The Collaborative International Dictionary of English v.0.48:

Dispense \Dis*pense"\, v. t. [imp. & p. p. Dispensed; p. pr. &
   vb. n. Dispensing.] [F. dispenser, L. dispensare, intens.
   of dispendere. See Dispend.]
   1. To deal out in portions; to distribute; to give; as, the
      steward dispenses provisions according directions; Nature
      dispenses her bounties; to dispense medicines.
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            He is delighted to dispense a share of it to all the
            company.                              --Sir W.
                                                  Scott.
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   2. To apply, as laws to particular cases; to administer; to
      execute; to manage; to direct.
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            While you dispense the laws, and guide the state.
                                                  --Dryden.
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   3. To pay for; to atone for. [Obs.]
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            His sin was dispensed
            With gold, whereof it was compensed.  --Gower.
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   4. To exempt; to excuse; to absolve; -- with from.
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            It was resolved that all members of the House who
            held commissions, should be dispensed from
            parliamentary attendance.             --Macaulay.
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            He appeared to think himself born to be supported by
            others, and dispensed from all necessity of
            providing for himself.                --Johnson.
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The Collaborative International Dictionary of English v.0.48:

Dispense \Dis*pense"\, n. [Cf. F. dispense dispensation. See
   Dispense, v. t.]
   Dispensation; exemption. [Obs.]
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The Collaborative International Dictionary of English v.0.48:

Dispense \Dis*pense"\, n. [OF. despense, F. d['e]pense.]
   Expense; profusion; outlay. [Obs.]
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         It was a vault built for great dispense. --Spenser.
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The Collaborative International Dictionary of English v.0.48:

Dispense \Dis*pense"\, v. i.
   1. To compensate; to make up; to make amends. [Obs.]
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            One loving hour
            For many years of sorrow can dispense. --Spenser.
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   2. To give dispensation.
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            He [the pope] can also dispense in all matters of
            ecclesiastical law.                   --Addis &
                                                  Arnold (Cath.
                                                  Dict. )
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   To dispense with.
      (a) To permit the neglect or omission of, as a form, a
          ceremony, an oath; to suspend the operation of, as a
          law; to give up, release, or do without, as services,
          attention, etc.; to forego; to part with.
      (b) To allow by dispensation; to excuse; to exempt; to
          grant dispensation to or for. [Obs.] "Conniving and
          dispensing with open and common adultery." --Milton.
      (c) To break or go back from, as one's word. [Obs.]
          --Richardson.
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WordNet (r) 3.0 (2006):

dispense
    v 1: administer or bestow, as in small portions; "administer
         critical remarks to everyone present"; "dole out some
         money"; "shell out pocket money for the children"; "deal a
         blow to someone"; "the machine dispenses soft drinks" [syn:
         distribute, administer, mete out, deal, parcel
         out, lot, dispense, shell out, deal out, dish
         out, allot, dole out]
    2: grant a dispensation; grant an exemption; "I was dispensed
       from this terrible task"
    3: give or apply (medications) [syn: administer, dispense]