Document:

exv10w4

 

EXHIBIT 10.4

TOLL BROTHERS, INC. STOCK INCENTIVE PLAN FOR EMPLOYEES (2007)

STOCK AWARD

     This Stock Award (the “Award Agreement”) constitutes an Award Agreement in connection with the
grant of an Award by Toll Brothers, Inc. (the “Company”) pursuant to the terms of the Toll
Brothers, Inc. Stock Incentive Plan for Employees (2007) (the “Plan”). This Award consists of a
grant of
                     shares of Common Stock (the “Award Shares”), granted on this ___day of ___,
20___(the “Date of Grant”) to                      (the “Grantee”), and is subject to all applicable
terms and conditions set forth in the Plan.

     1. Definitions. All capitalized terms contained in this Award Agreement shall have the
meaning set forth in the Plan unless otherwise defined herein or as may be required by the context.

     2. Restrictions on the Award Shares. Grantee shall not be permitted to sell, transfer,
pledge or assign the Award Shares at any time except to the extent such Award Shares have become
vested pursuant to the terms of this Award Agreement or the Plan. The Company shall, in its
discretion, either maintain possession of the certificates respecting the Award Shares, place the
certificates in the custody of an escrow agent for the period the Award Shares are not vested, or
transfer certificates to the Grantee; provided, however, that such certificates shall be legended
in a manner determined to be appropriate by the Committee that indicates such restrictions as are
in effect with respect to the Award Shares evidenced by such certificates.

     3. Lapse of Restrictions. Subject to the terms and conditions set forth herein and in
the Plan, the restrictions set forth in Paragraph 2 with respect to the Award Shares shall lapse
(and the Award Shares shall be considered as “vested”) with respect to ___of the Award Shares on
                    ,                      of the Award Shares on                     , and with respect to the remaining Award
Shares on                      (each such date being a “Vesting Date”); provided, however, that such lapse of
restrictions shall lapse on such dates only if the Grantee has been an employee of the Company
continuously from the Date of Grant through such Vesting Date. Except as otherwise provided,
Grantee shall forfeit any Award Shares that have not become vested as of the date Grantee’s
employment with the Company terminates.

     4. Vesting Date on Death or Disability. Notwithstanding the foregoing, the Grantee’s
Award Shares shall, if not already vested, become fully vested in the event the Grantee’s
employment with the Company terminates by reason of the Grantee’s death, or by reason of the
Grantee’s “disability” (as hereinafter defined).

For purposes of this Section 4, the term “disability” shall mean any condition that would qualify
as a “disability” as that term is defined in the Plan, and any other condition that the Committee
determines to be a medically determinable physical or mental impairment which can be expected (a)
to prevent the Grantee from being able to perform his usual duties (or another job deemed
appropriate by the Committee taking into account the Grantee’s education, prior experience and past
earnings) and (b) to last for one year or longer.

 

 

     5. Vesting on Change of Control. In the event there is a Change of Control while
Grantee is employed by the Company, Grantee’s Award Shares shall immediately become fully vested.

     6. Rights of Grantee. During the Restricted Period, Grantee shall have the right to
vote the Restricted Stock and to receive dividends. Stock dividends with respect to the Restricted
Stock shall be subject to the same restrictions as the Restricted Stock.

     7. Withholding Taxes. Grantee shall be responsible to pay to the Company the amount
of withholding taxes as determined by the Company on each Vesting Date. At the Grantee’s option,
Grantee shall have the right to relinquish to the Company a portion of the Award Shares having a
fair market value, based on the closing price of the Common Stock on the New York Stock Exchange on
the Vesting Date, equal to the amount the Grantee would otherwise be required to pay to the Company
on a Vesting Date by reason of applicable withholding taxes, in lieu of paying that amount to the
Company in cash.

     8. Notices. Any notice to the Company under this Agreement shall be made in care of
the Committee to the office of the Chief Financial Officer of the Company, at the Company’s main
offices, or to such other person as may be designated by the Committee for purposes of this Section
8 provided the Grantee is informed of such designation. All notices under this Agreement shall be
deemed to have been given when hand delivered or mailed, first class postage prepaid, and shall be
irrevocable once given.

     9. Securities Laws. The Committee may from time to time impose any conditions on the
Restricted Stock as it deems necessary or advisable to ensure that Shares are issued and resold in
compliance with the Securities Act of 1933, as amended.

     10. Delivery of Shares. Within ten (10) business days of any Vesting Date, the Company
shall, without payment from the Grantee (or the person to whom ownership rights may have passed by
will or the laws of descent and distribution) for the Restricted Stock other than the required
withholding taxes, (i) deliver to the Grantee (or such other person) a certificate for the
Restricted Stock or (ii) if consented to by the Grantee (or such other person), deliver
electronically to an account designated by the Grantee (or such other person) the Restricted Stock,
in either case without any legend or restrictions, except for such restrictions as may be imposed
by the Committee, in its sole judgment, under Paragraph 9. The Company may condition delivery of
the Restricted Stock upon the prior receipt from Grantee (or such other person) of any undertakings
which it may determine are required to assure that the shares of Restricted Stock are being issued
in compliance with federal and state securities laws. The right to payment of any fractional Shares
shall be satisfied in cash, measured by the product of the fractional amount times the fair market
value of a Share on the Vesting Date, as determined by the Committee.

     11. Award Not to Affect Service. The Award granted hereunder shall not confer upon
Grantee any right to continue as an employee of the Company or to serve in any other capacity for
the Company or any Affiliate.

 

 

     12. Amendment to Award Agreement; Acceleration. Notwithstanding anything contained
herein to the contrary, the Committee shall have the authority to amend or modify the terms and
conditions set forth in this Award Agreement if the Committee determines, at its discretion, that
any such amendment or modification is necessary or appropriate; provided, however, that the terms
of this Award Agreement may not be changed in a manner that is unfavorable to the Grantee without
the Grantee’s consent. The Committee shall have the authority to accelerate vesting in its own
discretion in amounts and under circumstances where the Committee deems it equitable to do so and
on conditions reasonably imposed by the Committee.

     13. Miscellaneous.

          (a) The address for Grantee to which notice, demands and other communications to be given or
delivered under or by reason of the provisions hereof shall be the Grantee’s address as reflected
in the Company’s personnel records.

          (b) Grantee acknowledges receipt of a copy of the Plan prospectus, included in which is a
summary of the terms of the Plan and a copy of which is annexed hereto. The summary contained
therein is qualified in its entirety by reference to the terms of the Plan, copies of which are
available with the Company’s public filings with the United States Securities and Exchange
Commission at www.sec.gov, or by oral or written request directed to the Company. The Grantee
represents that he/she is familiar with the terms and provisions of the Plan, and hereby accepts
the Award subject to all of the terms and provisions thereof. Grantee agrees to hereby accept as
binding, conclusive and final all decisions or interpretations of the Committee upon any questions
arising under the Plan or this Agreement. Grantee authorizes the Company to withhold in accordance
with applicable law from any compensation payable to him/her any taxes required to be withheld be
federal, state or local law in connection with the Award.

          (c) The validity, performance, construction and effect of this Award shall be governed by the
laws of Pennsylvania, without giving effect to principles of conflicts of law.

     IN WITNESS WHEREOF, this Award Agreement has been executed on this ___day
of                     , 20___.

	 	 	 	 	 
	TOLL BROTHERS, INC.	 	GRANTEE:
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 
	 	 
	Name:
	 	 	 	 
	Title:exv10w5

 

EXHIBIT 10.5

TOLL BROTHERS, INC.

NON-QUALIFIED STOCK OPTION GRANT

     THIS NON-QUALIFIED STOCK OPTION is granted as of [DATE] (the “Effective Date”) by TOLL
BROTHERS, INC., a Delaware corporation (the “Company”) under the Toll Brothers, Inc. Stock
Incentive Plan for Non-Employee Directors (2007) (the “Plan”), to [NAME] (the “Optionee”).

W I T N E S S E T H:

     1. Grant. As of the Effective Date, the Company granted to the Optionee an option
(the “Option”) to purchase on the terms and conditions hereinafter set forth all or any part of an
aggregate of [NUMBER] shares of the Company’s Common Stock, par value $0.01 per share, (the “Option
Shares”), at the purchase price of [$                    ] per share (the “Option Price”). The
Optionee shall have the cumulative right to exercise the Option, and the Option is only
exercisable, with respect to the following number of Option Shares on or after the following dates:

			
	 	 	 
	Number of Option Shares	 	 
	that may be purchased on
	 	Total
	or after [DATE]:
	 	Option Shares

	 	 	 	 	 	 	 	 	 
	[DATE]

	 	[DATE]
	 	[DATE]
	 	[DATE]	 	 
	 

	 	 
	 	 
	 	 	 	 
	[# OF SHARES]

	 	[# OF SHARES]
	 	[# OF SHARES]
	 	[# OF SHARES]
	 	[TOTAL]

The Committee may, in its sole discretion, accelerate the date on which the Optionee may
purchase Option Shares.

     2. Term. The Option granted hereunder shall expire in all events at 5:00 p.m. (local
Philadelphia, Pennsylvania time) on [DATE], unless sooner terminated as provided in Subparagraphs
(a), (b), (c), (d) or (e) below.

          (a) Leaving Board of Directors. Except as otherwise provided herein or in any
separate provisions applicable to this Option, the Option shall terminate three (3) months after
the Optionee ceases to be a member of the Board of Directors of the Company (the “Board”) for any
reason other than provided in paragraph 2(b) below. During such three month period the Optionee
may purchase any remaining Option Shares which could have been purchased on the date Optionee’s
service terminated, but may not
purchase any Option Shares which would otherwise first become purchasable during such three
month period.

 

 

          (b) Disability or Death. Except as otherwise provided herein or in any separate
provisions applicable to this Option, the Option shall terminate one (1) year after the Optionee’s
employment with the Company and/or its Affiliates is terminated by reason of the Optionee’s
Disability or by death. During such one year period the Optionee (or, as applicable, the
Optionee’s heirs or legal representative) may purchase any remaining Option Shares which could have
been purchased on the date Optionee’s employment terminated, but may not purchase any Option Shares
which would otherwise become purchasable during such one year period.

          (c) Change in Accounting Treatment. If the Committee finds that a change in the
financial accounting treatment for options granted under the Plan from that in effect on December
13, 2006, when the Plan was adopted, adversely affects the Company or, in the determination of the
Committee, may adversely affect the Company in the foreseeable future, the Committee may, in its
discretion, set an accelerated termination date for the Option. In such event, the Committee may
take whatever other action, including acceleration of any exercise provisions, it deems necessary.

          (d) Change in Control. In the event of a Change in Control (as defined in the Plan)
the Option shall become immediately exercisable in full. In addition, in such event the Committee
may accelerate the termination date of the Option to a date no earlier than thirty (30) days after
notice of such acceleration is given to the Optionee. Upon the giving of any such acceleration
notice, the Option shall become immediately exercisable in full.

          (e) Definitions. For purposes of this Option: (i) the term “Affiliate” shall mean a
corporation which is a parent corporation or a subsidiary corporation with respect to the Company
within the meaning of section 425(e) or (f) of the Code; (ii) the term “Cause” shall mean a breach
by the Optionee of his or her employment or service contract with the Company or an Affiliate, or
an act by the Optionee involving any sort of disloyalty to the Company or an Affiliate, including,
without limitation, fraud, embezzlement, theft, commission of a felony or proven dishonesty in the
course of his or her employment or service or a disclosure of trade secrets of the Company or an
Affiliate; (iii) the term “Committee” shall refer to the Committee designated to administer the
Plan; and (iv) the term Disabliity shall means any condition that constitutes a “disability” as
that term is defined in section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the
“Code”).

     3. General Rules. To the extent otherwise exercisable, this Option may be exercised
in whole or in part except that (a) any partial exercise of this Option must be for a round lot of
100 Option Shares or a whole number multiple thereof and (b) this Option may in no event be
exercised (i) with respect to fractional shares or (ii) after the expiration of the Option term for
any reason under Paragraph 2 hereof.

     4. Transfers. Except as otherwise provided herein or in any separate provisions
applicable to this Option, the Option is transferable by the Optionee only by will or pursuant to
the laws of descent and distribution in the event of the Optionee’s death, in which event the
Option may be exercised by the heirs or legal representatives of

 

 

the Optionee. Any attempt at
assignment, transfer, pledge or disposition of the Option contrary to the provisions hereof or the
levy of any execution, attachment or similar process upon the Option shall be null and void and
without effect. Any exercise of the Option by a person other than the Optionee shall be
accompanied by appropriate proofs of the right of such person to exercise the Option.

     5. Method of Exercise and Payment.

          (a) Method of Exercise. When exercisable under Paragraphs 1, 2 and 3, the Option may
be exercised by written notice, pursuant to Paragraph 9, to the Committee specifying the number of
Option Shares to be purchased and, unless the Option Shares are covered by a then-current
registration statement or a Notification under Regulation A under the Securities Act of 1933 (the
“Act”) and current registrations under all applicable state securities laws, containing the
Optionee’s acknowledgement, in form and substance satisfactory to the Company, that the Optionee
(a) is purchasing such Option Shares for investment and not for distribution or resale (other than
a distribution or resale which, in the opinion of counsel satisfactory to the Company, may be made
without violating the registration provisions of the Act), (b) has been advised and understands
that (i) the Option Shares have not been registered under the Act and are “restricted securities”
within the meaning of Rule 144 under the Act and are subject to restrictions on transfer and (ii)
the Company is under no obligation to register the Option Shares under the Act or to take any
action which would make available to the Optionee any exemption from such registration, and (c) has
been advised and understands that such Option Shares may not be transferred without compliance with
all applicable federal and state securities laws. The notice shall be accompanied by payment of the
aggregate Option Price of the Option Shares being purchased. Such exercise shall be effective upon
the actual receipt by the Committee of such written notice and payment. For these purposes, the
Optionee shall be deemed to have made the payment required for exercise of the Option at such time
as it is determined that satisfactory arrangements have been made to ensure payment of all amounts
as are required to be paid by Optionee in connection with the exercise of the Option.

          (b) Medium of Payment. An Optionee may pay for Option Shares, and the amount of any
tax withholding required, (i) in cash, (ii) by certified check payable to the order of the
Company, (iii) by means of arranging through a broker designated by the Company to have the broker
remit sufficient proceeds from the sale of such shares, (iv) by a combination of the foregoing, or
by such other method as the Committee may determine to be appropriate from time to time.
Furthermore, subject to the restrictions described below, payment of the Option Price of the
Option Shares being purchased may be made all or in part in shares of the Common Stock of the
Company held by the Optionee for more than one year. If payment is made in whole or in part in
shares of the Common Stock, then the Optionee shall (1) deliver to the Company certificates
registered in the name of such Optionee representing shares of Common Stock legally and
beneficially owned by such
Optionee, free of all liens, claims and encumbrances of every kind and having a fair market
value on the date of delivery of such notice that is not greater than the product of the Option
Price and the number of Option Shares with respect to which such Option is to be exercised,
accompanied by stock powers duly endorsed in blank by the record holder

 

 

of the shares represented
by such certificates or (2) attest to his ownership of shares of Common Stock having a fair market
value on the date of exercise at least equal to the options being exercised. Notwithstanding the
foregoing, the Board of Directors, in its sole discretion, may refuse to accept shares of Common
Stock in payment of the Option Price. In that event, any certificates representing shares of
Common Stock which were delivered to the Company shall be returned to the Optionee with notice of
the refusal of the Board of Directors to accept such shares in payment of the Option Price. The
Board of Directors may impose such limitations and prohibitions on the use of shares of the Common
Stock to exercise an Option as it deems appropriate.

     6. Adjustments on Changes in Common Stock. In the event that, prior to the delivery
by the Company of all of the Option Shares in respect of which the Option is granted, there shall
be an increase or decrease in the number of issued shares of Common Stock of the Company as a
result of a subdivision or consolidation of shares or other capital adjustment, or the payment of a
stock dividend or other increase or decrease in such shares, effected without receipt of
consideration by the Company, the remaining number of Option Shares still subject to the Option and
the Option Price therefor shall be adjusted in a manner determined by the Committee so that the
adjusted number of Option Shares and the adjusted Option Price shall be the substantial equivalent
of the remaining number of Option Shares still subject to the Option and the Option Price thereof
prior to such change. For purposes of this Paragraph no adjustment shall be made as a result of
the issuance of Common Stock upon the conversion of other securities of the Company which are
convertible into Common Stock.

     7. Legal Requirements. If the listing, registration or qualification of the Option
Shares upon any securities exchange or under any federal or state law, or the consent or approval
of any governmental regulatory body is necessary as a condition of or in connection with the
purchase of such Option Shares, the Company shall not be obligated to issue or deliver the
certificates representing the Option Shares as to which the Option has been exercised unless and
until such listing, registration, qualification, consent or approval shall have been effected or
obtained. If registration is considered unnecessary by the Company or its counsel, the Company may
cause a legend to be placed on the Option Shares being issued calling attention to the fact that
they have been acquired for investment and have not been registered.

     8. Administration. The Option has been granted pursuant to, and is subject to the
terms and provisions of, the Plan. All questions of interpretation and application of the Plan and
the Option shall be determined by the Committee, and such determination shall be final, binding and
conclusive. The Option shall not be treated as an incentive stock option (as such term is defined
in section 422(b) of the Code) for federal income tax purposes.

     9. Notices. Any notice to be given to the Company shall be addressed to the Committee
at its principal executive office, and any notice to be given to the Optionee shall be addressed to
the Optionee at the address then appearing on the personnel records of the Company or the Affiliate
of the Company by which he is employed, or at such other address as either party hereafter may
designate in writing to the other. Any such

 

 

notice shall be deemed to have been duly given when
deposited in the United States mail, addressed as aforesaid, registered or certified mail, and with
proper postage and registration or certification fees prepaid.

     IN WITNESS WHEREOF, the Company has granted this Option as of the day and year first above
written.

	 	 	 	 	 
	 	TOLL BROTHERS, INC.

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

(Corporate Seal)

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