Document:

Exhibit 10.4

 

VELODYNE ACOUSTICS, INC.

 

2007 INCENTIVE STOCK PLAN

 

1.             Purposes of the Plan. The purposes of this Plan are:

 

		·	to attract and retain the best available personnel for positions of substantial responsibility,

 

		·	to provide incentives to individuals who perform services to the Company, and

 

		·	to promote the success of the Company’s business.

 

The Plan permits the
grant of Incentive Stock Options, Nonstatutory Stock Options, Restricted Stock and other stock or cash awards as the Administrator
may determine.

 

2.             Definitions. As used herein, the following definitions will apply:

 

(a)           “Administrator” means the Board or any of its Committees as will be administering the Plan, in accordance
with Section 4 of the Plan.

 

(b)           “Applicable Laws” means the requirements relating to the administration of equity-based awards under
U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the
Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where Awards are, or will be, granted
under the Plan.

 

(c)           “Award” means, individually or collectively, a grant under the Plan of Options, Restricted Stock and
other stock or cash awards as the Administrator may determine.

 

(d)           “Award Agreement” means the written or electronic agreement setting forth the terms and provisions applicable
to each Award granted under the Plan. The Award Agreement is subject to the terms and conditions of the Plan.

 

(e)           “Board” means the Board of Directors of the Company.

 

(f)            “Change in Control” means the occurrence of any of the following events:

 

(i)           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
fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities;

 

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

 

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(iii)         The consummation of a merger, consolidation or other reorganization of the Company with any other corporation, other than
a merger, consolidation or other reorganization 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) at least 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.

 

(g)           “Code” means the Internal Revenue Code of 1986, as amended. Any reference to a section of the Code herein
will be a reference to any successor or amended section of the Code.

 

(h)           “Committee” means a committee of Directors or of other individuals satisfying Applicable Laws appointed
by the Board in accordance with Section 4 hereof.

 

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

 

(j)            “Company” means Velodyne Acoustics, Inc., a California corporation, or any successor thereto.

 

(k)           “Consultant” means any person, including an advisor, engaged by the Company or a Parent or Subsidiary
to render services to such entity, provided that the identity of such person, the nature of such services or the entity to which
such services are provided would not preclude the Company from offering or selling securities to such person pursuant to the Plan
in reliance on the exemption from registration provided by Rule 701 of the Securities Act of 1933, as amended.

 

(l)            “Determination Date” means the latest possible date that will not jeopardize the qualification of an
Award granted under the Plan as “performance-based compensation” under Section 162(m) of the Code.

 

(m)          “Director” means a member of the Board.

 

(n)           “Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code, provided
that in the case of Awards other than Incentive Stock Options, the Administrator in its discretion may determine whether a permanent
and total disability exists in accordance with uniform and non-discriminatory standards adopted by the Administrator from time
to time.

 

(o)           “Employee” means any person, including Officers and Directors, employed by the Company or any Parent
or Subsidiary of the Company. Neither service as a Director nor payment of a director’s fee by the Company will be sufficient
to constitute “employment” by the Company.

 

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

 

(q)           “Fair Market Value” means, as of any date, the value of Common Stock as the Administrator may determine
in good faith.

 

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(r)            “Fiscal Year” means the fiscal year of the Company.

 

(s)           “Incentive Stock Option” means an Option that by its terms qualifies and is otherwise intended to qualify
as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

 

(t)            “Inside Director” means a Director who is an Employee.

 

(u)           “Nonstatutory Stock Option” means an Option that by its terms does not qualify or is not intended to
qualify as an Incentive Stock Option.

 

(v)           “Officer” means a person who is an officer of the Company within the meaning of Section 16 of the
Exchange Act and the rules and regulations promulgated thereunder.

 

(w)          “Option” means a stock option granted pursuant to the Plan.

 

(x)           “Outside Director” means a Director who is not an Employee.

 

(y)          “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e)
of the Code.

 

(z)           “Participant” means the holder of an outstanding Award.

 

(aa)         “Period of Restriction” means the period during which the transfer of Shares of Restricted Stock is subject
to restrictions and, therefore, the Shares are subject to a substantial risk of forfeiture. Such restrictions may be based on the
passage of time, the achievement of target levels of performance, or the occurrence of other events as determined by the Administrator.

 

(bb)        “Plan” means this 2007 Incentive Stock Plan.

 

(cc)         “Restricted Stock” means Shares issued pursuant to a Restricted Stock award under Section 7 of the
Plan, or issued pursuant to the early exercise of an Option.

 

(dd)        “Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion
is being exercised with respect to the Plan.

 

(ee)         “Section 16(b)” means Section 16(b) of the Exchange Act.

 

(ff)          “Service Provider” means an Employee, Director or Consultant.

 

(gg)        “Share” means a share of the Common Stock, as adjusted in accordance with Section 13 of the Plan.

 

(hh)        “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined
in Section 424(f) of the Code.

 

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3.            Stock Subject to the Plan.

 

(a)           Stock Subject to the Plan. Subject to the provisions of Section 13 of the Plan, the maximum aggregate number
of Shares that may be awarded and sold under the Plan is One Million Twenty-five Thousand (1,025,000) Shares. The Shares may be
authorized, but unissued, or reacquired Common Stock.

 

(b)           Lapsed Awards. If an Award expires or becomes unexercisable without having been exercised in full, or, with respect
to Restricted Stock, is forfeited to or repurchased by the Company, the unpurchased Shares (or for Awards other than Options, the
forfeited or repurchased shares) which were subject thereto will become available for future grant or sale under the Plan (unless
the Plan has terminated). However, unrestricted Shares that have actually been issued under the Plan under any Award will not be
returned to the Plan and will not become available for future distribution under the Plan. To the extent any Award under the Plan
is paid out in cash rather than Shares, such cash payment will not result in reducing the number of Shares available for issuance
under the Plan. Without limiting the foregoing, and subject to any adjustments pursuant to Section 13, the maximum number
of Shares that may be issued upon the exercise of Incentive Stock Options shall equal the aggregate Share number stated in Section 3(a).

 

(c)           Share Reserve. The Company, during the term of this Plan, will at all times reserve and keep available such number
of Shares as will be sufficient to satisfy the requirements of the Plan.

 

4.            Administration of the Plan.

 

(a)           Procedure.

 

(i)          Multiple Administrative Bodies. Different Committees with respect to different groups of Service Providers may administer
the Plan.

 

(ii)         Section 162(m). To the extent that the Administrator determines it to be desirable to qualify Awards granted
hereunder as “performance-based compensation” within the meaning of Section 162(m) of the Code, the Plan will
be administered by a Committee of two or more “outside directors” within the meaning of Section 162(m) of the
Code.

 

(iii)        Rule 16b-3. To the extent desirable to qualify transactions hereunder as exempt under Rule 16b-3, the transactions
contemplated hereunder will be structured to satisfy the requirements for exemption under Rule 16b-3.

 

(iv)        Other Administration. Other than as provided above, the Plan will be administered by (A) the Board, or (B) a
Committee, which committee will be constituted to satisfy Applicable Laws.

 

(b)          Powers of the Administrator. Subject to the provisions of the Plan, and in the case of a Committee, subject to the
specific duties delegated by the Board to such Committee, the Administrator will have the authority, in its discretion:

 

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(i)           to determine the Fair Market Value;

 

(ii)          to select the Service Providers to whom Awards may be granted hereunder;

 

(iii)         to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder;

 

(iv)         to approve forms of agreements for use under the Plan;

 

(v)          to construe and interpret the terms of the Plan and Awards granted pursuant to the Plan;

 

(vi)         to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to
any sub-plans established for the purpose of satisfying applicable foreign laws;

 

(vii)        to modify or amend each Award (subject to Section 18(c) of the Plan);

 

(viii)       to authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Award previously
granted by the Administrator;

 

(ix)         to allow a Participant to defer the receipt of the payment of cash or the delivery of Shares that would otherwise be due
to such Participant under an Award pursuant to such procedures as the Administrator may determine;

 

(x)          to grant, in addition to the incentives described in Sections 6 and 7 below, other incentives payable in cash or Shares
under the Plan as determined by the Administrator to be in the best interests of the Company and subject to any terms and conditions
the Administrator deems advisable; and

 

(xi)         to make all other determinations deemed necessary or advisable for administering the Plan.

 

(c)           Effect of Administrator’s Decision; Good Faith Actions. The Administrator’s decisions, determinations
and interpretations will be final and binding on all Participants and any other holders of Awards. The Administrator shall not
be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or any Award and
all individuals serving as Administrator shall be fully protected and indemnified by the Company with respect to any such action,
determination or interpretation.

 

5.             Eligibility. Nonstatutory Stock Options, Restricted Stock and such other cash or stock awards as the Administrator
determines may be granted to Service Providers. Incentive Stock Options may be granted only to Employees.

 

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6.             Stock Options.

 

(a)           Limitations. Each Option will be designated in the Award Agreement as either an Incentive Stock Option or a Nonstatutory
Stock Option. However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of the Shares with
respect to which Incentive Stock Options are exercisable for the first time by the Participant during any calendar year (under
all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such Options will be treated as Nonstatutory Stock Options.
For purposes of this Section 6(a), Incentive Stock Options will be taken into account in the order in which they were granted.
The Fair Market Value of the Shares will be determined as of the time the Option with respect to such Shares is granted.

 

(b)           Term of Option. The Administrator will determine the term of each Option in its sole discretion. In the case of an
Incentive Stock Option, the term will be ten (10) years from the date of grant or such shorter term as may be provided in the Award
Agreement. Moreover, in the case of an Incentive Stock Option granted to a Participant who, at the time the Incentive Stock Option
is granted, owns stock representing more than ten percent (10%) of the total combined voting power of all classes of stock of the
Company or any Parent or Subsidiary, the term of the Incentive Stock Option will be five (5) years from the date of grant or such
shorter term as may be provided in the Award Agreement.

 

(c)           Option Exercise Price and Consideration.

 

(i)           Exercise Price. The per share exercise price for the Shares to be issued pursuant to exercise of an Option will be
determined by the Administrator, subject to the following:

 

(A)          In the case of an Incentive Stock Option

 

(1)       granted
to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the
voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price will be no less than
110% of the Fair Market Value per Share on the date of grant.

 

(2)       granted
to any Employee other than an Employee described in paragraph (1) immediately above, the per Share exercise price will be no less
than 100% of the Fair Market Value per Share on the date of grant.

 

(B)          In
the case of a Nonstatutory Stock Option

 

(1)       granted
to a Service Provider who, at the time the Nonstatutory Stock Option is granted, owns stock representing more than ten percent
(10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price will
be no less than 110% of the Fair Market Value per Share on the date of grant.

 

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(2)       granted
to any Service Provider other than a Service Provider described in paragraph (1) immediately above, the per Share exercise price
will be no less than 85% of the Fair Market Value per Share on the date of grant.

 

(C)          Notwithstanding
the foregoing, Options may be granted with a per Share exercise price of less than 100% of the Fair Market Value per Share on the
date of grant pursuant to a transaction described in, and in a manner consistent with, Section 424(a) of the Code.

 

(ii)          Waiting Period and Exercise Dates. At the time an Option is granted, the Administrator will fix the period within
which the Option may be exercised and will determine any conditions that must be satisfied before the Option may be exercised.
At a minimum, an Option will be exercisable at the rate of at least twenty percent (20%) per year over five (5) years from the
date the Option is granted.

 

(iii)         Form of Consideration. The Administrator will determine the acceptable form(s) of consideration for exercising an
Option, including the method of payment, to the extent permitted by Applicable Laws.

 

(d)           Exercise of Option.

 

(i)           Procedure for Exercise; Rights as a Stockholder. Any Option granted hereunder will be exercisable according to the
terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth in the Award Agreement.
An Option may not be exercised for a fraction of a Share.

 

An Option will be deemed
exercised when the Company receives: (i) notice of exercise (in such form as the Administrator specify from time to time)
from the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is
exercised (together with any applicable withholding taxes). No adjustment will be made for a dividend or other right for which
the record date is prior to the date the Shares are issued, except as provided in Section 13 of the Plan.

 

(ii)          Termination of Relationship as a Service Provider. If a Participant ceases to be a Service Provider, other than upon
the Participant’s death or Disability, the Participant may exercise his or her Option within such period of time as is specified
in the Award Agreement (not to exceed three (3) months if the Option is an Incentive Stock Option) to the extent that the
Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth
in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option (whether it is an Incentive Stock
Option or a Nonstatutory Stock Option) will remain exercisable for three (3) months following the Participant’s termination.
Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire
Option, the Shares covered by the unvested portion of the Option will revert to the Plan. If after termination the Participant
does not exercise his or her Option within the time specified herein, the Option will terminate, and the Shares covered by such
Option will revert to the Plan.

 

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(iii)         Disability of Participant. If a Participant ceases to be a Service Provider as a result of the Participant’s
Disability, the Participant may exercise his or her Option within such period of time as is specified in the Award Agreement to
the extent the Option is vested on the date of Participant’s termination of services (but in no event later than the expiration
of the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the
Option will remain exercisable for twelve (12) months following the Participant’s termination. Unless otherwise provided
by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered
by the unvested portion of the Option will revert to the Plan. If after termination the Participant does not exercise his or her
Option within the time specified herein, the Option will terminate, and the Shares covered by such Option will revert to the Plan.

 

(iv)        Death of Participant. If a Participant dies while a Service Provider, the Option may be exercised following the Participant’s
death within such period of time as is specified in the Award Agreement to the extent that the Option is vested on the date of
death (but in no event may the option be exercised later than the expiration of the term of such Option as set forth in the Award
Agreement), as provided in Section 11. In the absence of a specified time in the Award Agreement, the Option will remain exercisable
for twelve (12) months following Participant’s death. Unless otherwise provided by the Administrator, if at the time of death
Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will immediately
revert to the Plan. If the Option is not so exercised within the time specified herein, the Option will terminate, and the Shares
covered by such Option will revert to the Plan.

 

(e)           Transfer
Restrictions. The Administrator, in its absolute discretion, may impose such restrictions on the transferability of the Shares
issuable upon the exercise of an Option as it deems appropriate and any such restrictions shall be set forth in the Award Agreement.
The Administrator may direct that the certificates evidencing Shares acquired by exercise of an Option refer to any such restrictions.
The Administrator may require the Participant to give the Company prompt notice of any disposition of Shares acquired by exercise
of an Option. The Administrator may direct that the certificates evidencing Shares acquired by exercise of an Option refer to such
requirement to give prompt notice of disposition. In order for an Option to qualify as an Incentive Stock Option, no disposition
of the Shares acquired by exercise of such Option may be made by the Participant within two (2) years from the date of the granting
of the Option or within one (1) year after the transfer of such Shares to the Participant pursuant to his or her exercise of the
Option.

 

(f)            Repurchase
Rights. The Shares acquired upon the exercise of an Option may be subject to one or more repurchase rights of the Company upon
the terms provided in the Award Agreement, in accordance with Applicable Laws.

 

7.             Restricted
Stock.

 

(a)           Grant
of Restricted Stock. Subject to the terms and provisions of the Plan, the Administrator, at any time and from time to time,
may grant Shares of Restricted Stock to Service Providers in such amounts as the Administrator, in its sole discretion, will determine.

 

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(b)           Restricted
Stock Agreement. Each Award of Restricted Stock will be evidenced by an Award Agreement that will specify the Period of Restriction,
the number of Shares granted, and such other terms and conditions as the Administrator, in its sole discretion, will determine.
Unless the Administrator determines otherwise, Shares of Restricted Stock will be held by the Company as escrow agent until the
restrictions on such Shares have lapsed.

 

(c)           Transferability.
Except as provided in this Section 7, Shares of Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated until the end of the applicable Period of Restriction.

 

(d)          Other
Restrictions. The Administrator, in its sole discretion, may impose such other restrictions on Shares of Restricted Stock as
it may deem advisable or appropriate.

 

(e)           Removal of Restrictions. Except as otherwise provided in this Section 7, Shares of Restricted Stock covered by each
Restricted Stock grant made under the Plan will be released from escrow as soon as practicable after the last day of the Period
of Restriction. The Administrator, in its discretion, may accelerate the time at which any restrictions will lapse or be removed.

 

(f)            Voting Rights. During the Period of Restriction, Service Providers holding Shares of Restricted Stock granted hereunder
may exercise full voting rights with respect to those Shares, unless the Administrator determines otherwise.

 

(g)           Dividends and Other Distributions. During the Period of Restriction, Service Providers holding Shares of Restricted
Stock will be entitled to receive all dividends and other distributions paid with respect to such Shares unless otherwise provided
in the Award Agreement. If any such dividends or distributions are paid in Shares, the Shares will be subject to the same restrictions
on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid.

 

(h)           Return of Restricted Stock to Company. On the date set forth in the Award Agreement, the Restricted Stock for which
restrictions have not lapsed will revert to the Company and again will become available for grant under the Plan.

 

8.             Other
Cash or Stock Awards. In addition to the incentives described in Sections 6 and 7 above, the Administrator may grant other
incentives payable in cash or Shares under the Plan as it determines to be in the best interests of the Company and subject to
such other terms and conditions as it deems appropriate.

 

9.             Performance
Goals. Awards of Restricted Stock and other incentives under the Plan may be made subject to the attainment of performance
goals relating to one or more business criteria within the meaning of Section 162(m) of the Code and may provide for a targeted
level or levels of achievement (“Performance Goals”) including, without limitation, cash flow; cash position;
earnings before interest and taxes; earnings before interest, taxes, depreciation and amortization; earnings per Share; economic
profit; economic value added; equity or stockholder’s equity; market share; net income; net profit; net sales; operating
earnings; operating income; profit before tax; ratio of debt to debt plus equity; ratio of operating earnings to capital spending;
sales growth; return on net assets; or total return to stockholders. Any Performance Goals may be used to measure the performance
of the Company as a whole or any division of the Company and may be measured relative to a peer group or index. The Performance
Goals may differ from Participant to Participant and from Award to Award. Prior to the Determination Date, the Administrator will
determine whether any significant element(s) will be included in or excluded from the calculation of any Performance Goal with
respect to any Participant. In all other respects, Performance Goals will be calculated in accordance with the Company’s
financial statements, generally accepted accounting principles, or under a methodology established by the Administrator prior to
the issuance of an Award, which is consistently applied and identified in the financial statements, including footnotes, or the
management discussion and analysis section of the Company’s annual report.

 

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10.           Leaves
of Absence. Unless the Administrator provides otherwise, vesting of Awards granted hereunder will be suspended during any unpaid
leave of absence. A Service Provider will not cease to be an Employee in the case of (a) any leave of absence approved by
the Company, or (b) transfers between locations of the Company or between the Company, its Parent, or any Subsidiary. For
purposes of Incentive Stock Options, no such leave may exceed ninety (90) days, unless reemployment upon expiration of such leave
is guaranteed by statute or contract. If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed,
then three (3) months from the first day of such leave any Incentive Stock Option held by the Participant will cease to be treated
as an Incentive Stock Option and will be treated for tax purposes as a Nonstatutory Stock Option.

 

11.           Beneficiary
Designations. If permitted by the Administrator, a Participant under the Plan may name a beneficiary or beneficiaries to whom
any vested but unpaid Award will be paid in the event of the Participant’s death. Each such designation will revoke all prior
designations by the Participant and will be effective only if given in a form and manner acceptable to the Administrator. In the
absence of any such designation, any vested benefits remaining unpaid at the Participant’s death will be paid to the Participant’s
estate and, subject to the terms of the Plan and of the applicable Award Agreement, any unexercised vested Award may be exercised
by the administrator or executor of the Participant’s estate.

 

12.           Transferability
of Awards. Unless determined otherwise by the Administrator, no Award granted under the Plan may be sold, transferred, pledged,
assigned, or otherwise alienated or hypothecated (whether such disposition be voluntary or involuntary or by operation of law or
otherwise), other than by will, by the laws of descent and distribution, or to the limited extent provided in Section 11. Any such
attempted disposition of an Award, other than as provided herein, shall be null and void and of no effect. All rights with respect
to an Award granted to a Participant will be available during his or her lifetime only to the Participant.

 

13.           Adjustments;
Dissolution or Liquidation; Merger or Change in Control.

 

(a)           Adjustments.
In the event that any stock dividend, stock split, reverse stock split or other recapitalization or reorganization affecting the
Shares occurs, the Administrator shall adjust the number and class of Shares covered by each outstanding Award so as to prevent
any decrease or increase of the benefits or potential benefits intended hereunder with respect to each Participant (and the Administrator
shall similarly adjust the number and class of Shares that may be delivered under the Plan pursuant to the numerical Share limit
set forth in Section 3).

 

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(b)           Dissolution
or Liquidation. In the event of the proposed dissolution or liquidation of the Company, an Award, to the extent it has not
been previously exercised, will terminate immediately prior to the consummation of such proposed action.

 

(c)           Change
in Control. In the event of a Change in Control, each outstanding Award will be treated as the Administrator determines, including,
without limitation, that each Award be assumed or an equivalent option or right substituted by the successor corporation or a Parent
or Subsidiary of the successor corporation (and the Administrator shall not be required to treat all Awards similarly in the transaction);
provided, however, that if an Award is not assumed or substituted by the successor corporation or a Parent or Subsidiary of the
successor corporation in the event of a Change in Control, the Administrator, in its sole and absolute discretion, may provide
(i) that all restrictions on Restricted Stock will lapse, (ii) that all outstanding Options, including any portion thereof which
would not otherwise be vested or exercisable, will be exercisable for a reasonable period of time immediately prior to the closing
date of such Change in Control, and/or (iii) that all Performance Goals or other vesting criteria will be deemed achieved at target
levels and all terms and conditions met (provided, however, that any such accelerated vesting and exercise rights described in
the foregoing subsections (i), (ii) and (iii) shall be conditioned upon the Company’s execution of a final definitive agreement
with respect to such Change in Control, and the Company shall provide the Participant with notice thereof as soon as practicable).
Any Options which are not assumed or substituted by the successor corporation or a Parent or Subsidiary of the successor corporation
and which are not exercised prior to the closing of such Change in Control, in accordance with this Section 13(c), shall terminate
upon the closing of such Change in Control.

 

For the purposes of this
subsection (c), an Award will be considered assumed if, following the Change in Control, the Award confers the right to purchase
or receive, for each Share subject to the Award immediately prior to the Change in Control, the consideration (whether stock, cash,
or other securities or property) received in the merger or Change in Control by holders of Common Stock for each Share held on
the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen
by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the Change in
Control is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor
corporation, provide for the consideration to be received upon the exercise of an Option, for each Share subject to such Option,
to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration
received by holders of Common Stock in the Change in Control.

 

Notwithstanding anything
in this Section 13(c) to the contrary, an Award that vests or is earned upon the satisfaction of one or more Performance Goals
will not be considered assumed if the Company or its successor modifies any of such Performance Goals without the Participant’s
consent; provided, however, that a modification to such Performance Goals only to reflect the successor corporation’s post-Change
in Control corporate structure will not be deemed to invalidate an otherwise valid Award assumption.

 

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14.           Tax
Withholding.

 

(a)           Withholding
Requirements. Prior to the delivery of any Shares or cash pursuant to an Award (or exercise thereof), the Company will have
the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy
federal, state, local, foreign or other taxes (including the Participant’s FICA obligation) required to be withheld with
respect to such Award (or exercise thereof).

 

(b)           Withholding
Arrangements. The Administrator, in its sole discretion and pursuant to such procedures as it may specify from time to time,
may (without limitation) permit a Participant to satisfy such tax withholding obligation, in whole or in part, by (i) paying cash;
(ii) electing to have the Company withhold otherwise deliverable cash or Shares having a Fair Market Value equal to the minimum
amount required to be withheld; (iii) delivering to the Company already-owned Shares having a Fair Market Value equal to the amount
required to be withheld; or (iv) selling a sufficient number of Shares otherwise deliverable to the Participant through such means
as the Administrator may determine in its sole discretion (whether through a broker or otherwise) equal to the amount required
to be withheld. The amount of the withholding requirement will be deemed to include any amount which the Administrator agrees may
be withheld at the time the election is made, not to exceed the amount determined by using the maximum federal, state or local
marginal income tax rates applicable to the Participant with respect to the Award on the date that the amount of tax to be withheld
is to be determined. The Fair Market Value of the Shares to be withheld or delivered will be determined as of the date that the
taxes are required to be withheld.

 

15.           No
Effect on Employment or Service. Neither the Plan nor any Award will confer upon a Participant any right with respect to continuing
the Participant’s relationship as a Service Provider with the Company, nor will they interfere in any way with the Participant’s
right or the Company’s right to terminate such relationship at any time, with or without cause, to the extent permitted by
Applicable Laws.

 

16.           Date
of Grant. The date of grant of an Award will be, for all purposes, the date on which the Administrator makes the determination
granting such Award, or such other later date as is determined by the Administrator. Notice of the determination will be provided
to each Participant within a reasonable time after the date of such grant.

 

17.           Term
of Plan. Subject to Section 21 of the Plan, the Plan will become effective upon its adoption by the Board. It will continue
in effect for a term of ten (10) years unless terminated earlier under Section 18 of the Plan.

 

18.           Amendment
and Termination of the Plan.

 

(a)           Amendment
and Termination. The Administrator may at any time amend, alter, suspend or terminate the Plan.

 

(b)           Stockholder
Approval. The Company will obtain stockholder approval of any Plan amendment to the extent necessary and desirable to comply
with Applicable Laws.

 

    12 

     

    

 

(c)               Effect
of Amendment or Termination. No amendment, alteration, suspension or termination of the Plan will impair the rights of any
Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing
and signed by the Participant and the Company. Termination of the Plan will not affect the Administrator’s ability to exercise
the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination.

 

19.              Conditions
Upon Issuance of Shares.

 

(a)               Legal
Compliance. Shares will not be issued pursuant to the exercise of an Award unless the exercise of such Award and the issuance
and delivery of such Shares will comply with Applicable Laws and will be further subject to the approval of counsel for the Company
with respect to such compliance.

 

(b)              Investment
Representations. As a condition to the exercise of an Award, the Company may require the person exercising such Award to (i)
represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any
present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required;
and (ii) make such other investment representations as the Administrator and counsel for the Company deem necessary or advisable
to effect compliance with all Applicable Laws.

 

20.           Inability
to Obtain Authority. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority
is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, will relieve
the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority will not
have been obtained.

 

21.           Stockholder
Approval. The Plan will be subject to approval by the stockholders of the Company within twelve (12) months after the date
the Plan is adopted. Such stockholder approval will be obtained in the manner and to the degree required under Applicable Laws.

 

22.           Effect
of Plan upon Other Options and Compensation Plans. The adoption of this Plan shall not affect any other compensation or incentive
plans in effect for the Company or any Subsidiary or Parent. Nothing in this Plan shall be construed to limit the rights of the
Company or any Subsidiary or Parent of the Company to: (a) establish any other forms of incentives or compensation for Service
Providers of the Company or any Subsidiary or Parent of the Company, or (b) grant or assume Awards otherwise than under this Plan
in connection with any proper corporate purpose, including, but not by way of limitation, the grant or assumption of Awards in
connection with the acquisition by purchase, lease, merger, consolidation or otherwise of the business, stock or assets of any
corporation, firm or association.

 

23.           Securities
Law and Other Regulatory Compliance. This Plan is intended to be exempt from the rules of Section 409A of the Code, and the
rules, regulations and rulings promulgated thereunder (“Section 409A”), and to comply with Section 25102(o)
or Section 25102(f) of the California Corporations Code, as the case may be (collectively, “Section 25102”),
and any other Applicable Laws. Any provision of the Plan which is not exempt from the rules of Section 409A or which is inconsistent
with the requirements of Section 25102 or any other Applicable Laws shall, without further act or amendment by the Company or the
Administrator, be construed, modified and/or applied so as to be exempt from the rules of Section 409A and consistent and in conformity
with Section 25102 and any other Applicable Laws (so as not to accelerate the recognition of income to the Participant). A grant
of an Award will not be effective unless such grant is in compliance with all Applicable Laws, as they are in effect on the date
of grant and also on the date of exercise or other issuance. Notwithstanding any other provision in this Plan, the Company will
have no obligation to issue or deliver certificates for Shares under this Plan prior to (a) obtaining any approvals from governmental
agencies that the Company determines are necessary or advisable, and/or (b) compliance with any exemption, completion of any registration
or other qualification of such Shares under any state or federal law or ruling of any governmental body that the Company determines
to be necessary or advisable. The Company will be under no obligation to register its Common Stock with the Securities and Exchange
Commission or to effect compliance with the exemption, registration, qualification or listing requirements of any state securities
laws, stock exchange or automated quotation system, and the Company will have no liability for any inability or failure to do so.

 

    13Exhibit 10.5

 

Velodyne
LiDAR, Inc.

 

2016
Stock Plan

 

Adopted
on July 26, 2016

 

     

     

    

 

TABLE OF CONTENTS

 

Page

 

	SECTION 1.	ESTABLISHMENT AND PURPOSE	1
	 	 	 
	SECTION 2.	ADMINISTRATION	1
	(a)   Committees of the Board of Directors	1
	(b)   Authority of the Board of Directors	1
	 	 
	SECTION 3.	ELIGIBILITY	1
	(a)   General Rule	1
	(b)   Ten-Percent Stockholders	1
	 	 
	SECTION 4.	STOCK SUBJECT TO PLAN	2
	(a)   Basic Limitation	2
	(b)   Additional Shares	2
	 	 
	SECTION 5.	TERMS AND CONDITIONS OF AWARDS OR SALES OF SHARES	2
	(a)   Stock Grant or Purchase Agreement	2
	(b)   Duration of Offers and Nontransferability of Rights	2
	(c)   Purchase Price	3
	 	 
	SECTION 6.	TERMS AND CONDITIONS OF OPTIONS	3
	(a)   Stock Option Agreement	3
	(b)   Number of Shares	3
	(c)   Exercise Price	3
	(d)   Exercisability	3
	(e)   Basic Term	3
	(f)   Termination of Service (Except by Death)	3
	(g)   Leaves of Absence	4
	(h)   Death of Optionee	4
	(i)    Restrictions on Transfer of Options	5
	(j)    No Rights as a Stockholder	5
	(k)   Modification, Extension and Assumption of Options	5
	(l)    Company’s Right to Cancel Certain Options	5
	 	 
	SECTION 7.	PAYMENT FOR SHARES	5
	(a)   General Rule	5
	(b)   Services Rendered	5
	(c)   Promissory Note	5
	(d)   Surrender of Stock	6
	(e)   Exercise/Sale	6
	(f)    Net Exercise	6
	(g)   Other Forms of Payment	6
	 	 
	SECTION 8.	TERMS AND CONDITIONS OF RESTRICTED STOCK UNITS	6
	(a)   Restricted Stock Unit Agreement	6

 

    i 

     

    

 

	(b)   Payment for Restricted Stock Units	6
	(c)   Vesting Conditions	6
	(d)   Forfeiture	7
	(e)   Leaves of Absence	7
	(f)   Voting and Dividend Rights	7
	(g)   Form and Time of Settlement of Restricted Stock Units	7
	(h)   Death of Recipient	7
	(i)    Creditors’ Rights	7
	(j)    Modification, Extension and Assumption of Restricted Stock Units	8
	(k)   Restrictions on Transfer of Restricted Stock Units	8
	 	 
	SECTION 9.	ADJUSTMENT OF SHARES	8
	(a)   General	8
	(b)   Corporate Transactions	8
	(c)   Reservation of Rights	10
	 	 
	SECTION 10.	MISCELLANEOUS PROVISIONS	10
	(a)   Securities Law Requirements	10
	(b)   No Retention Rights	10
	(c)   Treatment as Compensation	11
	(d)   Governing Law	11
	(e)   Conditions and Restrictions on Shares	11
	(f)   Tax Matters	11
	 	 
	SECTION 11.	DURATION AND AMENDMENTS; STOCKHOLDER APPROVAL	12
	(a)   Term of the Plan	12
	(b)   Right to Amend or Terminate the Plan	12
	(c)   Effect of Amendment or Termination	12
	(d)   Stockholder Approval	12
	 	 
	SECTION 12.	DEFINITIONS	13

 

    ii 

     

    

 

Velodyne
LiDAR, Inc. 2016 Stock Plan

 

		SECTION 1.	ESTABLISHMENT AND PURPOSE.

 

The purpose of this Plan
is to offer persons selected by the Company an opportunity to acquire a proprietary interest in the success of the Company, or
to increase such interest, by acquiring Shares of the Company’s Stock. The Plan provides for the direct award or sale of
Shares, the grant of Options to purchase Shares and the grant of Restricted Stock Units. Options granted under the Plan may be
ISOs intended to qualify under Code Section 422 or NSOs which are not intended to so qualify.

 

Capitalized terms are
defined in Section 12.

 

		SECTION 2.	ADMINISTRATION.

 

(a)           Committees
of the Board of Directors. The Plan may be administered by one or more Committees. Each Committee shall consist, as required
by applicable law, of one or more members of the Board of Directors who have been appointed by the Board of Directors. Each Committee
shall have such authority and be responsible for such functions as the Board of Directors has assigned to it. If no Committee
has been appointed, the entire Board of Directors shall administer the Plan. Any reference to the Board of Directors in the Plan
shall be construed as a reference to the Committee (if any) to whom the Board of Directors has assigned a particular function.

 

(b)           Authority
of the Board of Directors. Subject to the provisions of the Plan, the Board of Directors shall have full authority and discretion
to take any actions it deems necessary or advisable for the administration of the Plan. Notwithstanding anything to the contrary
in the Plan, with respect to the terms and conditions of Awards granted to Participants outside the United States, the Board of
Directors may vary from the provisions of the Plan to the extent it determines it necessary and appropriate to do so; provided
that it may not vary from those Plan terms requiring stockholder approval pursuant to Section 11(d) below. All decisions, interpretations
and other actions of the Board of Directors shall be final and binding on all Participants and all persons deriving their rights
from a Participant.

 

		SECTION 3.	ELIGIBILITY.

 

(a)           General
Rule. Only Employees, Outside Directors and Consultants shall be eligible for the grant of NSOs, Restricted Stock Units or
the direct award or sale of Shares.1
Only Employees shall be eligible for the grant of ISOs.

 

(b)           Ten-Percent
Stockholders. A person who owns more than 10% of the total combined voting power of all classes of outstanding stock of the
Company, its Parent or any of its Subsidiaries shall not be eligible for the grant of an ISO unless (i) the Exercise Price
is at least 110% of the Fair Market Value of a Share on the Date of Grant and (ii) such ISO by its terms is not exercisable
after the expiration of five years from the Date of Grant. For purposes of this Subsection (b), in determining stock ownership,
the attribution rules of Code Section 424(d) shall be applied.

 

 

1
Note that special considerations apply if the Company proposes to grant awards to an Employee or Consultant of a
Parent company.

 

    1

     

    

 

		SECTION 4.	STOCK SUBJECT TO PLAN.

 

(a)           Basic
Limitation. Not more than 5,263,731 Shares may be issued under the Plan, subject to Subsection (b) below and Section 8(a).2
All of these Shares may be issued upon the exercise of ISOs. The number of Shares that are subject to Awards outstanding
at any time under the Plan may not exceed the number of Shares that then remain available for issuance under the Plan. The Company,
during the term of the Plan, shall at all times reserve and keep available sufficient Shares to satisfy the requirements of the
Plan. Shares offered under the Plan may be authorized but unissued Shares or treasury Shares.

 

(b)           Additional
Shares. In the event that Shares previously issued under the Plan are reacquired by the Company, such Shares shall be added
to the number of Shares then available for issuance under the Plan. In the event that Shares that otherwise would have been issuable
under the Plan are withheld by the Company in payment of the Purchase Price, Exercise Price or withholding taxes, such Shares
shall remain available for issuance under the Plan. In the event that an outstanding Award for any reason expires or is canceled,
the Shares allocable to the Award shall be added to the number of Shares then available for issuance under the Plan. To the extent
a Restricted Stock Unit is settled in cash, the cash settlement shall not reduce the number of Shares remaining available for
issuance under the Plan.

 

		SECTION 5.	TERMS AND CONDITIONS OF AWARDS OR SALES OF SHARES.

 

(a)           Stock
Grant or Purchase Agreement. Each award of Shares under the Plan shall be evidenced by a Stock Grant Agreement between the
Grantee and the Company. Each sale of Shares under the Plan (other than upon exercise of an Option) shall be evidenced by a Stock
Purchase Agreement between the Purchaser and the Company. Such award or sale shall be subject to all applicable terms and conditions
of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Board
of Directors deems appropriate for inclusion in a Stock Grant Agreement or Stock Purchase Agreement. The provisions of the various
Stock Grant Agreements and Stock Purchase Agreements entered into under the Plan need not be identical.

 

(b)           Duration
of Offers and Nontransferability of Rights. Any right to purchase Shares under the Plan (other than an Option) shall automatically
expire if not exercised by the Purchaser within 30 days (or such other period as may be specified in the Award Agreement) after
the grant of such right was communicated to the Purchaser by the Company. Such right is not transferable and may be exercised
only by the Purchaser to whom such right was granted.

 

 

2 Please
refer to Exhibit A for a schedule of the initial share reserve and any subsequent increases in the reserve.

 

    2

     

    

 

(c)          Purchase
Price. The Board of Directors shall determine the Purchase Price of Shares to be offered under the Plan at its sole discretion.
The Purchase Price shall be payable in a form described in Section 7.

 

		SECTION 6.	TERMS AND CONDITIONS OF OPTIONS.

 

(a)          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. The Option shall be subject to all applicable terms and conditions of the Plan and may be subject to any other
terms and conditions that are not inconsistent with the Plan and that the Board of Directors deems appropriate for inclusion in
a Stock Option Agreement. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical.

 

(b)          Number
of Shares. Each Stock Option Agreement shall specify the number of Shares that are subject to the Option and shall provide
for the adjustment of such number in accordance with Section 8. The Stock Option Agreement shall also specify whether the
Option is an ISO or an NSO.

 

(c)          Exercise
Price. Each Stock Option Agreement shall specify the Exercise Price. The Exercise Price of an Option shall not be less than
100% of the Fair Market Value of a Share on the Date of Grant, and in the case of an ISO a higher percentage may be required by
Section 3(b). Subject to the preceding sentence, the Exercise Price shall be determined by the Board of Directors at its
sole discretion. The Exercise Price shall be payable in a form described in Section 7. This Subsection (c) shall not
apply to an Option granted pursuant to an assumption of, or substitution for, another option in a manner that complies with Code
Section 424(a) (whether or not the Option is an ISO).

 

(d)          Exercisability.
Each Stock Option Agreement shall specify the date when all or any installment of the Option is to become exercisable. No Option
shall be exercisable unless the Optionee (i) has delivered an executed copy of the Stock Option Agreement to the Company
or (ii) otherwise agrees to be bound by the terms of the Stock Option Agreement. The Board of Directors shall determine the
exercisability provisions of the Stock Option Agreement at its sole discretion.

 

(e)          Basic
Term. The Stock Option Agreement shall specify the term of the Option. The term shall not exceed 10 years from the Date of
Grant, and in the case of an ISO, a shorter term may be required by Section 3(b). Subject to the preceding sentence, the
Board of Directors at its sole discretion shall determine when an Option is to expire.

 

(f)           Termination
of Service (Except by Death). If an Optionee’s Service terminates for any reason other than the Optionee’s death,
then the Optionee’s Options shall expire on the earliest of the following dates:

 

(i)            The
expiration date determined pursuant to Subsection (e) above;

 

    3

     

    

 

(ii)           The
date three months after the termination of the Optionee’s Service for any reason other than Disability, or such earlier
or later date as the Board of Directors may determine (but in no event earlier than 30 days after the termination of the Optionee’s
Service); or

 

(iii)          The
date six months after the termination of the Optionee’s Service by reason of Disability, or such later date as the Board
of Directors may determine.

 

The Optionee may exercise all or part of
the Optionee’s Options at any time before the expiration of such Options under the preceding sentence, but only to the extent
that such Options had become exercisable before the Optionee’s Service terminated (or became exercisable as a result of the
termination) and the underlying Shares had vested before the Optionee’s Service terminated (or vested as a result of the
termination). The balance of such Options shall lapse when the Optionee’s Service terminates. In the event that the Optionee
dies after the termination of the Optionee’s Service but before the expiration of the Optionee’s Options, all or part
of such Options may be exercised (prior to expiration) by the executors or administrators of the Optionee’s estate or by
any person who has acquired such Options directly from the Optionee by beneficiary designation, bequest or inheritance, but only
to the extent that such Options had become exercisable before the Optionee’s Service terminated (or became exercisable as
a result of the termination) and the underlying Shares had vested before the Optionee’s Service terminated (or vested as
a result of the termination).

 

(g)          Leaves
of Absence. For purposes of Subsection (f) above, Service shall be deemed to continue while the Optionee is on a bona
fide leave of absence, if such leave was approved by the Company in writing and if continued crediting of Service for this purpose
is expressly required by the terms of such leave or by applicable law (as determined by the Company).

 

(h)          Death
of Optionee. If an Optionee dies while the Optionee is in Service, then the Optionee’s Options shall expire on the earlier
of the following dates:

 

(i)            The
expiration date determined pursuant to Subsection (e) above; or

 

(ii)           The
date 12 months after the Optionee’s death, or such earlier or later date as the Board of Directors may determine (but in
no event earlier than six months after the Optionee’s death).

 

All or part of the Optionee’s Options
may be exercised at any time before the expiration of such Options under the preceding sentence by the executors or administrators
of the Optionee’s estate or by any person who has acquired such Options directly from the Optionee by beneficiary designation,
bequest or inheritance, but only to the extent that such Options had become exercisable before the Optionee’s death (or became
exercisable as a result of the death) and the underlying Shares had vested before the Optionee’s death (or vested as a result
of the Optionee’s death). The balance of such Options shall lapse when the Optionee dies.

 

    4

     

    

 

(i)            Restrictions
on Transfer of Options. An Option shall be transferable by the Optionee only by (i) a beneficiary designation, (ii) a
will or (iii) the laws of descent and distribution, except as provided in the next sentence. If the applicable Stock Option
Agreement so provides, an NSO shall also be transferable by gift or domestic relations order to a Family Member of the Optionee.
An ISO may be exercised during the lifetime of the Optionee only by the Optionee or by the Optionee’s guardian or legal
representative.

 

(j)            No
Rights as a Stockholder. An Optionee, or a transferee of an Optionee, shall have no rights as a stockholder with respect to
any Shares covered by the Optionee’s Option until such person files a notice of exercise, pays the Exercise Price and satisfies
all applicable withholding taxes pursuant to the terms of such Option.

 

(k)          Modification,
Extension and Assumption of Options. Within the limitations of the Plan, the Board of Directors may modify, extend or assume
outstanding Options or may accept the cancellation of outstanding Options (whether granted by the Company or another issuer) in
return for the grant of new Options or a different type of Award for the same or a different number of Shares and at the same
or a different Exercise Price (if applicable). The foregoing notwithstanding, no modification of an Option shall, without the
consent of the Optionee, impair the Optionee’s rights or increase the Optionee’s obligations under such Option.

 

(l)            Company’s
Right to Cancel Certain Options. Any other provision of the Plan or a Stock Option Agreement notwithstanding, the Company
shall have the right at any time to cancel an Option that was not granted in compliance with Rule 701 under the Securities
Act. Prior to canceling such Option, the Company shall give the Optionee not less than 30 days’ notice in writing. If the
Company elects to cancel such Option, it shall deliver to the Optionee consideration with an aggregate Fair Market Value equal
to the excess of (i) the Fair Market Value of the Shares subject to such Option as of the time of the cancellation over (ii) the
Exercise Price of such Option. The consideration may be delivered in the form of cash or cash equivalents, in the form of Shares,
or a combination of both. If the consideration would be a negative amount, such Option may be cancelled without the delivery of
any consideration.

 

		SECTION 7.	PAYMENT FOR SHARES.

 

(a)           General
Rule. The entire Purchase Price or Exercise Price of Shares issued under the Plan shall be payable in cash or cash equivalents
at the time when such Shares are purchased, except as otherwise provided in this Section 7. In addition, the Board of Directors
in its sole discretion may also permit payment through any of the methods described in (b) through (g) below.

 

(b)           Services
Rendered. Shares may be awarded under the Plan in consideration of services rendered to the Company, a Parent or a Subsidiary
prior to the Award.

 

(c)           Promissory
Note. All or a portion of the Purchase Price or Exercise Price (as the case may be) of Shares issued under the Plan may be
paid with a full-recourse promissory note. The Shares shall be pledged as security for payment of the principal amount of the
promissory note and interest thereon. The interest rate payable under the terms of the promissory note shall not be less than
the minimum rate (if any) required to avoid the imputation of additional interest under the Code. Subject to the foregoing, the
Board of Directors (at its sole discretion) shall specify the term, interest rate, amortization requirements (if any) and other
provisions of such note.

 

    5

     

    

 

(d)           Surrender
of Stock. All or any part of the Exercise Price may be paid by surrendering, or attesting to the ownership of, Shares that
are already owned by the Optionee. Such Shares shall be surrendered to the Company in good form for transfer and shall be valued
at their Fair Market Value as of the date when the Option is exercised.

 

(e)           Exercise/Sale.
If the Stock is publicly traded, all or part of the Exercise Price and any withholding taxes may be paid by the delivery (on a
form prescribed by the Company) of an irrevocable direction to a securities broker approved by the Company to sell Shares and
to deliver all or part of the sales proceeds to the Company.

 

(f)            Net
Exercise.  An Option may permit exercise through a “net exercise” arrangement pursuant to which the Company
will reduce the number of Shares issued upon exercise by the largest whole number of Shares having an aggregate Fair Market Value
(determined by the Board of Directors as of the exercise date) that does not exceed the aggregate Exercise Price or the sum of
the aggregate Exercise Price plus all or a portion of the minimum amount required to be withheld under applicable tax law (with
the Company accepting from the Optionee payment of cash or cash equivalents to satisfy any remaining balance of the aggregate
Exercise Price and, if applicable, any additional withholding obligation not satisfied through such reduction in Shares); provided
that to the extent Shares subject to an Option are withheld in this manner, the number of Shares subject to the Option following
the net exercise will be reduced by the sum of the number of Shares withheld and the number of Shares delivered to the Optionee
as a result of the exercise.

 

(g)           Other
Forms of Payment. To the extent that an Award Agreement so provides, the Purchase Price or Exercise Price of Shares issued
under the Plan may be paid in any other form permitted by the Delaware General Corporation Law, as amended.

 

		SECTION 8.	TERMS AND CONDITIONS OF RESTRICTED STOCK UNITS.

 

(a)           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 and conditions of
the Plan and may be subject to any other terms and conditions that are not inconsistent with the Plan and which the Board of Directors
deems appropriate for inclusion in a Restricted Stock Unit Agreement. The provisions of the various Restricted Stock Unit Agreements
entered into under the Plan need not be identical.

 

(b)           Payment
for Restricted Stock Units. No cash consideration shall be required of the Recipient in connection with the grant of Restricted
Stock Units.

 

(c)           Vesting
Conditions. Restricted Stock Units may or may not be subject to vesting, as determined in the discretion of the Board of Directors.
Vesting may occur, in full or in installments, upon the satisfaction of the vesting conditions specified in the Restricted Stock
Unit Agreement, which may include continued employment or other Service, achievement of performance goals and/or such other criteria
as the Board of Directors may determine. A Restricted Stock Unit Agreement may provide for accelerated vesting upon specified
events.

 

    6

     

    

 

(d)           Forfeiture.
Unless a Restricted Stock Unit Agreement provides otherwise, upon termination of the Recipient’s Service and upon such other
times specified in the Restricted Stock Unit Agreement, any unvested Restricted Stock Units shall be forfeited to the Company.

 

(e)           Leaves
of Absence. For this purpose, Service will not cease if a Recipient is on a bona fide leave of absence that was approved by
the Company in writing and if continued crediting of Service for this purpose is expressly required by the terms of such leave
or by applicable law (as determined by the Company).

 

(f)            Voting
and Dividend Rights. The Recipient of Restricted Stock Units shall have no voting rights. Prior to settlement or forfeiture,
any Restricted Stock Unit granted under the Plan may, at the discretion of the Board of Directors, carry with it a right to dividend
equivalents. Such right entitles the Recipient to be credited with an amount equal to all cash dividends paid on one 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 Shares, or in a combination of both. Prior to distribution,
any dividend equivalents that are not paid shall be subject to the same conditions and restrictions as the Restricted Stock Units
to which they attach.

 

(g)           Form
and Time of Settlement of Restricted Stock Units. Settlement of vested Restricted Stock Units may be made in the form of (i)
cash, (ii) Shares or (iii) any combination of both, as determined by the Board of Directors. 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. Vested Restricted Stock Units shall be settled in such manner and at such time(s) as specified in the Restricted
Stock Unit Agreement. Until Restricted Stock Units are settled, the number of such Restricted Stock Units shall be subject to
adjustment pursuant to Section 9.

 

(h)           Death
of Recipient. Any Restricted Stock Units that become distributable after the Recipient’s death shall be distributed
to the Recipient’s beneficiary or beneficiaries, if any have been designated, or if no beneficiary was designated or if
no designated beneficiary survives the Recipient, then any Restricted Stock Units that become payable after the Recipient’s
death shall be distributed to his or her estate. Each Recipient 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 Recipient’s death.

 

(i)            Creditors’
Rights. A Recipient 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.

 

    7

     

    

 

(j)          Modification,
Extension and Assumption of Restricted Stock Units. Within
the limitations of the Plan, the Board of Directors may modify, extend or assume outstanding Restricted Stock Units. The foregoing
notwithstanding, no modification of a Restricted Stock Unit shall, without the consent of the Recipient, impair the Recipient’s
rights or increase the Recipient’s obligations under such Restricted Stock Unit.

 

(k)         Restrictions
on Transfer of Restricted Stock Units. A Restricted Stock Unit shall be transferable by the Recipient only by (i) a beneficiary
designation, (ii) a will or (iii) the laws of descent and distribution or, if the Board of Directors so provides, in a Restricted
Stock Unit Agreement or otherwise, a Restricted Stock Unit shall also be transferable by gift or domestic relations order to a
Family Member of the Recipient.

 

		SECTION 9.	ADJUSTMENT OF SHARES.

 

(a)          General.
In the event of a subdivision of the outstanding Stock, a declaration of a dividend payable in Shares, a combination or consolidation
of the outstanding Stock into a lesser number of Shares, a reclassification, or any other increase or decrease in the number of
issued shares of Stock effected without receipt of consideration by the Company, proportionate adjustments shall automatically
be made in each of (i) the number and kind of Shares available for future grants under Section 4, (ii) the number
and kind of Shares covered by each outstanding and unexpired Award, (iii) the Exercise Price under each outstanding Option
and the Purchase Price applicable to any unexercised stock purchase right and (iv) any repurchase price that applies to Shares
granted under the Plan pursuant to the terms of a Company repurchase right under the applicable Award Agreement. In the event
of a declaration of an extraordinary dividend payable in a form other than Shares in an amount that has a material effect on the
Fair Market Value of the Stock, a recapitalization, a spin-off, or a similar occurrence, the Board of Directors at its sole discretion
may make appropriate adjustments in one or more of the items listed in clauses (i) through (iv) above; provided, however, that
the Board of Directors shall in any event make such adjustments as may be required by Section 25102(o) of the California
Corporations Code. No fractional Shares shall be issued under the Plan as a result of an adjustment under this Section 9(a), although
the Board of Directors in its sole discretion may make a cash payment in lieu of fractional Shares.

 

(b)          Corporate
Transactions. In the event that the Company is a party to a merger or consolidation, or in the event of a sale of all or substantially
all of the Company’s stock or assets, all Shares acquired under the Plan and all Options and other Plan 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 Board of Directors in its capacity as administrator of the Plan, with such determination having final and binding effect on
all parties), which agreement or determination need not treat all Awards (or all portions of an Award) in an identical manner.
The treatment specified in the transaction agreement or as determined by the Board of Directors may include (without limitation)
one or more of the following with respect to each outstanding Award:

 

(i)            Continuation
of the outstanding Award by the Company (if the Company is the surviving corporation).

 

    8

     

    

 

(ii)           Assumption of the Award by the surviving corporation or its parent, provided that the assumption of Options shall be in
a manner that complies with Code Section 409A (whether or not the Option is an ISO) and, if so determined by the Board of
Directors, with Code Section 424(a) (if the Option is an ISO).

 

(iii)          Substitution by the surviving corporation or its parent of equivalent awards for outstanding Awards (including but not limited
to an award to acquire the same consideration paid to the holders of shares in the transaction) provided that the assumption of
Options shall be in a manner that complies with Code Section 409A (whether or not the Option is an ISO) and, if so determined
by the Board of Directors, with Code Section 424(a) (if the Option is an ISO).

 

(iv)          Cancellation of the Option and a payment to the Optionee with respect to each Share subject to the portion of the Option
that is vested as of the transaction date equal to the excess of (A) the value, as determined by the Board of Directors in
its absolute discretion, of the property (including cash) received by the holder of a share of Stock as a result of the transaction,
over (B) the per-Share Exercise Price of the Option (such excess, the “Spread”).  Such payment shall be
made in the form of cash, cash equivalents, or securities of the surviving corporation 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 Stock. If the Spread applicable
to an Option is zero or a negative number, then the Option may be cancelled without making a payment to the Optionee.

 

(v)           Cancellation of the Option without the payment of any consideration; provided that the Optionee shall be notified of such
treatment and given an opportunity to exercise the Option (to the extent the Option is vested or becomes vested as of the effective
date of the transaction) during a period of not less than five (5) business days preceding the effective date of the transaction,
unless (A) a shorter period is required to permit a timely closing of the transaction and (B) such shorter period still offers
the Optionee a reasonable opportunity to exercise the Option. Any exercise of the Option during such period may be contingent upon
the closing of the transaction.

 

(vi)          Suspension of the Optionee’s right to exercise the Option during a limited period of time preceding the closing of
the transaction if such suspension is administratively necessary to permit the closing of the transaction.

 

(vii)         Termination of any right the Optionee has to exercise the Option prior to vesting in the Shares subject to the Option (i.e.,
 “early exercise”), such that following the closing of the transaction the Option may only be exercised to the extent
it is vested.

 

    9

     

    

 

(viii)       
The cancellation of outstanding Restricted Stock Units
and a payment to the Recipient with respect to each Share subject to the portion of the Restricted Stock Unit that is vested as
of the transaction date equal to the value, as determined by the Board of Directors in its absolute discretion, of the property
(including cash) received by the holder of a share of Stock as a result of the transaction (the “Transaction
Value”). Such payment shall be made in the form of cash, cash equivalents, or securities
of the surviving corporation or its parent having a value equal to the Transaction Value. 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 Stock. In the event that a Restricted Stock Unit is subject to Code Section 409A, the payment
described in this Section 9(b)(viii) shall be made on the settlement date specified in the applicable Restricted Stock Unit Agreement,
provided that settlement may be accelerated in accordance with Treasury Regulation 1.409A-3(j)(4). Any action taken under this
Section 9(b)(viii) must either preserve a Restricted Stock Unit’s status as exempt from Code Section 409A or comply with
Code Section 409A.

 

For the avoidance of doubt, the Board of
Directors has discretion to accelerate, in whole or part, the vesting and exercisability of an Award in connection with a corporate
transaction covered by this Section 9(b).

 

(c)           Reservation
of Rights. Except as provided in this Section 9, a Participant shall have no rights by reason of (i) any subdivision
or consolidation of shares of stock of any class, (ii) the payment of any dividend or (iii) any other increase or decrease
in the number of shares of stock of any class. Any issuance by the Company of shares of stock of any class, or securities convertible
into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number
of Shares subject to an Award or the Exercise Price of an Option. The grant of an Award pursuant to the Plan shall not affect
in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital
or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or
assets.

 

SECTION
10.     MISCELLANEOUS
PROVISIONS.

 

(a)           Securities
Law Requirements. Shares shall not be issued under the Plan unless, in the opinion of counsel acceptable to the Board of Directors,
the issuance and delivery of such Shares comply with (or are exempt from) all applicable requirements of law, including (without
limitation) the Securities Act, 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. The Company
shall not be liable for a failure to issue Shares as a result of such requirements.

 

(b)           No
Retention Rights. Nothing in the Plan or in any Award under the Plan shall confer upon the Participant any right to continue
in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or
any Parent or Subsidiary employing or retaining the Participant) or of the Participant, which rights are hereby expressly reserved
by each, to terminate his or her Service at any time and for any reason, with or without cause.

 

    10

     

    

 

(c)           Treatment
as Compensation. Any compensation that an individual earns or is deemed to earn under this Plan shall not be considered a
part of his or her compensation for purposes of calculating contributions, accruals or benefits under any other plan or program
that is maintained or funded by the Company, a Parent or a Subsidiary.

 

(d)           Governing
Law. The Plan and all Awards under the Plan shall be governed by, and construed in accordance with, the laws of the State
of Delaware, as such laws are applied to contracts entered into and performed in such State.

 

(e)           Conditions
and Restrictions on Shares. 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 Board of Directors 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 Shares generally. In addition, Shares issued under the Plan shall be subject to 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.

 

(f)            Tax
Matters.

 

(i)            As
a condition to the award, grant, issuance, vesting, purchase, exercise or transfer of any Award, or Shares issued pursuant to
any Award, granted under this Plan, the Participant shall make such arrangements as the Board of Directors may require or permit
for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with such
event.

 

(ii)           Unless otherwise expressly set forth in an Award Agreement, it is intended that Awards granted under the Plan shall be exempt
from Code Section 409A, and any ambiguity in the terms of an Award Agreement and the Plan shall be interpreted consistently with
this intent. To the extent an Award is not exempt from Code Section 409A (any such Award, a “409A Award”), any
ambiguity in the terms of such Award and the Plan shall be interpreted in a manner that to the maximum extent permissible supports
the Award’s compliance with the requirements of that statute. Notwithstanding anything to the contrary permitted under the
Plan, in no event shall a modification of an Award not already subject to Code Section 409A be given effect if such modification
would cause the Award to become subject to Code Section 409A unless the parties explicitly acknowledge and consent to the modification
as one having that effect. A 409A Award shall be subject to such additional rules and requirements as specified by the Board of
Directors 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 Section 409A(a)(1). In addition,
if a transaction subject to Section 9(b) constitutes a payment event with respect to any 409A Award, then 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.

 

    11

     

    

 

(iii)          Neither
the Company nor any member of the Board of Directors 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.

 

SECTION
11.     DURATION
AND AMENDMENTS; STOCKHOLDER APPROVAL.

 

(a)           Term
of the Plan. The Plan, as set forth herein, shall become effective on the date of its adoption by the Board of Directors,
subject to approval of the Company’s stockholders under Subsection (d) below. The Plan shall terminate automatically 10
years after the later of (i) the date when the Board of Directors adopted the Plan or (ii) the date when the Board of
Directors approved the most recent increase in the number of Shares reserved under Section 4 that was also approved by the
Company’s stockholders. The Plan may be terminated on any earlier date pursuant to Subsection (b) below.

 

(b)           Right
to Amend or Terminate the Plan. Subject to Subsection (d) below, the Board of Directors may amend, suspend or terminate the
Plan at any time and for any reason.

 

(c)           Effect
of Amendment or Termination. No Shares shall be issued or sold and no Award granted under the Plan after the termination thereof,
except upon exercise of an Option (or any other right to purchase Shares) granted under the Plan prior to such termination. The
termination of the Plan, or any amendment thereof, shall not affect any Share previously issued or any Award previously granted
under the Plan.

 

(d)           Stockholder
Approval. To the extent required by applicable law, the Plan will be subject to approval of the Company’s stockholders
within 12 months of its adoption date. To the extent required by applicable law, any amendment of the Plan will be subject to
the approval of the Company’s stockholders within 12 months of the amendment date if it (i) increases the number of
Shares available for issuance under the Plan (except as provided in Section 9), or (ii) materially changes the class of persons
who are eligible for the grant of ISOs. In addition, an amendment effecting any other material change to the Plan terms will be
subject to approval of the Company’s stockholder only if required by applicable law. Stockholder approval shall not be required
for any other amendment of the Plan.

 

    12

     

    

 

SECTION
12.      DEFINITIONS.

 

(a)           “Award” means any award granted under the Plan, including an Option, Restricted Stock Unit or the grant
or sale of Shares.

 

(b)           “Award Agreement” means a Stock Grant Agreement, Stock Option Agreement, Stock Purchase Agreement or
Restricted Stock Unit Agreement.

 

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

 

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

 

(e)           “Committee” means a committee of the Board of Directors, as described in Section 2(a).

 

(f)            “Company” means Velodyne LiDAR, Inc., a Delaware corporation.

 

(g)           “Consultant”
means a person, excluding Employees and Outside Directors, who performs bona fide services for the Company, a Parent3
or a Subsidiary as a consultant or advisor and who qualifies as a consultant or advisor under Rule 701(c)(1) of the
Securities Act or under Instruction A.1.(a)(1) of Form S-8 under the Securities Act.

 

(h)           “Date of Grant” means the date of grant specified in the applicable Stock Option Agreement, which date
shall be the later of (i) the date on which the Board of Directors resolved to grant the Option or (ii) the first day
of the Optionee’s Service.

 

(i)            “Disability” means that the Optionee is unable to engage in any substantial gainful activity by reason
of any medically determinable physical or mental impairment.

 

(j)            “Employee” means any individual who is a common-law employee of the Company, a Parent4
or a Subsidiary.

 

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

 

(l)            “Exercise Price” means the amount for which one Share may be purchased upon exercise of an Option, as
specified by the Board of Directors in the applicable Stock Option Agreement.

 

(m)          “Fair Market Value” means the fair market value of a Share, as determined by the Board of Directors in
good faith. Such determination shall be conclusive and binding on all persons.

 

 

3 Note that special considerations
apply if the Company proposes to grant awards to consultant or advisor of a Parent company.

4 Note that special considerations
apply if the Company proposes to grant awards to an Employee of a Parent company.

 

    13

     

    

 

(n)           “Family Member” means (i) any child, stepchild, grandchild, parent, stepparent, grandparent, spouse,
former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law,
including adoptive relationships, (ii) any person sharing the Participant’s household (other than a tenant or employee),
(iii) a trust in which persons described in Clause (i) or (ii) have more than 50% of the beneficial interest, (iv) a
foundation in which persons described in Clause (i) or (ii) or the Participant control the management of assets and (v) any
other entity in which persons described in Clause (i) or (ii) or the Participant own more than 50% of the voting interests.

 

(o)           “Grantee” means a person to whom the Board of Directors has awarded Shares under the Plan.

 

(p)           “ISO” means an Option that qualifies as an incentive stock option as described in Code Section 422(b).
Notwithstanding its designation as an ISO, an Option that does not qualify as an ISO under applicable law shall be treated for
all purposes as an NSO.

 

(q)           “NSO” means an Option that does not qualify as an incentive stock option as described in Code Section 422(b)
or 423(b).

 

(r)            “Option” means an ISO or NSO granted under the Plan and entitling the holder to purchase Shares.

 

(s)           “Optionee” means a person who holds an Option.

 

(t)            “Outside Director” means a member of the Board of Directors who is not an Employee.

 

(u)           “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.

 

(v)           “Participant” means a Grantee, Optionee or Purchaser.

 

(w)          “Plan” means this Velodyne LiDAR, Inc. 2016 Stock Plan.

 

(x)           “Purchase Price” means the consideration for which one Share may be acquired under the Plan (other than
upon exercise of an Option), as specified by the Board of Directors.

 

(y)           “Purchaser” means a person to whom the Board of Directors has offered the right to purchase Shares under
the Plan (other than upon exercise of an Option).

 

(z)            “Recipient”
means “a person to whom the Board of Directors has awarded Restricted Stock Units under the Plan.

 

    14

     

    

 

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

 

(bb)         “Restricted
Stock Unit Agreement” means the agreement between the Company and the Recipient of
a Restricted Stock Unit that contains the terms, conditions and restrictions pertaining to such Restricted Stock Unit. 

 

(cc)         “Securities
Act” means the Securities Act of 1933, as amended.

 

(dd)        “Service”
means service as an Employee, Outside Director or Consultant.

 

(ee)         “Share”
means one share of Stock, as adjusted in accordance with Section 9 (if applicable).

 

(ff)          “Stock”
means the Common Stock of the Company.

 

(gg)        “Stock
Grant Agreement” means the agreement between the Company and a Grantee who is awarded Shares under the Plan that contains
the terms, conditions and restrictions pertaining to the award of such Shares.

 

(hh)        “Stock
Option Agreement” means the agreement between the Company and an Optionee that contains the terms, conditions and restrictions
pertaining to the Optionee’s Option.

 

(ii)           “Stock
Purchase Agreement” means the agreement between the Company and a Purchaser who purchases Shares under the Plan that
contains the terms, conditions and restrictions pertaining to the purchase of such Shares.

 

(jj)           “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.

 

    15

     

    

 

Exhibit A

 

Schedule
of Shares Reserved for Issuance under the Plan

 

	Date
of Board 

Approval
	 	Date
of Stockholder

 Approval 
	 	Number
of
 Shares Added
	 	Cumulative
Number

 of Shares
	 
	July 26, 2016	 	July 26, 2016	 	Not Applicable	 	 	5,263,731	 

 

Summary
of Modifications and Amendments to the Plan

 

The following is a summary of material
modifications made to the Plan (including any material deviations from the Gunderson Dettmer precedent form used to create the
Plan): N/A.

 

    E-1

     

    

 

Velodyne LiDAR, Inc. 2016
Stock Plan

 

Notice
of Stock Option Grant (Installment Exercise)

 

The Optionee has been granted the following
option to purchase shares of the Common Stock of Velodyne LiDAR, Inc.:

 

	Name
    of Optionee:	 	«Name»
	 	 	 
	Total
    Number of Shares:	 	«TotalShares»
	 	 	 
	Type of Option:	 	«ISO» Incentive
    Stock Option (ISO)
	 	 	 
	 	 	«NSO» Nonstatutory
    Stock Option (NSO)
	 	 	 
	Exercise
    Price per Share:	 	$«PricePerShare»
	 	 	 
	Date
    of Grant:	 	«DateGrant»
	 	 	 
	Date
    Exercisable:	 	This option
    may be exercised with respect to the first «Percent»% of the Shares subject to this option when the Optionee completes
    «CliffPeriod» months of continuous Service beginning with the Vesting Commencement Date set forth below. This
    option may be exercised with respect to an additional «Fraction»% of the Shares subject to this option when the
    Optionee completes each month of continuous Service thereafter.
	 	 	 
	Vesting
    Commencement Date:	 	«VestComDate»
	 	 	 
	Expiration
    Date:	 	«ExpDate».
    This option expires earlier if the Optionee’s Service terminates earlier, as provided in Section 6 of the Stock
    Option Agreement, or if the Company engages in certain corporate transactions, as provided in Section 9(b) of the Plan.
	 	 	 	 

By signing below, the Optionee and the
Company agree that this option is granted under, and governed by the terms and conditions of, the 2016 Stock Plan and the Stock
Option Agreement. Both of these documents are attached to, and made a part of, this Notice of Stock Option Grant. Section 13
of the Stock Option Agreement includes important acknowledgements of the Optionee.

 

	Optionee:	 	Velodyne LiDAR, Inc.
	 	 	 
	 	 	 
	 	 	By:	         
	 	 	Title:	 

 

    

     

    

 

THE OPTION GRANTED PURSUANT TO THIS
AGREEMENT AND THE SHARES ISSUABLE UPON THE EXERCISE THEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF
COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.

 

Velodyne
LiDAR, Inc. 2016 Stock Plan:

Stock
Option Agreement (Installment Exercise)

 

SECTION
1. Grant Of Option.

 

(a)           Option. On the terms and conditions set forth in the Notice
of Stock Option Grant and this Agreement, the Company grants to the Optionee on the Date of Grant the option to purchase at the
Exercise Price the number of Shares set forth in the Notice of Stock Option Grant. The Exercise Price is agreed to be at least
100% of the Fair Market Value per Share on the Date of Grant (110% of Fair Market Value if this option is designated as an ISO
in the Notice of Stock Option Grant and Section 3(b) of the Plan applies). This option is intended to be an ISO or an NSO,
as provided in the Notice of Stock Option Grant.

 

(b)           $100,000 Limitation. Even if this option is designated as an ISO in the Notice of Stock Option Grant, it shall be
deemed to be an NSO to the extent (and only to the extent) required by the $100,000 annual limitation under Section 422(d)
of the Code.

 

(c)           Stock Plan and Defined Terms. This option is granted pursuant to the Plan, a copy of which the Optionee acknowledges
having received. The provisions of the Plan are incorporated into this Agreement by this reference. Except as otherwise defined
in this Agreement (including without limitation Section 14 hereof), capitalized terms shall have the meaning ascribed to such terms
in the Plan.

 

SECTION
2. Right To Exercise.

 

(a)           Exercisability. Subject to Subsection (b) below and the other conditions set forth in this Agreement, all or
part of this option may be exercised prior to its expiration at the time or times set forth in the Notice of Stock Option Grant.

 

(b)           Stockholder Approval. Any other provision of this Agreement notwithstanding, no portion of this option shall be exercisable
at any time prior to the approval of the Plan by the Company’s stockholders.

 

    

     

    

 

SECTION
3. No Transfer Or Assignment Of Option.

 

Except as otherwise provided
in this Agreement, this option and the rights and privileges conferred hereby shall not be sold, pledged or otherwise transferred
(whether by operation of law or otherwise) and shall not be subject to sale under execution, attachment, levy or similar process.

 

SECTION
4. Exercise Procedures.

 

(a)           Notice of Exercise. The Optionee or the Optionee’s representative may exercise this option by: (i) signing
and delivering written notice to the Company pursuant to Section 12(c) specifying the election to exercise this option, the
number of Shares for which it is being exercised and the form of payment and (ii) delivering payment, in a form permissible under
Section 5, for the full amount of the Purchase Price (together with any applicable withholding taxes under Subsection (b)). In
the event that this option is being exercised by the representative of the Optionee, the notice shall be accompanied by proof (satisfactory
to the Company) of the representative’s right to exercise this option.

 

(b)           Withholding Taxes. In the event that the Company determines that it is required to withhold any tax (including without
limitation any income tax, social insurance contributions, payroll tax, payment on account or other tax-related items arising in
connection with the Optionee’s participation in the Plan and legally applicable to the Optionee (the “Tax-Related
Items”)) as a result of the grant, vesting or exercise of this option, or as a result of the transfer of shares acquired
upon exercise of this option, the Optionee, as a condition of this option, shall make arrangements satisfactory to the Company
to enable it to satisfy all Tax-Related Items. The Optionee acknowledges that the responsibility for all Tax-Related Items is the
Optionee’s and may exceed the amount actually withheld by the Company (or its affiliate or agent).

 

(c)           Issuance of Shares. After satisfying all requirements for exercise of this option, the Company shall cause to be
issued one or more certificates evidencing the Shares for which this option has been exercised. Such Shares shall be registered
(i) in the name of the person exercising this option, (ii) in the names of such person and his or her spouse as community
property or as joint tenants with the right of survivorship or (iii) with the Company’s consent, in the name of a revocable
trust. Until the issuance of the Shares has been entered into the books and records of the Company or a duly authorized transfer
agent of the Company, no right to vote, receive dividends or any other right as a stockholder will exist with respect to such Shares.
The Company shall cause such certificates to be delivered to or upon the order of the person exercising this option.

 

SECTION
5. Payment For Stock.

 

(a)           Cash. All or part of the Purchase Price may be paid in cash or cash equivalents.

 

(b)           Surrender of Stock. At the discretion of the Board of Directors, all or any part of the Purchase Price may be paid
by surrendering, or attesting to the ownership of, Shares that are already owned by the Optionee. Such Shares shall be surrendered
to the Company in good form for transfer and shall be valued at their Fair Market Value as of the date when this option is exercised.

 

    2

     

    

 

(c)           Exercise/Sale. All or part of the Purchase Price and any withholding taxes may be paid by the delivery (on a form
prescribed by the Company) of an irrevocable direction to a securities broker approved by the Company to sell Shares and to deliver
all or part of the sales proceeds to the Company. However, payment pursuant to this Subsection (c) shall be permitted only
if (i) Stock then is publicly traded and (ii) such payment does not violate applicable law.

 

SECTION
6. Term And Expiration.

 

(a)           Basic Term. This option shall in any event expire on the expiration date set forth in the Notice of Stock Option
Grant, which date is 10 years after the Date of Grant (five years after the Date of Grant if this option is designated as an ISO
in the Notice of Stock Option Grant and Section 3(b) of the Plan applies).

 

(b)           Termination of Service (Except by Death). If the Optionee’s Service terminates for any reason other than death,
then this option shall expire on the earliest of the following occasions:

 

(i)            The expiration date determined pursuant to Subsection (a) above;

 

(ii)           The date three months after the termination of the Optionee’s Service for any reason other than Disability; or

 

(iii)          The date six months after the termination of the Optionee’s Service by reason of Disability.

 

The Optionee may exercise all or part of
this option at any time before its expiration under the preceding sentence, but only to the extent that this option had become
exercisable before the Optionee’s Service terminated. When the Optionee’s Service terminates, this option shall expire
immediately with respect to the number of Shares for which this option is not yet exercisable. In the event that the Optionee dies
after termination of Service but before the expiration of this option, all or part of this option may be exercised (prior to expiration)
by the executors or administrators of the Optionee’s estate or by any person who has acquired this option directly from the
Optionee by beneficiary designation, bequest or inheritance, but only to the extent that this option had become exercisable before
the Optionee’s Service terminated. Once this option (or portion thereof) has terminated, the Optionee shall have no further
rights with respect to the option (or portion thereof) or to the underlying Shares.

 

(c)           Death of the Optionee. If the Optionee dies while in Service, then this option shall expire on the earlier of the
following dates:

 

(i)            The expiration date determined pursuant to Subsection (a) above; or

 

    3

     

    

 

(ii)           The date 12 months after the Optionee’s death.

 

All or part of this option may be exercised
at any time before its expiration under the preceding sentence by the executors or administrators of the Optionee’s estate
or by any person who has acquired this option directly from the Optionee by beneficiary designation, bequest or inheritance, but
only to the extent that this option had become exercisable before the Optionee’s death. When the Optionee dies, this option
shall expire immediately with respect to the number of Shares for which this option is not yet exercisable. Once this option (or
portion thereof) has terminated, the Optionee shall have no further rights with respect to the option (or portion thereof) or to
the underlying Shares.

 

(d)           Extension of Post-Termination Exercise Periods. Following the date on which the Company’s Stock is first listed
for trading on an established securities market, if during any part of the exercise period described in Subsections (b)(ii) or
(iii) or Subsection (c)(ii) above the exercise of this option would be prohibited solely because the issuance of Shares upon such
exercise would violate the registration requirements under the Securities Act or a similar provision of other applicable law, then
instead of terminating at the end of such prescribed period, the then-vested portion of this option will instead remain outstanding
and not expire until the earlier of (i) the expiration date determined pursuant to Section 6(a) above or (ii) the date on which
the then-vested portion of this option has been exercisable without violation of applicable law for the aggregate period (which
need not be consecutive) after termination of the Optionee’s Service specified in the applicable Subsection above.

 

(e)           Part-Time Employment and Leaves of Absence. If the Optionee commences working on a part-time basis, then the Company
may adjust the vesting schedule set forth in the Notice of Stock Option Grant. If the Optionee goes on a leave of absence, then
the Company may adjust the vesting schedule set forth in the Notice of Stock Option Grant in accordance with the Company’s
leave of absence policy or the terms of such leave. Except as provided in the preceding sentence, Service shall be deemed to continue
for any purpose under this Agreement while the Optionee is on a bona fide leave of absence, if (i) such leave was approved
by the Company in writing and (ii) continued crediting of Service for such purpose is expressly required by the terms of such
leave or by applicable law (as determined by the Company). Service shall be deemed to terminate when such leave ends, unless the
Optionee immediately returns to active work.

 

(f)            Notice Concerning ISO Treatment. Even if this option is designated as an ISO in the Notice of Stock Option Grant,
it ceases to qualify for favorable tax treatment as an ISO to the extent that it is exercised:

 

(i)            More than three months after the date when the Optionee ceases to be an Employee for any reason other than death or permanent
and total disability (as defined in Section 22(e)(3) of the Code);

 

(ii)           More than 12 months after the date when the Optionee ceases to be an Employee by reason of permanent and total disability
(as defined in Section 22(e)(3) of the Code); or

 

    4

     

    

 

(iii)          More than three months after the date when the Optionee has been on a leave of absence for three months, unless the Optionee’s
reemployment rights following such leave were guaranteed by statute or by contract.

 

SECTION
7. Right Of First Refusal.

 

(a)           Right of First Refusal. In the event that the Optionee proposes to sell, pledge or otherwise transfer to a third
party any Shares acquired under this Agreement, or any interest in such Shares, the Company shall have the Right of First Refusal
with respect to all (and not less than all) of such Shares. If the Optionee desires to transfer Shares acquired under this Agreement,
the Optionee shall give a written Transfer Notice to the Company describing fully the proposed transfer, including the number of
Shares proposed to be transferred, the proposed transfer price, the name and address of the proposed Transferee and proof satisfactory
to the Company that the proposed sale or transfer will not violate any applicable federal, State or foreign securities laws. The
Transfer Notice shall be signed both by the Optionee and by the proposed Transferee and must constitute a binding commitment of
both parties to the transfer of the Shares. The Company shall have the right to purchase all, and not less than all, of the Shares
on the terms of the proposal described in the Transfer Notice (subject, however, to any change in such terms permitted under Subsection (b)
below) by delivery of a notice of exercise of the Right of First Refusal within 30 days after the date when the Transfer Notice
was received by the Company.

 

(b)           Transfer of Shares. If the Company fails to exercise its Right of First Refusal within 30 days after the date
when it received the Transfer Notice, the Optionee may, not later than 90 days following receipt of the Transfer Notice by
the Company, conclude a transfer of the Shares subject to the Transfer Notice on the terms and conditions described in the Transfer
Notice, provided that any such sale is made in compliance with applicable federal, State and foreign securities laws and not in
violation of any other contractual restrictions to which the Optionee is bound. Any proposed transfer on terms and conditions different
from those described in the Transfer Notice, as well as any subsequent proposed transfer by the Optionee, shall again be subject
to the Right of First Refusal and shall require compliance with the procedure described in Subsection (a) above. If the Company
exercises its Right of First Refusal, the parties shall consummate the sale of the Shares on the terms set forth in the Transfer
Notice within 60 days after the date when the Company received the Transfer Notice (or within such longer period as may have
been specified in the Transfer Notice); provided, however, that in the event the Transfer Notice provided that payment for the
Shares was to be made in a form other than cash or cash equivalents paid at the time of transfer, the Company shall have the option
of paying for the Shares with cash or cash equivalents equal to the present value of the consideration described in the Transfer
Notice.

 

(c)           Additional or Exchanged Securities and Property. In the event of a merger or consolidation of the Company, a sale
of all or substantially all of the Company’s stock or assets, any other corporate reorganization, a stock split, the declaration
of a stock dividend, the declaration of an extraordinary dividend payable in a form other than stock, a spin-off, an adjustment
in conversion ratio, a recapitalization or a similar transaction affecting the Company’s outstanding securities, any securities
or other property (including cash or cash equivalents) that are by reason of such transaction exchanged for, or distributed with
respect to, any Shares subject to this Section 7 shall immediately be subject to the Right of First Refusal. Appropriate adjustments
to reflect the exchange or distribution of such securities or property shall be made to the number and/or class of the Shares subject
to this Section 7.

 

    5

     

    

 

(d)           Termination of Right of First Refusal. Any other provision of this Section 7 notwithstanding, in the event that
the Stock is readily tradable on an established securities market when the Optionee desires to transfer Shares, the Company shall
have no Right of First Refusal, and the Optionee shall have no obligation to comply with the procedures prescribed by Subsections (a)
and (b) above.

 

(e)           Permitted Transfers. This Section 7 shall not apply to (i) a transfer by beneficiary designation, will
or intestate succession or (ii) a transfer to one or more members of the Optionee’s Immediate Family or to a trust established
by the Optionee for the benefit of the Optionee and/or one or more members of the Optionee’s Immediate Family, provided in
either case that the Transferee agrees in writing on a form prescribed by the Company to be bound by all provisions of this Agreement.
If the Optionee transfers any Shares acquired under this Agreement, either under this Subsection (e) or after the Company
has failed to exercise the Right of First Refusal, then this Agreement shall apply to the Transferee to the same extent as to the
Optionee.

 

(f)            Termination of Rights as Stockholder. If the Company makes available, at the time and place and in the amount and
form provided in this Agreement, the consideration for the Shares to be purchased in accordance with this Section 7, then
after such time the person from whom such Shares are to be purchased shall no longer have any rights as a holder of such Shares
(other than the right to receive payment of such consideration in accordance with this Agreement). Such Shares shall be deemed
to have been purchased in accordance with the applicable provisions hereof, whether or not the certificate(s) therefor have been
delivered as required by this Agreement.

 

(g)           Assignment of Right of First Refusal. The Board of Directors may freely assign the Company’s Right of First
Refusal, in whole or in part. Any person who accepts an assignment of the Right of First Refusal from the Company shall assume
all of the Company’s rights and obligations under this Section 7.

 

SECTION
8. Legality Of Initial Issuance.

 

No Shares shall be issued
upon the exercise of this option unless and until the Company has determined that:

 

(a)           It and the Optionee have taken any actions required to register the Shares under the Securities Act or to perfect an exemption
from the registration requirements thereof;

 

(b)           Any applicable listing requirement of any stock exchange or other securities market on which Stock is listed has been satisfied;
and

 

    6

     

    

 

(c)           Any other applicable provision of federal, State or foreign law has been satisfied.

 

SECTION
9. No Registration Rights.

 

The Company may, but
shall not be obligated to, register or qualify the sale of Shares under the Securities Act or any other applicable law. The Company
shall not be obligated to take any affirmative action in order to cause the sale of Shares under this Agreement to comply with
any law.

 

SECTION
10. Restrictions On Transfer of shares.

 

(a)           Securities Law Restrictions. Regardless of whether the offer and sale of Shares under the Plan have been registered
under the Securities Act or have been registered or qualified under the securities laws of any State or other relevant jurisdiction,
the Company at its discretion may impose restrictions upon the sale, pledge or other transfer of such Shares (including the placement
of appropriate legends on the stock certificates (or electronic equivalent) or the imposition of stop-transfer instructions) and
may refuse (or may be required to refuse) to transfer Shares acquired hereunder (or Shares proposed to be transferred in a subsequent
transfer) if, in the judgment of the Company, such restrictions, legends or refusal are necessary or appropriate to achieve compliance
with the Securities Act or other relevant securities or other laws, including without limitation under Regulation S of the Securities
Act or pursuant to another available exemption from registration. 

 

(b)           Market Stand-Off. In connection with any underwritten public offering by the Company of its equity securities pursuant
to an effective registration statement filed under the Securities Act, including the Company’s initial public offering, the
Optionee or a Transferee shall not directly or indirectly sell, make any short sale of, loan, hypothecate, pledge, offer, grant
or sell any option or other contract for the purchase of, purchase any option or other contract for the sale of, or otherwise dispose
of or transfer, or agree to engage in any of the foregoing transactions with respect to, any Shares acquired under this Agreement
without the prior written consent of the Company or its managing underwriter. Such restriction (the “Market Stand-Off”)
shall be in effect for such period of time following the date of the final prospectus for the offering as may be requested by the
Company or such underwriter. In no event, however, shall such period exceed 180 days plus such additional period as may reasonably
be requested by the Company or such underwriter to accommodate regulatory restrictions on (i) the publication or other distribution
of research reports or (ii) analyst recommendations and opinions, including (without limitation) the restrictions set forth
in Rule 2711(f)(4) of the National Association of Securities Dealers and Rule 472(f)(4) of the New York Stock Exchange,
as amended, or any similar successor rules. The Market Stand-Off shall in any event terminate two years after the date of the Company’s
initial public offering. In the event of the declaration of a stock dividend, a spin-off, a stock split, an adjustment in conversion
ratio, a recapitalization or a similar transaction affecting the Company’s outstanding securities without receipt of consideration,
any new, substituted or additional securities which are by reason of such transaction distributed with respect to any Shares subject
to the Market Stand-Off, or into which such Shares thereby become convertible, shall immediately be subject to the Market Stand-Off.
In order to enforce the Market Stand-Off, the Company may impose stop-transfer instructions with respect to the Shares acquired
under this Agreement until the end of the applicable stand-off period. The Company’s underwriters shall be beneficiaries
of the agreement set forth in this Subsection (b). This Subsection (b) shall not apply to Shares registered in the public
offering under the Securities Act.

 

    7

     

    

 

(c)           Investment Intent at Grant. The Optionee represents and agrees that the Shares to be acquired upon exercising this
option will be acquired for investment, and not with a view to the sale or distribution thereof.

 

(d)           Investment Intent at Exercise. In the event that the sale of Shares under the Plan is not registered under the Securities
Act but an exemption is available that requires an investment representation or other representation, the Optionee shall represent
and agree at the time of exercise that the Shares being acquired upon exercising this option are being acquired for investment,
and not with a view to the sale or distribution thereof, and shall make such other representations as are deemed necessary or appropriate
by the Company and its counsel, including (if applicable because the Company is relying on Regulation S under the Securities Act)
that as of the date of exercise the Optionee is (i) not a U.S. Person; (ii) not acquiring the Shares on behalf, or for the account
or benefit, of a U.S. Person; and (iii) is not exercising the option in the United States.

 

(e)           Legends. All certificates evidencing Shares purchased under this Agreement shall bear the following legend:

 

“THE SHARES REPRESENTED HEREBY
MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED OR IN ANY MANNER DISPOSED OF, EXCEPT IN COMPLIANCE WITH THE TERMS OF A WRITTEN
AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER OF THE SHARES (OR THE PREDECESSOR IN INTEREST TO THE SHARES). SUCH AGREEMENT
GRANTS TO THE COMPANY CERTAIN RIGHTS OF FIRST REFUSAL UPON AN ATTEMPTED TRANSFER OF THE SHARES. IN ADDITION, THE SHARES ARE SUBJECT
TO RESTRICTIONS ON TRANSFER FOR A LIMITED PERIOD FOLLOWING THE EFFECTIVE DATE OF THE UNDERWRITTEN PUBLIC OFFERING OF THE COMPANY’S
SECURITIES AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF BY THE HOLDER WITHOUT THE CONSENT OF THE COMPANY OR THE MANAGING UNDERWRITER.
THE SECRETARY OF THE COMPANY WILL UPON WRITTEN REQUEST FURNISH A COPY OF SUCH AGREEMENT TO THE HOLDER HEREOF WITHOUT CHARGE.”

 

All certificates evidencing Shares purchased
under this Agreement in an unregistered transaction shall bear the following legend (and such other restrictive legends as are
required or deemed advisable under the provisions of any applicable law):

 

    8

     

    

 

“THE SHARES REPRESENTED HEREBY
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR ANY SECURITIES LAWS OF ANY U.S.
STATE, AND MAY NOT BE SOLD, REOFFERED, PLEDGED, ASSIGNED, ENCUMBERED OR OTHERWISE TRANSFERRED OR DISPOSED WITHOUT AN EFFECTIVE
REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION
IS NOT REQUIRED. IN THE ABSENCE OF REGISTRATION OR THE AVAILABILITY (CONFIRMED BY OPINION OF COUNSEL) OF AN ALTERNATIVE EXEMPTION
FROM REGISTRATION UNDER THE ACT (INCLUDING WITHOUT LIMITATION IN ACCORDANCE WITH REGULATION S UNDER THE ACT), THESE SHARES MAY
NOT BE SOLD, REOFFERED, PLEDGED, ASSIGNED, ENCUMBERED OR OTHERWISE TRANSFERRED OR DISPOSED OF. HEDGING TRANSACTIONS INVOLVING THESE
SHARES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT.”

 

(f)            Removal of Legends. If, in the opinion of the Company and its counsel, any legend placed on a stock certificate representing
Shares sold under this Agreement is no longer required, the holder of such certificate shall be entitled to exchange such certificate
for a certificate representing the same number of Shares but without such legend.

 

(g)           Administration. Any determination by the Company and its counsel in connection with any of the matters set forth
in this Section 10 shall be conclusive and binding on the Optionee and all other persons.

 

SECTION
11. Adjustment Of Shares.

 

In the event of any transaction
described in Section 9(a) of the Plan, the terms of this option (including, without limitation, the number and kind of Shares
subject to this option and the Exercise Price) shall be adjusted as set forth in Section 9(a) of the Plan. In the event that
the Company is a party to a merger or consolidation or in the event of a sale of all or substantially all of the Company’s
stock or assets, this option shall be subject to the treatment provided by the Board of Directors in its sole discretion, as provided
in Section 9(b) of the Plan.

 

SECTION
12. Miscellaneous Provisions.

 

(a)           Rights as a Stockholder. Neither the Optionee nor the Optionee’s representative shall have any rights as a
stockholder with respect to any Shares subject to this option until the Optionee or the Optionee’s representative becomes
entitled to receive such Shares by filing a notice of exercise and paying the Purchase Price pursuant to Sections 4 and 5.

 

(b)           No Retention Rights. Nothing in this option or in the Plan shall confer upon the Optionee any right to continue in
Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any
Parent or Subsidiary employing or retaining the Optionee) or of the Optionee, which rights are hereby expressly reserved by each,
to terminate his or her Service at any time and for any reason, with or without cause.

 

(c)           Notice. Any notice required by the terms of this Agreement shall be given in writing. It shall be deemed effective
upon (i) personal delivery, (ii) deposit with the United States Postal Service, by registered or certified mail, with
postage and fees prepaid, (iii) deposit with Federal Express Corporation, with shipping charges prepaid or (iv) deposit with
any internationally recognized express mail courier service. Notice shall be addressed to the Company at its principal executive
office and to the Optionee at the address that he or she most recently provided to the Company in accordance with this Subsection (c).

 

    9

     

    

 

(d)           Modifications and Waivers. No provision of this Agreement shall be modified, waived or discharged unless the modification,
waiver or discharge is agreed to in writing and signed by the Optionee and by an authorized officer of the Company (other than
the Optionee). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement
by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another
time.

 

(e)           Entire Agreement. The Notice of Stock Option Grant, this Agreement and the Plan constitute the entire contract between
the parties hereto with regard to the subject matter hereof. They supersede any other agreements, representations or understandings
(whether oral or written and whether express or implied) that relate to the subject matter hereof.

 

(f)            Choice of Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware,
as such laws are applied to contracts entered into and performed in such State.

 

SECTION
13. acknowledgements of the optionee.

 

In addition to the other
terms, conditions and restrictions imposed on this option and the Shares issuable under this option pursuant to this Agreement
and the Plan, the Optionee expressly acknowledges being subject to Sections 7 (Right of First Refusal), 8 (Legality of Initial
Issuance) and 10 (Restrictions on Transfer of Shares, including without limitation the Market Stand-Off), as well as the following
provisions:

 

(a)           Tax Consequences (No Liability for Discounted Options). The Optionee agrees that the Company does not have a duty
to design or administer the Plan or its other compensation programs in a manner that minimizes the Optionee’s tax liabilities.
The Optionee shall not make any claim against the Company or its Board of Directors, officers or employees related to tax liabilities
arising from this option or the Optionee’s other compensation. In particular, any Optionee subject to U.S. taxation acknowledges
that this option is exempt from Section 409A of the Code only if the Exercise Price is at least equal to the Fair Market Value
per Share on the Date of Grant. Since Shares are not traded on an established securities market, the determination of their Fair
Market Value is made by the Board of Directors or by an independent valuation firm retained by the Company. The Optionee acknowledges
that there is no guarantee in either case that the Internal Revenue Service will agree with the valuation, and the Optionee shall
not make any claim against the Company or its Board of Directors, officers or employees in the event that the Internal Revenue
Service asserts that the valuation was too low.

 

(b)           Electronic Delivery of Documents. The Optionee agrees to accept by email all documents relating to the Company, the
Plan or this option and all other documents that the Company is required to deliver to its security holders (including, without
limitation, disclosures that may be required by the Securities and Exchange Commission). The Optionee also agrees that the Company
may deliver these documents by posting them on a website maintained by the Company or by a third party under contract with the
Company. If the Company posts these documents on a website, it shall notify the Optionee by email of their availability. The Optionee
acknowledges that he or she may incur costs in connection with electronic delivery, including the cost of accessing the internet
and printing fees, and that an interruption of internet access may interfere with his or her ability to access the documents. This
consent shall remain in effect until this option expires or until the Optionee gives the Company written notice that it should
deliver paper documents.

 

    10

     

    

 

(c)           No Notice of Expiration Date. The Optionee agrees that the Company and its officers, employees, attorneys and agents
do not have any obligation to notify him or her prior to the expiration of this option pursuant to Section 6, regardless of
whether this option will expire at the end of its full term or on an earlier date related to the termination of the Optionee’s
Service. The Optionee further agrees that he or she has the sole responsibility for monitoring the expiration of this option and
for exercising this option, if at all, before it expires. This Subsection (c) shall supersede any contrary representation
that may have been made, orally or in writing, by the Company or by an officer, employee, attorney or agent of the Company.

 

(d)           Waiver of Statutory Information Rights. The Optionee acknowledges and agrees that, upon exercise of this option and
until the first sale of the Company’s Stock to the general public pursuant to a registration statement filed under the Securities
Act, he or she will be deemed to have waived any rights the Optionee might otherwise have had under Section 220 of the Delaware
General Corporation Law (or under similar rights under other applicable law) to inspect for any proper purpose and to make copies
and extracts from the Company’s stock ledger, a list of its stockholders and its other books and records or the books and
records of any subsidiary.  This waiver applies only in the Optionee’s capacity as a stockholder and does not affect
any other inspection rights the Optionee may have under other law or pursuant to a written agreement with the Company. 

 

(e)           Plan
Discretionary. The Optionee understands and acknowledges that (i) the Plan is entirely discretionary, (ii) the Company
and the Optionee’s employer have reserved the right to amend, suspend or terminate the Plan at any time, (iii) the
grant of an option does not in any way create any contractual or other right to receive additional grants of options (or benefits
in lieu of options) at any time or in any amount and (iv) all determinations with respect to any additional grants, including
(without limitation) the times when options will be granted, the number of Shares offered, the Exercise Price and the vesting
schedule, will be at the sole discretion of the Company.

 

(f)            Termination of Service. The Optionee understands and acknowledges that participation in the Plan ceases upon termination
of his or her Service for any reason, except as may explicitly be provided otherwise in the Plan or this Agreement.

 

(g)           Extraordinary Compensation. The value of this option shall be an extraordinary item of compensation outside the scope
of the Optionee’s employment contract, if any, and shall not be considered a part of his or her normal or expected compensation
for purposes of calculating severance, resignation, redundancy or end-of-service payments, bonuses, long-service awards, pension
or retirement benefits or similar payments.

 

    11

     

    

 

(h)           Authorization
to Disclose. The Optionee hereby authorizes and directs the Optionee’s employer to disclose to the Company or any Subsidiary
any information regarding the Optionee’s employment, the nature and amount of the Optionee’s compensation and the
fact and conditions of the Optionee’s participation in the Plan, as the Optionee’s employer deems necessary or appropriate
to facilitate the administration of the Plan.

 

(i)            Personal
Data Authorization. The Optionee consents to the collection, use and transfer of personal data as described in this Subsection (i).
The Optionee understands and acknowledges that the Company, the Optionee’s employer and the Company’s other Subsidiaries
hold certain personal information regarding the Optionee for the purpose of managing and administering the Plan, including (without
limitation) the Optionee’s name, home address, telephone number, date of birth, social insurance number, salary, nationality,
job title, any Shares or directorships held in the Company and details of all options or any other entitlements to Shares awarded,
canceled, exercised, vested, unvested or outstanding in the Optionee’s favor (the “Data”). The Optionee
further understands and acknowledges that the Company and/or its Subsidiaries will transfer Data among themselves as necessary
for the purpose of implementation, administration and management of the Optionee’s participation in the Plan and that the
Company and/or any Subsidiary may each further transfer Data to any third party assisting the Company in the implementation, administration
and management of the Plan. The Optionee understands and acknowledges that the recipients of Data may be located in the United
States or elsewhere. The Optionee authorizes such recipients to receive, possess, use, retain and transfer Data, in electronic
or other form, for the purpose of administering the Optionee’s participation in the Plan, including a transfer to any broker
or other third party with whom the Optionee elects to deposit Shares acquired under the Plan of such Data as may be required for
the administration of the Plan and/or the subsequent holding of Shares on the Optionee’s behalf. The Optionee may, at any
time, view the Data, require any necessary modifications of Data or withdraw the consents set forth in this Subsection (i)
by contacting the Company in writing.

 

SECTION
14. Definitions.

 

(a)           “Agreement”
shall mean this Stock Option Agreement.

 

(b)           “Board
of Directors” shall mean the Board of Directors of the Company, as constituted from time to time or, if a Committee
has been appointed, such Committee.

 

(c)           “Company”
shall mean Velodyne LiDAR, Inc., a Delaware corporation.

 

(d)           “Immediate
Family” shall mean any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law and shall include adoptive relationships.

 

(e)           “Optionee”
shall mean the person named in the Notice of Stock Option Grant.

 

(f)            “Plan”
shall mean the Velodyne LiDAR, Inc. 2016 Stock Plan, as in effect on the Date of Grant.

 

    12 

     

    

 

(g)           “Purchase
Price” shall mean the Exercise Price multiplied by the number of Shares with respect to which this option is being exercised.

 

(h)           “Right
of First Refusal” shall mean the Company’s right of first refusal described in Section 7.

 

(i)            “Service”
shall mean service as an Employee, Outside Director or Consultant.

 

(j)            “Transferee”
shall mean any person to whom the Optionee has directly or indirectly transferred any Share acquired under this Agreement.

 

(k)           “Transfer
Notice” shall mean the notice of a proposed transfer of Shares described in Section 7.

 

(l)            “U.S.
Person” shall mean a person described in Rule 902(k) of Regulation S of the Securities Act (or any successor rule or
provision), which generally defines a U.S. person as any natural person resident in the United States, any estate of which any
executor or administrator is a U.S. Person, or any trust of which of any trustee is a U.S. Person.

 

    13 

     

    

 

Velodyne
LiDAR, Inc. 2016 Stock Plan

Notice
of Stock Option Exercise (Installment Exercise)

 

You
must sign this Notice on Page 3 before submitting it to the Company.

 

Optionee Information:

 

	Name: 	 	 	Social Security Number:	 
	Address:	 	 	Employee Number:	 
	 	 	 	 

 

Option Information:

 

	Date of Grant: _____________ ___,
    20__	 	Type of Stock Option:
	Exercise Price per Share: $________	 	 ̈  Nonstatutory
    (NSO)
	Total number of shares of Common Stock of Velodyne LiDAR, Inc. (the
    “Company”) covered by the option: __________________	 	 ̈  Incentive
    (ISO)

 

Exercise Information:

 

	Number of shares of Common Stock of the Company for which the option is being exercised now: ________________.  (These shares are referred to below as the “Purchased Shares.”)
	Total Exercise Price for the Purchased Shares: $____________
	Form of payment enclosed [check all that apply]:
	 ̈	Check for $____________, payable to “Velodyne LiDAR, Inc.”
	 ̈	Certificate(s) for ________________ shares of Common Stock of the Company.  These shares will be valued as of the date this notice is received by the Company.  [Requires Company consent.]
	 ̈	Attestation Form covering ________________ shares of Common Stock of the Company.  These shares will be valued as of the date this notice is received by the Company.  [Requires Company consent.]
	Name(s) in which the Purchased Shares should be registered [please review the attached explanation of the available forms of ownership, and then check one box]:
	 ̈	In my name only

  

    

     

    

 

	 ̈	In the names of my spouse and myself as community
    property	 	

    My spouse’s name (if applicable):
	 ̈	In the names of my spouse and myself as community
    property with the right of survivorship	 	_____________________________________
	 ̈	In the names of my spouse and myself as joint
    tenants with the right of survivorship	 	 
	 ̈	In the name of an eligible
    revocable trust [requires Stock Transfer Agreement]	 	Full
    legal name of revocable trust:

    _____________________________________

    _____________________________________

    _____________________________________

 

	The
    certificate for the Purchased Shares should be sent to the following address:	 	___________________________________________

    ___________________________________________

    ___________________________________________

    ___________________________________________

 
Representations
                                         and Acknowledgements of the Optionee:

 

		1.	I represent
                                         and warrant to the Company that I am acquiring and will hold the Purchased Shares for
                                         investment for my account only, and not with a view to, or for resale in connection with,
                                         any “distribution” of the Purchased Shares within the meaning of the Securities
                                         Act of 1933, as amended (the “Securities Act”).

 

		2.	I understand
                                         that my purchase of the Purchased Shares has not been registered under the Securities
                                         Act by reason of a specific exemption therefrom and that the Purchased Shares must be
                                         held indefinitely, unless they are subsequently registered under the Securities Act or
                                         I obtain an opinion of counsel (in form and substance satisfactory to the Company and
                                         its counsel) that registration is not required.

 

		3.	I acknowledge
                                         that the Company is under no obligation to register the Purchased Shares or any sale
                                         or transfer thereof.

 

		4.	I am
                                         aware of Rule 144 under the Securities Act, which permits limited public resales of securities
                                         acquired in a non-public offering, subject to the satisfaction of certain conditions.
                                         These conditions may include (without limitation) that certain current public information
                                         about the issuer be available, that the resale occur only after a holding period required
                                         by Rule 144 has been satisfied, that the sale occur through an unsolicited “broker’s
                                         transaction” and that the amount of securities being sold during any three-month
                                         period not exceed specified limitations. I understand that the conditions for resale
                                         set forth in Rule 144 have not been satisfied as of the date set forth below, and
                                         that the Company is not required to take action to satisfy any conditions applicable
                                         to it.

 

		5.	I will
                                         not sell, transfer or otherwise dispose of the Purchased Shares in violation of the Securities
                                         Act, the Securities Exchange Act of 1934, or the rules promulgated thereunder, including
                                         Rule 144 under the Securities Act.

 

		6.	I acknowledge
                                         that I have received and had access to such information as I consider necessary or appropriate
                                         for deciding whether to invest in the Purchased Shares and that I had an opportunity
                                         to ask questions and receive answers from the Company regarding the terms and conditions
                                         of the issuance of the Purchased Shares.

 

    2 

     

    

 

		7.	I am
                                         aware that my investment in the Company is a speculative investment that has limited
                                         liquidity and is subject to the risk of complete loss. I am able, without impairing my
                                         financial condition, to hold the Purchased Shares for an indefinite period and to suffer
                                         a complete loss of my investment in the Purchased Shares.

 

		8.	I acknowledge
                                         that the Purchased Shares remain subject to the Company’s right of first refusal
                                         and the market stand-off (sometimes referred to as the “lock-up”), all in
                                         accordance with the applicable Notice of Stock Option Grant and Stock Option Agreement.

 

		9.	I acknowledge
                                         that I am acquiring the Purchased Shares subject to all other terms of the Notice of
                                         Stock Option Grant and Stock Option Agreement.

 

		10.	I acknowledge
                                         that I have received a copy of the Company’s explanation of the forms of ownership
                                         available for my Purchased Shares. I acknowledge that the Company has encouraged me to
                                         consult my own adviser to determine the form of ownership that is appropriate for me.
                                         In the event that I choose to transfer my Purchased Shares to a trust, I agree to sign
                                         a Stock Transfer Agreement. In the event that I choose to transfer my Purchased Shares
                                         to a trust that does not satisfy the requirements described in the attached explanation
                                         (i.e., a trust that is not an eligible revocable trust), I also acknowledge that the
                                         transfer will be treated as a “disposition” for tax purposes. As a result,
                                         the favorable ISO tax treatment will be unavailable and other unfavorable tax consequences
                                         may occur.

 

		11.	I acknowledge
                                         that I have received a copy of the Company’s explanation of the federal income
                                         tax consequences of an option exercise. I acknowledge that the Company has encouraged
                                         me to consult my own adviser to determine the tax consequences of acquiring the Purchased
                                         Shares at this time.

 

		12.	I agree
                                         that the Company does not have a duty to design or administer the 2016 Stock Plan or
                                         its other compensation programs in a manner that minimizes my tax liabilities. I will
                                         not make any claim against the Company or its Board of Directors, officers or employees
                                         related to tax liabilities arising from my options or my other compensation. In particular,
                                         I acknowledge that my options are exempt from section 409A of the Internal Revenue
                                         Code only if the exercise price per share is at least equal to the fair market value
                                         per share of the Company’s Common Stock at the time the option was granted by the
                                         Company’s Board of Directors. Since shares of the Company’s Common Stock
                                         are not traded on an established securities market, the determination of their fair market
                                         value was made by the Company’s Board of Directors or by an independent valuation
                                         firm retained by the Company. I acknowledge that there is no guarantee in either case
                                         that the Internal Revenue Service will agree with the valuation, and I will not make
                                         any claim against the Company or its Board of Directors, officers or employees in the
                                         event that the Internal Revenue Service asserts that the valuation was too low.

 

		13.	I agree
                                         to seek the consent of my spouse to the extent required by the Company to enforce the
                                         foregoing.

 

	Signature:	 	Date:
	 	 	 
	 	 	 
	_____________________________________________	 	_____________________________________________

 

    3 

     

    

 

Velodyne
LiDAR, Inc.

2016 Stock Plan

Notice
of Restricted Stock Unit Award

(Two-Year Post-Termination Limit)

 

You (“Participant”)
have been granted Restricted Stock Units (the “RSUs”) representing shares of Common Stock of Velodyne LiDAR,
Inc. (the “Company”) on the following terms:

 

	Name:	«Name»
	 	 
	Total
    Number of Stock Units Granted:	«TotalStockUnits»
	 	 
	Date
    of Grant:	«DateGrant»
	 	 
	Vesting
    Commencement Date:	«VestComDate»
	 	 
	Expiration
    Date:	The
    Expiration Date shall be the earlier of: (i) the second anniversary of the date on which your continuous Service terminates
    for any reason; and (ii) «OutsideDate»1
	 	 
	Vesting:	You
    will receive a benefit with respect to a RSU only if it vests. Two vesting requirements must be satisfied on or before the
    Expiration Date specified above in order for a RSU to vest – a time-based service requirement (the Time-Based Requirement)
    and a requirement that the Company complete one of the significant corporate transactions described below (the Liquidity Event
    Requirement). Your RSUs will not vest (in whole or in part) if only one (or if neither) of such requirements is satisfied
    on or before the Expiration Date. If both the Time-Based Requirement and the Liquidity Event Requirement are satisfied on
    or before the Expiration Date, the vesting date (“Vesting Date”) of a RSU will be the first date upon which
    both of those requirements are satisfied with respect to that particular RSU.

 

1 The Outside Date shall be the date occurring
immediately prior to the 7th anniversary of the Date of Grant.

 

    

     

    

 

	Time-Based
    Requirement:	The
    Time-Based Requirement will be satisfied in installments as to the RSUs as follows: (i) the requirement will be satisfied
    as to 25% of the RSUs subject to this award when you complete 12 months of continuous Service beginning with the Vesting Commencement
    Date set forth above, and (ii) an additional 6.25% of the RSUs subject to this award when you complete each successive three-month
    period of continuous Service thereafter; in each case, subject to Section 2 of the Restricted Stock Unit Agreement.
	 	 
	Liquidity
    Event Requirement:	The
    Liquidity Event Requirement will be satisfied (as to any then-outstanding RSUs that have not theretofore been terminated pursuant
    to Section 2 of the Restricted Stock Unit Agreement) on the earlier to occur of (i) an IPO, or (ii) a Sale Event.
	 	 
	Settlement:	Settlement
    of RSUs refers to the issuance of Shares (or, if applicable, cash) once the award is vested. If a RSU vests as a result of
    satisfaction of both applicable vesting requirements as described above, the Company will deliver one Share for that RSU at
    the time of settlement, unless at the time of settlement the Board of Directors, in its sole discretion, determines that settlement
    shall, in whole or in part, be in the form of cash, based on the then Fair Market Value of a Share. Settlement shall occur
    on or following the Vesting Date, but not later than two and one-half (21⁄2) months following the end of the year in
    which the Vesting Date applicable to a RSU occurs (the last day of such two and one-half month period is referred to as the
    “Short Term Deferral End Date”). Notwithstanding the above, settlement of RSUs that become vested
    RSUs upon (i) a Sale Event will be made in Shares, unless otherwise specified in the definitive agreement for such Sale Event,
    or (ii) an IPO shall occur on the earlier of (a) the 185th day following the IPO Date or (b) the Short Term Deferral
    End Date.

 

    

     

    

 

	Waiver
    of Inspection Rights:	You
    acknowledge and understand that, but for the waiver made herein, you would be entitled, upon written demand under oath stating
    the purpose thereof, to inspect for any proper purpose, and to make copies and extracts from, the corporation’s stock
    ledger, a list of its stockholders, and its other books and records, and the books and records of subsidiaries of the corporation,
    if any, under the circumstances and in the manner provided in Section 220 of the Delaware General Corporation Law (any and
    all such rights, and any and all such other rights of each stockholder as may be provided for in Section 220, the “Inspection
    Rights”). In light of the foregoing, until the first sale of common stock of the corporation to the general public
    pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission under the
    Securities Act of 1933, as amended, you hereby unconditionally and irrevocably waive the Inspection Rights, whether such Inspection
    Rights would be exercised or pursued directly or indirectly pursuant to Section 220 or otherwise, and covenant and agree never
    to directly or indirectly commence, voluntarily aid in any way, prosecute, assign, transfer, or cause to be commenced any
    claim, action, cause of action, or other proceeding to pursue or exercise the Inspection Rights. The foregoing waiver applies
    to your Inspection Rights in your capacity as a stockholder and shall not affect any rights of a director, in his or her capacity
    as such, under Section 220. The foregoing waiver shall not apply to any of your contractual inspection rights under any written
    agreement with the Company.

 

By signing
below, you and the Company agree that the RSUs are granted under and governed by the terms and conditions of the Company’s
2016 Stock Plan (the “Plan”) and the Restricted Stock Unit Agreement, both of which are attached to and made
a part of this document. Capitalized terms not otherwise defined herein shall have the meaning set forth in the Plan. You hereby
acknowledge that the vesting of the RSUs pursuant to this Notice of Restricted Stock Unit Award is conditioned on the satisfaction
of the Time-Based Requirement and the occurrence, on or before the Expiration Date, of an IPO or Sale Event. You shall have no
right with respect to the RSUs to the extent an IPO or Sale Event does not occur on or before the Expiration Date (regardless
of the extent to which the Time-Based Requirement was satisfied).

 

You further
agree to accept by email all documents relating to the Company, the Plan or these RSUs and all other documents that the Company
is required to deliver to its security holders (including, without limitation, disclosures that may be required by the Securities
and Exchange Commission). You also agree that the Company may deliver these documents by posting them on a website maintained
by the Company or by a third party under contract with the Company. If the Company posts these documents on a website, it will
notify you by email. You acknowledge that you may incur costs in connection with electronic delivery, including the cost of accessing
the internet and printing fees, and that an interruption of internet access may interfere with your ability to access the documents.

 

    

     

    

 

The RSUs
granted hereunder are subject to forfeiture if you breach your confidentiality obligations to the Company or any other obligations
contained in the Proprietary Information and Inventions Agreement or similar confidentiality, non-compete or non-solicitation
agreement between you and the Company or your Employer, as applicable.

 

	 	Velodyne LiDAR,
    Inc.
	 	 
	 	By:	         
	 	Title: President

 

    

     

    

 

Velodyne
LiDAR, Inc.

2016 Stock Plan

Restricted
Stock Unit Agreement

(Two-Year Post-Termination Limit)

 

SECTION
1.         Grant
of Restricted Stock Units.

 

(a)           Grant.
On the terms and conditions set forth in the Notice of Restricted Stock Unit Award and this Agreement, the Company grants to you
on the Date of Grant the number of RSUs set forth in the Notice of Restricted Stock Unit Award. Each RSU represents the right
to receive one share of the Company’s Common Stock on the terms and conditions set forth in this Agreement.

 

(b)           Consideration.
No payment is required for the RSUs that have been granted to you.

 

(c)           Nature
of RSUs; No Rights as a Stockholder. Your RSUs are mere bookkeeping entries and represent only the Company’s unfunded
and unsecured promise to issue Shares on a future date under specified conditions. As a holder of RSUs, you have no rights other
than the rights of a general creditor of the Company. Your RSUs carry neither voting rights nor rights to cash dividends. You
have no rights as a stockholder of the Company unless and until your RSUs are settled pursuant to Section 4.

 

(d)           Transfer
Restrictions. Except as otherwise provided in this Agreement, the RSUs and any right to receive Shares upon settlement of
the RSUs shall not be sold, assigned, transferred, pledged, hypothecated, or otherwise disposed of, including pursuant to any
short position, any “put equivalent position” (as defined in Rule 16a-1(h) promulgated under the Exchange Act), or
any “call equivalent position” (as defined in Rule 16a-1(b) promulgated under the Exchange Act) by you prior to the
settlement of the RSUs. However, you may designate a third party who, in the event of your death, shall thereafter be entitled
to receive any distribution of Shares to which you were entitled at the time of your death pursuant to this Agreement by delivering
a written beneficiary designation to the Company’s headquarters on the prescribed form before your death. If you deliver
no such beneficiary designation or if your designated beneficiaries do not survive you, your estate will receive payments in respect
of any vested RSUs.

 

(e)           Stock
Plan and Defined Terms. Your RSUs are granted pursuant to the Plan, a copy of which you acknowledge having received. The provisions
of the Plan are incorporated into this Agreement by this reference. Capitalized terms not otherwise defined herein are defined
in Section 10 of this Agreement.

 

    

     

    

 

SECTION
2.          Vesting.

 

(a)           Generally.
The RSUs vest in accordance with the vesting schedule set forth in the Notice of Restricted Stock Unit Award. You will receive
a benefit with respect to a RSU only if the Time-Based Requirement and the Liquidity Event Requirement are satisfied on or before
the Expiration Date. Your RSUs will not vest (in whole or in part) if only one (or if neither) of such requirements is satisfied
on or before the Expiration Date.

 

(b)           Termination
of Service.

 

(i)    Termination
For Cause. If your continuous Service terminates in a Termination For Cause, all RSUs, whether or not either or both of the
Time-Based Requirement or Liquidity Event Requirement has been satisfied, will immediately be terminated as of your termination
date.

 

(ii)   Termination
other than a Termination For Cause. If your continuous Service terminates for any reason other than a Termination For Cause,
all RSUs as to which the Time-Based Requirement has not been satisfied as of your termination date shall automatically terminate
and be cancelled. You will not satisfy the Time-Based Requirement for any additional RSUs after your Service has terminated for
any reason. In addition, upon the termination of your Service for any reason other than a Termination For Cause, any RSUs as to
which the Time-Based Requirement has been satisfied will (if an IPO or Sale Event had not yet occurred) remain outstanding until
the first to occur of: (A) settlement in connection with an IPO; (B) settlement in connection with a Sale Event; or (C) the Expiration
Date. In case of any dispute as to whether your continuous Service has terminated (and the Time-Based Requirement has been satisfied),
the Board of Directors shall have sole discretion to determine whether such termination has occurred and the effective date of
such termination.

 

 

(c)           Expiration
of RSUs. If an IPO or Sale Event does not occur on or before the Expiration Date, all RSUs (regardless of whether or not,
or the extent to which, the Time-Based Requirement had been satisfied as to such RSUs) shall automatically terminate on the Expiration
Date. Upon a termination of one or more RSUs pursuant to this Section 2, you will have no further right with respect to such RSUs
or the Shares previously allocated thereto.

 

(d)           Part-Time
Employment and Leaves of Absence. If you commence working on a part-time basis, then the Company may adjust the Time-Based
Requirement set forth in the Notice of Restricted Stock Unit Award. If you go on a leave of absence, then the Company may adjust
the Time-Based Requirement set forth in the Notice of Restricted Stock Unit Award in accordance with the Company’s leave
of absence policy or the terms of such leave. Except as provided in the preceding sentence, Service shall be deemed to continue
for any purpose under this Agreement while you are on a bona fide leave of absence, if (i) such leave was approved
by the Company in writing and (ii) continued crediting of Service for such purpose is expressly required by the terms of
such leave or by applicable law (as determined by the Company). Service shall be deemed to terminate when such leave ends, unless
you immediately return to active work.

 

    2

     

    

 

SECTION
3.         RESTRICTIONS
APPLICABLE TO RSUS.

 

(a)           Forfeiture
of RSUs. In connection with your RSUs, the Company and/or any Affiliate thereof may provide you with certain highly confidential
information about the Company and/or any Affiliate thereof, including information regarding the financial condition and business
prospects of the Company and/or any Affiliate thereof. Unauthorized disclosure of such information is prohibited under Company
(and/or your Employer’s) policy and, if you have signed a Proprietary Information and Inventions Agreement with the Company,
or other agreement with your Employer containing confidentiality obligations, if applicable, under such agreement as well. You
may also be required to sign an additional nondisclosure agreement prior to receiving this type of information. In addition, unauthorized
disclosure of the confidential information of the Company or any Affiliate thereof or other violation of your Proprietary Information
and Inventions Agreement or other agreement with the Company or your Employer containing confidentiality, non-compete or non-solicitation
obligations could result in the immediate forfeiture of your RSUs, including vested RSUs, as well as termination of your service
relationship with the Company or your Employer, as applicable.

 

SECTION
4.         SETTLEMENT
of RSUs.

 

(a)           Settlement
Date. Upon a Vesting Date with respect to a particular RSU, the Company will deliver one Share for that RSU, unless at the
time of settlement the Board of Directors, in its sole discretion, determines that settlement shall, in whole or in part, be in
the form of cash, based on the then Fair Market Value of a Share. Settlement shall occur on or following the Vesting Date, but
not later than the Short Term Deferral End Date (as defined in the Notice of Restricted Stock Unit Award). Notwithstanding
the above, settlement of RSUs that become vested RSUs upon (i) a Sale Event will be made in Shares, unless otherwise specified
in the definitive agreement for such Sale Event, or (ii) an IPO shall occur on the earlier of (A) the 185th day following
the IPO Date or (B) the Short Term Deferral End Date.

 

(b)           Form
of Delivery. The form of any delivery of Shares (e.g., a stock certificate or electronic entry evidencing such shares) shall
be determined by the Company.

 

(c)           Legality
of Issuance. No Shares shall be issued to you upon settlement of the RSUs unless and until the Company has determined that
(i) you and the Company have taken any actions required to register the Shares under the Securities Act or to perfect an exemption
from the registration requirements thereof; (ii) any applicable listing requirement of any stock exchange or other securities
market on which the Stock is listed has been satisfied; and (iii) any other applicable provision of federal, state or foreign
law has been satisfied. The Company shall have no liability to issue Shares in respect of the RSUs unless it is able to do so
in compliance with applicable law.

 

    3

     

    

 

SECTION
5.         Taxes.

 

(a)           Taxes.
Upon the Vesting Date and/or settlement date for the RSUs, the Fair Market Value of the Shares may be treated as income subject
to withholding by the Company and/or your Employer for the payment of all applicable federal, State, local and foreign income
and employment withholding taxes (including any income tax, social insurance contributions, payroll tax, payment on account or
other tax-related items arising in connection with your participation in the Plan and legally applicable to you) which arise in
connection with the vesting or settlement of the RSUs (the “Tax-Related Items”). No consideration will be paid
to you in respect of this award unless you have made arrangements satisfactory to your Employer to satisfy the Tax-Related Items.
To the extent that you fail to make such arrangements with respect to certain RSUs, then you will permanently forfeit such RSUs.
At the discretion of the Company, these arrangements may include (i) withholding from other compensation or amounts that
are owed to you by your Employer, (ii) payment in cash, (iii) if the Stock is publicly traded, payment from the proceeds
of the sale of shares through a Company-approved broker, (iv) withholding a number of Shares that otherwise would be issued
to you when the RSUs are settled with a Fair Market Value equal to the minimum statutory amount required to be withheld, or (v)
any other method permitted by the Company. However, if you are a Company officer subject to Section 16 of the Exchange Act, then
the Tax-Related Items will be satisfied pursuant to clause (iv) of the preceding sentence, unless otherwise determined in advance
by the Board of Directors. If the Tax-Related Items are satisfied pursuant to clause (iv), you will be deemed to have been issued
the full number of Shares subject to the RSUs and the Fair Market Value of the withheld Shares, determined as of the date when
taxes otherwise would have been withheld in cash, will be applied to the Tax-Related Items and such amount will be remitted to
appropriate tax authorities by the Company or your Employer. The Company will not withhold fractional shares pursuant to clause
(iv), so if the Tax-Related Items are satisfied pursuant to clause (iv), you hereby authorize the Company or your Employer to
withhold the amount of any remaining Tax-Related Items from your wages or other cash compensation. You acknowledge that the responsibility
for all Tax-Related Items is your own and may exceed the amount actually withheld by the Company or your Employer.

 

(b)           Section
409A. The settlement of these RSUs is intended to be exempt from the application of Code Section 409A pursuant to the “short-term
deferral exemption” in Treasury Regulation 1.409A-1(b)(4) and shall be administered and interpreted in a manner that complies
with such exemption. To the extent that any provision of this Agreement is ambiguous as to its exemption from Code Section 409A,
the provision shall be read in such a manner so that all payments hereunder are exempt from Code Section 409A. Notwithstanding
the foregoing, if this award of RSUs is interpreted as not being exempt from Code Section 409A, it shall be interpreted to comply
with the requirement of Code Section 409A so that this award is not subject to additional tax or interest under Code Section 409A.
In this regard, if this award is payable upon your “separation from service” within the meaning of Code Section 409A(a)(2)(A)(i)
(a “Separation”) and you are a “specified employee” of the Company or any Affiliate thereof within
the meaning of Code Section 409A(a)(2)(B)(i) on the day of your Separation, then no such payment shall be made prior to the date
that is the earlier of (i) six months and one day after your Separation, or (ii) your death, but only to the extent such delay
is necessary so that this award is not subject to additional tax or interest under Code Section 409A.

 

    4

     

    

 

(c)           Acknowledgements.
You acknowledge that there will be tax consequences upon vesting and/or settlement of the RSUs and/or disposition of the Shares,
if any, received hereunder, and you should consult a tax adviser regarding your tax obligations prior to such event. You acknowledge
that neither the Company nor any Affiliate thereof is providing any tax, legal, or financial advice, nor is the Company or any
Affiliate thereof making any recommendations regarding your participation in the Plan or acquisition or sale of Shares subject
to this award. You are hereby advised to consult with your own personal tax, legal, and financial advisors regarding your participation
in the Plan. You further acknowledge that neither the Company nor any Affiliate thereof (i) makes any representations or undertakings
regarding the tax treatment of the award of RSUs, including the grant, vesting, or settlement of the RSUs, the subsequent sale
of Shares acquired pursuant to such RSUs, or the receipt of any dividends; or (ii) commits to or is under any obligation to structure
the terms of the grant of the RSUs to reduce or eliminate your tax liability or achieve any particular tax result. You agree that
neither the Company nor any Affiliate thereof has a duty to design or administer the RSUs, the Plan or its other compensation
programs in a manner that minimizes your tax liability. You shall not make any claim against the Company, the Board of Directors,
any Affiliate of the Company or any of the directors, officers or employees of the Company or any Affiliate thereof related to
tax matters arising from this award or your other compensation.

 

SECTION
6.         Right
Of First Refusal.

 

(a)           Right
of First Refusal. In the event that you propose to sell, pledge or otherwise transfer to a third party any Shares acquired
under this Agreement, or any interest in such Shares to the extent consistent with the restrictions set forth in Section 3, the
Company shall have the Right of First Refusal with respect to all (and not less than all) of such Shares. If you desire to transfer
Shares acquired under this Agreement, you must give a written Transfer Notice to the Company describing fully the proposed transfer,
including the number of Shares proposed to be transferred, the proposed transfer price, the name and address of the proposed Transferee
and proof satisfactory to the Company that the proposed sale or transfer will not violate any applicable federal, State or foreign
securities laws. The Transfer Notice shall be signed both by you and by the proposed Transferee and must constitute a binding
commitment of both parties to the transfer of the Shares. The Company shall have the right to purchase all, and not less than
all, of the Shares on the terms of the proposal described in the Transfer Notice (subject, however, to any change in such terms
permitted under Section 6(b) below) by delivery of a notice of exercise of the Right of First Refusal within 30 days after
the date when the Transfer Notice was received by the Company.

 

(b)           Transfer
of Shares. Subject to Section 7(a) below, if the Company fails to exercise its Right of First Refusal within 30 days
after the date when it received the Transfer Notice, you may, not later than 90 days following receipt of the Transfer Notice
by the Company, conclude a transfer of the Shares subject to the Transfer Notice on the terms and conditions described in the
Transfer Notice, provided that any such sale is made in compliance with applicable federal, State and foreign securities laws
and not in violation of any other contractual restrictions to which you are bound. Any proposed transfer on terms and conditions
different from those described in the Transfer Notice, as well as any subsequent proposed transfer by you, shall again be subject
to the Right of First Refusal and shall require compliance with the procedure described in Section 6(a) above. If the Company
exercises its Right of First Refusal, the parties shall consummate the sale of the Shares on the terms set forth in the Transfer
Notice within 60 days after the date when the Company received the Transfer Notice (or within such longer period as may have
been specified in the Transfer Notice); provided, however, that in the event the Transfer Notice provided that payment for the
Shares was to be made in a form other than cash or cash equivalents paid at the time of transfer, the Company shall have the option
of paying for the Shares with cash or cash equivalents equal to the present value of the consideration described in the Transfer
Notice.

 

    5

     

    

 

(c)           Additional
or Exchanged Securities and Property. In the event of a merger or consolidation of the Company with or into another entity,
any other corporate reorganization, a stock split, the declaration of a stock dividend, the declaration of an extraordinary dividend
payable in a form other than stock, a spin-off, an adjustment in conversion ratio, a recapitalization or a similar transaction
affecting the Company’s outstanding securities, any securities or other property (including cash or cash equivalents) that
are by reason of such transaction exchanged for, or distributed with respect to, any Shares subject to this Section 6 shall
immediately be subject to the Right of First Refusal. Appropriate adjustments to reflect the exchange or distribution of such
securities or property shall be made to the number and/or class of the Shares subject to this Section 6.

 

(d)           Termination
of Right of First Refusal. Any other provision of this Section 6 notwithstanding, in the event that the Stock is readily
tradable on an established securities market when you desire to transfer Shares, the Company shall have no Right of First Refusal,
and you shall have no obligation to comply with the procedures prescribed by Sections 6(a) and 6(b) above.

 

(e)           Permitted
Transfers. This Section 6 shall not apply to (i) a transfer by beneficiary designation, will or intestate succession
or (ii) a transfer to one or more members of your Immediate Family or to a trust established by you for the benefit of you
and/or one or more members of your Immediate Family, provided in either case that the Transferee agrees in writing on a form prescribed
by the Company to be bound by all provisions of this Agreement. If you transfer any Shares acquired under this Agreement, either
under this Section 6(e) or after the Company has failed to exercise the Right of First Refusal, then this Agreement shall
apply to the Transferee to the same extent as to you.

 

(f)            Termination
of Rights as Stockholder. If the Company makes available, at the time and place and in the amount and form provided in this
Agreement, the consideration for the Shares to be purchased in accordance with this Section 6, then after such time the person
from whom such Shares are to be purchased shall no longer have any rights as a holder of such Shares (other than the right to
receive payment of such consideration in accordance with this Agreement). Such Shares shall be deemed to have been purchased in
accordance with the applicable provisions hereof, whether or not the certificate(s) therefor have been delivered as required by
this Agreement.

 

(g)           Assignment
of Right of First Refusal. The Board of Directors may freely assign the Company’s Right of First Refusal, in whole or
in part. Any person who accepts an assignment of the Right of First Refusal from the Company shall assume all of the Company’s
rights and obligations under this Section 6.

 

    6

     

    

 

SECTION
7.         Restrictions
APPLICABLE TO SHARES.

 

(a)           Bylaws
Restrictions. Prior to an IPO, the Shares acquired under this Agreement shall be subject to the transfer restrictions described
in the Company’s Bylaws, in addition to, and not in limitation of, the provisions of Section 6 of this Agreement.

 

(b)           Securities
Law Restrictions. Regardless of whether the offering and sale of Shares under the Plan have been registered under the Securities
Act or have been registered or qualified under the securities laws of any state or other relevant jurisdiction, the Company at
its discretion may impose restrictions upon the sale, pledge or other transfer of the Shares (including the placement of appropriate
legends on stock certificates or the imposition of stop-transfer instructions) if, in the judgment of the Company, such restrictions
are necessary or desirable in order to achieve compliance with the Securities Act, the securities laws of any State or any other
jurisdiction or other law. You (or the beneficiary or your personal representative in the event of your death or incapacity, as
the case may be) shall deliver to the Company any representations or other documents or assurances as the Company may deem necessary
or reasonably desirable to ensure compliance with all applicable legal and regulatory requirements.

 

(c)           Market
Stand-Off. In connection with any underwritten public offering by the Company of its equity securities pursuant to an effective
registration statement filed under the Securities Act, including the Company’s initial public offering, you or a Transferee
shall not directly or indirectly sell, make any short sale of, loan, hypothecate, pledge, offer, grant or sell any option or other
contract for the purchase of, purchase any option or other contract for the sale of, or otherwise dispose of or transfer, or agree
to engage in any of the foregoing transactions with respect to, any Shares acquired under this Agreement without the prior written
consent of the Company or its managing underwriter. Such restriction (the “Market Stand-Off”) shall be in effect
for such period of time following the date of the final prospectus for the offering as may be requested by the Company or such
underwriter. In no event, however, shall such period exceed 180 days plus such additional period as may reasonably be requested
by the Company or such underwriter to accommodate regulatory restrictions on: (i) the publication or other distribution of
research reports; or (ii) analyst recommendations and opinions, including the restrictions set forth in Rule 2711(f)(4)
of the National Association of Securities Dealers and Rule 472(f)(4) of the New York Stock Exchange, as amended, or any similar
successor rules. The Market Stand-Off shall in any event terminate two years after the date of the Company’s initial public
offering. In the event of the declaration of a stock dividend, a spin-off, a stock split, an adjustment in conversion ratio, a
recapitalization or a similar transaction affecting the Company’s outstanding securities without receipt of consideration,
any new, substituted or additional securities which are by reason of such transaction distributed with respect to any Shares subject
to the Market Stand-Off, or into which such Shares thereby become convertible, shall immediately be subject to the Market Stand-Off.
In order to enforce the Market Stand-Off, the Company may impose stop-transfer instructions with respect to the Shares acquired
under this Agreement until the end of the applicable stand-off period. The Company’s underwriters shall be beneficiaries
of the agreement set forth in this Section 7(c). This Section 7(c) shall not apply to Shares registered in the public
offering under the Securities Act.

 

    7

     

    

 

(d)           Investment
Intent at Grant. You represent and agree that the Shares to be acquired upon settlement of the RSUs will be acquired for investment,
and not with a view to the sale or distribution thereof.

 

(e)           Investment
Intent at Settlement. In the event that the sale of Shares under the Plan is not registered under the Securities Act but an
exemption is available that requires an investment representation or other representation, you shall represent and agree at the
time of issuance that the Shares being acquired upon settlement of the RSUs are being acquired for investment, and not with a
view to the sale or distribution thereof, and shall make such other representations as are deemed necessary or appropriate by
the Company and its counsel.

 

(f)            Rights
of the Company. The Company shall not be required to (i) transfer on its books any Shares that have been sold or transferred
in contravention of this Agreement or (ii) treat as the owner of Shares, or otherwise to accord voting, dividend or liquidation
rights to, any Transferee to whom the Shares have been transferred in contravention of this Agreement.

 

(g)           No
Registration Rights. The Company may, but shall not be obligated to, register or qualify the sale of Shares under the Securities
Act or any other applicable law. The Company shall not be obligated to take any affirmative action in order to cause the sale
of Shares under this Agreement to comply with any law.

 

(h)           Legends.
The Company may at any time place legends referencing the Right of First Refusal, restrictions on transfer, and any applicable
federal, state or foreign securities law restrictions on all certificates representing shares of stock subject to the provisions
of this Agreement. At the request of the Company, you must promptly present to the Company any and all certificates representing
shares acquired pursuant to the settlement of the RSUs in your possession in order to carry out the provisions of this Agreement.
Unless otherwise specified by the Company, legends placed on such certificates may include, but shall not be limited to, the following:

 

“THE
SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER, INCLUDING A RIGHT OF FIRST REFUSAL AND
RIGHT OF REPURCHASE IN FAVOR OF THE CORPORATION OR ITS ASSIGNEE SET FORTH IN AN AGREEMENT BETWEEN THE CORPORATION AND THE REGISTERED
HOLDER, OR SUCH HOLDER’S PREDECESSOR IN INTEREST, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THIS CORPORATION.”

 

All certificates
evidencing Shares issued under this Agreement in an unregistered transaction shall bear the following legend (and such other restrictive
legends as are required or deemed advisable under the provisions of any applicable law):

 

“THE
SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”), AS
AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER
SUCH ACT COVERING SUCH SECURITIES, THE SALE IS MADE IN ACCORDANCE WITH RULE 144 OR RULE 701 UNDER THE ACT, OR THE COMPANY RECEIVES
AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY, STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS
EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.”

 

    8

     

    

 

If required
by the authorities of any State in connection with the issuance of the Shares, the legend or legends required by such State authorities
shall also be endorsed on all such certificates.

 

(i)            Removal
of Legends. If, in the opinion of the Company and its counsel, any legend placed on a stock certificate representing Shares
issued under this Agreement is no longer required, the holder of such certificate shall be entitled to exchange such certificate
for a certificate representing the same number of Shares but without such legend.

 

(j)            Administration.
Any determination by the Company and its counsel in connection with any of the matters set forth in this Section 7 shall
be conclusive and binding on you and all other Persons.

 

SECTION
8.         Adjustment
Of Shares.

 

In
the event of any transaction described in Section 9(a) of the Plan, the terms of these RSUs (including the number and kind of
shares subject to the RSUs) shall be adjusted as set forth in Section 9(a) of the Plan. In the event that the Company is party
to a merger or consolidation, your RSUs shall be subject to Section 9(b) of the Plan, provided that any action taken must either
preserve the exemption of your RSUs from Code Section 409A or comply with Code Section 409A. Any additional RSUs and any new,
substituted or additional shares, cash or other property that become subject to this award as a result of any such transaction
shall be subject to the same conditions and restrictions as applicable to the RSUs to which they relate.

 

SECTION
9.         Miscellaneous
provisions.

 

(a)           Successors
and Assigns. Except as otherwise expressly provided to the contrary, the provisions of this Agreement shall inure to the benefit
of, and be binding upon, the Company and its successors and assigns and be binding upon you and your legal representatives, heirs,
legatees, distributees, assigns and transferees by operation of law, whether or not any such Person has become a party to this
Agreement or has agreed in writing to join herein and to be bound by the terms, conditions and restrictions hereof.

 

(b)           No
Retention Rights. Nothing in this Agreement or in the Plan shall confer upon you the right to remain in Service in any capacity
for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Parent
or Subsidiary employing or retaining you) or you, which rights are hereby expressly reserved by each, to terminate your Service
at any time and for any reason, with or without cause.

 

    9

     

    

 

(c)           Notice.
Any notice required by the terms of this Agreement shall be given in writing. It shall be deemed effective upon (i) personal
delivery, (ii) deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid,
(iii) deposit with Federal Express Corporation, with shipping charges prepaid or (iv) deposit with any internationally recognized
express mail courier service. Notice shall be addressed to the Company at its principal executive office and to you at the address
that you most recently provided to the Company in accordance with this Section 9(c).

 

(d)           Effect
on Other Employee Benefit Plans. The value of your RSUs and the Shares issuable thereunder shall not be included as compensation,
earnings, salaries, or other similar terms used when calculating benefits under any employee benefit plan (other than the Plan)
sponsored by the Company and/or any Affiliate thereof, except as such plans otherwise expressly provide.

 

(e)           Entire
Agreement. The Notice of Restricted Stock Unit Award, this Agreement and the Plan constitute the entire understanding between
you and the Company regarding the subject matter hereof. They supersede any other agreements, representations or understandings
(whether oral or written and whether express or implied), or the applicable portions thereof, that relate to the subject matter
hereof, including any provisions in any employment agreement with your Employer or other document relating to these RSUs or any
other equity-based awards.

 

(f)            Choice
of Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, as such
laws are applied to contracts entered into and performed in such State.

 

(g)           Plan
Discretionary. You understand and acknowledge that the Plan is wholly discretionary in nature and is governed by United States
law. You understand and acknowledge that the Company and your Employer have reserved the right to amend, suspend or terminate
the Plan at any time, and that the grant of RSUs in one year or at any time does not in any way create any contractual or other
right to receive future grants of RSUs or benefits in lieu of RSUs in any future year or in any given amount. You understand and
acknowledge that all determinations with respect to any such future grants, including the times when RSUs shall be offered, the
maximum number of shares subject to such RSUs and the vesting schedule will be at the sole discretion of the Company.

 

(h)           Extraordinary
Compensation. You understand and acknowledge that the value of the RSUs is an extraordinary item of compensation governed
by United States law, is outside the scope of your employment contract, if any, and is not to be considered part of your normal
or expected compensation for purposes of calculating severance, resignation, redundancy, end of service payments, bonuses, long-service
awards, pension or retirement benefits or similar payments. You understand and acknowledge that the right to be granted RSUs and
the right to continue vesting or to receive further grants of RSUs will terminate effective as of the date upon which you receive
notice of termination, regardless of when the termination is effective.

 

    10

     

    

 

(i)            Participation
Ceases When Employment Ceases. You understand and acknowledge that participation in the Plan ceases upon termination of your
employment or Service for any reason except as may otherwise be explicitly provided in this Agreement and the Plan.

 

(j)            Authorization
to Disclose. You hereby authorize and direct your Employer to disclose to the Company (and/or any Affiliate thereof) such
information regarding your employment, the nature and amount of your compensation and the fact and conditions of your participation
in the Plan as your Employer deems necessary or appropriate to facilitate the administration of the Plan.

 

(k)           Personal
Data Authorization. You consent to the collection, use and transfer of personal data as described in this paragraph. You understand
and acknowledge that the Company and/or its Affiliates hold certain personal information about you, including your name, home
address and telephone number, date of birth, social insurance number, salary, nationality, job title, any shares of Stock or directorships
held in the Company, details of all RSUs or any other entitlement to shares of Stock awarded, canceled, exercised, vested, unvested
or outstanding in your favor, for the purpose of managing and administering the Plan (“Data”). You further
understand and acknowledge that the Company and/or its Affiliates will transfer Data amongst themselves as necessary for the purpose
of implementation, administration and management of your participation in the Plan, and that the Company and/or any of its Affiliates
may each further transfer Data to any third parties assisting any of them in the implementation, administration and management
of the Plan. You understand and acknowledge that these recipients may be located in the United States or elsewhere. You authorize
them to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of administering your
participation in the Plan, including any requisite transfer to a broker or other third party with whom you may elect to deposit
any shares of Stock acquired under the Plan and/or the subsequent holding of shares of Stock on your behalf. You understand and
acknowledge that you may, at any time, view Data, require any necessary amendments to it or withdraw the consents herein in writing
by contacting the Chief Financial Officer of the Company.

 

(l)            Interpretation.
For purposes of this Agreement, unless otherwise specified or the context otherwise requires: (i) the words “include,”
 “includes” and “including” is deemed to be followed by the words “without limitation”; (ii)
the word “or” is not exclusive; (iii) the words “herein,” “hereof,” “hereby,”
 “hereto” and “hereunder” refer to this Agreement as a whole; (iv) words denoting the singular have a comparable
meaning when used in the plural, and vice-versa; (v) words denoting any gender include all genders; (vi) references in this Agreement
to sections, exhibits, schedules, attachments and appendices mean the sections of, and exhibits, schedules, attachments and appendices
attached to, this Agreement; (vii) references in this Agreement to an agreement, instrument or other document means such agreement,
instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions
thereof; and (viii) references in this Agreement to a law, statute or regulation means such law, statute or regulation as amended
from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. The headings used
herein are for reference only and shall not affect the construction hereof.

 

SECTION
10.       Definitions.

 

(a)           “Affiliate”
of a Person means any other Person that directly or indirectly, controls, is controlled by, or is under common control with, such
Person. A Person shall be deemed to control another Person if such first Person possesses, directly or indirectly, the power to
direct, or cause the direction of, the management and policies of such other Person, whether through the ownership of voting securities,
by contract or otherwise. For the avoidance of doubt, a Parent, a Subsidiary and, if the Company is not your Employer, your Employer
will each be deemed to be an Affiliate of the Company.

 

    11

     

    

 

(b)           “Agreement”
means this Restricted Stock Unit Agreement.

 

(c)           “Board
of Directors” means the Board of Directors of the Company, as constituted from time to time or, if a Committee has been
appointed, such Committee.

 

(d)           “Cause”
means (a) your unauthorized use or disclosure of the confidential information or trade secrets of the Company or any Affiliate
thereof, which use or disclosure causes material harm to the Company or any Affiliate thereof, (b) your material breach of
any agreement between you and the Company or any Affiliate thereof, (c) your material failure to comply with the written
policies or rules of your Employer (or any Affiliate thereof, if applicable to you), (d) your conviction of, or your plea
of “guilty” or “no contest” to, a felony under any applicable laws, (e) your fraud, gross negligence
or willful misconduct in connection with your duties to, or that causes harm to, the Company or any Affiliate thereof, (f) your
continuing failure to perform assigned duties after receiving written notification of the failure from the Board of Directors
or your Employer, or (g) your failure to cooperate in good faith with a governmental or internal investigation of the Company
or any Affiliate thereof or any of their respective directors, officers or employees, if the Company or any Affiliate thereof
has requested your cooperation.

 

(e)           “Change
in Control” means (i) the consummation of a merger or consolidation of the Company with or into another entity or (ii)
the dissolution, liquidation or winding up of the Company. The foregoing notwithstanding, a merger or consolidation of the Company
does not constitute a “Change in Control” if immediately after the merger or consolidation a majority of the voting
power of the capital stock of the continuing or surviving entity, or any direct or indirect parent corporation of the continuing
or surviving entity, will be owned by the persons who were the Company’s stockholders immediately prior to such merger or
consolidation in substantially the same proportions as their ownership of the voting power of the Company’s capital stock
immediately prior to the merger or consolidation.

 

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

 

(g)           “Committee”
means a committee of the Board of Directors, as described in Section 2 of the Plan.

 

(h)           “Company”
means Velodyne LiDAR, Inc., a Delaware corporation.

 

(i)            “Consultant”
means a person, excluding Employees and Outside Directors, who performs bona fide services for the Company, a Parent or a Subsidiary
as a consultant or advisor and who qualifies as a consultant or advisor under Rule 701(c)(1) of the Securities Act or under Instruction
A.1.(a)(1) of Form S-8 under the Securities Act.

 

(j)            “Date
of Grant” means the date specified in the Notice of Restricted Stock Unit Award, which date shall be the later of (i)
the date on which the Board of Directors resolved to grant the RSUs to you, or (ii) your first date of Service.

 

    12

     

    

 

(k)           “Employee”
means any individual who is a common-law employee of the Company, a Parent or a Subsidiary.

 

(l)            “Employer”
means whichever of the Company, a Parent or a Subsidiary employs you.

 

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

 

(n)           “Expiration
Date” means the expiration date of the RSUs as set forth in the Notice of Restricted Stock Unit Award.

 

(o)           “Fair
Market Value” means the fair market value of a Share, as determined by the Board of Directors in good faith. Such determination
shall be conclusive and binding on all persons.

 

(p)           “Immediate
Family” means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law or sister-in-law and shall include adoptive relationships.

 

(q)           “IPO”
means the consummation of the first firm commitment underwritten public offering pursuant to an effective registration statement
under the Securities Act covering the offer and sale by the Company of its equity securities, as a result of or following which
the Shares shall be publicly held, and “IPO Date” means the date on which the IPO occurs.

 

(r)            “Liquidity
Event Requirement” means the requirement that the Company complete an IPO or Sale Event. The Liquidity Event Requirement
will be deemed satisfied (as to any then outstanding RSUs that have not theretofore been terminated pursuant to Section 2 of the
Agreement) on the earlier to occur of: (i) an IPO, or (ii) a Sale Event.

 

(s)           “Outside
Director” means a member of the Board of Directors who is not an Employee.

 

(t)            “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.

 

(u)           “Person”
shall mean any individual, corporation, partnership, joint venture, association, joint stock company, trust, unincorporated organization,
limited liability company or any other entity or organization of any kind, including a governmental authority.

 

(v)           “Plan”
means the Velodyne LiDAR, Inc. 2016 Stock Plan.

 

    13

     

    

 

(w)          “Right
of First Refusal” means the Company’s right of first refusal described in Section 6.

 

(x)           “RSUs”
means the Restricted Stock Units granted to you by the Company as set forth in the Notice of Restricted Stock Unit Award.

 

(y)           “Sale
Event” means the consummation of the following transactions in which holders of Shares 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; (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).

 

(z)           
“Securities Act” means the Securities Act of 1933, as amended.

 

(aa)         “Service”
means service as an Employee, Outside Director or Consultant.

 

(bb)        “Share”
means a share of the Stock, as adjusted in accordance with Section 9 of the Plan (if applicable).

 

(cc)         “Stock”
means the Common Stock of the Company.

 

(dd)        “Subsidiary”
means any corporation entity (other than the Company) in an unbroken chain or 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.

 

(ee)         “Termination
For Cause” means a termination of your Service by the Company or your Employer, following a determination by the Company
or your Employer that such termination is for Cause, and evidenced by written notice from the Company or your Employer to you
that such termination of Service is for Cause.

 

(ff)           “Time-Based
Requirement” means the requirement to provide Service over the period of time set forth in the Notice of Restricted
Stock Unit Award.

 

    14 

    

    

 

(gg)         “Transfer
Notice” means the notice of a proposed transfer of Shares described in Section 6.

 

(hh)        
“Transferee” means any Person to whom you have directly or indirectly transferred any Shares acquired
under this Agreement.

 

(ii)           “Vesting
Date” means the first date on or before the Expiration Date upon which both the Time-Based Requirement and the Liquidity
Event Requirement are satisfied.

 

    15

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