Exhibit 10.5
Autoliv
Supplementary Agreement to the Employment Agreement for XX (the Employee)
The following Supplementary Agreement has been drawn up between Autoliv
Inc, hereinafter called the Company, and the Employee. The Supplementary
Agreement has been drawn up in respect of the Employee's early retirement
pension benefits, hereinafter called Early Retirement Pension.
1. The Employee has attained the age of retirement specified under the
national Swedish ITP plan (supplementary pension for salaried
employees in industry and commerce), hereinafter called the ordinary
age of retirement.
2. The Employee is ensured of the right to terminate his services and
retire, at his won request, or on the instructions of the Company, as
of and including the month when the Employee attains the age of 60.
A mutual period of notification of six months shall be observed. It
shall not be a requirement on either party to state any reason.
3. Early Retirement Pension benefits will be paid as of, and including,
the month when the Employee attains the age of 60 and up to, and
including, the month immediately before ordinary age of retirement in
an amount equivalent to 60 (sixty) percent of the current full time
basic salary at the time of Early retirement.
Early Retirement Pension benefits will be paid on a monthly basis in
arrears.
4. Early Retirement Pension benefits will be paid by the Company in the
form of direct pension. In order to secure this pension undertaking,
provided that the Employee is still a member of the Group's management
team, the Company will purchase an endowment policy, to be owned by
the Company, with the Employee as insured. The Company undertakes to
pay the monthly premiums up to, and including, the month before the
Employee attains the age of 60, however, only as long as the Employee
remains a member of the Group management team. Otherwise the premium
payments will case in the month after the month when the Employee
ceased to be a member of the Group's executive team.
Each month, commencing 1 January 2002, and when full time employment
is in force, Early retirement is earned in accordance with the
methodology of technical bases applied for insurance purposes.
The policy will be pledged to the benefit of the Employee. The
Company shall have a duty to inform the insurance company in regard
to the pledging of the policy that has been purchased.
5. When payment of Early retirement benefits has commenced, the pension
amount shall be increased each year in accordance with the terms of
the insurance company's bonus policy.
6. Coordination shall be observed in respect of corresponding
undertakings from earlier and/or current employees. The Employee shall
have a duty to inform the Company with regard to the size of such
undertakings (paid-up policies) that have been earned from former
employers.
7. During the period of Early retirement, the Employee may not without
the prior consent of the Company engage in assignments and
undertakings in competitive operations.
8. During the period of payment, the amount of the Early retirement
benefits shall, where applicable, be reduced by the amount of
payments, made simultaneously, in the form of:
- sickness benefits, disability pension or temporary disability
pension in accordance with the provisions of the National Insurance
Act
- sickness benefits, life annuity in accordance with the provisions
of employer's liability insurance
- disability pension in accordance with the ITP plan, including any
other compensation from health insurance purchased by the Company,
or
- on grounds of statutory compensation requirements.
Calculations in respect of coordination of the size of deductions
shall be performed in accordance with the general insurance terms and
rules otherwise established by SPP.
9. If the Employee is no longer a member of the Group's executive team,
but his employment with the company is still in force, the Employee
shall have the right to Early retirement based on the paid-up value of
the policy at such point in time.
The paid-up value of such policy shall be adjusted upwards annually in
accordance with SPP's supplementary pension up to the date for payment
of Early retirement.
10. In the event that employment at the Company ceases on grounds of
notice of termination or dismissal before the age of 60, then Early
retirement shall be based on the paid-up value of the policy at such
point in time.
The paid-up value of such policy shall be shall be adjusted upwards
annually in accordance with SPP's supplementary pension up to the date
for payment of Early retirement.
11. In the event that the Employee suffers disablement, fully or
partially, and thereby receives sickness benefits, disability pension
or temporary disability pension in accordance with the provisions of
the National Insurance Act, then Early Retirement Pension will
nonetheless be earned in full in accordance with the terms of this
Agreement.
12. Provided that the Employee is still a member of the Group's executive
team, the Company shall undertake, in connection with early
retirement, either through SPP or in some other manner, to ensure that
the Employee shall receive the same pension benefits after attainment
of ordinary age of retirement, or at death before such date, as if the
Employee has remained in the services of the Company up to the
ordinary age of retirement with unchanged pension-bearing salary.
13. With regard to matters that are not specifically regulated by the
terms of this Agreement, the insurance company's terms and conditions
as well as insurance documentation in its pertinent parts, shall
apply.
14. Employer's contribution tax, or similar taxes or fees for which the
Company may become liable in connection with pension payments, shall
be paid by the Company.
15. The Company states as a condition for any new owner (direct or
indirect, through purchase, merger, consolidation or any other manner)
of the entire, or major parts of the Company's business operations
and/or assets, to assume and uphold the conditions of this
Supplementary Agreement in the same manner and to the same extent as
the Company would have done if no new owner was found. Negligence on
the part of the Company to obtain such an undertaking or agreement
from a new owner prior to such transfer coming into force, shall be
equivalent to breach of contract, whereby the Employee shall have the
right compensation from the Company in an equivalent amount, and on
the same terms, to which the Employee would otherwise have had the
right in accordance with the terms and conditions of this
Supplementary Agreement.
16. The terms and conditions of this Supplementary Agreement have been
drawn up in accordance with the rules governing the national pension
plan, pension terms under the terms of collective agreements, taxation
laws, etc, which were known at the time when this Supplementary
Agreement was signed. If circumstances change to any great degree, the
Company has the right and the obligation to adjust the terms and
conditions of this Agreement, however, with due consideration of the
underlying objective of this Supplementary Agreement.
Dated: 10 January, 2002
Signed:
Autoliv Inc. XX
Acknowledgement of Translation
The undersigned officer of Autoliv, Inc. hereby certifies that the
foregoing translation of the Form of Supplementary Agreement to the
Employment Agreement is a fair and accurate translation from Swedish of the
original agreement within the meaning of Rule 306 under Regulation S-T
under the Securities Act of 1933.
/s/ Xxxxxx X. Xxxxxxxx
----------------------------------
Xxxxxx X. Xxxxxxxx
Vice President Legal, General Counsel
and Secretary
Schedule to Exhibit 10.5
Form of Supplementary Agreement to the Employment Agreement
The Supplementary Agreements to the Employment Agreements between
Autoliv, Inc. and the officers named below are identical in all material
respects other than with respect to the date of the agreement, the age of
retirement and the employment position of each officer, which are as
follows:
Executive Position Retirement Date
Age
Xxxxxx X. Xxxxxxxx Vice President Legal, General Counsel, Secretary 60 4/30/97
Xxxx Xxxxxxxxx Vice President Quality 60 4/30/97
Xxx Xxxxxx Vice President Engineering 60 9/30/97
Xxxxxx Xxxxxxxxx Vice President, Chief Financial Officer 60 2/22/01
Yngve Haland Vice President Research 62 12/14/97
Mats Xxxxx Director Corporate Communications 62 12/14/97
Xxxx Xxxxxxxx Chief Information Officer 62 2/7/01
Halver Jonzon Vice President Purchasing 62 7/5/01
Xxxx-Xxxxx Patring Vice President Human Resources 62 3/12/01
