Exhibit 10.1


 


	 	[_____________], 2018


 


Chardan Healthcare Acquisition Corp.


17 State Street, 21st Floor


New York, NY 10004


 


Chardan Capital Markets, LLC


17 State Street, 21st Floor


New York, NY 10004


 


		Re:	Initial Public Offering



 


Gentlemen:


 


This letter is being delivered
to you in accordance with the Underwriting Agreement (the “Underwriting Agreement”) entered into by and
between Chardan Healthcare Acquisition Corp., a Delaware corporation (the “Company”) and Chardan Capital
Markets LLC, as representative (the “Representative”) of the Underwriters named in Schedule [I] thereto
(the “Underwriters”), relating to an underwritten initial public offering (the “IPO”)
of the Company’s units (the “Units”), each comprised of one share of Common Stock of the Company,
par value $0.001 per share (the “Common Stock”), and one warrant, with each warrant being exercisable
to purchase one-half of one share of Common Stock at a price of $11.50 per full share (“Warrant”). Certain
capitalized terms used herein are defined in paragraph 14 hereof.


 


In order to induce the Company
and the Underwriters to enter into the Underwriting Agreement and to proceed with the IPO, and in recognition of the benefit that
such IPO will confer upon the undersigned as a shareholder of the Company, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the undersigned hereby agrees with the Company as follows:


 


1.          If
the Company solicits approval of its shareholders of a Business Combination, the undersigned will vote all shares of Common Stock
beneficially owned by him, her or it, whether acquired before, in or after the IPO, in favor of such Business Combination.


 


2.          (a)
In the event that the Company fails to consummate a Business Combination within 24 months from the closing of the Company’s
IPO, the undersigned shall take all reasonable steps to (i) cause the Trust Fund to be liquidated and distributed to the holders
of IPO Shares and (ii) cause the Company to liquidate as soon as reasonably practicable.


 




     


     


    

 


(b) The undersigned hereby
waives any and all right, title, interest or claim of any kind in or to any distribution of the Trust Fund and any remaining net
assets of the Company as a result of such liquidation with respect to his, her or its Insider Shares, [Private Warrants] (and the
underlying Common Stock) (“Claim”) and hereby waives any Claim the undersigned may have in the future
as a result of, or arising out of, any contracts or agreements with the Company and will not seek recourse against the Trust Fund
for any reason whatsoever. [The undersigned acknowledges and agrees that there will be no distribution from the Trust Fund with
respect to any Common Stock underlying the Private Warrants, all rights of which will terminate on the Company’s liquidation.]


 


[ (c) In the event of the
liquidation of the Trust Fund, the undersigned agrees to indemnify and hold harmless the Company against any and all loss, liability,
claims, damage and expense whatsoever (including, but not limited to, any and all legal or other expenses reasonably incurred in
investigating, preparing or defending against any litigation, whether pending or threatened, or any claim whatsoever) which the
Company may become subject as a result of any claim by any vendor or other person who is owed money by the Company for services
rendered or products sold or contracted for, but only to the extent necessary to ensure that such loss, liability, claim, damage
or expense does not reduce the amount of funds in the Trust Fund; provided, that such indemnity shall not apply if such
vendor or other person has executed an agreement waiving any claims against the Trust Fund. ]1


 


[ (d)          In
the event that the Company does not consummate a Business Combination and must liquidate and its remaining net assets are insufficient
to complete such liquidation, the undersigned agrees to advance such funds necessary to complete such liquidation and agrees not
to seek repayment for such expenses.]2


 


3.          The
undersigned will escrow all of his, her or its Insider Shares pursuant to the terms of a Stock Escrow Agreement which the Company
will enter into with the undersigned and an escrow agent acceptable to the Company.


 


[4.          The
undersigned agrees that until the Company consummates a Business Combination, the undersigned’s Private Warrants will be
subject to the transfer restrictions described in the Subscription Agreement relating to the undersigned’s Private Warrants.]3


 


 



1 Only for Chardan Investments,
LLC


2 Only for Chardan Investments, LLC


3 Only for Chardan Investments,
LLC


 




     


     


    

 


5.          In
order to minimize potential conflicts of interest which may arise from multiple affiliations, the undersigned agrees to present
to the Company for its consideration, prior to presentation to any other person or entity, any suitable opportunity to acquire
a target business, until the earlier of the consummation by the Company of a Business Combination or the liquidation of the Company,
subject to any pre-existing fiduciary and contractual obligations the undersigned might have.


 


6.          The
undersigned acknowledges and agrees that prior to entering into a Business Combination with a target business that is affiliated
with any Insiders of the Company or their affiliates, including any company that is a portfolio company of, or otherwise affiliated
with, or has received financial investment from, an entity with which any Insider or their affiliates is affiliated, such transaction
must be approved by a majority of the Company’s disinterested independent directors and the Company must obtain an opinion
from an independent investment banking firm that such Business Combination is fair to the Company’s unaffiliated shareholders
from a financial point of view.


 


7.          Neither
the undersigned, any member of the family of the undersigned, nor any affiliate of the undersigned will be entitled to receive
and will not accept any compensation or other cash payment prior to, or for services rendered in connection with, the consummation
of the Business Combination. Notwithstanding the foregoing, the undersigned and any affiliate of the undersigned shall be entitled
to reimbursement from the Company for their out-of-pocket expenses incurred in connection with identifying, investigating and consummating
a Business Combination.


 


8.          Neither
the undersigned, any member of the family of the undersigned, nor any affiliate of the undersigned will be entitled to receive
or accept a finder’s fee or any other compensation in the event the undersigned, any member of the family of the undersigned
or any affiliate of the undersigned originates a Business Combination.


 


9.          [The
undersigned agrees to be the [·] of the Company until the earlier of the consummation
by the Company of a Business Combination or the liquidation of the Company. The undersigned’s biographical information previously
furnished to the Company and the Representative is true and accurate in all material respects, does not omit any material information
with respect to the undersigned’s biography and contains all of the information required to be disclosed pursuant to Item
401 of Regulation S-K, promulgated under the Securities Act of 1933.]4 The undersigned’s FINRA Questionnaire and
Director and Officer Questionnaire previously furnished to the Company and the Representative is true and accurate in all material
respects. The undersigned represents and warrants that, except as disclosed in the undersigned’s Director and Officer Questionnaire:


 


 



4 Only for officers and directors


 




     


     


    

 


		(a)	he/she/it has never had a petition under the federal
bankruptcy laws or any state insolvency law been filed by or against (i) him/her/it or any partnership in which he/she/it was
a general partner at or within two years before the time of filing; or (ii) any corporation or business association of which he/she/it
was an executive officer at or within two years before the time of such filing;



 


		(b)	he/she/it has never had a receiver, fiscal agent or
similar officer been appointed by a court for his/her/its business or property, or any such partnership;



 


		(c)	he/she/it has never been convicted of fraud in a civil
or criminal proceeding;



 


		(d)	he/she/it/ has never been convicted in a criminal
proceeding or named the subject of a pending criminal proceeding (excluding traffic violations and minor offenses);



 


		(e)	he/she/it has never been the subject of any order,
judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily
enjoining or otherwise limiting him/her/it from (i) acting as a futures commission merchant, introducing broker, commodity trading
advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the Commodity Futures
Trading Commission (“CFTC”) or an associated person of any of the foregoing, or as an investment adviser, underwriter,
broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and
loan association or insurance company, or from engaging in or continuing any conduct or practice in connection with any such activity;
or (ii) engaging in any type of business practice; or (iii) engaging in any activity in connection with the purchase
or sale of any security or commodity or in connection with any violation of federal or state securities or federal commodities
laws;



 


		(f)	he/she/it has never been the subject of any order,
judgment or decree, not subsequently reversed, suspended or vacated, of any federal or state authority barring, suspending or
otherwise limiting for more than 60 days his/her/its right to engage in any activity described in 9(e)(i) above, or to be associated
with persons engaged in any such activity;



 


		(g)	he/she/it has never been found by a court of competent
jurisdiction in a civil action or by the SEC to have violated any federal or state securities law, where the judgment in such
civil action or finding by the SEC has not been subsequently reversed, suspended or vacated;



 




     


     


    

 


		(h)	he/she/it has never been found by a court of competent
jurisdiction in a civil action or by the CFTC to have violated any federal commodities law, where the judgment in such civil action
or finding by the CFTC has not been subsequently reversed, suspended or vacated;



 


		(i)	he/she/it has never been the subject of, or a party
to, any Federal or State judicial or administrative order, judgment, decree or finding, not subsequently reversed, suspended or
vacated, relating to an alleged violation of (i) any Federal or State securities or commodities law or regulation, (ii) any law
or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent
injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and desist order, or removal
or prohibition order or (iii) any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity;



 


		(j)	he/she/it has never been the subject of, or party
to, any sanction or order, not subsequently reversed, suspended or vacated, or any self-regulatory organization, any registered
entity, or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons
associated with a member;



 


		(k)	he/she/it has never been convicted of any felony or
misdemeanor: (i) in connection with the purchase or sale of any security; (ii) involving the making of any false filing with the
SEC; or (iii) arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment
advisor or paid solicitor of purchasers of securities;



 


		(l)	he/she/it was never subject to a final order of a
state securities commission (or an agency of officer of a state performing like functions); a state authority that supervises
or examines banks, savings associations, or credit unions; a state insurance commission (or an agency or officer of a state performing
like functions); an appropriate federal banking agency; the CFTC; or the National Credit Union Administration that is based on
a violation of any law or regulation that prohibits fraudulent, manipulative, or deceptive conduct;



 


		(m)	he/she/it has never been subject to any order, judgment
or decree of any court of competent jurisdiction, that, at the time of such sale, restrained or enjoined him/her/it from engaging
or continuing to engage in any conduct or practice: (i) in connection with the purchase or sale of any security; (ii) involving
the making of any false filing with the SEC; or (iii) arising out of the conduct of the business of an underwriter, broker, dealer,
municipal securities dealer, investment adviser or paid solicitor of purchasers of securities;



 




     


     


    

 


		(n)	he/she/it has never been subject to any order of the
SEC that orders him/her/it to cease and desist from committing or causing a future violation of: (i) any scienter-based anti-fraud
provision of the federal securities laws, including, but not limited to, Section 17(a)(1) of the Securities Act, Section 10(b)
of the Exchange Act and Rule 10b-5 thereunder, and Section 206(1) of the Advisers Act or any other rule or regulation thereunder;
or (ii) Section 5 of the Securities Act;



 


		(o)	he/she/it has never been named as an underwriter in
any registration statement or Regulation A offering statement filed with the SEC that was the subject of a refusal order, stop
order, or order suspending the Regulation A exemption, or is, currently, the subject of an investigation or proceeding to determine
whether a stop order or suspension order should be issued;



 


		(p)	he/she/it has never been subject to a United States
Postal Service false representation order, or is currently subject to a temporary restraining order or preliminary injunction
with respect to conduct alleged by the United States Postal Service to constitute a scheme or device for obtaining money or property
through the mail by means of false representations;



 


		(q)	he/she/it is not subject to a final order of a state
securities commission (or an agency of officer of a state performing like functions); a state authority that supervises or examines
banks, savings associations, or credit unions; a state insurance commission (or an agency or officer of a state performing like
functions); an appropriate federal banking agency; the CFTC; or the National Credit Union Administration that bars the undersigned
from: (i) association with an entity regulated by such commission, authority, agency or officer; (ii) engaging in the business
of securities, insurance or banking; or (iii) engaging in savings association or credit union activities;



 


		(r)	he/she/it is not subject to an order of the SEC entered
pursuant to section 15(b) or 15B(c) of the Securities Exchange Act of 1934 (the “Exchange Act”) or section 203(e)
or 203(f) of the Investment Advisers Act of 1940 (the “Advisers Act”) that: (i) suspends or revokes the undersigned’s
registration as a broker, dealer, municipal securities dealer or investment adviser; (ii) places limitations on the activities,
functions or operations of, or imposes civil money penalties on, such person; or (iii) bars the undersigned from being associated
with any entity or from participating in the offering of any penny stock; and



 




     


     


    

 


		(s)	he/she/it has never been suspended or expelled from
membership in, or suspended or barred from association with a member of, a securities self-regulatory organization (e.g., a registered
national securities exchange or a registered national or affiliated securities association) for any act or omission to act constituting
conduct inconsistent with just and equitable principles of trade.



 


10.         The
undersigned has full right and power, without violating any agreement by which he is bound, to enter into this letter agreement
and to serve as [·] of the Company.


 


11.         The
undersigned hereby waives his, her or its right to exercise conversion rights with respect to any shares of Common Stock owned
or to be owned by the undersigned, directly or indirectly, whether purchased by the undersigned prior to the IPO, in the IPO or
in the aftermarket, and agrees that he, she or it will not seek conversion with respect to or otherwise sell, such shares in connection
with any vote to approve a Business Combination with respect thereto, a vote to amend the provisions of the Company’s Amended
and Restated Certificate of Incorporation, or a tender offer by the Company prior to a Business Combination.


 


12.         The
undersigned hereby agrees to not propose, or vote in favor of, an amendment to the Company’s Amended and Restated Certificate
of Incorporation with respect to the Company’s pre-Business Combination activities prior to the consummation of a Business
Combination unless the Company offers holders of IPO Shares the right to receive their pro rata portion of the funds then held
in the Trust Fund.


 


13.         In
connection with Section 5-1401 of the General Obligations Law of the State of New York, this letter agreement shall be governed
by, and construed in accordance with, the laws of the State of New York without regard to principles of conflicts of law that would
result in the application of the substantive law of another jurisdiction. The parties hereto agree that any action, proceeding
or claim arising out of or relating in any way to this letter agreement shall be resolved through final and binding arbitration
in accordance with the International Arbitration Rules of the American Arbitration Association (“AAA”). The arbitration
shall be brought before the AAA International Center for Dispute Resolution’s offices in New York City, New York, will be
conducted in English and will be decided by a panel of three arbitrators selected from the AAA Commercial Disputes Panel and that
the arbitrator panel’s decision shall be final and enforceable by any court having jurisdiction over the party from whom
enforcement is sought. The cost of such arbitrators and arbitration services, together with the prevailing party’s legal
fees and expenses, shall be borne by the non-prevailing party or as otherwise directed by the arbitrators.


 




     


     


    

 


14.         As
used herein, (i) a “Business Combination” shall mean a merger, share exchange, asset acquisition, stock
purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities; (ii)
“Insiders” shall mean all officers, directors and shareholders of the Company immediately prior to the
IPO; (iii) “Insider Shares” shall mean all of the shares of Common Stock of the Company acquired by an
Insider prior to the IPO and the purchase of the Private Warrants; (iv) “IPO Shares” shall mean the shares
of Common Stock issued in the Company’s IPO; (v) “Private Warrants” shall mean the warrants purchased
in the private placement taking place simultaneously with the consummation of the Company’s IPO; (vi) “Registration
Statement” means the registration statement on Form S-1 filed by the Company with respect to the IPO; and (vii) “Trust
Fund” shall mean the trust fund into which a portion of the net proceeds of the Company’s IPO will be deposited.


 


15.         Any
notice, consent or request to be given in connection with any of the terms or provisions of this letter agreement shall be in writing
and shall be sent by express mail or similar private courier service, by certified mail (return receipt requested), by hand delivery
or facsimile transmission.


 


If to the Representative:


 


Chardan Capital Markets LLC


17 State Street


New York, NY 10004


Attn: George Kaufman


Facsimile: (646) 465-9039


 


Copy (which copy shall not constitute notice)
to:


 


Schiff Hardin LLP


901 K Street, Suite 700


Washington, DC 20001


Attn: Ralph V. De Martino, Esq. and Cavas
Pavri, Esq.


Facsimile: (202) 778-6400


 


If to the Company:


 


Chardan Healthcare Acquisition Corp.


17 State Street, Suite 1600


New York, NY 10004


Attn: Jonas Grossman


Facsimile:


 


Copy (which copy shall not constitute notice)
to:


 


Loeb & Loeb LLP


345 Park Avenue


New York, NY 10154


Attn: Mitchell S. Nussbaum, Esq. and Giovanni
Caruso


Facsimile: (212) 504-3013


 




     


     


    

 


16.         No
party hereto may assign either this letter agreement or any of its rights, interests, or obligations hereunder without the prior
written consent of the other party. Any purported assignment in violation of this paragraph shall be void and ineffectual and shall
not operate to transfer or assign any interest or title to the purported assignee. This letter agreement shall be binding on the
parties hereto and any successors and assigns thereof.


 


17.         The
undersigned acknowledges and understands that the Underwriters and the Company will rely upon the agreements, representations and
warranties set forth herein in proceeding with the IPO.


 


[Signature page to follow]


 




     


     


    

 


	 	 
	 	Print Name of Insider
	 	 
	 	 
	 	Signature


 


[Signature page to Insider Letter]