KBS International Holdings Inc.: Exhibit 10.31 - Filed by newsfilecorp.com






Exhibit 10.31

Property Lease Agreement  

Leasor (Party A): Peizhi Cai 

Tenant (Party B): Keyan
Yan 


According to the Contract Law of People’s Republic of China and
related laws and regulations, with respect to the property to be leased by Party
A to Party B, for the purpose of identifying the rights and obligations of both
Parties, the Parties enter into this Property Lease Agreement (the “Agreement”)
on a fair and voluntary basis upon unanimous negotiation. 

	I. 	
      The Property to be leased (the “Property”) by Party A is
      in accordance with the regulation adopted by the People’s Republic of
      China.

	 	 	 
	II. 	
      Location and Dimensions

	 	 	 
		1. 	
      The Property is located behind the playfield of Yupu
      Primary School, Yupu Village, Shishi City, Fujian Province.

	 	 	 
		2. 	
      The size of the Property is 5,950 square
meters.

	 	 	 
	III. 	
      Term and Usage

	 	 	 
		1. 	
      The term of this lease is collective 36 months, namely
      from February 1, 2009 to January 30, 2012, a three-year period.

	 	 	 
		2. 	
      Party B guarantees to Party A that this Property will be
      used as facility for production of apparels and also as
  dormitory.

	 	 	 
		3. 	
      Upon the expiration of this lease, Party A is entitled to
      reclaim this Property, and Party B shall duly deliver such Property to
      Party A. If Party B intends to renew the term of the lease, Party B shall
      notify Party A in written form 2 months prior to the expiration of such
      lease, and another new agreement shall be executed upon the consent of
      Party A for the renew.

	 	 	 
	IV. 	
      Rent and Payment

	 	 	 
		
      The rent of this Property for a three-year term is
      RMB1,200,000, which will be paid in three installments:

	 	 	 
		1. 	
      Upon the execution of this Agreement, the first
      installment, RMB400,000, shall be paid simultaneously.

	 	 	 
		2. 	
      The second installment, RMB400,000, shall be paid prior
      to January 1, 2010.

	 	 	 
		3. 	
      The third installment, RMB400,000, shall be paid prior to
      January 1, 2011.

	 	 	 
	V. 	
      Expense and Tax During the Term of Lease

	 	 	 
		1. 	
      Any tax and expense, property tax, utility fee,
      sanitation fee, and fire control and anti-burglar measures arising out
      during the term of lease shall be fully assumed by Party B.

	 	 	 
		2. 	
      Party B shall reasonably utilize the Property and
      ancillary facilities. If any damage or destruction arising out from the
      inappropriate use, Party B shall immediately assume the maintenance and
      repair or economic compensation.








	 	3. 	
      Party A shall keep the entrance of this Property easily
      accessible.

	 	 	 
	 	4. 	
      Without the consent of Party A, Party B shall not release
      or borrow for free such Property to any third
party.




	VI. 	
      If the Parties terminate this agreement in advance, the
      Party who claims to the termination shall indemnify the counterparty a
      economic compensation as much as RMB100,000 (except for the Force Majeure,
      such as war, catastrophe, epidemics).

	 	 
	VII. 	
      This Agreement has two counterparts in the same validity
      ,each of which held by one Party, respectively. And this Agreement will
      come into effect once executed by the Parties.




	Party A: Peizhi Cai 	Party B: Keyan Yan 
	 	 
	Tel: 13805981692 	Tel: 13905081202 
	 	 
	Date: January 5, 2009 	Date: January 17, 2009 


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