Document:

ex4_30.htm

    
      

    

    Exhibit
      4.30

    

    
      	 	
              THE
                SECURITIES REPRESENTED BY THIS WARRANT HAVE BEEN ACQUIRED FOR INVESTMENT
                AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
                AMENDED,
                OR ANY APPLICABLE STATE SECURITIES LAW.  THESE SECURITIES MAY
                NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR
                AN
                EXEMPTION THEREFROM UNDER SAID ACT.  ADDITIONALLY, THE TRANSFER
                OF THESE SECURITIES IS SUBJECT TO THE CONDITIONS SPECIFIED IN THAT
                CERTAIN
                LOAN AGREEMENT ATTACHED HERETO (INDIVIDUALLY AND COLLECTIVELY REFERRED
                TO
                HEREIN AS THE “NOTE”), EXECUTED BY BAYWOOD INTERNATIONAL, INC., A NEVADA
                CORPORATION (THE “COMPANY”), AS MAKER, IN FAVOR OF THE LENDER (AS THE SAME
                MAY BE AMENDED AND RESTATED FROM TIME TO TIME).  NO TRANSFER OF
                THESE SECURITIES WILL BE VALID OR EFFECTIVE UNTIL THE CONDITIONS
                OF THE
                NOTE AND THE TERMS OF THIS WARRANT HAVE BEEN FULFILLED. COPIES OF
                THE NOTE
                MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER
                OF RECORD
                OF THIS CERTIFICATE TO THE SECRETARY OF THE COMPANY.

            	 

    

    

    BAYWOOD
      INTERNATIONAL, INC.

    COMMON
      STOCK PURCHASE WARRANT

    

    
      	
              No.
                W – 029

            	
              Issuance
                Date:  April 5, 2005

            

    

    

    

    1.            
      Warrant

    

    1.1           Grant
      of Warrant.  Baywood International, Inc., a Nevada corporation
      (the “Company”), hereby certifies that, for good and valuable consideration, the
      receipt of which is hereby acknowledged, the purchaser of this Warrant, Ira
      J.
      Gaines, (“Holder”), is entitled, subject to the terms set forth below and the
      terms and conditions of the Note attached hereto executed by the Company in
      favor of the Holder, to purchase at the Exercise Price (as defined in Section
      1.2), from the Company at any time or from time to time during the Exercise
      Period (as defined in Section 9), Twenty Thousand (20,000) unregistered shares
      of the Company’s fully paid and non-assessable common stock, par value $0.001
      per share (the “Common Stock”).  Holder acknowledges that the number
      of common shares described in the preceding sentence is the total of all common
      shares that the Holder is entitled to acquire under the Note attached
      hereto.

    

    1.2           Exercise
      Price.  Holder shall pay a per share purchase price of $0.04 for
      each share of the Company’s Common Stock purchased under this Warrant (such
      price per share is referred to herein as the “Exercise Price”).

    

    1.3           Adjustments
      for Issuance of Common Stock and Amount of Outstanding Common
      Stock.  If there shall occur any stock split, stock dividend,
      reverse stock split, or other subdivision of the Company’s Common Stock (“Stock
      Event”), for which the Company receives no new value, then the number of shares
      of Common Stock to be received by the Holder of this Warrant shall be
      appropriately adjusted (upward or downward) so that the proportion of (a) the
      number of shares issuable hereunder, plus the number of shares of Warrant Stock
      (as defined below) held by the Holder of this Warrant, to (b) the total number
      of shares of the Company (on a fully diluted basis) prior to such Stock Event
      is
      equal to the proportion of (x) the number of shares issuable hereunder, plus
      the
      number of shares of Warrant Stock held by the Holder of this Warrant after
      such
      Stock Event to (y) the total number of shares of the Company (on a fully diluted
      basis) after such Stock Event.  No adjustment to the Exercise Price
      shall be made in connection with any adjustment of the number of shares of
      Common Stock receivable upon exercise of this Warrant, except that the Exercise
      Price shall be proportionally decreased or increased upon the occurrence of
      any
      stock split, stock dividend, reverse stock split or other subdivision of the
      Common Stock so that the aggregate Exercise Price payable if the Warrant was
      exercised in full shall be the same both before and after the Stock Event;
      provided, however, that in no event will the Exercise Price be less than the
      par
      value of the Common Stock.  The provisions of this Section 1.3 shall
      not apply if the Company issues its Common Stock or other securities for new
      consideration or if it repurchases its own shares.  For purposes of
      this Section 1.3, “Warrant Stock” means shares of Common Stock issued to the
      Holder upon the partial exercise of this Warrant.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    2.            
      Exercise of Warrant.

    

    2.1           Exercise.  This
      Warrant may be exercised, prior to its expiration pursuant to Section 2.3,
      by
      the Holder hereof at any time or from time to time during the Exercise Period
      (as defined in Section 9), by surrender of this Warrant, with the form of
      subscription at the end hereof duly executed by such holder, to the Company
      at
      its principal office, accompanied by payment, by certified or official bank
      check payable to the order of the Company or by wire transfer to its account,
      in
      the amount obtained by multiplying the number of shares of Common Stock for
      which this Warrant is then being exercised by the Exercise Price.  In
      the event the Warrant is not exercised in full, the Company, at its expense,
      will forthwith issue and deliver to, or upon the order of, the Holder hereof
      a
      new Warrant or Warrants of like tenor, in the name of the holder hereof or
      as
      such Holder (upon payment by such Holder of any applicable transfer taxes)
      may
      request, having in the aggregate in Section 1.1 thereof the number of shares
      of
      Common Stock equal (subject to any adjustment provided for herein) to the number
      of such shares called for in Section 1.1 of this Warrant minus the number of
      such shares (subject to any adjustment provided for herein) for which this
      Warrant shall have been exercised.  Upon exercise of this Warrant in
      accordance with this Section 2.1, the Holder shall be, and shall be deemed
      to
      be, for all purposes, a holder of record of the number of shares of Common
      Stock
      for which this Warrant has been exercised, notwithstanding any delay or failure
      of the Company to issue stock certificates as provided in Section 3
      hereof.  Immediately upon exercise, the Holder shall have the right to
      vote on all matters on which holders of Common Stock have a right to vote,
      shall
      be deemed a record holder for the purposes of voting, dividends or any other
      distributions, and shall have all other rights of a stockholder of record under
      the laws of the State of Nevada.  Upon any exercise of this Warrant,
      in whole or in part, the Holder shall pay the aggregate Exercise Price with
      respect to the shares of Common Stock for which this Warrant is then being
      exercised (collectively, the “Exercise Shares”) by payment of cash in the form
      referred to in the first sentence of this Section 2.1.

    

    2.2           Class
      of Stock Receivable Upon Exercise.  If at the time of exercise the
      Company has more than one class of Common Stock outstanding, the shares of
      Common Stock receivable upon exercise of this Warrant shall be the shares of
      Common Stock designated herein upon such exercise by the Holder.  If
      at any time the Common Stock to which this Warrant is applicable is converted
      into any other class of stock (“Other Securities”), this Warrant shall continue
      in force and effect and shall be applicable with respect to such Other
      Securities.

    

    
      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

    

    2.3           Termination.  This
      Warrant shall terminate upon the earlier to occur of (a) the exercise in full,
      or (b) at 5:00 p.m. (Phoenix Time) on April 5, 2008.

    

    3.            
      Delivery of Stock Certificates on Exercise.

    

    3.1           Delivery.  As
      soon as practicable after the exercise of this Warrant in full or in part,
      and
      in any event within seven business days thereafter, the Company, at its expense
      (including the payment by it of any applicable issue taxes), will cause to
      be
      issued in the name of and delivered to the Holder hereof, or as such Holder
      (upon payment by such holder of any applicable transfer taxes) may direct,
      a
      certificate or certificates for the number of fully paid and non-assessable
      shares of Common Stock (or Other Securities (as defined in Section 2.2)) to
      which such Holder shall be entitled on such exercise, together with any other
      stock or other securities and property (including cash, where applicable) to
      which such holder is entitled upon such exercise.

    

    3.2           Legend.  The
      Company may cause the following legend to be set forth on each certificate
      representing shares of Common Stock acquired under this Warrant or any other
      security issued or issuable upon the exercise of this Warrant, unless counsel
      for the Company is of the opinion as to any such certificate that such legend
      is
      unnecessary:

    

    THE
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT
      OF 1933 (THE “ACT”) OR APPLICABLE STATE LAW AND MAY NOT BE OFFERED, SOLD OR
      OTHERWISE TRANSFERRED, PLEDGED, OR HYPOTHECATED UNLESS REGISTERED UNDER THE
      ACT
      AND STATE LAW, OR, UNLESS IN THE OPINION OF COUNSEL, IN FORM AND SUBSTANCE
      SATISFACTORY TO THE ISSUER OF THE SECURITIES, SUCH OFFER, SALE, OR TRANSFER,
      PLEDGE OR HYPOTHECATION IS EXEMPT FROM REGISTRATION.

    

    3.3           Fractional
      Shares.  In the event that the exercise of this Warrant, in
      whole  or in part, results in the issuance of any fractional share of
      Common Stock, then in such event the Holder shall be entitled to cash equal
      to
      the fair market value of such fractional share as determined in good faith
      by
      the Company’s Board of Directors.

    

    4.            
      Continuation of Terms.  Upon any reorganization, consolidation,
      merger or transfer (and any dissolution following any transfer) of the Company,
      this Warrant shall continue in full force and effect and the terms hereof shall
      be applicable to the shares of stock and other securities and property
      receivable on the exercise of this Warrant after the consummation of such
      reorganization, consolidation or merger, or the effective date of dissolution
      following any such transfer, as the case may be, and shall be binding upon
      the
      issuer of any stock or other securities, including, in the case of any such
      transfer, the person acquiring all or substantially all of the properties or
      assets of the Company, whether or not such person shall have expressly assumed
      the terms of this Warrant.

    

    5.            
      No Impairment; No Preemptive Rights.  The Company will not, by
      amendment of its Articles of Incorporation (or similar documents) or through
      any
      reorganization, transfer of assets, consolidation, merger, dissolution, issue
      or
      sale of securities or any other voluntary action, avoid or seek to avoid the
      observance or performance of any of the terms of the Warrant, but will at all
      times in good faith assist in the carrying out of all such terms and in the
      taking of all such action as may be necessary or appropriate in order to protect
      the rights of the holder of the Warrant.  Nothing in this Warrant
      shall grant (or be construed to grant) Holder any preemptive or other
      preferential rights with respect to the issuance of any class of the Company
      debt or equity securities.

    

    
      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

    

    

    6.            
      Notices.  In the event of:

    

    (a)           any
      capital reorganization of the Company, any reclassification or recapitalization
      of the capital stock of the Company or any transfer of all or substantially
      all
      the assets of the Company to or any consolidation or merger of the Company
      with
      or into any other Person; or

    

    (b)           any
      voluntary or involuntary dissolution, liquidation or winding-up of the Company;
      then, and in each such event, the Company will mail or cause to be mailed to
      the
      holder of this Warrant a notice specifying the date on which any such
      reorganization, reclassification, recapitalization, transfer, consolidation,
      merger, dissolution, liquidation or winding-up is anticipated to take place,
      and
      the time, if any is to be fixed, as of which the holders of record of Common
      Stock (or Other Securities) shall be entitled to exchange their shares of Common
      Stock (or Other Securities) for securities or other property deliverable on
      such
      reorganization, reclassification, recapitalization, transfer, consolidation,
      merger, dissolution, liquidation or winding-up.  Such notice shall be
      mailed at least 15 days prior to the date specified in such notice on which
      any
      such record or other action is to be taken.

    

    7.            
      Reservation of Stock Issuable on Exercise of Warrant.  The
      Company will at all times reserve and keep available, solely for issuance and
      delivery on the exercise of this Warrant, a number of shares of Common Stock
      equal to the total number of shares of Common Stock from time to time issuable
      upon exercise of this Warrant, and, from time to time, will take all steps
      necessary to amend its Articles of Incorporation to provide sufficient reserves
      of shares of Common Stock issuable upon exercise of this Warrant, which is
      not
      reflected on its corporate register and which is not in compliance with federal
      and state securities laws.

    

    8.            
      Registered Form.  This Warrant shall be in registered form only
      in accordance with the Note.  The Company shall treat the person
      reflected on its corporate register as the Holder of the Warrant.  The
      Company shall not be obligated to recognize any transfer of this Warrant which
      is not reflected in its corporate register and which is not in compliance with
      federal and state securities laws.

    

    9.             Definitions.  As
      used herein the following terms, unless the context otherwise requires, have
      the
      following respective meanings:

    

    (a)           The
      term “Common Stock” includes (i) the Company’s Common Stock, par value $0.001
      per share (the “Common Stock”), (ii) any other capital stock of any class or
      classes (however designated) of the Company, the holders of which shall have
      the
      right, without limitation as to amount, either to all or to a share of the
      balance of current dividends and liquidating dividends after the payment of
      dividends and distributions on any shares entitled to preference, and (iii)
      any
      other securities into which or for which any of the securities described in
      clauses (i) or (ii) above have been converted or exchanged pursuant to a plan
      of
      recapitalization, reorganization, merger, sale of assets or
      otherwise.

    

    (b)           The
      term “Exercise Period” shall mean the period beginning on the date of issuance
      and ending at 5:00 p.m. on April 5, 2008.

    

    (c)           The
      term “Warrant Stock” means shares of Common Stock issued to the holder upon the
      exercise of this Warrant.

    

    (d)           The
      term “Other Securities” shall have the meaning stated in Section
      2.2.

    

    
      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

    

    

    10.           
      Warrant Agent.  The Company may, by written notice to the
      holder of this Warrant, appoint an agent having an office in Phoenix, Arizona
      for the purpose of issuing Common Stock on the exercise of this Warrant pursuant
      to Section 2 hereof, or any of the foregoing, and thereafter any such issuance,
      exchange or replacement, as the case may be, shall be made at such office by
      such agent.

    

    11.           
      Promissory Note.  This Warrant is issued pursuant to the terms
      and conditions of the aforementioned Note and shall be subject to all terms
      and
      conditions thereof pertaining to the Company’s issuance of
      Warrants.

    

    12.           
      Accredited Investor.  The Holder of this Warrant is an
“Accredited Investor” as such term is defined in the Securities Act of 1933 and
      any regulation issued thereunder.  By accepting this Warrant, the
      Holder represents and warrants to the Company that he is an Accredited Investor,
      as defined above.

    

    13.           
      Remedies.  The Company stipulates that the remedies at law of
      the holder of this Warrant in the event of any default or threatened default
      by
      the Company in the performance of or compliance with any of the terms of this
      Warrant are not and will not be adequate, and that such terms may be
      specifically enforced by a decree for the specific performance of any agreement
      contained herein or by an injunction against a violation of any of the terms
      hereof or otherwise.

    

    14.           
      Benefit.  This Warrant shall be binding upon, and inure solely
      to the benefit of the Company and Holder and no other person shall acquire
      or
      have any right under or by virtue of this Warrant.

    

    15.           
      Registration Rights.  Subject to the limitations of this
      Section, the Company agrees to register shares of Warrant Stock, upon the
      request of Holder, if the Company files a registration statement under the
      Securities Act of 1933 (“the Act”), which relates to a current offering of the
      Company’s Common Stock (except a registration statement filed in connection with
      an offering of the Company’s equity securities to its employees pursuant to any
      employee benefit or stock option plan or any dividend reinvestment plan
      maintained or pursuant to a merger agreement or agreement to acquire the assets
      of another entity or similar transaction) so as to permit the public sale of
      the
      Warrant Stock by the Holder in compliance with the Act.  The Company
      shall give written notice (the “Registration Notice”) to Holder of its intention
      to file a registration statement under the Act relating to an offering of its
      Common Stock not less than sixty (60) days prior to the filing of such
      registration statement with the Securities and Exchange Commission
      (“SEC”).  The Holder may request that the Company include all or a
      portion of his Warrant Stock in such registration statement, only if such
      request is made not later than thirty (30) days prior to the date specified
      in
      the Registration Notice as the date on which the Company intends to file its
      registration statement with the SEC.  Neither the Company’s delivery
      of the Registration Notice nor the delivery of a request by Holder for
      registration of Warrant Stock shall obligate the Company to file a registration
      statement and, notwithstanding the filing of a registration statement, the
      Company may at any time prior to the effective date determine not to offer
      the
      securities described in the registration statement, and may withdraw the
      registration statement without liability to any Holder of Warrant
      Stock.  In that event, the Company shall pay all expenses of the
      registration statement incurred through the date it is withdrawn.  The
      Company shall pay the entire cost of any Registration Statement covering Warrant
      Stock, including, without limitation, attorneys’ fees, accounting fees, filing
      fees and printing costs, but excluding any underwriter’s
      discount.  The Holder shall be solely responsible for any underwriter
      discount on Warrant Stock sold by the Holder.  Any Warrant Stock
      included in a registration statement filed by the Company shall be subject
      to
      underwriter cutbacks and any other limitations an underwriter, in its
      discretion, may impose on the inclusion of such Warrant Stock in the
      registration statement.

    

    
      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

    

    

    16.           
      Notices.  All notices and other communications from the Company
      to the holder of this Warrant shall be mailed by first class registered or
      certified mail, postage prepaid, or sent by overnight courier (or sent in the
      form of a telecopy) at the following addresses:

    

    
      	 	
              If to Company:

            	
              Baywood
                International, Inc.

            
	 	 	
              14950
                North 83rd Place, Suite 1

            
	 	 	
              Scottsdale,
                Arizona  85260

            
	 	 	
              Attn:  Mr.
                Neil Reithinger, President & C.E.O.

            
	 	 	
              Facsimile:  (480)483-2168

            

    

    

    
      	 	
              If
                to Holder:

            	
              Ira
                J. Gaines

            
	 	 	
              3116
                East Shea Blvd., #191

            
	 	 	
              Phoenix,
                AZ  85028

            
	 	 	
              Facsimile:  (602)870-9122

            

    

    

    17.          
       Severability.  In case any provision of this Warrant
      shall be invalid, illegal or unenforceable, or partially invalid, illegal or
      unenforceable, the provision shall be enforced to the extent, if any, that
      it
      may legally be enforced and the validity, legality and enforceability of the
      remaining provisions shall not in any way be affected or impaired
      thereby.

    

    18.          
       Integration.  This Warrant and any term hereof may be
      changed, waived, discharged or terminated only by a statement in writing signed
      by the party against which enforcement of such change, waiver, discharge or
      termination is sought.  The parties waive any common law right to
      orally modify this Warrant.

    

    19.          
       Choice of Law.  This Warrant shall be governed by and
      construed in accordance with the domestic substantive laws (and not the conflict
      of law rules) of the State of Nevada.

    

    20.         
        Headings.  The headings in this Warrant are for
      purposes of reference only, and shall not limit or otherwise affect any of
      the
      terms hereof.

    

    IN
      WITNESS WHEREOF, the Company has caused this Common Stock Purchase Warrant
      to be
      executed by its duly authorized officer and attested by its
      Secretary.

    

    Dated
      as
      of April 5, 2005

    

    Baywood
      International, Inc., a Nevada corporation

    

    
      	 	
              By: 
                

            	 	 
	 	 	
              Neil
                Reithinger

            	 
	 	 	
              President
                & C.E.O.

            	 

    

    Attest:

    

    _______________________________

    

    _______________________,
      Secretary

     

     

    6ex4_31.htm

    
      

    

    EXHIBIT
      4.31

    SUBSCRIPTION
      AGREEMENT

    

    THE
      SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED OR UNDER ANY STATE ACTS AND MAY NOT BE SOLD, TRANSFERRED,
      PLEDGED, OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
      UNDER SUCH ACTS OR AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY TO THE EFFECT
      THAT REGISTRATION IS NOT REQUIRED.

    

    THIS
      AGREEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER
      TO BUY ANY SECURITY OTHER THAN THE SECURITIES OFFERED HEREBY, NOR DOES IT
      CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY SUCH SECURITIES
      BY ANYONE IN ANY JURISDICTION IN WHICH SUCH OFFER OR SOLICITATION IS NOT
      AUTHORIZED, OR IN WHICH THE PERSON MAKING SUCH OFFER OR SOLICITATION IS NOT
      QUALIFIED TO DO SO.

    

    
      	
              To
                the Board of Directors

            	
              Dated
                as of

            
	
              Baywood
                International, Inc.

            	
              December
                ____, 2005

            

    

    14950
      North 83rd Place, Suite 1

    Scottsdale,
      Arizona  85260

    

    Ladies
      and Gentlemen:

    

    1.  Subscription
      and Payment.  The undersigned hereby subscribes for and
      agrees to accept the issuance of the number of shares of Series H
      Preferred Stock (the “Shares”) of Baywood International, Inc., a
      Nevada corporation (the “Company”), at the price of $1.00 per Share or an
      aggregate purchase price as set forth on the signature page hereof (“Purchase
      Price”).  Additionally, if the subscription agreement is accepted
      by the Company, the undersigned will receive a three-year warrant entitling
      the
      undersigned to purchase up to that number of shares of the Company’s common
      stock that is equal to the number of such shares of common stock that could
      be
      purchased under the following graduated exercise price schedule and equal to
      50%
      of the Purchase Price:

    

    
      	
               

            	
              ·

            	
              25%
                of warrant shares at exercise price of
                $0.02

            

    

    
      	
               

            	
              ·

            	
              25%
                of warrant shares at exercise price of
                $0.04

            

    

    
      	
               

            	
              ·

            	
              25%
                of warrant shares at exercise price of
                $0.08

            

    

    
      	
               

            	
              ·

            	
              25%
                of warrant shares at exercise price of
                $0.12

            

    

    

    For
      example, if the undersigned subscribes for $200,000 of Shares, the undersigned
      would receive 200,000 Shares and a warrant entitling the undersigned to purchase
      1,250,000 shares of common stock at an exercise price of $0.02 per share (50%
      x
      $200,000 x 25% / $0.02), 625,000 shares of common stock at $0.04 per share
      (50%
      x $200,000 x 25% / $0.04), 312,500 shares of common stock at $0.08 per share
      (50% x $200,000 x 25% / $0.08) and 208,333 shares of common stock at $0.12
      per
      share (50% x $200,000 x 25% / $0.12).

    

    The
      common stock underlying the warrants would be redeemable in tranches for $0.01
      per share of common stock by the Company at the Company’s discretion if the
      Company’s common stock as listed on the OTCBB or another national exchange has a
      closing price equal to 300% of the then-current exercise price for 30
      consecutive trading days for that particular tranche of the common shares
      underlying the warrant.  Using the same example above, if the
      Company’s closing price on the OTCBB was $0.12 for 30 consecutive trading days,
      the Company would be entitled, if not previously exercised, to redeem 50% of
      the
      total common shares underlying the warrant (i.e., the 25% at $0.02 exercise
      price tranche and the 25% at $0.04 exercise price tranche) for a total
      redemption price of $18,750 (1,250,000 + 625,000 x $0.01).

    

    The
      undersigned is delivering, with this subscription agreement, payment for the
      Shares by check payable to “Baywood International, Inc.” or by wire transfer
      payable against delivery of the certificate representing the
      Shares.  The undersigned understands and agrees that the Company has
      the right to accept or reject this subscription, in whole or in part, and this
      subscription shall be deemed accepted only when signed by a representative
      of
      the Company.  The undersigned agrees that the Company need not accept
      subscriptions in the order received.  If the Company learns after the
      undersigned has been admitted as a stockholder of the Company that the
      undersigned has misrepresented any information in any of the documents the
      undersigned submitted to the Company in connection with this subscription,
      then
      in addition to other rights available to the Company, the Company will have
      the
      right to acquire the undersigned’s Shares for a price equal to the undersigned’s
      subscription payment.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.  Cancellation
      of Subscription Agreement.  The undersigned has no right to
      cancel, revoke or withdraw this subscription, except as may be provided under
      applicable securities laws.

    

    3.  Conditions.  This
      offer is made subject to the condition that the Shares, when issued, will be
      validly issued, fully paid, and non-assessable and that the Company is duly
      organized, validly existing, and in good standing under the laws of
      Nevada.

    

    4.  Representations,
      Warranties, Covenants, and Acknowledgements.  To induce the
      Company to accept this subscription and to issue the Shares to the undersigned
      and knowing that the Company is relying upon the truth and accuracy of the
      following in issuing the Shares and establishing compliance with applicable
      federal, provincial and state securities laws, the undersigned hereby
      represents, warrants, covenants, and acknowledges to the Company
      that:

    

    (A)           The
      undersigned has full power and capacity to execute, deliver, and perform under
      this subscription agreement.  This subscription agreement is the legal
      and binding obligation of and is enforceable against the undersigned in
      accordance with its terms.  The execution and delivery of this
      subscription agreement, the consummation of the transactions contemplated
      hereby, and the fulfillment of the terms hereof, will not result in the breach
      of any term or provision of, or constitute a default under, or conflict with,
      or
      cause the acceleration of any obligation under, any agreement or other
      instrument of any description to which the undersigned is a party or by which
      the undersigned is bound, or any judgment, decree, order or award of any court,
      governmental body, or arbitrator, or any applicable law, rule or
      regulation.

    

    (B)           The
      undersigned understands and has been advised by the Company that the business
      activities of the Company and an investment in the Company is speculative and
      subject to substantial risks, including the risks set forth in the Company’s
      Securities and Exchange Commission (“SEC”) filings, including, without
      limitation, the Company’s Form 10-KSB dated May 12, 2005 and Form 10-QSB dated
      November 21, 2005 (the “SEC Filings”) and there can be no guaranty of the
      amount of or type of profit or loss to be realized, if any, as a result in
      an
      investment in the shares.

    

    (C)           The
      undersigned has been given access to full and complete information regarding
      the
      Company and has utilized such access to the undersigned’s satisfaction for the
      purpose of obtaining such information regarding the Company as the undersigned
      has reasonably requested.  In particular, the undersigned has received
      and thoroughly read and evaluated the (i) Company’s SEC Filings, including the
      exhibits thereto, and (ii) has been given reasonable opportunity to review
      such
      documents as the undersigned has requested and to ask questions of, and to
      receive answers from, representatives of the Company concerning the terms and
      conditions of the Shares and the business and affairs of the Company and to
      obtain any additional information concerning the Company’s business to the
      extent reasonably available so as to understand more fully the nature of the
      investment and to verify the accuracy of the information supplied.

    

    (D)           The
      undersigned represents that they have consulted with a qualified attorney,
      tax
      advisor, or accountant or have elected not to do so, and understands the income
      tax aspects of its investment in the Shares.  The undersigned, in
      determining to purchase the Shares, and if the undersigned consulted the
      undersigned’s legal counsel, tax advisor, accountants or other advisors (i) has
      been encouraged and has had the opportunity to rely upon the advice of the
      undersigned’s legal counsel, accountants, tax advisor and other advisors with
      respect to the purchase of the Shares, and (ii) has relied solely upon the
      advice of the undersigned’s legal counsel, accountants, tax advisors or other
      financial advisors with respect to the financial, tax, and other considerations
      relating to the purchase of the Shares.  The undersigned acknowledges
      that neither the Company nor anyone on behalf of the Company has made any
      representations to the undersigned regarding the tax consequences of an
      investment in the Shares.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (E)           The
      undersigned and his, her, or its personal advisors have received from the
      Company all requested documents, records, and books pertaining to the investment
      in the Shares so as to enable them to evaluate the merits and risks of this
      investment.  The undersigned understands and acknowledges that all
      documents were prepared by the Company and that no independent legal counsel,
      accountant, or financial advisor has passed upon or assumed any responsibility
      for the accuracy, completeness or fairness of information provided to the
      undersigned and no independent legal counsel, accountant, or financial advisor
      has independently verified or investigated in any way the accuracy, completeness
      or fairness of such information.

    

    (F)           The
      undersigned was not offered or sold the Shares, directly or indirectly, by
      means
      of any form of general advertising or general solicitation, including, but
      not
      limited to (i) any advertisement, article, notice, or other communication
      published in a newspaper, magazine, or similar medium of communication or
      broadcast over television or radio; or (ii) any seminar or meeting whose
      attendees have been invited by any general solicitation or general
      advertising.

    

    (G)           The
      undersigned (i) can bear the economic risk of the purchase of the Shares,
      including the total loss of the undersigned’s investment; (ii) has such
      knowledge and experience in business and financial matters as to be capable
      of
      evaluating the merits and risks of an investment in the Shares, or the
      undersigned is being advised by others (acknowledged by the undersigned as
      being
      the “Purchaser Representative(s)” of the undersigned) such that they and the
      undersigned together are capable of making such evaluation; and (iii)
      understands the non-liquid nature of an investment in the Shares.  The
      undersigned acknowledges and understands that the Shares are a speculative
      investment that involves a high degree of risk and there can be no guarantee
      of
      the amount of or type of consideration, profit or loss to be realized, if any,
      as a result of an investment in the Shares.

    

    (H)           The
      undersigned is presently a bona fide resident of the state listed below and
      has
      no present intention of becoming a resident of any other state or jurisdiction,
      and the address and Social Security Number or Employer Identification Number
      set
      forth below are the undersigned’s true and correct residential or business
      address and Social Security Number or Employer Identification
      Number.

    

    (I)           The
      undersigned (i) if an individual, is at least 21 years of age; (ii) if an
      individual, is a resident of the United States; (iii) has adequate means of
      providing for the undersigned’s current needs and personal contingencies; (iv)
      has no need for liquidity in the undersigned’s investments; (v) maintains the
      undersigned’s principle residence or business at the address shown below; (vi)
      warrants that all investments in and commitments to non-liquid investments
      are,
      and after the undersigned’s purchase of the Shares will be, reasonable in
      relation to the undersigned’s net worth and current needs; and (vii) warrants
      that any financial information that is provided herewith by the undersigned,
      or
      is subsequently submitted by the undersigned at the request of the Company,
      does
      or will accurately reflect the undersigned’s financial condition with respect to
      which the undersigned does not anticipate any material adverse
      change.

    

    (J)           The
      undersigned acknowledges that the Company, based upon representations made
      by
      the undersigned, is relying on exemptions from the registration requirements
      of
      the Securities Act of 1933, as amended (the “Securities Act”), and
      afforded by applicable state statutes and regulations.

    

    (K)           The
      undersigned certifies that he, she or it is an “accredited investor” as that
      term is defined under Rule 501(a) of Regulation D promulgated under the
      Securities Act of 1933.  At the option of the Company, the undersigned
      agrees to complete and deliver to the Company evidence in order to enable the
      Company to verify the undersigned’s status as an accredited investor under the
      Securities Act.

    

    (L)           The
      undersigned understands that the Shares have not been and will not be registered
      under the Securities Act or the securities laws of any state and are subject
      to
      substantial restrictions on transfer.

    

    (M)   The
      undersigned
      acknowledges and agrees that the Shares are being acquired for the undersigned’s
      own account without a view to public distribution, transfer, resale, or
      assignment and that the undersigned has no contract, undertaking, agreement,
      or
      arrangement to sell or otherwise transfer or dispose of the Shares or any
      portion thereof to any other person.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (N)           The
      undersigned (i) agrees that the undersigned will not sell or otherwise transfer
      or dispose of the Shares or any portion thereof unless such Shares are
      registered under the Securities Act and any applicable state securities laws
      or
      the undersigned obtains an opinion of counsel that is satisfactory to the
      Company that such Shares may be sold in reliance on an exemption from such
      registration requirements, and (ii) understands that the certificate(s)
      evidencing the Shares, if any, will be endorsed with a legend to that
      effect.

    

    (O)           The
      undersigned understands that (i) the Company has no obligation or intention
      to
      register the Shares for resale or transfer under the Securities Act or any
      state
      securities laws, or to take any action (including the filing of reports or
      the
      publication of information as required by Rule 144 under the Securities Act)
      which would make available any exemption from the registration requirements
      of
      any such laws; and (ii) the undersigned therefore may be precluded from selling
      or otherwise transferring or disposing of the Shares for an indefinite period
      of
      time or at any particular time.

    

    (P)           The
      undersigned understands that, except upon certain limited circumstances, the
      restrictions on the sale, transfer, and disposition of the Shares will also
      apply to any and all shares of capital stock or other securities issued or
      otherwise acquired with respect to the Shares including, without limitation,
      any
      other shares or securities issued or acquired as a result of any stock dividend,
      stock split or exchange or any distribution of shares or securities pursuant
      to
      any corporate reorganization, reclassification or similar event.

    

    (Q)           The
      undersigned understands that no federal or state agency, including the SEC
      or
      the securities commission or authorities of any other state, has approved or
      disapproved the Shares, passed upon or endorsed the merits of the offering,
      or
      made any finding or determination as to the fairness of the Shares for
      investment.

    

    (R)           The
      undersigned is not subject to back-up withholding provisions of Section
      3406(a)(1) of the Internal Revenue Code.

    

    (S)           If
      subject to the Employee Retirement Income Security Act (“ERISA”), the
      undersigned is aware of and has taken into consideration the diversification
      requirements of Section 404(a)(3) of ERISA in determining to purchase the Shares
      and the undersigned has concluded that the purchase of the Shares is
      prudent.

    

    (T)           The
      undersigned represents, warrants and agrees that, if the undersigned is
      acquiring the Shares in a fiduciary capacity, (i) these representations,
      warranties, agreements, acknowledgments, and understandings shall be deemed
      to
      have been made on behalf of the person or persons for whose benefit such Shares
      are being acquired, (ii) the name of such person or persons is indicated below
      under the subscriber’s name, and (iii) such further information as the Company
      deems appropriate shall be furnished regarding such person or
      persons.

    

    (U)           Neither
      the Company nor any person representing or acting on behalf of the Company,
      or
      purportedly representing or acting on behalf of the Company, has made any
      representations, warranties, agreements or statements other than those contained
      herein that influenced or affected the undersigned’s decision to purchase the
      Shares, nor has the undersigned relied on any representations, warranties,
      agreements or statements in the belief that they were made on behalf of any
      of
      the forgoing, nor has the undersigned relied on the absence of any such
      representations, warranties, agreements or statements in reaching the decision
      to purchase the Shares.

    

    (V)           The
      foregoing representations and warranties are true and accurate as of the date
      hereof and shall survive the delivery of payment for the Shares.  The
      undersigned understands that the Shares are being offered and sold in reliance
      on specific exemptions from the registration requirements of federal and state
      laws and that the Company is relying upon the truth and accuracy of the
      representations, warranties, agreements, acknowledgements and understandings
      set
      forth herein in order to determine the suitability of the undersigned to acquire
      Shares.  The undersigned agrees promptly to notify the Company of any
      changes to any of the foregoing.

    

    (W)           The
      undersigned acknowledges that the Company has the unconditional right to accept
      or reject this subscription and that (i) if Company accepts this subscription,
      the funds received by the Company will be deposited into an ordinary checking
      account of the Company and not an escrow account and may become commingled
      with
      other funds of the Company and the Company has the unconditional right to apply
      the proceeds thereof in any manner, and (ii) if the Company rejects this
      subscription or if the offering is terminated or withdrawn prior to acceptance
      of this subscription, the funds deposited by the undersigned will be refunded
      promptly without interest.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    5. Covenants
      and Indemnity.

    

    (A)           The
      foregoing representations and warranties, together with all other
      representations and warranties made or given by the undersigned to the Company
      in connection with the transactions contemplated hereby, shall be true and
      correct in all respects on the date of closing of the purchase hereunder as
      if
      made on such date and shall survive such date.

    

    (B)           The
      undersigned agrees to indemnify and hold harmless the Company from and against
      any loss, damage or liability due to or arising out of a breach of any of the
      representations and warranties set forth in Section 4 of this
      subscription agreement.

    

    6.  Miscellaneous.

    

    (A)           This
      subscription agreement will be deemed to have been executed and delivered in,
      and will be governed by and construed in accordance with, the internal laws
      of
      the State of Arizona, notwithstanding any Arizona or other conflicts-of-law
      provisions to the contrary.  The undersigned acknowledges and agrees
      that any action or proceeding of any kind against the undersigned arising out
      of
      or by reason of this subscription may be brought in any federal or state court
      of competent jurisdiction located in the State of Arizona, and hereby
      irrevocably consents to the jurisdiction of any such court.

    

    (B)           This
      subscription agreement and the rights, powers and duties set forth herein will
      be binding upon the undersigned, the undersigned’s heirs, estate, legal
      representatives, successors, and permitted assigns and will inure to the benefit
      of the Company, its successors and assigns.

    

    (C)           If
      any provision of this subscription agreement is invalid or unenforceable under
      any applicable statute or rule of law, then such provision will be deemed
      inoperative to the extent that it may conflict therewith and will be deemed
      modified to conform with such statute or rule of law, but such provision will
      not affect the validity or enforceability of any other provision
      hereof.

    

    (D)           This
      subscription agreement may be executed through the use of separate signature
      pages or in any number of counterparts, and each of such counterparts shall,
      for
      all purposes, constitute one agreement binding on all parties, notwithstanding
      that all parties are not signatories to the same counterpart.

    

    (E)           This
      subscription agreement contains the entire agreement of the parties with respect
      to its subject matter and supersedes all prior agreements, understandings or
      arrangements between the parties, whether written or oral, with respect to
      the
      subject matter hereof and there are no representations, warranties, covenants
      or
      other agreements except as stated or referred to herein with regard to its
      subject matter.

    

    7.  Right
      of First Offer.  In the event the Company issues equity
      securities, the undersigned will be permitted to participate in such issuance
      in
      order to maintain the undersigned’s fully-diluted percentage interest
      immediately prior to the offering.  This right will not apply to
      equity issuances to employees or consultants for compensatory purposes pursuant
      to a plan or agreement approved by the board of directors or for issuances
      in
      connection with strategic partnerships or any issuance that is not intended
      for
      capital raising purposes.

    

    8. Registration
      Rights.  The Company will use its best efforts to register,
      within a reasonable time following the closing of the sale of the Shares to
      all
      parties, the shares of common stock underlying the Shares and the warrant for
      resale with the Securities and Exchange Commission using a registration
      statement on Form SB-2 or a then-applicable form that the Company is eligible
      to
      use provided that such efforts do not subject the Company to federal or state
      securities law violations.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    BAYWOOD
      INTERNATIONAL, INC.

    SUBSCRIPTION
      AGREEMENT SIGNATURE PAGE

    

    IN
      WITNESS WHEREOF, intending to irrevocably bind the undersigned and the
      personal representatives, successors, and assigns of the undersigned and to
      be
      bound by this, the undersigned is executing this document on December ____,
      2005.

    

    The
      undersigned subscribes to purchase ____________ shares of Series H Preferred
      Stock, $1.00 par value per share, of the Company, in consideration for an
      aggregate purchase price of $_____________.

    

    
      	
              Name(s)
                in which Shares are to be registered:

            	 

    

    Check
      One:

     

    
      
        	 	
                 ̈

              	
                Individual
                  ownership

              

      

      
        	 	
                 ̈

              	
                Corporation,
                  Partnership, or Limited Liability
                  Company

              

      

      
        	 	
                 ̈

              	
                Trust

              	 

      

      
        	 	
                 ̈

              	
                Other
                  (describe)

              	 

      

    

     

    Each
      Co-Subscriber (other than a spouse) must complete and sign a separate
      Agreement.

    

    If
      the subscriber has a United States Social Security Number or a United States
      Employer Identification Number, please list the applicable number for each
      such
      Subscriber: _______________________________

    

    
      	
              Country
                of Residence or Principal Place of Business:

            	 

    

     

    
      	
              Residence
                or Principal Place of Business Address:

            	 

    

    

    
      	 	 	 
	
              PRINT
                name of individual who, or entity that, is subscribing.

            	 	
              Signature

            

    

    
      	 	 	 
	 	 	
              Title
                (if fiduciary, etc.)

            
	 	 	 
	 	 	 
	
              PRINT
                name of Co-Subscriber if the Shares are to be held as joint tenants,
                community property, or tenants in common.

            	 	
              Signature
                of Co-Subscriber

            
	 	 	 
	 	 	
              Title
                (if fiduciary, etc.)

            

    

     

     

    
      
        	
                _____

              	
                (Please
                  Initial)

              	
                By
                  signing above and initialing to the left, the subscriber (and any
                  co-subscriber) represents and warrants to the Company that they
                  have read,
                  understood and acknowledged the risks and uncertainties involved
                  in an
                  investment in the Shares as described and set forth in the Company’s SEC
                  Filings.

              

      

      

      
        	
                _____

              	
                (Please
                  Initial)

              	
                By
                  signing above and initialing to the left, the subscriber (and any
                  co-subscriber) represents and warrants to the Company that they
                  have read
                  and understood the Company’s Certificate of Incorporation and the
                  Company’s Bylaws attached as exhibits to the Company’s SEC
                  Filings.

              

      

    

     

    

    
      	
              ACCEPTED
                ON __________________ ___, 200___.

            	 
	
              BAYWOOD
                INTERNATIONAL, INC.

            	 
	
              By:

            	 	 
	
              Name:

            	 	 
	
              Title:

            	 	 

    

     

     

    6

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