Document:

Document

Exhibit 10.2

			
	

JOINT VENTURE AGREEMENT

dated 1 July 2020
			
	

ZTWO Company AB

and

VEONEER SWEDEN AB

(as the Shareholders)

in the presence of

ZENUITY AB

regarding 

ZENUITY AB

Table of Contents
						
	1.    DEFINITIONS AND CONSTRUCTION
	2

	2.    PURPOSE OF THE JV COMPANY
	7

	3.    THE BUSINESS OF THE JV COMPANY
	8

	4.    FINANCING OF THE JV COMPANY
	10

	5.    MANAGEMENT OF THE JV COMPANY
	10

	6.    ALLOCATION OF FUNDS AVAILABLE FOR DISTRIBUTION
	16

	7.    DISPOSAL OF SHARES; ASSIGNMENT
	17

	8.    REDEMPTION
	18

	9.    VALUATION
	19

	10.    CONFIDENTIALITY
	20

	11.    TERM AND TERMINATION
	21

	12.    DISSOLUTION OF THE SHAREHOLDERS' CO-OPERATION
	22

	13.    NOTICES
	22

	14.    RELATION TO THE ARTICLES OF ASSOCIATION AND THE COMPANIES ACT
	23

	15.    GENERAL PROVISIONS
	24

	16.    GOVERNING LAW AND DISPUTE RESOLUTION
	25

Exhibits:

						
	Exhibit A:
	Articles of Association on the Effective Date
	Exhibit B:
	List of certain Intellectual Property Rights created, invented, authored, developed, collected, acquired, or otherwise owned or controlled by the JV Company during, and in accordance with the terms of, the Former JVA and up until the Effective Date
	Exhibit C:
	VNE Zenuity Foreground IP License Agreement
	Exhibit D:
	Z2Co Zenuity Foreground IP License Agreement
	Exhibit 5.3.3:
	Instructions and Rules of procedure for the Board as at the Effective Date

			
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This JOINT VENTURE AGREEMENT is dated 1 July 2020 and made between: 
(1)ZTWO Company AB, a Swedish limited liability company, reg. no. 559228-9358, having its registered office at Lindholmspiren 2, 417 56 Gothenburg, Sweden (“Z2Co”); and
(2)VEONEER SWEDEN AB, a Swedish limited liability company, reg. no. 559131-0841, having its registered office at Wallentinsvägen 22, 447 37, Vårgårda, Sweden (“VNE”).
Z2Co and VNE are hereinafter jointly referred to as the “Shareholders” and individually as a “Shareholder”.
In the presence of:
(3)Zenuity AB, a Swedish limited liability company, reg. no. 559073-6871, having its registered office at Lindholmspiren 2, 417 56 Gothenburg, Sweden (the “JV Company”)
Background
A.Volvo Car Corporation, a Swedish limited liability company, reg. no. 556074-3089, having its registered office at Assar Gabrielssons Väg, 418 78 Gothenburg, Sweden (“Volvo Cars”) and its Affiliates (as defined below) are worldwide developers and manufacturers of passenger cars and are engaged in the development, manufacturing, marketing and sales of such cars and solutions related thereto.
B.VNE and its Affiliates (as defined below) are worldwide leading developers and producers of systems and equipment for personal safety in motor vehicles, including electronics, such as electronic control units, sensors for safety systems and solutions within the active safety area.
C.Volvo Cars and Autoliv Development AB, to which VNE was substituted on 29 June 2018, have set up a cooperation between them with a common strategic rationale to pool resources to develop advanced driver assistance systems (“ADAS”) and highly automated driving systems (“HAD”) functionality to the automotive market and to commercialize such technology through VNE acting as an exclusive sales channel to third parties. Accordingly, they entered into a number of related agreements, including: (i) on 20 December 2016, into an investment agreement, and (ii) then, on 18 April 2017, into a joint venture agreement and certain ancillary agreements, to form the 50/50 owned JV Company (the “Former JVA”) and into several license agreements with the JV Company, to grant a license to the JV Company with respect to their Background Intellectual Property Rights (as defined in such agreements).
D.Further to a strategic review of the JV Company’s activities conducted by VNE and Volvo Cars, they decided to split the business of the JV Company and its Subsidiaries (the “JV Group”), as existing at the Effective Date, into two parts: 
(i)one initially engaging in ADAS business based on VNE’s smart cameras, owned 100% (directly or indirectly) by VNE or a wholly-owned subsidiary of VNE; and 
(ii)one initially engaging primarily (considering small deliveries to Volvo Cars, e.g. for 519A and 519G (mostly in the VMC area)) in ADAS and AD solutions operating on a Nvidia-based core computer, owned 100% (directly or indirectly) by Volvo Cars or a wholly-owned subsidiary of Volvo Cars;

			
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(the “Separation”).
E.On the Effective Date, the Shareholders and the JV Company have, amongst others, entered into several agreements, including the transaction framework agreement (the “Transaction Framework Agreement”), and terminated the Former JVA and the Former License Agreements, to complete the Separation of the JV Group (the “Transaction”).
F.On the Effective Date, as part of the Transaction, Volvo Cars has contributed all its Shares to Z2Co and, as a result, the share capital of the JV Company is allocated as set out in Clause 2.8. 
G.In the context of the Transaction, the Shareholders have agreed to enter into this Agreement to govern their relationship and respective rights and obligations with respect to the JV Company, in replacement of the Former JVA.
1.DEFINITIONS AND CONSTRUCTION
1.1     Unless otherwise expressly required by the context, the following capitalized terms shall have the following meanings:
“Accounting Principles” means (i) Swedish GAAP in respect of the JV Company (and in case of any new subsidiary of the JV Company incorporated in Sweden); and (ii) for the purposes of the JV Company reporting to the Shareholders; (a) IFRS (Z2Co) and (b) US GAAP (VNE), respectively.
“ADAS” is defined in Recital C.
“Affiliate” means with respect to a Shareholder: any legal entity that Controls, is Controlled by, or under common Control with, the Shareholder (except JV Company); in each case only for so long as such Control exists. For the avoidance of doubt, no third parties are considered as Affiliates hereunder. 
“Agreement” means this Joint Venture Agreement, including all exhibits, amendments and supplements to it and its exhibits made or prepared in accordance with the provisions hereof, as the same may be amended from time to time in accordance with its terms.
“Articles of Association” means the JV Company’s articles of association, as amended from time to time, including on the Effective Date, as attached as Exhibit A.
“Autoliv Background IP Assignment Agreement” means the Intellectual Property Rights assignment agreement entered into between the JV Company and Autoliv (and subsequently VNE), dated 18 April 2017.
“Board” means the JV Company’s board of directors.
“Business” shall have the meaning set forth in Clause 2.2.
“Business Day” means a day (other than a Saturday, Sunday or public holiday) on which banks are generally open for business in Sweden and the United States, other than for internet banking and/or telephone services only.
“Chairman” means the chairman of the Board.

			
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“Companies Act” means the Swedish Companies Act (Sw. Aktiebolagslagen (2005:551)), in force from time to time.
“Confidential Information” means all information of any kind or nature (whether written, oral, electronic or in any other form), including, without limitation, the contents of this Agreement, any financial information, trade secrets, customer lists or other information, which a Shareholder from time to time may receive or obtain as a result of entering into or performing its obligations pursuant to this Agreement, relating to the other Shareholder, its Affiliates or the JV Company.
“Control” means the possession, directly or indirectly, of 50% or more of the voting rights or other equity interests of any other person; or the power to appoint the majority of the members of the board of directors of any other person, or the power to cause the direction of management of any other person; or otherwise the actual control of any other person through the ownership, by contract, trustee or otherwise.
“Controller” shall have the meaning set forth in Clause 5.3.1.
“Cooperation and Cost Sharing Agreement” shall have the meaning set forth in Clause 3.2.2(f).
“Deadlock Matter” shall have the meaning set forth in Clause 5.8.1.
“Deadlock Notice” shall have the meaning set forth in Clause 5.8.1.
“Default Notice” shall have the meaning set forth in Clause 8.1.1.
“Defaulting Shareholder” shall have the meaning set forth in Clause 8.1.1.
“Effective Date” means the date hereof. 
“Escalation Committee” shall have the meaning set forth in Clause 5.8.2.
“Former JVA” shall have the meaning set forth in Recital C.
“Former License Agreements” means the former (i) VNE background intellectual property license agreement, (ii) VNE background patent license agreement, (iii) VNE master commercialization license agreement, (iv) VCC background intellectual property license agreement, (v) VCC background patent license agreement, (vi) VCC master commercialization license agreement.
“HAD” is defined in Recital C.
“IFRS” means the principles, rules, policies, practices, procedures and methods for Swedish companies applying the International Financial Reporting Standards, and as further specified in Volvo Cars’ Financial Manual (as amended from time to time).
“Insolvency Notice” shall have the meaning set forth in Clause 8.2.1.
“Insolvent Shareholder” shall have the meaning set forth in Clause 8.2.1.
“Intellectual Property Rights“ means any and all company names, business names, copyrights (including rights in computer software), semiconductor topography rights, 

			
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domain names, know-how, patents and utility models (and any continuation, continuation-in-part, divisional, re-examined or reissued patent, foreign counterpart or renewal or extension relating thereto), rights in databases, designs and inventions, trademarks, trade names, trade secrets and all other intellectual and industrial property rights of a corresponding or similar nature, which may presently or in the future exist anywhere in the world, whether registered or not, and registered includes any applications for registration and renewals, as well as any licenses of any of the foregoing.
“IP Action” means any decision affecting the validity, enforceability, or scope of any of the JV Intellectual Property Rights which may involve a capital expenditure by JV Company, including (without limitation) decisions relating to: filing foreign counterpart applications; making maintenance, annuity and renewal payments; filing continuation, request for continued examinations, or divisional applications; filing registration applications; making priority filings; filing statements of use, extensions of time, express abandonments, disclaimers and the like; participating in, defending, or initiating an opposition or other administrative proceedings; and initiating any enforcement proceedings.
“IP Action Owner” shall have the meaning set forth in Clause 5.4.5.
“JV Company” shall have the meaning set forth in the preamble thereof.
“JV Intellectual Property Rights” means any and all: 
(i)Intellectual Property Rights assigned to the JV Company upon its incorporation under the Former JVA (via the Autoliv Background IP Assignment Agreement and the Volvo Cars Background IP Assignment Agreement); 
(ii)Intellectual Property Rights created, invented, authored, developed, collected, acquired, or otherwise owned or controlled by the JV Company during, and in accordance with the terms of, the Former JVA and up until the Effective Date, including (without limitation) those listed in Exhibit B; and 
(iii)New IP.

“JV Group” is defined in Recital D. 
“Manager” shall have the meaning set forth in Clause 5.3.1.
“Mandatory Deadlock Matter” shall have the meaning set forth in Clause 5.8.2.
“New Direct License Agreements” or “NDLAs” means the VNE Zenuity Foreground IP License Agreement and the Z2Co Zenuity Foreground IP License Agreement.
“New IP” means any and all Intellectual Property Rights that: (i) are first applied for or created on or after the Effective Date from any IP Action taken hereunder; or (ii) issue from any of the JV Intellectual Property Rights existing before the Effective Date through no action of the Shareholders hereunder; (i)-(ii) all during the term of this Agreement.
“Non-Owner” shall have the meaning set forth in Clause 5.4.5.

			
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“Non-Transferable Assets” shall have the meaning set forth in Clause 2.2(b).
“Person” means an individual or a corporation, partnership, association, trust or any other entity or organization, including any government, governmental agency and other public body.
“Redeeming Shareholder” shall have the meaning set forth in Clause 8.2.1.
“Requesting Shareholder” shall have the meaning set forth in Clause 8.1.1.
“Residual Assets” shall have the meaning set forth in Clause 2.2(b).
“SCC” means the Stockholm Chamber of Commerce.
“Separation” is defined in Recital D. 
“Share” means a share issued in the capital of the JV Company irrespective of class and any other instrument convertible into or exchangeable for such share and any other right to subscribe for such share.
“Shareholder” shall have the meaning set forth in the preamble hereof.
“Subsidiaries” means (i) Zenuity GmbH, with registered office at Theresienhöhe 30, c/o Blitzstart Holding AG, 80339 München, a limited liability company incorporated under the laws of Germany; (ii) Zenuity, Inc., with a registered office at 1209 Orange St., Wilmington, New Castle County, 19801 Delaware, a limited liability company incorporated under the laws of the State of Delaware, United States; and (iii) Zenuity Software Technology (Shanghai) Ltd., with a registered office at Room K1, 5 floor, No. 277 Huqingping road, Minhang District, Shanghai, China, a limited liability company incorporated under the laws of People's Republic of China.
“Swedish GAAP” means the Swedish generally accepted accounting principles, rules, policies, practices, procedures and methods for companies applying K3.
“Transaction” is defined in Recital E.
“Transaction Documents” means the agreements entered into to effectuate the Transaction.
“Transaction Framework Agreement” is defined in Recital E. 
“Transitional Services Agreement” shall have the meaning set forth in Clause 3.2.2(f).
“Transfer” means any transaction, including any undertaking to transact, with or without consideration, whether voluntary or court-ordered or by way of law, which might alter, now or in the future, directly or indirectly, the share ownership of and/or the voting rights in the JV Company, by way of a transfer (sale, loan, contribution, donation, partition, exchange, auction or any other means), exercise, conversion of the Shares, or by any other means, of the ownership of Shares, or of any rights over Shares (including any voting, economic or dividend rights), including, but not limited to, transfers as a result of death, gratuities, partial contributions of assets, mergers, de-mergers or any combination of these methods of transfer of ownership) as well as any grant of option, collateral, pledge, 

			
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security interest or encumbrance or creation of any third party right over the Shares; with the use of any derived form of “Transfer” to be interpreted accordingly. 
“Transfer Agreements” shall have the meaning set forth in Clause 3.2.2.
“Unidentified Assets” shall mean assets, liabilities or contracts of the JV Company (and/or the Subsidiaries) which was not listed in schedules to any of the Transfer Agreements.
“US GAAP” means the generally accepted accounting principles, rules, policies, practices, procedures and methods adopted by the U.S. Security and Exchange Commission, and as further specified in VNE's Financial Manual (as amended from time to time).
“VAB” shall have the meaning set forth in Clause 3.2.2(c).
 “VCC Share Purchase Agreement” shall have the meaning set forth in Clause 3.2.2(e).
“VNE” shall have the meaning set forth in the preamble hereof.
“VNE Share Purchase Agreement DE” shall have the meaning set forth in Clause 3.2.2(c).
“VNE Share Purchase Agreement US” shall have the meaning set forth in Clause 3.2.2(d).
“VNE Zenuity Foreground IP License Agreement” means the license agreement entered into on the Effective Date between the JV Company and VNE, to grant a license to the latter with respect to the JV Intellectual Property Rights, as attached as Exhibit C.
 “Volvo Cars Background IP Assignment Agreement” means the Intellectual Property Rights assignment agreement entered into between the JV Company and Volvo Cars, dated 18 April 2017.
 “VUS” shall have the meaning set forth in Clause 3.2.2(d).
 “Z1 Asset Transfer Agreement” shall have the meaning set forth in Clause 3.2.2(a)
“Z2 Asset Transfer Agreement” shall have the meaning set forth in Clause 3.2.2(b).
“Z2Co” shall have the meaning set forth in the preamble hereof.
“Z2Co Zenuity Foreground IP License Agreement” means the license agreement entered into on the Effective Date between the JV Company and Z2Co, to grant a license to the latter with respect to the JV Intellectual Property Rights, as attached as Exhibit D.
“ZeVu License Agreement” shall have the meaning set forth in Clause 3.2.2(h).

			
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1.2In this Agreement, words importing the singular shall include the plural and vice versa, words of any gender shall also import the other gender and words importing persons shall include legal entities and vice versa.
1.3Clauses and headings are for ease of reference only and are not to be used as an aid in the interpretation of this Agreement.
1.4Unless otherwise set out in this Agreement, references to Clauses are to Clauses of this Agreement and references to exhibits and schedules are to exhibits and schedules to this Agreement. 
1.5Unless a contrary indication appears, any reference in this Agreement to:
(i)any agreement or instrument is a reference to that agreement or instrument as amended, supplemented, extended or restated;
(ii)“including”, “in particular, “for instance” and the like shall be construed without limitation;
(iii)a reference to “law” and/or “regulation” includes any law, regulation, judgement or other legally binding requirement or rule of any governmental authority in any jurisdiction applicable to either of the Shareholders and/or any of the JV Group companies (whichever relevant); and
(iv)a provision of law or regulation is a reference to that provision as amended, supplemented or re-enacted.
2.PURPOSE OF THE JV COMPANY 
2.1.Prior to the Effective Date, the JV Company had been jointly owned and operated by VNE and Volvo Cars since its formation, for the purpose of jointly developing and commercializing ADAS and HAD software technologies, including the ownership and licensing of Intellectual Property Rights related thereto.
2.2.As from the Effective Date, the JV Company’s purpose shall be limited to:

(a)owning, managing, maintaining, protecting, prosecuting, enforcing and registering the JV Intellectual Property Rights for the benefit of the Shareholders, all in accordance with the terms and conditions of this Agreement and the NDLAs; 
(b)owning, managing, maintaining, liquidating or disposing as applicable (i) any residual assets, liabilities or contracts not included in the scope of the transfers pursuant to the Transfer Agreements and not subsequently transferred to either VNE or Z2Co as Unidentified Assets (the "Residual Assets"), and (ii) any assets, liabilities and contracts held in trust on behalf of VNE or Z2Co (the "Non-Transferable Assets") in accordance with the process relating to non-transferable assets, non-assumable liabilities and non-assignable contracts set out in the relevant Transfer Agreement(s); and
(c)managing, maintaining and ensuring the performance of the (i) Transitional Services Agreement, (ii) the Cooperation and Cost Sharing Agreement, and (iii) 

			
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the ZeVu License Agreement, as the case may be ((a)-(c) above jointly, the “Business”). 
Save with the prior consent of both Shareholders, the JV Company shall not operate any business or activities whatsoever outside the Business.
2.3.The Shareholders agree that the terms of this Agreement replace the ones of the Former JVA, which has fully terminated on the Effective Date, provided that such termination shall be without prejudice to any prior breach of the Former JVA. 
2.4.The Shareholders agree that the name of the JV Company shall remain “Zenuity AB”.
2.5.The official language of the JV Company shall be English.
2.6.The JV Company shall have its registered office and its principal office in Gothenburg, Sweden.
2.7.The Articles of Association shall provide for a fixed share capital and a fixed number of Shares (and not an interval), and the absolute numbers with respect thereto shall not change unless in accordance with this Agreement.
2.8.The JV Company shall have an issued and fully paid share capital of SEK 500,000, divided into 500,000 Shares, which shall be owned by the Shareholders as follows:
									
	Shareholder	No. of shares	Shareholding and votes (%)
	VNE	250,000	50
	Z2Co	250,000	50

2.9.Unless otherwise agreed by both Shareholders, or as an effect of the provisions herein, the allocation of Shares and votes in the JV Company (both in absolute numbers and in per cent) shall remain unchanged during the term of this Agreement. 
2.10.If the Shareholders agree to increase the share capital of the JV Company, each Shareholder shall have the right to exercise its pre-emption right to subscribe for new Shares or securities convertible into, or giving right to, Shares (as applicable) pro rata to its, at the time, existing shareholding in the JV Company.

3.THE BUSINESS OF THE JV COMPANY

3.1General

3.1.1The activities of the JV Company shall be to act as an intellectual property holding company by engaging in any activities that are necessary, beneficial, or incidental to the Business, or that otherwise may be necessary or appropriate to 

			
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protect or further develop the JV Intellectual Property Rights in accordance with the terms and conditions of this Agreement.
3.1.2The JV Company shall maintain all certifications, approvals and licenses necessary or required for the Business.
3.1.3The Business shall be conducted on sound commercial basis in accordance with the principles set forth in this Agreement and as directed by the Board, and shall comply with all applicable laws, regulations and rules.
3.1.4As of the Effective Date, the JV Company has entered into the NDLAs with respect to the JV Intellectual Property Rights. Save with the prior written consent of both Shareholders and unless otherwise expressly set forth in this Agreement, the JV Company will not sell, assign, encumber, charge, transfer, further license, grant any immunities (including, without limitation, covenants not to sue, non-asserts or the like) in respect of, or otherwise transact, any of the JV Intellectual Property Rights.
3.2.General

3.1.All arrangements between a Shareholder (or an Affiliate of a Shareholder) and the JV Company shall be transparent, and all agreements, other arrangements and business between the JV Company and a Shareholder (or an Affiliate of a Shareholder) shall when entered into be made on customary commercial terms and on arm’s length basis. The Shareholders agree that the NDLAs, the Transitional Services Agreement, the Cooperation and Cost Sharing Agreement and the ZeVu License Agreement are entered into on such terms.
3.2.On this day, the JV Company has in addition to the Transaction Framework Agreement and the NDLAs entered into the following agreements with one or both of the Shareholders (or any Affiliate thereof) with ongoing obligations for the JV Company:

(a)An asset transfer agreement with VNE regarding the transfer of certain assets, liabilities and contracts from the JV Company to VNE (the "Z1 Asset Transfer Agreement");
(b)An asset transfer agreement with Z2Co regarding the transfer of certain assets, liabilities and contracts from the JV Company to Z2Co (the "Z2 Asset Transfer Agreement");
(c)A share purchase agreement with Veoneer AB, a Swedish limited liability company, reg. no. 559131-0858, having its registered office at Box 13089, 103 08 Stockholm, Sweden, a VNE Affiliate ("VAB") regarding the transfer of all shares in Zenuity GmbH to VAB (the "VNE Share Purchase Agreement DE");
(d)A share purchase agreement with Veoneer US, Inc., with a resgistered office at 26545 American Drive, Southfield, MI 48034, a corporation incorporated under the laws of the State of Delaware, United States, a VNE Affiliate ("VUS") regarding the transfer of all shares in Zenuity Inc. to VUS (the "VNE Share Purchase Agreement US"); and
(e)A share purchase agreement with Z2Co regarding the transfer of all shares in Zenuity Software Technology (Shanghai) to Z2Co (the "VCC Share Purchase Agreement").

			
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In addition to the above, the JV Company has entered into the following agreements with one or both of the Shareholders, amongst others, with ongoing obligations for the JV Company:
(f)Transitional service agreement(s) with each of VNE and/or Z2Co in order to facilitate an orderly Separation (the "Transitional Services Agreement");
(g)A cooperation and cost sharing agreement with each of VNE, Z2Co and Volvo cars relating to parties governance and cost sharing arrangements relating to the Dell Amsterdam data cluster (the "Cooperation and Cost Sharing Agreement"); 
(h)A license agreement with VNE to grant a license to VNE with respect to the ZeVu software tool (the "ZeVu License Agreement"); and
(i)An acknowledgment agreement with Volvo Cars to clarify the Intellectual Property Rights ownership of the ZeVu software tool (the "ZeVu Acknowledgement Agreement").
The agreements listed in Clauses 3.2.2(a)-(e) shall be jointly referred to as the "Transfer Agreements", and individually a "Transfer Agreement".
3.3.The JV Company may, from time to time and subject to the prior unanimous consent of the Board, resolving pursuant to the provisions of Clause 5.2.11, enter into agreements with any of or both Shareholders (or Affiliates of any or both Shareholders) in relation to services to be provided to the JV Company.
3.4.The Board shall, on a Shareholder’s request, evaluate any agreement that the JV Company has entered into with a Shareholder (or an Affiliate of a Shareholder) except for the NDLAs or any other agreement entered into in connection with the Transaction, in order to verify that such agreement is in accordance with Clause 3.2.1 and that it meets the agreed quality standards and service levels. If the Board is not able to agree unanimously on such matter, the Shareholders agree that such matter shall be deemed a Deadlock Matter and be resolved according to the provisions in Clause 5.8.
3.5.The Shareholders agree that, to the extent required, appropriate information barrier protocols shall be established for the purpose of safeguarding any information sensitive from a competition law perspective and that a Shareholder and a Board member may otherwise receive.
3.3.Insurances

The JV Company shall subscribe for and maintain adequate general, product, professional and third-party liability insurances, as well as customary directors’ and officers’ insurances in line with industry standard.
4.FINANCING OF THE JV COMPANY
4.1.The Shareholders will monitor funding needs and consider additional capital injections on a case-by-case basis as the needs arise. 
4.2.The Shareholders agree to timely provide any funding necessary for the JV Company to conduct the Business and to, as and if required (taking into account funding obligations under the relevant Transfer Agreements) perform any obligations under the Transfer 

			
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Agreements. If a Non-Transferable Asset is held on trust for the benefit of a Shareholder, such Shareholder shall provide all funding necessary to maintain and perform the obligations relating to the relevant Non-Transferable Asset. Any funding shall be made by way of an unconditional shareholder’s contribution by the relevant Shareholder(s) (i.e. without a repayment obligation for the JV Company and without increase of the share capital or the number of shares in the JV Company).
4.3.The JV Company shall primarily be financed by way of its equity and by way of capital contributions by the Shareholders. 
4.FINANCING OF THE JV COMPANY
5.MANAGEMENT OF THE JV COMPANY

5.1.General
The management of the JV Company shall, through the Board and the Shareholders’ general meeting, be based on unanimity between the Shareholders and among the directors of the Board.
5.2.The Board
5.2.1.The management of the Business shall be the responsibility of the Board, within the limits set forth in this Agreement.
5.2.2.The Board shall consist of four directors, of which each Shareholder shall be entitled to nominate two. The Shareholders undertake to vote in favor of appointing the directors nominated by the other Shareholder. 
5.2.3.The right to nominate a director conferred on a Shareholder under this Clause 5.2 shall include the right for that Shareholder to request the removal at any time from such office such person nominated by that Shareholder as a director. In the event of such removal, the relevant Shareholder shall have the right to nominate a new director. After consulting the other Shareholder, the Shareholder nominating a new director shall inform the Board, which in its turn shall call a Shareholders’ meeting to elect the new director and the Shareholders shall vote in accordance with such nomination.
5.2.4.The Chairman shall be elected by the Board at the board meeting held immediately after the annual general meeting of Shareholders or (when otherwise required, for instance, if the Chairman resigns his or her post) at some other board meeting during the period up until the end of the following annual general meeting of Shareholders. The chairmanship shall rotate between the Shareholders every second year. The Shareholders agree that a director of the Board nominated by VNE shall be the Chairman appointed at the Effective Date and shall be replaced by a Z2Co appointed chairman at the first board meeting held following the second anniversary of the Effective Date. The Chairman shall not have a casting vote.
5.2.5.The Secretary of the Board shall be appointed by the Board.
5.2.6.The members of the Board shall serve for a term beginning upon their election and ending at the end of the next annual general meeting of Shareholders. For the avoidance of doubt, the Shareholders acknowledge that the directors may be re-elected. The directors shall not 

			
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be entitled to receive any remuneration from the JV Company for their work performed in their capacity as directors of the JV Company.
5.2.7.The Board will not constitute a quorum at any Board meeting without the presence of two directors, of which one has been appointed by Z2Co and one by VNE. If the required quorum is not present at a Board meeting, the Chairman shall, by not less than five Business Days’ prior written notice to each director, reconvene the meeting.
5.2.8.The Chairman shall ensure that board meetings are held whenever necessary. The Board shall be convened two times per year or more often upon request by a director.
5.2.9.Meetings of the Board shall normally be convened by at least five Business Days written notice, provided, however, that a shorter notice period may be applied if, in the Chairman’s reasonable opinion, an issue of material importance promptly needs to be resolved on by the Board. Such notice shall be in English and shall state the time, place and agenda of the meeting and shall be sent to each director by registered mail or email to the address or e-mail address of each director, which shall have been informed in writing by each director to the Chairman.
5.2.10.The Board shall, on an annual basis, resolve on written rules of procedure for the Board (including any distribution of work or responsibility by and among the directors). The rules of procedure for the Board as at the Effective Date are set out in Exhibit 5.3.3.
5.2.11.Each of the Shareholders is responsible for, and shall take all steps within its power to ensure, the compliance by the directors with the terms and conditions of this Agreement, and no Shareholder shall omit to perform (or omit to procure the performance of) any of its respective obligations provided for in this Agreement. Where to give effect to all or any of the provisions herein, each of the Shareholders shall be responsible for, and shall take all steps within its power to ensure that, the directors take such steps within their powers as are necessary to give effect thereto.
5.3.The Manager and the Controller
5.3.1.The Board shall appoint a manager, who shall be an experienced intellectual property professional responsible for the day-to-day management of the JV Company Intellectual Property Rights, including with respect to managing, maintaining, liquidating or disposing of the Residual Assets and the Non-Transferable Assets and the performance by the JV Company of its obligations under (i) the Transitional Services Agreement(s), (ii) the Cooperation and Cost Sharing Agreement, and (iii) the ZeVu License Agreement, as the case may be (the “Manager”), and an experienced finance professional who shall be responsible for overseeing the financial activities of the JV Company (the “Controller”). The Shareholders acknowledge that the Manager and the Controller have not been identified and appointed as at the Effective Date, and agree that the services to be performed by the Manager and the Controller pursuant to this Agreement, pending such appointments, shall be performed by Z2Co in accordance with the instructions set out in Clause 5.3.3, on an at cost basis. The Shareholders shall seek to appoint the Manager within three (3) months of the Effective Date and the Controller as soon as practicable following closing of the accounts for financial year 2020. The Board shall also be 

			
	    13(28)

responsible for the appointment of additional personnel of the JV Company, to the extent deemed appropriate by the Board.
5.3.2.The Manager and the Controller shall be employed by, or consultants to, the JV Company on customary terms and conditions.
5.3.3.As at the Effective Date, the authority and responsibility of the Manager and the Controller, including a financial reporting scheme, are set out in in Exhibit 5.3.3. Unless there is a conflicts of interest matter (i.e. where the JV Company’s interest may be contrary to one of the Shareholders), the Board and the Shareholders shall not interfere with the day-to-day management within the scope of the delegation of authority (as set out in Exhibit 5.3.3).
5.3.4.The Manager shall procure that the Board is provided with written reports in respect of the JV Company and the Business. The reports shall be in English, if not otherwise agreed between the Shareholders, and shall be provided by the Manager to the Board on a semi-annual basis. The Manager shall also procure that the following information is provided to the Board:
(a)quarterly financial reports of the JV Company, on both IFRS and US GAAP basis, in accordance with the instructions set out in Exhibits 5.3.3 (which may be amended from time to time by the Board); 
(b)such other information on the financial condition, business and operations of the JV Company as the Shareholders may reasonably require (and cannot obtain by itself), without undue delay;
(a)material claims and litigation relating to the JV Company, without undue delay;
(b)breach of an agreement by a counterparty to a material agreement of the JV Company, without delay; and
(c)any agreements entered into between the JV Company and a Shareholder.
in each case, to the extent such information is not already presented and delivered in writing at a board meeting in the JV Company.
5.4.IP Committee and JV Intellectual Property Rights Governance
5.4.1.An IP committee, comprising one representative of each of the Shareholders, shall be established to oversee and direct the Manager of the JV Company regarding the JV Intellectual Property Rights (the “IP Committee”).
5.4.2.The IP Committee shall be responsible for any decision to be made with respect to IP Actions, which can only be resolved by the Board or implemented by the Manager with the prior consent of the IP Committee. Notwithstanding any other provisions of this Agreement, the Manager and/or the Board shall advise and seek the prior consent of the IP Committee with respect to any IP Actions before resolving on or implementing any action in relation thereto.
5.4.3.The members of the IP Committee shall act in good faith and on a reasonable basis, to determine the appropriate IP Actions within twenty Business Days of a decision request by 

			
	    14(28)

the Manager or the Board. All decisions of the IP Committee shall be by unanimous consent and be binding upon the Shareholders, the Board and the Manager.
5.4.4.All IP Actions taken by the Manager where there is unanimous consent of the IP Committee shall be equally funded by the Shareholders (i.e., 50:50), the Shareholders will also equally share any liability, damages or compensation arising therefrom, and the JV Company shall exclusively own any and all New IP resulting therefrom.
5.4.5.In the event there is not unanimous consent of the IP Committee such that one Shareholder wants to take an affirmative action with respect to an IP Action (the “IP Action Owner”) and the other Shareholder declines to participate (the “Non-Owner”), the following shall apply:
a.The IP Action Owner may elect to unilaterally take the IP Action by: (i) instructing the Manager to do so; (ii) bearing 100% of such costs and any liabilities resulting therefrom; and (iii) keeping for itself 100% of any damages or compensation arising therefrom; all free of any interference by the Non-Owner;
b.The IP Action Owner shall exclusively own, and is hereby assigned, any New IP that may result from any IP Action undertaken by it; provided, however, that in case requested by the Non-Owner, the IP Action Owner shall agree to and grant to the Non-Owner, which Non-Owner shall agree to and accept, an irrevocable, perpetual (at least forty years), worldwide, fully-paid-up, non-exclusive, royalty-free, non-transferable and non-sublicensable license under the IP Action Owner’s New IP to make (but not have made), use, sell, offer for sale, import, transmit, display, and otherwise exploit, transfer, or dispose of any product, service, method, or process;
c.Each Shareholder and the JV Company agrees to at the IP Action Owner's cost perform all acts that the IP Action Owner may reasonably request to assist in obtaining the full benefits, enjoyment, rights, title, and interest throughout the world, in its New IP. Such acts shall include, without limitation, execution of documents, assistance in the prosecution of patents, copyrights, trademarks, and protection of trade secrets. Except as otherwise expressly set forth in this Clause 5.4, the Shareholders shall each bear their own expenses under this Clause 5.4.
d.In the event that a Shareholder is unable to secure the signature of the other Shareholder or the JV Company, any of its personnel, or its other legal representative, to any lawful document required to apply for or enforce any rights in its New IP, for whatever reason, each of such other Shareholder and the JV Company hereby grants and shall grant such Shareholder the right to appoint an independent, third-party attorney as agent and attorney-in-fact on behalf of such other Shareholder or the JV Company, upon at least ten Business Days’ notice to such other Shareholder and the JV Company, and solely to apply for or enforce rights in its New IP with the same legal force and effect as if executed by such other Shareholder or the JV Company, its personnel, or its other legal representative.
5.5.General Meetings

5.5.1.Annual general meetings of the shareholders in the JV Company shall be held as required by applicable law. Extraordinary general meetings of the shareholders shall be held to the extent required by this Agreement or applicable law. General meetings of the shareholders in the JV Company shall be convened upon resolution by the Board or at the request of a Shareholder. Notices to convene a general meeting of the shareholders in the JV Company 

			
	    15(28)

shall be given in English and in accordance with the Articles of Association, unless otherwise agreed by both Shareholders.
5.5.2.In advance to the annual general meeting of the shareholders in the JV Company, all matters required to be dealt with at the annual general meeting of the shareholders in the JV Company according to the Companies Act and the Articles of Association, shall be included in the agenda for such meeting. Otherwise, the agenda of any general meeting of the shareholders in the JV Company shall be defined by the Board.
5.5.3.Decisions by the general meeting of the shareholders in the JV Company for the passing of any resolution that have been included in the agenda for such meeting, or which is required to be dealt with at a general meeting of the shareholders in the JV Company according to the Companies Act or the Articles of Association, shall be adopted by unanimous consent between the Shareholders present or represented to such meeting, unless otherwise set out in this Agreement.
5.5.4.Each Shareholder undertakes to exercise its voting rights at a general meeting of the shareholders in the JV Company, by itself or through a representative, in the manner required for the provisions of this Agreement to be effected. Each Shareholder further undertakes to vote (by itself or through a representative) for election of the directors nominated for appointment under this Agreement, and, at the request of the Shareholder who nominated the director, for removal and possible replacement of a director appointed under this Agreement.
5.6.Auditor
A general meeting of the shareholders in the JV Company shall elect an auditor of the JV Company. The auditor of the JV Company shall be a well-reputed international auditing firm not serving as an auditor for either Shareholder (or employing the auditor serving as an auditor for either Shareholder).
5.7.Decision making
A decision shall, in the event of a Board meeting in the JV Company, require: (i) a unanimous approval of all the directors of the Board appointed by a Shareholder participating in the board meeting, taking into account the quorum requirement set forth in Clause 5.2.7 or, to the extent such matter falls outside the competence of the Board and within the competence of the general meeting of the shareholders in the JV Company pursuant to applicable law or this Agreement, (ii) a unanimous approval of the representatives of both Shareholders given at the general meeting of the shareholders in the JV Company.
5.8.Deadlock procedure
5.8.1.In the event that the Board or the relevant general meeting of Shareholders is unable to pass a resolution within fifteen Business Days of such matter first being considered and put for a decision by the Board or the general meeting of Shareholders (as the case may be), then a Shareholder may serve a notice (the “Deadlock Notice”) to the other Shareholder with the consequence that such matter is considered a deadlock matter (a “Deadlock Matter”).
5.8.2.Upon receipt of a Deadlock Notice, the Shareholders shall refer the Deadlock Matter to a committee (the “Escalation Committee”), which shall consist of the General Counsel (or 

			
	    16(28)

Chief Legal Officer) of each of Controlling parent company of the respective Shareholders at the time, for consultation and negotiations in good faith with a view to resolve such Deadlock Matter. The consultation and negotiations shall always take into consideration the reasonable best interest of the JV Company as well as each Shareholder’s interests. The negotiations shall commence as soon as reasonably possible, and in any event within ten Business Days after the receipt of the Deadlock Notice. If the Escalation Committee has not been able to resolve the Deadlock Matter within thirty Business Days following receipt of the Deadlock Notice, the Deadlock Matter shall be struck from the agenda of the relevant board meeting or the general meeting of Shareholders (as applicable) and any proposal made in respect of the Deadlock Matter shall not proceed unless the issue has to be resolved upon according to mandatory applicable law or contractual obligations of the JV Company in relation to a third party or otherwise would jeopardize the existence of the JV Company (a “Mandatory Deadlock Matter”).
5.8.3.In case of a deadlock situation in accordance with this Clause 5.8, the Shareholders undertake to ensure that, during a reasonable time period, the JV Company continues to operate towards the Shareholders and third parties (including employees) so that (i) the Mandatory Deadlock Matter situation does not have a material and adverse effect on the JV Company, and (ii) the JV Company honors its obligations in all material respects.
5.8.4.The provisions set out in Clause 12 (Dissolution of the Shareholders’ co-operation) shall apply in the event of a Mandatory Deadlock Matter, but subject to Clause 5.8.3.
5.9.Authority to sign
5.9.1.The authority to sign on behalf of the JV Company shall be vested in the Board in its entirety and in two directors jointly, of which one shall be appointed by Z2Co and one by VNE. 
5.9.2.The Manager shall be authorized to sign for the JV Company: (i) as regards the day-to-day management of the JV Intellectual Property Rights; (ii) in accordance with the written instructions given to the Manager by the IP Committee in respect of IP Actions; (iii) or otherwise in accordance with the terms of this Agreement.

5.10.Accounts and reporting
5.1.The JV Company shall maintain complete and accurate records and accounting books prepared and maintained in accordance with the Accounting Principles and as directed by the Board. 
5.2.The JV Company shall prepare and distribute to the Shareholders monthly and annual financial statements of the JV Company. The financial statements shall be based on the Accounting Principles and shall be in such form as set out in Exhibit 5.3.3(b), or as is otherwise determined by the Board or as may be reasonably requested by a Shareholder. The annual financial statements of the JV Company shall be distributed to the Shareholders within the end of the first quarter during the subsequent financial year and 

			
	    17(28)

the quarterly accounts shall be distributed to the Shareholders at the latest within ten Business Days from the end of the relevant quarter.
5.11.Access to information

5.11.1.Each Shareholder shall, to the extent legally permissible, have reasonable access to the accounts, books, contracts, properties, records and other documents of, or relating to, the JV Company and the conduct of the Business as may reasonably be requested by such Shareholder.
5.11.2.Each Shareholder undertakes to inform the directors and members of the IP Committee nominated by such Shareholder of their obligation of confidentiality under this Agreement and applicable law with respect to any and all information provided to them concerning the JV Company.
6.    ALLOCATION OF FUNDS AVAILABLE FOR DISTRIBUTION

6.1.The Shareholders acknowledge and agree that distribution of profits of the JV Company (if any and subject to the provisions of applicable laws in respect of distribution of profits) may only be made if, following the distribution of profits, (i) there will be cash and/or cash equivalents available in the JV Company to the extent reasonably required from time to time to conduct the Business and, (ii) provided that such distribution would not contravene sound business principles for a company active in the field of business in which the JV Company operates (giving due consideration to the financing needs of the JV Company, its liquidity or financial position). 
6.2.Any distribution of the profits of the JV Company shall be made to the Shareholders in proportion to their respective shareholding in the JV Company at the time of the distribution.

7.DISPOSAL OF SHARES; ASSIGNMENT
7.1.During the term of this Agreement (including any subsequent terms), neither Shareholder may Transfer this Agreement or any of such Shareholder’s rights or obligations created hereunder, by operation of law or otherwise, without the prior written consent of the other Shareholder hereto, which consent shall not be unreasonably withheld. 
7.2.The Shareholders agree that no Shareholder shall have any right to enter into an agreement with a third party to the effect that such third party, directly or indirectly, obtains a Share or its profit or an economical benefit related to the JV Company through the Shareholder. Each Shareholder confirms that it holds, on the date of this Agreement, and will continue to hold, its Shares on its own behalf and that it does not, and will not, act as an agent, front or other intermediary on behalf of a third party. 
7.3.The Shareholders agree that only a Person who validly is a party to an NDLA may own a Share or become party to this Agreement. Neither Shareholder may assign or otherwise transfer its NDLA to any Person without also transferring and assigning its Shares and this Agreement to the same Person and vice versa, meaning that the same Person must always hold and be party to each of (i) the NDLA, (ii) the Shares, and (iii) this Agreement at the same time. In the event that (a) this Agreement or the Shares have been transferred to a Person that cannot validly be party to an NDLA, or (b) a Person who is a party to the 

			
	    18(28)

NDLA ceases to be a Person that can validly be a party to the NDLA under its terms, such Person shall immediately transfer and assign the NDLA, the Shares and this Agreement to a Person that can validly be party to the NDLA pursuant to its terms. 
7.4.Notwithstanding any of the foregoing, but subject to Clause 7.3, each Shareholder may, without the prior written consent of the other Shareholder, assign this Agreement to (i) an Affiliate, or (ii) any other unaffiliated third-party Person, provided that such Affiliate or Person can validly be party to the NDLA pursuant to its terms (a “Free Transfer”). 
7.5.Notwithstanding any of the foregoing, but subject to Clause 7.3, each Shareholder may Transfer this Agreement in connection with (i) a sale of all or substantially all of its business and assets, to which this Agreement pertains, (ii) a merger with an unaffiliated third-party Person, or (iii) a corporate reorganization, to the acquirer of such businesses and assets (an “M&A Transaction”), without the prior written consent of the other Shareholder, provided that such assignee or successor can hold the NDLA pursuant to its terms and agrees in writing to be duly bound and to comply fully with this Agreement as a Shareholder hereto. 
7.6.In case of a Free Transfer: 
(i)VNE (in case of a Free Transfer by VNE) and Z2Co (in case of a Free Transfer by Z2Co) shall also (a) assign its NDLA, and (b) transfer its Shares to such Affiliate or Person; and 
(ii)each Shareholder undertakes to waive its pre-emptive or any other right that it may have under the Articles of Association.
7.7.In case of an M&A Transaction: 
(i)VNE (in case of an M&A Transaction by VNE) and Z2Co (in case of an M&A Transaction by Z2Co) shall also (a) assign its NDLA, and (b) transfer its Shares to such new assignee or successor entity; and
(ii)each Shareholder undertakes to waive its pre-emptive or any other right that it may have under the Articles of Association.
7.8.In case of a Free Transfer or an M&A Transaction, the Shareholders agree that the JV Company shall ensure that any Transfer of Shares is recorded only after verifying that the provisions of this Agreement have been fully complied with. 
7.9.Subject to the foregoing, all of the terms, conditions and provisions of this Agreement shall be binding upon and shall inure to the benefit of the successors and permitted assigns of the respective Shareholder.
8.REDEMPTION
8.1.Material Breach

8.1.1.Where a Shareholder has committed a material breach of this Agreement (the “Defaulting Shareholder”) and the breach is not remedied within twenty Business Days after receipt by the Defaulting Shareholder of a notice of such breach (a “Default Notice”) from any 

			
	    19(28)

other Shareholder (the “Requesting Shareholder”), the Requesting Shareholder shall have the right to require redemption of the Shares held by the Defaulting Shareholder. 
8.1.2.The Requesting Shareholder may exercise its right pursuant to Clause 8.1.1 by giving written notice thereof to the Defaulting Shareholder, no later than three months after receipt by the Defaulting Shareholder of the Default Notice. After such three-month period, the Requesting Shareholder shall be deemed to have waived its right to redemption of any Shares in respect of the breach set out in the Default Notice.
8.1.3.Unless both Shareholders agree otherwise, the redemption price under this Clause 8.1 shall be 80% of the value of the Defaulting Shareholder’s Shares, established at a separate valuation in accordance with Clause 9 below, whereby the value shall be established as of the day of the Default Notice. The redemption price shall be paid in cash within fifteen Business Days from the day of final establishment of the value of the Shares and the Defaulting Shareholder undertakes to do such things and to execute such documents as shall be necessary or as the Requesting Shareholder may reasonably request to give effect to the Transfer.
8.1.4.Redemption under this Clause 8.1 does not exclude other remedies as a result of the breach of contract, but in calculating the damages, if any, the discounted redemption price paid for the Defaulting Shareholder’s Shares pursuant to Clause 8.1.3 shall be taken into account.
8.1.5.By way of illustration and without limitation, a “material breach” will in particular be deemed constituted for the purpose of this Clause 8.1 in the event that a Shareholder fails to: (i) fund its share of any IP Action taken with the consent of the IP Committee (including any liability, damages or compensation arising therefrom) in accordance with Clause 5.4.4, or (ii) assign its NDLA to the relevant Affiliate (in case of a Free Transfer) or new successor entity (in case of an M&A Transaction) in accordance with the terms of Clauses 7.6 and 7.7.
8.2    Insolvency

8.2.1.If, during the term of this Agreement, a Shareholder is declared bankrupt, enters into composition arrangements with its creditors, suspends its payments or otherwise is found to be unable to pay its debts or to be insolvent (the “Insolvent Shareholder”), the Insolvent Shareholder shall immediately upon the insolvency event give written notice (the “Insolvency Notice”) to the other Shareholders. If the Insolvent Shareholder is a Shareholder, the other Shareholder (the “Redeeming Shareholder”) shall have the right to purchase the Shares from the Insolvent Shareholder, its bankruptcy estate or other holder of rights. 
8.2.2.Not later than three months after receipt by the Redeeming Shareholder of the Insolvency Notice, the Redeeming Shareholder must inform the Insolvent Shareholder, its bankruptcy estate or other holder of rights in writing, whether or not it wishes to purchase the Insolvent Shareholder’s Shares. If a notice to that effect has not been given within the stipulated period of time, the Redeeming Shareholder shall be deemed to have refrained from its right to request redemption of the Shares.
8.2.3.Unless both Shareholders agree otherwise, the redemption price under this Clause 8.1.5 shall be 100% of the value of the Insolvent Shareholder’s Shares, established at a separate valuation in accordance with Clause 9 below, whereby the value of such Shares shall be established as of the day when the Redeeming Shareholder applied for redemption of Shares. The redemption price for the Shares shall be paid in cash fifteen Business Days 

			
	    20(28)

from the day of final establishment of the value of the Shares and the Insolvent Shareholder undertakes to do such things and to execute such documents as shall be necessary or as the Redeeming Shareholder may reasonably request to give effect to the Transfer.
9.    VALUATION
9.1.If the value of a Share is to be assessed under a provision in this Agreement, and the Shareholders cannot agree on the value, the value shall be established by two experts jointly who, at the time of such appointment, are each partners and/or directors at a well-reputed international auditing firm with intellectual property valuation experience (provided that a Shareholder may not choose a partner or director from an auditing firm which is the auditor for such Shareholder or any of its Affiliates). One valuation expert shall be appointed by VNE and one such expert shall be appointed by Z2Co within ten Business Days calculated from when the matter requiring valuation of Shares arose.
9.2.The experts shall provide their valuation of the JV Company to the Shareholders, not later than eight weeks from the time when both experts have been appointed. If the experts fail to agree and provide their joint valuation within such time frame, each expert shall prepare an independent valuation of the JV Company, including a final report where the principles used for the relevant expert’s valuation are described. The value of the JV Company shall then be assessed as the average value of the two valuations.
9.3.The valuation in Clause 9.2 above shall be made with the view to establish the JV Company’s fair market value. The obtained value shall be distributed on all Shares, whereby the value of one Share shall be deemed to correspond to the Share’s portion of the JV Company’s capital. In establishing the market value, the experts shall have access to the same information about the JV Company as the Shareholders and the Board. The Shareholders undertake to see to it that the experts obtain such information. In doing this, they shall use their best efforts to ensure that the most recent information available will constitute the basis of valuation.
9.4.The Shareholders undertake, on the one hand, to accept each expert’s valuations and, on the other hand, not to institute arbitral or other legal proceedings in respect of such expert valuation, unless an error with significant effect on the valuation as a whole can be established. 
9.5.Should a Shareholder choose not to appoint an independent expert according to Clause 9.1 within the time frame set out in said Clause, the valuation of the Shares made by the expert chosen by the other Shareholder alone shall be accepted by both Shareholders as the applicable value of the Shares for the purposes of this Agreement. In such event, the valuation of the expert chosen by the other Shareholder shall be provided within six weeks after the appointment of such expert.
9.6.The experts’ fees, expenses and costs shall be borne by the JV Company.
10.    CONFIDENTIALITY
10.1.Each Shareholder undertakes not to, without the prior written approval of the other Shareholder, use Confidential Information, except for with regard to the existence of the Shareholders’ relationship under this Agreement or for the purpose of fulfilling any obligation or exercising any right that it has hereunder, and not to publish (including the issue of a public announcement) or otherwise disclose Confidential Information, in whole 

			
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or in part. Each Shareholder shall use reasonable efforts to procure that its and its Affiliates’ respective directors, officers, employees, consultants, agents and other representatives will likewise maintain strict confidence and secrecy in respect of such information and shall, when appropriate, enter into separate confidentiality agreements with said persons. For the avoidance of doubt, each Shareholder shall bear full responsibility for such Shareholder’s and such Shareholder’s Affiliates’ respective directors, officers, employees, consultants, agents and other representatives.
10.2.Notwithstanding the provisions of Clause 10.1, a Shareholder shall not be prevented from disclosing Confidential Information which: 
(a)is required to be disclosed pursuant to the requirements of a governmental authority, judicial order or stock exchange regulations, provided however that if a Shareholder becomes aware of the possibility that it may be compelled by such requirements to disclose Confidential Information, such Shareholder shall immediately give the other Shareholder notice of this fact and consult and co-operate with the other Shareholder as to whether and if so what action should be taken to resist the same; 
(b)is or becomes publicly available in writing otherwise than through a Shareholder’s breach of its obligations pursuant to this Agreement; 
(c)was lawfully in a Shareholder’s possession prior to such disclosure or acquired through a Shareholder’s own independent research and which was not acquired from the JV Company or the other Shareholder unless acquired without an obligation of confidentiality, as evidenced by written records or other reasonable evidence by the Shareholder claiming of having it in possession or acquired through own independent research save for if it has been transferred/contributed to the JV Company; or
(d)is received without confidentiality restrictions from a third party which is not bound by a confidentiality obligation towards the other Shareholder.
10.3.The confidentiality undertaking in this Clause 10 shall apply during the term of this Agreement and for a period of five years after the expiry of this Agreement in respect of each Shareholder. 
10.4.The Shareholders acknowledge that it is of material importance to them, and for the entering into of this Agreement, that the above confidentiality undertaking has been agreed and is observed.
10.5.The Shareholders agree that each Shareholder shall have a right to regular information updates from the JV Company reasonably necessary in order to carry out such Shareholder’s activities under the respective NDLAs.
11.    TERM AND TERMINATION
11.1.This Agreement shall enter into force when it has been duly signed by all Shareholders and will be valid for an initial period up to and including the twentieth anniversary of the date of this Agreement. Unless a Shareholder serves to the other Shareholder a notice of termination at the latest three years before such date, this Agreement will be automatically prolonged for consecutive ten-year periods with a right for each Shareholder to terminate 

			
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the Agreement with three years’ notice prior to the end of each such period. A notice of termination shall be made in writing.
11.2.When a Shareholder is no longer a shareholder in the JV Company as a consequence of such Shareholder’s Transfer of its Shares in the JV Company in compliance with the provisions of this Agreement (for the avoidance of doubt, including a redemption of the Shares in accordance with Clause 8), this Agreement will automatically terminate in respect of that Shareholder as from the day when such Shareholder’s Shares in the JV Company are Transferred, save for Clauses 10 and 16, which shall continue in force.
11.3.The termination of this Agreement in relation to a Shareholder will not release such Shareholder from liability for any breach of this Agreement committed before the termination of this Agreement, and neither from obligations under this Agreement applicable to such Shareholder post termination of the Agreement.
12.    DISSOLUTION OF THE SHAREHOLDERS’ CO-OPERATION
12.1.A dissolution of the JV Company shall be conducted in accordance with applicable law, and by a pro rata distribution of the JV Company’s assets, rights, liabilities and obligations between the Shareholders.
12.2.The Shareholders agree that in case of a dissolution under this Clause 12, the JV Intellectual Property Rights, other than any New IP which is exclusively owned by its respective IP Action Owner, shall be jointly owned by both Shareholders in equal and undivided shares with the same restrictions applying to open source as set out in the NDLAs, without any obligation to account to each other. In the course of the dissolution, the JV Company shall assign to the Shareholders all of its rights and interest in such JV Intellectual Property Rights to give effect to this Clause 12.2, with the exception of rights on the ZENUITY trademark and domain names, which neither Shareholder shall be assigned and have any rights in relation to unless otherwise agreed between the Shareholders, provided that, at the request of VNE, or Z2Co in the event that VNE has not issued any request for assignment in connection with the dissolution, the JV Company shall assign the ZENUITY trademark to the relevant Shareholder, at such Shareholder's sole cost and expense, to prevent any third-party from registering or using the ZENUITY trademark and domain names. For the avoidance of doubt, no Shareholder shall be entitled to use or license the ZENUITY trademark or domain names in any way following such assumption. The JV Company shall clone and provide to each Shareholder any physical media and records pertaining to such JV Intellectual Property Rights (e.g. source code, comments, specifications, compilation scripts and the like etc.). The Shareholders shall in course of the dissolution of the JV Company enter into good faith negotiations regarding the maintenance and defense of such JV Intellectual Property Rights consistent with Clause 5.4.
12.3.If the Shareholders cannot agree on whom to appoint as liquidator, the liquidator shall, at the request of either Shareholder, be appointed by the SCC.
13.    NOTICES
13.1.All notices given or made under the Agreement shall be in writing in the English language and shall be deemed to have been duly given or made when delivered to the recipient (i) by courier, or (ii) by e-mail, with the relevant document attached as a pdf, provided that, 

			
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on the same Business Day, the sender also sends to the recipient a copy of the notice by courier, in each case as follows:
If to VNE:
If to VNE: 
Attention: Lars Sjöbring, General Counsel
Veoneer AB
WTC, Klarabergsviadukten 70 
Section C 6th floor
11164 Stockholm
Sweden

Email address:     legal.affairs@veoneer.com

With a copy (not serving as a notice) to: 
Roschier Advokatbyrå AB
P.O. Box 7358
SE-103 90 Stockholm
Sweden

If to Z2Co:
Attention: Pernilla Heidenvall, Head of Legal
Volvo Car Corporation
50091 Legal 
Torslanda VAK HABVS
40531 Göteborg
Sweden

Email address:     legal@volvocars.com

With a copy (not serving as a notice) to: 

Clifford Chance Europe LLP
1, rue d'Astorg
75008 Paris
France

			
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13.2.Any change of address shall be notified to the other Shareholder in the manner prescribed in this Clause 13.
14.    RELATION TO THE ARTICLES OF ASSOCIATION AND THE COMPANIES ACT
14.1.As between the Shareholders, it is expressly acknowledged and agreed that the provisions of this Agreement shall have priority and apply over and above the Companies Act and the Articles of Association.
14.2.The Shareholders shall whenever necessary exercise all voting and other rights and powers available to them to procure the necessary amendment or alteration to the Articles of Association, to the extent necessary to permit the JV Company and its affairs to be carried out as provided in this Agreement.
14.3.The Shareholders shall not be entitled to request that this Agreement shall not be applied, in whole or in part, due to non-compliance with the provisions of the Articles of Association or the Companies Act.
14.4.In order to secure the Shareholders' adherence to the transfer provisions of this Agreement, the Articles of Association contain a pre-emption section under which each Shareholder is entitled to acquire the other Shareholder's Shares for quota value when such are transferred. The Shareholders hereby waives the right to enforce any pre-emptive rights under the Articles of Association if Shares are transferred in accordance with this Agreement.
15.    GENERAL PROVISIONS
15.1.If any provision of this Agreement is deemed invalid or unenforceable in accordance with its terms, such invalidity or unenforceability shall in no event affect the applicability of other provisions hereunder, which other provisions shall remain in full force and effect, provided however that the Shareholders shall agree on necessary amendments to this Agreement as to validly achieve, to the greatest extent possible, the same commercial effect as had such provision been deemed valid and enforceable.
15.2.Except for as expressly set out in this Agreement, a Shareholder’s failure to exercise a right under this Agreement or to call attention to certain circumstances under this Agreement, shall not mean that the Shareholder has waived its rights in this respect, nor shall any single or partial exercise of any right or remedy prevent any further or other exercise or the exercise of any other right or remedy.
15.3.This Agreement embodies all the terms and conditions agreed upon between the Shareholders as to the subject matter of this Agreement and supersedes and cancels in all respects all previous agreements and undertakings, if any, between the Shareholders hereto with respect to the subject matter hereof, whether such be written or oral.
15.4.To be valid between the Shareholders, any supplements and amendments to this Agreement shall be made in writing and signed by both Shareholders, and it shall be clearly stated that these are amendments or supplements to this Agreement.
15.5.This Agreement and the rights and obligations set forth herein shall be binding upon and inure to the benefit of the Shareholders and their respective legal successors. This 

			
	    25(28)

Agreement or any of the rights or obligations hereunder shall not be assignable (by operation of law or otherwise) by any Shareholder in whole or in part without the prior written consent of the other Shareholders, except if otherwise is set out in this Agreement.
15.6.Each Shareholder shall bear all of its own costs and expenses incurred in connection with the preparation for and completion of this Agreement, including, without limitation, all costs and expenses of its advisors, agents, brokers, counsel and representatives.
15.7.The Shareholders do not intend to be and nor shall they be deemed to be treated as a general partnership or limited partnership, nor shall any of the provisions of this Agreement for any purpose be, or be deemed to constitute, a partnership or agency between the Shareholders. 
15.8.For the avoidance of doubt, it is expressly set forth that this Agreement applies in respect of all of the Shareholders’ present and future Shares in the JV Company.
16.    GOVERNING LAW AND DISPUTE RESOLUTION
16.1.Disputes

16.1.1.Any dispute, controversy or claim arising out of or in connection with this Agreement, or the breach, termination or invalidity thereof, shall be finally settled by arbitration in accordance with the Arbitration Rules of the Arbitration Institute of the Stockholm Chamber of Commerce (the “SCC”). The Shareholders agree that any dispute, controversy or claim arising out of or in connection with this Agreement and the Transaction Documents shall be determined together in a single arbitration proceeding if requested by any party thereto.
16.1.2.The seat of arbitration shall be Gothenburg, Sweden. The language to be used in the arbitral proceedings shall be English. 
16.1.3.The arbitral tribunal shall be composed of three arbitrators.
16.1.4.The Shareholders undertake to ensure that all arbitration proceedings conducted in accordance with this Agreement are kept confidential, unless otherwise required by law, or under relevant stock market regulations, or for the purpose of securing the Shareholder's own interests against the other Shareholder in relation to a dispute. This undertaking shall cover, inter alia, all information disclosed during the course of such proceedings, as well as any decision or award made or declared by the arbitral tribunal.
16.2.Governing Law
This Agreement is governed by the substantive laws of Sweden, without regard to its conflicts of law rules and principles. In using English terms and concepts in the Agreement, the Shareholders have not intended to incorporate any legal standards other than those that would result from a translation of such terms and concepts into Swedish and/or an interpretation of such terms and concepts under Swedish law.
[Signature pages follows]
________________________

ZTWO COMPANY AB    

/s/ Pär Arvidsson    /s/ Pernilla Heidenvall
Name: Pär Arvidsson    Name: Pernilla Heidenvall

VEONEER SWEDEN AB    

/s/ Christine Rankin    /s/ Daniel Åhlström
Name: Christine Rankin    Name: Daniel Åhlström

ZENUITY AB    

/s/ Henrik Green    /s/ Nishant Batra
Name: Henrik Green    Name: Nishant BatraDocument

Exhibit 10.3

EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into on August 1, 2020 by and between Veoneer Inc., a Delaware corporation (the “Company”), and Robert Bisciotti (Born on December 3, 1962) (the “Executive”), to be effective as of the Effective Date, as defined in Section 1.  References herein to the “Company” shall, as applicable, be deemed to include the Company’s affiliates.
BACKGROUND
The Company desires to engage the Executive as the Executive Vice President, Business Unit North America of the Company from and after the Effective Date, in accordance with the terms of this Agreement.  The Executive is willing to serve as such in accordance with the terms and conditions of this Agreement.
NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1.Effective Date The effective date of this Agreement (the “Effective Date”) shall be August 1, 2020, or such other date to which the parties agree. 
2.Employment.  The Executive is hereby employed on the Effective Date as the Executive Vice President, Business Unit North America of the Company.  In this capacity, the Executive shall have the duties, responsibilities and authority commensurate with such position as shall be assigned to him by the Chief Executive Officer of the Company (the “Chief Executive Officer”). The principal workplace for the Executive shall be Detroit, USA. 
3.Employment Period.  The Company hereby agrees to employ the Executive and the Executive hereby agrees to serve the Company from the Effective Date and thereafter unless and until terminated by the Company or the Executive (the “Employment Period”); provided, however, that (i) the Company must give the Executive written notice of termination of the Executive’s employment not less than six (6) calendar months prior to such date of termination, and (ii) the Executive must give the Company written notice of termination of his employment not less than six (6) calendar months prior to such date of termination; provided, further, however, that in the event of a termination by the Company for Cause pursuant to Section 10(b) hereof, the 6-month notice requirement provided in clause (i) of the foregoing provision shall not apply and the Executive’s termination of employment shall be effective immediately.  Notwithstanding the foregoing, the Executive’s employment shall automatically terminate on the earlier occurrence of the end of notice period or the last day of the month preceding the Executive’s 65th birthday (“Retirement”).
4.Extent of Service.  During the Employment Period, the Executive shall use his best efforts to promote the interests of the Company and those of any parent, subsidiary and associated company of the Company, and shall devote his full time and attention during normal business hours to the business and affairs of the Company and any parent, subsidiary and 

associated company.  In addition, the Executive shall devote as much time outside normal business hours to the performance of his duties as may in the interests of the Company be reasonably necessary; provided, however, that the Executive shall not receive any remuneration in addition to that set out in Section 5 hereof in respect of his work during such time.  During the Employment Period, the Executive shall not, without the consent of the Chief Executive Officer, directly or indirectly, either alone or jointly with or as a director, manager, agent or servant of any other person, firm or company, be engaged, concerned or interested in any business in a manner that would conflict with the Executive’s duties under this Section 4 (including holding any shares, loan, stock or any other ownership interest in any competitor of the Company), provided that nothing in this Section 4 shall preclude the Executive from holding shares, loan, stock or any other ownership interest in an entity other than a competitor of the Company as an investment.
5.Compensation and Benefits.
(a)Base Salary.  During the Employment Period, the Executive shall receive a gross salary at the rate of USD 388,260 per year (“Base Salary”), less normal withholdings, payable in equal bi-weekly or other installments as are or become customary under the Company’s payroll practices for its employees from time to time.  The Compensation Committee of the Board of Directors of the Company (the “Compensation Committee”) shall review the Executive’s Base Salary annually during the Employment Period.  Any adjustments to the Executive’s annual base salary shall become the Executive’s Base Salary for purposes of this Agreement.  
(b)Bonus.  During the Employment Period, the Executive shall be eligible to participate in the Company’s bonus plan for executive officers, if any, pursuant to which he will have an opportunity to receive an annual bonus based upon the achievement of performance goals established from year to year by the Compensation Committee (such bonus earned at the stated “target” level of achievement being referred to herein as the “Target Bonus”).  Until otherwise changed by the Compensation Committee, the Executive’s Target Bonus shall be forty-five percent (45%) of his Base Salary.
(c)Equity Incentive Compensation.  During the Employment Period, the Executive shall be eligible for equity grants under the Veoneer, Inc. 2018 Stock Incentive Plan (the “Veoneer Plan”), or any successor plan or plans, having such terms and conditions as awards to other peer executives of the Company, as determined by the Compensation Committee in its sole discretion, unless the Executive consents to a different type of award or different terms of such award than are applicable to other peer executives of the Company.  Nothing herein requires the Compensation Committee to grant the Executive equity awards or other long-term incentive awards in any year. 
(d)Automobile.  The Company shall provide the Executive with a company car or, if consistent with local policies where the Executive is based, a car allowance.  If a company car is provided, the Executive and his immediate family may also use the company car for personal purposes and the Company shall bear all petrol, maintenance and repair costs, as well as insurance costs and vehicle tax related to the Company car.  If a car allowance is 
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provided, the Company shall also bear all petrol, maintenance and repair cost. but no other costs for the automobile in addition to the allowance.  Whether a company car or a car allowance is provided, the Executive shall be liable for the payment of tax on the car allowance or on the taxable benefit resulting from the right to use the company car for personal purposes.
(e)Expenses.  The Executive shall be entitled to receive payment or reimbursement for all reasonable traveling, hotel and other expenses incurred by him in the performance of his duties under this Agreement, in accordance with the policies, practices and procedures of the Company as in effect from time to time.  The Executive shall provide the Company with receipts, vouchers or other evidence of actual payment of the expenses to be reimbursed, as requested by the Company.
(f)Conditions of Employment.  Normal conditions of employment as issued by the Company apply to the receipt of benefits under this Section 5.
6.Vacation.  The Executive shall be entitled to yearly vacation amounting to 25 days.
7.Pension and benefits. During the Employment Period, the Executive shall be eligible to participate in any non-qualified deferred compensation plan and/or qualified retirement plan of the Company (collectively, the “U.S. Savings Plans”) and any additional welfare benefit plans, practices, policies and programs provided by the Company, if any, to the extent available to similarly-situated employees in the United States and subject to eligibility requirements and terms and conditions of each such plan; provided, however, that nothing herein shall limit the ability of the Company to amend, modify or terminate any such benefit plans, policies or programs at any time and from time to time. Employee remains eligible for vested benefits in accordance with existing retiree benefits in accordance with those established policies, plans and procedures.
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 (including any parent, subsidiary or associated company of the Company) or its business or trade secrets of which he has or shall hereafter become possessed.  These restrictions shall cease to apply to any information which may come into the public domain (other than by breach of the provisions hereof).  In the event that the Executive does not comply with this Section 8, the Company shall be entitled to damages equal to six (6) times the average monthly Base Salary that the Executive received during the preceding twelve (12) months, if the Executive continues to be employed, or during the last twelve (12) months prior to his Date of Termination, if the Executive’s employment has terminated; provided, however, that nothing in this Section 8 shall preclude the Company from pursuing arbitration in accordance with Section 16 herein and seeking additional damages from the Executive in the event that the Company is able to demonstrate to the arbitrators that the value of the damages incurred by the Company due to the Executive’s violation of this Section 8 exceed the aggregate value of the damages paid by the Executive to the Company pursuant to the foregoing provision.
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9.Company Property.  The Executive shall upon the termination of his employment hereunder for whatever reason immediately deliver to the Company all designs, specifications, correspondence and other documents, papers, the car provided hereunder and all other property belonging to the Company or any of its affiliated companies or which may have been prepared by him or have come into his possession in the course of his employment.
10.Termination of Employment.
(a)Death; Retirement.  The Executive’s employment shall terminate automatically upon his death or Retirement.
(b)Termination by the Company.  The Company may terminate the Executive’s employment during the Employment Period with or without Cause.  “Cause” for termination by the Company of the Executive’s employment shall mean (i) willful and continued failure by the Executive to substantially perform the Executive’s duties with the Company (other than any such failure resulting from the Executive’s incapacity due to physical or mental illness) after a written demand for substantial performance is delivered to the Executive by the Board of Directors of the Company (the “Board”), which demand specifically identifies the manner in which the Board believes that the Executive has not substantially performed the Executive’s duties, or (ii) the willful engaging by the Executive in conduct which is demonstrably and materially injurious to the Company, monetarily or otherwise.  For purposes of clauses (i) and (ii) of this definition, (x) no act, or failure to act, on the Executive’s part shall be deemed “willful” unless done, or omitted to be done, by the Executive not in good faith and without reasonable belief that the Executive’s act, or failure to act, was in the best interest of the Company and (y) in the event of a dispute concerning the application of this provision, no claim by the Company that Cause exists shall be given effect unless the Chief Executive Officer and the Executive Vice President of Human Resources of the Company establish to the Board by clear and convincing evidence that Cause exists, subject to Section 10(f) hereof.
(c)Termination by the Executive.  The Executive may terminate his employment during the Employment Period with Good Reason or without Good Reason.  “Good Reason” shall mean the occurrence, without the Executive’s express written consent, of any of the following “Good Reason Events”:
(i)the assignment to the Executive of any duties inconsistent with the Executive’s status as an executive officer of the Company or a substantial adverse alteration in the nature or status of the Executive’s responsibilities from those in effect on the Effective Date other than any such alteration primarily attributable to the fact that the Company may no longer be a public company;
(ii)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;
(iii)the relocation of the Executive’s principal place of employment to location more than 45 kilometers from the Executive’s principal place of employment on the Effective Date or the Company’s requiring the Executive to be based anywhere other than such 
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principal place of employment (or permitted relocation thereof) except for required travel on the Company’s business to an extent substantially consistent with the Executive’s present business travel obligations;
(iv)the failure by the Company to pay to the Executive any portion of the Executive’s current compensation within seven (7) days of the date such compensation is due;
(v)the failure by the Company to continue in effect any compensation plan in which the Executive participates on the Effective Date which is material to the Executive’s total compensation, unless an equitable arrangement (embodied in an ongoing substitute or alternative plan) has been made with respect to such plan, or the failure by the Company to continue the Executive’s participation therein (or in such substitute or alternative plan) on a basis not materially less favorable, both in terms of the amount or timing of payment of benefits provided and the level of the Executive’s participation relative to other participants, as existed on the Effective Date; or
(vi)the failure by any successor to the business of the Company (whether direct or indirect, by purchase, merger, consolidation or otherwise) to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.
A termination by the Executive shall not constitute termination for Good Reason unless the Executive shall first have delivered to the Company written notice setting forth with specificity the occurrence deemed to give rise to a right to terminate for Good Reason (which notice must be given no later than 90 days after the initial occurrence of such event), and there shall have passed a reasonable time (not less than 30 days) within which the Company may take action to correct, rescind or otherwise substantially reverse the occurrence supporting termination for Good Reason as identified by the Executive.  The Executive’s termination for Good Reason must occur within a period of 160 days after the occurrence of an event of Good Reason.  The Executive’s right to terminate employment for Good Reason shall not be affected by the Executive’s incapacity due to physical or mental illness.  The Executive’s continued employment shall not constitute consent to, or a waiver of rights with respect to, any act or failure to act constituting Good Reason hereunder.  Good Reason shall not include the Executive’s death.  
(d)Notice of Termination.  Any termination by the Company or the Executive of the Executive’s employment (other than by reason of death) shall be communicated by written Notice of Termination from one party hereto to the other party hereto.  For purposes of this Agreement, a “Notice of Termination” shall mean a written notice which shall (i) indicate the specific termination provision in this Agreement relied upon, (ii) set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated, and (iii) specifies the termination date.  Further, a Notice of Termination for Cause is required to include a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters (3/4) of the entire membership of the Board at a meeting of the Board which was called and held for the purpose of considering such termination (after reasonable notice to the Executive and an opportunity for the Executive, together with the 
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Executive’s counsel, to be heard before the Board) finding that, in the good faith opinion of the Board, the Executive was guilty of conduct set forth in clause (i) or (ii) of the definition of Cause herein, and specifying the particulars thereof in detail.  The failure by the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Cause shall not waive any right of the Company hereunder or preclude the Company from asserting such fact or circumstance in enforcing the Company’s rights hereunder.
(e) Date of Termination.  “Date of Termination” means (i) if the Executive’s employment is terminated other than by reason of death or Retirement, the end of the notice period specified in Section 3 hereof (if applicable), or (ii) if the Executive’s employment is terminated by reason of death, the Date of Termination shall be the date of death of the Executive, or (iii) if the Executive’s employment is terminated by reason of Retirement, the Date of Termination shall be the date of Retirement.
(f) Dispute Concerning Termination.  Any disputes regarding the termination of the Executive’s employment shall be settled in accordance with Section 16 hereof (including, without limitation, the provisions regarding costs and expenses related to arbitration).  If within fifteen (15) days after any Notice of Termination is given, or, if later, prior to the Date of Termination (as determined without regard to this Section 10(f)), the party receiving such Notice of Termination notifies the other party that a dispute exists concerning the termination, the Date of Termination shall be extended until the date on which the dispute is finally resolved, either by mutual written agreement of the parties or by a final judgment, order or decree of the arbitrators (which is not appealable or with respect to which the time for appeal there from has expired and no appeal has been perfected); provided, however, that the Date of Termination shall be extended by a notice of dispute given by the Executive only if such notice is given in good faith and the Executive pursues the resolution of such dispute with reasonable diligence.
(g) Compensation During Dispute.  If the Date of Termination is extended in accordance with Section 10(f) hereof, the Company shall continue to provide the Executive with the compensation and benefits specified in Section 5 hereof until the Date of Termination, as determined in accordance with Section 10(f) hereof.  Amounts paid under this Section 10(g) are in addition to all other amounts due under this Agreement and shall not be offset against or reduce any other amounts due under this Agreement; provided, however, that in the event that the arbitration results in a determination that the Executive is not entitled to the severance payments set forth in Section 11(a) hereof, then the Executive shall be obligated to promptly repay to the Company the compensation received by the Executive during the extended period pursuant to this Section 10(g).
11.Obligations of the Company Upon Termination of Employment.
(a)Termination by the Company Other Than for Cause; Termination by the Executive for Good Reason.  If, during the Employment Period, the Company shall terminate the Executive’s employment other than for Cause, or the Executive shall terminate employment for Good Reason, then the Executive shall be subject to the covenants set forth in Section 13 herein, and only if within forty-five (45) days after the Date of Termination the Executive shall have executed a separation agreement containing a full general release of claims and covenant not to 
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sue, in the form provided by the Company, and such separation agreement shall not have been revoked within such time period, within sixty (60) days after the Date of Termination (or such later date as may be required pursuant to Section 20(c) herein), the Company shall pay to the Executive a lump sum severance payment, in cash, equal to one and a half times (1.5x) the Executive’s Base Salary as in effect immediately prior to the Date of Termination.  
(b)Death.  If the Executive’s employment is terminated by reason of the Executive’s death during the Employment Period, this Agreement shall terminate without further obligations to the Executive or the Executive’s legal representatives under this Agreement, other than such death benefits he or they would otherwise be entitled to receive under any plan, program, policy or practice or contract or agreement of the Company or its affiliated companies.
(c)Retirement.  If the Executive’s employment is terminated in connection with his Retirement during the Employment Period, this Agreement shall terminate without further obligations to the Executive; provided, however, that the Executive shall nonetheless be subject to the covenants set forth in Section 13 herein.
(d)Cause; Voluntary Resignation.  If the Executive’s employment is terminated by the Company for Cause during the Employment Period, or the Executive voluntarily resigns his employment without Good Reason, this Agreement shall terminate without further obligations to the Executive; provided, however, that the Executive shall nonetheless be subject to the covenants set forth in Section 13 herein.
12.Non-Duplication of Benefits.  Notwithstanding anything to contrary in this Agreement, the aggregate of any amounts payable to the Executive by the Company pursuant to Section 5 (including any compensation and benefits paid pursuant to such section during any applicable termination notice period pursuant to Section 3), Section 10(g) or Section 11 herein shall be offset and reduced to the extent necessary by any other compensation or benefits of the same or similar type, including those payable under local laws of any relevant jurisdiction, so that such other compensation or benefits, if any, do not augment the aggregate of any amounts payable to the Executive by the Company pursuant to Section 5 (including any compensation and benefits paid pursuant to such section during any applicable termination notice period pursuant to Section 3), Section 10(g) or Section 11 herein.  It is intended that this Agreement not duplicate compensation or benefits the Executive is entitled to under country “redundancy” laws, the Company’s severance policy, if any, any related or similar policies, or any other contracts, agreements or arrangements between the Executive and the Company.
13.Non-Competition Covenant; Payment for Non-Competition Covenant.
(a)During the twelve (12) months immediately following the termination of his employment with the Company for any reason, the Executive shall not (i) accept employment with a competitor of the Company in a capacity in which such competitor can make use of the confidential information relating to the Company that the Executive has obtained in his employment with the Company, (ii) engage as a partner or owner in such competitor of the Company, nor (iii) act as an advisor to such competitor (the “Non-Competition Covenant”).
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(b)If the Executive does not comply with the Non-Competition Covenant when applicable, then (i) the Executive shall not be entitled to any benefits pursuant to Section 13(c) below during the period in which the Executive is not in compliance with such Non-Competition Covenant, and (ii) the Company shall be entitled to damages equal to six (6) times the average monthly Base Salary that the Executive received during the last twelve (12) months prior to the Date of Termination.
(c)The Company may unilaterally waive the Non-Competition Covenant in its sole discretion.  If the Company waives the Non-Competition Covenant, then the Executive shall not be entitled to any payments pursuant to Section 13(d).
(d)If the Non-Competition Covenant becomes operative, then the Company shall pay to the Executive, as compensation for the inconvenience of such Non-Competition Covenant, up to twelve (12) monthly payments equal to the Executive’s monthly Base Salary as in effect on the Date of Termination, less the monthly salary earned during such month by the Executive in a subsequent employment, if any; provided, however, that the aggregate monthly payments from the Company pursuant to this Section 13(d) shall not exceed sixty percent (60%) of the Executive’s annual Base Salary as in effect on the Date of Termination, and once the 60% aggregate amount has been paid, no further payments will be made under this Section 13(d).  As a condition to the receipt of such payments, the Executive must inform the Company of his base salary in his new employment on a monthly basis.  No payments shall be made under this Section 13 if the Executive’s employment is terminated in connection with his Retirement.
14.Inventions.
(a)The general nature of any discovery, invention, secret process or improvement made or discovered by the Executive during the period of the Executive’s employment by the Company (hereinafter called “the Executive’s Inventions”) shall be notified by the Executive to the Company forthwith upon it being made or discovered.
(b)The entitlement as between the Company and the Executive to the Executive’s Inventions shall be determined in accordance with the current Act (1949:345) on the Right to Inventions made by Employees and the Executive acknowledges that because of the nature of his duties and the particular responsibilities arising therefrom he has a special obligation to further the interests of the Company’s undertaking.
(c)Where the Executive’s Inventions are to be assigned to the Company, the Executive shall make a full disclosure of the same to the Company and if and whenever required to do so shall at the expense of the Company apply, singly or jointly with the Company or other persons as required by the Company, for letters patent or other equivalent protection in Sweden and in any other part of the world of the Executive’s Inventions.
15.Entire Agreement.  This Agreement supersedes any other previous agreements and arrangements whether written, oral or implied between the Company or Veoneer and the Executive relating to the employment of the Executive, without prejudice to any rights accrued to 
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the Company or the Executive prior to the commencement of his employment under this Agreement.
16.Disputes.  Disputes regarding this Agreement (including, without limitation, disputes regarding the existence of Cause or Good Reason) shall be settled by arbitration in accordance with the Swedish Arbitration Act.  The arbitration shall take place in Stockholm and, unless otherwise agreed to by both parties, there shall be three (3) arbitrators.  The provisions on voting and cumulation of parties and claims in the Swedish Procedural Code shall be applied in the arbitration.  All costs and expenses for the arbitration, whether initiated by the Company or by the Executive, including the Executive’s costs for solicitor, shall be borne by the Company, unless the arbitrators determine the Executive’s claim(s) to be frivolous and in bad faith, in which case the arbitrators may allocate costs as they deem fit.  Any payments due to the Executive pursuant to the preceding sentence shall be made within fifteen (15) business days after delivery of the Executive’s written request for payment accompanied with such evidence of costs and expenses incurred as the Company reasonably may require.
17.Governing Law.  This Agreement shall be governed by and construed in accordance with Swedish law and, where applicable, the laws of any applicable local jurisdictions.
18.Amendment.  No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by the Executive and such officer as may be specifically designated by the Board.
19.Notices.  All notices and other communications hereunder shall be in writing and shall be given by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:    
If to the Executive:     Robert Bisciotti 
                    

If to the Company:    Veoneer Inc.
WTC, Klarabergsviadukten 70,
111 64 Stockholm, Sweden

or to such other address as either party shall have furnished to the other in writing in accordance herewith.  Notice and communications shall be effective when actually received by the addressee.
20.U.S. Tax Code Section 409A.  This Section 20 shall apply only in the event that the Executive is or becomes a taxpayer under the laws of the United States at any time during the Employment Period.
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(a)General.  This Agreement shall be interpreted and administered in a manner so that any amount or benefit payable hereunder shall be paid or provided in a manner that is either exempt from or compliant with the requirements of Section 409A of the 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 Executive as a result of the application of Section 409A of the Code.
(b)Definitional Restrictions.  Notwithstanding anything in this Agreement to the contrary, to the extent that any amount or benefit that would constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code (“Non-Exempt Deferred  Compensation”) would otherwise be payable or distributable hereunder, or a different form of payment of such Non-Exempt Deferred Compensation would be effected, by reason of a Change in Control or the Executive’s termination of employment, such Non-Exempt Deferred Compensation will not be payable or distributable to the Executive, and/or such different form of payment will not be effected, by reason of such circumstance unless the circumstances giving rise to such Change in Control or termination of employment, as the case may be, meet any description or definition of “change in control event” or “separation from service,” as the case may be, in Section 409A of the Code and applicable regulations (without giving effect to any elective provisions that may be available under such definition).  This provision does not prohibit the vesting of any Non-Exempt Deferred Compensation upon a Change in Control or termination of employment, however defined.  If this provision prevents the payment or distribution of any Non-Exempt Deferred Compensation, such payment or distribution shall be made on the date, if any, on which an event occurs that constitutes a Section 409A-compliant “change in control event” or “separation from service,” as the case may be, or such later date as may be required by subsection (c) below.  If this provision prevents the application of a different form of payment of any amount or benefit, such payment shall be made in the same form as would have applied absent such designated event or circumstance.
(c)Six-Month Delay in Certain Circumstances.  Notwithstanding anything in this Agreement to the contrary, if any amount or benefit that would constitute Non-Exempt Deferred Compensation would otherwise be payable or distributable under this Agreement by reason of the Executive’s separation from service during a period in which he is a “specified employee” (as defined in Code Section 409A and the final regulations thereunder), then, subject to any permissible acceleration of payment by the Company under Treas. Reg. Section 1.409A3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of interest), or (j)(4)(vi) (payment of employment taxes), (i) the amount of such Non-Exempt Deferred Compensation that would otherwise be payable during the six-month period immediately following the Executive’s separation from service will be accumulated through and paid or provided on the first day of the seventh month following the Executive’s separation from service (or, if the Executive dies during such period, within thirty (30) days after the Executive’s death) (in either case, the “Required Delay Period”); and (ii) the normal payment or distribution 
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schedule for any remaining payments or distributions will resume at the end of the Required Delay Period.
(d)Treatment of Installment Payments.  Each payment of termination benefits under this Agreement shall be considered a separate payment, as described in Treas. Reg. Section 1.409A2(b)(2), for purposes of Section 409A of the Code.
(e)Timing of Release of Claims.  Whenever in this Agreement a payment or benefit is conditioned on the Executive’s execution and non-revocation of a release of claims, such as the separation agreement referenced in Section 11(a) hereof, such release must be executed and all revocation periods shall have expired within 60 days after the Date of Termination; failing which such payment or benefit shall be forfeited.  If such payment or benefit constitutes Non-Exempt Deferred Compensation, then, subject to subsection (c) above, such payment or benefit (including any installment payments) that would have otherwise been payable during such 60-day period shall be accumulated and paid on the 60th day after the Date of Termination provided such release shall have been executed and such revocation periods shall have expired.  If such payment or benefit is exempt from Section 409A of the Code, the Company may elect to make or commence payment at any time during such 60-day period.
(f)Timing of Reimbursements and In-kind Benefits.  If the Executive is entitled to be paid or reimbursed for any taxable expenses under this Agreement and if such payments or reimbursements are includible in the Executive’s federal gross taxable income, the amount of such expenses payable or reimbursable in any one calendar year shall not affect the amount payable or reimbursable in any other calendar year, and the reimbursement of an eligible expense must be made no later than December 31 of the year after the year in which the expense was incurred.  The right to any reimbursement for expenses incurred or provision of in-kind benefits is limited to the lifetime of the Executive, or such shorter period of time as is provided with respect to each particular right to reimbursement in-kind benefits pursuant to the preceding provisions of this Agreement.  No right of the Executive to reimbursement of expenses under this Agreement shall be subject to liquidation or exchange for another benefit.

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

Veoneer, Inc.

/s/ Jan Carlson
Jan Carlson
Chairman and CEO

Veoneer, Inc.

/s/ Mikael Landberg
Executive Vice President Human Resources
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