Document:

exv10w14

[Ladenburg Letterhead]

September 15, 2009

SP Acquisition Holdings, Inc.

590 Madison Avenue, 32nd Floor

New York, New York 10022

Ladies and Gentlemen:

          Reference is made to that certain Underwriting Agreement (the “Underwriting Agreement”), dated
October 10, 2007, by and among SP Acquisition Holdings, Inc. (the “Company”), UBS Securities LLC,
Ladenburg Thalmann & Co. Inc. (“Ladenburg”) and the other underwriters named in Schedule A attached
thereto.

          This letter is intended to serve as formal notice to the Company that Ladenburg has agreed to
reduce the cumulative deferred underwriting commissions and discounts due to it from the Company
from $7,299,708 to $3,649,854.

          We respectfully request that you agree to and acknowledge the foregoing by
countersigning a copy of this letter and returning it to the undersigned.

	 	 	 	 	 
	 	Very Truly Yours,

LADENBURG THALMANN & CO., INC.

 	 
	 	By:  	/s/ Steven Kaplan
 	 
	 	 	Name:  	Steven Kaplan 	 
	 	 	Title:  	Managing Directorexv4w1

Exhibit 4.1

AUTHORIZING RESOLUTIONS

               These Authorizing Resolutions relate to $250,000,000 aggregate principal amount of 6.750%
Senior Notes due 2019 to be issued in accordance with the indenture dated as April 20, 2009 (as
amended and supplemented, the “Indenture”) among Toll Brothers Finance Corp. (the
“Issuer”), Toll Brothers, Inc. (the “Company”) and the other Guarantors and The
Bank of New York Mellon, as trustee (the “Trustee”). Capitalized terms not otherwise
defined herein but used below shall have the meanings given to them in the Indenture.

               PARAGRAPH 1. The title of the senior notes (the “Notes”) shall be “6.750% Senior
Notes due 2019” (the “Notes”).

               PARAGRAPH 2. The aggregate principal amount at maturity of the Notes which shall be
authenticated and delivered under the Indenture, shall be $250,000,000 (except for any Notes
authenticated and delivered upon registration of the transfer of, or in exchange for, or in lieu of
other Notes pursuant to the terms of the Indenture); provided, however, that the
Notes may be reopened for issuances of an unlimited amount of additional Notes at any time in
accordance with the terms of the Indenture. The Notes will be issued only in fully registered form
without interest coupons, in denominations of $2,000 and integral multiples of $1,000 in excess
thereof.

               PARAGRAPH 3. The principal amount of the Notes is due and payable in full on November 1,
2019, subject to earlier redemption as referred to in the Indenture.

               PARAGRAPH 4. Interest on the Notes shall accrue at a rate of 6.750% per annum (computed on
the basis of a 360-day year of twelve 30-day months), from September 22, 2009 to maturity or early
redemption; and interest will be payable semiannually in arrears on May 1 and November 1 of each
year, commencing on May 1, 2010, to the Holders in whose names such Notes are registered at the
close of business on April 15 and October 15, as the case may be, preceding such interest payment
date

               PARAGRAPH 5. The Issuer may, at its option, redeem the Notes, in whole at any time or in part
from time to time, providing notice pursuant to Section 3.03 of the Indenture, at a redemption
price equal to the greater of (a) 100% of the principal amount of the Notes to be redeemed and (b)
the sum of the present values of the Remaining Scheduled Payments (as defined below) on the Notes
being redeemed on the redemption date, discounted to the date of redemption, on a semiannual basis,
at the Treasury Rate plus 50 basis points (0.50%). The Issuer will also accrue interest on the
Notes to the date of redemption. In determining the redemption price and accrued interest,
interest will be calculated on the basis of a 360-day year consisting of twelve 30-day months.

 

 

               If money sufficient to pay the redemption price of and accrued interest on the Notes to be
redeemed is deposited with the Trustee on or before the redemption date, on and after the
redemption date interest will cease to accrue on the Notes (or such portions thereof) called for
redemption and such Notes will cease to be outstanding.

               As used in this Paragraph 5, the following terms shall have the respective meanings set forth
below:

“Comparable Treasury Issue” means the United States Treasury security selected by
the Reference Treasury Dealer as having a maturity comparable to the remaining term of the
Notes to be redeemed that would be utilized, at the time of selection and in accordance
with customary financial practice, in pricing new issues of corporate debt securities of
comparable maturity to the remaining term of such Notes.

“Comparable Treasury Price” means, with respect to any redemption date, (1) the
average of the bid and asked prices for the Comparable Treasury Issue (expressed in each
case as a percentage of its principal amount) on the third business day preceding such
redemption date, as set forth in the daily statistical release (or any successor release)
published by the Federal Reserve Bank of New York and designated “Composite 3:30 p.m.
Quotations for U.S. Government Securities” or (2) if such release (or any successor
release) is not published or does not contain such price on such business day, (A) the
average of the Reference Treasury Dealer Quotations for such redemption date, after
excluding the highest and lowest such Reference Treasury Dealer Quotations, or (B) if the
Trustee obtains fewer than four such Reference Treasury Dealer Quotations, the average of
all such quotations.

“Reference Treasury Dealer” means (A) Banc of America Securities LLC, J.P. Morgan
Securities Inc. or Citigroup Global Markets Inc. (or their respective affiliates that are
Primary Treasury Dealers (as defined below)), and any successor; provided, however, that if
any of the foregoing shall cease to be a primary U.S. government securities dealer in New
York City (a “Primary Treasury Dealer”), the Issuer will substitute therefor
another Primary Treasury Dealer; and (B) any other Primary Treasury Dealer(s) selected by
the Issuer.

“Reference Treasury Dealer Quotations” means, with respect to each Reference
Treasury Dealer and any redemption date, the average, as determined by the Trustee, of the
bid and asked prices for the Comparable Treasury Issue (expressed in each case as a
percentage of its principal amount) quoted in writing to the Trustee by such Reference
Treasury Dealer at 5:00 p.m. on the third business day preceding such redemption date.

“Remaining Scheduled Payments” means, with respect to any Note, the remaining
scheduled payments of the principal thereof to be redeemed and interest thereon that would
be due after the related redemption date but for such redemption;

 

 

provided, however, that if such redemption date is not an interest payment date with
respect to such Note, the amount of the next succeeding scheduled interest payment thereon
will be reduced by the amount of interest accrued thereon to such redemption date.

“Treasury Rate” means, with respect to any redemption date, the rate per annum
equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue,
assuming a price for the Comparable Treasury Issue (expressed as a percentage of its
principal amount) equal to the Comparable Treasury Price for such redemption date.

               PARAGRAPH 6. If a Change of Control Repurchase Event occurs, unless the Issuer has previously
exercised its right to redeem the Notes as described above, the Issuer will make an offer to each
Holder of Notes to repurchase all or any part (in amounts of $2,000 or in integral multiples of
$1,000 in excess thereof) of that Holder’s Notes at a repurchase price in cash equal to 101% of the
aggregate principal amount of repurchased Notes plus any accrued and unpaid interest on the
repurchased Notes to the date of purchase. Within 30 days following any Change of Control
Repurchase Event or, at the Issuer’s option, prior to any Change of Control, but after the public
announcement of the Change of Control, the Issuer will mail a notice to each Holder, with a copy to
the Trustee, describing the transaction or transactions that constitute or may constitute the
Change of Control Repurchase Event and offering to repurchase Notes on the payment date specified
in the notice, which date will be no earlier than 30 days and no later than 60 days from the date
such notice is mailed. The notice shall, if mailed prior to the date of consummation of the Change
of Control, state that the offer to purchase is conditioned on the Change of Control Repurchase
Event occurring on or prior to the payment date specified in the notice. The Issuer will comply
with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and
regulations under the Exchange Act to the extent those laws and regulations are applicable in
connection with the repurchase of the Notes as a result of a Change of Control Repurchase Event. To
the extent that the provisions of any securities laws or regulations conflict with the Change of
Control Repurchase Event provisions herein, the Issuer will comply with the applicable securities
laws and regulations and will not be deemed to have breached its obligations under the Change of
Control Repurchase Event provisions herein by virtue of such conflict.

          On the Change of Control Repurchase Event payment date, the Issuer will, to the extent lawful:

	 	•	 	accept for payment all Notes or portions of Notes properly tendered pursuant to the
Issuer’s offer;
	 
	 	•	 	deposit with the Paying Agent an amount equal to the aggregate purchase price in
respect of all Notes or portions of Notes properly tendered; and
	 
	 	•	 	deliver or cause to be delivered to the Trustee the Notes properly accepted, together
with an Officers’ Certificate stating the aggregate principal amount of Notes being
purchased by the Issuer.

 

 

          The Paying Agent will promptly mail to each Holder of properly tendered Notes the purchase
price for the Notes, and the Trustee will promptly authenticate and mail (or cause to be
transferred by book-entry) to each Holder a new Note equal in principal amount to any unpurchased
portion of any Notes surrendered; provided that each new Note will be in a principal amount of
$2,000 or an integral multiple of $1,000 in excess thereof.

          The Issuer will not be required to make an offer to repurchase the Notes upon a Change of
Control Repurchase Event if a third party makes such an offer in the manner, at the times and
otherwise in compliance with the requirements for an offer made by the Issuer and such third party
purchases all Notes properly tendered and not withdrawn under its offer.

          As used in this paragraph 6, the following terms shall have the respective meanings set forth
below:

“Below Investment Grade Rating Event” means the Notes are rated below Investment
Grade (defined below) by all three Rating Agencies on any date from the date of the public
notice of an arrangement that could result in a Change of Control until the end of the
60-day period following public notice of the occurrence of a Change of Control (which
period shall be extended so long as the rating of the Notes is under publicly announced
consideration for possible downgrade by either of the Rating Agencies); provided that a
Below Investment Grade Rating Event otherwise arising by virtue of a particular reduction
in rating shall not be deemed to have occurred in respect of a particular Change of Control
(and thus shall not be deemed a Below Investment Grade Rating Event for purposes of the
definition of Change of Control Repurchase Event) if the Rating Agencies making the
reduction in rating to which this definition would otherwise apply do not announce or
publicly confirm or inform the Trustee in writing at the Company’s request that the
reduction was the result, in whole or in part, of any event or circumstance comprised of or
arising as a result of, or in respect of, the applicable Change of Control (whether or not
the applicable Change of Control shall have occurred at the time of the Below Investment
Grade Rating Event).

“Change of Control” means the consummation of any transaction (including, without
limitation, any merger or consolidation) the result of which is that any “person” (as that
term is used in Section 13(d)(3) of the Exchange Act) becomes the beneficial owner,
directly or indirectly, of more than 50% of the Company’s Voting Stock (defined below),
measured by voting power rather than number of shares. Notwithstanding the foregoing, a
transaction will not be deemed to involve a Change of Control if (1) the Company becomes a
wholly owned subsidiary of a holding company and (2) the holders of the Voting Stock of
such holding company immediately following that transaction are substantially the same as
the holders of the Company’s Voting Stock immediately prior to that transaction.

 

 

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

“Fitch” means Fitch Ratings, Ltd., a division of Fitch Inc.

“Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent
under any successor rating categories of Moody’s); a rating of BBB- or better by Fitch (or
its equivalent under any successor rating categories of Fitch); a rating of BBB- or better
by S&P (or its equivalent under any successor rating categories of S&P); and the equivalent
Investment Grade credit rating from any additional Rating Agency or Rating Agencies
selected by the Company.

“Rating Agency” means (1) each of Moody’s, Fitch and S&P; and (2) if any of
Moody’s, Fitch or S&P ceases to rate the Senior Notes or fails to make a rating of the
Senior Notes publicly available (for reasons outside of our control), a “nationally
recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F)
under the Exchange Act, selected by the Company (as certified by a resolution of our board
of directors) as a replacement agency for Moody’s, Fitch or S&P, or all three, as the case
may be.

“Moody’s” means Moody’s Investor Services, Inc.

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

“Voting Stock” of any specified “person” (as that term is used in Section 13(d)(3)
of the Exchange Act) as of any date means the capital stock of such person that is at the
time entitled to vote generally in the election of the board of directors of such person.

               PARAGRAPH 7. Principal of and interest on the Notes shall be payable in accordance with
Section 1 and 2 of the Notes.

               PARAGRAPH 8. The Notes shall not be convertible into the Issuer’s or any of the Guarantors’
common stock.

               PARAGRAPH 9. Neither the Notes nor the Guarantees shall be secured.

               PARAGRAPH 10. As used in the Indenture, the following terms shall have the respective
meanings set forth below:

“Attributable Debt” means, in respect of a Sale and Lease-back Transaction, the
present value (discounted at the weighted average effective interest cost per annum of the
outstanding senior notes of all series issued by the Issuer, compounded semiannually) of
the obligation of the lessee for rental payments during the remaining term of the lease
included in such transaction, including any period for which such lease has been extended
or may, at the option of the lessor,

 

 

be extended or, if earlier, until the earliest date on which the lessee may terminate such
lease upon payment of a penalty (in which case the obligation of the lessee for rental
payments shall include such penalty), after excluding all amounts required to be paid on
account of maintenance and repairs, insurance, taxes, assessments, water and utility rates
and similar charges.

“Consolidated Net Tangible Assets” means the total amount of assets which would be
included on a combined balance sheet of the Issuer, the Company and the other Guarantors
under accounting principles generally accepted in the United States (less applicable
reserves and other properly deductible items) after deducting therefrom: (1) all short-term
liabilities, except for liabilities payable by their terms more than one year from the date
of determination (or renewable or extendible at the option of the obligor for a period
ending more than one year after such date) and liabilities in respect of retiree benefits
other than pensions for which the Restricted Subsidiaries are required to accrue pursuant
to Statement of Financial Accounting Standards No. 106; (2) investments in subsidiaries
that are not Restricted Subsidiaries; and (3) all goodwill, trade names, trademarks,
patents, unamortized debt discount, unamortized expense incurred in the issuance of debt
and other tangible assets.

“Existing Indentures” means (1) the Indenture dated as of November 22, 2002, among
the Issuer, the guarantors named therein and The Bank of New York Mellon (as successor to
J.P. Morgan Trust Company, National Association), as trustee, as amended and supplemented
by the First Supplemental Indenture through the Seventeenth Supplemental Indenture and as
may be further amended and supplemented and (2) the Indenture dated as of April 20, 2009,
among Toll Brothers Finance, the guarantors named therein and The Bank of New York Mellon,
as trustee, as amended and supplemented by the resolutions dated as of April 20, 2009
authorizing the 8.910% Senior Notes due 2017.

“Sale and Lease-back Transaction” means a sale or transfer made by the Issuer, the
Company or a Restricted Subsidiary (except a sale or transfer made to the Issuer, the
Company or another Restricted Subsidiary) of any property which is either (a) a
manufacturing facility, office building or warehouse whose book value equals or exceeds 1%
of Consolidated Net Tangible Assets as of the date of determination or (b) another property
(not including a model home) which exceeds 5% of Consolidated Net Tangible Assets as of the
date of determination, if such sale or transfer is made with the agreement, commitment or
intention of leasing such property to the Issuer, the Company or a Restricted Subsidiary
for more than a three-year term.

“Secured Debt” means any Indebtedness which is secured by (i) a Security Interest
in any of the property of the Issuer, the Company or any Restricted Subsidiary or (ii) a
Security Interest in shares of stock owned directly or indirectly by the Issuer, the
Company or a Restricted Subsidiary in a corporation or in equity interests owned by the
Issuer, the Company or a Restricted Subsidiary in a

 

 

partnership or other entity not organized as a corporation or in the Company’s rights or
the rights of a Restricted Subsidiary in respect of Indebtedness of a corporation,
partnership or other entity in which the Issuer, the Company or a Restricted Subsidiary has
an equity interest; provided that “Secured Debt” shall not include Non-Recourse
Indebtedness, as such categories of assets are determined in accordance with accounting
principles generally accepted in the United States. The securing in the foregoing manner of
any such Indebtedness which immediately prior thereto was not Secured Debt shall be deemed
to be the creation of Secured Debt at the time security is given.

“Security Interests” means any mortgage, pledge, lien, encumbrance or other
security interest which secures the payment or performance of an obligation.

               PARAGRAPH 11. The Notes shall be entitled to the benefit of each of the covenants in Article
4 of the Indenture and each of the following additional covenants (each of which is deemed to be a
provision of the Indenture and, when referred to as a provision of the Indenture, shall be
identified by reference to the Section number which is set forth immediately preceding such
covenant):

Section 4.06. Restrictions on Secured Debt.

               The Issuer and the Company shall not, and shall not cause or permit a Restricted Subsidiary
to, create, incur, assume, or guarantee any Secured Debt unless the Notes will be secured equally
and ratably with (or prior to) such Secured Debt; provided, however, that this Section 4.06 does
not prohibit the creation, incurrence, assumption or guarantee of Secured Debt which is secured by:

     (1) Security Interests in model homes, homes held for sale, homes that are under
contract for sale, contracts for the sale of homes, land (improved or unimproved),
manufacturing plants, warehouses or office buildings and fixtures and equipment located
thereat or thereon;

     (2) Security Interests in property at the time of its acquisition by the Issuer, the
Company or a Restricted Subsidiary, including Capitalized Lease Obligations, which Security
Interests secure obligations assumed by the Issuer, the Company or a Restricted Subsidiary,
or in the property of a corporation or other entity at the time it is merged into or
consolidated with the Issuer, the Company or a Restricted Subsidiary (other than Secured
Debt created in contemplation of the acquisition of such property or the consummation of
such a merger or where the Security Interest attaches to or affects the property of the
Issuer, the Company or a Restricted Subsidiary prior to such transaction);

     (3) Security Interests arising from conditional sales agreements or title retention
agreements with respect to property acquired by the Issuer, the Company or a Restricted
Subsidiary;

 

 

     (4) Security Interests incurred in connection with pollution control, industrial
revenue, water, sewage or any similar item; and

     (5) Security Interests securing Indebtedness of a Restricted Subsidiary owing to the
Issuer, the Company or to another Restricted Subsidiary that is wholly-owned (directly or
indirectly) by the Company or Security Interests securing the Issuer’s Indebtedness owing
to a Guarantor.

               Additionally, such permitted Secured Debt includes any amendment, restatement, supplement,
renewal, replacement, extension or refunding, in whole or in part, of Secured Debt permitted at the
time of the original incurrence thereof.

               In addition, the Issuer and the Guarantors may create, incur, assume or guarantee Secured
Debt, without equally and ratably securing the Notes, if immediately thereafter the sum of (1) the
aggregate principal amount of all Secured Debt outstanding (excluding Secured Debt permitted under
clauses (1) through (5) above and any Secured Debt in relation to which the Notes have been equally
and ratably secured) and (2) all Attributable Debt in respect of Sale and Lease-back Transactions
(excluding Attributable Debt in respect of Sale and Lease-back Transactions as to which the
provisions of clauses (1) through (3) of Section 4.07 “Restrictions on Sale and Lease-back
Transactions” have been complied with) as of the date of determination would not exceed 20% of
Consolidated Net Tangible Assets.

               The provisions of this Section 4.06 with respect to limitations on Secured Debt are not
applicable to Non-Recourse Indebtedness and will not restrict or limit the Issuer’s or any
Guarantor’s ability to create, incur, assume or guarantee any unsecured Indebtedness, or the
ability of any subsidiary which is not a Restricted Subsidiary to create, incur, assume or
guarantee any secured or unsecured Indebtedness.

Section 4.07. Restrictions on Sale and Lease-back Transactions.

               The Issuer and the Company shall not, and shall not permit a Restricted Subsidiary to, enter
into any Sale and Lease-back Transaction, unless:

     (1) notice is promptly given to the Trustee of the Sale and Lease-back Transaction;

     (2) fair value is received by the Issuer, the Company or the relevant Restricted
Subsidiary for the property sold (as determined in good faith by the Company communicated
in writing to the Trustee); and

     (3) the Issuer, the Company or a Restricted Subsidiary, within 365 days after the
completion of the Sale and Lease-back Transaction, applies, or enters into a definitive
agreement to apply within such 365-day period, an amount equal to the net proceeds of such
Sale and Lease-back Transaction (x) to the redemption, repayment or retirement of (a)
Securities of any Series under the Existing

 

 

Indentures (including the cancellation by the Trustee of any securities of any series
delivered by the Issuer to the Trustee), (b) Indebtedness of the Issuer that ranks equally
with the Notes or (c) Indebtedness of any Guarantor that ranks equally with the Guarantee
of such Guarantor, and/or (y) to the purchase by the Issuer, the Company or any Restricted
Subsidiary of property used in their respective trade or businesses.

               This Section 4.07 will not apply to a Sale and Lease-back Transaction that relates to a sale
of a property that occurs within 180 days from the later of (x) the date of acquisition of the
property by the Issuer, the Company or a Restricted Subsidiary, (y) the date of the completion of
construction of that property or (z) the date of commencement of full operations on that property.
In addition, the Issuer and the Guarantors may, without complying with the above restrictions,
enter into a Sale and Lease-back Transaction if immediately thereafter the sum of (1) the aggregate
principal amount of all Secured Debt outstanding (excluding Secured Debt permitted under clauses
(1) through (5) described in Section 4.06 “Restrictions on Secured Debt” and any Secured Debt in
relation to which the Notes have been equally and ratably secured) and (2) all Attributable Debt in
respect of Sale and Lease-back Transactions (excluding Attributable Debt in respect of Sale and
Lease-back Transactions as to which the provisions of clauses (1) through (3) of this Section 4.07
have been complied with) as of the date of determination would not exceed 20% of Consolidated Net
Tangible Assets.

               PARAGRAPH 12. Except as otherwise indicated, each reference herein to a “Paragraph” shall
refer to a Paragraph hereof, and each reference herein to a “Section shall refer to a Section of
the Indenture.

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