STOCK COMPENSATION PLANS

3 Months Ended

Sep. 30, 2011

Sep. 30, 2010

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS [Abstract]

NOTE 19 — STOCK COMPENSATION PLANS

We have granted stock options to key employees and outside directors of Toreador as described below.

In May 1990, we adopted the 1990 Stock Option Plan ("1990 Plan"). The 1990 Plan, as amended and restated, provides for grants of up to 1,000,000 stock options to employees and directors at exercise prices greater than or equal to market on the date of the grant.

In September 1994, we adopted the 1994 Non-employee Director Stock Option Plan ("1994 Plan"). The 1994 Plan, as amended and restated, provides for grants of up to 500,000 stock options to non-employee directors of Toreador at exercise prices greater than or equal to market on the date of the grant.

In December 2001, we adopted the 2002 Stock Option Plan ("2002 Plan"). The 2002 Plan provides for grants of up to 500,000 stock options to employees and outside directors at exercise prices greater than or equal to market on the date of the grant.

The Board of Directors grants options under our plans periodically. Generally, option grants are exercisable in equal increments over a three-year period, and have a maximum term of 10 years.

A summary of stock option transactions is as follows:

	As at September 30, 2011			As at December 31, 2010
	SHARES	WEIGHTED AVERAGE EXERCISE PRICE		SHARES	WEIGHTED AVERAGE EXERCISE PRICE
Outstanding at January 1	57,950	$	8.53	67,370	$	7.78
Granted	—	—		—	—
Exercised	—		—	(5,000)	$	3.10
Forfeited	—		—	(4,420)	$	3.12
Outstanding at the end of the period	57,950	$	8.53	57,950	$	8.53
Exercisable at the end of the period	57,950	$	8.53	57,950	$	8.53

For the three and nine months ended September 30, 2011, we received cash from stock option exercises of $0 and $0, respectively. As of September 30, 2011, all outstanding options were 100% vested.

The following table summarizes information about the fixed price stock options outstanding at September 30, 2011:

	Number Outstanding			Number Exercisable
Exercise Price	Shares	Intrinsic Value (in thousands)		Shares	Intrinsic Value (in thousands)		Weighted Average Remaining Contractual Life in Years
5.50	200	(1)		200	(1)		2.57
5.50	40,250	(98)		40,250	(98)		2.57
13.75	7,500	(80)		7,500	(80)		3.13
16.90	10,000	(138)		10,000	(138)		3.64
	57,950	$	(317)	57,950	$	(317)	2.98

In May 2005, the Company's stockholders approved the Toreador Resources Corporation 2005 Long-Term Incentive Plan (the "Plan"). At the Company's 2010 Annual Meeting of Stockholders, the stockholders of the Company approved an amendment to the Plan which increased the authorized number of shares of Company common stock available under the Plan from 1,750,000 shares to 3,250,000 shares. Thus, the Plan, as amended, authorizes the issuance of up to 1,500,000 new shares of the Company's common stock to key employees, key consultants and outside directors of the Company.

For the nine months ended September 30, 2011 the Board of Directors authorized a total of 196,939 shares of restricted stock, which were granted to employees and non-employee directors. The compensation cost is measured by the difference between the quoted market price of the stock at the date of grant and the price, if any, to be paid by an employee or director and is recognized as an expense over the period the recipient performs related services. The restricted stock grants vest immediately or over up to a three-year period (depending on the grant), and the weighted average fair value of the stock on the date of the vesting was $10.10 for the nine months ended September 30, 2011, respectively. Stock compensation expense of $0.6 million and $2.9 million is included in the Statement of Operations for the three and nine months ended September 30, 2011. As of September 30, 2011, the total compensation cost related to non-vested restricted stock grants not yet recognized is approximately $2.4 million. This amount will be recognized as compensation expense over the next 36 months.

On September 30, 2011, there were 1,121,482 remaining shares available for grant under the Plan.

The following table summarizes the changes in outstanding restricted stock grants along with their related grant-date fair values for the nine months ended September 30, 2011:

	Shares		Weighted Average Grant-Date Fair Value
Non-vested at December 31, 2010	366,840	$	10.72
Shares granted	196,939	$	11.54
Shares vested	(285,942)	$	10.10
Shares forfeited	—	—
Non-vested at September 30, 2011	277,837	$	12.41

NOTE 19 — STOCK COMPENSATION PLANS

We have granted stock options to key employees and outside directors of Toreador as described below.

The Board of Directors grants options under our plans periodically. Generally, option grants are exercisable in equal increments over a three-year period, and have a maximum term of 10 years.

A summary of stock option transactions is as follows:

TOREADOR RESOURCES CORP 10-Q