Document:

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 

2KBS International Holdings Inc.: Exhibit 10.32- Filed by newsfilecorp.com

Exhibit 10.32

KBS INTERNATIONAL HOLDINGS INC.

AMENDMENT NO. 1 TO THE INVESTOR MAKE GOOD SIDE LETTER AGREEMENT

THIS AMENDMENT NO. 1 (the “Amendment”) THE INVESTOR MAKE GOOD SIDE LETTER AGREEMENT (as defined below) is made as of October 13, 2011, by and among KBS International Holdings Inc. (f.k.a. “Bay Peak 1 Opportunity Corp.”, the
“Company”), the undersigned investors of the Company and David Steele, as the Investor Representative. 

Capitalized but undefined terms herein shall have the meanings ascribed thereto in the Make Good Agreement (as defined below). 

RECITALS

A.         The Company completed a private placement (the “Private Placement”) with the Financing Investors in March 2011 and simultaneously, a share exchange (the “Share Exchange”) with the Controlling Stockholders in respect of such
stockholders’ shares in Hongri International holdings Limited (“Hongri”), a British Virgin Islands company; 

B.          In connection with the Private Placement, the Company, the Controlling Stockholders, the Financing Investors, the Initial Investors and the Investors’ Representative entered into an Investor Make Good Side Letter Agreement dated on March 11,
2011 (the (“Make Good Agreement”), pursuant to which the Controlling Stockholders agreed to put in escrow up to 4,000,000 of the shares of Common Stock issued thereto in the Share Exchange in guaranty certain financial performance targets
of the Company set forth in the Make Good Agreement; 

C.          As one of the financial performance targets of the Company set forth in the Make Good Agreement, Hongri’s Actual 2010 Net Income (“2010 Target”) exceeded $11,500,000; and

D.          The undersigned deem it in their mutual interests to amend the Make Good Agreement to the effect that the Financial Investors and the Investors’ Representative agree to the release of certain escrow shares to the Controlling Stockholders
upon the achievement of the 2010 Target. 

NOW, THEREFORE, the parties to this Amendment hereby agree as follows: 

1.          Section 1(g) of the Make Good Agreement is hereby amended in its entirety as
follows with immediate effect:

“Notwithstanding the foregoing, if prior to December 31, 2011, the Company becomes listed on the Stock Exchange of Hong Kong Limited, the New York Stock Exchange (the “NYSE”), The NYSE Amex, the NASDAQ Global Select Market, or the
NASDAQ Global Market (together, the “NASDAQ”) and has a minimum market capitalization of at least $175 million (based on
the closing price of the Common Stock as listed on such an exchange), then no additional shares shall be issuable after the date of such event under Sections 1(a) through 1(e) and the Escrowed Shares remaining in the escrow account created pursuant
to Section 1(f) shall be released to the Controlling Stockholders without any action required by the Investors’ Representative or the Investors. Notwithstanding anything to the contrary in the foregoing, in the event that the Company
delivers the 2010 Audit to the Investors’ Representative prior to or on the date hereof showing that the 2010 Target has been achieved, an aggregate of 2,000,000 shares shall be released from the escrow account immediately to the
Controlling Stockholders pro rata to their respect in interest in the total of 4,000,000 Escrow Shares, without any action required by the Investors’ Representative or the Investors and the shares remaining in the escrow account
shall continue to be subject to, and remain releasable only upon the achievement of, the performance target set forth in Section 1(b)”. 

2.          Except as expressly modified herein, the Make Good Agreement, as amended, shall remain in full force and effect. 

 

 

 

 

 

2

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first written above. 

Very truly yours,

KBS INTERNATIONAL HOLDINGS INC.

(F.K.A. BAY PEAK 1 OPPORTUNITY CORP.)

By: /s/ Keyan Yan 

Name: Keyan Yan 

Title: Chief Executive Officer

 

 

 

 

[Signature Page to Amendment No. 1 To Make Good Agreement]

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first written above. 

CONTROLLING STOCKHOLDERS:

/s/ Chan Sun Keung                                                            

Printed Name: Chan Sun Keung

Address for Notice: 

Room 616 6/F, Cheuk Wah House 

Hing Wah Estate, Chai Wan, Hong Kong

Fax: 

Email:

/s/ Cheung So Wa                                                               

Printed Name: Cheung So Wa

Address for Notice: 

Room 2303, Luk Yat House, Yat Tung Estate

Tung Cheng, N.T. Hong Kong 

Fax: 

Email:

 

 

[Signature Page to Amendment No. 1 To Make Good Agreement]

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first written above. 

INVESTORS’ REPRESENTATIVE:

/s/ David Steele                                                                          

Name: David Steele

Address for Notice: 

3111 Del Rio Drive 

North Vancouver, BC V7N 4C3

Fax: 604-909-2909 

Email: steeledave@shaw.ca

 

 

[Signature Page to Amendment No. 1 To Make Good Agreement]

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first written above. 

FINANCING INVESTOR:

CHINA — GROUND FLOOR HOLDINGS, L.P. 

By: Ground Floor Capital, LLC

By: /s/ David Steele                                                                
 

Name: David Steele 

Title: _____________________________________

Address for Notice: 

8090 N. 85th Way, Suite 101 

Scottsdale, AZ 85258 

Telephone: 604-980-8407 

Fax: 604-909-2909 

Email: groundfloorcapitalinc@gmail.com

With a copy to: 

Scudder Law Firm, P.C., L.L.O. 

Attention: Adam Hornung 

411 South 13th Street, Suite 200 

Lincoln, NE 68508 

Facsimile: 402-435-4239

 

[Signature Page to Amendment No. 1 To Make Good Agreement]

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first written above. 

FINANCING INVESTOR:

CHINA — GROUND FLOOR HOLDINGS VI, L.P. 

By: Ground Floor Capital II, LLC

By: /s/ David Steele 

Name: David Steele 

Title:

Address for Notice: 

8090 N. 85th Way, Suite 101 

Scottsdale, AZ 85258 

Telephone: 604-980-8407 

Fax: 604-909-2909 

Email: groundfloorcapitalinc@gmail.com

With a copy to: 

Scudder Law Firm, P.C., L.L.O. 

Attention: Adam Hornung 

411 South 13th Street, Suite 200 

Lincoln, NE 68508 

Facsimile: 402-435-4239 

[Signature Page to Amendment No. 1 To Make Good Agreement]

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first written above. 

FINANCING INVESTOR:

CHINA CANADIAN OPPORTUNITY, L.P.

By: Ground Floor Capital (China), Inc.

By: /s/ David Steele                                                                     

Name: David Steele 

Title: _______________________________________

Address for Notice: 

8090 N. 85th Way, Suite 101 

Scottsdale, AZ 85258

Telephone: 604-980-8407 

Fax: 604-909-2909 

Email: groundfloorcapitalinc@gmail.com

With a copy to: 

Scudder Law Firm, P.C., L.L.O. 

Attention: Adam Hornung 

411 South 13th Street, Suite 200 

Lincoln, NE 68508 

Facsimile: 402-435-4239

 

 

 

[Signature Page to Amendment No. 1 To Make Good Agreement]

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first written above. 

FINANCING INVESTOR:

CHINA CANADIAN OPPORTUNITY VI, L.P.

By: Ground Floor Capital (China 88), Inc.

By: /s/ David Steele                                                                      

Name: David Steele 

Title: _______________________________________

Address for Notice: 

8090 N. 85th Way, Suite 101 

Scottsdale, AZ 85258 

Telephone: 604-980-8407 

Fax: 604-909-2909 

Email: groundfloorcapitalinc@gmail.com

With a copy to: 

Scudder Law Firm, P.C., L.L.O. 

Attention: Adam Hornung 

411 South 13th Street, Suite 200 

Lincoln, NE 68508 

Facsimile: 402-435-4239

 

 

 

[Signature Page to Amendment No. 1 To Make Good Agreement]

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first written above. 

INITIAL INVESTOR: 

KEMA MANAGEMENT, LTD.

By: /s/ David Steele                                                                     

Name: David Steele

Title: _______________________________________

Address for Notice: 

3111 Del Rio Drive 

North Vancouver, BC V7N 4C3

Telephone: 604-980-8407 

Fax:

Email: steeledave@shaw.ca

With a copy to: 

Scudder Law Firm, P.C., L.L.O. 

Attention: Adam Hornung 

411 South 13th Street, Suite 200 

Lincoln, NE 68508 

Email: ghornung@scudderlaw.com

 

 

 

[Signature Page to Amendment No. 1 To Make Good Agreement]

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first written above. 

INITIAL INVESTOR:

/s/ Christopher E. Jensen                                                       

Name: Christopher E. Jensen

Title: Individual

Address for Notice: 

Telephone: 602-570-3661 

Fax:

Email: chris@pvcapgroup.com

With a copy to: 

Scudder Law Firm, P.C., L.L.O. 

c/o Adam Hornung 

411 South 13th Street, Suite 200 

Lincoln, NE 68508 

Email: ghornung@schudderlaw.com

 

[Signature Page to Amendment No. 1 To Make Good Agreement]

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first written above. 

INITIAL INVESTOR: 

JENSEN CHILDREN IRREVOCABLE

TRUST, DATED MAY 25, 2010 

By: /s/ Christopher E. Jensen                                                                            

Name: Christopher E. Jensen 

Title: Trustee

Address for Notice:

20645 North Pima Road, Suite #140 

Scottsdale, AZ 85255

Telephone: 602-570-3661 

Fax:

Email: chris@pvcapgroup.com

With a copy to: 

Scudder Law Firm, P.C., L.L.O. 

c/o Adam Hornung 

411 South 13th Street, Suite 200 

Lincoln, NE 68508

Email: ghornung@schudderlaw.com

 

[Signature Page to Amendment No. 1 To Make Good Agreement]

INITIAL INVESTOR:

BAY PEAK, LLC 

By: /s/ Cory Roberts                                                                       

Name: Cory Roberts 

Title: President 

Address for Notice: 

169 Bolsa Avenue 

Mill Valley, CA 94941 

Telephone: 

Fax:

Email: cory@baypeak.com 

With a copy to: 

Scudder Law Firm, P.C., L.L.O. 

c/o Adam Hornung 

411 South 13th Street, Suite 200 

Lincoln, NE 68508 

Email: ghornung@schudderlaw.com

 

 

[Signature Page to Amendment No. 1 To Make Good Agreement]

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