Document:

ex_10-2.htm

    
      

      

    

    CONVERTIBLE
      PROMISSORY NOTE

    OFFSHORE
      SECURITIES SUBSCRIPTION AGREEMENT

    

    
      	
              US
                $113,747.00

            	
              DATED:  September
                30th, 2007

            

    

    

    OCTUS,
      INC., (“OCTUS” or “The Company”) a company organized and existing under
      the laws of Nevada, hereby promises to pay to the order of Sasaima Holdings
      SA,
      a corporation domiciled in the Republic of Panama (“Holder”),  the sum
      of One Hundred Thirteen Thousand Seven Hundred Forty-seven United States Dollars
      (US$113,747.00), together with interest as provided herein.

    

    
      	
              1.
                PAYMENT.

            	
              All
                amounts of principal and interest under this Convertible Promissory
                Note
                (“Note”) shall be due and payable as follows unless the Holder exercises
                its right to convert in accordance with Exhibit
                A.

            

    

    

    
      	
               

            	
              Principal:

            	
              To
                be paid in full or in installments, no later than 90 days from the
                date
                the Company receives a written demand from
                Holder.

            

    

    

    
      	
               

            	
              Interest:

            	
              Shall
                accrue and be calculated on the principal balance then outstanding,
                at the
                rate of eight percent (8%) per
                month.

            

    

    

    
      	
                              Prepayment:

            	
              The
                Company may prepay this Note in whole or in part on any date without
                premium or penalty. No partial prepayment shall extend or postpone
                the due
                date of any subsequent payment, unless Holder shall otherwise first
                agree
                in writing. Holder shall have the continuing and exclusive right
                to apply
                or reverse and reapply any and all payments to any portion of the
                indebtedness evidenced by the provisions of this
                Note.

            

    

    

    THE
      SECURITIES OFFERED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED, EXCEPT
      OTHERWISE PROVIDED FOR HEREIN, WITH THE UNITED STATES SECURITIES AND EXCHANGE
      COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE PURSUANT TO AN EXEMPTION
      FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“1933 ACT”) AND
      REGULATION S OF THE RULES AND REGULATIONS PROMULGATED THEREUNDER, AND MAY NOT
      BE
      SOLD OR OFFERED WITHIN THE UNITED STATES (AS DETAILED IN REGULATION S) EXCEPT
      PURSUANT TO REGISTRATION UNDER OR AN EXEMPTION FROM THE REGISTRATION
      REQUIREMENTS OF THE 1933 ACT.

    

    2.
      CONVERSION.

    

    The
      Holder, at its sole option, may convert any part of the principal and any
      accrued interest into shares (Shares) of the Company’s $.001 par value common
      stock at a conversion price of US$0.10 per Share (the “Conversion
      Price”).

    

    
      	
              (a)  

            	
              Optional
                Conversion:

            

    

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    At
      any
      time and from time to time, until payment in full of the principal of this
      Note,
      the Holder is entitled, at its option, to convert any unpaid portion of the
      principal amount of the Note, into shares (the “Conversion Shares”) of
      the Company’s restricted common stock (“Common Stock”), at the Conversion
      Price. No fraction of shares or scrip representing fractions of shares will
      be
      issued on conversion, but the number of shares issuable shall be rounded to
      the
      nearest whole share.  To convert this Note, the Holder hereof shall
      deliver written notice thereof, substantially in the form of Exhibit “A” to
      this Note, with appropriate insertions (the “Conversion Notice”), to the
      Company at its address as set forth herein.  The date upon which the
      conversion shall be effective (the “Conversion Date”) shall be deemed to
      be the date set forth in the Conversion Notice.

     

    
      	
              (b)  

            	
              Reservation
                of Common Stock:

            

    

    

    The
      Company shall reserve and keep available out of its authorized but unissued
      shares of Common Stock, solely for the purpose of effecting the conversion
      of
      this Note, such number of shares of Common Stock as shall from time to time
      be
      sufficient to effect such conversion, based upon the Conversion
      Price.  If at any time the Company does not have a sufficient number
      of Conversion Shares authorized and available, then the Company shall call
      and
      hold a special meeting of its stockholders within sixty (60) days of
      that time for the sole purpose of increasing the number of authorized shares
      of
      Common Stock.  Management of the Company shall vote all of its shares
      in favor of increasing the authorized Common Stock.

    
 

    3.
      HOLDER REPRESENTATIONS AND COVENANTS.

    

    In
      connection with the purchase and sale of the securities, the Holder represents
      and warrants to, and covenants and agrees with the Company as
      follows:

    

    
      	
              (a)  

            	
              Offshore
                Transaction

            

    

    

    
      	
              (i)  

            	
              The
                Holder is not a U.S. Person (as defined in Section 902 (o) of Regulation
                S) or if the Holder is not a natural person, is not organized under
                the
                laws of any jurisdiction within the United States, was not formed
                by a U.
                S. Person for the purpose of investing in Regulation S securities
                and is
                not otherwise a U.S. Person.  The Holder is not, and on the date
                of issuance of this Note by the Company, will not be an affiliate
                of the
                Company;

            

    

    

    
      	
              (ii)  

            	
              At
                the time the buy order was originated, the Holder was outside the
                United
                States and is outside of the United States as of the date of the
                execution
                and delivery of this Note;

            

    

    

    
      	
              (iii)  

            	
              No
                offer to purchase the securities was made by the Holder in the United
                States;

            

    

    

    
      	
              (iv)  

            	
              The
                Holder is purchasing the Note under the laws of his or its jurisdiction
                of
                residence and domicile, and the offer and sale of the Note will not
                violate the securities or other laws of such
                jurisdiction;

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
              (v)  

            	
              All
                offers and sale of this Note by the Holder prior to the end of the
                restricted period, as defined by appropriate securities laws (Restricted
                Period) of any applicable jurisdiction must be done in accordance
                with
                Rule 903 and Rule 904, as applicable, of Regulation S or pursuant
                to
                registration under the 1933 Act or pursuant to an exemption from
                registration.

            

    

    

    
      	
              (vi)  

            	
              The
                transaction contemplated by this Note (a) has not been and will not
                be
                pre-arranged by the Holder with a purchaser located in United States
                or a
                purchaser which is a U.S. Person, and (b) are not and will not be
                part of
                a plan or scheme by the Holder, to evade the registration provisions
                of
                the 1933;

            

    

    

    
      	
              (vii)  

            	
              The
                Holder understands that the securities are not registered either
                under the
                1933 Act or otherwise and are being offered and sold to it in reliance
                on
                specific exclusions from the registration requirements of Federal
                and
                State securities laws, and that the Company is relying upon the truth
                and
                accuracy of the representation, warranties, agreements, acknowledgements
                and understanding of the Holder set forth herein in order to determine
                the
                applicable of such exclusions and the suitably of the Holder and
                any
                purchaser from the Holder to acquire the
                Note;

            

    

    

    
      	
              (viii)  

            	
              The
                Holder shall take all reasonable steps to ensure its compliance with
                Regulation S and shall promptly send to each purchaser who acts as
                a
                distributor, dealer or person receiving a selling commission, fee
                or other
                remuneration with respect to any of the securities, who purchases
                prior to
                the expiration of the Restricted Period referred to in Section 2(a)(v)
                above, a confirmation or other notice to the purchaser stating that
                the
                purchaser is subject to the same restrictions on offers and sales
                as the
                Holder;

            

    

    

    
      	
              (ix)  

            	
              The
                Holder has not conducted or permitted and shall not conduct or permit
                on
                its behalf any “directed selling efforts” as that term is defined in Rule
                902(b) of Regulation S; nor has the Holder conducted any general
                solicitation relating to the offer and sale of any of the securities
                in
                the United States or elsewhere;

            

    

    

    
      	
              (x)  

            	
              The
                Holder has the full right, power and authority to enter into this
                Note and
                to consummate the transactions contemplated herein.  This Note
                has been duly authorized, valid executed and delivered on behalf
                of the
                Holder and is a valid and binding agreement in accordance with its
                terms,
                subject to general principals of equity and bankruptcy or other laws
                affecting the enforcement of creditors’ rights
                generally;

            

    

    

    
      	
              (xi)  

            	
              The
                execution and delivery of this Note and the consummation of the purchase
                of the securities, and the transactions contemplated by this Note
                do not
                and will not conflict with or result in a breach by the Holder of
                any of
                the terms or provisions of, or constitute a default under, the articles
                of
                incorporation or by-laws (or similar constitutive documents) of the
                Holder.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              (xii)  

            	
              All
                invitations, offers and sales of or with respect to the Note, by
                the
                Holder and any distribution by the Holder of any documents relating
                to any
                offer by it of any of the securities will be in compliance with applicable
                laws and regulations and will be made in such a manner that no prospectus
                need be filed and no other filing need be made by the Company with
                any
                regulatory authority or stock exchange in any country or any political
                sub-division of any country; and

            

    

    

    
      	
              (xiii)  

            	
              The
                Holder will not make any offer or sale of the Note by any means which
                would not comply with the law and regulations of the territory in
                which
                such offer or sale takes place or to which such offer or sale impose
                upon
                the Company any obligation to satisfy any public filing or registration
                requirement or provide or publish any information of any kind whatsoever
                or to otherwise undertake or become obligated to do any
                act.

            

    

    

    
      	
              (xiv)  

            	
              The
                Holder certifies that it is not acquiring the Note for the account
                of any
                US person and agrees to resell such Note only in accordance with
                the
                provisions of Regulation S, pursuant to registration under the Securities
                Act of 1933 (the “Act”) or pursuant to an available exemption from
                registration; and agrees not to engage in hedging transactions with
                regard
                to such securities unless in compliance with the
                Act.

            

    

    

     
      (b) Independent
      Advice

    

    
      	
               

            	
              The
                Holder (or others for whom it is contracting hereunder) has been
                advised
                to consult its own legal and tax advisors with respect to applicable
                resale restrictions and applicable tax considerations and it (or
                others
                for whom it is contracting hereunder) has been advised to consult
                its own
                legal and tax advisors with respect to applicable resale restrictions
                and
                applicable tax considerations and it (or others for whom it is contracting
                hereunder) is solely responsible and the Company is not in any way
                responsible for compliance with applicable resale restrictions and
                applicable tax legislation.

            

    

    

    
      	
              (c)  

            	
              No
                Government Recommendation or
                Approval

            

    

    

    The
      Holder understands that no Federal or State or foreign government agency has
      passed on or made any recommendation or endorsement of the Note.

    

    
      	
              (d)  

            	
              Current
                Public Information

            

    

    

    The
      Holder has had an opportunity to discuss with the officers of the Company,
      all
      matters relating to the securities, financial condition, operations and
      prospects of the Company and any questions raised by the Holder have been
      answered to the Holder’s satisfaction.

    

    
      	
              (e)  

            	
              Holder’s
                Sophistication

            

    

    

    The
      Holder acknowledges that the issuance of the Note and subsequent conversions,
      if
      any, involve a high degree of risk.  The Holder has such knowledge and
      experience in financial and business matters that it is capable of evaluating
      the merits and risks under the 1933 Act, and therefore, the Holder must bear
      the
      economic risk of this investment or an indefinite period of time
      and;

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    
      	
              (f)  

            	
              Tax
                Status

            

    

    

    The
      Holder is not a “10-percent Shareholder” (as defined in Section 871(h)3(B) of
      the U.S. Internal Revenue Code) of the Company.

    

    4.
THE
      COMPANY’S REPRESENTATIONS AND COVENANTS.

    

    
      	
              (a)  

            	
              Company
                Status: The Company is a Reporting Issuer and its Common Stock, is
                eligible for quotation on OTC Bulletin Board using the symbol
                “OCTI”.

            

    

    

    
      	
              (b)  

            	
              Offshore
                Transaction: The Company has not offered the Note to any person in the
                United States, any identifiable groups of U.S. citizens aboard, or
                to any
                U.S. Person, as such terms are used in Regulation
                S.

            

    

    

    
      	
              (i)  

            	
              At
                the time the buy order was originated, the Company and/or its agents
                reasonably believed the Holder was outside the United States and
                was not a
                U.S. person.

            

    

    

    
      	
               

            	
                       (ii)

            	
              The
                Company and/or its agents reasonably believe that the transaction
                was not
                pre-arranged with a Holder in the United States and, at the time,
                Holder
                was not a U.S. Person.

            

    

    

    
      	
              (iii)  

            	
              No
                offer to buy or sell the Note was or will be made by the Company
                to any
                person in the United States.

            

    

    

    
      	
              (iv)  

            	
              The
                issuance of the Note by the Company will be made in accordance with
                the
                provisions and requirements of Regulation S in all
                respect.

            

    

    

    
      	
              (v)  

            	
              The
                transactions contemplated by this Note (A) have not been and will
                not be
                pre-arranged by the Company with a purchaser located in the United
                States
                or a purchaser which is a U.S. Person, and (B) are not and will not
                be
                part of a plan or scheme by the Company to evade the registration
                provisions of the 1933 Act.

            

    

    

    
      	
              (c)  

            	
              No
                Directed Selling Efforts: With regards to this transaction, the
                Company has not conducted any “directed selling efforts” as that term is
                defined in Rule 902 of Regulation S nor has the Company conducted
                any
                general solicitation relating to the offer and sale of any of the
                Note in
                the United States or elsewhere.

            

    

    

    
      	
              (d)  

            	
              Organization:
                The Company is a corporation duly organized and validly existing
                under the
                laws of the State of Nevada, and is in good standing under such laws.
                The
                Company has all requisite corporate power and authority to carry
                on its
                business as presently conducted.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    
      	
              (e)  

            	
              Shares:
                There are 100,000,000 shares of the Company’s Common Stock,
                $0.001 par value per share,
                authorized.

            

    

    

    
      	
              (f)  

            	
              Authority:
                The execution and delivery of the Note do not, and the consummation
                of the
                transactions contemplated hereby will not, conflict with, or result
                in any
                violation of, or default (with or without notice or lapse of time,
                or
                both), or give rise to a right of termination, cancellation or
                acceleration of any obligation or to a loss of a material benefit,
                under,
                any provision of the Articles of Incorporation, and any amendments
                thereto, By Laws, Stockholders Agreement and any amendments thereto
                of the
                Company.

            

    

    

    
      	
              (g)  

            	
              Consent:
                No consent, approval or authorization of or designation, declaration
                or
                filing with any government authority on the part of the Company is
                required in connection with the valid execution and delivery of the
                Note,
                or the offer, sale or issuance of the Common Stock, or the consummation
                of
                any other transaction contemplated hereby, except the filing, if
                required,
                with the Securities and Exchange Commission of Form 8-K or other
                required
                filing for Regulation S exempted
                offerings.

            

    

    

    
      	
              (h)  

            	
              Actions:
                There is no action, proceeding or investigation pending, or to the
                Company’s knowledge, threatened, against the Company which might result,
                either individually or in the aggregate, in any material adverse
                change in
                the business, prospects, conditions, affairs or operations of the
                Company.

            

    

    

    
      	
              (i)  

            	
              Corporate
                Action: The issuance, sale and delivery of the Note have been duly
                authorized by all required corporate action on the part of the Company,
                and when issued, sold and delivered in accordance with the terms
                hereof
                and thereof for the consideration expressed herein and therein, will
                be
                duly and validly issued, fully paid and
                non-assessable.

            

    

    

    
      	
              (j)  

            	
              Binding
                Agreement: This Note has been duly authorized, validly executed and
                delivered on behalf of the Company and is a valid and bind agreement
                in
                accordance with its terms, subject to general principles of equity
                and to
                bankruptcy or other laws affecting the enforcement of creditors’ rights
                generally. The Company has all requisite right, power and authority
                to
                execute and deliver this Note and to consummate the transactions
                contemplated hereby.  All corporate action on the part of the
                Company, its directors and shareholders necessary for the authorization,
                execution, delivery and performance of this Note has been
                taken.

            

    

    

    
      	
              (k)  

            	
              Approvals:
                The Company is not aware of any authorization, approval, or consent
                of any
                U.S. government body which is legally required for the issuance and
                sale
                of the securities issuable upon conversion hereof to persons who
                are
                non-U.S.Persons, as contemplated by this
                Note.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              5.  

            	
              EXEMPTION;
                RELIANCE ON REPRESENTATIONS.

            

    

    

    The
      Holder understands that the offer and sale of the securities are not being
      registered under the 1933 Act. The Company and the Holder are relying on the
      rules governing offers and sales made outside the United States pursuant to
      Regulation S.

    

    
      	
              6.  

            	
              REGISTRATION
                RIGHTS AND TRADABILITY OPINION:

            

    

    

    
      	
              (a)  

            	
              Registration
                Statement: In the event that the Company intends to file any
                registration statement relating to any of the Company’s Common Stock, the
                Company agrees that it will register the Common Stock underlying
                the
                Note.  The Company shall provide at least thirty (30) days prior
                written notice to Holder of the Company’s intention to file such
                registration statement. Holder will then have 30 days to notify the
                Company, in writing, that it is exercising its registration rights.
                If
                Holder does not provide such written notice within the required 30
                day
                period, Holder forfeits the right to require registration of the
                Common
                Stock underlying this Note. The registration rights granted herein
                are
                subject, at all times, to requirements imposed in an underwritten
                offering. In the event the Company conducts an underwritten offering
                and
                the underwriter requires that the Company not include the shares
                of Common
                Stock underlying this Note in a particular registration statement,
                the
                Company will include the Common Stock underlying this Note in the
                next
                subsequent registration statement.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	
               

            	
                       (b)

            	
              Tradability
                of Common Stock:  The Conversion Shares may only be disposed
                of in compliance with state and federal securities laws. Absent
                registration, the Holder of the Conversion Shares should be aware
                that the
                Conversion Shares underlying the Note will be restricted
                securities.  In connection with any transfer or sale of
                Securities other than pursuant to an effective registration statement
                or
                Rule 144, assuming such transfer is legal and appropriate under the
                circumstances as they exist at the time of attempted transfer, the
                Holder
                may require the Company to provide an tradeability opinion written
                by
                Company counsel, or of counsel selected by the Holder and reasonably
                acceptable to the Company, the form and substance of which opinion
                shall
                be reasonably satisfactory to the Company, to the effect that such
                transfer or sale does not require registration of the Conversion
                Shares
                under the Securities Act or is otherwise permissible under Rule
                144.

            

    

     

    
      	
              7.  

            	
              CONDITIONS
                TO HOLDER’S OBLIGATIONS TO
                PURCHASE.

            

    

    

    The
      Holder’s obligation to purchase the Note is conditional upon the confirmation of
      receipt and acceptance by the Company of this Note as evidenced by execution
      of
      this Note of the duly authorized officers of the Company.

    

    
      	
              8.  

            	
              MISCELLANEOUS.

            

    

    

    
      	
              (a)  

            	
              Entire
                Agreement and Amendments: This Note constitutes the entire agreement
                between the parties, and neither party shall be liable or bound to
                the
                other in any manner by any warranties, representations or covenants
                except
                as specifically set forth herein.  Any previous agreement among
                the parties related to the transactions described herein is superseded
                hereby.  This Note may be amended only by an instrument in
                writing executed by the parties hereto. The terms and conditions
                of this
                Note shall inure to the benefit of and be binding upon the restrictive
                successors and assigns of the parties hereto.  Nothing in this
                Note, express or implied, is intended to confer upon any party, other
                than
                the parties hereto, and their respective successors and assigns,
                any
                rights, remedies, obligations or liabilities under or by reason of
                this
                Note, except as expressly provided
                herein.

            

    

    
 

    
      	
              (b)  

            	
              Survival:
                All representations and warranties in this Note by the Company and
                the
                Holder shall survive the closing of the transactions contemplated
                by this
                Note.

            

    

    

    
      	
              (c)  

            	
              Governing
                Law: This Note shall be construed in accordance with the laws of
                Nevada applicable to contracts made and wholly to be performed within
                the
                State of Nevada and shall be binding upon the successors and assigns
                of
                each party hereto.  This Note may be executed in counterparts,
                and the facsimile transmission of executed counterpart to this Note
                shall
                be effective as an original.

            

    

    

    
      	
              (d)  

            	
              Holder
                Indemnification: The Holder agrees to indemnify and hold the Company
                harmless from any all claims, damages and liabilities arising from
                the
                Holder’s breach of its representations and warranties set forth in the
                Note.

            

    

    

    
      	
              (e)  

            	
              Notice:
                Any notice hereunder may be given to the Holder or by the Company
                by
                delivering it as follows:

            

    

    

    To
      OCTuS:

    Marbella,
      Avenida Aquilino de la Guardia Y Calle 47

    Edificio
      Ocean Plaza, Piso 16

    Republic
      of Panama

    Attention:  Josie
      Ben Rubi

    

    To
      the
      Holder: Sasaima Holdings SA

    Suite
      472

    APDO
      0832-2745

    World
      Trade Center

    Panama
      City

    Republic
      of Panama

     

    
      	
              (f)  

            	
              Counterparts:  This
                Note may be executed in multiple counterparts, each of which shall
                be an
                original, but all of which shall be deemed to constitute one
                instrument.

            

    

    

    
      	
              (g)  

            	
              Time:  Time
                shall be of the essence to this
                Note.

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the undersigned has executed the Note as of the date
      first net forth above.

    

    OFFICIAL
      SIGNATORY OF OCTUS, INC.

    
      	 	 	 	 	 
	
              /s/
                Josie Ben Rubi

            	 	 	
               

            	 
	
              BY:
                Josie Ben Rubi

            	 	 	
               

            	 
	
              
                TITLE:
                  President

              

            	 	 	
               

            	 
	 	 	 	 	 
	Accepted
              this 30th
              day of September 2007	 	 	 	 

    

     

     

    OFFICIAL
      SIGNATORY OF HOLDER

    

    
      	 	 	 	 	 
	
              /s/
                Victor Guerra

            	 	 	
               

            	 
	
              BY:
                Victor Guerra

            	 	 	
               

            	 
	
              TITLE:
                President

            	 	 	
               

            	 

    

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

     EXHIBIT
      “A”

     

    NOTICE
      OF CONVERSION

     

    (To
      be
      executed by the Holder in order to convert the Note)

     

    
      	
              TO:

            	 

    

    

    The
      undersigned hereby irrevocably elects to convert $ ____________________ of
      the principal amount of the above Note into Shares of Common Stock of OCTuS,
      Inc., according to the conditions stated therein, as of the Conversion Date
      written below.

     

    
      	
              Conversion
                Date:

            	 
	
              Applicable
                Conversion Price:

            	 
	
              Signature:

            	 
	
              Name:

            	 
	
              Address:

            	 
	
              Amount
                to be converted:

            	
              $                                                                                      

            
	
              Amount
                of Note unconverted:

            	
              $                                                                                      

            
	
              Conversion
                Price per share:

            	
              $                                                                                      

            
	
              Number
                of shares of Common Stock to be issued:

            	 
	
              Please
                issue the shares of Common Stock in the following name and to the
                following address:

            	 
	
              Issue
                to:

            	 
	
              Authorized
                Signature:

            	 
	
              Name:

            	 
	
              Title:

            	 
	
              Phone
                Number:CC Filed by Filing Services Canada Inc. 403-717-3898

Dissent and Appraisal Rights of the Nevada Revised Statutes

To S-4 Prospectus/Information Statement for Eurasia Energy Limited dated November 13, 2007

This act shall be known and may be cited as the "Nevada Revised Statutes".

NRS 92A.300  Definitions.  As used in NRS 92A.300 to 92A.500, inclusive, unless the context otherwise requires, the words and terms defined in NRS 92A.305 to 92A.335, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 1995, 2086)

NRS 92A.305  “Beneficial stockholder” defined.  “Beneficial stockholder” means a person who is a beneficial owner of shares held in a voting trust or by a nominee as the stockholder of record.

(Added to NRS by 1995, 2087)

NRS 92A.310  “Corporate action” defined.  “Corporate action” means the action of a domestic corporation.

(Added to NRS by 1995, 2087)

NRS 92A.315  “Dissenter” defined.  “Dissenter” means a stockholder who is entitled to dissent from a domestic corporation’s action under NRS 92A.380 and who exercises that right when and in the manner required by NRS 92A.400 to 92A.480, inclusive.

(Added to NRS by 1995, 2087; A 1999, 1631)

NRS 92A.320  “Fair value” defined.  “Fair value,” with respect to a dissenter’s shares, means the value of the shares immediately before the effectuation of the corporate action to which he objects, excluding any appreciation or depreciation in anticipation of the corporate action unless exclusion would be inequitable.

(Added to NRS by 1995, 2087)

NRS 92A.325  “Stockholder” defined.  “Stockholder” means a stockholder of record or a beneficial stockholder of a domestic corporation.

(Added to NRS by 1995, 2087)

NRS 92A.330  “Stockholder of record” defined.  “Stockholder of record” means the person in whose name shares are registered in the records of a domestic corporation or the beneficial owner of shares to the extent of the rights granted by a nominee’s certificate on file with the domestic corporation.

      (Added to NRS by 1995, 2087)

NRS 92A.335  “Subject corporation” defined.  “Subject corporation” means the domestic corporation which is the issuer of the shares held by a dissenter before the corporate action creating the dissenter’s rights becomes effective or the surviving or acquiring entity of that issuer after the corporate action becomes effective.

(Added to NRS by 1995, 2087)

NRS 92A.340  Computation of interest.  Interest payable pursuant to NRS 92A.300 to 92A.500, inclusive, must be computed from the effective date of the action until the date of payment, at the average rate currently paid by the entity on its principal bank loans or, if it has no bank loans, at a rate that is fair and equitable under all of the circumstances.

(Added to NRS by 1995, 2087)

NRS 92A.350  Rights of dissenting partner of domestic limited partnership.  A partnership agreement of a domestic limited partnership or, unless otherwise provided in the partnership agreement, an agreement of merger or exchange, may provide that contractual rights with respect to the partnership interest of a dissenting general or limited partner of a domestic limited partnership are available for any class or group of partnership interests in connection with any merger or exchange in which the domestic limited partnership is a constituent entity.

(Added to NRS by 1995, 2088)

NRS 92A.360  Rights of dissenting member of domestic limited-liability company.  The articles of organization or operating agreement of a domestic limited-liability company or, unless otherwise provided in the articles of organization or operating agreement, an agreement of merger or exchange, may provide that contractual rights with respect to the interest of a dissenting member are available in connection with any merger or exchange in which the domestic limited-liability company is a constituent entity.

(Added to NRS by 1995, 2088)

NRS 92A.370  Rights of dissenting member of domestic nonprofit corporation.

1.

 Except as otherwise provided in subsection 2, and unless otherwise provided in the articles or bylaws, any member of any constituent domestic nonprofit corporation who voted against the merger may, without prior notice, but within 30 days after the effective date of the merger, resign from membership and is thereby excused from all contractual obligations to the constituent or surviving corporations which did not occur before his resignation and is thereby entitled to those rights, if any, which would have existed if there had been no merger and the membership had been terminated or the member had been expelled.

2.

 Unless otherwise provided in its articles of incorporation or bylaws, no member of a domestic nonprofit corporation, including, but not limited to, a cooperative corporation, which supplies services described in chapter 704 of NRS to its members only, and no person who is a member of a domestic nonprofit corporation as a condition of or by reason of the ownership of an interest in real property, may resign and dissent pursuant to subsection 1.

(Added to NRS by 1995, 2088)

NRS 92A.380  Right of stockholder to dissent from certain corporate actions and to obtain payment for shares.

1.

 Except as otherwise provided in NRS 92A.370 and 92A.390, any stockholder is entitled to dissent from, and obtain payment of the fair value of his shares in the event of any of the following corporate actions:

(a)

Consummation of a conversion or plan of merger to which the domestic corporation is a constituent entity:

(1)

If approval by the stockholders is required for the conversion or merger by NRS 92A.120 to 92A.160, inclusive, or the articles of incorporation, regardless of whether the stockholder is entitled to vote on the conversion or plan of merger; or

(2)

If the domestic corporation is a subsidiary and is merged with its parent pursuant to NRS 92A.180.

(b)

Consummation of a plan of exchange to which the domestic corporation is a constituent entity as the corporation whose subject owner’s interests will be acquired, if his shares are to be acquired in the plan of exchange.

(c)

Any corporate action taken pursuant to a vote of the stockholders to the extent that the articles of incorporation, bylaws or a resolution of the board of directors provides that voting or nonvoting stockholders are entitled to dissent and obtain payment for their shares.

(d)

Any corporate action not described in paragraph (a), (b) or (c) that will result in the stockholder receiving money or scrip instead of fractional shares.

2.

 A stockholder who is entitled to dissent and obtain payment pursuant to NRS 92A.300 to 92A.500, inclusive, may not challenge the corporate action creating his entitlement unless the action is unlawful or fraudulent with respect to him or the domestic corporation.

(Added to NRS by 1995, 2087; A 2001, 1414, 3199; 2003, 3189; 2005, 2204)

NRS 92A.390  Limitations on right of dissent: Stockholders of certain classes or series; action of stockholders not required for plan of merger.

1.

 There is no right of dissent with respect to a plan of merger or exchange in favor of stockholders of any class or series which, at the record date fixed to determine the stockholders entitled to receive notice of and to vote at the meeting at which the plan of merger or exchange is to be acted on, were either listed on a national securities exchange, included in the national market system by the National Association of Securities Dealers, Inc., or held by at least 2,000 stockholders of record, unless:

(a)

The articles of incorporation of the corporation issuing the shares provide otherwise; or

(b)

The holders of the class or series are required under the plan of merger or exchange to accept for the shares anything except:

(1)

Cash, owner’s interests or owner’s interests and cash in lieu of fractional owner’s interests of:

(I)

The surviving or acquiring entity; or

(II)

Any other entity which, at the effective date of the plan of merger or exchange, were either listed on a national securities exchange, included in the national market system by the National Association of Securities Dealers, Inc., or held of record by a least 2,000 holders of owner’s interests of record; or

(2)

A combination of cash and owner’s interests of the kind described in sub-subparagraphs (I) and (II) of subparagraph (1) of paragraph (b).

2.

 There is no right of dissent for any holders of stock of the surviving domestic corporation if the plan of merger does not require action of the stockholders of the surviving domestic corporation under NRS 92A.130.

(Added to NRS by 1995, 2088)

NRS 92A.400  Limitations on right of dissent: Assertion as to portions only to shares registered to stockholder; assertion by beneficial stockholder.

1.

 A stockholder of record may assert dissenter’s rights as to fewer than all of the shares registered in his name only if he dissents with respect to all shares beneficially owned by any one person and notifies the subject corporation in writing of the name and address of each person on whose behalf he asserts dissenter’s rights. The rights of a partial dissenter under this subsection are determined as if the shares as to which he dissents and his other shares were registered in the names of different stockholders.

2.

 A beneficial stockholder may assert dissenter’s rights as to shares held on his behalf only if:

(a)

He submits to the subject corporation the written consent of the stockholder of record to the dissent not later than the time the beneficial stockholder asserts dissenter’s rights; and

(b)

He does so with respect to all shares of which he is the beneficial stockholder or over which he has power to direct the vote.

(Added to NRS by 1995, 2089)

NRS 92A.410  Notification of stockholders regarding right of dissent.

1.

 If a proposed corporate action creating dissenters’ rights is submitted to a vote at a stockholders’ meeting, the notice of the meeting must state that stockholders are or may be entitled to assert dissenters’ rights under NRS 92A.300 to 92A.500, inclusive, and be accompanied by a copy of those sections.

2.

 If the corporate action creating dissenters’ rights is taken by written consent of the stockholders or without a vote of the stockholders, the domestic corporation shall notify in writing all stockholders entitled to assert dissenters’ rights that the action was taken and send them the dissenter’s notice described in NRS 92A.430.

(Added to NRS by 1995, 2089; A 1997, 730)

NRS 92A.420  Prerequisites to demand for payment for shares.

1.

 If a proposed corporate action creating dissenters’ rights is submitted to a vote at a stockholders’ meeting, a stockholder who wishes to assert dissenter’s rights:

(a)

Must deliver to the subject corporation, before the vote is taken, written notice of his intent to demand payment for his shares if the proposed action is effectuated; and

(b)

Must not vote his shares in favor of the proposed action.

2.

 If a proposed corporate action creating dissenters’ rights is taken by written consent of the stockholders, a stockholder who wishes to assert dissenters’ rights must not consent to or approve the proposed corporate action.

3.

 A stockholder who does not satisfy the requirements of subsection 1 or 2 and NRS 92A.400 is not entitled to payment for his shares under this chapter.

(Added to NRS by 1995, 2089; A 1999, 1631; 2005, 2204)

NRS 92A.430  Dissenter’s notice: Delivery to stockholders entitled to assert rights; contents.

1.

 The subject corporation shall deliver a written dissenter’s notice to all stockholders entitled to assert dissenters’ rights.

2.

 The dissenter’s notice must be sent no later than 10 days after the effectuation of the corporate action, and must:

(a)

State where the demand for payment must be sent and where and when certificates, if any, for shares must be deposited;

(b)

Inform the holders of shares not represented by certificates to what extent the transfer of the shares will be restricted after the demand for payment is received;

(c)

Supply a form for demanding payment that includes the date of the first announcement to the news media or to the stockholders of the terms of the proposed action and requires that the person asserting dissenter’s rights certify whether or not he acquired beneficial ownership of the shares before that date;

(d)

Set a date by which the subject corporation must receive the demand for payment, which may not be less than 30 nor more than 60 days after the date the notice is delivered; and

(e)

Be accompanied by a copy of NRS 92A.300 to 92A.500, inclusive.

(Added to NRS by 1995, 2089; A 2005, 2205)

NRS 92A.440  Demand for payment and deposit of certificates; retention of rights of stockholder.

1.

 A stockholder to whom a dissenter’s notice is sent must:

(a)

Demand payment;

(b)

Certify whether he or the beneficial owner on whose behalf he is dissenting, as the case may be, acquired beneficial ownership of the shares before the date required to be set forth in the dissenter’s notice for this certification; and

(c)

Deposit his certificates, if any, in accordance with the terms of the notice.

2.

 The stockholder who demands payment and deposits his certificates, if any, before the proposed corporate action is taken retains all other rights of a stockholder until those rights are cancelled or modified by the taking of the proposed corporate action.

3.

 The stockholder who does not demand payment or deposit his certificates where required, each by the date set forth in the dissenter’s notice, is not entitled to payment for his shares under this chapter.

(Added to NRS by 1995, 2090; A 1997, 730; 2003, 3189)

NRS 92A.450  Uncertificated shares: Authority to restrict transfer after demand for payment; retention of rights of stockholder.

1.

 The subject corporation may restrict the transfer of shares not represented by a certificate from the date the demand for their payment is received.

2.

 The person for whom dissenter’s rights are asserted as to shares not represented by a certificate retains all other rights of a stockholder until those rights are cancelled or modified by the taking of the proposed corporate action.

(Added to NRS by 1995, 2090)

NRS 92A.460  Payment for shares: General requirements.

1.

 Except as otherwise provided in NRS 92A.470, within 30 days after receipt of a demand for payment, the subject corporation shall pay each dissenter who complied with NRS 92A.440 the amount the subject corporation estimates to be the fair value of his shares, plus accrued interest. The obligation of the subject corporation under this subsection may be enforced by the district court:

(a)

Of the county where the corporation’s registered office is located; or

(b)

At the election of any dissenter residing or having its registered office in this State, of the county where the dissenter resides or has its registered office. The court shall dispose of the complaint promptly.

2.

 The payment must be accompanied by:

(a)

The subject corporation’s balance sheet as of the end of a fiscal year ending not more than 16 months before the date of payment, a statement of income for that year, a statement of changes in the stockholders’ equity for that year and the latest available interim financial statements, if any;

(b)

A statement of the subject corporation’s estimate of the fair value of the shares;

(c)

An explanation of how the interest was calculated;

(d)

A statement of the dissenter’s rights to demand payment under NRS 92A.480; and

(e)

A copy of NRS 92A.300 to 92A.500, inclusive.

(Added to NRS by 1995, 2090)

NRS 92A.470  Payment for shares: Shares acquired on or after date of dissenter’s notice.

1.

 A subject corporation may elect to withhold payment from a dissenter unless he was the beneficial owner of the shares before the date set forth in the dissenter’s notice as the date of the first announcement to the news media or to the stockholders of the terms of the proposed action.

2.

 To the extent the subject corporation elects to withhold payment, after taking the proposed action, it shall estimate the fair value of the shares, plus accrued interest, and shall offer to pay this amount to each dissenter who agrees to accept it in full satisfaction of his demand. The subject corporation shall send with its offer a statement of its estimate of the fair value of the shares, an explanation of how the interest was calculated, and a statement of the dissenters’ right to demand payment pursuant to NRS 92A.480.

(Added to NRS by 1995, 2091)

NRS 92A.480  Dissenter’s estimate of fair value: Notification of subject corporation; demand for payment of estimate.

1.

 A dissenter may notify the subject corporation in writing of his own estimate of the fair value of his shares and the amount of interest due, and demand payment of his estimate, less any payment pursuant to NRS 92A.460, or reject the offer pursuant to NRS 92A.470 and demand payment of the fair value of his shares and interest due, if he believes that the amount paid pursuant to NRS 92A.460 or offered pursuant to NRS 92A.470 is less than the fair value of his shares or that the interest due is incorrectly calculated.

2.

 A dissenter waives his right to demand payment pursuant to this section unless he notifies the subject corporation of his demand in writing within 30 days after the subject corporation made or offered payment for his shares.

(Added to NRS by 1995, 2091)

NRS 92A.490  Legal proceeding to determine fair value: Duties of subject corporation; powers of court; rights of dissenter.

1.

 If a demand for payment remains unsettled, the subject corporation shall commence a proceeding within 60 days after receiving the demand and petition the court to determine the fair value of the shares and accrued interest. If the subject corporation does not commence the proceeding within the 60-day period, it shall pay each dissenter whose demand remains unsettled the amount demanded.

2.

 A subject corporation shall commence the proceeding in the district court of the county where its registered office is located. If the subject corporation is a foreign entity without a resident agent in the State, it shall commence the proceeding in the county where the registered office of the domestic corporation merged with or whose shares were acquired by the foreign entity was located.

3.

 The subject corporation shall make all dissenters, whether or not residents of Nevada, whose demands remain unsettled, parties to the proceeding as in an action against their shares. All parties must be served with a copy of the petition. Nonresidents may be served by registered or certified mail or by publication as provided by law.

4.

 The jurisdiction of the court in which the proceeding is commenced under subsection 2 is plenary and exclusive. The court may appoint one or more persons as appraisers to receive evidence and recommend a decision on the question of fair value. The appraisers have the powers described in the order appointing them, or any amendment thereto. The dissenters are entitled to the same discovery rights as parties in other civil proceedings.

5.

 Each dissenter who is made a party to the proceeding is entitled to a judgment:

(a)

For the amount, if any, by which the court finds the fair value of his shares, plus interest, exceeds the amount paid by the subject corporation; or

(b)

For the fair value, plus accrued interest, of his after-acquired shares for which the subject corporation elected to withhold payment pursuant to NRS 92A.470.

(Added to NRS by 1995, 2091)

NRS 92A.500  Legal proceeding to determine fair value: Assessment of costs and fees.

1.

 The court in a proceeding to determine fair value shall determine all of the costs of the proceeding, including the reasonable compensation and expenses of any appraisers appointed by the court. The court shall assess the costs against the subject corporation, except that the court may assess costs against all or some of the dissenters, in amounts the court finds equitable, to the extent the court finds the dissenters acted arbitrarily, vexatiously or not in good faith in demanding payment.

2.

 The court may also assess the fees and expenses of the counsel and experts for the respective parties, in amounts the court finds equitable:

(a)

Against the subject corporation and in favor of all dissenters if the court finds the subject corporation did not substantially comply with the requirements of NRS 92A.300 to 92A.500, inclusive; or

(b)

Against either the subject corporation or a dissenter in favor of any other party, if the court finds that the party against whom the fees and expenses are assessed acted arbitrarily, vexatiously or not in good faith with respect to the rights provided by NRS 92A.300 to 92A.500, inclusive.

3.

 If the court finds that the services of counsel for any dissenter were of substantial benefit to other dissenters similarly situated, and that the fees for those services should not be assessed against the subject corporation, the court may award to those counsel reasonable fees to be paid out of the amounts awarded to the dissenters who were benefited.

4.

 In a proceeding commenced pursuant to NRS 92A.460, the court may assess the costs against the subject corporation, except that the court may assess costs against all or some of the dissenters who are parties to the proceeding, in amounts the court finds equitable, to the extent the court finds that such parties did not act in good faith in instituting the proceeding.

5.

 This section does not preclude any party in a proceeding commenced pursuant to NRS 92A.460 or 92A.490 from applying the provisions of N.R.C.P. 68 or NRS 17.115.

(Added to NRS by 1995, 2092)

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