Document:

alv-ex44_502.htm

Exhibit 4.4

 

Execution Version

Amendment and Waiver 

2014 note purchase and guaranty agreement

AMENDMENT AND WAIVER, dated as of May 24, 2018 (this “Amendment and Waiver”), among AUTOLIV ASP, INC., an Indiana corporation (the “Company”), AUTOLIV, INC., a Delaware corporation (the “Parent Guarantor” and, together with the Company, the “Obligors”) and the holders of the Notes issued under the Existing Note Agreement (the “Noteholders”).

W I T N E S S E T H:

A.The Obligors and the Noteholders are parties to that certain Note Purchase and Guaranty Agreement, dated April 23, 2014 (as in effect immediately prior to the effectiveness of this Amendment and Waiver, the “Existing Note Agreement”, and, as amended by this Amendment and Waiver, the “Note Agreement”), by and among the Obligors and the Noteholders pursuant to which the Company issued (a) those certain 2.84% Series A Guaranteed Senior Notes due April 23, 2019, (b) those certain 3.51% Series B Guaranteed Senior Notes due April 23, 2021, (c) those certain 4.09% Series C Guaranteed Senior Notes due April 23, 2024, (d) those certain 4.24% Series D Guaranteed Senior Notes due April 23, 2026 and (e) those certain 4.44% Series E Guaranteed Senior Notes due April 23, 2029 (collectively, the “Notes”).

	
B.
	
The Parent Guarantor plans to spin-off its electronics business segment, creating a new, independent publicly traded company to be called Veoneer, Inc. (such spin-off transaction, as further described in paragraph C(ii) below, including the internal reorganization being completed by the Parent Guarantor to prepare for such spin-off as described in paragraph C(i) below, being referred to herein as the “Transaction”).

C.The Transaction will be effected in all material respects as follows:

 

(i)the Parent Guarantor would engage in an internal reorganization pursuant to which it would create a new Subsidiary, to be called Veoneer, Inc., a Delaware corporation (“Veoneer”), to which it would transfer its electronics business segment and up to approximately $1.05 billion (the “Internal Reorganization”); 

 

(ii)upon completion of the Internal Reorganization, the Parent Guarantor would effect the spin-off of Veoneer by paying a dividend of the common stock of Veoneer on a pro rata basis to all holders of the Parent Guarantor’s common shares (including through Swedish Depository Receipts) as of a certain designated date (the “Spin-Off”); and

 

(iii)following the Spin-Off, (a) the Group’s existing passive safety business segment would remain with the Group and (b) neither Veoneer nor any of its subsidiaries would have any liability or obligations in respect of the Notes or the Note Agreement.

 

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Exhibit 4.4

 

	
D.
	
In connection with the Transaction, the Obligors have requested certain amendments to and waivers in respect of the Existing Note Agreement and the Noteholders are willing to agree to such amendments and waivers subject to certain conditions, as provided for herein.

NOW THEREFORE, in consideration of the premises, the mutual covenants and the agreements hereinafter set forth and other good and valuable consideration, the parties hereto hereby agree as follows:

1.Defined Terms.  Capitalized terms used herein and not otherwise defined herein have the meanings ascribed to them in the Existing Note Agreement.  

2.Waivers.  The Noteholders hereby waive any breach of Sections 10.1, 10.3 or 10.7 of the Note Agreement arising solely from the Internal Reorganization and/or the Spin-Off.

3.Amendments.

(a)Section 7.2. 

(i)The first paragraph of Section 7.2 of the Existing Note Agreement is hereby amended and restated in its entirety to read as follows:

“Each set of financial statements delivered to a holder of Notes pursuant to Section 7.1(a) or Section 7.1(b) shall be accompanied by a certificate of a Senior Financial Officer of the Parent Guarantor setting forth (which, in the case of Electronic Delivery of any such financial statements, shall be by separate concurrent delivery of such certificate to each holder of Notes, which concurrent delivery may be by means of electronic mail to the email address (if any) provided by such holder to the Parent Guarantor for purposes of receiving information relating to this Agreement):”

(ii)The word “and” at the end of Section 7.2(a) is hereby deleted; the period at the end of Section 7.2(b) is hereby deleted and there is substituted therefor “; and”; and a new Section 7.2(c) is hereby added to read in its entirety as follows:

“(c)Rating – a statement of the Parent Guarantor’s Rating (as defined in Section 24.9), together with relevant supporting documentation.” 

(b)Section 10.3.  The introductory language of Section 10.3 of the Existing Note Agreement, up to (but not including) paragraph (a) thereof, is hereby amended and restated in its entirety to read as follows:

“Except as permitted by Section 10.2, the Parent Guarantor will not, and will not permit any Subsidiary to, directly or indirectly, engage in any Disposition of any of its assets unless, after giving effect to such proposed Disposition, the aggregate net book value of all assets of the Group that were the subject of Dispositions made during the 365-day period ending on the date of such proposed Disposition does not exceed 10% of Consolidated Total Assets (to be determined as at the end of the immediately preceding 

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Exhibit 4.4

 

financial year), provided that the following Dispositions shall not be taken into account for purposes of this Section 10.3:”

(c)Section 11(m).  The period at the end of Section 11(l) is hereby replaced by “; or” and a new Section 11(m) is hereby added to the Existing Note Agreement to read in its entirety as follows:

(m)the Company defaults in the payment of either Downgrade Fee required to be paid pursuant to Section 24.9 for more than five Business Days after the same becomes due and payable.

(d)Definition of “Disposition”.  The definition of “Disposition” set forth in Schedule B to the Existing Note Agreement is hereby amended and restated in its entirety to read as follows:

“’Disposition’ means any sale, lease, transfer or other disposition of assets by any Person, whether for consideration or by means of a Specified Dividend, but in all cases excluding any Specified Dividend made by one member of the Group to another member of the Group.” 

(e)Definition of “Specified Dividend”.  A new definition of “Specified Dividend” is hereby added to Schedule B to the Existing Note Agreement in its appropriate alphabetical order, to read in its entirety as follows:

“Specified Dividend” means a dividend of any stock held by any Person (except such Person’s own stock) or other assets of such Person (except cash) or a transfer of any stock or other assets of such Person pursuant to a de-merger or other similar transaction or transactions the cumulative effect of which is to divest assets from such Person, in all cases regardless of whether any consideration is received therefor.

(f)Downgrade Fee.  A new Section 24.9 is hereby added to the Existing Note Agreement to read in its entirety as follows:

24.9Downgrade Fee.

(a)On any day on which a Mid-Level Investment Grade Rating shall be in effect, a fee (the “Mid-Level Downgrade Fee”) shall accrue on the outstanding principal amount of the Notes in an amount equal to .50% (50 basis points) per annum. 

(b)On any day on which a Below Investment Grade Rating shall be in effect, or on any day when no Rating shall be in effect, a fee (the “BIG Fee” and, together with the Mid-Level Downgrade Fee, the “Downgrade Fees”) shall accrue on the outstanding principal amount of the Notes in an amount equal to 2.5% (250 basis points) per annum.

(c)The Downgrade Fees shall, to the extent accrued, be paid on the same dates (and by the same payment method) on which interest on the Notes is payable and, if not paid when due, any unpaid Downgrade Fees shall bear interest at the Default Rate until paid in full.

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Exhibit 4.4

 

(d)For the avoidance of doubt, it is understood and agreed that (i) only the Mid-Level Downgrade Fee or the BIG Fee, but not both, may be in effect at any time, (ii) the Downgrade Fees shall not apply on any day when a Rating shall be in effect that is higher than a Mid-Level Investment Grade Rating and (iii) the Downgrade Fees, or the suspension thereof, shall apply to successive increases and decreases in the Rating in effect from time to time (or successive times when no Rating is in effect).

(e)The following terms have the following meanings: 

“Below Investment Grade Rating” means a Rating of BB+ or lower by S&P or Fitch, or a Rating of Ba1 or lower by Moody’s.

“Fitch” means Fitch, Inc.

“Mid-Level Investment Grade Rating” means a Rating of BBB or BBB- by S&P or Fitch, or a Rating of Baa2 or Baa3 by Moody’s.

“Moody’s” means Moody’s Investors Service, Inc.

“Rating” means an issuer credit rating of the Parent Guarantor’s senior unsecured debt obligations with an original maturity of one year or more by one or more of Fitch, Moody’s or S&P.  If there are two different Ratings in effect at any time, the “Rating” shall be the lower of the two; if there are three Ratings in effect at any time, the “Rating” shall be the two highest ratings, if they are the same, or the lower of the two highest Ratings if the two highest Ratings differ.  A Rating from any of Fitch, Moody’s and S&P shall be deemed to be in effect as of the date of the written confirmation of such Rating from such Person; provided that, for the avoidance of doubt, a Rating from S&P is currently in effect and shall, so long as it remains in effect, be deemed a Rating for purposes of this definition, without any requirement to provide the supporting documentation therefor pursuant to Section 7.2(c) (it being understood that the statement regarding such Rating, as required by such Section, shall continue to be required).

“S&P” means S&P Global Ratings, a division of S&P Global Inc.

4.Representations and Warranties  To induce the Noteholders to agree to the amendments and waivers contemplated by this Amendment and Waiver, each of the Obligors represents and warrants, on the date of this Amendment and Waiver and on the Effective Date, as follows (it being agreed, however, that nothing in this Section 4 shall affect any of the representations and warranties previously made by such Obligor in or pursuant to the Note Agreement, and that all of such other representations and warranties, as well as the representations and warranties in this Section 4, shall survive the effectiveness of the amendments contemplated hereby):

(a)Organization; Power and Authority.  Each Obligor is a corporation duly organized, validly existing and, where such concept is legally relevant, in good standing under the laws of the jurisdiction in which it is organized.  Each Obligor has the corporate power and authority to execute and deliver this Amendment and Waiver and to perform the provisions hereof and of the Note Agreement.

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Exhibit 4.4

 

(b)Authorization, Etc.  This Amendment and Waiver has been duly authorized by all necessary corporate or similar action on the part of each Obligor, and this Amendment and Waiver and the Note Agreement constitute legal, valid and binding obligations of each Obligor enforceable against such Obligor in accordance with their respective terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

(c)Compliance with Laws, Other Instruments, Etc.  The execution and delivery of this Amendment and Waiver, and the performance by the Obligors of this Amendment and Waiver and the Note Agreement, will not (i) contravene, result in any breach of, or constitute a default, or result in the creation of any Lien in respect of any property of either Obligor under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter or by-laws, shareholders agreement or any other agreement or instrument to which either Obligor is bound or by which either Obligor or any of its properties may be bound or affected, (ii) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree or ruling of any court, arbitrator or Governmental Authority applicable to either Obligor or (iii) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to either Obligor.

(d)Governmental Authorizations, Etc.  No consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority is required in connection with the execution or delivery of this Amendment and Waiver, or the performance of this Amendment and Waiver or the Note Agreement, by either Obligor.

(e)No Default or Event of Default.  No event has occurred and is continuing and no condition exists which, immediately before giving effect to this Amendment and Waiver, constitutes or would constitute a Default or an Event of Default.  No event has occurred and is continuing and no condition exists which, immediately after giving effect to this Amendment and Waiver, constitutes or would constitute a Default or an Event of Default (as each such term is defined in the Note Agreement).

(f)Fees.  No fee or other consideration (other than any applicable advisors’ fees and reimbursements for out-of-pocket costs) has been paid or will be paid by either Obligor or any of their respective Subsidiaries or Affiliates to (i) any agent, lender or creditor under any Principal Bank Facility, or (ii) except for fees equal to the fees referred to in Section 5(b) hereof and Section 24.9 of the Note Agreement, any holder of notes outstanding under the Note Purchase and Guaranty Agreement, dated November 8, 2007 (the “Other NPA”), or any other note purchase agreement, in the case of each facility or agreement referred to in the foregoing clauses (i) and (ii) in connection with any waivers and amendments in respect thereof equivalent to the waivers and amendments effected pursuant to Sections 2 and 3 of this Amendment and Waiver. 

(g)Subsidiary Guarantors.  No Subsidiary is or is required to be a Subsidiary Guarantor.

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Exhibit 4.4

 

5.Conditions Precedent.  The waivers and amendments provided for in Sections 2 and 3 of this Amendment and Waiver shall become effective as of the first date on which the conditions precedent set forth below shall have been satisfied in full (the “Effective Date”), so long as the Effective Date shall occur on or before May 31, 2018:

(a)each Noteholder shall have received counterparts of this Amendment and Waiver duly executed by the Obligors and the Required Holders;

(b)each Noteholder shall have received, by wire transfer of immediately available funds to the account set forth in Schedule A of the Note Agreement for payments in respect of the Notes (or such other written payment instructions as any Noteholder has provided to the Company), an amendment fee equal to .10% (10 bps) of the aggregate principal amount of Notes held by it;

(c)each Noteholder shall have received evidence that the Obligors and the holders of notes issued under the Other NPA shall have entered into an agreement to provide for waivers and amendments in respect of the Other NPA substantively consistent in all material respects with this Amendment and Waiver, which agreement shall be in full force and effect on the Effective Date, and each Noteholder shall have received a copy thereof; and

(d)the Obligors shall have paid the reasonable attorneys’ fees and expenses of Morgan, Lewis & Bockius LLP incurred as counsel to the Noteholders in connection with the negotiation and documentation of this Amendment and Waiver (including a reasonable estimate of post-closing fees and expenses), all to the extent reflected in a statement of such counsel rendered to the Obligors at least one Business Day prior to the date hereof.

6.Expenses.  Whether or not the waivers and amendments in respect of the Existing Note Agreement provided for in Sections 2 and 3 become effective, the Obligors will promptly (and in any event within 30 days of receiving any statement or invoice therefor) pay all reasonable fees and expenses of the Noteholders’ special counsel, Morgan, Lewis & Bockius LLP, incurred in connection with the preparation, negotiation and delivery of this Amendment and Waiver and any other documents related thereto.  Nothing herein shall limit the Obligors’ obligations pursuant to Section 16 of the Note Agreement.

7.Governing Law.  This Amendment and Waiver shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding choice‐of‐law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

8.No Other Amendments.  Except as expressly amended, modified and supplemented hereby, the terms, provisions and conditions of the Note Agreement (including, without limitation, the guarantee set forth in Section 23 of the Note Agreement), the Notes and the agreements and instruments relating thereto are and shall remain unchanged and in full force and effect and are hereby ratified and confirmed in all respects.

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Exhibit 4.4

 

9.Headings.  The headings of sections of this Amendment and Waiver are inserted for convenience only and shall not be deemed to constitute a part of this Amendment and Waiver.

10.Counterparts; Facsimiles.  This Amendment and Waiver may be executed in any number of counterparts by the parties hereto, each of which counterparts when so executed shall be an original, but all counterparts taken together shall constitute one and the same instrument.  Delivery of an executed signature page by facsimile or e-mail transmission shall be effective as delivery of a manually signed counterpart of this Amendment and Waiver. 

[Remainder of page intentionally left blank. Signature pages follow.]

 

 

7

 

IN WITNESS WHEREOF, the parties have caused this Amendment and Waiver to be duly executed and delivered by their respective proper and duly authorized officers as of the day and year first above written.

 

	
AUTOLIV ASP, INC.

	
 
	
 
	
 

	
By
	
 
	
/s/ Anthony Nellis

	
Name:
	
 
	
Anthony Nellis

	
Title:
	
 
	
VP Legal & Director

 

	
AUTOLIV, INC.

	
 
	
 
	
 

	
By
	
 
	
/s/ Mats Backman

	
Name:
	
 
	
Mats Backman

	
Title:
	
 
	
CFO

 

[Signature page to Amendment and Waiver to 2014 Note Purchase and Guaranty Agreement – Autoliv]

 

DB1/ 97484716.8alv-ex45_318.htm

1

Exhibit 4.5

 

The below General Terms and Conditions are, in all essential respects, a translation of the Swedish version of the “General Terms and Conditions for Swedish Depository Receipts representing common shares in Autoliv, Inc., kept in safe custody with Skandinaviska Enskilda Banken AB (publ) (Sw: Allmänna viIlkor för svenska depåbevis avseende stamaktier i Autoliv. Inc., deponerade hos Skandinaviska Enskilda Banken AB (publ))”. In the event of any difference between this translation and the Swedish original version, the Swedish original version shall govern.

GENERAL TERMS AND CONDITIONS 

FOR 

SWEDISH DEPOSITORY RECEIPTS IN AUTOLIV, INC.

representing common shares in Autoliv, Inc.

kept in safe custody with Skandinaviska Enskilda Banken AB (publ)

Effective as from May 30, 2018

Autoliv, Inc. (the Company) has requested Skandinaviska Enskilda Banken AB (publ) (SEB) and SEB has agreed (i) to hold in safe custody common shares in the Company (the Shares) on behalf of holders of Shares and (ii) to issue Swedish Depository Receipts representing the Shares (the SDRs) to shareholders in accordance with these General Terms and Conditions (these General Terms and Conditions), in order to enable listing and trading of the Shares on the Nasdaq Stockholm AB in Sweden.

1.Safe custody, registration etc

1.1The Shares, represented by share certificates or by a book-entry registration, are deposited on behalf of holders of SDRs in safe custody with a bank conducting business in the U.S. designated by SEB (the Sub-Custodian).

1.2For the safe custody these General Terms and Conditions will apply. Further to these General Terms and Conditions, certain rules and regulations may apply as to the share holding in the Company. Such rules and regulations will upon request be provided by SEB to holders of SDRs, either directly or through their nominee (the Holders).

1.3The rights of a Holder against SEB as depository according to these General Terms and Conditions relating to the Shares kept in safe custody are registered in the form of SDRs (Sw. svenska depåbevis) in the book-entry system administered by Euroclear Sweden AB (Euroclear) in accordance with the Swedish Central Securities Depositories and Financial Instruments Accounts Act (Sw. lagen (1998:1479) om värdepapperscentraler och kontoföring av finansiella instrument) on the accounts (VPC Accounts) designated by the Holders (the SDR Register). No certificates representing the SDRs will be issued.

2.Transfer restrictions

2.1SEB and the Sub-Custodian may refuse to accept Shares for deposit under these General Terms and Conditions whenever notified that the Company has restricted transfer of such Shares to comply with any ownership or transfer restrictions under Swedish, U.S. or any other applicable law.

3.Deposit, withdrawal and delivery of Shares

3.1Upon payment of all taxes and governmental charges payable in connection with a deposit of Shares, Shares may be deposited under these General Terms and Conditions by delivery to SEB or the Sub-Custodian together with appropriate instructions to SEB as to the name, address and VPC Account number which the SDRs are to be registered as well as any other information and documentation required under Swedish, U.S. or any other applicable law.

 

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Exhibit 4.5

3.2Upon payment of all taxes and governmental charges payable in connection with a withdrawal of Shares, Shares may be withdrawn from the safe custody only if such withdrawal is not prohibited under Swedish, U.S. or any other applicable law or by a decision of a governmental authority. Shares will be delivered to a custody account designated by the Holder or as agreed between the Holder and SEB provided the corresponding SDRs have been surrendered to and cancelled by SEB in the SDR Register.

3.3SEB is entitled to compensation from a Holder for all fees and costs in connection with deposit, withdrawal and delivery of Shares pursuant to this Section 3, in accordance with the price list applied by SEB from time to time.

3.4Registrations in the SDR Register resulting from deposits or withdrawals of Shares may be temporarily suspended or withheld, during any period when the transfer books of Euroclear or the Company are closed, or if any such action is deemed in good faith to be necessary or advisable by the Company or SEB at any time.

4.Transfer and pledge of Shares, etc.

4.1The Shares can only, as long as they are in safe custody, be transferred or pledged by a transfer or pledge of the SDRs through registration in the SDR Register by a competent account operating institute (kontoförande institut) or, in the case of SDRs registered in the name of a nominee, through notification to the nominee. In order to be accepted by the Company such transfer or pledge may not be in violation of rules or regulations regarding restrictions on transferability that may arise pursuant to the General Corporation Law of the state of Delaware, USA, the Company's certificate of incorporation or by-laws or U.S. federal  law.

4.2As regards transfers or pledges of SDRs the person considered to be the rightful Holder/pledgee as a result of a transfer or pledge is subject to these General Terms and Conditions and the rules and regulations applicable to financial instruments registered with Euroclear according to Chapter 5 in the Swedish Companies Act (Sw. Aktiebolagslagen (2005:551) and the Swedish Central Securities Depositories and Financial Instruments Accounts Act (1998:1479).

4.3The registrations in the SDR Register to reflect the transfer of SDRs in particular instances may be refused, or the registration of transfer generally may be suspended, during any period when the transfer books of Euroclear or the Company are closed or if any such action is deemed in good faith to be necessary or advisable by the Company or SEB at any time.

4.4A notice according to the Swedish Central Securities Depositories and Financial Instruments Accounts Act (1998:1479) to a competent account operating institute or, if the SDRs are nominee registered, to the nominee, must always be made in connection with changes of ownership as well as changes of registered information of a Holder, i.e. name, address, etc. A failure to give a notice of transferred ownership may result in the acquirer losing the right against the Company, SEB and Euroclear to receive dividends or any other rights in connection with the SDRs.

5.Record date

5.1SEB shall in consultation with the Company fix a date for the determination of the Holders entitled to dividends in cash, shares, rights, or any other property or the proceeds thereof (if the property is sold by SEB in accordance with these General Terms and Conditions), receiving information etc. to participate in and vote at a shareholders' meeting or otherwise exercise any rights whatsoever that may be exercised by the shareholders of the Company (the Record Date). It is the intention of the Company and SEB that the Record Date for such dividends or other rights shall, when practically possible, be the same date as the record date for the Shares.

6.Payments of cash dividend, withholding taxes, etc.

6.1Payment of dividends to the Holders shall be made in Swedish kronor (SEK).

6.2SEB shall in consultation with the Company fix the date for payment of each dividend to Holders (the Payment Date). It is the intention of SEB and the Company that the Payment Date shall, when practically possible, be the same date as the payment date for the Shares.

 

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Exhibit 4.5

6.3Prior to payment of any dividend according to these General Terms and Conditions, SEB shall convert the funds received in a foreign currency into SEK in accordance with the exchange rates applied by SEB from time to time. Such conversion shall take place not more than five nor less than three business days prior to the Payment Date by SEB entering into futures contracts with delivery on the Payment Date. The final conversion rate will be an average of the rates achieved in each such futures contract.

6.4The person registered in the SDR Register on the Record Date as the Holder/holder of rights to dividends relating to the SDRs shall be considered to be authorized to receive dividends. Payments of dividends will be effected in SEK by Euroclear on the Payment Date. Dividend amounts for each SDR will be payable in SEK rounded down to one hundredth of one SEK. Any balance not so distributed shall be repaid to the Company.

6.5If the person receiving dividends should not be an authorized recipient then the Company, SEB and Euroclear shall be considered to have fulfilled their respective obligations unless in the case of SEB or Euroclear either was aware that the payment of dividends was made to an unauthorized person or that, considering the specific circumstances, they have neglected what reasonably should have been regarded and the payment is not binding for the right recipient because such person was under age or had a Legal guardian according to the Code on Parents and Children (Föräldrabalken) and the right to receive dividends was in the authority of the legal guardian.

6.6Euroclear shall pay dividends to the Holders/holders of rights to dividends relating to the SDRs in accordance with the rules and regulations applied by Euroclear from time to time. Under the present rules and regulations of Euroclear, dividends normally are paid to cash accounts linked to the VPC Accounts on which the SDRs are registered.

6.7The dividend payments to the Holders shall be made without deduction of any costs, charges, or fees, neither from the Company, SEB, the Sub-Custodian nor Euroclear, except for the withholding tax levied in the U.S. and Sweden, on dividend payments or any other tax to be imposed by tax authorities in the U.S. or Sweden.

6.8In case of a dividend in the form of Shares in the Company where the shareholders are not offered the option to choose a dividend in the form of cash, SEB shall cause SDRs representing such Shares to be registered in the respective VPC Account of Holders entitled to receive such Shares. The same shall apply to the distribution of a dividend in the form of shares issued by a company other than the Company and such shares are represented by Swedish depository receipts or are directly registered in the CSD register with Euroclear. In the event SEB receives a dividend in the form of shares issued by a company other than the Company, such as shares issued by a subsidiary of the Company, and registration cannot be effected in the Holders’ VPC Accounts, SEB shall be entitled on behalf of the Holders after consultation with the Company to decide how such distribution shall be transferred to those Holders entitled to receive it if the Holders are not offered the option to receive the dividend in the form of cash. This may mean that the shares distributed are sold and that the proceeds of such sale, after deduction of selling costs and any fees and taxes, are paid to the Holders. 

6.9In connection with distribution to Holders, the Company, SEB, the Sub-Custodian or Euroclear or any of their respective agents will remit to the appropriate governmental authority or agency all amounts (if any) required to be withheld by the Company, SEB, the Sub-Custodian or Euroclear or any of their respective agents and owing such authority or agency. In the event the Company, SEB, the Sub-Custodian or Euroclear or any of their respective agents determines that any distribution in cash, shares, rights or any other property is subject to any tax or governmental charges which it is obligated to withhold, it may use that cash, or sell all or a portion of such property as is necessary and economically and practicably feasible to pay such taxes or governmental charges, and SEB shall distribute the net proceeds of any sale or the balance of any such property or cash after deduction of such taxes or governmental charges to the Holders entitled thereto. The Holder will remain liable for any deficiency.

6.10SEB shall use its best efforts to provide the Holders with such information as it may possess and as the Holders may reasonably request to enable such Holder or its agent to claim any benefit provided under the taxation treaty between U.S. and Sweden.

 

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Exhibit 4.5

7.Bonus issues, split-ups and combinations of shares

7.1SEB shall accept delivery of Shares as a result of bonus issues and effect split-ups or combinations of Shares as promptly as possible. Registrations in the Holders' respective VPC Accounts reflecting such bonus issue, split-up or combination shall be effected by Euroclear as soon as practically possible after the Record Dare without any further information to be given to the Holders by SEB.

7.2The person registered in the SDR Register on the Record Dare as Holder/holder of rights relating to bonus issues shall be considered to be authorized to receive any Shares as a result of bonus issues or participate in any split-ups or combinations of SDRs.

7.3Should the person receiving bonus shares or participating in split-ups or combinations of SDRs not be authorized to receive SDRs or to participate in such measures, the same principles shall apply as mentioned in Section 6.5 above.

7.4Any taxes levied will be handled in accordance with Sections 6.7 -6.9 above.

8.New Issues, Issues of debentures, other rights, etc. 

8.1SEB will provide the Holders with information in regard to new issues, issues debentures or other rights, in which the Holders have a right to subscribe for new shares and debentures, as well as other corporate action directed to the shareholders by the Company in accordance with Section 18.1 below.

8.2When it is not practically and economically feasible to distribute any such rights etc. as decided in Section 8.1 above, SEB shall have the right to sell such rights etc. on behalf of the Holders and to distribute the proceeds of such sale to the Holders after deduction of any taxes levied in accordance with Sections 6.7 - 6.9 above.

9.Optional dividends and other optional corporate action

9.1If, in the opinion of SEB, it is not practically possible for the Holders to have an option to choose between dividends in the form of cash or in any other form, SEB shall on behalf of the Holders be entitled to decide that such dividends shall be paid in cash.

9.2If the Company decides, other than in the event of distribution of profit, to distribute to the Holders shares or other rights issued by a company other than the Company, the provisions of Section 6.8 above shall be applied.

10.Fractional shares

10.1If the Holders for each SDR are entitled to receive fractional shares as a result of "stock dividends", bonus issues or any other corporate action by the Company, such fractional shares will be sold by SEB and the proceeds of such sale will be distributed to the Holders.

10.2SEB will not accept deposit of fractional shares or an uneven number of fractional rights.

11.Attending and voting at a general meeting of shareholders

11.1SEB shall, as soon as possible after receipt of information of any general meeting of shareholders of the Company, cause the Holders of record in the SDR Register on the Record Date, set in accordance with Section 5.1 above, to be furnished with information regarding such general meeting of shareholders. The information shall comprise: (a) the time and location of the general meeting of shareholders and the matters intended to be considered by the meeting, (b) reference to instructions available through the Company’s website as to the actions that must be taken by each Holder to be able to exercise its voting rights at the general meeting, and (c) reference to materials for the general meeting available through the Company’s website. The information as set out in (a) through (c) above will be prepared in Swedish as well as in English (with the former version being distributed to Holders with a registered address in Sweden and the latter version being distributed to Holders with a registered address outside Sweden). Other information and general meeting materials will be prepared in English. The Company shall, upon request from a Holder, send to such Holder the materials for the general meeting of shareholders provided through the Company’s website.

 

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Exhibit 4.5

11.2According to the current certificate of incorporation and by-laws of the Company notice of meetings of shareholders shall be given by the Company not later than 10 nor more than 60 days before any meeting. The Record Date shall be not less than 10 days nor more than 60 days before the date of any meeting.

12.Company reports and other information

12.1SEB shall cause reports and other information, received by SEB from the Company for distribution to the Holders, to be furnished, in accordance with Section 18.1 below, to all Holders or others being entitled to such information according to the SDR Register. As a general rule, the information shall be prepared in English unless the Company deems, in each individual case, a translation of a document into Swedish to be appropriate with regard to the contents or the purpose of the document. The English version shall prevail.

12.2The Company shall cause the Company ́s annual report prepared in English to be available through the Company's website. The Company shall, upon request from a Holder, send the Company's annual report to such Holder.

12.3Information from the Company is available through the Company’s website, www.autoliv.com.

13.Listing

13.1The SDRs are listed on Nasdaq Stockholm AB. Should the SDRs be delisted from Nasdaq Stockholm AB, the Company shall, inform SEB as well as the Holders as soon as practically possible after such a decision. Notice to Holders shall be given in accordance with Section 18.1 below.

14.Custody of shares

14.1SEB is entitled to keep a Holder`s respective Shares in custody together with other Holders' Shares that are covered by these General Terms and Conditions and, if applicable, to have the Shares represented by a joint share certificate or by joint registration in a book-entry system. The Shares are deposited with the Sub-Custodian. Such deposit will be made in the name of SEB on behalf of the Holders. SEB may give the Sub-Custodian a consent to deposit the Shares with a central securities depository such as Depositary Trust Company (DTC).

15.Fees and costs

15.1.All fees and costs in connection with the administration of the safe custody and the services rendered by Euroclear shall be paid by the Company, with those exceptions mentioned in Section 3.3 above and Section 22.3 below.

16.Change of legal requirements

16.1If the Company decides that it is feasible to list the Shares on Nasdaq AQ Stockholm AB instead of listing the SDRs and if it is also possible to register the Shares directly with Euroclear, SEB may and is entitled to register with Euroclear in accordance with the Swedish Central Securities Depositories and Financial Instruments Accounts Act (1998:1479) each Holder for the number of Shares that correspond to its holding of SDRs and simultaneously herewith cancel the corresponding SDRs. SEB shall inform the Holders of such registration and cancellation well in advance of the effective date and provide information of the effect of such direct registration of the Shares.

16.2Should the applicable rules and regulations in Sweden relating to the safe custody of foreign shares etc. be changed, so that the Shares can be withdrawn from the safe custody and be held directly by the Holders or be registered on a VPC account designated by the Holder, then SEB may give the Holders a notice relating to such a change in accordance with Section 18.1 below.

 

6

Exhibit 4.5

17.Change of custodian bank

17.1If the Company determines to appoint another Swedish bank as custodian, SEB shall assign all rights and obligations on behalf of SEB under these General Terms and Conditions to and deliver the Shares to that bank. The Company shall as soon as practically possible after a change of the custodian bank has been made inform and have the change approved by Euroclear and cause notice of such change to be mailed to the Holders in accordance with Section 18.1 below. A decision to change custodian bank in accordance with the foregoing may not be effected until six months after such date when the Holders have been informed thereof in accordance with Section 18.1 below.

18.Delivery of notices

18.1SEB shall arrange for notices or  documentation to be distributed to Holders in accordance with these General Terms and Conditions  to be furnished to the Holders and other holders of rights registered in the SDR Register as entitled to receive notification pursuant to the Swedish Central Securities Depositories and Financial Instruments Accounts Act (1998:1479). Such notices or documents shall be sent by mail to the address listed in the SDR Register. SEB and the Company may, in lieu of mailing notices, publish the corresponding information in at least one (1) national Swedish daily newspaper and through the Company’s website.

19.Amendments to these general terms and conditions

19.1SEB shall after consultations with the Company be entitled to amend these General Terms and Conditions insofar as such amendments are required by Swedish. U.S. or any applicable legislation, court decisions or decisions by public authorities or changes in the rules and regulations of Euroclear, or if, in the opinion of SEB, such action is otherwise appropriate or necessary for practical reasons and the Holders' rights are in no material respect adversely affected. 

20.Disclosure of information

20.1SEB shall and is authorized to disclose any information concerning the Holders and their holdings of SDRs to the Company and to the Sub-Custodian.

20.2SEB and the Company shall have the right to disclose information to registrars or governmental authorities, provided such obligation to provide information is required by Swedish or foreign law or governmental regulations. A Holder shall be obligated, upon request, to provide SEB with such information.

20.3SEB and the Company shall also have the right, in connection with reduction or refund of taxes together with other amounts owed by the tax authorities where such rights exist, to disclose information regarding a Holder and a Holder's holdings of SDRs and the Shares represented thereby to the extent necessary.

21.Limitation of liability

21.1With respect to the actions incumbent on SEB, the Sub-Custodian, the Company and Euroclear (in the case of Euroclear always subject to the provisions of the Swedish Central Securities Depositories and Financial Instruments Accounts Act (1998:1479), SEB, the Sub-Custodian, the Company and Euroclear shall not be deemed liable for loss due to Swedish or foreign legal decrees, Swedish or foreign action by public authorities, acts of war; strikes, blockades, boycotts, lockouts or other similar causes. The reservations with respect to strikes, blockades, boycotts and lockouts apply even if SEB, the Sub-Custodian, the Company or Euroclear itself undertakes, or is the object of, such actions.

21.2Neither SEB, the Sub-Custodian, the Company nor Euroclear shall be obligated to provide compensation for loss arising in other situations if SEB, the Sub-Custodian, the Company or Euroclear has exercised normal prudence. Neither shall any of them be liable for indirect damages.

21.3If SEB, the Sub-Custodian, the Company or Euroclear shall be hindered from making payment or taking any other action by circumstances such as those described in Section 21.1 above, such action may be deferred until the hindrance has ceased to exist.

 

7

Exhibit 4.5

21.4Neither SEB, the Sub-Custodian, the Company nor Euroclear is responsible for losses or damages incurred by the Holders by reason of that any dividend, right, delivery of notice or other that the shareholders of the Company are entitled to, of technical, legal or other reasons beyond Euroclear’s control cannot be distributed or transferred to the Holders registered in the SDR Register.

22.Termination

22.1If (i) a decision is taken to delist the SDRs from Nasdaq  Stockholm AB, (ii) a decision is taken by the Company pursuant to the certificate of incorporation or the by-laws to no longer maintain the SDR program under these General Terms and Conditions or (iii) Euroclear has decided to terminate the Service Agreement concerning registration of Swedish Depository Receipts, SEB is entitled to terminate deposits made under these General Terms and Conditions by giving notice regarding such termination to the Holders in accordance with Section 18.1 above (the Termination Notice).

22.2For a period of twelve months from the date of the Termination Notice, these General Terms and Conditions will continue to be valid in all respects; provided, however, that the SDRs, in accordance with an undertaking by the Company, will be listed on Nasdaq Stockholm AB for a period of six months from the date of the Termination Notice, if they have not been previously delisted on the initiative of Nasdaq Stockholm AB.

22.3For a period of two years after the expiration of twelve months from the date of the Termination Notice, SEB shall continue to hold the Shares in safe custody but shall discontinue registration of transfers (by closing the SDR Register), suspend distribution of dividends to the Holders, refuse to accept deposits of Shares or any other action required under these General Terms and Conditions. SEB shall be entitled to compensation from a Holder for all fees and costs incurred by SEB in connection with the SDRs from such date forward.

22.4Three years after the Termination Notice has been given, SEB will be entitled to sell the Shares and deduct any fees and costs incurred in connection with any such sale of the Shares. The proceeds of any such sale together with any dividends not paid to the Holders, after deduction of fees and costs in accordance with the foregoing, will be held by SEB without liability for interest thereon for the Holders 'account. 

23.Governing law and Disputes

23.1These General Terms and Conditions and any legal matters relating to the SDRs issued by SEB in accordance therewith shall be governed by Swedish law.

23.2Any legal proceedings relating to the SDRs shall be instituted in the District Court of Stockholm (Stockholms tingsrätt), Sweden, or in such other jurisdiction which competence SEB has accepted in writing. 

____________________________

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