Document:

EX-10.38

 Exhibit 10.38 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into on August 20, 2015 by and between Autoliv, Inc., a
Delaware corporation (the “Company”), and Lars Sjöbring, personal code number (            ) (the “Executive”), to be effective as of the
Effective Date, as defined in Section 1. 
 BACKGROUND 

The Company desires to engage the Executive as the Group Vice President Legal Affairs, General Counsel and Secretary of the Board from and
after the Effective Date, in accordance with the terms of this Agreement. The Executive is willing to serve as such in accordance with the terms and conditions of this Agreement. 

NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements set forth herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 1. Effective
Date. The effective date of this Agreement (the “Effective Date”) shall be the date that the Executive commences employment with the Company. The Effective Date shall be January 1, 2016 or such earlier date that the parties
can agree to. 
 2. Employment. The Executive is hereby employed on the Effective Date as the Group Vice President Legal Affairs,
General Counsel and Secretary of the Board. In his capacity as Group Vice President Legal Affairs, General Counsel, the Executive shall have the duties, responsibilities and authority commensurate with such position as shall be assigned to him by
the Chief Executive Officer of the Company and he shall report directly to the Chief Executive Officer of the Company. The principal work place for the Executive shall be Metropolitan Detroit Area Michigan, USA, The Executive will spend a working
week per month in the Company’s headquarters in Sweden and has agreed to spend additional time there as required in connection to financial reporting periods. 

3. Employment Period. The Company hereby agrees to employ the Executive and the Executive hereby agrees to serve the Company from the
Effective Date and thereafter unless and until terminated by the Company or the Executive (the “Employment Period”); provided, however, that (i) the Company must give the Executive written notice of termination of the
Executive’s employment not less than six (6) calendar months prior to such date of termination, and (ii) the Executive must give the Company written notice of termination of his employment not less than six (6) calendar months
prior to such date of termination; provided, further, however, that in the event of a termination by the Company for Cause pursuant to Section 10(b) hereof, the 6-month notice requirement provided in clause (i) of the foregoing
provision shall not apply and the Executive’s termination of employment shall be effective immediately. Notwithstanding the foregoing, the Executive’s employment shall automatically terminate on the earlier occurrence of the last day of
the month preceding the Executive’s 65th birthday (“Retirement”). 

 4. Extent of Service. During the Employment Period, the Executive shall use his best
efforts to promote the interests of the Company and those of its subsidiary and associated companies (“Affiliates”) and shall devote his full time and attention during normal business hours to the business and affairs of the Company
and its Affiliates. In addition, the Executive shall devote as much time outside normal business hours to the performance of his duties as may in the interests of the Company be reasonably necessary; provided, however, that the Executive
shall not receive any remuneration in addition to that set out in Section 5 hereof in respect of his work during such time. During the Employment Period, the Executive shall not, without the consent of the Chief Executive Officer, directly or
indirectly, either alone or jointly with or as a director, manager, agent or servant of any other person, firm or company, be engaged, concerned or interested in any business in a manner that would conflict with the Executive’s duties under
this Section 4 (including holding any shares, loan, stock or any other ownership interest in any competitor of the Company), provided that nothing in this Section 4 shall preclude the Executive from holding shares, loan, stock or
any other ownership interest in an entity other than a competitor of the Company as an investment. 
 5. Compensation and Benefits.

 (a) Base Salary. During the Employment Period, the Executive shall receive a gross salary at the rate of 655,000 USD per year
(“Base Salary”), less normal withholdings, payable in equal monthly installments as are or become customary under the Company’s payroll practices for its employees from time to time. The Compensation Committee (the
“Compensation Committee”) of the Company’s Board of Directors (the “Board”) shall review the Executive’s Base Salary annually during the Employment Period. Any increases to the Executive’s salary
shall become the Executive’s Base Salary for purposes of this Agreement. 
 (b) Short Term Incentive. During the Employment
Period, the Executive shall be eligible to participate in the Company’s short term incentive plan for executive officers, if any, pursuant to which he will have an opportunity to receive an annual incentive based upon the achievement of
performance goals established from year to year by the Compensation Committee (such incentive earned at the stated “target” level of achievement being referred to herein as the “Target Short Term Incentive”). Until
otherwise changed by the Compensation Committee, the Executive’s Target Short Term Incentive shall be thirty-five percent (35%) of his Base Salary. Notwithstanding the foregoing, the Executive’s Short Term Incentive earned during
fiscal year 2015, if any, shall be multiplied by a fraction, the numerator of which is the number of days between the Effective Date and the last day of the 2015 fiscal year, and the denominator of which is 365. 

(c) Equity Incentive Compensation. During the Employment Period and, except as otherwise provided in Section 5(d) hereof,
commencing in calendar year 2016, the Executive shall be eligible for equity grants under the Autoliv, Inc. Amended and Restated 1997 Stock Incentive Plan (the “1997 Plan”), or any successor plan or plans, having such terms and conditions
as awards to other peer executives, as determined by the Compensation Committee in its sole discretion. Nothing herein requires the Compensation Committee to grant the Executive equity awards or other long-term incentive awards in any year. For the
avoidance of doubt, the Executive shall not be eligible to receive any equity grants with respect to calendar year 2015. 

  
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 (d) Sign-on and Retention Bonus. The Executive shall be eligible to receive the following
sign-on and retention bonuses, according to the following schedule and pursuant to the terms and conditions set forth below. 
  

	 	(i)	An amount equal to 1,500,000 USD, to be paid in cash in a single lump sum within thirty (30) days following the Effective Date, provided that the Executive remains employed with the Company on such payment date.

  

	 	(ii)	An amount equal to 1,000,000 USD, to be paid in cash in a single lump sum within thirty (30) days following the earlier to occur of (A) the third
(3rd) anniversary of the Effective Date, provided that the Executive remains employed by the Company on such payment date, or (B) subject to Section 20 hereof, the date that the
Executive’s employment with the Company is terminated by reason of his death or Disability (as defined in Section 10(a) hereof) or by the Company without Cause (as defined in Section 10(b) hereof) or by the Executive for Good Reason
(as defined in Section 10(c) hereof except in the case the Company decides to relocate its headquarters to any country other than Sweden and ask the Executive to relocate to the new location. 

 

	 	(iii)	A grant of restricted stock units (the “Sign-On RSUs”) having a value on the grant date equal to 1,500,000 USD (the “Sign-On Grant Value”), to be granted on the Effective Date (the
“Sign-On RSU Grant Date”), pursuant to, and subject to the terms and conditions of, the 1997 Plan. The number of Sign-On RSUs to be granted will be determined by dividing the Sign-On Grant Value by the market closing price of the
Company’s stock on the Sign-On RSU Grant Date. The Sign-On RSUs will vest as to all of the Sign-On RSUs on the fifth (5th) anniversary of the Sign-On RSU Grant Date, provided that the
Executive remains employed by the Company on such date. Notwithstanding the foregoing, the Sign-On RSUs will become immediately vested and, subject to Section 20 hereof, settled upon the earlier occurrence of (i) the Executive’s
termination of employment with the Company by reason of his death or Disability or by the Company without Cause, or (ii) a Change in Control (as defined in the 1997 Plan) or by the Executive for Good Reason (as defined in Section 10(c)
hereof. except in the case the Company decides to relocate its headquarters to any country other than Sweden and ask the Executive to relocate to the new location.) The Sign-On RSUs shall have such other terms and conditions as provided in the
Company’s standard form of restricted stock unit agreement. 

 (e) Automobile. During the Employment Period, the
Company shall provide the Executive with a company car or, if consistent with local policies where the Executive is based, a car allowance. If a company car is provided, the Executive and his immediate family may also use the company car for
personal purposes and the Company shall bear all petrol, maintenance and repair costs, as well as insurance costs and vehicle tax related to the Company 

  
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car. If a car allowance is provided, the Company shall also bear all petrol, but no other, costs for the automobile in addition to the allowance. Whether a company car or a car allowance is
provided, the Executive shall be liable for the payment of tax on the car allowance or on the taxable benefit resulting from the right to use the company car for personal purposes. 

(f) Expenses. During the Employment Period, the Executive shall be entitled to receive payment or reimbursement for all reasonable
traveling, hotel and other expenses incurred by him in the performance of his duties under this Agreement, in accordance with the policies, practices and procedures of the Company as in effect from time to time. The Executive shall provide the
Company with receipts, vouchers or other evidence of actual payment of the expenses to be reimbursed, as requested by the Company. 
 (g)
Conditions of Employment. Normal conditions of employment as issued by the Company apply to the receipt of benefits under this Section 5. 

(h) Relocation Services and Temporary Benefits. The principal work place for the Executive shall be Metropolitan Detroit Area Michigan,
USA, In connection with the Executive’s relocation, the Company shall provide the reimbursements and temporary benefits described in this Section 5(h). 
  

	 	(i)	The Company shall pay or reimburse the Executive for verified removal expenses, including related freight insurance, storage for up to six months in the Unites States and any customs duties, for normal household goods.
For this purpose “normal household goods” includes furniture and personal effects. “Normal household goods” does not include cars, boats, motorcycles, caravans/trailers, antiques or other similar items. 

 

	 	(ii)	The Company shall at its expense assign a relocation agency to provide the services linked to the relocation of the Executive to Metropolitan Detroit Area Michigan, USA. The additional services may include relocation
support related to arrival and registrations, housing search and related support and schooling search. 

  

	 	(iii)	If requested by the Executive, the Company shall at its expense provide temporary, furnished housing for the Executive for a maximum of six (6) months. 

 

	 	(iv)	The Company shall pay for or reimburse the Executive for up to two (2) house hunting trips to the Metropolitan Detroit, Michigan area, inclusive of airline costs for the Executive and his spouse, lodging expense
and car rental. 

  

	 	(v)	The Company shall pay or reimburse the Executive for travel costs for the Executive and his accompanying family members in connection with their initial relocation to Metropolitan Detroit Area Michigan, USA.

  
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	 	(vi)	The Executive shall be provided with necessary one-time tax consultation concerning employment-related income at the commencement of employment. The tax advisor will be selected by the Company. 

 

	 	(vii)	The Company shall pay the income taxes levied on the Executive for the benefits described in this Section 5(h), and the Company shall “gross up” these payments to cover any applicable income taxes that
the Executive may incur as a result of such income tax payments, either in the United States or elsewhere. For the avoidance of doubt, the Executive shall not be entitled to a “gross-up” with respect to any payments or benefits other than
those specifically set forth in this Section 5(h). 

 (i) Tax Return Support. During the Employment Period, if
requested by the Executive, the Company shall provide assistance in the preparation and filing of the Executive’s annual tax return in both his home country of Sweden and in the United States. The tax advisor shall be selected by the Company.

 (j) International Relocation Insurance. The Company shall provide to the Executive and his accompanying family members
international relocation insurance with coverage for a period commencing on the Effective Date and ending on the second (2nd) anniversary of the Effective Date. The terms and conditions of
the international relocation insurance shall be selected by the Company in its sole and absolute discretion, but shall include medical coverage in line with the Company’s expatriation practice. 

6. Holidays. During the Employment Period, the Executive shall be entitled to yearly holidays amounting to the minimum legal holiday
days plus additional days, in total 30 vacation days. 
 7. Pension and Additional Benefits. During the Employment Period, the
Executive shall be eligible to participate in the Autoliv North America Non-Qualified Retirement Plan and the Autoliv ASP, Inc. Employee Savings and Investment Plan (collectively, the “U.S. Savings Plans”) and any additional welfare
benefit plans, practices, policies and programs provided by the Company, if any, to the extent available to similarly-situated employees in the United States and subject to eligibility requirements and terms and conditions of each such plan;
provided, however, that nothing herein shall limit the ability of the Company to amend, modify or terminate any such benefit plans, policies or programs at any time and from time to time. 

The Company shall also make additional contributions to the North America Non Qualified plan equivalent to an amount such that the total value
of all the Company matches and contributions to the U.S. Savings Plans shall be equivalent to thirty-five percent (35%) of the Executive’s Base Salary. No additional employee contribution above 7% will be required under the North America
Non Qualified Plan. 
 8. Business or Trade Information. The Executive shall not during or after the termination of his employment
hereunder disclose to any person, firm of company whatsoever or use for his own purpose or for any purposes other than those of the Company any information 

  
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relating to the Company or its Affiliates or its or their business or trade secrets of which he has or shall hereafter become possessed. These restrictions shall cease to apply to any information
which may come into the public domain (other than by breach of the provisions hereof). In the event that the Executive does not comply with this Section 8, the Company shall be entitled to damages equal to six (6) times the average monthly
Base Salary that the Executive received during the preceding twelve (12) months, if the Executive continues to be employed, or during the last twelve (12) months prior to his Date of Termination, if the Executive’s employment has
terminated; provided, however, that nothing in this Section 8 shall preclude the Company from pursuing arbitration in accordance with Section 16 herein and seeking additional damages from the Executive in the event that the Company
is able to demonstrate to the arbitrators that the value of the damages incurred by the Company due to the Executive’s violation of this Section 8 exceed the aggregate value of the damages paid by the Executive to the Company pursuant to
the foregoing provision. 
 9. Company Property. The Executive shall upon the termination of his employment hereunder for whatever
reason immediately deliver to the Company all designs, specifications, correspondence and other documents, papers, the car provided hereunder and all other property belonging to the Company or any of its Affiliates or which may have been prepared by
him or have come into his possession in the course of his employment. 
 10. Termination of Employment 

 

	 	(a)	Death; Retirement; Disability. 

  

	 	(i)	The Executive’s employment shall terminate automatically upon his death or Retirement. 

  

	 	(ii)	If the Company determines in good faith that the Disability (as defined below) of the Executive has occurred during the Employment Period, it may give to Executive written notice of its intention to terminate the
Executive’s employment. “Disability” shall mean the inability of the Executive, as reasonably determined by the Board, to perform the essential functions of his regular duties and responsibilities, with or without reasonable
accommodation, due to a medically determinable physical or mental illness which has lasted for a period of six (6) consecutive months. At the request of the Executive or his personal representative, the Board’s determination that the
Disability of the Executive has occurred shall be certified by a physician mutually agreed upon by the Executive, or his personal representative, and the Company. 

(b) Termination by the Company. The Company may terminate the Executive’s employment during the Employment Period with or without
Cause. “Cause” for termination by the Company of the Executive’s employment shall mean (i) willful and continued failure by the Executive to substantially perform the Executive’s duties with the Company (other than any such
failure resulting from the Executive’s incapacity due to physical or mental illness) after a written demand for substantial performance is delivered to the Executive by the Board, 

  
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which demand specifically identifies the manner in which the Board believes that the Executive has not substantially performed the Executive’s duties, or (ii) the willful engaging by
the Executive in conduct which is demonstrably and materially injurious to the Company or its subsidiaries, monetarily or otherwise. For purposes of clauses (i) and (ii) of this definition, (x) no act, or failure to act, on the
Executive’s part shall be deemed “willful” unless done, or omitted to be done, by the Executive not in good faith and without reasonable belief that the Executive’s act, or failure to act, was in the best interest of the Company
and (y) in the event of a dispute concerning the application of this provision, no claim by the Company that Cause exists shall be given effect unless the Chief Executive Officer of the Company and the Vice President of Human Resources
establish to the Board by clear and convincing evidence that Cause exists, subject to Section 10(f) hereof. 
 (c) Termination by
the Executive. The Executive may terminate his employment during the Employment Period with Good Reason or without Good Reason. “Good Reason” shall mean the occurrence, without the Executive’s express written consent, of
any of the following: 
  

	 	(i)	a material diminution in the Executive’s authority, duties, or responsibilities, other than any such alteration primarily attributable to the fact that the Company may no longer be a public company;

  

	 	(ii)	a material diminution in the Executive’s Base Salary as in effect on the date hereof or as the same may be increased from time to time; 

 

	 	(iii)	the relocation of the Executive’s principal place of employment to a location more than 30 miles from the Executive’s principal place of employment on the date hereof or the Company’s requiring the
Executive to be based anywhere other than such principal place of employment (or permitted relocation thereof) except for required travel on the Company’s business to an extent substantially consistent with the Executive’s present business
travel obligations; or 

  

	 	(iv)	a material breach of this Agreement by the Company. 

  

	 	(v)	the failure by the Company to pay to the Executive any portion of the Executive’s current compensation within seven (7) days of the date such compensation is due; 

 

	 	(vi)	the failure by the Company to continue in effect any compensation plan in which the Executive participates on the date hereof which is material to the Executive’s total compensation, unless an equitable arrangement
(embodied in an ongoing substitute or alternative plan) has been made with respect to such plan, or the failure by the Company to continue the Executive’s participation therein (or in such substitute or alternative plan) on a basis not
materially less favorable, both in terms of the amount or timing of payment of benefits provided and the level of the Executive’s participation relative to other participants, as existed on the date hereof; or 

  
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	 	(vii)	the failure by any successor to the business of the Company (whether direct or indirect, by purchase, merger, consolidation or otherwise) to expressly assume and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no such succession had taken place. 

 A termination by the Executive
shall not constitute termination for Good Reason unless the Executive shall first have delivered to the Company written notice setting forth with specificity the occurrence deemed to give rise to a right to terminate for Good Reason (which notice
must be given no later than 90 days after the initial occurrence of such event), and there shall have passed a reasonable time (not less than 30 days) within which the Company may take action to correct, rescind or otherwise substantially reverse
the occurrence supporting termination for Good Reason as identified by the Executive. The Executive’s termination for Good Reason must occur within a period of 160 days after the occurrence of an event of Good Reason. The Executive’s
continued employment shall not constitute consent to, or a waiver of rights with respect to, any act or failure to act constituting Good Reason hereunder. Good Reason shall not include the Executive’s death or Disability. 

(d) Notice of Termination. Any termination by the Company or the Executive of the Executive’s employment (other than by reason of
death or Retirement) shall be communicated by written Notice of Termination from one party hereto to the other party hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a written notice which shall
(i) indicate the specific termination provision in this Agreement relied upon, (ii) set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the
provision so indicated, and (iii) specifies the termination date. Further, a Notice of Termination for Cause is required to include a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters (3/4) of the
entire membership of the Board at a meeting of the Board which was called and held for the purpose of considering such termination (after reasonable notice to the Executive and an opportunity for the Executive, together with the Executive’s
counsel, to be heard before the Board) finding that, in the good faith opinion of the Board, the Executive was guilty of conduct set forth in clause (i) or (ii) of the definition of Cause herein, and specifying the particulars thereof in
detail. The failure by the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Cause shall not waive any right of the Company hereunder or preclude the Company from asserting such fact or
circumstance in enforcing the Company’s rights hereunder. 
 (e) Date of Termination. “Date of Termination”
means (i) if the Executive’s employment is terminated other than by reason of death or Retirement, the end of the notice period specified in Section 3 hereof, or (ii) if the Executive’s employment is terminated by reason of
death, the Date of Termination shall be the date of death of the Executive, or (iii) if the Executive’s employment is terminated by reason of Retirement, the Date of Termination shall be the date of Retirement. 

  
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 (f) Dispute Concerning Termination. Any disputes regarding the termination of the
Executive’s employment shall be settled in accordance with Section 16 hereof (including, without limitation, the provisions regarding costs and expenses related to arbitration). If within fifteen (15) days after any Notice of
Termination is given, or, if later, prior to the Date of Termination (as determined without regard to this Section 10(f)), the party receiving such Notice of Termination notifies the other party that a dispute exists concerning the termination,
the Date of Termination shall be extended until the date on which the dispute is finally resolved, either by mutual written agreement of the parties or by a final judgment, order or decree of the arbitrators (which is not appealable or with respect
to which the time for appeal there from has expired and no appeal has been perfected); provided, however, that the Date of Termination shall be extended by a notice of dispute given by the Executive only if such notice is given in good faith
and the Executive pursues the resolution of such dispute with reasonable diligence. 
 (g) Compensation During Dispute. If the Date
of Termination is extended in accordance with Section 10(f) hereof, the Company shall continue to provide the Executive with the compensation and benefits specified in Section 5 hereof until the Date of Termination, as determined in
accordance with Section 10(f) hereof. Amounts paid under this Section 10(g) are in addition to all other amounts due under this Agreement and shall not be offset against or reduce any other amounts due under this Agreement; provided,
however, that in the event that the arbitration results in a determination that the Executive is not entitled to severance payments under the terms of this Agreement, then the Executive shall repay to the Company the compensation received by the
Executive during the extended period pursuant to this Section 10(g). 
 11. Obligations of the Company Upon Termination of
Employment. 
 (a) Termination by the Company Other Than for Cause; Termination by the Executive for Good Reason. If, during the
Employment Period, the Company shall terminate the Executive’s employment other than for Cause, or the Executive shall terminate employment for Good Reason, then, and only if within forty-five (45) days after the Date of Termination the
Executive shall have executed a separation agreement containing a full general release of claims and covenant not to sue, in the form provided by the Company, and such separation agreement shall not have been revoked within such time period, the
Company shall pay to the Executive a lump sum severance payment, in cash, equal to one and a half times (1.5x) the Executive’s Base Salary as in effect immediately prior to the Date of Termination, payable within sixty (60) days after
the Date of Termination (or such later date as may be required pursuant to Section 20(c) herein). In addition, the Company shall pay to the Executive any accrued and unpaid salary and bonus through the Date of Termination, accrued and unused
vacation pay through the Date of Termination, in accordance with the Company policy, any unreimbursed business expenses incurred by the Executive and such benefits he or his beneficiaries would otherwise be entitled to receive under any plan,
program, policy or practice or contract or agreement of the Company or its Affiliates (collectively, “Accrued Obligations”) and any sum due under Section 5(d) (ii) and (iii) with the exception defined there in. The Company
shall withhold all relevant income taxes attributable to such lump sum severance payment in accordance with relevant laws. The Company shall also pay all relevant social costs attributable to such lump sum severance payment, in accordance with
relevant laws. 

  
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 (b) Death. If the Executive’s employment is terminated by reason of the
Executive’s death during the Employment Period, this Agreement shall terminate without further obligations to the Executive or the Executive’s legal representatives under this Agreement, other than under Section 5(d) (ii) and
(iii) and any Accrued Obligations. 
 (c) Retirement;. Upon termination of the Executive’s employment by reason of his
Retirement during the Employment Period, this Agreement shall terminate without further obligations to the Executive other than the Accrued obligations; provided, however, that the Executive shall nonetheless be subject to the covenants set
forth in Section 13 herein. 
 (d) Cause; Voluntary Resignation. If the Executive’s employment is terminated by the Company
for Cause during the Employment Period, or the Executive voluntarily resigns his employment without Good Reason, this Agreement shall terminate without further obligations to the Executive other than the Accrued Obligations; provided,
however, that the Executive shall nonetheless be subject to the covenants set forth in Section 13 herein. 
 12. Non-Duplication
of Benefits. Notwithstanding anything to contrary in this Agreement, the aggregate of any amounts payable to the Executive by the Company pursuant to Section 5 (including any compensation and benefits paid pursuant to such section during
any applicable termination notice period pursuant to Section 3), Section 10(g) or Section 11 herein shall be offset and reduced to the extent necessary by any other compensation or benefits of the same or similar type payable under
local laws of any relevant jurisdiction so that such other compensation or benefits, if any, do not augment the aggregate of any amounts payable to the Executive by the Company pursuant to Section 5 (including any compensation and benefits paid
pursuant to such section during any applicable termination notice period pursuant to Section 3) or Section 11 herein. It is intended that this Agreement not duplicate benefits the Executive is entitled to under country
“redundancy” laws or under the Company’s severance policy, if any, any related policies, or any other contracts, agreements or arrangements between the Executive and the Company. For the sake of clarity, there shall be no offset
against any other benefits for any Accrued Obligations, or for any benefits payable under Section 5(d) (i) through (iii). 

13. Non-Competition Covenant; Payment for Non-Competition Covenant. 

(a) Except as provided in Section 13(b), during the twelve (12) months immediately following the termination of his employment with
the Company, the Executive shall not (i) accept employment with a competitor of the Company in a capacity in which such competitor can make use of the confidential information relating to the Company that the Executive has obtained in his
employment with the Company, (ii) engage as a partner or owner in such competitor of the Company, nor (iii) act as an advisor to such competitor (the “Non-Competition Covenant”). 

  
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	 	(b)	The Non-Competition Covenant shall not apply: 

  

	 	(i)	in the event the Executive’s employment is terminated by the Company other than for Cause; or 

  

	 	(ii)	in the event the Executive resigns for Good Reason. 

 (c) If the Executive does not comply with
the Non-Competition Covenant when applicable, then (i) the Executive shall not be entitled to any benefits pursuant to Section 13(d) below during the period in which the Executive is not in compliance with such Non-Competition Covenant,
and (ii) the Company shall be entitled to damages equal to six (6) times the average monthly Base Salary that the Executive received during the last twelve (12) months prior to the Date of Termination. 

(d) If the Non-Competition Covenant becomes operative, then the Company shall pay to the Executive, as compensation for the inconvenience of
such Non-Competition Covenant, up to twelve (12) monthly payments equal to the Executive’s monthly Base Salary as in effect on the Date of Termination, less the monthly salary earned during such month by the Executive in a subsequent
employment, if any; provided, however, that the aggregate monthly payments from the Company pursuant to this Section 13(d) shall not exceed sixty percent (60%) of the Executive’s annual Base Salary as in effect on the Date of
Termination, and once the 60% aggregate amount has been paid, no further payments will be made under this Section 13(d). As a condition to the receipt of such payments, the Executive must inform the Company of his base salary in his new
employment on a monthly basis. No payments will be made under this Section 13 after the Executive’s termination of employment by reason of his Retirement. 

14. Inventions. 
 (a) The
general nature of any discovery, invention, secret process or improvement made or discovered by the Executive during the period of the Executive’s employment by the Company (hereinafter called “the Executive’s Inventions”)
shall be notified by the Executive to the Company forthwith upon it being made or discovered. 
 (b) The entitlement as between the Company
and the Executive to the Executive’s Inventions shall be determined in accordance with the current Act (1949:345) on the Right to Inventions made by Employees and the Executive acknowledges that because of the nature of his duties and the
particular responsibilities arising therefrom he has a special obligation to further the interests of the Company’s undertaking. 
 (c)
Where the Executive’s Inventions are to be assigned to the Company, the Executive shall make a full disclosure of the same to the Company and if and whenever required to do so shall at the expense of the Company apply, singly or jointly with
the Company or other persons as required by the Company, for letters patent or other equivalent protection in Sweden and in any other part of the world of the Executive’s Inventions. 

15. Entire Agreement. This Agreement takes effect in substitution of all previous agreements and arrangements whether written, oral or
implied between the Company and the Executive relating to the employment of the Executive, without prejudice to any rights accrued to the Company or the Executive prior to the commencement of his employment under this Agreement. 

  
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 16. Disputes. Disputes regarding this Agreement (including, without limitation, disputes
regarding the existence of Cause or Good Reason) shall be settled by arbitration in accordance with the Swedish Arbitration Act. The arbitration shall take place in Stockholm and, unless otherwise agreed to by both parties, there shall be three
(3) arbitrators. The provisions on voting and cumulation of parties and claims in the Swedish Procedural Code shall be applied in the arbitration. All costs and expenses for the arbitration, whether initiated by the Company or by the Executive,
including the Executive’s costs for solicitor, shall be borne by the Company, unless the arbitrators determine the Executive’s claim(s) to be frivolous and in bad faith, in which case the arbitrators may allocate costs as they deem fit.
Any payments due to the Executive pursuant to the preceding sentence shall be made within fifteen (15) business days after delivery of the Executive’s written request for payment accompanied with such evidence of costs and expenses
incurred as the Company reasonably may require. 
 17. Governing Law. This Agreement shall be governed by and construed in accordance
with Swedish law and, where applicable, the laws of any applicable local jurisdictions. 
 18. Amendment. No provision of this
Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by the Executive and such officer as may be specifically designated by the Board. 

19. Notices. All notices and other communications hereunder shall be in writing and shall be given by registered or certified mail,
return receipt requested, postage prepaid, addressed as follows: 
  

			
	 If to the Executive:
	  	
		
	 If to the Company:
	  	Autoliv, Inc.
		  	Vasagatan 11, 7th Floor
		  	SE-107 24 Stockholm
		  	Sweden
		  	Attention: Group Vice President, Human Resources

 or to such other address as either party shall have furnished to the other in writing in accordance herewith. Notice and
communications shall be effective when actually received by the addressee. 

  
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 20. U.S. Tax Code Section 409A. This Section 20 shall apply only in the event
that the Executive is or becomes a taxpayer under the laws of the United States at any time during the Employment Period. 
 (a)
General. This Agreement shall be interpreted and administered in a manner so that any amount or benefit payable hereunder shall be paid or provided in a manner that is either exempt from or compliant with the requirements of Section 409A
of the Code and applicable Internal Revenue Service guidance and Treasury Regulations issued thereunder. Nevertheless, the tax treatment of the benefits provided under the Agreement is not warranted or guaranteed. Neither the Company nor its
directors, officers, employees or advisers shall be held liable for any taxes, interest, penalties or other monetary amounts owed by the Executive as a result of the application of Section 409A of the Code. 

(b) Definitional Restrictions. Notwithstanding anything in this Agreement to the contrary, to the extent that any amount or benefit
that would constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code (“Non-Exempt Deferred Compensation”) would otherwise be payable or distributable hereunder, or a different form of
payment of such Non-Exempt Deferred Compensation would be effected, by reason of of a Change in Control or the Executive’s termination of employment, as the case may be, such Non-Exempt Deferred Compensation will not be payable or distributable
to the Executive, and/or such different form of payment will not be effected, by reason of such circumstance unless the circumstances giving rise to such Change in Control or termination of employment, as the case may be, meet any description or
definition of “change of control” or “separation from service,” as the case may be, in Section 409A of the Code and applicable regulations (without giving effect to any elective provisions that may be available under such
definition). This provision does not prohibit the vesting of any Non-Exempt Deferred Compensation upon a Change in Control or termination of employment, however defined. If this provision prevents the payment or distribution of any Non-Exempt
Deferred Compensation, such payment or distribution shall be made on the date, if any, on which an event occurs that constitutes a Section 409A-compliant “change of control” or “separation from service”, as the case may be,
or such later date as may be required by subsection (c) below. If this provision prevents the application of a different form of payment of any amount or benefit, such payment shall be made in the same form as would have applied absent such
designated event or circumstance. 
 (c) Six-Month Delay in Certain Circumstances. Notwithstanding anything in this Agreement to the
contrary, if any amount or benefit that would constitute Non-Exempt Deferred Compensation would otherwise be payable or distributable under this Agreement by reason of the Executive’s separation from service during a period in which he is a
“specified employee” (as defined in Code Section 409A and the final regulations thereunder), then, subject to any permissible acceleration of payment by the Company under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic relations
order), (j)(4)(iii) (conflicts of interest), or (j)(4)(vi) (payment of employment taxes), (i) the amount of such Non-Exempt Deferred Compensation that would otherwise be payable during the six-month period immediately following the
Executive’s separation from service will be accumulated through and paid or provided on the first day of the seventh month following the Executive’s separation from service (or, if the Executive dies during such period, within thirty
(30) days after the Executive’s death) (in either case, the “Required Delay Period”); and (ii) the normal payment or distribution schedule for any remaining payments or distributions will resume at the end of the
Required Delay Period. 

  
 - 13 - 

 (d) Treatment of Installment Payments. Each payment of termination benefits under this
Agreement shall be considered a separate payment, as described in Treas. Reg. Section 1.409A-2(b)(2), for purposes of Section 409A of the Code. 

(e) Timing of Release of Claims. Whenever in this Agreement a payment or benefit is conditioned on the Executive’s execution and
non-revocation of a release of claims, such as the separation agreement referenced in Section 11(a) hereof, such release must be executed and all revocation periods shall have expired within 60 days after the Date of Termination; failing which
such payment or benefit shall be forfeited. If such payment or benefit constitutes Non-Exempt Deferred Compensation, then, subject to subsection (c) above, such payment or benefit (including any installment payments) that would have otherwise
been payable during such 60-day period shall be accumulated and paid on the 60th day after the Date of Termination provided such release shall have been executed and such revocation periods shall have expired. If such payment or benefit is exempt
from Section 409A of the Code, the Company may elect to make or commence payment at any time during such 60-day period. 
 (f)
Timing of Reimbursements and In-kind Benefits. If the Executive is entitled to be paid or reimbursed for any taxable expenses under this Agreement and if such payments or reimbursements are includible in the Executive’s federal gross
taxable income, the amount of such expenses payable or reimbursable in any one calendar year shall not affect the amount payable or reimbursable in any other calendar year, and the reimbursement of an eligible expense must be made no later than
December 31 of the year after the year in which the expense was incurred. The right to any reimbursement for expenses incurred or provision of in-kind benefits is limited to the lifetime of the Executive, or such shorter period of time as is
provided with respect to each particular right to reimbursement in-kind benefits pursuant to the preceding provisions of this Agreement. No right of the Executive to reimbursement of expenses under this Agreement shall be subject to liquidation or
exchange for another benefit. 
 (g) Timing of Tax Gross-Up Payments. If the Executive is entitled to be reimbursed for any taxes
under this Agreement, such tax reimbursement payment shall be paid by the Company to the Executive no later than December 31 of the year after the year in which the related taxes are remitted to the applicable taxing authorities. 

(signatures on following page) 

  
 - 14 - 

 IN WITNESS whereof this Agreement has been executed the day and year first above written. 

 

	
	 /s/ Lars Sjöbring

	Lars Sjöbring
	
	AUTOLIV, INC.
	
	 /s/ Jan Carlson

	Jan Carlson
	Chairman & CEO
	
	 /s/ Karin Eliasson

	Karin Eliasson
	Group Vice President Human Resources

  
 - 15 -EX-10.39

 Exhibit 10.39 
  

 
 (1) Autoliv Inc. 
 (2) Mats
Wallin 
  
  

Mutual Separation Agreement 
  

 

 This agreement regarding termination of employment “the Agreement” is entered into 

BETWEEN: 
  

	(1)	Autoliv Inc. referred to as “the Company”; 

  

	(2)	Mats Wallin, personal identification number (            ) referred to as “the Executive”; together referred to as “the Parties”.

  

	1.	Background 

  

	1.1	The Executive is employed by the Company pursuant to the terms and conditions outlined in the Executive’s employment agreement dated 2009-07-09. 

 

	1.2	The Company and the Executive have agreed that the employment of the Executive shall cease on the terms set out in this agreement. This agreement will take effect on a date to be determined by the Company “the
agreement effective date”, not later than July 31, 2016. 

 The Executive shall be released from all duties linked to
the Company on the agreement effective date, except for being reasonably available over the phone and email to answer any questions that the Company may have. Apart from what is explicitly stated below, this agreement supersedes all earlier oral and
written agreements between the Company or any associated company, and the Executive, relating to the employment of the Executive. For the purpose of this agreement, “associated company” means a legal entity directly or indirectly
controlling or controlled by or under common control with the Company, irrespective of the country of registration of such legal entity. 

The provisions of this Separation Agreement, including the avoidance of doubt section 5.6 below, shall not waive or terminate any rights to
indemnification Executive may have under the Company’s Restated Certificate of Incorporation, Restated Bylaws or the Indemnification Agreement between the Executive and the Company. 

 

	2.	Termination of the Employment 

  

	2.1	The Executive’s employment with the Company shall cease 18 calendar months after the agreement effective date (“the termination date”). Any change to be requested by the Executive to apply an earlier
termination date due to new employment is subject to the written approval of the Company. 

  

	3.	Compensation 

  

	3.1	The Executive shall be entitled to his current monthly base salary, pension contribution and other current perquisites until the termination date. 

 

	3.2	The Executive shall be entitled to “the Short Term Incentive” in accordance with the Company’s policy, for the full performance year 2015 to be paid in 2016 and for 2016 to be paid in March 2017. The
short term incentive payment does not constitute any form of pension entitlement or right to vacation pay. 

  

	3.3	The Company shall pay the Executive a lump-sum payment “the Additional Lump-sum Payment” equivalent to three monthly base salaries at the end of August 2016. 

The payment does not constitute any form of pension entitlement or right to vacation pay. 

  
 2/5 

	3.4	Not later than one month following the termination date the Company shall pay a lump sum, severance payment to the Executive “the Severance Pay” which is 12 months equivalent of the clauses (i) through
(iv) of Section 6.2 of the Severance Agreement (dated July 9, 2009) signed between “the Parties”. The payment does not constitute any form of pension entitlement or right to vacation pay. 

 

	3.5	The Company shall withhold income tax for all the compensation components and in addition thereto pay any statutory social security charges, as applicable. 

If the parties agree on an “early termination date” due to the Executive’s new employment the following conditions will apply,
“the early termination date” 
  

	 	i.	The Executive will receive 60% of the monthly base salary and pension contribution between the early termination date and the termination date. 

 

	 	ii.	Other perquisites provided to the Executive shall be cancelled starting from the early termination date. 

  

	 	iii.	The Executive shall be eligible for the annual bonus as described in paragraph 3.2 pro-rated until the early termination date, the additional lump-sum payment, and the severance pay if the payments have not already been
made. 

  

	 	iv.	All the payments remaining after the early termination shall accelerate and be paid to the Executive not later than one month following the early termination date. 

 

	3.6	Not later than the month following the termination date or the early termination date, the Company shall pay any vacation pay accrued until the agreement effective date. Any vacation day earned between the agreement
effective date and the termination date or the early termination date will be registered as used by the Executive. 

  

	4.	Undertakings 

  

	4.1	The Executive has an obligation of loyalty that follows by an employment relationship. Accordingly, the Executive has a duty to be loyal to the Company until the termination date and thus carry out, inter alia,
the remaining tasks and assignments the Executive is instructed to carry out as well as not being engaged in any business competing with the Company or its associated companies. 

 

	4.2	The Executive will continue to be bound by the confidentiality undertaking under section 8 under the employment agreement. The Executive is thereby not allowed to in any way disclose sensitive or other confidential
information regarding the Company or any of its associated companies to any other company or individuals not employed by the Company or any of its associated companies. This confidentiality undertaking is not limited in time. The Executive also
recognises that he will adhere to section 10 of the employment agreement regarding intellectual property rights. 

  
 3/5 

	4.3	To avoid any misunderstandings, the Company hereby releases the Executive from the non-competition obligation under section 9 of the employment agreement. The Company will thereby have no obligation to pay the
compensation outlined under section 9 of the employment agreement. 

  

	5.	Other Issues and Final Settlement 

  

	5.1	The executive participates in Autoliv, Inc. 1997 Stock Incentive Plan (“Incentive Plan”). The parties agree that the Executive’s entitlement under the incentive plan will be handled in accordance with the
rules and regulations prescribed by the incentive plan. With reference to the rules of the plan, the parties note that all of the Executive’s Restricted Stock Units promised but not vested will not vest and shall be forfeited as of the
termination date or the early termination date. The Executive’s unvested Non-Statutory Stock Options (“Options”) under the Stock Incentive Plan will become exercisable if the date of exercisability is before the termination date or
the early termination date. The Parties further note that the Executive’s already vested Options, if any, will remain exercisable for three (3) months after the termination date or the early termination date or until the expiration date
for the Options, whichever occurs first. 

  

	5.2	The Parties agree that the Executive shall have no priority rights to re-employment. 

  

	5.3	The separation between Executive and the Company is based on mutual trust and the parties agree that they shall use their best endeavours to act in a fair and considerate way regarding all issues relating to this
separation, including internal and external communication and other practical matters that have to be resolved as consequence of this separation. The parties have further agreed to keep the contents of this agreement confidential other than such
disclosures that are required to comply with applicable securities laws in the U.S. or Sweden. 

  

	5.4	On the date the Executive is released from all duties, the Executive shall return to the Company all keys, credit cards, documents, mobile phone, laptop computer and all other property which the Executive may have in
his possession and which belongs to the Company or its associated companies. 

  

	5.5	The Executive shall resign from all board of directors or similar directorship in the Company or in any other associated companies latest on the date the Executive is released. The Executive acknowledges that he has no
claim whatsoever outstanding against either the Company, its associated companies or any of their respective officers, directors and employees in connection with the position as director. To the extent that any such claim exists or may exist, the
Executive irrevocably waive such claim and release the Company, its associated companies and each of their respective officers, directors and employees from any liability whatsoever in respect of such claim. 

 

	5.6	Through the signing of this agreement and the fulfilment of the provisions herein, all unsettled matters between the parties shall be deemed to be finally settled and the Executive shall have no claims against the
Company or any of its associated companies as regards salary, vacation pay, bonus, pension contributions, damages or otherwise. 

  
 4/5 

	6.	Governing Law and disputes 

 This agreement shall be governed by and construed in
accordance with the laws of Sweden. 
  
  

This agreement has been duly executed in two original copies, of which each of the parties has taken one copy. 

Place; Stockholm, Sweden 
 Date; Stockholm November 20,
2015 
  

							
	On behalf of Autoliv, Inc.	  		  	The Executive	  	
				
	 /s/ Jan Carlson
	  		  	 /s/ Mats Wallin
	  	
	Jan Carlson	  		  	Mats Wallin	  	
	Chairman & CEO	  		  		  	
				
	 /s/ Karin Eliasson
	  		  		  	
	 Karin Eliasson
	  		  		  	
	 Group Vice President Human Resources
	  		  		  	

  
 5/5

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