Goals established by the
        Committee in writing not later than 90 days after the commencement of
        the fiscal year to which the Performance Goal relates, provided that the
        outcome is substantially uncertain at the time the Committee establishes
        the Performance Goal; and provided further that in no event will a
        Performance Goal be considered to be pre-established if it is
        established after 25% of the period of service (as scheduled in good
        faith at the time the Performance Goal is established) has elapsed.

    b.  PERFORMANCE GOAL CRITERIA. Performance Goals to be established under
        subparagraph 4.a. shall be based on revenue, revenue growth, cost of
        goods sold, earnings per share (EPS), earnings growth, return on average
        net assets (ROANA), return on average total assets, return on average
        current assets, return on equity, average net asset dollar level,
        average current asset turns, average net asset turns, average inventory
        asset turns, division profit adjustment, division controllable profit
        contribution, division average asset dollars, economic value added,
        controllable value added, product innovation, asset management, customer
        satisfaction scores, customer care and fill rate. Supplemental Division
        Performance Goals for division participants that may be established
        under subparagraph 4.a. may be based on any of the foregoing and/or on
        division specific operating performance goals including sustained
        earnings, product warranty experience, product recalls or inventory
        levels. SPM Performance Goals that may be established under subparagraph
        4.a. may be based on quantitative or qualitative factors, and may
        include, but are not limited to, aggressive revenue growth, sustained
        earnings initiative, warranty experience, product recalls, field
        inventory, acquisition experience, customer satisfaction (determined by
        such measurements as product innovation, asset management, product
        quality, warranty, on-time delivery, after-market service, customer care
        or customer satisfaction scores or survey results), inventory reduction
        and inventory turnover or any of the other Performance Goals listed in
        this paragraph. Each Performance Goal is to be specifically defined by
        the Committee on a Company, division or individual basis and/or in
        comparison with peer group performance.

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5.  PAYMENTS. Before any payment is made under the Plan, the Committee must
    certify in writing, as reflected in the minutes, that the Performance Goals
    established with respect to an Annual Performance Award have been achieved.
    To the extent necessary with respect to any fiscal year, in order to avoid
    any undue windfall or hardship due to external causes, the Committee may
    make the determination as to whether a Performance Goal has been achieved
    without regard to the effect on the Performance Goal measure, as it may
    otherwise be presented in the financial statements, of any change in
    accounting standards, any acquisition by the Company not planned for at the
    time the Performance Goals are established or any Board-approved
    extraordinary or non-recurring event or item.

6.  STOCK RETENTION PROVISIONS.

    a.  ELIGIBILITY FOR STOCK RETENTION AWARD. Subject to the terms and
        conditions of this paragraph 6 (the "Stock Retention Provisions"), at
        the time the Committee selects Plan Participants, the Committee may
        grant to selected Plan Participants ("Stock Participants") a right (a
        "Stock Retention Award") to elect (i) to convert to shares of Common
        Stock or (ii) to defer, through The Toro Company Deferred Compensation
        Plan for Officers (the "Officers Deferred Plan"), into units having a
        value based on shares of Common Stock, up to 50% of the amount of an
        award payment under an Annual Performance Award ("Base Cash Award") and
        to receive additional incentive compensation in the form of one
        additional share or unit of Common Stock for every two shares or units
        acquired upon conversion of the Base Cash Award, up to the 50% limit
        (the "Matching Shares" or "Matching Units"). The shares or units
        acquired upon conversion of the Base Cash Award shall be retained by the
        Company during the vesting periods for the Matching Shares or Units
        described in subparagraph 6.e. Shares of Common Stock issued under the
        Stock Retention Provisions shall be called "Retained Shares" and units
        of Common Stock deferred under the Officers Deferred Plan shall be
        called "Retained Units."

    b.  NUMBER OF SHARES OR UNITS. The number of Retained Shares or Retained
        Units to be issued or credited upon conversion shall be equal to the
        dollar amount of the portion of the Base Cash Award subject to the
        election, divided by the fair market value of the Common Stock on the
        date that the Committee makes the certification required under paragraph
        5 of this Plan. Fair market value shall be the 4 p.m. Eastern Time
        closing price of one share of Common Stock, as reported by the New York
        Stock Exchange. Retained Shares shall be issued in whole shares only and
        cash shall be paid for fractional shares.

    c.  ELECTION TO EXERCISE STOCK RETENTION AWARD.

        i.  On or before the December 31 immediately preceding the end of the
            fiscal year to which a Stock Retention Award relates, a Stock
            Participant who wishes to convert a portion of a Base Cash Award
            into deferred compensation Retained Units shall notify the Company
            in writing that he or she has elected to participate in the Stock
            Retention Provisions and shall specify the percentage of the Base
            Cash Award to be converted, up to the 50% limit, except as otherwise
            provided in the Officers Deferred Plan with respect to any year in
            which that plan is materially amended or the first year in which a
            Stock Participant becomes eligible to participate in the Stock
            Retention Provisions.

        ii. On or before the September 15 immediately prior to the last day of
            the fiscal year to which a Stock Retention Award relates, a Stock
            Participant who has not elected to convert the maximum permissible
            portion of the Base Cash Award into Retained Units and who wishes to
            convert the portion of the Base Cash Award not yet subject to an
            election under paragraph 6.c.i. into Retained Shares shall notify
            the Company in writing that he or she has elected to participate in
            the Stock Retention Provisions and shall specify the percentage of
            the Base Cash Award to be converted.

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        iii. An election to participate is effective only for the fiscal year to
            which the Stock Retention Award relates.

        iv. A Stock Participant who terminates employment, dies, retires at or
            after age 65, elects early retirement at or after age 55 or becomes
            permanently disabled and unable to work during the fiscal year to
            which a Stock Retention Award relates shall not be eligible to
            participate in the Stock Retention Provisions for that fiscal year,
            and any Stock Retention Award for that year and any election made by
            the Stock Participant shall be canceled automatically as of the date
            of any such event.

    d.  MATCHING SHARES OR UNITS. As soon as practical following the conversion
        of a Base Cash Award to Retained Shares or Retained Units, the Company
        shall issue one Matching Share or credit one Matching Unit for each two
        Retained Shares or Retained Units acquired upon conversion. Matching
        Shares shall be held by the Company for the Stock Participant's account.
        Matching Shares shall be issued in whole shares only and cash shall be
        paid for fractional shares.

    e.  VESTING, DELIVERY AND DISTRIBUTION.

        i.  Vesting.

            A.  Retained Shares and Retained Units are fully vested at the time
                of issuance or crediting.

            B.  Matching Shares and Matching Units held or credited by the
                Company shall be forfeitable until they vest and shall vest in
                increments of 25% of the total number of such Matching Shares or
                Units at the end of each of the second, third, fourth and fifth
                years after the date such Matching Shares or Units are issued or
                credited, provided that such Matching Shares or Units shall vest
                only if the Stock Participant's Retained Shares or Units have
                been left on deposit with the Company through the requisite two,
                three, four and five year periods and all other requirements of
                the Plan have been met, except as may otherwise be provided in
                subparagraph 6.f.

        ii. Delivery.

            A.  Retained Shares and Matching Shares will be delivered as soon as
                possible after the applicable vesting requirements (including
                accelerated vesting under subparagraph 6.f.) have been
                fulfilled. In the event vesting requirements are not fulfilled,
                Retained Shares will be returned to a Stock Participant as soon
                as possible.

            B.  Retained Units and Matching Units that have vested will be
                distributed to a Stock Participant consistent with a Stock
                Participant's distribution election properly made in accordance
                with the provisions of the Officers Deferred Plan.

    f.  VESTING AND CANCELLATION UNDER SPECIAL CONDITIONS.

        i.  Retirement or Disability. Notwithstanding the foregoing, all
            Matching Shares or Units held in a Stock Participant's account shall
            vest in full if the participant retires on or after age 65 or
            becomes permanently disabled and unable to work. Notwithstanding the
            foregoing, if within one year after such retirement the Stock
            Participant (A) is employed or retained by or renders service to any
            organization that, directly or indirectly, competes with or becomes
            competitive with the Company, or if the rendering of such services
            is prejudicial or in conflict with the interests of the Company, or
            (B) violates any confidentiality agreement or agreement governing
            the ownership or assignment of intellectual property rights with the
            Company, or (C) engages in any other conduct or act determined to be
            injurious, detrimental or prejudicial to any interest of the
            Company, the Company may rescind or restrict such early vesting or
            withhold or have the right to the return of the economic value of
            the Matching

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            Shares or Units which vested early under this subparagraph;
            provided, however, that this provision shall not be applicable in
            the event of a Change of Control.

        ii. Early Retirement. Matching Units held in the account of a Stock
            Participant who retires at or after age 55, but before age 65, shall
            vest or be forfeited in accordance with the provisions of the
            Officers Deferred Plan. A Stock Participant who retires at or after
            age 55, but before age 65, may elect at anytime to have Retained
            Shares then on deposit with the Company delivered and to forfeit
            Matching Shares that have not yet vested. If the Stock Participant
            does not make this election, Retained Shares and Matching Shares
            shall remain on deposit until the participant reaches age 65 or
            until the applicable vesting requirements of subparagraph 6.e. have
            been fulfilled, as the case may be, and Matching Shares shall vest
            upon the occurrence of the earlier of such event. Notwithstanding
            the foregoing, if within one year after such retirement the Stock
            Participant (A) is employed or retained by or renders service to any
            organization that, directly or indirectly, competes with or becomes
            competitive with the Company, or if the rendering of such services
            is prejudicial or in conflict with the interests of the Company, or
            (B) violates any confidentiality agreement or agreement governing
            the ownership or assignment of intellectual property rights with the
            Company, or (C) engages in any other conduct or act determined to be
            injurious, detrimental or prejudicial to any interest of the
            Company, the Company may rescind or restrict such vesting or
            withhold or have the right to the return of the economic value of
            the Matching Shares or Units which vested after the date of early
            retirement under this subparagraph; provided, however, that this
            provision shall not be applicable in the event of a Change of
            Control.

        iii. Early Withdrawal. In the event that a Stock Participant elects to
            withdraw Retained Shares or Units from the account prior to age 65,
            but before the applicable vesting requirements have been fulfilled,
            Matching Shares or Units held in such participant's account that
            have not vested shall not vest and shall be forfeited.

        iv. Death. In the event of the death of a Stock Participant before the
            applicable vesting requirements have been fulfilled, the Matching
            Shares or Units shall vest in full.

        v.  Voluntary Resignation. In the event that a Stock Participant resigns
            voluntarily, Matching Shares or Units held in such participant's
            account that have not yet vested shall not vest and shall be
            forfeited, unless otherwise determined by the Chairman of the
            Committee, in his or her discretion, upon recommendation by the
            Chief Executive Officer of the Company.

        vi. Change of Control. All Matching Shares and Matching Units shall vest
            if there is a Change of Control 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 (A) the
            then-outstanding shares of Common Stock of the Company (the
            "Outstanding Company Common Stock") or (B) the combined voting power
            of the then-outstanding voting securities of the Company entitled to
            vote generally in the election of directors (the "Outstanding
            Company Voting Securities"); provided, however, that for purposes of
            this subparagraph (A), the following acquisitions shall not
            constitute a Change of Control: (a) any acquisition directly from
            the Company, (b) any acquisition by the Company, (c) any acquisition
            by any employee benefit plan (or related trust) sponsored or
            maintained by the Company or any corporation controlled by the
            Company, or (d) any acquisition by any corporation pursuant to a
            transaction that complies with clauses (a), (b) and (c) of
            subparagraph (C) of this subparagraph 8.f.vi.; or

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

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

    g.  TEMPORARY WITHDRAWAL FOR OPTION EXERCISE. A Stock Participant may
        temporarily withdraw all or a portion of Retained Shares held in the
        participant's account, but not Matching Shares or Retained or Matching
        Units, in order to exercise Company stock options, provided that an
        equal number of shares of Common Stock is promptly redeposited with the
        Company after such exercise.

    h.  DIVIDENDS AND VOTING. Dividends on Retained and Matching Shares may at
        the election of the Stock Participant be paid to such participant or
        reinvested under the Company's dividend reinvestment plan as then in
        effect. Dividends on Retained and Matching Units shall be credited under
        the Officers Deferred Plan, in additional units based on the fair market
        value of one share of the Common Stock on the dividend payment date. A
        Stock Participant shall have the right to vote Retained and Matching
        Shares.

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    i.  MAXIMUM SHARES SUBJECT TO STOCK RETENTION AWARDS. Subject to the
        provisions of this subparagraph and paragraph 3.e. hereof, the number of
        shares of Common Stock reserved and available for issuance pursuant to
        Stock Retention Awards under the Plan is 100,000. Shares of Common Stock
        that may be issued hereunder may be authorized but unissued shares,
        reacquired or treasury shares or outstanding shares acquired in the
        market or from private sources or a combination thereof. In the event of
        a corporate transaction involving the Company, the Common Stock or the
        Company's corporate or capital structure, including but not limited to
        any stock dividend, stock split, extraordinary cash dividend,
        recapitalization, reorganization, merger, consolidation,
        reclassification, split-up, spin-off, combination or exchange of shares,
        or a sale of the Company or of all or part of its assets or any
        distribution to stockholders other than a normal cash dividend, the
        Committee shall make such proportional adjustments as are necessary to
        preserve the benefits or potential benefits of the Stock Retention
        Awards. Action by the Committee may include all or any of adjustment in
        (i) the maximum number and kind of securities subject to the Plan as set
        forth in this paragraph; (ii) the maximum number and kind of securities
        that may be made subject to Stock Retention Awards for any individual as
        set forth in paragraph 3.e.; (iii) the number and kind of securities
        subject to any outstanding Stock Retention Award; (iv) the conversion
        price of a Stock Retention Award, without any change in the aggregate
        price to be paid therefor; and (v) any other adjustments that the
        Committee determines to be equitable.

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

7.  NON-TRANSFERABILITY. Neither Annual Performance Awards, Stock Retention
    Awards, Retained Shares, Matching Shares, Retained Units, Matching Units nor
    any interest in any one of such awards or shares or units or benefits may be
    anticipated, alienated, encumbered, sold, pledged, assigned, transferred or
    subjected to any charge or legal process, other than by will or the laws of
    descent and distribution, so long as the Retained and Matching Shares are
    held by the Company or the Retained and Matching Units have not been
    distributed in accordance with the Officers Deferred Plan, and any sale,
    pledge, assignment or other attempted transfer shall be null and void.

8.  ADMINISTRATION. The Committee shall have the authority to administer the
    Plan; establish policies under the Plan; amend the Plan, subject to the
    provisions of paragraph 10; interpret provisions of the Plan; select Plan
    Participants and Stock Participants; establish Performance Goals; make
    Annual Performance Awards and Stock Retention Awards; or terminate the Plan,
    in its sole discretion. The Committee may delegate certain of these
    activities and all decisions not required to be exercised by it under
    Section 162(m) or Section 16 of the Exchange Act, as it solely determines.
    All decisions of the Committee shall be final and binding upon all parties
    including the Company, its stockholders, Plan Participants and Stock
    Participants.

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

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10. PLAN AMENDMENT AND TERMINATION. The Committee may, in its sole discretion,
    amend, suspend or terminate the Plan at any time, with or without advance
    notice to Plan Participants, provided that no amendment to the Plan shall be
    effective that would increase the maximum amount payable under paragraph
    3.e. to a Plan Participant who is a person referred to in Section 162(m);
    that would change the Performance Goal criteria applicable to a Plan
    Participant who is a person referred to in Section 162(m) for payment of
    awards stated under paragraph 4; or that would modify the requirements as to
    eligibility for participation under paragraph 2, unless the stockholders of
    the Company shall have approved such change in accordance with the
    requirements of Section 162(m). No amendment, modification or termination of
    the Plan may adversely affect in a material manner any right of any Plan
    Participant with respect to any Performance Share Award theretofore granted
    without such participant's written consent.

11. EFFECTIVE DATE OF THE PLAN AND AMENDMENTS. The Plan first became effective
    on November 1, 1995. Any amendment to the Plan shall be effective on the
    date established by the Committee, subject to stockholder approval, if
    required under the provisions of paragraph 10.

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                                THE TORO COMPANY
                             2000 STOCK OPTION PLAN

1.  PURPOSE. The purpose of The Toro Company 2000 Stock Option Plan (the "Plan")
    is to enhance stockholder value of The Toro Company (the "Company") by
    providing an incentive to key employees and other key individuals who
    perform services for the Company, to contribute significantly to the
    long-term performance and growth of the Company; to link a significant
    portion of a participant's compensation to the value of the Company's Common
    Stock, par value $1.00 per share, and related Preferred Share Purchase
    Rights ("Common Stock"); and to attract and retain experienced and
    knowledgeable employees on a competitive basis. These purposes are expected
    to be achieved by granting options to acquire the Common Stock ("options").

2.  ELIGIBILITY. Any employee of the Company who is regularly employed in an
    executive, managerial, professional or technical position and any other
    individual who performs services for the Company and who contributes
    significantly to the strategic and long-term performance objectives of the
    Company is eligible to participate in the Plan. Options may be granted to
    directors of the Company who are also employees of the Company. More than
    one option may be granted to the same individual.

    a.  LIMITATIONS. No option may be granted to an individual who owns,
        directly or indirectly, Common Stock or other capital stock of the
        Company possessing more than 5% of the total combined voting power or
        value of any class of capital stock of the Company or a subsidiary
        immediately after such option is granted, and the maximum number of
        shares that may be covered by options granted to any individual during
        any calendar year shall be 100,000 shares. Except for the foregoing
        limitations, there is no minimum or maximum number of shares of Common
        Stock with respect to which options may be granted to any individual
        under the Plan. Individuals to whom options are granted are at times
        referred to as "option holders".

3.  STOCK OPTIONS.

    a.  ISOS AND NONQUALIFIED OPTIONS. Options granted under the Plan may be
        either nonqualified stock options ("nonqualified options") or incentive
        stock options ("Incentive Stock Options") as defined in Section 422 of
        the Internal Revenue Code of 1986, as amended (the "Code").

        i.  INCENTIVE STOCK OPTIONS. Incentive Stock Options shall meet the
            applicable requirements of, and contain or be deemed to contain all
            provisions required by, the Code or corresponding provisions of
            subsequent revenue laws and regulations in effect at the time such
            options are granted. Any ambiguities in construction shall be
            interpreted in order to effectuate such intent. To the extent that
            the aggregate fair market value of Common Stock (determined at the
            time of grant of the Incentive Stock Option) with respect to which
            Incentive Stock Options are exercisable for the first time by an
            option holder during any calendar year (under all such plans of the
            Company and its parent and subsidiary corporations) exceeds $100,000
            or such other limit as may be imposed by the Code, such options to
            the extent they exceed such limit shall be treated as options which
            are not Incentive Stock Options. In applying the foregoing
            limitation, options shall be taken into account in the order in
            which they were granted.

    b.  AGREEMENTS. Options shall be evidenced by stock option agreements in
        such form and not inconsistent with the Plan as the Compensation
        Committee (the "Committee") of the Board of Directors shall approve from
        time to time.

    c.  NUMBER OF SHARES, DATE OF GRANT AND TERM. An option agreement shall
        specify the number of shares of Common Stock to which it pertains; the
        date of grant, which shall be the date on which the Committee grants an
        option or any later date which the Committee specifically designates,
        and the term of the option, which shall not exceed ten years.
<PAGE>

    d.  EXERCISE PRICE. The exercise price of an option shall be not less than
        100% of fair market value of the Common Stock on the date of grant. Fair
        market value is the 4 p.m. Eastern Time closing price for the Common
        Stock as reported by the New York Stock Exchange.

    e.  VESTING, TRANSFERABILITY AND EXERCISABILITY.

        (i) VESTING. The Committee shall have the authority to determine whether
            an option agreement shall specify periods after the date of grant of
            an option during which the option or any portion thereof may not yet
            be exercisable.

       (ii) NO TRANSFER. Options shall not be transferable by the option holder
            except by will or applicable laws of descent and distribution.

      (iii) EXERCISE. During the lifetime of an option holder, options may be
            exercised only by the option holder and only while an employee of
            the Company or a parent or subsidiary of the Company or otherwise
            performing services for the Company or a parent or subsidiary and
            only if the option holder has been continuously so employed or
            engaged since the date such options were granted, except as the
            Committee may otherwise determine and provide for in an option
            agreement at the time of grant or, if the Committee does not so
            provide, as follows:

                (a) DISABILITY. In the event of disability of an option holder,
            options may be exercised by such individual or his or her guardian
            or legal representative, not later than the earlier of the date the
            option expires or one year after the date such employment or
            performance of services ceases by reason of disability, but only
            with respect to an option exercisable at the time such employment or
            performance of services ceases.

                (b) DEATH. An option may be exercised after the death of an
            option holder only by such individual's legal representatives, heirs
            or legatees, not later than the earlier of the date the option
            expires or one year after the date of death of such individual, and
            only with respect to an option exercisable at the time of death.

                (c) RETIREMENT. A nonqualified option may be exercised by an
            option holder after such individual ceases to be an employee by
            reason of retirement for up to four years after the date of
            retirement but not later than the date the option expires.
            "Retirement" shall have the meaning established by the Committee
            from time to time or, if no such meaning is established, shall mean
            termination of employment with the Company at an age and with a
            number of years of service to the Company which, when added
            together, equal at least 65.

                (d) OTHER TERMINATION OF EMPLOYMENT. An option may be exercised
            by an option holder after such individual ceases to be an employee
            (for reasons other than disability, death or retirement) for up to
            three months after the date of termination of employment but not
            later than the date the option expires.

       (iv) NON-COMPETE. Notwithstanding any other provision of paragraph 3.e.,
            if within one year after the termination of employment with or
            performance of services for the Company, an option holder is (a)
            employed or retained by or renders service to any organization that,
            directly or indirectly, competes with or becomes competitive with
            the Company, or if the rendering of such services is prejudicial or
            in conflict with the interests of the Company, or (b) violates any
            confidentiality agreement or agreement governing the ownership or
            assignment of intellectual property rights with the Company, or (c)
            engages in any other conduct or act determined to be injurious,
            detrimental or prejudicial to any interest of the Company, the
            Company may cancel or rescind or restrict all options held by such
            individual and shall have the right to the return of the economic
            value of any option which was realized or obtained (measured at the
            date of exercise) by such individual at any time during the period

                                       2
<PAGE>

            beginning on the date which is twelve months prior to the date of
            termination to the date of the last exercise, provided however, that
            this provision shall not be applicable in the event of a Change of
            Control.

        (v) INTERRUPTION IN SERVICE. Absence on leave from the Company, or other
            interruption in the performance of services, by an option holder
            shall, if approved by the Committee, not be deemed a cessation or
            interruption of employment or services for the purposes of the Plan.

    f.  METHODS OF EXERCISE AND PAYMENT OF EXERCISE PRICE. Subject to the terms
        and conditions of the Plan and the terms and conditions of the option
        agreement, an option may be exercised in whole at any time or in part
        from time to time, by delivery to the Company at its principal office of
        a written notice of exercise specifying the number of shares with
        respect to which the option is being exercised, accompanied by payment
        in full of the exercise price for shares to be purchased at that time.
        Payment may be made (i) in cash, (ii) by tendering (either actually or
        by attestation) shares of Common Stock already owned for at least six
        months (or shorter period necessary to avoid a charge to the Company's
        earnings for financial statement purposes) valued at the fair market
        value of the Common Stock on the date of exercise or (iii) in a
        combination of cash and Common Stock; or the Committee may also, in its
        sole discretion exercised either at the time the option is granted or at
        any time before an option is exercised, (iv) permit option holders to
        deliver a notice of exercise of options, together with irrevocable
        instructions, approved in advance by proper officers of the Company, (A)
        to a brokerage firm designated by the Company, to deliver promptly to
        the Company the aggregate amount of sale or loan proceeds to pay the
        exercise price and any related tax withholding obligations and (B) to
        the Company, to deliver certificates for such purchased shares directly
        to such brokerage firm, all in accordance with regulations of the
        Federal Reserve Board; or (v) authorize such other methods as it deems
        appropriate and as comply with requirements of the Code, the Securities
        Exchange Act of 1934 (the "Exchange Act") and other applicable laws and
        regulations.

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

    g.  ACCELERATED OWNERSHIP FEATURE. An option may, in the discretion of the
        Committee, include the right to acquire an accelerated ownership
        nonqualified stock option ("AO Option"). An option which provides for
        the grant of an AO Option shall entitle the option holder, upon exercise
        of that option and payment of the appropriate exercise price in shares
        of Common Stock that have been owned by such option holder for not less
        than six months prior to the date of exercise, to receive an AO Option.
        An AO Option is an option to purchase, at fair market value at the date
        of grant of the AO Option, a number of shares of Common Stock equal to
        the sum of the number of whole shares delivered by the option holder in
        payment of the exercise price of the original option and the number of
        whole shares, if any, withheld by the Company as payment for withholding
        taxes. An AO Option shall expire on the same date that the original
        option would have expired had it not been exercised. All AO Options
        shall be nonqualified options.

    h.  RIGHTS AS A STOCKHOLDER. An option holder shall have no rights as a
        stockholder with respect to any Common Stock covered by an option until
        the option is exercised and shares of Common Stock are issued. Except as
        otherwise expressly provided in the Plan, no adjustments shall be made
        for dividends or other rights for which the record date is prior to
        issuance of the Common Stock.

4.  COMMON STOCK SUBJECT TO THE PLAN. Subject to adjustment to reflect corporate
    transactions provided for in paragraph 4.a. and subject to increase by
    amendment of the Plan, the total number of shares of Common Stock that is
    reserved and available for issuance pursuant to options granted under the
    Plan shall be 1,000,000. If any option granted under the Plan terminates,
    expires unexercised, is exchanged for other options without the issuance of
    shares of Common Stock or is exercised by the delivery or constructive
    delivery of shares of Common Stock already owned by the option holder, the
    shares of

                                       3
<PAGE>

    Common Stock reserved for issuance pursuant to such option shall, to the
    extent of any such termination or to the extent shares covered by an option
    are not issued or used, again be available for option grants under the Plan.
    Any shares issued by the Company in connection with the assumption or
    substitution of outstanding grants from any acquired corporation shall not
    reduce the shares available for option grants under the Plan. Shares of
    Common Stock that may be issued under the Plan may be authorized but
    unissued shares, reacquired or treasury shares, or outstanding shares
    acquired in the market or from private sources, or a combination thereof.

    a.  ADJUSTMENTS FOR CORPORATE TRANSACTIONS. 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, extraordinary cash dividend, 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
        make such proportional adjustments as are necessary to preserve the
        benefits or potential benefits of the options. Action by the Committee
        may include appropriate adjustments in all or any of (i) the number of
        shares of the Common Stock or other new or different securities that may
        be available for option grants under the Plan; (ii) the number of shares
        of Common Stock or other new or different securities subject to
        outstanding options; (iii) the option price per share of outstanding
        options and, if deemed appropriate, cash payments; (iv) the maximum
        number and kind of securities that may be made subject to options for
        any individual as set forth in paragraph 2.a.; or (v) any other
        adjustment the Committee determines to be equitable. The Committee may
        also, in its sole discretion, make provisions in any option agreement
        for the protection of outstanding options in the event of such a
        corporate transaction.

5.  ADMINISTRATION OF THE PLAN. The Plan shall be administered by the Committee,
    provided that members of the Committee shall be "non-employee directors" as
    contemplated by Rule 16b-3 under the Exchange Act or any successor rule and
    shall qualify to administer the Plan as "outside directors" as contemplated
    by Section 162(m) of the Code and the regulations thereunder ("Section
    162(m)"). The Committee may delegate administrative duties and all decisions
    not required to be exercised by it under Section 162(m) of the Code, Section
    16 of the Exchange Act or the rules of the New York Stock Exchange to an
    officer of the Company. The decision of the Committee on any matter
    affecting the Plan and obligations arising under the Plan or any option
    granted thereunder shall be deemed final and binding upon all persons,
    including the company, its stockholders and option holders. No member of the
    Board or of the Committee shall be liable for any action taken or
    determination made in good faith with respect to the Plan or any option
    granted under the Plan.

    Subject to the express provisions of the Plan, the Committee shall have
    authority, in its discretion, to grant options; to interpret the Plan; to
    prescribe, amend and rescind rules and regulations relating to the Plan; to
    determine the exercise price of each option to purchase Common Stock, the
    individuals to whom and the time or times at which options shall be granted,
    the number of shares to be subject to each option, when an option may be
    exercisable and the other terms and provisions (and amendments thereto) of
    the respective option agreements (which need not be identical); to determine
    whether a particular option is to be an Incentive Stock Option; and to make
    all other determinations deemed necessary or advisable for the
    administration of the Plan.

6.  FOREIGN NATIONALS AND RESIDENTS OF CALIFORNIA.

    a.  FOREIGN NATIONALS. Without amending the Plan, options may be granted to
        individuals who are foreign nationals or are employed or otherwise
        performing services for the Company or any subsidiary outside the United
        States or both, on such terms and conditions different from those

                                       4
<PAGE>

        specified in the Plan as may, in the judgment of the Committee, be
        necessary or desirable to further the purposes of the Plan.

    b.  CALIFORNIA RESIDENTS. Without amending the Plan, and notwithstanding any
        provision of the Plan to the contrary, options granted to individuals
        who are residents of the State of California may contain such terms and
        conditions as may be required by applicable California statutes
        governing stock options.

7.  CHANGE OF CONTROL. In the event of a Change of Control of the Company as
    hereinafter defined, whether or not approved by the Board, all options shall
    fully vest, unless otherwise limited by the Committee at the time of the
    option grant, and be exercisable in their entirety immediately, and
    notwithstanding any other provisions of the Plan, shall continue to be
    exercisable for three years following the Change of Control, but not later
    than ten years after the date of grant.

    a.  DEFINITION. For the purpose of this paragraph 7, a "Change of Control"
        shall mean:

        (i) The acquisition by any individual, entity or group (within the
            meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a
            "Person") of beneficial ownership (within the meaning of Rule 13d-3
            under the Exchange Act) of 15% or more of either (A) the
            then-outstanding shares of Common Stock of the Company (the
            "Outstanding Company Common Stock") or (B) the combined voting power
            of the then-outstanding voting securities of the Company entitled to
            vote generally in the election of directors (the "Outstanding
            Company Voting Securities"); provided, however, that for purposes of
            this subsection (i), the following acquisitions shall not constitute
            a Change of Control: (A) any acquisition directly from the Company,
            (B) any acquisition by the Company, (C) any acquisition by any
            employee benefit plan (or related trust) sponsored or maintained by
            the Company or any corporation controlled by the Company, or (D) any
            acquisition by any corporation pursuant to a transaction that
            complies with clauses (A), (B) and (C) of subsection (iii) of this
            paragraph 7; or

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

      (iii) Consummation of a reorganization, merger or consolidation of the
            Company or sale or other disposition of all or substantially all of
            the assets of the Company or the acquisition by the Company of
            assets or stock of another entity (a "Business Combination"), in
            each case, unless, following such Business Combination, (A) all or
            substantially all of the individuals and entities who were the
            beneficial owners, respectively, of the Outstanding Company Common
            Stock and Outstanding Company Voting Securities immediately prior to
            such Business Combination beneficially own, directly or indirectly,
            more than 50% of, respectively, the then-outstanding shares of
            common stock and the combined voting power of the then-outstanding
            voting securities entitled to vote generally in the election of
            directors, as the case may be, of the corporation resulting from
            such Business Combination (including, without limitation, a
            corporation which as a result of such transaction owns the Company
            or all or substantially all of the Company's assets either directly
            or through one or more subsidiaries) in substantially the same
            proportions as their ownership, immediately prior to

                                       5
<PAGE>

            such Business Combination of the Outstanding Company Common Stock
            and Outstanding Company Voting Securities, as the case may be, (B)
            no Person (excluding any corporation resulting from such Business
            Combination or any employee benefit plan (or related trust) of the
            Company or such corporation resulting from such Business
            Combination) beneficially owns, directly or indirectly, 15% or more
            of, respectively, the then-outstanding shares of common stock of the
            corporation resulting from such Business Combination, or the
            combined voting power of the then-outstanding voting securities of
            such corporation except to the extent that such ownership existed
            prior to the Business Combination and (C) at least a majority of the
            members of the board of directors of the corporation resulting from
            such Business Combination were members of the Incumbent Board at the
            time of the execution of the initial agreement, or of the action of
            the Board, providing for such Business Combination; or

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

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

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

10. PLAN AMENDMENT AND TERMINATION. The Board may amend, suspend or terminate
    the Plan at any time, with or without advance notice to option holders,
    including an amendment to increase the number of shares of Common Stock with
    respect to which options may be granted; provided however that no amendment
    that would increase the maximum number of shares that may be subjected to
    options or that may be granted to any person referred to in Section 162(m)
    of the Code or that would modify requirements as to eligibility for
    participation in the Plan shall be effective unless the stockholders of the
    Company shall have approved the amendment in accordance with applicable
    provisions of the Code. No amendment, modification or termination of the
    Plan may adversely affect in a material manner any right of any option
    holder with respect to any option theretofore granted without such option
    holder's written consent.

11. EFFECTIVE DATE AND DURATION OF THE PLAN. The effective date of the Plan
    shall be March 29, 2000 subject to approval by stockholders. Any amendment
    to the Plan shall be effective on the date established by the Committee,
    subject to stockholder approval, if required. The Plan shall remain in
    effect until all shares reserved for issuance pursuant to the Plan have been
    purchased pursuant to options granted under the Plan, provided that options
    under the Plan must be granted not later than ten years after the effective
    date of the Plan or any future amendment approved by stockholders.

                                       6

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