Mary 24, 2007 SmarTire Systems Inc. 13151 Vanier Place, Suite 150 Richmond, British Columbia V6V 2J1 Re: Convertible Preferred Stock Held by Cornell Capital Partners, L.P.
Exhibit
10.106
Xxxx
24,
2007
00000
Xxxxxx Xxxxx, Xxxxx 000
Richmond,
British Columbia
V6V
2J1
Re: Convertible
Preferred Stock Held by Cornell Capital Partners, L.P.
On
March
22, 2005 SmarTire Systems Inc. (the “Company”) entered into an Investment
Agreement with Cornell Capital Partners, L.P. (“Cornell”) pursuant to which the
Company sold an aggregate of $4,000,000 of its Series A 5% convertible preferred
stock, no par value.
The
Company was required pursuant to the terms of the Investment Agreement to
repay
Cornell the unconverted balance of $3,780,960 on December 22,
2006. Such payment was not made.
Cornell
hereby agrees that an event of default as defined in the Investment Agreement
and all related agreements to which Cornell and the Company are a party has
not
occurred as a result of the failure by the Company to pay Cornell the amount
due
on December 22, 2006 and Cornell hereby agrees to extend the date for such
payment from March 31, 2007 as agreed to on February 15, 2007 and from May
31,
2007 as agreed to on March 31, 2007 to July 31, 2007.
Very
truly yours,
Cornell
Capital Partners, L.P.
By:
/s/ Xxxxx Xxxxxxxx
Xxxxx
Xxxxxxxx
Managing
Partner & General Counsel
