Document:

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                                                                    EXHIBIT 10.3

                        [BANK OF TEXAS, N.A. Letterhead]

May 9, 2002

TOREADOR RESOURCES CORPORATION
TOREADOR EXPLORATION & PRODUCTION INC.
TOREADOR ACQUISITION CORPORATION
TORMIN, INC.
4809 Cole Avenue, Suite 108
Dallas, Texas 75205

         Re:      Second Amendment to Loan Agreement

Ladies and Gentlemen:

         This letter (this "Amendment") amends the loan agreement dated February
16, 2001, among TOREADOR RESOURCES CORPORATION, a Delaware corporation, TOREADOR
EXPLORATION & PRODUCTION INC., a Texas corporation, TOREADOR ACQUISITION
CORPORATION, a Delaware corporation, and TORMIN, INC., a Delaware corporation
(collectively "Borrowers"), and BANK OF TEXAS, NATIONAL ASSOCIATION ("Bank"), a
national banking association, as amended by the First Amendment dated November
8, 2001 (the "Loan Agreement"). Capitalized terms below have the meanings
assigned in the Loan Agreement.

         1. Tranche B. Subsection (b) of Section 1 of the Loan Agreement is
amended to change the due date for Tranche B and thus to read as follows:

                  "(b) Subject to the terms and conditions of the Loan
         Agreement, Borrowers may borrow, repay, and reborrow on a revolving
         basis from time to time during the period commencing on the date hereof
         and continuing through 11:00 a.m. (Dallas, Texas time) on February 16,
         2006 (the "Termination Date"), such amounts as Borrowers may request
         under the Revolving Loan; provided, however, the total principal amount
         outstanding at any time shall not exceed the lesser of (i) the
         aggregate sums permitted under the Borrowing Base, which is set at
         $21,850,000.00 as of the date of this Amendment, (ii) after July 15,
         2002, the aggregate sums permitted under Tranche A, or (iii)
         $75,000,000. Notwithstanding any provision in the Loan Agreement or the
         Revolving Note to the contrary, all amounts outstanding on Tranche B
         must be paid in full on or before July 15, 2002; and all sums advanced
         under the Revolving Loan, together with all accrued but unpaid interest
         thereon, shall be due and payable in full on the Termination Date."

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TOREADOR RESOURCES CORPORATION, et al
May 9, 2002
Page 2 of 5

         2. Tranche A and Borrowing Base. The amount of Tranche A as of the date
of this Amendment is $18,024,750.00. Effective as of the date of this Amendment,
Bank has set the Borrowing Base at $21,850,000.00, and the MCR shall continue to
be $0, until reset by Bank. The next scheduled redetermination of the Borrowing
Base will be October 1, 2002.

         3. Collateral. (a) As security for the Notes, Borrowers previously
executed the Security Documents. Borrowers ratify and confirm the Security
Documents, acknowledge that they are valid, subsisting, and binding, and agree
that the Security Documents secure payment of the Notes and Loans.

                  (b) As additional security for the Notes, Toreador Exploration
& Production Inc. will execute and deliver a Deed of Trust and Security
Agreement in Proper Form, covering oil and gas properties located in Meade
County, Kansas. This additional deed of trust will constitute one of the
"Security Documents" as defined in the Loan Agreement.

         4. Fees. In connection with this Amendment and the extension of Tranche
B, Borrowers agree to pay to Bank an amendment fee in the amount of $100,000.00.
In addition, if Tranche B is not paid in full on or before July 15, 2002, then
Borrowers agree to pay an additional extension fee in the amount of $50,000.00
per month, payable in advance commencing July 15, 2002, until Tranche B is paid
in full; provided, however, that Bank has no obligation to extend the payment of
Tranche B beyond July 15, 2002. All fees are non-refundable and earned by Bank
upon execution of this Amendment.

         5. Conditions Precedent. (a) The obligation of Bank to make any further
advance on the Revolving Loan is subject to Borrower's satisfaction, in Bank's
sole discretion, of the following conditions precedent:

                           (1) the negotiation, execution, and delivery of Loan
Documents in Proper Form, including, but not limited to, the following:

                                    (i)     this Amendment; and

                                    (ii)    the Kansas Deed of Trust.

                           (2) satisfactory evidence that Bank holds perfected
liens and security interests in all collateral for the Loans, subject to no
other liens or security interests.

                           (3) there being no order or injunction or other
pending or threatened litigation in which there is a reasonable possibility, in
Bank's judgment, of a decision which could materially adversely affect the
ability of Borrowers to perform under the Loan Documents.

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TOREADOR RESOURCES CORPORATION, et al
May 9, 2002
Page 3 of 5

                           (4) Bank shall have completed and approved a review
of title to, and the status of the environmental condition of, Borrower's oil
and gas properties, and the results of such review shall be acceptable to Bank
in its sole discretion.

                           (5) Bank's receipt and review, with results
satisfactory to Bank and its counsel, of information regarding litigation, tax,
accounting, insurance, pension liabilities (actual or contingent), real estate
leases, material contracts, debt agreements, property ownership, and contingent
liabilities of Borrowers and any subsidiaries.

                  (b) Bank will not be obligated to make any advance on the
Loans, if, prior to the time that a loan or advance is made, (i) there has been
any material adverse change in any Borrowers' financial condition since the
most-recent financial statements furnished to Bank, (ii) any representations or
warranties made by any Borrowers in the Loan Agreement or the other Loan
Documents is untrue or incorrect as of the date of the advance or loan, (iii)
Bank has not received all Loan Documents appropriately executed by Borrowers and
all other proper parties, (iv) Bank has requested that Borrowers execute
additional loan or security documents and those documents have not yet been
properly executed, delivered, and recorded, or (v) an Event of Default has
occurred.

         6. Confirmations. Borrowers hereby represent to Bank that all
representations and warranties of Borrowers set forth in Section 5 of the Loan
Agreement are true and correct as of the date of execution of this Amendment;
and that Borrowers are in compliance as of the date of execution of this
Amendment with all covenants set forth in Section 6 of the Loan Agreement, all
financial covenants set forth in Section 7 of the Loan Agreement, and all
reporting requirements set forth in Section 8 of the Loan Agreement.

         7. Validity and Defaults. The Loan Agreement, as amended, remains in
full force and effect. Borrowers acknowledge that the Loan Agreement, the Notes,
and the Security Documents are valid, subsisting, and binding upon Borrowers; no
uncured breaches or defaults exist under the Loan Agreement, as amended; and no
event has occurred or circumstance exists which, with the passing of time or
giving of notice, will constitute a default or breach under the Loan Agreement,
as amended. Borrowers ratify the Loan Agreement, as amended.

         8. Fax Provision. This Amendment and the related Loan Documents may be
executed in counterparts, and Bank is authorized to attach the signature pages
from the counterparts to copies for Bank and Borrowers and filing counterparts.
At Bank's option, this Amendment and the related Loan Documents may also be
executed by Borrowers in remote locations with signature pages faxed to Bank.
Borrowers agree that the faxed signatures are binding upon Borrowers, and
Borrowers further agree to promptly deliver the original signatures

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TOREADOR RESOURCES CORPORATION, et al
May 9, 2002
Page 4 of 5

for this Amendment and the related Loan Documents by overnight mail or expedited
delivery. It will be an Event of Default if they fail to promptly deliver all
required original signatures.

         9. Captions. Captions are for convenience only and should not be used
in interpreting this Amendment.

         10. Final Agreement. (a) In connection with the Loans, Borrowers and
Bank have executed and delivered this Amendment and the Loan Documents
(collectively the "Written Loan Agreement").

                  (b) It is the intention of Borrowers and Bank that this
paragraph be incorporated by reference into each of the Loan Documents.
Borrowers and Bank each warrant and represent that their entire agreement with
respect to the Loans is contained within the Written Loan Agreement, and that no
agreements or promises have been made by, or exist by or among, Borrowers and
Bank that are not reflected in the Written Loan Agreement.

                  (c) THE LOAN AGREEMENT, AS AMENDED, REPRESENTS THE FINAL
AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN AGREEMENTS BETWEEN THE PARTIES.

         If the foregoing correctly sets forth your understanding of our
agreement, please sign and return one copy of this letter.

                                     Yours very truly,

                                     BANK OF TEXAS, NATIONAL ASSOCIATION

                                     By:  /s/ Timothy E. Merrell
                                          --------------------------------------
                                          Timothy E. Merrell,
                                          Senior Vice President

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TOREADOR RESOURCES CORPORATION, et al
May 9, 2002
Page 5 of 5

Agreed on this 9th day of May, 2002:

BORROWERS:

TOREADOR RESOURCES CORPORATION

By:      /s/ Douglas W. Weir
         --------------------------------------------
         Douglas W. Weir, Vice President

TOREADOR EXPLORATION & PRODUCTION INC.

By:      /s/ Douglas W. Weir
         --------------------------------------------
         Douglas W. Weir, Vice President

TOREADOR ACQUISITION CORPORATION

By:      /s/ Douglas W. Weir
         --------------------------------------------
         Douglas W. Weir, Vice President

TORMIN, INC.

By:      /s/ Douglas W. Weir
         --------------------------------------------
         Douglas W. Weir, Vice President

Exhibits:
None<PAGE>
                                                                    EXHIBIT 10.4

                              AMENDMENT NUMBER TWO
                                     TO THE
                         TOREADOR RESOURCES CORPORATION
                   AMENDED AND RESTATED 1990 STOCK OPTION PLAN

         THIS AMENDMENT NUMBER TWO TO THE TOREADOR RESOURCES CORPORATION AMENDED
AND RESTATED 1990 STOCK OPTION PLAN (this "Amendment"), dated as of May 30, 2002
is made and entered into by Toreador Resources Corporation, a Delaware
corporation (the "Company"). Terms used in this Amendment with initial capital
letters that are not otherwise defined herein shall have the meanings ascribed
to such terms in the Toreador Resources Corporation Amended and Restated 1990
Stock Option Plan (the "Plan").

                                    RECITALS

WHEREAS, Article VIII of the Plan provides that the Board of Directors of the
Company (the "Board") may amend the Plan at any time; and

WHEREAS, the Board desires to amend the Plan to more clearly reflect its
original intent to grant Nonemployee Directors of the Corporation or its
affiliates automatic stock options under one stock option plan; and

NOW, THEREFORE, in accordance with Article VIII of the Plan, the Company hereby
amends the Plan as follows:

1. Article IV of the Plan is hereby amended effective May 30, 2002 by deleting
said Article in its entirety and substituting in lieu thereof the following:

                  4.1 Eligibility. The Committee shall, from time to time,
         select the particular officers, key employees, and key consultants of
         the Corporation and its Affiliates to whom the Stock Options are to be
         granted and/or distributed in recognition of each such Participant's
         contribution to the Corporation's or the Affiliate's success.
         Nonemployee Directors who do not elect to decline to participate
         pursuant to the following sentence will be eligible to receive Stock
         Options as provided in Section 4.2 of this Plan, unless such
         Nonemployee Directors receive similar Stock Options pursuant to another
         stock option plan of the Corporation or its Affiliates. A director
         otherwise eligible to participate in the Plan may make an irrevocable,
         one-time election, by written notice to the Committee within ten (10)
         days after his or her initial election to the Board, to decline to
         participate in the Plan.

                  4.2 Grant of Stock Options. All grants of Stock Options under
         this Article IV shall be awarded by the Committee. Each grant of Stock
         Options shall be evidenced by an Option Agreement setting forth the
         total number of shares subject to the Stock Option, the option exercise
         price, the term of the Stock Option, the vesting schedule, and such
         other terms and provisions as are approved by the Committee, but,
         except to the extent permitted herein, are not inconsistent with the
         Plan. In the case of an Incentive Stock Option, the Option Agreement
         shall also include provisions that may be necessary to assure that the
         option is an Incentive Stock Option under the Code. The Corporation
         shall

<PAGE>

         execute Option Agreements upon instructions from the Committee. Any
         Nonemployee Director who does not, in accordance with Section 4.1,
         decline to participate and does not receive a similar Stock Option
         pursuant to another stock option plan of the Corporation or its
         Affiliates shall, on the date that is ten (10) days after his or her
         initial election as a director of the Corporation, automatically be
         granted a Stock Option to purchase 10,000 shares of Common Stock, as
         adjusted in accordance with Article XI. Any Nonemployee Director who
         does not, in accordance with Section 4.1, decline to participate and
         does not receive a similar Stock Option pursuant to another stock
         option plan of the Corporation or its Affiliates shall, on the date
         that is ten (10) days after an annual meeting of the Company,
         automatically be granted a Stock Option to purchase 5,000 shares of
         Common Stock, as adjusted in accordance with Article XI. The options
         will be granted at fair market value on the grant date and become
         exercisable, subject to certain conditions, in three (3) equal annual
         installments on the first three (3) anniversaries of the grant date and
         terminate ten (10) years from the grant date unless terminated sooner
         as a result of the death or termination of directorship of the holder
         thereof. If, on the Date of Grant of a Stock Option to a Nonemployee
         Director, fewer shares of Common Stock remain available for grant than
         are necessary to permit the grant of Stock Options to each person
         entitled to receive a Stock Option, then a Stock Option covering an
         equal number of whole shares of Common Stock, up to 10,000 shares or
         5,000 shares, as the case may be, shall be granted to each Nonemployee
         Director who has not previously been granted a Stock Option.

                  4.3 Exercise Price. The exercise price for a Nonqualified
         Stock Option shall not be less than the Fair Market Value per share of
         the Common Stock on the Date of Grant. Subject to the terms of Section
         5.1 hereof, the exercise price for an Incentive Stock Option shall be
         equal to the Fair Market Value per share of the Common Stock on the
         Date of Grant. Notwithstanding anything to the contrary contained in
         this Section 4.3, the exercise price of each Stock Option granted
         pursuant to the Plan shall not be less than the par value per share of
         the Common Stock.

                  4.4 Option Period. The option period will begin and terminate
         on the respective dates specified by the Committee, but may not
         terminate later than ten (10) years from the Date of Grant. No Stock
         Option granted under the Plan may be exercised at any time after the
         expiration of its option period. The Committee may provide for the
         vesting and exercise of Stock Options in installments and upon such
         terms, conditions and restrictions as it may determine. In addition to
         the provisions contained elsewhere herein concerning automatic
         acceleration of unmatured installments of Stock Options, the Committee
         shall have the right to accelerate the time at which any Stock Option
         granted to a Participant shall become vested, or exercisable.

                           [Signature Page to Follow]

                                       2
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IN WITNESS WHEREOF, the Company has caused this Amendment to be duly executed as
of the date first written above, by its Chief Executive Officer and Secretary
pursuant to prior action taken by the Board.

                                       TOREADOR RESOURCES CORPORATION

                                       By:     /s/ G. Thomas Graves III
                                               ---------------------------------
                                       Name:   G. Thomas Graves III
                                       Title:  President and CEO

Attest:

/s/ Gerry Cargile
-------------------------

                                       3

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