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<p align="center" style=' margin-bottom:0pt; margin-top:0pt;'><B><font style='font-size:16PT'>UNITED STATES</font></B></p>

<p align="center" style=' margin-bottom:0pt; margin-top:0pt;'><B><font style='font-size:16PT'>SECURITIES AND EXCHANGE COMMISSION</font></B></p>

<p align="center" style=' margin-bottom:0pt; margin-top:0pt;'><b><font style='font-size:10pt'>Washington, DC 20549</font></b></p>


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<p align="center" style=' margin-bottom:0pt; margin-top:12pt;'><B><font style='font-size:16PT'>FORM 8-K</font></B></p>

<p align="center" style=' margin-bottom:0pt; margin-top:12pt;'><B><font style='font-size:10PT'>CURRENT REPORT</font></B></p>

<p align="center" style=' margin-bottom:0pt; margin-top:0pt;'><b><font style='font-size:10pt'>PURSUANT TO SECTION 13 OR 15(d) OF THE</font></b></p>

<p align="center" style=' margin-bottom:0pt; margin-top:0pt;'><B><font style='font-size:10PT'>SECURITIES EXCHANGE ACT OF 1934</font></B></p>

<p align="center" style=' margin-bottom:0pt; margin-top:12pt;'><font style='font-size:10pt'><b>Date
  of report (Date of earliest event reported):</b></font><b><font style='font-size:10pt'>
  </font></b><font style='font-size:10pt'><b>December 15, 2006</b></font></p>

<p align="center" style=' margin-bottom:0pt; margin-top:8pt;'><b><font style='font-size:18pt'>Toll Brothers, Inc.</font></b></p>

<p align="center" style=' margin-bottom:0pt; margin-top:0pt;'><font style='font-size:10pt'>(Exact Name of Registrant as Specified in Charter)</font></p>
<p align="center" style=' margin-bottom:0pt; margin-top:12pt;'><font style='font-size:10pt'>&nbsp;</font></p>

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                    <td align=center valign=top width="280"><b><font style='font-size:10pt'>Delaware</font></b><br>
<font style='font-size:10pt'>(State or Other Jurisdiction</font><br>
<font style='font-size:10pt'>of Incorporation)</font><br></td>
        <td align=center valign=top width="280"><b><font style='font-size:10pt'>001-09186</font></b><br>
            <font style='font-size:10pt'>(Commission</font><br>
<font style='font-size:10pt'>File Number)</font><br></td>
        <td align=center valign=top width="280"><b><font style='font-size:10pt'>23-2416878</font></b><br>
            <font style='font-size:10pt'>(IRS Employer</font><br>
<font style='font-size:10pt'>Identification No.)</font><br></td>
        <td width="50">&nbsp;</td></tr></table>
            <p align="center" style=' margin-bottom:0pt; margin-top:6pt;'><font style='font-size:10pt'>&nbsp;</font></p>

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        <td width="50">&nbsp;</td>
                    <td align=center valign=top width="280"><b><font style='font-size:10pt'>250 Gibraltar Road, Horsham, PA</font></b><br>
<font style='font-size:10pt'>(Address of Principal Executive Offices)</font><br></td>
        <td align=center width="280" >&nbsp;</td>
                    <td align=center valign=top width="280"><b><font style='font-size:10pt'>19044</font></b><br>
<font style='font-size:10pt'>(Zip Code)</font></td>
        <td width="50">&nbsp;</td></tr></table>

<p align="center" style=' margin-bottom:0pt; margin-top:12pt;'><font style='font-size:10pt'><b>Registrant&#146;s
  telephone number, including area code:</b> </font><b><font style='font-size:10pt'>(215)
  938-8000</font></b></p>

<p align="center" style=' margin-bottom:0pt; margin-top:12pt;'><font style='font-size:10pt'>&nbsp;</font></p>

<p align="left" style=' margin-bottom:0pt; margin-top:0pt;'><font style='font-size:10pt'>&nbsp;</font></p>
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<p align="center" style=' margin-bottom:0pt; margin-top:0pt;'><font style='font-size:10pt'>(Former Name or Former Address, if Changed Since Last Report)</font></p>

<p align="left" style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;'><font style='font-size:10pt'>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):</font></p>

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            <p style=' margin-bottom:0pt; margin-top:12pt;'><font style='font-size:10pt'>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></td></tr></table>

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            <p style=' margin-bottom:0pt; margin-top:12pt;'><font style='font-size:10pt'>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></td></tr></table>

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            <p style=' margin-bottom:0pt; margin-top:12pt;'><font style='font-size:10pt'>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></td></tr></table>

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            <p style=' margin-bottom:0pt; margin-top:12pt;'><font style='font-size:10pt'>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></td></tr></table>

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<p align=left style='margin-Top:0pt;margin-bottom:0pt;'><B><font style='font-size:10PT'>ITEM 5.02.</font></B></p> </td>

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<p align=left style='margin-Top:0pt;margin-bottom:0pt;'><B><font style='font-size:10PT'>COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS.</font></B></p> </td> </tr></table>
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<p align="left" style=' margin-bottom:0pt; margin-top:12pt;'><u><b><font style='font-size:10pt'>Amendment to the Toll Brothers, Inc. Cash Bonus Plan</font></b></u></p>

<p align="left" style=' margin-bottom:0pt; margin-top:8pt;'><font style='font-size:10pt'>As
    more fully described below, the Toll Brothers, Inc. Cash Bonus Plan, as amended
    (the &#147;Plan&#148;), was further amended on December 15, 2006 to reduce
    the amount of bonus payable under the Plan for fiscal 2006 to Mr.&nbsp;Robert
    I. Toll, Chairman and Chief Executive Officer of Toll Brothers, Inc. (the &#147;Company&#148;).
    In addition, Mr.&nbsp;Toll agreed to receive $3,000,000 of restricted stock
    in exchange for $3,000,000 of cash and unrestricted stock he is entitled
    to receive under the Plan.</font></p>

<p align="left" style=' margin-bottom:0pt; margin-top:8pt;'><font style='font-size:10pt'>The
    Plan, as amended on December 7, 2005 (the &#147;2005 Plan Amendment&#148;),
    provides that Mr.&nbsp;Toll will receive a cash bonus award (before the stock
    conversion feature described below) for the fiscal years ending October&nbsp;31,
    2005, 2006 and 2007, equal
    to the sum of (i) 1.5% of the Company&#146;s income before income taxes (as
    defined in the Plan) in excess of 10% and up to 20% of shareholders&#146; equity
    (as defined in the Plan) of the Company as of the end of the preceding fiscal
    year, (ii)
    2.25%
    of
    the Company&#146;s income before income taxes in excess of 20% and up to
    30% of shareholders&#146; equity of the Company as of the end of the preceding
    fiscal year, and (iii) 3.5% of the Company&#146;s income before income taxes
    in excess of 30% of shareholders&#146; equity of the Company as of the end
    of the preceding fiscal year. The Plan also provides that, for each of the
    fiscal years ending October 31, 2005, 2006 and 2007, the cash bonus award
     will be adjusted by applying a stock conversion feature as follows: (a)
    the cash bonus award will be converted into shares by dividing the cash bonus
    award by the closing price on the New York Stock Exchange (&#147;NYSE&#148;)
    of the Company&#146;s common stock on the last trading day of the Company&#146;s
    2004 fiscal year, October 29, 2004 which was $23.175 (the &#147;Award Conversion
    Price&#148;),
    and (b) the number of shares calculated in (a) will then be multiplied by
    the closing price of the Company&#146;s common stock on the NYSE on the last
    trading day of the fiscal year for which the bonus is being calculated (the &#147;Stock-Adjusted
    Bonus Value&#148;). The Stock-Adjusted Bonus Value, subject to the caps or
    limitations outlined below, will be paid 60% in cash, with the remaining
    40% being paid in shares of the Company&#146;s common stock, calculated by
    dividing 40% of the Stock-Adjusted Bonus Value by the closing price of the
    Company&#146;s common stock on the NYSE on the last trading day of
the fiscal year for which the bonus is applicable. The Plan provides that the
    price of the Company&#146;s common stock used in determining the Stock-Adjusted
    Bonus Value may not exceed 160% of the Award Conversion Price and the Stock-Adjusted
    Bonus Value is further capped so that it may not exceed 2.9% of the Company&#146;s
    income before income taxes (as defined in the Plan). The 2005 Plan Amendment
    reduced Mr.&nbsp;Toll&#146;s potential bonus amount by providing that, with
    respect to the Company&#146;s fiscal years ended October 31, 2006 and ending
    October 31, 2007, in the event, as of the last day of either such fiscal
    year, the closing price per share on the NYSE is equal to or less than $36.91
    (the closing price per share on the NYSE of the Company&#146;s common stock
    on the last day of the Company&#146;s fiscal year ended October 31, 2005),
    and greater than or equal to the Award Conversion Price, the cash bonus award
    will not be adjusted by applying the stock conversion feature  as described
    above to achieve a Stock-Adjusted Bonus Value. Pursuant to the terms of the
    Plan, because the closing price per share on the NYSE of the Company&#146;s
    common stock on the last day of the Company&#146;s fiscal year ended October
    31, 2006 was less than $36.91, Mr.&nbsp;Toll&#146;s cash bonus award for
    fiscal 2006 under the Plan was not adjusted as described above to achieve
    a Stock-Adjusted Bonus Value. Under the terms of the Plan, Mr.&nbsp;Toll
    was entitled to receive a cash bonus award for fiscal 2006 of $21,531,042. </font></p>
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<p align="left" style=' margin-bottom:0pt; margin-top:8pt;'><font style='font-size:10pt'>On
    December 15, 2006, the Executive Compensation Committee of the Board of Directors
    adopted, and Mr.&nbsp;Toll consented to, an additional amendment to the Plan
    (the &#147;2006 Plan Amendment&#148;), to reduce by $4,000,000 the cash bonus
    award for fiscal 2006 that Mr.&nbsp;Toll was entitled to receive under the
    Plan. Accordingly, the 2006 Plan Amendment provides for a cap of $17,531,042
    on the bonus award payable to Mr.&nbsp;Toll under the Plan for fiscal 2006,
    and, consistent therewith, the Executive Compensation Committee approved the
    bonus award to Mr.&nbsp;Toll in that amount for fiscal 2006, payable on
    January 5, 2007. Mr.&nbsp;Toll&#146;s fiscal 2006 bonus award, as capped
    by the 2006 Plan Amendment, is payable 60% in cash and 40%
    in shares of the Company&#146;s
    common stock, calculated by dividing 40% of $17,531,042 by $28.91 (the closing
    price of the Company&#146;s common stock on the
NYSE on the last day of the Company&#146;s fiscal year ended October 31, 2006).
The Company has agreed to indemnify Mr.&nbsp;Toll from and against any damages
or financial liabilities he suffers or incurs, including any liabilities to the
United States government, solely arising out of or resulting from the 2006 Plan
Amendment.</font></p>

<p align="left" style=' margin-bottom:0pt; margin-top:8pt;'><font style='font-size:10pt'>In
    addition, Mr.&nbsp;Toll will receive $3,000,000 worth of restricted shares
    of the Company&#146;s common stock, in exchange for $3,000,000 of cash
    and unrestricted stock he is entitled to receive as part of his fiscal 2006
    bonus
    award under
    the Plan (valued as of the Plan valuation date of October 31, 2006). The restricted stock Mr.&nbsp;Toll is receiving will vest over
    a two year period, and the number of restricted shares will be calculated
    by dividing $3,000,000 by the closing price of the Company&#146;s common
    stock on the NYSE on January 5, 2007, the date of his fiscal 2006 bonus award
    payment and the date he will receive the restricted shares.</font></p>

<p align="left" style=' margin-bottom:0pt; margin-top:12pt;'><u><b><font style='font-size:10pt'>Executive Officer Cash Bonus Plan - Fiscal 2007 Performance Goals</font></b></u></p>

<p align="left" style=' margin-bottom:0pt; margin-top:8pt;'><font style='font-size:10pt'>On December 15, 2006, the Executive Compensation Committee of the Board of Directors of the Company determined that bonuses under the Executive Officer Cash Bonus Plan (the &#147;Bonus Plan&#148;) for the Company&#146;s 2007 fiscal year for each of Messrs.&nbsp;Zvi Barzilay, the Company&#146;s President and Chief Operating Officer, and Joel H. Rassman, the Company&#146;s Executive Vice President, Treasurer and Chief Financial Officer (the designated participants in the Bonus Plan) shall be calculated based upon two components - (a) an individual performance goal component, and (b) a company performance goal component.</font></p>

<p align="left" style=' margin-bottom:0pt; margin-top:8pt;'><font style='font-size:10pt'>The company performance goal component is stated in terms of the Company&#146;s attainment of specified levels of adjusted pre-tax earnings during fiscal 2007, and the maximum amount of the bonuses payable under this component is determined by application of a formula to the Company&#146;s actual adjusted pre-tax earnings for fiscal 2007 in excess of a series of targeted levels of adjusted pre-tax earnings.</font></p>

<p align="left" style=' margin-bottom:0pt; margin-top:8pt;'><font style='font-size:10pt'>The
    individual performance goals for Mr.&nbsp;Barzilay are based on various factors
    including, among other things, involvement with the operations of the Company,
    land transactions, support departments of the Company and land development.</font></p>
<p align="left" style=' margin-bottom:0pt; margin-top:8pt;'><font size="2" face="serif">The
    individual performance goals for Mr. Rassman are based on various factors
    including, among other things, involvement with the Company&#146;s financing
activities, reporting of financial performance and investor relations.</font></p>
<p align="left" style=' margin-bottom:0pt; margin-top:8pt;'><font size="2" face="serif">The
    bonuses payable for fiscal 2007 are subject to all applicable limitations
    of the Bonus Plan, including the Bonus Plan's limitations on aggregate payments
    to any one participant during any one Plan Year (defined in the Bonus Plan
    as the Company's fiscal year) and, with respect to the individual performance
    goal component described above, the Company's revenues exceeding a certain
level.</font></p>
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<p align=left style='margin-Top:0pt;margin-bottom:0pt;'><b><font style='font-size:10pt'>Item 9.01.</font></b></p> </td>

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<p align=left style='margin-Top:0pt;margin-bottom:0pt;'><b><font style='font-size:10pt'>Financial Statements and Exhibits.</font></b></p> </td> </tr></table>
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<p align="left" style=' margin-bottom:0pt; margin-top:8pt;'><font style='font-size:10pt'>(c). Exhibits.</font></p>

<p align="left" style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;'><font style='font-size:10pt'>The following Exhibit is filed as part of this Current Report on Form 8-K:</font></p>

<p align="left" style=' margin-bottom:0pt; margin-top:0pt;'><font style='font-size:10pt'>&nbsp;</font></p>


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        <p align=center style='margin-Top:0pt;margin-bottom:0pt;'><b><font style='font-size:8pt'>Exhibit
          No.</font></b></p> </td>


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<p align=left style='margin-Top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p align=center style='margin-Top:0pt;margin-bottom:0pt;'><b><font style='font-size:8pt'>Item</font></b></p> </td> </tr>
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<p align=left style='margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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        <p align=left style='margin-Top:0pt;margin-bottom:0pt;'><font style='font-size:10pt'>10.1* </font></p>
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        <p align=left style='margin-Top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
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        <p align=left style='margin-Top:0pt;margin-bottom:0pt;'><font style='font-size:10pt'>Amendment
            to the Toll Brothers, Inc. Cash Bonus Plan dated December 15, 2006. </font></p>
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        <p align=left style='margin-Top:0pt;margin-bottom:0pt;'><font style='font-size:10pt'>10.2*
          </font></p>
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<p align=left style='margin-Top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p align=left style='margin-Top:0pt;margin-bottom:0pt;'><font style='font-size:10pt'>Executive
    Officer Cash Bonus Plan Fiscal 2007 Performance Goals.</font></p> </td> </tr></table>
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<p align=left style='margin-Top:0pt;margin-bottom:0pt;'><font style='font-size:10pt'>Filed electronically herewith.</font></p> </td> </tr></table>
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<p align="center" style=' margin-bottom:0pt; margin-top:12pt;'><font style='font-size:10pt'>Signatures</font></p>

<p align="left" style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;'><font style='font-size:10pt'>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</font></p>

<p align="left" style=' margin-bottom:0pt; margin-top:0pt;'><font style='font-size:10pt'>&nbsp;</font></p>


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<p align=left style='margin-top:0in;margin-bottom:0pt;'><font style='font-size:10PT'>TOLL BROTHERS, INC.</font></p> </td>

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<p align=left style='margin-top:0in;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p align=left style='margin-top:0in;margin-bottom:0pt;'><font style='font-size:10pt'>Dated: December 19, 2006</font></p> </td> </tr>
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<p align=left style='margin-top:0in;margin-bottom:0pt;'><font style='font-size:10pt'>By:&nbsp;</font></p> </td>

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<p align=left style='margin-top:0in;margin-bottom:0pt;'><br> <font style='font-size:10pt'>Joseph R. Sicree</font></p> </td>

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<p align=left style='margin-top:0in;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p align=left style='margin-top:0in;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p align=left style='margin-top:0in;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p align=left style='margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p align=left style='margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

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<p align=left style='margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p align=left style='margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p align=left style='margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p align=left style='margin-top:0in;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p align=left style='margin-top:0in;margin-bottom:0pt;'><font style='font-size:10pt'>Joseph R. Sicree</font></p> </td>

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<p align=left style='margin-top:0in;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p align=left style='margin-top:0in;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p align=left style='margin-top:0in;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p align=left style='margin-top:0in;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p align=left style='margin-top:0in;margin-bottom:0pt;'><font style='font-size:10pt'>Vice President, Chief Accounting Officer</font></p> </td>

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<p align=left style='margin-top:0in;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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[{"type": "8-K", "sequence": "1", "filename": "b416562_8k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 24605}]
{"company-data": {"conformed-name": "TOLL BROTHERS INC", "cik": "0000794170", "assigned-sic": "1531", "irs-number": "232416878", "state-of-incorporation": "DE", "fiscal-year-end": "1031"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-09186", "film-number": "061287015"}, "business-address": {"street1": "250 GIBRALTAR ROAD", "city": "HORSHAM", "state": "PA", "zip": "19044", "phone": "2159388000"}, "mail-address": {"street1": "250 GIBRALTAR ROAD", "city": "HORSHAM", "state": "PA", "zip": "19044"}}
Prepared and Filed by St Ives Financial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date
  of report (Date of earliest event reported):
December 15, 2006
Toll Brothers, Inc.
(Exact Name of Registrant as Specified in Charter)
Delaware
(State or Other Jurisdiction
of Incorporation)
001-09186
(Commission
File Number)
23-2416878
(IRS Employer
Identification No.)
250 Gibraltar Road, Horsham, PA
(Address of Principal Executive Offices)
19044
(Zip Code)
Registrant's
  telephone number, including area code:
(215)
  938-8000
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 5.02.
COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS.
Amendment to the Toll Brothers, Inc. Cash Bonus Plan
As
    more fully described below, the Toll Brothers, Inc. Cash Bonus Plan, as amended
    (the "Plan"), was further amended on December 15, 2006 to reduce
    the amount of bonus payable under the Plan for fiscal 2006 to Mr. Robert
    I. Toll, Chairman and Chief Executive Officer of Toll Brothers, Inc. (the "Company").
    In addition, Mr. Toll agreed to receive $3,000,000 of restricted stock
    in exchange for $3,000,000 of cash and unrestricted stock he is entitled
    to receive under the Plan.
The
    Plan, as amended on December 7, 2005 (the "2005 Plan Amendment"),
    provides that Mr. Toll will receive a cash bonus award (before the stock
    conversion feature described below) for the fiscal years ending October 31,
    2005, 2006 and 2007, equal
    to the sum of (i) 1.5% of the Company's income before income taxes (as
    defined in the Plan) in excess of 10% and up to 20% of shareholders' equity
    (as defined in the Plan) of the Company as of the end of the preceding fiscal
    year, (ii)
    2.25%
    of
    the Company's income before income taxes in excess of 20% and up to
    30% of shareholders' equity of the Company as of the end of the preceding
    fiscal year, and (iii) 3.5% of the Company's income before income taxes
    in excess of 30% of shareholders' equity of the Company as of the end
    of the preceding fiscal year. The Plan also provides that, for each of the
    fiscal years ending October 31, 2005, 2006 and 2007, the cash bonus award
     will be adjusted by applying a stock conversion feature as follows: (a)
    the cash bonus award will be converted into shares by dividing the cash bonus
    award by the closing price on the New York Stock Exchange ("NYSE")
    of the Company's common stock on the last trading day of the Company's
    2004 fiscal year, October 29, 2004 which was $23.175 (the "Award Conversion
    Price"),
    and (b) the number of shares calculated in (a) will then be multiplied by
    the closing price of the Company's common stock on the NYSE on the last
    trading day of the fiscal year for which the bonus is being calculated (the "Stock-Adjusted
    Bonus Value"). The Stock-Adjusted Bonus Value, subject to the caps or
    limitations outlined below, will be paid 60% in cash, with the remaining
    40% being paid in shares of the Company's common stock, calculated by
    dividing 40% of the Stock-Adjusted Bonus Value by the closing price of the
    Company's common stock on the NYSE on the last trading day of
the fiscal year for which the bonus is applicable. The Plan provides that the
    price of the Company's common stock used in determining the Stock-Adjusted
    Bonus Value may not exceed 160% of the Award Conversion Price and the Stock-Adjusted
    Bonus Value is further capped so that it may not exceed 2.9% of the Company's
    income before income taxes (as defined in the Plan). The 2005 Plan Amendment
    reduced Mr. Toll's potential bonus amount by providing that, with
    respect to the Company's fiscal years ended October 31, 2006 and ending
    October 31, 2007, in the event, as of the last day of either such fiscal
    year, the closing price per share on the NYSE is equal to or less than $36.91
    (the closing price per share on the NYSE of the Company's common stock
    on the last day of the Company's fiscal year ended October 31, 2005),
    and greater than or equal to the Award Conversion Price, the cash bonus award
    will not be adjusted by applying the stock conversion feature  as described
    above to achieve a Stock-Adjusted Bonus Value. Pursuant to the terms of the
    Plan, because the closing price per share on the NYSE of the Company's
    common stock on the last day of the Company's fiscal year ended October
    31, 2006 was less than $36.91, Mr. Toll's cash bonus award for
    fiscal 2006 under the Plan was not adjusted as described above to achieve
    a Stock-Adjusted Bonus Value. Under the terms of the Plan, Mr. Toll
    was entitled to receive a cash bonus award for fiscal 2006 of $21,531,042.
On
    December 15, 2006, the Executive Compensation Committee of the Board of Directors
    adopted, and Mr. Toll consented to, an additional amendment to the Plan
    (the "2006 Plan Amendment"), to reduce by $4,000,000 the cash bonus
    award for fiscal 2006 that Mr. Toll was entitled to receive under the
    Plan. Accordingly, the 2006 Plan Amendment provides for a cap of $17,531,042
    on the bonus award payable to Mr. Toll under the Plan for fiscal 2006,
    and, consistent therewith, the Executive Compensation Committee approved the
    bonus award to Mr. Toll in that amount for fiscal 2006, payable on
    January 5, 2007. Mr. Toll's fiscal 2006 bonus award, as capped
    by the 2006 Plan Amendment, is payable 60% in cash and 40%
    in shares of the Company's
    common stock, calculated by dividing 40% of $17,531,042 by $28.91 (the closing
    price of the Company's common stock on the
NYSE on the last day of the Company's fiscal year ended October 31, 2006).
The Company has agreed to indemnify Mr. Toll from and against any damages
or financial liabilities he suffers or incurs, including any liabilities to the
United States government, solely arising out of or resulting from the 2006 Plan
Amendment.
In
    addition, Mr. Toll will receive $3,000,000 worth of restricted shares
    of the Company's common stock, in exchange for $3,000,000 of cash
    and unrestricted stock he is entitled to receive as part of his fiscal 2006
    bonus
    award under
    the Plan (valued as of the Plan valuation date of October 31, 2006). The restricted stock Mr. Toll is receiving will vest over
    a two year period, and the number of restricted shares will be calculated
    by dividing $3,000,000 by the closing price of the Company's common
    stock on the NYSE on January 5, 2007, the date of his fiscal 2006 bonus award
    payment and the date he will receive the restricted shares.
Executive Officer Cash Bonus Plan - Fiscal 2007 Performance Goals
On December 15, 2006, the Executive Compensation Committee of the Board of Directors of the Company determined that bonuses under the Executive Officer Cash Bonus Plan (the "Bonus Plan") for the Company's 2007 fiscal year for each of Messrs. Zvi Barzilay, the Company's President and Chief Operating Officer, and Joel H. Rassman, the Company's Executive Vice President, Treasurer and Chief Financial Officer (the designated participants in the Bonus Plan) shall be calculated based upon two components - (a) an individual performance goal component, and (b) a company performance goal component.
The company performance goal component is stated in terms of the Company's attainment of specified levels of adjusted pre-tax earnings during fiscal 2007, and the maximum amount of the bonuses payable under this component is determined by application of a formula to the Company's actual adjusted pre-tax earnings for fiscal 2007 in excess of a series of targeted levels of adjusted pre-tax earnings.
The
    individual performance goals for Mr. Barzilay are based on various factors
    including, among other things, involvement with the operations of the Company,
    land transactions, support departments of the Company and land development.
The
    individual performance goals for Mr. Rassman are based on various factors
    including, among other things, involvement with the Company's financing
activities, reporting of financial performance and investor relations.
The
    bonuses payable for fiscal 2007 are subject to all applicable limitations
    of the Bonus Plan, including the Bonus Plan's limitations on aggregate payments
    to any one participant during any one Plan Year (defined in the Bonus Plan
    as the Company's fiscal year) and, with respect to the individual performance
    goal component described above, the Company's revenues exceeding a certain
level.
Item 9.01.
Financial Statements and Exhibits.
(c). Exhibits.
The following Exhibit is filed as part of this Current Report on Form 8-K:
Exhibit
          No.
Item
10.1*
Amendment
            to the Toll Brothers, Inc. Cash Bonus Plan dated December 15, 2006.
10.2*
Executive
    Officer Cash Bonus Plan Fiscal 2007 Performance Goals.
*
Filed electronically herewith.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
TOLL BROTHERS, INC.
Dated: December 19, 2006
By:
Joseph R. Sicree
Joseph R. Sicree
Vice President, Chief Accounting Officer