Document:

TO ALL FORMS USERS:

Exhibit 10.3

BILL OF SALE AND ASSIGNMENT

BILL OF SALE AND ASSIGNMENT, dated as of September 9th, 2008 (this “Bill of Sale and Assignment”), is from Skae Beverages International LLC, a Delaware limited liability company (“Seller”) to Baywood International, Inc., a Nevada corporation (“Baywood”) and Baywood New Leaf Acquisition, Inc., a Nevada corporation and a wholly owned subsidiary of Baywood (“Buyer”) and Eric Skae (“Skae”) an individual.

WHEREAS, Seller, Skae, Baywood and Buyer have entered into an Asset Purchase Agreement, dated as of September 9th, 2008 (the “Asset Purchase Agreement”; unless otherwise defined herein, capitalized terms shall be used herein as defined in the Asset Purchase Agreement); and

WHEREAS, the execution and delivery of this Bill of Sale and Assignment by Seller is a condition to the respective obligations of Baywood and Buyer to consummate the transactions contemplated by the Asset Purchase Agreement;

NOW, THEREFORE, in consideration of the promises and mutual agreements set forth in the Asset Purchase Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller does hereby agree as follows:

1.

Sale and Assignment of Assets and Properties

The Seller hereby sells, assigns, transfers, conveys, grants, bargains, sets over, releases, delivers, vests and confirms unto Buyer and its successors and assigns, forever, the entire right, title and interest of Seller free and clear of all Encumbrances (other than any Permitted Encumbrances) in and to any and all of the Purchased Assets other than the Excluded Assets.

2.

Obligations and Liabilities Not Assumed

Nothing expressed or implied in this Bill of Sale and Assignment shall be deemed to be an assumption by Baywood or Buyer or any of their respective subsidiaries of any obligations or liabilities of Seller.  Neither Baywood nor Buyer nor any of their respective subsidiaries by this Bill of Sale and Assignment, agree to assume or agree to pay, perform or discharge any liabilities of Seller of any nature, kind or description whatsoever.

3.

Further Assurances

Seller hereby covenants and agrees that, at any time and from time to time after the date of this Bill of Sale and Assignment, at Baywood’s or Buyer’s request, Seller will do, execute, acknowledge and deliver, or will cause to be done, executed, acknowledged and delivered, any and all further acts, conveyances, transfers, assignments, and assurances as necessary to grant, sell, convey, assign, transfer, set over to or vest in Buyer any of the Assets.

4.

Power of Attorney

Seller hereby constitutes and appoints Buyer, its successors and assigns, the true and lawful attorney and attorneys of Seller, with full power of substitution, in the name of Buyer and/or Baywood or in the name and stead of Seller, but on behalf of and for the benefit of Buyer and/or Baywood and each of their respective successors and assigns (and at the expense of Seller):

1

(a)

to collect, demand and receive any and all Purchased Assets transferred hereunder and to give receipts and releases for and in respect of the same;

(b)

to institute and prosecute in Seller’s name, or otherwise, at the expense and for the benefit of Buyer any and all actions, suits or proceedings, at law, in equity or otherwise, which Buyer may deem proper in order to collect, assert or enforce any claim, right or title of any kind in or to the Assets hereby sold and assigned to Buyer or intended so to be, to defend or compromise any and all such actions, suits or proceedings in respect of any of such Assets, and to do all such acts and things in relation thereto as Buyer shall deem advisable for the collection or reduction to possession of any of such Purchased Assets;

(c)

to take any and all other reasonable action designed to vest more fully in Buyer the Purchased Assets hereby sold and assigned to Buyer or intended so to be and in order to provide for Buyer the benefit, use, enjoyment and possession of such Assets; and

(d)

to do all reasonable acts and things in relation to the Purchased Assets sold and assigned hereunder.

Seller acknowledges that the foregoing powers are coupled with an interest and shall be irrevocable by it or upon its subsequent dissolution or in any manner or for any reason.  Buyer shall be entitled to retain for its own account any amounts collected pursuant to the foregoing powers, including any amounts payable as interest with respect thereto.  Seller shall from time to time pay to Buyer or, if directed by Buyer, to Baywood, when received, any amounts that shall be received directly or indirectly by Seller (including amounts received as interest) in respect of any Assets sold, assigned or transferred to Buyer pursuant hereto.

5.

No Third Party Beneficiaries

This Bill of Sale and Assignment shall be binding upon and inure solely to the benefit of Baywood and Buyer and their respective permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person, any legal or equitable right, benefit or remedy of any nature whatsoever, under or by reason of this Bill of Sale and Assignment.

6.

Severability

If any term or other provision of this Bill of Sale and Assignment is invalid, illegal or incapable of being enforced by any Law or public policy, all other terms and provisions of this Bill of Sale and Assignment shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to either Seller, Baywood or Buyer, as the case may be.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Bill of Sale and Assignment so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the transactions contemplated by this Bill of Sale and Assignment are consummated as originally contemplated to the greatest extent possible.

7.

Governing Law

This Bill of Sale and Assignment shall be governed by the laws of the State of New York.

2

IN WITNESS WHEREOF, this Bill of Sale and Assignment has been executed by Seller as of the date first above written.

			
	         

	SKAE BEVERAGE INTERNATIONAL LLC

	 
	 
	  

	 
	 
	 

	 
	By:  

	/s/ Eric Skae

	 
	 
	Name: Eric Skae

	 
	 
	Title: Managing Member

			
	         

	BAYWOOD INTERNATIONAL, INC.

	 
	 
	  

	 
	 
	 

	 
	By:  

	/s/ Neil Reithinger

	 
	 
	Name: Neil Reithinger

Title: President

			
	         

	BAYWOOD NEW LEAF ACQUISITION, INC.

	 
	 
	  

	 
	 
	 

	 
	By:  

	/s/ Neil Reithinger

	 
	 
	Name: Neil Reithinger

Title: President

Signature Page – Bill of SaleTO ALL FORMS USERS:

Exhibit 10.4

ASSUMPTION AGREEMENT

THIS ASSUMPTION AGREEMENT, dated as of September 9th, 2008 (this “Agreement”), is by and between Baywood International, Inc., a Nevada corporation (“Baywood”), Baywood New Leaf Acquisition, Inc., a Nevada corporation and a wholly owned subsidiary of Baywood (“Buyer”), Skae Beverages International, LLC, a Delaware limited liability company (“Seller”) and Eric Skae (“Skae”) an individual.

WHEREAS, Seller, Skae, Baywood and Buyer have entered into an Asset Purchase Agreement, dated as of September 9th, 2008 (the “Asset Purchase Agreement”; unless otherwise defined herein, capitalized terms shall be used herein as defined in the Asset Purchase Agreement);

WHEREAS, pursuant to the Asset Purchase Agreement, Buyer has agreed to assume, pay, perform and discharge when due, any and all of the Assumed Liabilities; and

WHEREAS, the execution and delivery of this Agreement by Baywood and Buyer is a condition to the obligations of Seller to consummate the transactions contemplated by the Asset Purchase Agreement;

NOW, THEREFORE, in consideration of the premises and the mutual agreements and covenants set forth in the Asset Purchase Agreement and hereinafter set forth, Baywood, Buyer and Seller hereby agree as follows:

1.

Assumption of Liabilities  (a)     Buyer hereby assumes, and agrees to pay, perform and discharge when due, all of the Assumed Liabilities.

(b)

Notwithstanding the foregoing provisions of paragraph (a), Buyer does not assume, or agree to pay, perform or discharge when due, any Excluded Liabilities of Seller.

2.

Assignment. This Agreement may not be assigned by operation of law or otherwise without the express written consent of Seller, on the one hand, and Baywood and Buyer on the other (which consents may be granted or withheld in the sole discretion of Seller, on the one hand, or Baywood and Buyer on the other); provided, however, that Buyer and/or Baywood may assign this Agreement or any of their respective rights and obligations hereunder to one or more Affiliates without the consent of Seller.

3.

No Third Party Beneficiaries. This Agreement shall be binding upon and inure solely to the benefit of the parties hereto and their permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person, including, without limitation, any union or any employee or former employee of Seller, any legal or equitable right, benefit or remedy of any nature whatsoever, including, without limitation, any rights or employment for any specified period, under or by reason of this Agreement.

4.

Amendment. This Agreement may not be amended or modified except (a) by an instrument in writing signed by, or on behalf of, Seller, on the one hand, and Baywood and Buyer on the other, or (b) by a waiver pursuant to Section 5 below.

5.

Waiver. Any party to this Agreement may (a) extend the time for the performance of any of the obligations or other acts of the other party, (b) waive any inaccuracies in the representations and warranties of the other party contained herein or in any document delivered by the other party pursuant hereto or (c) waive compliance with any of the agreements of the other party or conditions to such party's obligations contained herein.  Any such extension or waiver shall be valid only if set forth in an instrument in writing signed by the party to be bound thereby.  Any waiver of any term or condition shall not be construed as a waiver of any subsequent breach or a subsequent waiver of the same term or condition, or a waiver of any other term or condition of this Agreement.  The failure of any party to assert any of its rights hereunder shall not constitute a waiver of any such rights.

6.

Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any Law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated by this Agreement is not affected in any manner materially adverse to any party.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the transactions contemplated by this Agreement are consummated as originally contemplated to the greatest extent possible.

7.

Counterparts. This Agreement may be executed and delivered (including by facsimile transmission) in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement.

8.

Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York applicable to contracts executed in and to be performed in that State (without regard to conflicts of law provisions thereof).

2

IN WITNESS WHEREOF, this Assumption Agreement has been executed by the parties hereto as of the date first above written.

			
	         

	SKAE BEVERAGE INTERNATIONAL LLC

	 
	 
	  

	 
	 
	 

	 
	By:  

	/s/ Eric Skae

	 
	 
	Name: Eric Skae

	 
	 
	Title: Managing Member

			
	         

	BAYWOOD INTERNATIONAL, INC.

	 
	 
	  

	 
	 
	 

	 
	By:  

	/s/ Neil Reithinger

	 
	 
	Name: Neil Reithinger

Title: President

			
	         

	BAYWOOD NEW LEAF ACQUISITION, INC.

	 
	 
	  

	 
	 
	 

	 
	By:  

	/s/ Neil Reithinger

	 
	 
	Name: Neil Reithinger

Title: President

Signature Page – Assignment and Assumption

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]