# EDGAR Filing Document

**Accession Number:** 0001822928
**File Stem:** 0001628280-25-040371
**Filing Date:** 2025-8
**Character Count:** 69179
**Document Hash:** 92bc2ec8aec67ed0affa11c0e40455b7
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-25-040371.hdr.sgml**: 20250814

**ACCESSION NUMBER**: 0001628280-25-040371

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 19

**CONFORMED PERIOD OF REPORT**: 20250812

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250814

**DATE AS OF CHANGE**: 20250814

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Holley Inc.
- **CENTRAL INDEX KEY:** 0001822928
- **STANDARD INDUSTRIAL CLASSIFICATION:** MOTOR VEHICLE PARTS & ACCESSORIES [3714]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39599
- **FILM NUMBER:** 251218670

**BUSINESS ADDRESS:**
- **STREET 1:** 2445 NASHVILLE ROAD
- **STREET 2:** SUITE B1
- **CITY:** BOWLING GREEN
- **STATE:** KY
- **ZIP:** 42101
- **BUSINESS PHONE:** 2124971400

**MAIL ADDRESS:**
- **STREET 1:** 2445 NASHVILLE ROAD
- **STREET 2:** SUITE B1
- **CITY:** BOWLING GREEN
- **STATE:** KY
- **ZIP:** 42101

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Empower Ltd.
- **DATE OF NAME CHANGE:** 20200828

?xml version='1.0' encoding='ASCII'? hlly-20250812

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(d)**

**OF THE SECURITIES EXCHANGE ACT OF 1934**

**Date of Report (Date of earliest event reported): August 12, 2025**

**HOLLEY INC.**

**(Exact name of registrant as specified in its charter)**

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-39599** | **87-1727560** |
| **(State or other jurisdiction<br>of incorporation)** | **(Commission<br>File Number)** | **(IRS Employer<br>Identification No.)** |

---

---

| | |
|:---|:---|
| **2445 Nashville Road, Suite B1, Bowling Green, KY** | **42101** |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**(270) 782-2900**

**(Registrant's telephone number, including area code)**

**(Former name or former address, if changed since last report)**

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

□ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

□ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

□ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

□ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading<br>Symbol(s)** | **Name of each exchange<br>on which registered** |
| **Common stock, par value $0.0001 per share** | **HLLY** | **New York Stock Exchange** |
| **Warrants, each exercisable for one share of common stock at an exercise price of $11.50 per share** | **HLLY WS** | **New York Stock Exchange** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ⌧

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

------

**Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.**

*One-Time Grant of Equity Awards*

 *&nbsp;&nbsp;&nbsp;&nbsp;*On August 12, 2025 (the "Grant Date"), the Compensation and Talent Committee (the "Committee") of the Board of Directors of Holley Inc. (the "Company") approved one-time grants of restricted stock units ("RSUs") to each of Matthew Stevenson, President and Chief Executive Officer of the Company, Jesse Weaver, Chief Financial Officer of the Company, and Carly Kennedy, Executive Vice President, General Counsel and Corporate Secretary of the Company (each, an "Officer" and collectively, the "Officers"), pursuant to the Company's 2021 Omnibus Incentive Plan (the "Plan") and the applicable RSU grant agreements, each dated as of the Grant Date. Also on the Grant Date, the Committee approved a one-time grant of performance stock units ("PSUs") to Mr. Stevenson pursuant to the Plan and the PSU grant agreement (the "PSU Grant Agreement"), dated as of the Grant Date. On the Grant Date, Mr. Stevenson was granted 433,034 RSUs and 433,034 PSUs, Mr. Weaver was granted 247,448 RSUs and Ms. Kennedy was granted 123,724 RSUs.

The RSUs will vest in three equal installments, with one-third (1/3) vesting on each of the first, second and third anniversaries of the Grant Date, subject to the Officer's continued employment through each vesting date. In addition, in the event of a Change in Control (as such term is defined in the Plan (as may be amended, restated or otherwise modified from time to time)), all unvested RSUs will immediately vest and will be cancelled in exchange for a payment or distribution to the Officer based on the per-share consideration paid for the Company's common stock in connection with such Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;The PSUs will vest based on the achievement of a specified Company Stock Price Target (as defined in the PSU Grant Agreement) of $4.00 during the Performance Period (as such term is defined in the PSU Grant Agreement). The tranche of PSUs will vest if the applicable Company Stock Price Target is attained on each trading day for a period of twenty (20) consecutive trading days during the Performance Period, subject to continued employment through the vesting date. Additionally, upon a Change in Control during the Performance Period, all PSUs that have not previously been forfeited will immediately vest if, and to the extent that, the applicable Company Stock Price Target for the tranche has been attained or exceeded as of the date of such Change in Control.

*Change in Control Severance Letter Agreements*

On August 12, 2025, the Company entered into Change in Control Severance Letter Agreements with Mr. Weaver and Ms. Kennedy, effective as of August 12, 2025 (each, an "Agreement" and collectively, the "Agreements").

&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the terms of the Agreements, in the event that the Officer incurs a termination of employment that would entitle him or her to continued payment of base salary as severance pursuant to the terms of his or her existing employment agreement during the Change in Control Period, and subject to satisfaction of all requirements pursuant to the employment agreement to receive such continued payments of base salary, the period for which the Officer is entitled to receive continued payments of base salary shall be increased from six (6) months to twelve (12) months. The "Change in Control Period" means the three (3) month period prior to or the twelve (12) month period following a Change in Control.

The foregoing description of the Agreements do not purport to be complete and is qualified in its entirety by reference to the complete text of the Agreements attached as Exhibit 10.1 and Exhibit 10.2 to this Current Report on Form 8-K, which are incorporated herein by reference.

------

**Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.**

**(d) Exhibits**

---

| | |
|:---|:---|
| **Exhibit<br>No.** | **Description** |
| <u>[10.1](exhibit101holley_changeinc.htm)</u> | Change in Control Severance Letter Agreement, effective August 12, 2025, by and between the Company and Jesse Weaver. |
| <u>[10.2](exhibit102holley_changeinc.htm)</u> | Change in Control Severance Letter Agreement, effective August 12, 2025, by and between the Company and Carly Kennedy. |
| <u>[10.3](exhibit103holleyformofrsug.htm)</u> | Form of RSU Grant Agreement |
| <u>[10.4](exhibit104holleyformofpsug.htm)</u> | Form of PSU Grant Agreement |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL). |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **HOLLEY INC.** | **HOLLEY INC.** |
| | By: | /s/ Jesse Weaver |
| | | Name: Jesse Weaver |
| Date: August 14, 2025 |  | Title: Chief Financial Officer |

---

## Exhibit 10.1

![image_1a.jpg](image_1a.jpg)

August 12, 2025

Deliver via email:

Dear Jesse,

&nbsp;&nbsp;&nbsp;&nbsp;You are receiving this letter to amend your current employment agreement ("**Employment Agreement**") with Holley, Inc. ("**Company**") to provide for enhanced severance in the event that you incur a termination of employment that would otherwise entitle you to severance pursuant to your Employment Agreement during the Change in Control Period (as defined below).

Pursuant to the terms of this letter, in the event that you incur a termination of employment that would entitle you to continued payment of base salary as severance pursuant to the terms of your existing Employment Agreement during the Change in Control Period, and subject to your satisfaction of all requirements pursuant to the Employment Agreement to receive such continued payments of base salary, the period for which you are entitled to receive continued payments of base salary shall be increased to twelve (12) months.

For purposes of this letter agreement, "**Change in Control Period**" means the three (3) month period prior to or the twelve (12) month period following a Change in Control (as such term is defined in the Holley, Inc. 2021 Omnibus Incentive Plan (as may be amended, restated or otherwise modified from time to time)).

Except as otherwise provided in this letter, the terms of your employment shall remain the same as currently in effect, and the terms of the Employment Agreement shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;Please return a signed copy of this agreement to Patrick Pierce no later than August 29, 2025.

Sincerely,

COMPANY

By: __<u>/s/ Mathew Stevenson_</u>______________

Matthew Stevenson, President and Chief Executive Officer

ACCEPTED:

<u>_/s/ Jesse Weaver</u>________________________ _<u>8/12/2025</u>__

Jesse Weaver&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date

## Exhibit 10.2

![image_11a.jpg](image_11a.jpg)

August 12, 2025

Deliver via email:

Dear Carly,

&nbsp;&nbsp;&nbsp;&nbsp;You are receiving this letter to amend your current employment agreement ("**Employment Agreement**") with Holley, Inc. ("**Company**") to provide for enhanced severance in the event that you incur a termination of employment that would otherwise entitle you to severance pursuant to your Employment Agreement during the Change in Control Period (as defined below).

Pursuant to the terms of this letter, in the event that you incur a termination of employment that would entitle you to continued payment of base salary as severance pursuant to the terms of your existing Employment Agreement during the Change in Control Period, and subject to your satisfaction of all requirements pursuant to the Employment Agreement to receive such continued payments of base salary, the period for which you are entitled to receive continued payments of base salary shall be increased to twelve (12) months.

For purposes of this letter agreement, "**Change in Control Period**" means the three (3) month period prior to or the twelve (12) month period following a Change in Control (as such term is defined in the Holley, Inc. 2021 Omnibus Incentive Plan (as may be amended, restated or otherwise modified from time to time)).

Except as otherwise provided in this letter, the terms of your employment shall remain the same as currently in effect, and the terms of the Employment Agreement shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;Please return a signed copy of this agreement to Patrick Pierce no later than August 29, 2025.

Sincerely,

COMPANY

By: __<u>/s/ Matthew Stevenson</u>__________________________

Matthew Stevenson, President and Chief Executive Officer

ACCEPTED:

_<u>/s/ Carly Kennedy</u>____________________________ &nbsp;&nbsp;&nbsp;&nbsp;_<u>8/12/2025</u>__

Carly Kennedy&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date

## Exhibit 10.3

**RESTRICTED STOCK UNIT GRANT NOTICE AND AGREEMENT**

Holley Inc. (the "***Company***"), pursuant to its 2021 Omnibus Incentive Plan (as may be amended, restated or otherwise modified from time to time, the "***Plan***"), hereby grants to Holder the number of the number of Restricted Stock Units set forth below, each Restricted Stock Unit being a notional unit representing the right to receive one share of Stock, subject to adjustment as provided in the Plan (the "***Restricted Stock Units***"). The Restricted Stock Units are subject to all of the terms and conditions set forth in this Restricted Stock Unit Grant Notice and Agreement (this "***Award Agreement***"), as well as all of the terms and conditions of the Plan, all of which are incorporated herein in their entirety. To the extent that any provisions herein (or portion thereof) conflicts with any provision of the Plan, the Plan shall prevail and control. Capitalized terms not otherwise defined herein shall have the same meaning as set forth in the Plan.

**Holder**:&nbsp;&nbsp;&nbsp;&nbsp;

**Date of Grant:&nbsp;&nbsp;&nbsp;&nbsp;**

**Vesting Commencement Date:&nbsp;&nbsp;&nbsp;&nbsp;**

**Number of Restricted Stock Units**:&nbsp;&nbsp;&nbsp;&nbsp;

**Vesting Schedule**:&nbsp;&nbsp;&nbsp;&nbsp;One-third (1/3) of the Restricted Stock Units shall become vested on each of the first, second and third anniversaries of the Date of Grant (each such date a "***Vesting Date***" and [●] referred to as the "***Final Vesting Date***"). Notwithstanding the foregoing, vesting shall terminate upon the Holder's termination of employment or service, and any Restricted Stock Units that have not yet vested prior to the termination of employment or service shall be immediately forfeited on the date of termination of employment or service that occurs on or before the Final Vesting Date.

**Settlement:&nbsp;&nbsp;&nbsp;&nbsp;**Upon vesting of a Restricted Stock Unit, the Company shall settle

each Restricted Stock Unit by delivering to Holder one share of Stock for each Restricted Stock Unit that vested as soon as practicable (but not more than thirty (30) days) following each vesting date (the "***Original Issuance Date***"). The shares of Stock issued in respect of the Restricted Stock Units may be evidenced in such manner as the Committee shall determine. Notwithstanding the foregoing, if the Original Issuance Date does not occur (i) during an "open window period" applicable to Holder, (ii) on a date when Holder is permitted to sell shares of Stock pursuant to a written plan that meets the requirements of Rule 10b5-1 under the Exchange Act, as determined by the Company in accordance with the Company's then-effective policy on trading in Company securities (the "***Policy***"), or (iii) on a date when Holder is

- 1 -

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otherwise permitted to sell shares of Stock on an established stock exchange or stock market, then such shares will not be delivered on such Original Issuance Date and will instead be delivered on the first business day of the next occurring "open window" period applicable to Holder pursuant to such Policy (regardless of whether Holder has experienced a Termination at such time) or the next business day when Holder is not prohibited from selling shares of Stock on the open market, but in no event later than the later of (x) December 31<sup>st</sup> of the calendar year in which the Original Issuance Date occurs (that is, the last day of Holder's taxable year in which the Original Issuance Date occurs), or (y) to the extent permitted by Treasury Regulations Section 1.409A-1(b)(4) without penalty, the fifteenth (15<sup>th</sup>) day of the third calendar month of the calendar year following the calendar year in which the Original Issuance Date occurs.

**Termination**:&nbsp;&nbsp;&nbsp;&nbsp;Section 7(d) of the Plan regarding treatment of Restricted Stock

Units upon Termination is incorporated herein by reference and made a part hereof. In the event of Holder's Termination for any reason, all unvested Restricted Stock Units shall be cancelled and forfeited as of the date of such Termination for no consideration.

**General Unsecured**

**Creditor**:&nbsp;&nbsp;&nbsp;&nbsp;Holder shall have only the rights of a general unsecured creditor of the Company until shares of Stock are issued in respect of the Restricted Stock Units.

**Transfer Restrictions**: Holder shall not be permitted to sell, transfer, pledge, or otherwise

encumber the Restricted Stock Units before they vest and are settled, and any attempt to sell, transfer, pledge, or otherwise encumber the Restricted Stock Units in violation of the foregoing shall be null and void.

**Change in Control**: &nbsp;&nbsp;&nbsp;&nbsp;In the event of a Change in Control, pursuant to Section 10(b) of the Plan, this Award Agreement is not eligible for assumption or substitution in connection with such Corporate Event. Pursuant to Section 10(b)(3) of the Plan, in the event of a Change in Control, the RSUs that have not previously been forfeited shall become fully vested, this Award Agreement shall be cancelled, and a payment(s) shall be made to the Holder in an amount in respect of the cancellation equal to an amount based upon the per-share consideration being paid for the Stock in connection with such Corporate Event. Payment made to Holders pursuant to such cancellation shall be made at the same time and in the same form as such Holder would have been entitled to receive upon the occurrence of the transaction if the Holder had been, immediately prior to such

- 2 -

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transaction, the Holder of a number of shares of Stock equal to the number of RSUs covered by the Award at such time.

**No Rights as a Stockholder**: Neither the Restricted Stock Units nor this Award Agreement shall

entitle Holder to any voting rights or other rights as a stockholder of the Company unless and until the shares of Stock in respect of the Restricted Stock Units have been issued in settlement thereof. Without limiting the generality of the foregoing, no dividends (whether in cash or shares of Stock) or dividend equivalents shall accrue or be paid with respect to any Restricted Stock Units.

**Restrictive Covenants**: ***Confidential Information***. Holder acknowledges and agrees that

the information, observations and data obtained by Holder while employed by the Company or its Affiliates (or by the Person(s) which operated the Company's business prior to the acquisition thereof by the Company and its Affiliates, if applicable) concerning the business or affairs of the Company or any of its Affiliates ("***Confidential Information***") shall be the property of the Company or such Affiliate. Therefore, Holder agrees that Holder shall not disclose to any unauthorized Person or use for Holder's own purposes any Confidential Information without the prior written consent of the Committee, unless and to the extent that (i) such information becomes generally known to and available for use by the public other than as a result of Holder's acts or omissions, or (ii) such information is required to be disclosed by law, court order or other legal process; <u>provided</u>, in the case of clause (ii) above, that Holder shall provide the Company with prior notice of the contemplated disclosure of such Confidential Information and cooperate with the Company, at the Company's expense, in seeking a protective order or other appropriate protection of such Confidential Information; <u>provided</u>, <u>further</u>, in the case of clause (ii) above, that Holder shall only disclose such Confidential Information that is explicitly required by applicable law, court order or other legal process, as determined by legal counsel, at the Company's expense. Holder shall deliver to the Company on the date of any Termination, or at any other time the Company may request, all memoranda, notes, plans, records, reports, computer tapes, printouts and software and other documents and data (and copies thereof) relating to the Confidential Information, Work Product (as defined below) or the business of the Company or any Affiliate which Holder may then possess or have under Holder's control.

Nothing in this Award Agreement is intended to conflict with the whistleblower provisions of any United States federal, state or

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local law or regulation, including but not limited to Rule 21F-17 of the Exchange Act or U.S. Defend Trade Secrets Act of 2016, 18

U.S.C. § 1833(b) (the "***Act***"). Accordingly, notwithstanding anything to the contrary herein, nothing in this Award Agreement shall prohibit the Holder from (A) filing a charge or complaint with, participating in an investigation or proceeding conducted by, or reporting possible violations of law or regulation to any federal, state or local government agency, (B) truthfully responding to or complying with a subpoena, court order, or other legal process, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) exercising any rights Holder may have under applicable labor laws to engage in concerted activity with other employees.

Under the Act, persons who disclose trade secrets in connection with lawsuits or other proceedings under seal (including lawsuits alleging retaliation), or in confidence to a federal, state or local government official, or attorney, solely for the purpose of reporting or investigating a suspected violation of law, enjoy immunity from civil and criminal liability under state and federal trade secrets laws for such disclosure. Holder acknowledges that Holder has hereby received adequate notice of this immunity, such that the Company and its Affiliates are entitled to all remedies available for violations of the Act, including exemplary damages and attorney fees. Nothing in this Award Agreement is intended to conflict with the Act or create liability for disclosures of trade secrets that are expressly allowed by the Act.

***Inventions, Etc***. Holder agrees that all inventions, innovations, improvements, developments, methods, techniques, processes, algorithms, data, databases, designs, analyses, drawings, reports, and all similar or related information, all software, copyrights, and other works of authorship, all other intellectual property or proprietary rights (including any patents, registrations or similar rights that may issue from the foregoing), and all tangible embodiments of any of the foregoing (in any form or medium, whether now known or hereafter existing), which relate to the Company's or any of its Affiliates' actual or anticipated business, research and development or existing or future products or services and which are conceived, developed, contributed to or made by Holder while employed by the Company or its Affiliates (or by the Person(s) which operated the Company's business prior to the acquisition thereof by the Company and its subsidiaries, if applicable) (collectively, "***Work Product***"), belong to and are the property of the Company or such Affiliate, as applicable, and Holder hereby assigns to the Company or such Affiliate, as applicable, any right, title and interest Holder may have in and to the Work Product, free and clear of any claims for compensation or

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restrictions on the use or ownership thereof. Holder will promptly disclose such Work Product to the Committee and perform all actions reasonably requested by the Committee (whether before or after the Holder's Termination) to establish, record, perfect and otherwise confirm such ownership, and protect, maintain and enforce the Company's and the Affiliate's rights in such Work Product (including, without limitation, by executing assignments, consents, powers of attorney, and other instruments and providing affidavits and testifying in any proceeding).

***Non-Compete, Non-Solicitation***. Holder acknowledges that during Holder's employment with the Company, Holder has and will become familiar with the Company's trade secrets and with other Confidential Information concerning the Company and its Affiliates and that Holder's services will be of special, unique and extraordinary value to the Company and its Affiliates. Therefore, and in further consideration of the Restricted Stock Units to be granted to Holder hereunder, Holder agrees to the covenants set forth in this section and acknowledges that (i) the covenants set forth herein are reasonably limited in time and in all other respects,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)the covenants set forth herein are reasonably necessary for the protection of the Company, and (iii) the covenants set forth herein have been made in order to induce the Company to enter into this Award Agreement and the Company would not have entered into this Award Agreement but for Holder's agreement to such covenants.

Holder agrees that, during the period commencing on the date hereof and ending on the two year anniversary of Holder's Termination (the "***Restricted Period***"), Holder shall not directly or indirectly own any interest in, manage, control, engage in, participate in, consult with, contribute to or render services for (as an officer, director, employee or in any other regard), any Person that is in any business which competes with any business that the Company and/or its Affiliates conducts or has specific plans to conduct at the time of Holder's Termination anywhere in the world; <u>provided</u> that, nothing herein shall prohibit Holder from being a passive owner of less than 2% of the outstanding stock of any class of a corporation which is publicly traded, so long as Holder has no active participation in the business of such corporation.

During the Restricted Period, Holder shall not directly, or indirectly through another entity, (i) solicit or induce or attempt to solicit or induce any employee of the Company or any Affiliate to leave the employ of the Company or such Affiliate, or in any way

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interfere with the relationship between the Company or any Affiliate and any employee thereof, (ii) hire any person who was an employee of the Company or any Affiliate at any time from 6 months prior to the date hereof through the Holder's Termination, make any statement or do any act intended to cause existing or potential customers of the Company or any Affiliate to make use of the services or purchase the products of any competitive business or (iv) induce or attempt to induce any customer, supplier, licensee, licensor, franchisee or other business relation of the Company or any Affiliate to cease doing business with, or materially and adversely change the terms of its business with, the Company or such Affiliate, or in any way interfere with the relationship between any such customer, supplier, licensee, licensor, franchisee or business relation and the Company or any Affiliate.

If the Committee determines in good faith that Holder has breached or threatened to breach any of the covenants contained herein, or any restrictive covenant contained in an employment agreement or other agreement between Holder and any of the Company or any of its Affiliates, to the extent permitted by applicable law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)any unvested or vested but unsettled Restricted Stock Units shall be immediately forfeited effective as of the date of such breach, unless sooner terminated by operation of another term or condition of this Award Agreement or the Plan, and Holder shall deliver to the Company (or take all steps necessary to effectuate the delivery of), no later than five (5) days following such determination, any shares of Stock issued upon the settlement of Holder's Restricted Stock Units and any proceeds resulting from the sale or other disposition (including to the Company) of shares of Stock issued upon settlement of Holder's Restricted Stock Units; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Holder hereby consents and agrees that the Company shall be entitled to seek, in addition to other available remedies, a temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages or other available forms of

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relief. Each of the Company's Affiliates not party to this Award Agreement is intended to be third-party beneficiaries of the provisions of the restrictive covenants set forth herein, and such provisions may be enforced by each of them in accordance with the terms hereof in respect of the rights granted to each such entity hereunder.

It is expressly understood and agreed that, if a final judicial determination is made by a court having jurisdiction (without regard to any ability to appeal or whether an appeal is in fact taken, during the pendency of that appeal) that the time or territory restrictions or any other provision herein related to the restrictive covenants is an unreasonable or otherwise unenforceable restriction against Holder, the provisions herein related to the restrictive covenants shall not be rendered void, but shall be deemed amended to apply as to such maximum time and territory and to such other extent as such court may judicially determine or indicate to be reasonable.

Holder acknowledges and agrees that the provisions herein related to the restrictive covenants shall continue to apply following Holder's Termination, regardless of the reason for such Termination.

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**Clawback Policy; Share Ownership**

**Guidelines:&nbsp;&nbsp;&nbsp;&nbsp;**The Restricted Stock Units (and any compensation paid or shares

issued in respect of the Restricted Stock Units) are subject to

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)any share ownership guidelines to which the Holder may be subject, and (ii) recoupment in accordance with the Company's clawback policy, if applicable, The Dodd-Frank Wall Street Reform and Consumer Protection Act and any implementing regulations thereunder, any other clawback policy adopted by the Company and any compensation recovery policy otherwise required by applicable law.

**Additional Terms:&nbsp;&nbsp;&nbsp;&nbsp;**The Restricted Stock Units shall be subject to the following

additional terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any certificates representing the shares of Stock delivered to Holder shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which such shares are listed, and any applicable federal or state laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions as the Committee deems appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Holder shall be the record owner of the shares of Stock issued in respect of the Restricted Stock Units until or unless such shares of Stock are repurchased or otherwise sold or transferred in accordance with the terms of the Plan, and as record owner shall generally be entitled to all rights of a stockholder with respect to the shares of Stock issued in respect of the Restricted Stock Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Upon issuance of shares of Stock in respect of the Restricted Stock Units, Holder shall be required to satisfy applicable withholding tax obligations, if any, as provided in Section 16 of the Plan. In addition, the Company or any Affiliate may, in its sole discretion, satisfy all or any portion of the withholding tax obligation relating to the Restricted Stock Units by any of the following means or by a combination of such means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)withholding from any compensation otherwise payable to Holder by the Company or any Affiliate; (ii) causing Holder to tender a cash payment; (iii) permitting or requiring Holder to enter into a "same day sale" commitment, whereby the

- 8 -

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withholding taxes may be satisfied with a portion of the shares of Stock to be delivered in connection with the Restricted Stock Units by delivery of an irrevocable direction to a securities broker (on a form prescribed by the Committee) to sell a portion of the shares of Stock and to deliver all or part of the sale proceeds to the Company and/or its Affiliates in payment of the amount necessary to satisfy the withholding tax obligation; (iv) withholding shares of Stock from the shares of Stock issued or otherwise issuable to Holder in connection with the Restricted Stock Units with a Fair Market Value equal to the amount of such withholding taxes; provided, that to the extent necessary to qualify for an exemption from application of Section 16(b) of the Exchange Act, if applicable, such share withholding procedure will be subject to the express prior approval of the Committee; or (v) such other arrangements as are satisfactory to the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• This Award Agreement does not confer upon Holder any right to continue as an employee or service provider of the Service Recipient or any other member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• This Award Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware, without regard to the principles of conflicts of law thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Holder understands that the Restricted Stock Units are intended to be exempt from Section 409A of the Code as a "short term deferral" to the greatest extent possible and the Restricted Stock Units will be administered and interpreted in accordance with such intent. In no event whatsoever shall the Company or any of its Affiliates be liable for any additional tax, interest or penalties that may be imposed on Holder as a result of Section 409A of the Code or any damages for failing to comply with Section 409A of the Code (other than for withholding obligations or other obligations applicable to employers, if any, under Section 409A of the Code).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Holder agrees that the Company may deliver by email all documents relating to the Plan or the Restricted Stock Units (including, without limitation, a copy of the Plan) and all other documents that the Company is required to deliver to its security holders (including, without limitation, disclosures that may be required by the Securities and Exchange Commission). Holder also agrees that the Company may deliver these documents by posting them on a website maintained by the

- 9 -

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Company or by a third party under contract with the Company. If the Company posts these documents on a website, it shall

- 10 -

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notify Holder by email or such other reasonable manner as then determined by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• This Award Agreement and the Plan constitute the entire understanding and agreement of the parties hereto and supersede all prior negotiations, discussions, correspondence, communications, understandings, and agreements (whether oral or written and whether express or implied) between the Company and Holder relating to the subject matter of this Award Agreement. Without limiting the foregoing, to the extent Holder has entered into an employment or similar agreement with the Company or any of its Affiliates, and the terms noted in such employment or similar agreement are inconsistent with or conflict with this Award Agreement, then the terms of this Award Agreement will supersede and be deemed to amend and modify the inconsistent or conflicting terms set forth in such employment or similar agreement.

**\*&nbsp;&nbsp;&nbsp;&nbsp;\*&nbsp;&nbsp;&nbsp;&nbsp;\***

**THE UNDERSIGNED HOLDER ACKNOWLEDGES RECEIPT OF THIS AWARD AGREEMENT AND THE PLAN, AND, AS AN EXPRESS CONDITION TO THE GRANT OF RESTRICTED STOCK UNITS UNDER THIS AWARD AGREEMENT, AGREES TO BE BOUND BY THE TERMS OF BOTH THIS AWARD AGREEMENT AND THE PLAN.**

**HOLLEY INC.** 

**By: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Carly Kennedy** 

**Title: &nbsp;&nbsp;&nbsp;&nbsp;Executive Vice President and General Counsel**

**HOLDER** 

**Print Name: &nbsp;&nbsp;&nbsp;&nbsp;** 

**Signature: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**

- 11 -

## Exhibit 10.4

**PERFORMANCE STOCK UNIT GRANT NOTICE AND AGREEMENT** 

Holley Inc. (the "***Company***"), pursuant to its 2021 Omnibus Incentive Plan (as may be amended, restated or otherwise modified from time to time, the "***Plan***"), hereby grants to Holder the number of performance-vesting Restricted Stock Units set forth below, each performance-vesting Restricted Stock Unit being a notional unit representing the right to receive one share of Stock, subject to adjustment as provided in the Plan (the "***Performance Stock Units***"). The Performance Stock Units are subject to all of the terms and conditions set forth in this Performance Stock Unit Grant Notice and Agreement (this "***Award Agreement***"), as well as all of the terms and conditions of the Plan, all of which are incorporated herein in their entirety. To the extent that any provisions herein (or portion thereof) conflicts with any provision of the Plan, the Plan shall prevail and control. Capitalized terms not otherwise defined herein shall have the same meaning as set forth in the Plan.

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| | |
|:---|:---|
| **Holder**: | |
| **Date of Grant**: | |
| **Target Number of Performance Stock Units**: | [●] |
| **Vesting Schedule:** | The Performance Stock Units will be one hundred percent (100%) unvested as of the Date of Grant. Subject to the Holder's continued Service Relationship (as defined below) with the Company through the Vesting Date (as defined on <u>Exhibit A</u> attached hereto), the Performance Stock Units shall vest on the Vesting Date based on the Company's achievement of the performance goal(s) set forth and described on <u>Exhibit A</u> hereto. For purposes of this Award Agreement, the term "***Service Relationship***" means any relationship as a full-time or part-time employee, officer, non-employee director, consultant or advisor of the Company or any successor entity (*e.g.*, a Service Relationship shall be deemed to continue without interruption in the event an individual's status changes from full-time employee to part-time employee or consultant). |
| **Settlement:** | Upon vesting of a Performance Stock Unit, the Company shall settle each Performance Stock Unit by delivering to Holder one share of Stock for each Performance Stock Unit that vested as soon as practicable (but not more than thirty (30) days) following the applicable Vesting Date (as such term is defined in <u>Exhibit A</u>) (such date, the "***Original Issuance Date***"). The shares of Stock issued in respect of the Performance Stock Units may be evidenced in such manner as the Committee shall determine. Notwithstanding the foregoing, if the Original Issuance Date does not occur (i) during an "open window period" applicable to Holder, (ii) on a date when Holder is permitted to sell shares of Stock pursuant to a written plan that meets the requirements of Rule 10b5-1 under the Exchange Act, as determined by the Company in accordance with the Company's then-effective policy on trading in Company securities (the "***Policy***"), or (iii) on a date when Holder is otherwise permitted to sell shares of Stock on an established stock exchange or stock market, then such shares will not be delivered on such Original Issuance Date and will instead be delivered on the first business day of the next occurring "open window" period applicable to Holder pursuant to such Policy (regardless of whether Holder has experienced a Termination at such time) or the next business day when Holder is not prohibited from selling shares of Stock on the open market, but in no event later than the later of (x) December 31st of the calendar year in which the Original Issuance Date occurs (that is, the last day of Holder's taxable year in which the Original Issuance Date occurs), or (y) to the extent permitted by Treasury Regulations Section 1.409A-1(b)(4) without penalty, the fifteenth (15th) day of the third calendar month of the calendar year following the calendar year in which the Original Issuance Date occurs. |

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1751964242.4 ------

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| | |
|:---|:---|
| **Termination:** | Section 7(d) of the Plan regarding treatment of Performance Stock Units upon Termination is incorporated herein by reference and made a part hereof. In the event of Holder's Termination for any reason, all unvested Performance Stock Units shall be cancelled and forfeited as of the date of such Termination for no consideration. |
| **General Unsecured Creditor:** | <br>Holder shall have only the rights of a general unsecured creditor of the Company until shares of Stock are issued in respect of the Performance Stock Units. |
| **Transfer Restrictions:** | Holder shall not be permitted to sell, transfer, pledge, or otherwise encumber the Performance Stock Units before they vest and are settled, and any attempt to sell, transfer, pledge, or otherwise encumber the Performance Stock Units in violation of the foregoing shall be null and void. |
| **No Rights as a Stockholder:** | <br>Neither the Performance Stock Units nor this Award Agreement shall entitle Holder to any voting rights or other rights as a stockholder of the Company unless and until the shares of Stock in respect of the Performance Stock Units have been issued in settlement thereof. Without limiting the generality of the foregoing, no dividends (whether in cash or shares of Stock) or dividend equivalents shall accrue or be paid with respect to any Performance Stock Units. |
| **Restrictive Covenants:** | ***Confidential Information.*** Holder acknowledges and agrees that the information, observations and data obtained by Holder while employed by the Company or its Affiliates (or by the Person(s) which operated the Company's business prior to the acquisition thereof by the Company and its Affiliates, if applicable) concerning the business or affairs of the Company or any of its Affiliates ("***Confidential Information***") shall be the property of the Company or such Affiliate. Therefore, Holder agrees that Holder shall not disclose to any unauthorized Person or use for Holder's own purposes any Confidential Information without the prior written consent of the Committee, unless and to the extent that (i) such information becomes generally known to and available for use by the public other than as a result of Holder's acts or omissions, or (ii) such information is required to be disclosed by law, court order or other legal process; <u>provided</u>, in the case of clause (ii) above, that Holder shall provide the Company with prior notice of the contemplated disclosure of such Confidential Information and cooperate with the Company, at the Company's expense, in seeking a protective order or other appropriate protection of such Confidential Information; <u>provided</u>, <u>further</u>, in the case of clause (ii) above, that Holder shall only disclose such Confidential Information that is explicitly required by applicable law, court order or other legal process, as determined by legal counsel, at the Company's expense. Holder shall deliver to the Company on the date of any Termination, or at any other time the Company may request, all memoranda, notes, plans, records, reports, computer tapes, printouts and software and other documents and data (and copies thereof) relating to the Confidential Information, Work Product (as defined below) or the business of the Company or any Affiliate which Holder may then possess or have under Holder's control. |

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1751964242.4 ------

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| |
|:---|
| Nothing in this Award Agreement is intended to conflict with the whistleblower provisions of any United States federal, state or local law or regulation, including but not limited to Rule 21F-17 of the Exchange Act or U.S. Defend Trade Secrets Act of 2016, 18 U.S.C. § 1833(b) (the "***Act***"). Accordingly, notwithstanding anything to the contrary herein, nothing in this Award Agreement shall prohibit the Holder from (A) filing a charge or complaint with, participating in an investigation or proceeding conducted by, or reporting possible violations of law or regulation to any federal, state or local government agency, (B) truthfully responding to or complying with a subpoena, court order, or other legal process, or (C) exercising any rights Holder may have under applicable labor laws to engage in concerted activity with other employees. |
| Under the Act, persons who disclose trade secrets in connection with lawsuits or other proceedings under seal (including lawsuits alleging retaliation), or in confidence to a federal, state or local government official, or attorney, solely for the purpose of reporting or investigating a suspected violation of law, enjoy immunity from civil and criminal liability under state and federal trade secrets laws for such disclosure. Holder acknowledges that Holder has hereby received adequate notice of this immunity, such that the Company and its Affiliates are entitled to all remedies available for violations of the Act, including exemplary damages and attorney fees. Nothing in this Award Agreement is intended to conflict with the Act or create liability for disclosures of trade secrets that are expressly allowed by the Act. |
| ***Inventions, Etc.*** Holder agrees that all inventions, innovations, improvements, developments, methods, techniques, processes, algorithms, data, databases, designs, analyses, drawings, reports, and all similar or related information, all software, copyrights, and other works of authorship, all other intellectual property or proprietary rights (including any patents, registrations or similar rights that may issue from the foregoing), and all tangible embodiments of any of the foregoing (in any form or medium, whether now known or hereafter existing), which relate to the Company's or any of its Affiliates' actual or anticipated business, research and development or existing or future products or services and which are conceived, developed, contributed to or made by Holder while employed by the Company or its Affiliates (or by the Person(s) which operated the Company's business prior to the acquisition thereof by the Company and its subsidiaries, if applicable) (collectively, "***Work Product***"), belong to and are the property of the Company or such Affiliate, as applicable, and Holder hereby assigns to the Company or such Affiliate, as applicable, any right, title and interest Holder may have in and to the Work Product, free and clear of any claims for compensation or restrictions on the use or ownership thereof. Holder will promptly disclose such Work Product to the Committee and perform all actions reasonably requested by the Committee (whether before or after the Holder's Termination) to establish, record, perfect and otherwise confirm such ownership, and protect, maintain and enforce the Company's and the Affiliate's rights in such Work Product (including, without limitation, by executing assignments, consents, powers of attorney, and other instruments and providing affidavits and testifying in any proceeding). |

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1751964242.4 ------

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| |
|:---|
| ***Non-Compete, Non-Solicitation.*** Holder acknowledges that during Holder's employment with the Company, Holder has and will become familiar with the Company's trade secrets and with other Confidential Information concerning the Company and its Affiliates and that Holder's services will be of special, unique and extraordinary value to the Company and its Affiliates. Therefore, and in further consideration of the Performance Stock Units to be granted to Holder hereunder, Holder agrees to the covenants set forth in this section and acknowledges that (i) the covenants set forth herein are reasonably limited in time and in all other respects, (ii) the covenants set forth herein are reasonably necessary for the protection of the Company, and (iii) the covenants set forth herein have been made in order to induce the Company to enter into this Award Agreement and the Company would not have entered into this Award Agreement but for Holder's agreement to such covenants. |
| Holder agrees that, during the period commencing on the date hereof and ending on the two year anniversary of Holder's Termination (the ***"Restricted Period"***), Holder shall not directly or indirectly own any interest in, manage, control, engage in, participate in, consult with, contribute to or render services for (as an officer, director, employee or in any other regard), any Person that is in any business which competes with any business that the Company and/or its Affiliates conducts or has specific plans to conduct at the time of Holder's Termination anywhere in the world; <u>provided</u> that, nothing herein shall prohibit Holder from being a passive owner of less than 2% of the outstanding stock of any class of a corporation which is publicly traded, so long as Holder has no active participation in the business of such corporation. |
| During the Restricted Period, Holder shall not directly, or indirectly through another entity, (i) solicit or induce or attempt to solicit or induce any employee of the Company or any Affiliate to leave the employ of the Company or such Affiliate, or in any way interfere with the relationship between the Company or any Affiliate and any employee thereof, (ii) hire any person who was an employee of the Company or any Affiliate at any time from 6 months prior to the date hereof through the Holder's Termination, (iii) make any statement or do any act intended to cause existing or potential customers of the Company or any Affiliate to make use of the services or purchase the products of any competitive business or (iv) induce or attempt to induce any customer, supplier, licensee, licensor, franchisee or other business relation of the Company or any Affiliate to cease doing business with, or materially and adversely change the terms of its business with, the Company or such Affiliate, or in any way interfere with the relationship between any such customer, supplier, licensee, licensor, franchisee or business relation and the Company or any Affiliate. |
| <br>If the Committee determines in good faith that Holder has breached or threatened to breach any of the covenants contained herein, or any restrictive covenant contained in an employment agreement or other agreement between Holder and any of the Company or any of its Affiliates, to the extent permitted by applicable law: |
| (a) any unvested or vested but unsettled Performance Stock Units shall be immediately forfeited effective as of the date of such breach, unless sooner terminated by operation of another term or condition of this Award Agreement or the Plan, and Holder shall deliver to the Company (or take all steps necessary to effectuate the delivery of), no later than five (5) days following such determination, any shares of Stock issued upon the settlement of Holder's Performance Stock Units and any proceeds resulting from the sale or other disposition (including to the Company) of shares of Stock issued upon settlement of Holder's Performance Stock Units; and |

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1751964242.4 ------

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| |
|:---|
| (b) Holder hereby consents and agrees that the Company shall be entitled to seek, in addition to other available remedies, a temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages or other available forms of relief. Each of the Company's Affiliates not party to this Award Agreement is intended to be third-party beneficiaries of the provisions of the restrictive covenants set forth herein, and such provisions may be enforced by each of them in accordance with the terms hereof in respect of the rights granted to each such entity hereunder. |
| It is expressly understood and agreed that, if a final judicial determination is made by a court having jurisdiction (without regard to any ability to appeal or whether an appeal is in fact taken, during the pendency of that appeal) that the time or territory restrictions or any other provision herein related to the restrictive covenants is an unreasonable or otherwise unenforceable restriction against Holder, the provisions herein related to the restrictive covenants shall not be rendered void, but shall be deemed amended to apply as to such maximum time and territory and to such other extent as such court may judicially determine or indicate to be reasonable. |
| Holder acknowledges and agrees that the provisions herein related to the restrictive covenants shall continue to apply following Holder's Termination, regardless of the reason for such Termination. |

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| | |
|:---|:---|
| **Clawback Policy;** <br>**Share Ownership Guidelines:** | <br>The Performance Stock Units (and any compensation paid or shares issued in respect of the Performance Stock Units) are subject to (i) any share ownership guidelines to which the Holder may be subject, and (ii) recoupment in accordance with the Company's clawback policy, if applicable, The Dodd-Frank Wall Street Reform and Consumer Protection Act and any implementing regulations thereunder, any other clawback policy adopted by the Company and any compensation recovery policy otherwise required by applicable law. |
| **Additional Terms:** | The Performance Stock Units shall be subject to the following additional terms: |
| | • Any certificates representing the shares of Stock delivered to Holder shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which such shares are listed, and any applicable federal or state laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions as the Committee deems appropriate. |
| | • Holder shall be the record owner of the shares of Stock issued in respect of the Performance Stock Units until or unless such shares of Stock are repurchased or otherwise sold or transferred in accordance with the terms of the Plan, and as record owner shall generally be entitled to all rights of a stockholder with respect to the shares of Stock issued in respect of the Performance Stock Units. |

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1751964242.4 ------

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| |
|:---|
| • Upon issuance of shares of Stock in respect of the Performance Stock Units, Holder shall be required to satisfy applicable withholding tax obligations, if any, as provided in Section 16 of the Plan. In addition, the Company or any Affiliate may, in its sole discretion, satisfy all or any portion of the withholding tax obligation relating to the Performance Stock Units by any of the following means or by a combination of such means: (i) withholding from any compensation otherwise payable to Holder by the Company or any Affiliate; (ii) causing Holder to tender a cash payment; (iii) permitting or requiring Holder to enter into a "same day sale" commitment, whereby the withholding taxes may be satisfied with a portion of the shares of Stock to be delivered in connection with the Performance Stock Units by delivery of an irrevocable direction to a securities broker (on a form prescribed by the Committee) to sell a portion of the shares of Stock and to deliver all or part of the sale proceeds to the Company and/or its Affiliates in payment of the amount necessary to satisfy the withholding tax obligation; (iv) withholding shares of Stock from the shares of Stock issued or otherwise issuable to Holder in connection with the Performance Stock Units with a Fair Market Value equal to the amount of such withholding taxes; provided, that to the extent necessary to qualify for an exemption from application of Section 16(b) of the Exchange Act, if applicable, such share withholding procedure will be subject to the express prior approval of the Committee; or (v) such other arrangements as are satisfactory to the Committee. |
| • This Award Agreement does not confer upon Holder any right to continue as an employee or service provider of the Service Recipient or any other member of the Company Group. |
| • This Award Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware, without regard to the principles of conflicts of law thereof. |
| • Holder understands that the Performance Stock Units are intended to be exempt from Section 409A of the Code as a "short term deferral" to the greatest extent possible and the Performance Stock Units will be administered and interpreted in accordance with such intent. In no event whatsoever shall the Company or any of its Affiliates be liable for any additional tax, interest or penalties that may be imposed on Holder as a result of Section 409A of the Code or any damages for failing to comply with Section 409A of the Code (other than for withholding obligations or other obligations applicable to employers, if any, under Section 409A of the Code). |

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1751964242.4 ------

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| |
|:---|
| • Holder agrees that the Company may deliver by email all documents relating to the Plan or the Performance Stock Units (including, without limitation, a copy of the Plan) and all other documents that the Company is required to deliver to its security holders (including, without limitation, disclosures that may be required by the Securities and Exchange Commission). Holder also agrees that the Company may deliver these documents by posting them on a website maintained by the Company or by a third party under contract with the Company. If the Company posts these documents on a website, it shall notify Holder by email or such other reasonable manner as then determined by the Company. |
| • This Award Agreement and the Plan constitute the entire understanding and agreement of the parties hereto and supersede all prior negotiations, discussions, correspondence, communications, understandings, and agreements (whether oral or written and whether express or implied) between the Company and Holder relating to the subject matter of this Award Agreement. Without limiting the foregoing, to the extent Holder has entered into an employment or similar agreement with the Company or any of its Affiliates, and the terms noted in such employment or similar agreement are inconsistent with or conflict with this Award Agreement, then the terms of this Award Agreement will supersede and be deemed to amend and modify the inconsistent or conflicting terms set forth in such employment or similar agreement. |

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**\* \* \*** 

1751964242.4 ------

**THE UNDERSIGNED HOLDER ACKNOWLEDGES RECEIPT OF THIS AWARD AGREEMENT, AND THE PLAN, AND, AS AN EXPRESS CONDITION TO THE GRANT OF PERFORMANCE STOCK UNITS UNDER THIS AWARD AGREEMENT, AGREES TO BE BOUND BY THE TERMS OF BOTH THIS AWARD AGREEMENT AND THE PLAN.**

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| | |
|:---|:---|
| **HOLLEY INC.** | **HOLDER** |
| ________________________________ | ______________________________ |
| By: Carly Kennedy <br>Title: EVP, General Counsel and Corporate Secretary | Print Name:  |

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&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;

[*Signature page to CEO Performance-Based Restricted Stock Unit Award Agreement*]

1751964242.4 ------

**<u>Exhibit A</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Vesting Schedule and Conditions</u>. The Stock Price Performance Goal applicable to any Tranche of Performance Stock Units corresponding to the applicable Company Stock Price Target in the table below, to the extent such Tranche has not previously vested, shall be satisfied in the event that such Company Stock Price Target has been attained (on each trading day) for a period of twenty (20) consecutive trading days during the Performance Period. Any Tranche for which the Stock Price Performance Goal has been satisfied shall vest on the applicable Vesting Date. Any Tranche that has not vested as of the Expiration Date shall be immediately forfeited and canceled for no consideration.

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| | | |
|:---|:---|:---|
| **Stock Price Performance Goals\*** | **Stock Price Performance Goals\*** | **Stock Price Performance Goals\*** |
| **Tranche** | **Company Stock Price Targets** | **Number of Performance Stock Units\*** |
| **$1** | $4.00 | [●] |

---

\* The Committee shall make adjustments to the applicable Stock Price Performance Goal as it deems equitable and appropriate to (a) exclude the material impact of any changes in accounting standards or methods that are implemented during the Performance Period and (b) exclude the impact of any merger, combination, acquisition, consolidation, sale of a portion of the business or other reorganization of the Company that occurs during the Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Accelerated Vesting</u>. In the event a Change in Control occurs during the Performance Period prior to the Vesting Date, pursuant to Section 10(b) of the Plan, this Award Agreement is not eligible for assumption or substitution in connection with such Corporate Event. Pursuant to Section 10(b)(3) of the Plan, any then-unvested Tranche of Performance Stock Units shall immediately vest as of the date of the consummation of such Change in Control if, and to the extent that, the applicable Company Stock Price Target for the Tranche has been attained or exceeded as of the date of such Change in Control, this Award Agreement shall be cancelled, and a payment(s) shall be made to the Holder in an amount in respect of the cancellation equal to an amount based upon the per-share consideration being paid for the Stock in connection with such Corporate Event. Payment made to Holder pursuant to such cancellation shall be made at the same time and in the same form as such Holder would have been entitled to receive upon the occurrence of the transaction if the Holder had been, immediately prior to such transaction, the Holder of a number of shares of Stock equal to the number of Performance Stock Units covered by the Award at such time that become vested pursuant to this section. For the avoidance of doubt, the accelerated vesting shall apply irrespective of the number of trading days the Company Stock Price Target has been met preceding such Change in Control. In the event that the Company Stock Price Target has not been attained or exceeded as of the date of such Change in Control, this Award Agreement and the Performance Stock Units shall be forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.For purposes of this Exhibit A, the following terms shall have the meanings listed below:

"***Company Stock Price Target***" means each Company Stock Price set forth in the table in Section 1 of this Exhibit A.

"***Company Stock Price***" means the closing price of a share of Stock as reported on the New York Stock Exchange.

"***Expiration Date***" means the earliest to occur of: (i) the date on which all Performance Stock Units granted hereunder vest and (ii) the seven year anniversary of the Date of Grant.

"***Performance Period***" means the period between (i) the Date of Grant and (ii) the Expiration Date.

1751964242.4 ------

"***Vesting Date***" means the date immediately following the last day of a twenty (20) consecutive trading day period during the Performance Period in which the Company Stock Price Target applicable to a Tranche of Performance Stock Units that has not previously vested has been attained on each trading day of such twenty (20) consecutive trading day period.

1751964242.4