Document:

EX-10.8

 Exhibit 10.8 

SEVERANCE AGREEMENT 
 THIS
AGREEMENT, is made by and between 
 Veoneer, Inc., a Delaware corporation (the “Company”), and Jan Carlson (the “Executive”). 

1. Defined Terms. The definitions of capitalized terms used in this Agreement are provided in the last Section hereof. 

2. Effective Date; Term of Agreement. It is anticipated that, in connection with a restructuring of Autoliv, Inc., the Company shall be
spun-off to the shareholders of Autoliv, Inc. and become a free-standing company (the “Spin-Off”). The effective date of this Agreement shall be the effective
date of the Spin-Off transaction (the “Effective Date”) or such other date to which the parties agree. If the Spin-Off for any reason is not finalized, this
Agreement will not become effective. The Term of this Agreement shall commence on the Effective Date and shall continue in effect through December 31, 2018; provided, however, that commencing on January 1, 2019 and each
January 1 thereafter, the Term shall automatically be extended for one additional year unless, not later than September 30 of the preceding year, the Company or the Executive shall have given notice not to extend the Term; and
further provided, however, that if a Change in Control shall have occurred during the Term, the Term shall expire no earlier than twenty-four (24) months beyond the month in which such Change in Control occurred. 

3. Company’s Covenants Summarized. In order to induce the Executive to remain in the employ of the Company and in consideration of
the Executive’s covenants set forth in Section 4 hereof, the Company agrees, under the conditions described herein, to pay the Executive the Severance Payments. Except as provided in Section 9.1 hereof, no Severance Payments shall be
payable under this Agreement unless there shall have been (or, under the terms of the second sentence of Section 6.1 hereof, there shall be deemed to have been) a termination of the Executive’s employment with the Company following a
Change in Control and during the Term. This Agreement shall not be construed as creating an express or implied contract of employment and, except as otherwise agreed in writing between the Executive and the Company, the Executive shall not have any
right to be retained in the employ of the Company. 

  
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 4. The Executive’s Covenants. 

 

	 	a.	The Executive agrees that, subject to the terms and conditions of this Agreement, in the event of a Potential Change in Control during the Term, the Executive will remain in the employ of the Company until the earliest
of (i) a date which is six (6) months from the date of such Potential Change of Control, (ii) the date of a Change in Control, (iii) the date of termination by the Executive of the Executive’s employment for Good Reason or
by reason of death or Retirement, or (iv) the termination by the Company of the Executive’s employment for any reason. 

  

	 	b.	The Executive agrees that for a period of twelve (12) months after the termination of his employment with the Company he will not (i) work for a competitor of the Company where any Proprietary Information in
the Executive’s possession could be used or (ii) acquire any ownership interest whatsoever in any competitor of the Company except for ownership interests of less than 5% of the outstanding shares of any publicly traded company. For the
purpose of this section, “Company” includes Autoliv, Inc. 

 5. Compensation Other Than Severance Payments.

 5.1 If the Executive’s employment shall be terminated for any reason following a Change in Control and during the Term, the Company shall pay the
Executive’s full salary to the Executive through the Date of Termination at the rate in effect immediately prior to the Date of Termination or, if higher, the rate in effect immediately prior to the first occurrence of an event or circumstance
constituting Good Reason, together with all compensation and benefits payable to the Executive through the Date of Termination under the terms of the Company’s compensation and benefit plans, programs or arrangements as in effect immediately
prior to the Date of Termination or, if more favorable to the Executive, as in effect immediately prior to the first occurrence of an event or circumstance constituting Good Reason. 

5.2 If the Executive’s employment shall be terminated for any reason following a Change in Control and during the Term, the Company shall continue to pay
in accordance with relevant Swedish law, rules and regulations all applicable social costs on behalf of the Executive as such payments become due. 

  
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 6. Severance Payments. 

6.1 If the Executive’s employment is terminated following a Change in Control and during the Term, other than (A) by the Company for Cause,
(B) by reason of death, or (C) by the Executive without Good Reason, the Company shall pay the Executive the amounts, and provide the Executive the benefits, described in this Section 6.1 and Section 6.2, (“Severance
Payments”) in addition to any payments and benefits to which the Executive is entitled under Section 5 hereof. For purposes of this Agreement, the Executive’s employment shall be deemed to have been terminated following a Change in
Control by the Company without Cause or by the Executive with Good Reason, if (i) the Executive’s employment is terminated by the Company without Cause prior to a Change in Control (whether or not a Change in Control ever occurs) and such
termination was at the request or direction of a Person who has entered into an agreement with the Company the consummation of which would constitute a Change in Control, (ii) the Executive terminates his employment for Good Reason prior to a
Change in Control (whether or not a Change in Control ever occurs) and the circumstance or event which constitutes Good Reason occurs at the request or direction of such Person, or (iii) the Executive’s employment is terminated by the
Company without Cause or by the Executive for Good Reason and such termination or the circumstance or event which constitutes Good Reason is otherwise in connection with or in anticipation of a Change in Control (whether or not a Change in Control
ever occurs). For purposes of any determination regarding the applicability of the immediately preceding sentence, any position taken by the Executive shall be presumed to be correct unless the Company establishes to the Committee by clear and
convincing evidence that such position is not correct. 
 6.2 In lieu of any further salary payments to the Executive for periods subsequent to the Date of
Termination and in lieu of any severance benefit otherwise payable to the Executive, the Company shall pay to the Executive a lump sum severance payment, in cash, equal to two point five (2.5) times the sum of (i) the Executive’s annual
base salary as in effect immediately prior to the Date of Termination or, if higher, in effect immediately prior to the first occurrence of an event or circumstance constituting Good Reason, (ii) the average of the annual bonuses earned by the
Executive pursuant to any annual bonus or incentive plan, other than the Long Term Incentive Plan, maintained by the Company in respect of the two fiscal years ending immediately prior to the fiscal year in which the Date of Termination occurs or,
if higher, immediately prior to the fiscal year in which occurs the first event or circumstance constituting Good Reason and (iii) the taxable value of the benefit of a company car and (iv) the value of any pension benefits that the
Executive would have been entitled to should the Executive have remained in service for 1 year following the Date of Termination. In addition, the Company shall pay in accordance with relevant Swedish law all relevant social costs attributable to
the lump sum severance payment described above. 

  
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 6.3 The payments provided in Section 6.2 hereof shall be made not later than the fifth day following the
Date of Termination; provided, however, that if the amounts of such payments cannot be finally determined on or before such day, the Company shall pay to the Executive on such day an estimate, as determined in good faith by the Company
of the minimum amount of such payments to which the Executive is clearly entitled and shall pay the remainder of such payments (together with interest on the unpaid remainder (or on all such payments to the extent the Company fails to make such
payments when due) at 120% of the rate provided in section 1274(b)(2)(B) of the Code) as soon as the amount thereof can be determined but in no event later than the thirtieth (30th) day after the Date of Termination. In the event that the amount of
the estimated payments exceeds the amount subsequently determined to have been due, such excess shall constitute a loan by the Company to the Executive, payable on the fifth (5th) business day after demand by the Company (together with interest at
120% of the rate provided in section 1274(b)(2)(B) of the Code). 
 6.4 The Company also shall pay to the Executive all legal fees and expenses incurred by
the Executive in disputing in good faith any issue hereunder relating to the termination of the Executive’s employment, in seeking in good faith to obtain or enforce any benefit or right provided by this Agreement or in connection with any tax
audit or proceeding attributable to any payment or benefit provided hereunder. Such payments shall be made within five (5) business days after delivery of the Executive’s written request for payment accompanied with such evidence of fees
and expenses incurred as the Company reasonably may require. 
 7. Termination Procedures and Compensation During Dispute. 

7.1 Notice of Termination. After a Change in Control and during the Term, any purported termination of the Executive’s employment (other than by
reason of death) 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 notice which shall indicate the specific
termination provision in this Agreement relied upon and shall 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. 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. 

  
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 7.2 Date of Termination. “Date of Termination,” with respect to any purported termination of the
Executive’s employment after a Change in Control and during the Term, shall mean the date specified in the Notice of Termination (which, in the case of a termination by the Company (except in the case of a termination for Cause) and by the
Executive, shall not be less than six (6) months from the date such Notice of Termination is given). 
 7.3 Dispute Concerning Termination. 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 7.3), 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 earlier of (i) the date on which the Term ends or (ii) 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 an arbitrator or a court of competent jurisdiction (which is not appealable or with respect to which the time for appeal therefrom 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. 
 7.4 Compensation During Dispute. If a purported termination occurs following a Change in Control and during the Term and the Date of
Termination is extended in accordance with Section 7.3 hereof, the Company shall continue to pay the Executive the full compensation in effect when the notice giving rise to the dispute was given (including, but not limited to, salary) and
continue the Executive as a participant in all compensation and benefit plans in which the Executive was participating when the notice giving rise to the dispute was given, until the Date of Termination, as determined in accordance with
Section 7.3 hereof. Amounts paid under this Section 7.4 are in addition to all other amounts due under this Agreement (other than those due under Section 5.2 hereof) and shall not be offset against or reduce any other amounts due
under this Agreement. 

  
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 8. No Mitigation. The Company agrees that, if the Executive’s employment with the Company terminates
during the Term, the Executive is not required to seek other employment or to attempt in any way to reduce any amounts payable to the Executive by the Company pursuant to Section 6 hereof or Section 7.4 hereof. Further, the amount of any
payment or benefit provided for in this Agreement shall not be reduced by any compensation earned by the Executive as the result of employment by another employer, by retirement benefits, by offset against any amount claimed to be owed by the
Executive to the Company, or otherwise. 
 9. Successors: Binding Agreement. 

9.1 In addition to any obligations imposed by law upon any successor to the Company, the Company will require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company 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. Failure of the Company to obtain such assumption and agreement prior to the effectiveness of any such succession shall be a breach of this Agreement and shall entitle the Executive to
compensation from the Company in the same amount and on the same terms as the Executive would be entitled to hereunder if the Executive were to terminate the Executive’s employment for Good Reason after a Change in Control, except that, for
purposes of implementing the foregoing, the date on which any such succession becomes effective shall be deemed the Date of Termination. 
 9.2 This
Agreement shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If the Executive shall die while any amount
would still be payable to the Executive hereunder (other than amounts which, by their terms, terminate upon the death of the Executive) if the Executive had continued to live, all such amounts, unless otherwise provided herein, shall be paid in
accordance with the terms of this Agreement to the executors, personal representatives or administrators of the Executive’s estate. 
 10.
Notices. For the purpose of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by registered mail, return receipt
requested, postage prepaid, addressed, if to the Executive, to the address inserted below the Executive’s signature on the final page hereof and, if to the Company, to the address set forth below, or to such other address as either party may
have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon actual receipt: 
 To the
Company: 
 Veoneer, Inc. 
 WTC, Klarabergsviadukten 70 

111 64 Stockholm, Sweden 
 Attention: Executive Vice President,
Human Resources 

  
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 11. Miscellaneous. 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. 
 No
waiver by either party hereto at any time of any breach by the other party hereto of, or of any lack of compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or
dissimilar provisions or conditions at the same or at any prior or subsequent time. This Agreement supersedes any other agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof which have been
made by either party; provided, however, that this Agreement shall supersede any agreement setting forth the terms and conditions of the Executive’s employment with the Company only in the event that the Executive’s
employment with the Company is terminated on or following a Change in Control, by the Company other than for Cause or by the Executive other than for Good Reason. The validity, interpretation, construction and performance of this Agreement shall be
governed by the laws of the Kingdom of Sweden. All references to sections of the Code shall be deemed also to refer to any successor provisions to such sections. Any payments provided for hereunder shall be paid net of any applicable withholding
required under applicable law and any additional withholding to which the Executive has agreed. The obligations of the Company and the Executive under this Agreement which by their nature may require either partial or total performance after the
expiration of the Term (including, without limitation, those under Sections 6 and 7 hereof) shall survive such expiration. 
 U.S. Tax Code
Section 409A. 
 (a) This section shall apply only in the event that the Appointee is or becomes a taxpayer under the laws of the United States at
any time during his employment with the Company. 
 (b) 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 Internal Revenue Code of 1986, as amended (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 Appointee as a result of the application of Section 409A of the Code. 

  
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 (c) 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 the
Appointee’s termination of employment, such Non-Exempt Deferred Compensation will not be payable or distributable to the Appointee, and/or such different form of payment will not be effected, by reason of
such circumstance unless the circumstances giving rise to such termination of employment meet any description or definition of “separation from service” 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 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 “separation from service” 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. 
 (d) 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 Appointee’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 Appointee’s separation from service will be accumulated through and paid or provided on the first day of the seventh month following the Appointee’s
separation from service (or, if the Appointee dies during such period, within thirty (30) days after the Appointee’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. 

  
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 (e) 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. 

(f) Timing of Release of Claims. Whenever in this Agreement a payment or benefit is conditioned on the Appointee’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. 
 (g) Timing of Reimbursements and In-kind
Benefits. If the Appointee is entitled to be paid or reimbursed for any taxable expenses under this Agreement and if such payments or reimbursements are includible in the Appointee’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 Appointee, 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 Appointee to reimbursement of
expenses under this Agreement shall be subject to liquidation or exchange for another benefit. 
 12. Definitions. For purposes of this Agreement,
the following terms shall have the meanings indicated below: 
 (A) “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of the Exchange Act. 
 (B) “Beneficial Owner” shall
have the meaning set forth in Rule 13d-3 under the Exchange Act. 
 (C) “Board” shall mean
the Board of Directors of the Company. 

  
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 (D) “Cause” for termination by the Company of the Executive’s employment shall
mean (i) the 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 or
any such actual or anticipated failure after the issuance of a Notice of Termination for Good Reason by the Executive pursuant to Section 7.1 hereof) after a written demand for substantial performance is delivered to the Executive by the Board,
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 Company establishes to the Committee by clear and convincing evidence that Cause exists. 

(E) A “Change in Control” shall be deemed to have occurred if the event set forth in any one of the following paragraphs shall have
occurred: 
 (I) any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not
including in the securities beneficially owned by such Person any securities acquired directly from the Company or its affiliates other than in connection with the acquisition by the Company or its Affiliates of a business) representing 20% or more
of the combined voting power of the Company’s then outstanding securities, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (i) of paragraph (Ill) below; or 

(Il) the following individuals cease for any reason to constitute a majority of the number of directors then serving:
individuals who, on the date hereof, constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent
solicitation, relating to the election of directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s stockholders was approved or recommended by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors on the date hereof or whose appointment, election or nomination for election was previously so approved or recommended; or 

(Ill) there is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with
any other corporation, other than (i) a merger or consolidation which would result in the voting securities of the Company outstanding immediately 

  
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prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) at least
60% of the combined voting power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (ii) a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 20% or more of the combined voting power of the Company’s then
outstanding securities; or 
 (IV) the stockholders of the Company approve a plan of complete liquidation or dissolution of
the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s
assets to an entity, at least 60% of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale. 

Notwithstanding the foregoing, a “Change in Control” shall not be deemed to have occurred by virtue of the consummation of any transaction or series
of integrated transactions immediately following which the record holders of the common stock of the Company immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity
which owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions. 
 (F)
“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time. 
 (G) “Committee” shall mean
(i) the individuals (not fewer than three in number) who, on the date six months before a Change in Control, constitute the Compensation Committee of the Board, plus (ii) in the event that fewer than three individuals are available from
the group specified in clause (i) above for any reason, such individuals as may be appointed by the individual or individuals so available (including for this purpose any individual or individuals previously so appointed under this clause
(ii)). 
 (H) “Company” shall mean Autoliv, Inc. and, except in determining under Section 13(E) hereof whether or not any
Change in Control of the Company has occurred, shall include any successor to its business and/or assets which assumes and agrees to perform this Agreement by operation of law, or otherwise. 

(I) “Date of Termination” shall have the meaning set forth in Section 7.2 hereof. 

  
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 (J) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time
to time. 
 (K) “Executive” shall mean the individual named in the first paragraph of this Agreement. 

(L) “Good Reason” for termination by the Executive of the Executive’s employment shall mean the occurrence (without the
Executive’s express written consent) after any Change in Control, or prior to a Change in Control under the circumstances described in clauses (ii) and (iii) of the second sentence of Section 6.1 hereof (treating all references in
paragraphs (I) through (VIl) below to a “Change in Control” as references to a “Potential Change in Control”), of any one of the following acts by the Company, or failures by the Company to act, unless, in the case of any
act or failure to act described in paragraph (I), (V), (VI) or (VIl) below, such act or failure to act is corrected prior to the Date of Termination specified in the Notice of Termination given in respect thereof: 

(I) the assignment to the Executive of any duties inconsistent with the Executive’s status as an executive officer of the
Company or a substantial adverse alteration in the nature or status of the Executive’s responsibilities from those in effect immediately prior to the Change in Control other than any such alteration primarily attributable to the fact that the
Company may no longer be a public company; 
 (Il) a reduction by the Company in the Executive’s annual base salary as
in effect on the date hereof or as the same may be increased from time to time except for across-the-board salary reductions similarly affecting all executives of the
Company and all executives of any Person in control of the Company; 
 (Ill) 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 immediately prior to the Change in Control 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; 

(IV) the failure by the Company to pay to the Executive any portion of the Executive’s current compensation except
pursuant to an across-the-board compensation deferral similarly affecting all executives of the Company and all executives of any Person in control of the Company, or to
pay to the Executive any portion of an installment of deferred compensation under any deferred compensation program of the Company, within seven (7) days of the date such compensation is due; 

  
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 (V) the failure by the Company to continue in effect any compensation plan in
which the Executive participates immediately prior to the Change in Control which is material to the Executive’s total compensation, including but not limited to the Bonus and Long Term Incentive Plan Bonus set forth as items 2 and 3,
respectively, in the Executive’s letter agreement with the Company dated September 1 1, 1997 or any substitute plans adopted prior to the Change in Control, 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 immediately prior to the Change in Control; 

(VI) the taking of any action by the Company which would directly or indirectly deprive the Executive of any material fringe
benefit enjoyed by the Executive at the time of the Change in Control, or the failure by the Company to provide the Executive with the number of paid vacation days to which the Executive is entitled on the basis of years of service with the Company
in accordance with the Company’s normal vacation policy in effect at the time of the Change in Control; or 
 (VII) any
purported termination of the Executive’s employment which is not effected pursuant to a Notice of Termination satisfying the requirements of Section 7.1 hereof; for purposes of this Agreement, no such purported termination shall be
effective. 
 The Executive’s right to terminate the Executive’s employment for Good Reason shall not be affected by the Executive’s
incapacity due to physical or mental illness. 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. 

For purposes of any determination regarding the existence of Good Reason, any claim by the Executive that Good Reason exists shall be presumed to be correct
unless the Company establishes to the Committee by clear and convincing evidence that Good Reason does not exist. 
 (M) “Notice of
Termination” shall have the meaning set forth in Section 7.1 hereof. 
 (N) “Person” shall have the meaning given in
Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Company or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities
under an employee benefit plan of the Company or any of its Affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as their ownership of stock of the Company. 
 (O) “Potential Change
in Control” shall be deemed to have occurred if the event set forth in any one of the following paragraphs shall have occurred: 

(I) the Company enters into an agreement, the consummation of which would result in the occurrence of a Change in Control; 

  
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 (Il) the Company or any Person publicly announces an intention to take or to
consider taking actions which, if consummated, would constitute a Change in Control; 
 (Ill) any Person becomes the
Beneficial Owner, directly or indirectly, of securities of the Company representing 15% or more of either the then outstanding shares of common stock of the Company or the combined voting power of the Company’s then outstanding securities (not
including in the securities beneficially owned by such Person any securities acquired directly from the Company or its affiliates); or 

(IV) the Board adopts a resolution to the effect that, for purposes of this Agreement, a Potential Change in Control has
occurred. 
 (P) “Proprietary Information” shall means all data, reports, interpretations, forecasts and records containing or
otherwise reflecting information concerning the Company, its affiliates and subsidiaries which is not available to the general public. 

(Q) “Retirement” shall be deemed the reason for the termination by the Executive of the Executive’s employment if such
employment is terminated in accordance with the Company’s retirement policy, including early retirement, generally applicable to its salaried employees. 

(R) “Severance Payments” shall have the meaning set forth in Section 6.1, 6.2 hereof. 

(S) “Term” shall mean the period of time described in Section 2 hereof (including any extension, continuation or termination
described therein). 
  

  
 Page 14 of
15 

 IN WHITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to
the authorization from its Board of Directors, the Company has caused these presents to be executed in its name on its behalf. 
  

	
	 /s/ Jan Carlson

	Jan Carlson
	
	Autoliv, Inc.

  

	
	/s/ James M. Ringler
	James M. Ringler
	Chairman of the Compensation Committee and Lead Director
	
	Veoneer, Inc.
	
	/s/ Karin Eliasson
	Karin Eliasson
	Group Vice President Human Resources & Sustainability, Autoliv, Inc. authorized on behalf of Veoneer, Inc.

  
 Page 15 of
15EX-10.9

 Exhibit 10.9 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into on December 20, 2017 by and between Autoliv, Inc.,
a Delaware corporation (the “Company”), and Mathias Hermansson (the “Employee”), to be effective as of the Effective Date, as defined in Section 1. 

BACKGROUND 
 The Company plans to spin-off and separately list its fully owned Electronics Division (“Electronics”) during 2018 on one or several stock exchanges in accordance with the press release issued by the Company 12 December
2017. The Company therefore desires to engage the Employee as the Chief Financial Officer for the listed Electronics entity. Until the stock exchange listing and corporate restructuring to enable this is completed, the Company will employ the
Employee as its Vice President, Electronics (Finance) from and after the Effective Date, in accordance with the terms of this Agreement and plans to transfer the employment to the new entity as soon as practically possible. The Employee is willing
to serve as such in accordance with the terms and conditions of this Agreement. Upon the effective time of the corporate restructuring, the Employee shall cease being an employee of, and resign all positions with the Company. Thereafter,
references in this Agreement to the Company shall be deemed to refer to Electronics entity rather than to Autoliv, Inc. 
 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 Employee
commences employment with the Company. The Effective Date shall be not later than January 8, 2018 or such earlier date that the parties can agree to. 

2. Employment. 
 (a)
Effective as of the Effective Date, the Employee shall be employed as the Company’s Vice President, Electronics (Finance). In his capacity as its Vice President, Electronics (Finance), the Employee shall have the duties, responsibilities and
authority commensurate with such position as shall be assigned to him by the President, Electronics and he shall report directly to the President, Electronics. The principal work place for the Employee shall be Stockholm, Sweden. 

(b) Effective as of the effective date of the Company’s internal reorganization pursuant to which the Company’s Electronics business
shall be organized under a separate entity (or entities) under the Company, the Employee shall be employed as the Chief Financial Officer, Electronics. In his capacity as Chief Financial Officer, Electronics, the Employee shall have the duties,
responsibilities and authority commensurate with such position as shall be assigned to him by the Chief Executive Officer of the Electronics and he shall report directly to the Chief Executive Officer of Electronics. The principal work place for the
Employee shall be Stockholm, Sweden. 
 3. Employment Period. The Company hereby agrees to employ the Employee and the Employee
hereby agrees to serve the Company from the Effective Date and thereafter unless and until terminated by the Company or the Employee (the “Employment Period”); provided, however, that (i) the Company must give the
Employee written notice of termination of the Employee’s employment not less than six (6) calendar months prior to such date of termination, and (ii) the Employee 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 Employee’s termination of employment shall be effective immediately. Notwithstanding the
foregoing, the Employee’s employment shall automatically terminate on the earlier occurrence of the last day of the month preceding the Employee’s 65th birthday (“Retirement”). 

4. Extent of Service. During the Employment Period, the Employee 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
Employee 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 Employee 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 Employee 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 Employee’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 Employee 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 Employee shall receive a salary at the rate of 5,000,000 SEK 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 Leadership Development and Compensation
Committee (the “Compensation Committee”) of the Company’s Board of Directors (the “Board”) shall review the Employee’s Base Salary annually during the Employment Period. Any increases to the
Employee’s salary shall become the Employee’s Base Salary for purposes of this Agreement. 
 (b) Short Term Incentive.
During the Employment Period, the Employee 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 Employee’s Target Short-Term Incentive shall be forty-five percent (45%) of his Base Salary and the Maximum Short-Term Incentive shall be no less than ninety
percent (90%) of his Base Salary. 
 (c) Equity Incentive Compensation. During the Employment Period, the Employee shall be
eligible for equity grants under the Autoliv, Inc. Amended and Restated 1997 Stock Incentive Plan, as amended (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 Employee equity awards or other long-term incentive awards in any year. For the year 2018 the Company intends to award
the Employee a stock incentive grant having a value at the grant date equal to 371,315 USD. If the Board of Directors of the Company do not award the Employee with these equity grants before 30 June 2018, the Company will compensate the
Employee with the same monetary amount as an extra cash compensation. The employee commits to acquire shares in the Company or Electronics for the net after tax amounts as soon as practically possible. 

  
 2 

 (d) Retention Bonus. The Employee shall be eligible to receive the following retention
bonus, according to the following schedule and pursuant to the terms and conditions set forth below. 
  

	 	(i)	A grant of restricted stock units (the “Retention RSUs”) having a value on the grant date equal to 238,000 USD (the “Retention Grant Value”), to be granted on the same date as the
Company grants its annual 2018 incentives (the “Retention RSU Grant Date”), pursuant to, and subject to the terms and conditions of, the 1997 Plan. The number of Retention RSUs to be granted will be determined by dividing the
Retention Grant Value by the market closing price of the Company’s stock on the Retention RSU Grant Date. The Retention RSUs will vest as to all of the Retention RSUs on the third (3rd) anniversary of the Retention RSU Grant Date, provided that
the Employee remains employed by the Company or a designated assignee on such date. The Retention RSUs shall have such other terms and conditions as provided in the Company’s standard form of restricted stock unit agreement. 

 

	 	(ii)	Notwithstanding the above, if the Company terminates the Employment without Cause or the Employee terminates the Employment with Good Reason, the Company can elect to either let the Retention RSUs be immediately vested
or make a cash compensation at the corresponding value. 

 (e) Automobile. During the Employment Period, the
Company shall provide the Employee with a company car. The Employee and his immediate family may also use the company car for personal purposes. The Company shall bear all petrol, maintenance and repair costs, as well as insurance costs and vehicle
tax related to the Company car. The Employee shall, however, be liable for the payment of tax on the taxable benefit resulting from the right to use the company car for personal purposes. 

(f) Medical Benefits. During the Employment Period, the Employee and his spouse or significant other is entitled to the Skandia
Medical Care Insurance, or any successor arrangement or plan having similar terms and conditions. 
 (g) Expenses. During the
Employment Period, the Employee 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 Employee shall provide the Company with receipts, vouchers or other evidence of actual payment of the expenses to be reimbursed, as requested by the Company. 

(h) Conditions of Employment. Normal conditions of employment as issued by the Company apply to the receipt of benefits under this
Section 5. 
 6. Holidays. During the Employment Period, the Employee shall be entitled to yearly holidays amounting to the
minimum legal holiday days plus additional days, in total 30 vacation days. 
 7. Pension. The Company shall pay pension
premiums for defined contribution pension insurance with an amount equal to thirty-five percent (35%) of the Employee’s Base Salary. The pension premiums shall include premiums under the ITP plan, giving the Employee certain benefits in
the event of his temporary or permanent illness. The insurance shall be taken out at a reputable insurance company, to be approved of in advance by the Company. 

  
 3 

 8. Business or Trade Information. The Employee 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 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
Employee 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 Employee received during the preceding twelve (12) months, if the Employee
continues to be employed, or during the last twelve (12) months prior to his Date of Termination, if the Employee’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 Employee in the event that the Company is able to demonstrate to the arbitrators that the value of the direct damages incurred by the Company
due to the Employee’s violation of this Section 8 exceed the aggregate value of the damages paid by the Employee to the Company pursuant to the foregoing provision. 

9. Company Property. The Employee 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 Employee’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 Employee has occurred during the Employment Period, it may give to Employee written notice of its intention to terminate the
Employee’s employment. 

 “Disability” shall mean the inability of the Employee, 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 Employee or his personal representative, the Board’s determination that the Disability of the Employee has occurred shall be certified by a physician mutually agreed upon by the Employee, or
his personal representative, and the Company. 
 (b) Termination by the Company. The Company may terminate the Employee’s
employment during the Employment Period with or without Cause. “Cause” for termination by the Company of the Employee’s employment shall mean (i) willful and continued failure by the Employee to substantially perform the
Employee’s duties with the Company (other than any such failure resulting from the Employee’s incapacity due to physical or mental illness) after a written demand for substantial performance is delivered to the Employee by the Board, which
demand specifically identifies the manner in which the Board believes that the Employee has not substantially performed the Employee’s duties, or (ii) the willful engaging by the Employee 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 Employee’s part shall be deemed “willful” unless
done, or 

  
 4 

 
omitted to be done, by the Employee not in good faith and without reasonable belief that the Employee’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 Group VP, Human Resources & Sustainability establish
to the Board by clear and convincing evidence that Cause exists, subject to Section 10(f) hereof. 
 (c) Termination by the
Employee. The Employee may terminate his employment during the Employment Period with Good Reason or without Good Reason. “Good Reason” shall mean the occurrence, without the Employee’s express written consent, of any of
the following: 
  

	 	(i)	a not in an insignificant way diminution in the Employee’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 not in an insignificant way diminution in the Employee’s Base Salary and change in eligibility for short term incentive, stock incentive or pension as in effect on the date hereof or as the same may be increased
from time to time; 

  

	 	(iii)	the relocation of the Employee’s principal place of employment to a location more than 45 kilometers from the Employee’s principal place of employment on the date hereof or the Company’s requiring the
Employee 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 Employee’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 Employee any portion of the Employee’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 Employee participates on the date hereof which is material to the Employee’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 Employee’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 Employee’s participation relative to other participants, as existed on the date hereof; or 

 

	 	(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. 

  

	 	(viii)	the failure by the Company to separately list Electronics on an internationally recognized stock market with trading commenced prior to 31 March, 2019. 

A termination by the Employee shall not constitute termination for Good Reason unless the Employee 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 

  
 5 

 
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 Employee.
The Employee’s termination for Good Reason must occur within a period of 160 days after the occurrence of an event of Good Reason. The Employee’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 Employee’s death or Disability. 

(d) Notice of Termination. Any termination by the Company or the Employee of the Employee’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 Employee’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 Employee and an opportunity for the Employee, together with the Employee’s counsel, to
be heard before the Board) finding that, in the good faith opinion of the Board, the Employee 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 Employee’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 Employee’s employment is terminated by reason of death,
the Date of Termination shall be the date of death of the Employee, or (iii) if the Employee’s employment is terminated by reason of Retirement, the Date of Termination shall be the date of Retirement. 

(f) Dispute Concerning Termination. Any disputes regarding the termination of the Employee’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 Employee only if such notice is given in good faith and the Employee 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 Employee 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 Employee is not entitled to severance payments under the terms of this Agreement, then the Employee shall repay to the Company the compensation received by the Employee during the extended period
pursuant to this Section 10(g). 

  
 6 

 11. Obligations of the Company Upon Termination of Employment. 

(a) Termination by the Company Other Than for Cause; Termination by the Employee for Good Reason. If, during the Employment Period, the
Company shall terminate the Employee’s employment other than for Cause, or the Employee shall terminate employment for Good Reason, then, and only if within forty-five (45) days after the Date of Termination the Employee 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
Employee a lump sum severance payment, in cash, equal to one and a half times (1.5x) the Employee’s Base Salary and accrued Short Term Incentive during the last twelve (12) months 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 for short term incentive calculations and pursuant to Section 21(c) herein). In addition, the Company shall pay to the
Employee 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 Employee 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”). 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. 
 (b) Death. If the Employee’s employment is terminated by reason of the Employee’s death during the
Employment Period, this Agreement shall terminate without further obligations to the Employee or the Employee’s legal representatives under this Agreement and any Accrued Obligations. 

(c) Retirement; Upon termination of the Employee’s employment by reason of his Retirement during the Employment Period,
this Agreement shall terminate without further obligations to the Employee other than the Accrued obligations; provided, however, that the Employee shall nonetheless be subject to the covenants set forth in Section 13 herein. 

(d) Cause; Voluntary Resignation. If the Employee’s employment is terminated by the Company for Cause during the Employment
Period, or the Employee voluntarily resigns his employment without Good Reason, this Agreement shall terminate without further obligations to the Employee other than the Accrued Obligations; provided, however, that the Employee 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 Employee 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 Employee 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 Employee 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 Employee and the Company. For the sake of clarity, there shall be no offset against any other benefits for any Accrued Obligations. 

  
 7 

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

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

  

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

 (c) If the Employee does not comply with
the Non-Competition Covenant when applicable, then (i) the Employee shall not be entitled to any benefits pursuant to Section 13(d) below during the period in which the Employee 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 Employee 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 Employee, as compensation for the inconvenience of such Non-Competition Covenant, up to twelve (12) monthly payments equal to the Employee’s monthly Base
Salary as in effect on the Date of Termination, less the monthly salary earned during such month by the Employee 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 Employee’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 Employee 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 Employee’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 Employee during the period of the
Employee’s employment by the Company (hereinafter called “the Employee’s Inventions”) shall be notified by the Employee to the Company forthwith upon it being made or discovered. 

(b) The entitlement as between the Company and the Employee to the Employee’s Inventions shall be determined in accordance with the
current Act (1949:345) on the Right to Inventions made by Employees and the Employee 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 Employee’s Inventions are to be assigned to the Company, the Employee
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 Employee’s Inventions. 

  
 8 

 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 Employee relating to the employment of the Employee, without prejudice to any rights accrued to the Company or the Employee prior to the commencement of his
employment under this Agreement. 
 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 Employee,
including the Employee’s costs for solicitor, shall be borne by the Company, unless the arbitrators determine the Employee’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 Employee pursuant to the preceding sentence shall be made within fifteen (15) business days after delivery of the Employee’s written request for payment accompanied with such evidence of costs and expenses incurred as
the Company reasonably may require. 
 17. Assignment and Successors. The rights and obligations of the Company under this Agreement
may be assigned without the Employee’s consent and shall inure to the benefit of and be binding upon the successors and assigns of the Company. The Employee’s rights or obligations hereunder may not be assigned to or assumed by any other
person, provided that the rights of the Employee hereunder shall inure to the benefit of the heirs and personal representatives of the Employee. No other persons shall have any right, benefit or obligation hereunder. 

18. 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. 
 19. 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 Employee and such officer as may be specifically designated by the Board. 

20. 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 Employee:
	  	Mathias Hermansson
		
	 If to the Company:
	  	 Autoliv, Inc.
 Klarabergsviadukten 70 Section B,
7th Floor
 Box 70381

SE-107 24
 Stockholm,
Sweden
 Attention: Secretary

 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. 

  
 9 

 21. U.S. Tax Code Section 409A. This Section 21 shall apply only in the
event that the Employee 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 Employee 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 a Change in Control or the Employee’s termination of employment, as the case may be, such Non-Exempt Deferred Compensation will not be payable or distributable to the
Employee, 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 Employee’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 Employee’s separation from service will be accumulated through and paid or provided on the first day of the seventh month following the Employee’s separation from service (or, if the Employee dies during
such period, within thirty (30) days after the Employee’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. 
 (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 Employee’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. 

  
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 (f) Timing of Reimbursements and In-kind
Benefits. If the Employee is entitled to be paid or reimbursed for any taxable expenses under this Agreement and if such payments or reimbursements are includible in the Employee’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 Employee, 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 Employee 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 Employee is entitled to be reimbursed for any taxes under this Agreement, such tax reimbursement payment shall be paid by the Company to the Employee 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) 

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

 

	
	
	/s/ Mathias Hermansson
	Mathias Hermansson
	
	/s/ Jan Carlson
	Jan Carlson
	Chairman & CEO
	
	/s/ Karin Eliasson
	Karin Eliasson
	Group VP, Human Resources & Sustainability

  
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