[LOGO] Agora Investor Relations Corp.
                         505 Consumers Road, Suite 906
                            Toronto, Ontario M2J4V8
                TEL: 416.496.0496/866.234.9934 FAX: 416.496.6219
WEB:www.AgoraIR.com  www.Agoracom.com                    EMAIL: AIR@Agoracom.com


THIS INVESTOR RELATIONS AGREEMENT made as of the 1st day of November 2005,

BETWEEN:

      SmarTire Systems Inc. a company subsisting under the laws of the Yukon
      Territory and having its head office at #150 - 13151 Vanier Place,
      Richmond, British Columbia, Canada V6V 2J1

                                  ("SmarTire")

AND:

      AGORA Investor Relations Corp, a company incorporated in the province of
      Ontario, and having its head office at 505 Consumers Road, Suite 906,
      Toronto, Ontario, Canada, M2J 4V8

                                    ("AGORA")

WHEREAS:

A.    SMARTIRE requires the services of a corporation capable of providing
      Investor Relations services (collectively, the "Services"); and

B.    AGORA is ready, willing and able to provide the Services on the terms and
      conditions set forth in this Agreement;

NOW THEREFORE in consideration of the mutual covenants contained herein and the
sum of $10.00 paid by each party to the other (the receipt and sufficiency of
which is hereby acknowledged), the parties hereto agree each with the other as
follows:

1.    CONSULTING SERVICES

1.1   Subject to the approval of any governing regulatory authority or stock
      exchange, if required, SMARTIRE shall retain AGORA to provide the
      Services, the particulars of which are set out in section 4 of this
      Agreement, and AGORA shall provide the Services on the terms and
      conditions of this Agreement.

1.2   AGORA shall have no right or authority, express or implied, to commit or
      otherwise obligate SMARTIRE in any manner whatsoever, except to the extent
      specifically provided for herein or specifically authorized in writing by
      SMARTIRE.
<PAGE>

2.    TERM

2.1   The term of this Agreement shall begin on November 1, 2005 and, unless
      sooner terminated as provided for in section 7 of this Agreement, shall
      expire on the October 31, 2006. SMARTIRE will have the option to renew
      this Agreement for an additional Twelve (12) months under the same terms
      of this Agreement.

3.    COMPENSATION

      As partial compensation for services under this Agreement, AGORA shall
      receive monthly cash compensation in the amount of $US 2,500.00. Upon
      acceptance of this Agreement, SMARTIRE will provide AGORA with first and
      last payments ($US 5,000), as well as, post-dated cheques for December 1,
      2005, January 1, 2006 and February 1, 2006. Thereafter, at the beginning
      of each subseqent quarter of this Agreement, SMARTIRE shall provide AGORA
      with three post-dated cheques for each respective month.

3.2   As the final component of compensation, SMARTIRE and AGORA shall enter
      into an agreement in which AGORA will be granted a warrant to purchase
      common shares of SMARTIRE, the details of which are provided in Schedule
      "B" of this Agreement. The monthly fee and stock option agreement shall
      constitute full compensation for AGORA.

3.3   AGORA shall absorb all expenses incurred in providing Services to SMARTIRE
      pursuant to this Agreement.

4.    SERVICES TO BE PROVIDED

4.1   AGORA agrees, at its expense, to effect communications between SMARTIRE
      and its shareholder base, prospective investors and the investment
      community as a whole, the details of which have been clearly defined in
      Schedule "A" of this Agreement.

4.2   AGORA agrees, at its expense, to further provide marketing and branding
      services intended to raise awareness amongst prospective investors and the
      investment community as a whole, the details of which have been clearly
      defined in Schedule "A" of this Agreement.

4.2   In performing the Services under this Agreement, AGORA shall comply with
      all applicable corporate, securities and other laws, rules, regulations,
      notices and policies, including those of any applicable Stock Exchange,
      and, in particular, AGORA shall not:

      (a)   release any financial or other information or data about SMARTIRE,
            which has not been generally released or promulgated, without the
            prior approval of SMARTIRE;

      (b)   conduct any meetings or communicate with financial analysts without
            informing SMARTIRE in advance of the proposed meeting and the format
            or agenda of such meeting;

      (c)   release any information or data about SMARTIRE to any selected or
            limited person, entity, or group if AGORA is aware or ought to be
            aware that such information or data has not been generally released
            or promulgated; and

      (d)   after notice by SMARTIRE of filing materials for a proposed public
            offering of securities of SMARTIRE, and during any period of
            restriction on publicity, AGORA shall not engage in any public
            relations efforts not in the normal course without the prior
            approval of counsel for SMARTIRE and of counsel for the
            underwriter(s), if any.


                                      -2-
<PAGE>

5.    DUTIES OF COMPANY

5.1   SMARTIRE shall supply AGORA, on a regular and timely basis, with all
      approved data and information about SMARTIRE, its management, products and
      operations, and SMARTIRE shall be responsible for advising AGORA of any
      facts which would affect the accuracy of any prior data or information
      previously supplied to AGORA. SMARTIRE will make its best efforts to make
      officers and executives available for interviews, Q&A sessions and other
      investor communications. SMARTIRE will use its best efforts to respond to
      reasonable questions put forth by shareholders and prospective investors.

5.2   SMARTIRE shall contemporaneously notify AGORA if any information or data
      being supplied to AGORA that has not been generally released or
      promulgated.

5.3   SMARTIRE shall issue a press release, to be drafted by AGORA, announcing
      the Investor Relations agreement and include AGORA contact information and
      instructions for investors to utilize the SMARTIRE IR HUB at the end of
      every subsequent press release.

6.    REPRESENTATIONS AND WARRANTIES

      AGORA represents and warrants to, and covenants with, SMARTIRE as follows:

      (a)   AGORA and its agents, employees and consultants, will comply with
            all applicable corporate and securities laws and other laws, rules,
            regulations, notices and policies, including those of any applicable
            Stock Exchange;

      (b)   AGORA will, and will cause its employees, agents and consultants to,
            act at all times in the best interests of SMARTIRE; and

      (c)   AGORA has not been subject to any sanctions or administrative
            proceedings by any securities regulatory authority

7.    TERMINATION

7.1   In the event AGORA materially breaches any term of this Agreement,
      SMARTIRE may immediately terminate this Agreement with "cause".

7.2   In the event of termination by SMARTIRE pursuant to paragraph 7.1, all
      amounts otherwise payable to AGORA pursuant to the terms of section 3
      shall cease and terminate, including unvested stock options, and AGORA
      will return all material provided by SMARTIRE.

7.3   In the event SMARTIRE materially breaches any term of this Agreement,
      AGORA may immediately terminate this Agreement.

7.4   In the event of termination by AGORA pursuant to paragraph 7.3, or
      termination of this agreement by SMARTIRE without cause, all amounts
      otherwise payable to AGORA for the remaining and complete term of this
      agreement, pursuant to the terms of Section 3, shall become immediately
      due and payable and AGORA will return all material provided by SMARTIRE.
      In addition, all stock options granted pursuant to the terms of Section 3
      shall not be effected.


                                      -3-
<PAGE>

8.    NOTICE

8.1   Any notice, commitment, election or communication required to be given
      hereunder by either party to the other party, in any capacity shall be
      deemed to have been well and sufficiently given if facsimilied or
      delivered to the address of the other party as set forth on page one of
      this Agreement, or as later amended by either party from time to time in
      writing.

8.2   Any such notice, commitment, election or other communication shall be
      deemed to have been received on the third business day following the date
      of delivery.

9.    GENERAL

9.1   All references to currency herein are to currency of The United States Of
      America.

9.2   The rights and interests of the parties under this Agreement are not
      assignable.

9.3   Time is of the essence of this Agreement.

9.4   This Agreement shall inure to the benefit of and be binding upon the
      parties hereto and their respective successors, personal representatives,
      heirs and assigns.

9.5   If any one or more of the provisions contained in this Agreement should be
      invalid, illegal or unenforceable in any respect in any jurisdiction, the
      validity, legality and enforceability of such provision or provisions will
      not in any way be affected or impaired thereby in any other jurisdiction
      and the validity, legality and enforceability of the remaining provisions
      contained herein will not in any way be affected or impaired thereby,
      unless in either case as a result of such determination this Agreement
      would fail in its essential purpose.

9.6   The heading and section numbers appearing in this Agreement or any
      schedule hereto are inserted for convenience of reference only and shall
      not in any way affect the construction or interpretation of this
      Agreement.

9.7   This Agreement shall be construed and enforced in accordance with, and the
      rights of the parties to this Agreement shall be governed by, the laws of
      Ontario and each of the parties hereby irrevocably attorn to the
      jurisdiction of the courts of Ontario.

9.8   AGORA is an independent contractor, responsible for compensation of its
      agents, employees and representatives, as well as all applicable
      withholdings therefrom and taxes thereon. This Agreement does not
      establish any partnership, joint venture, or other business entity or
      association between the parties.

9.9   This Agreement shall supersede and replace any other agreement or
      arrangement, whether oral or written, heretofore existing between the
      parties in respect of the subject matter of this Agreement.

9.10  The parties shall promptly execute or cause to be executed all documents,
      deeds, conveyances and other instruments of further assurance which may be
      reasonably necessary or advisable to carry out fully the intent of this
      Agreement.

9.11  This Agreement may be executed in as many counterparts as may be necessary
      and by facsimile, each of such counterparts so executed will be deemed to
      be an original and such counterparts together will constitute one and the
      same instrument and, notwithstanding the date of execution, will be deemed
      to bear the date as of the day and year first above written.


                                      -4-
<PAGE>

IN WITNESS WHEREOF this Agreement has been executed as of the day and year first
above written.

SmarTire Systems Inc

           /s/Al Kozak                          CEO
------------------------------------------      --------------------------------
Authorized Signatory                            Position


AGORA Investor Relations Corp.


/s/George Tsiolis
------------------------------------------
George Tsiolis, President


                                      -5-