~~SECURITIES~~ July ~~AND~~22, ~~EXCHANGE COMMISSION~~2009

~~Washington,~~Dear ~~D.C.~~STEN ~~20549~~Note Holder:

~~FORM~~ I ~~8-K~~am writing to continue our communication regarding STEN Corporation (“STEN”) and the status of the unsecured subordinated notes. As you read this letter you will find that our status is largely unchanged from the earlier reports.

~~CURRENT REPORT~~Overall

~~Pursuant~~As reported earlier, STEN is operating under a “survival plan” that continues to ~~Section 13~~be ormodified. I 15would describe our current status as stable. The amount due to our Senior Lender was reduced by approximately $350,000 during the quarter to approximately $7.5 million at June 30, 2009. STEN continues to be constrained in terms of available liquidity. Any available liquidity is controlled by our senior lender. While we are working with our senior lender—Valens, U.S. SPV I, LLC (dValens), ofthe capital for payments to subordinated note holders is not available.

~~the~~We ~~Securities~~have ~~Exchange~~reduced ~~Act~~our administrative costs and are operating at minimal levels. We completed the anticipated sale of ~~1934~~our Texas manufacturing assets in May, 2009, and the net proceeds from the asset sale were used to reduce our senior debt.

~~Date~~Our ofCurrent ~~Report (Date of earliest event reported): May 22, 2009~~Status

On January 2, 2009, STEN ~~CORPORATION~~discontinued its offering of renewable unsecured subordinated notes and suspended note repayments. All of the assets of STEN and its subsidiaries, are pledged as collateral on an $8.85 million senior credit facility with Valens. As was described fully in the offering prospectus, Valens has a right of repayment that is superior to any repayment rights of the note holders. Non-payment of any note is an event of default under our agreement with Valens, giving Valens the right to accelerate its entire note and foreclose on all of the assets of STEN.

~~(Exact~~Going ~~name of registrant as specified in its charter)~~Forward

Minnesota		000-18785		41-1391803
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer (ID Number)

Valens has not asserted its right to accelerate its debt or to foreclose on our assets. While there is no assurance Valens will not conclude to exercise these rights, we are working cooperatively with Valens to implement a business plan that includes the repayment of the principal amount of notes. Given Valens’ rights under the senior credit facility, any plan we develop must have the support of Valens to be viable.

~~10275~~We ~~Wayzata~~continue ~~Blvd. Suite~~to ~~310,~~believe ~~Minnetonka~~our auto finance business is a viable enterprise, ~~Minnesota~~and ~~55305~~we are working to enhance the viability of this enterprise as means for repaying the notes.

~~(Address~~What ofDoes ~~principal~~this ~~executive~~Mean ~~offices)~~to ~~(Zip~~the ~~Code)~~Note Holder?

~~Registrant’s~~While ~~telephone~~there ~~number~~are many variables, ~~including~~our ~~area~~current ~~code~~view ~~(952) 545-2776~~is that assuming the overall economic conditions continue to improve; we will attempt to refinance the senior debt later this year. We continue to see the suspension of interest and principal payments lasting into 2010. We recognize that a feasible plan must be both reasonable and achievable. We will continue regular communication as to the status of the business and as to information related to when the payment of interest and principal will resume.

~~Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:~~Conclusion

¨As ~~Written~~was ~~communications~~indicated ~~pursuant~~in earlier correspondence to ~~Rule~~note ~~425~~holders, ~~under~~we would like to be more specific as to the ~~Securities~~timing ~~Act~~of ~~(17~~any ~~CFR~~payments ~~230~~to note holders.~~425)~~ While ¨the ~~Soliciting~~timing ~~material~~is ~~pursuant~~uncertain, toI ~~Rule~~assure ~~14a-12~~you ~~under~~that ~~the~~we ~~Exchange~~are ~~Act~~working ~~(17~~toward ~~CFR~~the ~~240.14a-12)~~goal ¨of ~~Pre-commencement~~making ~~communications~~payments. We ~~pursuant~~continue to ~~Rule~~focus ~~14d-2(b)~~on ~~under~~ the ~~Exchange~~realization ~~Act~~of ~~(17~~the ~~CFR~~value ~~240.14d-2(b))~~of ¨our ~~Pre-commencement~~installment ~~communications~~notes ~~pursuant~~receivable toportfolio ~~Rule~~as ~~13e-4(c)~~a ~~under~~means ~~the~~of ~~Exchange~~supporting ~~Act~~eventual ~~(17~~payments ~~CFR~~to ~~240~~the note holders.~~13e-4(c))~~

~~Items~~I also understand, having spoken with many of you, that there is a strong desire for a resolution sooner rather than later. I also appreciate the fact that the current economic crisis has resulted in greater needs on the part of many note holders. As we have reported, it will take considerable time before the timing of payments of any payments to note holders becomes clear. We expect to continue to communicate with you regularly. If you have any questions please feel free to call me, recognizing I cannot disclose any information other than the information that has been disseminated to all of the note holders.

~~Items~~Sincerely, ~~under Sections 1 and 3-8 are not applicable and therefore omitted.~~

~~ITEM~~Kenneth 2W.01 Brimmer

~~COMPLETION~~CEO ~~OF ACQUISITION OR DISPOSITION OF ASSETS.~~

~~On May 22, 2009, STEN Corporation (the “Company”) and its wholly~~952-owned subsidiary, Stencor, Inc. (“Old Stencor”) completed the sale to Brimmer Company, LLC (the “Buyer”) of assets relating to its contract manufacturing business located in Jacksonville, Texas (the “Business”). Brimmer Company, LLC is owned by Kenneth W. Brimmer, the Company’s Chief Executive Officer and former member of the company’s board of directors. The net book value of the assets sold represents less than 10% of the Company’s total assets. The asset sale was made pursuant to an Asset Purchase Agreement dated November 26, 2008 and as amended, on May 18, 2009, by and among the Company, and attached hereto as Exhibits 10.1 and 10.2, respectively. The consideration for the sale was determined through negotiations between the independent directors of Company and the Buyer and was reviewed by and consented to by with LV Administrative Services, Inc. (the “Agent”) as administrative and collateral agent for Valens U.S. SPV I, LLC (the “Lender”), the Company’s senior secured lender. The consent of the Agent and Lender is hereby attached as Exhibit 10.4. The transaction was reviewed by an Independent Committee of the Company’s Board of Directors (“the Special Committee”). The Special Committee engaged an independent broker to evaluate the assets and to advertise the sale of the assets soliciting competing offers during a forty545-five day “go-shop” period. Several potential bidders were identified during this go-shop process by the independent broker, Two letters of “interest” were submitted during this process, however, no formal offers were made to purchase the assets and based upon discussions regarding the value of the assets with the independent broker, and faced with the company’s immediate need to pay down debt to meet its current obligations including interest payable to the Lender, the Special Committee concluded the transaction to be fair and in the best interest of the shareholders.2776

The purchase price for the property and equipment assets was $1,095,986 and the terms of the release of the Lender’s secured collateral interest resulted in a pay down of the Company’s senior debt of $500,000 from cash paid at closing and the repayment of senior mortgage covering the assets sold of approximately $465,000. In addition, in conjunction with the transfer of working capital, the Buyer agreed to assume certain liabilities associated with the Business, subject to adjustment as required by the Working Capital Agreement, dated May 18, 2009 attached hereto as Exhibit 10.3.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

Exhibit Number	Description
10.1	Asset Purchase Agreement dated November 26, 2008 between STEN Corporation and its wholly owned subsidiary Stencor and Brimmer Company, LLC
10.2	Amendment to the Asset Purchase Agreement dated May 18, 2009 between STEN Corporation and Brimmer Company, LLC
10.3	Working Capital Agreement dated May 18, 2009 between STEN Corporation and Brimmer Company, LLC
10.4	Consent and Release dated May 2009 between STEN Corporation and LV ADMINISTRATIVE SERVICES, INC., as administrative and collateral agent for VALENS U.S. SPV I, LLC.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

STEN CORPORATION By: /s/ Kenneth W. Brimmer Kenneth W. Brimmer Chief Executive Officer

Dated: June 2, 2009

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