CONRAD C. LYSIAK
Attorney and Counselor at Law
601 West First Avenue
Suite 503
Spokane, Washington 99204
(509) 624_1478
FAX (509) 747_1770
E-MAIL:cclysiak@qwest.net
November 30, 2004
Securities and Exchange Commission
450 Fifth Avenue N.W.
Washington, D. C. 20549
RE: NSM HOLDINGS, INC.
Gentlemen:
Please be advised that, I have reached the following conclusions regarding the above offering:
1. NSM HOLDINGS, INC. (the "Company") is a duly and legally organized and exiting Delaware state corporation, with its registered office located in Wilmington, Delaware and its principal place of business located in Vancouver, British Columbia, Canada. The Articles of Incorporation and corporate registration fees were submitted to the Delaware Secretary of State's office and filed with the office on April 8, 2004. The Company's existence and form is valid and legal pursuant to the representation above.
2. The Company is a fully and duly incorporated Delaware corporate entity. The Company has one class of Common Stock at this time. Neither the Articles of Incorporation, Bylaws, and amendments thereto, nor subsequent resolutions change the non_assessable characteristics of the Company's common shares of stock. The Common Stock previously issued by the Company is in legal form and in compliance with the laws of the State of Delaware, its Constitution and reported judicial decisions interpreting those laws and when such stock was issued it was duly authorized, fully paid for and non_assessable. The common stock to be sold under this Form SB_2 Registration Statement is likewise legal under the laws of the State of Delaware.
3. To my knowledge, the Company is not a party to any legal proceedings nor are there any judgments against the Company, nor are there any actions or suits filed or threatened against it or its officers and directors, in their capacities as such, other than as set forth in the registration statement. I know of no disputes involving the Company and the Company has no claim, actions or inquires from any federal, state or other government agency, other than as set forth in the registration statement. I know of no claims against the Company or any reputed claims against it at this time, other than as set forth in the registration statement.
4. The Company's outstanding shares are all common shares. There are no liquidation preference rights held by any of the Shareholders upon voluntary or involuntary liquidation of the Company.
Counsel -1 - Consent
Securities and Exchange Commission
RE: NSM HOLDINGS, INC.
November 30, 2004
Page 2
5. The directors and officers of the Company are indemnified against all costs, expenses, judgments and liabilities, including attorney's fees, reasonably incurred by or imposed upon them or any of them in connection with or resulting from any action, suit or proceedings, civil or general, in which the officer or director is or may be made a party by reason of his being or having been such a director or officer. This indemnification is not exclusive of other rights to which such director or officer may be entitled as a matter of law.
6. All tax benefits to be derived from the Company’s operations shall inure to the benefit of the Company. Shareholders will receive no tax benefits from their stock ownership, however, this must be reviewed in light of the Tax Reform Act of 1986.
7. By directors’ resolution, the Company has authorized the issuance of up to 2,500,000 shares of common stock.
The Company's Articles of Incorporation presently provide the authority to the Company to issue 100,000,000 shares of Common Stock, $0.001 par value. Therefore, the 2,500,000 shares of common stock, when offered and sold in the manner described in the registration statement, will be duly authorized, fully paid, and non-assessable.
Further, the registration statement filed by the Company relates to the resale by certain selling shareholders of up to 945,000 shares of common stock.
It is my opinion that:
1. The shares of common stock offered by certain selling shareholders which are included in the registration statement were validly issued, fully paid and are non-assessable.
2. The shares of common stock when sold, will be legally issued, fully paid and non-assessable.
I consent to filing this opinion as an exhibit to the Company’s Form SB-2 registration statement.
Yours truly,
/s/ Conrad C. Lysiak
Conrad C. Lysiak
Counsel -2 - Consent