INTERCREDITOR AGREEMENT
 
THIS INTERCREDITOR AGREEMENT (“Agreement”) dated as of February 28, 2006, is
among AIGH INVESTMENT PARTNERS LLC, a Delaware limited liability company with
offices located at 6006 Berkeley Avenue, Baltimore, Maryland 21209 (“AIGH”) and
PETRUS HOLDINGS S.A., a corporation organized under the laws of Luxembourg
(“Petrus”).
 
 
RECITALS
 
WHEREAS, Neonode Inc, a Delaware corporation, owns all the issued and
outstanding shares of Neonode AB, a corporation organized under the laws of
Sweden, at the date hereof.
 
WHEREAS, Neonode Inc may issue under a Note Purchase Agreement, Notes up to an
aggregate amount of $5,500,000 to AIGH.
 
WHEREAS, Neonode AB has issued certain indebtedness to Petrus in an amount of
SEK 5,353,000.
 
WHEREAS, AIGH and Petrus desire to set forth the status of the respective
obligations owed to them.
 
1. Ranking
 
1.1 AIGH and Petrus hereby agree that any indebtedness of either Neonode Inc or
Neonode AB, as the case may be, owing to either one of them will rank, as to
both of them, equally (pari passu).
 
1.2 If either AIGH or Petrus, as the case may be, receives any payment with
respect to such indebtedness including as a result of any realization on any
collateral security for such indebtedness, it shall pay one to the other so much
of such payment so that each of AIGH and Petrus shall receive an amount in
proportion to the amount of such indebtedness held by it compared with the total
amount of all such indebtedness.
 
2. Subordination
 
AIGH and Petrus hereby agree that all indebtedness of Neonode Inc and Neonode AB
held by them shall be subordinated in right of payment to all indebtedness of
Neonode AB to Almi Foretagspartner AB, a corporation organized under the laws of
Sweden.
 
3. Severability
 
In case any one or more of the provisions contained in this Agreement or in any
instrument contemplated hereby, or any application thereof, shall be invalid,
illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein and therein, and any
other application thereof, shall not in any way be affected or impaired thereby.
 
 
 

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4. Successor and Assigns
 
This Agreement shall be binding upon AIGH and Petrus and their respective
successors and assigns and shall inure to the benefit of AIGH and Petrus and
their respective successors and assigns.
 
5. Counterparts
 
This Agreement may be executed in two or more counterparts, each of which shall
be deemed to be an original but all of which together shall constitute one and
the same instrument.
 
6. Amendment; Waiver, Etc.
 
Neither this Agreement nor any term hereof may be amended, waived, discharged or
terminated except in a writing signed by the party against whom enforcement of
such amendment, waiver, discharge or termination is sought.
 
7. Headings
 
The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect any of the terms hereof.
 
8. Notices
 
All notices permitted or required to be given by or among AIGH and Petrus under
this Agreement shall be in writing and shall be deemed to be duly given if given
personally with receipt acknowledged or sent by registered or certified mail or
by facsimile (which shall be confirmed by a writing sent by registered or
certified mail on the same day that such facsimile transmission is sent), or by
overnight courier for next day delivery, addressed to the parties at their
addresses or facsimile numbers set forth below, unless notice in writing is
given of a change of address or facsimile number in the manner set forth herein,
in which case notices shall be sent to the new address or facsimile number as
designated. Notice of change of address or facsimile number shall be deemed
given when actually received or upon refusal to accept delivery thereof; all
other notices shall be deemed given and received on the earlier of (a) when
actually received or upon refusal to accept delivery thereof, or (b) one
business day after being sent by facsimile or overnight courier and four days
after mailing, as aforesaid.
 

Petrus:
Petrus Holding S.A.
Attention:
Telephone:
Facsimile:
Email:

 
 
 

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AIGH:
AIGH Investment Partners LLC
6006 Berkeley Avenue
Baltimore, Maryland 21209
Attention:    Orin Hirschman, Managing member
Telephone:  +1-410-415-6464
Facsimile:     +1-212-751-2892
Email: orin@adamsmithco.com

 
9. Governing Law
 
This Agreement shall be governed by and construed in accordance with the laws of
the State of New York.
 
10. Termination
 
Except with respect to any obligations hereunder which are expressly stated to
survive the termination hereof, this Agreement shall terminate on the date on
which the Neonode Inc and Neonode AB indebtednesses have been fully and
indefeasibly paid in full.
 
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first written above.

        AIGH INVESTMENT PARTNERS LLC  
   
   
    By:      

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Name:   Title:

 

        PETRUS HOLDING S.A.  
   
   
    By:      

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Name:   Title:

 
 
Receipt Acknowledged
 
ALMI FORETAGSPARTNER AB

 
 

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By:
Its:
 
 
 

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