TORO CO
EX-10.39
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<TYPE>EX-10.39
<SEQUENCE>2
<FILENAME>exhibit1.htm
<DESCRIPTION>EX-10.39
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<P align="left" style="margin-left:32%; font-size: 10pt"><FONT style="font-size=12pt">Exhibit&nbsp;10.39</FONT>


<P align="left" style="font-size: 12pt">October&nbsp;14, 2004


<P align="left" style="font-size: 12pt">Michael J. Hoffman


<P align="left" style="font-size: 12pt">Dear Mike:


<P align="left" style="font-size: 12pt">It is with great pleasure that I am able to offer you the position of President &#038;
<BR>
Chief Operating Officer of The Toro Company.


<P align="left" style="font-size: 12pt">On October&nbsp;14, 2004, The Toro Board of Directors elected you into this position with the
expectation that sometime during F&#146;05 you will replace me as Chief Executive Officer.


<P align="left" style="font-size: 12pt">The following confirms the terms and conditions of this offer:

<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
</TR>

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<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President &#038; Chief Operating Officer (COO)</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR></TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD colspan="3" valign="top" align="left">Effective Date: October&nbsp;18, 2004<BR></TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;<BR></TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Board Status:<BR>
<HR size="1" noshade color="#000000">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In your role as COO you will not be a member of<BR>
The Toro Board of Directors, but you will work<BR>
closely with me on all Board matters and will<BR>
attend all Board meetings. It is expected that<BR>
you will become a Board Member at the time you<BR>
are elected Chief Executive Officer.</TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Salary Grade:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Your new salary grade level will be S.G. 26.</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR></TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Base Compensation:<BR>
<HR size="1" noshade color="#000000">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Your Base Compensation effective November&nbsp;1, 2004<BR>
will be approved at the December&nbsp;2, 2004, Board<BR>
Meeting.</TD>
</TR>

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</TABLE>
</DIV>



<P align="left" style="font-size: 12pt"><U>Annual Incentive Plan:</U> Your F&#146;05 Annual Incentive Payout Target will be approved at the
December&nbsp;2, 2004, Board Meeting.


<P align="center" style="font-size: 10pt; display: none">1
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<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="32%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="63%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Long Term Incentive:<BR>
<HR size="1" noshade color="#000000">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Your F&#146;05 Long-term payout target will be<BR>
presented at the December Board meeting and<BR>
will be valued to reflect your new<BR>
responsibilities. As in the past your<BR>
long-term incentive will be a combination of<BR>
stock options and performance shares and the<BR>
shares will be granted on December&nbsp;2, 2004.</TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Perquisite:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Will remain at the current level.</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR></TD>
</TR>

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</TABLE>
</DIV>



<P align="left" style="font-size: 12pt">On behalf of The Toro Board of Directors and myself, I want to congratulate you on this achievement
and let you know that we have total confidence in your ability to lead this company through the
next phase of its success. If you accept this position I look forward to working with you as
Toro&#146;s COO and President, to ensure a successful transition during F&#146;05.


<P align="left" style="font-size: 12pt">Again, congratulations, and I look forward to your acceptance of this offer.


<P align="left" style="font-size: 12pt">Sincerely,


<P align="left" style="font-size: 12pt">/s/Ken Melrose


<P align="left" style="font-size: 12pt">Kendrick B. Melrose
<BR>
Chairman and CEO
<BR>
The Toro Company


<P align="left" style="font-size: 12pt">I consent to being named President and Chief Operating Officer of The Toro Company.

<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="95%">
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<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>

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<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10/15/04<BR>
Date:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Michael J. Hoffman<BR>
Signature:</TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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</DIV>




<P align="center" style="font-size: 10pt; display: none">2



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