Document:

Exhibit 4.3

THE WARRANT REPRESENTED BY THIS CERTIFICATE AND THE SECURITIES TO BE ISSUED UPON
ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES  SECURITIES ACT OF
1933 (THE  "SECURITIES  ACT") OR APPLICABLE  STATE  SECURITIES  LAWS (THE "STATE
ACTS") AND SHALL NOT BE SOLD OR  TRANSFERRED  UNLESS SUCH SALE OR  TRANSFER  HAS
BEEN  REGISTERED  UNDER THE  SECURITIES ACT AND STATE ACTS, OR AN EXEMPTION FROM
THE  REGISTRATION  REQUIREMENTS IS AVAILABLE,  THE AVAILABILITY OF WHICH MUST BE
ESTABLISHED TO THE SATISFACTION OF THE COMPANY.

                               REDEMPTION WARRANT

WARRANT NO. ___________                            NUMBER OF SHARES:   _________

                             SMARTIRE SYSTEMS, INC.
                     COMMON STOCK, PAR VALUE $.001 PER SHARE

         This Warrant is issued to  ___________________  ("Holder")  by SmarTire
Systems,  Inc., a Yukon Territory  corporation  (hereinafter with its successors
called the "Company").

         For value received and subject to the terms and conditions  hereinafter
set out, in the event that the Company  exercises  its right of  redemption  for
either all or a portion of the outstanding 5% convertible  debentures which were
issued to the Holder  pursuant to a private  placement by the Company,  and upon
three (3) days advanced written notice to the Holder by the Company,  the Holder
shall receive for every $100,000  invested,  a warrant to purchase 50,000 shares
of common stock, par value $.001 per share ("Common Shares") of the Company. The
warrants  are  exercisable  at 120% of the  closing  bid price on the  Company's
common  stock as reported by  Bloomberg,  L.P.  for the trading day  immediately
preceding the date on which the notice of exercise is sent to the Company.  Such
exercise price per Common Share,  adjusted from time to time as provided herein,
is referred to as the "Exercise Price."

         1. The Holder may  exercise  this  Warrant,  in whole or in part,  upon
surrender of this Warrant,  with the exercise form annexed hereto duly executed,
at the office of the Company,  or such other office as the Company  shall notify
the Holder in writing, together with a certified or bank cashier's check payable
to the order of the Company in the amount of the Exercise Price times the number
of Common Shares being exercised.

         2. The  person  or  persons  in whose  name or  names  any  certificate
representing  Common Shares is issued  hereunder  shall be deemed to have become
the holder of record of the Common Shares represented thereby as of the close of
business on the date on which this  Warrant is  exercised  with  respect to such
shares,  whether or not the transfer books of the Company shall be closed. Until
such time as this Warrant is exercised or terminates, the Exercise Price payable

                                       1
<PAGE>

and the number and  character  of  securities  issuable  upon  exercise  of this
Warrant are subject to adjustment as hereinafter provided.

         3. Unless previously exercised,  this Warrant shall expire at 5:00 p.m.
Eastern Standard Time, two (2) years from the date of issuance and shall be void
thereafter or can be extended at the Company's discretion ("Expiration Date").

         4. The  Company  covenants  that it will at all times  reserve and keep
available a number of its  authorized  Common  Shares,  free from all preemptive
rights,  which will be sufficient  to permit the exercise of this  Warrant.  The
Company  further  covenants  that such  shares as may be issued  pursuant to the
exercise of this Warrant will, upon issuance,  be duly and validly issued, fully
paid and nonassessable and free from all taxes, liens, and charges.

         5. If the Company subdivides its outstanding Common Shares, by split-up
or otherwise, or combines its outstanding Common Shares, the Exercise Price then
applicable to shares covered by this Warrant shall forthwith be  proportionately
decreased in the case of a subdivision, or proportionately increased in the case
of a combination.

         6. If (a) the Company reorganizes its capital, reclassifies its capital
stock,  consolidates or merges with or into another corporation (but only if the
Company is not the  surviving  corporation  and no longer has more than a single
shareholder) or sells,  transfers or otherwise  disposes of all or substantially
all its property,  assets, or business to another corporation,  and (b) pursuant
to the terms of such reorganization, reclassification, merger, consolidation, or
disposition  of assets,  shares of common  stock of the  successor  or acquiring
corporation,  or any cash,  shares of stock, or other  securities or property of
any nature  whatsoever  (including  warrants or other  subscription  or exercise
rights) in addition to or in lieu of common stock of the  successor or acquiring
corporation  ("Other  Property"),  are to be received by or  distributed  to the
holders of Common  Shares,  then (c) Holder shall have the right  thereafter  to
receive,  upon  exercise  of this  Warrant,  the same number of shares of common
stock of the successor or acquiring  corporation  and Other Property  receivable
upon  such   reorganization,   reclassification,   merger,   consolidation,   or
disposition  of assets as a holder of the number of Common Shares for which this
Warrant is  exercisable  immediately  prior to such  event.  At the time of such
reorganization,   reclassification,  merger,  consolidation  or  disposition  of
assets,  the successor or acquiring  corporation  shall expressly assume the due
and punctual observance and performance of each and every covenant and condition
of  this  Warrant  to be  performed  and  observed  by the  Company  and all the
obligations and liabilities  hereunder,  subject to such modifications as may be
deemed appropriate (as determined by resolution of the Board of Directors of the
Company)  in order to adjust  the  number of shares of the  common  stock of the
successor or acquiring  corporation for which this Warrant is  exercisable.  For
purposes  of  this  section,   "common  stock  of  the  successor  or  acquiring
corporation"  shall include stock of such  corporation of any class which is not
preferred  as to  dividends  or  assets  over any  other  class of stock of such
corporation  and which is not subject to  redemption  and shall also include any
evidences  of  indebtedness,  shares of  stock,  or other  securities  which are
convertible into or exchangeable for any such stock,  either immediately or upon
the arrival of a specified  date or the  happening of a specified  event and any
warrants  or other  rights to  subscribe  for or purchase  any such  stock.  The

                                       2
<PAGE>

foregoing  provisions  of this  section  shall  similarly  apply  to  successive
reorganizations,  reclassifications,  mergers, consolidations, or disposition of
assets.

         7. If a voluntary or involuntary dissolution, liquidation or winding up
of the Company (other than in connection with a merger or  consolidation  of the
Company) is at any time proposed  during the term of this  Warrant,  the Company
shall give written notice to the Holder at least thirty days prior to the record
date of the  proposed  transaction.  The notice shall  contain:  (1) the date on
which the  transaction  is to take place;  (2) the record date (which must be at
least  thirty  days after the giving of the  notice) as of which  holders of the
Common Shares entitled to receive  distributions  as a result of the transaction
shall be determined;  (3) a brief  description of the  transaction;  (4) a brief
description  of the  distributions,  if any, to be made to holders of the Common
Shares as a result of the  transaction;  and (5) an  estimate of the fair market
value of the  distributions.  On the  date of the  transaction,  if it  actually
occurs, this Warrant and all rights existing under this Warrant shall terminate.

         8. In no event  shall any  fractional  Common  Share of the  Company be
issued upon any exercise of this  Warrant.  If, upon exercise of this Warrant as
an entirety, the Holder would, except as provided in this Section 8, be entitled
to receive a  fractional  Common  Share,  then the Company  shall issue the next
higher number of full Common  Shares,  issuing a full share with respect to such
fractional  share.  If this  Warrant is  exercised at one time for less than the
maximum  number of Common  Shares  purchasable  upon the  exercise  hereof,  the
Company  shall  issue  to the  Holder  a new  warrant  of like  tenor  and  date
representing  the number of Common  Shares equal to the  difference  between the
number of shares  purchasable  upon full exercise of this Warrant and the number
of shares that were exercised upon the exercise of this Warrant.

         9. No adjustments  in the Exercise Price shall be required  unless such
adjustment  would require an increase or decrease of at least five cents in such
price,  provided however, that any adjustments which by reason of this Section 9
are not  required to be made shall be carried  forward and taken into account in
any subsequent adjustment.

         10. Whenever the Exercise Price is adjusted,  as herein  provided,  the
Company shall  promptly  deliver to the Holder a  certificate  setting forth the
Exercise Price after such  adjustment and setting forth a brief statement of the
facts requiring such adjustment.

         11. If at any time prior to the expiration or exercise of this Warrant,
the  Company  shall pay any  dividend or make any  distribution  upon its Common
Shares or shall make any  subdivision or combination  of, or other change in its
Common Shares, the Company shall cause notice thereof to be mailed, first class,
postage  prepaid,  to Holder at least  thirty  full  business  days prior to the
record  date  set for  determining  the  holders  of  Common  Shares  who  shall
participate in such dividend,  distribution,  subdivision,  combination or other
change.  Such notice shall also  specify the record date as of which  holders of
Common Shares who shall  participate in such dividend or  distribution  is to be
determined. Failure to give such notice, or any defect therein, shall not affect
the legality or validity of any dividend or distribution.

                                       3
<PAGE>

         12. The  Company  will  maintain a  register  containing  the names and
addresses of the Holder and any assignees of this Warrant. Holder may change its
address  as shown on the  warrant  register  by  written  notice to the  Company
requesting  such  change.  Any  notice  or  written  communication  required  or
permitted to be given to the Holder may be  delivered by confirmed  facsimile or
telecopy  or by a  recognized  overnight  courier,  addressed  to  Holder at the
address shown on the warrant register.

         13. This Warrant has not been  registered  under the  Securities Act of
1933, as amended (the  "Securities  Act"), or any state  securities laws ("State
Acts") or regulations in reliance upon exemptions  under the Securities Act, and
exemptions  under the State Acts.  Subject to compliance with the Securities Act
and State Acts, this Warrant and all rights  hereunder are transferable in whole
or in part,  at the office of the Company at which this Warrant is  exercisable,
upon  surrender of this Warrant  together with the  assignment  hereof  properly
endorsed.

         14.  In  case  this  Warrant  shall  be  mutilated,  lost,  stolen,  or
destroyed,  the Company  may issue a new warrant of like tenor and  denomination
and deliver the same (a) in exchange and substitution for and upon surrender and
cancellation  of any  mutilated  Warrant,  or (b) in lieu of any  Warrant  lost,
stolen,  or destroyed,  upon receipt of evidence  satisfactory to the Company of
the loss, theft or destruction of such Warrant (including a reasonably  detailed
affidavit with respect to the  circumstances of any loss, theft, or destruction)
and of indemnity with sufficient surety satisfactory to the Company.

         15. Unless a current  registration  statement under the Securities Act,
shall be in effect with respect to the  securities to be issued upon exercise of
this Warrant, the Holder, by accepting this Warrant,  covenants and agrees that,
at the time of  exercise  hereof,  and at the time of any  proposed  transfer of
securities acquired upon exercise hereof, the Company may require Holder to make
such  representations,  and may place such legends on certificates  representing
the Common Shares  issuable upon exercise of this Warrant,  as may be reasonably
required in the  opinion of counsel to the Company to permit such Common  Shares
to be issued without such registration.

         16.  This  Warrant  does not  entitle  Holder to any of the rights of a
stockholder of the Company.

         17. Nothing expressed in this Agreement and nothing that may be implied
from any of the provisions hereof is intended, or shall be construed,  to confer
upon,  or give to, any  person or  corporation  other  than the  parties to this
Agreement any covenant, condition,  stipulation, promise, or agreement contained
herein,  and all covenants,  conditions,  stipulations,  promises and agreements
contained  herein  shall be for the sole and  exclusive  benefit of the  parties
hereto and their respective successors and assigns.

         18. The  provisions  and terms of this  Warrant  shall be  construed in
accordance with the laws of the Province of British Columbia, Canada.

                                       4
<PAGE>

         IN WITNESS WHEREOF,  this Warrant has been duly executed by the Company
as of the ______ day of _________, 2004.

                                         SMARTIRE SYSTEMS, INC.

                                         By:
                                             ----------------------------
                                             Robert Rudman
                                             President & Chief Executive Officer

HOLDER:

-------------------------------

                                       5
<PAGE>

                                FORM OF EXERCISE

                                                      Date: ____________________

To:      SMARTIRE SYSTEMS, INC.

         The undersigned hereby subscribes for _______ shares of common stock of
SmarTire  Systems,  Inc. covered by this Warrant.  The  certificate(s)  for such
shares should be issued in the name of the undersigned or as otherwise indicated
below:

                                         ----------------------------
                                         Signature:

                                         ----------------------------
                                         Printed Name

                                         ----------------------------
                                         Name for Registration, if different

                                         ----------------------------
                                         Street Address

                                         ----------------------------
                                         City, State and Zip Code

                                         ----------------------------
                                         Social Security Number

<PAGE>

                                   ASSIGNMENT

         For Value Received, the undersigned hereby sells, assigns and transfers
unto the  assignee(s) set forth below the within Warrant  certificate,  together
with all right, title and interest therein,  and hereby irrevocably  constitutes
and appoints ___________________________________  attorney, to transfer the said
Warrant on the books of the  within-named  Company with respect to the number of
Common Shares set forth below, with full power of substitution in the premises.

                    Social Security or
                     other Identifying
Name(s) of              Number(s) of                                     No. of
Assignee(s)             Assignee(s)            Address                   Shares
-----------          ------------------        -------                   -------

Dated: _______________

                                    -----------------------------------------
                                    Signature

                                    NOTICE:  THE  SIGNATURE  TO THIS  ASSIGNMENT
                                    MUST  CORRESPOND  WITH THE  NAME AS  WRITTEN
                                    UPON  THE  FACE  OF  THE  WARRANT  IN  EVERY
                                    PARTICULAR,     WITHOUT     ALTERATION    OR
                                    ENLARGEMENT, OR ANY CHANGE WHATSOEVER.

                                    -----------------------------------------
                                    Print Name and TitleExhibit 4.4

                          SECURITIES PURCHASE AGREEMENT

         THIS  SECURITIES  PURCHASE  AGREEMENT (this  "Agreement"),  dated as of
December 15, 2004, by and among SMARTIRE SYSTEMS,  INC., a corporation organized
and existing under the laws of the Yukon Territory, with headquarters located at
Suite 150, 13151 Vanier Place,  Richmond,  British Columbia V6V 2J1, Canada (the
"Company"), and the Buyers listed on Schedule I attached hereto (individually, a
"Buyer" or collectively "Buyers").

                                   WITNESSETH:

         WHEREAS, the Company and the Buyer(s) are executing and delivering this
Agreement in reliance upon an exemption from securities registration pursuant to
Section 4(2) and/or Rule 506 of Regulation D ("Regulation  D") as promulgated by
the U.S. Securities and Exchange Commission (the "SEC") under the Securities Act
of 1933, as amended (the "1933 Act");

         WHEREAS,  the parties  desire  that,  upon the terms and subject to the
conditions  contained herein,  the Company shall issue and sell to the Buyer(s),
as provided  herein,  and the  Buyer(s)  shall  purchase up to Two Million  Five
Hundred   Thousand   Dollars   ($2,500,000)   of  convertible   debentures  (the
"Convertible  Debentures"),  which  shall  be  convertible  into  shares  of the
Company's  common stock,  no par value (the "Common  Stock") (as converted,  the
"Conversion  Shares"),  which shall be funded  within the  third3rdbusiness  day
following the date hereof (the  "Closing"),  for a total purchase price of up to
Two Million Five Hundred Thousand Dollars  ($2,500,000),  (the "Purchase Price")
in the  respective  amounts set forth  opposite each Buyer(s) name on Schedule I
(the "Subscription Amount"); and

         WHEREAS,  contemporaneously  with the  execution  and  delivery of this
Agreement, the parties hereto are executing and delivering a Registration Rights
Agreement  substantially in the form attached hereto as Exhibit A (the "Investor
Registration  Rights  Agreement")  pursuant  to which the  Company has agreed to
provide  certain  registration  rights  under  the  1933 Act and the  rules  and
regulations promulgated thereunder, and applicable state securities laws; and

         WHEREAS,  the  aggregate  proceeds  of  the  sale  of  the  Convertible
Debentures  contemplated hereby shall be held in escrow pursuant to the terms of
an escrow agreement  substantially in the form of the Escrow Agreement  attached
hereto as Exhibit B.

         WHEREAS,  contemporaneously  with the  execution  and  delivery of this
Agreement,  the parties hereto are executing and delivering Irrevocable Transfer
Agent  Instructions  substantially in the form attached hereto as Exhibit C (the
"Irrevocable Transfer Agent Instructions").

         NOW,  THEREFORE,  in  consideration  of the mutual  covenants and other
agreements  contained in this Agreement the Company and the Buyer(s)hereby agree
as follows:

         1. PURCHASE AND SALE OF CONVERTIBLE DEBENTURES.

                  (a)  Purchase  of  Convertible  Debentures.   Subject  to  the
satisfaction  (or waiver) of the terms and  conditions of this  Agreement,  each
Buyer  agrees,  severally  and not  jointly,  to purchase at Closing (as defined

<PAGE>

herein below) and the Company agrees to sell and issue to each Buyer,  severally
and not jointly,  at Closing,  Convertible  Debentures in amounts  corresponding
with the Subscription  Amount set forth opposite each Buyer's name on Schedule I
hereto.  Upon  execution  hereof by a Buyer,  the Buyer shall wire  transfer the
Subscription  Amount set forth opposite his name on Schedule I in same-day funds
or a check  payable  to "David  Gonzalez,  Esq.,  as Escrow  Agent for  SmarTire
Systems,  Inc./Cornell Capital Partners, LP", which Subscription Amount shall be
held in escrow  pursuant to the terms of the Escrow  Agreement  (as  hereinafter
defined) and disbursed in accordance therewith. Notwithstanding the foregoing, a
Buyer may withdraw his  Subscription  Amount and terminate  this Agreement as to
such Buyer at any time  after the  execution  hereof  and prior to  Closing  (as
hereinafter defined).

                  (b) Closing Date.  The Closing of the purchase and sale of the
Convertible  Debentures  shall take place at 10:00 a.m.  Eastern  Standard  Time
within  the  third3rdbusiness   day  following  the  date  hereof,   subject  to
notification  of  satisfaction of the conditions to the Closing set forth herein
and in  Sections 6 and 7 below (or such later date as is  mutually  agreed to by
the Company and the Buyer(s)) (the "Closing  Date").  The Closing shall occur on
the Closing Date at the offices of Yorkville  Advisors,  LLC, 101 Hudson Street,
Suite 3700,  Jersey  City,  New Jersey 07302 (or such other place as is mutually
agreed to by the Company and the Buyer(s)).

                  (c)  Escrow  Arrangements;  Form of  Payment.  Upon  execution
hereof by Buyer(s) and pending the Closing,  the aggregate  proceeds of the sale
of the Convertible  Debentures to Buyer(s) pursuant hereto shall be deposited in
a non-interest bearing escrow account with David Gonzalez, Esq., as escrow agent
(the "Escrow Agent"),  pursuant to the terms of an escrow agreement  between the
Company,  the  Buyer(s)  and the  Escrow  Agent in the form  attached  hereto as
Exhibit B (the "Escrow Agreement"). Subject to the satisfaction of the terms and
conditions of this  Agreement,  on the Closing Date,  (i) the Escrow Agent shall
deliver to the Company in accordance with the terms of the Escrow Agreement such
aggregate proceeds for the Convertible  Debentures to be issued and sold to such
Buyer(s),  minus the fees and expenses of Yorkville Advisors Management,  LLC of
Ten Thousand Dollars  ($10,000)  referenced in Section 4 herein,  which shall be
paid  directly  from the gross  proceeds  held in escrow of the  Closing by wire
transfer of immediately available funds in accordance with the Company's written
wire instructions, and (ii) the Company shall deliver to each Buyer, Convertible
Debentures which such Buyer(s) is purchasing in amounts indicated  opposite such
Buyer's name on Schedule I, duly executed on behalf of the Company.

         2. BUYER'S REPRESENTATIONS AND WARRANTIES.

         Each Buyer represents and warrants, severally and not jointly, that:

                  (a)   Investment   Purpose.   Each  Buyer  is  acquiring   the
Convertible Debentures and, upon conversion of Convertible Debentures, the Buyer
will  acquire  the  Conversion  Shares  then  issuable,  for its own account for
investment only and not with a view towards,  or for resale in connection  with,
the public sale or distribution thereof,  except pursuant to sales registered or
exempted   under  the  1933  Act;   provided,   however,   that  by  making  the
representations  herein,  such  Buyer  reserves  the  right  to  dispose  of the
Conversion  Shares at any time in  accordance  with or pursuant to an  effective
registration  statement,  filed  with the SEC in  accordance  with the  Investor

                                       2
<PAGE>

Registration   Rights  Agreement  of  even  date  herewith  (the   "Registration
Statement")  covering such Conversion Shares or an available exemption under the
1933 Act.

                  (b) Accredited  Investor Status.  Each Buyer is an "Accredited
Investor" as that term is defined in Rule 501(a)(3) of Regulation D.

                  (c) Reliance on Exemptions.  Each Buyer  understands  that the
Convertible  Debentures are being offered and sold to it in reliance on specific
exemptions from the registration requirements of United States federal and state
securities  laws and that the  Company  is  relying  in part  upon the truth and
accuracy of, and such Buyer's compliance with, the representations,  warranties,
agreements, acknowledgments and understandings of such Buyer set forth herein in
order to determine the  availability  of such  exemptions and the eligibility of
such Buyer to acquire such securities.

                  (d) Information.  Each Buyer and its advisors (and his or, its
counsel),  if any,  have  been  furnished  with all  materials  relating  to the
business,  finances  and  operations  of the Company and  information  he deemed
material to making an informed investment decision regarding his purchase of the
Convertible  Debentures and the Conversion Shares,  which have been requested by
such  Buyer.  Each  Buyer  and its  advisors,  if any,  have been  afforded  the
opportunity  to ask  questions of the Company and its  management.  Neither such
inquiries nor any other due diligence  investigations conducted by such Buyer or
its advisors,  if any, or its representatives shall modify, amend or affect such
Buyer's right to rely on the Company's  representations and warranties contained
in  Section  3  below.  Each  Buyer  understands  that  its  investment  in  the
Convertible Debentures and the Conversion Shares involves a high degree of risk.
Each Buyer is in a position regarding the Company, which, based upon employment,
family relationship or economic bargaining power, enabled and enables such Buyer
to obtain information from the Company in order to evaluate the merits and risks
of this investment. Each Buyer has sought such accounting, legal and tax advice,
as it has  considered  necessary to make an informed  investment  decision  with
respect to its  acquisition  of the  Convertible  Debentures  and the Conversion
Shares.

                  (e) No Governmental  Review.  Each Buyer  understands  that no
United States  federal or state agency or any other  government or  governmental
agency  has  passed  on  or  made  any  recommendation  or  endorsement  of  the
Convertible  Debentures or the Conversion Shares, or the fairness or suitability
of the investment in the Convertible  Debentures or the Conversion  Shares,  nor
have such authorities  passed upon or endorsed the merits of the offering of the
Convertible Debentures or the Conversion Shares.

                  (f) Transfer or Resale.  Each Buyer understands that except as
provided in the Investor  Registration  Rights  Agreement:  (i) the  Convertible
Debentures have not been and are not being  registered under the 1933 Act or any
state  securities  laws,  and may not be offered  for sale,  sold,  assigned  or
transferred  unless (A) subsequently  registered  thereunder,  or (B) such Buyer
shall have  delivered  to the  Company an opinion  of  counsel,  in a  generally
acceptable  form,  to the effect that such  securities  to be sold,  assigned or
transferred may be sold,  assigned or transferred  pursuant to an exemption from
such  registration  requirements;  (ii)  any  sale  of such  securities  made in
reliance on Rule 144 under the 1933 Act (or a  successor  rule  thereto)  ("Rule
144") may be made only in accordance with the terms of Rule 144 and further,  if

                                       3
<PAGE>

Rule 144 is not applicable, any resale of such securities under circumstances in
which the seller (or the person  through whom the sale is made) may be deemed to
be an  underwriter  (as  that  term is  defined  in the 1933  Act)  may  require
compliance  with  some  other  exemption  under  the 1933 Act or the  rules  and
regulations of the SEC  thereunder;  and (iii) neither the Company nor any other
person is under any obligation to register such securities under the 1933 Act or
any state  securities  laws or to comply  with the terms and  conditions  of any
exemption  thereunder.  The Company  reserves  the right to place stop  transfer
instructions against the shares and certificates for the Conversion Shares.

                  (g) Legends.  Each Buyer  understands that the certificates or
other instruments  representing the Convertible Debentures and or the Conversion
Shares shall bear a restrictive  legend in substantially the following form (and
a  stop  transfer   order  may  be  placed   against   transfer  of  such  stock
certificates):

                  THE SECURITIES  REPRESENTED BY THIS  CERTIFICATE HAVE NOT BEEN
                  REGISTERED  UNDER THE SECURITIES  ACT OF 1933, AS AMENDED,  OR
                  APPLICABLE  STATE  SECURITIES  LAWS. THE SECURITIES  HAVE BEEN
                  ACQUIRED  SOLELY FOR  INVESTMENT  PURPOSES AND NOT WITH A VIEW
                  TOWARD  RESALE  AND  MAY  NOT  BE  OFFERED  FOR  SALE,   SOLD,
                  TRANSFERRED  OR  ASSIGNED  IN  THE  ABSENCE  OF  AN  EFFECTIVE
                  REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
                  ACT OF 1933, AS AMENDED,  OR APPLICABLE STATE SECURITIES LAWS,
                  OR AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT
                  REGISTRATION  IS NOT  REQUIRED  UNDER  SAID ACT OR  APPLICABLE
                  STATE SECURITIES LAWS.

The  legend set forth  above  shall be removed  and the  Company  within two (2)
business days shall issue a certificate without such legend to the holder of the
Conversion  Shares upon which it is stamped,  if, unless  otherwise  required by
state securities laws, (i) in connection with a sale  transaction,  provided the
Conversion Shares are registered under the 1933 Act or (ii) in connection with a
sale  transaction,  after such holder  provides  the Company  with an opinion of
counsel,  which  opinion  shall be in form,  substance  and scope  customary for
opinions  of counsel in  comparable  transactions,  to the effect  that a public
sale,  assignment  or  transfer  of the  Conversion  Shares may be made  without
registration under the 1933 Act.

                  (h) Authorization,  Enforcement.  This Agreement has been duly
and validly authorized,  executed and delivered on behalf of such Buyer and is a
valid and binding  agreement of such Buyer  enforceable  in accordance  with its
terms,  except as such  enforceability  may be limited by general  principles of
equity  or  applicable  bankruptcy,  insolvency,   reorganization,   moratorium,
liquidation  and other  similar laws  relating to, or affecting  generally,  the
enforcement of applicable creditors' rights and remedies.

                                       4
<PAGE>

                  (i)  Receipt of  Documents.  Each Buyer and his or its counsel
has  received  and  read  in  their  entirety:   (i)  this  Agreement  and  each
representation,   warranty  and  covenant   set  forth   herein,   the  Investor
Registration  Rights  Agreement,  the  Escrow  Agreement,  and  the  Irrevocable
Transfer  Agent  Instructions;  (ii) all due  diligence  and  other  information
necessary  to verify the  accuracy  and  completeness  of such  representations,
warranties  and  covenants;  (iii) the Company's Form 10-KSB for the fiscal year
ended July 31, 2004; (iv) the Company's Form 10-QSB for the fiscal quarter ended
April 30,  2004 and (v) answers to all  questions  each Buyer  submitted  to the
Company regarding an investment in the Company; and each Buyer has relied on the
information  contained  therein and has not been furnished any other  documents,
literature, memorandum or prospectus.

                  (j) Due  Formation  of  Corporate  and  Other  Buyers.  If the
Buyer(s) is a  corporation,  trust,  partnership  or other entity that is not an
individual  person,  it has been  formed  and  validly  exists  and has not been
organized for the specific purpose of purchasing the Convertible  Debentures and
is not prohibited from doing so.

                  (k) No Legal Advice From the Company. Each Buyer acknowledges,
that it had the  opportunity  to  review  this  Agreement  and the  transactions
contemplated  by this Agreement with his or its own legal counsel and investment
and tax advisors.  Each Buyer is relying solely on such counsel and advisors and
not  on  any  statements  or  representations  of  the  Company  or  any  of its
representatives  or agents for legal,  tax or investment  advice with respect to
this  investment,  the  transactions  contemplated  by  this  Agreement  or  the
securities laws of any jurisdiction.

         3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

         The Company  represents and warrants to each of the Buyers that, except
as set forth in the SEC Documents (as defined herein):

                  (a)  Organization  and  Qualification.  The  Company  and  its
subsidiaries  are  corporations  duly  organized  and  validly  existing in good
standing under the laws of the jurisdiction in which they are incorporated,  and
have the requisite corporate power to own their properties and to carry on their
business as now being  conducted.  Each of the Company and its  subsidiaries  is
duly  qualified as a foreign  corporation to do business and is in good standing
in every  jurisdiction in which the nature of the business conducted by it makes
such  qualification  necessary,  except to the extent  that the failure to be so
qualified or be in good standing would not have a material adverse effect on the
Company and its subsidiaries taken as a whole.

                  (b)   Authorization,   Enforcement,   Compliance   with  Other
Instruments.  (i) The Company has the requisite corporate power and authority to
enter  into  and  perform  this  Agreement,  the  Investor  Registration  Rights
Agreement,  the Escrow Agreement,  the Irrevocable  Transfer Agent Instructions,
and any related  agreements,  and to issue the  Convertible  Debentures  and the
Conversion  Shares in  accordance  with the terms hereof and  thereof,  (ii) the
execution  and  delivery of this  Agreement,  the Investor  Registration  Rights
Agreement, the Escrow Agreement, the Irrevocable Transfer Agent Instructions (as
defined herein) and any related  agreements by the Company and the  consummation
by it of the transactions  contemplated hereby and thereby,  including,  without
limitation, the issuance of the Convertible Debentures the Conversion Shares and

                                       5
<PAGE>

the reservation for issuance and the issuance of the Conversion  Shares issuable
upon conversion or exercise thereof,  have been duly authorized by the Company's
Board of Directors and no further  consent or  authorization  is required by the
Company, its Board of Directors or its stockholders,  (iii) this Agreement,  the
Investor  Registration Rights Agreement,  the Escrow Agreement,  the Irrevocable
Transfer Agent  Instructions and any related  agreements have been duly executed
and delivered by the Company,  (iv) this  Agreement,  the Investor  Registration
Rights  Agreement,   the  Escrow  Agreement,   the  Irrevocable  Transfer  Agent
Instructions  and any  related  agreements  constitute  the  valid  and  binding
obligations of the Company  enforceable  against the Company in accordance  with
their terms,  except as such enforceability may be limited by general principles
of equity or  applicable  bankruptcy,  insolvency,  reorganization,  moratorium,
liquidation or similar laws relating to, or affecting generally, the enforcement
of  creditors'  rights and  remedies.  The  authorized  officer  of the  Company
executing this Agreement, the Investor Registration Rights Agreement, the Escrow
Agreement,   the  Irrevocable   Transfer  Agent  Instructions  and  any  related
agreements  knows of no reason  why the  Company  cannot  file the  registration
statement  as required  under the  Investor  Registration  Rights  Agreement  or
perform any of the Company's other obligations under such documents.

                  (c)  Capitalization.  The  authorized  capital  stock  of  the
Company consists of an unlimited number of shares of Common Stock, no par value,
and 100,000 shares of Preferred  Stock.  As of the date hereof,  the Company has
225,912,470 shares of Common Stock and nil_ shares of Preferred Stock issued and
outstanding.  All of such  outstanding  shares have been validly  issued and are
fully paid and  nonassessable.  Except as  disclosed  in the SEC  Documents  (as
defined in Section  3(f)),  no shares of Common Stock are subject to  preemptive
rights or any other  similar  rights or any liens or  encumbrances  suffered  or
permitted by the Company.  Except as disclosed in the SEC  Documents,  as of the
date of this Agreement, (i) there are no outstanding options,  warrants,  scrip,
rights  to  subscribe  to,  calls or  commitments  of any  character  whatsoever
relating to, or securities  or rights  convertible  into,  any shares of capital
stock of the  Company or any of its  subsidiaries,  or  contracts,  commitments,
understandings  or arrangements by which the Company or any of its  subsidiaries
is or may  become  bound to issue  additional  shares  of  capital  stock of the
Company  or any of its  subsidiaries  or  options,  warrants,  scrip,  rights to
subscribe to, calls or commitments of any character  whatsoever  relating to, or
securities  or rights  convertible  into,  any  shares of  capital  stock of the
Company  or  any  of its  subsidiaries,  (ii)  there  are  no  outstanding  debt
securities  and (iii) there are no  agreements or  arrangements  under which the
Company or any of its  subsidiaries  is obligated to register the sale of any of
their   securities   under  the  1933  Act  (except  pursuant  to  the  Investor
Registration  Rights  Agreement) and (iv) there are no outstanding  registration
statements  and there are no  outstanding  comment  letters  from the SEC or any
other  regulatory  agency.  There are no  securities or  instruments  containing
anti-dilution  or similar  provisions  that will be triggered by the issuance of
the  Convertible  Debentures  as  described in this  Agreement.  The Company has
furnished  to the Buyer true and  correct  copies of the  Company's  Articles of
Incorporation,  as amended and as in effect on the date hereof (the "Articles of
Incorporation"), and the Company's By-laws, as in effect on the date hereof (the
"By-laws"),  and the terms of all securities convertible into or exercisable for
Common Stock and the material  rights of the holders  thereof in respect thereto
other than stock options issued to employees and consultants.

                                       6
<PAGE>

                  (d) Issuance of  Securities.  The  Convertible  Debentures are
duly authorized and, upon issuance in accordance with the terms hereof, shall be
duly issued,  fully paid and  nonassessable,  are free from all taxes, liens and
charges with respect to the issue thereof.  The Conversion  Shares issuable upon
conversion of the Convertible  Debentures have been duly authorized and reserved
for issuance.  Upon  conversion or exercise in accordance  with the  Convertible
Debentures  the  Conversion   Shares  will  be  duly  issued,   fully  paid  and
nonassessable.

                  (e) No  Conflicts.  Except as disclosed in the SEC  Documents,
the  execution,  delivery  and  performance  of  this  Agreement,  the  Investor
Registration Rights Agreement, the Escrow Agreement and the Irrevocable Transfer
Agent  Instructions  by the Company and the  consummation  by the Company of the
transactions  contemplated  hereby  will not (i)  result in a  violation  of the
Certificate of Incorporation, any certificate of designations of any outstanding
series of preferred stock of the Company or the By-laws or (ii) conflict with or
constitute  a default  (or an event  which with  notice or lapse of time or both
would  become a default)  under,  or give to others  any rights of  termination,
amendment,   acceleration  or  cancellation  of,  any  agreement,  indenture  or
instrument to which the Company or any of its subsidiaries is a party, or result
in a  violation  of  any  law,  rule,  regulation,  order,  judgment  or  decree
(including  federal and state  securities laws and regulations and the rules and
regulations  of The  National  Association  of  Securities  Dealers  Inc.'s  OTC
Bulletin Board on which the Common Stock is quoted) applicable to the Company or
any of its  subsidiaries or by which any property or asset of the Company or any
of its  subsidiaries  is bound  or  affected.  Except  as  disclosed  in the SEC
Documents,  neither the Company nor its subsidiaries is in violation of any term
of or in  default  under its  Articles  of  Incorporation  or  By-laws  or their
organizational  charter or  by-laws,  respectively,  or any  material  contract,
agreement, mortgage,  indebtedness,  indenture,  instrument, judgment, decree or
order or any  statute,  rule or  regulation  applicable  to the  Company  or its
subsidiaries.  The  business of the Company  and its  subsidiaries  is not being
conducted,  and  shall  not be  conducted  in  violation  of any  material  law,
ordinance,  or regulation of any  governmental  entity.  Except as  specifically
contemplated  by this  Agreement  and as  required  under  the  1933 Act and any
applicable  state  securities  laws,  the Company is not  required to obtain any
consent, authorization or order of, or make any filing or registration with, any
court or governmental agency in order for it to execute,  deliver or perform any
of its obligations  under or contemplated by this Agreement or the  Registration
Rights  Agreement  in  accordance  with the terms  hereof or thereof.  Except as
disclosed in the SEC Documents,  all consents,  authorizations,  orders, filings
and  registrations  which the  Company is  required  to obtain  pursuant  to the
preceding  sentence  have  been  obtained  or  effected  on or prior to the date
hereof.   The  Company  and  its  subsidiaries  are  unaware  of  any  facts  or
circumstance, which might give rise to any of the foregoing.

                  (f) SEC  Documents:  Financial  Statements.  Since  January 1,
2002, the Company has filed all reports,  schedules, forms, statements and other
documents  required  to be  filed by it with  the SEC  under  of the  Securities
Exchange Act of 1934,  as amended (the "1934 Act") (all of the  foregoing  filed
prior to the date  hereof or  amended  after the date  hereof  and all  exhibits
included  therein and financial  statements and schedules  thereto and documents
incorporated by reference  therein,  being  hereinafter  referred to as the "SEC
Documents").  The Company has delivered to the Buyers or their  representatives,
or made  available  through the SEC's  website at  http://www.sec.gov,  true and
complete  copies  of the  SEC  Documents.  As of  their  respective  dates,  the
financial  statements  of the  Company  disclosed  in  the  SEC  Documents  (the
"Financial  Statements")  complied  as to form  in all  material  respects  with

                                       7
<PAGE>

applicable  accounting  requirements  and the published rules and regulations of
the SEC with respect  thereto.  Such financial  statements have been prepared in
accordance with generally accepted accounting principles,  consistently applied,
during the periods  involved  (except (i) as may be otherwise  indicated in such
Financial  Statements  or the notes  thereto,  or (ii) in the case of  unaudited
interim statements, to the extent they may exclude footnotes or may be condensed
or  summary  statements)  and,  fairly  present  in all  material  respects  the
financial position of the Company as of the dates thereof and the results of its
operations  and cash flows for the periods then ended  (subject,  in the case of
unaudited   statements,   to  normal  year-end  audit  adjustments).   No  other
information  provided  by or on behalf of the  Company to the Buyer which is not
included  in the  SEC  Documents,  including,  without  limitation,  information
referred to in this Agreement,  contains any untrue statement of a material fact
or omits to state any material  fact  necessary in order to make the  statements
therein,  in the light of the  circumstances  under  which they were  made,  not
misleading.

                  (g)  10(b)-5.  The SEC  Documents  do not  include  any untrue
statements  of  material  fact,  nor do they  omit to state  any  material  fact
required to be stated therein necessary to make the statements made, in light of
the circumstances under which they were made, not misleading.

                  (h)  Absence of  Litigation.  Except as  disclosed  in the SEC
Documents, there is no action, suit, proceeding, inquiry or investigation before
or by any court, public board, government agency,  self-regulatory  organization
or body pending against or affecting the Company, the Common Stock or any of the
Company's subsidiaries, wherein an unfavorable decision, ruling or finding would
(i) have a material adverse effect on the transactions  contemplated hereby (ii)
adversely affect the validity or enforceability  of, or the authority or ability
of the Company to perform its  obligations  under,  this Agreement or any of the
documents contemplated herein, or (iii) except as expressly disclosed in the SEC
Documents,  have  a  material  adverse  effect  on  the  business,   operations,
properties,  financial condition or results of operations of the Company and its
subsidiaries taken as a whole.

                  (i)   Acknowledgment   Regarding   Buyer's   Purchase  of  the
Convertible Debentures. The Company acknowledges and agrees that the Buyer(s) is
acting solely in the capacity of an arm's length  purchaser with respect to this
Agreement  and  the  transactions   contemplated  hereby.  The  Company  further
acknowledges that the Buyer(s) is not acting as a financial advisor or fiduciary
of the Company (or in any similar  capacity)  with respect to this Agreement and
the transactions contemplated hereby and any advice given by the Buyer(s) or any
of their respective  representatives or agents in connection with this Agreement
and the transactions  contemplated  hereby is merely  incidental to such Buyer's
purchase of the  Convertible  Debentures or the Conversion  Shares.  The Company
further  represents to the Buyer that the Company's  decision to enter into this
Agreement has been based solely on the independent evaluation by the Company and
its representatives.

                  (j) No General  Solicitation.  Neither the Company, nor any of
its affiliates, nor any person acting on its or their behalf, has engaged in any
form of general  solicitation  or general  advertising  (within  the  meaning of
Regulation  D under  the 1933 Act) in  connection  with the offer or sale of the
Convertible Debentures or the Conversion Shares.

                                       8
<PAGE>

                  (k) No Integrated  Offering.  Neither the Company,  nor any of
its  affiliates,  nor any person acting on its or their behalf has,  directly or
indirectly,  made any offers or sales of any security or solicited any offers to
buy any security,  under  circumstances  that would require  registration of the
Convertible Debentures or the Conversion Shares under the 1933 Act or cause this
offering of the Convertible Debentures or the Conversion Shares to be integrated
with prior offerings by the Company for purposes of the 1933 Act.

                  (l)  Employee  Relations.  Neither  the Company nor any of its
subsidiaries  is involved in any labor  dispute  nor,  to the  knowledge  of the
Company or any of its subsidiaries,  is any such dispute threatened. None of the
Company's or its subsidiaries'  employees is a member of a union and the Company
and its subsidiaries believe that their relations with their employees are good.

                  (m)  Intellectual   Property  Rights.   The  Company  and  its
subsidiaries  own or possess  adequate rights or licenses to use all trademarks,
trade names, service marks, service mark registrations,  service names, patents,
patent  rights,  copyrights,   inventions,  licenses,  approvals,   governmental
authorizations,  trade secrets and rights  necessary to conduct their respective
businesses as now conducted.  The Company and its  subsidiaries  do not have any
knowledge of any  infringement by the Company or its  subsidiaries of trademark,
trade name rights, patents,  patent rights,  copyrights,  inventions,  licenses,
service names, service marks, service mark registrations,  trade secret or other
similar  rights of others,  and, to the  knowledge  of the  Company  there is no
claim,  action or proceeding being made or brought against,  or to the Company's
knowledge,  being threatened against, the Company or its subsidiaries  regarding
trademark,  trade name, patents, patent rights, invention,  copyright,  license,
service names, service marks, service mark registrations,  trade secret or other
infringement;  and the Company and its  subsidiaries are unaware of any facts or
circumstances which might give rise to any of the foregoing.

                  (n)  Environmental  Laws. The Company and its subsidiaries are
(i) in compliance with any and all applicable foreign,  federal, state and local
laws and regulations  relating to the protection of human health and safety, the
environment  or  hazardous  or  toxic   substances  or  wastes,   pollutants  or
contaminants ("Environmental Laws"), (ii) have received all permits, licenses or
other approvals required of them under applicable  Environmental Laws to conduct
their  respective  businesses  and  (iii) are in  compliance  with all terms and
conditions of any such permit, license or approval.

                  (o) Title.  Any real property and facilities  held under lease
by the Company and its subsidiaries are held by them under valid, subsisting and
enforceable leases with such exceptions as are not material and do not interfere
with the use made and proposed to be made of such  property and buildings by the
Company and its subsidiaries.

                  (p) Insurance.  The Company and each of its  subsidiaries  are
insured by insurers of recognized financial  responsibility  against such losses
and risks and in such  amounts  as  management  of the  Company  believes  to be
prudent  and  customary  in  the   businesses  in  which  the  Company  and  its
subsidiaries  are engaged.  Neither the Company nor any such subsidiary has been
refused any insurance coverage sought or applied for and neither the Company nor
any such  subsidiary has any reason to believe that it will not be able to renew
its existing  insurance  coverage as and when such coverage expires or to obtain

                                       9
<PAGE>

similar  coverage  from  similar  insurers as may be  necessary  to continue its
business at a cost that would not materially and adversely affect the condition,
financial or otherwise,  or the earnings,  business or operations of the Company
and its subsidiaries, taken as a whole.

                  (q)  Regulatory  Permits.  The  Company  and its  subsidiaries
possess all  material  certificates,  authorizations  and permits  issued by the
appropriate  federal,  state or  foreign  regulatory  authorities  necessary  to
conduct  their  respective  businesses,  and  neither  the  Company nor any such
subsidiary has received any notice of proceedings  relating to the revocation or
modification of any such certificate, authorization or permit.

                  (r) Internal Accounting Controls.  The Company and each of its
subsidiaries  maintain a system of internal  accounting  controls  sufficient to
provide  reasonable  assurance that (i)  transactions are executed in accordance
with  management's  general or specific  authorizations,  (ii)  transactions are
recorded  as  necessary  to  permit  preparation  of  financial   statements  in
conformity with generally accepted  accounting  principles and to maintain asset
accountability,  and (iii) the recorded  amounts for assets is compared with the
existing  assets at reasonable  intervals and  appropriate  action is taken with
respect to any differences.

                  (s) No Material Adverse Breaches,  etc. Except as set forth in
the SEC Documents, neither the Company nor any of its subsidiaries is subject to
any charter,  corporate or other legal  restriction,  or any  judgment,  decree,
order, rule or regulation which in the judgment of the Company's officers has or
is expected  in the future to have a material  adverse  effect on the  business,
properties,  operations, financial condition, results of operations or prospects
of the Company or its  subsidiaries.  Except as set forth in the SEC  Documents,
neither the Company nor any of its  subsidiaries is in breach of any contract or
agreement  which breach,  in the judgment of the Company's  officers,  has or is
expected  to  have  a  material  adverse  effect  on the  business,  properties,
operations,  financial  condition,  results of  operations  or  prospects of the
Company or its subsidiaries.

                  (t) Tax Status. Except as set forth in the SEC Documents,  the
Company  and each of its  subsidiaries  has made and filed all federal and state
income and all other tax  returns,  reports  and  declarations  required  by any
jurisdiction  to which it is subject and (unless and only to the extent that the
Company  and each of its  subsidiaries  has set  aside on its  books  provisions
reasonably adequate for the payment of all unpaid and unreported taxes) has paid
all taxes and other  governmental  assessments  and charges that are material in
amount, shown or determined to be due on such returns, reports and declarations,
except  those  being  contested  in good  faith  and has set  aside on its books
provision  reasonably  adequate  for  the  payment  of  all  taxes  for  periods
subsequent to the periods to which such returns,  reports or declarations apply.
There are no unpaid taxes in any material amount claimed to be due by the taxing
authority of any jurisdiction,  and the officers of the Company know of no basis
for any such claim.

                  (u)  Certain  Transactions.  Except  as set  forth  in the SEC
Documents,  and  except  for arm's  length  transactions  pursuant  to which the
Company  makes  payments in the ordinary  course of business  upon terms no less
favorable  than the Company  could obtain from third  parties and other than the
grant of stock  options  disclosed in the SEC  Documents,  none of the officers,
directors,  or employees of the Company is presently a party to any  transaction

                                       10
<PAGE>

with the Company (other than for services as employees, officers and directors),
including  any  contract,  agreement  or  other  arrangement  providing  for the
furnishing  of  services  to or by,  providing  for  rental of real or  personal
property to or from,  or  otherwise  requiring  payments to or from any officer,
director or such employee or, to the knowledge of the Company,  any corporation,
partnership,  trust or other entity in which any officer,  director, or any such
employee  has a  substantial  interest  or is an officer,  director,  trustee or
partner.

                  (v) Fees and  Rights  of First  Refusal.  The  Company  is not
obligated to offer the securities  offered hereunder on a right of first refusal
basis or otherwise to any third parties  including,  but not limited to, current
or former shareholders of the Company,  underwriters,  brokers,  agents or other
third parties.

         4. COVENANTS.

                  (a) Best Efforts. Each party shall use its best efforts timely
to satisfy each of the  conditions to be satisfied by it as provided in Sections
6 and 7 of this Agreement.

                  (b) Form D. The Company  agrees to file a Form D with  respect
to the Conversion  Shares as required  under  Regulation D and to provide a copy
thereof to each Buyer  promptly  after such  filing.  The Company  shall,  on or
before the  Closing  Date,  take such  action as the  Company  shall  reasonably
determine is necessary to qualify the Conversion  Shares, or obtain an exemption
for the Conversion Shares for sale to the Buyers at the Closing pursuant to this
Agreement  under  applicable  securities or "Blue Sky" laws of the states of the
United  States,  and shall  provide  evidence of any such action so taken to the
Buyers on or prior to the Closing Date.

                  (c) Reporting Status.  Until the earlier of (i) the date as of
which the Buyer(s) may sell all of the  Conversion  Shares  without  restriction
pursuant to Rule 144(k)  promulgated under the 1933 Act (or successor  thereto),
or (ii) the date on which (A) the  Buyer(s)  shall have sold all the  Conversion
Shares  and  (B)  none  of  the  Convertible  Debentures  are  outstanding  (the
"Registration  Period"),  the Company  shall file in a timely manner all reports
required to be filed with the SEC  pursuant to the 1934 Act and the  regulations
of the SEC  thereunder,  and the Company  shall not  terminate  its status as an
issuer  required to file reports  under the 1934 Act even if the 1934 Act or the
rules and regulations thereunder would otherwise permit such termination.

                  (d) Use of Proceeds.  The Company  will use the proceeds  from
the sale of the Convertible Debentures for general corporate,  repayment of debt
and working capital purposes.

                  (e)  Reservation of Shares.  The Company shall take all action
reasonably  necessary  to at all times have  authorized,  and  reserved  for the
purpose of issuance, such number of shares of Common Stock as shall be necessary
to effect the issuance of the Conversion Shares. If at any time the Company does
not have  available  such  shares of Common  Stock as shall from time to time be
sufficient  to effect  the  conversion  of all of the  Conversion  Shares of the
Company shall call and hold a special meeting of the shareholders  within thirty
(30) days of such  occurrence,  for the sole purpose of increasing the number of
shares authorized.  The Company's management shall recommend to the shareholders
to vote in favor of increasing the number of shares of Common Stock  authorized.

                                       11
<PAGE>

Management  shall also vote all of its shares in favor of increasing  the number
of authorized shares of Common Stock.

                  (f) Listings or Quotation.  The Company shall promptly  secure
the listing or quotation of the Conversion Shares upon each national  securities
exchange,  automated quotation system or The National  Association of Securities
Dealers Inc.'s  Over-The-Counter  Bulletin Board  ("OTCBB") or other market,  if
any,  upon which  shares of Common  Stock are then listed or quoted  (subject to
official notice of issuance) and shall use its best efforts to maintain, so long
as any other  shares of Common  Stock  shall be so listed,  such  listing of all
Conversion  Shares from time to time issuable under the terms of this Agreement.
The Company shall maintain the Common Stock's authorization for quotation on the
OTCBB.

                  (g) Fees and  Expenses.  Each of the Company and the  Buyer(s)
shall pay all costs and expenses  incurred by such party in connection  with the
negotiation,   investigation,   preparation,  execution  and  delivery  of  this
Agreement,  the Escrow Agreement, the Investor Registration Rights Agreement and
the Irrevocable Transfer Agent Instructions. The Buyer(s) shall be entitled to a
ten percent (10%) discount on the Purchase Price.

                  (h) The costs and expenses of the Buyer(s) and the structuring
fee of Yorkville  Advisors  Management,  LLC of Ten Thousand  Dollars  ($10,000)
shall be paid directly from the proceeds of the Closing.

                  (i)  Corporate  Existence.  So long as any of the  Convertible
Debentures  remain  outstanding,  the Company  shall not directly or  indirectly
consummate  any  merger,  reorganization,  restructuring,  reverse  stock  split
consolidation,  sale of all or substantially  all of the Company's assets or any
similar  transaction  or  related   transactions  (each  such  transaction,   an
"Organizational  Change") unless,  prior to the  consummation an  Organizational
Change, the Company obtains the written consent of each Buyer. In any such case,
the Company will make appropriate provision with respect to such holders' rights
and interests to insure that the provisions of this Section 4(h) will thereafter
be applicable to the Convertible Debentures.

                  (j) Transactions  With Affiliates.  So long as any Convertible
Debentures are  outstanding,  the Company shall not, and shall cause each of its
subsidiaries  not to, enter into,  amend,  modify or  supplement,  or permit any
subsidiary  to  enter  into,   amend,   modify  or  supplement   any  agreement,
transaction,  commitment,  or  arrangement  with any of its or any  subsidiary's
officers,  directors,  person who were  officers or directors at any time during
the previous two (2) years,  stockholders who beneficially own five percent (5%)
or more of the  Common  Stock,  or  Affiliates  (as  defined  below) or with any
individual  related by blood,  marriage,  or adoption to any such  individual or
with any entity in which any such entity or individual  owns a five percent (5%)
or more beneficial  interest (each a "Related Party"),  except for (a) customary
employment  arrangements  and benefit  programs  on  reasonable  terms,  (b) any
investment  in an  Affiliate  of the Company,  (c) any  agreement,  transaction,
commitment,  or arrangement  on an arms-length  basis on terms no less favorable
than  terms  which  would  have been  obtainable  from a person  other than such
Related Party, (d) any agreement transaction,  commitment,  or arrangement which
is approved by a majority of the  disinterested  directors of the  Company,  for
purposes  hereof,  any  director  who is also an officer  of the  Company or any
subsidiary of the Company shall not be a disinterested  director with respect to

                                       12
<PAGE>

any such agreement,  transaction,  commitment,  or arrangement.  "Affiliate" for
purposes hereof means,  with respect to any person or entity,  another person or
entity that, directly or indirectly,  (i) has a ten percent (10%) or more equity
interest  in that person or entity,  (ii) has ten  percent  (10%) or more common
ownership with that person or entity,  (iii) controls that person or entity,  or
(iv) shares common  control with that person or entity.  "Control" or "controls"
for  purposes  hereof  means that a person or entity  has the  power,  direct or
indirect, to conduct or govern the policies of another person or entity.

                  (k) Transfer Agent. The Company  covenants and agrees that, in
the event that the Company's agency  relationship with the transfer agent should
be  terminated  for any reason  prior to a date which is two (2) years after the
Closing Date,  the Company shall  immediately  appoint a new transfer  agent and
shall  require that the new transfer  agent execute and agree to be bound by the
terms of the Irrevocable Transfer Agent Instructions (as defined herein).

                  (l)  Restriction on Issuance of the Capital Stock.  So long as
any Convertible  Debentures are outstanding,  the Company shall not, without the
prior written  consent of the Buyer(s),  issue or sell shares of Common Stock or
Preferred Stock (i) without  consideration or for a consideration per share less
than the Bid  Price of the  Common  Stock  determined  immediately  prior to its
issuance,  (ii) issue any  warrant,  option,  right,  contract,  call,  or other
security  instrument  granting the holder  thereof,  the right to acquire Common
Stock without consideration or for a consideration less than such Common Stock's
Bid Price value determined immediately prior to it's issuance,  (iii) enter into
any security  instrument  granting the holder a security interest in any and all
assets of the Company, or (iv) file any registration statement on Form S-8.

                  (m)  Registration  Statement.   The  Company  shall  file  the
Registration  Statement  with the SEC in accordance  with the terms set forth in
the Investor Registration Rights Agreement of even date herewith.

         5. TRANSFER AGENT INSTRUCTIONS.

         The Company shall issue the Irrevocable  Transfer Agent Instructions to
its transfer agent irrevocably appointing David Gonzalez,  Esq. as its agent for
purpose of having certificates issued, registered in the name of the Buyer(s) or
its respective  nominee(s),  for the Conversion Shares representing such amounts
of Convertible  Debentures as specified from time to time by the Buyer(s) to the
Company  upon  conversion  of the  Convertible  Debentures,  for  interest  owed
pursuant to the Convertible  Debenture,  and for any and all Liquidated  Damages
(as  this  term is  defined  in the  Investor  Registration  Rights  Agreement).
Yorkville  Advisors  Management,  LLC shall be paid a cash fee of Fifty  Dollars
($50) for every  occasion they act pursuant to the  Irrevocable  Transfer  Agent
Instructions.  The  Company  shall not change its  transfer  agent  without  the
express written  consent of the Buyer(s),  which may be withheld by the Buyer(s)
in its sole discretion. Prior to registration of the Conversion Shares under the
1933 Act, all such certificates  shall bear the restrictive  legend specified in
Section 2(g) of this Agreement.  The Company warrants that no instruction  other
than the Irrevocable Transfer Agent Instructions  referred to in this Section 5,
and stop  transfer  instructions  to give effect to Section  2(g) hereof (in the
case of the  Conversion  Shares prior to  registration  of such shares under the
1933  Act)  will be given by the  Company  to its  transfer  agent  and that the
Conversion  Shares  shall  otherwise  be  freely  transferable  on the books and
records of the Company as and to the extent  provided in this  Agreement and the
Investor  Registration Rights Agreement.  Nothing in this Section 5 shall affect

                                       13
<PAGE>

in any way the Buyer's  obligations  and agreement to comply with all applicable
securities laws upon resale of Conversion  Shares.  If the Buyer(s) provides the
Company with an opinion of counsel,  in form, scope and substance  customary for
opinions of counsel in comparable  transactions to the effect that  registration
of a resale by the  Buyer(s)  of any of the  Conversion  Shares is not  required
under the 1933 Act, the Company  shall within two (2) business days instruct its
transfer  agent  to  issue  one or more  certificates  in such  name and in such
denominations as specified by the Buyer. The Company  acknowledges that a breach
by it of its obligations  hereunder will cause  irreparable harm to the Buyer by
vitiating  the  intent  and  purpose  of the  transaction  contemplated  hereby.
Accordingly, the Company acknowledges that the remedy at law for a breach of its
obligations  under this Section 5 will be inadequate and agrees, in the event of
a breach or threatened  breach by the Company of the  provisions of this Section
5, that the  Buyer(s)  shall be  entitled,  in addition  to all other  available
remedies,  to an  injunction  restraining  any  breach and  requiring  immediate
issuance  and  transfer,  without the  necessity  of showing  economic  loss and
without any bond or other security being required.

         6. CONDITIONS TO THE COMPANY'S OBLIGATION TO SELL.

         The  obligation  of  the  Company  hereunder  to  issue  and  sell  the
Convertible  Debentures  to  the  Buyer(s)  at the  Closing  is  subject  to the
satisfaction,  at  or  before  the  Closing  Date,  of  each  of  the  following
conditions,  provided that these  conditions  are for the Company's sole benefit
and may be waived by the Company at any time in its sole discretion:

                  (a) Each Buyer shall have executed this Agreement,  the Escrow
Agreement and the Investor  Registration  Rights  Agreement and the  Irrevocable
Transfer Agent Instructions and delivered the same to the Company.

                  (b) The Buyer(s)  shall have delivered to the Escrow Agent the
Purchase  Price for  Convertible  Debentures in respective  amounts as set forth
next to each Buyer as  outlined  on  Schedule  I attached  hereto and the Escrow
Agent shall have  delivered  the net proceeds to the Company by wire transfer of
immediately  available U.S. funds pursuant to the wire instructions  provided by
the Company.

                  (c) The  representations  and warranties of the Buyer(s) shall
be true and correct in all material  respects as of the date when made and as of
the Closing  Date as though made at that time  (except for  representations  and
warranties  that  speak as of a  specific  date),  and the  Buyer(s)  shall have
performed,  satisfied and complied in all material  respects with the covenants,
agreements and conditions required by this Agreement to be performed,  satisfied
or complied with by the Buyer(s) at or prior to the Closing Date.

         7. CONDITIONS TO THE BUYER'S OBLIGATION TO PURCHASE.

         The  obligation of the Buyer(s)  hereunder to purchase the  Convertible
Debentures  at the  Closing  is subject  to the  satisfaction,  at or before the
Closing Date, of each of the following conditions:

                                       14
<PAGE>

                  (a) The  Company  shall  have  executed  this  Agreement,  the
Convertible   Debenture,   the  Escrow  Agreement,   the  Irrevocable   Transfer
Instructions and the Investor  Registration Rights Agreement,  and delivered the
same to the Buyer(s).

                  (b) The Common Stock shall be authorized  for quotation on the
OTCBB,  trading in the Common Stock shall not have been suspended for any reason
and all of the Conversion  Shares  issuable upon  conversion of the  Convertible
Debentures shall be approved the OTCBB.

                  (c) The representations and warranties of the Company shall be
true and correct in all material respects (except to the extent that any of such
representations and warranties is already qualified as to materiality in Section
3 above, in which case, such  representations  and warranties  shall be true and
correct  without further  qualification)  as of the date when made and as of the
Closing  Date as  though  made at that  time  (except  for  representations  and
warranties  that  speak  as of a  specific  date)  and the  Company  shall  have
performed,  satisfied and complied in all material  respects with the covenants,
agreements and conditions required by this Agreement to be performed,  satisfied
or complied with by the Company at or prior to the Closing Date. If requested by
the  Buyer,  the Buyer  shall  have  received  a  certificate,  executed  by the
President of the Company,  dated as of the Closing Date, to the foregoing effect
and as to  such  other  matters  as may be  reasonably  requested  by the  Buyer
including,  without  limitation  an update as of the Closing Date  regarding the
representation contained in Section 3(c) above.

                  (d) The  Company  shall have  executed  and  delivered  to the
Buyer(s) the Convertible Debentures in the respective amounts set forth opposite
each Buyer(s) name on Schedule I attached hereto.

                  (e) The  Buyer(s)  shall have  received  an  opinion  from the
Company's counsel in a form satisfactory to the Buyer(s).

                  (f)  The  Company  shall  have  provided  to  the  Buyer(s)  a
certificate of good standing from the secretary of state from the state in which
the company is incorporated.

                  (g) As of the Closing  Date,  the Company  shall have reserved
out of its  authorized  and  unissued  Common  Stock,  solely for the purpose of
effecting the conversion of the Convertible  Debentures,  shares of Common Stock
to effect the conversion of all of the Conversion Shares then outstanding.

                  (h) The Irrevocable  Transfer Agent Instructions,  in form and
substance   satisfactory  to  the  Buyer,  shall  have  been  delivered  to  and
acknowledged in writing by the Company's transfer agent.

                  (i)  The  Company   shall  have   provided  to  the  Buyer  an
acknowledgement,  to  the  satisfaction  of  the  Buyer,  from  its  independent
certified public  accountants as to its ability to provide all consents required
in order to file a registration statement in connection with this transaction.

                                       15
<PAGE>

         8. INDEMNIFICATION.

                  (a) In consideration of the Buyer's  execution and delivery of
this  Agreement and  acquiring the  Convertible  Debentures  and the  Conversion
Shares  hereunder,  and in addition to all of the  Company's  other  obligations
under this  Agreement,  the Company  shall defend,  protect,  indemnify and hold
harmless the Buyer(s) and each other holder of the  Convertible  Debentures  and
the  Conversion  Shares,  and all of their  officers,  directors,  employees and
agents  (including,  without  limitation,  those retained in connection with the
transactions   contemplated  by  this  Agreement)   (collectively,   the  "Buyer
Indemnitees")  from and against any and all  actions,  causes of action,  suits,
claims, losses, costs, penalties, fees, liabilities and damages, and expenses in
connection  therewith  (irrespective  of whether any such Buyer  Indemnitee is a
party  to the  action  for  which  indemnification  hereunder  is  sought),  and
including  reasonable   attorneys'  fees  and  disbursements  (the  "Indemnified
Liabilities"),  incurred by the Buyer Indemnitees or any of them as a result of,
or arising  out of, or relating  to (a) any  misrepresentation  or breach of any
representation  or  warranty  made  by  the  Company  in  this  Agreement,   the
Convertible  Debentures  or the Investor  Registration  Rights  Agreement or any
other certificate,  instrument or document  contemplated hereby or thereby,  (b)
any breach of any covenant,  agreement or obligation of the Company contained in
this  Agreement,  or the  Investor  Registration  Rights  Agreement or any other
certificate,  instrument or document  contemplated hereby or thereby, or (c) any
cause of action,  suit or claim  brought or made  against  such  Indemnitee  and
arising  out of or  resulting  from  the  execution,  delivery,  performance  or
enforcement  of this  Agreement or any other  instrument,  document or agreement
executed pursuant hereto by any of the Indemnities,  any transaction financed or
to be financed in whole or in part, directly or indirectly, with the proceeds of
the issuance of the Convertible  Debentures or the status of the Buyer or holder
of the Convertible  Debentures the Conversion  Shares, as a Buyer of Convertible
Debentures in the Company.  To the extent that the foregoing  undertaking by the
Company may be unenforceable for any reason,  the Company shall make the maximum
contribution  to the  payment  and  satisfaction  of  each  of  the  Indemnified
Liabilities, which is permissible under applicable law.

                  (b) In consideration  of the Company's  execution and delivery
of this Agreement, and in addition to all of the Buyer's other obligations under
this Agreement, the Buyer shall defend, protect, indemnify and hold harmless the
Company and all of its officers,  directors,  employees  and agents  (including,
without   limitation,   those  retained  in  connection  with  the  transactions
contemplated by this Agreement)  (collectively,  the "Company Indemnitees") from
and against any and all Indemnified  Liabilities  incurred by the Indemnitees or
any of  them  as a  result  of,  or  arising  out  of,  or  relating  to (a) any
misrepresentation  or  breach  of any  representation  or  warranty  made by the
Buyer(s)  in this  Agreement,  instrument  or  document  contemplated  hereby or
thereby  executed by the Buyer,  (b) any breach of any  covenant,  agreement  or
obligation  of  the  Buyer(s)   contained  in  this   Agreement,   the  Investor
Registration  Rights Agreement or any other certificate,  instrument or document
contemplated  hereby  or  thereby  executed  by the  Buyer,  or (c) any cause of
action,  suit or claim brought or made against such Company  Indemnitee based on
material  misrepresentations  or due to a material  breach and arising out of or
resulting  from the  execution,  delivery,  performance  or  enforcement of this
Agreement,  the Investor  Registration Rights Agreement or any other instrument,
document  or  agreement   executed   pursuant  hereto  by  any  of  the  Company
Indemnities.  To the extent that the foregoing  undertaking by each Buyer may be
unenforceable for any reason, each Buyer shall make the maximum  contribution to
the payment and  satisfaction of each of the Indemnified  Liabilities,  which is
permissible under applicable law.

                                       16
<PAGE>

         9. GOVERNING LAW: MISCELLANEOUS.

                  (a)  Governing  Law. This  Agreement  shall be governed by and
interpreted  in  accordance  with the laws of the  State of New  Jersey  without
regard to the principles of conflict of laws. The parties further agree that any
action between them shall be heard in Hudson County,  New Jersey,  and expressly
consent  to the  jurisdiction  and venue of the  Superior  Court of New  Jersey,
sitting in Hudson County and the United States  District  Court for the District
of New Jersey sitting in Newark,  New Jersey for the  adjudication  of any civil
action asserted pursuant to this Paragraph.

                  (b)  Counterparts.  This  Agreement  may be executed in two or
more identical  counterparts,  all of which shall be considered one and the same
agreement and shall become effective when  counterparts have been signed by each
party and  delivered  to the other  party.  In the event any  signature  page is
delivered  by  facsimile  transmission,  the party  using such means of delivery
shall  cause  four  (4)  additional  original  executed  signature  pages  to be
physically  delivered to the other party  within five (5) days of the  execution
and delivery hereof.

                  (c)  Headings.   The  headings  of  this   Agreement  are  for
convenience   of   reference   and  shall  not  form  part  of,  or  affect  the
interpretation of, this Agreement.

                  (d) Severability.  If any provision of this Agreement shall be
invalid   or   unenforceable   in   any   jurisdiction,   such   invalidity   or
unenforceability  shall  not  affect  the  validity  or  enforceability  of  the
remainder  of  this   Agreement  in  that   jurisdiction   or  the  validity  or
enforceability of any provision of this Agreement in any other jurisdiction.

                  (e) Entire Agreement,  Amendments.  This Agreement  supersedes
all other prior oral or written  agreements  between the Buyer(s),  the Company,
their  affiliates and persons acting on their behalf with respect to the matters
discussed  herein,  and this  Agreement and the  instruments  referenced  herein
contain  the entire  understanding  of the parties  with  respect to the matters
covered  herein and therein  and,  except as  specifically  set forth  herein or
therein,  neither the Company nor any Buyer makes any representation,  warranty,
covenant or  undertaking  with  respect to such  matters.  No  provision of this
Agreement may be waived or amended other than by an instrument in writing signed
by the party to be charged with enforcement.

                  (f)  Notices.  Any  notices,   consents,   waivers,  or  other
communications  required  or  permitted  to be  given  under  the  terms of this
Agreement  must be in writing and will be deemed to have been delivered (i) upon
receipt, when delivered personally; (ii) upon confirmation of receipt, when sent
by  facsimile;  (iii)  three (3) days after being sent by U.S.  certified  mail,
return  receipt  requested,  or (iv) one (1) day after deposit with a nationally
recognized  overnight  delivery service,  in each case properly addressed to the
party to  receive  the  same.  The  addresses  and  facsimile  numbers  for such
communications shall be:

                                       17
<PAGE>

If to the Company, to:          SmarTire Systems, Inc.
                                Richmond Corporate Centre
                                Suite 150-13151 Vanier Place
                                Richmond, British Columbia
                                Canada V6V 2J1
                                Attention:  Robert V. Rudman
                                Telephone:  (604) 276-9884
                                Facsimile:  (604) 276-2353

With a copy to:                 Sichenzia Ross Friedman Ference LLP
                                1065 Avenue of the Americas
                                New York, NY 10018
                                Attention:  Darrin M. Ocasio, Esq.
                                Telephone:  (212) 981-6768
                                Facsimile:  (212) 930-9725

If to the Transfer Agent, to:

With Copy to:

         If to the Buyer(s),  to its address and facsimile number on Schedule I,
with copies to the Buyer's  counsel as set forth on Schedule I. Each party shall
provide five (5) days' prior written  notice to the other party of any change in
address or facsimile number.

                  (g)  Successors and Assigns.  This Agreement  shall be binding
upon and inure to the benefit of the parties and their respective successors and
assigns.  Neither the Company nor any Buyer shall  assign this  Agreement or any
rights or obligations  hereunder  without the prior written consent of the other
party hereto.

                  (h) No Third Party  Beneficiaries.  This Agreement is intended
for the benefit of the parties hereto and their respective  permitted successors
and  assigns,  and is not for the  benefit of, nor may any  provision  hereof be
enforced by, any other person.

                  (i)  Survival.  Unless  this  Agreement  is  terminated  under
Section 9(l), the representations and warranties of the Company and the Buyer(s)
contained  in  Sections  2 and 3, the  agreements  and  covenants  set  forth in
Sections 4, 5 and 9, and the indemnification  provisions set forth in Section 8,
shall  survive the Closing for a period of two (2) years  following  the date on
which the  Convertible  Debentures  are converted in full. The Buyer(s) shall be

                                       18
<PAGE>

responsible  only  for  its  own  representations,  warranties,  agreements  and
covenants hereunder.

                  (j)  Publicity.  The Company and the  Buyer(s)  shall have the
right to  approve,  before  issuance  any  press  release  or any  other  public
statement  with  respect to the  transactions  contemplated  hereby  made by any
party; provided,  however, that the Company shall be entitled, without the prior
approval of the Buyer(s),  to issue any press release or other public disclosure
with respect to such transactions  required under applicable securities or other
laws or  regulations  (the  Company  shall use its best  efforts to consult  the
Buyer(s) in connection  with any such press  release or other public  disclosure
prior to its release and  Buyer(s)  shall be provided  with a copy  thereof upon
release thereof).

                  (k) Further  Assurances.  Each party shall do and perform,  or
cause to be done and  performed,  all such  further  acts and things,  and shall
execute and deliver all such other  agreements,  certificates,  instruments  and
documents,  as the other party may reasonably  request in order to carry out the
intent and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

                  (l) Termination.  In the event that the Closing shall not have
occurred with respect to the Buyers on or before five (5) business days from the
date  hereof  due to the  Company's  or  the  Buyer's  failure  to  satisfy  the
conditions  set forth in Sections 6 and 7 above (and the  non-breaching  party's
failure to waive such unsatisfied  condition(s)),  the non-breaching party shall
have the option to terminate this Agreement with respect to such breaching party
at the close of  business  on such date  without  liability  of any party to any
other party;  provided,  however,  that if this  Agreement is  terminated by the
Company  pursuant to this Section 9(l),  the Company  shall remain  obligated to
reimburse  the  Buyer(s)  for  the  fees  and  expenses  of  Yorkville  Advisors
Management, LLC described in Section 4 above.

                  (m)  No  Strict  Construction.   The  language  used  in  this
Agreement  will be deemed to be the  language  chosen by the  parties to express
their mutual intent, and no rules of strict construction will be applied against
any party.

                    [REMAINDER PAGE INTENTIONALLY LEFT BLANK]

                                       19
<PAGE>

         IN WITNESS  WHEREOF,  the  Buyers  and the  Company  have  caused  this
Securities  Purchase  Agreement to be duly executed as of the date first written
above.

                                         COMPANY:
                                         SMARTIRE SYSTEMS, INC.

                                         By:
                                             ------------------------
                                         Name:  Robert V. Rudman
                                         Title: CEO

                                       20
<PAGE>

                                                                       EXHIBIT A

                 FORM OF INVESTOR REGISTRATION RIGHTS AGREEMENT

<PAGE>

                                                                       EXHIBIT B

                            FORM OF ESCROW AGREEMENT

<PAGE>

                                                                       EXHIBIT C

                           TRANSFER AGENT INSTRUCTIONS

<PAGE>

                                   SCHEDULE I

                               SCHEDULE OF BUYERS

<TABLE>
<CAPTION>
                                                                   ADDRESS/FACSIMILE                AMOUNT OF
           NAME                         SIGNATURE                 NUMBER OF INVESTORS              SUBSCRIPTION
----------------------------   ------------------------------  --------------------------------------------------
<S>                            <C>                             <C>                                  <C>
Cornell Capital Partners, LP   By:   Yorkville Advisors, LLC   101 Hudson Street - Suite 3700       $2,500,000
                               Its:  General Partner           Jersey City, NJ  07303
                                                               Facsimile:  (201) 985-8266

                               By:
                                   ------------------------
                               Name: Mark A. Angelo
                               Its:  Portfolio Manager

With a copy to:                Troy Rillo, Esq.                101 Hudson Street - Suite 3700
                                                               Jersey City, NJ 07302
                                                               Facsimile:  (201) 985-1964
</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]