Document:

Exhibit 10.4

 

 

 

Commercial Banking - GP4 Major 1

(CARM 170310 / 170524 & CM 170328)

 

CONFIDENTIAL

Treasure Success International Limited

19/F Ford Glory Plaza

37-39 Wing Hong Street

Cheung Sha Wan

Kowloon 

29 May 2017 

Attn : Mr Samuel Choi

 

Dear Sir

 

BANKING FACILITIES

 

With reference to our recent discussions, we
are pleased to confirm our agreement to granting you the following facilities. The facilities will be made available subject to
(a) the specific terms and conditions outlined herein; (b) the Bank’s Terms and Conditions for Facilities; and (c) the general
terms and conditions governing your account(s) with the Bank or (as the case may be) the relationship terms of business. In case
of any conflict, the terms of this Facility Letter shall prevail. Definitions contained in the Bank’s Terms and Conditions for
Facilities apply to this Facility Letter. The Bank shall have an unrestricted discretion to cancel or suspend, or determine whether
or not to permit drawings in relations to, the facilities. The facilities are subject to review at any time and in any event by
1 May 2018, and also subject to the Bank’s overriding right of repayment on demand including the right to call for cash cover on
demand for prospective and contingent liabilities.

 

In the event of a renewal of the facilities
next year or by 1 May 2018, whichever is earlier, the Bank will issue a renewal notification letter to confirm the continuation
of the latest available facilities. A review fee will be advised and this shall be debited automatically from the Borrower(s)’s
account within 1 month of the issuance of the renewal notification letter.

 

BORROWER(S)

 

	Treasure Success International Limited	[Customer No.741-027148]

 

	FACILITIES	 	Limit
	 	 	 
	Combined Limit for the following facilities	 	USD8,000,000.-
	within which the following sub-limits apply:	 	 

 

	(a) 	Import Facilities	USD8,000,000.-
	 	(Usance period up to 120 days)	 
	 	 	 
	 	Notwithstanding the foregoing, the
Bank’s overriding right to demand repayment at any time shall not be affected.

  

	The Hongkong and Shanghai Banking Corporation Limited	 

HSBC Main Building, 1 Queen’s Road Central, Hong Kong 

Tel: (852)2822 1111 

Web: www.hsbc.com.hk

 

Incorporated in the Hong Kong SAR with limited liability 

Registered at the Hong Kong Companies Registry No. 263876

 

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	Treasure Success International Limited	29 May 2017

 

	 	 	Limit
	 	 	 
	(b)	Loan Against Import (“LAI”)	USD8,000,000.-
	 	(Maximum Tenor 120 days)	 

 

Notwithstanding the foregoing, the
Bank’s overriding right to demand repayment at any time shall not be affected.

 

	(c)	Trust Receipts	USD8,000,000.-

 

	(d)	Clean Import Loan	USD8,000,000.-
	 	(Maximum tenor 120 days)	 

 

Notwithstanding the foregoing,
the Bank’s overriding right to demand repayment at any time shall not be affected.

 

	(e)	Advance to Manufacturer against Purchase Order	USD8,000,000.-
	 	(Maximum tenor: 120 days)	 

 

Notwithstanding the foregoing,
the Bank’s overriding right to demand repayment at any time shall not be affected.

 

Notwithstanding the limits set
out above, the aggregate outstanding of the above items:

		-	(a), (b) and (c) shall at no time exceed USD8,000,000.-.

		-	(b) and (c) shall at no time exceed USD8,000,000.-.

		-	(b), (c), (d) and (e) shall at no time exceed USD8,000,000.-.

 

Documents presented to the Bank for drawings
under trade related facilities must reflect and relate to a genuine transaction. Where documents presented are not in the original
form, copies of such documents presented must strictly conform to the original. Please note that drawings without underlying transaction,
or presentation of forged or fraudulent documentation can render companies and/or persons involved liable to prosecution.

 

SECURITY AND OTHER DOCUMENTATION

 

The Bank will require to hold the following
security document(s) and other document(s) in form and substance satisfactory to the Bank:

 

		1.	A Guarantee (Unlimited Amount) from Choi Lin Hung and Ng
Tsze Lun.

 

		2.	A Guarantee (Unlimited Amount) from Jerash Garments and Fashions Manufacturing Company Limited
[“JGL”]. We attach our standard Guarantee (Unlimited Amount). Please arrange to sign and return it to us together with
the supporting board resolution(s). This Guarantee will be supported by an “Assignment of Receivables - General” granted
by JGL. We attach our standard “Assignment of Receivables - General”. Please sign and return to us the document(s) together
with the supporting board resolution(s).

 

This “Assignment of Receivables
- General” needs to be registered with the Companies Registry. Please sign and return the “Assignment of Receivables
- General” within 5 business days of execution. The related registration fee (currently HKD340.- per document) will be charged
to the debit of the Borrower’s current account.

 

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	Treasure Success International Limited	29 May 2017

 

		3.	A Guarantee (Unlimited Amount) from Jerash Holdings (US)
Inc [“JHI”] together with:

 

		(a)	a certified copy of a Board Resolution, signed sealed by the Secretary or Assistant Secretary of
JHI authorising a named person to execute the guarantee.

 

		(b)	a Certificate of Incumbency signed sealed by the Secretary or Assistant Secretary identifying the
individual authorized to issue the guarantee.

 

		(c)	a Counsel Opinion in the substantially form set out in
legal opinions item O(2). 

 

We attach our standard Guarantee (Unlimited Amount).

 

The authorised signatories of JHI
should be duly verified by their bankers. Please also let the Bank have a certified copy of Certificate of Incorporation, Articles
of Association and List of current directors of JHI for the Bank’s records.

 

		4.	A “Charge over Securities and Deposits (Unlimited Amount)” granted by the Borrower(s).
We attach our standard “Charge over Securities and Deposits (Unlimited Amount)”. Please arrange to sign and return to
us the document(s) together with the supporting board resolution(s).

 

The Bank has sole discretion to
determine whether and to what extent any charged securities granted in favour of the Bank shall be relied upon when it sets or
reviews the limit for the facilities. For the avoidance of doubt, the Bank is not obliged to take into account the value of any
charged securities when deciding the limit of the facilities. “Securities” means (i) all stocks, shares, securities,
debentures, bonds, notes, options, warrants, funds, unit trusts, certificates of deposit, money market instruments, other equity,
debt and financial instruments of any kind, (ii) all dividends, interest, distributions and other moneys derived therefrom and
(iii) all accretions, allotments, and other benefits accruing or arising in respect thereof.

 

		·	A charge over the Borrower(s)’s deposit(s)
for USD3,000,000.- or its equivalent in other foreign currencies placed with the Bank. This amount is to be reduced to USD2,000,000.-
upon VF Sourcing Asia S.A.R.L. or its related companies starting to bill and make payments to account(s) maintained with the Bank
in the name of the Borrower(s).

 

			In the event of the value of the foreign currency deposit charged to the Bank falling below
                                                                           the required level and upon the Bank’s request, the Borrower(s) should immediately pledge to the Bank additional
                                                                           security acceptable to it to bring the value back to the threshold.

 

This “Charge over Securities
and Deposits (Unlimited Amount)” needs to be registered with the Companies Registry. Please sign and return the “Charge
over Securities and Deposits (Unlimited Amount)” within 5 business days of execution. The related registration fee (currently
HKD340.- per document) will be charged to the debit of the Borrower’s current account.

 

		5.	A Letter of Undertaking from JGL undertakes to use accounts maintained with the Bank for receiving
payments from VF Sourcing Asia S.A.R.L. and its related companies.

 

We enclose the suggested format
of Letter of Undertaking and Board Resolution for your reference.

 

 

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	Treasure Success International Limited	29 May 2017

 

As JGL and JHI are incorporated in Jordan and
United States of America respectively, the Bank requires a legal opinion (in form and substance satisfactory to the Bank) from
a qualified lawyer in the jurisdiction of each of JGL’s and JHI’s incorporation, confirming the corporate capacity and authority
of JGL and JHI to enter into the security, and also confirming that all necessary documents have been or will be properly executed.
The legal opinion, together with the properly executed security documents, should be forwarded to the Bank directly by the solicitor.

 

FURTHER NOTES

 

		1.	As a condition for granting credit facilities to small and medium size enterprises (“SMEs”),
an explicit consent from the related SME must be obtained to enable the Bank to report and retrieve information (whether or not
such information is expressly set out in any agreement between you and the Bank) in relation to its banking facilities to and from
the Commercial Credit Reference Agency (“CCRA”). Please arrange for the enclosed Customer Consent Form to be signed and
returned to the Bank together with the Facility Letter. Please note that if this consent is not given, the Bank will be unable
to proceed with the transaction.

 

		2.	Without prejudicing or affecting the Bank’s right to suspend, withdraw or make demand in respect
of the whole or any part of the facilities made available to the Borrower(s) at any time or determine whether or not to permit
drawings in relation to the facilities, the Borrower(s) will, as the case may be;-

 

		(a)	give the undertaking(s) set out in the Schedule of Further Notes which will remain in full force until
the facilities have been repaid in full; and/or

 

		(b)	make the representations and warranties set out in the Schedule of Further Notes which will be deemed
repeated daily until the facilities have been repaid in full; and/or

 

		(c)	agree to the further conditions as set out in the
Schedule of Further Notes.

 

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	Treasure Success International Limited	29 May 2017

 

SCHEDULE OF FACILITIES

 

	IMPORT FACILITIES WITH LOAN AGAINST IMPORT (LAI)

 

DETAILS

 

		1.	For the issuance of Documentary Credits to the Borrower(s)*s suppliers and Import Loan Facilities
in either HK Dollars or Foreign Currency, less any usance / credit periods granted by the Borrower(s)’s suppliers.

 

		2.	Subject to the Bank’s right at any time to demand immediate repayment of all sums owing by the
Borrower(s), advances may be made available:

 

		(a)	in respect of sight documentary credits, for a period up to the maximum tenor as stipulated under
the heading “Facilities”; and heading

 

		(b)	in respect of usance documentary credits, for a period up to the maximum tenor as stipulated under
the heading “Facilities” less the usance period (i.e. the supplier’s credit finance period) of the relevant documentary
credit, commencing from the date that import documents presented under the usance documentary credit are accepted.

 

		3.	The Bank may, on an exceptional basis, and subject to such conditions as it may impose from
time to time, accept applications for the issuance of documentary credits relating to goods already received by the Borrower(s)
but not paid for. Such conditions include (without limitation):

 

		(a)	evidence of delivery being supported by (i) a cargo receipt showing a date on which the goods are
actually received or (ii) transport document(s) showing a date of shipment, with such dates referred to in the cargo receipt or
transport document (where applicable) not exceeding 90 days before the issue date of the relevant documentary credit; and

 

		(b)	the maximum tenor of the import loan facilities drawn under the documentary credit shall be up
to 120 days, less any usance / credit periods granted by the Borrower(s)’s suppliers.

 

	TRUST RECEIPTS

 

DETAILS

 

Advances may be made under this Trust Receipt
to enable the Borrower(s) to pay import documentary credit, with the associated title documents released to the Borrower(s) against
Trust Receipt(s) signed by the Borrower(s).

 

COMMISSION / FEES

 

Documentary Credit opening commission for each
validity period of six months / Commission in lieu of exchange will be charged as follows:

 

	-    For the first USD50,000.- or its equivalent	0.25%
	-    Balance in excess of USD50,000.- and up to USD100,000.- or its equivalent	0.125%
	-    Balance in excess of USD100,000.- or its equivalent	0.0625%

 

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	Treasure Success International Limited	29 May 2017

 

PRICING

 

For drawings in HKD

 

Interest will be charged at Hong Kong Interbank
Offered Rate (HIBOR) + 1.5% p.a.

 

For drawings in USD/CHF/EUR/GBP/JPY

 

Interest will be charged at London Interbank Offered
Rate (LIBOR) + 1.5% p.a.

 

For details of benchmark interest rates, please refer to the attached Appendix.

 

	CLEAN IMPORT LOAN (EXTENDED ON APPROVED SUPPLIER BASIS)

 

DETAILS

 

		1.	Advances may be made under this Clean Import Loan to enable the Borrower(s) to pay invoices issued
to them by their suppliers, to extent approved by the Bank. The maximum financing period for each drawing (including the supplier’s
credit finance period) shall not exceed the maximum tenor as stipulated under the heading “Facilities”. Notwithstanding
the foregoing, the Bank’s overriding right to demand repayment at any time shall not be affected.

 

Advances may be made on the conditions
that:

 

		(i)	the Bank receives an undertaking that the purchase of goods is a genuine trade transaction and
that no other financing has been or will be requested or obtained from the Bank or any other financial institution against the
suppliers’ invoices financed by the Bank,

		(ii)	the Bank receives the original or certified true copy of the pro-forma invoice, the accepted purchase
order or such other document acceptable to the Bank, and which clearly stipulates the advance payment terms,

		(iii)	the Bank receives written instruction from the Borrower to remit payment directly to the Bank’s
approved suppliers,

		(iv)	the Bank receives and the relevant transport documents acceptable to the Bank, which are marked
with the relevant Pre-Shipment Clean Import Loan Reference Number and

		(v)	the aggregate amount outstanding is within the above
specific limit.

 

		2.	The Bank will settle the invoices direct on their respective due dates and the proceeds will be
remitted or credited directly to the suppliers’ accounts.

 

		3.	50% of the debts purchase services proceeds shall be utilized to repay outstanding pre-shipment
loans regardless of the due dates of the respective loans.

 

		4.	The list of the Bank’s approved suppliers is set out below:

 

Approved Suppliers

 

		(1)	DUCKSAN ENTERPRISE CO.,LTD

		(2)	KINGWHALE CORPORATION

		(3)	YKK HONG KONG LTD

		(4)	COATS HONG KONG LIMITED

		(5)	KOLON FASHION MATERIAL

		(6)	EVEREST TEXTILE CO. LTD

 

And such other supplier as the Bank
may approve from time to time.

 

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	Treasure Success International Limited	29 May 2017

 

COMMISSION / FEES

 

Commission in lieu of exchange will be charged
as follows:

 

	-  For the first USD50,000.- or its equivalent	0.25%
	-  Balance in excess of USD50,000.- and up to USD100,000.- or its equivalent	0.125%
	-  Balance in excess of USD 100,000.- or its equivalent	0.0625%

 

A handling commission of 0.25% of the bill
amount will be collected upon each drawdown of the Clean Import Loans.

 

PRICING

 

For drawings in HKD

 

Interest will be charged at Hong Kong Interbank Offered Rate (HIBOR)
+ 1.5% p.a.

 

For drawings in USD/CHF/EUR/GBP/JPY

 

Interest will be charged at London Interbank Offered Rate (LIBOR)
+ 1.5% p.a.

 

For details of benchmark interest rates, please refer to the attached
Appendix.

 

	ADVANCE TO MANUFACTURER 

 

DETAILS

 

Up to 70% of Purchase Order value in favour
of the Borrower(s) and to be repaid within the maximum tenor as stipulated under the heading “Facilities”. Drawdown of
this facility is allowed against presentation of copies of the relevant Purchase Order. Notwithstanding the foregoing, the Bank’s
overriding right to demand repayment at any time shall not be affected.

 

COMMISSION / FEES

 

Handling fee will be charged at 0.25% flat.

 

PRICING

 

For drawings in HKD

 

Interest will be charged at Hong Kong Interbank Offered Rate (HIBOR)
+ 1.5% p.a.

 

For drawings in USD/CHF/EUR/GBP/JPY

 

Interest will be charged at London Interbank Offered Rate (LIBOR)
+ 1.5% p.a.

 

For details of benchmark interest rates, please refer to the attached Appendix.

 

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	Treasure Success International Limited	29 May 2017

 

SCHEDULE OF FURTHER NOTES

 

This schedule sets out the further points to note for the Borrower(s).

 

Representations and Warranties

 

None of the Borrower(s), any of its subsidiaries,
any director or officer or any employee, agent, or affiliate of the Borrower or any of its subsidiaries is an individual or entity
(“Person”) that is, or is owned or controlled by Persons that are, (i) the subject of any sanctions administered or enforced
by the US Department of the Treasury’s Office of Foreign Assets Control, the US Department of State , the United Nations Security
Council, the European Union, Her Majesty’s Treasury, or the Hong Kong Monetary Authority (collectively, “Sanctions”),
or (ii) located, organised or resident in a country or territory that is, or whose government is, the subject of Sanctions, including,
without limitation, the Crimea region, Cuba, Iran, North Korea, Sudan and Syria.

 

Undertakings

 

		(a)	The Borrower(s) will promptly provide to the Bank any financial or other information that the Bank
may, from time to time, reasonably request for the purposes of understanding such Borrower’s financial position, business and operations
and assessing such Borrower’s ability to meet its obligations and liabilities under this Facility Letter;

 

		(b)	The Borrower(s) undertakes that Choi Lin Hung and Ng Tsze Lun should maintain no less than 50% of
shareholding of the Borrower(s).

 

		(c)	In respect of the Advance to Manufacturer facilities, the Borrower(s) shall (i) procure the purchaser(s)
of all goods financed by the Facilities to pay all sale proceeds into the Borrower(s)’s account with the Bank and the Bank shall
be entitled to apply such sale proceeds towards any sum due to the Bank from the Borrower(s); and (ii) upon request by the Bank,
provide such evidence as may be required by the Bank from time to time to show that the Borrower(s) has/have complied with condition
(i).

 

		(d)	Sanctions: The Borrower(s) will not, directly or indirectly, use the proceeds of the facilities
set out in this letter, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner
or other Person, (i) to fund any activities or business of or with any Person, or in any country or territory, that, at the time
of such funding, is, or whose government is, the subject of Sanctions or (ii) in any other manner that would result in a violation
of Sanctions by any Person (including any Person participating in the facilities, whether as underwriter, advisor, investor or
otherwise).

 

		(e)	Anti-bribery and corruption: None of the Borrower(s), nor to the knowledge of the Borrower(s),
any director, officer, agent, employee, affiliate or other person acting on behalf of the Borrower(s) or any of its/their subsidiaries
is aware of or has taken any action, directly or indirectly, that would result in a violation by such persons of any applicable
anti-bribery law, including but not limited to, the United Kingdom Bribery Act 2010 (the “UK Bribery Act”) and
the U.S. Foreign Corrupt Practices Act of 1977 (the “FCPA”). Furthermore, the Borrower(s) and, to the knowledge
of the Borrower(s), its/their affiliates have conducted their businesses in compliance with the UK Bribery Act, the FCPA and similar
laws, rules or regulations and have instituted and maintain policies and procedures designed to ensure, and which are reasonably
expected to continue to ensure, continued compliance therewith. No part of the proceeds of the facilities set out in this letter
will be used, directly or indirectly, for any payments that could constitute a violation of any applicable anti-bribery law.

 

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	Treasure Success International Limited	29 May 2017

 

Further Conditions

 

Compliance activity: The Bank and other members
of the HSBC Group are required to act in accordance with the laws and regulations and comply with requests of public and regulatory
authorities operating in various jurisdictions which relate to, amongst other things: (i) the prevention of money laundering, terrorist
financing, corruption, tax evasion and the provision of financial and other services to any persons or entities which may be subject
to economic or trade sanctions; or (ii) the investigation or prosecution of, or the enforcement against, any person for an offence
against any laws or regulations.

 

The Bank may take, and may instruct members
of the HSBC Group to take, any action which the Bank in its sole and absolute discretion considers appropriate to prevent or investigate
crime or the potential breach of sanctions regimes or to act in accordance with relevant laws, regulations, sanctions regimes,
international guidance, relevant HSBC Group procedures and/or the direction of any public, regulatory or industry body relevant
to any member of the HSBC Group. This includes the interception and investigation of any payment, communication or instruction,
and the making of further enquiries as to whether a person or entity is subject to any sanctions regime (“Compliance Activity”).

 

Neither the Bank nor any member of the HSBC
Group will be liable to the Borrowers in respect of any loss (whether direct, consequential or loss of profit, data or interest)
or delay, suffered or incurred by any party, caused in whole or in part by (i) actions taken, or delays or failure in performing
any obligations under this letter by the Bank, or (ii) any steps taken by the Bank or any member of the HSBC Group, pursuant to
Compliance Activity.

 

“HSBC Group” means HSBC Holdings
plc, its subsidiaries, related bodies corporate, associated entities and undertakings and any of their branches and member or office
of the HSBC Group shall be construed accordingly.

 

The Borrower(s)’s / JGL’s compliance or otherwise
with the above condition(s) precedent, representations, warranties, undertakings or further conditions (as the case may be) will
not in any way prejudice or affect the Bank’s right to suspend, withdraw or make demand in respect of the whole or any part of
the facilities made available to the Borrower(s) at any time or determine whether or not to permit drawings in relation to the
facilities. By signing this letter, the Borrower(s) expressly acknowledge that the Bank may suspend, withdraw or make demand for
repayment of the whole or any part of the facilities at any time or determine whether or not to permit drawings in relation to
the facilities, notwithstanding the fact that the above conditions precedent, representations, warranties, undertakings and further
conditions (as the case may be) are included in this letter and whether or not the Borrower(s) and/or JGL has / have complied with
any of them.

 

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	Treasure Success International Limited	29 May 2017

 

APPENDIX : DETAILS OF BENCHMARK RATES

 

	Benchmark		Applicable Currency	 	Definition of Benchmark
	
        Hong Kong Interbank Offered Rate

        (HIBOR) * and 1
	    	HKD	 	
        “HIBOR” means,
        in relation to any advance, the applicable Screen Rate at or around 11.00 am Hong Kong time on the proposed date of advance (or
        such other time or day if the market practice differs in the Hong Kong interbank market, as determined by the Bank), if any such
        rate is below zero, HIBOR will be deemed to be zero.

         

        “Screen Rate”
        means the Relevant Administrator’s Interest Settlement Rate for Hong Kong dollars and for the relevant period displayed on
        the appropriate page of the Reuters screen provided that (a) if in the Bank’s sole determination its funding cost is in excess
        of HIBOR, the Bank may specify the cost of funding any facility or financial arrangement; or (b) if the screen page is replaced,
        not available or such service ceases to be available, the Bank may specify another page or service displaying the appropriate rate.

         

        “Relevant Administrator”
        means the Hong Kong Association of Banks or any other person to whom the administrator function of the HIBOR fixing process
        is transferred from time to time.

	 	 	 	 	 
	London Interbank Offered Rate

 (LIBOR) * and 1	 	
        CHF

        EUR

        GBP

        JPY

        USD
	 	
        “LIBOR”
        means, in relation to any advance, the applicable Screen Rate at or around 11:00 am London time two Business Days (or such
        other time or day as determined by the Bank if the market practice differs) before the proposed date of advance and, if
        any such rate is below zero, LIBOR will be deemed to be zero.

         

        “Business
        Day” means a day other than a Saturday or Sunday on which banks are open for general business in London.

         

        “Screen
        Rate” means the Relevant Administrator’s Interest Settlement Rate for the relevant currency and period displayed on the
        appropriate page of the Reuters screen provided that (a) if in the Bank’s sole determination its funding cost is in excess of LIBOR,
        the Bank may specify the cost of funding any facility or financial arrangement; or (b) if the screen page is replaced, not available
        or such service ceases to be available, the Bank may specify another page or service displaying the appropriate rate.

         

        “Relevant Administrator” means
        ICE Benchmark Administration Limited or any other person to whom the administrator function of the LIBOR fixing process is transferred
        from time to time.

 

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	Treasure Success International Limited	29 May 2017

 

Note:

 

		1	Interpolated rates, which refers to rate calculated using
linear interpolation method as recommended by the International Swaps and Derivatives Association (ISDA) for a situation where
there is no current quote available for below maturities:-

 

		•	LIBOR: 2 weeks, 4 months, 5 months, 7 months, 8 months,
9 months, 10 months and 11 months

		•	HIBOR: 4 months, 5 months, 7 months, 8 months, 9 months,
10 months and 11 months

 

		*	For tenors where fixing is not published by the relevant
administrator and the interpolated rate does not apply, the benchmark rate shall be the rate as specified by the Bank in its sole
discretion as its cost of funding the relevant facility or financial arrangement.

 

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	Treasure Success International Limited	29 May 2017

 

TERMS AND CONDITIONS FOR FACILITIES

 

		1.	Interpretation

 

These terms and conditions are applicable
to banking/credit facilities made available by The Hongkong and Shanghai Banking Corporation Limited (the “Bank”, “HSBC”
or “we”, which expression shall include its successors and assigns) to the Borrower(s) and shall be read in conjunction
with the facility letter, as may be amended from time to time, applicable to the Borrower(s) (together, the “Facility Letter”).

 

		2.	Accrual of Interest & Other Sums

 

Interest and other sums expressed
to be chargeable or payable on a periodic basis will nonetheless accrue from day to day and amounts so accrued may be demanded
at any time.

 

		3.	Availability and Utilisation

 

With respect to trade facilities,
the Bank may, at its sole and absolute discretion, refuse to allow drawings under such facilities if:

 

		(a)	the drawee is considered to be unacceptable to the Bank,
or

 

		(b)	the drawee is not on the Bank’s approved list, or

 

		(c)	the transaction in question does not meet the Bank’s operational
requirements in respect of the facilities.

 

		4.	Default Interest

 

Interest will be payable on sums
which are overdue, drawings which are in excess of agreed limits and amounts demanded and not paid, at the maximum rate stipulated
in the Bank’s tariff book which is accessible at https://www.commercial.hsbc.com.hk/1/2/commercial/customer-service/tariffs.
The Bank will provide the Borrower or such relevant guarantor and/or security provider with a hard copy of the tariff book upon
request. Interest at the applicable rate will be payable monthly in arrears to the debit of the Borrower(s)’s current account.

 

		5.	Payment

 

All payments shall be made by the
Borrower(s), the guarantor(s) and/or the security provider(s) to the Bank without set-off, counterclaim, withholding or condition
of any kind. If the Borrower(s), the guarantor(s) or such security provider (where applicable) is compelled by law to make such
withholding, the sum payable shall be increased so that the amount actually received by the Bank is the amount it would have received
if there had been no withholding.

 

		6.	Security and Disclosure

 

		6.1	The Bank shall proceed to register (where applicable) in
Hong Kong, security provided to the Bank in connection with facilities made available to the Borrower(s) or at the request of the
Borrower(s). The costs and expenses, if any, will be charged to the account of the Borrower(s). Where the security provided to
the Bank requires registration or filing outside Hong Kong, the Borrower undertakes that it shall, and where applicable, shall
procure that such registration or filing of security is attended to and completed in a timely way so as to preserve the security
interest of the Bank. The Bank shall be entitled to demand that evidence of such filing and/or registration be provided to it.
All costs in connection with the aforesaid overseas filing and/or registration (as the case may be) shall be for the account of
the Borrower(s).

 

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	Treasure Success International Limited	29 May 2017

 

		6.2	By accepting the Facility Letter, the Borrower(s) is deemed to have consented to the Bank providing
a copy of the Facility Letter, related security documents, the Borrower’s latest statement of account, related documents evidencing
the obligations to be guaranteed or secured by a guarantor or third party security provider, information on the outstanding liabilities
(whether actual or contingent) or such other information to (a) a guarantor or third party security provider, such guarantor or
third party security provider’s solicitors and other professional advisers; and (b) whom the bank assigns or transfers (or may
potentially assign or transfer) all or part of its rights and obligations under the Facility Letter.

 

		6.3	Without prejudicing the rights of the Bank under other agreements with the Borrower(s), the Bank
is entitled to provide any information relating to any of the account(s) of the Borrower(s) held with the Bank and any facilities
which the Bank may provide to the Borrower(s) from time to time or the conduct of such account and/or facilities and/or other information
concerning the Borrower(s) relationship with the Bank to any other company or office which belongs to or is part of the HSBC Group.

 

		6.4	The Bank shall be entitled to have solicitors of its choice appointed to prepare the necessary
documentation relating to the Facility Letter and/or the security to be provided. All their charges and disbursements incurred
in this respect will be for the Borrower(s)’s account. Any filing fees and fees incurred in obtaining a legal opinion will also
be for Borrower(s)’s account.

 

		6.5	If the Bank is satisfied that all liabilities owed by the Borrower(s) to the Bank have been irrevocably
paid in full and that all facilities which might give rise to such liabilities have terminated, subject to the Bank’s right to
retain any security provided to it for such period as the Bank considers (in its sole discretion) necessary, the Bank may, at the
request and cost of the Borrower(s) or the relevant guarantor and/or security provider, release, reassign or discharge (as appropriate)
such security.

 

		7.	Costs and Expenses

 

		7.1	The Borrower(s) shall promptly on demand pay the Bank the amount of all costs and expenses (including
legal fees), stamp duties, taxes, other charges and registration costs incurred by the Bank in connection with the negotiation,
preparation and execution of the Facility Letter, security document(s) and/or any documentation relating to the facilities.

 

		7.2	If the Borrower(s) requests an amendment, waiver or consent, the Borrower(s) shall, within three
business days of demand, reimburse the Bank for the amount of all costs and expenses (including legal fees) incurred by the Bank
in responding to, evaluating, negotiating or complying with that request or amendment.

 

		7.3	The Borrower(s) shall, within three business days of demand, pay to the Bank the amount of all costs
and expenses (including legal fees), stamp duties, taxes, other charges and registration costs incurred by the Bank in connection
with the enforcement of, or the preservation of any rights under the Facility Letter, security document(s) and/or any documentation
relating to the facilities.

 

		7.4	If the effect of or a change in any law or regulation is to increase the cost to the Bank of advancing,
maintaining or funding the facility(ies) or to reduce the effective return to the Bank, the Bank may require payment on demand
of such amounts as the Bank consider necessary as compensation therefor.

 

    	 	Page 13 of 17

     

    

 

	Treasure Success International Limited	29 May 2017

 

		8.	Indemnity

 

		8.1	Any amount received or recovered by the Bank in respect of any sum expressed to be due to the Bank
from the Borrower in a currency other than the currency of denomination in which payment is due (the “Intended Currency”)
shall only constitute a discharge to it to the extent of the amount in the Intended Currency which the Bank is able, in accordance
with its usual practice, to purchase with the amount so received or recovered in such other currency on the date of that receipt.

 

		8.2	The Borrower(s) shall pay and, within three business days of demand, indemnify the Bank against
any costs, loss or liability that the Bank incurs in relation to or as a result of:

 

		(a)	a failure by the Borrower(s) to pay any amount due under this Facility Letter on its due date; or

 

		(b)	if this Facility Letter allows prepayment, such loan not being prepaid in accordance with a notice of prepayment given by the
Borrower.

 

		9.	Assignment

 

The Bank may assign its rights and
transfer all or any part of its rights and obligations hereunder or under any Facility Letter to any person by delivering to the
Borrower(s) a notice in writing. Such transfer shall take effect as from the effective date as specified in the notice and the Bank
shall thereafter be released from such obligations. No assignment or transfer of any right, benefit or obligation in the Facility
Letter shall be made by the Borrower(s) in any way.

 

		10.	Pari Passu

 

The Borrower(s), the guarantor(s)
and security provider(s) (where applicable) shall ensure that at all times the claims of the Bank under the facilities rank at least
pari passu with the claims of all other unsecured creditors, except for claims preferred by mandatory provisions of law.

 

		11.	Prima facie

 

Any certification or determination
by the Bank of a rate or amount under this Facility Letter is, in the absence of manifest error, conclusive evidence of the matters
to which it relates.

 

		12.	Section 83 of the Banking Ordinance

 

Section 83 of the Banking Ordinance
and the related regulations in Hong Kong have imposed on the Bank certain limitations on advances to persons related to HSBC Group.
In accepting the Facility Letter, the Borrower(s) should, to the best of its (their) knowledge, advise the Bank whether it is in
any way related or connected to the HSBC Group. In the absence of such advice, the Bank will assume that the Borrower(s) is (are)
not so related or connected. The Bank would also ask, that if the Borrower(s) become aware that it (they) becomes so related or
connected in future, that the Borrower(s) immediately advises the Bank in writing. You may refer to the reference page for information
on whether you may be considered as related or connected to the HSBC Group.

 

		13.	Governing Law and Third Party Rights

 

		13.1	The Facility Letter (including the schedule(s), where applicable),
and these terms and conditions shall be governed and construed in accordance with the laws of the Hong Kong Special  Administrative
Region.

 

    	 	Page 14 of 17

     

    

 

	Treasure Success International Limited	29 May 2017

 

		13.2	The Borrower(s) submits to the non-exclusive jurisdiction
of the Hong Kong courts.

 

		13.3	No person other than the Bank and the Borrower(s) will have any right under the Contracts (Rights
of Third Party) Ordinance to enforce or enjoy the benefit of any of the provisions of the terms and conditions of the Facility
Letter.

 

		14.	Process Agent

 

Without prejudice to any other mode
of service allowed under any relevant law, each Borrower (other than a Borrower incorporated in Hong Kong (if the Borrower is a
company) and a Borrower who is domiciled in Hong Kong (if the Borrower is an individual)):

 

		a)	irrevocably appoints the company stated after the Borrower’s signature below as its agent for service
of process in relation to any proceedings before the Hong Kong courts in connection with the Facility Letter, security document(s)
and /or documentation relating to the facilities; and

 

		b)	agrees that failure by a process agent to notify the relevant Borrower of the process will not
invalidate the proceedings concerned.

 

    	 	Page 15 of 17

     

    

 

	Treasure Success International Limited	29 May 2017

 

ACCEPTANCE

 

Please arrange for the authorised signatories
of the Borrower(s), in accordance with the terms of the mandate given to the Bank, to sign and return the duplicate copy of
this letter with Appendix to signify the Borrower(s)’s understanding and acceptance of the terms and conditions under which these
facilities are granted.

 

These facilities will remain open for acceptance
until the close of business on 19 June 2017 and if not accepted by that date will be deemed to have lapsed.

 

Should the Borrower(s) have any queries regarding
the completion of the required documents, please feel free to contact Ms Yoko Chan, Customer Service Officer on telephone no. 2822
7220.

 

Yours faithfully

 

For and on behalf of

The Hongkong and Shanghai Banking Corporation
Limited

 

	/s/ Chris Lam	 
	Chris Lam	 
	Senior Vice President	 
	/fxz	 
	 	 
	Encl	 

 

Acceptance and Confirmation

 

We, Treasure Success International Limited,
confirm our acceptance of the offer and all terms and conditions contained above (including the Schedules, Appendix and Terms and
Conditions for Facilities attached thereto).

 

	For and on behalf of	For and on behalf of
	TREASURE SUCCESS INTERNATIONAL LIMITED	TREASURE SUCCESS INTERNATIONAL LIMITED
	 	 

   

	Signature   	/s/ Choi Lin Hung	 	Signature   	/s/ Ng Tsze Lun
	 	Authorized Signatures(s)	 	 	Authorized Signatures(s)
	 	 	 	 	 
	Name	CHOI LIN HUNG	 	Name	NG TSZE LUN
	 	 	 	 	 
	Title	Director	 	Title	Director
	 	 	 	 	 
	Date	 	 	Date	 

 

    	 	Page 16 of 17

     

    

 

	Treasure Success International Limited	29 May 2017

 

Reference Page

 

For the purposes of paragraph 12 (section 83
of the Banking Ordinance) of the Terms and Conditions for Facilities, you may be considered as related or connected to the HSBC
Group if you are:

 

		(a)	a director or employee of a member of the HSBC Group;

 

		(b)	a relative of a director or employee of a member of the
HSBC Group;

 

		(c)	a firm, partnership or non-listed company in which a member of HSBC Group or director of HSBC Group
(or such director’s relative) is interested as director, partner, manager or agent;

 

		(d)	an individual, firm, partnership or non-listed company of which any director of HSBC Group (or such
director’s relative) is a guarantor;

 

		(e)	a firm, partnership or non-listed company which any of the persons listed above is able to control
and a person has “control” if such person is:

 

		(i)	an indirect controller, that is, in relation to a company, any person in accordance with whose
directions or instructions the directors of the company or of another company of which it is a subsidiary are accustomed to act,
or

 

		(ii)	a majority shareholder controller, that is, in relation to a company, any person who, either alone
or with any associate or associates, is entitled to exercise, or control the exercise of, more than 50% of the voting power at
any general meeting of the company or of another company of which it is a subsidiary.

 

“HSBC Group” means HSBC Holdings
plc, its subsidiaries, related bodies corporate, associated entities and undertakings and any of their branches and member or office
of the HSBC Group shall be construed accordingly.

 

“Relative” means:

 

		(i)	any immediate ascendant, any spouse or former spouse of any such ascendant, and any brother or
sister of any such spouse or former spouse;

		(ii)	any immediate descendant, and any spouse or former spouse
of any such descendant;

		(iii)	any brother or sister, aunt or uncle and any nephew or
niece and any first cousin;

		(iv)	any spouse or former spouse, any immediate ascendant of any such spouse or former spouse, and any
brother or sister of any such spouse or former spouse,

 

and, for the purposes of this definition, any
step-child shall be deemed to be the child of both its natural parent and of its step-parent and any adopted child to be the child
of the adopting parent, and a spouse shall include anyone living as such.

 

    	 	Page 17 of 17Exhibit 10.5

 

 

 

Commercial Banking – GTRF Receivables Finance Division

(CARM 170524, 170310 & CM 170421)

 

CONFIDENTIAL

 

THE DIRECTORS

TREASURE SUCCESS INTERNATIONAL LIMITED

19/F FORD GLORY PLAZA

37-39 WING HONG STREET

CHEUNG SHA WAN

	KOWLOON	5 June 2017

 

Dear Sirs

 

Offer Letter - Invoice Discounting / Factoring Agreement

 

With reference to our recent discussions,
we are pleased to offer to provide you with debts purchase services. The services will be made available to you on the terms and
subject to conditions set out in this letter as well as in the Invoice Discounting / Factoring Agreement between you and us (incorporating,
amongst other things, our Standard Conditions For Invoice Discounting / Factoring (“Standard Conditions”)
(together constituting the “Invoice Discounting / Factoring Agreement”)). These services are subject
to review at any time and, in any event by 1 May 2018.

 

This is the Offer Letter referred to
in the Invoice Discounting / Factoring Agreement between you and us. An expression used in this letter shall have the meaning given
to it in the Invoice Discounting / Factoring Agreement, if such expression appears there.

 

		A.	SERVICES OFFERED BY THE BANK

 

		*	Credit Management - we provide services in respect
of the collection of Debts and/or maintenance of a sales ledger in the manner from time to time determined by the Bank.

 

		*	Debts shall be purchased on a disclosed basis as set
out in Section E below.

 

		*	Credit Protection - we purchase Credit Protected Debts
on a Without Recourse basis (Note: please refer to the Standard Conditions on the meaning of “Without Recourse” as
used in this Offer Letter).

 

		*	Finance - we may give you the benefit of Prepayments.

 

	The Hongkong and Shanghai
    Banking Corporation Limited 	 
	Commercial Banking Hong Kong 	 
	GTRF Receivables Finance Division	 
	9/F, HSBC Building MongKok, 673 Nathan Road,
    MongKok, Kowloon 	 
	Tel: 3941 6211 Fax: 3418 4982 SWIFT: HSBCHKHH	 
	Web Site : www.hsbc.com.hk	 

 

    	 	 	Page 1 of 11

     

    

 

	TREASURE SUCCESS INTERNATIONAL LIMITED	5 June 2017

 

		B.	BASIC
TERMS OF FINANCE SERVICE

 

	1.	Funds In Use Limit (FIU Limit):	 	USD12,000,000.- or its equivalent
	 	 	 	 
	2.	Discounting Charge (on Funds In Use):	 	
        In respect of each day on which the rate for Discounting
        Charge is to be determined, such rate to be:-

         

        At 1.5% per annum over 1 month LIBOR (London Interbank Offered
        Rate) on such day.

         

        At 1.5% per annum over month HIBOR (HongKong Interbank Offered
        Rate) on such day.

         

        For details of benchmark interest rates, please refer to
        the attached Appendix.

	 	 	 	 
	3.	Prepayment Percentage / Funding Limit:	 	As specified in a Customer Limit Advice issued in respect of the relevant Customer.
	 	 	 	 
	4.	Concentration Percentage:	 	85%.
	 	 	 	 
	5.	Eligible Debt Grace Period:	 	Nil

 

		C.	BASIC
TERMS OF CREDIT PROTECTION SERVICE

 

	1.	Credit Cover Percentage(s) / Credit Cover Limit(s) / Credit Protection Events:	 	As specified in a Customer Limit Advice issued in respect of the relevant Customer.
	 	 	 	 
	2.	First Loss:	 	As specified in a Customer Limit Advice issued in respect of the relevant Customer. If no First Loss is specified in the Customer Limit  Advice,  the  First Loss  of such Customer will be “Nil”.

 

We may in our own name take out credit insurance and/or appoint Correspondent Factors) to collect payment of the Debts.

 

		D.	BASIC
TERMS APPLICABLE TO ALL SERVICES

 

	1.	Customer(s):	 	To be approved by the Bank from time to time and as advised by the Bank to the Client.
	 	 	 	 
	2.	Service Charge:	 	0.35% flat on the face value of the invoice for each Debt.
	 	 	 	 
	3.	Maximum Terms of Payment:	 	90 days unless otherwise specified in a Customer Limit Advice issued in respect of the relevant Customer.
	 	 	 	 
	4.	Maximum Invoicing Period:	 	30 days after the date of delivery of the Goods unless otherwise specified in a Customer Limit Advice issued in respect of the relevant Customer.

 

    	 	 	Page 2 of 11

     

    

 

	TREASURE SUCCESS INTERNATIONAL LIMITED	5 June 2017

 

		E.	NOTICE OF ASSIGNMENT FOR DEBTS AND COLLECTION

 

		1.	The Debts of all Customers will be purchased on a disclosed
basis (that is, giving the notices of assignment for the Debts) except as otherwise agreed by us in writing.

 

		2.	The Debts shall be collected and paid into the designated
account maintained by you with us and held on trust for us. However, we have the overriding right at any time to direct any Debt
to be paid directly to us.

 

		F.	DOCUMENTS REQUIRED

 

		1.	You shall provide us with the following documents in
each case in the form and substance satisfactory to us:-

 

		(a)	the Invoice Discounting / Factoring Agreement made between
you and us;

 

		(b)	a certified extract of your board resolutions approving
and authorizing the execution, delivery and performance of this letter and the Invoice Discounting / Factoring Agreement and designating
the Authorized Person(s) in connection with the Invoice Discounting / Factoring Agreement;

 

		(c)	all security documents referred to in Section G below;
and

 

		(d)	such other documents, terms or evidence that we may require
from time to time.

 

No request for any Prepayment
may be submitted prior to our receipt of the above documents.

 

		2.	The following supporting documents are required in
relation to each Debt:-

 

		(a)	A copy of the confirmed purchase order (if applicable);

 

		(b)	A copy of the invoice endorsed with and/or accompanied
by a note in the form approved by us stating our interest as assignee; and

 

		(c)	Evidence of Delivery of the Goods satisfactory to us.

 

		3.	If we agree, you may provide us with the lists of the
Debts (which shall include the names of Customers, invoices numbers, invoices amounts, due dates of the Debts as well as such
other information as required by us) in lieu of the copies of the invoices in respect of the Debts. Notwithstanding this, you
shall at any time, upon request by us, promptly provide us with the copies of the invoices evidencing the Debts.

 

		G.	SECURITY AND OTHER DOCUMENTATION

 

As security for your obligations
and liabilities to us under, inter alia, this letter and the Invoice Discounting / Factoring Agreement, we require to hold the
following:-

 

		1.	A Guarantee (unlimited
                                         amount) from Jerash Garments and Fashions Manufacturing Company Limited [“JGL”]
                                         together with a Board Resolution which will be held by us to secure both general banking
                                         facilities and debts purchase services extended to your company. This Guarantee will
                                         be supported by an “Assignment of Receivables – General” granted by
                                         JGL.

 

    	 	 	Page 3 of 11

     

    

 

	TREASURE SUCCESS INTERNATIONAL LIMITED	5 June 2017

 

		G.	SECURITY AND OTHER DOCUMENTATION (CONT’D)

 

		2.	A Guarantee (unlimited amount) from Jerash Holdings (US) Inc. together with a Board
                                                                                Resolution which will be held by us to secure both general banking facilities and debts purchase services extended to your
                                                                                company.

 

The authorised signatories of
Jerash Holdings (US) Inc. should be duly verified by their bankers. Please also let the Bank have a certified copy of Certificate
of Incorporation, Articles of Association and List of current directors of Jerash Holdings (US) Inc. for the Bank’s records.

 

		3.	A Guarantee (unlimited amount) from Mr Choi Lin Hung
and Mr Ng Tsze Lun which will be held by us to secure both general banking facilities and debts purchase services extended to
your company.

 

To comply with the Code of
Banking Practice and guidance given by the Courts, the Bank needs to obtain your consent before it can provide a copy or summary
of the facility, or information on your outstanding liabilities to the Bank, to any guarantor or other third paity providing security
(the “Surety”) or to the Surety’s advisors. In addition, if the Bank is obliged to make any formal
demand for repayment because you have failed to settle an amount due following our customary reminder, the Bank will also need
to provide the Surety with a copy of its demand letter. Whether or not the Bank has made the demand, the Bank will also need to
provide the Surety with a copy of the latest statement of account and/or to give the Surety details of your outstanding liabilities
to the Bank, whether actual or contingent. By accepting this letter, you are deemed to have consented to the Bank providing any
of the aforesaid documents or information to the Surety, to the Surety’s solicitors and other professional advisers. Please
note that if this consent is not given, the Bank will be unable to proceed with the transaction.

 

		4.	A Charge over Securities and Deposits (Unlimited Amount)
granted by you will be held by us to secure both general banking facilities and debts purchase services extended to your company.

 

The Bank has sole discretion
to determine whether and to what extent any charged securities granted in favour of the Bank shall be relied upon when it sets
or reviews the limit for the facilities. For the avoidance of doubt, the Bank is not obliged to take into account the value of
any charged securities when deciding the limit of the facilities. “Securities” means (i) all stocks, shares, securities,
debentures, bonds, notes, options, warrants, funds, unit trusts, certificates of deposit, money market instruments, other equity,
debt and financial instruments of any kind, (ii) all dividends, interest, distributions and other moneys derived therefrom and
(iii) all accretions, allotments, and other benefits accruing or arising in respect thereof,

 

A charge over your company’s
deposit(s) for USD3,000,000.- or its equivalent in other foreign currencies placed with the Bank.

 

In the event of the value
of the foreign currency deposit charged to the Bank falling below the required level and upon the Bank’s request, the Borrower(s)
should immediately pledge to the Bank additional security acceptable to the Bank to bring the value back to the threshold.

 

    	 	 	Page 4 of 11

     

    

 

	TREASURE SUCCESS INTERNATIONAL LIMITED	5 June 2017

 

		G.	SECURITY AND OTHER DOCUMENTATION (CONT’D)

 

		5.	A Letter of Undertaking from Jerash Garments and Fashions
Manufacturing Company Limited undertakes to use accounts maintained with the Bank for receiving payments from VF which will be
held by us to secure both general banking facilities and debts purchase services extended to your company.

 

You will be required for
so long as these facilities are available to you to comply with the above undertaking(s)/covenant(s). Your compliance or otherwise
with the above undertaking(s)/covenant(s) will not in any way prejudice or affect our right to suspend, withdraw or make demand
in respect of the whole or any part of the facilities made available to you at any time. By signing this letter, you expressly
acknowledge that we may suspend, withdraw or make demand for repayment of the whole or any part of the facilities at any time notwithstanding
the fact that the above undertaking(s)/covenant(s) are included in this letter and whether or not you are in breach of any such
undertaking(s)/covenant(s).

 

Please note that all costs and expenses
(including legal fees) incurred by us in connection with the extension of these facilities and any matters arising therefrom are
to be reimbursed by you on demand.

 

		H.	SPECIAL TERMS

 

		1.	CONFIRMATION OF SURETY(IES)

Jerash Garments and Fashions
Manufacturing Company Limited, Jerash Holdings (US) Inc., Mr Choi Liu Hung and Mr Ng Tsze Lun (the “Surety(ies)”) confirm(s)
by countersigning this letter that their guarantee and security remain in full force and effect and continues to guarantee or secure
the indebtedness referred to in this letter. Furthermore, such liability under the guarantee and security will not be discharged
or affected by the Bank extending, increasing, renewing, or otherwise varying the indebtedness referred to in this letter or by
any other act, omission or circumstance which might discharge the Surety(ies) to any extent.

 

		2.	Section 83 of the Banking Ordinance and the related
regulations in Hong Kong have imposed on the Bank certain limitations on advances to persons related to HSBC Group. In accepting
this Letter, you should, to the best of your knowledge, advise the Bank whether you are in any way related or connected to the
HSBC Group. In the absence of such advice, the Bank will assume that you are not so related or connected. The Bank would also
ask, that if you become aware that you become so related or connected in future, that you immediately advises the Bank in writing.
You may refer to the reference page for information on whether you may be considered as related or connected to the HSBC
Group.

 

		3.	Unless expressed in writing from you to the contrary,
we may provide any information relating to any of your accounts with us and any facilities we may provide to you from time to
time or their conduct or any other information concerning your relationship with us to any other company or office which at the
relevant time belongs to or is part of the HSBC Group.

 

		4.	Please note that our standard service charges are stipulated
in the Bank’s Tariff which is accessible at https://www.commercial.hsbc.com.hk/l/2/commercial/customer-service/tariffs.
We will provide you with a hard copy of the Tariff at your request.

 

		5.	This letter is governed by and construed in accordance
with the laws of Hong Kong.

 

    	 	 	Page 5 of 11

     

    

 

	TREASURE SUCCESS INTERNATIONAL LIMITED	5 June 2017

 

		H.	SPECIAL TERMS (CONT’D)

 

		6.	No person other than you and us will have any right
under the Contracts (Rights of Third Parties) Ordinance to enforce or enjoy the benefit of any of the provisions of this letter.

 

		7.	In the event from time to time that the actual amount
of Prepayment (as defined in the Invoice Discounting/ Factoring Agreement) exceeds the Availability, we may, at our sole and absolute
discretion, debit such excess amount from your account(s) maintained with us.

 

		8.	The first on-site audit shall be conducted in 6 months
from the commencement of the facility.

 

		9.	50% of payment and/or prepayment of the Purchase Price
under or pursuant to the Invoice Discounting / Factoring Agreement shall, at our discretion, first be applied to pay and settle
all sums of money, obligations and liabilities due or owing by you to the Bank due within 7 days in respect of any account whatsoever
between you and the Bank (including, but without limitation, all moneys and liabilities owing by you in respect of the Invoice
Discounting / Factoring Agreement, all general banking facilities and any other advances and facilities granted by the Bank to
you and all interest thereon).

 

		10.	Buyers Consent is obtained to establish change of billing
to your company.

 

		11.	Buyers consent should be obtained for assignment of
receivables.

 

		12.	UNDERTAKING(S)/COVENANT(S)

 

		13.	You will be required for so long as these facilities
are available to you to comply with the following undertaking(s)/covenant(s). Your compliance or otherwise with the following
undertaking(s) /covenant(s) will not in any way prejudice or affect our right to suspend, withdraw or make demand in respect of
the whole or any part of the facilities made available to you at any time. By signing this letter, you expressly acknowledge that
we may suspend, withdraw or make demand for repayment of the whole or any part of the facilities at any time notwithstanding the
fact that the following undertaking(s)/covenant(s) are included in this letter and whether or not you are in breach of any such
undertaking(s)/covenant(s).

 

The borrower, Treasure Success
International Limited, hereby undertakes that Mr Choi Lin Hung and Mr Ng Tsze Lun undertake should maintain no less than 50% of
shareholding of Treasure Success International Limited.

 

A set up fee of USD10,000.- will be
charged to the debit of your current account upon receipt of your acceptance to this offer letter.

 

Please arrange for your authorised signatories
to sign and return to us the duplicate copy of this letter with Appendix to signify your understanding and acceptance of the terms
and conditions under which debts purchase services are offered. Additionally please arrange for the delivery to us a certified
copy of your Articles of Association for our reference.

 

    	 	 	Page 6 of 11

     

    

 

	TREASURE SUCCESS INTERNATIONAL LIMITED	5 June 2017

 

This offer will remain open for acceptance
until the close of business on 27 June 2017 and if not accepted by that date will be deemed to have lapsed.

 

We look forward to the development of a
mutually beneficial and lasting relationship.

 

Yours faithfully

For and on behalf of

The Hongkong and Shanghai Banking
Corporation Limited

 

	/s/ Xavier Ip	 
	Xavier Ip	 
	Vice President	 
	/ia	 
	 	 
	Encl	 

 

    	 	 	Page 7 of 11

     

    

 

	TREASURE SUCCESS INTERNATIONAL LIMITED	5 June 2017

 

We agree to and accept all the terms
and conditions set out above. We hereby confirm that our request for the credit facility(ies) stated in this letter
was not referred by any intermediary. We understand that the Bank does not appoint any third parties to handle credit applications
from small and medium-sized enterprises.

 

For and on Behalf of

TREASURE SUCCESS INTERNATIONAL LIMITED

 

 

	/s/ Choi Lin
    Hung	 	 
	Authorized Signature(s)	 	 
	 	 	 
	CONFIRMATION
    OF SURETY(IES)	 	CONFIRMATION
    OF SURETY(IES)
	 	 	 
	/s/
    Choi Lin Hung	 	/s/
    Ng Tsze Lun
	Name of Surety(ies)
    : CHOI LIN HUNG	 	Name of Surety(ies)
    : NG TSZE LUN
	 	 	 
	CONFIRMATION
    OF SURETY(IES)	 	 
	 	 	 
	/s/
    Choi Lin Hung	 	 
	Name
    of Surety(ies) : Jerash Garments and Fashions Manufacturing Company Limited
	 	 	 
	CONFIRMATION
    OF SURETY(IES)	 	 
	 	 	 
	/s/
    Choi Lin Hung	 	 
	Name of Surety(ies) : Jerash Holdings (US)
    Inc.	 	 

 

    	 	 	Page 8 of 11

     

    

 

	TREASURE SUCCESS INTERNATIONAL LIMITED	5 June 2017

 

APPENDIX: DETAILS
OF BENCHMARK RATES

 

	Benchmark	 	Applicable Currency	 	Definition of Benchmark
	Hong Kong Interbank Offered Rate

 (HIBOR) *
    and 1	 	HKD	 	
        “HIBOR” means, in relation to any advance, the
        applicable Screen Rate at or around 11:00 am Hong Kong time on the proposed date of advance (or such other time or day if the market
        practice differs in the Hong Kong interbank market, as determined by the Bank), if any such rate is below zero, HIBOR will be deemed
        to be zero.

         

        “Screen Rate” means the Relevant Administrator’s
        Interest Settlement Rate for Hong Kong dollars and for the relevant period displayed on the appropriate page of the Reuters screen
        provided that (a) if in the Bank’s sole determination its funding cost is in excess of HIBOR, the Bank may specify the cost of
        funding any facility or financial arrangement; or (b) if the screen page is replaced, not available or such service ceases to be
        available, the Bank may specify another page or service displaying the appropriate rate.

         

        “Relevant Administrator” means the Hong Kong Association
        of Banks or any other person to whom the administrator function of the HIBOR fixing process is transferred from time to time.

 

    	 	 	Page 9 of 11

     

    

 

	TREASURE SUCCESS INTERNATIONAL LIMITED	5 June 2017

 

	Benchmark	 	Applicable Currency	 	Definition of Benchmark
	London Interbank
    Offered Rate 

    (LIBOR) * and 1	 	
        CHF

        EUR

        GBP

        JPY

        USD
	 	
        “LIBOR”
        means, in relation to any advance, the applicable Screen Rate at or around 11:00 am London time two Business Days (or such
        other time or day as determined by the Bank if the market practice differs) before the proposed date of advance and, if any such
        rate is below zero, LIBOR will be deemed to be zero.

         

        “Business
        Day” means a day other than a Saturday or Sunday on which banks are open for general business in London.

         

        “Screen
        Rate” means the Relevant Administrator’s Interest Settlement Rate for the relevant currency and period displayed on the
        appropriate page of the Reuters screen provided that (a) if in the Bank’s sole determination its funding cost is in excess of LIBOR,
        the Bank may specify the cost of funding any facility or financial arrangement; or (b) if the screen page is replaced, not available
        or such service ceases to be available, the Bank may specify another page or service displaying the appropriate rate.

         

        “Relevant
        Administrator” means ICE Benchmark Administration Limited or any other person to whom the administrator function of the
        LIBOR fixing process is transferred from time to time.

 

Note:

 

		1.	Interpolated rates, which refers to rate calculated using
linear interpolation method as recommended by The International Swaps and Derivatives Association (ISDA) for situation where there
is no current quote available for below maturities:-

		·	From
1 April 2014, HIBOR: 4 months, 5 months, 7 months, 8 months, 9 months, 10 months and 11 months

		·	LIBOR:
2 weeks, 4 months, 5 months, 7 months, 8 months, 9 months, 10 months and 11 months

 

		*	For tenors where fixing is not published by the relevant
administrator and the interpolated rate does not apply, the benchmark rate shall be the rate as specified by the Bank in its sole
discretion as its cost of funding the relevant facility or financial arrangement.

 

    	 	 	Page 10 of 11

     

    

 

	TREASURE SUCCESS INTERNATIONAL LIMITED	5 June 2017

 

Reference Page

 

You may be considered as related or connected
to the HSBC Group if you are:

 

		(a)	a director or employee of a member of the HSBC Group;

		(b)	a relative of a director or employee of a member of the
HSBC Group;

		(c)	a firm, partnership or non-listed company in which a member
of HSBC Group or director of HSBC Group (or such director’s relative) is interested as director, partner, manager or agent;

		(d)	an individual, firm, partnership or non-listed company
of which any director of HSBC Group (or such director’s relative) is a guarantor;

		(e)	a firm, partnership or non-listed company which any of
the persons listed above is able to control and a person has “control” if such person is:

		(i)	an indirect controller, that is, in relation to a
company, any person in accordance with whose directions or instructions the directors of the company or of another company of
which it is a subsidiary are accustomed to act, or

		(ii)	a majority shareholder controller, that is, in relation
to a company, any person who, either alone or with any associate or associates, is entitled to exercise, or control the exercise
of, more than 50% of the voting power at any general meeting of the company or of another company of which it is a subsidiary.

 

“HSBC Group” means
HSBC Holdings plc, its subsidiaries, related bodies corporate, associated entities and undertakings and any of their branches and
member or office of the HSBC Group shall be construed accordingly.

 

“relative” for the purposes
of this clause means:

		(i)	any immediate ascendant, any spouse or former spouse
of any such ascendant, and any brother or sister of any such spouse or former spouse;

		(ii)	any immediate descendant, and any spouse or former
spouse of any such descendant;

		(iii)	any brother or sister, aunt or uncle and any nephew
or niece and any first cousin;

		(iv)	any spouse or former spouse, any immediate ascendant
of any such spouse or former spouse, and any brother or sister of any such spouse or former spouse,

and, for the purposes of this definition,
any step-child shall be deemed to be the child of both its natural parent and of its step-parent and any adopted child to be the
child of the adopting parent, and a spouse shall include anyone living as such.

 

    	 	 	Page 11 of 11

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