Document:

Exhibit 10.6

 

DEBT SUBORDINATION AGREEMENT

 

This Debt Subordination Agreement is entered
into as of the 22nd day of November, 2005, between and among STEN
Acquisition Corporation, a Minnesota corporation (“Lender”) and Arthur Petrie,
an individual resident of the State of Nevada (the “Creditor”).

 

RECITALS

 

WHEREAS, Signal Sites Incorporated, a Delaware corporation (“Subsidiary”),
and wholly owned subsidiary of Site Equities International, Inc., a Nevada
corporation (the “Borrower”), was indebted to Creditor, pursuant to a certain
stock purchase agreement made and entered into as of April 29, 2002 by and
between Creditor and Subsidiary (the “Stock Purchase Agreement”) attached
hereto as Exhibit A and a certain promissory note in the principal
amount of One Million Eighty Thousand and 00/100 Dollars ($1,080,000.00)
attached hereto as Exhibit B (the “Subordinated Debt Note”); and

 

WHEREAS, as a condition to lending Borrower certain amounts under that
certain Loan and Merger Option Agreement between Lender and Borrower dated as
of November 22, 2005, as originally executed and as amended, modified,
extended, renewed or replaced from time (the “Loan Agreement”), Lender is
requiring Creditor, to enter into this Agreement and Creditor; believing that
it is in Creditor’s best interest for Lender to advance funds to Borrower under
the Loan Agreement, desires to enter into this Agreement.

 

NOW, THEREFORE, in consideration of the promises contained herein and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and to induce Lender to, at any time, extend or continue credit
or any other financial accommodation to Borrower or any of its affiliates,
Borrower and Creditor agree with Lender as follows:

 

1.                                       Definitions.

 

(a)                                  “Subordinated Debt” means all indebtedness and liability of
Borrower and any of its affiliates to Creditor now existing or hereafter
arising, whether direct or indirect, absolute or contingent or due or to become
due, and whether created directly or acquired by assignment or otherwise,
including, without limitation, any indebtedness of Borrower under the Stock
Purchase Agreement and the Subordinated Debt Note, each as originally executed
and/or amended, modified, extended, renewed or replaced from time to time (the “Subordinated
Debt Documents”), including, without limitation, any and all principal,
interest (including interest at the contract rate from the date of filing of a
petition by or against Borrower under the federal Bankruptcy Code), default
charges, premiums, expenses and collection costs (including, without
limitation, attorneys’ fees).

 

 

(b)                                 “Superior Debt” means all indebtedness and liability of
Borrower and any of its affiliates to Lender or its affiliates, now existing or
hereafter arising, whether direct or indirect, absolute or contingent
(including, without limitation, reimbursement obligations with respect to any
letters of credit and guaranty liability), due or to become due, and whether
created directly or acquired by assignment or otherwise, including, without
limitation, all obligations of Borrower to Lender pursuant to the Loan
Agreement, any and all principal, interest (including interest at the contract
rate from the date of filing of a petition by or against Borrower under the
federal Bankruptcy Code), default charges, premiums, expenses and collection
costs (including, without limitation, attorneys’ fees) on or with respect to
all indebtedness and liabilities of Borrower and its affiliates to Lender and
any and all obligations of Borrower whether absolute or contingent and
howsoever and whensoever created, arising, evidenced or acquired (including all
renewals, extensions and modifications thereof and substitutions therefor),
under any transaction now existing or hereafter entered into between Borrower
and Lender or an affiliate thereof.

 

(c)                                  “Event of Default” means an Event of Default as that term is
defined in the Loan Agreement.

 

2.                                       Subordination of Debt.  Creditor postpones and subordinates, to the
extent and in the manner provided in this Agreement, all Subordinated Debt to
the payment in full of all Superior Debt. 
If Borrower issues, has issued or is party to any instrument or document
evidencing the Subordinated Debt, it (and all copies thereof) shall bear a
conspicuous legend stating: “Payment of the indebtedness evidenced by this
instrument or document and the rights of the holder hereof are subordinated and
subject to the rights of Sten Acquisition Corporation and its successors and
assigns, to the extent provided in a Debt Subordination Agreement dated as of November 22,
2005, from the holder to said lender.” 
Borrower’s and Creditor’s books shall be marked to evidence
subordination of all Subordinated Debt to Lender.  Lender is authorized to examine such books
from time to time and to make any notations required or allowed by this
Agreement.  Nothing contained in this
Agreement shall affect the validity of Subordinated Debt.

 

3.                                       Payments on Subordinated Debt.

 

(a)                                  Permitted Payments.

 

(i)                                     Until Lender provides written notice to Creditor
(with a copy to Borrower) (a “Default Notice”) of the occurrence of an Event of
Default under the Loan Agreement (a “Borrower Default”) in accordance with the
terms of Section 21 of this Agreement, Borrower may make, and Creditor may
retain, to the extent such payment would not violate this Agreement or the Loan
Agreement: (A) regularly scheduled payments of principal, interest, fees
and reimbursement of other expenses in accordance with the terms of the
Subordinated Debt Documents; (B) a payment of $200,000 to Creditor as
payment in full of the amounts owed by Borrower under that certain promissory
note by Borrower to Creditor dated as of October 6, 2005, having a
principal amount of $100,000 and that certain promissory note by Borrower to
Creditor dated as of October 19, 2005 having a principal amount of
$100,000, provided that concurrent therewith all security interests

 

2

 

of Creditor in Borrower or its subsidiaries relating thereto shall be
immediately released, (C) a disbursement of Borrower’s common stock as
satisfaction in full of the amounts owed by Subsidiary to Creditor under the
Subordinated Debt Note and the Stock Purchase Agreement as set forth in Section 22
below, and (D) payment of an aggregate of $100,000 to Creditor and Ken
Antos for payment of amounts borrowed by Creditor and Ken Antos under that
certain Business Loan Agreement dated as of September 23, 2005 among
Creditor, Ken Antos and SouthwestUSA Bank, as amended, and advanced to
Borrower.

 

(ii)                                  Following a Default Notice, Borrower may
resume regularly scheduled payments (and may make any payments missed due to
the application of this Agreement) in respect of the Subordinated Debt upon the
cure or waiver of such Borrower Default.  For purposes hereof, no payments of principal,
interest or fees due upon acceleration of any of the Subordinated Debt shall
constitute regularly scheduled payments thereof.

 

(iii)                               Notwithstanding any provision in this
Agreement to the contrary (A) no Borrower Default existing on the date any
Default Notice is given pursuant to Section 3(a)(i) shall, unless the
same shall have ceased to exist for a period of at least 30 consecutive days,
be used as the basis for any subsequent such notice; and (B) the failure
of Borrower to make any payment with respect to the Subordinated Debt by reason
of the operation of this Agreement shall not be construed as preventing the
occurrence of a default under any agreement, document or instrument evidencing
or securing the Subordinated Debt;

 

(b)                                 Limitations.   Except as set forth in Section 3(a),
until this Agreement expires pursuant to Section 9 hereof:  (i) Borrower shall not, directly or
indirectly, make any payments on account of, or grant a security interest in,
mortgage, assign or transfer any of its or its affiliates’ assets or properties
to satisfy or secure, any part of the Subordinated Debt other than as permitted
pursuant to Section 6 hereof; (ii) Creditor shall not demand or
accept from Borrower or any other person (including, without limitation, any
guarantor of the Subordinated Debt) or retain any payment on or any assets of
Borrower or its affiliates for any part of the Subordinated Debt; (iii) Creditor
shall not cancel, set off or otherwise discharge any part of the Subordinated
Debt; and (iv) Borrower and Creditor shall not otherwise take or permit
any action prejudicial to or inconsistent with Lender’s priority position over
Creditor created by this Agreement.

 

3

 

(c)                                  Payments Received.  Except as permitted in Section 3(a), if
any payment on account of, or any assets of Borrower or its affiliates for, any
part of the Subordinated Debt is received by Creditor, Creditor shall
immediately deliver such payment or assets to Lender for application to the
Superior Debt, in the form received except for the addition of any endorsement
or assignment necessary to effect transfer of all rights therein to
Lender.  Creditor irrevocably authorizes
Lender to supply any required endorsement or assignment which may have been
omitted.  Until so delivered, any such
payment or assets shall be held by Creditor in trust for Lender and shall not
be commingled with other funds or property of Creditor.  To the extent that (i) Lender receives any
payments from Creditor pursuant to this Section 3(c), and (ii) all or
any portion of such payments are subsequently avoided, invalidated, determined
to be fraudulent or preferential, set aside or otherwise avoided, and required
to be paid by Creditor to a trustee, receiver, or any other party under any
bankruptcy law, state or federal law, common law or equitable cause, and are in
fact so paid by Creditor, then Lender will promptly return to Creditor the
amount so paid by Creditor.  Upon
expiration of this Agreement pursuant to Section 9 hereof, Creditor shall
be subrogated to all rights of Lender to receive all further payments or
distributions applicable to the Superior Debt, and, to the extent permitted by
law, shall have the benefit of all liens and security interests of Lender in
the assets and properties of Borrower until the Subordinated Debt shall have
been paid in full.  Creditor shall not
exercise any right of subrogation, reimbursement, restitution, contribution or
indemnity whatsoever prior to the expiration of this Agreement pursuant to Section 9
hereof.  For purposes of  Creditor’s subrogation rights hereunder,
payment to Lender with respect to the Superior Debt that Creditor would have
been entitled to receive with respect to the Subordinated Debt but for the
provisions of this Agreement shall not, as between Borrower, its creditors
(other than Lender) and Creditor, be deemed payments with respect to the
Superior Debt, but rather shall be deemed payments with respect to the
Subordinated Debt, it being understood that the provisions of this Agreement
are solely for the purpose of defining the relative rights of the holder of the
Superior Debt, on the one hand, and Creditor, on the other hand.

 

4.                                       Collection of Subordinated Debt: 
Bankruptcy. 
Until the expiration of this Agreement pursuant to Section 9
hereof, Creditor shall not, without the prior written consent of Lender,
accelerate the maturity of any of the Subordinated Debt or initiate or join
with any other creditor of Borrower in initiating any proceedings, voluntary or
involuntary, for the collection of the Subordinated Debt or for the
distribution, division or application of all or any part of the assets of
Borrower or the proceeds thereof, whether such proceedings be for the liquidation,
dissolution or winding up of Borrower or its business, receivership, insolvency
or bankruptcy proceedings, an assignment for the benefit of creditors or
proceedings by or against Borrower for relief under any bankruptcy,
reorganization or insolvency law or any law relating to the relief of debtors,
readjustment of indebtedness, reorganization, arrangement, composition,
extension or otherwise.  In the event of
any proceedings, voluntary or involuntary, for the distribution, division or
application of all or part of the assets of Borrower or the proceeds thereof
(whether such proceedings be for the liquidation, reorganization, dissolution
or winding up of Borrower or its business, receivership, insolvency or
bankruptcy proceedings, an assignment for the benefit of creditors or
proceedings by or against Borrower for relief under any bankruptcy,
reorganization, arrangement, composition or extension or otherwise), Creditor
shall file all claims, proofs of claim or other instruments of similar
character necessary to enforce the obligations of Borrower in respect of the
Subordinated Debt and will hold in trust for Lender and promptly pay over to
Lender in the form received (except for the endorsement of Creditor where
necessary) for application to the Senior Debt any and all moneys

 

4

 

and other assets received in such proceedings
on account of the Subordinated Debt until the expiration of this Agreement
pursuant to Section 9 hereof.  In
the event Creditor shall fail to timely take any such action, Creditor
automatically and irrevocably authorizes Lender to, at its option at any
meeting of creditors of Borrower or in any such proceeding:

 

(a)                                  Enforce claims comprising Subordinated Debt either in its own name
or the name of Creditor, by proof of debt, proof of claim, suit or otherwise;

 

(b)                                 Collect any assets of Borrower distributed, divided or applied by
way of dividend or payment, or any securities issued, on account of
Subordinated Debt and apply the same, or the proceeds of any realization upon
the same that Lender in its discretion elects to effect, to Superior Debt until
all Superior Debt has been paid in full, delivering any surplus to Creditor;

 

(c)                                  Vote claims comprising Subordinated Debt to accept or reject any plan
of partial or complete liquidation, reorganization, arrangement, composition or
extension; and

 

(d)                                 Take any action in connection with any such meeting or proceeding
which Creditor might otherwise take; provided, however, that upon expiration of
this Agreement pursuant to Section 9 hereof, all rights of Lender and
Creditor under any remaining Subordinated Debt shall be assigned to Creditor
without the necessity of further documentation or action.

 

5.                                       Warranties, Representations and Covenants.  Borrower and Creditor
represent and warrant that Creditor is the lawful owner of the Subordinated
Debt and no part thereof has been assigned to, or subordinated or subjected to
any other security interest in favor of, anyone other than Lender.  Until this Agreement expires pursuant to Section 9
hereof, Borrower shall not issue, amend or modify any instrument, security or
other writing evidencing any part of the Subordinated Debt except with the
prior written approval of Lender or at the request of and in the manner requested
by Lender if the effect of such issuance, amendment or modification has the
effect of (i) increasing the interest rate or rates on any of the
Subordinated Debt, (ii) advancing the scheduled payment dates of interest
or principal or final maturity date of any of the Subordinated Debt, (iii) making
any covenant more restrictive on Borrower (except that if Lender changes any
covenant in the Loan Agreement, Creditor and Borrower may make a similar change
in the corresponding covenant contained in Subordinated Debt documents), (iv) increasing
the amount of any fees payable under the Subordinated Debt documents (other
than customary default waiver or amendment fees), (v) causing any “Event
of Default” under the any Subordinated Debt documents to be less favorable to
Borrower, or (vi) imposing any express restrictions on Borrower’s ability
to make payments on the Superior Debt. 
Creditor agrees that it will not transfer, assign or subordinate all or
any portion of the Subordinated Debt without the prior written consent of
Lender, which consent shall not be unreasonably withheld, conditioned or
delayed and provided that such any such transferee, assignee or other person to
which rights are granted by Creditor under the Subordinated Debt becomes bound
to the obligations to Lender under this Agreement.  Creditor shall promptly provide Lender with
notice of any default or event of default (along with a description of the
default) under the Subordinated Debt Note, the Stock Purchase Agreement, or any
other instrument evidencing any of the Subordinated Debt as well as written
notice of the cure or waiver of said default.

 

5

 

6.                                       Subordination of Security Interest.  Lender hereby acknowledges Borrower’s grant
of a security interest in the assets described on Exhibit C
attached hereto (the “Collateral”) to Creditor solely as security for payment
of Borrower’s obligations pursuant to the Subordinated Debt Documents, as
evidenced by the Subordinated Debt Documents. 
Creditor hereby subordinates its security interests, liens, claims,
rights and remedies (now existing or hereafter arising) in and to the
Collateral and any other assets of Borrower (or any of its affiliates) and the
proceeds thereof, now owned or hereafter acquired and wherever located, to the
security interests, liens, claims, rights and remedies of Lender, it being
agreed by Creditor that Lender’s security interests, liens, claims, rights and
remedies shall have priority over Creditor’s. 
The priority set forth herein shall apply regardless of the date, time,
manner or order of attachment or perfection of the respective security
interests, liens, claims, rights and remedies of Creditor and Lender, the time
or sequence in which any financing statements are or were filed, any provision
of the Uniform Commercial Code or any applicable law, the provision of any
contract or agreement between Creditor and Borrower or whether Creditor (or any
agent or bailee thereof) maintains possession or control of any of Borrower’s assets.

 

7.                                       Disposition of Collateral.  Except in connection with the transfer of the
Subordinated Debt as permitted in Section 5 above, Creditor shall not
assign or transfer any of its rights in any of the Collateral without the prior
written consent of Lender.  Upon any such
assignment, Creditor agrees that Creditor and such assignee or transferee shall
execute such other documents, agreements and instruments as reasonably
requested by Lender.  Until the
expiration of this Agreement pursuant to Section 9 hereof, Creditor shall
not repossess, sell, lease or otherwise dispose of all or any of Borrower’s (or
any of its affiliates’) assets (including, without limitation, any of the
Collateral), exercise notification, collection or other rights with respect to all
or any portion thereof, or attempt or agree to do so, or exercise or commence
any of Creditor’s rights upon default on or under any of the Subordinated Debt
or any instrument or agreement evidencing any of the Subordinated Debt
(including, without limitation, any rights under the Uniform Commercial Code or
other applicable law).  Upon request of
Lender, Creditor shall release its security interests and liens in and to any
of the assets of Borrower (or any of its affiliates) to allow Lender to
collect, sell or otherwise dispose of said assets free and clear of Creditor’s
security interests and liens.

 

8.                                       Waivers.  Creditor waives any defense based on the
adequacy of a remedy at law which might be asserted as a bar to the remedy of
specific performance hereof in any action brought therefor by Lender.  Creditor further waives presentment, notice
and protest in connection with all negotiable instruments evidencing Superior
Debt or Subordinated Debt to which it may be a party, notice of the acceptance
of this Agreement by Lender, notice of any loans made, extensions granted or
other action taken in reliance hereon and all demands and notices of every kind
in connection with this Agreement, Superior Debt or Subordinated Debt.  Creditor assents to any modification,
amendment, or renewal of the Loan Agreement or any other document relating to
the Superior Debt and any extension or postponement of the time of payment or
any other indulgence in connection with Superior Debt, to any substitution,
exchange or release of collateral therefor and to the addition or release of
any person primarily or secondarily liable thereon.  Creditor waives any and all rights it may
have with respect to marshalling of assets.  
No waiver is made by Lender of any of its rights hereunder unless the
same is in writing, and each waiver, if any, is a waiver only with respect to
the specific instance involved.

 

6

 

9.                                       Waiver of Jury Trial. EACH PARTY TO
THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM
OR CAUSE OF ACTION ARISING UNDER THIS AGREEMENT OR IN ANY WAY CONNECTED WITH OR
INCIDENTAL TO THE DEALINGS OF THE PARTIES WITH RESPECT TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY, WHETHER NOW EXISTING OR HEREAFTER ARISING,
AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.  EACH PARTY HEREBY AGREES AND CONSENTS THAT
ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A
JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR
A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENTS
OF THE PARTIES TO THE WAIVER OF THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY.

 

10.                                 Duration.  This Agreement is a continuing agreement, and
Lender may, without notice to Creditor, extend or continue credit and make
other financial accommodations to or for the account of Borrower in reliance
upon this Agreement.  This Agreement
shall continue in full force and effect until (a) all outstanding Superior
Debt is paid in full and is not subject to any recovery, and (b) Lender
has no obligation to extend or continue credit to Borrower.

 

11.                                 Default.  If any representation or warranty made by
Borrower or Creditor in this Agreement or in any instrument evidencing the
Superior Debt (including, without limitation, the Loan Agreement) proves to
have been materially false when made; or in the event of a breach by Borrower
or Creditor in the performance of any of the terms of this Agreement or of any
instrument evidencing the Superior Debt (including, without limitation, the
Loan Agreement), Lender may, at its option, declare all Superior Debt to be
forthwith due and payable, without presentment, demand, protest or notice of
any kind, notwithstanding any time or credit otherwise allowed.  At any time Creditor fails to comply with any
provision applicable to Creditor, Lender may demand specific performance of
this Agreement, whether or not Borrower has complied with this Agreement, or
exercise any other remedy available at law or equity.

 

12.                                 Duties Limited.  The rights granted to Lender in this
Agreement are solely for its protection, and nothing herein contained imposes
on Lender any duties with respect to any property of Borrower or Creditor
received hereunder.  Lender has no duty
to preserve rights against prior parties in any instrument or chattel paper
received hereunder.

 

13.                                 Authority.  Borrower and Creditor each represent and
warrant that they have authority to enter into this Agreement and that the
persons signing for each party are authorized and directed to do so.

 

14.                                 Modification.  This Agreement may only be modified in
writing signed by Lender, Borrower and Creditor.

 

15.                                 Additional Documentation.  Borrower and Creditor shall execute and
deliver to Lender such further instruments and shall take such further action
as Lender may at any time or times reasonably request in order to carry out the
provisions and intent of this Agreement.

 

7

 

16.                                 Expenses.  Borrower agrees to pay Lender on demand all
expenses of every kind, including reasonable attorney’s fees, which Lender may
incur in enforcing or protecting any of its rights under this Agreement.  Creditor agrees to pay Lender on demand all
expenses of every kind, including reasonable attorney’s fees, which Lender may
incur in enforcing or protecting any of its rights under this Agreement as a
result of any violation of this Agreement by Creditor.

 

17.                                 Persons Bound.  This Agreement benefits Lender and its
successors and assigns, and binds the undersigned, their heirs, personal
representatives, successors and assigns.

 

18.                                 Defects Waived.  This Agreement is effective notwithstanding
any defect in the validity or enforceability of any instrument or document
evidencing the Superior Debt.

 

19.                                 Law Governing, Disputes.  The validity, construction and enforcement of
this agreement are governed by the internal laws of Minnesota.  Any judicial proceeding with respect to this
Agreement shall be brought solely any federal or state court of competent jurisdiction
located in Hennepin County in the State of Minnesota.  By execution and delivery of each this
Agreement each party: (i) accepts the exclusive jurisdiction of the
aforesaid courts and irrevocably agrees to be bound by any judgment rendered
thereby, (ii) waives personal service of process, (iii) agrees that
service of process upon it may be made by certified or registered mail, return
receipt requested, and (iv) waives any objection to jurisdiction and venue
of any action instituted hereunder and agrees not to assert any defense based
on lack of jurisdiction, venue, convenience or forum non conveniens.  All parties acknowledge that they
participated in the negotiation and drafting of this Agreement with the assistance
of counsel and that, accordingly, no party shall move or petition a court
construing this Agreement to construe it more stringently against one party
than against any other.

 

20.                                 No Third Party Beneficiaries.  All of the understandings, agreements,
representations and warranties contained herein are solely for the benefit of
Lender and its successors and assigns, and there are no parties (including
Borrower and other creditors of Borrower) who are intended to be benefited in
any way by this Agreement.

 

21.                                 Notices. All notices and other communications
hereunder shall be in writing and shall be deemed duly given upon delivery
either by commercial delivery service, or sent via facsimile (receipt
confirmed), to the parties at the following address or facsimile numbers (or at
such other address or facsimile numbers for a party as shall be specified by
like notice):

 

If to the Lender:

 

STEN Acquisition Corporation

10275 Minnetonka Boulevard, Suite 310

Wayzata, MN 55305

Attention: 
Kenneth W. Brimmer, Chief Executive Officer

Facsimile: 952-545-2795

 

with a copy to:

 

Lindquist & Vennum P.L.L.P.

 

8

 

4200 IDS Center

80 South Eighth Street

Minneapolis, Minnesota 55402

Attention: Girard P. Miller

Facsimile: 612-371-3207

 

If to Creditor:

 

Arthur Petrie

 

 

 

 

 

 

 

9

 

with a copy to

 

Hinshaw & Culberson LLP

222 South Ninth Street, Suite 3100

Minneapolis, Minnesota 55402

Attention: L.J. Rotman

Facsimile: 612-334-8888

 

Any party hereto may by notice so given
provide and change its address for future notices hereunder.  Notice shall conclusively be deemed to have
been given when personally delivered or when deposited in the mail in the
manner set forth above.

 

22.                                 Conversion. Borrower and Creditor
agree that immediately prior to the Merger, as defined in the Loan
Agreement,  Borrower and Creditor shall
convert all principal, interest and other amounts owed under the Subordinated
Debt Note and Stock Purchase Agreement into shares of the Borrower’s common
stock, and Lender hereby consents to such conversion and the issuance of
Borrower stock in connection therewith. 
Borrower and Creditor agree that immediately upon such conversion, all
security interests of the Creditor in assets of the Borrower or Subsidiary, and
their respective affiliates shall be immediately released.

 

23.                                 Counterparts.  This Agreement may be executed in
counterparts.

 

[signature page to follow]

 

10

 

IN WITNESS WHEREOF, the undersigned have executed this Agreement effective as of the
date first above written:

 

 

	
  CREDITOR:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Arthur Petrie

  	
   

  	
   

  
	
  Arthur Petrie

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  LENDER:

  	
   

  
	
   

  	
   

  
	
  STEN ACQUISITION CORPORATION

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Kenneth W. Brimmer

  	
   

  	
   

  
	
  Name:

  	
  Kenneth W. Brimmer

  	
   

  
	
  Its:

  	
  Chief Executive Officer

  	
   

  
					

 

 

The Borrower hereby consents to the forgoing
Agreement (and the terms thereof) and agrees to abide thereby and to keep,
observe and perform the several matters and things therein intended to be kept,
observed and performed by it, and specifically agrees not to make any payments
contrary to the intention and terms of this Agreement.  Any breach of the terms of this Agreement
shall constitute a default in the terms of the Superior Debt.

 

 

	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  SITE EQUITIES INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth Antos

  	
   

  
	
   

  	
  Name:

  	
  Kenneth Antos

  
	
   

  	
  Its:

  	
  PresidentExhibit 10.7

 

VOTING AGREEMENT

 

This VOTING AGREEMENT (the “Agreement”)
is made and entered into as of November 22, 2005 by and STEN Acquisition
Corporation, a Minnesota corporation (the “Purchaser”) and the
undersigned shareholder (the “Company Shareholder”) of Site Equities
International, Inc., a Nevada corporation (the “Company”).

 

RECITALS

 

A.                                   Concurrently with the execution of this Agreement, the Purchaser,
the Company and Paycenters, LLC are entering into a loan and merger option
agreement (the “Option Agreement”) which provides, inter alia, that the
Purchaser shall have the option to acquire the Company by causing the Company
to merge with the Purchaser after which time the Purchaser will continue as the
surviving corporation and as a wholly-owned subsidiary of STEN Corporation, a
Minnesota corporation (“STEN”).  If the
Purchaser exercises the Merger Option (defined in the Option Agreement) and the
Merger (defined in the Option Agreement) is thereafter consummated, shares of
the Company’s common stock (“Common Stock”) will be converted into the right to
receive shares of common stock of STEN on the basis described in the Option
Agreement.

 

B.                                     The Company Shareholder is the holder of Shares as defined herein.

 

C.                                     As a material inducement to enter into the Option Agreement, the
Purchaser desires the Company Shareholder to agree, and the Company Shareholder
is willing to agree, to vote the Shares so as to facilitate consummation of the
Merger in the event that the Merger Option (defined in the Option Agreement) is
exercised.

 

D                                       Capitalized terms used but not defined herein shall have the
meanings set forth in the Option Agreement.

 

NOW, THEREFORE, in consideration of the
foregoing and the mutual promises, covenants and conditions set forth herein,
the parties hereto agree as follows:

 

1.                                       AGREEMENT TO VOTE SHARES

 

1.1                                 Definitions.  For the purposes of this Agreement:

 

(a)                                  Shares.  The term “Shares” means such number of shares
of capital stock of the Company, including without limitation shares of the
Company Common Stock, owned of record or beneficially by the Company
Shareholder or over which the Company Shareholder may exercise voting power or
control as of the execution by the Company Shareholder of this Agreement or as
of the record date for of any meeting, consent or approval described in Section 1.2
hereof.

 

 

(b)                                 Transfer.  The Company Shareholder shall be deemed to
have effected a “Transfer” of a security if the Company Shareholder directly or
indirectly:  (i) sells, pledges,
encumbers, transfers or disposes of, or grants an option with respect to, such
security or any interest therein; or (ii) enters into an agreement or
commitment providing for the sale, pledge, encumbrance, transfer or disposition
of, or grant of an option with respect to, such security or any interest
therein.

 

(c)                                  Other. 
For purposes of the definition of Shares, the terms “beneficial owner”, “beneficial
ownership”, “affiliate” and “associate” shall have the meaning given such terms
in the Securities Exchange Act of 1934, as amended and the rules and
regulations promulgated thereunder.

 

1.2                                 Agreement to Vote Shares.  The Company Shareholder hereby covenants and
agrees that, prior to the termination of the Company’s Shareholders obligations
under this Section 1.2 pursuant to Section 3 hereof, at any meeting
(whether annual or special and whether or not an adjourned or postponed
meeting) of the shareholders of the Company, however called, or in connection
with any consent or approval of the shareholders of the Company, the Company
Shareholder will appear at the meeting or otherwise cause the Shares or other
voting rights of Company Shareholder to be counted as present thereat for
purposes of establishing a quorum and:

 

(a)                                  in the event that the Merger Option is exercised in accordance with
the terms of the Option Agreement, vote, consent or approve (or cause to be
voted, consented or approved) in favor of any action or proposal relating to
the approval and adoption of the Option Agreement, the Merger, any agreement
and plan of merger relating to the Merger and the other actions contemplated by
the Option Agreement and any actions required in furtherance thereof; and

 

(b)                                 vote against, withhold consent or approval for, or dissent from (or
cause to be voted against, approval or consent to be withheld, or dissent) any
action or proposal that would adversely effect the Purchaser’s rights and
benefits under the Option Agreement; provided the Purchaser is not then in
material breach any of its obligations thereunder.

 

By executing this Agreement, the Company Shareholder hereby revokes all
proxies heretofore made by the Company Shareholder with respect to the subject
matter contained herein.  The Company Shareholder further agrees not to enter into any
agreement or understanding with any person, including any voting agreement or
voting trust, the effect of which would be inconsistent with or violative of
any provision contained in this Section 1.2.  Notwithstanding any other provision in this
Agreement to the contrary, in no event shall this Agreement (i) be
applicable to any vote of the shareholders of the Company pertaining to the
election of directors of the Company or (ii) constitute an acknowledgement
by the Purchaser that the execution and delivery by the Purchaser or the
Company Shareholder results in, or will result in, the Purchaser acquiring
beneficial ownership of any of the Shares.

 

2

 

1.3                                 Transfer and Other Restrictions.

 

(a)                                  Prior to the termination of the Company’s Shareholders obligations
under this Section 1.3 pursuant to Section 3 hereof, the Company
Shareholder agrees not to, directly or indirectly:

 

(i)                                     offer for sale, Transfer or otherwise dispose of, or enter into any
contract, option or other arrangement or understanding with respect to, or
consent to the offer for sale, Transfer or other disposition of, any or all of
the Shares or any interest therein;

 

(ii)                                  grant any proxy or power of attorney with respect to the Shares,
deposit any of the Shares into a voting trust or enter into a voting agreement
(other than this Agreement) or arrangement with respect to the Shares;
provided, however, that Company Shareholder may grant a proxy which obligates
the recipient of such proxy to vote the Shares consistent with the terms hereof
(it being understood that the grant of such proxy does not relieve the Company
Shareholder of his obligations under Section 1.2 hereof) or

 

(iii)                               take any other action that would make any representation or
warranty of the Company Shareholder contained herein untrue or incorrect or
have the effect of preventing or disabling the Company Shareholder from
performing his obligations under this Agreement.

 

(b)                                 To the extent the Company Shareholder is, as of the date hereof,
party to a contract or agreement that requires the Company Shareholder to
Transfer Shares to another person or entity, the Company Shareholder will not
effect any such Transfer unless and until the transferee agrees to be bound by
and executes an agreement in the form of this Agreement with respect to the
Shares to be Transferred.  Nothing herein
shall prohibit the Company Shareholder from exercising (in accordance with the
terms of the option or warrant, as applicable) any option or warrant the
Company Shareholder may hold; provided that the securities acquired upon such
exercise shall be deemed subject to this Agreement.

 

1.4                                 Other Agreements

 

(a)                                  Upon the request of the Purchaser, the Company Shareholder agrees to notify promptly the
Purchaser of the number of any additional Shares acquired by the Company
Shareholder, if any, after the execution of this Agreement.

 

(b)                                 The Company Shareholder agrees not to solicit, initiate, consider,
encourage or accept any other proposals or offers from any person or entity (i) relating
to any acquisition or purchase of all or any portion of the Shares or assets of
the Company other than in such fashion that does not lead to, or result in, the
Company violating its obligations under the Option Agreement or the Company
Shareholder violating his obligations under this Agreement, (ii) that
contemplates or causes such person or

 

3

 

entity entering
into any business combination with the Company other than in such fashion that
does not lead to, or result in, the Company violating its obligations under the
Option Agreement or the Company Shareholder violating his obligations under
this Agreement or (iii) that contemplates or causes such person or
entity entering into any other extraordinary business transaction
involving or otherwise relating to the Company other than in such fashion that
does not lead to, or result in, the Company violating its obligations under the
Option Agreement or the Company Shareholder violating his obligations under
this Agreement.

 

2.                                       REPRESENTATIONS AND WARRANTIES OF THE
COMPANY SHAREHOLDER

 

2.1                                 The Company Shareholder is the record and beneficial owner of, or
the Company Shareholder exercises voting power over, (a) the number of
Shares indicated on the final page of this Agreement, which
are free and clear of any Liens and (b) the options, warrants, purchase
rights, subscription rights, conversion rights, exchange rights, or other
contracts or commitments of any kind pursuant to which the Company Shareholder
may acquire Shares as set forth on the final page of this Agreement.  Except as set forth on the final page of
this Agreement, the Company Shareholder does not own of record, beneficially
own or have any other rights, interests, rights to control or vote, or direct
the control or voting of, any Shares as of the date of this Agreement.

 

2.2                                 The Company Shareholder has the requisite power and authority to
enter into this Agreement and to consummate the transactions contemplated by this Agreement.  The execution and delivery
of this Agreement by the Company Shareholder and the consummation by the Company
Shareholder of the transactions contemplated by this Agreement have
been duly authorized by all necessary action of the Company Shareholder.  This Agreement has been
duly executed and delivered by the Company Shareholder and constitutes a valid
and binding obligation of the Company Shareholder, enforceable against the
Company Shareholder in accordance with its terms, except (i) as the same
may be limited by applicable bankruptcy, insolvency, moratorium or similar laws
of general application relating to or affecting creditors’ rights, and (ii) for
the limitations imposed by general principles of equity.  The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated by
this Agreement and compliance with the provisions of this Agreement will not, conflict with, or result in any violation of or default
(with or without notice or lapse of time, or both) under, or give rise to a
right of termination, cancellation or acceleration of any obligation which
would result in the creation of any Lien upon any of the Shares owned by the
Company Shareholder or any Shares as to which the Company Shareholder has any
rights, under any provision of applicable law or regulation or of any
agreement, judgment, injunction, order, decree or other instrument binding on
the Company Shareholder or any Shares owned by the Company Shareholder.  The execution and delivery of this Agreement by the Company Shareholder do not, and the performance of this Agreement by the Company Shareholder will not, require any written, oral or
other agreement, contract or legally binding commitment of any third
party.  If this Agreement is being
executed in a representative or fiduciary capacity, the person signing this Agreement has full power and authority to enter into and perform this Agreement.

 

3.                                       TERMINATION OF OBLIGATIONS

 

The obligations of the Company Shareholder
pursuant to Sections 1.2 and 1.3 hereof shall terminate upon the earliest of (i) the
Merger Effective Date (as defined in the Option Agreement), or (ii) the
date of the termination of the Option Agreement.  In addition, the

 

4

 

Purchaser may terminate this Agreement in its
entirety by providing written notice of such termination to the Company
Shareholder, and such termination shall be effective immediately upon delivery
of such notice.

 

4.                                       MISCELLANEOUS

 

4.1                                 Severability.  If any term, provision, covenant or
restriction of this Agreement is held by a court of competent
jurisdiction to be invalid, void or unenforceable, then the remainder of the
terms, provisions, covenants and restrictions of this Agreement shall
remain in full force and effect and shall in no way be affected, impaired or
invalidated.

 

4.2                                 Binding Effect and Assignment.  This Agreement and all
of the provisions hereof shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and permitted assigns, but,
except as otherwise specifically provided herein, neither this Agreement nor any of the rights, interests or obligations of the parties
hereto may be assigned by either of the parties without prior written consent
of the other.  Any purported assignment
in violation of this Section 4.2 shall be void.

 

4.3                                 Amendments and Modification.  This Agreement may not
be modified, amended, altered or supplemented except upon the execution and
delivery of a written agreement executed by the parties hereto.

 

4.4                                 Notices.  All notices and other communications hereunder
shall be in writing and shall be deemed duly given upon delivery either by
commercial delivery service, or sent via facsimile (receipt confirmed), to the
parties at the following address or facsimile numbers (or at such other address
or facsimile numbers for a party as shall be specified by like notice):

 

	
  If to the
  Purchaser:

   

  STEN
  Acquisition Corporation

  10275 Minnetonka Boulevard, Suite 310

  Wayzata, MN 55305

  Attention:  Kenneth W. Brimmer,

  	
  with a copy
  to:

   

  Lindquist & Vennum P.L.L.P.

  4200 IDS Center

  80 South Eighth Street

  Minneapolis, Minnesota 55402

  
	
   

  	
  Chief
  Executive Officer

  	
  Attention: Girard P. Miller

  
	
  Facsimile:
  952-545-2795

  	
  Facsimile: 612-371-3207

  
			

 

If to the Company Shareholder, to the address
for notice set forth on the last page hereof.

 

Any
party hereto may by notice so given provide and change its address for future
notices hereunder.  Notice shall
conclusively be deemed to have been given when personally delivered or when
deposited in the mail in the manner set forth above.

 

4.5                                 Governing Law; Disputes.  This Agreement shall be
governed by and construed exclusively in accordance with the laws of the State
of Minnesota.  In the event there is any
dispute between the parties hereto over the number of the Shares owned of
record or beneficially by the Company Shareholder or over which the Company
Shareholder exercises voting power as of the execution by the Company
Shareholder of this Agreement and all

 

5

 

additional
Shares (including without limitation all additional shares of the Company
Common Stock) of which the Company Shareholder acquires ownership or voting
power after the time that the Company Shareholder executes this Agreement that are included in the definition Shares, the determination of
such dispute shall be determined be a court of competent jurisdiction.

 

4.6                                 Entire Agreement.  This Agreement
constitutes and contains the entire agreement and understanding of the parties
with respect to the subject matter hereof and supersedes any and all prior
negotiations, correspondence, agreements, understandings, duties or obligations
between the parties respecting the subject matter hereof.

 

4.7                                 Counterparts.  This Agreement may be
executed in facsimile and in or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.

 

4.8                                 Captions.  The captions to sections of this Agreement have been inserted for identification and reference purposes only
and shall not be used to construe or interpret this Agreement.

 

4.9                                 Judicial Proceedings. Any judicial
proceeding with respect to this Agreement shall be brought solely any federal
or state court of competent jurisdiction located in Hennepin County in the
State of Minnesota.  By execution and
delivery of each this Agreement each party: (i) accepts the exclusive
jurisdiction of the aforesaid courts and irrevocably agrees to be bound by any
judgment rendered thereby, (ii) waives personal service of process, (iii) agrees
that service of process upon it may be made by certified or registered mail,
return receipt requested, and (iv) waives any objection to jurisdiction
and venue of any action instituted hereunder and agrees not to assert any
defense based on lack of jurisdiction, venue, convenience or forum non
conveniens.  All parties acknowledge that
they participated in the negotiation and drafting of this Agreement with the
assistance of counsel and that, accordingly, no party shall move or petition a
court construing this Agreement to construe it more stringently against one
party than against any other.

 

4.10                           Waiver of Jury Trial. EACH PARTY TO
THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM
OR CAUSE OF ACTION ARISING UNDER THIS AGREEMENT OR IN ANY WAY CONNECTED WITH OR
INCIDENTAL TO THE DEALINGS OF THE PARTIES WITH RESPECT TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY, WHETHER NOW EXISTING OR HEREAFTER ARISING,
AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.  EACH PARTY HEREBY AGREES AND CONSENTS THAT
ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A
JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR
A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENTS
OF THE PARTIES TO THE WAIVER OF THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY.

 

[Signature Page to Follow]

 

6

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be executed by their duly authorized
respective officers as of the date first above written.

 

	
   

  	
  STEN
  ACQUISITION CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE COMPANY
  SHAREHOLDER:

  
	
   

  	
   

  
	
   

  	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Printed
  Name:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Executed by
  each of Kenneth Antos, Mark Hill and

  Arthur Petrie]

  
	
   

  	
   

  
	
   

  	
  The Company
  Shareholder’s Address for Notice:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Shares
  Beneficially Owned by the Company

  Shareholder:
             *

  
	
   

  	
   

  
	
   

  	
  Warrants,
  Options or other rights to acquire Shares

                 (number
  of Shares)

  
								

 

*The number of
Shares shall be determined in accordance with Section 1.1(a) hereof.

 

7

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