Document:

exv10w2

 

Exhibit 10.2

Employment Agreement between Uroplasty, Inc. and Daniel G. Holman dated January 1, 2005

EMPLOYMENT AND CONSULTING AGREEMENT

     THIS EMPLOYMENT AND CONSULTING AGREEMENT (the “Agreement”) is made and entered into by and
between Uroplasty, Inc., a Minnesota corporation (“the Company”), and Daniel G. Holman (the
“Executive”) effective as of the 1st day of January, 2005.

R E C I T A L S :

     WHEREAS, Uroplasty manufactures and currently markets outside of the United States a family of
injectable implant products used for soft-tissue augmentation for specific indications in urology,
urogynecology, colon and rectal, otolaryngology and plastic surgery markets; and

     WHEREAS, the Company and the Executive desire to set forth in this Agreement the terms under
which Executive will serve as Chairman of the Company as an employee during the first year, and as
a part-time consultant to the Company during the second year, of this Agreement;

     NOW, THEREFORE, the parties hereto agree as follows:

1. Employment and Consulting; Duties. During the first year of the Term (as defined
below), the Company hereby agrees to employ the Executive, and the Executive hereby accepts the
Company’s offer to serve, as Chairman of the Company. As such, the Executive shall assist the new
President and Chief Executive Officer with strategic planning, senior management organizational
issues, board leadership and such other matters as reasonably requested. The Executive agrees to
devote the Executive’s full business time, attention and efforts to promote and further the
business of the Company. The Executive will faithfully adhere to, execute and fulfill all policies
established by the Company’s President and Chief Executive Officer and the Board of Directors.

     During the second year of the Term, the Executive agrees to serve as a part-time consultant to
the Company with the continuing title of Chairman. In such capacity, the Executive will not be
required to devote more than 10 hours per week to such services as the Company may reasonably
request to promote and further the business of the Company. In the Executive’s consulting
capacity, the Executive will report directly to the Company’s President and Chief Executive
Officer.

     The Executive also agrees to continue service as a director of the Company until the
Executive’s successor is duly elected and qualified or until the Executive’s earlier resignation,
removal or death.

     The Executive will not, during the Term hereunder, be engaged in any other business activity
pursued for gain, profit or other pecuniary advantage if such activity interferes with the
Executive’s duties and responsibilities hereunder. The foregoing limitations will not be construed
to prohibit the Executive from making personal investments in such form or manner as will neither
require the Executive’s services in the operation or affairs of the companies or enterprises in
which such investments are made nor violate the terms of Section 4 hereof.

2. Employment and Consulting Compensation. For all services rendered by the Executive as
either an employee or consultant on and after the date hereof, the Company will compensate the
Executive as follows:

     (a) Employee Base Salary. Commencing on the date hereof, and during the first year of
the Term, the base salary payable to the Executive shall be $239,000 per year, payable on a regular
basis in accordance with the Company’s standard payroll procedures but not less than semi-monthly.

     (b) Consulting Fees. During the second year of the Term, the consulting fee payable
to the Executive shall be $100,000 per year, payable in monthly increments on the first day of each
month. The Company will not withhold income taxes from the consulting payments, and the Executive
will be solely responsible for payment of all relevant income taxes.

     (c) Special Excise Tax Reimbursement Bonus. In the event that the vesting of stock
options upon a “Change of Control” as described in Section 3(b) below results in the imposition of
a federal excise tax on the Executive pursuant to Section 4999 of the Internal Revenue Code of
1986, as amended (the “Code”), the Company will reimburse the Executive (the “Excise Tax Bonus”)
for the amount of such federal excise tax (but not any interest or penalties thereon) paid by the

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Executive. The Excise Tax Bonus is payable within 15 days after the Company’s receipt of
written evidence from the Executive as to the payment of the federal excise tax. However, no
Excise Tax Bonus is payable unless and until the Company raises a minimum of $5.0 million from the
sale of its equity securities after the date of this Agreement.

     (d) Executive Perquisites, Benefits and Other Compensation. Commencing on the date
hereof, the Executive shall be entitled to receive additional employment and consulting benefits
and compensation from the Company in such form and to such extent as specified below:

          (i) Payment of premiums for coverage for the Executive and the Executive’s dependent family
members under health, hospitalization, disability, dental, life and other insurance plans that the
Company may have in effect from time to time, at the levels, and with the co-payments, as
established by the Company under such plans.

          (ii) If, despite the Executive’s consulting work during the second year of the Term, the
cessation of the Executive’s employment at the end of the first year of the Term terminates the
Executive’s eligibility under the Company’s health insurance plans, the Executive and his or her
eligible family members shall, at the Company’s expense (which may be by direct payment or
reimbursement of premium payments made by the Executive), be entitled to health insurance
continuation coverage (“COBRA Coverage”) pursuant to Section 4980B of the Code, Sections 601-608 of
the Employee Retirement Income Security Act of 1974, as amended and under any other applicable law,
to the extent required by such laws. However, if the Executive becomes re-employed with another
employer and is eligible to receive any health insurance benefits under another employer’s plans,
the Company’s obligations under this Section 3(b) shall terminate.

          (iii) Reimbursement for all business travel and other out-of-pocket expenses reasonably
incurred by the Executive in the performance of the Executive’s services pursuant to this
Agreement. All reimbursable expenses shall be appropriately documented in reasonable detail by the
Executive upon submission of any request for reimbursement, and in a format and manner consistent
with the Company’s expense reporting policy.

          (iv) Paid vacation during the first year of the Term in accordance with the Company’s policy
for the Executive in effect immediately prior to the date hereof. The Executive is responsible for
allocating vacation time out of the Executive’s own time during the second year of the Term and
will receive no paid vacation time during such year.

3. Stock Options. The Company hereby grants to the Executive options (the “Options”), to
acquire 100,000 shares of the Company’s Common Stock, par value $.01 per share (the “Common
Stock”), at an exercise price per share (the “Exercise Price”) equal to the average of the closing
prices of the Company’s Common Stock on the OTC Bulletin Board as reported by bigcharts.com for the
30 trading days immediately preceding the date that the Company publicly files a report on Form 8-K
announcing the signing of this Agreement and the Executive’s employment hereunder. The Options are
not pursuant to the Company’s 1995, 1997 or 2002 Stock Option Plans. The Options will not be
treated as “incentive options” within the meaning of Section 422 of the Code.

     (a) Anti-Dilution Adjustments. The Options are subject to adjustment as provided in
this subsection (a).

          (i) Exercise Price Adjustments. The Exercise Price shall be adjusted from time to
time such that in case the Company shall hereafter:

               (A) pay any dividends on any class of stock of the Company payable in Common Stock or
securities convertible into Common Stock;

               (B) subdivide its then outstanding shares of Common Stock into a greater number of shares; or

               (C) combine outstanding shares of Common Stock, by reclassification or otherwise;

then, in any such event, the Exercise Price in effect immediately prior to such event shall (until
adjusted again pursuant hereto) be adjusted immediately after such event to a price (calculated to
the nearest full cent) determined by dividing (A) the number of shares of Common Stock outstanding
immediately prior to such event, multiplied by the then existing Exercise Price, by (B) the total
number of shares of Common Stock outstanding immediately after such event (including in each case
the maximum number of shares of Common Stock issuable in respect of any securities convertible into
Common Stock), and the resulting quotient shall be the adjusted Exercise Price per share. An
adjustment made pursuant to this subsection shall become effective immediately after the record
date in the case of a dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision, combination or reclassification. If, as a result of
an

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adjustment made pursuant to this subsection, the Executive shall become entitled to receive shares
of two or more classes of capital stock or shares of Common Stock and other capital stock of the
Company, the Board of Directors (whose determination shall be conclusive) shall determine the
allocation of the adjusted Exercise Price between or among shares of such classes of capital stock
or shares of Common Stock and other capital stock. All calculations under this subsection shall be
made to the nearest cent or to the nearest 1/100 of a share, as the case may be. In the event that
at any time as a result of an adjustment made pursuant to this subsection, the Executive shall
become entitled to receive any shares of the Company other than shares of Common Stock, thereafter
the Exercise Price of such other shares so receivable upon exercise of any Options shall be subject
to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to Common Stock contained in this subsection.

          (ii) Share Adjustments. Upon each adjustment of the Exercise Price pursuant to
subsection (a)(i) above, the Executive shall thereafter (until another such adjustment) be entitled
to purchase at the adjusted Exercise Price the number of shares, calculated to the nearest full
share, obtained by multiplying the number of shares covered by the Options (as adjusted as a result
of all adjustments in the Exercise Price in effect prior to such adjustment) by the Exercise Price
in effect prior to such adjustment and dividing the product so obtained by the adjusted Exercise
Price.

          (iii) Reorganization Events. In case of any consolidation or merger to which the
Company is a party other than a merger or consolidation in which the Company is the continuing
corporation, or in case of any sale or conveyance to another corporation of the property of the
Company as an entirety or substantially as an entirety, or in the case of any statutory exchange of
securities with another corporation (including any exchange effected in connection with a merger of
a third corporation into the Company), there shall be no adjustment under subsection (a)(i) above;
but the Executive shall have the right thereafter to convert the Options into the kind and amount
of shares of stock and other securities and property which the Executive would have owned or have
been entitled to receive immediately after such consolidation, merger, statutory exchange, sale or
conveyance had the Options been converted immediately prior to the effective date of such
consolidation, merger, statutory exchange, sale or conveyance and, in any such case, if necessary,
appropriate adjustment shall be made in the application of the provisions set forth in this
subsection with respect to the rights and interests thereafter of the Executive, to the end that
the provisions set forth in this subsection shall thereafter correspondingly be made applicable, as
nearly as may reasonably be, in relation to any shares of stock and other securities and property
thereafter deliverable on the exercise of the Options. The provisions of this subsection shall
similarly apply to successive consolidations, mergers, statutory exchanges, sales or conveyances.

          (iv) Notice of Adjustments. Upon any adjustment of the Exercise Price, then and in
each such case, the Company shall give written notice thereof, by first-class mail, postage
prepaid, addressed to the Executive, which notice shall state the Exercise Price resulting from
such adjustment and the increase or decrease, if any, in the number of shares of Common Stock
purchasable at such price upon the exercise of the Options, setting forth in reasonable detail the
method of calculation and the facts upon which such calculation is based.

     (b) Vesting; Change of Control. Notwithstanding anything else, the Executive may
exercise the Options only to the extent that the Executive is vested in them. Vested Options will
be exercisable for ten (10) years from the date hereof. The Options will vest in an installment of
50% on the date of this Agreement and in installments of 25% on each of the first and second
anniversaries of the date hereof; provided, however, that the Executive must continue in the
employ of, as a consultant to or as a member of the Board of Directors of, the Company through the
applicable anniversary date in order to vest in the Options for such anniversary date. Despite the
foregoing, the Options will fully vest upon a “Change of Control,” which will be deemed to occur as
of the first day after the date hereof that any one or more of the following conditions is
satisfied (the “Change of Control Date”):

          (i) any person or entity, or group of persons or entities acting together, other than the
Company or an employee benefit plan of the Company, acquires directly or indirectly the beneficial
ownership (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as amended)
of any voting security of the Company and, immediately after such acquisition, such person, entity
or group is, directly or indirectly, the beneficial owner of voting securities representing a
majority of the total voting power of all of the then-outstanding voting securities of the Company
and has a larger percentage of voting securities of the Company than any other person, entity or
group holding voting securities of the Company;

          (ii) the following individuals no longer constitute a majority of the members of the Board:
(A) Sam B. Humphries, Joel R. Pitlor, Thomas E. Jamison, R. Patrick Maxwell and the Executive (the
“Original Directors”); (B) the individuals who thereafter are elected to the Company’s Board of
Directors and whose election, or nomination for election, to the Board of Directors was approved by
a vote of at least a majority of the Original Directors then still in office (such directors
becoming “Additional Original Directors” immediately following their election); and (C) the
individuals who are elected to the Board of Directors and whose election, or nomination for
election, to the Board of Directors was approved by a

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vote of at least a majority of the Original Directors and Additional Original Directors then
still in office (such directors also becoming “Additional Original Directors” immediately following
their election);

          (iii) the stockholders of the Company approve a merger, consolidation, recapitalization or
reorganization of the Company, or a reverse stock split of outstanding voting securities, other
than any such transaction which results in at least a majority of the total voting power
represented by the voting securities of the surviving entity outstanding immediately after such
transaction being beneficially owned by at least a majority of the holders of outstanding voting
securities of the Company immediately prior to the transaction, with the voting power of each such
continuing holder relative to other such continuing holders not substantially altered in the
transaction; or

          (iv) the stockholders of the Company approve a plan of complete liquidation of the Company or
an agreement for the sale or disposition by the Company of all or a substantial portion of the
Company’s assets (i.e., 50% or more of the total assets of the Company).

     However, no “Change in Control” will be deemed to have occurred with respect to Executive if
Executive is part of a purchasing group which consummates the Change in Control transaction. The
Executive will be deemed “part of a purchasing group” for purposes of the preceding sentence if the
Executive is an equity participant in the purchasing company or group except for (i) passive
ownership of less than three percent (3%) of the stock of the purchasing company or (ii) ownership
of an equity participation in the purchasing company or group which is otherwise not significant,
as determined prior to the Change in Control by a majority of the Original and Additional Original
Directors.

     (c) Payment of Exercise Price; Cashless Exercise. The Executive may exercise the
Options by cash payment (including by check or wire transfer). In the alternative, the Executive
may exercise the Options by instructing the Company to withhold from the shares of Common Stock
otherwise to be issued upon the exercise of the Options a number of whole or fractional shares of
Common Stock equal to the number of shares for which the Options are being exercised (including any
Options to be surrendered) multiplied by the Exercise Price per share, and then divided by the
“Market Price” (as defined below) of a share of Common Stock as of the close of business on the
date of exercise (a “Cashless Exercise”). The Company may condition the Cashless Exercise upon the
Executive’s payment of any required withholding taxes.

     The term “Market Price” with respect to shares of Common Stock of any class or series means
the last reported sale price or, if none, the average of the last reported closing bid and asked
prices on any national or regional securities exchange or quoted in the National Association of
Securities Dealers, Inc.’s Automated Quotations System (“Nasdaq”), or if not listed on a national
or regional securities exchange or quoted in Nasdaq, the closing price as reported by bigcharts.com
(or if this service is discontinued, such other reporting service acceptable to the Executive), or
if no quotations in such Common Stock are available, the fair market value of the shares as
determined in good faith by the Board of Directors of the Company.

     (d) Subscription Representations; Transfer Restrictions. The Executive understands
that the Options, and the shares of Common Stock issuable upon their exercise, are and will be
“restricted securities” within the meaning of the Securities Act of 1933, as amended (the “Act”).
Accordingly, even if the Executive is fully vested in the Options, the Executive may never be able
to resell the underlying shares for a profit, or at all. In any event, the Executive will be able
to resell or otherwise transfer the underlying shares only if the sale or other transfer is
registered under the Act and applicable state securities laws or there is an available exemption
from this registration. The Executive confirms that Executive can bear the loss of Executive’s
entire investment in the Company.

     The Executive agrees and acknowledges that (i) none of the Options may be sold, transferred,
pledged, assigned or otherwise alienated or hypothecated, other than by will or by the laws of
decent and distribution and then only to Executive’s spouse and/or children (or a trust for their
benefit) and (ii) the vested Options may be exercised during the Executive’s lifetime only by the
Executive or the Executive’s legal representative.

     (e) Lock-Up Agreement. The Executive agrees that, in the event of each future public
offering of the Company’s equity securities (an “Offering”), the Executive will agree to such
restrictions on the resale of any shares of the Company’s Common Stock (including the shares
underlying the Options) then beneficially owned by Executive as requested by the managing
underwriter or underwriters of the Offering; provided, however, that such restrictions run no
longer than the period of resale restriction imposed by such underwriters on the Company’s other
executive officers and directors. The Executive agrees not to sell or otherwise transfer
(including upon death) any of the shares underlying the Options, or any other shares beneficially
owned by the Executive, unless the purchaser or recipient agrees in writing to be bound by the
foregoing lock-up agreement.

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     (f) Stock Certificate Restrictions. The Executive acknowledges that the Company will
place a restrictive legend on any certificate representing the shares underlying the Options, and a
“stop transfer order” with any transfer agent of the Company’s securities, barring the sale or
other transfer of such shares without registration under the Act or an exemption therefrom, and
noting the existence of the lock-up agreement above.

     (g) Registration of Shares Underlying the Options. Notwithstanding the above
provisions, the Company shall use its best efforts, at its expense, to register the issuance or
resale of the shares underlying the Options on Form S-8 under the Act and under applicable state
securities laws, and to maintain the effectiveness of the Form S-8 registration statement during
the Term of this Agreement and for two years thereafter.

4. Non-Competition and Non-Solicitation.

     (a) Basic Terms. The Executive will not, during the period of the Executive’s
employment with, or consulting to, the Company and for a period of one (1) year immediately
following the termination of the Executive’s employment or consulting arrangements under this
Agreement, for any reason whatsoever, directly or indirectly, for the Executive or on behalf of or
in conjunction with any other person, persons, entity, company, business, partnership, corporation,
limited liability company or limited liability partnership of whatever nature:

     (i) engage, as an officer, director, shareholder, owner, partner, joint venturer or in a
managerial capacity, whether as an employee, independent contractor, consultant or advisor or as a
sales representative, in any business in competition with the Company anywhere worldwide (the
“Territory”);

     (ii) call upon or solicit any person who is at that time within the Territory an employee of
the Company for the purpose or with the intent of enticing such employee away from or out of the
employ of the Company;

     (iii) call upon or solicit any person or entity which is, at that time, or which has been,
within one (1) year prior to that time, a customer or prospective customer (such prospective status
being determined by whether the Company within the prior year solicited such person or entity’s
business) of the Company within the Territory for the purpose of selling products or services in
competition with the Company within the Territory; or

     (iv) call upon or solicit any prospective acquisition candidate, on the Executive’s own behalf
or on behalf of any competitor, which candidate was, to the Executive’s actual knowledge after due
inquiry, either called upon by the Company or for which the Company made an acquisition analysis,
for the purpose of acquiring such entity or its assets.

     Notwithstanding the above, the Executive may acquire as a passive investment not more than two
percent (2%) of the capital stock of a competing business, whose stock is traded on a national
securities exchange or over-the-counter.

     (b) Equitable Relief. Because of the difficulty of measuring economic losses to the
Company as a result of a breach of the foregoing covenants, and because of the immediate and
irreparable damage that could be caused to the Company for which it would have no other adequate
remedy, the Executive agrees that the foregoing covenants may be enforced by the Company in the
event of breach by the Executive by injunctions and restraining orders.

     (c) Severability and/or Reformation. The covenants in this Section 4 are severable
and separate, and the unenforceability of any specific covenant shall not affect the provisions of
any other covenant. Moreover, in the event any court of competent jurisdiction determines that the
scope, time or territorial restrictions set forth are unreasonable, then it is the intention of the
parties that such restrictions be enforced to the fullest extent which the court deems reasonable,
and the Agreement shall be reformed in accordance therewith.

     (d) Independently Enforceable. All of the covenants in this Section 4 shall be
construed as an agreement independent of any other provision in this Agreement, and the existence
of any claim or cause of action of the Executive against the Company, whether predicated on this
Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of such
covenants. It is specifically agreed that the period of one (1) year following termination of
employment stated at the beginning of this Section 4, during which the agreements and covenants of
the Executive made in this Section 4 shall be effective, shall be computed by excluding from such
computation any time during which the Executive is in violation of any provision of this Section 4.

5. Term; Termination; Rights on Termination.

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     Subject to earlier termination as provided below, the term of Executive’s employment under
this Agreement begins on the date hereof and continues for one (1) year. Thereafter, and subject
to earlier termination as provided below, the term of Executive’s consulting arrangement under this
Agreement continues for an additional year. As used herein, the word “Term” means the two-year
period covering the Executive’s employment and consulting services. This Agreement and the
Executive’s employment or consulting services may be terminated in any one of the following ways:

     (a) Death. The Executive’s death will immediately terminate this Agreement. The
Company will pay the Executive’s estate any of Executive’s accrued base salary or consulting fees
through the date of termination and reimbursement of expenses.

     (b) Disability. If, as a result of incapacity due to physical or mental illness or
injury, as reasonably determined by the Executive’s physician, the Executive is absent from the
Executive’s full-time duties hereunder during the first year of the Term, or the Executive’s
part-time duties hereunder during the second year of the Term, for four (4) consecutive months,
then thirty (30) days after receiving written notice (which notice may occur before or after the
end of such four (4) month period, but which will not be effective earlier than the last day of
such four (4) month period), the Company may terminate the Executive’s employment or consulting
services hereunder; provided that the Executive is unable to resume the Executive’s full-time or
part-time duties, as applicable, at the conclusion of such notice period. The Company will pay the
Executive any of the Executive’s accrued base salary or consulting fees through the date of
termination and reimbursement of expenses.

     (c) Good Cause. The Company may terminate this Agreement ten (10) days after
delivery of written notice to the Executive for “good cause,” which is (i) the Executive’s willful,
material and irreparable breach of this Agreement; (ii) the Executive’s gross negligence in the
performance or intentional nonperformance (continuing for thirty (30) days after receipt of written
notice of need to cure) of any of the Executive’s material duties and responsibilities under this
Agreement; (iii) the Executive’s willful dishonesty, fraud or misconduct with respect to the
business or affairs of the Company which materially and adversely affects the operations or
reputation of the Company; or (iv) the Executive’s conviction of a felony crime which materially
and adversely affects the operations or reputation of the Company. Upon any termination for good
cause, the Executive will receive no severance compensation other than base salary or consulting
fees accrued through the date of termination and reimbursement of expenses.

     (d) Without Good Cause. At any time, either the Executive or the Company may
terminate this Agreement and the Executive’s employment or consulting services, effective thirty
(30) days after written notice is provided to the other. If during the Term, (i) the Company
terminates the Executive’s employment or consulting services without good cause, (ii) the Executive
voluntarily terminates employment with the Company as a result of the Company’s imposition of
material and adverse changes, without the Executive’s consent, in the Executive’s principal duties
or (iii) the Executive voluntarily terminates employment after the Company moves its principal
executive offices more than 100 miles from its current location without the Executive’s consent,
the Executive will receive from the Company any base salary or consulting fees accrued through the
date of termination and reimbursement of expenses. In addition, in any of these three
circumstances, and conditioned on the Executive’s continuing compliance with the other provisions
of this Agreement, including Section 4 above, the Company shall pay the Executive, as severance
pay, an aggregate amount equal to the sum of the annual base salary and consulting fees payable
during the balance of the Term had this Agreement not been terminated. The severance payments will
be subject to customary tax withholdings, as applicable, and will be payable in equal monthly
installments on the first day of each month during the first year after the date of termination.

6. Return of Company Property. All records, designs, tradenames and trademarks, service
names and service marks, patents, business plans, financial statements, manuals, memoranda,
customer and other lists and other property delivered to or compiled by the Executive by or on
behalf of the Company, or its representatives, vendors or customers which pertain to the business
of the Company are and will remain the property of the Company, and be subject at all times to its
discretion and control. Likewise, all correspondence, reports, records, charts, advertising and
marketing materials and other similar data pertaining to the business, activities or future plans
of the Company which is collected by or in the possession of the Executive shall be delivered
promptly to the Company without request by it upon termination of the Executive’s employment or
consulting services.

7. Inventions. The Executive will disclose promptly to the Company any and all significant
conceptions and ideas for inventions, improvements and valuable discoveries, whether patentable or
not, which are conceived or made by the Executive, solely or jointly with another, during the
period of employment or consulting, and which are directly related to the business or activities of
the Company and which the Executive conceives as a result of the Executive’s employment by or
consulting with the Company. The Executive hereby assigns and agrees to assign all of the
Executive’s interests therein to the Company or its nominee. Whenever requested to do so by the
Company, the Executive will execute any and all

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applications, assignments or other instruments that the Company shall deem necessary to apply for
and obtain letters patent of the United States or any foreign country or to otherwise protect the
Company’s interest therein. Nothing in this Agreement shall apply to an invention for which no
equipment, supplies, facility or trade secret information of the Company was used and which was
developed entirely on the Executive’s own time and (i) which does not relate (a) directly to the
business of the Company or (b) to the Company’s actual or demonstrably anticipated research or
development or (ii) which does not result from any work performed by the Executive for the Company.

8. Trade Secrets. The Executive will not, other than as required by court order, during or
after employment with the Company, disclose the confidential terms of the Company’s relationships
or agreements with its significant vendors or customers or any other significant and material trade
secret of the Company to any person, firm, partnership, corporation or business for any reason or
purpose whatsoever.

9. Complete Agreement. This Agreement supersedes any other agreements or understandings,
written or oral, between the Company and the Executive, and the Executive has no oral
representations, understandings or agreements with the Company or any of its officers, directors,
employees or representatives covering the same subject matter as this Agreement. This document is
the final, complete and exclusive statement and expression of the agreement between the Company and
the Executive and of all the terms of this Agreement, and it cannot be varied, contradicted or
supplemented by evidence of any prior or contemporaneous oral or written agreements. This document
may not be later modified except by a written instrument signed by a duly authorized officer of the
Company and the Executive, and no term of this Agreement may be waived except by a written
instrument signed by the party waiving the benefit of such term.

10. Notice. Whenever any notice is required hereunder, it shall be given in writing
addressed as follows:

	 	 	 
	To the Company:

	 	Uroplasty, Inc.
	

	 	2718 Summer Street N.E.
	

	 	Minneapolis, Minnesota 55413
	

	 	Attention: Sam B. Humphries, President and Chief Executive Officer
	 
	 	 
	To the Executive:

	 	Daniel G. Holman
	

	 	15512 Boulder Pointe Road

	

	 	Eden Prairie, Minnesota 55347

Notice is given and effective three (3) days after the deposit in the U.S. mail of a writing
addressed as above and sent first class mail, certified, return receipt requested, or when actually
received. Either party may change the address for notice by notifying the other party of such
change in accordance with this Section 10.

11. Arbitration. Except as to matters of injunctive or equitable relief (over which the
parties agree that the federal and state courts located in Minneapolis, Minnesota will have
exclusive jurisdiction and are deemed to be of proper venue and convenience to the parties), any
unresolved dispute or controversy arising under or in connection with this Agreement will be
settled exclusively by arbitration, conducted before a panel of three (3) arbitrators in
Minneapolis, Minnesota, in accordance with the rules of the American Arbitration Association then
in effect. The arbitrators will not have the authority to add to, detract from or modify any
provision hereof nor to award punitive damages to any injured party. A decision by a majority of
the arbitration panel will be final and binding. Judgment may be entered on the arbitrators’ award
in any court having jurisdiction. The direct expense of any arbitration proceeding will be borne
by the Company.

12.Binding
Effect; Governing Law. This Agreement will inure to the benefit of
the successors or assigns of the Company. The Company agrees that, as a condition of any merger of
the Company into or with, or the sale of all or substantially all of the Company’s assets to,
another person, firm or entity, it will require the successor expressly to assume the Company’s
obligations hereunder. This Agreement shall be governed by and construed in accordance with the
laws of the State of Minnesota, exclusive of its conflicts of laws rules.

     IN WITNESS WHEREOF, the undersigned have hereunto affixed their signatures.

	 	 	 	 	 
	UROPLASTY, INC.	 	EXECUTIVE
	 
	 	 	 	 
	By
	 	 	 	 
	

	 	

	 	

	        R. Patrick Maxwell, Director	 	Daniel G. Holman

Page 7exv10w61

 

EXHIBIT 10.61

MUTUAL SETTLEMENT AND RELEASE AGREEMENT AND 

COVENANT NOT TO SUE

     This Mutual Settlement and Release and Covenant Not to Sue is made by and between Novo
Networks, Inc. (“NNI”) and the Novo Liquidating Trust as successor in interest to Novo Networks
Operating Corp., e.Volve Technology Group Inc, and AxisTel Communications, Inc. (the “Trust”) (NNI
and the Trust are collectively referred to as “Novo”) and Qwest Communications Corporation
(“Qwest”). Qwest and Novo are referred to herein individually as a “Party,” or collectively as the
“Parties.” The Parties Enter into this Mutual Settlement and Release Agreement and Covenant Not to
Sue (“Agreement”) on this 10th day of December, 2004.

RECITALS

     WHEREAS, disputes have arisen between the Parties regarding the provision and receipt of
telecommunication services, including but not limited to disputes concerning the Parties’ April 29,
1998 Switched Services Agreement, September 17, 1998 Carrier Services Agreement, and September 30,
1999 IRU Agreement as amended; and

     WHEREAS, on July 30, 2001, AxisTel Communications, Inc., Novo Networks Global Services, Inc..
Novo Networks International Services, Inc., e.Volve Technology Group, Inc., Novo Networks Operating
Corp., and on September 14, 2001 Novo Networks Metro Services, Inc., (collectively, “the Debtors”),
filed for Chapter 11 Bankruptcy protection in the United States Bankruptcy Court for the District
of Delaware (the “Bankruptcy Court”), Case No. 01-10005 (RJN) (the “Bankruptcy Proceeding”),

     WHEREAS, on March 13, 2002, the Bankruptcy Court confirmed the First Amended Joint Chapter 11
Plan filed by NNl and the Debtors (the “Plan”); and

     WHEREAS, Executive Sounding Board Associates, Inc. (“ESBA”) was originally appointed as the
Trustee of the Trust pursuant to the Plan and Rivershore Advisors, LLC subsequently replaced ESBA,
(the “Trustee”).

     WHEREAS, NNI and the Trust (as successor in interest to Novo Networks Operating Corp., e.Volve
Technology Group, Inc., and AxisTel Communications, Inc.) filed claims against Qwest in Novo
Networks, Inc. and the Novo Liquidating Trust (as successor in Interest to Nova Networks Operating
Corp., e.Volve Technology Group, Inc, and AxisTel Communications, Inc.) vs. Qwest Communications
Corporation and John L. Higgins, Case No. A452142, County of Clark, State of Nevada (the
“Nevada Litigation”); and

     WHEREAS, the Nevada Court ordered that the Parties arbitrate the claims made against in the
Nevada Litigation;

     WHEREAS, Novo subsequently asserted claims against Qwest in American Arbitration Association
(the “AAA”) Matter No. 161 181 00622 02 (the “Arbitration”); and

     WHEREAS, Qwest filed an administrative claim in the Bankruptcy Proceeding, which the Trustee
disputed, and Qwest sought to set off that claim in the Arbitration and asserted other

1

 

scheduled or filed claims (together with the disputed administrative claim, the “Contested
Matters”).

     WHEREAS, the Parties desire to avoid the uncertainties, risks and expenses attendant in the
Nevada Litigation and the Arbitration and to compromise, settle and release the claims by and
between the Parties as set forth herein;

     WHEREAS, the Plan provides that any settlement of Nova’s claims against Qwest must be approved
by NNI and the Trustee;

     WHEREAS, the Trustee and NNI have approved the settlement set forth herein;

     NOW, THEREFORE, in consideration of the mutual promises and covenants provided herein, and
other good and valuable consideration, the sufficiency and receipt of which are hereby
acknowledged, the Parties agree as follows:

AGREEMENT

     1. Payment

     Within seven (7) days after the execution of this Agreement by the Parties, Qwest shall pay
NNI, on behalf of itself and the Trust, One Million One Hundred Fifty Thousand and 00/100 Dollars
($1,150,000.00) by wire transfer to:

JP Morgan Chase Bank

2200 Ross Avenue

Dallas, Texas 75201

ABA: #########

Account: ###-###-#####

     a. Novo believes that the payment set forth herein is intended to be a contemporaneous
exchange for new value provided by Novo.

     2. Dismissal with Prejudice

     Novo hereby acknowledges the sufficiency of the payment and consideration outlined in
Paragraph 1 of this Agreement. Within five (5) days after payment of the amount outlined in
Paragraph 1 of this Agreement, the Parties will file a Stipulated Motion to Dismiss the Nevada
Litigation, with prejudice, and will inform the AAA that the Arbitration has been finally settled
with each party to pay its own costs and attorney fees.

     3. If Bankruptcy, Approval is Necessary

     Novo represents and warrants that the Plan provides that Bankruptcy Court approval is
unnecessary to effectuate the Agreement. To the extent that Bankruptcy Court approval of the
Agreement is necessary, Qwest’s obligation to make the payment identified in paragraph 1 of the
Agreement to Novo shall be suspended until five (5) days after Bankruptcy Court approval is
obtained, or if payment has already been made, Novo shall immediately deposit any funds from

2

 

Qwest paid pursuant to paragraph 1 into the registry of the Bankruptcy Court until approval is
obtained.

     4. Scope of Agreement

     The Parties intend that this Agreement resolve all charges, amounts, disputes, damages,
obligations, rights, controversies, refunds, complaints, demands and other claims, known or
unknown, billed or unbilled, discoverable or undiscoverable, and/or fixed or contingent, that any
Party has or may have against the other Party including, but not limited to, those arising under,
relating to, or that were asserted or could have been asserted by NNI, the Debtors, the Trust, the
Trustee and Qwest or any of their respective parent, subsidiary, or affiliated companies, in the
Bankruptcy Proceeding, in the Nevada Litigation, or in the Arbitration (collectively, the “Claims
and Demands”). The parties agree that the scope of this agreement and the releases contained herein
shall not include matters involving the Trustee and Qwest not relating to the Claims and Demands.

     5. Novo’s Release of Claims and Demands

     For and in consideration of the performance by Qwest of its obligations under this Agreement
and for other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, NNI, and the Trustee on behalf of the Trust, and their parent companies, subsidiaries
(including without limitation Novo Networks Global Services, Inc., Novo Networks International
Services, Inc., Novo Networks Metro Services, Inc. and Orix Global Communications, Inc.), owners,
affiliates, predecessors, successors, shareholders, partners, principals, insurers and assigns and
their past, present and future employees, officers, directors, attorneys, agents and
representatives absolutely, unconditionally, completely, and without reservation, release, acquit,
and irrevocably release and forever discharge Qwest and its parent companies; subsidiaries, owners,
affiliates, predecessors, successors, shareholders, partners, principals, insurers and assigns and
their past, present and future employees, officers, directors, attorneys, agents and
representatives from and against each and every past, present and future action, claim, demand,
charge, invoice, complaint, petition, right, action, claim, demand, charge, invoice, liability,
damage, loss, expense, obligation, potential action, cause of action, suit, judgment, offset, or
decree in controversy of any kind and nature whatsoever, at law, in equity or otherwise, whether
known or unknown, foreseen or unforeseeable, discoverable or undiscoverable, or certain or
contingent, that have arisen or might arise in connection with or relating to the Claims and
Demands, or that were or could have been asserted in the Nevada Litigation, the Bankruptcy
Proceeding or the Arbitration.

     a. The foregoing release of Qwest and affiliated parties is contingent upon: (i) Qwest’s
making the payment described in Paragraph 1 above.

     6. Novo’s Release of Higgins

     For and in consideration of the performance by Qwest of its obligations under this Agreement
and for other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, NNI, and the Trustee on behalf of the Trust, and their parent companies, subsidiaries
(including without limitation Novo Networks Global Services, Inc., Novo Networks

3

 

International Services, Inc., Novo Networks Metro Services, Inc. and Orix Global
Communications, Inc.), owners, affiliates, predecessors, successors, shareholders, partners,
principals, insurers and assigns and their past, present and future employees, officers, directors,
attorneys, agents and representatives absolutely, unconditionally, completely, and without
reservation, release, acquit, and irrevocably, release, and forever discharge John L. “Jack”
Higgins and his companies, subsidiaries, affiliates, predecessors, successors, shareholders,
partners, principals, insurers and assigns and their past, present and future employees, attorneys,
agents and representatives from and against each and every past, present and future action, claim,
demand; charge, invoice, complaint, petition, right, action, claim, demand, charge, invoice,
liability, damage, loss, expense, obligation, potential action, cause of action, suit, judgment,
offset, or decree in controversy of any kind and nature whatsoever, at law, in equity or otherwise,
whether or known or unknown, foreseen or unforeseeable, discoverable or undiscoverable, or certain
or contingent, that have arisen or might arise in connection with or relating to the Claims and
Demands, or that were or could have been asserted in the Nevada Litigation, the Bankruptcy
Proceeding or the Arbitration.

     a. The foregoing release of Higgins and affiliated parties is contingent upon: (i) Qwest’s
making the payment described in Paragraph I above.

     7. Qwest’s Release

     For and in consideration of the performance by NNI, and the Trustee on behalf of the Trust, of
their obligations under this Agreement and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, Qwest, for itself and its parent companies,
subsidiaries, owners, affiliates, predecessors, successors, partners, principals, shareholders,
insurers and assigns and their past, present and future employees, officers, directors, agents and
representatives, fully and finally waives, releases, acquits and forever discharges Novo
individually and collectively, including the Trust and Trustee, and their parent companies,
subsidiaries, owners, affiliates, predecessors, partners, principals, shareholders, insurers and
assigns and their respective past, present and future employees, officers, directors, attorneys,
agents and representatives from and against each and every past, present and future action, claim,
demand, charge, invoice, complaint, petition, obligation, potential action, cause of action,
controversy of any kind or nature whatsoever, at law, in equity or otherwise, whether known or
unknown, foreseen or unforeseeable, discoverable or undiscoverable, or certain or contingent, that
have arisen or might arise in connection with or relating to the Claims and Demands, or that were
or could have been asserted in the Nevada Litigation, the Bankruptcy Proceeding or the Arbitration.

     a. If for any reason the release of Qwest and its affiliated parties set forth in paragraph 5
above does not become effective, the foregoing release of NNI and the Trustee and affiliated
parties will also not become effective.

     8. Covenant not to Sue

     Except as it relates to the enforcement of this Agreement, the Parties agree not to institute,
cause to be instituted, or participate in any way in the institution of any litigation, proceeding,
or other action against any Party in which liability is sought in any way to be

4

 

predicated upon the Claims and Demands, or any other claims that were or could have been
asserted in the Nevada Litigation, the Bankruptcy Proceeding, or the Arbitration.

     9. Confidentiality and Non-Disparagement

     The Parties agree that they shall keep in strict confidence the terms and amount of this
Agreement and settlement discussions related thereto. The Parties shall not reveal this
confidential information to any other person, except as required by law or order of the court or
other government authority, or as is reasonably necessary to be disclosed to the Parties’
accountants, tax advisors, investors, potential investors, or attorneys. The Parties further agree
that if they receive a subpoena, summons or request to reveal this confidential information, then
the Party shall promptly notify the other Party of the subpoena, summons, or request. The Parties
expressly acknowledge that the purpose of this notice and requirement is to provide the
non-receiving Party with adequate opportunity to oppose any subpoena, summons, or request. If any
Party initiates an enforcement action relating to the terms and conditions of this Agreement, the
Parties agree that they will jointly request that everything the Parties file with the court
regarding the enforcement case remain sealed from the public. The Parties, further agree that they
shall not in writing, orally, or electronically publish or divulge publicly disparaging remarks
about one another. These Confidentiality and Non-Disparagement Provisions are contractual
consideration and not mere recitals. Notwithstanding anything to the contrary in this
Agreement, the Parties acknowledge and agree that NNI will have the unconditional right to disclose
in its filings with the United States Securities and Exchange Commission such information about
this Agreement as may be required, in NNI’s sole and reasonable discretion, to satisfy its duties
and obligations under applicable securities laws. Notwithstanding the above, the parties agree that
the Trust may file in the Bankruptcy Court and serve a notice referencing the existence of the
settlement but not the terms thereof. In addition, the parties agree that the Trustee may file with
the Bankruptcy Court and provide to the Office of the United States Trustee a report which will
include the Trustee’s receipt of the settled amount.

     10. No Admission of Liability or Wrongdoings

     Nothing in this Agreement shall constitute or be construed as an admission of liability on
behalf of any of the Parties as to the validity of any of the claims, defenses, or allegations made
against the other, or shall be admissible in any court, administrative agency, or tribunal for any
purpose whatsoever, with the sole exception of any proceeding to enforce or interpret the terms of
this Agreement.

     11. Warranty of Capacity to Execute Release

     The Parties represent and warrant that no other persons or entities have or have had any
interest in the claims, demands, obligations, or causes of action referenced in this Agreement, and
that the Parties have the sole right and exclusive authority to execute this Agreement. The Parties
further represent and warrant that they have the right and authority to agree to this settlement
and the releases contained herein and have agreed to this settlement after careful consideration of
its merits and after consultation with their attorneys. The Parties further represent and warrant
that they have not sold, assigned, transferred, conveyed, or otherwise disposed of any of the
claims, demands, obligations or causes of action referenced in this

5

 

Agreement or released herein. The Parties and their attorneys represent and warrant that each
Party is competent to agree to this settlement. The Parties warrant, if applicable, that all
necessary corporate actions, notices, or elections have been taken to authorize execution of this
Agreement.

     12. Voluntarily Entered

     Each Party represents and warrants that this Agreement is fair and is executed voluntarily and
by such Party with full knowledge of the consequences and implications of the obligations contained
herein. Each Party also represents and warrants that such Party has had the opportunity to be
represented by counsel of its choice throughout the negotiations which preceded that execution of
this Agreement, and in connection with the preparation and execution of this Agreement, and that
each Party has carefully and thoroughly reviewed this Agreement in its entirety.

     13. No Representation as to Tax Consequences or Other Matters

     The Parties execute this Agreement without reliance upon any statements or representations by
the other Parties or their attorneys concerning the nature and extent of any legal liability, tax
consequences, bankruptcy impact, or any other matter except as contained in this Agreement.

     14. Litigation and Arbitration Expenses

     The Parties understand and agree that each Party shall bear its own attorney fees and costs
arising from the actions of its own counsel in connection with this Agreement, the Nevada
Litigation, the Bankruptcy Proceeding and/or the Arbitration.

     15. Binding Effect

     The terms and conditions contained in this Agreement shall inure to the benefit of, and be
binding upon, the respective successors, assigns, insurers, heirs, survivors, and personal
representatives of the Parties.

     16. Applicable Law, Jurisdiction, Venue, and Arbitration

     This Agreement shall be construed under the substantive laws of the State of New York, without
regard to its choice of law rules. The Parties to this Agreement agree that the place of
performance of this contract is Washington, D.C. Any dispute arising out of this Agreement or any
disputes relating to the claims and disputes or potential claims and disputes at issue in the
Arbitration, the Nevada Litigation or the Bankruptcy Proceeding shall be resolved by binding
arbitration before a single arbitrator in Washington, D.C. The rules and procedures of the AAA or
those of a private arbitrator mutually selected by the Parties shall be the sole and exclusive
procedures for the resolution of such disputes, except to the extent, if any, that a claim or
dispute must be heard as a matter of law in the Bankruptcy Proceeding.

6

 

     17. Notice

     Notices under this Agreement will be effective if mailed by registered or certified mail.
postage prepaid, or delivered by a nationally recognized overnight courier, or by facsimile, to the
addresses listed below for each Party, or to such other addresses as any Patty may subsequently
designate in writing.

If to Qwest, to:

Jana Eisinger

Qwest Communications Corporation

1801 California Street, Suite 900

Denver, CO 80202

Facsimile: 303-383-6663

With a copy to:

Timothy R. Beyer

Amy L. Benson

Brownstein, Hyatt & Farber, P.C.

410 17th Street, 22nd Floor

Denver, CO 80202

Facsimile: 303-223-1111

If to Novo, to:

Steven W. Caple

Novo Networks, Inc.

2311 Cedar Springs Road, Suite 400

Dallas, TX 75201

Facsimile: 214-777-4103

Charles M Setzfand

Rivershore Advisors, LLC

As Trustee of the Novo Liquidating Trust

1419 Forest Drive, Suite 205

Annapolis, MD 21403

Facsimile: 410-268-8070

With a copy to:

William A. Brewer III

Bickel & Brewer

1717 Main Street, Suite 4800

Dallas, TX 75201

Facsimile: 214-653-1015

Jeffrey M. Schlerf

The Bayard Firm, P.A.

7

 

222 Delaware Avenue, Suite 900

Wilmington, DE 19801

Facsimile: 302-658-6395

     18. Modifications

     No modification of this Agreement shall be effective unless in writing and signed by the to
this Agreement.

     19. Merger and Integration

     This Agreement contains the entire agreement between the Parties and embodies and expresses
the entire intent of the Parties with regard to the matters set forth herein, and shall be binding
and inure to the benefit of the employees, former employees, principals, partners, shareholders,
officers, contractors, administrators, agents, personal representatives, successors, and assigns of
each Party. There are no representations or warranties between the Parties other than those
contained within this Agreement related to the matters herein. There also are no representations or
warranties between the Parties relating to the future provision or receipt of telecommunication
services or any type of future business relationship. This Agreement supersedes, merges and
replaces all prior or contemporaneous understandings, negotiations, offers, promises,
representatives, contracts and agreements between the Parties, to the extent such prior
understandings, negotiations, offers, promises, representations, contracts and agreements are
inconsistent with this Agreement. Extrinsic evidence is not admissible in any proceeding to vary or
contradict the terms of this Agreement.

     20. Headings

     The headings of the paragraphs in this Agreement are for convenience and reference only, and
shall not affect the meaning or construction of any of the terms or provisions in this Agreement.

     21. Counterparts

     The Parties agree to sign this Agreement in counterparts.

     22. Faxed Signatures

     The Parties agree that faxed signatures are acceptable.

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     I have read this Agreement, understand the terms used in it and their legal significance and
have executed it voluntarily.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	on behalf of Novo Networks, Inc.

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	STATE OF TEXAS
	 	 	)	 
	

	 	 	 	 	)	 	 	 	 	 	 	 
	COUNTY OF TARRANT
	 	 	)	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Subscribed and sworn to me this 08 day of December, 2004, by                     .
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	My commission expires Oct. 19, 2007.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Witness my hand and official seal.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	/s/ Asantewa Hackshaw
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Notary Public
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	[Seal]
	 	 	 	 	 	 	 	 	 	 	 	 

9

 

     I have read this Agreement, understand the terms used in it and their legal significance and
have executed it voluntarily.

	 	 	 	 
	/s/

	 	Managing Director Rivershore Advisors, LLC	 
	 
	 
	Trustee
	 	 	 

on behalf of Novo Liquidation Trust (as successor in interest to Novo Networks Operating Corp.,
e.Volve Technology Group, Inc. and AxisTel Communications, Inc.)

	 	 	 	 	 	 	 	 	 	 	 
	STATE OF MARYLAND
	 	 	)	 
	

	 	 	 	 	)	 	 	 	 	 
	COUNTY OF GRINE ARUNDEL
	 	 	)	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	Subscribed and sworn to me this 7th day of December, 2004, by                     .
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	My commission expires July 3, 2008.
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	Witness my hand and official seal.
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	/s/ Susan M.K. Best
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	Notary Public
	 
	 	 	 	 	 	 	 	 	 	 
	[Seal]
	 	 	 	 	 	 	 	 	 	 

10

 

     I have read this Agreement, understand the terms used in it and their legal significance and
have executed it voluntarily.

	 	 	 
	/s/     Teresa Taylor

	 	 
	 
	 	 
	Teresa Taylor
	 	 
	Qwest Services Corporation
	 	 
	1801 California Street, Suite 900
	 	 
	Denver, CO 80202
	 	 

on behalf of Qwest Communications Corporation

	 	 	 	 	 	 	 	 	 	 	 
	STATE OF                     
	 	 	)	 
	

	 	 	 	 	)	 	 	 	 	 
	COUNTY OF                     
	 	 	)	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	Subscribed and sworn to me this 10th day of December, 2004, by Teresa Taylor.
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	My commission expires April 30, 2007.
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	Witness my hand and official seal.
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	/s/ Linda Sciez
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	Notary Public
	 
	 	 	 	 	 	 	 	 	 	 
	[Seal]
	 	 	 	 	 	 	 	 	 	 

11

 

	 	 	 	 	 
	Approved as to Form:

	 	 
	 	 
	 
	 	 	 	 
	/s/ John Bickel
	 	 	 	 
	 

	John Bickel II
	 	 	 	 
	Bickel & Brewer
	 	 	 	 
	1717 Main Street, Suite 4800
	 	 	 	 
	Dallas, Texas 75219
	 	 	 	 
	(214)653-4000
	 	 	 	 
	 
	 	 	 	 
	Counsel for Novo
	 	 	 	 
	 
	 	 	 	 
	 

	Timothy R. Beyer
	 	 	 	 
	Amy L. Benson
	 	 	 	 
	Benjamin A. Kahn
	 	 	 	 
	Brownstein, Hyatt & Farber, P.C.
	 	 	 	 
	410 17th Street, 22nd Floor
	 	 	 	 
	Denver, CO 80202
	 	 	 	 
	(303) 223-1100
	 	 	 	 
	 
	 	 	 	 
	Counsel for Qwest
	 	 	 	 

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