Document:

Exhibit 10.6

 

[October
__,] 2020

 

		Re:	Conversion of Velodyne Lidar, Inc. Equity-Based
Awards

 

Dear
[NAME],

 

On
July 2, 2020, Velodyne Lidar, Inc. (“VLI”) entered into an Agreement and Plan of Merger (the “Merger
Agreement”), by and among Graf Industrial Corp. (“Graf”) and its wholly owned subsidiary, VL Merger
Sub Inc. (“Merger Sub”), pursuant to which Merger Sub merged with and into VLI (the “Merger”),
with VLI surviving the merger and becoming a wholly-owned subsidiary of Graf. Upon the effective time of the Merger (the “Effective
Time”), Graf changed its name to Velodyne Lidar, Inc., though such entity is referred to herein as the “Public
Company.”

 

Upon
the Effective Time, all outstanding equity-based awards granted under the Velodyne Lidar, Inc. 2007 Incentive Stock Plan (the “2007
Stock Plan”) and the Velodyne Lidar, Inc. 2016 Stock Plan (the “2016 Stock Plan” and, together with
the 2007 Stock Plan, the “VLI Stock Plans”), were cancelled and converted into rollover equity-based awards
as set forth below. 

 

For
purposes of this letter, the “Exchange Ratio” is 2.97860818299396, which is the number of shares of Public Company
common stock that were issued as merger consideration for one share of VLI common stock. In addition, all rollover equity-based
awards described below have been issued under the Velodyne Lidar, Inc. 2020 Equity Incentive Plan (the “Public Company
Plan”). 

 

VLI
Restricted Stock Unit Awards

 

At
the Effective Time, each then outstanding and unsettled award of restricted stock units under a VLI Stock Plan (a “VLI
RSU Award”) was cancelled and converted into an award of restricted stock units with respect to the number of shares
of the Public Company common stock equal to the product of: (i) the number of shares of VLI common stock subject to the VLI RSU
Award, multiplied by (ii) the Exchange Ratio, rounded down to the nearest whole number of shares of Public Company common stock
(each restricted stock unit award, as converted, a “Rollover RSU Award”). 

 

VLI
Options

 

At
the Effective Time, each then outstanding and unexercised option to purchase shares of VLI common stock under a VLI Stock Plan
(a “VLI Option”) was cancelled and converted into an option to purchase shares of the Public Company common
stock (each option, as converted, a “Rollover Option”), in accordance with the following:

 

		·	the number of shares of the Public Company
common stock subject to each Rollover Option is equal to the product of (i) the number of shares of VLI common stock that were
subject to the corresponding VLI Option immediately prior to the Effective Time, multiplied by (ii) the Exchange Ratio,
rounded down to the nearest whole number of shares of Public Company common stock; and

 

    

     

    

 

		·	the exercise price per share of each Rollover
Option is equal to the quotient of (i) the per share exercise price of the corresponding VLI Option immediately prior to the Effective
Time, divided by (ii) the Exchange Ratio, rounded down to the nearest whole cent. 

 

VLI
Restricted Stock Awards

 

At
the Effective Time, each then outstanding and unvested award of restricted stock under a VLI Stock Plan (a “VLI Restricted
Stock Award” and, together with the other VLI Restricted Stock Awards, the VLI Options and the VLI RSU Awards, the “VLI
Awards”) was cancelled and converted into an award on the number of restricted shares of Public Company common stock
equal to the product of: (i) the number of restricted shares of VLI common stock subject to the VLI Restricted Stock Award, multiplied
by (ii) the Exchange Ratio, rounded down to the nearest whole number of restricted shares of Public Company common stock (each
restricted stock award, after such conversion, a “Rollover Restricted Stock Award” and, together with the other
Rollover Restricted Stock Awards, the Rollover Options and Rollover RSU Awards, the “Rollover Awards”). 

 

General
Provisions applicable to Rollover Awards

 

As
of and following the Effective Time, each of the Rollover Awards continued, and, as applicable, continues, to be subject to the
terms and conditions of the award agreements evidencing the corresponding VLI Award under the applicable VLI Stock Plan (the “Award
Agreements”); provided, that, any reference in an Award Agreement: 

 

		(i)	to the Plan means the Public Company Plan;

 

		(ii)	to the Board of Directors means the Board
of Directors of the Public Company;

 

		(iii)	to the Company means the Public Company;
and

 

		(iv)	to Common Stock means the common stock
of the Public Company.

 

Notwithstanding
the foregoing or anything to the contrary herein, as of and following the Effective Time:

 

		(i)	any reference in an Award Agreement to
an “initial public offering” continued and, as applicable, continues to mean the first firm commitment underwritten
public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “Securities
Act”), covering the offer and sale by VLI of the equity securities of VLI; 

 

		(ii)	any reference in an Award Agreement to
 “a registration statement of the Company filed under the Securities Act for the sale of Common Stock” continued and,
as applicable, continues to mean a registration statement of VLI that is filed under the Securities Act for the sale of common
stock of VLI and that covers the shares of stock issued pursuant to the Rollover Award; and

 

    

     

    

 

		(iii)	with respect to any Rollover Award, the
Board of Directors of the Public Company or, an authorized committee thereof, has the authority to perform all actions and make
such determinations that were provided to the plan administrator in the VLI Stock Plan that was applicable to the corresponding
VLI Award; and 

 

		(iv)	with respect to any Rollover Award, the
terms and conditions set forth in a VLI Stock Plan that was applicable to the corresponding VLI Award, shall continue to apply
to the Rollover Award and shall be incorporated by reference into the applicable Award Agreement to the extent necessary to administer,
interpret and resolve any ambiguity relating to the Rollover Award. 

 

Miscellaneous

 

While
you will not receive new paperwork for any of your Rollover Awards, our records have been adjusted to reflect the effects of the
Merger and you can view your outstanding awards, as converted, by logging into your Velodyne established E*TRADE Stock Plan account,
which is accessible online at www.etrade.com. You should also keep this letter as a reminder of the adjustments made to each of
your VLI Awards and the corresponding Award Agreements.

 

For
the avoidance of doubt, no provision contained herein or in the Merger Agreement shall give you any right to remain in the service
or employment of the Public Company or any of its affiliates, create any inference as to the length of your employment or service,
or affect the right of the Public Company or any of its affiliates, to terminate your employment or service at any time for any
reason. 

 

Further,
no provision herein shall supersede or amend the Merger Agreement, or any resolutions effectuated by the Public Company’s
board of directors. In the event where a conflict exists between this letter and the Merger Agreement (or any Public Company board
resolution effectuated as a result thereto), the Merger Agreement and such corresponding board resolution of the Public Company
shall control. 

 

This
letter may be executed in two counterparts, each of which shall be deemed an original, all of which together shall constitute one
and the same instrument.

 

	 	Very truly yours,
	 	 
	 	Velodyne Lidar, Inc.
	 	 
	 	 
	 	By: 	             
	 	Name:
	 	Title: 

 

    

     

    

 

	I acknowledge and agree to the terms set forth herein:	 
	 	 
	 	 
	By: 	 	 
	Print Name: 	 	 
	Date:Exhibit 10.7

 

 

July 3, 2019

 

Andrew Hamer

 

Dear Andrew,

 

Velodyne LiDAR,
Inc. (“Velodyne”) is pleased to offer you employment with the company on the terms described below.

 

Position. You will start
in a full-time position as Chief Financial Officer. You will initially report to David Hall. Your target start date will be on
July 3, 2019.

 

Compensation. You will
be paid a starting salary at the rate of $370,000 per year, payable on Velodyne’s regular payroll dates and subject to all
withholdings and deductions as required by law.

 

You will be eligible to participate
in Velodyne’s annual bonus plan. Your target bonus opportunity will be 50% of your then-current salary and will be paid annually.
For 2019, your initial bonus, if any, will be based equally on 1) your performance in preparing and executing an initial public
offering of Velodyne’s stock and 2) Velodyne’s revenue growth meeting the targets agreed upon by the executive management
team. Subsequent bonuses, if any, will be based on individual objectives established by your manager. You must be continuously
employed through the bonus payment date to be eligible to receive an annual bonus payment for the particular calendar year.

 

Employee Benefits. As a
full-time employee of Velodyne you will be eligible to participate in the Velodyne-sponsored benefits. The Velodyne-sponsored benefits
are described in the employee benefit summary that I have enclosed with this letter.

 

Restricted Stock Units. Subject to the
approval of the Company’s Board of Directors or its Compensation Committee, you will be granted an award of 65,000
Restricted Stock Units (the “RSUs”). The RSUs will be subject to the terms and conditions of the Company’s
2016 Stock Plan (the “Plan”) and a notice of restricted stock unit award and restricted stock unit agreement (the
 “Award Agreement”). As will be more fully described in the Award Agreement, the RSUs will be subject to vesting
based on the satisfaction of two vesting conditions: (i) a time-based service requirement, and (ii) a liquidity event
requirement. In addition, both vesting conditions must be satisfied prior to the seventh anniversary of the date of grant in
order for the RSUs (or a portion thereof) to vest, meaning that all of the RSUs shall automatically terminate if either one
of the two conditions is not satisfied prior to the seventh anniversary of the date of grant. The Award Agreement will
further provide that: (A) the time-based requirement will be satisfied with respect to 25% of the RSUs after 9 months of your
continuous service with the Company and the balance will vest in equal installments when you complete each successive
three-month period of continuous service with the Company over the next 3 years; and (B) the liquidity event will be
satisfied upon either the consummation of an initial public offering of the Company’s Common Stock or a Sale Event (as
defined below).

 

    1

     

    

 

“Sale Event”
means the consummation of the following transactions in which holders of the Company’s Common Stock receive cash or marketable
securities tradable on an established national or foreign securities exchange: (i) a sale of all or substantially all of the assets
of the Company determined on a consolidated basis to an unrelated person or entity; (ii) a merger, reorganization, or consolidation
involving the Company in which the shares of voting stock of the Company outstanding immediately prior to such transaction represent
or are converted into or exchanged for securities of the surviving or resulting entity immediately upon completion of such transaction
which represent less than 50% of the outstanding voting power of such surviving or resulting entity; or (iii) the acquisition
of all or a majority of the outstanding voting stock of the Company in a single transaction or series of related transactions
by a person or group of persons. For the avoidance of doubt, an initial public offering, any subsequent public offering, another
capital raising event, and a merger effected solely to change the Company’s domicile shall not constitute a “Sale
Event.” In addition, a transaction shall not constitute a Sale Event unless such transaction also qualifies as an event
under Treasury Regulation Section 1.409A-3(i)(5)(v) (change in the ownership of a corporation), Treasury Regulation Section 1.409A-3(i)(5)(vi)
(change in the effective control of a corporation), or Treasury Regulation Section 1.409A-3(i)(5)(vii) (change in the ownership
of a substantial portion of a corporation’s assets).

 

Change in
Control. If your employment with Velodyne is involuntarily terminated within three (3) months prior to or within
twelve (12) months after a Sale Event and for reasons other than Cause or a breach by you of the terms and conditions of this
letter (including, but not limited to, a breach of the Employment Agreement (as defined in below)) or by you for Good Reason,
and subject to your execution, and non-revocation, of a release of claims in a form provided by Velodyne or the acquirer in
such Sale Event, (i) the time-based vesting requirement for the RSUs and Options, if any, will be deemed satisfied; (ii) you
will be provided with a payment of an amount equal to twelve (12) months of your Base Salary as in effect on your termination
date; and (iii) you will be provided up to twelve (12) months of COBRA payments to be made by Velodyne or its successor
should you elect COBRA coverage. Any payment will be payable in lump sum, subject to applicable tax withholdings and
deductions, after the effective date of the general release and waiver of claims. If you fail to return the release within
sixty days of your termination, or you revoke the release, then you shall not be entitled to the benefits described in this
Change in Control section.

 

Severance. Upon the
termination of your employment by Velodyne without Cause or by you for Good Reason, and other than as a result of a Sale
Event or permanent disability, and conditional upon your executing and not revoking a general release and waiver of claims
against Velodyne in a form provided by Velodyne (which shall include, among other terms, a non-disparagement clause), you
will be provided with (i) a payment of an amount equal to twelve (12) months of your Base Salary as in effect on your
termination date; and (ii) up to twelve (12) months of COBRA payments to be made by Velodyne should you elect COBRA coverage.
Any payment will be payable in lump sum, subject to applicable tax withholdings and deductions, after the effective date of
the general release and waiver of claims. The release shall be in a form prescribed by Velodyne, without alterations. If you
fail to return the release within sixty days of your termination, or you revoke the release, then you shall not be entitled
to the benefits described in this Severance section.

 

    2

     

    

 

The term "Cause" shall
mean: (i) an unauthorized use or disclosure by you of Velodyne’s confidential information or trade secrets; (ii) a continuing
material breach by you of any agreement between you and Velodyne, which breach continues for more than ten (10) calendar days after
receiving specific written notification of such breach by your manager; (iii) a continuing material failure by you to comply with
Velodyne's written policies or rules which failure continues for more than ten (10) calendar days after receiving specific written
notification of such failure from your manager; (iv) your conviction of, or plea of "guilty" or "no contest"
to, a felony under the laws of the United States or any State thereof; (v) your continuing gross negligence or willful misconduct
which negligence continues for more than ten (10) calendar days after receiving specific written notification of such failure from
your manager; (vi) a continuing failure by you to perform assigned duties, which failure continues for more than ten (10) calendar
days after receiving specific written notification of such failure form your manager; or (vii) a continuing failure by you to cooperate
in good faith with a governmental or internal investigation of Velodyne or its directors, officers or employees, if Velodyne has
requested your cooperation, which failure continues for more than ten (10) calendar days after receiving specific written notification
of such failure from your manager.

 

The term "Good Reason"
means (a) material reduction of your rate of compensation; (b) material reduction in your duties; (c) material diminution or reduction
in your title or duties, or (d) relocation of your principal place of employment to a place greater than 30 miles from your then
current principal place of employment.

 

Proprietary Information and
Inventions Agreement. As a condition of your employment, you will be required to sign Velodyne’s standard At-Will Employment,
Confidential Information, Invention Assignment, and Arbitration Agreement (“Employment Agreement”), which is attached.

 

Employment Relationship.
You may terminate your employment with Velodyne at any time and for any reason whatsoever simply by notifying Velodyne. Likewise,
Velodyne may terminate your employment at any time and for any reason whatsoever, with or without cause or advance notice. Any
contrary representations which may have been made to you are superseded by this offer. This is the full and complete agreement
between you and Velodyne on this term. Although your job duties, title, compensation and benefits, as well as Velodyne’s
personnel policies and procedures, may change from time to time, the “at will” nature of your employment may only be
changed in an express written agreement signed by you and Velodyne’s Chief Executive Officer or President.

 

Outside
Activities. While you render services to Velodyne, you agree that you will devote your full business time and best
efforts to the performance of your duties and to the furtherance of Velodyne’s interests. In addition, while you render
services to Velodyne, you will not assist any person or entity in competing with Velodyne, in preparing to compete with
Velodyne or in hiring any employees or consultants of Velodyne.

 

    3

     

    

 

Current/Former
Employer. By signing this letter, you confirm that you are under no contractual or other legal obligations that
would prohibit you from performing your duties with Velodyne. You further confirm that you will inform Velodyne about any
such restrictions and provide Velodyne with as much information about them as possible, including any agreements between you
and your current or former employer describing such restrictions on your activities. You further confirm that you will not
remove or take any documents or proprietary data or materials of any kind, electronic or otherwise, with you from your
current or former employer to Velodyne without written authorization from your current or former employer.

 

Contingencies. This offer of employment is contingent
upon the following:

 

a)   
Your ability to provide and maintain the proper and necessary documentation required for you and Velodyne to comply with
all applicable United States immigration laws and regulations. Please be prepared on your first day of employment to show specific
documentation to certify your legal right to work in the United States.

 

b)    Your execution
(signature) of the Velodyne Employee Agreement which protects the intellectual property and confidential information of Velodyne,
and prohibits the unauthorized use of the intellectual property and confidential information of any other company.

 

c)    The satisfactory
review and/or verification of background information, including, but not limited to, prior employment, reference checks, education,
Department of Motor Vehicles, Social Security, and criminal records.

 

Entire Agreement. This
letter supersedes and replaces any prior understandings or agreements, whether oral, written or implied, between you and Velodyne
regarding the matters described in this letter.

 

If you wish to accept this offer, please sign, date,
and return this letter and the enclosed Employment Agreement.

 

This offer, if not accepted, will expire at the close
of business on July 3, 2019.

 

	 	Very truly yours,
	 	 
	 	/s/ Marta Hall
	 	 
	 	Velodyne LiDAR, Inc.
	 	By: Marta Hall, President

 

    4

     

    

 

I have read and accept this employment offer:

 

/s/ Andrew Hamer 

Andrew Hamer

 

	Date Signed:	7/3/2019

 

Attachment(s)

 

Velodyne Employment Agreement

Employee Benefits Summary

 

    5

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