Document:

Exhibit 10.2

 

Velodyne
Lidar, Inc.

 

2020
Equity Incentive Plan

 

(as
Adopted on September 13, 2020 and Effective September 29, 2020)

 

(Approved
by the Stockholders on September 29, 2020)

 

 

    

     

    

 

Velodyne
Lidar, Inc.

2020 Equity Incentive Plan

 

ARTICLE 1. INTRODUCTION.

 

The Board adopted the
Plan to become effective immediately, although no Awards may be granted prior to the Business Combination Date. The purpose of
the Plan is to promote the long-term success of the Company and the creation of stockholder value by (a) encouraging Service
Providers to focus on critical long-range corporate objectives, (b) encouraging the attraction and retention of Service Providers
with exceptional qualifications and (c) linking Service Providers directly to stockholder interests through increased stock
ownership. The Plan seeks to achieve this purpose by providing for Awards in the form of Options (which may beISOs or NSOs), SARs,
Restricted Sharesand Restricted Stock Units, any of which may be structured as performance-based awards. Capitalized terms used
in this Plan are defined in Article 14.

 

ARTICLE 2. ADMINISTRATION.

 

2.1             
General. The Plan may be administered by the Board or one or more Committees to which the Board (or an authorized Board
committee) has delegated authority. If administration is delegated to a Committee, the Committee shall have the powers theretofore
possessed by the Board, including, to the extent permitted by applicable law, the power to delegate to a subcommittee any of the
administrative powers the Committee is authorized to exercise (and references in this Plan to either the Board or the Administrator
shall hereafter also encompass the Committee or subcommittee, as applicable). The Board may abolish the Committee’s delegation
at any time and the Board shall at all times also retain the authority it has delegated to the Committee. The Administrator shall
comply with rules and regulations applicable to it, including under the rules of any exchange on which the Common Shares are traded,
and shall have the authority and be responsible for such functions as have been assigned to it.

 

2.2             
Section 16. To the extent desirable to qualify transactions hereunder as exempt under Exchange Act Rule 16b-3,
the transactions contemplated hereunder will be approved by the entire Board or a Committee of two or more “non-employee
directors” within the meaning of Exchange Act Rule 16b-3.

 

2.3             
Powers of Administrator. Subject to the terms of the Plan, and in the case of a Committee, subject to the specific duties
delegated to the Committee, the Administrator shall have the authority to (a) select the Service Providers who are to receive
Awards under the Plan, (b) determine the type, number, vesting requirements and other features and conditions of such Awards,
(c) interpret the Plan and Awards granted under the Plan, (d) make, amend and rescind rules relating to the Plan and
Awards granted under the Plan, including rules relating to sub-plans established for the purposes of satisfying applicable foreign
laws or for qualifying for favorable tax treatment under applicable foreign laws, (e) impose such restrictions, conditions
or limitations as it determines appropriate as to the timing and manner of any resales by a Participant of any Common Shares issued
pursuant to an Award, including restrictions under an insider trading policy and restrictions as to the use of a specified brokerage
firm for such resales, and (f) make all other decisions relating to the operation of the Plan and Awards granted under the
Plan. In addition, with regard to the terms and conditions of Awards granted to Service Providers outside of the United States,
the Administrator may vary from the provisions of the Plan to the extent it determines it necessary and appropriate to do so.

 

    

     

    

 

2.4             
Effect of Administrator’s Decisions. The Administrator’s decisions, determinations and interpretations shall
be final and binding on all interested parties.

 

2.5            
Governing Law. The Plan shall be governed by, and construed in accordance with, the laws of the State of Delaware (except
its choice-of-law provisions).

 

ARTICLE 3. SHARES AVAILABLE FOR GRANTS.

 

3.1             
Basic Limitation. Common Shares issued pursuant to the Plan may be authorized but unissued shares or treasury shares.
The aggregate number of Common Shares issued under the Plan shall not exceed the sum of (a) 10,309,402 Common Shares, plus
(b) up to 17,424,486 Common Shares, which is the approximate number of shares as of the Business Combination Date that will
be subject to outstanding awards or that were issued under a Predecessor Plan and that will be cancelled thereunder and granted
or issued hereunder on the Business Combination Date, and (c) the additional Common Shares described in Articles 3.2 and 3.3;
provided, however, that no more than 27,733,888 Common Shares shall be added to the Plan pursuant to clauses (a) and (b). The number
of Common Shares that are subject to Awards outstanding at any time under the Plan may not exceed the number of Common Shares that
then remain available for issuance under the Plan. The numerical limitations in this Article 3.1 shall be subject to adjustment
pursuant to Article 9.

 

3.2             
Annual Increase in Shares. On the first day of each fiscal year of the Company during the term of the Plan, commencing
on January 1, 2021 and ending on (and including) January 1, 2030, the aggregate number of Common Shares that may be issued
under the Plan shall automatically increase by a number equal to the least of (a) 5% of the total number of Common Shares
actually issued and outstanding on the last day of the preceding fiscal year, (b) 10,000,000 Common Shares (subject to adjustment
pursuant to Article 9.1 below), or (c) a number of Common Shares determined by the Board. Notwithstanding the foregoing,
the Board retains the right in its sole discretion to forego an increase for any fiscal year following an annual review by the
Board of the share reserve of the Plan.

 

3.3             
Shares Returned to Reserve. To the extent that Options, SARs, Restricted Stock Units or other Awards are forfeited,
cancelled or expire for any reason before being exercised or settled in full, the Common Shares subject to such Awards shall again
become available for issuance under the Plan. If SARs are exercised or Restricted Stock Units are settled, then only the number
of Common Shares (if any) actually issued to the Participant upon exercise of such SARs or settlement of such Restricted Stock
Units, as applicable, shall reduce the number of Common Shares available under Article 3.1 and the balance shall again become
available for issuance under the Plan. If Restricted Shares or Common Shares issued upon the exercise of Options are reacquired
by the Company pursuant to a forfeiture provision(including pursuant to Article 11.5), repurchase right or for any other reason,
then such Common Shares shall again become available for issuance under the Plan. Common Shares applied to pay the Exercise Price
of Options or to satisfy tax withholding obligations related to any Award shall again become available for issuance under the Plan.
To the extent that an Award is settled in cash rather than Common Shares, the cash settlement shall not reduce the number of Shares
available for issuance under the Plan.

 

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3.4          
Awards Not Reducing Share Reserve. To the extent permitted under applicable stock exchange listing standards, any dividend
equivalents paid or credited under the Plan with respect to Restricted Stock Units shall not be applied against the number of Common
Shares that may be issued under the Plan, whether or not such dividend equivalents are converted into Restricted Stock Units. In
addition, Common Shares subject to Substitute Awards granted by the Company shall not reduce the number of Common Shares that may
be issued under Article 3.1, nor shall shares subject to Substitute Awards again be available for Awards under the Plan in
the event of any forfeiture, expiration or cash settlement of such Substitute Awards.

 

3.5          
Code Section 422 and Other Limits. Subject to adjustment in accordance with Article 9:

 

(a)              
The grant date fair value of Awards granted to an Outside Director during any one fiscal year of the Company, together with
the value of any cash compensation paid to the Outside Director apart from this Plan during such fiscal year, may not exceed $750,000
(on a per-Director basis); provided however that the limitation that will apply in the fiscal year in which the
Outside Director is initially appointed or elected to the Board shall instead be $1,000,000. For purposes of this limitation, grant
date fair value of an Award shall be determined in accordance with the assumptions that the Company uses to estimate the value
of share-based payments for financial reporting purposes.. For the sake of clarity, Awards granted to an individual while he or
she was an Employee or Consultant, but not an Outside Director, shall not count towards this limitation.

 

(b)              
The maximum number of shares that may be issued under the Plan upon the exercise of ISOs shall equal the share number stated
in the proviso of the second sentence of Article 3.1 (subject to adjustment pursuant to Article 9).

 

ARTICLE 4. ELIGIBILITY.

 

4.1          
Incentive Stock Options. Only Employees who are common-law employees of the Company, a Parent or a Subsidiary shall
be eligible for the grant of ISOs. In addition, an Employee who owns more than 10% of the total combined voting power of all classes
of outstanding stock of the Company or any of its Parents or Subsidiaries shall not be eligible for the grant of an ISO unless
the additional requirements set forth in Code Section 422(c)(5) are satisfied.

 

4.2          
Other Awards. Awards other than ISOs may be granted to both Employees and other Service Providers.

 

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ARTICLE 5. OPTIONS.

 

5.1          
Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between
the Optionee and the Company. Such Option shall be subject to all applicable terms of the Plan and may be subject to any other
terms that are not inconsistent with the Plan. The Stock Option Agreement shall specify whether the Option is intended to be an
ISO or an NSO. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical.

 

5.2          
Number of Shares. Each Stock Option Agreement shall specify the number of Common Shares subject to the Option, which
number shall adjust in accordance with Article 9.

 

5.3          
Exercise Price. Each Stock Option Agreement shall specify the Exercise Price, which shall not be less than 100% of the
Fair Market Value of a Common Share on the date of grant. The preceding sentence shall not apply to an Option that is a Substitute
Award granted in a manner that would satisfy the requirements of Code Section 409A and, if applicable, Code Section 424(a).

 

5.4          
Exercisability and Term. Each Stock Option Agreement shall specify the date or event when all or any installment of
the Option is to become vested and/or exercisable. The vesting and exercisability conditions applicable to the Option may include
service-based conditions, performance-based conditions, such other conditions as the Administrator may determine, or any combination
of such conditions. The Stock Option Agreement shall also specify the term of the Option; provided that, except to the extent necessary
to comply with applicable foreign law, the term of an Option shall in no event exceed 10 years from the date of grant. A Stock
Option Agreement may provide for accelerated vesting and/or exercisability upon certain specified events and may provide for expiration
prior to the end of its term in the event of the termination of the Optionee’s service.

 

5.5          
Death of Optionee. After an Optionee’s death, any vested and exercisable Options held by such Optionee may be
exercised by his or her beneficiary or beneficiaries. Each Optionee may designate one or more beneficiaries for this purpose by
filing the prescribed form with the Company. A beneficiary designation may be changed by filing the prescribed form with the Company
at any time before the Optionee’s death. If no beneficiary was designated or if no designated beneficiary survives the Optionee,
then any vested and exercisable Options held by the Optionee may be exercised by his or her estate.

 

5.6          
Modification or Assumption of Options. Within the limitations of the Plan, the Administrator may modify, reprice, extend
or assume outstanding options or may accept the cancellation of outstanding options (whether granted by the Company or by another
issuer) in return for the grant of new Options for the same or a different number of shares and at the same or a different exercise
price or in return for the grant of a different type of Award. The foregoing notwithstanding, no modification of an Option shall,
without the consent of the Optionee, materially impair his or her rights or obligations under such Option.

 

5.7          
Buyout Provisions. The Administrator may at any time (a) offer to buy out for a payment in cash or cash equivalents
an Option previously granted or (b) authorize an Optionee to elect to cash out an Option previously granted, in either case
at such time and based upon such terms and conditions as the Administrator shall establish.

 

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5.8          
Payment for Option Shares. The entire Exercise Price of Common Shares issued upon exercise of Options shall be payable
in cash or cash equivalents at the time when such Common Shares are purchased. In addition, the Administrator may, in its sole
discretion and to the extent permitted by applicable law, accept payment of all or a portion of the Exercise Price through any
one or a combination of the following forms or methods:

 

(a)              
Subject to any conditions or limitations established by the Administrator, by surrendering, or attesting to the ownership
of, Common Shares that are already owned by the Optionee with a value on the date of surrender equal to the aggregate exercise
price of the Common Shares as to which such Option will be exercised;

 

(b)              
By delivering (on a form prescribed by the Company) an irrevocable direction to a securities broker approved by the Company
to sell all or part of the Common Shares being purchased under the Plan and to deliver all or part of the sales proceeds to the
Company;

 

(c)              
Subject to such conditions and requirements as the Administrator may impose from time to time, through a net exercise procedure;
or

 

(d)              
Through any other form or method consistent with applicable laws, regulations and rules.

 

ARTICLE 6. STOCK APPRECIATION RIGHTS.

 

6.1             
SAR Agreement. Each grant of a SAR under the Plan shall be evidenced by a SAR Agreement between the Optionee and the
Company. Such SAR shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent
with the Plan. The provisions of the various SAR Agreements entered into under the Plan need not be identical.

 

6.2             
Number of Shares. Each SAR Agreement shall specify the number of Common Shares to which the SAR pertains, which number
shall adjust in accordance with Article 9.

 

6.3             
Exercise Price. Each SAR Agreement shall specify the Exercise Price, which shall in no event be less than 100% of the
Fair Market Value of a Common Share on the date of grant. The preceding sentence shall not apply to a SAR that is a Substitute
Award granted in a manner that would satisfy the requirements of Code Section 409A.

 

6.4             
Exercisability and Term. Each SAR Agreement shall specify the date when all or any installment of the SAR is to become
vested and exercisable. The vesting and exercisability conditions applicable to the SAR may include service-based conditions, performance-based
conditions, such other conditions as the Administrator may determine, or any combination thereof. The SAR Agreement shall also
specify the term of the SAR; provided that except to the extent necessary to comply with applicable foreign law, the term of a
SAR shall not exceed 10 years from the date of grant. A SAR Agreement may provide for accelerated vesting and exercisability
upon certain specified events and may provide for expiration prior to the end of its term in the event of the termination of the
Optionee’s service.

 

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6.5             
Exercise of SARs. Upon exercise of a SAR, the Optionee (or any person having the right to exercise the SAR after his
or her death) shall receive from the Company (a) Common Shares, (b) cash or (c) a combination of Common Shares and
cash, as the Administrator shall determine. The amount of cash and/or the Fair Market Value of Common Shares received upon exercise
of SARs shall, in the aggregate, not exceed the amount by which the Fair Market Value (on the date of surrender) of the Common
Shares subject to the SARs exceeds the Exercise Price. If, on the date when a SAR expires, the Exercise Price is less than the
Fair Market Value on such date but any portion of such SAR has not been exercised or surrendered, then such SAR shall automatically
be deemed to be exercised as of such date with respect to such portion. A SAR Agreement may also provide for an automatic exercise
of the SAR on an earlier date.

 

6.6             
Death of Optionee. After an Optionee’s death, any vested and exercisable SARs held by such Optionee may be exercised
by his or her beneficiary or beneficiaries. Each Optionee may designate one or more beneficiaries for this purpose by filing the
prescribed form with the Company. A beneficiary designation may be changed by filing the prescribed form with the Company at any
time before the Optionee’s death. If no beneficiary was designated or if no designated beneficiary survives the Optionee,
then any vested and exercisable SARs held by the Optionee at the time of his or her death may be exercised by his or her estate.

 

6.7             
Modification or Assumption of SARs. Within the limitations of the Plan, the Administrator may modify, reprice, extend
or assume outstanding stock appreciation rights or may accept the cancellation of outstanding stock appreciation rights (whether
granted by the Company or by another issuer) in return for the grant of new SARs for the same or a different number of shares and
at the same or a different exercise price or in return for the grant of a different type of Award. The foregoing notwithstanding,
no modification of a SAR shall, without the consent of the Optionee, materially impair his or her rights or obligations under such
SAR.

 

ARTICLE 7. RESTRICTED SHARES.

 

7.1             
Restricted Stock Agreement. Each grant of Restricted Shares under the Plan shall be evidenced by a Restricted Stock
Agreement between the recipient and the Company. Such Restricted Shares shall be subject to all applicable terms of the Plan and
may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Restricted Stock Agreements
entered into under the Plan need not be identical.

 

7.2             
Payment for Awards. Restricted Shares may be sold or awarded under the Plan for such consideration as the Administrator
may determine, including (without limitation) cash, cash equivalents, property, cancellation of other equity awards, promissory
notes, past services and future services, and such other methods of payment as are permitted by applicable law.

 

7.3             
Vesting Conditions. Each Award of Restricted Shares may or may not be subject to vesting and/or other conditions as
the Administrator may determine. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified
in the Restricted Stock Agreement. Vesting conditions may include service-based conditions, performance-based conditions, such
other conditions as the Administrator may determine, or any combination thereof. A Restricted Stock Agreement may provide for accelerated
vesting upon certain specified events.

 

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7.4             
Voting and Dividend Rights. The holders of Restricted Shares awarded under the Plan shall have the same voting, dividend
and other rights as the Company’s other stockholders, unless the Administrator otherwise provides. A Restricted Stock Agreement,
however, may require that any cash dividends paid on Restricted Shares (a) be accumulated and paid when such Restricted Shares
vest, or (b) be invested in additional Restricted Shares. Such additional Restricted Shares shall be subject to the same conditions
and restrictions as the shares subject to the Award with respect to which the dividends were paid. In addition, unless the Administrator
provides otherwise, if any dividends or other distributions are paid in Common Shares, such Common Shares shall be subject to the
same restrictions on transferability and forfeitability as the Restricted Shares with respect to which they were paid.

 

7.5             
Modification or Assumption of Restricted Shares. Within the limitations of the Plan, the Administrator may modify or
assume outstanding Restricted Shares or may accept the cancellation of outstanding restricted shares (whether granted by the Company
or by another issuer) in return for the grant of new Restricted Shares for the same or a different number of shares or in return
for the grant of a different type of Award. The foregoing notwithstanding, no modification of Restricted Shares shall, without
the consent of the Participant, materially impair his or her rights or obligations under such Restricted Shares.

 

ARTICLE 8. RESTRICTED STOCK UNITS.

 

8.1             
Restricted Stock Unit Agreement. Each grant of Restricted Stock Units under the Plan shall be evidenced by a Restricted
Stock Unit Agreement between the recipient and the Company. Such Restricted Stock Units shall be subject to all applicable terms
of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Restricted
Stock Unit Agreements entered into under the Plan need not be identical.

 

8.2             
Payment for Awards. To the extent that an Award is granted in the form of Restricted Stock Units, no cash consideration
shall be required of the Award recipients.

 

8.3             
Vesting Conditions. Each Award of Restricted Stock Units may or may not be subject to vesting, as determined by the
Administrator. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Restricted
Stock Unit Agreement. Vesting conditions may include service-based conditions, performance-based conditions, such other conditions
as the Administrator may determine, or any combination thereof. A Restricted Stock Unit Agreement may provide for accelerated vesting
upon certain specified events.

 

8.4             
Voting and Dividend Rights. The holders of Restricted Stock Units shall have no voting rights. Prior to settlement or
forfeiture, Restricted Stock Unitsawarded under the Plan may, at the Administrator’s discretion, provide for a right to dividend
equivalents. Such right entitles the holder to be credited with an amount equal to all cash dividends paid on one Common Share
while the Restricted Stock Unit is outstanding. Dividend equivalents may be converted into additional Restricted Stock Units. Settlement
of dividend equivalents may be made in the form of cash, in the form of Common Shares, or in a combination of both. Prior to distribution,
any dividend equivalents shall be subject to the same conditions and restrictions as the Restricted Stock Units to which they attach.

 

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8.5             
Form and Time of Settlement of Restricted Stock Units. Settlement of vested Restricted Stock Units may be made in the
form of (a) cash, (b) Common Shares or (c) any combination of both, as determined by the Administrator. The actual
number of Restricted Stock Units eligible for settlement may be larger or smaller than the number included in the original Award,
based on predetermined performance factors. Methods of converting Restricted Stock Units into cash may include (without limitation)
a method based on the average value of Common Shares over a series of trading days. Vested Restricted Stock Units shall be settled
in such manner and at such time(s) as specified in the Restricted Stock Unit Agreement. Until an Award of Restricted Stock Units
is settled, the number of such Restricted Stock Units shall be subject to adjustment pursuant to Article 9.

 

8.6             
Death of Recipient. Any Restricted Stock Units that become payable after the recipient’s death shall be distributed
to the recipient’s beneficiary or beneficiaries. Each recipient of Restricted Stock Units under the Plan may designate one
or more beneficiaries for this purpose by filing the prescribed form with the Company. A beneficiary designation may be changed
by filing the prescribed form with the Company at any time before the Award recipient’s death. If no beneficiary was designated
or if no designated beneficiary survives the Award recipient, then any Restricted Stock Units that become payable after the recipient’s
death shall be distributed to the recipient’s estate.

 

8.7             
Modification or Assumption of Restricted Stock Units. Within the limitations of the Plan, the Administrator may modify
or assume outstanding restricted stock units or may accept the cancellation of outstanding restricted stock units (whether
granted by the Company or by another issuer) in return for the grant of new Restricted Stock Units for the same or a different
number of shares or in return for the grant of a different type of Award. The foregoing notwithstanding, no modification of a Restricted
Stock Unit shall, without the consent of the Participant, materially impair his or her rights or obligations under such Restricted
Stock Unit.

 

8.8             
Creditors’ Rights. A holder of Restricted Stock Units shall have no rights other than those of a general creditor
of the Company. Restricted Stock Units represent an unfunded and unsecured obligation of the Company, subject to the terms and
conditions of the applicable Restricted Stock Unit Agreement.

 

ARTICLE 9. ADJUSTMENTS; DISSOLUTIONS
AND LIQUIDATIONS; CORPORATE TRANSACTIONS.

 

9.1             
Adjustments. In the event of a subdivision of the outstanding Common Shares, a declaration of a dividend payable in
Common Shares, a combination or consolidation of the outstanding Common Shares (by reclassification or otherwise) into a lesser
number of Common Shares or any other increase or decrease in the number of issued Common Shares effected without receipt of consideration
by the Company, proportionate adjustments shall be made tothe following:

 

(a)              
The number and kind of shares available for issuance under Article 3, including the numerical share limits in Articles
3.1 and 3.2;

 

(b)              
The number and kind of shares covered by each outstanding Option, SAR and Restricted Stock Unit; and/or

 

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(c)              
The Exercise Price applicable to each outstanding Option and SAR, and the repurchase price, if any, applicable to Restricted
Shares.

 

In the event of a declaration
of an extraordinary dividend payable in a form other than Common Shares in an amount that has a material effect on the price of
Common Shares, a recapitalization, a spin-off or a similar occurrence, the Administrator may make such adjustments as it, in its
sole discretion, deems appropriate to the foregoing. Any adjustment in the number of shares subject to an Award under this Article 9.1
shall be rounded down to the nearest whole share, although the Administrator in its sole discretion may make a cash payment in
lieu of a fractional share. Except as provided in this Article 9, a Participant shall have no rights by reason of any issuance
by the Company of stock of any class or securities convertible into stock of any class, any subdivision or consolidation of shares
of stock of any class, the payment of any stock dividend or any other increase or decrease in the number of shares of stock of
any class. For the sake of clarity, a stock split, if any, conducted in connection with an initial public offering of the Company’s
common stock shall trigger an adjustment under this paragraph.

 

9.2             
Dissolution or Liquidation. To the extent not previously exercised or settled, Options, SARs and Restricted Stock Units
shall terminate immediately prior to the dissolution or liquidation of the Company.

 

9.3             
Corporate Transactions. In the event that the Company is a party to a merger, consolidation, or a Change in Control
(other than one described in Article 14.6(d)), all Common Shares acquired under the Plan and all Awards outstanding on the
effective date of the transaction shall be treated in the manner described in the definitive transaction agreement (or, in the
event the transaction does not entail a definitive agreement to which the Company is party, in the manner determined by the Administrator,
with such determination having final and binding effect on all parties), which agreement or determination need not treat all Awards
(or portions thereof) in an identical manner. Unless an Award Agreement provides otherwise, the treatment specified in the transaction
agreement or by the Administrator may include (without limitation) one or more of the following with respect to each outstanding
Award:

 

(a)              
The continuation of such outstanding Award by the Company (if the Company is the surviving entity);

 

(b)              
The assumption of such outstanding Award by the surviving entity or its parent, provided that the assumption of an Option
or a SAR shall comply with applicable tax requirements;

 

(c)              
The substitution by the surviving entity or its parent of an equivalent award for such outstanding Award (including, but
not limited to, an award to acquire the same consideration paid to the holders of Common Shares in the transaction), provided that
the substitution of an Option or a SAR shall comply with applicable tax requirements;

 

(d)              
In the case of an Option or SAR, the cancellation of such Award without payment of any consideration. An Optionee shall
be able to exercise his or her outstanding Option or SAR, to the extent such Option or SAR is then vested or becomes vested as
of the effective time of the transaction, during a period of not less than five full business days preceding the closing date of
the transaction, unless (i) a shorter period is required to permit a timely closing of the transaction and (ii) such
shorter period still offers the Optionee a reasonable opportunity to exercise such Option or SAR. Any exercise of such Option or
SAR during such period may be contingent on the closing of the transaction;

 

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(e)              
The cancellation of such Award and a payment to the Participant with respect to each share subject to the portion of the
Award that is vested or becomes vested as of the effective time of the transaction equal to the excess of (A) the value, as
determined by the Administrator in its absolute discretion, of the property (including cash) received by the holder of a Common
Share as a result of the transaction, over (if applicable) (B) the per-share Exercise Price of such Award (such excess,if
any, the “Spread”). Such payment shall be made in the form of cash, cash equivalents, or securities of the surviving
entity or its parent having a value equal to the Spread. In addition, any escrow, holdback, earn-out or similar provisions in the
transaction agreement may apply to such payment to the same extent and in the same manner as such provisions apply to the holders
of Common Shares. If the Spread applicable to an Award (whether or not vested) is zero or a negative number, then the Award may
be cancelled without making a payment to the Participant. In the event that an Award is subject to Code Section 409A, the
payment described in this clause (e) shall be made on the settlement date specified in the applicable Award Agreement, provided
that settlement may be accelerated in accordance with Treasury Regulation Section 1.409A-3(j)(4); or

 

(f)               
The assignment of any reacquisition or repurchase rights held by the Company in respect of an Award of Restricted Shares
to the surviving entity or its parent, with corresponding proportionate adjustments made to the price per share to be paid upon
exercise of any such reacquisition or repurchase rights.

 

Unless an Award Agreement provides otherwise,
each outstanding Award held by a Participant who remains a Service Provider as of the effective time of a merger, consolidation
or Change in Control (other than one described in Article 14.6(d)) (a “Current Participant”) shall become
fully vested and, if applicable, exercisable immediately prior to the effective time of the transaction. However, the prior sentence
shall not apply, and an outstanding Award shall not become vested and, if applicable, exercisable,
if and to the extent the Award is continued, assumed or substituted as provided for in clauses (a), (b) or (c) above.
In addition, the prior two sentences shall not apply to an Award held by a Participant who is not a Current Participant,
unless an Award Agreement provides otherwise or unless the Company and the acquirer agree otherwise.

 

For avoidance of doubt, the Administrator
shall have the discretion, exercisable either at the time an Award is granted or at any time while the Award remains outstanding,
to provide for the acceleration of vesting upon the occurrence of a Change in Control, whether or not the Award is to be assumed
or replaced in the transaction, or in connection with a termination of the Participant’s service following a transaction.

 

Any action taken under this Article 9.3
shall either preserve a Award’s status as exempt from Code Section 409A or comply with Code Section 409A.

 

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ARTICLE 10. OTHER AWARDS.

 

Subject in all events
to the limitations under Article 3 above as to the number of Common Shares available for issuance under this Plan, the Company
may grant other forms of Awards not specifically described herein and may grant awards under other plans or programs, where such
awards are settled in the form of Common Shares issued under this Plan. Such Common Shares shall be treated for all purposes under
the Plan like Common Shares issued in settlement of Restricted Stock Units and shall, when issued, reduce the number of Common
Shares available under Article 3.

 

ARTICLE 11. LIMITATION ON RIGHTS.

 

11.1         
Retention Rights. Neither the Plan nor any Award granted under the Plan shall be deemed to give any individual a right
to remain a Service Provider. The Company and its Parents, Subsidiaries and Affiliates reserve the right to terminate the service
of any Service Provider at any time, with or without cause, subject to applicable laws, the Company’s certificate of incorporation
and by-laws and a written employment agreement (if any).

 

11.2         
Stockholders’ Rights. Except as set forth in Article 7.4 or 8.4 above, a Participant shall have no dividend
rights, voting rights or other rights as a stockholder with respect to any Common Shares covered by his or her Award prior to the
time when a stock certificate for such Common Shares is issued or, if applicable, the time when he or she becomes entitled to receive
such Common Shares by filing any required notice of exercise and paying any required Exercise Price. No adjustment shall be made
for cash dividends or other rights for which the record date is prior to such time, except as expressly provided in the Plan.

 

11.3         
Regulatory Requirements. Any other provision of the Plan notwithstanding, the obligation of the Company to issue Common
Shares under the Plan shall be subject to all applicable laws, rules and regulations and such approval by any regulatory body as
may be required. The Company reserves the right to restrict, in whole or in part, the delivery of Common Shares pursuant to any
Award prior to the satisfaction of all legal requirements relating to the issuance of such Common Shares, to their registration,
qualification or listing or to an exemption from registration, qualification or listing. The inability of the Company to obtain
authority from any regulatory body having jurisdiction, which authority is deemed necessary by the Company’s counsel to be
necessary to the lawful issuance and sale of any Common Shares hereunder, will relieve the Company of any liability in respect
of the failure to issue or sell such Common Shares as to which such requisite authority will not have been obtained.

 

11.4         
Transferability of Awards. The Administrator may, in its sole discretion, permit transfer of an Award in a manner consistent
with applicable law. Unless otherwise determined by the Administrator, Awards shall be transferable by a Participant only by (a) beneficiary
designation, (b) a will or (c) the laws of descent and distribution; provided that, in any event, an
ISO may only be transferred by will or by the laws of descent and distribution and may be exercised during the lifetime of the
Optionee only by the Optionee or by the Optionee’s guardian or legal representative

 

    11

     

    

 

11.5         
Recoupment Policy. All Awards granted under the Plan, all amounts paid under the Plan and all Common Shares issued under
the Plan shall be subject to recoupment, clawback or recovery by the Company in accordance with applicable law and with Company
policy (whenever adopted) regarding same, whether or not such policy is intended to satisfy the requirements of the Dodd-Frank
Wall Street Reform and Consumer Protection Act, the Sarbanes-Oxley Act, or other applicable law, as well as any implementing regulations
and/or listing standards thereunder.

 

11.6         
Other Conditions and Restrictions on Common Shares. Any Common Shares issued under the Plan shall be subject to such
forfeiture conditions, rights of repurchase, rights of first refusal, other transfer restrictions and such other terms and conditions
as the Administrator may determine. Such conditions and restrictions shall be set forth in the applicable Award Agreement and shall
apply in addition to any restrictions that may apply to holders of Common Shares generally. In addition, Common Shares issued under
the Plan shall be subject to such conditions and restrictions imposed either by applicable law or by Company policy, as adopted
from time to time, designed to ensure compliance with applicable law or laws with which the Company determines in its sole discretion
to comply including in order to maintain any statutory, regulatory or tax advantage.

 

ARTICLE 12. TAXES.

 

12.1         
General. It is a condition to eachAward under the Plan that a Participant or his or her successor shall make arrangements
satisfactory to the Company for the satisfaction of any federal, state, local or foreign withholding tax obligations that arise
in connection with any Award granted under the Plan. The Company shall not be required to issue any Common Shares or make any cash
payment under the Plan unlesssuch obligations are satisfied.

 

12.2         
Share Withholding. To the extent that applicable law subjects a Participant to tax withholding obligations, the Administrator
may permit such Participant to satisfy all or part of such obligations by having the Company withhold all or a portion of any Common
Shares that otherwise would be issued to him or her or by surrendering all or a portion of any Common Shares that he or she previously
acquired. Such Common Shares shall be valued on the date when they are withheld or surrendered. Any payment of taxes by assigning
Common Shares to the Company may be subject to restrictions including any restrictions required by SEC, accounting or other rules.

 

12.3         
Section 409A Matters. Except as otherwise expressly set forth in an Award Agreement, it is intended that Awards
granted under the Plan either be exempt from, or comply with, the requirements of Code Section 409A. To the extent an Award
is subject to Code Section 409A (a “409A Award”), the terms of the Plan, the Award and any written agreement
governing the Award shall be interpreted to comply with the requirements of Code Section 409A so that the Award is not subject
to additional tax or interest under Code Section 409A, unless the Administrator expressly provides otherwise. A 409A Award
shall be subject to such additional rules and requirements as specified by the Administrator from time to time in order for it
to comply with the requirements of Code Section 409A. In this regard, if any amount under a 409A Award is payable upon a “separation
from service” to an individual who is considered a “specified employee” (as each term is defined under Code Section 409A),
then no such payment shall be made prior to the date that is the earlier of (i) six months and one day after the Participant’s
separation from service or (ii) the Participant’s death, but only to the extent such delay is necessary to prevent such
payment from being subject to Code Section 409A(a)(1).

 

    12

     

    

 

12.4         
Limitation on Liability. Neither the Company nor any person serving as Administrator shall have any liability to a Participant
in the event an Award held by the Participant fails to achieve its intended characterization under applicable tax law.

 

ARTICLE 13. FUTURE OF THE PLAN.

 

13.1         
Term of the Plan. The Plan, as set forth herein, shall become effective on date of its adoption by the Board, subject
to approval of the Company’s stockholders under Article 13.3 below. The Plan shall terminate automatically 10 years
after the date when the Board adopted the Plan.

 

13.2         
Amendment or Termination. The Board may, at any time and for any reason, amend or terminate the Plan. No Awards shall
be granted under the Plan after the termination thereof. The termination of the Plan, or any amendment thereof, shall not affect
any Award previously granted under the Plan.

 

13.3         
Stockholder Approval. To the extent required by applicable law, the Plan will be subject to the approval of the Company’s
stockholders within 12 months of its adoption date. An amendment of the Plan shall be subject to the approval of the Company’s
stockholders only to the extent required by applicable laws, regulations or rules.

 

ARTICLE 14. DEFINITIONS.

 

14.1         
“Administrator” means
the Board or any Committee administering the Plan in accordance with Article 2.

 

14.2         
“Affiliate”
means any entity other than a Subsidiary, if the Company and/or one or more Subsidiaries own not less than 50% of such entity.

 

14.3         
“Award”
means any award granted under the Plan, including as an Option, a SAR, a Restricted Share award, a Restricted Stock Unit award
or another form of equity-based compensation award.

 

14.4         
“Award Agreement”
means a Stock Option Agreement, a SAR Agreement, a Restricted Stock Agreement, a Restricted Stock Unit Agreement or such other
agreement evidencing an Award granted under the Plan.

 

14.5         
“Board”
means the Company’s Board of Directors, as constituted from time to time and, where the context so requires, reference to
the “Board” may refer to a Committee to whom the Board has delegated authority to administer any aspect of this Plan.

 

14.6         
“Business Combination Date”
means the date of the closing of the merger, as contemplated by that agreement and plan of merger, dated as of July 2, 2020,
by and among Graf Industrial Corp., a Delaware corporation, VL Merger Sub Inc., a Delaware corporation, and Velodyne LiDAR, Inc.,
a Delaware corporation.

 

    13

     

    

 

14.7         
“Change in Control”
means:

 

(a)              
Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial
owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing
more than fifty percent (50%) of the total voting power represented by the Company’s then-outstanding voting securities;

 

(b)              
The consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets;

 

(c)              
The consummation of a merger or consolidation of the Company with or into any other entity, other than a merger or consolidation
which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either
by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) more than fifty percent
(50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding
immediately after such merger or consolidation; or

 

(d)              
Individuals who are members of the Board (the “Incumbent Board”) cease for any reason to constitute at
least a majority of the members of the Board over a period of 12 months; provided, however, that if the appointment or election
(or nomination for election) of any new Board member was approved or recommended by a majority vote of the members of the Incumbent
Board then still in office, such new member shall, for purposes of this Plan, be considered as a member of the Incumbent Board.

 

A transaction shall
not constitute a Change in Control if its sole purpose is to change the state of the Company’s incorporation or to create
a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities
immediately before such transaction. In addition, if a Change in Control constitutes a payment event with respect to any Award
which provides for a deferral of compensation and is subject to Code Section 409A, then notwithstanding anything to the contrary
in the Plan or applicable Award Agreement the transaction with respect to such Award must also constitute a “change in control
event” as defined in Treasury Regulation Section 1.409A-3(i)(5) to the extent required by Code Section 409A.

 

14.8         
“Code”
means the Internal Revenue Code of 1986, as amended.

 

14.9         
“Committee”
means a committee of one or more members of the Board, or of other individuals satisfying applicable laws, appointed by the Board
to administer the Plan.

 

14.10     
“Common Share”
means one share of the Company’s common stock.

 

14.11     
“Company”
means Velodyne LiDAR, Inc., a Delaware corporation.

 

14.12     
“Consultant”
means a consultant or adviser who provides bona fide services to the Company, a Parent, a Subsidiary or an Affiliate
as an independent contractor and who qualifies as a consultant or advisor under Instruction A.1.(a)(1) of Form S-8 under the Securities
Act.

 

    14

     

    

 

14.13     
“Employee” means a common-law
employee of the Company, a Parent, a Subsidiary or an Affiliate.

 

14.14     
“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

14.15     
“Exercise Price,”
in the case of an Option, means the amount for which one Common Share may be purchased upon exercise of such Option, as specified
in the applicable Stock Option Agreement. “Exercise Price,” in the case of a SAR, means an amount, as specified in
the applicable SAR Agreement, which is subtracted from the Fair Market Value of one Common Share in determining the amount payable
upon exercise of such SAR.

 

14.16     
“Fair Market Value”
means the closing price of a Common Share on any established stock exchange or a national market system on the applicable date
or, if the applicable date is not a trading day, on the last trading day prior to the applicable date, as reported in a source
that the Administrator deems reliable. If Common Shares are not traded on an established stock exchange or a national market system,
the Fair Market Value shall be determined by the Administrator in good faith on such basis as it deems appropriate. The Administrator’s
determination shall be conclusive and binding on all persons. Notwithstanding the foregoing, the determination of Fair Market Value
in all cases shall be in accordance with the requirements set forth under Section 409A of the Code to the extent necessary
for an Award to comply with, or be exempt from, Section 409A of the Code.

 

14.17     
“ISO”
means an incentive stock option described in Code Section 422(b).

 

14.18     
“NSO”
means a stock option not described in Code Sections 422 or 423.

 

14.19     
“Option”
means an ISO or NSO granted under the Plan and entitling the holder to purchase Common Shares.

 

14.20     
“Optionee”
means an individual or estate holding an Option or SAR.

 

14.21     
“Outside Director”
means a member of the Board who is not an Employee.

 

14.22     
“Parent”
means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations
other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the
other corporations in such chain. A corporation that attains the status of a Parent on a date after the adoption of the Plan shall
be considered a Parent commencing as of such date.

 

14.23     
“Participant”
means an individual or estate holding an Award.

 

14.24     
“Plan”
means this Velodyne LiDAR, Inc. 2020 Equity Incentive Plan, as amended from time to time.

 

14.25     
“Predecessor Plan”
means the Company’s 2016 Stock Plan or the Company’s 2007 Incentive Stock Plan.

 

14.26     
“Restricted Share”
means a Common Share awarded under the Plan.

 

    15

     

    

 

14.27     
“Restricted Stock Agreement”
means the agreement consistent with the terms of the Plan between the Company and the recipient of a Restricted Share that contains
the terms, conditions and restrictions pertaining to such Restricted Share.

 

14.28     
“Restricted Stock Unit”
means a bookkeeping entry representing the equivalent of one Common Share, as awarded under the Plan.

 

14.29     
“Restricted Stock Unit Agreement”
means the agreement consistent with the terms of the Plan between the Company and the recipient of a Restricted Stock Unit that
contains the terms, conditions and restrictions pertaining to such Restricted Stock Unit.

 

14.30     
“SAR”
means a stock appreciation right granted under the Plan.

 

14.31     
“SAR Agreement”
means the agreement consistent with the terms of the Plan between the Company and an Optionee that contains the terms, conditions
and restrictions pertaining to his or her SAR.

 

14.32     
“Securities Act”
means the Securities Act of 1933, as amended.

 

14.33     
“Service Provider”
means any individual who is an Employee, Outside Director or Consultant, including any prospective Employee, Outside Director or
Consultant who have accepted offers of employment or service and would be an Employee, Outside Director or Consultant after the
commencement of their service.

 

14.34     
“Stock Option Agreement”
means the agreement between the Company and an Optionee that contains the terms, conditions and restrictions pertaining to his
or her Option.

 

14.35     
“Subsidiary”
means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the
corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Subsidiary
on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date.

 

14.36     
“Substitute Awards”
means Awards or Common Shares issued by the Company in assumption of, or substitution or exchange for, awards previously granted,
or the right or obligation to make future awards, in each case by a corporation acquired by the Company or any Affiliate or with
which the Company or any Affiliate combines to the extent permitted by the applicable exchange listing requirements.

 

    16Exhibit 10.3

 

Velodyne
Lidar, Inc.

 

2020
Employee Stock Purchase Plan

 

(As
Adopted Effective on September 29, 2020) 

 

     

     

    

 

Velodyne
Lidar, Inc.

 

2020
Employee Stock Purchase Plan

 

SECTION
1. PURPOSE OF THE PLAN.

 

The
Board adopted the Plan on September 13, 2020 and it became effective upon its approval by the Company’s stockholders on
September 29, 2020. The purpose of the Plan is to provide Eligible Employees with an opportunity to increase their proprietary
interest in the success of the Company by purchasing Stock from the Company on favorable terms and to pay for such purchases through
payroll deductions or other approved contributions.

 

SECTION
2. ADMINISTRATION OF THE PLAN.

 

(a)           General.
The Plan may be administered by the Board or one or more Committees. Each Committee shall comply with rules and regulations applicable
to it, including under the rules of any exchange on which the Stock is traded, and shall have the authority and be responsible
for such functions as have been assigned to it.

 

(b)           Powers
of the Administrator. Subject to the terms of the Plan, and in the case of a Committee,
subject to the specific duties delegated to the Committee, the Administrator shall interpret the Plan and make all other policy
decisions relating to the operation of the Plan. The Administrator may adopt such rules, guidelines and forms as it deems appropriate
to implement the Plan.

 

(c)           Effects
of Administrator’s Decisions. The Administrator’s decisions, determinations
and interpretations shall be final and binding on all interested parties.

 

(d)           Governing
Law. The Plan shall be governed by, and construed in accordance with, the laws of the
State of Delaware (except its choice of law provisions).

 

SECTION
3. STOCK OFFERED UNDER THE PLAN.

 

(a)           Authorized
Shares. The number of shares of Stock available for purchase under the Plan shall be
3,492,097 shares of the Company’s Stock (subject to adjustment pursuant to Subsection (c) below), plus the additional
shares described in Subsection (b) below. Shares of Stock issued pursuant to the Plan may be authorized but unissued shares or
treasury shares.

 

(b)           Annual
Increase in Shares. On the first day of each fiscal year of the Company during the term
of the Plan, commencing on January 1, 2021 and ending on (and including) January 1, 2040, the aggregate number of shares of Stock
that may be issued under the Plan shall automatically increase by a number equal to the least of (i) one percent (1%) of the total
number of shares of Stock actually issued and outstanding on the last day of the preceding fiscal year, (ii) 2,500,000 shares
of Stock (subject to adjustment pursuant to Subsection (c) below), or (iii) a number of shares of Stock determined by the
Board.

 

     

     

    

 

(c)           Anti-Dilution
Adjustments. In the event that any dividend or other distribution (whether in the form
of cash, stock or other securities or other property), recapitalization, stock split, reverse stock split, reorganization, merger,
consolidation, split-up, spin-off, combination, reclassification, repurchase, or exchange of Stock or other securities of the
Company, or other similar change in the corporate structure of the Company affecting the Stock and effected without receipt or
payment of consideration by the Company occurs, then in order to prevent dilution or enlargement of the benefits or potential
benefits intended to be made available under the Plan, there will be a proportionate adjustment of the number and class of Stock
that may be delivered under the Plan, the Purchase Price per share and the number and class of Stock covered by each option under
the Plan which has not yet been exercised, and the numerical limits of Sections 3(a), 3(b)(ii) and 9(c).

 

(d)           Reorganizations.
In the event of a Corporate Reorganization, the outstanding rights to purchase Stock under any Offering Period then in progress
may be continued, assumed or substituted by the surviving entity or its parent. If such acquirer refuses to continue, assume or
substitute for any such rights, then a new Purchase Date for such Offering Period(s) will be set prior to the effective time of
the Corporate Reorganization, the Participants’ accumulated contributions will be applied to purchase Stock on such date,
and any such Offering Periods shall terminate immediately after such purchase. In the event a new Purchase Date is set under this
Section 3(d), Participants will be given notice of the new Purchase Date. The Plan shall in no event be construed to restrict
in any way the Company’s right to undertake a dissolution, liquidation, merger, consolidation or other reorganization.

 

SECTION
4. ENROLLMENT AND PARTICIPATION.

 

(a)           Offering
Periods and Purchase Periods.

 

(i)                  Base
Offering Periods. The Committee may establish Offering Periods of such frequency and duration as it may deem appropriate (the
 “Base Offering Periods”); provided that a Base Offering Period shall in no event be longer than 27 months (or
such other period as may be imposed under applicable tax law). The Base Offering Periods are intended to qualify under Code Section
423. Unless changed by the Committee, the Plan shall operate such that two Base Offering Periods, each of twelve months’
duration and each including two six-month Purchase Periods, may operate simultaneously commencing at such time and under such
conditions as the Committee may determine.

 

(ii)                 Additional
Offering Periods. At the discretion of the Administrator, additional Offering Periods (the “Additional Offering Periods”)
may be conducted under the Plan including, if necessary or advisable in the sole discretion of the Administrator, under a separate
sub-plan or sub-plans, permitting grants to Eligible Employees of certain Participating Companies (each, a “Sub-Plan”).
Such Additional Offering Periods may be designed to achieve desired tax objectives in particular locations outside the United
States or to comply with local laws applicable to offerings in such foreign jurisdictions and will not be intended to qualify
under Code Section 423. Additional Offering Periods may run concurrent to the Base Offering Periods. Alternatively, the Administrator
may determine a different commencement and duration of an Additional Offering Period, and Additional Offering Periods may be consecutive
or overlapping. The other terms and conditions of each Additional Offering Period shall be those set forth in this Plan document
or in terms and conditions approved by the Administrator with respect to such Additional Offering Period (whether or not set forth
in a written Sub-Plan), with such changes or additional features as the Administrator determines. Each Additional Offering Period
(whether or not set forth in a written Sub-Plan) shall be considered a separate plan from the Plan (the “Statutory Plan”).
The total number of Shares authorized to be issued under the Plan as provided in Section 3 above applies in the aggregate to the
Statutory Plan and any Additional Offering Period. Unless otherwise superseded by the terms and conditions approved by the Administrator
with respect to an Additional Offering Period, the provisions of this Plan document shall govern the operation of any offering
conducted hereunder.

 

     

     

    

 

(iii)                Separate
Offerings. Each Base Offering Period and each Additional Offering Period conducted under the Plan is intended to constitute
a separate “offering” for purposes of Code Section 423.

 

(iv)                Equal
Rights and Privileges. To the extent an Offering Period is intended to qualify under Code Section 423, all participants in
such Offering Period shall have the same rights and privileges with respect to their participation in such Offering Period in
accordance with Code Section 423 and the regulations thereunder except for differences that may be mandated by local law and are
consistent with the requirements of Code Section 423(b)(5).

 

(b)           Enrollment.
In the case of any individual who qualifies as an Eligible Employee on the first day
of any Offering Period, he or she may elect to become a Participant on such day by filing the prescribed enrollment form with
the Company. The enrollment form shall be filed in the prescribed manner during the applicable Enrollment Period for such Offering
Period. The Committee may establish other procedures for enrollment by Eligible Employees.

 

(c)           Duration
of Participation. Once enrolled in the Plan, a Participant shall continue to participate
in the Plan until he or she:

 

(i) 
 Reaches the end of the Offering Period or Purchase Period, as applicable, in which his or her employee contributions were
discontinued under Section 5(c) or 9(b);

 

(ii)                 Is
deemed to withdraw from the Plan under Subsection (b) above;

 

(iii)                Withdraws
from the Plan under Section 6(a); or

 

(iv)                Ceases
to be an Eligible Employee.

 

     

     

    

 

A Participant
whose employee contributions were discontinued automatically under Section 9(b) shall automatically resume participation
as described therein. In all other cases, a former Participant may again become a Participant, if he or she then is an Eligible
Employee, by following the procedure described in Subsection (b) above.

 

(d)           Applicable
Offering Period. For purposes of calculating the Purchase Price under Section 8(b), the
applicable Offering Period shall be determined as follows:

 

(i)                  Once
a Participant is enrolled in the Plan for an Offering Period, such Offering Period shall continue to apply to him or her until
the earliest of (A) the end of such Offering Period, (B) the end of his or her participation under Subsection (d) above, or (C)
re-enrollment for a subsequent Offering Period under Paragraph (ii) or (iii) below.

 

(ii)                 Any
other provision of the Plan notwithstanding, the Administrator (at its sole discretion) may determine prior to the commencement
of any new Offering Period that all Participants shall be re-enrolled for such new Offering Period.

 

(iii)                When
a Participant reaches the end of an Offering Period but his or her participation is to continue, then such Participant shall automatically
be re-enrolled for the Offering Period that commences immediately after the end of the prior Offering Period.

 

SECTION
5. EMPLOYEE CONTRIBUTIONS.

 

(a)           Commencement
of Payroll Deductions. A Participant may purchase shares of Stock under the Plan by means
of payroll deductions or (if so approved by the Administrator with respect to all Participants in an Offering Period) other approved
contributions in form and substance satisfactory to the Administrator. Payroll deductions or other approved contributions shall
commence as soon as reasonably practicable after the Company has received the prescribed enrollment form by the end of the Enrollment
Period. In jurisdictions where payroll deductions are not permitted under local law, Participants may purchase shares of Stock
by making contributions in the form that is acceptable and approved by the Administrator.

 

(b)           Amount
of Payroll Deductions. An Eligible Employee shall designate on the prescribed enrollment
form the portion of his or her Compensation that he or she elects to have withheld for the purchase of Stock. Such portion shall
be a whole percentage of the Eligible Employee’s Compensation, but not less than 1% nor more than 15%.

 

(c)           Reducing
Withholding Rate or Discontinuing Payroll Deductions. If a Participant wishes to reduce
his or her rate of payroll withholding, such Participant may do so by filing a new enrollment form with the Company in the manner
prescribed by the Administrator. The new withholding rate shall be effective as soon as reasonably practicable after the Company
has received such form. The new withholding rate may be 0% or any whole percentage of the Participant’s Compensation, but
not more than his or her old withholding rate. No Participant shall make more than one election under this Subsection (c)
during any Purchase Period. (In addition, employee contributions may be discontinued automatically pursuant to Section 9(b).)

 

     

     

    

 

(d)           Increasing
Withholding Rate. If a Participant wishes to increase his or her rate of payroll withholding,
such Participant may do so by filing a new enrollment form with the Company during the applicable Enrollment Period. The new withholding
rate may be effective on the first day of the next-upcoming Offering Period in which the Participant participates. The new withholding
rate may be any whole percentage of the Participant’s Compensation, but not less than 1% nor more than 15%. An increase
in a Participant’s rate of payroll withholding may not take effect during an ongoing Offering Period.

 

SECTION
6. WITHDRAWAL FROM THE PLAN.

 

(a)           Withdrawal.
A Participant may elect to withdraw from the Offering Period in which he or she is participating by filing the prescribed form
with the Company in the prescribed manner at least fifteen (15) calendar days prior to a Purchase Date (or such other period as
is specified by the Administrator). As soon as reasonably practicable thereafter, payroll deductions or other approved contributions
shall cease and the entire amount credited to the Participant’s Plan Account with respect to such Offering Period shall
be refunded to him or her in cash, without interest (except as otherwise required by the laws of the local jurisdiction). No partial
withdrawals from an Offering Period shall be permitted.

 

(b)           Re-Enrollment
After Withdrawal. A former Participant who has withdrawn from the Plan shall not be a
Participant until he or she re-enrolls in the Plan under Section 4(b) during an Enrollment Period. Re-enrollment may be effective
only at the commencement of an Offering Period.

 

SECTION
7. CHANGE IN EMPLOYMENT STATUS.

 

(a)           Termination
of Employment. Termination of employment as an Eligible Employee for any reason, including
death, shall be treated as an automatic withdrawal from the Plan under Section 6(a).

 

(b)           Transfers
of Employment. If a Participant transfers employment from a Participating Company that
is participating in a Base Offering Period to a Participating Company that is participating in an Additional Offering Period,
he or she will immediately cease to participate in the Base Offering Period, as applicable; however, such Participant’s
Plan Account will be transferred to the Additional Offering Period, and such Participant will immediately join such Additional
Offering Period on the terms and conditions applicable to such Additional Offering Period, except for any modifications required
by applicable law. If a Participant transfers employment from a Participating Company that is participating in an Additional Offering
Period to a Participating Company that is participating in the Base Offering Period, he or she will continue to participate in
the Additional Offering Period until the earlier of (i) the end of such Additional Offering Period, or (ii) the commencement of
the first Base Offering Period in which he or she is eligible. If a Participant transfers employment from a Participating Company
to a Related Corporation that is not a Participating Company, he or she shall be deemed to have withdrawn from the Plan pursuant
to Section 6(a).

 

     

     

    

 

(c)           Leave
of Absence. For purposes of the Plan, employment shall not be deemed to terminate when
the Participant goes on a military leave, a sick leave or another bona fide leave of absence, if the leave was approved
by the Company in writing. Employment, however, shall be deemed to terminate on the first day following three months after the
Participant goes on a leave, unless a contract or statute guarantees his or her right to return to work. Employment shall be deemed
to terminate in any event when the approved leave ends, unless the Participant immediately returns to work.

 

(d)           Death.
In the event of the Participant’s death, the amount credited to his or her Plan Account shall be paid in cash, without interest
(unless otherwise required by the laws of the local jurisdiction), to a beneficiary designated by him or her for this purpose
on the prescribed form or, if none, to the Participant’s estate. Such form shall be valid only if it was filed with the
Company in the prescribed manner before the Participant’s death.

 

SECTION
8. PLAN ACCOUNTS AND PURCHASE OF SHARES.

 

(a)           Plan
Accounts. The Company shall maintain a Plan Account on its books in the name of each
Participant. Whenever an amount is deducted from the Participant’s Compensation under the Plan, such amount shall be credited
to the Participant’s Plan Account. Unless otherwise required by the laws of the local jurisdiction, (i) amounts credited
to Plan Accounts shall not be trust funds and may be commingled with the Company’s general assets and applied to general
corporate purposes, and (ii) no interest shall be credited to Plan Accounts.

 

(b)           Purchase
Price. The Purchase Price for each share of Stock purchased on a Purchase Date shall
be the lower of:

 

(i)        85%
of the Fair Market Value of such share on the first trading day of such Offering Period; or

 

(ii)       85%
of the Fair Market Value of such share on the Purchase Date.

 

(c)           Number
of Shares Purchased. On each Purchase Date, each Participant shall be deemed to have
elected to purchase the number of shares of Stock calculated in accordance with this Subsection (c), unless the Participant
has previously elected to withdraw from the Offering Period in accordance with Section 6(a). The amount then in the Participant’s
Plan Account shall be divided by the Purchase Price, and the number of shares that results shall be purchased from the Company
with the funds in the Participant’s Plan Account. The foregoing number of shares of Stock that may be purchased by a Participant
are subject to the limitations set forth in Subsection (d) below and in Section 9. The Administrator may determine with respect
to all Participants that any fractional share, as calculated under this Subsection (c), shall be (i) rounded down to
the next lower whole share or (ii) credited as a fractional share.

 

     

     

    

 

(d)           Available
Shares Insufficient. In the event that the aggregate number of shares that all Participants
elect to purchase with respect to a particular Purchase Period exceeds (i) the number of shares of Stock that were available under
Section 3 above for sale under the Plan on the first day of the applicable Offering Period, or (ii) the number of shares that
were available under Section 3 above for sale under the Plan on the applicable Purchase Date, then the number of shares to which
each Participant is entitled shall be determined by multiplying the number of shares available for issuance by a fraction. The
numerator of such fraction is the number of shares that such Participant has elected to purchase, and the denominator of such
fraction is the number of shares that all Participants have elected to purchase. The Company may make a pro rata allocation of
the shares available on the first day of an applicable Offering Period pursuant to the preceding sentence, notwithstanding any
authorization of additional shares for issuance under the Plan by the Company’s stockholders subsequent to such date. In
the event of a pro-rata allocation under this Section (d), the Administrator may determine in its discretion to continue all Offering
Periods then in effect or terminate all Offering Periods then in effect pursuant to Section 14.

 

(e)           Issuance
of Stock. The shares of Stock purchased by a Participant under the Plan will be registered
in the name of such Participant. The Company may permit or require that shares be deposited directly with a broker designated
by the Company or to a designated agent of the Company, and the Company may utilize electronic or automated methods of share transfer.
The Company may require that shares be retained with such broker or agent for a designated period of time and/or may establish
other procedures to permit tracking of disqualifying dispositions of such shares. (The two preceding sentences shall apply whether
or not the Participant is required to pay income tax in the United States.)

 

(f)            Tax
Withholding. To the extent required by applicable U.S. or non-U.S. federal, state or
local law, a Participant shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations
that arise in connection with the Plan. The Company shall not be required to issue any shares of Stock under the Plan until such
obligations, if any, are satisfied.

 

(g)           Unused
Cash Balances. Subject to the final sentence of Section 8(c), an amount remaining in
the Participant’s Plan Account that represents the Purchase Price for any fractional share shall be refunded in cash, without
interest (except as otherwise required by the laws of the local jurisdiction), to the Participant promptly following a Purchase
Date. Any amount remaining in the Participant’s Plan Account that represents the Purchase Price for whole shares that could
not be purchased by reason of Subsections (c) or (d) above or Section 9(b) shall be refunded to the Participant in cash,
without interest (except as otherwise required by the laws of the local jurisdiction).

 

(h)           Stockholder
Approval. Any other provision of the Plan notwithstanding, no shares of Stock shall be
purchased under the Plan unless and until the Company’s stockholders have approved the adoption of the Plan.

 

     

     

    

 

SECTION
9. PLAN LIMITATIONS.

 

(a)           Five
Percent Limit. Any other provision of the Plan notwithstanding, no Participant shall
be granted a right to purchase Stock under the Plan if, immediately after such right is granted, such Participant would own stock
possessing 5% or more of the total combined voting power or value of all classes of stock of the Company or any Related Corporation,
applying the stock attribution rules of Code Section 424(d), and including any stock in which the Participant may purchase under
outstanding options as stock owned by such Participant.

 

(b)           Dollar
Limit. As specified by Code Section 423(b)(8), no Participant shall be entitled to accrue
rights to purchase Stock pursuant to any such rights outstanding under the Plan if and to the extent such accrual, when aggregated
with (i) rights to purchase Stock accrued under any other right to purchase Stock under the Plan, and (ii) similar rights accrued
under other employee stock purchase plans (within the meaning of Code Section 423) of the Company or any Related Corporation,
would otherwise permit such Participant to purchase more than $25,000 worth of Stock of the Company or any Related Corporation
(determined on the basis of the Fair Market Value per share on the date such rights are granted, and which, with respect to the
Plan, will be determined as of the beginning of the respective Offering Period) for each calendar year such rights are at any
time outstanding.

 

If
a Participant is precluded by this Subsection (b) from purchasing additional Stock under the Plan, then his or her employee
contributions shall automatically be discontinued and shall automatically resume at the beginning of the next Purchase Period
with a scheduled Purchase Date in the next calendar year, provided that he or she is an Eligible Employee at the beginning of
such Purchase Period.

 

(c)           Purchase
Period Share Purchase Limit. Any other provision of the Plan notwithstanding, no Participant
shall purchase more than 3,000 shares of Stock with respect to any Purchase Period; provided that the Administrator may, for future
Offering Periods, increase or decrease in its absolute discretion, the maximum number of shares of Stock that a Participant may
purchase during each Purchase Period.

 

SECTION
10. RIGHTS NOT TRANSFERABLE.

 

The
rights of any Participant under the Plan, or any Participant’s interest in any Stock or moneys to which he or she may be
entitled under the Plan, shall not be transferable by voluntary or involuntary assignment or by operation of law, or in any other
manner other than by beneficiary designation or the laws of descent and distribution. If a Participant in any manner attempts
to transfer, assign or otherwise encumber his or her rights or interest under the Plan, other than by beneficiary designation
or the laws of descent and distribution, then such act shall be treated as an election by the Participant to withdraw from the
Plan under Section 6(a).

 

SECTION
11. NO RIGHTS AS AN EMPLOYEE.

 

Nothing
in the Plan or in any right granted under the Plan shall confer upon the Participant any right to continue in the employ of a
Participating Company for any period of specific duration or interfere with or otherwise restrict in any way the rights of the
Participating Companies or of the Participant, which rights are hereby expressly reserved by each, to terminate his or her employment
at any time and for any reason, with or without cause.

 

     

     

    

 

SECTION
12. NO RIGHTS AS A STOCKHOLDER.

 

A
Participant shall have no rights as a stockholder with respect to any shares of Stock that he or she may have a right to purchase
under the Plan until such shares have been purchased on the applicable Purchase Date.

 

SECTION
13. Securities Law Requirements.

 

Shares
of Stock shall not be issued, and the Company shall have no liability for failure to issue shares of Stock, under the Plan unless
the issuance and delivery of such shares comply with (or are exempt from) all applicable requirements of law, including (without
limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws and
regulations, and the regulations of any stock exchange or other securities market on which the Company’s securities may
then be traded.

 

SECTION
14. AMENDMENT OR DISCONTINUANCE.

 

(a)           General
Rule. The Administrator, in its sole discretion, may amend, suspend, or terminate the
Plan, or any part thereof, at any time and for any reason. If the Plan is terminated, the Administrator, in its discretion, may
elect to terminate all outstanding Offering Periods either immediately or upon completion of the purchase of shares of Stock on
the next Purchase Date, or may elect to permit Offering Periods to expire in accordance with their terms (and subject to any adjustment
pursuant to Section 3(c) or (d). If the Offering Periods are terminated prior to expiration, all amounts then credited to
Participants’ accounts which have not been used to purchase shares of Stock will be returned to the Participants (without
interest thereon, except as otherwise required by the laws of the local jurisdiction) as soon as administratively practicable.

 

(b)           Administrator’s
Discretion. Without stockholder consent and without limiting Subsection (a) above, the
Administrator will be entitled to change the Offering Periods, limit the frequency and/or number of changes in the amount withheld
during an Offering Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars,
permit payroll withholding in excess of the amount designated by a Participant in order to adjust for delays or mistakes in the
Company’s processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or
accounting and crediting procedures to ensure that amounts applied toward the purchase of Stock for each Participant properly
correspond with amounts withheld from the Participant’s Compensation, amend any outstanding purchase rights or clarify any
ambiguities regarding the terms of any Offering Period to enable the purchase rights to qualify under and/or comply with Section 423
of the Code, and establish such other limitations or procedures as it determines in its sole discretion advisable which are consistent
with the Plan. The actions of the Board and the Committee pursuant to this paragraph will not be considered to alter or impair
the purchase rights granted under an Offering Period as they are to be deemed part of the initial terms of such Offering Period
and purchase rights.

 

     

     

    

 

(c)           Accounting
Considerations. In the event the Administrator determines that the ongoing operation
of the Plan may result in unfavorable financial accounting consequences, the Administrator may, in its discretion and, to the
extent necessary or desirable, modify, amend or terminate the Plan to reduce or eliminate such accounting consequence including,
but not limited to:

 

(i) 
 Amending the Plan to conform with the safe harbor definition under Financial Accounting Standards Board Accounting Standards
Codification Topic 718 (or successor provision), including with respect to an Offering Period underway at the time;

 

(ii)       Altering
the Purchase Price for any Offering Period including an Offering Period underway at the time of the change in Purchase Price;

 

(iii)      Shortening
any Offering Period (and any Purchase Periods encompassed by such Offering Period) by setting a new Purchase Date, including with
respect to an Offering Period underway at the time of the Administrator’s action;

 

(iv)      Reducing
the maximum percentage of Compensation a Participant may elect to set aside as payroll deductions; and

 

(v)       Reducing
the maximum number of shares of Stock a Participant may purchase during any Purchase Period.

 

Such modifications
or amendments will not require stockholder approval or the consent of any Plan Participants. The actions of the Board and the
Committee pursuant to this paragraph will not be considered to alter or impair the purchase rights granted under an Offering Period
as they are to be deemed part of the initial terms of such Offering Period and purchase rights.

 

(d)           Stockholder
Approval. Except as provided in Section 3, any increase in the aggregate number
of shares of Stock that may be issued under the Plan shall be subject to the approval of the Company’s stockholders. In
addition, any other amendment of the Plan shall be subject to the approval of the Company’s stockholders to the extent required
under Section 14(e) or by any applicable law or regulation.

 

(e)           Plan
Termination. The Plan shall terminate automatically 20 years after its adoption by the
Board, unless (i) the Plan is extended by the Board and (ii) the extension is approved within 12 months by a vote of
the stockholders of the Company.

 

SECTION
15. DEFINITIONS.

 

(a)           “Administrator”
means the Board or any Committee administering the Plan in accordance with Section 2.

 

     

     

    

 

(b)           “Board”
means the Board of Directors of the Company, as constituted from time to time.

 

(c)           “Code”
means the Internal Revenue Code of 1986, as amended.

 

(d)           “Committee”
means a committee of one or more members of the Board, or of other individuals satisfying applicable laws, appointed by the Board
to administer the Plan.

 

(e)           “Company”
means Velodyne Lidar, Inc., a Delaware corporation.

 

(f)            “Compensation”
means, unless otherwise determined by the Administrator, those components of an Eligible Employee’s cash compensation (prior
to reductions pursuant to Code Sections 125, 132(f) or 401(k)) that are regular and recurring, including base straight-time
gross earnings, commissions, annual cash incentive compensation, and annual cash bonuses, and excluding extraordinary cash
items (such as one-time bonuses), as well as all non-cash items, moving or relocation allowances, cost-of-living or tax equalization
payments, car allowances, tuition reimbursements, imputed income attributable to cars or life insurance, severance pay, fringe
benefits, contributions or benefits received under employee benefit plans, payments for or related to equity compensation, and
any similar items. The Administrator shall determine whether a particular item is included in Compensation.

 

(g)           “Corporate
Reorganization” means:

 

(i)        The
consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization; or

 

(ii)       The
sale, transfer or other disposition of all or substantially all of the Company’s assets or the complete liquidation or dissolution
of the Company.

 

(h)           “Eligible
Employee” means, unless otherwise determined by the Administrator prior to the commencement of an Offering Period, a
common law employee of a Participating Company who is customarily employed for at least twenty (20) hours per week and for more
than five (5) months in any calendar year. The foregoing notwithstanding, (1) an individual shall not be considered an Eligible
Employee if his or her participation in the Plan is prohibited by the law of any country that has jurisdiction over him or her
or if, prior to an applicable Offering Period and applied in a manner consistent with the requirements of Code Section 423(b)(5)
with respect to an Offering Period that is a Base Offering Period, the Administrator determines that the definition of Eligible
Employee shall exclude any other class of employees, and (2) an individual who would not otherwise qualify as an Eligible Employee
pursuant to the first sentence above may be eligible to participate under the terms and conditions of an Additional Offering Period
where local law so requires.

 

(i)            “Enrollment
Period” means a period prior to the start of an Offering Period during which Eligible Employees must submit the required
enrollment forms to participate in such Offering Period, which period shall end at least five (5) business days (or such other
date as may be specified in advance by the Administrator) prior to the start of the Offering Period.

 

     

     

    

 

(j)            “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

(k)           “Fair
Market Value” means the price at which Stock was last sold in the principal U.S. market for the Stock on the applicable
date or, if the applicable date was not a trading day, on the last trading day prior to the applicable date. If Stock is no longer
traded on a public U.S. securities market, the Fair Market Value shall be determined by the Administrator in good faith on such
basis as it deems appropriate. The Administrator’s determination shall be conclusive and binding on all persons. For purposes
of determining Fair Market Value as of a Purchase Date, and unless otherwise determined by the Administrator, the applicable date
will be the last trading day immediately preceding the Purchase Date.

 

(l)            
“Offering Period” means any period, including as the context requires Base Offering Periods and Additional
Offering Periods, with respect to which the right to purchase Stock may be granted under the Plan, as determined pursuant to Section 4(a).

 

(m)          “Participant”
means an Eligible Employee who participates in the Plan or any Sub-Plan, as provided in Section 4.

 

(n)           “Participating
Company” means (i) the Company and (ii) each present or future Subsidiary designated by the Administrator
as a Participating Company.

 

(o)           “Plan”
means this Velodyne Lidar, Inc. 2020 Employee Stock Purchase Plan, as it may be amended from time to time.

 

(p)           “Plan
Account” means the account established for each Participant pursuant to Section 8(a).

 

(q)           “Purchase
Date” means the last trading day of a Purchase Period.

 

(r)            “Purchase
Period”means a period within an Offering Period (which for an Offering Period with only a single Purchase Period would
be coterminous with the Offering Period) during which contributions may be made toward the purchase of Stock under the Plan, as
determined pursuant to Section 4(a).

 

(s)           “Purchase
Price” means the price at which Participants may purchase Stock under the Plan, as determined pursuant to Section 8(b).

 

(t)            “Related
Corporation” means any “parent corporation” of the Company as defined in Code Section 424(e) or any Subsidiary.

 

(u)           “Stock”
means the common stock of the Company.

 

(v)           “Subsidiary”
means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the
corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain.

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