Document:

Exhibit 10.1

    EXHIBIT 10.1

    
      
        

      

    SEPARATION
      AGREEMENT AND RELEASE

     

     

    This
      Separation Agreement and Release (the "Agreement") is entered into effective
      as
      of March 7, 2006 (the “Effective Date”), between W. Reed Williams (hereinafter
      "Williams") and Frontier Oil Corporation (hereinafter together with its
      subsidiaries and affiliates referred to as "Frontier"). The parties to this
      Agreement may be collectively referred to herein as "the parties."

     

    Recitals

     

    A. Williams
      has been employed by Frontier as Executive Vice President - Refining and
      Marketing Operations for Frontier.

     

    B. Williams
      has requested, and Frontier accepts, Williams’ request for early
      retirement.

     

    C. This
      Agreement sets forth the terms and conditions of Williams’ separation of
      employment with Frontier, as well as the benefits to be received by Williams
      and
      his post-separation obligations to Frontier.

     

    D. This
      Agreement shall bind and benefit the heirs, personal representatives,
      administrators, successors and assigns of the parties.

     

    Agreement

     

    The
      parties contract and agree as follows:

     

    1.  Resignation
      by Williams.
      The
      parties agree that Williams' employment by Frontier shall terminate effective
      as
      of the close of business on March 31, 2006 (the “Resignation Date”). The
      execution of this Agreement shall serve as the resignation by Williams as an
      officer and employee of Frontier as of the Resignation Date. Notwithstanding
      the
      Resignation Date, Williams agrees that Frontier may announce Williams’
resignation, as well as his replacement, prior to the Resignation Date. Williams
      further agrees to cooperate in the transition of his duties to his replacement
      during the period between the announcement of Williams’ replacement and the
      Resignation Date.

     

    2.  Payment
      of Salary.
      Upon
      the Resignation Date, Frontier shall pay Williams all accrued but unpaid salary,
      wages, and bonuses earned as of the Resignation Date, as well as any earned
      but
      unused vacation pay. The parties acknowledge and agree that as of the
      Resignation Date, Williams has four (4) weeks of earned but unused vacation
      pay.
      The parties acknowledge that Williams is a participant in Frontier’s 401(k) and
      deferred compensation plans and agree that sums held in those plans shall be
      determined and distributed in accordance with the terms of the respective
      plans.

     

    3.  Consideration
      for Agreement.
      In
      consideration of the release, promises and covenants set forth herein, Frontier
      agrees to provide Williams with the following consideration:

     

    3.1  Stock
      Option Expiration.
      All
      options to purchase the stock of Frontier held by Williams are listed below
      together with the applicable purchase prices per share. Provided he is not
      in
      default hereunder and has not exercised his revocation rights as provided in
      paragraph 10.5 hereof, Williams shall have twelve (12) months from the
      Resignation Date to exercise such options.

     

     

    
      	
              Grant
                Date

               

            	
              No.
                of Shares

               

            	
              Strike
                Price

               

            
	
              2/20/03

               

            	
              62,500

               

            	
              $8.325

               

            

    

     

    3.2  Restricted
      Stock.
      All
      restricted stock which has been granted to Williams pursuant to the following
      grants shall vest as of the Resignation Date provided Williams has not exercised
      his revocation rights as provided under paragraph 10.5 of this
      Agreement.

     

    
      	
              Grant
                

              Date

               

            	
              Total
                

              Granted
                

              Share

               

            	
              Vesting
                

              Dates:
                

              3/13/06

               

            	
              Vesting
                

              Dates:
                

              3/13/07

               

            	
              Vesting
                

              Dates:
                

              1/1/08

               

            	
              Vesting
                

              Dates:
                

              3/13/08

               

            	
              Vesting
                

              Dates:
                

              3/13/09

               

            	
              Total
                

              Vesting
                

              Shares

               

            
	
              3/13/05

               

            	
              10,212

               

            	
              2,553

               

            	
              2,553

               

            	
              ---

               

            	
              5,106

               

            	
              ---

               

            	
              10,212

               

            
	
              3/13/06(1)(2)

               

            	
              3,449

               

            	
              ---

               

            	
              862

               

            	
              ---

               

            	
              862

               

            	
              1,725

               

            	
              3,449
                (1)(2)

               

            
	
              3/13/06(1)(3)

               

            	
              13,220

               

            	
              ---

               

            	
              ---

               

            	
              13,220

               

            	
              ---

               

            	
              ---

               

            	
              13,220
                (1)(3)

               

            
	 	 	 	 	 	 	 	 
	
              Total
                Shares

               

            	
              26,881

               

            	
              2,553

               

            	
              3,415

               

            	
              13,220

               

            	
              5,968

               

            	
              1,725

               

            	
              26,881

               

            
	
              Dollar
                Value (4)

               

            	 	
              $127,650

               

            	
              $170,750

               

            	
              $661,000

               

            	
              $298,400

               

            	
              $86,250

               

            	
              $1,344,050

               

            

    

    Notes:

     

    (1)
      Grants approved at Compensation Committee meeting dated 2/21/06, but grant
      letters not yet issued.

    (2)
      Shares granted as a component of 2005 incentive bonus.

    (3)
      Shares granted in relation to 2005 Long Term Incentive Plan, but grant letters
      not yet issued. 

    (4)
      Calculation based on price of approximately $50.00 per share. 

     

    3.3  Group
      Medical.
      Upon
      expiration of Williams’ coverage under the Consolidated Omnibus Budget
      Reconciliation Act of 1985, 29 U.S.C. §§ 1161-1168 (“COBRA”), Williams and his
      wife shall be covered by Frontier’s Executive Retiree Medical Plan (“Medical
      Plan”) (See Exhibit A) as of the date COBRA continuation coverage ceases and
      shall be eligible under this Agreement to continue coverage under the Medical
      Plan until Williams reaches age 65 and for his wife until she reaches age 65
      (the “Additional Coverage Term”) under the following conditions:

     

    (a)  Williams
      qualifies for the “Minimum Benefit” coverage provided by the Medical
      Plan.

     

    (b)  No
      dependent may be added during the Additional Coverage Term.

     

    (c)  Coverage
      for the Additional Coverage Term shall remain in effect only if Williams timely
      remits to the Frontier group health plan payment of the monthly premium for
      the
      plan coverage.

     

    (d)  The
      monthly premium shall be as provided in the Executive Retiree Medical Plan
      and
      communicated annually to Williams by Frontier. Any premium change shall be
      assessed prospectively only. 

     

    (e)  If
      Williams or his wife becomes entitled to participate in any other health plan,
      e.g., through an employer group health plan or a governmental program such
      as
      Medicare, that provides substantially similar benefits and coverage as provided
      under the Medical Plan, coverage for the affected individual under the Medical
      Plan shall terminate immediately, retroactive to the date the affected
      individual became entitled to participate in such other health
      plan.

     

    (f)  Coverage
      for Williams’ wife shall cease immediately upon divorce from Williams,
      retroactive to the date of divorce.

     

    (g)  Coverage
      for Williams and his wife shall cease immediately if Williams breaches any
      of
      the restrictive covenants contained in paragraph 8 of this Agreement,
      retroactive to the date of breach.

     

    (h)  Williams
      acknowledges and agrees that during the Additional Coverage Term, Frontier
      reserves the right to amend or terminate the Medical Plan or increase the active
      employee premium to be paid at Frontier’s discretion, to the extent that such
      changes are not limited to Williams and other participants receive continuation
      coverage pursuant to a substantially similar increase or revision of the Medical
      Plan. Under this Agreement, Frontier will provide Williams with two (2) months
      advance notice prior to any decision to amend or terminate the Medical Plan
      or
      increase the premium to be paid.

     

    3.4  Houston
      Apartment Lease.
      With
      respect to any remaining monthly payments on Williams’ existing lease of his
      Houston, Texas apartment, Williams shall submit such payments to Frontier for
      reimbursement as travel and entertainment expenses.

     

    3.5  Private
      Club Membership.
      Frontier agrees to pay the amount required to transfer the Valley Country Club
      membership to Williams in order for him to continue his membership with the
      club. Williams shall be solely responsible for any monthly country club charges
      and dues that may accrue after his Resignation Date.

     

    3.6  Cell
      Phone.
      Frontier agrees that Williams may retain his company-issued cell phone and
      cell
      phone number following his resignation, with service to be transferred to a
      provider designated by Williams. Following the Resignation Date, Williams shall
      be solely responsible for all cell phone service fees and charges.

     

    4.  Williams
      Release.
      Williams, for himself, his heirs, executors, administrators, successors and
      assigns, does hereby fully and unconditionally release, discharge and covenant
      to hold harmless Frontier and its respective predecessors, successors, assigns,
      parent companies, subsidiaries, affiliates, general and limited partners,
      agents, attorneys, officers, directors, shareholders, employees, independent
      contractors, consultants, representatives and insurers (hereinafter collectively
      referred to as "Frontier Releasees") from any and all "causes of action" arising
      from, relating or attributable in any manner to: (a) Williams' employment
      relationship with Frontier; (b) Williams' termination from employment with
      Frontier; and (c) any and all acts, omissions, conduct or representations of
      Frontier, its officers, directors, shareholders, and employees prior to the
      date
      of execution of this Agreement; provided, however, that nothing in this
      paragraph 4 shall be construed to release Frontier from any liability arising
      under this Agreement.

     

    4.1  It
      is
      expressly agreed that nothing in the foregoing release shall be interpreted
      to
      release any indemnification provisions applicable to Williams in the articles
      of
      incorporation or bylaws of Frontier, nor to terminate the benefits that would
      otherwise be available under the Indemnification Agreement, dated July 16,
      2000,
      between Williams and Frontier or under any applicable directors' and officers'
      liability insurance policies with respect to Williams's service as an officer
      of
      Frontier.

     

    5.  Frontier
      Release.
      Frontier, for itself, is respective predecessors, successors, assigns, parent
      companies, subsidiaries, agents, attorneys, officers, directors, shareholders,
      employees, independent contractors, consultants, representatives and insurers
      does hereby fully and unconditionally release, discharge and covenant to hold
      harmless Williams, his agents, attorneys, heirs, executors, administrators,
      successors and assigns (hereinafter collectively referred to as "Williams
      Releasees") from any and all "causes of action" arising from, relating or
      attributable in any manner to: (a) Williams' employment relationship with
      Frontier; (b) Williams' termination from employment with Frontier; and (c)
      any
      and all acts, omissions, conduct or representations of Williams prior to the
      date of execution of this Agreement.

     

    5.1  It
      is
      expressly agreed that nothing in the foregoing release shall be interpreted
      to
      release Williams from any liability arising under this Agreement or for any
      fraudulent or criminal conduct that occurred prior to the date of execution
      of
      this Agreement.

     

    6.  Causes
      of Action.
      "Causes
      of action" as used in paragraphs 4 and 5 of this Agreement shall mean all
      claims, demands, charges of discrimination, administrative complaints, lawsuits,
      judgments, liens, damages, causes of action, suits, rights, demands, debts
      and
      expenses (including attorneys' fees and costs actually incurred), liabilities
      and obligations of any kind and nature whatsoever, whether intentional or
      negligent, known or unknown, suspected or unsuspected, in law or in equity,
      individually or as part of a class action, including any and all known and
      unknown, foreseen or unforeseen injuries, damages and losses, including without
      limitation, physical, emotional, psychological or personal injuries, death,
      pecuniary losses, increased risk of harm or death, medical and rehabilitative
      expenses, loss of fringe benefits, loss of services, loss of income, loss of
      enjoyment of life, loss of reputation, loss of consortium, pain and suffering,
      compensatory damages, punitive damages, or damages to property, and the
      consequences thereof, occurring prior to the date of execution of this
      Agreement. The term "causes of action" includes all claims arising under any
      constitution, federal, state or local laws, including, but not limited to the
      Age Discrimination in Employment Act; the Americans with Disabilities Act;
      the
      Civil Rights Acts of 1866, 1871, 1964 and 1991; the Colorado Civil Rights Act;
      the Family and Medical Leave Act; the Older Workers Benefit Protection Act
      of
      1990; and any claims or causes of action arising from any theory under common
      law, including but not limited to, breach of contract; breach of covenant of
      good faith and fair dealing; breach of fiduciary duty; defamation; intentional
      interference with prospective business advantage; misrepresentation; negligence;
      promissory estoppel; unjust enrichment; wrongful discharge, and any claims
      under
      applicable corporations laws.

     

    7.  Confidential
      Information.
      Williams acknowledges that in connection with his employment with Frontier,
      he
      has had access to financial, operating, technical and other information
      concerning Frontier and its refining and marketing operations which has not
      been
      previously made available to the public (hereinafter "Confidential
      Information"). Williams warrants, covenants and agrees that prior to his
      Resignation Date, (a) he has returned to Frontier any documents, reports,
      manuals, drawings, computer programs, computer output, client information,
      customer or vendor lists, summaries, contracts, forms, memoranda, photographs,
      maps, magnetic tapes, computer discs or any other material containing
      Confidential Information which was received by Williams in the course of his
      employment with Frontier and in his possession at the time of the termination
      of
      such employment and (b) he has disclosed and provided Frontier with the
      opportunity to pursue any and all business opportunities relating in any way
      to
      the petroleum refining and marketing business as understood in its most general
      sense or about which Williams became aware as a result of his employment with
      Frontier (“Corporate Opportunities”) and (c) he has not personally taken
      advantage of any such Corporate Opportunities and, if he has done so, he agrees
      that such Corporate Opportunities shall be deemed to be held in constructive
      trust on behalf of Frontier.

     

    7.1  Notwithstanding
      the foregoing, Frontier shall allow Williams to remove a copy of his list of
      personal and business contacts, as well as his “Personal Links” or “Favorites”
Internet list.

     

    7.2  
      Upon
      Williams’ return of all Confidential Information, Frontier shall provide
      Williams with a written acknowledgment of receipt of Confidential
      Information.

     

    8.  Covenants
      and Warranties of Williams.
      Williams warrants, covenants and agrees that he will not, without Frontier's
      prior written approval, at any time within two (2) years of the date of this
      Agreement:

     

    8.1  Make
      use
      of any Confidential Information or Corporate Opportunities belonging to
      Frontier, either individually or with any other person, whether as a principal,
      agent, shareholder, officer, advisor, manager, employee or
      otherwise;

     

    8.2  Directly
      or indirectly own, manage, control, participate in, consult with, render
      services for, or in any manner engage in any business (including by himself
      or
      through any other entity) competing or taking action to prospectively compete
      with the petroleum refining and marketing businesses of Frontier or its
      subsidiaries in the states of Wyoming, Utah, Montana, Colorado, New Mexico,
      Oklahoma, Nebraska, Kansas, Missouri, North Dakota, South Dakota or Iowa.
      Nothing herein shall prohibit Williams from being a passive owner of not more
      than 2% of the outstanding stock of a corporation that is publicly traded,
      so
      long as Williams has no active participation in the business of such
      corporation. Additionally, nothing herein shall prohibit Williams from working
      as an Adizes management consultant or as a consultant for insurance claims;
      and

     

    8.3  Recruit
      or hire, or attempt to recruit or hire, any employee of Frontier with whom
      Williams had contact during Williams’ last twenty-four (24) months of employment
      with Frontier. For the purposes of this subparagraph 8.3, “contact” means any
      interaction whatsoever between Williams and the other employee.

     

    Williams
      acknowledges and agrees that the restrictive covenants set forth in the above
      subparagraphs are justified by Williams’ status as a former executive of
      Frontier and for the protection of Frontier’s trade secrets. Williams further
      acknowledges and agrees that the duration and geographic scope of these
      restrictive covenants are, in light of Williams’ position and access to
      Frontier’s trade secrets, reasonable and necessary.

     

    9.  Cooperation.
      Williams agrees to make himself reasonably available to Frontier to respond
      to
      requests by the company for information pertaining to or relating to Frontier
      which may be within the knowledge of Williams. Williams will cooperate fully
      with Frontier in connection with any and all existing or future litigation
      or
      investigations brought by or against Frontier, whether administrative, civil
      or
      criminal in nature. Frontier will reimburse Williams for all reasonable expenses
      incurred as a result of such cooperation. Williams agrees that he will not
      counsel or assist any attorneys or their clients in the presentation or
      prosecution of any disputes, differences, grievances, claims, charges or
      complaints by any third party against Frontier and/or any officer, director,
      employee, agent, representative, shareholder or attorney of Frontier, unless
      under a subpoena or other court order to do so. In all matters, Williams is
      expected to testify truthfully.

     

    10.  Acknowledgments
      and Agreements of Williams.
      Williams acknowledges and agrees that:

     

    10.1  Among
      the
      claims which he is releasing by this Agreement are claims for age discrimination
      under the Age Discrimination in Employment Act;

     

    10.2  In
      return
      for this Agreement and the consideration provided herein, he is receiving
      benefits beyond that which he was already entitled to receive before entering
      into this Agreement;

     

    10.3  He
      was
      given a copy of this Agreement on or before March 7, 2006, and informed that
      he
      had 21 days within which to consider this Agreement;

     

    10.4  He
      was
      orally advised by Frontier, and he is advised in writing by this Agreement,
      to
      consult with an attorney before signing this Agreement; and

     

    10.5  
      He was
      informed that he has seven (7) days following the date he executes this
      Agreement in which to revoke this Agreement.

     

    10.6  Any
      revocation of this Agreement by Williams must be in writing and hand-delivered
      to Frontier during the seven-day revocation period. This Agreement shall become
      effective and enforceable seven (7) days following execution of this Agreement
      by Williams, unless it is revoked during the seven-day revocation
      period.

     

    11.  Entire
      Agreement.
      This
      Agreement constitutes the entire agreement between the parties on the subject
      matter hereof and supersedes and replaces any and all understandings,
      obligations, representations and agreements, whether written or oral, express
      or
      implied. Any amendment, modification or additions to this Agreement must be
      reduced to writing and signed by both parties to be effective.

     

    12.  Segregation.
      In the
      event any provision of this Agreement is found to be illegal or unenforceable,
      such provision will be severed and/or modified to the extent necessary to make
      it enforceable, and as so severed and/or modified, the remainder of this
      Agreement shall remain in full force and effect.

     

    13.  Voluntary
      Agreement.
      The
      parties have read this Agreement and have freely and voluntarily entered into
      the Agreement. Each party has received the advice of legal counsel of their
      own
      choosing, and each party states that it is fully aware of the contents of this
      Agreement and its legal meaning and effect. Each party confirms that such party
      has executed this Agreement free from duress, undue influence, or promise not
      set forth in this Agreement.

     

    14.  Effect
      of Breach.
      Except
      as otherwise provided herein, the parties agree that the breach by any party
      of
      any provision of this Agreement shall not impair the validity of this Agreement
      and that the remedies for any such breach shall be limited to damages against
      the breaching party for such breach or specific performance of the obligations
      hereunder of the breaching party. In addition, because an award of money damages
      (whether pursuant to the foregoing sentence or otherwise) would be inadequate
      for any breach of this Agreement by the parties and any such breach would cause
      the non-breaching party irreparable harm, the parties also agree that, in the
      event of any breach or threatened breach of this Agreement, the non-breaching
      party will also be entitled, without the requirement of posting a bond or other
      security, to equitable relief, including injunctive relief and specific
      performance. Such remedies will not be the exclusive remedies for any breach
      of
      this Agreement but will be in addition to all other remedies available at law
      or
      equity to the non-breaching party.

     

    15.  Colorado
      Law.
      Colorado law shall govern the interpretation of this Agreement.

     

    16.  Counterparts.
      This
      Agreement may be executed in several counterparts and when so executed shall
      constitute one agreement binding on all parties, notwithstanding that all of
      the
      parties are not signatories to the original or the same
      counterpart.

     

    The
      parties have executed this Agreement as of the Effective Date.

     

    

     

    _____________________________________

    W.
      Reed
      Williams 

    

     

    

     

    FRONTIER
      OIL CORPORATION

    

    

    By:
      ___________________________________

    Title:
      ___________________________________Blank document-portrait

Exhibit 10.1

AMENDMENT TO 

LOAN AND MERGER OPTION AGREEMENT

THIS AMENDMENT TO LOAN AND MERGER OPTION AGREEMENT (the “Amendment”) is made and entered into effective as of March 9, 2006, by and among STEN Acquisition Corporation, a Minnesota corporation (the “Lender”), Site Equities International, Inc., a Nevada corporation (the “Borrower”) and Paycenters, LLC, a Nevada limited liability company (“Paycenters”).  The Lender, Borrower and Paycenters are each referred to herein as a “Party” or, collectively, as the “Parties”.  

RECITALS

WHEREAS, the Parties entered into a certain Loan and Merger Option Agreement dated effective as of November 22, 2005 (the “Original Agreement”), pursuant to which the Lender has loaned certain amounts to the Borrower and has received an option to acquire Borrower and Paycenters; and

WHEREAS, the Parties desire to amend the Original Agreement to set forth terms relating to the distribution of the remaining portion of the Loan and receipt by Borrower of additional funding. 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties mutually covenant and agree as follows:

1.

Section 2.01 shall be deleted from the Original Agreement and replaced in its entirety with the following:

“Section 2.01 Loan.  The Lender agrees, on the terms and subject to the conditions hereinafter set forth, to make a loan (the “Loan”) to the Borrower in the amount of Two Million Dollars ($ 2,000,000.00).  The Loan shall be disbursed to the Borrower in the following separate installments (each, an “Installment”): 

(1)

$800,000.00 of the Loan shall be disbursed by Lender to Borrower following execution of this Agreement and in accordance with Section 2.05 (the “Initial Installment”);

(2)

$100,000.00 of the Loan shall be disbursed by Lender to Borrower following the Initial Installment, but prior to the Third Installment, and in accordance with Section 2.05 of this Agreement (the “Second Installment”); 

(3)

$100,000.00 of the Loan shall be disbursed by Lender to Borrower following the Second Installment and in accordance with Section 2.05 of this Agreement (the “Third Installment”);

1

(4)

$500,000 of the Loan shall be disbursed by Lender to Borrower following the Third Installment and in accordance with Section 2.05 of this Agreement (the “Fourth Installment”); and 

(5)

$500,000 of the Loan shall be disbursed by Lender to Borrower following the Fourth Installment and in accordance with Section 2.05 of this Agreement (the “Fifth Installment”).”

2.

The phrase “270 calendar days following the disbursement of proceeds under the final Installment of the Loan (the ‘Merger Option Expiration Date’)” shall be deleted from Section 3.02 of the Original Agreement and replaced with the phrase “Merger Option Expiration Date (defined below).”

3.

The following shall be added as the second sentence of Section 3.02 of the Original Agreement:

“The term ‘Merger Option Expiration Date’ shall mean the earlier of the following: (1) the date occurring 270 days following the disbursement of Loan proceeds under the Fifth Installment, or (2) the date occurring 90 days after Borrower delivers to Lender written evidence, acceptable to Lender, that immediately after the six-month period following the Fifth Installment, Paycenters will have installed and will be operating 50 Kiosks, none of which were installed as of the date of the First Installment, and having an average monthly revenue of at least $1,500 per Kiosk.”

4.

The phrase “, no party shall be obligated to proceed with the Merger and the Merger will not be consummated” in Section 3.06 shall be deleted and replaced with the following “; no party shall be obligated to proceed with the Merger, the Merger will not be consummated and the Borrower may pursue other sources of debt or equity funding.”  

5.

Section 4.04 shall be renumbered as Section 4.06. 

6.

Sections 4.02 and 4.03 shall be deleted and replaced in their entirety with the following: 

“Section 4.02.

     Conditions Precedent to Second Installment.  The obligations of the Lender to disburse funds under the Second Installment are subject to disbursement by Lender of the funds under the Initial Installment and satisfaction of the conditions precedent set forth in Section 4.06. 

2

Section 4.03.     Conditions Precedent to Third Installment.  The obligations of the Lender to disburse funds under the Third Installment are subject to satisfaction of the following conditions precedent:

(1)

Borrower shall have delivered to Lender written evidence, acceptable to Lender and its counsel, of a full release of all tax liens of Borrower and the Subsidiaries and satisfaction of all unpaid taxes, interest, penalties and other amounts owed in connection with such tax liens;

(2)

Borrower shall have delivered to Lender a statement setting forth the actual use of the proceeds from the Initial Installment and Second Installment in relation to matters set forth on Schedule 2.06;

 

Section 4.04.

Conditions Precedent to Fourth Installment.  The obligations of Lender to disburse funds under the Fourth Installment are subject to satisfaction of the following conditions precedent: 

(1)

all funds under the Third Installment shall have been disbursed to Borrower; 

(2)

within sixty days following the Third Installment, Borrower shall have delivered to Lender an executed agreement or agreements (the “New Investor Agreement”), each acceptable to Lender and its counsel in their discretion, between the Borrower and a third party investor (the “New Investor”), under which the New Investor will:

(a) loan the sum of $500,000 to the Borrower concurrent with the Fourth Installment;

(b) loan the sum of $500,000 to the Borrower concurrent with the Fifth Installment;

(c) receive a security interest in the Borrower’s assets, as collateral for Borrower’s obligations under the New Investor Agreement, on similar terms as granted to Lender under the Security Agreement; 

(d) upon exercise by Lender of the Merger Option, terminate Borrower’s obligations under the New Investor Agreement in exchange for shares of Lender’s common stock pursuant to the Agreement and Plan of Merger;

(3) New Investor and Lender shall have entered into an intercreditor agreement describing their relative rights with respect to their respective security interests in the Borrower’s assets; 

(4)  New Investor shall have loaned to Borrower the sum of $500,000 pursuant to the New Investor Agreement;

(5)  Borrower shall have provided to Lender a statement setting forth the actual use of the proceeds received under the Third Installment in relation to matters set forth on Schedule 2.06; and

(6)  all conditions set forth in Section 4.06 shall have been satisfied. 

Section 4.05

Conditions Precedent to the Fifth Installment.  The obligations of Lender to disburse funds under the Fifth Installment are subject to satisfaction of the following conditions precedent:

(1) Lender shall have received from Borrower full and complete copies of the consolidated balance sheets of Borrower and the Subsidiaries as of March 31, 2003, March 31, 2004 and March 31, 2005 and the related statements of income and retained earnings of the Borrower and Subsidiaries for the fiscal years then ended, and the accompanying footnotes, together with the opinions thereon of independent certified public accountants, all of which shall be acceptable to Lender;

(2) Lender shall have received from Borrower a statement as to the actual use of the proceeds under the Fourth Installment in relation to matters set forth on Schedule 2.06;

(3) Lender shall have received from the Borrower all of the following within the six-month period immediately following final disbursement of funds by Lender to Borrower under the Fourth Installment:

(a) 40 Kiosks having a monthly average revenue of at least $1,200.00 per Kiosk; and

(b) Written evidence that Paycenters has completed development of the check cashing method and procedure (“Check Cashing”) and has began operating Check Cashing in at least 10 of the Kiosks.”

7.  The following shall be added as Section 4.07 to the Original Agreement:  

“Section 4.07.

Failure of a Condition Precedent.   In the event that one or more conditions precedent to an Installment do not occur within the period required under this Article IV, Lender shall have no obligation to provide to Borrower any portion of the Loan under such Installment or any subsequent Installment and the Merger Option shall terminate.”  

8. Section 6.09 of the Original Agreement shall be deleted and replaced in its entirety with the following:

“Section 6.09. 

Liens.  Not create, incur, assume, or suffer to exist, without prior written approval of Lender, any Lien upon or with respect to any of its properties, now owned or hereafter acquired, other than: (i) the Liens created in favor of the New Investor under the New Investor Agreement and subject to the intercreditor agreement described under Section 4.04(3), (ii) Liens created in favor of the Lender by the Security Agreement and Pledge Agreement, and (iii) the Liens set forth on Schedule 5.05 to this Agreement, provided, however that the liens set forth on items 2 and 4 of Schedule 5.05 shall be paid with the proceeds of the Initial Installment.”

9. The following shall be added to end of the sentence in Section 7.01(3): “or under the New Investor Agreement or any notes, agreements or documents delivered in connection therewith”;

10. Paragraph 4 of Exhibit B to the Original Agreement shall be deleted and replaced in its entirety with the following:

“4.

As Merger consideration and effective upon the Merger Effective Date, the Note shall be cancelled and Borrower’s obligations under the New Investor Agreement shall be cancelled and the Borrower’s shareholders immediately prior to the Merger  and the New Investor will receive an aggregate number of shares of STEN common stock, such that: (i) STEN’s shareholders immediately prior to the Merger will own 50.25% of the common stock outstanding of STEN after the Merger, (ii) Borrower’s Shareholders will own 39.75% of the common stock outstanding of STEN after the Merger, and (iii) New Investor will own 10% of the common stock of STEN after the Merger.  Such percentages will be determined on a fully diluted basis, and are subject to adjustment as set forth in Section 5, below.”

11. The portion of Paragraph 5 of Exhibit B to the Original Agreement following the second sentence thereof, shall be deleted and replaced in its entirety with the following:

“For each $1,000,000 in excess of the Base Contribution Amount that is paid by STEN to the merged entity, the aggregate percentage ownership of STEN owned by Borrower’s Shareholders and New Investor immediately after the Merger will decrease by 125 basis points. (For example, if STEN contributes an additional $15,000,000 to the merged entity, the aggregate ownership of Borrower’s Shareholders and New Investor in STEN immediately following the Merger will be reduced from 49.75% to 31%). Any amount paid to the Lender shall not be paid to Borrower’s Shareholders or New Investor as merger consideration, but shall be retained by the Lender as working capital.”

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12. The Parties to this Amendment hereby agree that they each waive any Event of Default, or other default or breach of the Original Agreement arising out of the timing of payments under Installments made by Lender to Borrower prior to the date of this Amendment.  Borrower and Paycenters agree to indemnify and hold the Lender and its officers, directors, employees, shareholders, affiliates, successors and assigns harmless from and against any and all fines, suits, actions, proceedings, claims, losses or expenses arising out of or in connection with their respective waiver of an Event of Default or other default or breach of the Original Agreement as provided in this paragraph.  The Lender agrees to indemnify and hold Borrower and Paycenters and its officers, directors, employees, shareholders, affiliates, successors and assigns harmless from and against any and all fines, suits, actions, proceedings, claims, losses or expenses arising out of or in connection with Lender’s waiver of an Event of Default or any other default or breach of the Original Agreement as provided in this paragraph. 

13. Except as expressly amended by this Amendment, all of the terms of the Original Agreement shall remain unchanged and in full force and effect. 

14. Any capitalized term not defined in this Amendment shall have the meaning set forth in the Original Agreement.

15. This Amendment may be executed in any number of counterparts, each of which shall be an original, but all of which shall constitute one in the same instrument.  Any executed counterpart of this Amendment delivered by facsimile or other electronic transmission to another Party will constitute an original counterpart to this Amendment. 

[signature page follows]

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

LENDER:

STEN ACQUISITION CORPORATION

By:

Its:

BORROWER:

SITE EQUITIES INTERNATIONAL, INC.

By:

Its:

PAYCENTERS:

PAYCENTERS, LLC

By:

Its:

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