Document:

ex4_32.htm

    
      
        
          

        

        Exhibit
          4.32

         

        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 Common
          Stock (the “Shares”) of Baywood International, Inc., a Nevada
          corporation (the “Company”), at the price of $0.02 per Share or an
          aggregate purchase price as set forth on the signature page hereof (“Purchase
          Price”).  The undersigned is delivering with this subscription
          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 10KSB dated May 12, 2005 and Form 10QSB 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.

        

        (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.

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

        (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.

        

        (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.

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

        (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.

        

        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.

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

        (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.

        

        [THE
          REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

        
          
            
            

          

          
            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 Common Stock,
          $.001
          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:

                	 	 

        

      

       

       

      6ex4_33.htm

    
      

    

    Exhibit
      4.33

    STOCK
      REPURCHASE AGREEMENT AND RELEASE

    

    This
      Agreement is dated as of December
      __, 2005, and is by and among CHOI CHEE MING (a/k/a FRANCIS CHOI and hereinafter
      referred to as “Choi”), and BAYWOOD INTERNATIONAL, INC., a Nevada
      corporation (“Baywood”).

    

    Background

     

    Choi
      is the record and beneficial owner
      of the following securities (collectively, the “Securities”) issued by
      Baywood: (1) 800,000 shares of Class E preferred stock, with Stated Value
      (therein defined) of $800,000; (2) 5,625 shares of Class F preferred stock,
      with
      Stated Value (therein defined) of $450,000; and (3) 7,301,587 shares of common
      stock in certificated form.  In addition to the Securities, this
      Agreement pertains equally to $270,294 of dividends or interest, whether payable
      in cash, shares of capital stock, or a combination of cash and stock, in respect
      of the Class E and/or Class F preferred stock (such amount is herein referred
      to
      as the “Contingent Payment Amount”).

    

    Choi
      heretofore served demand upon
      Baywood to have the shares of Class E preferred stock be redeemed by the
      Company, as is provided in the instruments setting forth the terms of the Class
      E preferred stock.  Thereafter, the parties were in a dispute and
      disagreement regarding various matters, including the terms of the preferred
      stock.

    

    Choi
      and Baywood desire to compromise
      amounts claimed by one or another of them, to end all relationships between
      them
      as shareholder (and/or creditor), on the one hand, and issuer (and/or debtor),
      on the other hand.

    

    Agreement

    

    In
      consideration of the premises and
      for other valuable consideration, the sufficiency and receipt of which is hereby
      acknowledged, the parties to this Agreement hereby agree as
      follows:

    

    1.           Upon
      the execution of this Agreement by both parties, Baywood or its designee(s)
      shall pay Choi US$350,000 by wire transfer of immediately available funds to
      Choi’s bank account, using the wiring instructions set forth on Schedule
      A. Contemporaneous with such payment, Choi will cause the Securities and
      any
      certificates representing the Securities to be assigned, transferred, conveyed,
      and delivered to the Company or its assigns.  All certificates or
      instruments representing or evidencing the Securities shall be delivered to
      the
      Company or its assigns and shall be in suitable form for transfer by delivery,
      and will be accompanied by stock powers in the form of Exhibit A attached
      hereto, duly executed by Choi, to the extent necessary.  In the event
      that certificates representing any of the Securities, which are typically
      represented by certificates and were not otherwise dematerialized and placed
      in
      book-entry form, are unable to be located, Choi shall deliver to the Company
      an
      Affidavit of Missing Certificates in respect thereof, duly endorsed, in the
      form
      attached as Exhibit B.  The Contingent Payment Amount is no
      longer owed by the Company to Choi or any of his affiliates, assignees or
      designees under any circumstances.

    

    2.           In
      addition to the payment described in Section 1, Baywood shall pay Choi
      US$150,000 at the earlier of such time as Baywood (i) achieves positive
      stockholders’ equity measured as of the last day of each fiscal quarter and as
      reflected on a balance sheet prepared in accordance with accounting principles
      generally accepted in the United States and, to the extent Baywood is at the
      time still an entity required to file periodic reports with the Securities
      and
      Exchange Commission (“Commission”) under the Securities Exchange Act of
      1934, audited by an independent public accounting firm, or (ii) sells, in one
      or
      more related transactions, all or substantially all of its assets or Baywood
      shall merge with another entity and Baywood shall not be the entity that
      survives such merger.  The parties acknowledge that as of September
      30, 2005, Baywood’s balance sheet, as included in its quarterly report on Form
      10-QSB filed with the Commission, reflected a total stockholders’ deficit of
      $(3,388,184).  By way of example and for purposes of clarification,
      the parties intend that, subject to the foregoing sentences in this Section
      2, in the event Baywood’s balance sheet reflects, for any reason, positive
      stockholders’ equity in the amount of $90,000 (without at any other time after
      the date hereof having had a positive stockholders’ equity), Baywood would be
      required to pay Choi the amount of US$90,000, thereby leaving unpaid hereunder
      the sum of $60,000.  If thereafter (and assuming the $90,000 had been
      paid) Baywood’s balance sheet reflected a positive stockholders’ equity of
      $150,000, Baywood would be required to pay Choi an additional $60,000, whereupon
      Baywood shall have performed in full all of its obligations
      hereunder.  If Baywood shall for any reason not be required to file
      periodic reports with the Commission (or if it shall for any reason fail to
      file
      such reports even though required to do so), Baywood shall deliver to Choi,
      not
      later than 45 days after the end of each fiscal quarter, a balance sheet as
      of
      the end of the prior fiscal quarter setting forth total stockholders’ equity (or
      deficit, as the case may be).  Any payment under this Section 2
      shall be due and payable on the 60th day following (a) in the case of positive
      stockholders’ equity, the last day of the fiscal quarter in respect of which the
      payment became due and (b) in the case of the sale of all or substantially
      all
      of Baywood’s assets or a merger in which Baywood is not the survivor, the date
      of such sale or merger (as the case may be).  Any payment not paid
      when due shall bear interest on the unpaid amount at the rate of 12% per
      annum.  Except as provided in the immediately preceding sentence,
      interest shall not accrue or be or become payable in respect of any amount
      hereunder.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3.           Effective
      upon completion of the events set forth in Section 1, each party hereto
      fully and forever releases and discharges the other party and the other party’s
      affiliates from any and all claims, demands, actions, causes of action,
      obligations, defaults, costs, expenses, damages, losses and liabilities of
      whatever kind or nature whatsoever in law, equity or otherwise (whether real
      or
      contingent or known or unknown), which directly or indirectly relate to or
      arise
      under or in connection with the transfer of the Securities, the terms or
      provisions of any of the Securities, the ownership of the Securities, the
      Contingent Payment Amount, or any other matter that relates to the ownership
      of
      the Securities and the rights, privileges, duties and obligations that arise
      from or relate to the issuance or ownership of the Securities or any of the
      Securities, or which relate in any manner to the Contingent Payment
      Amount.  Furthermore, Choi forever releases and discharges Baywood,
      its stockholders, officers, directors and agents from any and all claims,
      demands, actions, causes of action, obligations, costs, expenses, damages,
      losses and liabilities of whatever kind or nature whatsoever in law, equity
      or
      otherwise, which directly or indirectly relate to or arise under or in
      connection with the creation of Baywood’s Series G Preferred Stock, Baywood’s
      Annual Meeting of Stockholders held on November 17, 2005 or any actions taken
      in
      respect of matters proposed to the stockholders at such Annual Meeting of
      Stockholders.  For clarification, it is the intention of the parties
      that, except to the limited extent set forth in Section 2 above, the parties
      hereto shall have no further relationship, direct or indirect, to one another
      with respect to, arising out of or from, or otherwise pertaining in any manner
      or to any extent, the Securities or the issuance or ownership thereof and that
      they hereby settle all matters existing between them as a consequence of the
      Securities or any matters related to ownership thereof.  As used in
      this Section 3, the term “affiliates” means and includes a party’s
      officers, directors, shareholders, representatives, agents, related entities,
      predecessors and successors.

    

    4.           By
      entering into this Agreement, the parties hereto agree and understand that
      this
      is a compromise and settlement of disputed claims and that there is no
      implication or admission of liability or wrongdoing whatsoever by any party
      with
      respect to the issues in dispute or in respect of any of the
      claims.  The parties further agree and understand that by entering
      into this Agreement, the existence and execution of this Agreement shall not
      be
      considered, nor be offered or received into evidence or otherwise filed or
      lodged in any proceeding, except as may be necessary to prove the terms of
      this
      Agreement or to enforce this Agreement, nor may it be considered or deemed
      admissible as an admission by any party of any liability, wrongdoing, error,
      or
      violation of law.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    5.           Knowing
      and understanding that the Company will rely on the following information as
      an
      inducement to repurchase the Securities and to determine the applicability
      of
      various securities laws and for certain other purposes, Choi hereby represents
      and warrants to the Company as follows:

    

    (a)           He
      is the legal and beneficial holder of the Securities he is represented to own
      as
      set forth in the recitals of this Agreement and such Securities have not been
      pledged as security for any outstanding indebtedness or otherwise subject to
      any
      lien or encumbrance.

    

    (b)           He
      has the requisite authority to execute and deliver this Agreement to the Company
      and to perform his obligations hereunder.  This Agreement constitutes
      a valid and binding obligation of Choi, enforceable against him in accordance
      with its terms.

    

    6.           Miscellaneous.

    

    (a)           Each
      party hereto agrees to do all acts and things and to make, execute, and deliver
      such written instruments as shall from time to time be reasonably required
      to
      carry out the terms and provisions of this Agreement.

    

    (b)           This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective heirs, personal representatives, successors and
      assigns.  No party may assign or transfer his, her, or its rights or
      obligations under this Agreement without the prior written consent of the other
      party hereto, except that Baywood shall have the right to assign or delegate
      its
      right to receive any of the Securities to any individual(s) or one or more
      entities, subject only to the assignee’s payment of the amount set forth in
Section 1.

    

    (c)           All
      Schedules and Exhibits referred to in and attached to this Agreement are hereby
      incorporated by reference into, and made a part of, this
      Agreement.  This Agreement contains the entire agreement and
      understanding between the parties hereto with respect to the subject matter
      hereof and supersedes all prior and contemporaneous agreements, understandings,
      inducements, and conditions, express or implied, oral or written, of any nature
      whatsoever with respect to the subject matter hereof.  The express
      terms hereof control and supersede any course of performance and/or usage of
      the
      trade inconsistent with any of the terms hereof.  This Agreement may
      not be modified or amended other than by an agreement in writing signed by
      the
      party or parties to be bound.

    

    (d)           This
      Agreement and all questions relating to its validity, interpretation,
      performance, and enforcement shall be governed by and construed, interpreted,
      and enforced in accordance with the laws of the State of Arizona.

    

    (e)           Each
      party hereto shall bear its or his own costs and expenses (including the fees
      and disbursements of counsel and accountants) incurred in connection with the
      negotiation and preparation of and the closing under this Agreement, and all
      matters incident thereto.  In the event of any claim, controversy or
      dispute arising out of or relating to this Agreement, or the breach thereof,
      the
      prevailing party shall be entitled to recover reasonable attorneys' fees
      incurred in connection with any court proceedings.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (f)           This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed to be an original as against any party whose signature appears thereon,
      and all of which shall together constitute one and the same
      instrument.  This Agreement shall become binding when one or more
      counterparts hereof, individually or taken together, shall bear the signatures
      of the parties reflected hereon as the signatories.  Any photographic
      or xerographic copy of this Agreement, with all signatures reproduced on one
      or
      more sets of signature pages, shall be considered for all purposes as if it
      were
      an executed counterpart of this Agreement. Signatures may
      be given by facsimile or other electronic transmission, and such signatures
      shall be fully binding on the party sending the same.

    

    (g)           Each
      of the parties to this Agreement acknowledges and agrees that the parties’
respective remedies at law for a breach or threatened breach of any of the
      provisions of this Agreement would be inadequate and, in recognition of that
      fact, agrees that, in the event of a breach or threatened breach of the
      provisions of this Agreement by any other party, then in addition to any
      remedies at law, each other party, without posting any bond, shall be entitled
      to obtain equitable relief in the form of specific performance, a temporary
      restraining order, a temporary or permanent injunction or any other equitable
      remedy which may then be available.

    

    (h)           Each
      party hereto acknowledges that it was represented by legal counsel (or had
      the
      opportunity to be represented by legal counsel) in connection with this
      Agreement and that such party and his or its counsel have reviewed and revised
      this Agreement, or have had an opportunity to do so, and that any rule of
      construction to the effect that ambiguities are to be resolved against the
      drafting party shall not be employed in the interpretation of this Agreement
      or
      any amendments or any Exhibits or Schedules hereto or thereto.

    

    (i)           The
      provisions of this Agreement are independent of and severable from each other,
      and no provision shall be affected or rendered invalid or unenforceable by
      virtue of the fact that for any reason any other or others of them may be
      invalid or unenforceable in whole or in part.   Further, if a
      court of competent jurisdiction determines that any provision of this Agreement
      is invalid or unenforceable as written, such court may interpret, construe,
      rewrite or revise such provision, to the fullest extent allowed by law, so
      as to
      make it valid and enforceable consistent with the intent of the
      parties.

    

    

    [This
      space intentionally left blank.  Signature page
      follows.]

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties have caused this Agreement to be duly
      executed.

    

    

    
      	 	 
	 	
              CHOI
                CHEE MING (a/k/a FRANCIS CHOI)

            
	 	 
	 	
              BAYWOOD
                INTERNATIONAL, INC.

            
	 	 
	 	 
	 	 
	 	
              Neil
                Reithinger,

            
	 	
              President
                & C.E.O.

            

    

    

    

    [Signature
      page to Stock Repurchase Agreement and Release]

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    Exhibit
      A

    

    ASSIGNMENT
      SEPARATE FROM CERTIFICATE

    

    

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers __________ shares
      of the capital stock of BAYWOOD INTERNATIONAL, INC., a Nevada corporation (the
      “Company”), to the Company or its assigns, which shares are represented by
      Certificates No. _____, standing in the name of the undersigned on the books
      of
      the Company.  The undersigned hereby irrevocably constitutes and
      appoints Neil Reithinger as its attorney-in-fact to transfer said capital stock
      on the books of the Company with full power of substitution in the
      premises.

    

    Dated:  December
      __,
      2005

    

    
      	 	
              CHOI
                CHEE MING (a/k/a FRANCIS CHOI)

            
	 	 
	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      B

    

    AFFIDAVIT
      OF MISSING STOCK CERTIFICATES

    

    1.           I
      am an adult resident of the Hong Kong, China and am competent to testify as
      to
      the matter stated herein.

    

    2.           I
      am the owner, either of record or beneficially or both, of the Securities issued
      by Baywood International, Inc., a Nevada corporation (the “Corporation”), which
      Securities are described in more detail in that certain Stock Repurchase
      Agreement and Release dated December __, 2005, between the undersigned and
      the
      Corporation (the “Agreement”).  The Securities include shares of the
      Corporation’s common stock represented by Certificate No. __, Class “E”
preferred stock represented by Certificate No. ___, and Class “F” preferred
      stock represented by Certificate No. __.  Certain of the Securities
      may or may not be represented by a stock certificate, but the undersigned has
      been unable to locate any such stock certificate (and such stock certificates
      as
      have been issued in respect of the Securities and specifically identified above
      are collectively referred to herein as the “Certificates”).

    

    3.           I
      have not endorsed any of the Certificates and no person has been empowered
      to
      endorse any Certificate.  Neither any of the Certificates nor any of
      my rights thereunder have, in whole or in part, been assigned, transferred,
      hypothecated, pledged or other­wise disposed of, and I am entitled to the
      full and exclusive possession of the Certificates.

    

    4.           Each
      Certificate, assuming that it was issued by the Corporation, was either lost,
      destroyed, stolen, or misplaced among my personal papers and effects, and a
      diligent search has failed to reveal the missing Certificates.

    

    5.           For
      the purpose of correcting the stock transfer records of the Corporation with
      respect to the cancellation of the Certificates in order to transfer Securities
      pursuant to the Agreement, I agree to surrender immediately to the Corporation
      the missing Certificate or Certificates should it or they hereafter be located
      and to indemnify the Corporation for any losses it may sustain as a result
      of
      the transfer of the shares represented by the Certificates pursuant to the
      Agreement, if and only if the Corporation establishes that any of the
      Certificates were heretofore issued and duly delivered to the
      undersigned.

    

    Intending
      to be legally bound, I have executed this Affadavit on the date set forth
      below.

    

    Dated:
      December                                           ,
      2005

    

    
      	 	 
	 	
              CHOI
                CHEE MING (a/k/a FRANCIS CHOI)

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      A

    

    

    Beneficiary
      Bank : Hang Seng Bank Ltd

    Beneficiary
      Bank Address : Kwun Tong Branch, 70 Yu Man Square, Kwun Tong,

    Kowloon,
      Hong Kong

    Beneficiary
      Name : Choi Chee Ming

    Account
      No. : 024-269-085338-888

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