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| A.   | The      Purchaser, Bendix Commercial Vehicle Systems LLC (as guarantor of the      Purchaser), the Vendor and certain subsidiaries of the Vendor intend to      enter into an Asset Purchase Agreement (the “Asset Purchase      Agreement”) which provides for, among other things, the purchase by      the Purchaser of certain assets of the Vendor (the “Assets”), pursuant to a      letter of intent dated October 15,2008. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B.   | Pursuant      to the Asset Purchase Agreement, the Vendor covenants with the Purchaser      that it will hold a special meeting of the shareholders of the Vendor (the      “Special Meeting”)      to approve and adopt the special resolutions attached as Exhibit 1 to      Appendix A (the “Special      Resolutions”). |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C.   | The      Convertible Debenture Holders, upon conversion of the necessary amount of      convertible debt into common shares of the Vendor, will vote such shares      to approve the Special Resolutions at the Special Meeting in accordance      with the terms and conditions hereinafter set  forth. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D.   | It      is in the best interests of the Convertible Debenture Holders that the      purchase and sale of the Assets contemplated in the Asset Purchase      Agreement proceed. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| E.   | As      a condition precedent to the Purchaser entering into the Asset Purchase      Agreement, the Vendor and the Convertible Debenture Holders have agreed to      enter into this Agreement with thePurchaser. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.   | Each      of the Convertible Debenture Holders represents and warrants to the Purchaser      that: |
|----------------|---------------------------------------------------------------------------------------------------------|

| (a)   | collectively      the Convertible Debenture Holders have the right to convert a portion of      their convertible debt into at least twenty-four billion common shares of      the Vendor (the “Conversion      Shares”). |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | neither      the execution, delivery or performance of this Agreement will constitute a      violation of, or conflict with, or default under, any contract,      understanding, arrangement or restriction of any kind to which it is a      party, including any of its organizational documents;  and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | this      Agreement is a valid and binding agreement enforceable by the Purchaser      against it in accordance with its terms, subject to applicable laws,      including, without limitation, laws relating to fiduciary duties and laws      relating to bankruptcy, insolvency, reorganization and other laws of      general application relating to or affecting creditors’ rights generally      and the availability of equitableremedies. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Each      of the Convertible Debenture Holders hereby agrees and undertakes to      cause, prior to the Time of Closing (as defined in the Asset Purchase      Agreement), and subject to the satisfaction of the Conditions (as defined      below): |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | to      exercise its right to convert the necessary amount of convertible debt to      provide the required number of common shares of the Vendor to pass the      Special Resolutions, provided that the Vendors shall not be required to      convert more than US$2,000,000.00 of their convertible debt in connection      with the same; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | to      enter into the voting agreement with the Purchaser and Vendor in the form      attached as Appendix A (the “Voting Agreement”);      and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | to      act in accordance with its obligations under the Voting      Agreement. |
|-----------------|---------------------------------------------------------------------------------|

| 3.   | Each      of the Convertible Debenture Holders hereby acknowledges and confirms that      the collateral assignment to YA Global (in its capacity as collateral      agent for the Convertible Debenture Holders) of, and security interest in      and to, payments due the Vendor under the Asset Purchase Agreement are      subject to the Purchaser's set-off rights set forth in the Purchase      Agreement. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | As      used herein, “Conditions” means: (i)      the Asset Purchase Agreement shall not have terminated in accordance with      its terms; (ii) neither the Vendor nor any one of the Convertible      Debenture Holders shall have received or become subject to any executive,      administrative or judicial order, writ, injunction, stay or other process      prohibiting or restricting such party from taking any of the actions      contemplated under this Agreement, the Asset Purchase Agreement or any      Voting Agreement; (iii) there shall not have been commenced or threatened      in writing against any of the Convertible Debenture Holders any material      action or proceeding relating to any of the transactions contemplated      under this Agreement or any Voting Agreement whereby such Convertible      Debenture Holder believes, acting reasonably, there is a material risk      that such action or proceeding has merit, provided, however that if the      Purchaser, acting reasonably, disagrees that there is such a material      risk, the parties will promptly obtain a legal opinion from a third party      law firm reasonably acceptable  to both parties as to whether      there is such a material risk, and if such legal opinion indicates that      there is no such material risk, this condition shall be satisfied; and      (iv) the performance by a Convertible Debenture Holder of its obligations      hereunder or under any Voting Agreement would constitute a breach by such      Convertible Debenture Holder of applicable law, as determined by such      Convertible Debenture Holder acting reasonably, provided, however, that if      the Purchaser, acting reasonably, disagrees with such Convertible      Debenture Holder as to whether such performance would cause a breach of      applicable law, the parties will promptly obtain a legal opinion from a      third party law firm reasonably acceptable to both parties as to whether      such performance would constitute a violation of applicable law, and if      such legal opinion indicates that no such violation or breach would occur,      this condition shall be satisfied; provided, that if, any      event described in the foregoing clause (ii), (iii), or (iv) occurs      involving one or more of the Convertible Debenture Holders, each such      Convertible Debenture Holder agrees to use its commercially reasonable      best efforts to (x) cause such order, writ, injunction, stay, process,      action or proceeding to be dismissed or threat to be withdrawn as to such      Convertible Debenture Holder as soon as practicable, and/or (y) determine      and act in a manner in which to perform its obligations hereunder which      does not, or will not, constitute a breach of such applicable law,      provided that the Convertible Debenture Holders shall not be required to      pay more than US$250,000.00 in out of pocket expenses (including, without      limitation, attorneys fees and expenses) or payments to third parties in      order to obtain or satisfy conditions (x) or (y).  If at      any time any party hereto believes condition (ii), (iii) or (iv) may      become applicable, it will forthwith both notify the other parties and      provide all relevant information to the other parties and, if applicable,      any appointed third party law firm in order for each of the parties and      such law firm to make its owndetermination. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | Each      of the parties will from time to time execute and deliver all such further      documents and instruments and do all acts and things as any other party      may reasonably require to effectively carry out or better evidence or      perfect the full intent and meaning of this  Agreement. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | This      Agreement shall be binding upon and enure to the benefit of the parties      and their respective successors andassigns. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | This      Agreement shall be governed by and construed in accordance with the laws      of the Province of British Columbia and the laws of Canada applicable      therein. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.   | For      the purpose of all legal proceedings, this Agreement will be deemed to      have been performed in the Province of British Columbia and the courts of      the Province of British Columbia will have jurisdiction to entertain any      action arising under this Agreement.  Each of the parties      attorns to the jurisdiction of the courts of the Province of British      Columbia. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.   | This      Agreement may be executed in any number of counterparts, each of which      will be deemed to be an original and all of which taken together will be      deemed to constitute one and the same  instrument. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.   | Delivery      of an executed signature page to this Agreement by any party by electronic      transmission will be as effective as delivery of a manually executed copy      of this Agreement by such party. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| BENDIX      CVS CANADA INC.                                                     |
|---------------------------------------------------------------------------------|
|                                                                            |
| Per:                                                                            | /s/      Joseph McAleese |   |
|                                                                            | Joseph      McAleese  |   |
|                                                                            |
| SMARTIRE      SYSTEMS INC.                                                      |
|                                                                            |
| Per:                                                                            | /s/      David Warkentin |   |
|                                                                            | David      Warkentin |   |
|                                                                            |   |   |
| YA GLOBAL INVESTMENTS,      L.P., f/k/a      CORNELL      CAPITAL PARTNERS L.P. |
|                                                                            |
| Per:                                                                            | /s/      Mark Angelo |   |
|                                                                            | Mark      Angelo, Portfolio Manager |   |
|                                                                            |   |   |
| XENTENIAL      HOLDINGS LIMITED                                                 |
|                                                                            |
| Per:                                                                            | /s/      Mark Angelo |   |
|                                                                            | Mark      Angelo, Director |   |
|                                                                            |   |   |
| STARAIM      ENTERPRISES LIMITED                                                |
|                                                                            |
| Per:                                                                            | /s/      Mark Angelo |   |
|                                                                            | Mark      Angelo, Director |   |
|                                                                            |

| A.   | The      Purchaser, Bendix Commercial Vehicle Systems LLC (as guarantor of the      Purchaser), the Vendor and certain subsidiaries of the Vendor have entered      into an Asset Purchase Agreement (the “Asset Purchase      Agreement”) dated December 4, 2008 which provides for, among      other things, the purchase by the Purchaser of certain assets of the      Vendor (the “Assets”). |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B.   | Pursuant      to the Asset Purchase Agreement, the Vendor covenants with the Purchaser      that it will hold a special meeting of the shareholders of the Vendor (the      “Special Meeting”)      to approve and adopt the special resolutions attached as Exhibit 1 (the      “Special      Resolutions”). |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C.   | It      is in the best interests of the Shareholder that the purchase and sale of      the Assets contemplated in the Asset Purchase Agreement      proceed. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D.   | As      a condition precedent to the obligations of the Purchaser to complete the      purchase of the Assets under the Asset Purchase Agreement, the Vendor and      the Shareholder have agreed to enter into this Agreement with the      Purchaser. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.   | The      Shareholder represents and warrants to the Purchaser  that: |
|----------------|----------------------------------------------------------------------|

| (a)   | it      is the legal and beneficial owner of, and has the irrevocable right to      vote or cause to be voted in respect of the Special Resolutions, the      number of common shares of the Vendor as set forth on the signature page      hereof (together with any common shares of the Vendor acquired by the      Shareholder prior to the Special Meeting, the “Shares”); |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | neither      the execution, delivery or performance of this Agreement will constitute a      violation of, or conflict with, or default under, any contract,      understanding, arrangement or restriction of any kind to which the      Shareholders is a party, including any of its organizational      documents; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | this      Agreement is a valid and binding agreement enforceable by the Purchaser      against the Shareholder in accordance with its terms, subject to      applicable laws, including, without limitation, laws relating to fiduciary      duties and laws relating to bankruptcy, insolvency, reorganization and      other laws of general application relating to or affecting creditors’      rights generally and the availability of equitable    remedies. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | The      Shareholder hereby agrees and undertakes, subject to satisfaction of the      Conditions (as defined below), to: |
|----------------|---------------------------------------------------------------------------------------------------------------------------|

| (a)   | ensure      that all of the Shares are represented at the Special    Meeting; |
|-----------------|-------------------------------------------------------------------------------|

| (b)   | vote      all of the Shares at the Special Meeting in favour of the Special      Resolutions; |
|-----------------|-----------------------------------------------------------------------------------------------|

| (c)   | vote      all of the Shares against any proposed resolution which would or is      reasonably likely to interfere, impede, delay, frustrate, prevent, or      adversely affect the consummation of the Asset Purchase Agreement and the      transactions contemplated thereby or would or is reasonably likely to      result in a breach (or failure to comply) in any material respect of any      representation, warranty, covenant or agreement of the Vendor under the      Asset Purchase Agreement; and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | vote      all of the Shares against any other action, transaction, proposal or      agreement, without regard to the terms of such action, transaction,      proposal or agreement, made in opposition to adoption of the Asset      Purchase Agreement or in competition or inconsistent with the Asset      Purchase Agreement and the transactions contemplated    thereby. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | The      Shareholder hereby undertakes, subject to satisfaction of the Conditions,      that it will not with respect to theShares: |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | take      any action that would make any representation or warranty contained herein      untrue or incorrect or could reasonably be expected to have the effect of      preventing, impeding or interfering with or adversely affecting its      performance of its obligationshereunder; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | grant      any proxies or enter into any voting trust or other agreements or      arrangements with respect to the voting of any shares, other than any      proxies, voting trusts or voting agreements or arrangements that are not      inconsistent with the voting obligations hereunder;  and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | sell,      assign, transfer, give, bequeath, encumber or otherwise dispose of, or      enter into any contract, option or other arrangement or understanding with      respect to the direct or indirect assignment, transfer, encumbrance or      other disposition of any of theShares. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | As      used herein, “Conditions” means: (i)      the Asset Purchase Agreement shall not have terminated in accordance with      its terms; (ii) neither the Vendor nor any one of the Convertible      Debenture Holders (as defined in the voting arrangement agreement (the      “Voting Arrangement      Agreement”) made as of December 4, 2008 between the Vendor,      the Purchaser and YA Global Investments, L.P., f/k/a Cornell Capital      Partners LP, Xentenial Holdings Limited, and Staraim Enterprises Limited)      or any Voting Agreement (as defined in the Voting Arrangement Agreement)      shall have received or become subject to any executive, administrative or      judicial order, writ, injunction, stay or other process prohibiting or      restricting such party from taking any of the actions contemplated under      this Agreement, the Asset Purchase Agreement or the Voting Arrangement      Agreement; (iii) there shall not have been commenced or threatened in      writing against any of the Convertible Debenture Holders any material      action or proceeding relating to any of the transactions contemplated      under this Agreement or the Voting Arrangement Agreement whereby such      Convertible Debenture Holder believes, acting reasonably, there is a      material risk that such action or proceeding has merit, provided, however      that if the Purchaser, acting reasonably, disagrees that there is such a      material risk, the parties will promptly obtain a legal opinion from a      third party law firm reasonably acceptable  to both parties as      to whether there is such a material risk, and if such legal opinion      indicates that there is no such material risk, this condition shall be      satisfied; and (iv) the performance by a Convertible Debenture Holder of      its obligations hereunder or under the Voting Arrangement Agreement would      constitute a breach by such Convertible Debenture Holder of applicable      law, as determined by such Convertible Debenture Holder acting reasonably,      provided, however, that if the Purchaser, acting reasonably, disagrees      with such Convertible Debenture Holder as to whether such performance      would cause a breach of applicable law, the parties will promptly obtain a      legal opinion from a third party law firm reasonably acceptable to both      parties as to whether such performance would constitute a violation of      applicable law, and if such legal opinion indicates that no such violation      or breach would occur, this condition shall be satisfied; provided, that if, any      event described in the foregoing clause (ii), (iii), or (iv) occurs      involving one or more of the Convertible Debenture Holders, each such      Convertible Debenture Holder agrees to use its commercially reasonable      best efforts to (x) cause such order, writ, injunction, stay, process,      action or proceeding to be dismissed or threat to be withdrawn as to such      Convertible Debenture Holder as soon as practicable, and/or (y) determine      and act in a manner in which to perform its obligations hereunder which      does not, or will not, constitute a breach of such applicable law,      provided that the Convertible Debenture Holders shall not be required to      pay more than US$250,000.00 in out of pocket expenses (including, without      limitation, attorneys fees and expenses) or payments to third parties in      order to obtain or satisfy conditions (x) or (y).  If at      any time any party hereto believes condition (ii), (iii) or (iv) may      become applicable, it will forthwith both notify the other parties and      provide all relevant information to the other parties and, if applicable,      any appointed third party law firm in order for each of the parties and      such law firm to make its owndetermination. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | Each      of the parties will from time to time execute and deliver all such further      documents and instruments and do all acts and things as any other party      may reasonably require to effectively carry out or better evidence or      perfect the full intent and meaning of this  Agreement. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | This      Agreement shall be binding upon and enure to the benefit of the parties      and their respective successors andassigns. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | This      Agreement shall be governed by and construed in accordance with the laws      of the Province of British Columbia and the laws of Canada applicable      therein. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.   | For      the purpose of all legal proceedings, this Agreement will be deemed to      have been performed in the Province of British Columbia and the courts of      the Province of British Columbia will have jurisdiction to entertain any      action arising under this Agreement.  Each of the parties      attorns to the jurisdiction of the courts of the Province of British      Columbia. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.   | This      Agreement may be executed in any number of counterparts, each of which      will be deemed to be an original and all of which taken together will be      deemed to constitute one and the same  instrument. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.   | Delivery      of an executed signature page to this Agreement by any party by electronic      transmission will be as effective as delivery of a manually executed copy      of this Agreement by such party. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| BENDIX      CVS CANADA INC.                                              |
|--------------------------------------------------------------------------|
|                                                                     |
| Per:                                                                     |   |   |
|                                                                     |   |   |
|                                                                     |
| SMARTIRE      SYSTEMS INC.                                               |
|                                                                     |
| Per:                                                                     |   |   |
|                                                                     |   |   |
|                                                                     |   |   |
|                                                                  |
|                                                                     |
| Per:                                                                     |   |   |
|                                                                     |   |   |
|                                                                     |   |   |
|                                                                     |   |   |
|                                                                     |
| Number      of Common Shares of theVendor      subject to this Agreement |
|                                                                     |

|   | 1. | In      accordance with Section 301(1) of the Business Corporations      Act (British Columbia) the sale of all or substantially all of the      undertaking of the Company by the Company, SmarTire Technologies Inc. and      SmarTire USA, Inc. to Bendix CVS Canada Inc. pursuant to the Asset      Purchase Agreement, as such agreement may be amended from time to time be      and is hereby ratified, confirmed and approved;  and |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Any      director or officer of the Company be and is hereby authorized, for and on      behalf of and in the name of the Company, to execute and deliver any      documents and instruments and take any such actions as such director or      officer may determine to be necessary or desirable to implement this      resolution and the matters authorized hereby, such determination to be      conclusively evidenced by the execution and delivery of any such documents      or instruments and the taking of any such  actions. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1. | The      company change its name from SmarTire Systems Inc. to  or such      other name as is approved by the regulatory authorities having      jurisdiction; and |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Any      director or officer of the Company be and is hereby authorized, for and on      behalf of and in the name of the Company, to execute and deliver any      documents and instruments and take any such actions as such director or      officer may determine to be necessary or desirable to implement this      resolution and the matters authorized hereby, such determination to be      conclusively evidenced by the execution and delivery of any such documents      or instruments and the taking of any such  actions. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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