DIRECTORS' COMPENSATION ON TERMINATION AGREEMENT

                                                                     Exhibit 4.8


                DIRECTORS' COMPENSATION ON TERMINATION AGREEMENT

THIS AGREEMENT dated the 3rd day of February, 2005 (the "Agreement Date")

BETWEEN:

            JOHNNY CHRISTIANSEN, businessman, of Spurvestien 24, 3189 Horten,
            Norway

            (the "Director")

                                                               OF THE FIRST PART

AND:

            SMARTIRE SYSTEMS INC., a company duly incorporated pursuant to the
            laws of the Province of British Columbia, having an office at 150 -
            13151 Vanier Place, Richmond, British Columbia, V6V 2J1

            ("SmarTire" or the "Company")

                                                               OF THE SECOND PART


A. The Director was elected or appointed as a director of SmarTire on or about
August 14, 2003;

B. SmarTire has a current policy on board remuneration under which the director
is being remunerated;

C. SmarTire and the Director wish to ensure the Director is properly remunerated
in the event of certain circumstances as set forth herein.

THEREFORE, in consideration of the mutual covenants and premises contained
herein, and payment of $10, the receipt and sufficiency of which is hereby
acknowledged, the parties covenant and agree as follows:

1.        DEFINITIONS

1.1       In this Amendment Agreement, the following terms have the meaning as
         ascribed below:


<PAGE>

      (a)    "Acquisition" means an acquisition of substantially all of SmarTire
            or of substantially all assets of SmarTire by a party not an
            Affiliate of SmarTire prior to completion of the acquisition;

      (b)    "Affiliate" means a director, officer, wholly or partially owned
            subsidiary or 10% or greater shareholder of SmarTire, or a company
            controlled by such person or any party acting in conjunction with
            such person;

      (c)    "Hostile Takeover" means a Takeover that the directors of SmarTire
            recommend to shareholders to reject in a management circular;

      (d)    "Merger" means a merger by SmarTire