Document:

Exhibit 10.13 

 

Execution
Version

 

PLEDGE AGREEMENT

 

THIS PLEDGE AGREEMENT
(as defined below) is entered into as of October 7, 2022, by and among DRAGONFLY ENERGY HOLDINGS CORP. (f/k/a Chardan NexTech
Acquisition 2 Corp.), a Delaware corporation (“Holdings”), and each other entity executing this Agreement from time
to time as a “Pledgor” (Holdings, together with such entities, collectively the “Pledgors” and each individually
a “Pledgor”) and ALTER DOMUS (US) LLC, as agent (in such capacity,
the “Agent”) on behalf of the Secured Parties (as defined below).

 

W I T N E S S E T H:

 

WHEREAS,
Holdings has entered into that certain Term Loan, Guarantee and Security Agreement, dated as of even date herewith (the
 “Loan Agreement”), by and among Dragonfly Energy Corp., a Nevada corporation (“Borrower”),
Holdings, the Agent, the Lenders (as defined in the Loan Agreement) from time to time party thereto, and the other Credit Parties (as
defined in the Loan Agreement) from time to time party thereto; and

 

WHEREAS, as a condition
precedent to the effectiveness of the Loan Agreement, the Pledgor is required to execute and deliver this Agreement; and

 

WHEREAS, to secure
the due and punctual payment and performance of the Obligations (as defined in the Loan Agreement), each Pledgor wishes to pledge and
assign to the Agent, on behalf of the Secured Parties (as defined below), its Pledged Collateral (as defined below) and grant to them
a security interest in all of its right, title and interest in to and under such Pledged Collateral;

 

NOW, THEREFORE, for
and in consideration of the above premises and the mutual covenants and agreements contained herein and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

SECTION 1.     DEFINITIONS.

 

(a)            Terms
not otherwise defined herein shall have the meanings set forth in the Loan Agreement, or, if not defined therein, in the Code (as defined
below), and the following terms shall have the following meanings as used in this Agreement:

 

“Agent”
has the meaning assigned to such term in the preamble.

 

“Agreement”
means this Pledge Agreement, together with all Schedules hereto.

 

“Certificated Security”
means “certificated security” as defined in the Article 8 of the Code.

 

“CFC Holdco”
means any direct or indirect Domestic Subsidiary if all of its assets (directly or through one or more disregarded entities) consist
of Equity Interests in, and/or debt issued by, one or more (x) CFCs and/or (y) other CFC Holdcos.

 

    

     

    

 

“Chattel Paper”
means “chattel paper” as defined in Article 9 of the Code, including “electronic chattel paper” or “tangible
chattel paper”, as each term is defined in Article 9 of the Code.

 

“Code”
shall mean the Uniform Commercial Code as the same may, from time to time, be enacted and in effect in the State of New York; provided,
that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of, or remedies
with respect to, any Lien on any Pledged Collateral is governed by the Uniform Commercial Code as enacted and in effect in a jurisdiction
other than the State of New York, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such
other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority or remedies and for
purposes of definitions related to such provisions.

 

“Domestic Subsidiary”
means a Subsidiary that is organized under the laws of the United States or any state thereof or the District of Columbia.

 

“Equity Interests”
means, with respect to any Person, shares of capital stock of (or other ownership or profit interests in) such Person, warrants, options
or other rights for the purchase or other acquisition from such Person of shares of capital stock of (or other ownership or profit interests
in) such Person, whether preferred or common and whether voting or nonvoting, and securities convertible into or exchangeable for shares
of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or other
acquisition from such Person of such shares (or such other interests), and other ownership or profit interests in such Person (including,
without limitation, partnership, member or trust units or interests therein), whether voting or nonvoting, and whether or not such shares,
warrants, options, rights or other interests are authorized or otherwise existing on any date of determination.

 

“Excluded Equity”
means soley if a Requirement of Law would result in an adverse tax consequence to the Credit Parties as reasonably determined by the
Borrower, the Agent and the Required Lenders, (i) any voting stock of any direct Subsidiary of any Credit Party that is a controlled
foreign corporation (as defined in Section 957 of the Internal Revenue Code (a “CFC”)) or CFC Holdco in excess
of 65% of the total combined voting power of all classes of stock of such CFC that are entitled to vote (within the meaning of Treasury
Regulations § 1.956-2(c)(2)), and (ii) any Equity Interest in any Subsidiary of any CFC.

 

“Instruments”
means all “instruments” as defined in Article 9 of the Code.

 

“Intercompany Obligations”
has the meaning assigned to such term in Section 9.

 

“Issuer”
means any issuer of any of the Pledged Securities, including, without limitation, the Borrower.

 

“Loan Agreement”
has the meaning assigned to such term in the recitals.

 

“Pledged Collateral”
has the meaning assigned to such term in Section 2.

 

“Pledged Debt Securities”
has the meaning assigned to such term in Section 2.

 

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“Pledged Equity
Interests” has the meaning assigned to such term in Section 2.

 

“Pledged Securities”
means any promissory notes, stock certificates or other securities now or hereafter included in the Pledged Collateral, including all
certificates, Instruments or other documents representing or evidencing any Pledged Collateral.

 

“Pledgor”
has the meaning assigned to such term in the preamble.

 

“Proceeds”
means all “proceeds” as such term is defined in Article 9 of the Code and, in any event, shall include all dividends
or other income from the Pledged Collateral, collections thereon or distributions or payments with respect thereto.

 

“Secured Party”
shall mean any holder from time to time of any Obligations and shall include the Agent.

 

“Security”
means “security” as defined in Article 8 of the Code.

 

“Senior Obligations”
has the meaning assigned to such term in Section 9.

 

“Uncertificated
Security” means “uncertificated security” as defined in the Article 8 of the Code.

 

(b)            References
in this Agreement to “Articles”, “Sections”, “Schedules” or “Exhibits” shall be to Articles,
Sections, Schedules or Exhibits of or to this Agreement unless otherwise specifically provided. Any of the terms defined in this Section 1
may, unless the context otherwise requires, be used in the singular or plural depending on the reference. The terms “include”,
 “includes” and “including” as used herein shall be deemed to be followed by the words “without limitation”
whether or not they are in fact followed by such words or words of like import. The terms “writing”, “written”
and comparable terms as used herein refer to printing, typing and other means of reproducing words in a visible form. References “from”
or “through” any date herein mean, unless otherwise specified, “from and including” or “through and including”,
respectively. References to any statute and related regulation herein shall include any amendments of the same and any successor statutes
and regulations. Unless otherwise expressly provided herein, references herein to any agreement or contract herein are to such agreement
or contract and any and all amendments, supplements, extensions, restatements, replacements, refinancings or other modifications thereof.
References to any Person herein shall be deemed to include the successors and permitted assigns of such Person. The words “hereof”,
 “herein”, “hereto” and “hereunder” and words of similar import when used in this Agreement shall
refer to this Agreement as a whole and not to any particular provision of this Agreement. Any of the terms defined herein may be used
in either the singular or the plural. The terms “payment in full”, “paid in full” and any other similar terms
or phrases when used herein with respect to the Obligations means the payment in full, in immediately available funds, of all of the
Obligations, as the case may be, in each case, unless otherwise specified, other than indemnification and other contingent obligations
not then due and payable.

 

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SECTION 2.     PLEDGE
OF EQUITY INTERESTS; DEBT SECURITIES; CHATTEL PAPER; INSTRUMENTS.

 

Each Pledgor, as security
for the payment or performance, as the case may be, in full of all Obligations hereby assigns and pledges to the Agent, its successors
and permitted assigns, for the benefit of the Secured Parties, and hereby grants to the Agent, its successors and permitted assigns,
for the benefit of the Secured Parties, a security interest in all such Pledgor’s right, title and interest in, to and under all
of the following property (collectively, the “Pledged Collateral”; provided that the pledge and security interest
under this Agreement and any other Loan Document shall not extend to, and the term “Pledged Collateral”, including the term
 “Pledged Equity Interests”, shall not include any Excluded Equity, provided that, if any Excluded Equity would have
otherwise constituted Pledged Collateral, if and when such property shall cease to be Excluded Equity, such property shall be deemed
at all times from and after the date of its ceasing to be Excluded Equity to constitute Pledged Collateral):

 

(a)            (i) the
Equity Interests now owned or hereafter issued to or acquired by such Pledgor, including those listed on Schedule 1 and (ii) the
certificates representing all such Equity Interests (collectively, the “Pledged Equity Interests”);

 

(b)            (i) the
debt securities now owned or hereafter issued to or acquired by any Pledgor, including those listed on Schedule 1 and (ii) the
promissory notes and any other instruments evidencing such debt securities (collectively, the “Pledged Debt Securities”);

 

(c)            subject
to Section 6, all payments of principal or interest, dividends, cash, Chattel Paper, Instruments and other property
from time to time received, receivable or otherwise distributed in respect of, in exchange for or upon the conversion of, and all other
Proceeds received in respect of, the securities referred to in clauses (a) and (b) above;

 

(d)            subject
to Section 6, all rights and privileges of any Pledgor with respect to the Securities and other property referred to in clauses
(a), (b) and (c) above; and

 

(e)            all
Proceeds of any of the foregoing.

 

SECTION 3.     DELIVERY
OF PLEDGED SECURITIES.

 

(a)            Within
five (5) Business Days of the Closing Date, each Pledgor will deliver to the Agent all Pledged Securities, Chattel Paper and Instruments
constituting Pledged Collateral then owned by such Pledgor to the extent such items are required to be delivered by this Agreement. 
Each Pledgor agrees promptly (and in any event within ten (10) days after receipt thereof by such Pledgor) to deliver or cause to
be delivered to the Agent any and all Pledged Equity Interests and Pledged Debt Securities acquired by such Pledgor after the
Closing Date, to the extent such items are required to be delivered by this Agreement.

 

(b)            Each
Pledgor will cause any Indebtedness for borrowed money owed to such Pledgor (other than Excluded Property) in a principal amount in excess
of $500,000 in the aggregate for all such Indebtedness that is evidenced by a duly executed promissory note to be pledged and delivered
to the Agent pursuant to the terms hereof.

 

(c)            Upon
the delivery thereof to the Agent, (i) any Pledged Collateral which is a Certificated Security shall be accompanied by stock powers
duly executed in blank or other instruments of transfer satisfactory to the Agent and (ii) all other property comprising part of
the Pledged Collateral shall be accompanied by proper instruments of assignment duly executed by the applicable Pledgor. Each delivery
of Pledged Collateral after the date hereof shall be accompanied by a Supplement to Pledge Agreement in the form of Exhibit B
hereto (a “Supplement to Pledge Agreement”), which Supplement to Pledge Agreement shall include a schedule describing
the securities included therein, which schedule shall be attached hereto as part of Schedule 1 and made a part hereof, provided
that failure to attach any such schedule hereto shall not affect the validity of such pledge of such Pledged Collateral. Each schedule
so delivered shall supplement any prior schedules so delivered.

 

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(d)            If
any Issuer of Pledged Equity Interests (whether on the date hereof or any time after the date hereof during the effectiveness of this
Agreement) is a limited liability company or a limited partnership of which the majority of the voting Equity Interests are owned by
a Pledgor, then (i) such Issuer shall include, and such Pledgor shall cause such Issuer to include, in its limited liability company
agreement, operating agreement or limited partnership agreement provisions that any interests in such limited liability company or limited
partnership shall constitute “securities” as defined under Article 8 of the Code (and such Issuer shall not, and such
Pledgor shall cause such Issuer not to, opt-out of Article 8), (ii) such Pledged Securities shall be promptly certificated
and each Pledgor agrees to deliver to Agent, promptly upon receipt and in due form for transfer (i.e., endorsed in blank
or accompanied by membership interest or partnership interest transfer powers executed in blank), any Certificated Securities (other
than dividends or distributions which such Pledgor is entitled to receive and retain pursuant to the Loan Agreement and Section 6
hereof) which may at any time or from time to time come into the possession or control of such Pledgor, and (iii) prior to the
delivery thereof to Agent, such Certificated Securities shall be held by such Pledgor in express trust for Agent.

 

(e)            If
any Pledged Equity Interests of any Person are or shall become evidenced or represented by an Uncertificated Security, the Pledgors shall
(i) cause such Issuer to promptly execute and deliver to the Agent a Notice of Pledge of the pledge of such Uncertificated Security,
in the form of Exhibit A hereto, (ii) if necessary to perfect a security interest in such Uncertificated Security, cause
such pledge to be promptly recorded on the equity holder register or the books of such Issuer, execute any customary pledge forms or
other documents necessary or appropriate to complete the pledge and give the Agent the right to transfer such Uncertificated Security
under the terms hereof, and (iii) after the occurrence and during the continuation of an Event of Default, upon request by the Agent,
(A) cause the organizational documents of each such Issuer to be amended to provide that such Pledged Equity Interests shall be
treated as “securities” for purposes of the UCC and (B) cause such Pledged Equity Interests to become certificated and
delivered to the Agent in accordance with the provisions of Section 3(a).

 

SECTION 4.     REPRESENTATIONS
AND WARRANTIES.

 

Each Pledgor represents,
warrants and covenants to and with the Agent, for the benefit of the Secured Parties, that:

 

(a)            Schedule 1
correctly sets forth the percentage of the issued and outstanding units of each class of the Equity Interests of the Issuer thereof
represented by the Pledged Equity Interests owned by such Pledgor and includes all of the Equity Interests and all of the debt securities
and promissory notes or other evidences of indebtedness with a value in excess of $250,000 held by the Pledgors. No such Equity Interests
or debt securities are subject to prohibitions on assignment or encumbrance (in each case, other than non-consensual Permitted Liens
that arise by operation of law and restrictions set forth in the Issuer’s Organizational Documents) or to agreements that require
or purport to require consent of or notice to any party in connection with the grant of a security interest thereon (including the exercise
of remedies by the Agent with respect thereto) except for such consents that have been obtained and such notices have been given.

 

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(b)            In
the case of Pledged Equity Interests and Pledged Debt Securities issued to such Pledgor, to the knowledge of the Pledgor in the case
of Pledged Debt Securities issued by a Person who is not an Affiliate of such Pledgor, such Pledged Equity Interests and Pledged Debt
Securities have been duly and validly authorized and issued by the Issuers thereof and (i) in the case of Pledged Equity Interests,
are fully paid and (to the extent applicable) nonassessable and (ii) in the case of Pledged Debt Securities are legal, valid and
binding obligations of the Issuers thereof, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity
or at law.

 

(c)            Intentionally
Omitted.

 

(d)            Except
for the security interests granted hereunder or under the other Loan Documents, such Pledgor (i) is and, subject to any transfers
made in compliance with the Loan Agreement or this Agreement, will continue to be the direct owner, beneficially and (subject to Agent’s
registration rights under Section 5 hereof) of record, of the Pledged Equity Interests indicated on Schedule 1 as
owned by such Pledgor, (ii) holds the same free and clear of all Liens, other than Liens created by this Agreement or the other
Loan Documents, non-consensual Permitted Liens that arise by operation of law (and restrictions set forth in the Issuer’s Organizational
Documents) and transfers made in compliance with the Loan Agreement, (iii) will make no assignment, pledge, hypothecation or transfer
of, or create or permit to exist any security interest in or other Lien on, the Pledged Collateral, other than Liens created by this
Agreement or the other Loan Documents, non-consensual Permitted Liens that arise by operation of law and transfers made in compliance
with the Loan Agreement, and (iv) will defend his, her or its title or interest thereto or therein against any and all Liens on
the Pledged Collateral (other than the Lien created by this Agreement and the Loan Documents), however arising, of all persons whomsoever.

 

(e)            Except
for restrictions and limitations imposed by this Agreement, the Loan Documents, the Issuer’s Organizational Documents, or securities
laws generally, such Pledgor’s Pledged Collateral is and will continue to be freely transferable and assignable, and none of such
Pledgor’s Pledged Collateral is or will be subject to any option, right of first refusal, shareholders agreement, voting trust,
charter or by-law provisions or contractual restriction of any nature that might prohibit, impair, delay or otherwise affect the pledge
of such Pledgor’s Pledged Collateral hereunder, the sale or disposition thereof pursuant hereto or the exercise by the Agent of
rights and remedies hereunder.

 

(f)            Each
Pledgor, with respect to any legal entities, has the power and authority to pledge the Pledged Collateral pledged by it hereunder in
the manner hereby done or contemplated.

 

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(g)            No
consent or approval of any Governmental Authority, any securities exchange or any other Person was or is necessary to ensure the validity
of the pledge of any of such Pledgor’s Pledged Collateral (other than such as have been obtained and are in full force and effect).

 

(h)            By
virtue of the execution and delivery of this Agreement, the Agent has a first priority legal, valid and perfected Lien (subject to non-consensual
Permitted Liens that arise by operation of law) upon and security interest in the Pledged Collateral as security for the payment and
performance of the Obligations.

 

(i)            If
such Pledgor shall become entitled to receive or shall receive any stock or other ownership certificate (including any certificate representing
a stock dividend or a distribution in connection with any reclassification, increase or reduction of capital or any certificate issued
in connection with any reorganization), option or rights in respect of such Pledgor’s Pledged Equity Interests in any Credit Party
or any of its Subsidiaries, whether in addition to, in substitution of, as a conversion of, or in exchange for, any shares of or other
ownership interests in the Pledged Equity Interests, or otherwise in respect thereof, such Pledgor shall assign, pledge and grant such
Pledgor’s right, title and interest in and to the same to the Agent pursuant to Section 2(a) hereof, and deliver
the same to the Agent in the exact form received, duly endorsed by such Pledgor to the Agent, if required, together with an undated stock
power or similar instrument of transfer covering such certificate duly executed in blank by such Pledgor, to be held by such Pledgor,
subject to the terms hereof, as additional collateral security for the Obligations. Except as otherwise provided in the Loan Agreement,
any sums paid upon or in respect of the Pledged Equity Interests upon the liquidation or dissolution of any Credit Party or any of its
Subsidiaries shall be paid over to the Agent to be held by it hereunder as additional collateral security for the Obligations, and in
case any distribution of capital shall be made on or in respect of the Pledged Equity Interests or any property shall be distributed
upon or with respect to the Pledged Equity Interests pursuant to the recapitalization or reclassification of the capital of any Issuer
or pursuant to the reorganization thereof, the property so distributed shall, unless otherwise subject to a perfected security interest
in favor of the Agent, be delivered to the Agent to be held by it hereunder as additional collateral security for the Obligations. If
any sums of money or property so paid or distributed in respect of such Pledgor’s Pledged Equity Interests shall be received by
such Pledgor, such Pledgor shall, unless otherwise permitted by the Loan Agreement, until such money or property is paid or delivered
to the Agent, hold such money or property in trust for the Secured Parties, segregated from other funds of such Pledgor, as additional
collateral security for the Obligations.

 

SECTION 5.     REGISTRATION
IN NOMINEE NAME; DENOMINATIONS.

 

The Agent, on behalf of the
Secured Parties, shall have the right (in its sole and absolute discretion) to hold the Pledged Collateral in its own name as pledgee,
the name of its nominee (as pledgee or as sub-agent) or the name of the Pledgor, endorsed or assigned in blank or in favor of the Agent.
To the extent not prohibited by any applicable Requirement of Law or contract, each Pledgor will promptly give to the Agent copies of
any material notices or other material communications received by it with respect to Pledged Collateral registered in the name of such
Pledgor. Upon the occurrence and during the continuation of an Event of Default, the Agent shall at all times have the right to exchange
the certificates representing Pledged Collateral for certificates of smaller or larger denominations for any purpose consistent with
this Agreement.

 

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SECTION 6.     VOTING
RIGHTS; DIVIDENDS AND INTEREST.

 

(a)            Unless
and until an Event of Default shall have occurred and be continuing, each Pledgor shall be entitled to exercise any and all voting and/or
other consensual rights and powers inuring to an owner of Pledged Collateral or any part thereof for any purpose not inconsistent with
the terms of this Agreement, the Loan Agreement and the other Loan Documents (and until an Event of Default shall have occurred and be
continuing, Agent shall not be entitled to any of such rights), provided that such rights and powers shall not be exercised in any manner
which would have the effect of materially and adversely imparing the rights and remedies of any of the Agent or the other Secured Parties
under this Agreement, the Loan Agreement or any other Loan Document or the ability of the Secured Parties to exercise the same. Pledgor
shall be entitled to collect and receive for such Pledgor’s own use, and shall not be required to pledge, any cash dividends, proceeds
or distributions paid in respect of the Pledged Collateral, except such dividends, proceeds or distributions as are prohibited under
the Loan Agreement or any other Loan Document; provided, however, that until the Obligations are paid in full, all rights to any such
permitted dividends, proceeds or distributions shall remain subject to the lien created by this Agreement and the mandatory prepayment
provisions set forth in the Loan Agreement.

 

(b)            Upon
the occurrence and during the continuance of an Event of Default, at the option of the Agent (at the direction of the Required Lenders)
in its sole discretion, all rights of the Pledgors to exercise the voting and consensual rights and powers they are entitled to exercise
pursuant to Section 6(a) shall cease upon concurrent written notice from Agent, and all such rights shall thereupon
become vested in the Agent, which shall have the sole and exclusive right and authority to exercise such voting and consensual rights
and powers, provided that, the Agent shall have the right from time to time following and during the continuance of an Event of Default
to permit the Pledgors to exercise such rights in Agent’s sole and absolute discretion. Each Pledgor shall execute and deliver
to the Agent, or cause to be executed and delivered to the Agent, all proxies, powers of attorney and other instruments as the Agent
may request for the purpose of enabling the Agent to exercise the voting and/or consensual rights and powers it is entitled to exercise
pursuant to this Section 6.

 

SECTION 7. REMEDIES.

 

(a)            Upon
the occurrence and during the continuance of an Event of Default, the Agent, on behalf of the Secured Parties, may sell, transfer or
otherwise dispose of the Pledged Collateral or any interest or right therein or any part thereof, in one or more parcels, at the same
or different times, at a public or private sale, or may make any other commercially reasonable disposition of the Pledged Collateral
or any portion thereof. The Secured Parties may purchase the Pledged Collateral or any portion thereof at any public or private foreclosure
sale. Each purchaser at any sale or other disposition of the Pledged Collateral shall hold the Pledged Collateral sold absolutely free
from any claim or right on the part of any Pledgor, and, to the extent permitted by any applicable Requirement of Law, each Pledgor hereby
waives all rights of redemption, stay, valuation and appraisal such Pledgor now has or may at any time in the future have under any rule of
law or statute now existing or hereafter enacted. The Proceeds of the sale or other disposition shall be applied to the Obligations in
such order as set forth in the Loan Agreement. Any remaining Proceeds shall be paid over to the Pledgor or others as provided by any
applicable Requirement of Law.

 

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(b)            To
the extent that the Pledged Collateral is not registered under the various federal or state securities acts, the disposition thereof
after the occurrence and during the continuance of an Event of Default may be restricted to one or more private (instead of public) sales
in view of the lack of such registration; each Pledgor understands that, upon such disposition, the Agent, on behalf of the Secured Parties,
may approach only a restricted number of potential purchasers and further understands that a sale under such circumstances may yield
a lower price for the Pledged Collateral than if the Pledged Collateral were registered pursuant to federal and state securities legislation
and sold on the open market. The Pledged Collateral is not, as of the date of this Agreement, registered under the various federal and
state securities laws. Each Pledgor, therefore, agrees that:

 

(i)            if
the Agent, on behalf of the Secured Parties, shall, pursuant to the terms of this Agreement, sell or cause the Pledged Collateral or
any portion thereof to be sold at a private sale, the Secured Parties shall have the right to rely upon the advice and opinion of any
national brokerage or investment firm having recognized expertise and experience in connection with shares or obligations of companies
or entities in the same or similar business as the issuing company or entity, which brokerage or investment firm shall have reviewed
financial data and other information available to the Secured Parties pertaining to any Credit Party and any of its Subsidiaries (but
shall not be obligated to seek such advice, and the failure to do so shall not be considered in determining the commercial reasonableness
of the Agent’s action) as to the best manner in which to expose the Pledged Collateral for sale and as to the best price reasonably
obtainable at the private sale thereof; and

 

(ii)            absent
manifest error, such reliance shall be conclusive evidence that the Secured Parties have handled such disposition in a commercially reasonable
manner.

 

(c)            The
Agent, on behalf of the Secured Parties, shall have such rights and remedies as are set forth in the Loan Documents, all the rights,
powers and privileges of a secured party under the Code as in effect in the applicable jurisdiction, and all other rights and remedies
available to the Agent, on behalf of any Secured Party, at law or in equity.

 

SECTION 8.     Security
Interest Absolute; RIGHTS CUMULATIVE; PLEDGORS REMAIN LIABLE; FURTHER ASSURANCES.

 

(a)            All
rights of the Secured Parties and all security interests and all obligations of the Pledgors hereunder shall be continuing, absolute
and unconditional irrespective of: (a) any lack of validity or enforceability of the Loan Agreement, the Notes, the Loan Documents,
or any other documents executed and delivered in connection therewith; (b) any change in the time, manner or place of payment of,
or any other term in respect of, all or any of the Obligations, or any other amendment or waiver of or consent to any departure from
the Loan Agreement, the Notes, the Loan Documents or any other document executed or delivered in connection therewith; (c) any increase
in, addition to, exchange or release of, or non-perfection of any Lien on or security interest in any other collateral or any release
of, amendment of, waiver of, consent to or departure from any security document or guaranty, for all or any of the Obligations; (d) the
failure of the Secured Parties to do any of the things or exercise any of the rights, interests, powers and authorities hereunder or
(e) the absence of any action on the part of the Secured Parties to obtain payment or performance of the Obligations from any other
Person. None of the Secured Parties shall in any way be responsible for any failure to do any or all of the things for which rights,
interests, power and authority are herein granted.

 

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(b)            Each
Pledgor agrees that the rights of the Secured Parties, under this Agreement, the Loan Agreement, the Loan Documents, any other document
executed in connection therewith, or any other contract or agreement now or hereafter in existence among the Secured Parties, or any
of them, and the Pledgors shall be cumulative, and that the Secured Parties, or any of them, may from time to time exercise such rights
and such remedies as the Secured Parties, or any of them, may have thereunder and under the laws of the United States and any state,
as applicable, in the manner and at the time that the Secured Parties in their sole discretion desire. Each Pledgor further expressly
agrees that the Secured Parties shall not in any event be under any obligation to resort to any Pledged Collateral prior to exercising
any other rights that the Secured Parties, or any of them, may have against any Pledgor or its property, or to resort to any other collateral
for the Obligations prior to the exercise of remedies hereunder nor shall the rights and remedies of the Secured Parties be conditional
or contingent on any attempt of the Secured Parties to exercise any of its or their rights under any other documents executed in connection
herewith against such party or against any other Person.

 

(c)            Notwithstanding
anything herein to the contrary, (i) each Pledgor shall remain liable for all obligations under its Pledged Collateral and nothing
contained herein is intended or shall be construed as a delegation of duties to the Agent or any other Secured Party and (ii) the
exercise by the Agent of any of its rights hereunder shall not release any Pledgor from any of its duties or obligations under its Pledged
Collateral.

 

(d)            This
Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or against any Pledgor for
liquidation or reorganization, should any Pledgor become insolvent or make an assignment for the benefit of creditors or should a receiver
or trustee be appointed for all or any significant part of any Pledgor’s assets, and shall continue to be effective or be reinstated,
as the case may be, if at any time payment and performance of the Obligations, or any part thereof, is, pursuant to applicable law, rescinded
or reduced in amount, or must otherwise be restored or returned by Agent or any Secured Party, whether as a “voidable preference,”
 “fraudulent conveyance,” “fraudulent assignment” or otherwise, all as though such payment or performance had
not been made. In the event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the Obligations shall
be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.

 

(e)            Each
Pledgor agrees to make, execute, deliver or cause to be done, executed and delivered, from time to time, all such further acts, documents
and things as the Agent, on behalf of any Secured Party, may reasonably require for the purpose of perfecting or protecting its or their
rights hereunder or otherwise giving effect to this Agreement (other than Excluded Perfection Actions), all promptly upon request therefor,
including, but not limited to, delivery of updated schedules describing the Pledged Collateral in form and substance reasonably satisfactory
to the Agent. Each Pledgor shall take or cause to be performed such acts and actions as shall be necessary or appropriate to assure that
the security interest in and to the Pledged Collateral shall not become subordinate or junior to the security interests, liens or claims
of any other Person except for non-consenual Permitted Liens that arise by operation of law.

 

    10

     

    

 

SECTION 9.     SUBORDINATION.

 

(a)            Each
Pledgor executing this Agreement covenants and agrees that the payment of all Indebtedness and any principal or interest (including interest
which accrues after the commencement of any case or proceeding in bankruptcy, or for the reorganization of any Credit Party) thereon,
owing by any Credit Party or any of its Subsidiaries to such Pledgor, including any intercompany trade payables or royalty or licensing
fees (collectively, the “Intercompany Obligations”), is subordinated, to the extent and in the manner provided in
this Section 9, to the prior payment in full of all Obligations (other than contingent indemnification Obligations to the
extent no claim giving rise thereto has been asserted) (herein, the “Senior Obligations”) and that the subordination
is for the benefit of Agent and the other Secured Parties, and Agent may enforce such provisions directly.

 

(b)            Each
Pledgor executing this Agreement hereby (i) authorizes Agent to demand specific performance of the terms of this Section 9,
whether or not any other Pledgor shall have complied with any of the provisions hereof applicable to it, at any time when an Event of
Default has occurred and is continuing and (ii) irrevocably waives (to the maximum extent permitted by any Requirement of Law) any
defense based on the adequacy of a remedy at law, which might be asserted as a bar to such remedy of specific performance.

 

(c)            Upon
any distribution of assets of any Credit Party in any dissolution, winding up, liquidation or reorganization (whether in bankruptcy,
insolvency or receivership proceedings or upon an assignment for the benefit of creditors or otherwise):

 

(i)            Agent
and other Secured Parties shall first be entitled to receive payment in full in cash of the Senior Obligations before any Pledgor is
entitled to receive any payment on account of the Intercompany Obligations, unless otherwise permitted by the Loan Agreement.

 

(ii)            Any
payment or distribution of assets of any Pledgor of any kind or character, whether in cash, property or securities, to which any other
Pledgor would be entitled except for the provisions of this Section 9(c), shall be paid by the liquidating trustee or agent
or other Person making such payment or distribution directly to Agent, to the extent necessary to make payment in full of all Senior
Obligations (other than contingent indemnification obligations as to which no claim has been asserted) remaining unpaid after giving
effect to any concurrent payment or distribution or provisions therefore to Agent and the other Secured Parties.

 

(iii)            In
the event that notwithstanding the foregoing provisions of this Section 9(c), any payment or distribution of assets of any
Credit Party or any of its Subsidiaries of any kind or character, whether in cash, property or securities, shall be received by any Pledgor
on account of the Intercompany Obligations before all Senior Obligations (other than contingent indemnification obligations as to which
no claim has been asserted) are paid in full, such payment or distribution shall be received and held in trust for and shall be paid
over to Agent for application to the payment of the Senior Obligations (other than contingent indemnification obligations as to which
no claim has been asserted) until all of the Senior Obligations (other than contingent indemnification obligations as to which no claim
has been asserted) shall have been paid in full, after giving effect to any concurrent payment or distribution or provision therefore
to Agent and other Secured Parties.

 

    11

     

    

 

(d)            No
right of Agent and the other Secured Parties or any other present or future holders of any Senior Obligations to enforce the subordination
provisions herein shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of any Pledgor or by
any act or failure to act, in good faith, by any such holder, or by any noncompliance by any Pledgor with the terms hereof, regardless
of any knowledge thereof which any such holder may have or be otherwise charged with.

 

SECTION 10.     POWER
OF ATTORNEY.

 

(a)            Each
Pledgor hereby appoints the Agent its attorney-in-fact, effective upon the occurrence and during the continuance of an Event of Default,
with power of substitution, to take such action, execute such documents, and perform such work, as the Agent may deem reasonably appropriate
to protect the Pledged Collateral or exercise the rights and remedies granted the Agent herein including the authority (i) to receive,
open and dispose of in an appropriate manner all mail addressed to such Pledgor, and to notify the postal authorities to change the address
for delivery of mail addressed to such Pledgor to such address as the Agent may designate, (ii) to endorse the name of such Pledgor
on any note, acceptance, check, draft, money order or other evidence of debt from any Credit Party or any of its Subsidiaries to such
Pledgor or of payment by any Credit Party or any of its Subsidiaries to such Pledgor which may come into the possession of any Secured
Party, (iii) to compromise and settle or to sell, assign or transfer or to ask, collect, receive or issue any and all claims in
respect of the Pledged Collateral possessed by such Pledgor all in the name of such Pledgor and (iv) generally to do such other
things and acts in the name of such Pledgor as are necessary or appropriate to protect the Pledged Collateral or exercise the rights
and remedies granted the Agent herein.

 

(b)            Each
Pledgor ratifies its authorization for the Agent to file the financing statements on or after the date hereof covering the Pledged Collateral,
if any.

 

(c)            The
power of attorney granted herein is coupled with an interest and shall be irrevocable until the Termination Date.

 

SECTION 11. Assignment.

 

(a)            The
Pledgors agree that this Agreement and rights of any Secured Party hereunder may in the discretion of such Secured Party be assigned
in whole or in part by such Secured Party in accordance with the terms of the Loan Agreement. The Agent may also appoint sub-agents in
accordance with the terms of the Loan Agreement. The Pledgors agree that the rights of any and all assignees shall be independent of
any claims the Pledgors may have against the assignor or assignors. In the event this Agreement is so assigned by any of the Secured
Parties, the terms “Agent,” “Secured Parties,” and “Secured Party” wherever used herein shall be
deemed to refer to and include any such permitted assignee or assignees, as appropriate and in accordance with the terms of the Loan
Agreement. This Agreement may be assigned by the Pledgors only with the written consent of the Agent.

 

    12

     

    

 

(b)            This
Agreement shall apply to and bind the Pledgors and the respective successors and assigns of the Pledgors and inure to the benefit of
the respective successors and permitted assigns of the Secured Parties.

 

SECTION 12. INDEMNITY
AND EXPENSES.

 

(a)            Each
Pledgor agrees to indemnify each Secured Party in accordance with the terms of the Loan Agreement including, without limitation, the
indemnification provisions set forth in Section 1.10 of the Credit Agreement.

 

(b)            Each
Pledgor will pay to the Agent all reasonable and documented out-of-pocket expenses in connection with the negotiation, administration
and enforcement of this Agreement, in accordance with Section 10.2 of the Loan Agreement

 

(c)            Any
amounts payable as provided hereunder shall constitute additional Obligations and shall survive the termination of this Agreement.

 

SECTION 13. miscellaneous.

 

(a)            Notices.
All notices and other communications required or permitted hereunder shall be in writing and shall be given in a manner prescribed for
notices in the Loan Agreement and shall be effective as to any Pledgor if sent to such Pledgor in care of the Borrower at the address
of the Borrower set forth in the Loan Agreement.

 

(b)            Governing
Law. The provisions of this Agreement shall be construed and interpreted, and all rights and obligations of the parties hereto determined,
in accordance with the laws of the State of New York.

 

(c)            Binding
Agreement. This Agreement, together with all documents referred to herein, constitutes the entire Agreement among the Pledgors and
the Secured Parties, or any of them, with respect to the matters addressed herein. In the event that a provision of this Agreement is
in direct conflict with a provision of the Loan Agreement, the Loan Agreement shall govern.

 

(d)            Amendment
and Waiver. This Agreement may not be waived, amended, supplemented or otherwise modified except by a written instrument executed
by the Agent and Pledgors. None of the Secured Parties shall by any act, delay, omission or otherwise, be deemed to have waived any of
its or their rights or remedies hereunder, unless such waiver is in writing and signed by the Agent or one or more of the Agent or the
Lenders in accordance with the Loan Agreement and then only to the extent therein set forth. A waiver by the Secured Parties, of any
right or remedy on any occasion shall not be construed as a bar to the exercise of any such right or remedy which any such Person would
otherwise have had on any other occasion.

 

    13

     

    

 

(e)            Severability.
If any paragraph or part thereof shall for any reason be held or adjudged to be invalid, illegal or unenforceable by any court of competent
jurisdiction, such paragraph or part thereof so adjudicated invalid, illegal or unenforceable shall be deemed separate, distinct and
independent, and the remainder of this Agreement shall remain in full force and effect and shall not be affected by such holding or adjudication.

  

(f)            Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all such separate
counterparts shall together constitute but one and the same instrument. This Agreement may be authenticated by manual signature, facsimile
or, if approved in writing by Agent, electronic means, all of which shall be equally valid. Delivery of an executed counterpart of a
signature page of this Agreement by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective
as delivery of a manually executed counterpart of this Agreement. The words “execution,” “signed,” “signature,”
and words of like import in this Agreement shall be deemed to include electronic signatures or electronic records, each of which shall
be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system,
as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and
National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform
Electronic Transactions Act, as the case may be.

 

(g)            Time
is of the Essence. Time is of the essence with regard to each Pledgor’s performance of its obligations hereunder.

 

(h)            Termination.
Upon the Termination Date, this Agreement and the security interests granted and evidenced hereby shall be terminated and, at Pledgor’s
expense, Agent shall return the Certificated Securities and other Collateral to Pledgor and execute such further documents or authorize
the filing of such terminations as Pledgor may reasonably request to evidence such termination.

 

(i)            Jurisdiction
and Venue. If any action or proceeding shall be brought by the Agent in order to enforce any right or remedy under this Agreement,
each Pledgor hereby consents to the jurisdiction of any state or federal court of competent jurisdiction sitting within the area comprising
the State of New York, County of New York on the date of this Agreement. Each Pledgor hereby agrees, to the extent permitted by applicable
Requirement of Law that service of the summons and complaint and all other process which may be served in any such suit, action or proceeding
may be effected by mailing by registered mail a copy of such process to the offices of such Pledgor, as set forth in or otherwise provided
pursuant to Section 10.6 of the Loan Agreement, and that personal service of process shall not be required. Nothing herein shall
be construed to prohibit service of process by any other method permitted by law, or the bringing of any suit, action or proceeding in
any other jurisdiction. Each Pledgor agrees that final judgment in such suit, action or proceeding shall be conclusive and may be enforced
in any other jurisdiction by suit on the judgment or in any other manner provided by applicable Requirement of Law.

 

(j)            WAIVER
OF JURY TRIAL. EACH OF THE AGENT, THE OTHER SECURED PARTIES AND EACH PLEDGOR WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY PROCEEDING
ARISING UNDER OR RELATED TO THE SUBJECT MATTER OF THIS AGREEMENT.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

    14

     

    

 

IN WITNESS WHEREOF,
this Agreement has been duly executed as of the date first written above.

 

	 	Pledgor:
	 	 
	 	DRAGONFLY ENERGY HOLDINGS CORP.
	 	 
	 	By: 	/s/ Denis Phares
	 	Name: Denis Phares 
	 	Title: Chief Executive Officer

 

signature
page

pledge agreement

 

    

     

    

 

	 	agent:
	 	 
	 	ALTER DOMUS (US) LLC, 
	 	as Agent for the Secured Parties
	 	 
	 	By: 	/s/ Pinju Chiu
	 	Name: Pinju Chiu 
	 	Title: Associate Counsel

 

signature
page

pledge agreement

 

    

     

    

 

Acknowledgement
of Issuer

 

The undersigned Credit Party agrees to be bound
by the terms of the foregoing Pledge Agreement and agrees not take, or omit to take, any action in contravention thereof.

 

ACKNOWLEDGED AND AGREED TO:

 

ISSUER:

 

	DRAGONFLY ENERGY CORP.	 
	 	 
	By: 	/s/ Denis Phares	 
	Name: Denis Phares 	 
	Title: Chief Executive Officer	 

 

signature
page

pledge agreement

 

    

     

    

 

SCHEDULE 1 

to 

Pledge Agreement

 

Equity Interests

 

	Pledgor	Issuer	Pledged Equity Description

     
	Percentage of Interests

    or Shares and Number 

    of Voting Shares or 

    Units in Issuer

     
	Certificate
    Number
	Dragonfly
    Energy Holdings Corp.	Dragonfly
    Energy Corp.	Common
    stock	100
    shares	A-1

 

Debt Securities

 

None.

 

Other Securities

 

None.

 

    

     

    

 

EXHIBIT A 

to 

Pledge Agreement

 

NOTICE
OF PLEDGE

 

[_______________], 20[__]

 

		TO:	[NAME
                                            OF ISSUER], a [State] [Entity Type] (“Company”)

 

Notice is hereby given that,
pursuant to that certain Pledge Agreement dated as of October 7, 2022 (as amended, restated, supplemented or otherwise modified
from time to time, the “Agreement”), by and among the undersigned Pledgor (the “Pledgor”), the
other Pledgors from time to time party thereto and ALTER DOMUS (US) LLC, as agent (in such capacity, “Agent”) for
itself and for the other Secured Parties, in connection with financing arrangements in effect among, inter alia, Borrower, Agent,
Holdings, the Lenders, and the other Credit Parties, Pledgor has pledged
to Agent for itself and for the other Secured Parties, and granted to Agent for itself and for the other Secured Parties, a continuing
security interest in the Pledged Collateral. All capitalized terms used but not defined herein shall have the respective meanings assigned
to such terms in the Agreement.

 

Pursuant to the Agreement,
Company is hereby authorized and directed to:

 

(i)            register
on its books Pledgor’s pledge to Agent of the Pledged Collateral; and

 

(ii)            upon
the occurrence and during the continuance of an Event of Default make direct payment to Agent of any amounts due or to become due to
Pledgor that are attributable, directly or indirectly, to Pledgor’s ownership of the Pledged Collateral in accordance with the
terms of the Agreement.

 

Company acknowledges and
agrees that upon the delivery of any certificates representing the Pledged Collateral issued by Company endorsed to Agent or in blank,
or to the extent the Pledged Collateral are not represented by certificates, upon the execution and delivery of this Notice of Pledge
(this “Notice”), Agent shall have control (as such term is used in Sections 9-314, 9-106 and 8-106 and any successor
sections of the UCC) over the Pledged Collateral.

 

Notwithstanding anything
contained herein to the contrary, Company shall not issue or deliver to any Person at any time, unless requested to do so in writing
by Agent, any certificates representing the Pledged Collateral.

 

Pledgor hereby requests Company
to indicate its acceptance of this Notice and consent to and confirmation of its terms and provisions by signing a copy of this Notice
where indicated below and returning it to Agent.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

    

     

    

 

	PLEDGOR:	[NAME OF PLEDGOR]   
	 
	 	By:	                                                                                
	 	Name:
	 	Title:

 

signature
page

notice of pledge

 

    

     

    

 

	 	Acknowledged and agreed to as of the date first written above
    by Company:

 

	COMPANY:	[NAME
    OF ISSUER]    
	 
	 	By:	                                                                                
	 	Name:
	 	Title:

 

signature
page

notice of pledge

 

    

     

    

 

EXHIBIT B 

to 

Pledge Agreement

 

SUPPLEMENT
TO PLEDGE AGREEMENT

 

THIS SUPPLEMENT TO PLEDGE
AGREEMENT, dated as of [__________], 20[___] (this “Pledge Supplement”), supplements that certain Pledge Agreement,
dated as of October 7, 2022, by and among DRAGONFLY ENERGY HOLDINGS CORP. (f/k/a Chardan NexTech Acquisition 2 Corp.), a Delaware
corporation (“Holdings”), the other Pledgors from time to time party thereto and ALTER DOMUS (US) LLC, as agent (in
such capacity, “Agent”) for itself and for the other Secured Parties (as amended, restated, supplemented or otherwise
modified from time to time, the “Pledge Agreement”). Capitalized terms used herein without definition are used as
defined in the Pledge Agreement.

 

Each of the undersigned (each
individually a “Pledgor” and collectively, the “Pledgors”) hereby agrees that (i) this Pledge
Supplement shall be attached to the Pledge Agreement and that the Securities listed below shall be and become part of the Securities
referred to in the Pledge Agreement and shall secure all Obligations of the undersigned under the Loan Agreement and (ii) the information
set forth below is hereby added to the information set forth in Schedule I to the Pledge Agreement. Each of the undersigned hereby represents
and warrants that each of the representations and warranties contained in the Pledge Agreement applicable to it is true and correct in
all material respects on and as the date hereof as if made on and as of such date. Each of the Pledgors further acknowledges and agrees
that the terms and provisions of the Pledge Agreement are hereby ratified and confirmed and shall continue in full force and effect,
such Pledgor hereby agreeing that the Pledge Agreement continues to be validly existing and enforceable in accordance with its terms,
as supplemented hereby.

 

IDENTIFICATION OF PLEDGED EQUITY INTERESTS

 

	Pledgor	Issuer
    and Organization	Pledged
    Equity Description	Percentage
    of Interests or Shares and Number of Voting Shares or Units in Issuer	Certificate
    Number
	 	 	 	 	 

 

[Signature Page Follows]

 

    

     

    

 

IN WITNESS WHEREOF, the undersigned
has caused this Pledge Supplement to be duly executed and delivered as of the date first above written.

 

		PLEDGOR:

 

	 	[NAME OF PLEDGOR]
	 	 
	 	By:	                           
	 	Name: 
	 	Title:

 

signature
page 

supplement
to pledge agreement

 

    

     

    

 

ACKNOWLEDGED AND AGREED

as of the date first above written:

 

	ALTER DOMUS (US) LLC, as Agent	 
	 	 
	By 	                                                            	 
	Name: 	 
	Title:	 

 

signature
page 

supplement
to pledge agreementExhibit 10.14

 

Employment
Agreement

 

This
Employment Agreement (the “Agreement”) is made and entered into as of January 1, 2022, by and between Denis Phares
(the “Executive”) and Dragonfly Energy Corp., a Nevada corporation (the “Company”).

 

WHEREAS,
the Company desires to employ the Executive on the terms and conditions set forth herein; and

 

WHEREAS,
the Executive desires to be employed by the Company on such terms and conditions.

 

NOW,
THEREFORE, in consideration of the mutual covenants, promises, and obligations set forth herein, the parties agree as follows:

 

1.      
Term. Subject to Section 5 of this Agreement, the Executive’s initial term of employment hereunder shall be from the period
beginning on January 1, 2022 (the “Effective Date”) through December 31, 2022 (the “Initial Term”). Thereafter,
the Agreement shall be deemed to be automatically extended, upon the same terms and conditions, for successive periods of one year, unless
either party provides written notice of its intention not to extend the term at least 90 days prior to the end of the Initial Term or
one-year extension thereof. The period during which the Executive is employed by the Company hereunder is hereinafter referred to as
the “Employment Term.”

 

2.      
Position and Duties.

 

2.1      
Position. During the Employment Term, the Executive shall serve as the Chief Executive Officer of the Company, reporting to Board
of Directors. In such position, the Executive shall have such duties, authority, and responsibilities as are consistent with the Executive’s
position.

 

2.2      
Duties. During the Employment Term, the Executive shall devote substantially all of his business time and attention to the performance
of the Executive’s duties hereunder and will not engage in any other business, profession, or occupation for compensation or otherwise
which would conflict or interfere with the performance of such services either directly or indirectly without the prior written consent
of the Board.

 

3.      
Place of Performance. The principal place of Executive’s employment shall be the Company’s principal executive office
currently located in Reno, Nevada; provided that, the Executive may be required to travel on Company business during the Employment Term.

 

4.      
Compensation.

 

4.1      
Base Salary. The Company shall pay the Executive an annual rate of base salary of $800,000 in periodic installments in accordance
with the Company’s customary payroll practices and applicable wage payment laws, but no less frequently than monthly. The Executive’s
base salary shall be reviewed at least annually by the Board and the Board may increase or decrease the Executive’s base salary
during the Employment Term. The Executive’s annual base salary, as in effect from time to time, is hereinafter referred to as “Base
Salary.”

 

     

     

    

 

4.2      
Annual Bonus.

 

(a)      
For each complete calendar year of the Employment Term, the Executive shall be eligible to receive an annual bonus (the “Annual
Bonus”). As of the Effective Date, the Executive’s annual target bonus opportunity shall be equal to 100% of Base Salary
(the “Target Bonus”), based on the achievement of Company performance goals established by the Compensation Committee
of the Board (the “Compensation Committee”); provided that the maximum Annual Bonus that may be paid to the Executive
is 100% of Base Salary. The Annual Bonus for the 2022 calendar year shall be pro-rated based on the number of days employed during the
year.

 

(b)       
The Annual Bonus, if any, will be paid within two and a half (2 1/2) months after the end of the applicable calendar year.

 

(c)      
Except as otherwise provided in Section 5, in order to be eligible to receive an Annual Bonus, the Executive must be employed by the
Company on the date that Annual Bonuses are paid.

 

4.3       
Equity Awards. With respect to each calendar year of the Company ending during the Employment Term, the Executive shall be eligible
to receive an annual long-term incentive award of outstanding shares each year vested over 12 months. All terms and conditions applicable
to each such award shall be determined by the Compensation Committee.

 

4.4       
Fringe Benefits and Perquisites. During the Employment Term, the Executive shall be entitled to fringe benefits and perquisites
consistent with those provided to similarly situated executives of the Company.

 

4.5       
Employee Benefits. During the Employment Term, the Executive shall be entitled to participate in all employee benefit plans, practices,
and programs maintained by the Company, as in effect from time to time (collectively, “Employee Benefit Plans”), on
a basis which is no less favorable than is provided to other similarly situated executives of the Company, to the extent consistent with
applicable law and the terms of the applicable Employee Benefit Plans. The Company reserves the right to amend or terminate any Employee
Benefit Plans at any time in its sole discretion, subject to the terms of such Employee Benefit Plan and applicable law.

 

4.6       
Vacation; Paid Time Off. During the Employment Term, the Executive shall be entitled to 40 of paid vacation days per calendar
year (prorated for partial years) in accordance with the Company’s vacation policies, as in effect from time to time. The Executive
shall receive other paid time off in accordance with the Company’s policies for executive officers as such policies may exist from
time to time and as required by applicable law.

 

    2

     

    

 

4.7      
Business Expenses. The Executive shall be entitled to reimbursement for all reasonable and necessary out-of-pocket business, entertainment,
and travel expenses incurred by the Executive in connection with the performance of the Executive’s duties hereunder in accordance
with the Company’s expense reimbursement policies and procedures.

 

4.8      
Legal Fees Incurred in Negotiating the Agreement. The Company shall pay or the Executive shall be reimbursed for the Executive’s
reasonable legal fees incurred in negotiating and drafting this Agreement up to a maximum of $10,000, provided that any such payment
shall be made on or before March 15 of the calendar year immediately following the Effective Date.

 

4.9      
Indemnification. The Company shall indemnify and hold the Executive harmless to the maximum extent permitted under applicable
law and the Company’s bylaws for acts and omissions in the Executive’s capacity as an officer, director, or employee of the
Company.

 

4.10      
Clawback Provisions. Any amounts payable under this Agreement are subject to any policy (whether in existence as of the Effective
Date or later adopted) established by the Company providing for clawback or recovery of amounts that were paid to the Executive. The
Company will make any determination for clawback or recovery in its sole discretion and in accordance with any applicable law or regulation.

 

5.      
Termination of Employment. The Employment Term and the Executive’s employment hereunder may be terminated by either the
Company or the Executive at any time and for any reason or for no particular reason; provided that, unless otherwise provided herein,
either party shall be required to give the other party at least 90 days advance written notice of any termination of the Executive’s
employment. Upon termination of the Executive’s employment during the Employment Term, the Executive shall be entitled to the compensation
and benefits described in this Section 5 and shall have no further rights to any compensation or any other benefits from the Company
or any of its affiliates.

 

5.1      
Non-Renewal by the Executive, For Cause, or Without Good Reason.

 

(a)      
The Executive’s employment hereunder may be terminated upon the Executive’s failure to renew the Agreement in accordance
with Section 1, by the Company for Cause, or by the Executive without Good Reason and the Executive shall be entitled to receive:

 

(i)      
any accrued but unpaid Base Salary and accrued but unused paid time off which shall be paid within one (1) week following the date of
the Executive’s termination;

 

(ii)       
reimbursement for unreimbursed business expenses properly incurred by the Executive, which shall be subject to and paid in accordance
with the Company’s expense reimbursement policy; and

 

    3

     

    

 

(iii)       
such employee benefits (including equity compensation), if any, to which the Executive may be entitled under the Company’s employee
benefit plans as of the date of the Executive’s termination; provided that, in no event shall the Executive be entitled to any
payments in the nature of severance or termination payments except as specifically provided herein.

 

Items
5.1(a)(i) through 5.1(a)(iv) are referred to herein collectively as the “Accrued Amounts.”

 

(b)
        For purposes of this Agreement, “Cause” shall mean:

 

(i)       
the Executive’s willful engagement in dishonesty, illegal conduct, or gross misconduct, which is, in each case, materially injurious
to the Company or its affiliates;

 

(ii)       
the Executive’s embezzlement, misappropriation, or fraud, whether or not related to the Executive’s employment with the Company;

 

(iii)       
the Executive’s conviction of or plea of guilty or nolo contendere to a crime that constitutes a felony (or state law equivalent)
or a crime that constitutes a misdemeanor involving moral turpitude; or

 

(iv)       
the Executive’s material breach of any material obligation under this Agreement or any other written agreement between the Executive
and the Company.

 

For
purposes of this provision, none of the Executive’s acts or failures to act shall be considered “willful” unless the
Executive acts, or fails to act, in bad faith or without reasonable belief that the action or failure to act was in the best interests
of the Company. The Executive’s actions, or failures to act, based upon authority given pursuant to a resolution duly adopted by
the Board or upon the advice of counsel for the Company shall be conclusively presumed to be in good faith and in the best interests
of the Company.

 

Except
for a failure, breach, or refusal which, by its nature, cannot reasonably be expected to be cured, the Executive shall have 10 business
days from the delivery of written notice by the Company within which to cure any acts constituting Cause.

 

(c)
        For purposes of this Agreement, “Good Reason” shall mean the occurrence of any
of the following, in each case during the Employment Term without the Executive’s prior written consent:

 

(i)       
any material breach by the Company of any material provision of this Agreement; or

 

(ii)       
the Company’s failure to obtain an agreement from any successor to the Company to assume and agree to perform this Agreement in
the same manner and to the same extent that the Company would be required to perform if no succession had taken place, except where such
assumption occurs by operation of law.

 

    4

     

    

 

To
terminate his employment for Good Reason, the Executive must provide written notice to the Company of the existence of the circumstances
providing grounds for termination for Good Reason within 30 days of the initial existence of such grounds and the Company must have at
least 30 days from the date on which such notice is provided to cure such circumstances. If the Executive does not terminate his employment
for Good Reason within 30 days after the first occurrence of the applicable grounds, then the Executive will be deemed to have waived
his right to terminate for Good Reason with respect to such grounds.

 

5.2      
Non-Renewal by the Company, Without Cause or for Good Reason. The Employment Term and the Executive’s employment hereunder
may be terminated by the Executive for Good Reason or by the Company without Cause or on account of the Company’s failure to renew
the Agreement in accordance with Section 1. In the event of such termination, the Executive shall be entitled to receive the Accrued
Amounts and subject to the Executive’s compliance with Section 6 of this Agreement and the agreements referenced therein and his
execution, within 21 days following receipt, of a release of claims in favor of the Company, its affiliates and their respective officers
and directors in a form provided by the Company (the “Release”) (such 21-day period, the “Release Execution
Period”), and the Release becoming effective according to its terms, the Executive shall be entitled to receive the following:

 

(a)      
equal installment payments payable in accordance with the Company’s normal payroll practices, but no less frequently than monthly,
which are in the aggregate equal to four (4) times the Executive’s Base Salary for the year that includes the date of the Executive’s
termination, which shall begin within 30 days following the date of the Executive’s termination and continue until the 2nd
anniversary of the Executive’s date of termination; provided that, if the Release Execution Period begins in one taxable
year and ends in another taxable year, payments shall not begin until the beginning of the second taxable year; provided further that,
the first installment payment shall include all amounts that would otherwise have been paid to the Executive during the period beginning
on the date of the Executive’s termination and ending on the first payment date if no delay had been imposed; 

 

(b)       
a payment equal to the product of (i) the Target Bonus and (ii) a fraction, the numerator of which is the number of days the Executive
was employed by the Company during the year of termination and the denominator of which is the number of days in such year (the “Pro
Rata Bonus”). This amount shall be paid on the date that annual bonuses are paid to similarly situated executives, but in no
event later than two-and-a-half (2 1/2) months following the end of the calendar year that includes the date of the Executive’s
termination;

 

(c)
         If the Executive timely and properly elects health continuation coverage under the Consolidated
Omnibus Budget Reconciliation Act of 1985 (“COBRA”), the Company shall reimburse the Executive for the monthly COBRA
premium paid by the Executive for himself and his dependents. Such reimbursement shall be paid to the Executive on the first of the month
immediately following the month in which the Executive timely remits the premium payment. The Executive shall be eligible to receive
such reimbursement until the earliest of: (i) the eighteen-month anniversary of the date of the Executive’s termination; (ii) the
date the Executive is no longer eligible to receive COBRA continuation coverage; and (iii) the date on which the Executive receives substantially
similar coverage from another employer or other source. Notwithstanding the foregoing, if the Company’s making payments under this
Section 5.2(c) would violate the nondiscrimination rules applicable to non-grandfathered, insured group health plans under the Affordable
Care Act (the “ACA”), or result in the imposition of penalties under the ACA and the related regulations and guidance
promulgated thereunder, the parties agree to reform this Section 5.2(c) in a manner as is necessary to comply with the ACA.

 

    5

     

    

 

(d)       
The treatment of any outstanding equity awards shall be determined in accordance with the terms of the 2019 Stock Incentive Plan and
2021 Stock Incentive Plan and the applicable award agreements.

 

5.3      
Death or Disability.

 

(a)      
The Executive’s employment hereunder shall terminate automatically upon the Executive’s death during the Employment Term,
and the Company may terminate the Executive’s employment on account of the Executive’s Disability.

 

(b)       
If the Executive’s employment is terminated during the Employment Term on account of the Executive’s death or Disability,
the Executive (or the Executive’s estate and/or beneficiaries, as the case may be) shall be entitled to receive the following:

 

(i)      
the Accrued Amounts; and

 

(ii)       
a lump sum payment equal to the Pro-Rata Bonus, which shall be payable on the date that annual bonuses are paid to the Company’s
similarly situated executives, but in no event later than two-and-a-half (2 1/2) months following the end of the calendar year that includes
the date of the Executive’s termination.

 

Notwithstanding
any other provision contained herein, all payments made in connection with the Executive’s Disability shall be provided in a manner
which is consistent with federal and state law.

 

(c)       
For purposes of this Agreement, “Disability” shall mean the Executive is entitled to receive long-term disability
benefits under the Company’s long-term disability plan. Any question as to the existence of the Executive’s Disability as
to which the Executive and the Company cannot agree shall be determined in writing by a qualified independent physician mutually acceptable
to the Executive and the Company. The determination of Disability made in writing to the Company and the Executive shall be final and
conclusive for all purposes of this Agreement.

 

    6

     

    

 

5.4      
Notice of Termination. Any termination of the Executive’s employment hereunder by the Company or by the Executive during
the Employment Term (other than termination pursuant to Section 5.3(a) on account of the Executive’s death) shall be communicated
by written notice of termination (“Notice of Termination”) to the other party hereto in accordance with Section 15.
The Notice of Termination shall specify:

 

(a)
        the termination provision of this Agreement relied upon;

 

(b)      
to the extent applicable, the facts and circumstances claimed to provide a basis for termination of the Executive’s employment
under the provision so indicated; and

 

(c)      
the applicable date of termination, which shall be no less than 30 days following the date on which the Notice of Termination is delivered
if the Company terminates the Executive’s employment without Cause, or no less than 90 days following the date on which the Notice
of Termination is delivered if the Executive terminates his employment with or without Good Reason.

 

5.5      
Resignation of All Other Positions. Upon termination of the Executive’s employment hereunder for any reason, the Executive
shall be deemed to have resigned from all positions that the Executive holds as an officer or member of the Board (or a committee thereof)
of the Company or any of its affiliates.

 

6.      
Confidential Information and Restrictive Covenants. As a condition of the Executive’s employment with the Company, the Executive
shall enter into and abide by the Company’s Employee Non-Compete Agreement.

 

7.      
Governing Law, Jurisdiction, and Venue. This Agreement, for all purposes, shall be construed in accordance with the laws of Nevada
without regard to conflicts of law principles. Any action or proceeding by either of the parties to enforce this Agreement shall be brought
only in a state or federal court located in the state of Nevada, county of Washoe. The parties hereby irrevocably submit to the exclusive
jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any such action or proceeding in such venue.

 

8.      
Entire Agreement. Unless specifically provided herein, this Agreement, together with the Employee Non-Compete Agreement, contains
all of the understandings and representations between the Executive and the Company pertaining to the subject matter hereof and supersedes
all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such
subject matter.

 

9.      
Modification and Waiver. No provision of this Agreement may be amended or modified unless such amendment or modification is agreed
to in writing and signed by the Executive and by the Compensation Committee of the Board of Directors of the Company. No waiver by either
of the parties of any breach by the other party hereto of any condition or provision of this Agreement to be performed by the other party
hereto shall be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time.

 

    7

     

    

 

10.      
Severability. Should any provisions of this Agreement be held to be invalid, illegal, or unenforceable in any respect, such invalidity,
illegality, or unenforceability shall not affect any other provisions hereof, and if such provision or provisions are not modified as
provided above, this Agreement shall be construed as if such invalid, illegal, or unenforceable provisions had not been set forth herein.

 

11.      
Captions. Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience and no provision
of this Agreement is to be construed by reference to the caption or heading of any section or paragraph.

 

12.      
Counterparts. This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of which
taken together shall constitute one and the same instrument.

 

13.      
 Section 409A.

 

13.1      
General Compliance. This Agreement is intended to comply with Section 409A or an exemption thereunder and shall be construed and
administered in accordance with such intent. Notwithstanding any other provision of this Agreement, payments provided under this Agreement
may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any nonqualified deferred
compensation payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation
from service or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section
409A, each installment payment provided under this Agreement shall be treated as a separate payment. Any payments to be made under this
Agreement upon a termination of employment shall only be made upon a “separation from service” under Section 409A. Notwithstanding
the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section
409A, and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest, or other expenses that may
be incurred by the Executive on account of non-compliance with Section 409A.

 

13.2      
Specified Employees. Notwithstanding any other provision of this Agreement, if any payment or benefit provided to the Executive
in connection with his termination of employment is determined to constitute “nonqualified deferred compensation” within
the meaning of Section 409A and the Executive is determined to be a “specified employee” as defined in Section 409A(a)(2)(b)(i),
then such payment or benefit shall not be paid until the first payroll date to occur following the six-month anniversary of the date
of the Executive’s termination or, if earlier, on the Executive’s death (the “Specified Employee Payment Date”).
The aggregate of any payments that would otherwise have been paid before the Specified Employee Payment Date shall be paid to the Executive
in a lump sum on the Specified Employee Payment Date and thereafter, any remaining payments shall be paid without delay in accordance
with their original schedule.

 

    8

     

    

 

13.3      
Reimbursements. To the extent required by Section 409A, each reimbursement or in-kind benefit provided under this Agreement shall
be provided in accordance with the following:

 

(a)      
the amount of expenses eligible for reimbursement, or in-kind benefits provided, during each calendar year cannot affect the expenses
eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year;

 

(b)      
any reimbursement of an eligible expense shall be paid to the Executive on or before the last day of the calendar year following the
calendar year in which the expense was incurred; and

 

(c)      
any right to reimbursements or in-kind benefits under this Agreement shall not be subject to liquidation or exchange for another benefit.

 

14.      
Successors and Assigns. This Agreement is personal to the Executive and shall not be assigned by the Executive. Any purported
assignment by the Executive shall be null and void from the initial date of the purported assignment. The Company may assign this Agreement
to any successor or assign (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all
of the business or assets of the Company. This Agreement shall inure to the benefit of the Company and permitted successors and assigns.

 

15.      
Notice. Notices and all other communications provided for in this Agreement shall be given in writing by personal delivery, electronic
delivery, or by registered mail to the parties at the addresses set forth below (or such other addresses as specified by the parties
by like notice):

 

If
to the Company:

 

Dragonfly
Energy Corp.

1190
Trademark Drive, #108

Reno,
NV 89521

Attn:
General Counsel

 

If
to the Executive:

 

Denis
Phares

14245
Powder River Court

Reno,
NV 89511

 

16.      
Representations of the Executive. The Executive represents and warrants to the Company that:

 

The
Executive’s acceptance of employment with the Company and the performance of his duties hereunder will not conflict with or result
in a violation of, a breach of, or a default under any contract, agreement, or understanding to which he is a party or is otherwise bound.

 

    9

     

    

 

The
Executive’s acceptance of employment with the Company and the performance of his duties hereunder will not violate any non-solicitation,
non-competition, or other similar covenant or agreement of a prior employer or third-party.

 

17.      
Withholding. The Company shall have the right to withhold from any amount payable hereunder any Federal, state, and local taxes
in order for the Company to satisfy any withholding tax obligation it may have under any applicable law or regulation.

 

18.      
Survival. Upon the expiration or other termination of this Agreement, the respective rights and obligations of the parties hereto
shall survive such expiration or other termination to the extent necessary to carry out the intentions of the parties under this Agreement.

 

19.      
Acknowledgement of Full Understanding. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY
ENTERS INTO THIS AGREEMENT. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN
ATTORNEY OF HIS CHOICE BEFORE SIGNING THIS AGREEMENT.

 

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

 

	 	DRAGONFLY
    ENERGY CORP.
	 	 
	 	/s/
    Luisa Ingargiola
	 	Luisa
    Ingargiola
	 	Compensation
    Committee Chair
	 	 
	 	EXECUTIVE
	 	 
	 	Signature:	/s/
    Denis Phares
	 	Print Name: 	Denis Phares

 

    10

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