Document:

Exhibit 10.1

 

JERASH HOLDINGS
(US), INC.

2018 STOCK
INCENTIVE PLAN

 

Section 1

PURPOSES

 

The Jerash Holdings
(US), Inc. 2018 Stock Incentive Plan (the “Plan”) is established to (a) promote the long-term interests
of Jerash Holdings (US), Inc., a Delaware corporation (the “Company”) and its stockholders by strengthening
the ability of the Company and its subsidiaries to attract, motivate and retain employees, officers, and other persons who provide
valuable services to the Company and its subsidiaries, (b) encourage such persons to hold an equity interest in the Company,
and (c) enhance the mutuality of interest between such persons and stockholders in improving the value of the Company’s
common stock.

 

Section 2

DEFINITIONS

 

As used in the Plan,
the following terms will have the respective meanings set forth below, and other capitalized terms used in the Plan will have the
respective meanings given such capitalized terms in the Plan.

 

“Award”
means any Option, Restricted Stock, Restricted Stock Unit, dividend equivalent or other award granted under the Plan.

 

“Award Agreement”
means the written or electronic agreement setting forth the terms and provisions applicable to an Award granted under the Plan.

 

“Board”
means the Board of Directors of the Company.

 

“Code”
means the Internal Revenue Code of 1986, as amended, and any reference in the Plan to any section of the Code shall be deemed
to include any regulations or other interpretative guidance under such section, and any amendments or successor provisions to such
section, regulations or guidance.

 

“Common Stock”
means the Company’s common stock, par value $0.001 per share, or any other security into which the common stock shall
be changed pursuant to the adjustment provisions of Section 12.

 

“Consultant”
means any natural person who is engaged by the Company or any Subsidiary to render consulting or advisory services.

 

“Director”
means a member of the Board who is not an Employee.

 

“Employee”
means an officer or other employee of the Company or a Subsidiary, including a member of the Board who is an employee of the Company
or a Subsidiary.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and any reference in the Plan to any section of (or rule
promulgated under) the Exchange Act shall be deemed to include any rules, regulations or other interpretative guidance under such
section or rule, and any amendments or successor provisions to such section, rules, regulations or guidance.

 

     

     

    

 

“Fair Market
Value” of shares of Common Stock as of any date means, (a) if the shares of Common Stock are listed or admitted to trading
on the New York Stock Exchange, NASDAQ Stock Market or other principal national securities exchange, the per share closing price
of the Common Stock as reported on the New York Stock Exchange, NASDAQ Stock Market or other principal national securities exchange,
as applicable, on that date, or if there were no reported prices on such date, on the last preceding date on which the prices were
reported, or (b) if the shares of Common Stock are not quoted on the New York Stock Exchange, NASDAQ Stock Market or other principal
national securities exchange, but the shares of Common Stock are reported on the over-the-counter market, the arithmetic mean of
the high and low prices as reported in the over-the-counter market on that date, or if there were no reported prices on such date,
on the last preceding date on which the prices were reported, and (c) if the shares of Common Stock are not quoted on the New York
Stock Exchange, NASDAQ Stock Market or other principal national securities exchange, and are not reported on the over-the-counter
market on that date, the Fair Market Value of the shares of Common Stock as determined by the Committee in its good faith judgment,
and in compliance with the requirements of Section 422 of the Code for Incentive Stock Options and Section 409A of the Code for
Nonqualified Stock Options. The Fair Market Value of any property other than Common Stock shall be the market value of such property
as determined by the Committee using such methods or procedures as it shall establish from time to time.

 

“Grant Date”
means the date on which the granting of an Award is authorized by the Committee, or such other date as may be specified in
such authorization.

 

“Option”
means an option to purchase shares of Common Stock granted under Section 7, and includes both Incentive Stock Options
and Nonqualified Stock Options.

 

“Participant”
means any Eligible Person to whom an Award is granted.

 

“Restricted
Stock” means an Award of shares of Common Stock granted under Section 8, the rights of ownership of which may be
subject to restrictions prescribed by the Committee.

 

“Restricted
Stock Unit” means an Award measured by shares of Common Stock that is granted under Section 8, the terms of which
are subject to restrictions prescribed by the Committee.

 

“Subsidiary”
means any corporation, limited liability company, partnership, joint venture or similar entity in which the Company owns, directly
or indirectly, an equity interest possessing more than 50% of the combined voting power of the total outstanding equity interests
of such entity.

 

“Substitute
Awards” shall mean Awards granted under the Plan in assumption of, or in substitution or exchange for, outstanding awards
previously granted by a company acquired by the Company or any Subsidiary or with which the Company or any Subsidiary combines.

 

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Section 3

ADMINISTRATION

 

3.1             
Administration of Plan.

 

(a)              
The Plan shall be administered by the Board or, if so directed by the Board, by a committee of the Board selected by the
Board (collectively, the “Committee”). At any time that any class of equity security of the Company is registered
under Section 12 of the Exchange Act or any similar state, local, or foreign law, the Plan will be administered by a committee
appointed by the Board consisting of two or more members of the Board, each of whom is a “Non-Employee Director” within
the meaning of Rule 16b-3 under the Exchange Act.

 

(b)              
Subject to applicable law, the Committee may delegate some or all of its power and authority hereunder to the Board or to
the Chief Executive Officer or other executive officer of the Company as the Committee deems appropriate; provided, however, that
the Committee may not delegate its power and authority with regard to the selection for participation in the Plan of an officer,
Director or other person subject to Section 16 of the Exchange Act or decisions concerning the timing, pricing or amount of an
Award to such an officer, Director or other person. All references in the Plan to the “Committee” shall be, as applicable,
to the Committee or any other committee or individual to whom the Board or the Committee has delegated authority to administer
the Plan.

 

3.2             
Administration and Interpretation by Committee.

 

(a)              
Except for the terms and conditions explicitly set forth in the Plan, the Committee shall have full power and exclusive
authority and discretion, subject to such orders or resolutions not inconsistent with the provisions of the Plan as may from time
to time be adopted by the Board or the Committee, to: (i) select the Eligible Persons to whom Awards may from time to time
be granted under the Plan; (ii) determine the type or types of Award to be granted to each Eligible Person under the Plan;
(iii) determine the number of shares of Common Stock to be covered by each Award granted under the Plan; (iv) determine
the terms and conditions of any Award granted under the Plan; (v) approve the forms of Award Agreements for use under the
Plan; (vi) determine whether, to what extent and under what circumstances Awards may be settled in cash, shares of Common
Stock or other property or canceled or suspended; (vii) determine whether, to what extent and under what circumstances cash,
shares of Common Stock, other property and other amounts payable with respect to an Award shall be deferred either automatically
or at the election of the Participant; (viii) interpret and administer the Plan, any Award Agreements and any other instrument
or agreement entered into under the Plan; (ix) establish such rules and regulations and appoint such agents as it shall deem
appropriate in its sole discretion for the proper administration of the Plan; (x) reconcile any inconsistency, correct any
defect, and supply any omission in the Plan, or any Award or Award Agreement; (xi) make all factual and legal determinations
under the Plan, Awards, and Award Agreements; (xii) add provisions to an Award or Award Agreement, or vary the provisions
of an Award, to accommodate the laws of applicable foreign jurisdictions and provide Participants with favorable treatment under
these laws; and (xiii) make any other determination and take any other action that the Committee deems necessary or desirable
in its sole discretion for administration of the Plan. Decisions of the Committee shall be final, conclusive and binding on all
persons, including the Company, any Participant, any stockholder and any person eligible to receive an Award hereunder.

 

(b)              
The Committee in its exclusive discretion may make non-uniform and selective determinations among Eligible Persons to receive
Awards, or who have received Awards, regardless of whether they are similarly situated. In furtherance of this Section 3.2(b)
and not in limitation thereof, the Committee in its exclusive discretion may enter into non-uniform and selective Award Agreements.
At any time after the shares of Common Stock or other security of the Company are listed on a national securities exchange, then
other than pursuant to Section 12, the Committee shall not without the approval of the Company’s stockholders (i) lower
the option price per share of Common Stock of an Option after it is granted, (ii) cancel an Option in exchange for cash or
another Award (other than in connection with Substitute Awards), and (iii) take any other action with respect to an Option
that would be treated as a repricing under U.S. generally applicable accounting standards.

 

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3.3             
Limitation of Liability. No member of the Board or Committee, and no officer or
employee acting on behalf of the Board or Committee, will be personally liable for any act or omission in the Plan’s administration,
other than an act or omission due to that person’s gross negligence or intentional misconduct. No member of the Board or
Committee will be personally liable for any act or omission of any other member of the Board or Committee. Each member of the Board
or Committee, and each officer and employee acting on behalf of the Board or Committee, may rely upon information or advice provided
by the Company’s officers, accountants, actuaries, compensation consultants, and counsel. No member of the Board or a Committee,
and no officer or employee acting on behalf of the Board or a Committee, will be personally liable for any act or omission taken
in good faith reliance on the information or advice.

 

Section 4

STOCK SUBJECT TO PLAN

 

4.1             
Available Shares. Subject to adjustment from time to time as provided in Section 12,
the maximum aggregate number of shares of Common Stock available for issuance under the Plan shall be 1,484,250 shares. If an Award
entitles the holder thereof to receive or purchase shares of Common Stock, the number of shares covered by such Award or to which
such Award relates shall be counted against the maximum aggregate number of shares of Common Stock available for issuance under
the Plan on the Grant Date of such Award. If any shares of Common Stock subject to an Award are forfeited, expire or otherwise
terminate without issuance of such shares, or any Award is settled for cash or otherwise does not result in the issuance of all
or a portion of the shares of Common Stock subject to such Award, such shares of Common Stock shall, to the extent of such forfeiture,
expiration, termination, cash settlement or non-issuance, again be available for issuance under the Plan. 

 

4.2             
Incentive Stock Options Shares. Subject to adjustment from time to time as provided
in Section 12, the maximum aggregate number of shares of Common Stock available for issuance through Incentive Stock Options
shall be 1,484,250 shares.

 

4.3             
Substitute Awards. The number of shares of Common Stock covered by a Substitute
Award or to which a Substitute Award relates shall not be counted against the maximum aggregate number of shares of Common Stock
available for issuance under the Plan.

 

4.4             
Source of Shares. Shares of Common Stock delivered by the Company or a Subsidiary,
as applicable, in settlement of Awards (including Substitute Awards) may be authorized and unissued shares of Common Stock, shares
of Common Stock held in the treasury of the Company, or a combination of the foregoing. 

 

Section 5

ELIGIBILITY

 

An Award may be granted
to any Employee, Consultant or Director whom the Committee from time to time selects, including prospective Employees conditioned
on their becoming Employees (each, an “Eligible Person”). Notwithstanding the foregoing, an Award of Incentive
Stock Options may only be granted to an Employee of the Company, or of a Subsidiary that is also a “subsidiary corporation”
of the Company within the meaning of Section 424(f) of the Code.

 

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Section 6

AWARDS

 

6.1             
Grant of Awards. The Committee may from time to time grant Awards of Options, Restricted
Stock, Restricted Stock Units or other Awards under the Plan to one or more Eligible Persons. The Committee shall have the authority,
in its discretion, to determine the Eligible Persons to receive one or more Awards, the type or types of Awards to be granted under
the Plan, and the terms of any Awards granted, consistent with the terms of the Plan. Such Awards may be granted either alone or
in addition to any other type of Award. The provisions governing Awards need not be the same with respect to each Participant.

 

6.2             
Award Agreement. Awards granted under the Plan shall be evidenced by an Award Agreement
that shall contain such terms, conditions, limitations and restrictions as the Committee shall deem advisable and are not inconsistent
with the Plan or applicable law.

 

Section 7

OPTIONS

 

7.1             
Grant of Options. The Committee may grant Options. Subject to the provisions of
the Plan, an Option shall vest and be fully exercisable as may be determined by the Committee in its discretion and provided in
an applicable Award Agreement.

 

7.2             
Option Type. An Option granted may be either of a type that complies with the requirements
for “incentive stock options” in Section 422 of the Code (“Incentive Stock Option”) or of a type
that does not comply with such requirements (“Nonqualified Stock Option”). The aggregate Fair Market Value (determined
at the time that the Incentive Stock Option is granted) of the shares of Common Stock with respect to which Incentive Stock Options
are exercisable for the first time by any Participant during any calendar year under the Plan and under any other option plan of
the Company or a Subsidiary shall not exceed $100,000, and any Option granted in excess of this limitation shall be treated as
a Nonqualified Stock Option.

 

7.3             
Option Exercise Price. Except as otherwise permissible under this Section 7.3,
the exercise price (“Exercise Price”) per share of Common Stock for each Option granted under the Plan shall
not be less than 100% of the Fair Market Value of such share of Common Stock, determined as of the Grant Date. In the case of an
individual who on the Grant Date owns (or is deemed to own pursuant to Section 424(d) of the Code) more than 10% of the voting
power of all classes of stock of the Company or any Subsidiary (a “Ten Percent Stockholder”), the Exercise Price
per share of Common Stock for an Incentive Stock Option shall not be less than 110% of the Fair Market Value of such share of Common
Stock on the Gant Date. An Option that is a Substitute Award may be granted with an Exercise Price lower than the Fair Market Value
of a share of Common Stock on the Grant Date if such Option is granted in a manner satisfying the provisions of Section 422 of
the Code in the case of a Substitute Award for an Option that is an Incentive Stock Option, or the provisions of Section 409A
of the Code in the case of a Substitute Award for an Option that is a Nonqualified Stock Option. 

 

7.4             
Option Term. Options granted under the Plan shall vest and become exercisable in
such manner and on such date or dates, and shall expire after such period, not to exceed 10 years, each as determined by the Committee
and set forth in the applicable Award Agreement; provided, however, the term of an Incentive Stock Option granted to a Ten Percent
Stockholder may not exceed five years.

 

7.5             
Exercise of Option. To the extent an Option has vested and become exercisable,
the Option may be exercised by the Participant in whole or in part from time to time by delivery to the Company or its designee
of a written or electronic notice of exercise, in accordance with the terms of the applicable Award Agreement and any procedures
established by the Committee for such exercise, accompanied by payment of the Exercise Price as described in Section 7.6, and payment
of any taxes required to be withheld as described in Section 10. An Option may be exercised only for whole shares. The Committee
may exclude one or more methods for exercising an Option in countries outside the United States.

 

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7.6             
Payment of Exercise Price. The aggregate Exercise Price payable upon the exercise
of an Option shall be payable: (a) in cash, check or wire transfer; (b) to the extent permitted by the Committee, by tendering
(either actually or by attestation) shares of Common Stock already owned by the Participant; (c) by delivery of a properly executed
exercise notice directing the Company to withhold shares of Common Stock issuable pursuant to exercise of the Option with a fair
market value sufficient to pay the Exercise Price; (d) if the Common Stock is publicly traded on an established securities exchange
or trading system, then the Exercise Price may be paid, at the discretion of the Committee, by authorizing a third party to sell,
on behalf of the Participant, the appropriate number of shares of Common Stock otherwise issuable to the Participant upon the exercise
of the Option and to remit to the Company a sufficient portion of the sale proceeds to pay the Exercise Price for the shares of
Common Stock being acquired; or (e) by such other consideration as the Committee may permit in its sole discretion. The Committee
may exclude one or more methods for paying the Exercise Price of an Option in countries outside the United States.

 

7.7             
Post-Termination Exercises. The Committee shall establish and set forth in each
Award Agreement that evidences an Option whether the Option shall continue to be exercisable, and the terms and conditions of such
exercise, after a termination of employment or service, any of which provisions may be waived or modified by the Committee at any
time.

 

Section 8

RESTRICTED STOCK AND RESTRICTED STOCK UNITS

 

8.1             
Grant of Restricted Stock and Restricted Stock Units. The Committee may grant Restricted
Stock and Restricted Stock Units on such terms and conditions and subject to such repurchase or forfeiture restrictions, if any
(which may be based on continuous employment with or service to the Company or a Subsidiary or the achievement of any performance
criteria), as the Committee shall determine in its sole discretion, which terms, conditions and restrictions shall be set forth
in the applicable Award Agreement.

 

8.2             
Issuance of Shares. Subject to applicable laws, upon the satisfaction of any terms,
conditions and restrictions prescribed with respect to Restricted Stock or Restricted Stock Units, or upon a Participant’s
release from any terms, conditions and restrictions of Restricted Stock or Restricted Stock Units, as determined by the Committee
in its sole discretion, and subject to the provisions of Section 10, (a) the shares of Common Stock covered by an Award
of Restricted Stock shall become freely transferable by the Participant, and (b) the Restricted Stock Units shall be paid in cash,
shares of Common Stock or a combination thereof, as the Committee shall determine in its sole discretion. Any fractional shares
subject to such Awards shall be paid to the Participant in cash.

 

8.3             
Dividends and Dividend Equivalents. Participants holding shares of Restricted Stock
or Restricted Stock Units may, if the Committee so determines, be credited with dividends paid with respect to the shares of Restricted
Stock, or dividend equivalents with respect to Restricted Stock Units, while they are so held in a manner determined by the Committee
in its sole discretion. The Committee may apply any restrictions to the dividends or dividend equivalents that the Committee deems
appropriate in its sole discretion. The Committee, in its sole discretion, may determine the form of payment of dividends or dividend
equivalents, including cash, shares of Common Stock, Restricted Stock or Restricted Stock Units.

 

8.4             
Waiver of Restrictions. Notwithstanding any other provisions of the Plan, the Committee,
in its sole discretion, may waive the repurchase or forfeiture period and any other terms, conditions or restrictions on any Restricted
Stock or Restricted Stock Unit under such circumstances and subject to such terms and conditions as the Committee shall deem appropriate
in its sole discretion, including upon the occurrence of a Participant’s death, disability or retirement, or upon a change
in control.

 

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Section 9

OTHER AWARDS

 

In addition to the
Awards described in Section 7 and Section 8, and subject to the terms of the Plan, the Committee may grant other incentives
payable in cash or in shares of Common Stock under the Plan as it determines to be in the best interests of the Company and subject
to such other terms and conditions as it deems appropriate in its sole discretion. The Committee may exclude the use of one or
more other Awards in countries outside the United States.

 

Section 10

WITHHOLDING

 

To the extent required
by applicable federal, state, local or foreign law, a Participant (or authorized transferee) shall make arrangements satisfactory
to the Company for the satisfaction of any withholding tax obligations that arise by reason of the grant, vesting, exercise or
payment of an Award. The Company shall not be required to issue shares of Common Stock or to recognize the disposition of such
shares until such obligations are satisfied. Subject to applicable law, the Company may: (a) deduct from any cash payment
made to a Participant under the Plan an amount that satisfies all or any portion of any withholding tax obligations; (b) require
the Participant through payroll withholding, cash payment, or otherwise to satisfy all or any portion of the withholding tax obligations;
(c) withhold a portion of the shares of Common Stock that otherwise would be issued to the Participant upon grant, vesting
or exercise of the Award by considering applicable minimum statutory withholding rates or other applicable withholding rates, including
maximum applicable rates; (d) to the extent permitted by the Committee in its sole discretion, allow the Participant to tender
shares of Common Stock previously acquired; (e) if the Common Stock is publicly traded on an established securities exchange
or trading system, at the discretion of the Committee, allow the Participant to authorize a third party to sell, on behalf of the
Participant, the appropriate number of shares of Common Stock otherwise issuable to the Participant upon the exercise of an Option
and to remit to the Company a sufficient portion of the sale proceeds to satisfy the withholding tax obligations, considering applicable
minimum statutory withholding rates or other applicable withholding rates, including maximum applicable rates; or (f) provide
for the satisfaction of any withholding tax obligation through any combination of the foregoing methods. The Committee may exclude
one or more methods for satisfying any tax withholding associated with the exercise of an Option in countries outside the United
States.

 

Section 11

ASSIGNABILITY

 

Unless provided otherwise
by the Committee, no Award or interest in an Award may be sold, assigned, pledged (as collateral for a loan or as security for
the performance of an obligation or for any other purpose) or transferred by the Participant or made subject to attachment or similar
proceedings otherwise than by will or by the applicable laws of descent and distribution, except to the extent a Participant designates
one or more beneficiaries on a Company-approved form who may exercise the Award or receive payment under the Award after the Participant’s
death. During a Participant’s lifetime, an Award may be exercised only by the Participant.

 

Section 12

ADJUSTMENTS

 

12.1         
Adjustment of Shares.

 

(a)              
In the event that the number of shares of Common Stock shall be increased or decreased through reorganization, reclassification,
recapitalization, combination of shares, stock splits, reverse stock splits, spin-offs, the payment of a stock dividend or extraordinary
cash dividend, or other distribution of the Common Stock for which no consideration is received by the Company or otherwise, then
each share of Common Stock which has been authorized for issuance under the Plan, whether such share is then currently subject
to or may become subject to an Award under the Plan, shall be adjusted as determined by the Committee in its exclusive discretion
to reflect such increase or decrease, unless the terms of the transaction provide otherwise. Outstanding Awards shall also be adjusted
as to price and other terms as determined by the Committee in its exclusive discretion to reflect the foregoing events.

 

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(b)              
In the event there shall be any other change in the number or kind of the outstanding shares of Common Stock, or any stock
or other securities into which such Common Stock shall have been changed, or for which it shall have been exchanged, whether by
reason of merger, consolidation or otherwise, then the Committee shall, in its sole discretion, determine the appropriate adjustment,
if any, to be effected. Notwithstanding anything to the contrary herein, any adjustment to Awards granted pursuant to the Plan
shall comply with the applicable requirements, provisions and restrictions of the Code and applicable law.

 

(c)              
No right to purchase fractional shares shall result from any adjustment in Awards pursuant to Section 12.1(a) or (b). In
case of any such adjustment, the shares subject to the Award shall be rounded down to the nearest whole share. Notice of any adjustment
shall be given by the Company to each Participant which shall have been so adjusted and such adjustment (whether or not notice
is given) shall be effective and binding for all purposes of the Plan.

 

12.2         
Limitations. The grant of Awards shall in no way affect the Company’s right
to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate
or sell or transfer all or any part of its business or assets.

 

Section 13

AMENDMENT AND TERMINATION

 

13.1         
Amendment, Suspension or Termination of Plan. Subject to applicable law, the Board
may amend, suspend or terminate the Plan or any portion of the Plan at any time and in such respects as it shall deem advisable;
provided, however, that, to the extent required by applicable law, stockholder approval shall be required for any amendment to
the Plan. No amendment may be effective, without the approval of the stockholders of the Company, if approval of such amendment
is required in order that transactions in Company securities under the Plan be exempt from the operation of Section 16 of the Exchange
Act or if such amendment, with respect to the issuance of Incentive Stock Options, either: (a) materially increases the number
of shares of Common Stock which may be issued under the Plan, except as provided for in Section 12; or (b) materially modifies
the requirements as to eligibility for participation in the Plan (unless designed to comport with applicable law). The amendment,
suspension or termination of the Plan or a portion thereof or the amendment of an outstanding Award shall not, without the Participant’s
consent, materially adversely affect any rights under any Award theretofore granted to the Participant under the Plan.

 

13.2         
Amendment of Awards. Subject to applicable law and the Plan, the Committee will
have the exclusive authority and discretion to amend any Award or Award Agreement. If the amendment will have a material adverse
effect on a Participant’s rights, or result in a material increase in the Participant’s obligations, the Committee
must obtain the Participant’s written consent to the amendment. 

 

13.3         
Term of the Plan. Unless sooner terminated as provided herein, the Plan shall terminate
10 years from the Effective Date. After the Plan is terminated, no future Awards may be granted, but Awards previously granted
shall remain outstanding in accordance with their applicable terms and conditions and the Plan’s terms and conditions.

 

Section 14

GENERAL

 

14.1         
No Individual Rights. No individual or Participant shall have any claim to be granted
any Award under the Plan, and the Company has no obligation for uniformity of treatment of Participants under the Plan. Furthermore,
nothing in the Plan or any Award granted under the Plan shall be deemed to constitute an employment contract or confer or be deemed
to confer on any Participant any right to continue in the employ or service of, or to continue any other relationship with, the
Company or any Subsidiary, or limit in any way the right of the Company or any Subsidiary to terminate a Participant’s employment,
service or other relationship at any time, with or without cause.

 

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14.2         
Issuance of Shares. In the event that the Board or the Committee determines in
its sole discretion that the listing, qualification or registration of the shares issued under the Plan on any securities exchange
or quotation or trading system or under any applicable law (including state securities laws) or governmental regulation is necessary
as a condition to the issuance of such shares under the Award, the Award may not be exercised in whole or in part unless such listing,
qualification, consent or approval has been unconditionally obtained.

 

14.3         
No Rights as Stockholder. Unless otherwise determined by the Committee in its discretion,
a Participant to whom an Award of Restricted Stock has been made shall have ownership of such shares of Common Stock, including
the right to vote the same and to receive dividends or other distributions made or paid with respect to such Common Stock. Unless
otherwise determined by the Committee in its discretion, a Participant to whom an Award of Options, Restricted Stock Units or any
other Award (other than an Award of Restricted Stock) is made shall have no rights as a stockholder with respect to any shares
of Common Stock or as a holder with respect to other securities, if any, issuable pursuant to any such Award until the date of
the issuance of a stock certificate to the Participant or the entry on the Participant’s behalf of an uncertificated book
position on the records of the Company’s transfer agent and registrar for such Common Stock or other instrument of ownership,
if any. Except as provided in Section 12, no adjustment shall be made for dividends, distributions or other rights (whether
ordinary or extraordinary, and whether in cash, securities, other property or other forms of consideration, or any combination
thereof) for which the record date is prior to the date such book entry is made or a stock certificate or other instrument of ownership,
if any, is issued.

 

14.4         
No Trust or Fund. The Plan is intended to constitute an “unfunded”
plan. Nothing contained herein shall require the Company to segregate any monies or other property, or shares of Common Stock,
or to create any trusts, or to make any special deposits for any immediate or deferred amounts payable to any Participant, and
no Participant shall have any rights that are greater than those of a general unsecured creditor of the Company.

 

14.5         
Successors. All obligations of the Company under the Plan with respect to Awards
shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect
purchase, merger, consolidation, or otherwise, of all or substantially all the business and/or assets of the Company.

 

14.6         
Substitute Awards. Notwithstanding any other provision of the Plan, the terms of
Substitute Awards may vary from the terms set forth in the Plan to the extent the Committee deems appropriate to conform, in whole
or in part, to the provisions of the awards in substitution for which they are granted.

 

14.7         
Severability. If any provision of the Plan or any Award is determined to be invalid,
illegal or unenforceable in any jurisdiction, or as to any person, or would disqualify the Plan or any Award under any law deemed
applicable by the Committee, such provision shall be construed or deemed amended to conform to applicable laws, or, if it cannot
be so construed or deemed amended without, in the Committee’s determination, materially altering the intent of the Plan or
the Award, such provision shall be stricken as to such jurisdiction, person or Award, and the remainder of the Plan and any such
Award shall remain in full force and effect.

 

14.8         
Choice of Law. The Plan, all Awards granted thereunder and all determinations made
and actions taken pursuant hereto, to the extent not otherwise governed by the laws of the United States, shall be governed by
the laws of the State of Delaware, without giving effect to principles of conflicts of law.

 

14.9         
Electronic Delivery and Signatures. Any reference in the Plan, an Award or an Award
Agreement to a written document includes without limitation any document delivered electronically or posted on the Company’s
or a Subsidiary’s intranet or other shared electronic medium controlled by the Company or Subsidiary. The Committee and any
Participant may use facsimile and PDF signatures in signing any Award or Award Agreement, in exercising any Option, or in any other
written document in the Plan’s administration. The Committee and each Participant are bound by facsimile and PDF signatures,
and acknowledge that the other party relies on facsimile and PDF signatures.

 

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14.10     
Headings and Captions. The headings and captions in the Plan are used only for
convenience, and do not construe, define, expand, interpret, or limit any provision of the Plan.

 

14.11     
Gender and Number. Whenever the context may require, any pronoun includes the corresponding
masculine, feminine, or neuter form, and the singular includes the plural and vice versa.

 

14.12     
Construction. The terms “includes,” “including,” “includes
without limitation,” and “including without limitation” are not to be construed to limit any provision or item
that precedes or follows these terms (whether in the same section or another section) to the specific or similar provisions or
items that follow these terms. 

 

Section 15

EFFECTIVE DATE

 

The Plan shall be effective
as of the earlier of the date that the Plan is adopted by the Board or the date that it is approved by the stockholders of the
Company (the “Effective Date”). The expiration date of the Plan, on and after which date no Awards may be granted
hereunder, shall be the 10th anniversary of the Effective Date; provided, however, that such expiration shall not affect Awards
then outstanding, and the terms and conditions of the Plan shall continue to apply to such Awards; and provided further, that no
Option shall be exercised, no Restricted Stock granted, and no Restricted Stock Units or other Awards shall be paid out unless
and until the Plan has been approved by the stockholders of the Company, which approval shall be within 12 months before or after
the date the Plan is adopted by the Board. If the Company does not obtain stockholder approval within 12 months before or after
the date the Plan is adopted by the Board, the Plan and any Award made thereunder will terminate ab initio.

 

*****

 

    10Exhibit 10.2

 

JERASH HOLDINGS
(US), INC.

2018 STOCK
INCENTIVE PLAN

 

OPTION AWARD NOTICE

 

Jerash Holdings (US),
Inc. hereby grants to the Participant named below an Option to purchase all or any part of the Number of Shares of Common Stock
covered by this Option specified below, at the Exercise Price (per share) specified below, and upon the terms and conditions set
forth in the Jerash Holdings (US), Inc. 2018 Stock Incentive Plan and the Award Agreement attached hereto. Capitalized terms not
otherwise defined in this Award Notice shall have the meanings set forth in the Plan.

 

	Name of Participant:	 
	Grant Date:	 
	Number of Shares of Common Stock covered by this Option:	 
	Option Type:	Nonqualified Stock Option
	Exercise Price (per share): 	$__________
	Expiration Date:	 
	Vesting Schedule: 	 

 

By accepting this Option,
the Participant acknowledges that he or she has received and read, and agrees that this Option shall be subject to, the terms of
the Plan and the attached Award Agreement. The Participant acknowledges that a copy of the Plan has been delivered to the Participant.
The Participant acknowledges that there may be adverse tax consequences upon exercise of the Option or disposition of the underlying
shares of Common Stock, and that the Participant should consult a tax advisor prior to such exercise or disposition.

 

	JERASH HOLDINGS (US), INC.	 	PARTICIPANT
	 	 	 
	 	 	 
	By:  	 	 	 
	Name (print):	 	 
	Title:

	 	 

 

	 	Participant’s
Address (complete)	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

 

		Attachments:	2018 Stock Incentive Plan
	 	 	Option Award Agreement
with Appendix A

 

     

     

    

 

jerash holdings
(us), INC.

2018 STOCK
INCENTIVE PLAN

 

OPTION AWARD
AGREEMENT

(employee)

 

This Award Agreement
applies to Options granted under the Jerash Holdings (US), Inc. 2018 Stock Incentive Plan that are identified as Nonqualified Stock
Options and are evidenced by an action of the Committee.

 

Section 1.               
Terms of Option.
Jerash Holdings (US), Inc. has granted to the Participant an Option to purchase up to the Number of Shares of Common Stock, at
the Exercise Price (per share) and upon the other terms set forth in the Award Notice and subject to the conditions set forth in
the Award Notice, this Award Agreement and the Plan.

 

Section 2.               
Non-Qualified Stock Option.
The Option is not intended to be an incentive stock option under Section 422 of the Code and will be interpreted accordingly.

 

Section 3.               
Vesting.
The Option will vest in accordance with the schedule set forth in the Award Notice.

 

Section 4.               
Exercise of Option.

 

(a)              
Vesting and Exercisability. The Option is not exercisable as of the Grant Date. After the Grant Date, to the extent
not previously exercised, and subject to termination or acceleration as provided on the Award Notice or in this Award Agreement,
the Option shall vest and become exercisable to the extent it becomes vested, according to the vesting schedule set forth in the
Award Notice, provided that (except as set forth in Section 5 below) the Participant remains employed with the Company or
a Subsidiary or continues providing services to the Company or a Subsidiary and does not experience a termination of employment
or service. The vesting period and/or exercisability of an Option may be adjusted by the Committee to reflect the decreased level
of employment or service during any period in which the Participant is on an approved leave of absence.

 

(b)              
Method of Exercise. To the extent the Option vests and becomes exercisable, the Option maybe exercised by the Participant
in whole or in part from time to time by delivery to the Company or its designee of a written or electronic notice of exercise
specifying the number of whole shares of Common Stock the Participant wishes to exercise, accompanied by payment of the Exercise
Price as described in Section 4(c), and payment of any taxes required to be withheld as described in Section 8. Fractional
shares may not be exercised. The Participant must provide the Company with any forms, documents or other information reasonably
required by the Company. The Committee may exclude one or more methods for exercising an Option in countries outside the United
States.

 

(c)              
Payment of Exercise Price. The Exercise Price (per share) of the Option is set forth in the Award Notice and the
Company will not issue any shares of Common Stock until the Participant pays the aggregate Exercise Price for the requested number
of shares of Common Stock, together with any taxes required to be withheld, if applicable. The Exercise Price may be paid: (i)
by cash, check or wire transfer in United States dollars; (ii) to the extent permitted by the Committee, by tendering (either actually
or by attestation) shares of Common Stock already owned by the Participant; (iii) by delivery of a properly executed exercise notice
directing the Company to withhold shares of Common Stock issuable pursuant to exercise of the Option with a Fair Market Value sufficient
to pay the Exercise Price; (iv) if the Common Stock is publicly traded on an established securities market, then the Exercise Price
may be paid, at the discretion of the Committee, by authorizing a third party to sell, on behalf of the Participant, the appropriate
number of shares of Common Stock otherwise issuable to the Participant upon the exercise of the Option and to remit to the Company
a sufficient portion of the sale proceeds to pay the Exercise Price for the shares of Common Stock being acquired; or (v) by such
other consideration as the Committee may permit in its sole discretion. The Committee may exclude one or more methods for paying
the Exercise Price in countries outside the United States.

 

    	 	 2	 

     

    

  

(d)              
Issuance of Shares. Shares of Common Stock will be issued as soon as practical after exercise. Delivery of shares
of Common Stock may be made by any permissible manner chosen by the Company in its sole discretion.

 

(e)              
Compliance with Laws. Notwithstanding the above, if the Board of Directors or the Committee determines in its sole
discretion that the listing, qualification or registration of the Common Stock on any securities exchange or quotation or trading
system or under any applicable law (including state securities laws) or governmental regulation is necessary or desirable as a
condition to the issuance of such Common Stock under the Option, the Option may not be exercised in whole or in part unless such
listing, qualification, consent or approval has been unconditionally obtained. In addition, legal counsel for the Company must
be satisfied at the time of exercise that issuance of shares of Common Stock upon exercise will be in compliance with the applicable
United States federal, state, local and foreign laws.

 

(f)               
No Stockholder Rights until Issuance. The Participant shall not acquire or have any rights as a stockholder of the
Company by virtue of the Option, this Award Agreement or the Award Notice until certificates representing shares of Common Stock
are actually issued and delivered to the Participant following the exercise of the Option.

 

Section 5.               
Expiration of Option.
Except as provided in this Section 5, the Option shall expire and cease to be exercisable as of the Expiration Date set forth
in the Award Notice.

 

(a)              
Termination of Employment or Service. If the employment or service of the Participant terminates for any reason (other
than by death or total and permanent disability) at any time, the vested portion of the Option shall be exercisable by the Participant
at any time during the three months next succeeding the date of termination (but in no event later than the Expiration Date of
the Option). The unvested portion of the Option shall terminate as of the date of such termination, and the vested portion of the
Option that is unexercised during the three months next succeeding the date of termination shall terminate as of the end of such
three-month period.

 

(b)              
Death. Upon the death of the Participant while in the employ or service of the Company or a Subsidiary, the vested
portion of the Option shall be exercisable by his or her estate, heir, beneficiary or any person who acquires the right to exercise
the Option by reason of the Participant’s death at any time during the 12 months next succeeding the date of death (but in
no event later than the Expiration Date of the Option). The unvested portion of the Option shall terminate as of the date of death,
and the vested portion of the Option that is unexercised during the 12 months next succeeding the date of death shall terminate
as of the end of such 12-month period.

 

    	 	 3	 

     

    

 

(c)              
Disability. Upon termination of employment or service as a result of the total and permanent disability of the Participant
(within the meaning of Section 22(e)(3) of the Code), the vested portion of the Option shall be exercisable for a period of 12
months after such termination (but in no event later than the Expiration Date of the Option). The unvested portion of the Option
shall terminate effective as of the date of termination of employment or service, and the vested portion of the Option that is
not exercised during the 12 months succeeding the date of termination shall terminate as of the end of such 12-month period.

 

Section 6.               
Change in Control.

 

(a)              
Effect of Change in Control on Awards. The Committee may provide for any one or more of the following:

 

(i)                
Accelerated Vesting. In the event of a Change in Control, the Committee may take such actions as it deems appropriate
to provide for the acceleration of the exercisability, vesting and/or settlement in connection with such Change in Control of this
Award or portion thereof and shares acquired pursuant thereto upon such conditions, including termination of the Participant’s
employment or service prior to, upon, or following such Change in Control, to such extent as the Committee shall determine.

 

(ii)             
Assumption, Continuation or Substitution. In the event of a Change in Control, the surviving, continuing, successor,
or purchasing corporation or other business entity or parent thereof, as the case may be (the “Acquiror”), may,
without the consent of the Participant, either assume or continue the Company’s rights and obligations under this Award or
portion thereof outstanding immediately prior to the Change in Control or substitute for this Award or portion thereof a substantially
equivalent award with respect to the Acquiror’s stock, as applicable. For purposes of this Section 6, if so determined
by the Committee, in its discretion, an Award denominated in shares of Common Stock shall be deemed assumed if, following the Change
in Control, the Award confers the right to receive, subject to the terms and conditions of the Plan, this Award Agreement and the
Award Notice, for each share of Common Stock subject to the Award immediately prior to the Change in Control, the consideration
(whether stock, cash, other securities or property or a combination thereof) to which a holder of a share of Common Stock on the
effective date of the Change in Control was entitled; provided, however, that if such consideration is not solely common stock
of the Acquiror, the Committee may, with the consent of the Acquiror, provide for the consideration to be received upon the exercise
or settlement of the Award, for each share of Common Stock subject to the Award, to consist solely of common stock of the Acquiror
equal in fair market value to the per share consideration received by holders of Common Stock pursuant to the Change in Control.
If any portion of such consideration may be received by holders of Common Stock pursuant to the Change in Control on a contingent
or delayed basis, the Committee may, in its sole discretion, determine such fair market value per share as of the time of the Change
in Control on the basis of the Committee’s good faith estimate of the present value of the probable future payment of such
consideration. The Award or portion thereof which is neither assumed or continued by the Acquiror in connection with the Change
in Control nor exercised as of the time of consummation of the Change in Control shall terminate and cease to be outstanding effective
as of the time of consummation of the Change in Control.

 

    	 	 4	 

     

    

 

(iii)           
Cash-Out of Awards. The Committee may, in its discretion and without the consent of the Participant, determine that,
upon the occurrence of a Change in Control, this Award or a portion thereof outstanding immediately prior to the Change in Control
and not previously exercised shall be canceled in exchange for a payment with respect to each vested share of Common Stock (and
each unvested share of Common Stock, if so determined by the Committee) subject to such canceled Award in: (A) cash, (B) stock
of the Company or of a corporation or other business entity a party to the Change in Control, or (C) other property which, in any
such case, shall be in an amount having a fair market value equal to the fair market value of the consideration to be paid per
share of Common Stock in the Change in Control, reduced by the exercise or purchase price per share under such Award. In the case
of any Option with an Exercise Price that equals or exceeds the price paid for a share of Common Stock in connection with the Change
in Control, the Committee may cancel the Option without the payment of any consideration. If any portion of such consideration
may be received by holders of Common Stock pursuant to the Change in Control on a contingent or delayed basis, the Committee may,
in its sole discretion, determine such fair market value per share as of the time of the Change in Control on the basis of the
Committee’s good faith estimate of the present value of the probable future payment of such consideration. In the event such
determination is made by the Committee, the amount of such payment (reduced by applicable withholding taxes, if any) shall be paid
to the Participant in respect of the vested portion of his or her canceled Award as soon as practicable following the date of the
Change in Control and in respect of the unvested portions of his or her canceled Award in accordance with the vesting schedules
applicable to such Award.

 

(b)              
Definitions.

 

(i)                
“Change in Control” means, unless such term or an equivalent term is otherwise defined with respect to
this Award by the Participant’s written contract of employment or service, the occurrence of any of the following events:

 

A.               
any Exchange Act Person (as defined below) becomes the owner, directly or indirectly, of securities of the Company representing
more than 50% of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger,
consolidation or similar transaction. Notwithstanding the foregoing, a Change in Control shall not be deemed to occur (1) on account
of the acquisition of securities of the Company by an investor, any affiliate thereof or any other Exchange Act Person from the
Company in a transaction or series of related transactions the primary purpose of which is to obtain financing for the Company
through the issuance of equity securities or (2) solely because the level of ownership held by any Exchange Act Person (the “Subject
Person”) exceeds the designated percentage threshold of the outstanding voting securities as a result of a repurchase
or other acquisition of voting securities by the Company reducing the number of shares outstanding, provided that if a Change in
Control would occur (but for the operation of this sentence) as a result of the acquisition of voting securities by the Company,
and after such share acquisition, the Subject Person becomes the owner of any additional voting securities that, assuming the repurchase
or other acquisition had not occurred, increases the percentage of the then outstanding voting securities owned by the Subject
Person over the designated percentage threshold, then a Change in Control shall be deemed to occur;

 

    	 	 5	 

     

    

 

B.                
there is consummated a merger, consolidation or similar transaction involving (directly or indirectly) the Company and,
immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately
prior thereto do not own, directly or indirectly, either (1) outstanding voting securities representing more than 50% of the combined
outstanding voting power of the surviving entity in such merger, consolidation or similar transaction or (2) more than 50% of the
combined outstanding voting power of the parent of the surviving entity in such merger, consolidation or similar transaction, in
each case in substantially the same proportions relative to each other as their ownership of the outstanding voting securities
of the Company immediately prior to such transaction;

 

C.                
the complete dissolution or liquidation of the Company;

 

D.               
there is consummated a sale, lease, exclusive license or other disposition of all or substantially all of the consolidated
assets of the Company and its Affiliates, other than a sale, lease, license or other disposition of all or substantially all of
the consolidated assets of the Company and its Affiliates to an entity, more than 50% of the combined voting power of the voting
securities of which are owned by stockholders of the Company in substantially the same proportions relative to each other as their
ownership of the outstanding voting securities of the Company immediately prior to such sale, lease, license or other disposition;
or

 

E.                
individuals who, immediately following the Effective Date, are members of the Board (the “Incumbent Board”)
cease for any reason to constitute at least a majority of the members of the Board within any 24-month period; provided, however,
that if the appointment or election (or nomination for election) of any new Board member was approved or recommended by a majority
vote of the members of the Incumbent Board then still in office, such new member shall be considered as a member of the Incumbent
Board.

 

(ii)             
“Affiliate” means any corporation (other than the Company), limited liability company, or other business
organization in an unbroken chain of entities beginning with the Company if, at the relevant time each of the entities other than
the last entity in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock
in one of the other entities in that chain.

 

(iii)           
“Exchange Act Person” means any natural person, entity or “group” (within the meaning of
Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended), except that “Exchange Act Person” shall
not include (A) the Company or any Affiliate of the Company, (B) any employee benefit plan of the Company or any Affiliate of the
Company or any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Affiliate of
the Company, (C) an underwriter temporarily holding securities pursuant to an offering of such securities, (D) an entity owned,
directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of
the Company; or (E) any natural person, entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange
Act) that, as of the Effective Date, is the owner, directly or indirectly, of securities of the Company representing more than
50% of the combined voting power of the Company’s then outstanding securities.

 

    	 	 6	 

     

    

  

Section 7.               
Restrictions on Resales of Option Shares.
The Company may impose such restrictions, conditions or limitations as it determines appropriate as to the timing and manner of
any resales by the Participant or other subsequent transfers by the Participant of any shares of Common Stock issued as a result
of the exercise of the Option, including without limitation (a) restrictions under an insider trading policy, (b) restrictions
designed to delay and/or coordinate the timing and manner of sales by the Participant and other stockholders or optionholders,
and (c) restrictions as to the use of a brokerage firm acceptable to the Company for such resales or other transfers.

 

Section 8.               
Tax Withholding.
To the extent required by applicable federal, state, local or foreign law, the Participant shall make arrangements satisfactory
to the Company for the satisfaction of any withholding tax obligations that arise by reason of an Option exercise. The Company
shall not be required to issue shares until such obligations are satisfied. Subject to applicable law, the Company may: (a) deduct
from any cash payment made to a Participant under the Plan an amount that satisfies all or any portion of any withholding tax obligations;
(b) require the Participant through payroll withholding, cash payment, or otherwise to satisfy all or any portion of the withholding
tax obligations; (c) withhold a portion of the shares of Common Stock that otherwise would be issued to the Participant upon
exercise of the Option by considering applicable minimum statutory withholding rates or other applicable withholding rates, including
maximum applicable rates; (d) to the extent permitted by the Committee in its sole discretion, allow the Participant to tender
shares previously acquired; (e) if the Common Stock is publicly traded on an established securities exchange or trading system,
at the discretion of the Committee, allow the Participant to authorize a third party to sell, on behalf of the Participant, the
appropriate number of shares otherwise issuable to the Participant upon the exercise of the Option and to remit to the Company
a sufficient portion of the sale proceeds to satisfy the withholding tax obligations, considering applicable minimum statutory
withholding rates or other applicable withholding rates, including maximum applicable rates; or (f) provide for the satisfaction
of any withholding tax obligation through any combination of the foregoing methods. The Committee may exclude one or more methods
for satisfying any tax withholding in countries outside the United States.

 

Section 9.               
Non-Transferability of Option.
The Option may not be sold, assigned, pledged or transferred by the Participant or made subject to attachment or similar proceedings
other than by will or the laws of descent and distribution, and shall only be exercisable by the Participant during his or her
lifetime. If the Participant or anyone claiming under or through the Participant attempts to violate this Section 9, such
attempted violation shall be null and void and without effect.

 

Section 10.           
Plan and Other Agreements.
In addition to the Award Notice and this Award Agreement, the Option shall be subject to the terms of the Plan, which are incorporated
into this Award Agreement by this reference. Any inconsistency between the Award Notice, this Award Agreement and the Plan shall
be resolved in favor of the Plan. Capitalized terms not otherwise defined herein or in the Award Notice shall have the meaning
set forth in the Plan. The Award Notice, this Award Agreement and the Plan constitute the entire understanding between the Participant
and the Company regarding the Option. Any prior agreements, commitments or negotiations concerning the Option are superseded.

 

    	 	 7	 

     

    

  

Section 11.           
Limitation of Interest in Shares Subject to Option.
Neither the Participant (individually or as a member of a group) nor any beneficiary or other person claiming under or through
the Participant shall have any right, title, interest, or privilege in or to any shares of Common Stock allocated or reserved for
the purpose of the Plan or subject to the Option subject to this Award Agreement except as to such shares of Common Stock, if any,
as shall have been issued to such person upon exercise of the Option or any part of it. Nothing in the Plan, this Award Agreement,
the Award Notice or any other instrument executed pursuant to the Plan shall confer upon the Participant any right to continue
in the Company’s employ or service nor limit in any way the Company’s right to terminate the Participant’s employment
or service at any time for any reason. Neither the Award of this Option nor any shares of Common Stock issuable pursuant thereto
shall be considered “compensation” for purposes of any Company employee benefit plan, unless such plan expressly so
provides otherwise.

 

Section 12.           
Adjustments.
To the extent provided by Section 13 of the Plan, the Committee shall make such adjustment in the Number of Shares of Common Stock
covered by this Option, the Exercise Price (per share) or other terms of the Option as may be determined to be appropriate by the
Committee, and such adjustments shall be final, conclusive and binding for all purposes.

 

Section 13.           
Amendment.
The terms of the Option, this Award Agreement and the Award Notice may be amended from time to time by the Committee. If the amendment
will have a material adverse effect on the Participant’s rights, or result in a material increase in the Participant’s
obligations, the Committee must obtain the Participant’s written consent to the amendment.

 

Section 14.           
Clawback.
Notwithstanding anything in the Plan, this Award Agreement or the Award Notice to the contrary, the Company will be entitled to
the extent required by applicable law (including, without limitation, Section 10D of the Exchange Act and any regulations promulgated
with respect thereto) or applicable securities exchange listing conditions, in each case as in effect from time to time, to recover
from the Participant, or require the Participant to forfeit if not yet paid, the Participant’s Option and the proceeds from
the exercise of the Option.

 

Section 15.           
General.

 

(a)              
Severability. In the event that any provision of this Award Agreement is declared to be illegal, invalid or otherwise
unenforceable by a court of competent jurisdiction, such provision shall be reformed, if possible, to the extent necessary to render
it legal, valid and enforceable, or otherwise deleted, and the remainder of this Award Agreement shall not be affected except to
the extent necessary to reform or delete such illegal, invalid or unenforceable provision.

 

    	 	 8	 

     

    

 

(b)              
Headings. The headings preceding the text of the sections hereof are inserted solely for convenience of reference,
and shall not constitute a part of this Award Agreement, nor shall they affect its meaning, construction or effect.

 

(c)              
Successors. This Award Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective
permitted heirs, beneficiaries, successors and assigns.

 

(d)              
Governing Law. The Plan, this Award Agreement and the Award Notice shall be governed, construed, interpreted and
administered, to the extent not otherwise governed by the laws of the United States, solely in accordance with the laws of the
State of Delaware, without regard to principles of conflicts of law.

 

(e)              
Administration, Interpretations, Etc. All questions arising under the Plan, this Award Agreement or the Award Notice
shall be decided by the Committee in its total and absolute discretion, and any action taken or decision made by the Company, the
Board or the Committee arising out of or in connection with the construction, administration, interpretation or effect of any provision
of the Plan, this Award Agreement or the Award Notice shall lie within its sole and absolute discretion, as the case may be, and
shall be final, conclusive and binding on the Participant and all persons claiming under or through the Participant. By receipt
of the Participant’s Option, the Participant and each person claiming under or through the Participant shall be conclusively
deemed to have indicated acceptance and ratification of, and consent to, any action taken under the Plan, this Award Agreement
or the Award Notice, by the Company, the Board or the Committee.

 

(f)               
Correction. The Committee may rescind, without further notice to a Participant, any Option or portion thereof issued
to the Participant in duplicate or in error.

 

(g)              
Section 409A. The Option is intended to be exempt from Section 409A of the Code, and the Plan, this Award Agreement
and the Award Notice shall be administered and interpreted consistent with such intent. Notwithstanding the foregoing, the Company
makes no representations that the Option or the vesting and payments provided by this Award Agreement are exempt from or comply
with Section 409A of the Code, and in no event shall the Company or any Subsidiary be liable for all or any portion of any taxes,
penalties, interest or other expenses that may be incurred by a Participant on account of non-compliance with Section 409A of the
Code.

 

(h)              
Other Options. Notwithstanding any other provision of this Agreement, the Company, in its sole discretion, may approve
and grant stock options that are not governed by the provisions contained in this Agreement, which stock options shall be subject
to the terms of such other agreement or writing specified by the Company as applicable thereto.

 

*****

 

    	 	 9	 

     

    

 

JERASH HOLDINGS
(us), INC.

2018 STOCK
INCENTIVE PLAN

 

Option AWARD
AGREEMENT

(employee)

 

APPENDIX
A

Non-US Participants

 

Section 1.               
Applicability.
This Appendix A shall apply to Participants in countries outside the United States; provided, however, Section 6 of this Appendix
A only applies to Participants in the countries specified therein.

 

Section 2.               
Participant Acknowledgements.
In accepting the Option, the Participant acknowledges, understands and agrees that:

 

(a)              
the Plan is established voluntarily by the Company, it is discretionary in nature, and may be amended, suspended or terminated
by the Company at any time, to the extent permitted by the Plan;

 

(b)              
the Participant is voluntarily participating in the Plan;

 

(c)              
the Option and any shares of Common Stock acquired under the Plan are not intended to replace or entitle the Participant
to any pension rights or compensation;

 

(d)              
the Option and any shares of Common Stock acquired under the Plan and the income and value of same, are not part of normal
or expected compensation for any purpose, including for purposes of calculating any severance, resignation, termination, redundancy,
dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments;

 

(e)              
the future value of the shares of Common Stock underlying the Option is unknown, indeterminable, and cannot be predicted
with certainty;

 

(f)               
if the Participant exercises the Option and acquires shares of Common Stock, the value of such shares of Common Stock may
increase or decrease in value, even below the Exercise Price;

 

(g)              
no claim or entitlement to compensation or damages shall arise from forfeiture of the Option resulting from the termination
of the Participant’s employment or other service relationship (for any reason whatsoever, whether or not later found to be
invalid or in breach of employment laws in the jurisdiction where the Participant is employed or the terms of the Participant’s
employment agreement, if any), and in consideration of the grant of the Option to which the Participant is otherwise not entitled,
the Participant irrevocably agrees never to institute any claim against the Company or any Subsidiary, waives his or her ability,
if any, to bring any such claim, and releases the Company and any Subsidiary from any such claim; if, notwithstanding the foregoing,
any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, the Participant shall be deemed
irrevocably to have agreed not to pursue such claim and agrees to execute any and all documents necessary to request dismissal
or withdrawal of such claim; and

 

    	 	 10	 

     

    

 

(h)              
the Company shall not be liable for any foreign exchange rate fluctuation between the Participant’s local currency
and the United States Dollar that may affect the value of the Option or of any amounts due to the Participant pursuant to the exercise
of the Option or the subsequent sale of any shares of Common Stock acquired upon exercise.

 

Section 3.               
No Public Offer. 

 

(a)              
This offer is being made to selected employees as part of an employee incentive program in order to provide an additional
incentive and to encourage employee share ownership and to increase their interest in the success of the Company. The company offering
these rights is Jerash Holdings (US), Inc. The shares which are the subject of these rights are shares in Jerash Holdings (US),
Inc.

 

(b)              
The Option is not intended to constitute a public offer in any jurisdiction, nor intended for registration or regulation
in any jurisdiction outside the United States. You should therefore keep the Plan, the Award Notice, the Award Agreement and all
other documents related to the Option confidential and you may not reproduce, distribute or otherwise make public the Plan, the
Award Notice, the Award Agreement or any other documents related to the Option without Jerash Holdings (US), Inc.’s express
written consent. If you have received any of these documents and you are not the intended recipient then please disregard and destroy
them.

 

Section 4.               
No Advice.
The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Participant’s
participation in the Plan, or the Participant’s acquisition or sale of the underlying shares of Common Stock. The Participant
is hereby advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation
in the Plan before taking any action related to the Plan.

 

Section 5.               
Data Privacy.

 

(a)              
The Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other
form, of his or her personal data as described on the Award Notice, set forth in this Award Agreement and the Plan and any other
Option grant materials by and among, as applicable, the Company and any Subsidiary for the exclusive purpose of implementing, administering
and managing the Participant’s participation in the Plan.

 

(b)              
The Participant understands that the Company and any Subsidiary may hold certain personal information about the Participant,
including, but not limited to, his or her name, home address and telephone number, date of birth, social insurance number or other
identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all
awards or any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in the Participant’s
favor (“Data”), for the exclusive purpose of implementing, administering and managing the Plan.

 

    	 	 11	 

     

    

 

(c)              
The Participant understands that Data will be transferred to such stock plan service provider as may be selected by the
Company, which may assist the Company with the implementation, administration and management of the Plan. The Participant understands
that the recipients of the Data may be located in the United States or elsewhere, and that the recipient’s country may have
different data privacy laws and protections than the Participant’s country. The Participant understands that if he or she
resides outside the United States, he or she may request a list with the names and addresses of any potential recipients of the
Data by contacting his or her local human resources representative. The Participant authorizes the Company and any other possible
recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to
receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purposes of implementing, administering
and managing the Participant’s participation in the Plan. The Participant understands that Data will be held only as long
as is necessary to implement, administer and manage his or her participation in the Plan. The Participant understands that if he
or she resides outside the United States, he or she may, at any time, view Data, request additional information about the storage
and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without
cost, by contacting in writing his or her local human resources representative. Further, the Participant understands that he or
she is providing the consents herein on a purely voluntary basis. If he or she does not consent, or if he or she later seeks to
revoke his or her consent, his or her employment status or service and career with the Company or any Subsidiary will not be adversely
affected; the only adverse consequence of refusing or withdrawing consent is that the Company would not be able to grant the Participant
Options or other equity awards or administer or maintain such awards. Therefore, the Participant understands that refusing or withdrawing
his or her consent may affect his or her ability to participate in the Plan. For more information on the consequences of refusal
to consent or withdrawal of consent, the Participant understands that he or she may contact his or her local human resources representative.

 

Section 6.               
Country Specific Provisions.

 

This Section 6
includes additional terms and conditions that govern the Option granted to a Participant under the Plan if he or she in one of
the countries listed below.

 

This Section 6
may also include information regarding exchange controls and certain other issues of which the Participant should be aware with
respect to participation in the Plan. The information is based on the securities, exchange control, and other laws in effect in
the respective countries as of February 2018. Such laws are often complex and change frequently. As a result, the Company strongly
recommends that Participants not rely on the information in this Section 6 as the only source of information relating to the
consequences of his or her participation in the Plan because the information may be out of date at the time the Participant exercises
the Option or sells shares of Common Stock acquired under the Plan.

 

In addition, the information
contained herein is general in nature and may not apply to a Participant’s particular situation, and the Company is not in
a position to assure a Participant of a particular result. Accordingly, Participants are advised to seek appropriate professional
advice as to how the relevant laws in your country may apply to his or her situation.

 

    	 	 12	 

     

    

  

Finally, if a Participant
is a citizen or resident of a country other than the one in which he or she is currently working, transferred employment after
the Option was granted or are considered a resident of another country for local law purposes, the information contained herein
may not be applicable or suitable to the Participant’s particular situation as he or she may have tax liabilities across
more than one jurisdiction. Further, the Company shall, in its discretion, determine to what extent the terms and conditions contained
herein shall apply to a Participant in this circumstance, but the Participant should seek independent advice on how his or her
tax liabilities and reporting obligations should be settled.

 

Jordan

 

There are no country-specific provisions.

 

Hong Kong

 

Securities Law Information

 

Important Notice: The grant
of the Option under the terms of the Plan, the Award Notice and the Award Agreement, including this Appendix A, and the issuance
of shares of Common Stock upon exercise of the Option do not constitute a public offering of securities, they are available only
to certain employees of the Company, and the rights under the Option may not be transferred to a third party in Hong Kong.

 

Please be aware that the contents of the
Plan, the Award Notice and the Award Agreement, including this Appendix A, have not been reviewed by or filed with any regulatory
authority in Hong Kong. Participants are advised to exercise caution in relation to the right to acquire shares of Common Stock
at vesting of the Option, or otherwise, under the Plan. If a Participant is in any doubt about any of the contents of the Plan,
the Award Notice or the Award Agreement, including this Appendix A, the Participant should obtain independent professional advice.

 

Sale of Shares

 

By accepting the Option, a Participant
acknowledges that in the event that the Option vests, is exercised and shares of Common Stock are issued to him or her within six
months of the Grant Date, there may be adverse tax consequences to the Participant if he or she disposes of any shares of Common
Stock acquired prior to the six-month anniversary of the Grant Date.

 

*****

 

    	 	 13

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