Smart Technologies 710.0026 Smartire Product & Service Part Warranty, Effective November

SMARTIRE PRODUCT & SERVICE PART WARRANTY:

EFFECTIVE NOVEMBER 15, 2005

This warranty is effective as of November 15, 2005 and supersedes all past warranties expressed by SmarTire Systems Ltd. Warranty subject to change by SmarTire Systems Ltd. at any time without notice. Warranty claims must be processed with the Authorized SmarTire Dealer of purchase and not SmarTire Systems Ltd.

Warranty Policy

Subject to the conditions stated herein, SmarTire Systems Ltd. ("SmarTire") warrants that it's Products and service parts, when properly installed in approved applications, will conform to Product specifications and will be free from defects in material and workmanship under normal use and service. The term of SmarTire's warranty for its Products is 24 months and unlimited mileage commencing on the date of retail sale. Dated proof of purchase and claimed parts for return are required. The term of SmarTire's warranty for its service parts is 12 months and unlimited mileage commencing on the date of retail sale. Dated proof of purchase and claimed parts for return are required. The SmarTire warranty will be honored by the authorized SmarTire dealer from which the Product or service part was purchased.

Subject to warranty approval, SmarTire shall, at its discretion, cover the following:

•Products: replacement parts and cost of labor;

•Service Parts: replacement parts only.

SmarTire's obligation to satisfy a warranty claim is subject to, yet not limited to the following conditions:

a. dated proof of purchase is provided;

b. all Product involved must, unless otherwise indicated by SmarTire, be returned to the Authorized SmarTire Dealer of purchase; and

c. SmarTire's examination of the Product must disclose to SmarTire's satisfaction that none of the Warranty Exclusions described herein apply. In all cases, SmarTire shall make the final determination as to the warrantability of the Product.

Products replaced under warranty are covered hereunder by whichever is greater, the remaining portion of the original warranty period or 12 months.

General Limits and Exclusions

Coverage is not provided for the following failures or expenses:

a.Towing;

b.Downtime, lodging, meals, and travel time or transportation;

c.Troubleshooting / Diagnostics - except where allowed as indicated in the SmarTire approved guidelines;

d.Freight for expedited or rush parts shipments (Parts will be shipped by the most economical means possible);

e.Non-genuine replacement parts void the component warranty when used to make a repair;

f.Component damage due to failure of other chassis or vehicle components;

g.Undefined or unidentifiable miscellaneous changes;

h.Failures due to product mis-application or SmarTire unapproved application;

i.Failures due to unapproved alterations or modifications to the vehicle or the SmarTire component;

710.0026 R1.2 SmarTire LF Initiator Operating Instructions 7

REFERENCE ONLY