On June 14, 2019, Veoneer AB and Veoneer US, Inc. (together, the “Veoneer Parties”), wholly-owned subsidiaries of Veoneer, Inc. (the “Company” or “Veoneer”), entered into a Separation Agreement relating to the Company’s Veoneer Nissin Brake Systems (VNBS) joint venture with its joint venture partner Nissin Kogyo Co., Ltd. (“Nissin”). The VNBS joint venture agreement was formed on March 7, 2016 pursuant to a joint venture agreement (the “JV Agreement”) among the Veoneer Parties, Nissin, Nissin Kogyo Holdings USA, Inc. and Zhongshan Nissin Industry Co., Ltd. The Separation Agreement reflects the terms set forth in the previously disclosed Memorandum of Understanding entered into between the parties. The JV Agreement provides that Veoneer owns 51% of each of the entities that comprise VNBS and Nissin owns the remaining 49% of each entity. Pursuant to the Separation Agreement, the Veoneer Parties will acquire Nissin Kogyo’s 49% interest in Veoneer Nissin Brake Systems America LLC (“VNBA”), which comprises the US operations of VNBS and VNBS will transfer or license the VNBS technologies necessary to operate the VNBA business to VNBA. VNBS agreed to provide certain transitional services to VNBA pursuant to support and transition agreements entered into between the parties. Nissin also agreed to either provide guarantees for certain VNBS commercial loans, or contribute capital to VNBS, in either case corresponding to 49% of the funding the Veoneer Parties have previously unilaterally provided VNBS. Veoneer expects to receive approximately $20 million as debt repayment from VNBS after such funding. The transactions contemplated by the Separation Agreement are expected to close on or around June 28, 2019. Upon closing, VNBA, including the transferred or licensed technologies, will become a wholly-owned Veoneer business. The VNBS operations and entities in Japan and China will remain part of the joint venture, with Veoneer owning 51% and Nissin Kogyo owning 49% of the joint venture. On June 14, 2019, the parties also entered into an Amendment to the JV Agreement, to be effective June 28, 2019. The Amendment terminates all rights and obligations related to VNBA pursuant to the JV Agreement. In addition, the Veoneer Parties agreed to withdraw any notices to Nissin under the JV Agreement regarding Nissin’s funding obligations and to release Nissin from any obligations to fund VNBA in the future. The parties agreed to mutual waivers of liability relating to VNBA. Other than as specified in the Amendment, all terms and provisions of the JV Agreement will continue in full force and effect.