Exhibit 10.1

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May 20, 2005

 
Ms. Julie H. Edwards
3826 Coleridge
Houston, Texas 77005

Re: Your resignation from employment.

Dear Julie:

  It is with much regret that I accept your resignation of employment as
Executive Vice President and Chief Financial Officer of Frontier Oil Corporation
effective as of May 31, 2005 (“Termination Date”). This letter is to confirm our
mutual understanding of the circumstances and terms of your resignation.

It is our understanding that you are terminating employment voluntarily. You are
resigning your position as Executive Vice President and Chief Financial Officer
of the Company as well as all other offices and duties of any subsidiaries,
affiliates or related entities or organizations.

You will be entitled to receive all salary payable through your Termination Date
and all accrued, vested and unpaid benefits pursuant to the Company’s benefit
plans as of such date. Your vested and accrued benefits under the Company’s
deferred compensation and savings plans will be paid to you pursuant to the
terms of such plans, as amended, and your rights to become vested in or exercise
any equity compensation plans or grants will be governed by the terms of such
plans or grants; provided, however, that (i) options that were granted to you on
February 20, 2003 to purchase 31,250 shares of Frontier Common Stock at $16.65
per share shall vest and become immediately exercisable and (ii) you will have
until June 1, 2006 to exercise all of your vested options. You will not be
entitled to any severance or other pay or bonus as a result of your termination
of employment under your Executive Employment Agreement or otherwise.

Please acknowledge your agreement to the terms set forth in this letter by
signing in the space provided below and returning a copy with your original
signature to me. We sincerely appreciate your many contributions to the success
of the Company and wish you much continued success in all your future endeavors.
 

     
 Very truly yours,
 
    /s/ James Gibbs    

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James Gibbs
President, CEO and Chairman of the Board
Frontier Oil Corporation

 

 
Acknowledged and agreed to by:
 
      /s/ Julie H. Edwards     Date: May 23, 2005

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Julie H. Edwards    

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