Document:

CONSULTING AGREEMENT 

        This
Consulting Agreement (this “Agreement”), dated as of the Effective Date (as
hereinafter defined), is entered into by and between Bandag, Incorporated, an Iowa
corporation (the “Company”), and Martin G. Carver (“Consultant”). 

RECITALS 

        WHEREAS,
prior to the Effective Date, Consultant was the Chairman of the Board, Chief Executive
Officer and President of the Company, and in such capacity performed such duties as
normally performed by a chief executive officer of a public company; and 

        WHEREAS,
as of the Effective Date, the Company will terminate the employment of consultant, thereby
triggering the requirement that the Company make the payments to Consultant provided in
Section 5 of that certain Severance Agreement between the Company and Consultant, dated
May 4, 1999; and 

        WHEREAS,
prior to the Effective Date, Consultant was the owner of shares of the common stock of the
Company that had a significant value in connection with the transactions contemplated by
the Merger Agreement; and 

        WHEREAS,
notwithstanding such termination the Company believes that Consultant’s expertise and
knowledge will enhance the Company’s business; 

        WHEREAS,
the Company wishes to retain Consultant to perform consulting services and fulfill certain
related duties and obligations under the terms and conditions of this Agreement,
commencing on the Effective Date; and 

        NOW,
THEREFORE, in consideration of (a) the mutual covenants and agreements set forth in this
Agreement, and (b) other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the parties hereto agree as follows: 

        1.    
Consulting Services.  

            (a)    
Capacity. The Company hereby retains Consultant on a non-exclusive basis
               with respect to the business of the Company and its affiliates for the
purpose                of, for the first three (3) months after the Effective Date,
assisting in dealer                and fleet relations, advising on management team
evaluation, advising on                strategic business and integration issues, and
providing the benefit of his                institutional memory and knowledge, and for
the fourth through ninth months                after the Effective Date, assisting in
dealer and fleet relations. Consultant                hereby accepts such position upon
the terms and the conditions set forth herein,                and shall perform such
duties as may be mutually agreed upon by the President of                the Company and
Consultant, provided that Consultant shall make himself                available in any
event to provide consulting services for no more than fifty                (50) days in
the first three (3) months following the Effective Date, and not                more than
forty (40) days in the fourth through sixth months and not more than
               thirty (30) days in the seventh through ninth months following the
Effective                Date as reasonably requested by the Company. The Company may
request consulting                services from Consultant during the term of this
Agreement consistent with                Consultant’s time commitment set forth in
the preceding sentence and upon                reasonable notice to Consultant.  

            (b)    Term
and Operation. This Agreement will commence on the Effective Date                and
shall continue until, and shall end upon, the date that is nine (9) months
               after the Effective Date. Notwithstanding the foregoing, this Agreement
may be                terminated by the Company in writing upon thirty (30) days written
notice to                Consultant. This Agreement will terminate automatically on the
death of                Consultant.  

            (c)    Compensation.
In consideration of his performance of the consulting                services, for each
month during the term of this Agreement the Company will make                a payment to
Consultant (on or before the fifth day after the end of such month)                in an
amount equal to $3,000 for each full day that Consultant provides
               consulting services hereunder for such month. In addition, for the first
three                (3) months after the Effective Date, the Company will reimburse
Consultant for                such amount that Consultant pays for continuation of
Consultant’s coverage                under the Company’s group health plan
following the Effective Date.  

            (d)    Reimbursement
of Expenses. The Company shall reimburse Consultant for all                reasonable
expenses incurred by Consultant in the performance of his duties                under
this Agreement. Consultant shall not be obligated to make any advance to
               or for the account of the Company, nor shall Consultant be obligated to
incur                any expense for the account of the Company without assurance that
the necessary                funds for the discharge of such expense will be provided.
Notwithstanding the                foregoing, all significant expenses to be incurred by
Consultant in connection                with this Agreement shall require the prior
approval of the President of the                Company.  

        2.    Competitive
Activity; Confidentiality; Nonsolicitation.  

            (a)    Acknowledgements
and Agreements. Consultant hereby acknowledges and                agrees that in the
performance of Consultant’s services for the Company                during the term
of this Agreement, Consultant will be brought into frequent                contact with
existing and potential customers of the Company throughout the                world.
Consultant also agrees that trade secrets and confidential information of
               the Company, more fully described in subparagraph 2(e)(i), gained by
Consultant                during Consultant’s association with the Company, have
been developed by                the Company through substantial expenditures of time,
effort and money and                constitute valuable and unique property of the
Company. Consultant further                understands and agrees that the foregoing
makes it necessary for the protection                of the Company’s Business that
Consultant not compete with the Company                during the term of this Agreement
and not compete with the Company for a                reasonable period thereafter, as
further provided in the following                subparagraphs.  

            (b)    Covenants.  

	 	        (i)    Competition.
During the term of this Agreement and for a period of two                (2) years from
the termination thereof, Consultant will not compete with the                Company’s
Business anywhere in the world. In accordance with this                restriction, but
without limiting its terms, during that period, Consultant will                not:  

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	 	(A) 	enter
into or engage in any business which competes with the Company’s
               Business;  

	 	(B) 	solicit
customers, business, patronage or orders for, or sell, any products or
               services in competition with, or for any business that competes with, the
               Company’s Business;  

	 	(C) 	divert,
entice or otherwise take away any customers, business, patronage or                orders
of the Company or attempt to do so; or  

	 	(D) 	promote
or assist, financially or otherwise, any person, firm, association,
               partnership, corporation or other entity engaged in any business which
competes                with the Company’s Business. 

	 	        (ii)    Indirect
Competition. For the purposes of subparagraphs 2(b)(i) and (ii)
               inclusive, but without limitation thereof, Consultant will be in violation
               thereof if Consultant engages in any or all of the activities set forth
therein                directly as an individual on Consultant’s own account, or
indirectly as a                partner, joint venturer, employee, agent, salesperson,
consultant, officer                and/or director of any firm, association, partnership,
corporation or other                entity, or as a stockholder of any corporation in
which Consultant or                Consultant’s spouse, child or parent owns,
directly or indirectly,                individually or in the aggregate, more than five
percent (5%) of the outstanding                stock.  

	 	        (iii)                   If
it shall be judicially determined that Consultant has violated this
               subparagraph 2(b), then the period applicable to each obligation that
Consultant                shall have been determined to have violated shall automatically
be extended by a                period of time equal in length to the period during which
such violation(s)                occurred.  

            (c)    The
Company. For purposes of this paragraph 2, the Company shall include
               any and all direct and indirect subsidiary, parent, affiliated, or related
               companies of the Company.  

            (d)    Non-Solicitation.
Consultant will not directly or indirectly at any time,                attempt to
disrupt, damage, impair or interfere with the Company’s Business                by
raiding any of the Company’s employees or soliciting any of them to
               resign from their employment by the Company, or by disrupting the
relationship                between the Company and any of its consultants, agents,
representatives or                vendors. Consultant acknowledges that this covenant is
necessary to enable the                Company to maintain a stable workforce and remain
in business.  

            (e)    Further
Covenants.  

	 	        (i)                   Consultant
will keep in strict confidence, and will not, directly or indirectly,                at
any time, disclose, furnish, disseminate, make available or, except in the
               course of Consultant’s performance of services for the Company, use
any                trade secrets or confidential business and technical information of
the Company                or its customers or vendors, without limitation as to when or
how Consultant may                have acquired such information. Such confidential
information shall include,                without limitation, the Company’s unique
selling, manufacturing and                servicing methods and business techniques,
training, service and business                manuals, promotional materials, training
courses and other training and                instructional materials, vendor and product
information, customer and                prospective customer lists, other customer and
prospective customer information                and other business information.
Consultant specifically acknowledges that all                such confidential
information, whether reduced to writing, maintained on any                form of
electronic media, or maintained in the mind or memory of Consultant and
               whether compiled by the Company, and/or Consultant, derives independent
economic                value from not being readily known to or ascertainable by proper
means by others                who can obtain economic value from its disclosure or use,
that reasonable                efforts have been made by the Company to maintain the
secrecy of such                information, that such information is the sole property of
the Company and that                any retention and use of such information by
Consultant during the term of this                Agreement (except in the course of
performing services for the Company) or after                the termination of this
Agreement shall constitute a misappropriation of the                Company’s trade
secrets.  

-3- 

	 	        (ii)                   Consultant
agrees that upon termination of Consultant’s performance of                services,
for any reason, Consultant shall return to the Company, in good                condition,
all property of the Company, including without limitation, the                originals
and all copies of any materials which contain, reflect, summarize,
               describe, analyze or refer or relate to any items of information listed in
               subparagraph 2(e)(i) of this Agreement. In the event that such items are
not so                returned, the Company will have the right to charge Consultant for
all                reasonable damages, costs, attorneys’ fees and other expenses
incurred in                searching for, taking, removing and/or recovering such
property.  

            (f)    Discoveries
and Inventions; Work Made for Hire.  

	 	        (i)                   Consultant
agrees that upon conception and/or development of any idea,                discovery,
invention, improvement, software, writing or other material or design
               that: (A) relates to the business of the Company, or (B) relates to the
               Company’s actual or demonstrably anticipated research or development,
or                (C) results from any services performed by Consultant for the Company,
               Consultant will assign to the Company the entire right, title and interest
in                and to any such idea, discovery, invention, improvement, software,
writing or                other material or design. Consultant has no obligation to
assign any idea,                discovery, invention, improvement, software, writing or
other material or design                that Consultant conceives and/or develops
entirely on Consultant’s own time                without using the Company’s
equipment, supplies, facilities, or trade                secret information unless the
idea, discovery, invention, improvement, software,                writing or other
material or design either: (x) relates to the business of the                Company, or
(y) relates to the Company’s actual or demonstrably anticipated
               research or development, or (z) results from any work performed by
Consultant                for the Company. Consultant agrees that any idea, discovery,
invention,                improvement, software, writing or other material or design that
relates to the                business of the Company or relates to the Company’s
actual or demonstrably                anticipated research or development which is
conceived or suggested by                Consultant, either solely or jointly with
others, within one (1) year following                termination of this Agreement or any
successor agreements shall be presumed to                have been so made, conceived or
suggested in the course of Consultant’s                performance of services
hereunder with the use of the Company’s equipment,                supplies,
facilities, and/or trade secrets.  

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	 	        (ii)                   In
order to determine the rights of Consultant and the Company in any idea,
               discovery, invention, improvement, software, writing or other material,
and to                insure the protection of the same, Consultant agrees that during
the term of                this Agreement, and for one (1) year after the termination
thereof, Consultant                will disclose immediately and fully to the Company any
idea, discovery,                invention, improvement, software, writing or other
material or design conceived,                made or developed by Consultant solely or
jointly with others. The Company                agrees to keep any such disclosures
confidential. Consultant also agrees to                record descriptions of all work in
the manner directed by the Company and agrees                that all such records and
copies, samples and experimental materials will be the                exclusive property
of the Company. Consultant agrees that at the request of and                without
charge to the Company, but at the Company’s expense, Consultant                will
execute a written assignment of the idea, discovery, invention,
               improvement, software, writing or other material or design to the Company
and                will assign to the Company any application for letters patent or for
trademark                registration made thereon, and to any common-law or statutory
copyright therein;                and that Consultant will do whatever may be necessary
or desirable to enable the                Company to secure any patent, trademark,
copyright, or other property right                therein in the United States and in any
foreign country, and any division,                renewal, continuation, or continuation
in part thereof, or for any reissue of                any patent issued thereon. In the
event the Company is unable, after reasonable                effort, and in any event
after ten business days, to secure Consultant’s                signature on a
written assignment to the Company of any application for letters                patent or
to any common-law or statutory copyright or other property right                therein,
whether because of Consultant’s physical or mental incapacity or                for
any other reason whatsoever, Consultant irrevocably designates and appoints
               the General Counsel of the Company as Consultant’s attorney-in-fact
to act                on Consultant’s behalf to execute and file any such
application and to do                all other lawfully permitted acts to further the
prosecution and issuance of                such letters patent, copyright or trademark.  

	 	        (iii)                   Consultant
acknowledges that, to the extent permitted by law, all work papers,
               reports, documentation, drawings, photographs, negatives, tapes and
masters                therefor, prototypes and other materials (hereinafter, “items”),
               including without limitation, any and all such items generated and
maintained on                any form of electronic media, generated by Consultant during
the term of this                Agreement shall be considered a “work made for hire” and
that                ownership of any and all copyrights in any and all such items shall
belong to                the Company. The item will recognize the Company as the
copyright owner, will                contain all proper copyright notices, e.g., “(creation
date) [Company                Name], All Rights Reserved,” and will be in condition
to be registered or                otherwise placed in compliance with registration or
other statutory requirements                throughout the world.  

-5- 

            (g)    Communication
of Contents of Agreement. During the term of this Agreement                and for
two (2) years after the termination thereof, Consultant will communicate
               the contents of paragraph 2 of this Agreement to any person, firm,
association,                partnership, corporation or other entity that Consultant
intends to be employed                by, associated with, or represent.  

            (h)    Confidentiality
Agreements. Consultant agrees that Consultant shall not                disclose to
the Company or induce the Company to use any secret or confidential
               information belonging to Consultant’s former employers. Except as
               indicated, Consultant warrants that Consultant is not bound by the terms
of a                confidentiality agreement or other agreement with a third party that
would                preclude or limit Consultant’s right to perform services for
the Company                and/or to disclose to the Company any ideas, inventions,
discoveries,                improvements or designs or other information that may be
conceived during the                term of this Agreement. Consultant agrees to provide
the Company with a copy of                any and all agreements with a third party that
preclude or limit                Consultant’s right to make disclosures or to engage
in any other activities                contemplated by this Agreement.  

            (i)    Relief.
Consultant acknowledges and agrees that the remedy at law                available to the
Company for breach of any of Consultant’s obligations                under this
Agreement would be inadequate. Consultant therefore agrees that, in
               addition to any other rights or remedies that the Company may have at law
or in                equity, temporary and permanent injunctive relief may be granted in
any                proceeding which may be brought to enforce any provision contained in
               subparagraphs 2(b), 2(d), 2(e), 2(f), 2(g) and 2(h) inclusive, of this
               Agreement, without the necessity of proof of actual damage.  

            (j)    Reasonableness.
Consultant acknowledges that Consultant’s                obligations under this
paragraph 2 are reasonable in the context of the nature                of the Company’s
Business and the competitive injuries likely to be                sustained by the
Company if Consultant were to violate such obligations.                Consultant further
acknowledges that this Agreement is made in consideration of,                and is
adequately supported by the agreement of the Company to perform its
               obligations under this Agreement and by other consideration, which
Consultant                acknowledges constitutes good, valuable and sufficient
consideration.  

            (k)    Company’s
Business. For purposes of this Agreement,                “Company’s Business” means
any of the following (i) the                production, manufacture and sale of precured
tread rubber, equipment and                supplies for the retreading of tires for
trucks, buses, industrial equipment and                off-road equipment; (ii) the sale
and service as a business organization with                annual sales in excess of $5
millionof new and retread tires to                commercial and industrial
customers; and (iii) the provision as a business                organization with annual
sales in excess of $5 million of tire management or                quick-service truck
lubrication services.  

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        3.    Independent
Contractor. During the term of this Agreement, Consultant                will at all
times be and remain an independent contractor. Consultant shall be                free to
exercise Consultant’s own judgment as to the manner and method of
               providing the consulting services to the Company, subject to applicable
laws and                requirements reasonably imposed by the Company. Consultant shall
report to the                President of the Company with respect to the consulting
services provided by                Consultant to the Company hereunder. Consultant
acknowledges and agrees that,                during the term of this Agreement,
Consultant will not be treated as an employee                of the Company or any of its
affiliates for purposes of federal, state, local or                foreign income tax
withholding, nor unless otherwise specifically provided by                law, for
purposes of the Federal Insurance Contributions Act, the Social                Security
Act, the Federal Unemployment Tax Act or any Worker’s Compensation
               law of any state or country and for purposes of benefits provided to
employees                of the Company or any of its affiliates under any employee
benefit plan.                Consultant acknowledges and agrees that as an independent
contractor, Consultant                will be required, during the term of this
Agreement, to pay any applicable taxes                on the fees paid to Consultant.
Consultant shall indemnify, hold harmless and                defend the Company for all
tax and other liabilities (including, without                limitation, reasonable fees
and expenses of attorneys and other professionals)                arising out of or
relating to Consultant’s failure to report and pay all                employment
income taxes or other taxes due on taxable amounts paid to or on                behalf of
Consultant by the Company.  

        4.    Survival.
Subject to any limits on applicability contained therein,                paragraph 2
hereof shall survive and continue in full force in accordance with                its
terms notwithstanding any termination of this Agreement.  

        5.    Severability.
Whenever possible, each provision of this Agreement shall                be interpreted
in such manner as to be effective and valid under applicable law,                but if
any provision of this Agreement is held to be invalid or unenforceable in
               any respect under any applicable law, such invalidity or unenforceability
shall                not affect any other provision, but this Agreement shall be
reformed, construed                and enforced as if such invalid or unenforceable
provision had never been                contained herein.  

        6.    Complete
Agreement. This Agreement embodies the complete agreement and
               understanding between the parties with respect to the subject matter
hereof and                effective as of its date supersedes and preempts any prior
understandings,                agreements or representations by or between the parties,
written or oral, which                may have related to the subject matter hereof in
any way.  

        7.    Counterparts.
This Agreement may be executed in separate counterparts,                each of which
shall be deemed to be an original and both of which taken together                shall
constitute one and the same agreement.  

        8.    Successors
and Assigns. This Agreement shall bind and inure to the                benefit of and
be enforceable by Consultant, the Company and their respective                heirs,
executors, personal representatives, successors and assigns, except that
               neither party may assign any rights or delegate any obligations hereunder
               without the prior written consent of the other party. Consultant hereby
consents                to the assignment by the Company of all of its rights and
obligations hereunder                to any successor to the Company by merger or
consolidation or purchase of all or                substantially all of the Company’s
assets, provided such transferee or                successor assumes the liabilities of
the Company hereunder.  

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        9.    Choice
of Law. This Agreement shall be governed by, and construed in
               accordance with, the internal, substantive laws of the State of Iowa.
Consultant                agrees that the state and federal courts located in the State
of Iowa shall have                jurisdiction in any action, suit or proceeding against
Consultant based on or                arising out of this Agreement and Consultant
hereby: (a) submits to the personal                jurisdiction of such courts; (b)
consents to service of process in connection                with any action, suit or
proceeding against Consultant; and (c) waives any other                requirement
(whether imposed by statute, rule of court or otherwise) with                respect to
personal jurisdiction, venue or service of process.  

        10.    Amendment
and Waiver. The provisions of this Agreement may be amended or                waived
only with the prior written consent of the Company and Consultant, and no
               course of conduct or failure or delay in enforcing the provisions of this
               Agreement shall affect the validity, binding effect or enforceability of
this                Agreement.  

        11.    Operation
of Agreement. This Agreement will be binding immediately upon                its
execution, but, notwithstanding any provision of this Agreement to the
               contrary, this Agreement will not become effective or operative (and
neither                party will have any obligation hereunder) until the date on which
the                transactions contemplated by the Agreement and Plan of Merger by and
among Grip                Acquisition Corporation, Bridgestone Americas Holding, Inc.,
and Bandag,                Incorporated dated as of December 5, 2006 (the “Merger
Agreement”) are                consummated (the “Effective Date”).  

        12.    Payments
Under Severance Agreement. To the extent required by Code           Section 409A to
avoid an additional 20% tax, the monthly payments due Consultant           under that
certain Severance Agreement between the Company and Consultant, dated           May 4,
1999 will be delayed until the first day of the seventh (7th)           month
following the month in which the Consultant’s “separation from           service” occurs,
and in such event, all monthly payments that would have           otherwise been paid
during such period shall be accumulated and paid in a lump           sum on such date and
the remaining monthly payments shall commence on such date.           It is further
understood that for this purpose, the time at which the Consultant           will be
considered to have separated from service will be at the time the           Consultant
has incurred a “separation from service” within the meaning           of Code
Section 409A.  

[SIGNATURES ON
FOLLOWING PAGE] 

-8- 

        IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date and year first
above written. 

		
		BANDAG, INCORPORATED
	

 	By:  /s/ Warren W. Heidbreder
		        Name:  Warren W. Heidbreder
		        Title:  Vice President, Chief Financial Officer and Secretary
	

 	/s/ Martin G. Carver
		Martin G. Carver, in his individual capacity

-9-CONSULTING AGREEMENT 

        This
Consulting Agreement (this “Agreement”), dated as of the Effective Date (as
hereinafter defined), is entered into by and between Bandag, Incorporated, an Iowa
corporation (the “Company”), and Warren W. Heidbreder (“Consultant”). 

RECITALS 

        WHEREAS,
prior to the Effective Date, Consultant was the Vice President, Chief Financial Officer
and Secretary of the Company, and in such capacity performed the duties customarily
performed by the chief financial officer of a public company, and has had substantial
involvement in the operations of the Company; and 

        WHEREAS,
as of the Effective Date, the Company will terminate the employment of Consultant, thereby
triggering the requirement that the Company make the payments to Consultant provided in
Section 5 of that certain Severance Agreement between the Company and Consultant, dated
May 4, 1999; and 

        WHEREAS,
prior to the Effective Date, consultant was the owner of shares of the common stock of the
Company that had a significant value in connection with the transactions contemplated by
the Merger Agreement (the “Merger”); and 

        WHEREAS,
notwithstanding such termination, the Company believes that Consultant’s expertise
and knowledge will enhance the Company’s business following the Merger; and 

        WHEREAS,
the Company wishes to retain Consultant to perform consulting services and fulfill certain
related duties and obligations under the terms and conditions of this Agreement,
commencing on the Effective Date; and 

        NOW,
THEREFORE, in consideration of (a) the mutual covenants and agreements set forth in this
Agreement, and (b) other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the parties hereto agree as follows: 

        1.    Consulting
Services.  

            (a)    Capacity.
The Company hereby retains Consultant on a non-exclusive basis                with
respect to the business of the Company and its affiliates for the purpose
               of, among other things, providing advice and assistance on operational
issues                relevant to his operational expertise, advice and guidance on
administrative                matters (such as finance, accounting, information
technology, and risk                management), advice on obtaining operational and
administrative synergies, and                the benefit of his institutional memory and
knowledge. Consultant hereby accepts                such position upon the terms and the
conditions set forth herein, and shall                perform such duties as may be
mutually agreed upon by the President of the                Company and Consultant,
provided that Consultant shall make himself available in                any event to
provide consulting services on a substantially full-time basis for                the
first six (6) months following the Effective Date, and for such time
               commitment as may be mutually agreed upon by the parties for later
periods. The                Company may request consulting services from Consultant
during the term of this                Agreement consistent with Consultant’s time
commitment set forth in the                preceding sentence.  

            (b)    Term
and Operation. This Agreement will commence on the Effective Date                and
shall continue until, and shall end upon, the date that is six (6) months
               after the Effective Date, or such later date as is agreed to by the
parties.                This Agreement will terminate automatically on the death of
Consultant.  

            (c)    Compensation.
In consideration of his performance of the consulting                services, during the
first six months following the Effective Date the Company                will reimburse
Consultant for such amount that Consultant pays for continuation                of
Consultant’s coverage under the Company’s group health plan
               following the Effective Date and will make a monthly payment to Consultant
(on                or before the fifth business day after the end of each month) in an
amount equal                to $41,000, and for any remaining period for which the
parties agree to extend                this Agreement, the Company will pay Consultant
$2,460 for each day of                consulting services provided by Consultant.  

            (d)    Reimbursement
of Expenses. The Company shall reimburse Consultant for all                reasonable
expenses incurred by Consultant in the performance of his duties                under
this Agreement. Consultant shall not be obligated to make any advance to
               or for the account of the Company, nor shall Consultant be obligated to
incur                any expense for the account of the Company without assurance that
the necessary                funds for the discharge of such expense will be provided.
Notwithstanding the                foregoing, all significant expenses to be incurred by
Consultant in connection                with this Agreement shall require the prior
approval of the President of the                Company.  

        2.    Competitive
Activity; Confidentiality; Nonsolicitation.  

            (a)    Acknowledgements
and Agreements. Consultant hereby acknowledges and                agrees that in the
performance of Consultant’s services for the Company                during the term
of this Agreement, Consultant will be brought into frequent                contact with
existing and potential customers of the Company throughout the                world.
Consultant also agrees that trade secrets and confidential information of
               the Company, more fully described in subparagraph 2(e)(i), gained by
Consultant                during Consultant’s association with the Company, have
been developed by                the Company through substantial expenditures of time,
effort and money and                constitute valuable and unique property of the
Company. Consultant further                understands and agrees that the foregoing
makes it necessary for the protection                of the Company’s Business that
Consultant not compete with the Company                during the term of this Agreement
and not compete with the Company for a                reasonable period thereafter, as
further provided in the following                subparagraphs.  

            (b)    Covenants.  

	 	        (i)    Competition.
During the term of this Agreement and for a period of two                (2) years from
the termination thereof, Consultant will not compete with the                Company’s
Business anywhere in the world. In accordance with this                restriction, but
without limiting its terms, during that period, Consultant will                not:  

-2- 

	 	(A) 	enter
into or engage in any business which competes with the Company’s
               Business;  

	 	(B) 	solicit
customers, business, patronage or orders for, or sell, any products or
               services in competition with, or for any business that competes with, the
               Company’s Business;  

	 	(C) 	divert,
entice or otherwise take away any customers, business, patronage or                orders
of the Company or attempt to do so; or  

	 	(D) 	promote
or assist, financially or otherwise, any person, firm, association,
               partnership, corporation or other entity engaged in any business which
competes                with the Company’s Business.  

	 	        (ii)    Indirect
Competition. For the purposes of subparagraphs 2(b)(i) and (ii)
               inclusive, but without limitation thereof, Consultant will be in violation
               thereof if Consultant engages in any or all of the activities set forth
therein                directly as an individual on Consultant’s own account, or
indirectly as a                partner, joint venturer, employee, agent, salesperson,
consultant, officer                and/or director of any firm, association, partnership,
corporation or other                entity, or as a stockholder of any corporation in
which Consultant or                Consultant’s spouse, child or parent owns,
directly or indirectly,                individually or in the aggregate, more than five
percent (5%) of the outstanding                stock.  

	 	        (iii)                   If
it shall be judicially determined that Consultant has violated this
               subparagraph 2(b), then the period applicable to each obligation that
Consultant                shall have been determined to have violated shall automatically
be extended by a                period of time equal in length to the period during which
such violation(s)                occurred.  

            (c)    The
Company. For purposes of this paragraph 2, the Company shall include
               any and all direct and indirect subsidiary, parent, affiliated, or related
               companies of the Company.  

            (d)    Non-Solicitation.
Consultant will not directly or indirectly at any time,                attempt to
disrupt, damage, impair or interfere with the Company’s Business                by
raiding any of the Company’s employees or soliciting any of them to
               resign from their employment by the Company, or by disrupting the
relationship                between the Company and any of its consultants, agents,
representatives or                vendors. Consultant acknowledges that this covenant is
necessary to enable the                Company to maintain a stable workforce and remain
in business.  

            (e)    Further
Covenants.  

	 	        (i)                   Consultant
will keep in strict confidence, and will not, directly or indirectly,                at
any time, disclose, furnish, disseminate, make available or, except in the
               course of Consultant’s performance of services for the Company, use
any                trade secrets or confidential business and technical information of
the Company                or its customers or vendors, without limitation as to when or
how Consultant may                have acquired such information. Such confidential
information shall include,                without limitation, the Company’s unique
selling, manufacturing and                servicing methods and business techniques,
training, service and business                manuals, promotional materials, training
courses and other training and                instructional materials, vendor and product
information, customer and                prospective customer lists, other customer and
prospective customer information                and other business information.
Consultant specifically acknowledges that all                such confidential
information, whether reduced to writing, maintained on any                form of
electronic media, or maintained in the mind or memory of Consultant and
               whether compiled by the Company, and/or Consultant, derives independent
economic                value from not being readily known to or ascertainable by proper
means by others                who can obtain economic value from its disclosure or use,
that reasonable                efforts have been made by the Company to maintain the
secrecy of such                information, that such information is the sole property of
the Company and that                any retention and use of such information by
Consultant during the term of this                Agreement (except in the course of
performing services for the Company) or after                the termination of this
Agreement shall constitute a misappropriation of the                Company’s trade
secrets.  

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	 	        (ii)                   Consultant
agrees that upon termination of Consultant’s performance of                services,
for any reason, Consultant shall return to the Company, in good                condition,
all property of the Company, including without limitation, the                originals
and all copies of any materials which contain, reflect, summarize,
               describe, analyze or refer or relate to any items of information listed in
               subparagraph 2(e)(i) of this Agreement. In the event that such items are
not so                returned, the Company will have the right to charge Consultant for
all                reasonable damages, costs, attorneys’ fees and other expenses
incurred in                searching for, taking, removing and/or recovering such
property.  

            (f)    Discoveries
and Inventions; Work Made for Hire.  

	 	        (i)                   Consultant
agrees that upon conception and/or development of any idea,                discovery,
invention, improvement, software, writing or other material or design
               that: (A) relates to the business of the Company, or (B) relates to the
               Company’s actual or demonstrably anticipated research or development,
or                (C) results from any services performed by Consultant for the Company,
               Consultant will assign to the Company the entire right, title and interest
in                and to any such idea, discovery, invention, improvement, software,
writing or                other material or design. Consultant has no obligation to
assign any idea,                discovery, invention, improvement, software, writing or
other material or design                that Consultant conceives and/or develops
entirely on Consultant’s own time                without using the Company’s
equipment, supplies, facilities, or trade                secret information unless the
idea, discovery, invention, improvement, software,                writing or other
material or design either: (x) relates to the business of the                Company, or
(y) relates to the Company’s actual or demonstrably anticipated
               research or development, or (z) results from any work performed by
Consultant                for the Company. Consultant agrees that any idea, discovery,
invention,                improvement, software, writing or other material or design that
relates to the                business of the Company or relates to the Company’s
actual or demonstrably                anticipated research or development which is
conceived or suggested by                Consultant, either solely or jointly with
others, within one (1) year following                termination of this Agreement or any
successor agreements shall be presumed to                have been so made, conceived or
suggested in the course of Consultant’s                performance of services
hereunder with the use of the Company’s equipment,                supplies,
facilities, and/or trade secrets.  

-4- 

	 	        (ii)                   In
order to determine the rights of Consultant and the Company in any idea,
               discovery, invention, improvement, software, writing or other material,
and to                insure the protection of the same, Consultant agrees that during
the term of                this Agreement, and for one (1) year after the termination
thereof, Consultant                will disclose immediately and fully to the Company any
idea, discovery,                invention, improvement, software, writing or other
material or design conceived,                made or developed by Consultant solely or
jointly with others. The Company                agrees to keep any such disclosures
confidential. Consultant also agrees to                record descriptions of all work in
the manner directed by the Company and agrees                that all such records and
copies, samples and experimental materials will be the                exclusive property
of the Company. Consultant agrees that at the request of and                without
charge to the Company, but at the Company’s expense, Consultant                will
execute a written assignment of the idea, discovery, invention,
               improvement, software, writing or other material or design to the Company
and                will assign to the Company any application for letters patent or for
trademark                registration made thereon, and to any common-law or statutory
copyright therein;                and that Consultant will do whatever may be necessary
or desirable to enable the                Company to secure any patent, trademark,
copyright, or other property right                therein in the United States and in any
foreign country, and any division,                renewal, continuation, or continuation
in part thereof, or for any reissue of                any patent issued thereon. In the
event the Company is unable, after reasonable                effort, and in any event
after ten business days, to secure Consultant’s                signature on a
written assignment to the Company of any application for letters                patent or
to any common-law or statutory copyright or other property right                therein,
whether because of Consultant’s physical or mental incapacity or                for
any other reason whatsoever, Consultant irrevocably designates and appoints
               the General Counsel of the Company as Consultant’s attorney-in-fact
to act                on Consultant’s behalf to execute and file any such
application and to do                all other lawfully permitted acts to further the
prosecution and issuance of                such letters patent, copyright or trademark.  

	 	        (iii)                   Consultant
acknowledges that, to the extent permitted by law, all work papers,
               reports, documentation, drawings, photographs, negatives, tapes and
masters                therefor, prototypes and other materials (hereinafter, “items”),
               including without limitation, any and all such items generated and
maintained on                any form of electronic media, generated by Consultant during
the term of this                Agreement shall be considered a “work made for hire” and
that                ownership of any and all copyrights in any and all such items shall
belong to                the Company. The item will recognize the Company as the
copyright owner, will                contain all proper copyright notices, e.g., “(creation
date) [Company                Name], All Rights Reserved,” and will be in condition
to be registered or                otherwise placed in compliance with registration or
other statutory requirements                throughout the world.  

-5- 

            (g)    Communication
of Contents of Agreement. During the term of this Agreement                and for
two (2) years after the termination thereof, Consultant will communicate
               the contents of paragraph 2 of this Agreement to any person, firm,
association,                partnership, corporation or other entity that Consultant
intends to be employed                by, associated with, or represent.  

            (h)    Confidentiality
Agreements. Consultant agrees that Consultant shall not                disclose to
the Company or induce the Company to use any secret or confidential
               information belonging to Consultant’s former employers. Except as
               indicated, Consultant warrants that Consultant is not bound by the terms
of a                confidentiality agreement or other agreement with a third party that
would                preclude or limit Consultant’s right to perform services for
the Company                and/or to disclose to the Company any ideas, inventions,
discoveries,                improvements or designs or other information that may be
conceived during the                term of this Agreement. Consultant agrees to provide
the Company with a copy of                any and all agreements with a third party that
preclude or limit                Consultant’s right to make disclosures or to engage
in any other activities                contemplated by this Agreement.  

            (i)    Relief.
Consultant acknowledges and agrees that the remedy at law                available to the
Company for breach of any of Consultant’s obligations                under this
Agreement would be inadequate. Consultant therefore agrees that, in
               addition to any other rights or remedies that the Company may have at law
or in                equity, temporary and permanent injunctive relief may be granted in
any                proceeding which may be brought to enforce any provision contained in
               subparagraphs 2(b), 2(d), 2(e), 2(f), 2(g) and 2(h) inclusive, of this
               Agreement, without the necessity of proof of actual damage.  

            (j)    Reasonableness.
Consultant acknowledges that Consultant’s                obligations under this
paragraph 2 are reasonable in the context of the nature                of the Company’s
Business and the competitive injuries likely to be                sustained by the
Company if Consultant were to violate such obligations.                Consultant further
acknowledges that this Agreement is made in consideration of,                and is
adequately supported by the agreement of the Company to perform its
               obligations under this Agreement and by other consideration, which
Consultant                acknowledges constitutes good, valuable and sufficient
consideration.  

            (k)    Company’s
Business. For purposes of this Agreement,                “Company’s Business” means
any of the following (i) the                production, manufacture and sale of precured
tread rubber, equipment and                supplies for the retreading of tires for
trucks, buses, industrial equipment and                off-road equipment; (ii) the sale
and service as a business organization with                annual sales in excess of $5
millionof new and retread tires to                commercial and industrial
customers; and (iii) the provision as a business                organization with annual
sales in excess of $5 million of tire management or                quick-service truck
lubrication services.  

-6- 

        3.    Independent
Contractor. During the term of this Agreement, Consultant                will at all
times be and remain an independent contractor. Consultant shall be                free to
exercise Consultant’s own judgment as to the manner and method of
               providing the consulting services to the Company, subject to applicable
laws and                requirements reasonably imposed by the Company. Consultant shall
report to the                President of the Company with respect to the consulting
services provided by                Consultant to the Company hereunder. Consultant
acknowledges and agrees that,                during the term of this Agreement,
Consultant will not be treated as an employee                of the Company or any of its
affiliates for purposes of federal, state, local or                foreign income tax
withholding, nor unless otherwise specifically provided by                law, for
purposes of the Federal Insurance Contributions Act, the Social                Security
Act, the Federal Unemployment Tax Act or any Worker’s Compensation
               law of any state or country and for purposes of benefits provided to
employees                of the Company or any of its affiliates under any employee
benefit plan.                Consultant acknowledges and agrees that as an independent
contractor, Consultant                will be required, during the term of this
Agreement, to pay any applicable taxes                on the fees paid to Consultant.
Consultant shall indemnify, hold harmless and                defend the Company for all
tax and other liabilities (including, without                limitation, reasonable fees
and expenses of attorneys and other professionals)                arising out of or
relating to Consultant’s failure to report and pay all                employment
income taxes or other taxes due on taxable amounts paid to or on                behalf of
Consultant by the Company.  

        4.    Survival.
Subject to any limits on applicability contained therein,                paragraph 2
hereof shall survive and continue in full force in accordance with                its
terms notwithstanding any termination of this Agreement.  

        5.    Severability.
Whenever possible, each provision of this Agreement shall                be interpreted
in such manner as to be effective and valid under applicable law,                but if
any provision of this Agreement is held to be invalid or unenforceable in
               any respect under any applicable law, such invalidity or unenforceability
shall                not affect any other provision, but this Agreement shall be
reformed, construed                and enforced as if such invalid or unenforceable
provision had never been                contained herein.  

        6.    Complete
Agreement. This Agreement embodies the complete agreement and
               understanding between the parties with respect to the subject matter
hereof and                effective as of its date supersedes and preempts any prior
understandings,                agreements or representations by or between the parties,
written or oral, which                may have related to the subject matter hereof in
any way.  

        7.    Counterparts.
This Agreement may be executed in separate counterparts,                each of which
shall be deemed to be an original and both of which taken together                shall
constitute one and the same agreement.  

        8.    Successors
and Assigns. This Agreement shall bind and inure to the                benefit of and
be enforceable by Consultant, the Company and their respective                heirs,
executors, personal representatives, successors and assigns, except that
               neither party may assign any rights or delegate any obligations hereunder
               without the prior written consent of the other party. Consultant hereby
consents                to the assignment by the Company of all of its rights and
obligations hereunder                to any successor to the Company by merger or
consolidation or purchase of all or                substantially all of the Company’s
assets, provided such transferee or                successor assumes the liabilities of
the Company hereunder.  

-7- 

        9.    Choice
of Law. This Agreement shall be governed by, and construed in
               accordance with, the internal, substantive laws of the State of Iowa.
Consultant                agrees that the state and federal courts located in the State
of Iowa shall have                jurisdiction in any action, suit or proceeding against
Consultant based on or                arising out of this Agreement and Consultant
hereby: (a) submits to the personal                jurisdiction of such courts; (b)
consents to service of process in connection                with any action, suit or
proceeding against Consultant; and (c) waives any other                requirement
(whether imposed by statute, rule of court or otherwise) with                respect to
personal jurisdiction, venue or service of process.  

        10.    Amendment
and Waiver. The provisions of this Agreement may be amended or                waived
only with the prior written consent of the Company and Consultant, and no
               course of conduct or failure or delay in enforcing the provisions of this
               Agreement shall affect the validity, binding effect or enforceability of
this                Agreement.  

        11.    Operation
of Agreement. This Agreement will be binding immediately upon                its
execution, but, notwithstanding any provision of this Agreement to the
               contrary, this Agreement will not become effective or operative (and
neither                party will have any obligation hereunder) until the date on which
the                transactions contemplated by the Agreement and Plan of Merger by and
among Grip                Acquisition Corporation, Bridgestone Americas Holding, Inc.,
and Bandag,                Incorporated dated as of December 5, 2006 (the “Merger
Agreement”) are                consummated (the “Effective Date”).  

        12.    Payments
Under Severance Agreement. To the extent required by Code           Section 409A to
avoid an additional 20% tax, the monthly payments due Consultant           under that
certain Severance Agreement between the Company and Consultant, dated           May 4,
1999 will be delayed until the first day of the seventh (7th)           month
following the month in which the Consultant’s “separation from           service” occurs,
and in such event, all monthly payments that would have           otherwise been paid
during such period shall be accumulated and paid in a lump           sum on such date and
the remaining monthly payments shall commence on such date.           It is further
understood that for this purpose, the time at which the Consultant           will be
considered to have separated from service will be at the time the           Consultant
has incurred a “separation from service” within the meaning           of Code
Section 409A.  

[SIGNATURES ON
FOLLOWING PAGE] 

-8- 

        IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date and year first
above written. 

		
		BANDAG, INCORPORATED
	

 	By:  /s/ Martin G. Carver
		        Name:  Martin G. Carver
		        Title:  Chairman of the Board,
                   Chief Executive Officer and President
	

 	/s/ Warren W. Heidbreder
		Warren W. Heidbreder, in his individual capacity

-9-

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