Document:

EX-10.6

 Exhibit 10.6 
  

 
  

JOINT VENTURE 

AGREEMENT 
  

 
  

7 March, 2016 

 TABLE OF CONTENTS 

 

							
	 ARTICLE
	  	PAGE	 
			
	 1.
	  	 THE JOINT VENTURE BUSINESS
	  	 	3	 
			
	 1.1
	  	The Companies	  	 	3	 
	 1.2
	  	The Joint Venture Business	  	 	3	 
	 1.3
	  	Steering Committee	  	 	4	 
	 1.4
	  	Certificate of Formation	  	 	5	 
	 1.5
	  	Books, Records and Tax and Accounting Matters	  	 	5	 
	 1.6
	  	On-Going Development Projects	  	 	6	 
			
	 2.
	  	 GOVERNANCE
	  	 	7	 
			
	 2.1
	  	Rights and Obligations of Parties	  	 	7	 
	 2.2
	  	Meetings	  	 	7	 
	 2.3
	  	Capital Contributions	  	 	10	 
	 2.4
	  	Loans	  	 	12	 
	 2.5
	  	Group Cash Management	  	 	13	 
	 2.6
	  	Deadlock	  	 	13	 
			
	 3.
	  	 MANAGEMENT
	  	 	13	 
			
	 3.1
	  	Management by the Steering Committee	  	 	13	 
	 3.2
	  	Officers	  	 	18	 
			
	 4.
	  	 REPRESENTATIONS AND WARRANTIES/INDEMNIFICATION
	  	 	20	 
			
	 4.1
	  	Representations and Warranties of the Autoliv Parties	  	 	20	 
	 4.2
	  	Representations and Warranties of Nissin	  	 	21	 
	 4.3
	  	Indemnification	  	 	22	 
			
	 5.
	  	 DISTRIBUTIONS
	  	 	23	 
			
	 5.1
	  	Distributions	  	 	23	 
			
	 6.
	  	 TRANSFERS AND REDEMPTION RIGHTS
	  	 	24	 
			
	 6.1
	  	Restriction on Transfer of Interests	  	 	24	 
	 6.2
	  	No Withdrawal	  	 	24	 
	 6.3
	  	Buy-Sell Option	  	 	25	 
	 6.4
	  	Appraised Exit	  	 	26	 
	 6.5
	  	Appointment of Appraiser	  	 	29	 
			
	 7.
	  	 NONCOMPETITION AND CONFIDENTIALITY
	  	 	29	 
			
	 7.1
	  	Noncompete	  	 	29	 
	 7.2
	  	Confidentiality	  	 	29	 

							
	 7.3
	  	Non-Solicit	  	 	30	 
	 7.4
	  	Severability	  	 	30	 
	 7.5
	  	Injunctive Relief	  	 	31	 
			
	 8.
	  	 TERM AND TERMINATION OF THE AGREEMENT
	  	 	31	 
			
	 8.1
	  	Term and Termination	  	 	31	 
			
	 9.
	  	 DEFINITIONS AND MISCELLANEOUS
	  	 	31	 
			
	 9.1
	  	Definitions	  	 	31	 
	 9.2
	  	Matters of Construction	  	 	38	 
	 9.3
	  	Miscellaneous	  	 	39	 

  

			
	 EXHIBIT A
	  	 [Operating Management Structure]

		
	 EXHIBIT B
	  	 [reserved]

		
	 EXHIBIT C
	  	 [Current Development Projects]

		
	 EXHIBIT D
	  	 [Addresses for Notice]

		
	 APPENDIX
	  	 [Certificate]

  

 JOINT VENTURE AGREEMENT 

THIS JOINT VENTURE AGREEMENT (the “Agreement”) is made and entered into this 7th day of March, 2016, by and
among Autoliv ASP, Inc., an Indiana corporation (“Autoliv ASP”), Autoliv AB, a Swedish corporation (“Autoliv AB”), Autoliv Holding, Inc., a Delaware corporation (“Autoliv
Holding” and together with Autoliv ASP and Autoliv AB, the “Autoliv Parties”) and Nissin Kogyo Co., Ltd., a Japanese company (“Nissin”), Nissin Kogyo Holdings USA, Inc., an Ohio corporation
(“Nissin Holding”), and Zhongshan Nissin Industry Co., Ltd. (“NBZ”, and together with Nissin and Nissin Holding, the “Nissin Parties”). Autoliv ASP, Autoliv AB, Autoliv
Holding, Nissin, Nissin Holding, and NBZ are each referred to herein as a “Party” and collectively as the “Parties”. 

BACKGROUND 

WHEREAS, the Autoliv Parties are engaged in the development, manufacture and sale of automotive safety systems including
electronic products designed to detect potentially dangerous situations and activate various countermeasures to reduce the severity of a crash or prevent it altogether; 

WHEREAS, Nissin is engaged in, inter alia, the business of the development, manufacture and sale of brake systems
including, among other things, brake products for automobiles and, through experience accumulated in such business, has acquired and possesses certain intellectual property rights, manufacturing information and
know-how, quality standards, and marketing methods relating to such brake systems; 

WHEREAS, the Nissin Parties and the Autoliv Parties believe it is in their respective best interests to jointly
own joint venture companies that will engage in the business of the production of, engineering for, marketing of, receiving orders for, and selling (and providing after-sale service regarding) automotive brake control and brake apply systems
throughout the world (the “JV Business”); 
 WHEREAS,
to form joint venture companies engaging in the JV Business in Japan, China, the U.S. and Thailand, Nissin and the Autoliv Parties have, as of the date September 9, 2015, entered into a Share Purchase Agreement (the
“Share Purchase Agreement”); 
 WHEREAS, to form a joint
venture company engaging in the JV Business in the U.S., Nissin caused Nissin Holding to incorporate ANBA jointly with the Autoliv Parties, and Nissin and the Autoliv Parties caused ANBA (i) to increase its capital and (ii) also to
purchase, using the proceeds from the capital increase, the JV Business of Nissin Brake Ohio, Inc.; 

  
 1 

 WHEREAS, to form a joint venture company engaging in the business in
Thailand, Nissin has incorporated ANRA and to transfer the JV Business of Nissin R&D Asia Co., Ltd. to ANRA by way of business transfer, and Nissin has sold to the Autoliv Parties, and the Autoliv Parties have purchased from Nissin, 51% of all
of the issued and outstanding shares of ANRA; 
 WHEREAS, to form a joint venture company engaging in the JV Business
in China, Nissin has caused NBZ to incorporate ANBZ, by way of a contribution in kind of the JV Business of NBZ to ANBZ, and Nissin has caused ANBZ to sell to the Autoliv Parties, and the Autoliv Parties have purchased, 51% of all of the issued and
outstanding Equity Interests of ANBZ, with 49% of the issued and outstanding Equity Interests of ANBZ retained by NBZ; 

WHEREAS, Autoliv ASP intends to transfer certain JV Business (as defined below) conducted by its Affiliate to ANBA by way
of business transfer, subject to the Closing; 
 WHEREAS, pursuant to the terms of the Share Purchase Agreement and the
transactions set forth therein, the Nissin Parties and the Autoliv Parties have formed the following companies, each of which is owned as follows: 
  

	 	(i)	Autoliv Nissin Brake Systems Japan Company Limited (

), a Japanese company (“ANBJ”), 51% of which is held by Autoliv Holding and 49% of which is held by Nissin; 

  

	 	(ii)	Autoliv Nissin Brake Systems America LLC, an Ohio Limited Liability Company (“ANBA”), 51% of which is held by Autoliv ASP and 49% of which is held by Nissin
Holding; 

  

	 	(iii)	Autoliv Nissin Brake Systems (Zhongshan) Co., Ltd., (

), a Chinese company (“ANBZ”), 51% of which is held by Autoliv AB and 49% of which is held by NBZ; 

 

	 	(iv)	Autoliv Nissin Brake Research Asia Co. Ltd., (

), a Thai company (“ANRA”), 51% of which is held by Autoliv AB and its designated party (“Thai Designated
Party”), and 49% of which is held by Nissin (each of ANBJ, ANBA, ANBZ, and ANRA is a “Company” and collectively they are the
“Companies”); 

 WHEREAS, the Autoliv Parties and the
Nissin Parties intend that the Companies will collaborate and be collectively managed together as a corporate group to engage in the JV Business, and that the collective management of the Companies will be delegated to the Steering Committee that
will be formed by the Parties, which shall direct the activities of the Companies; and 

  
 2 

 WHEREAS, the Parties have reached certain agreements regarding the ownership
composition, capitalization, governance, and operations of the JV Business, the Companies and other matters described herein. 
 THE
AGREEMENT 
 NOW, THEREFORE, in consideration of the representations, warranties, covenants, and agreements contained
herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows: 

1. THE JOINT VENTURE BUSINESS 
  

	 	1.1	The Companies. 

 The Parties have agreed to collaborate and to collectively manage
the Companies as a corporate group to engage in the JV Business. Each Company will focus on the activities as set forth below: 
 (a) ANBJ
shall primarily conduct manufacturing, development and sales activities in Japan, and shall provide global support to each of the other Companies, as well as engage in development activities in Europe. 

(b) ANBA shall primarily conduct manufacturing, development and sales activities in the United States. 

(c) ANBZ shall primarily conduct manufacturing, development and sales activities in China. 

(d) ANRA shall primarily conduct development and sales support activities in Thailand. 

 

	 	1.2	The Joint Venture Business. 

 The joint venture business of the JV (the
“JV Business”) means the businesses conducted by Nissin and its Affiliates up until Closing relating to the development, design, manufacture, and sale of equipment relating to four-wheel brake
control and brake apply systems (excluding business relating to the manufacturing of brake control and brake apply systems by Nissin Brake India Private Ltd, Nissin Brake De Mexico, SA. DE. CV, Nissin Brake Do Brazil, LTDA, Nissin Brake (Thailand)
Co., Ltd. or PT. Chemco Harapan Nusantara). 

  
 3 

	 	1.3	Steering Committee. 

 1.3.1 Role of the Steering Committee. The Parties
shall form and maintain a committee (the “Steering Committee”) which shall consist of five (5) members, three (3) of which shall be appointed by Autoliv ASP (in its sole discretion) and two (2) of
which shall be appointed by Nissin (in its sole discretion). Except with respect to matters where the approval of the Nissin Parties or the Autoliv Parties is expressly required pursuant to this Agreement, or by mandatory provisions of applicable
Law, the Steering Committee shall have, to the full extent permitted by applicable Law, sole, exclusive, full and complete authority, power and discretion to manage and control the business, affairs and properties of all of the Companies, to make
all decisions regarding those matters and to perform any and all other acts or activities customary or incidental to the management of each of the Companies’ businesses, including, without limitation, the right and power to appoint individuals
to serve as Officers and to delegate authority to such Officers. 
 1.3.2 Steering Committee to be appointed as Directors of
Companies. 
 (a) Autoliv Holding and Nissin shall apply their voting rights and other rights as shareholders of ANBJ to appoint the
members of the Steering Committee to serve as the directors of ANBJ. 
 (b) Autoliv ASP and Nissin Holding shall apply their voting rights
and other rights as members of ANBA to appoint the members of the Steering Committee to serve as the managers of ANBA. 
 (c) Autoliv AB and
NBZ shall apply their voting rights and other rights as shareholders of ANBZ to appoint the members of the Steering Committee to serve as the members of the board of directors of ANBZ. 

(d) Autoliv AB and Nissin shall apply their voting rights and other rights as shareholders of ANRA to appoint the members of the Steering
Committee to serve as the members of the board of directors of ANRA. 
 1.3.3 Compliance with this Agreement. Each Party shall apply
its voting rights and other rights as an equity holder in each of the Companies and shall cause its designated appointees to boards and other corporate governance bodies of the Companies to (i) take all actions necessary to implement the
instructions of the Steering Committee, (ii) to ensure compliance with this Agreement, (iii) ensure that the Formation Documents do not at any time conflict with the provisions of this Agreement to the maximum extent permitted by Law, and
(iv) ensure that any new company formed among the Autoliv Parties and the Nissin Parties following the signing of this Agreement is bound by the terms and conditions set forth herein. 

  
 4 

 1.3.4 Compliance with this Agreement by the Thai Designated Party. The Autoliv Parties
shall cause the Thai Designated Party to (i) take all actions necessary to implement the instructions of the Steering Committee, (ii) ensure compliance with this Agreement, and (iii) ensure that the Formation Documents do not at any
time conflict with the provisions of this Agreement to the maximum extent permitted by Law. 
  

	 	1.4	Certificate of Formation. 

 1.4.1 Certificate and Formation Documents. The
Certificate and Formation Documents of each Company are attached as the Appendices to this Agreement. 
 1.4.2 Amendment of Certificate
and Formation Documents. The Certificate of each Company may be amended only with the consent of all of the Steering Committee members. The Formation Documents of each Company may be amended only with the consent of all of the Steering Committee
members. 
  

	 	1.5	Books, Records and Tax and Accounting Matters. 

 1.5.1 Availability. At all
times during the existence of each Company, the Steering Committee shall cause each of the Companies to keep or cause to be kept complete and accurate books and records appropriate and adequate for the Company’s business. Any Party or such
Party’s duly authorized representative, subject to reasonable standards established by the respective Parties governing what information and documents are to be furnished at what time and location and at whose expense, has the right at any
time, for any purpose reasonably related to such Party’s Equity Interest, to inspect and copy from such books and documents during normal business hours and to discuss the JV Business and affairs of the Company with the relevant employees of
the Company. 
 1.5.2 Tax and Accounting Decisions. All decisions as to tax and accounting matters, except to the extent this
Agreement specifically provides to the contrary, shall be made by the Steering Committee. 
 1.5.3 Reports. 

(a) Each month, the Parties shall cause monthly financial information to be prepared and reported in accordance with the policies and
procedures to be established by the Steering Committee. 
 (b) Within 10 Business Days after the end of each fiscal quarter, the Parties
shall cause each Company to deliver to all Parties and the Steering Committee an unaudited Profit and Loss statement for, and an unaudited balance sheet as of the end of, such quarter or other period and the related notes, if any, prepared in
accordance with (i) U.S. generally accepted accounting principles, and (ii) generally accepted accounting principles of the country where the applicable Company is incorporated, in each case consistently applied and, as soon as
practicable, Autoliv corporate financial standards. 

  
 5 

 (c) Within thirty (30) days after the end of each fiscal year (provided however that with
respect to ANRA, in any case not less than three (3) days prior to each Annual Meeting of ANRA), the Parties shall cause each Company to deliver to all Parties and the Steering Committee an audited Profit and Loss statement for, and an audited
balance sheet as of the end of, such year or other period and the related notes, if any, prepared in accordance with (i) U.S. generally accepted accounting principles, and (ii) generally accepted accounting principles of the country where
the applicable Company is incorporated, in each case consistently applied, together with any report thereon prepared and delivered by the applicable Accountants. 

(d) The Parties shall cause the Companies to promptly provide such additional financial information and reports as reasonably requested by
Nissin. For the avoidance of doubt, such additional financial information shall include all reports and information necessary for Nissin to reconcile the reports provided under this Section with its financial reporting requirements as a publicly
listed company. 
 1.5.4 Tax Returns. The Parties shall cause the applicable Accountants to prepare all tax returns that each Company
is required to file, and file with the appropriate tax authorities all returns required to be filed by such Company in a manner required for such Company to be in compliance with any Law governing the timely filing of such returns. 

1.5.5 Taxable and Fiscal Year. Each Company’s taxable and fiscal years shall be calendar years or as otherwise agreed between the
Parties. 
 1.5.6 Depositories. The Parties shall cause the Companies to maintain or cause to be maintained one or more accounts for
each respective Company in such depositories as the Steering Committee shall select. All receipts of each Company from whatever source received shall be deposited to such Company’s respective accounts, all expenses of each Company shall be paid
from such Company’s respective accounts, and no funds not belonging to a Company shall be deposited to such accounts. All amounts so deposited shall be received, held and disbursed by a Person or Persons designated by the Steering Committee
only for the purposes authorized by this Agreement. 
  

	 	1.6	On-Going Development Projects. 

 1.6.1
Continuity of On-Going Projects. The Parties intend to arrange for the Companies to continue the ongoing development of all Current Development Projects, in line with the ongoing development activities that
are currently in progress with respect to each Current Development Project. 

  
 6 

 2. GOVERNANCE 
  

	 	2.1	Rights and Obligations of Parties. 

 The Formation Documents of each of the
Companies shall provide that each Party’s liability shall be limited as set forth in this Agreement and in accordance with applicable Laws in each country where each Company is incorporated. Notwithstanding the provisions of this Agreement, any
failure by the Parties, the Steering Committee or the Company to follow the formalities relating to the conduct of the Companies’ affairs set forth herein shall not be grounds for imposing personal liability on a Party to a third party. 

 

	 	2.2	Meetings. 

 2.2.1 Meetings. Representatives of the Nissin Parties on the
one hand and of the Autoliv Parties on the other shall meet annually within 30 days after each fiscal year end (such a meeting, an “Annual Meeting”). In addition, meetings of shareholders/members
of each Company will be called by the Steering Committee when necessary or when requested in writing to do so by a Party (such a meeting, an “Extraordinary Meeting” and an Annual Meeting and an Extraordinary
Meeting, respectively a “Meeting” and collectively “Meetings”), and such Extraordinary Meetings shall be attended by each of the representatives
of the Nissin Parties on the one hand and of the Autoliv Parties on the other hand. All Meetings shall be held at the principal place of business of one of the Companies, or at such other location as determined by the Steering Committee, or may be
held by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other (provided however that each ANRA Meeting must be held in person). All Meetings shall be
conducted in English. All Meetings shall be conducted in compliance with all applicable Law for each of the Companies (satisfying notice, quorum and any other corporate law requirements). 

2.2.2 Quorum. At least (i) one representative of the Nissin Parties and (ii) one representative of the Autoliv Parties, in
person or by proxy, shall constitute a quorum at any Meeting, provided however, that any Meeting that is duly scheduled (in compliance with the notice requirements under Section 2.2.7) but fails to reach quorum, may be immediately rescheduled
(in compliance with the notice requirements under Section 2.2.7) and in such rescheduled meeting, those representatives of the Nissin Parties and the Autoliv Parties, who attended the meeting that failed to reach a quorum shall be sufficient to
constitute a quorum. 
 2.2.3 Manner of Acting. Except as expressly otherwise provided in this Agreement, an affirmative vote of a
Majority in Interest attending a Meeting at which a quorum is present is necessary to decide any matter to be decided at the Meeting. 

  
 7 

 2.2.4 Unanimous Actions. The following actions may not be taken by, or on behalf of, any
Company unless unanimously approved by all of the Parties represented at the Meeting: 
 (a) any merger, consolidation, reconstruction,
amalgamation or reorganization of a Company or any of its Subsidiaries; 
 (b) the adoption of any amendment to this Agreement or any
Certificate, or any of the Formation Documents of any Company or of any Subsidiaries of any Company; 
 (c) the sale or disposition of more
than 20% of the assets of any of the Companies or their Subsidiaries; 
 (d) a capital expenditure or other investment with respect to any
project exceeding US$10,000,000; 
 (e) the issuance of any new Equity Interests or other securities or ownership interests of any Company
(or other increase in capital of the Company) or issuance of any new, or sale or other transfer of any interest in, securities of any Subsidiary of any Company (or other increase in capital of a Subsidiary of any Company)(whether as part of any
private placement, public offering or otherwise); 
 (f) the declaration of any distributions of any Company (other than cash distributions
in accordance with this Agreement and the Certificate), or the redemption of any Equity Interests or other securities or ownership interest in any Company (or other decrease in capital of any Company); 

(g) any Company or any of their Subsidiaries entering into any new agreement with a Related Party, or adopting or granting any material
amendments (other than amendments of the nature set out in the last paragraph of this Section 2.2.4), consents, exceptions or waivers or granting forbearance with respect to, or terminating (other than terminations as set out in the last
paragraph of this Section 2.2.4) any, new or existing agreement between (i) any Company or any of their Subsidiaries and (ii) a Related Party; 

(h) any action to (i) liquidate or wind up any Company or any of their Subsidiaries, (ii) institute voluntary winding-up proceedings on behalf of any Company or any of their Subsidiaries, or (iii) have a judicial manager, receiver or administrator appointed for any Company or any of their Subsidiaries or a substantial
portion of the assets of any Company or any of their Subsidiaries; and 
 (i) any act in contravention of this Agreement or the Certificate
for any Company by such Company or any of its Subsidiaries. 

  
 8 

 Subject to applicable Law, the Nissin Parties and the Autoliv Parties may unanimously agree to delegate authority
to take any actions specified in this Section 2.2.4 to the Steering Committee. In such event, the Steering Committee shall exercise the delegated authority only upon the unanimous vote of the Steering Committee. 

Notwithstanding Section 2.2.4(g), at the election of the Steering Committee, an agreement between (i) any Company or any of their Subsidiaries and
(ii) a Related Party will be terminated if such agreement is not reflective of industry market terms, and despite reasonable notice having been given, the Parties have been unable to agree to amendments to such agreement necessary to ensure
that its terms are reflective of such industry market terms. 
 2.2.5 Proxies. At all Annual Meetings, the relevant Nissin Party and
the relevant Autoliv Party may vote in person or by proxy. The relevant Nissin Party and the relevant Autoliv Party may appoint a proxy by executing a written notice which authorizes another Person or Persons to vote or otherwise act on its behalf.
Such notice must be filed with the Steering Committee before or at the time of the meeting. No appointment of proxy is valid after eleven months from the date of its execution, unless otherwise provided in the notice of appointment. 

2.2.6 Actions Without a Meeting. Action required or permitted to be taken at a Meeting may be taken without a meeting if the relevant
Nissin Party and the relevant Autoliv Party unanimously agree to take the action, provided however that actions of ANRA may not be taken without a meeting (unless permitted by applicable Law). The action must be evidenced by one or more written
consents describing the action taken, signed by both the relevant Nissin Party and the relevant Autoliv Party and delivered to the Steering Committee for inclusion in its records. Action taken under this Section 2.2.6 is effective when the
relevant Nissin Party and the relevant Autoliv Party have signed the consent, unless the consent specifies a different effective date. The record date for determining an action without a Meeting is the date the first of the relevant Nissin Party and
the relevant Autoliv Party signs a written consent. 
 2.2.7 Notice. The Steering Committee must provide the Nissin Parties and the
Autoliv Parties with at least fourteen (14) days’ notice of a Meeting in accordance with Section 9.3.2 (or, at least seven (7) days’ notice for a Meeting that is being rescheduled immediately after failing to achieve a
quorum due to the absence of the relevant Nissin Party or the relevant Autoliv Party, provided that, in respect of ANRA, at least fourteen (14) days’ notice of such rescheduled Meeting shall be provided to the Nissin Parties and the Autoliv
Parties if such rescheduled Meeting shall be convened to consider and approve a special resolution as required by the applicable Law to which ANRA is subject), and, in respect of ANRA, notice of any Meeting (including any rescheduled Meeting) shall
be sent by registered mail and published in a local newspaper in Thailand, unless a Meeting (excluding any Meeting of ANRA) is reasonably required to be urgently held due to reasons that would materially affect the operation of the applicable
Company, in such case 

  
 9 

 
no less than two (2) Business Days’ notice (or, at least two (2) Business Days’ notice for such an urgent Meeting that is being rescheduled immediately after failing to
achieve a quorum due to the absence of a representative of the Nissin Parties or the Autoliv Parties) of such a Meeting must be provided to the Nissin Parties and the Autoliv Parties. The notice must contain the date, time and place of such Meeting.
Unless otherwise required by applicable Laws, the notice need not state the purpose or purposes of the Meeting. Information as to how the Nissin Parties or the Autoliv Parties can participate by telephone shall be provided by the Steering Committee
promptly upon request. 
 2.2.8 Waiver of Notice. The Nissin Parties or the Autoliv Parties may waive any notice required by
applicable Laws, the Formation Documents for any Company or this Agreement before or after the date and time of the Meeting or event for which notice is required or before or after the date and time stated in the notice, provided however that a
waiver of any Meeting of ANRA may not be made (unless permitted by applicable Law to which ANRA is subject). The waiver must be in writing, be signed by the Nissin Parties or the Autoliv Parties, as applicable, entitled to the notice and be
delivered to the Steering Committee for inclusion in its records. A Party’s attendance at a Meeting waives objection to lack of notice or defective notice of the meeting, unless the Party at the beginning of the Meeting objects to holding the
Meeting or transacting business at the Meeting. 
 2.2.9 Special Provision for ANBZ. The foregoing provisions in this Section 2.2
shall not apply in respect of ANBZ so long as ANBZ falls under the corporate category of “Chinese-Foreign Equity Joint Venture” under the Laws of China. In such case, the Nissin Parties and the Autoliv Parties shall delegate authority to
take any action specified in Section 2.2.4 to the Steering Committee, and the Steering Committee shall exercise the delegated authority only upon the unanimous vote of the Steering Committee. 

 

	 	2.3	Capital Contributions. 

 2.3.1 Additional Contributions. 

(a) To the extent provided for in the Business Plan and subject to Section 2.2.4(e) and Section 3.1.3(b)(ii), each Company, at the
direction of the Steering Committee, may require the applicable Parties holding equity of such Company to make additional Capital Contributions, on a pro rata basis based on Equity Interests, if the Steering Committee determines that the Company
needs additional capital and that such capital should be in the form of contributed equity. Such Company, at the direction of the Steering Committee, shall specify in a written notice to the Parties the amounts of such additional Capital
Contributions and when such additional Capital Contributions are due, in each case at least fifteen (15) days prior to the due date for such Capital Contributions (provided however that with respect to ANRA, written notice to the Parties
notifying the amount of such additional Capital Contributions shall be given at least twenty-one (21) days by registered mail prior to the date for such Capital Contributions in the event that the
relevant Capital Contribution is in respect of outstanding capital to be paid on partly-paid shares. 

  
 10 

 (b) If a Party fails to make an additional Capital Contribution, the call for which was approved
by the Steering Committee, within twenty (20) Business Days after receipt of a notice of default from the applicable Company associated with such failure, then the amount of the additional Capital Contribution which the defaulting Party was
required to make, shall, at the election of the non-defaulting Party that is also an equity holder in the applicable Company (in its sole discretion) either: 

(i) be a debt from such defaulting Party to the applicable Company; and for so long as such debt is owed, the defaulting
Party’s Steering Committee appointees shall have no right to vote with respect to management of such Company, including matters requiring unanimous approval of the Steering Committee, and the
non-defaulting Party’s Steering Committee appointees may take all actions and make all decisions on behalf of the Steering Committee for such Company. Such debt shall bear interest compounded monthly
(provided however, that with respect to ANRA, any interest shall be charged and compounded to the extent permitted under applicable Law) at an annual rate equal to ten percent (10%) (the “Default Rate”),
beginning on the first day following the twenty (20) Business Day period after the date on which such additional Capital Contribution was due. Such interest paid by the defaulting Party shall not increase the value of its Equity
Interest. Until such debt has been paid in full with all interest due thereon, all funds accruing to the Equity Interest of such defaulting Party shall (upon their date of distribution) be credited to the defaulting Party by applying such funds
against said indebtedness (i.e., by paying off such indebtedness). In addition, a non-defaulting Party may lend to the Company the amount owed to the Company by the defaulting Party and shall receive interest
from the Company on the balance of such loan, compounded monthly at the Default Rate, beginning on the date of such loan (provided however that with respect to ANRA, only interest which is outstanding for not less than one (1) year shall be
compounded); or 
 (ii) be contributed as capital by the non-defaulting Party and
treated as an additional Capital Contribution hereunder. The Equity Interests of the Parties shall be adjusted based on the Appraised Value to reflect any additional Capital Contribution made pursuant to this Section 2.3.1(b)(ii) at the time it
is made. In order to determine the Appraised Value for such purpose, Autoliv ASP (on behalf of the Autoliv Parties) and Nissin (on behalf of the Nissin Parties) shall mutually agree on the identity of the Appraiser; provided, however, that if
Autoliv ASP and Nissin are unable to agree on the Appraiser within fifteen (15) days of the date of receipt of a notice from the Party who had not failed to make the applicable Capital Contribution to the Autoliv Parties (if the defaulting
Party is a Party of the Autoliv Parties) or to the Nissin Parties (if the defaulting Party is a Party of the Nissin Parties), then each Party shall within fifteen (15) days thereafter name a 

  
 11 

 
reasonably experienced investment banking firm or valuation expert with experience in valuing businesses participating in the auto parts industry and such firms/experts shall mutually agree upon
the Appraiser. If Autoliv ASP or Nissin fails to designate such a firm/expert within such fifteen (15) day period, then the firm/expert designated by the other shall be the Appraiser and solely responsible for the determination of the Appraised
Value. 
 2.3.2 Other Matters. 

(a) Except as otherwise provided in this Agreement, no Party may demand or receive a return of Capital Contributions. No Party has the right
to receive property other than cash except as specifically provided in this Agreement. No Party is entitled to interest on any Capital Contribution. 

(b) None of the members of the Steering Committee shall have personal liability for the repayment of any Capital Contribution of any Party.

  

	 	2.4	Loans. 

 2.4.1 Loans to the Company. The Parties may lend money to the
Companies as approved by the Steering Committee. If a Party lends money to a Company pursuant to this Section 2.4.1, the amount of any such loan is not an increase in the Party’s Capital Contribution or Equity Interest, nor does it entitle
the Party to any increase in the share of distributions of such Company, nor subject the Party to any greater proportion of the Losses that such Company may sustain. The amount of any such loan shall be a debt due from such Company to the Party, at
such rates and on such terms as determined reasonably by the Steering Committee, but in no event less than the rate permissible under applicable Laws and regulations in the country where such Company is incorporated and located. 

2.4.2 Other Loans. If the Steering Committee determines that funds are reasonably necessary for conducting the business of any Company,
the Steering Committee is authorized (but not obligated) to cause such Company to borrow the needed funds on commercially reasonable terms existing at the time of the borrowing, and all or any portion of such Company’s assets may be pledged or
conveyed as security for the indebtedness. If, however, such Company is unable to obtain reasonably acceptable financing on such basis, then, upon unanimous approval of the members of the Steering Committee, financing may be obtained by borrowing
from one or more third parties, with the Parties or their Affiliates providing pro rata guaranties. The Parties acknowledge and agree that any guaranty by any Party must be pursuant to a form of guaranty reasonably approved and executed by such
Party (or its Affiliate). Ž 

  
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	 	2.5	Group Cash Management. 

 2.5.1 General Principle of Group Cash Management.
As a general principle, any funding necessary for conducting the JV Business of the Companies shall be funded independently by the Companies or funded out of any cash surplus in any of the other Companies, taking into account each Company’s
capital and working capital requirements, by way of an intra-group loan (“Group Cash Management”), before being funded by additional Capital Contributions pursuant to Section 2.3.1 or by Loans pursuant to
Section 2.4. 
 2.5.2 Method of Group Cash Management. The method and other terms and conditions of such intra-group loans shall
be separately determined by the Steering Committee. 
  

	 	2.6	Deadlock. 

 If (i) the Parties are unable to agree on a matter requiring
unanimous approval of the Parties in Section 2.2.4 or otherwise in this Agreement, or (ii) the Steering Committee is unable to agree on a matter requiring unanimous approval of the members of the Steering Committee in Section 3.1.3(b)
or otherwise in this Agreement, then the Senior Representatives shall endeavor in good faith to resolve such matter by negotiation. If such Senior Representatives are unable to resolve such matter within sixty (60) days after such matter is
referred to them (a “Deadlock”), then each of Nissin (on behalf of the Nissin Parties) and Autoliv ASP (on behalf of the Autoliv Parties) shall submit such matter for further negotiation to
an individual that has not previously been involved in the negotiation of the Deadlock and occupies a position of authority within the organizational structure of the ultimate parent of such Party substantially equal or senior to such Party’s
Senior Representatives (the individuals to whom such matter is submitted shall be referred to as the “Nissin Kogyo Designee” and the “Autoliv
Designee”, respectively). If the Nissin Kogyo Designee and Autoliv Designee are unable to resolve such Deadlock (an “Irreconcilable Deadlock”) within sixty
(60) days (the “Irreconcilable Deadlock Period”), then the Autoliv Parties may proceed with the “Buy-Sell Option” pursuant to
Section 6.3. 
 3. MANAGEMENT 
  

	 	3.1	Management by the Steering Committee. 

 3.1.1 Management and Authority. The
business and affairs of all of the Companies shall be managed by the Steering Committee and operated by the operating management structure described in Exhibit A. Except with respect to matters where the approval of the Parties is expressly
required pursuant to this Agreement, or by mandatory provisions of applicable Law, the Steering Committee shall have, to the full extent permitted by applicable Law, sole, exclusive, full and complete authority, power and discretion to manage and
control the business, affairs and properties of each Company to 

  
 13 

 
make all decisions regarding those matters and to perform any and all other acts or activities customary or incidental to the management of all of the Companies’ business, including, without
limitation, the right and power to (i) periodically consider and review any defined benefit pension plan in place at such time with respect of the employees of the Companies including a review as regards performance of the relevant plan assets
and any funding requirements and (ii) appoint individuals to serve as officers of any Company and to delegate authority to such officers, except for officers who are appointed by either Nissin or Autoliv ASP in accordance with Exhibit A.
(The “Key Operating Officers” or respectively “Key Operating Officer”) 

3.1.2 Tenure and Qualifications. Autoliv ASP and Nissin shall respectively have the right to remove any member of the Steering Committee
and any of the Key Operating Officers it has appointed and to fill any vacancy among such appointees (whether such vacancy occurs as a result of death, disability, removal or resignation). Each Steering Committee member and Key Operating Officer
shall hold office until he or she resigns, dies or becomes permanently disabled, or until he or she is removed by either Autoliv ASP or Nissin, whichever appointed him or her, and in which case, Autoliv ASP or Nissin, whichever appointed that
Steering Committee member or the Key Operating Officer, shall appoint a replacement Steering Committee member or Key Operating Officer within thirty (30) days. To appoint any new Steering Committee member or any Key Operating Officer, either
Autoliv ASP or Nissin shall provide written notice of such appointment to the other, and such appointment will be effective upon receipt of such notice. None of the members of the Steering Committee may be an individual that is an employee or
officer of any of the Companies. Each of the members of the Steering Committee shall also serve as directors on the boards of each of the Companies. 

3.1.3 Quorum and Voting of Steering Committee. 

(a) Generally. Meetings of the Steering Committee will be held from time to time at such times and at such places as the members of the
Steering Committee determine, and will be conducted in English. Meetings may be held by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, provided
however that with respect to meetings of the Steering Committee in their capacity as the board of directors of ANRA, such meeting shall be held physically in person (unless permitted by the applicable Law to which ANRA is subject). Notice of the
time and place of the meeting must be given in accordance with Section 9.3.2 at least fourteen (14) days prior to the meeting (or, at least seven (7) days’ notice for a meeting being scheduled immediately subsequently to a
meeting which failed to achieve a quorum), unless a meeting of the Steering Committee is reasonably required to be urgently held due to reasons that would materially affect the operation of a Company, in such case no less than two (2) Business
Days’ notice (or, at least two (2) Business Days’ notice for an urgent meeting being scheduled immediately subsequently to a meeting which failed to achieve a quorum) of such a meeting must be provided to each member of the Steering
Committee. Each member of the Steering 

  
 14 

 
Committee has one vote. A quorum for a meeting of the Steering Committee is four members of the Steering Committee; provided however, that any meeting of Steering Committee that is duly scheduled
(in compliance with the notice requirements under this Section 3.1.3) but fails to reach quorum may be immediately rescheduled (in compliance with the notice requirements under Section 3.1.3) and in such rescheduled meeting, representation
of the members of the Steering Committee who attended the meeting that failed to reach a quorum shall be sufficient to constitute a quorum (provided that, the quorum of a rescheduled meeting of the Steering Committee in its capacity as the board of
directors of ANRA is two members of the Steering Committee). Except as expressly otherwise provided in this Agreement, an affirmative vote of a majority of the Steering Committee members attending a meeting at which a quorum is present is necessary
to decide any matter arising in connection with the business and affairs of a Company or delegated to the Steering Committee under this Agreement and applicable Laws. 

(b) Unanimous Steering Committee Actions. The following actions may not be taken by, or on behalf of, any Company unless unanimously
approved by all of the members of the Steering Committee: 
 (i) change or discontinue the JV Business or purposes of the
applicable Company or any Subsidiary of such Company, carry on other businesses, invest in or otherwise acquire any securities of any Person, create a Subsidiary, or establish a joint venture company in connection with the JV Business; 

(ii) require any Parties to make additional Capital Contribution; 

(iii) entering into any joint venture or similar Contract by any Company or any of its Subsidiaries (including without
limitation the spin-off or contribution of assets of any Company or any of their Subsidiaries to any third party); 

(iv) except as otherwise required by Section 5.1, payment of any distribution by any Company to the Parties or redemption
of any securities or ownership interest in any Company; 
 (v) provide for the Steering Committee to meet otherwise than at
least once every three (3) calendar months; 
 (vi) change the operating management structure described in Exhibit
A. 

  
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 3.1.4 Waiver of Notice. A member of the Steering Committee may waive any notice required
by Laws, a Company’s Formation Documents or this Agreement before or after the date and time of the meeting or event for which notice is required or before or after the date and time stated in the notice. The waiver must be in writing, be
signed by the member of the Steering Committee entitled to the notice and be delivered to the Steering Committee for inclusion in its records. A Steering Committee member’s attendance at a meeting waives objection to lack of notice or defective
notice of the meeting, unless the Steering Committee member at the beginning of the meeting objects to holding the meeting or transacting business at the meeting. 

3.1.5 Action by Steering Committee Without a Meeting. Action required or permitted to be taken at a meeting of the Steering Committee
may be taken without a meeting if all of the Steering Committee members unanimously agree to take the action, provided however that with respect to actions of the Steering Committee in their capacity as the board of directors of ANRA, such actions
may not be taken without a meeting (unless permitted by the applicable Law to which ANRA is subject). The action must be evidenced by one or more written consents describing the action taken, signed by the Steering Committee member and delivered to
the Steering Committee for inclusion in its records. Action taken under this Section 3.1.5 is effective when the Steering Committee members have signed the consent, unless the consent specifies a different effective date. The record date for
determining Steering Committee members entitled to take action without a meeting is the date the first Steering Committee member signs a written consent. 

3.1.6 Chairman. The Steering Committee shall have a Chairman who shall also serve as the Chairman of the board of each Company. Autoliv
ASP shall have the right to appoint such Chairman. Autoliv ASP shall have the right to remove the Chairman at its discretion and to appoint any other Steering Committee member appointed by Autoliv ASP to replace a removed Chairman in such capacity.
If a Chairman shall for any reason cease to be a Steering Committee member or be removed, Autoliv ASP shall promptly appoint a new Chairman for the Steering Committee. At any one time, there shall be only one Chairman. The Chairman shall chair all
meetings of the Steering Committee. In the absence of the Chairman, the Steering Committee members who are present may appoint another chair to direct such meeting. The Chairman shall not have a second vote on matters presented to the Steering
Committee or the board of any Company and shall not be entitled to cast a deciding vote (in addition to the Chairman’s vote as a member of the Steering Committee or a director on the board of directors) in the event of a tie vote by the
Steering Committee or the board of any Company. 
 3.1.7 Duties and Obligations of Steering Committee. 

(a) The Steering Committee must take all actions necessary or appropriate (i) for the continuation of each Company’s valid existence
under Laws of every jurisdiction in which such existence is necessary to protect the limited liability of the Parties or to enable the Company to conduct the business in which it is engaged and (ii) for the accomplishment of the Companies’
purposes. 

  
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 (b) The Steering Committee must devote such time as may be necessary for the proper performance
of all of their duties under this Agreement, but the Steering Committee members are not required to devote full time to the performance of such duties and may have other business interests or engage in other business activities. Neither any Company
nor any Party shall have any right, by virtue of this Agreement, to share or participate in such other investments or activities of the members of the Steering Committee. The Steering Committee members will not incur any liability to any Company or
to any Party as a result of engaging in any other business or venture. 
 3.1.8 Forecasts and Business Plan. 

(a) The initial Business Plan shall be as mutually agreed upon by the Parties. 

(b) Every fiscal quarter, the Global CEO shall prepare quarterly and updated annual forecasts at the end of each quarter of the fiscal year.
The Global CEO will promptly submit such forecasts to the Steering Committee for approval. If the Steering Committee rejects any such forecast, the Steering Committee and Global CEO shall revise such materials as necessary to obtain the approval of
the Steering Committee. 
 (c) The Global CEO shall prepare all updates and changes to the Business Plan as deemed necessary (and in
accordance with timetables), as determined by the Steering Committee. Once prepared, all updates to the Business Plan shall be presented to the Steering Committee for review. Provided however, that any such update or change which constitutes a
Material Change to the Business Plan (or the approval of any forecast which would have the effect of a Material Change to the Business Plan) shall be subject to a consultation and deliberation period of no less than 180 days prior to approval,
unless the Steering Committee decides to reduce such review period by unanimous vote. 
 (d) The Global CEO shall use good faith efforts to
ensure that the JV Business is conducted in such a manner as not to exceed, during the relevant fiscal year, the levels of expenditure set forth in the then current forecasts approved by the Steering Committee. 

3.1.9 Restrictions on Authority of Steering Committee. Without the consent of both the Autoliv Parties and the Nissin Parties, the
Steering Committee has no authority to: 
 (a) take any action in contravention of this Agreement or Laws, or take any action with respect
to matters listed in Section 2.2.4; 
 (b) take any action which would make it impossible for a Company to carry on its ordinary
business, except as otherwise provided in this Agreement; 

  
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 (c) possess Property, or assign rights in specific Property, for other than a Company purpose;

 (d) knowingly perform any act that would subject any Party to liability for the obligations of any Company in any jurisdiction; 

(e) amend this Agreement or the Formation Documents of any Company; or 

(f) dissolve any Company. 

3.1.10 Liability of Parties and Steering Committee. A Steering Committee member or a Party is not liable to any Company or to any Party
for any action taken, or any failure to take any action. In the event that any of the provisions of this Section 3.1.10 is held by a court of competent jurisdiction to be invalid, void or otherwise unenforceable, the remaining provisions are
severable and shall remain enforceable to the fullest extent permitted by Law. 
 3.1.11 Compensation. The Steering Committee members
shall receive no compensation as such and each Company shall reimburse its respective Steering Committee members for their out-of-pocket expenses (including travel
expenses) incurred in attending the meetings of the Steering Committee and otherwise acting on behalf of the applicable Company. 
 3.1.12
Resignation. A member of the Steering Committee may resign at any time by giving written notice to the Parties. The resignation of a member of the Steering Committee takes effect upon receipt of such notice or at such later time as is
specified in such notice, and, unless otherwise specified in such notice, the acceptance of such resignation is not necessary to make it effective. 
  

	 	3.2	Officers. 

 3.2.1 Key Operating Officers. The Key Operating Officers will
include, but not be limited to, a Global CEO, a Global COO, a Global CFO, an Asia Division Manager and an NA & EU Division Manager. 

3.2.2 Global CEO. The Global CEO shall give general supervision and direct the day-to-day business, financial affairs, operations and affairs of all of the Companies, shall prepare forecasts and updates to the Business Plan (as necessary or appropriate) for submission to the Steering
Committee for its approval, and shall perform all the duties usually incidental to such office, subject to the direction of the Steering Committee. The Global CEO shall select the independent public Accountants, subject to ratification by the
Steering Committee. The Global CEO may attend the Steering Committee meetings at the election of the Steering Committee, but shall not be entitled to cast a vote at such meetings. The Parties shall appoint the Global CEO as the sole representative
director of ANBJ. The Steering Committee members appointed by Autoliv ASP shall have the sole authority to appoint and may remove at any time the Global CEO. 

  
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 3.2.3 Global COO. The Global COO shall support the Global CEO mainly with regard to
operations of all of the Companies, and shall act at the direction of the Global CEO to oversee the general operations of each of the Companies. The Global COO may attend the Steering Committee meetings at the election of the Steering Committee, but
shall not be entitled to cast a vote at such meetings. The Parties shall appoint the Global COO as a director of ANBJ. The Steering Committee members appointed by Nissin shall have the sole authority to appoint and may remove at any time the Global
COO. 
 3.2.4 Global CFO. The Global CFO shall assist the Global CEO in the preparation of forecasts and updates to the Business Plan
(as necessary or appropriate) and shall direct the day-to-day financial affairs of the Companies, and shall perform all the duties usually incidental to such office,
subject to the direction of the Global CEO and the Steering Committee. The Global CFO may attend the Steering Committee meetings at the election of the Steering Committee, but shall not be entitled to cast a vote at such meetings. The Steering
Committee members appointed by Autoliv ASP shall have the sole authority to appoint and may remove at any time the Global CFO. 
 3.2.5
Asia Division Manager. The Asia Division Manager shall act at the direction of the Global CEO, and shall supervise all aspects of the JV Business within the region of Asia, shall identify and advise on strategic risks and opportunities, and
shall perform all the duties incidental to such office. The Steering Committee members appointed by Nissin shall have the sole authority to appoint and may remove at any time the Asia Division Manager. 

3.2.6 NA & EU Division Manager. The NA & EU Division Manager shall act at the direction of the Global CEO, and shall
supervise all aspects of the JV Business within the regions of North America and Europe, shall identify and advise on strategic risks and opportunities, and shall perform all the duties incidental to such office. The Steering Committee members
appointed by the Autoliv ASP shall have the sole authority to appoint and may remove at any time the NA & EU Division Manager. 

3.2.7 Other Officers. The Steering Committee may appoint other officers and may delegate to a duly appointed officer the authority to
appoint other officers, who shall have such authority and shall perform such duties as may be established by the Steering Committee from time to time. The same person may hold any two or more offices. 

3.2.8 Compensation. The Steering Committee shall fix the compensation, if any, of all officers of the Companies. 

  
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	 	4.	REPRESENTATIONS AND WARRANTIES/INDEMNIFICATION 

  

	 	4.1	Representations and Warranties of the Autoliv Parties. 

 Each of the Parties in
the Autoliv Parties represents and warrant to each of the Parties in the Nissin Parties: 
 (a) Each Party in the Autoliv Parties is an
entity duly organized, validly existing and in good standing under the Laws of its jurisdictions of organization. Each of the Parties in the Autoliv Parties has the requisite power and authority to own, lease and operate its respective assets and
properties and to carry on its respective business as it is now being conducted except where the failure to have such power and authority would not reasonably be expected to materially restrict or prohibit the transactions contemplated by this
Agreement. 
 (b) Each Party in the Autoliv Parties has the power, capacity and authority to enter into and perform its respective
obligations under this Agreement, and to consummate (or cause its Subsidiaries to consummate) the transactions contemplated hereby and thereby. The execution, delivery and performance of this Agreement by each Party in the Autoliv Parties has been
duly and validly authorized and approved by all necessary action on the part of each respective Party in the Autoliv Parties. This Agreement is the legal, valid and binding obligation of each Party in the Autoliv Parties, and assuming the due
authorization, execution and delivery hereof and thereof by the Parties in the Nissin Parties to such agreements, are enforceable against it in accordance with its terms, except as enforceability may be limited by applicable equitable principles and
defenses (whether applied in a proceeding at Law or in equity) or by bankruptcy, insolvency, reorganization, moratorium, or similar Laws affecting the enforcement of creditors’ rights generally. 

(c) There is no suit, claim, action, litigation or proceeding, administrative or judicial, or any governmental investigation pending or, to the
knowledge of any Party in the Autoliv Parties threatened, against any Party in the Autoliv Parties or its properties for the purpose of challenging, enjoining, preventing or obtaining substantial damages in respect of the execution and delivery of
this Agreement, or the performance of the terms and conditions hereof or thereof, or the consummation of the transactions contemplated hereby or thereby. 

(d) The execution, delivery and performance of this Agreement do not and will not (i) violate, conflict with or result in the breach of
any provision of any of the organizational documents for any Party in the Autoliv Parties, (ii) violate any Law, rule, regulation or ordinance, or any order or ruling of any court or Governmental Authority applicable to Autoliv or any of the
Companies and Affiliates of Autoliv (all of such entities, the “Autoliv Organization”), (iii) result in a breach of or constitute a default (or an event which with the passage of time or giving of
notice, or both, would constitute a default) 

  
 20 

 
under, or cause or permit the acceleration of the maturity of or give rise to any right of termination, cancellation, imposition of fees or penalties under, any Contract, obligation, debt, note,
bond, lease, mortgage, license, indenture or other instrument to which Autoliv or any entity of the Autoliv Organization is party or by which any of their assets or properties, may be bound, except any violation, conflict, breach, default or right
that would not reasonably be expected to materially restrict or prohibit the transactions contemplated by this Agreement. No notice to, filing with, or consent of, any public body or authority or any other Person is necessary for the consummation of
the transactions contemplated in this Agreement. 
  

	 	4.2	Representations and Warranties of Nissin. 

 Each of the Parties in the Nissin
Parties represents and warrants to each of the Parties in the Autoliv Parties: 
 (a) Each Party in the Nissin Parties is an entity duly
organized, validly existing and in good standing under the Laws of its jurisdictions of organization. Each of the Parties in the Nissin Parties has the requisite power and authority to own, lease and operate its respective assets and properties and
to carry on its respective business as it is now being conducted except where the failure to have such power and authority would not reasonably be expected to materially restrict or prohibit the transactions contemplated by this Agreement. 

(b) Each of the Parties in the Nissin Parties has the power, capacity and authority to enter into and perform its respective obligations under
this Agreement, and to consummate (or cause its subsidiaries to consummate) the transactions contemplated hereby and thereby. The execution, delivery and performance by each of the Parties in the Nissin Parties of this Agreement has been duly and
validly authorized and approved by all necessary action on the part of each of the Parties in the Nissin Parties. This Agreement is the legal, valid, and binding obligation of each of each Party in the Nissin Parties, and assuming the due
authorization, execution and delivery hereof and thereof by the Parties in the Autoliv Parties to such agreements, are enforceable against it in accordance with its terms, except as enforceability may be limited by applicable equitable principles
and defenses (whether applied in a proceeding at Law or in equity) or by bankruptcy, insolvency, reorganization, moratorium, or similar Laws affecting the enforcement of creditors’ rights generally. 

(c) There is no suit, claim, action, litigation or proceeding, administrative or judicial, or any governmental investigation pending or, to the
knowledge of any of the Parties in the Nissin Parties threatened, against any Party in the Nissin Parties or its properties for the purpose of challenging, enjoining, preventing or obtaining substantial damages in respect of the execution and
delivery of this Agreement, or the performance of the terms and conditions hereof or thereof, or the consummation of the transactions contemplated hereby or thereby. 

  
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 (d) The execution, delivery and performance of this Agreement do not and will not
(i) violate, conflict with or result in the breach of any provision of the organizational documents of any of the Parties in the Nissin Parties, (ii) violate any Law, rule, regulation or ordinance, or any order or ruling of any court or
Governmental Authority applicable to Nissin or any of the Companies and Affiliates of Nissin (all of such entities, the “Nissin Organization”), (iii) result in a breach of or constitute a default
(or an event which with the passage of time or giving of notice, or both, would constitute a default) under, or cause or permit the acceleration of the maturity of or give rise to any right of termination, cancellation, imposition of fees or
penalties under, any Contract, obligation, debt, note, bond, lease, mortgage, license, indenture or other instrument to which Nissin or any entity in the Nissin Organization is party or by which any of their assets or properties, may be bound,
except any violation, conflict, breach, default or right that would not reasonably be expected to materially restrict or prohibit the transactions contemplated by this Agreement. No notice to, filing with, or consent of, any public body or authority
or any other person is necessary for the consummation of the transactions contemplated in this Agreement. 
  

	 	4.3	Indemnification. 

 4.3.1 Definitions. As used in this Section 4.3, the
terms: 
 (a) “Company” includes any successor in a merger or other transaction with a Company in which such Company survives
consummation of the transaction. 
 (b) “Shareholder” or “Director” or “Officer” means a Person who is or was
a shareholder, member, director, manager or officer, respectively, of a Company or who, while a shareholder, member, director, manager or officer of a Company, is or was serving at such Company’s request as a shareholder, member, manager,
director, officer, partner, trustee, employee, or agent of another domestic or foreign limited liability company, corporation, partnership, joint venture, trust, employee benefit plan, or other entity. A Shareholder, Director or Officer is
considered to be serving an employee benefit plan at a Company’s request if his or her duties to such Company also impose duties on, or otherwise involve services by, the Shareholder, Director or Officer to the plan or to participants in or
beneficiaries of the plan. “Shareholder”, “Director” or “Officer” includes, unless the context otherwise requires, the estate or personal representative of the shareholder, director or officer. 

(c) “Expenses” includes all reasonable counsel fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel
expenses and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a
Proceeding, including any appeals. 

  
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 (d) “Liability” includes claims, demands and/or the obligation to pay a judgment,
settlement, penalty, fine (including an excise tax assessed with respect to an employee benefit plan), or reasonable Expenses actually incurred with respect to a Proceeding. 

(e) “Party” includes an individual who was, is, or is threatened to be made a named defendant or respondent in a Proceeding. 

(f) “Proceeding” means any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative,
arbitrative or investigative and whether formal or informal. 
 (g) “Supporting Documentation” for Expenses means documents or
other evidence of specific Expenses to be reimbursed or advanced, including any relevant invoice, bill, agreement or other documentation. 

4.3.2 Obligation to Indemnify; Limits. Each of the Parties agrees to cause each Company to indemnify and hold harmless its respective
Shareholders, Directors and Officers, or any individual who is a Party to a Proceeding because he or she is or was a Shareholder, Director or Officer of such Company from and against any and all Liability whatsoever arising in connection with such
Company, except that each Company may not indemnify its respective Shareholders, Directors or Officers for any Liability incurred in a Proceeding in which such Person is adjudged liable to the Company or is subjected to injunctive relief in favor of
such Company (i) for acts or omissions that involve intentional misconduct or a knowing violation of Law, or (ii) for any transaction for which such Shareholder, Director or Officer received a personal benefit in violation or breach of any
provision of this Agreement, or as otherwise prohibited by Laws applicable to such Company. 
 4.3.3 Indemnification of Employees and
Agents. Each of the Parties agree that each Company may indemnify and advance Expenses under this Section 4.3 to an employee or agent of such Company who is not a Shareholder, Director or Officer to the same extent and subject to the same
conditions that a correspondent company of such Company could indemnify and advance Expenses to a Shareholder or Director, or to any lesser extent (or greater extent if permitted by Law) determined by the Directors, in each case consistent with
public policy. 
 5. DISTRIBUTIONS 
  

	 	5.1	Distributions. 

 5.1.1 Quarterly Tax Distribution. ANBA must make
distributions out of Net Cash Flow quarterly (within 30 days of the end of the quarter) to the Parties holding Equity Interests in such Company, in proportion to their Equity Interests, in an amount reasonably estimated by the Steering Committee to
be at least sufficient to enable the Parties to pay all applicable income taxes, including estimated taxes, attributable to their Equity Interests. 

  
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 5.1.2 Remaining Net Cash Flow. Subject to any limits or requirements pursuant to
applicable Law, at least 50% of the total consolidated Net Cash Flow of each Company generated during any fiscal year (net of any amounts for such year distributed pursuant to Section 5.1.1 with regard to distributions by ANBA) shall become the
total amount of distributions to the Parties for such fiscal year. The Steering Committee then allocates such total amount of distributions to each Company and such allocated amount shall be distributed by each Company annually prior to June 1st of the following year, or at such other times as determined by the Steering Committee for each Company, to the Parties holding Equity Interests in proportion to their Equity Interests. Any
additional distributions for a Company shall be subject to unanimous approval by the Steering Committee. 
 5.1.3 Amounts Withheld.
All amounts withheld pursuant to any provision of any tax Law applicable to each Company with respect to any payment or distribution to Parties holding Equity Interests will be treated as amounts distributed to such Party pursuant to this
Section 5.1 for all purposes of this Agreement. 
 5.1.4 In Kind Distributions. If any assets of any Company are distributed in
kind, such assets will be distributed, to Parties holding Equity Interests in such Company entitled to such distribution, as tenants-in-common in the same proportions as
such Parties would have been entitled to cash distributions. 
 5.1.5 Limitation Upon Distributions. No distribution shall be made to
Parties if prohibited by Laws applicable to the distributing Company. 
 6. TRANSFERS AND REDEMPTION RIGHTS 

 

	 	6.1	Restriction on Transfer of Interests. 

 Except as otherwise expressly permitted by
this Agreement, no Nissin Party may Transfer all or any portion of such Nissin Party’s Equity Interest in any Company without the advance written consent of the Autoliv Parties; and no Autoliv Party may transfer all or any portion of such
Autoliv Party’s Equity Interest in any Company without the advance written consent of Nissin. Each Party agrees that it shall not permit any of its Equity Interests to be subject to any Liens (other than this Agreement). Any Transfers in
violation of this Section shall be null and void. 
  

	 	6.2	No Withdrawal. 

 Except as provided under Sections 6.3 and 6.4, Parties may not
withdraw from any Company under any circumstances. 

  
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	 	6.3	Buy-Sell Option. 

 6.3.1 Manner of
Offer. In the event of an unresolved Irreconcilable Deadlock (but in no other circumstances), either (i) the Autoliv Parties may at any time, offer to Nissin both to sell all (but not less than all) of the Autoliv Parties’ Equity
Interests in each of the Companies or to buy all (but not less than all) of the Nissin Parties’ Equity Interests in each of the Companies at the Appraised Value (in such case, each Party of the Autoliv Parties shall be deemed to be an
“Offeror” with respect to its respective Equity Interest in the Companies and Nissin shall be deemed to the “Offeree”); or (ii) if the Autoliv Parties have not served a notice under
(i) above, Nissin may, at any time, offer to the Autoliv Parties both to sell all (but not less than all) of all of the Nissin Parties’ Equity Interests in each of the Companies or to buy all (but not less than all) of the Autoliv
Parties’ Equity Interests in each of the Companies at the Appraised Value (in such case, each Party of the Nissin Parties shall be deemed to be an “Offeror” with respect to its respective Equity Interest in the Companies
and each Party of the Autoliv Parties shall be deemed to the “Offeree”). Each of the members of the Nissin Parties hereby irrevocably appoint Nissin as their
attorney-in-fact to act on their behalf with respect to any action or transaction in connection with this Section 6.3, and, as their
attorney-in-fact, Nissin may take any action and execute any document in connection with any such transaction. Each of the members of the Autoliv Parties hereby
irrevocably appoint Autoliv ASP as their attorney-in-fact to act on their behalf with respect to any action or transaction in connection with this Section 6.3, and,
as their attorney-in-fact, Autoliv ASP may take any action and execute any document in connection with any such transaction. Such offer must be in writing and must
contain the following: 
 (a) A statement of intention to make an offer under this Section 6.3; 

(b) A statement that a condition to any purchase pursuant to the offer shall be the absolute and unconditional indemnity by the purchaser of
the seller against any loss, claim or damage that the seller may suffer arising out of any guarantee by the seller of any debt of any of the Companies for borrowed money; 

(c) A statement that the purchase price for the Equity Interests subject to the offer shall be payable in cash at closing; and 

(d) A statement that such offer is both an offer to sell the Equity Interest owned by the Offeror in each of the Companies and an offer to
purchase the Equity Interest owned by the Offeree in each of the Companies, in each case free and clear of all Liens (other than this Agreement). 

6.3.1(a) Appraised Value. The Offeror may elect to seek calculation of an Appraised Value on written notice to the Offeree. 

  
 25 

 6.3.2 Term of Offer. The Offeror’s offer shall be irrevocable for forty-five
(45) days (the “Option Period”), and the Offeree must, on or before the expiration of the Option Period, accept either the offer to sell or the offer to buy. 

6.3.3 Manner of Acceptance. 

(a) Offeree Elects to Accept the Offer to Buy. If, during the Option Period, the Offeree elects to accept the Offeror’s offer to
buy, the Offeror must buy, and the Offeree must sell to the Offeror, all of the Equity Interest owned by such selling Offeree in each of the Companies. 

(b) Offeree Elects to Accept the Offer to Sell. If, during the Option Period, the Offeree elects to accept the Offeror’s offer to
sell, the Offeror must sell all of the Equity Interest owned by the Offeror, and the Offeree must buy from the Offeror all of the Equity Interest owned by such selling Offeror in each of the Companies. 

(c) Offeree Fails To Accept Either Offer. If, during the Option Period, the Offeree does not accept either of the Offeror’s offers
to sell or to buy, the Offeree shall be deemed to have elected to accept the Offeror’s offer to buy under Section 6.3.3(a) on the last day of the Option Period. 

6.3.4 Closing of the Buy-Sell Option. The closing of any purchase or sale pursuant to this Section 6.3 shall be held at the
principal office of ANBJ (unless otherwise agreed by the Parties) and on the date specified by written notice by the buyer to the seller (the “Buy-Sell Closing Date”),
which date shall be within sixty (60) days after the end of the Option Period; provided that such period shall be extended to the extent necessary for the expiration of any regulatory waiting periods or to obtain any required regulatory
approvals, consents or other authorizations. The purchase price shall be paid by the buyer in immediately available funds at the Buy-Sell Closing Date, and the seller shall execute, seal, and deliver for and
on their behalf, all documents that may be necessary or appropriate, in the reasonable opinion of counsel to the buyer, to effect such sale free and clear of all Liens (other than this Agreement). 

6.3.5 Specific Performance. The Parties acknowledge and agree that monetary damages to compensate a Party for any breach of this
Section 6.3 would be inadequate. Accordingly, this Section 6.3 shall be enforceable by action of specific performance and other appropriate equitable relief. 
  

	 	6.4	Appraised Exit. 

 6.4.1 Events of Exit. The Parties shall be entitled to
invoke this appraised purchase-sale mechanism in this Section 6.4 only under the following circumstances: 

  
 26 

 (a) By Nissin (on behalf of the Nissin Parties) on delivery of written notice to the Autoliv
Parties within sixty (60) days of Nissin receiving notice of an Autoliv Change in Control; 
 (b) By Autoliv ASP (on behalf of the
Autoliv Parties) on delivery of written notice to Nissin within sixty (60) days of the Autoliv Parties receiving notice of a Nissin Kogyo Change in Control; 

(c) By Nissin (on behalf of the Nissin Parties) on delivery of written notice to the Autoliv Parties in the event of an On-going Material Breach by the Autoliv Parties or any Affiliate thereof; 
 (d) By Autoliv ASP (on
behalf of the Autoliv Parties) on delivery of written notice to Nissin in the event of an On-going Material Breach by Nissin or any Affiliate thereof; 

(e) By Nissin (on behalf of the Nissin Parties), on delivery of written notice to Autoliv ASP (on behalf of the Autoliv Parties), in the
event that it determines that there has been a fundamental breakdown in the relationship between the Parties following (i) the adoption of any Material Change to the Business Plan (or the approval of any forecast which would have the effect of
a Material Change to the Business Plan) by the Steering Committee without any supporting votes by Steering Committee members appointed by the Nissin Parties, or (ii) the adoption of any material change to the compensation paid to employees of
any Company or any Subsidiary of a Company without any supporting votes by Steering Committee members appointed by the Nissin Parties; and 
 an
“On-going Material Breach” shall mean a breach which: (i) if capable of being remedied or cured, is not so remedied or cured for a period
of sixty (60) days following the receipt of a written notice demanding the same; (ii) a breach which has an adverse effect on the JV Business or on the assets or liabilities of the Companies in excess of US$ one (1) million; or
(iii) a breach of any of the following terms of this Agreement: Section 1.3, Section 2.2.4, Section 3.1.3(b), Section 3.1.9, Section 3.2.3 and Section 3.2.5. 

6.4.2 If Autoliv ASP or Nissin has delivered notice under Section 6.4.1 (the “Terminating
Party”), it may elect to seek calculation of an Appraised Value on written notice to Nissin (in the case of Autoliv ASP) or Autoliv ASP (in the case of Nissin) (the “Non-Terminating Party”). 
 6.4.3 If the Terminating Party has delivered
notice pursuant to Section 6.4.1 (a), (b) (c) or (d) then, the Terminating Party may, at its election, within thirty (30) days after receiving the Appraised Value, deliver a written notice to the
Non-Terminating Party (the “Election Notice”) stating whether (i) it will buy all (but not less than all) of the Equity Interest in each
of the Companies held by either the Autoliv Parties (if the Terminating Party is Nissin) or the Nissin Parties (if the Terminating Party is Autoliv 

  
 27 

 
ASP)(in each case, such Equity Interests in each of the Companies, the “Non-Terminating Party’s
Interests”), for an amount equal to 90% of Non-Terminating Party’s Interests (expressed as a percentage) multiplied by the Appraised Value; or (ii) the Autoliv
Parties (if the Terminating Party is Autoliv ASP) or the Nissin Parties (if the Terminating Party is Nissin) will sell all (but not less than all) of their respective Equity Interests in each of the Companies (the
“Terminating Party’s Interests”), for an amount equal to 110% of Terminating Party’s Interests (expressed as a percentage) multiplied by the Appraised Value. If the
Terminating Party has delivered notice pursuant to Section 6.4.1(e) then, the Terminating Party may, within thirty (30) days after receiving the Appraised Value, deliver a written notice to the
Non-Terminating Party (the “Election Notice”) stating that the Nissin Parties will sell all (but not less than all) of the Terminating
Party’s Interests for an amount equal to 100% of Terminating Party’s Interests (expressed as a percentage) multiplied by 100% of the Appraised Value. Upon delivery of any such notice under this Section 6.4.3, both Parties shall be
obligated to effect the transaction elected by the Terminating Party in such notice. Each of the members of the Nissin Parties hereby irrevocably appoint Nissin as their
attorney-in-fact to act on their behalf with respect to any action or transaction in connection with this Section 6.4, and, as their
attorney-in-fact, Nissin may take any action and execute any document in connection with any such transaction. Each of the members of the Autoliv Parties hereby
irrevocably appoint Autoliv ASP as their attorney-in-fact to act on their behalf with respect to any action or transaction in connection with this Section 6.4, and,
as their attorney-in-fact, Autoliv ASP may take any action and execute any document in connection with any such transaction. 

6.4.4 Closing of the Appraised Exit. The closing of any purchase or sale pursuant to this Section 6.4 shall be held at the
principle office of ANBJ (unless otherwise agreed by the Parties) on the date specified by written notice by the buyer to the seller (the “Termination Closing Date”), which date shall
be within sixty (60) days after delivery of the Election Notice; provided that such period shall be extended to the extent necessary for the expiration of any regulatory waiting periods or to obtain any required regulatory approvals, consents
or other authorizations. The specified purchase price shall be paid by the buyer in immediately available funds at the Termination Closing Date, and the seller shall execute, seal, and deliver for and on their behalf, all documents that may be
necessary or appropriate, in the reasonable opinion of counsel to the buyer, to effect such sale free and clear of all Liens (other than this Agreement). 

6.4.5 Specific Performance. The Parties acknowledge and agree that monetary damages to compensate a Party for any breach of this
Section 6.4 would be inadequate. Accordingly, this Section 6.4 shall be enforceable by action of specific performance and other appropriate equitable relief. 

6.4.6 Change in Control. Each of the Autoliv Parties and the Nissin Parties shall notify in writing the Nissin Parties and the Autoliv
Parties, respectively, promptly upon an Autoliv Change in Control or a Nissin Kogyo Change in Control, as the case may be. 

  
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 6.5 Appointment of Appraiser 

The Terminating Party and the Non-Terminating Party, or the Autoliv Parties and Nissin, as the case
may be, shall mutually agree on the identity of the Appraiser for the purposes of Section 6.3 and Section 6.4; provided, however, that if the Terminating Party and the Non-Terminating Party, or the
Autoliv Parties and Nissin, as the case may be, are unable to agree on the Appraiser within fifteen (15) days of the date of the notice under Section 6.3.1(a) or Section 6.4.2, as the case may be, then each Party shall within fifteen
(15) days thereafter name a reasonably experienced investment banking firm or a valuation expert with experience in valuing businesses participating in the auto parts industry and such firm/expert shall mutually agree upon the Appraiser. If
either the Terminating Party or the Non-Terminating Party, or the Autoliv Parties or Nissin, as the case may be, fails to designate such a firm/expert within such 15-day
period, then the firm/expert designated by the other Party shall be the Appraiser and solely responsible for the determination of the Appraised Value. 

7. NONCOMPETITION AND CONFIDENTIALITY 

7.1 Noncompete. 

Each Party hereby agrees that it shall not, directly or indirectly through any Affiliate, so long as such Party or any of its Affiliates is a
Party to this Agreement and during the term of this Agreement, directly or indirectly, engage in any business competitive with the JV Business anywhere worldwide other than the territory of Indonesia; or interfere with, disrupt, or attempt to
interfere with or disrupt any relationship, contractual or otherwise, between any Company or any of their Subsidiaries and any of its or their respective customers or clients or other Persons with whom each of them deals or with whom each is
reasonably likely to deal; provided however that, (i) the Nissin Organization shall not be in breach of this Section 7.1 as a result of (x) conducting any brake apply and brake control business of Nissin Brake India, Nissin Brake De
Mexico SA. DE CV., and Nissin Brake Do Brasil LTDA. Sao Plant, and Nissin Brake (Thailand) CO., Ltd., which are pre-existing projects of the Nissin Organization prior to Closing or projects in respect of which
the Companies decide not to accept an order or (y) holding shares in Yoshida Industry Co. and/or any of the activities conducted by Yoshida Industry Co.; and (ii) the Autoliv Organization shall not be in breach of this Section 7.1 as
a result of conducting any ECU manufacturing business as conducted prior to Closing. 
 7.2 Confidentiality. 

Each Party agrees that it must not, directly or indirectly, during the time it is a Party to this Agreement, and for three (3) years
thereafter, divulge to any Person, or use for its own benefit, any Confidential Information of the Companies (or its Subsidiaries), or at any time divulge to any Person, or use for its own benefit, any Trade Secrets of the Companies (or its
Subsidiaries). However, such restrictions will not apply to Confidential Information that is: 
 7.2.1 or becomes public knowledge (through
no fault of the receiving Party), 

  
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 7.2.2 made lawfully available to the receiving Party by an independent third party not subject to
a duty of confidentiality to the disclosing Party, by Contract or otherwise (and such lawful right can be properly demonstrated by the receiving Party), 

7.2.3 already in the receiving Party’s possession at the time of receipt from the disclosing Party (and such prior possession can be
properly demonstrated by the receiving Party), 
 7.2.4 independently developed by the receiving Party, or 

7.2.5 required by Law or order of any Governmental Authority to be disclosed by the receiving Party; provided, however, that, to the extent
reasonably practicable and permitted under applicable Law, such receiving Party gives (to the extent permitted by applicable Law) the other Party prompt advance written notice to permit it to seek a protective order or other similar order with
respect to such Confidential Information and such receiving Party discloses only the minimum Confidential Information required to be disclosed in order to comply. 

7.3 Non-Solicit. 

During the time it is a Party and for a period of three (3) years thereafter, each Party shall not (and shall cause its Affiliates to
not) recruit, solicit for employment or employ any employee (other than directors, officers or other employees originally appointed by such Party) of the Companies or any of its Subsidiaries without the written consent of the other Parties, unless a
former employee has not been employed by the Companies or relevant Subsidiary for at least six (6) months. Notwithstanding any contrary term in this Section 7.3, general advertising for positions that are made after such Party ceases to be
a Party to this Agreement not intended specifically for the Companies’ employees (or employees of a Subsidiary of the Companies) shall not be a breach of this Section 7.3. 

7.4 Severability. 

Although the restrictions contained in this Section 7 are considered by the parties hereto to be fair and reasonable, it is recognized
that restrictions of the nature contained in this Section 7 may fail for technical reasons and accordingly it is hereby agreed that if any of such restrictions are adjudged to be void or unenforceable for whatever reason, but would be
valid if part of the wording thereof were deleted, or the period thereof reduced or the area dealt with thereby reduced in scope, the restrictions contained in this Section 7 shall apply, at the election of each Company, with such modifications
as may be necessary to make them valid, effective and enforceable in the particular jurisdiction in which such restrictions are adjudged to be void or unenforceable. 

  
 30 

 7.5 Injunctive Relief. 

If a violation of any covenant contained in this Section 7 occurs or is threatened, each Party agrees and acknowledges that such
violation or threatened violation will cause irreparable injury to the Companies, that the remedy at law for any such violation or threatened violation will be inadequate and that the Company shall be entitled to temporary and permanent injunctive
relief without the necessity of proving actual damages. 
 8. TERM AND TERMINATION OF THE AGREEMENT 

8.1 Term and Termination. 

8.1.1 This Agreement shall be effective subject to, and as of the date of the Closing; provided, however, that if such Closing has not been
completed on or before March 31, 2016, or such later date as the Parties may agree upon in writing, this Agreement shall terminate and be of no further effect, and no Party shall have any further obligation to the other Parties other than the
obligations which have accrued prior to the date of termination. 
 8.1.2 This Agreement shall be terminated with respect to each of the
Companies at the time when either Nissin Parties or Autoliv Parties does not own any shares in each of the Companies as a result of the “Buy-Sell Option” pursuant to Section 6.3 or the
“Appraised Exit” pursuant to Section 6.4. 
 9. DEFINITIONS AND MISCELLANEOUS 

9.1 Definitions. 

As used in this Agreement, the following terms shall have the following meanings: 

“Accountants” means any firm of independent certified public accountants engaged for the Companies. 

“Affiliate” means, with respect to a Person, any other Person at any time Controlling, Controlled by or
under common Control with such Person. For purposes of this definition, Parties shall be deemed not to be Affiliates of any Company and any Person Controlled by a Company. 

  
 31 

 “Agreement” means this Joint Venture Agreement, as it may
be amended pursuant to Section 9.3.9. 
 “ANBA” has the meaning set forth in the recitals. 

“ANBZ” has the meaning set forth in the recitals. 

“ANBJ” has the meaning set forth in the recitals. 

“ANRA” has the meaning set forth in the recitals. 

“Annual Meeting” has the meaning set forth in Section 2.2.1. 

“Appraiser” means an appraiser selected pursuant to Section 2.3 or Section 6.5. 

“Appraised Value” means the fair market value of one hundred percent (100%) of the Equity Interests of a
Company as a going concern without any minority discount or control. The Appraised Value of a Company shall be determined as follows: (a) within fifteen (15) days of the selection of the Appraiser pursuant to this Agreement, each Party
shall submit to the Appraiser all of the information such Party deems relevant to the calculation of the Appraised Value (such information may, but is not required to, include any or all of the following: industry information; information reasonably
related to the valuation, including, without limitation, Confidential Information of the applicable Company; valuation methodologies; and a valuation of the applicable Company); (b) the Appraiser shall, as promptly as practicable after expiration of
the 15-day period in clause (a), conduct at least one joint meeting with the Parties at which each Party may make statements in support of its positions and rebut statements made by the other Parties;
(c) the Appraiser shall thereafter determine such fair market value of 100% of the Equity Interests of the applicable Company as promptly as practicable; and (d) such value shall be the “Appraised Value”. 

“Asia Division Manager” means has the meaning set forth in Section 3.2.5. 

“Autoliv ASP” has the meaning set forth in the preamble. 

“Autoliv AB” has the meaning set forth in the preamble. 

“Autoliv Change in Control” means if Autoliv ceases to own directly or indirectly at least a majority of
the equity interests in each Party of the Autoliv Parties or their respective successors hereunder or if one or more Persons acting in concert acquire directly or indirectly a majority of the outstanding shares of Autoliv. 

“Autoliv Designee” has the meaning set forth in Section 2.6. 

  
 32 

 “Autoliv Holding” has the meaning set forth in the
preamble. 
 “Autoliv Organization” has the meaning set forth in Section 4.1(d). 

“Autoliv Parties” has the meaning set forth in the preamble. 

“Business Day” means any day other than (a) Saturday, Sunday and (b) any other day on which
commercial banks in Japan or the United States are authorized or obligated by governmental rules or executive order to close. 

“Business Plan” means a business plan for the operations of the Companies as mutually agreed upon by the
Parties, subject to any changes approved by the Steering Committee in accordance with the terms of this Agreement, or any replacement of such business plan authorized and approved by the Parties for the operations of the Companies, provided, that
any change to or replacement of the Business Plan shall be made using substantially the same format, terms and subjects as the initial Business Plan (or any other format approved by the Parties). 

“Buy-Sell Closing Date” has the meaning set forth in
Section 6.3.4. 
 “Capital Contributions” means, with respect to any Party and any Company, the
amount of cash and the gross asset value of any property (other than cash) contributed by such Party to capital of such Company from time to time pursuant to this Agreement. 

“Certificate” means the Certificate of Formation of a Company or the Articles of Incorporation of a
Company, or equivalent certificate under the laws of the jurisdiction of incorporation of such Company, as amended. 

“Chairman” has the meaning set forth in Section 3.1.6. 

“Change in Control” means Autoliv Change in Control or Nissin Kogyo Change in Control. 

“Closing” means the completion of the transactions set forth in Section 5.3.1 of the Share Purchase
Agreement. 
 “Company” means any of ANBJ, ANBA, ANBZ, and ANRA. 

“Companies” means collectively ANBJ, ANBA, ANBZ, and ANRA. 

“Confidential Information” means, in addition to information covered by any definition of “trade
secrets” or any equivalent term under state, local or federal law, any and all information regarding the Parties, the Companies or any Affiliate thereof, its activities, its business or its clients that is not generally known to persons not
employed by 

  
 33 

 
the Parties, the Companies or any Affiliate thereof and that is not generally disclosed by the Parties, the Companies or any Affiliate thereof to persons not employed by the Parties, the
Companies or any Affiliate thereof, but that does not rise to the level of a Trade Secret. “Confidential Information” shall include, but is not limited to, sales and marketing techniques and plans, distribution techniques, purchase and
supply information, prices paid by customers, customer billing information, financial plans and data concerning the Parties, the Companies or any Affiliate thereof, and management planning information. “Confidential Information” shall not
include information that has become generally available to the public by the act of one who has the right to disclose such information without violating any right or privilege of the Parties, the Companies or any Affiliate thereof or information
obtained from a source other than the Parties, the Companies or any Affiliate thereof that was not bound by a duty of confidentiality to that Party, the Companies or any Affiliate thereof with respect to such information. 

“Contract” means any agreement, contract, lease, license, franchise, note, bond, mortgage, indenture,
guarantee, purchase or sale order or other instrument or obligation, arrangement or commitment, including all amendments thereto, irrespective of whether oral or written. 

“Control, Controlling, or Controlled” means possessing, directly or
indirectly, the power to direct or cause the direction of the management and policies of another Person, whether through ownership of voting securities, by contract or otherwise, including the ability to elect the or the power to appoint a majority
of directors on the board of directors or the members of a similar governing body of a Person, and the terms “controlled” and “controlling” have correlative meanings. 

“Current Development Project” means each project set forth in Exhibit C. 

“Deadlock” has the meaning set forth in Section 2.6. 

“Default Rate” has the meaning set forth in Section 2.3.1(b)(i). 

“ECU” means electronic control units utilized for automotive safety systems. 

“Election Notice” has the meaning set forth in Section 6.4.3. 

“Equity Interest” means a Party’s entire interest in the applicable Company, including such
Party’s economic interest, the right to participate in the management of the business and affairs of the applicable Company, and the right to vote on, consent to, or otherwise participate in any decision or action of or by the Parties granted
pursuant to this Agreement or applicable law. To the extent the Parties’ Equity Interests changes and Parties are added or withdraw, such changes will be reflected in the applicable Company’s books and records without the requirement of
amending this Agreement. 

  
 34 

 “Extraordinary Meeting” has the
meaning set forth in Section 2.2.1 
 “Formation Documents” means
with respect to any (i) corporation, its charter, articles or certificate of incorporation and by-laws, or similar organizational documents, (ii) partnership, its certificate of partnership and
partnership agreement, or similar organizational documents, (iii) limited liability company, its certificate of formation and limited liability company or operating agreement, or similar organizational documents, and (iv) other entity, its
equivalent organizational documents. 
 “Global CEO” has the meaning set
forth in Section 3.2.2. 
 “Global CFO” has the meaning set forth in
Section 3.2.4. 
 “Global COO” has the meaning set forth in
Section 3.2.3. 
 “Governmental Authority” means any government or
governmental or regulatory body thereof, or political subdivision thereof, whether supranational, federal, state, local or foreign, or any agency, bureau, commission, instrumentality or authority thereof, or any court, tribunal or arbitrator (public
or private). 
 “Gross Revenues” means, with respect to the applicable
Company, for any period, all revenues, income, earnings, or cash flow of any kind or description received during such period by or on behalf of the applicable Company. 

“Irreconcilable Deadlock” has the meaning set forth in Section 2.6.

 “JV Business” has the meaning set forth in Section 1.2. 

“Key Operating Officers” has the meaning set forth in Section 3.1.1.

 “Law” means any law, statute, ordinance, rule, regulation, code, writ,
injunction, judgment, order, award, resolution, edict, decree, rule of common or civil law or treaty of any domestic, foreign or international Governmental Authority. 

“Lien” means any option or conditional sale agreement, default of title,
easement, encroachment, encumbrance, hypothecation, infringement, lien, mortgage, pledge, reservation, restriction, security interest, title retention or other security arrangement, or any adverse right or interest, charge, or claim of any nature
whatsoever of, on, or with respect to any property or property interest (including without limitation any equity interest in any Company). 

“Losses” has the meaning set forth herein under “Profits” and
“Losses.” 
 “Majority in Interest” means Parties owning more
than fifty percent (50%) of the outstanding Equity Interests in the Companies (in aggregate). In respect of ANRA only, the outstanding Equity Interests of the Thai Designated Party shall be aggregated with those of Autoliv AB for this purpose. 

  
 35 

 “Material Change to the Business Plan”
means any change to the Business Plan (meaning the Business Plan that has most recently been approved by the Parties) which involves (i) initiating any new project, (ii) terminating any existing project, (iii) an aggregate
increase in capital expenditures or other investment with respect to any project previously initiated in an amount between US$5,000,000 and US$10,000,000, (iv) aggregate increase of US$5,000,000 or more to loans from the Parties, (v) incurring
external indebtedness by the Companies (during the term of the Business Plan), or (vi) any change of 10% or more to projected operating income/losses for any year in the Business Plan. 

“Meeting” has the meaning set forth in Section 2.2.1 

“NA & EU Division Manager” has the
meaning set forth in Section 3.2.6. 
 “NBZ” has the meaning set
forth in the preamble. 
 “Net Cash Flow” means, for any period, Gross
Revenues for such period minus Operating Expenses for such period. 
 “Nissin”
has the meaning set forth in the preamble. 
 “Nissin Kogyo Change in
Control” means if one or more Persons acting in concert acquire directly or indirectly a majority of the outstanding shares of any Party of the Nissin Parties. 

“Nissin Kogyo Designee” has the meaning set forth in Section 2.6. 

“Nissin Holding” has the meaning set forth in the preamble. 

“Nissin Organization” has the meaning set forth in Section 4.2. 

“Non-Terminating Party” has the
meaning set forth in Section 6.4.2. 
 “Non-Terminating
Party’s Interests” has the meaning set forth in Section 6.4.3. 

“Offeree” has the meaning set forth in Section 6.3.1. 

“Offeror” has the meaning set forth in Section 6.3.1. 

“Officer” means a duly appointed officer of a Company. 

  
 36 

 “Operating Expenses” means,
with respect to any Company for any period, all costs and expenses paid or incurred during such period by such Company in the ordinary course of its business, together with amounts used to replenish and fund the Reserves. 

“Option Period” has the meaning set forth in Section 6.3.2. 

“Person” means any individual or any corporation, association, partnership,
limited liability company, joint venture, joint stock or other company, business trust, trust, organization, Governmental Authority or other entity of any kind. 

“Profits” and “Losses”
means, for each fiscal year or other period, an amount equal to the applicable Company’s taxable income or loss for such year or period determined in accordance with applicable laws and regulations. 

“Property” means all assets owned by a Company and forming a part of or in
any way related to or used in connection with the ownership, operation and management of the business of such Company, including, without limitation, all real and personal property. 

“Related Party” means (1) Autoliv, Autoliv ASP, Autoliv AB, Autoliv
Holding or any of their respective Affiliates but excluding the Companies and Akehai Kogyo Kabushiki Kaisha, (2) Nissin, NBZ, Nissin Holding or any of their respective Affiliates, and (3) Persons in which a Person or Persons identified in
clauses (1) or (2) of this definition, individually or collectively, have a direct or indirect equity interest of more than twenty five percent (25%). 

“Reserves” means, with respect to any period, the amount of funds set aside,
or amounts allocated during such period, for (a) funding reserves for contingent liabilities, working capital, repairs, replacements, renewals, (b) paying taxes, insurance, debt service, or other costs or expenses incidental to the
ownership or operation of the Company, and (c) any other purposes deemed by the Steering Committee necessary or appropriate to meet the current or anticipated future needs of the applicable Company. 

“Share Purchase Agreement” has the meaning set forth in the recitals. 

“Senior Autoliv Representative” means the member of the Steering Committee
appointed by the Autoliv Parties that occupies the position of greatest authority within the organizational structure of Autoliv. 

“Senior Nissin Kogyo Representative” means the member of the Steering
Committee appointed by Nissin that occupies the position of greatest authority within the organizational structure of Nissin. 

“Senior Representatives” means Senior Nissin Kogyo Representative and Senior
Autoliv Representative. 

  
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 “Steering Committee” has the definition in
Section 1.3. 
 “Subsidiary” means, with respect to a Person, all
those corporations, associations, or other Persons Controlled by such Person. 
 “Terminating
Party” has the meaning set forth in Section 6.4.2. 

“Terminating Party’s Interests” has the meaning set forth
in Section 6.4.3. 
 “Termination Closing Date” has the meaning set
forth in Section 6.4.4. 
 “Thai Designated Party” has the meaning
set forth in the recitals. 
 “Trade Secrets” means, in addition to any information covered by any
definition of “trade secrets” or any equivalent term under state, local or federal law, information, without regard to form, including, but not limited to, technical or non-technical data, a formula, a pattern, a compilation, a program, a
device, a method, a technique, a drawing, a process, financial data, financial plans, product plans, or a list of actual or potential customers or suppliers which is not commonly known by or available to the public and which information:
(a) derives economic value, actual or potential, from not being known to, and not being readily ascertainable by proper means by, other Persons who can obtain economic value from its disclosure or use; and (b) is the subject of efforts
that are reasonable under the circumstances to maintain its secrecy. Such information also shall include, but not be limited to, technical information regarding the Companies’ products and product development, product formulas, current and
future development and expansion or contraction plans of the Companies, information concerning the legal affairs of the Companies and certain information concerning the financial affairs of the Companies. “Trade Secrets” shall not include
information that has become generally available to the public by the act of one who has the right to disclose such information without violating any right or privilege of the Companies. 

“Transfer” means, as a noun, any voluntary or involuntary transfer, sale, pledge, hypothecation, or
other disposition and, as a verb, voluntarily or involuntarily to transfer, sell, pledge, hypothecate, or otherwise dispose of, whether for consideration or gratuitously. 

9.2 Matters of Construction 

Unless otherwise indicated to the contrary in this Agreement by the context or use thereof: (a) the words, “herein,”
“hereto,” “hereof” and words of similar import refer to this Agreement as a whole and not to any particular section or paragraph of this Agreement; (b) references in this Agreement to sections or paragraphs refer to
sections, articles or paragraphs of this Agreement; (c) headings of sections are provided for convenience only and should not affect the construction or interpretation of this Agreement; (d) words importing the singular shall also include
the plural, and vice versa; (e) the words “include,” “includes,” and “including” shall be deemed to be followed by the phrase “without limitation”; and (f) “or” shall include the meanings
“either” or “both.” 

  
 38 

 9.3 Miscellaneous. 

9.3.1 Expenses. Except as otherwise specifically provided in this Agreement, the Parties shall pay their respective fees and expenses
in connection with the transactions contemplated by this Agreement. 
 9.3.2 Notices. All notices, demands, requests, consents or
other communications required or permitted to be given or made under this Agreement must be in writing and signed by the Party giving the same and are deemed given or made upon receipt (a) when transmitted via facsimile, graphic scanning or
other telegraphic communication, (b) when hand delivered, or (c) when sent by overnight delivery service, in each case to the intended recipient as indicated in Exhibit D to this Agreement or to any other address of which prior
written notice has been given. 
 9.3.3 Severability. In the event of the invalidity of any provision of this Agreement, such
provision is deemed stricken from this Agreement, which will continue in full force and effect as if the offending provision were never a part of this Agreement. For the avoidance of doubt, the terms and condition of this Section 9.3.3 shall
not apply to Section 7.4. 
 9.3.4 Benefits and Burdens. No Party to this Agreement may assign any rights or obligations under
this Agreement without the prior written consent of all of the other Parties. 
 9.3.5 Applicable Law. Notwithstanding the place
where this Agreement may be executed by any of the Parties, the Parties expressly agree that all the terms and provisions of this Agreement are construed under and governed by the Laws of Japan. 

9.3.6 Dispute Resolution. All claims arising out of or relating to this Agreement shall be finally settled under the Rules of
Arbitration of the International Chamber of Commerce. In addition, the Parties agree that the arbitration shall be conducted according to the IBA Rules on the Taking of Evidence in International Commercial Arbitration. The arbitral tribunal shall be
composed of three (3) arbitrators in accordance with the Rules. The language of the arbitration shall be English. The seat and venue of the arbitration shall be Singapore. The Parties agree that the arbitration proceedings and any award shall
be confidential. Each Party shall bear its own fees and costs associated with the arbitration. 
 9.3.7 Entire Agreement. This
Agreement, together with its Exhibits, constitutes the entire agreement of the Parties with respect to matters set forth in this Agreement and supersedes any prior understanding or agreement, oral or written, with respect to such matters. 

  
 39 

 9.3.8 Agreement in Counterparts. This Agreement may be executed in several counterparts
and all so executed constitute one Agreement, binding on all the Parties, notwithstanding that all the Parties are not signatories to the original or the same counterpart. 

9.3.9 Amendment. Any amendment to this Agreement must be in writing and signed by all Parties. 

9.3.10 Further Assurances. Each Party agrees to execute and deliver all such further instruments and do all such further acts as the
Steering Committee deem advisable to effectuate this Agreement. 
 9.3.11 Termination and Survival. If a Party hereto ceases
to be a Party in accordance with the terms of this Agreement, then this Agreement shall become null and void and of no further force and effect. Provided however that, the termination or expiration of this Agreement shall not release any Party
hereto from any liability or obligation which has already accrued as of or before the effective date of termination or expiration, nor constitute a waiver or release of, or otherwise be deemed to prejudice or adversely affect, any rights, remedies
or claims which a Party may have hereunder, or which may arise out of or in connection with such termination or expiration. The rights and obligations of the Parties under any other provision of this Agreement that is clearly intended to survive
this Agreement shall survive any termination or expiration of this Agreement, and any such termination or expiration of this Agreement shall only be effective prospectively and shall not affect the validity of the transactions conducted under this
Agreement before such termination or expiration. 
 9.3.12 Order of Precedence. In the event of any inconsistency or discrepancy
between this Agreement and any other materially related agreement by and between Autoliv/Autoliv ASP and Nissin Kogyo and any other agreement referred to in this Agreement, this Agreement shall take precedence. 

9.3.13 Cooperation on Future Direction. The Parties agree to cooperate in good faith on the operation of the Companies and intend to
discuss the future of the JV Business and the Companies from time to time. 

  
 40 

 

 
 IN WITNESS WHEREOF, the parties hereto have entered into this Agreement as of the date first above written. AUTOLIV ASP By: Name: STEVEN
RODE Title: PRESIDENT, PASSIVE SAFETY Vice President 

  
 41 

 

 
 (Joint Venture Agreement) NISSIN KOGYO CO., LTD. By: Eiji Okawara Name: Eiji Okawara Title: President and Representative Director

  
 42 

 

 
 AUTOLIV AB BY: Name: STEVEN RODE Title: PRESIDENT, PASSIVE SAFETY ELECTRONICS. ~>k Vice President Autoliv A

  
 43 

 

 
 AUTOLIV HOLDING, INC. By: Name: STEVEN RODE Title: PRESIDENT, PASSIVE SAFETY ELECTRONICS Michael S. Vice President Autoliv ASP, I

  
 44 

 (Joint Venture Agreement) 

 

			
	 ZHONGSHAN NISSIN INDUSTRY CO., LTD.

		
	By:	 	/s/ Yadong Chen
	Name:	 	  
 Yadong Chen

	Title:	 	Deputy general manager

  
 45 

 (Joint Venture Agreement) 

 

			
	 NISSIN KOGYO HOLDINGS USA, INC.

		
	By:	 	/s/ Eiji Okawara
	Name:	 	  
 Eiji Okawara

	Title:	 	President

  
 46 

 IN WITNESS WHEREOF, each of the following companies hereby acknowledges and agrees to be
bound by the terms and conditions set forth in this Agreement: 
  

			
	 AUTOLIV NISSIN BRAKE SYSTEMS JAPAN

		
	By:	 	/s/ John T. Jensen
	Name:	 	  
 John T. Jensen

	Title:	 	Representative Director

  
 47 

 (Joint Venture Agreement) 

 

			
	 AUTOLIV NISSIN BRAKE SYSTEMS AMERICA

		
	By:	 	/s/ Robert Bisciotti
	Name:	 	  
 Robert Bisciotti

	Title:	 	President

  
 48 

 (Joint Venture Agreement) 

 

			
	AUTOLIV NISSIN BRAKE SYSTEMS (ZHONGSHAN) CO., LTD.
		
	By:	 	/s/ Yuzo Takatera
	Name:	 	  
 Yuzo Takatera

	Title:	 	Chairman of the board

  
 49 

 (Joint Venture Agreement) 

 

			
	AUTOLIV NISSIN BRAKE RESEARCH ASIA CO., LTD.
		
	By:	 	/s/ Hideyuki Matsumoto
	Name:	 	  
 Hideyuki Matsumoto

	Title:	 	Authorized Director

  
 50EX-10.7

 Exhibit 10.7 

THIS AGREEMENT is made between 
  

	1.	Veoneer, Inc. (“the Company”) 

 And 

 

	2.	Mr. Jan Carlson (“the Appointee”). 

 WHEREBY IT IS AGREED as follows: 

 

	1.	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 Company hereby agrees to employ the Appointee and the Appointee hereby agrees to serve the Company as Chief Executive Officer and
President, from the Effective Date and thereafter unless and until terminated by either party hereto giving to the other 18 calendar months’ (in the case of the Company) or 12 months’ (in the case of the Appointee) previous notice in
writing to terminate the employment expiring at the end of the notice time or unless termination is made in accordance with the Severance Agreement; provided, however, that in the event of a termination by the Company for “Cause
as defined in the Severance Agreement (dated as of the Effective Date), the 18-month notice requirement provided in the foregoing provision shall not apply and the Appointee’s termination of employment
shall be effective immediately. 
 If the Company terminates the employment of the Appointee for whatever reason unless the termination is
for “Cause” or is caused by a breach of the provisions in this Agreement, the Company shall in addition to any further compensation payments to the Appointee during the 18 months notice period and any other benefit payable to the
Appointee, pay a lump sum severance payment equal to one (1.0) times the sum of the amounts described in clauses (i) through (iv) of Section 6.2 of the Severance Agreement determined as of the Date of notice of Termination. The said
employment shall in any event terminate on the last day of the month preceding the 65th birthday of the Appointee. 
 For the purpose of this
section, the Company will have been deemed to have terminated the employment of the Appointee under circumstances entitling the Appointee to the additional payment described in the last sentence of the preceding paragraph if the Appointee terminates
employment for “Good Reason.” “Good Reason” shall exist if any of the following circumstances exist and the Appointee thereafter terminates employment: (1) 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 as of the Effective Date; (2); a reduction by the Company in the
Executive’s annual base salary as in effect on the Effective Date or as the same may be increased from time to time; (3) the following individuals cease for any reason to constitute a majority of the number of directors then serving:
individuals who, on the Effective Date, 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 Effective Date or whose appointment, election or nomination for election was previously so approved or recommended;
(4) 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 Effective Date 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;.(5) 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; (6) the failure by the Company to continue in effect any
compensation plan in which the Executive participates immediately prior to the Effective Date 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 Autoliv, Inc. dated September 11, 1997 or any substitute plans adopted prior to the Effective Date, 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 Effective Date; or (7) 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 Effective Date, 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 and Autoliv, Inc. in accordance with the Company’s normal vacation policy in effect at the time of the Effective Date. 

A termination shall not be treated as a termination for Good Reason (1) if the Appointee shall have consented in writing to the occurrence
of the event giving rise to the claim of termination for Good Reason, or (2) unless the Appointee shall have delivered a written notice to the Board within three months of his having actual knowledge of the occurrence of one of such events
stating that he intends to terminate his employment for Good Reason and specifying the factual basis for such termination, and such event, if capable of being cured, shall not have been cured within 30 days of the receipt of such notice. 

 

	2.	During the continuance of his employment hereunder the Appointee shall unless prevented by ill health, injury or other incapacity and except when absent on authorized holiday use his best endeavors to promote the
interests of the Company and those of its subsidiary and associated companies and shall during normal business hours devote the whole of his time, attention and abilities to the business and affairs of the Company and its subsidiary and associated
companies. In addition, the Appointee 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; the Appointee shall not receive any remuneration in
addition to that set out in Clause 4 hereof in respect of his work during such time. 

  

	3.	During the continuance of his employment hereunder the Appointee shall not without the consent of the Chairman of the Board of Directors directly or indirectly be engaged, concerned or interested in any business in a
manner that would conflict with Clause 2 hereof either alone or jointly with or as a director, manager, agent or servant of any other person, firm or company, provided that nothing in this clause shall preclude the Appointee from holding
shares, loan, stock or other securities in an entity as an investment. 

  

	4.	As remuneration for his services hereunder, the Appointee is entitled to: 

  

	 	a)	a gross salary of SEK 12,599,575 per annum which is subject to annual reviews starting 1st of January 2019. 

 

	 	b)	an annual bonus in accordance with the Company’s bonus program at a target rate of 75% of gross salary and which is subject to annual reviews starting 1st
of January 2019. 

  

	 	c)	participate in the Company’s stock incentive plan and such subsequent plans at terms and conditions set forth in such plans and with grants in the discretion of the Company’s Compensation Committee and
the Board of Directors of the Company. 

  

	 	d)	A car for use in connection with his duties under this Agreement and the Company shall bear all petrol, maintenance and repair costs, taxes and insurance in relation thereto, including the cost of all private mileage.

  

	 	e)	A Medical Care Insurance for himself and his spouse. 

  

	 	f)	normal conditions of Employment as issued by the Company apply. 

  

	5.	The Company shall pay to or reimburse the Appointee for all travelling, hotel and other expenses wholly exclusively and necessarily incurred by him in the performance of his duties under this Agreement. The Appointee
shall on being so required provide the Company with vouchers or other evidence of actual payment of the said expenses. 

  

	6.	The Appointee is entitled to yearly holidays amounting to 30 days. The Swedish holiday law regulates such holiday entitlement including extra vacation pay. 

 

	7.	The Appointee has the right to retire on the last day of the month preceding his 60th birthday, and if not otherwise agreed upon, the obligation to retire on the last
day of the month preceding his 65th birthday. The Company shall pay pension- and sick insurance fees corresponding to 48% of the base salary plus additional tax payments on premiums. Pension
contribution can be increased via a cost neutral gross deduction from the salary. This is a defined contribution solution hence no levels of benefits are guaranteed. 

	8.	Business or Trade Information. The Executive shall not during or after the termination of his employment hereunder disclose to any person, firm of company whatsoever or use for his own purpose or for any purposes other
than those of the Company any information relating to the Company or its Affiliates or its or their business or trade secrets of which he has or shall hereafter become possessed. These restrictions shall cease to apply to any information which may
come into the public domain (other than by breach of the provisions hereof). In the event that the Executive does not comply with this Section 8, the Company shall be entitled to damages equal to six (6) times the average monthly Base
Salary that the Executive received during the preceding twelve (12) months, if the Executive continues to be employed, or during the last twelve (12) months prior to his Date of Termination, if the Executive’s employment has
terminated; provided, however, that nothing in this Section 8 shall preclude the Company from pursuing arbitration in accordance with Section 13 herein and seeking additional damages from the Executive in the event that the
Company is able to demonstrate to the arbitrators that the value of the damages incurred by the Company due to the Executive’s violation of this Section 8 exceed the aggregate value of the damages paid by the Executive to the Company
pursuant to the foregoing provision. For the purpose of this paragraph “Company” includes Autoliv, Inc. 

 The Appointee shall upon
the termination of his employment hereunder for whatever reason immediately deliver up 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 company within the Group or which may have been prepared by him or have come into his possession in the course of his employment. 
  

	9.	If the Company determines in good faith that the disability (as defined below) of the Appointee has occurred during the term of this Agreement, it may give to the Appointee written notice of its intention to terminate
the Appointee’s employment, provided that, the 18-month notice period described in section 1 shall continue to apply. “Disability” shall mean the inability of the Executive, as reasonably
determined by the Board, to perform the essential functions of his regular duties and responsibilities, with or without reasonable accommodation, due to a medically determinable physical or mental illness which has lasted for a period of six
(6) consecutive months. At the request of the Appointee or his personal representative, the Board’s determination that the disability of the Appointee has occurred shall be certified by a physician mutually agreed upon by the
Appointee, or his personal representative, and the Company. 

 The Appointee’s employment shall terminate automatically upon his death or
retirement. 
  

	10.	The Appointee must not during 12 months following the termination of this employment (i) accept employment within such part of a competitor of the Company, so that it can make use of such confidential information
relating to the Company that the Appointee has obtained in his employment with the Company, (ii) engage himself as partner or owner in such competitor of the Company nor act as advisor to such competitor. For the purpose of this paragraph
“Company” includes Autoliv, Inc. 

 This non-competition engagement is not
applicable when 
  

	 	a)	the Company has given notice of terminating the employment, unless the termination is for “Cause” or is caused by a breach of the provisions in this Agreement by the Appointee 

 

	 	b)	the Appointee has given notice of terminating the employment because of the Company’s breach of the provisions in this Agreement 

Breach of the provisions means such a situation when the other party has the right to terminate this Agreement with immediate effect. 

If the Appointee does not comply with this non-competition engagement, the Company is entitled to
damages amounting to 6 times the average monthly gross salary that the Appointee has received during the last 12 months before leaving the Company. 

If this Agreement is terminated for any other reason than retirement under circumstances where the
non-competition engagement is applicable, the Company shall pay, as a compensation for the inconvenience of the non-competition engagement, per month, the difference
between the Appointee’s monthly gross salary when the employment terminates and the lower salary that the Appointee may earn in a new employment. This payment shall not exceed 60 percent of the Appointee’s gross salary when leaving
the Company and the maximum time for the payments is 12 months. The Appointee has continuously to inform the Company of his gross salary in his new employment. This provision shall apply also if the Appointee has got no new employment. No payments
will be made after retirement. 

	11.  a)	The general nature of any discovery, invention, secret process or improvement made or discovered by the Appointee during the period of the Appointee’s employment by the Company (hereinafter called “the
Appointee’s Inventions”) shall be notified by the Appointee to the Company forthwith upon it being or discovered. 

  

	 	b)	The entitlement as between the Company and the Appointee to the Appointee’s Inventions shall be determined in accordance with the current Swedish Patent Act and the Appointee 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 Appointee’s Inventions are to be assigned to the Company, the Appointee 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 or join with the Company or other persons required by the Company in applying for letters, patent or other equivalent protection in Sweden and in any other part of the world of such Appointee’s Inventions. 

 

	12.	This Agreement takes effect in substitution of all previous agreements and arrangements with the exception of Severance Agreement, whether written, oral or implied between the Company and the Appointee relating to the
employment of the Appointee without prejudice to any rights accrued to the Company or the Appointee prior to the commencement of his employment under this Agreement. For the purpose of this paragraph “Company” includes Autoliv, Inc.,
provided that this Agreement does not supersede any agreements between Appointee and Autoliv, Inc. relating to his service as a director on or after the Effective Date. 

 

	13.	Disputes regarding this Agreement shall be settled by arbitration in accordance with the Swedish Arbitration Act. The arbitration shall take place in Stockholm. 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 arbitration, whether
initiated by the Company or by the Appointee, including the Appointee’s costs for solicitor, shall be borne by the Company. 
 This
Agreement shall be governed by and construed in accordance with Swedish law including its rules as to the conflict of laws. 
  

	14.	Appointee Retention Payment. In addition to any benefits that Appointee may otherwise be entitled to under this Agreement, Appointee may become entitled to an additional payment (the “Retention Payment”) under
the circumstances described in this section. The value of the Retention Payment is $6 million, and shall consist of a component denominated and payable in the form of $3 million of cash (the “Cash Component”) and a component
denominated in the form of the number of restricted stock units, including dividend equivalents, of the Company with a value equal to $3 million on the Effective Date (determined based on the closing price of the Company’s common stock on
the Effective Date) and payable in the form of cash with a value equal to the relevant number of shares of the Company’s common stock on the applicable vesting date (determined based on the closing price of the Company’s common stock on
each applicable vesting date) (the “RSU Component”). If Appointee remains employed through July 1, 2019 he shall receive 33-1/3% of the Cash Component and
33-1/3% of the RSU Component on that date, if he remains employed through July 1, 2020 he shall receive 33-1/3% of the Cash Component and 33-1/3% of the RSU Component on that date and if he remains employed through July 1, 2021, he will receive the remainder of the Cash Component and the RSU Component on that date. 

In the event that prior to July 1, 2021 (i) Appointee is given notice of termination (date of notice) by the Company for reasons other
than for (a) “disability” as defined in this agreement or (b) “Cause” as defined in the Severance Agreement, or (ii) Appointee gives notice of termination (date of notice) for reasons that constitute “Good Reason”
as defined in section 1, then all retention payments made to date shall be deducted from any payments to the Appointee due under this Agreement following the date of notice and the retention payments to be made after the date of notice will be
forfeited and not be paid. If Appointee dies prior to July 1, 2021 then retention payments shall be governed by the paragraph below. 

In the event that prior to July 1, 2021 Appointee dies or is given notice of termination (date of notice) by the Company for reason of his
disability as defined in this agreement any remaining unpaid retention payments shall be accelerated and paid in a single lump sum to the Appointee or the Appointee’s estate, as applicable, within fifteen (15) days following such notice of
termination or death, as applicable. 
 If the Appointee gives notice of termination and resigns or gives notice of his retirement prior to
July 1, 2021 the retention payments to be made after the date of notice will be forfeited and not be paid. 

	15.	Autoliv Plan. Any outstanding awards to the Appointee under the Autoliv Plan shall vest, be exercisable, expire and/or be forfeited from and after the Spin-Off as determined
under the terms and conditions of the Autoliv Plan and such awards, as such terms and conditions may be amended by the Compensation Committee of the Board of Directors of Autoliv in connection with the
Spin-Off, 

  

	16.	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. 
 (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. 

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

	
	/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
	GVP Human Resources and Sustainability, Autoliv, Inc. authorized on behalf of Veoneer, Inc.

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