Document:

Exhibit 4(b)

                        SUB-INVESTMENT ADVISORY AGREEMENT

      AGREEMENT dated October 2, 2006, between BlackRock Advisors, LLC, a
Delaware limited liability corporation (the "Advisor"), and BlackRock Investment
Management, LLC, a Delaware corporation (the "Sub-Advisor").

      WHEREAS, the Advisor has agreed to furnish investment advisory services to
the BlackRock Pennsylvania Municipal Bond Fund (the "Fund"), a series of
BlackRock Multi-State Municipal Series Trust, a Massachusetts business trust
(the "Trust"), an open-end management investment company registered under the
Investment Company Act of 1940, as amended (the "1940 Act");

      WHEREAS, the Advisor wishes to retain the Sub-Advisor to provide it with
certain sub-advisory services as described below in connection with Advisor's
advisory activities on behalf of the Fund;

      WHEREAS, the advisory agreement between the Advisor and the Trust, dated
October 2, 2006 (such agreement or the most recent successor agreement between
such parties relating to advisory services to the Trust is referred to herein as
the "Advisory Agreement") contemplates that the Advisor may sub-contract
investment advisory services with respect to the Fund to a sub-advisor pursuant
to a sub-advisory agreement agreeable to the Fund and approved in accordance
with the provisions of the 1940 Act; and

      WHEREAS, this Agreement has been approved in accordance with the
provisions of the 1940 Act, and the Sub-Advisor is willing to furnish such
services upon the terms and conditions herein set forth;

      NOW, THEREFORE, in consideration of the mutual premises and covenants
herein contained and other good and valuable consideration, the receipt of which
is hereby acknowledged, it is agreed by and between the parties hereto as
follows:

      1. Appointment. The Advisor hereby appoints the Sub-Advisor to act as
sub-advisor with respect to the Fund and the Sub-Advisor accepts such
appointment and agrees to render the services herein set forth for the
compensation herein provided.

      2. Services of the Sub-Advisor. Subject to the succeeding provisions of
this section, the oversight and supervision of the Advisor and the direction and
control of the Trustees, the Sub-Advisor will perform certain of the day-to-day
operations of the Fund, which may include one or more of the following services,
at the request of the Advisor: (a) acting as investment advisor for and managing
the investment and reinvestment of those assets of the Fund as the Advisor may
from time to time request and in connection therewith have complete discretion
in purchasing and selling such securities and other

<PAGE>

assets for the Fund and in voting, exercising consents and exercising all other
rights appertaining to such securities and other assets on behalf of the Fund;
(b) arranging, subject to the provisions of paragraph 3 hereof, for the purchase
and sale of securities and other assets of the Fund; (c) providing investment
research and credit analysis concerning the Fund's investments, (d) assisting
the Advisor in determining what portion of the Fund's assets will be invested in
cash, cash equivalents and money market instruments, (e) placing orders for all
purchases and sales of such investments made for the Fund, and (f) maintaining
the books and records as are required to support Fund investment operations. At
the request of the Advisor, the Sub-Advisor will also, subject to the oversight
and supervision of the Advisor and the direction and control of the Trust's
Board of Trustees, provide to the Advisor or the Fund any of the facilities and
equipment and perform any of the services described in Section 3 of the Advisory
Agreement. In addition, the Sub-Advisor will keep the Fund and the Advisor
informed of developments materially affecting the Fund and shall, on its own
initiative, furnish to the Fund from time to time whatever information the
Sub-Advisor believes appropriate for this purpose. The Sub-Advisor will
periodically communicate to the Advisor, at such times as the Advisor may
direct, information concerning the purchase and sale of securities for the Fund,
including: (a) the name of the issuer, (b) the amount of the purchase or sale,
(c) the name of the broker or dealer, if any, through which the purchase or sale
is effected, (d) the CUSIP number of the instrument, if any, and (e) such other
information as the Advisor may reasonably require for purposes of fulfilling its
obligations to the Fund under the Advisory Agreement. The Sub-Advisor will
provide the services rendered by it under this Agreement in accordance with the
Fund's investment objectives, policies and restrictions (as currently in effect
and as they may be amended or supplemented from time to time) as stated in the
Fund's Prospectus and Statement of Additional Information and the resolutions of
the Trust's Board of Trustees.

      3. Covenants. (a) In the performance of its duties under this Agreement,
the Sub-Advisor shall at all times conform to, and act in accordance with, any
requirements imposed by: (i) the provisions of the 1940 Act and the Investment
Advisers Act of 1940, as amended (the "Advisers Act") and all applicable Rules
and Regulations of the Securities and Exchange Commission (the "SEC"); (ii) any
other applicable provision of law; (iii) the provisions of the Declaration of
Trust and By-Laws of the Fund, as such documents are amended from time to time;
(iv) the investment objectives and policies of the Fund as set forth in the
Registration Statement on Form N-1A and/or the resolutions of the Board of
Trustees; and (v) any policies and determinations of the Board of the Trustees
of the Trust and

            (b) In addition, the Sub-Advisor will:

            (i) place orders either directly with the issuer or with any broker
      or dealer. Subject to the other provisions of this paragraph, in placing
      orders with brokers and dealers, the Sub-Advisor will attempt to obtain
      the best

                                       2
<PAGE>

      price and the most favorable execution of its orders. In placing orders,
      the Sub-Advisor will consider the experience and skill of the firm's
      securities traders as well as the firm's financial responsibility and
      administrative efficiency. Consistent with this obligation, the
      Sub-Advisor may select brokers on the basis of the research, statistical
      and pricing services they provide to the Fund and other clients of the
      Advisor or the Sub-Advisor. Information and research received from such
      brokers will be in addition to, and not in lieu of, the services required
      to be performed by the Sub-Advisor hereunder. A commission paid to such
      brokers may be higher than that which another qualified broker would have
      charged for effecting the same transaction, provided that the Sub-Advisor
      determines in good faith that such commission is reasonable in terms
      either of the transaction or the overall responsibility of the Advisor and
      the Sub-Advisor to the Fund and their other clients and that the total
      commissions paid by the Fund will be reasonable in relation to the
      benefits to the Fund over the long-term. Subject to the foregoing and the
      provisions of the 1940 Act, the Securities Exchange Act of 1934, as
      amended, and other applicable provisions of law, the Sub-Advisor may
      select brokers and dealers with which it or the Fund is affiliated;

            (ii) maintain books and records with respect to the Fund's
      securities transactions and will render to the Advisor and the Fund's
      Board of Trustees such periodic and special reports as they may request;

            (iii) maintain a policy and practice of conducting its investment
      advisory services hereunder independently of the commercial banking
      operations of its affiliates. When the Sub-Advisor makes investment
      recommendations for the Fund, its investment advisory personnel will not
      inquire or take into consideration whether the issuer of securities
      proposed for purchase or sale for the Fund's account are customers of the
      commercial department of its affiliates; and

            (iv) treat confidentially and as proprietary information of the Fund
      all records and other information relative to the Fund, and the Fund's
      prior, current or potential shareholders, and will not use such records
      and information for any purpose other than performance of its
      responsibilities and duties hereunder, except after prior notification to
      and approval in writing by the Fund, which approval shall not be
      unreasonably withheld and may not be withheld where the Sub-Advisor may be
      exposed to civil or criminal contempt proceedings for failure to comply,
      when requested to divulge such information by duly constituted
      authorities, or when so requested by the Fund.

      4. Services Not Exclusive. Nothing in this Agreement shall prevent the
Sub-Advisor or any officer, employee or other affiliate thereof from acting as
investment advisor for any other person, firm or corporation, or from engaging
in any other lawful activity, and shall not in any way limit or restrict the
Sub-Advisor or any of its officers,

                                       3
<PAGE>

employees or agents from buying, selling or trading any securities for its or
their own accounts or for the accounts of others for whom it or they may be
acting; provided, however, that the Sub-Advisor will undertake no activities
which, in its judgment, will adversely affect the performance of its obligations
under this Agreement.

      5. Books and Records. In compliance with the requirements of Rule 31a-3
under the 1940 Act, the Sub-Advisor hereby agrees that all records which it
maintains for the Fund are the property of the Fund and further agrees to
surrender promptly to the Fund any such records upon the Fund's request. The
Sub-Advisor further agrees to preserve for the periods prescribed by Rule 31a-2
under the 1940 Act the records required to be maintained by Rule 31a-1 under the
1940 Act (to the extent such books and records are not maintained by the
Advisor).

      6. Expenses. During the term of this Agreement, the Sub-Advisor will bear
all costs and expenses of its employees and any overhead incurred by the
Sub-Advisor in connection with its duties hereunder; provided that the Board of
Trustees of the Trust may approve reimbursement to the Sub-Advisor of the
pro-rata portion of the salaries, bonuses, health insurance, retirement benefits
and all similar employment costs for the time spent on Fund operations
(including, without limitation, compliance matters) (other than the provision of
investment advice and administrative services required to be provided hereunder)
of all personnel employed by the Sub-Advisor who devote substantial time to Fund
operations or the operations of other investment companies advised or
sub-advised by the Sub-Advisor.

      7. Compensation.

            (a) The Advisor agrees to pay to the Sub-Advisor and the Sub-Advisor
agrees to accept as full compensation for all services rendered by the
Sub-Advisor as such, a monthly fee in arrears at an annual rate equal to the
amount set forth in Schedule A hereto. For any period less than a month during
which this Agreement is in effect, the fee shall be prorated according to the
proportion which such period bears to a full month of 28, 29, 30 or 31 days, as
the case may be.

            (b) For purposes of this Agreement, the net assets of the Fund shall
be calculated pursuant to the procedures adopted by resolutions of the Trustees
of the Trust for calculating the value of the Fund's assets or delegating such
calculations to third parties.

      8. Indemnity.

            (a) The Trust may, in the discretion of the Board of Trustees of the
Trust, indemnify the Sub-Advisor, and each of the Sub-Advisor's directors,
officers, employees, agents, associates and controlling persons and the
directors, partners,

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<PAGE>

members, officers, employees and agents thereof (including any individual who
serves at the Sub-Advisor's request as director, officer, partner, member,
trustee or the like of another entity) (each such person being an "Indemnitee")
against any liabilities and expenses, including amounts paid in satisfaction of
judgments, in compromise or as fines and penalties, and counsel fees (all as
provided in accordance with applicable state law) reasonably incurred by such
Indemnitee in connection with the defense or disposition of any action, suit or
other proceeding, whether civil or criminal, before any court or administrative
or investigative body in which such Indemnitee may be or may have been involved
as a party or otherwise or with which such Indemnitee may be or may have been
threatened, while acting in any capacity set forth herein or thereafter by
reason of such Indemnitee having acted in any such capacity, except with respect
to any matter as to which such Indemnitee shall have been adjudicated not to
have acted in good faith in the reasonable belief that such Indemnitee's action
was in the best interest of the Trust and furthermore, in the case of any
criminal proceeding, so long as such Indemnitee had no reasonable cause to
believe that the conduct was unlawful; provided, however, that (1) no Indemnitee
shall be indemnified hereunder against any liability to the Trust or its
shareholders or any expense of such Indemnitee arising by reason of (i) willful
misfeasance, (ii) bad faith, (iii) gross negligence or (iv) reckless disregard
of the duties involved in the conduct of such Indemnitee's position (the conduct
referred to in such clauses (i) through (iv) being sometimes referred to herein
as "disabling conduct"), (2) as to any matter disposed of by settlement or a
compromise payment by such Indemnitee, pursuant to a consent decree or
otherwise, no indemnification either for said payment or for any other expenses
shall be provided unless there has been a determination that such settlement or
compromise is in the best interests of the Fund and that such Indemnitee appears
to have acted in good faith in the reasonable belief that such Indemnitee's
action was in the best interest of the Fund and did not involve disabling
conduct by such Indemnitee and (3) with respect to any action, suit or other
proceeding voluntarily prosecuted by any Indemnitee as plaintiff,
indemnification shall be mandatory only if the prosecution of such action, suit
or other proceeding by such Indemnitee was authorized by a majority of the full
Board of Trustees of the Trust.

            (b) The Trust shall make advance payments in connection with the
expenses of defending any action with respect to which indemnification might be
sought hereunder if the Trust receives a written affirmation of the Indemnitee's
good faith belief that the standard of conduct necessary for indemnification has
been met and a written undertaking to reimburse the Trust unless it is
subsequently determined that such Indemnitee is entitled to such indemnification
and if the Trustees of the Trust determine that the facts then known to them
would not preclude indemnification. In addition, at least one of the following
conditions must be met: (A) the Indemnitee shall provide a security for such
Indemnitee's undertaking, (B) the Trust shall be insured against losses arising
by reason of any unlawful advance, or (C) a majority of a quorum consisting of
Trustees of the Trust who are neither "interested persons" of the Trust (as
defined in Section 2(a)(19) of the 1940 Act) nor parties to the proceeding
("Disinterested Non-Party

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<PAGE>

Trustees") or an independent legal counsel in a written opinion, shall
determine, based on a review of readily available facts (as opposed to a full
trial-type inquiry), that there is reason to believe that the Indemnitee
ultimately will be found entitled to indemnification.

            (c) All determinations with respect to the standards for
indemnification hereunder shall be made (1) by a final decision on the merits by
a court or other body before whom the proceeding was brought that such
Indemnitee is not liable by reason of disabling conduct, or (2) in the absence
of such a decision, by (i) a majority vote of a quorum of the Disinterested
Non-Party Trustees of the Trust, or (ii) if such a quorum is not obtainable or
even, if obtainable, if a majority vote of such quorum so directs, independent
legal counsel in a written opinion. All determinations that advance payments in
connection with the expense of defending any proceeding shall be authorized
shall be made in accordance with the immediately preceding clause (2) above.

      The rights accruing to any Indemnitee under these provisions shall not
exclude any other right to which such Indemnitee may be lawfully entitled.

      9. Limitation on Liability. The Sub-Advisor will not be liable for any
error of judgment or mistake of law or for any loss suffered by the Advisor or
by the Fund in connection with the performance of this Agreement, except a loss
resulting from a breach of fiduciary duty with respect to the receipt of
compensation for services or a loss resulting from willful misfeasance, bad
faith or gross negligence on its part in the performance of its duties or from
reckless disregard by it of its duties under this Agreement. As used in this
Section 9, the term "Sub-Advisor" shall include any affiliates of the
Sub-Advisor performing services for the Fund contemplated hereby and partners,
directors, officers and employees of the Sub-Advisor and such affiliates.

      10. Duration and Termination. This Agreement shall become effective as of
the date hereof and, unless sooner terminated with respect to the Fund as
provided herein, shall continue in effect for a period of two years. Thereafter,
if not terminated, this Agreement shall continue in effect with respect to the
Fund for successive periods of 12 months, provided such continuance is
specifically approved at least annually by both (a) the vote of a majority of
the Trust's Board of Trustees or a vote of a majority of the outstanding voting
securities of the Fund at the time outstanding and entitled to vote and (b) by
the vote of a majority of the Trustees, who are not parties to this Agreement or
interested persons (as such term is defined in the 1940 Act) of any such party,
cast in person at a meeting called for the purpose of voting on such approval.
Notwithstanding the foregoing, this Agreement may be terminated by the Fund or
the Advisor at any time, without the payment of any penalty, upon giving the
Sub-Advisor 60 days' notice (which notice may be waived by the Sub-Advisor),
provided that such termination by the Fund or the Advisor shall be directed or
approved by the vote of a majority of the Trustees of the Trust in office at the
time or by the vote of the holders of a majority of the voting securities of the
Fund at the time outstanding and entitled to vote, or by the Sub-Advisor

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<PAGE>

on 60 days' written notice (which notice may be waived by the Trust and the
Advisor), and will terminate automatically upon any termination of the Advisory
Agreement between the Trust and the Advisor. This Agreement will also
immediately terminate in the event of its assignment. (As used in this
Agreement, the terms "majority of the outstanding voting securities,"
"interested person" and "assignment" shall have the same meanings of such terms
in the 1940 Act.)

      11. Notices. Any notice under this Agreement shall be in writing to the
other party at such address as the other party may designate from time to time
for the receipt of such notice and shall be deemed to be received on the earlier
of the date actually received or on the fourth day after the postmark if such
notice is mailed first class postage prepaid.

      12. Amendment of this Agreement. This Agreement may be amended by the
parties only if such amendment is specifically approved by the vote of the Board
of Trustees of the Trust, including a majority of those Trustees who are not
parties to this Agreement or interested persons of any such party cast in person
at a meeting called for the purpose of voting on such approval and, where
required by the 1940 Act, by a vote of a majority of the outstanding voting
securities of the Fund.

      13. Miscellaneous. The captions in this Agreement are included for
convenience of reference only and in no way define or delimit any of the
provisions hereof or otherwise affect their construction or effect. If any
provision of this Agreement shall be held or made invalid by a court decision,
statute, rule or otherwise, the remainder of this Agreement shall not be
affected thereby. This Agreement shall be binding on, and shall inure to the
benefit of the parties hereto and their respective successors.

      14. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York for contracts to be performed
entirely therein without reference to choice of law principles thereof and in
accordance with the applicable provisions of the 1940 Act. To the extent that
the applicable laws of the State of New York, or any of the provisions, conflict
with the applicable provisions of the 1940 Act, the latter shall control.

      15. Counterparts. This Agreement may be executed in counterparts by the
parties hereto, each of which shall constitute an original counterpart, and all
of which, together, shall constitute one Agreement.

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<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed by their duly authorized officers designated below as of the day and
year first above written.

                                    BLACKROCK ADVISORS, LLC

                                    By: ________________________________________
                                        Name:
                                        Title:

                                    BLACKROCK INVESTMENT MANAGEMENT, LLC

                                    By: ________________________________________
                                        Name:
                                        Title:

AGREED AND ACCEPTED
as of the date first set forth above

BLACKROCK MULTI-STATE MUNICIPAL SERIES TRUST

By: ________________________________________
Name:
Title:

                                       8
<PAGE>

                                   Schedule A

                           Sub-Investment Advisory Fee

59% of the monthly advisory fee received by the Advisor from the Fund.Exhibit 4.1 

RIGHTS AGREEMENT 

Dated as of August 21,
2006 

by and between 

BANDAG, INCORPORATED 

and 

COMPUTERSHARE TRUST
COMPANY, N.A. 

(as Rights Agent) 

TABLE OF CONTENTS 

			Page
	
Section 1.	Definitions	  1
	
Section 2.	Appointment of Rights Agent	  5
	
Section 3.	Issue of Right Certificates	  5
	
Section 4.	Form of Right Certificates	  7
	
Section 5.	Countersignature and Registration	  7
	
Section 6.	Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed,
	 	Lost or Stolen Right Certificates	  8
	
Section 7.	Exercise of Rights; Purchase Price; Expiration Date of Rights	  9
	
Section 8.	Cancellation and Destruction of Right Certificates	11
	
Section 9.	Reservation and Availability of Common Shares and Class A Common Shares	11
	
Section 10.	Common Shares and Class A Common Shares Record Date	12
	
Section 11.	Adjustment of Purchase Price, Number of Shares or Number of Rights	12
	
Section 12.	Certificate of Adjusted Purchase Price or Number of Shares	19
	
Section 13.	Consolidation, Merger, Share Exchange or Sale or Transfer of Assets or Earning Power	20
	
Section 14.	Fractional Rights and Fractional Shares	22
	
Section 15.	Rights of Action	23
	
Section 16.	Agreement of Right Holders	24
	
Section 17.	Right Certificate Holder Not Deemed a Shareholder	25
	
Section 18.	Concerning the Rights Agent	25
	
Section 19.	Merger or Consolidation or Change of Name of Rights Agent	25
	
Section 20.	Duties of Rights Agent	26
	
Section 21.	Change of Rights Agent	28

i 

	 	 	 
	
Section 22.	Issuance of New Right Certificates	29
	
Section 23.	Redemption	29
	
Section 24.	Exchange	30
	
Section 25.	Notice of Certain Events	31
	
Section 26.	Notices	32
	
Section 27.	Supplements and Amendments	33
	
Section 28.	Successors	34
	
Section 29.	Benefits of this Agreement	34
	
Section 30.	Severability	34
	
Section 31.	Governing Law	34
	
Section 32.	Counterparts	34
	
Section 33.	Descriptive Headings	35
	
Section 34.	Determinations and Actions by the Board of Directors	35
	
Exhibit A-1 -	Form of Common Share Purchase Right Certificate
	
Exhibit A-2 -	Form of Class A Common Share Purchase Right Certificate
	
Exhibit B -	Summary of Rights to Purchase Shares

ii 

RIGHTS AGREEMENT 

        This
Rights Agreement (this “Agreement”), is dated as of August 21, 2006, by
and between Bandag, Incorporated, an Iowa corporation (the “Company”),
and Computershare Trust Company, N.A. (the “Rights Agent”). 

RECITALS 

        WHEREAS,
the Board of Directors of the Company has authorized and declared a dividend distribution
of (1) one common share purchase right (a “Common Share Purchase Right”)
for each share of common stock, par value $1.00, of the Company (a “Common
Share”) and each share of class B common stock, par value $1.00, of the Company
(a “Class B Common Share”) and (2) one class A common share purchase
right (a “Class A Common Share Purchase Right”) (the Class A Common Share
Purchase Rights and Common Share Purchase Rights being collectively referred to as
“Rights”) for each class A common share, par value $1.00, of the Company
(a “Class A Common Share”) outstanding on September 12, 2006 (the
“Record Date”), payable on September 12, 2006 (the “Payment
Date”); and 

        WHEREAS,
the Board of Directors of the Company has further authorized and directed the issuance of
(1) one Common Share Purchase Right with respect to each Common Share and Class B Common
Share and (2) one Class A Common Share Purchase Right with respect to each Class A Common
Share that shall become outstanding between the Record Date and the earliest of the
Distribution Date, the Redemption Date and the Final Expiration Date (as such terms are
hereinafter defined), with each Common Share Purchase Right representing the right to
purchase one-half of one Common Share and each Class A Common Share Purchase Right
representing the right to purchase one-half of one Class A Common Share, subject to
adjustment as hereinafter provided, and upon the terms and subject to the conditions
hereinafter set forth. 

AGREEMENT 

        NOW,
THEREFORE, in consideration of the premises and the mutual agreements herein set
forth, the parties hereby agree as follows: 

        Section
1.     Definitions. The defined terms herein, whether defined in this Section 1 or
elsewhere in this Agreement, shall apply equally to both singular and plural forms of the
words defined. For purposes of this Agreement, the following terms have the meanings
indicated:  

	 	        (a)    
               “Acquiring Person” shall mean any Person who or which,
together                with all Affiliates and Associates of such Person, shall be the
Beneficial Owner                of (i) 20% or more of the Common Shares then outstanding,
(ii) 20% or more of                the Class A Common Shares then outstanding or (iii)
20% or more of the total                number of Common Shares and Class A Common Shares
then outstanding, but shall                not include any member of the Carver Family,
the Company, any Subsidiary of the                Company or any employee benefit plan of
the Company or any Subsidiary of the                Company, or any entity holding Common
Shares or Class A Common Shares for or                pursuant to the terms of any such
plan, or any trustee, administrator or                fiduciary of such a plan.
Notwithstanding the foregoing, no Person who or which,                at the close of
business on the date hereof, shall be the Beneficial Owner as of                that date
of 20% or more of the Common Shares outstanding, 20% or more of the                Class
A Common Shares outstanding or 20% or more of the total number of Common
               Shares and Class A Common Shares outstanding shall be deemed an “Acquiring
               Person”; provided, however, that if a Person is, at the
close                of business on the day hereof, the Beneficial Owner as of that date
of 20% or                more of the Common Shares outstanding, 20% or more of the Class
A Common Shares                outstanding or 20% or more of the total number of Common
Shares and Class A                Common Shares outstanding and shall thereafter become
the Beneficial Owner of                additional Common Shares or Class A Common Shares
of the Company at any time                that the Person is or thereby becomes the
Beneficial Owner of 20% or more of the                Common Shares outstanding, 20% or
more of the Class A Common Shares outstanding                or 20% or more of the total
number of shares of Common Shares and Class A Common                Shares outstanding
(other than Common Shares or Class A Common Shares acquired                solely as a
result of corporate action of the Company not caused, directly or
               indirectly, by such Person), then such Person shall be deemed to be an
               “Acquiring Person”. Without limiting the foregoing, no Person
shall                become an “Acquiring Person” as the result of an
acquisition of Common                Shares or Class A Common Shares by the Company
which, by reducing the number of                shares outstanding, increases the
proportionate number of shares beneficially                owned by such Person to (A)
20% or more of the Common Shares then outstanding,                (B) 20% or more of the
Class A Common Shares then outstanding or (C) 20% or more                of the total
number of Common Shares and Class A Common Shares then outstanding; provided, however,
that if a Person becomes the Beneficial Owner                of 20% or more of the Common
Shares then outstanding, 20% or more of the Class A                Common Shares then
outstanding or 20% or more of the total number of Common                Shares and Class
A Common Shares then outstanding by reason of share purchases                by the
Company and shall, after such share purchases by the Company, become the
               Beneficial Owner of any additional Common Shares or Class A Common Shares
(other                than Common Shares or Class A Common Shares acquired solely as a
result of                corporate action of the Company not caused, directly or
indirectly, by such                Person), then such Person shall be deemed to be an
“Acquiring Person.”               Notwithstanding any of the foregoing, if the
Board of Directors of the Company                determines in good faith that a Person
who would otherwise be an “Acquiring                Person,” as defined
pursuant to the foregoing provisions of this                paragraph (a), has
become such inadvertently, and such Person divests as                promptly as
practicable a sufficient number of Common Shares or Class A Common                Shares
so that such Person would no longer be an “Acquiring Person,”               as
defined pursuant to the foregoing provisions of this paragraph (a), then
               such Person shall not be deemed to be an “Acquiring Person” for
any                purposes of this Agreement.  

	 	        (b)    
               “Affiliate” and “Associate” shall have
the                respective meanings ascribed to such terms in Rule 12b-2 of the
General Rules                and Regulations promulgated under the Securities Exchange
Act of 1934, as                amended (the “Exchange Act”), as in
effect on the date of this                Agreement.  

2 

	 	        (c)    
               A Person shall be deemed the “Beneficial Owner” of and
shall be                deemed to “beneficially own” any securities:  

	 	        (i)    
               which such Person or any of such Person’s Affiliates or Associates
               beneficially owns, directly or indirectly;  

	 	        (ii)    
               which such Person or any of such Person’s Affiliates or Associates
has (A)                the right to acquire (whether such right is exercisable
immediately or only                after the passage of time) pursuant to any agreement,
arrangement or                understanding (other than customary agreements with and
between underwriters and                selling group members with respect to a bona fide
public offering of                securities), or upon the exercise of conversion rights,
exchange rights, rights                (other than these Rights), warrants or options, or
otherwise; provided, however, that a Person shall not be deemed the
Beneficial Owner of, or to                beneficially own, securities tendered pursuant
to a tender or exchange offer                made by or on behalf of such Person or any
of such Person’s Affiliates or                Associates until such tendered
securities are accepted for purchase or exchange;                or (B) the right to vote
pursuant to any agreement, arrangement or                understanding; provided,
however, that a Person shall not be                deemed the Beneficial Owner of,
or to beneficially own, any security if the                agreement, arrangement or
understanding to vote such security (1) arises                solely from a
revocable proxy or consent given to such Person in response to a                public
proxy or consent solicitation made pursuant to, and in accordance with,
               the applicable rules and regulations of the Exchange Act and (2) is
not                also then reportable on Schedule 13D under the Exchange Act (or any
comparable                or successor report); or  

	 	        (iii)    
               which are beneficially owned, directly or indirectly, by any other Person
with                which such Person or any of such Person’s Affiliates or
Associates has any                agreement, arrangement or understanding (other than
customary agreements with                and between underwriters and selling group
members with respect to a bona fide                public offering of securities) for the
purpose of, or with respect to,                acquiring, holding, voting (except to the
extent contemplated by the proviso to Section l(c)(ii)(B)) or disposing of
any securities of the Company.  

	 	        Notwithstanding
anything in this definition of Beneficial Ownership to the contrary, the phrase “then
outstanding,” when used with reference to a Person’s Beneficial Ownership of
securities of the Company, shall mean the number of such securities then issued and
outstanding together with the number of such securities not then actually issued and
outstanding which such Person would be deemed to beneficially own hereunder. 

	 	        (d)              “Business
Day” shall mean any day other than a Saturday, a           Sunday, or a day on
which banking institutions in the State of Iowa or the           Commonwealth of
Massachusetts are authorized or obligated by law or executive           order to close.  

3 

	 	        (e)              “Carver
Family” shall mean (i) Lucille A. Carver, widow of Roy           J. Carver, (ii)
the lineal descendants of Roy J. Carver and their spouses, (iii)           executors and
administrators of the estate of Lucille A. Carver and the estates           of lineal
descendants of Roy J. Carver and their spouses, (iv) trusts in which           Lucille A.
Carver, the lineal descendants of Roy J. Carver and their spouses are           entitled,
in the aggregate, to at least a majority of the beneficial interest           therein,
(v) any beneficiary of any such trust to whom shares subject to such           trust are
subsequently distributed and lineal descendants of any such           beneficiary, (vi)
any corporation in which a majority of the outstanding voting           shares are
beneficially owned by Lucille A. Carver, the lineal descendants of           Roy J.
Carver and their spouses, and (vii) any partnership in which a majority           of the
partnership interests are beneficially owned by Lucille A. Carver, the           lineal
descendants of Roy J. Carver and their spouses. For purposes of the           foregoing
definitions in this subparagraph (iii), the terms “lineal           descendant” and
“lineal descendants” includes an adopted child           and adopted children,
respectively.  

	 	        (f)              “Class
A Common Share Purchase Price” has the meaning set forth           in Section
7(c) hereof.  

	 	        (g)              “Close
of business” on any given date shall mean 5:00 P.M.,           Eastern
time, on such date; provided, however, that if such           date is not a
Business Day it shall mean 5:00 P.M., Eastern time, on the next           succeeding
Business Day.  

	 	        (h)              “Common
Shares” when used with reference to any Person other           than the Company
shall mean the capital stock (or equivalent equity interest)           with the greatest
voting power of such other Person or, if such other Person is           a Subsidiary of
another Person, the Person or Persons which ultimately control           such
first-mentioned Person.  

	 	        (i)              “Common
Share Purchase Price” has the meaning set forth in Section 7(b) hereof.  

	 	        (j)              “Distribution
Date” shall have the meaning set forth in Section 3(a) hereof.  

	 	        (k)              “Final
Expiration Date” shall have the meaning set forth in Section 7(a) hereof.  

	 	        (l)              “Person” shall
mean any individual, firm, corporation, limited           liability company, trust or
other entity, and shall include any successor (by           merger or otherwise) of such
entity.  

	 	        (m)              “Purchase
Price” shall mean the Common Share Purchase Price and           the Class A
Common Share Purchase Price together and, when used without further
          specification as to which, shall refer to both the Common Share Purchase Price
          and the Class A Common Share Purchase Price, as appropriate, subject to
          adjustment from time to time as provided in this Agreement.  

	 	        (n)              “Redemption
Date” shall have the meaning set forth in Section 7(a) hereof.  

	 	        (o)              “Right” has
the meaning set forth in the Recitals to this           Agreement.  

4 

	 	        (p)              “Shares
Acquisition Date” shall mean the first date of public           announcement
(which for purposes of this definition shall include, without           limitation, a
report filed or amended pursuant to Section 13(d) under the           Exchange Act) by
the Company or an Acquiring Person that an Acquiring Person has           become such.  

	 	        (q)              “Subsidiary” of
any Person shall mean any corporation or other           entity of which a majority of
the voting power of the voting equity securities           or equity interest is owned,
directly or indirectly, by such Person.  

        Section
2.     Appointment of Rights Agent. The Company hereby appoints the Rights Agent to
act as agent for the Company and the holders of the Rights (who, in accordance with Section
3 hereof, shall prior to the Distribution Date also be the holders of Common Shares,
Class A Common Shares and/or Class B Common Shares) in accordance with the terms and
conditions hereof, and the Rights Agent hereby accepts such appointment. The Company may
from time to time appoint such co-Rights Agents as it may deem necessary or desirable,
upon ten (10) days’prior written notice to the Rights Agent. No such appointment
shall change or increase the Rights Agent’s duties, liabilities or obligations under
this Agreement. The Rights Agent shall have no duty to supervise, and in no event shall
the Rights Agent be liable for, the acts or omissions of any such co-Rights Agent
appointed by the Company.  

        Section
3.     Issue of Right Certificates.  

	 	        (a)              Until
the earlier of (i) the tenth day after the Shares Acquisition Date or (ii)           the
tenth Business Day (or such later date as may be determined by action of the
          Company’s Board of Directors prior to such time as any Person becomes an
          Acquiring Person) after the date of the commencement of, or of the first public
          announcement of the intention of any Person (other than any member of the
Carver           Family, the Company, any Subsidiary of the Company, any employee benefit
plan of           the Company or of any Subsidiary of the Company, or any entity holding
Common           Shares or Class A Common Shares for or pursuant to the terms of any such
plan,           or any trustee, administrator or fiduciary of such a plan) to commence, a
tender           or exchange offer the consummation of which would result in any Person
becoming           the Beneficial Owner of Common Shares aggregating 20% or more of the
Common           Shares then outstanding, 20% or more of the Class A Common Shares then
          outstanding or 20% or more of the total number of Common Shares and Class A
          Common Shares then outstanding (including in either case any such date which is
          after the date of this Agreement and prior to the Payment Date (the earlier of
          such dates being herein referred to as the “Distribution           Date”);
provided, however, that if the tenth day or           Business Day, as the
case may be, after the pertinent date occurs before the           Record Date, “Distribution
Date” shall mean the Record Date), (A) the           Rights will be evidenced
(subject to the provisions of Section 3(b)          hereof) by the certificates
for Common Shares, Class A Common Shares or Class B           Common Shares registered in
the names of the holders thereof (which certificates           shall also be deemed to be
Right Certificates) and not by separate Right           Certificates, and (B) the
right to receive Right Certificates will be           transferable only in connection
with the transfer of Common Shares, Class A           Common Shares or Class B Common
Shares. If the Rights Agent is not then the           transfer agent and registrar of the
Common Shares, Class A Common Shares and           Class B Common Shares, then upon the
occurrence of a Distribution Date, the           Company shall promptly notify the Rights
Agent and request a stockholder list           from the Company’s transfer agent. As
soon as practicable after the           Distribution Date, the Company will prepare and
execute, the Rights Agent will           countersign, and the Company will send or cause
to be sent (and the Rights Agent           will, if requested, send) by first-class,
insured, postage-prepaid mail, to each           record holder of Common Shares, Class A
Common Shares and Class B Common Shares           as of the close of business on the
Distribution Date, at the address of such           holder shown on the records of the
Company, a Right Certificate, in           substantially the form of Exhibit A-1 or
Exhibit A-2, as           applicable (each a “Right Certificate”),
evidencing (1)           one Common Share Purchase Right for each Common Share or Class B
Common Share so           held or (2) one Class A Common Share Purchase Right for each
Class A Common           Share so held. As of the Distribution Date, the Rights will be
evidenced solely           by such Right Certificates.  

5 

	 	        (b)              The
Company has prepared a Summary of Rights to Purchase Shares, attached as Exhibit B hereto
(the “Summary of Rights”), a copy of           which is available free
of charge from the Company. With respect to certificates           for Common Shares,
Class A Common Shares or Class B Common Shares outstanding as           of the Record
Date, until the Distribution Date, the Rights will be evidenced by           such
certificates registered in the names of the holders thereof. Until the
          Distribution Date (or the earlier of the Redemption Date or Final Expiration
          Date), the surrender for transfer of any certificate for Common Shares, Class A
          Common Shares or Class B Common Shares outstanding on the Record Date, with or
          without a copy of the Summary of Rights attached thereto, shall also constitute
          the transfer of the Rights associated with the Common Shares, Class A Common
          Shares or Class B Common Shares represented thereby.  

	 	        (c)              Certificates
for Common Shares, Class A Common Shares or Class B Common Shares           which become
outstanding (including, without limitation, certificates for           reacquired Common
Shares, Class A Common Shares or Class B Common Shares           referred to in the
sentence that follows immediately after this sentence,           certificates for Common
Shares, Class A Common Shares or Class B Common Shares           held by the Company
prior to the Record Date and certificates issued on the           transfer of Common
Shares, Class A Common Shares or Class B Common Shares) after           the Record Date
but prior to the earliest of the Distribution Date, the           Redemption Date or the
Final Expiration Date shall have impressed on, printed           on, written on or
otherwise affixed to them a legend in substantially in the           form below. In the
event that the Company purchases or acquires any Common           Shares, Class A Common
Shares or Class B Common Shares after the Record Date but           prior to the
Distribution Date, any Rights associated with such Common Shares,           Class A
Common Shares or Class B Common Shares shall be deemed cancelled and           retired so
that the Company shall not be entitled to exercise any Rights           associated with
the Common Shares, Class A Common Shares or Class B Common           Shares which are no
longer outstanding. With respect to certificates containing           the legend below,
until the Distribution Date, the Rights associated with the           Common Shares,
Class A Common Shares or Class B Common Shares represented by           such certificates
shall be evidenced by such certificates alone, and the           surrender for transfer
of any such certificate shall also constitute the           transfer of the Rights
associated with the shares represented thereby. The form           of legend that shall
be impressed on, printed on, written on or otherwise           affixed to the
certificates is as follows:  

6 

	 	
This
certificate also evidences and entitles the holder hereof to certain Rights as set forth
in a Rights Agreement between Bandag, Incorporated and Computershare Trust Company, N.A.,
dated as of August 21, 2006, and as such agreement may be amended (the “Rights
Agreement”), the terms of which are hereby incorporated herein by reference and a
copy of which is on file at the principal executive offices of Bandag, Incorporated. Under
certain circumstances, as set forth in the Rights Agreement, such Rights will be evidenced
by separate certificates and will no longer be evidenced by this certificate. Bandag,
Incorporated will mail to the holder of this certificate a copy of the Rights Agreement
without charge after receipt of a written request therefor. Under certain circumstances
set forth in the Rights Agreement, Rights issued to, or held by, an Acquiring Person or
any Affiliate or Associate thereof (as such terms are defined in the Rights Agreement),
whether held by such Person or any subsequent holder shall become null and void. 

	 	
Upon
the conversion of the Class B Common Shares into Common Shares pursuant to the terms of
the Restated Articles of Incorporation of the Company following the Record Date, any
Rights associated with the Class B Common Shares which are converted shall be deemed
cancelled and retired. Each Common Share into which the Class B Common Shares are
converted shall carry a Common Share Purchase Right, and the share certificates associated
with such Common Shares, when issued, shall bear a legend substantially in the form found
in this Section 3(c). 

        Section
4.     Form of Right Certificates. The Right Certificates (and the forms of election
to purchase Common Shares or Class A Common Shares and of assignment to be printed on the
reverse thereof) shall be substantially the same as Exhibit A-1 or Exhibit A-2
hereto and may have such marks of identification or designation and such legends,
summaries or endorsements printed thereon as the Company may deem appropriate (which do
not affect the duties or responsibilities of the Rights Agent) and as are not
inconsistent with the provisions of this Agreement, or as may be required to comply with
any applicable law or with any rule or regulation made pursuant thereto or with any rule
or regulation of any stock exchange on which the Rights may from time to time be listed,
or to conform to usage. Subject to the provisions of Section 22 hereof, the
Right Certificates shall entitle the holders thereof to purchase such number of Common
Shares or Class A Common Shares as shall be set forth therein at the price per Common
Share or Class A Common Share set forth therein, but the amount and type of securities
purchasable upon exercise of each Right and the Purchase Price shall be subject to
adjustment as provided herein.  

        Section
5.     Countersignature and Registration.  

7 

	 	        (a)              The
Right Certificates shall be executed on behalf of the Company by its           Chairman
of the Board, President or any Vice President, either manually or by           facsimile
signature, shall have affixed thereto the Company’s seal or a           facsimile
thereof, and shall be attested by the Secretary or an Assistant           Secretary of
the Company, either manually or by facsimile signature. The Right           Certificates
shall be manually countersigned by the Rights Agent and shall not           be valid for
any purpose unless countersigned. In case any officer of the           Company who shall
have signed any of the Right Certificates shall cease to be           such officer of the
Company before countersignature by the Rights Agent and           issuance and delivery
by the Company, such Right Certificates, nevertheless, may           be countersigned by
the Rights Agent and issued and delivered by the Company           with the same force
and effect as though the individual who signed such Right           Certificates had not
ceased to be such officer of the Company; and any Right           Certificate may be
signed on behalf of the Company by any person who, at the           actual date of the
execution of such Right Certificate, shall be a proper           officer of the Company
to sign such Right Certificate, although at the date of           the execution of this
Rights Agreement any such individual was not such an           officer.  

	 	        (b)              Following
the Distribution Date, the Rights Agent will keep or cause to be kept,           at its
designated office, books for registration and transfer of the Right
          Certificates issued hereunder. Such books shall show the names and addresses of
          the respective holders of the Right Certificates, the number of Rights
evidenced           on its face by each of the Right Certificates and the date and
certificate           number of each of the Right Certificates.  

        Section
6.            Transfer,  Split Up,  Combination and Exchange of Right  Certificates;
 Mutilated,  Destroyed,  Lost or Stolen Right
                                    Certificates. 

	 	        (a)              Subject
to the provisions of Section 14 hereof, at any time after the           close of
business on the Distribution Date, and at or prior to the close of           business on
the earlier of the Redemption Date or the Final Expiration Date, any           Right
Certificate or Right Certificates (other than Right Certificates           representing
Rights that have become void pursuant to Section 11(a)(ii)           hereof or
that have been exchanged pursuant to Section 24 hereof) may be
          transferred, split up, combined or exchanged for another Right Certificate or
          Right Certificates, entitling the registered holder to purchase a like number
of           Common Shares or Class A Common Shares, as the case may be, as the Right
          Certificate or Right Certificates surrendered then entitled such holder to
          purchase. Any registered holder desiring to transfer, split up, combine or
          exchange any Right Certificate or Right Certificates shall make such request in
          writing delivered to the Rights Agent, and shall surrender the Right
Certificate           or Right Certificates to be transferred, split up, combined or
exchanged at the           principal office of the Rights Agent. Thereupon the Rights
Agent shall           countersign and deliver to the person entitled thereto a Right
Certificate or           Right Certificates, as the case may be, as so requested. The
Company may require           payment of a sum sufficient to cover any tax or
governmental charge that may be           imposed in connection with any transfer, split
up, combination or exchange of           Right Certificates. The Rights Agent shall have
no duty or obligation to take           any action under any Section of this Agreement
which requires the payment by a           Rights holder of applicable taxes and
governmental charges unless and until the           Rights Agent is satisfied that all
such taxes and/or charges have been paid.  

8 

	 	        (b)              Upon
receipt by the Company and the Rights Agent of evidence reasonably           satisfactory
to them of the loss, theft, destruction or mutilation of a Right           Certificate
and, in case of loss, theft or destruction, of indemnity or security           reasonably
satisfactory to them, and, at the Company’s request,           reimbursement to the
Company and the Rights Agent of all reasonable expenses           incidental thereto, and
upon surrender to the Rights Agent and cancellation of           the Right Certificate if
mutilated, the Company will make and deliver a new           Right Certificate of like
tenor to the Rights Agent for delivery to the           registered holder in lieu of the
Right Certificate so lost, stolen, destroyed or           mutilated.  

        Section
7.            Exercise of Rights; Purchase Price; Expiration Date of Rights. 

	 	        (a)              As
provided herein, each Common Share Purchase Right shall be exercisable to
          purchase one-half of one Common Share and each Class A Common Share Purchase
          Right shall be exercisable to purchase one-half of one Class A Common Share,
          subject to further adjustment. The registered holder of any Right Certificate
          may exercise the Rights evidenced thereby (except as otherwise provided herein)
          in whole or in part at any time after the Distribution Date upon surrender of
          the Right Certificate, with the form of election to purchase on the reverse
side           thereof duly executed, to the Rights Agent at the principal office of the
Rights           Agent, together with payment of the Purchase Price for each Common Share
or           Class A Common Share as to which the Rights are exercised, at or prior to
the           earliest of (i) the close of business on August 20, 2016, subject to
extension,           (the “Final Expiration Date”), (ii) the time at
which the           Rights are redeemed as provided in Section  23 hereof (the
          “Redemption Date”), and (iii) the time at which such Rights
are           exchanged as provided in Section 24 hereof; provided, however,
that if the number of Rights exercised would entitle the holder           thereof to
receive any fraction of a Common Share or Class A Common Share           greater than
one-half of a share, the holder thereof shall not be entitled to           exercise such
Rights unless such holder concurrently purchases from the Company           (and in such
event the Company shall sell to such holder), at a price in           proportion to the
Purchase Price, an additional fraction of a Common Share or           Class A Common
Share, as the case may be, which, when added to the number of           Common Shares or
Class A Common Shares, as appropriate, to be received upon such           exercise, will
equal an integral number of Common Shares or Class A Common           Shares.  

	 	        (b)              The
purchase price for each full Common Share pursuant to the exercise of a           Common
Share Purchase Right (the “Common Share Purchase           Price”)
shall initially be $100 (equivalent to $50 for each one-half of           one Common
Share), shall be subject to adjustment from time to time as provided           in Sections
11 and 13 hereof and shall be payable in lawful money           of the United
States of America or in Common Shares in accordance with paragraph           (d) below.  

	 	        (c)              The
purchase price for each full Class A Common Share pursuant to the exercise           of a
Class A Common Share Purchase Right (the “Class A Common Share           Purchase
Price”) shall initially be $100 (equivalent to $50 for each           one-half
of one Class A Common Share), shall be subject to adjustment from time           to time
as provided in Sections 11 and 13 hereof and shall be           payable in
lawful money of the United States of America or in Class A Common           Shares in
accordance with paragraph (d) below.  

9 

	 	        (d)              Upon
receipt of a Right Certificate representing exercisable Rights, with the           form
of election to purchase duly executed, accompanied by payment of the Common
          Share Purchase Price for the Common Shares or the Class A Common Share Purchase
          Price for the Class A Common Shares to be purchased as set forth below and an
          amount equal to any applicable transfer tax required to be paid by the holder
of           such Right Certificate in accordance with Section 9 hereof, the
Rights           Agent shall thereupon promptly (i) requisition from any transfer
agent of           the Common Shares or Class A Common Shares certificates for the number
of Common           Shares or Class A Common Shares, as appropriate, to be purchased and
the Company           hereby irrevocably authorizes its transfer agent to comply with all
such           requests, (ii) when appropriate, requisition from the Company the amount
of cash           to be paid in lieu of issuance of fractional Common Shares or Class A
Common           Shares in accordance with Section 14 hereof, (iii) after receipt
of such           Common Share or Class A Common Share certificates, cause the same to be
          delivered to or upon the order of the registered holder of such Right
          Certificate, registered in such name or names as may be designated by such
          holder, and (iv) when appropriate, after receipt, deliver such cash to or upon
          the order of the registered holder of such Right Certificate. The payment of
the           Purchase Price (as such amount may be reduced pursuant to Section 11(a)(iii) hereof)
shall be made by certified check,           cashier’s check, bank draft or money
order payable to the order of the           Company, except that, if so provided by the
Board of Directors of the Company,           the payment of the Purchase Price following
the occurrence of a           Section 11(a)(ii) Event (as hereinafter defined) and
until the first           occurrence of a Section 13 Event (as such term is hereinafter
defined) may be           made wholly or in part by delivery of a certificate or
certificates (with           appropriate stock powers executed in blank attached thereto)
evidencing a number           of Common Shares or Class A Common Shares equal to the then
Common Shares           Purchase Price or Class A Common Shares Purchase Price, as
appropriate, divided           by the closing price (as determined pursuant to Section
11(d) hereof) per           Common Share or Class A Common Share, respectively, on
the Trading Day (as such           term is hereinafter defined) immediately preceding the
date of such exercise. If           the Company is obligated to issue other securities of
the Company, pay cash           and/or distribute other property pursuant to Section 11(a) hereof,
          the Company will make all arrangements necessary so that such other securities,
          cash and/or other property are available for distribution by the Rights Agent,
          if and when appropriate.  

	 	        (e)              In
case the registered holder of any Right Certificate shall exercise less than
          all the Rights evidenced thereby, a new Right Certificate evidencing Rights
          equivalent to the Rights remaining unexercised shall be issued by the Rights
          Agent to the registered holder of such Right Certificate or to his duly
          authorized assigns, subject to the provisions of Sections 6  and 14 hereof.  

	 	        (f)              Notwithstanding
anything in this Agreement to the contrary, neither the Rights           Agent nor the
Company shall be obligated to take any action with respect to a           registered
holder of a Right Certificate upon the occurrence of any purported           transfer,
assignment or exercise as set forth in this Section 7          unless such
registered holder shall have (i) completed and signed the           certificate following
the form of assignment or election to purchase set forth           on the reverse of the
Right Certificate surrendered for such transfer,           assignment or exercise, and
(ii) provided such additional evidence of the           identity of the Beneficial Owner
(or former Beneficial Owner) or Affiliates or           Associates thereof as the Company
shall reasonably request.  

10 

        Section
8.     Cancellation and Destruction of Right Certificates. All Right Certificates
surrendered for the purpose of exercise, transfer, split-up, combination or exchange
shall, if surrendered to the Company or to any of its agents, be delivered to the Rights
Agent for cancellation or in cancelled form, or, if surrendered to the Rights Agent,
shall be cancelled by it, and no Right Certificates shall be issued in lieu thereof
except as expressly permitted by any of the provisions of this Rights Agreement. The
Company shall deliver to the Rights Agent for cancellation and retirement, and the Rights
Agent shall so cancel and retire, any other Right Certificate purchased or acquired by
the Company otherwise than upon the exercise thereof. The Rights Agent shall deliver all
cancelled Right Certificates to the Company or shall, at the written request of the
Company, destroy such cancelled Right Certificates, and in such case shall deliver a
certificate of destruction thereof to the Company.  

        Section
9.            Reservation and Availability of Common Shares and Class A Common Shares. 

	 	        (a)              The
Company covenants and agrees that it will cause to be reserved and kept
          available out of its authorized and unissued Common Shares and Class A Common
          Shares or any authorized and issued Common Shares or Class A Common Shares held
          in its treasury, the number of Common Shares and Class A Common Shares that
will           be sufficient to permit the exercise in full of all outstanding Rights in
          accordance with Section 7.  

	 	        (b)              So
long as the Common Shares and Class A Common Shares issuable upon the           exercise
of Rights may be listed on any national securities exchange, the           Company shall
use its best efforts to cause, from and after such time as the           Rights become
exercisable, all Common Shares and Class A Common Shares reserved           for such
issuance to be listed on such exchange upon official notice of issuance           upon
such exercise.  

	 	        (c)              The
Company covenants and agrees that it will take all such action as may be
          necessary to ensure that all Common Shares and Class A Common Shares delivered
          upon exercise of Rights shall, at the time of delivery of the certificates for
          such shares (subject to payment of the Purchase Price), be duly and validly
          authorized and issued and fully paid and nonassessable shares (except as
          otherwise provided by any corporation law applicable to the Company).  

	 	        (d)              The
Company further covenants and agrees that it will pay when due and payable           any
and all federal and state transfer taxes and charges which may be payable in
          respect of the issuance or delivery of the Right Certificates or of any Common
          Shares or Class A Common Shares upon the exercise of Rights. The Company shall
          not, however, be required to pay any transfer tax which may be payable in
          respect of any transfer or delivery of Right Certificates to a person other
          than, or the issuance or delivery of certificates for the Common Shares or
Class           A Common Shares in a name other than that of, the registered holder of
the Right           Certificate evidencing Rights surrendered for exercise or to issue or
to deliver           any certificates for Common Shares or Class A Common Shares upon the
exercise of           any Rights until any such tax shall have been paid (any such tax
being payable           by the holder of such Right Certificate at the time of surrender)
or until it           has been established to the Company’s reasonable satisfaction
that no such           tax is due. The Rights Agent shall have no duty or obligation to
take any action           under any Section of this Agreement which requires the payment
by a Rights           holder of applicable taxes and governmental charges unless and
until the Rights           Agent is satisfied that all such taxes and/or charges have
been paid.  

11 

        Section
10.     Common Shares and Class A Common Shares Record Date. Each Person in whose name
any certificate for Common Shares or Class A Common Shares is issued upon the exercise of
Rights shall for all purposes be deemed to have become the holder of record of the Common
Shares or Class A Common Shares, as appropriate, represented thereby on, and such
certificate shall be dated, as of the date upon which the Right Certificate evidencing
such Rights was duly surrendered and payment of the Purchase Price (and any applicable
transfer taxes and other governmental charges) was made; provided, however,
that if the date of such surrender and payment is a date upon which the Common Shares or
Class A Common Shares transfer books of the Company are closed, such Person shall be
deemed to have become the record holder of such shares on, and such certificate shall be
dated, the next succeeding Business Day on which the Common Shares or Class A Common
Shares transfer books of the Company are open.  

        Section
11.     Adjustment of Purchase Price, Number of Shares or Number of Rights. The
Purchase Price, the number of Common Shares or Class A Common Shares, as applicable,
covered by each Right and the number of Rights outstanding are subject to adjustment from
time to time as provided in this Section 11.  

	 	        (a)    
               (i)     In the event the Company shall at any time after the date of this
Agreement                (A) declare a dividend on the Common Shares payable in Common
Shares or declare                a dividend on the Class A Common Shares payable in Class
A Common Shares, (B)                subdivide the outstanding Common Shares or Class A
Common Shares, (C) combine                the outstanding Common Shares or Class A Common
Shares into a smaller number of                Common Shares or Class A Common Shares,
respectively, or (D) issue any shares of                its capital stock in a
reclassification of the Common Shares or Class A Common                Shares, including
any such reclassification in connection with a consolidation                or merger in
which the Company is the continuing or surviving corporation                (provided that
if any such reclassification is effected prior to the                earlier of the
Distribution Date or the Share Acquisition Date, the Board of                Directors,
in its sole discretion, may elect not to adjust the Purchase Price in
               effect at the time of the record date for such reclassification and the
number                and kind of shares of capital stock issuable on such date), except
as otherwise                provided in this Section 11(a), the Purchase Price in
effect at the time                of the record date for such dividend or of the
effective date of such                subdivision, combination or reclassification, and
the number and kind of shares                of capital stock issuable on such date,
shall be proportionately adjusted so                that the holder of any Right
exercised after such time shall be entitled to                receive the aggregate
number and kind of shares of capital stock which, if such                Right had been
exercised immediately prior to such date and at a time when the                Common
Shares or Class A Common Shares transfer books of the Company were open,
               such holder would have owned upon such exercise and been entitled to
receive by                virtue of such dividend, subdivision, combination or
reclassification; provided, however, that in no event shall the
consideration to be                paid upon the exercise of one Right be less than the
aggregate par value of the                shares of capital stock of the Company issuable
upon exercise of one Right. If                an event occurs which would require an
adjustment under both Section                11(a)(i) and Section 11(a)(ii),
the adjustment provided for in this Section 11(a)(i) shall be in addition to, and
shall be made prior to, any                adjustment required pursuant to Section
11(a)(ii).  

12 

	 	        (ii)    
               Subject to Section 24 of this Agreement, in the event any Person
shall                become an Acquiring Person, other than pursuant to any transaction
set forth in Section 13(a), each holder of a Right shall thereafter have a right
to                receive, upon exercise thereof at a price equal to, as the case may be,
(A) the                then current Common Share Purchase Price per full Common Share
multiplied by the                number of Common Shares for which a Common Share
Purchase Right is then                exercisable or (B) the then current Class A Common
Share Purchase Price per full                Class A Common Share multiplied by the
number of Class A Common Shares for which                a Class A Common Share Purchase
Right is then exercisable, in accordance with                the terms of this Agreement,
such number of Common Shares or Class A Common                Shares, as applicable, as
shall equal the result obtained by (1) multiplying the                then current Common
Share Purchase Price or Class A Common Share Purchase Price                per full
Common Share or Class A Share, as applicable, by the number of Common
               Shares or Class A Common Shares, as applicable, for which a Right is then
               exercisable and dividing that product by (2) 50% of the then current per
share                market price of the Common Shares or Class A Common Shares, as
appropriate                (determined pursuant to Section 11(d)), on the date the
Person became an                Acquiring Person (such number of shares, the “Adjustment
               Shares”).  

	 	        From
and after such time as a Person becomes an Acquiring Person (a “Section 11(a)(ii)
Event”), any Rights that are or were acquired or beneficially owned by such
Acquiring Person (or any Associate or Affiliate of such Acquiring Person) shall be void
and any holder of such Rights shall thereafter have no right to exercise such Rights
under any provision of this Agreement. No Right Certificate shall be issued pursuant to
Section 3 that represents Rights beneficially owned by an Acquiring Person whose
Rights would be void pursuant to the preceding sentence or any Associate or Affiliate
thereof; no Right Certificate shall be issued at any time upon the transfer of any Rights
to an Acquiring Person whose Rights would be void pursuant to the preceding sentence or
any Associate or Affiliate thereof or to any nominee of such Acquiring Person, Associate
or Affiliate; and any Right Certificate delivered to the Rights Agent for transfer to an
Acquiring Person whose Rights would be void pursuant to the preceding sentence shall be
cancelled. The Company shall use all reasonable efforts to ensure that the provisions of
this paragraph are complied with, but shall have no liability to any holder of Right
Certificates or other Person as a result of its failure to make any determinations with
respect to an Acquiring Person or its Affiliates, Associates or transferees hereunder.  

13 

	 	        (iii)              In
the event that there shall not be sufficient Common Shares or Class A Common
          Shares issued but not outstanding or authorized but unissued (and not reserved
          for issuance for purposes other than upon the exercise of the Rights) to permit
          the exercise in full of the Rights in accordance with the foregoing
subparagraph           (ii), the Company shall: (A) determine the excess of (1) the value
of the           Adjustment Shares issuable upon the exercise of a Right (the “Current
Value”) over (2) the Purchase Price payable with respect to
          such Right (such excess, the “Spread”), and (B) with respect
to           each Right, make adequate provision to substitute for the Adjustment Shares,
          upon payment of the applicable Purchase Price, (1) cash, (2) a reduction in the
          Purchase Price, (3) Common Shares or Class A Common Shares, as applicable, or
          other equity securities of the Company (including, without limitation, shares,
          or units of shares, of preferred stock, if any, which the Board of Directors of
          the Company has deemed to have the same value as Common Shares or Class A
Common           Shares, as applicable, (such shares of preferred stock, hereinafter
referred to           as “common stock equivalents”)), (4) debt
securities of the           Company, (5) other assets or (6) any combination of the
foregoing, having an           aggregate value equal to the Current Value, where such
aggregate value has been           determined by the Board of Directors of the Company
based upon the advice of a           reputable investment banking firm selected by the
Board of Directors of the           Company; provided, however, if the
Company shall not have made           adequate provision to substitute for the Adjustment
Shares pursuant to clause           (B) above within thirty (30) days following the
occurrence of a Section           11(a)(ii) Event (the “Section 11(a)(ii) Trigger
Date”), then           the Company shall be obligated to deliver, upon the
surrender for exercise of a           Right and without requiring payment of any portion
of the Purchase Price, Common           Shares or Class A Common Shares, as applicable,
(to the extent available) and           then, if necessary, cash, which shares and/or
cash have an aggregate value equal           to the Spread. If the Board of Directors of
the Company shall determine in good           faith that it is likely that sufficient
additional Common Shares or Class A           Common Shares might be authorized for
issuance for exercise in full of the           Rights, the thirty (30) day period set
forth above may be extended to the extent           necessary, but not more than ninety
(90) days after the Section 11(a)(ii)           Trigger Date, in order that the Company
may seek shareholder approval for the           authorization of such additional shares
(such period, as it may be extended, the           “Substitution Period”).
To the extent that the Company           determines that some action need be taken
pursuant to the first and/or second           sentences of this Section 11(a)(iii),
the Company (1) shall provide,           subject to the last paragraph of Section
11(a)(ii) hereof, that such           action shall apply uniformly to all outstanding
Rights, and (2) may suspend           the exercisability of the Rights until the
expiration of the Substitution Period           to seek any authorization of additional
shares and/or to decide the appropriate           form of distribution to be made
pursuant to such first sentence and to determine           the value thereof. In the
event of any such suspension, the Company shall issue           a public announcement
stating that the exercisability of the Rights has been           temporarily suspended,
as well as a public announcement at such time as the           suspension is no longer in
effect. For purposes of this Section           11(a)(iii), the value of the Common
Shares or Class A Common Shares shall be the           current per share market price (as
determined pursuant to Section 11(d)          hereof) of the Common Shares or
Class A Common Shares on the Section 11(a)(ii)           Trigger Date and the value of
any “common stock equivalent” shall be           deemed to have the same value
as the Common Shares or Class A Common Shares, as           applicable, on such date.  

14 

	 	        (b)              In
case the Company shall fix a record date for the issuance of rights, options           or
warrants to all holders of Common Shares or Class A Common Shares entitling
          them (for a period expiring within 45 calendar days after such record date) to
          subscribe for or purchase Common Shares or Class A Common Shares (or securities
          convertible into Common Shares or Class A Common Shares) at a price per Common
          Share or Class A Common Share (or having a conversion price per share, if a
          security convertible into Common Shares or Class A Common Shares) less than the
          then current per share market price of the Common Shares or Class A Common
          Shares (as defined in Section 11(d)) on such record date, the
          Purchase Price to be in effect after such record date shall be determined by
          multiplying the Purchase Price in effect immediately prior to such record date
          by a fraction, the numerator of which shall be (i) the number of Common Shares
          or Class A Common Shares, as appropriate, outstanding on such record date plus
          (ii) the number of Common Shares or Class A Common Shares, as appropriate,
which           the aggregate offering price of the total number of Common Shares or
Class A           Common Shares, as appropriate, so to be offered (and/or the aggregate
initial           conversion price of the convertible securities so to be offered) would
purchase           at such current market price and the denominator of which shall be the
number of           Common Shares or Class A Common Shares, as appropriate, outstanding
on such           record date plus the number of additional Common Shares or Class A
Common           Shares, as appropriate, to be offered for subscription or purchase (or
into           which the convertible securities so to be offered are initially
convertible); provided, however, that in no event shall the consideration
to be           paid upon the exercise of one Right be less than the aggregate par value
of the           shares of capital stock of the Company issuable upon exercise of one
Right. In           case such subscription price may be paid in a consideration part or
all of which           shall be in a form other than cash, the value of such
consideration shall be as           determined in good faith by the Board of Directors of
the Company, whose           determination shall be described in a statement filed with
the Rights Agent.           Common Shares or Class A Common Shares owned by or held for
the account of the           Company shall not be deemed outstanding for the purpose of
any such computation.           Such adjustment shall be made successively whenever such
a record date is fixed;           and in the event that such rights, options or warrants
are not so issued, the           Purchase Price shall be adjusted to be the Purchase
Price which would then be in           effect if such record date had not been fixed.  

	 	        (c)              In
case the Company shall fix a record date for the making of a distribution to
          all holders of the Common Shares or Class A Common Shares (including any such
          distribution made in connection with a consolidation or merger in which the
          Company is the continuing or surviving corporation) of evidences of
indebtedness           or assets (other than a regular quarterly cash dividend or a
dividend payable in           Common Shares or Class A Common Shares) or subscription
rights or warrants           (excluding those referred to in Section 11(b)), the
Purchase Price to be           in effect after such record date shall be determined by
multiplying the Purchase           Price in effect immediately prior to such record date
by a fraction, the           numerator of which shall be the then current per share
market price of the           Common Shares or Class A Common Shares, as appropriate, (as
defined in Section 11(d)) on such record date, less the fair market value (as
          determined in good faith by the Board of Directors of the Company, whose
          determination shall be described in a statement filed with the Rights Agent) of
          the portion of the assets or evidences of indebtedness so to be distributed or
          of such subscription rights or warrants applicable to one Common Share or one
          Class A Common Share, as appropriate, and the denominator of which shall be
such           current per share market price of the Common Shares or Class A Common
Shares, as           appropriate; provided, however, that in no event shall
the           consideration to be paid upon the exercise of one Right be less than the
          aggregate par value of the shares of capital stock of the Company to be issued
          upon exercise of one Right. Such adjustments shall be made successively
whenever           such a record date is fixed; and in the event that such distribution
is not so           made, the Purchase Price shall again be adjusted to be the Purchase
Price which           would then be in effect if such record date had not been fixed.  

15 

	 	        (d)              For
the purpose of any computation hereunder, the “current per share           market
price” of the Common Shares or Class A Common Shares on any date           shall
be deemed to be the average of the daily closing prices per Common Share           or
Class A Common Share, as appropriate, for the 30 consecutive Trading Days (as
          such term is hereinafter defined) immediately prior to and not including such
          date; provided, however, that in the event that the current per
          share market price of the Common Shares or Class A Common Shares is determined
          during a period following the announcement by the issuer of such Common Shares
          or Class A Common Shares of (i) a dividend or distribution on such Common
Shares           or Class A Common Shares payable in Common Shares, Class A Common Shares
or           securities convertible into Common Shares or Class A Common Shares, or (ii)
any           subdivision, combination or reclassification of Common Shares or Class A
Common           Shares and prior to the expiration of 30 Trading Days after the
ex-dividend date           for such dividend or distribution, or the record date for such
subdivision,           combination or reclassification, then, and in each such case, the
current per           share market price shall be appropriately adjusted to reflect the
current market           price per Common Share or Class A Common Share, as appropriate.
The closing           price for each Trading Day shall be the last sale price, regular
way, or, in           case no such sale takes place on such day, the average of the
closing bid and           asked prices, regular way, in either case as reported in the
principal           consolidated transaction reporting system with respect to securities
listed or           admitted to trading on the New York Stock Exchange or, if the Common
Shares or           Class A Common Shares are not listed or admitted to trading on the
New York           Stock Exchange, as reported in the principal consolidated transaction
reporting           system with respect to securities listed on the principal national
securities           exchange on which the Common Shares or Class A Common Shares are
listed or           admitted to trading or, if the Common Shares or Class A Common Shares
are not           listed or admitted to trading on any national securities exchange, the
last           quoted price or, if not so quoted, the average of the closing bid and
asked           prices as furnished by a professional market maker making a market in the
Common           Shares or Class A Common Shares selected by the Board of Directors of
the           Company. The term “Trading Day” shall mean a day on which
the           principal national securities exchange on which the Common Shares or Class
A           Common Shares are listed or admitted to trading or, if the Common Shares or
          Class A Common Shares are not listed or admitted to trading on any national
          securities exchange, as the case may be, a Business Day.  

16 

	 	        (e)              No
adjustment in the Purchase Price shall be required unless such adjustment           would
require an increase or decrease of at least 1% in the Purchase Price; provided, however,
that any adjustments which by reason of this Section 11(e) are not required to be
made shall be carried forward and           taken into account in any subsequent
adjustment. All calculations under this Section 11 shall be made to the nearest
cent or to the nearest           ten-thousandth of a share as the case may be.
Notwithstanding the first sentence           of this Section 11(e), any adjustment
required by this Section 11          shall be made no later than the earlier of
(i) three years from the date of the           transaction which requires such adjustment
or (ii) the date of the expiration of           the right to exercise any Rights.  

	 	        (f)              If,
as a result of an adjustment made pursuant to Section 11(a), the           holder
of any Right thereafter exercised shall become entitled to receive any           shares
of capital stock of the Company other than Common Shares or Class A           Common
Shares, thereafter the number of such other shares so receivable upon           exercise
of any Right shall be subject to adjustment from time to time in a           manner and
on terms as nearly equivalent as practicable to the provisions with           respect to
the Common Shares and Class A Common Shares contained in Section           11(a) through
(c), inclusive, and the provisions of Sections           7, 9, 10 and
13 with respect to the Common Shares and           Class A Common Shares shall
apply on like terms to any such other shares.  

	 	        (g)              All
Rights originally issued by the Company subsequent to any adjustment made to
          the Purchase Price hereunder shall evidence the right to purchase, at the
          adjusted Purchase Price, the number of Common Shares or Class A Common Shares
          purchasable from time to time hereunder upon exercise of the Rights, all
subject           to further adjustment as provided herein.  

	 	        (h)              Unless
the Company shall have exercised its election as provided in Section           11(i),
upon each adjustment of the Purchase Price as a result of the           calculations made
in Section 11(b) and (c), each Right outstanding           immediately
prior to the making of such adjustment shall thereafter evidence the           right to
purchase, at the adjusted Purchase Price, that number of Common Shares           or Class
A Common Shares (calculated to the nearest ten-thousandth of a Common           Share or
Class A Common Share) obtained by (i) multiplying (A) the number of           Common
Shares or Class A Common Shares covered by a Right immediately prior to           this
adjustment by (B) the Purchase Price in effect immediately prior to such
          adjustment of the Purchase Price and (ii) dividing the product so obtained by
          the Purchase Price in effect immediately after such adjustment of the Purchase
          Price.  

17 

	 	        (i)              The
Company may elect on or after the date of any adjustment of the Purchase           Price
to adjust the number of Rights, in substitution for any adjustment in the
          number of Common Shares or Class A Common Shares purchasable upon the exercise
          of a Right. Each of the Rights outstanding after such adjustment of the number
          of Rights shall be exercisable for the number of Common Shares or Class A
Common           Shares for which a Right was exercisable immediately prior to such
adjustment.           Each Right held of record prior to such adjustment of the number of
Rights shall           become that number of Rights (calculated to the nearest one
ten-thousandth)           obtained by dividing the Purchase Price in effect immediately
prior to           adjustment of the Purchase Price by the Purchase Price in effect
immediately           after adjustment of the Purchase Price. The Company shall make a
public           announcement of its election to adjust the number of Rights, indicating
the           record date for the adjustment, and, if known at the time, the amount of
the           adjustment to be made. This record date may be the date on which the
Purchase           Price is adjusted or any day thereafter, but, if the Right
Certificates have           been issued, shall be at least 10 days later than the date of
the public           announcement. If Right Certificates have been issued, upon each
adjustment of           the number of Rights pursuant to this Section 11(i), the
Company shall,           as promptly as practicable, cause to be distributed to holders
of record of           Right Certificates on such record date Right Certificates
evidencing, subject to Section 14 hereof, the additional Rights to which such
holders shall be           entitled as a result of such adjustment, or, at the option of
the Company, shall           cause to be distributed to such holders of record in
substitution and           replacement for the Right Certificates held by such holders
prior to the date of           adjustment, and upon surrender thereof, if required by the
Company, new Right           Certificates evidencing all the Rights to which such holders
shall be entitled           after such adjustment. Right Certificates to be so
distributed shall be issued,           executed and countersigned in the manner provided
for herein and shall be           registered in the names of the holders of record of
Right Certificates on the           record date specified in the public announcement.  

	 	        (j)              Irrespective
of any adjustment or change in the Purchase Price or the number of           Common
Shares or Class A Common Shares issuable upon the exercise of the Rights,           the
Right Certificates theretofore and thereafter issued may continue to express
          the Purchase Price and the number of Common Shares or Class A Common Shares
          which were expressed in the initial Right Certificates issued hereunder.  

	 	        (k)              Before
taking any action that would cause an adjustment reducing the Purchase           Price
below the par value, if any, of the Common Shares or Class A Common Shares
          issuable upon exercise of the Rights, the Company shall take any corporate
          action which may, in the opinion of its counsel, be necessary in order that the
          Company may validly and legally issue fully paid and nonassessable (except as
          otherwise provided by any corporation law applicable to the Company) Common
          Shares or Class A Common Shares, as applicable, at such adjusted Purchase
Price.  

	 	        (l)              In
any case in which this Section 11 shall require that an adjustment in
          the Purchase Price be made effective as of a record date for a specified event,
          the Company may elect to defer until the occurrence of such event the issuing
to           the holder of any Right exercised after such record date of the Common
Shares,           Class A Common Shares and other capital stock or securities of the
Company, if           any, issuable upon such exercise over and above the number of
Common Shares,           Class A Common Shares and other capital stock or securities of
the Company, if           any, issuable upon such exercise on the basis of the Purchase
Price in effect           prior to such adjustment; provided, however, that
the Company           shall deliver to such holder a due bill or other appropriate
instrument           evidencing such holder’s right to receive such additional
shares upon the           occurrence of the event requiring such adjustment. The Company
shall           contemporaneously provide the Rights Agent with a copy of any such
election.  

18 

	 	        (m)              Anything
in this Section 11 to the contrary notwithstanding, the Board of
          Directors shall also have the authority to make such reductions in the Purchase
          Price, in addition to those adjustments expressly required by this Section
          11, as and to the extent that it in its sole discretion shall determine to
          be advisable in order that any consolidation or subdivision of the Common
Shares           or Class A Common Shares, issuance wholly for cash of any Common Shares
or Class           A Common Shares at less than the current market price, issuance wholly
for cash           of Common Shares, Class A Common Shares or securities which by their
terms are           convertible into or exchangeable for Common Shares or Class A Common
Shares,           dividends on Common Shares or Class A Common Shares payable in Common
Shares or           Class A Common Shares or issuance of rights, options or warrants
referred to in Section 11(b), hereafter made by the Company to holders of Common
Shares,           Class A Common Shares or Class B Common Shares shall not be taxable to
such           shareholders.  

	 	        (n)              The
Company covenants and agrees that it shall not, at any time after the           earlier
of the Distribution Date or the Share Acquisition Date,           (i) consolidate
with any other Person (other than a Subsidiary of the           Company in a transaction
which complies with Section 11(o) hereof),           (ii) merge with or into
any other Person (other than a Subsidiary of the           Company in a transaction which
complies with Section 11(o) hereof), or           (iii) sell or transfer (or
permit any Subsidiary to sell or transfer), in           one transaction, or a series of
related transactions, assets or earning power           aggregating more than 50% of the
assets or earning power of the Company and its           Subsidiaries (taken as a whole)
to any other Person or Persons (other than the           Company and/or any of its
Subsidiaries in one or more transactions each of which           complies with Section 11(o) hereof)
or (iv) consummate a share           exchange with any other Person, if at the time
of or immediately after any such           consolidation, merger, sale or share exchange
(A) there would be any rights,           warrants or other instruments or securities
outstanding or agreements in effect           which would substantially diminish or
otherwise eliminate the benefits intended           to be afforded by the Rights, (B) prior
to, simultaneously with or           immediately after such consolidation, merger, sale
or share exchange the           shareholders of the Person who constitute, or would
constitute, the           “Principal Party” for purposes of Section 13(a) hereof
          would have received a distribution of Rights previously owned by such Person or
          any of its Affiliates and Associates or (C) the form or nature of
          organization of the Principal Party would preclude or limit the exercisability
          of the Rights.  

	 	        (o)              The
Company covenants and agrees that, after the Distribution Date, it will not,
          except as permitted by Section 23, 24 or 27  hereof, take
          (or permit any Subsidiary to take) any action if at the time such action would
          be taken it is reasonably foreseeable that such action will diminish
          substantially or otherwise eliminate the benefits intended to be afforded by
the           Rights.  

        Section
12.     Certificate of Adjusted Purchase Price or Number of Shares. Whenever an
adjustment is made as provided in Sections 11 and 13 hereof, the Company
shall promptly (a) prepare a certificate setting forth such adjustment, and a brief
statement of the facts accounting for such adjustment, (b) file with the Rights Agent and
with each transfer agent for the Common Shares or Class A Common Shares a copy of such
certificate and (c) mail (or, if deemed appropriate by the Board of Directors of the
Company, make available at no charge) a brief summary thereof to each holder of a Right
Certificate in accordance with Section 25 hereof. The Rights Agent shall be
fully protected in relying on any such certificate and on any adjustment therein
contained, and shall have no duty with respect to and shall not be deemed to have
knowledge of such adjustment unless and until it shall have received such certificate.  

19 

        Section
13.           Consolidation, Merger, Share Exchange or Sale or Transfer of Assets or Earning
Power. 

	 	        (a)    
               In the event that, following the Shares Acquisition Date, directly or
               indirectly, (A) the Company shall consolidate with, or merge with and
into, any                other Person (other than a Subsidiary of the Company in a
transaction which                complies with Section 11(o) hereof), and
the Company shall not be                the continuing or surviving corporation of such
consolidation or merger, (B) any                Person (other than a Subsidiary of the
Company in a transaction which complies                with Section 11(o) hereof)
shall consolidate with, or merge with or into,                the Company, and the
Company shall be the continuing or surviving corporation of                such
consolidation or merger, or any Person or Persons (other than a Subsidiary
               of the Company in a transaction that complies with Section 11(o) hereof)
               shall consummate a share exchange with the Company, and, in connection
with such                consolidation or merger or share exchange, all or part of the
outstanding Common                Shares, Class A Common Shares or Class B Common Shares
shall be changed into or                exchanged for stock or other securities of any
other Person (or the Company) or                cash or any other property, or (C) the
Company shall sell or otherwise transfer                (or one or more of its
Subsidiaries shall sell or otherwise transfer), in one                transaction or a
series of related transactions, assets or earning power                aggregating more
than 50% of the assets or earning power of the Company and its
               Subsidiaries (taken as a whole) to any Person or Persons (other than the
Company                or any Subsidiary of the Company in one or more transactions each
of which                complies with Section 11(o) hereof), then, and in each
such case, proper                provision shall be made so that: (1) each holder of a
Right (except as otherwise                provided herein) shall thereafter have the
right to receive, upon the exercise                thereof at a price equal to the then
current Purchase Price multiplied by the                number of Common Shares or Class
A Common Shares, as applicable, for which a                Right is then exercisable (or,
if a Section 11(a)(ii) Event has occurred                prior to the first
occurrence of any of the events described in clauses (A), (B)                or (C) above
(a “Section 13 Event”), the Purchase Price in                effect
immediately prior to the first occurrence of a Section 11(a)(ii) Event
               multiplied by the number of Common Shares or Class A Common Shares for
which a                Right was exercisable immediately prior to such first occurrence),
in accordance                with the terms of this Agreement, such number of validly
authorized and issued,                fully paid, nonassessable (except as otherwise
required by any corporation law                applicable to the Principal Party (as such
term is hereinafter defined)) and                freely tradable Common Shares of the
Principal Party, not subject to any liens,                encumbrances, rights of first
refusal or other adverse claims, as shall be equal                to the result obtained
by (x) multiplying the then current Purchase Price by the                number of Common
Shares or Class A Common Shares for which a Right is                exercisable
immediately prior to the first occurrence of a Section 13 Event (or,                if a
Section 11(a)(ii) Event has occurred prior to the first occurrence of a
               Section 13 Event, multiplying the number of such shares for which a Right
was                exercisable immediately prior to the first occurrence of a Section
11(a)(ii)                Event by the Purchase Price in effect immediately prior to such
first                occurrence), and dividing that product (which, following the first
occurrence of                a Section 13 Event, shall be referred to as the “Purchase
Price” for                each Right and for all purposes of this Agreement) by (y)
50% of the current                market price (determined pursuant to Section 11(d) hereof)
per Common                Share of such Principal Party on the date of consummation of
such Section 13                Event; (2) such Principal Party shall thereafter be liable
for, and shall                assume, by virtue of such Section 13 Event, all the
obligations and duties of                the Company pursuant to this Agreement; (3) the
term “Company” shall                thereafter be deemed to refer to such
Principal Party, it being specifically                intended that the provisions of Section
11 hereof shall apply only to                such Principal Party following the first
occurrence of a Section 13 Event;                (4) such Principal Party shall take
such steps (including, but not limited to,                the reservation of a sufficient
number of its Common Shares) in connection with                the consummation of any
such transaction as may be necessary to assure that the                provisions hereof
shall thereafter be applicable, as nearly as reasonably may                be, in
relation to its Common Shares thereafter deliverable upon the exercise of
               the Rights; and (5) the provisions of Section 11(a)(ii) hereof
shall be                of no effect following the first occurrence of any Section 13
Event.  

20 

	 	        (b)    
               “Principal Party” shall mean:  

	 	        (i)    
               in the case of any transaction described in clause (A) or (B) of the first
               sentence of Section 13(a), the Person that is the issuer of
any                securities into which Common Shares, Class A Common Shares or Class B
Common                Shares of the Company are converted in such merger, consolidation
or share                exchange, and if no securities are so issued, (A) the Person that
is the other                party to the merger, consolidation or share exchange and that
survives such                merger or consolidation, or, if there is more than one such
Person, the Person                the Common Shares of which have the greatest aggregate
market value of shares                outstanding or (B) if the Person that is the other
party to the merger or                consolidation does not survive the merger or
consolidation, the Person that does                survive the merger or consolidation
(including the Company if it survives); and  

	 	        (ii)    
               in the case of any transaction described in clause (C) of the first
sentence of Section 13(a), the Person that is the party receiving the greatest
               portion of the assets or earning power transferred pursuant to such
transaction                or transactions;  

	 	
provided,
however, that in any such case, (A) if the Common Shares of such Person are not at
such time and have not been continuously over the preceding twelve (12) month-period
registered under Section 12 of the Exchange Act, and such Person is a direct or indirect
Subsidiary of another Person the Common Shares of which are and have been so registered,
“Principal Party” shall refer to such other Person; and (2) in case such Person
is a Subsidiary, directly or indirectly, of more than one Person, the Common Shares of two
or more of which are and have been so registered, “Principal Party” shall refer
to whichever of such Persons is the issuer of the Common Shares having the greatest
aggregate market value. 

21 

	 	        (c)    
               The Company shall not consummate any such consolidation, merger, share
exchange,                sale or transfer unless the Principal Party shall have a
sufficient number of                authorized Common Shares which have not been issued
or reserved for issuance to                permit the exercise in full of the Rights in
accordance with this Section                13 and unless prior thereto the
Company and such Principal Party shall have                executed and delivered to the
Rights Agent a supplemental agreement providing                for the terms set forth in
paragraphs (a) and (b) of this Section 13 and                further providing
that, as soon as practicable after the date of any                consolidation, merger,
share exchange or sale of assets mentioned in paragraph                (a) of this Section
13, the Principal Party will:  

	 	        (i)    
               prepare and file a registration statement under the Securities Act of
1933, as                amended (the “Act”), with respect to the Rights
and the                securities purchasable upon exercise of the Rights on an
appropriate form, and                will use its best efforts to cause such registration
statement to (A) become                effective as soon as practicable after such filing
and (B) remain effective                (with a prospectus at all times meeting the
requirements of the Act) until the                Final Expiration Date; and  

	 	        (ii)    
               deliver to holders of the Rights historical financial statements for the
               Principal Party and each of its Affiliates which comply in all respects
with the                requirements for registration on Form 10 under the Exchange Act.  

The provisions of this Section
13 shall similarly apply to successive mergers or consolidations, share exchanges or
sales or other transfers. In the event that a Section 13 Event shall occur at any time
after the occurrence of a Section 11(a)(ii) Event, the Rights which have not theretofore
been exercised shall thereafter become exercisable in the manner described in Section
13(a). 

        Section
14.     Fractional Rights and Fractional Shares.  

	 	        (a)              The
Company shall not be required to issue fractions of Rights or to distribute
          Right Certificates which evidence fractional Rights. In lieu of such fractional
          Rights, there shall be paid to the registered holders of the Right Certificates
          with regard to which such fractional Rights would otherwise be issuable, an
          amount in cash equal to the same fraction of the current market value of a
whole           Right. For the purposes of this Section 14(a), the current market
value           of a whole Right shall be the closing price of the Rights for the Trading
Day           immediately prior to the date on which such fractional Rights would have
been           otherwise issuable. The closing price for any day shall be the last sale
price,           regular way, or, in case no such sale takes place on such day, the
average of           the closing bid and asked prices, regular way, in either case as
reported in the           principal consolidated transaction reporting system with
respect to securities           listed or admitted to trading on the principal national
securities exchange on           which the Rights are listed or admitted to trading or,
if the Rights are not           listed or admitted to trading on any national securities
exchange, the last           quoted price or, if not so quoted, the average of the
closing bid and asked           prices as furnished by a professional market maker making
a market in the Rights           selected by the Board of Directors of the Company. If on
any such date no such           market maker is making a market in the Rights the fair
value of the Rights on           such date as determined in good faith by the Board of
Directors of the Company           shall be used.  

22 

	 	        (b)              The
Company shall not be required to issue fractions of Common Shares or Class A
          Common Shares upon exercise of the Rights or to distribute certificates which
          evidence fractional Common Shares or fractional Class A Common Shares. In lieu
          of fractional Common Shares or fractional Class A Common Shares, equal to
          one-half of a Common Share or Class A Common Share, as appropriate, or less,
the           Company shall pay to the registered holders of Right Certificates at the
time           such Rights are exercised as herein provided an amount in cash equal to
the same           fraction of the current market value of one Common Share or Class A
Common           Share, as appropriate. Any exercise of Rights that would entitle the
holder           thereof to receive any fraction of a Common Share or Class A Common
Share           greater than one-half of a Common Share or Class A Common Share, as
appropriate,           shall be governed by Section 7(a) hereof. For purposes of
this Section           14(b), the current market value of a Common Share or Class
A Common Share           shall be the closing price of a Common Share or Class A Common
Share, as           appropriate, (as determined pursuant to the second sentence of Section
          11(d) hereof) for the Trading Day immediately prior to the date of such
          exercise.  

	 	        (c)              The
holder of a Right by the acceptance of the Right expressly waives his right           to
receive any fractional Rights or any fractional shares upon exercise of a           Right
(except as provided above).  

	 	        (d)              The
Rights Agent shall have no duty or obligation with respect to this Section 14 and
any other Section of this Agreement relating to fractional           shares unless and
until it has received specific instructions (and sufficient           cash if required)
from the Company with respect to its duties and obligations           under such
Sections.  

        Section
15.     Rights of Action. All rights of action in respect of this Agreement, excepting
the rights of action given to the Rights Agent under Section 18 hereof, are vested
in the respective registered holders of the Right Certificates (and, prior to the
Distribution Date, the registered holders of the Common Shares, Class A Common Shares and
Class B Common Shares); and any registered holder of any Right Certificate (or, prior to
the Distribution Date, of the Common Shares, Class A Common Shares or Class B Common
Shares), without the consent of the Rights Agent or of the holder of any other Right
Certificate (or, prior to the Distribution Date, of the Common Shares, Class A Common
Shares or Class B Common Shares), may, in his own behalf and for his own benefit,
enforce, and may institute and maintain any suit, action or proceeding against the
Company to enforce, or otherwise act in respect of, his right to exercise the Rights
evidenced by such Right Certificate in the manner provided in such Right Certificate and
in this Agreement. Without limiting the foregoing or any remedies available to the
holders of Rights, it is specifically acknowledged that the holders of Rights would not
have an adequate remedy at law for any breach of this Agreement and will be entitled to
specific performance of the obligations under, and injunctive relief against actual or
threatened violations of the obligations of any Person subject to, this Agreement.  

23 

        Section
16.     Agreement of Right Holders. Every holder of a Right, by accepting the same,
consents and agrees with the Company and the Rights Agent and with every other holder of
a Right that:  

	 	        (a)              prior
to the Distribution Date, the Rights will be transferable only in           connection
with the transfer of the Common Shares, Class A Common Shares and           Class B
Common Shares;  

	 	        (b)              after
the Distribution Date, the Right Certificates are transferable only on the
          registry books of the Rights Agent if surrendered at the principal office of
the           Rights Agent, duly endorsed or accompanied by a proper instrument of
transfer;  

	 	        (c)              the
Company and the Rights Agent may deem and treat the person in whose name the
          Right Certificate (or, prior to the Distribution Date, the associated Common
          Shares, Class A Common Shares or Class B Common Shares certificate) is
          registered as the absolute owner thereof and of the Rights evidenced thereby
          (notwithstanding any notations of ownership or writing on the Right
Certificates           or the associated Common Shares, Class A Common Shares or Class B
Common Shares           certificate made by anyone other than the Company or the Rights
Agent) for all           purposes whatsoever, and neither the Company nor the Rights
Agent shall be           affected by any notice to the contrary; and  

	 	        (d)              notwithstanding
anything in this Agreement to the contrary, neither the Company           nor the Rights
Agent shall have any liability to any holder of a Right or other           Person as a
result of its inability to perform any of its obligations under this           Agreement
by reason of any preliminary or permanent injunction or other order,           decree,
judgment or ruling (whether interlocutory or final) issued by a court of
          competent jurisdiction or by a governmental, regulatory or administrative
agency           or commission, or any statute, rule, regulation or executive order
promulgated           or enacted by any governmental authority, prohibiting or otherwise
restraining           performance of such obligation; provided, however,
the Company           must use its best efforts to have any such order, decree, judgment
or ruling           lifted or otherwise overturned as soon as possible.  

24 

        Section
17.     Right Certificate Holder Not Deemed a Shareholder. No holder, as such, of any
Right Certificate shall be entitled to vote, receive dividends or other distributions or
be deemed for any purpose the holder of the Common Shares, Class A Common Shares or Class
B Common Shares or any other securities of the Company which may at any time be issuable
on the exercise of the Rights represented thereby, nor shall anything contained herein or
in any Right Certificate be construed to confer upon the holder of any Right Certificate,
as such, any of the rights of a shareholder of the Company or any right to vote for the
election of directors or upon any matter submitted to shareholders at any meeting
thereof, or to give or withhold consent to any corporate action, or to receive notice of
meetings or other actions affecting shareholders (except as provided in Section 25 hereof)
or proceedings of the Company (except as provided herein), or to receive dividends or
subscription rights, or otherwise, until the Right or Rights evidenced by such Right
Certificate shall have been exercised in accordance with the provisions hereof.  

        Section
18.     Concerning the Rights Agent.  

	 	        (a)              The
Company agrees to pay to the Rights Agent reasonable compensation for all
          services rendered by it hereunder and, from time to time, on demand of the
          Rights Agent, its reasonable expenses and counsel fees and other disbursements
          incurred in the preparation, delivery, amendment, administration and execution
          of this Agreement and the exercise and performance of its duties hereunder. The
          Company also agrees to indemnify the Rights Agent for, and to hold it harmless
          against, any loss, liability, damage, judgment, fine, penalty, claim, demand,
          settlement, loss or expense (including, without limitation, the reasonable fees
          and expenses of counsel) incurred without gross negligence, bad faith or
willful           misconduct on the part of the Rights Agent, for any action taken,
suffered or           omitted by the Rights Agent in connection with the acceptance,
administration,           exercise and performance of its duties under this Agreement,
including the costs           and expenses of defending against any claim of liability in
the premises. The           indemnity provided for herein shall survive the termination
of this Agreement           and the exercise or expiration of the Rights. Any reasonable
costs and expenses           incurred in enforcing this right of indemnification shall be
paid by the           Company.  

	 	        (b)              The
Rights Agent shall be protected and shall incur no liability for, or in           respect
of any action taken, suffered or omitted by it in connection with, its
          administration of this Agreement in reliance upon any Right Certificate or
          certificate for the Common Shares, Class A Common Shares or Class B Common
          Shares or for other securities of the Company, instrument of assignment or
          transfer, power of attorney, endorsement, affidavit, letter, notice, direction,
          consent, certificate, statement or other paper or document believed by it to be
          genuine and to be signed, executed and, where necessary, verified or
          acknowledged, by the proper person or persons, or otherwise upon the advice of
          counsel as set forth in Section 20 hereof.  

        Section
19.           Merger or Consolidation or Change of Name of Rights Agent. 

25 

	 	        (a)              Any
Person into which the Rights Agent or any successor Rights Agent may be           merged
or with which it may be consolidated, or any Person resulting from any           merger
or consolidation to which the Rights Agent or any successor Rights Agent           shall
be a party, or any Person succeeding to the shareholder services business           of
the Rights Agent or any successor Rights Agent, shall be the successor to the
          Rights Agent under this Agreement without the execution or filing of any paper
          or any further act on the part of any of the parties hereto, provided          that
such Person would be eligible for appointment as a successor Rights Agent           under
the provisions of Section 21 hereof. In case at the time such
          successor Rights Agent shall succeed to the agency created by this Agreement,
          any of the Right Certificates shall have been countersigned but not delivered,
          any such successor Rights Agent may adopt the countersignature of the
          predecessor Rights Agent and deliver such Right Certificates so countersigned;
          and in case at that time any of the Right Certificates shall not have been
          countersigned, any successor Rights Agent may countersign such Right
          Certificates either in the name of the predecessor Rights Agent or in the name
          of the successor Rights Agent; and in all such cases such Right Certificates
          shall have the full force provided in the Right Certificates and in this
          Agreement.  

	 	        (b)              In
case at any time the name of the Rights Agent shall be changed and at such           time
any of the Right Certificates shall have been countersigned but not           delivered,
the Rights Agent may adopt the countersignature under its prior name           and
deliver Right Certificates so countersigned; and in case at that time any of
          the Right Certificates shall not have been countersigned, the Rights Agent may
          countersign such Right Certificates either in its prior name or in its changed
          name; and in all such cases such Right Certificates shall have the full force
          provided in the Right Certificates and in this Agreement.  

        Section
20.     Duties of Rights Agent. The Rights Agent undertakes the duties and
obligations, and only the duties and obligations, expressly imposed by this Agreement
(and no implied duties and obligations) upon the following terms and conditions, by all
of which the Company and the holders of Right Certificates, by their acceptance thereof,
shall be bound:  

	 	        (a)              The
Rights Agent may consult with legal counsel (who may be legal counsel for           the
Company), and the written advice or opinion of such counsel shall be full           and
complete authorization and protection to the Rights Agent with respect to,           and
the Rights Agent shall incur no liability for or in respect of, any action
          taken, suffered or omitted by it in good faith and in accordance with such
          opinion.  

	 	        (b)              Whenever
in the performance of its duties under this Agreement the Rights Agent           shall
deem it necessary or desirable that any fact or matter be proved or           established
by the Company prior to taking or suffering any action hereunder,           such fact or
matter (unless other evidence in respect thereof be herein           specifically
prescribed) may be deemed to be conclusively proved and established           by a
certificate signed by the Chairman of the Board, the President or any Vice
          President and by the Treasurer or any Assistant Treasurer or the Secretary or
          any Assistant Secretary of the Company and delivered to the Rights Agent; and
          such certificate shall be full and complete authorization and protection to the
          Rights Agent for any action taken, suffered, or omitted in good faith by it
          under the provisions of this Agreement in reliance upon such certificate.  

26 

	 	        (c)              The
Rights Agent shall be liable hereunder to the Company and any other Person           only
for its own negligence, bad faith or willful misconduct. In no case will           the
Rights Agent be liable for special, indirect, punitive, incidental or
          consequential losses or damages of any kind whatsoever (including without
          limitation lost profits), even if the Rights Agent has been advised of the
          possibility of such damages. In the absence of gross negligence, bad faith or
          willful misconduct by the Rights Agent, any liability of the Rights Agent under
          this Agreement shall be limited to the aggregate amount of fees paid by the
          Company to the Rights Agent pursuant to this Agreement.  

	 	        (d)              The
Rights Agent shall not be liable for or by reason of any of the statements           of
fact or recitals contained in this Agreement or in the Right Certificates
          (except its countersignature thereof) or be required to verify the same, but
all           such statements and recitals are and shall be deemed to have been made by
the           Company only.  

	 	        (e)              The
Rights Agent shall not be under any liability or responsibility in respect           of
the validity of this Agreement or the execution and delivery hereof (except           the
due authorization, execution and delivery hereof by the Rights Agent) or in
          respect of the validity or execution of any Right Certificate (except its
          countersignature thereof); nor shall it be responsible for any breach by the
          Company of any covenant or condition contained in this Agreement or in any
Right           Certificate; nor shall it be responsible for any change in the
exercisability of           the Rights (including the Rights becoming void pursuant to Section
          11(a)(ii) hereof) or any adjustment in the terms of the Rights (including
          the manner, method or amount thereof) provided for in Section 3, 7,
11, 13, 23 or 24, or the ascertaining of           the
existence of facts that would require any such change or adjustment (except
          with respect to the exercise of Rights evidenced by Right Certificates after
          actual notice that such change or adjustment is required); nor shall it by any
          act hereunder be deemed to make any representation or warranty as to the
          authorization or reservation of any Common Shares, Class A Common Shares or
          other securities to be issued pursuant to this Agreement or any Right
          Certificate or as to whether any Common Shares, Class A Common Shares or other
          securities will, when issued, be validly authorized and issued, fully paid and
          nonassessable (except as otherwise provided by any corporation law applicable
to           the Company).  

	 	        (f)              The
Company agrees that it will perform, execute, acknowledge and deliver or           cause
to be performed, executed, acknowledged and delivered all such further and
          other acts, instruments and assurances as may reasonably be required by the
          Rights Agent for the carrying out or performing by the Rights Agent of the
          provisions of this Agreement.  

	 	        (g)              The
Rights Agent is hereby authorized and directed to accept instructions with
          respect to the performance of its duties hereunder from any one of the Chairman
          of the Board, the President, any Vice President, the Secretary, any Assistant
          Secretary, the Treasurer or any Assistant Treasurer of the Company, and to
apply           to such officers for advice or instructions in connection with its
duties, such           instructions shall be full authorization and protection to the
Rights Agent and           the Rights Agent shall incur no liability for or in respect of
any action taken,           suffered or omitted by it in good faith in accordance with
instructions of any           such officer or for any delay in acting while waiting for
those instructions.           The Rights Agent shall be fully authorized and protected in
relying upon the           most recent advice or instructions received from any such
officer.  

27 

	 	        (h)              The
Rights Agent and any shareholder, affiliate, director, officer or employee           of
the Rights Agent may buy, sell or deal in, or act as the transfer agent for,
          any of the Rights, Common Shares, Class A Common Shares, Class B Common Shares
          or other securities of the Company or become pecuniary interested in any
          transaction in which the Company may be interested, or contract with or lend
          money to the Company or otherwise act as fully and freely as though it were not
          Rights Agent under this Agreement. Nothing herein shall preclude the Rights
          Agent or any such shareholder, affiliate, director, officer or employee from
          acting in any other capacity for the Company or for any other Person.  

	 	        (i)              The
Rights Agent may execute and exercise any of the rights or powers hereby           vested
in it or perform any duty hereunder either itself or by or through its
          attorneys or agents, and the Rights Agent shall not be answerable or
accountable           for any act, default, neglect or misconduct of any such attorneys
or agents or           for any loss to the Company or any other Person resulting from any
such act,           default, neglect or misconduct, provided reasonable care was
exercised in the           selection and continued employment thereof.  

	 	        (j)              Notwithstanding
anything to the contrary contained in this Agreement, the Rights           Agent shall
not be liable for any delays or failures in performance resulting           from acts
beyond its reasonable control including, without limitation, acts of           God,
terrorist acts, shortage of supply, breakdowns or malfunctions,           interruptions
or malfunction of computer facilities, or loss of data due to           power failures or
mechanical difficulties with information storage or retrieval           systems, labor
difficulties, war, or civil unrest; provided that the           Rights Agent shall
maintain a disaster recovery plan and procedures, including           provisions for
emergency use of electronic data processing equipment, which is           reasonable in
light of the services to be provided, and will, at no additional           expense to the
Company, take reasonable steps to minimize service interruptions.  

	 	        (k)              No
provision of this Agreement shall require the Rights Agent to expend or risk
          its own funds or incur any financial liability in the performance of any of its
          duties hereunder or in the exercise of its rights if it believes that repayment
          of such funds or adequate indemnification against such risk or liability is not
          reasonably assured to it.  

        Section
21.     Change of Rights Agent. The Rights Agent or any successor Rights Agent may
resign and be discharged from its duties under this Agreement upon 30 days’ notice
in writing mailed to the Company and to each transfer agent of the Common Shares, Class A
Common Shares and Class B Common Shares by registered or certified mail, and to the
holders of the Right Certificates by first class mail. In the event the transfer agency
relationship in effect between the Company and the Rights Agent terminates, the Rights
Agent will be deemed to resign automatically on the effective date of such termination;
and any required notice will be sent by the Company. The Company may remove the Rights
Agent or any successor Rights Agent upon 30 days’ notice in writing, mailed to the
Rights Agent or successor Rights Agent, as the case may be, and to each transfer agent of
the Common Shares, Class A Common Shares and Class B Common Shares by registered or
certified mail, and to the holders of the Right Certificates by first class mail. If the
Rights Agent shall resign or be removed or shall otherwise become incapable of acting,
the Company shall appoint a successor to the Rights Agent. If the Company shall fail to
make such appointment within a period of 30 days after giving notice of such removal or
after it has been notified in writing of such resignation or incapacity by the resigning
or incapacitated Rights Agent or by the holder of a Right Certificate (who shall, with
such notice, submit his Right Certificate for inspection by the Company), then the
registered holder of any Right Certificate may apply to any court of competent
jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent,
whether appointed by the Company or by such a court, shall be (a) a corporation
authorized to do business as a banking institution, organized and doing business under
the laws of the United States or of the State of Iowa, in good standing, having an office
in the State of Iowa (or, in the discretion of the Board of Directors of the Company, any
other state of the United States), which is authorized under such laws to exercise
corporate trust or stock transfer powers and is subject to supervision or examination by
federal or state authority and which has at the time of its appointment as Rights Agent a
combined capital and surplus of at least $50 million, or (b) an Affiliate of a
corporation described in clause (a) of this sentence. After appointment, the successor
Rights Agent shall be vested with the same powers, rights, duties and responsibilities as
if it had been originally named as Rights Agent without further act or deed; but the
predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any
property at the time held by it hereunder, and execute and deliver any further assurance,
conveyance, act or deed necessary for the purpose. Not later than the effective date of
any such appointment the Company shall file notice thereof in writing with the
predecessor Rights Agent and each transfer agent of the Common Shares, Class A Common
Shares and Class B Common Shares, and mail a notice thereof in writing to the registered
holders of the Right Certificates. Failure to give any notice provided for in this Section
21, however, or any defect therein, shall not affect the legality or validity of the
resignation or removal of the Rights Agent or the appointment of the successor Rights
Agent, as the case may be.  

28 

        Section
22.     Issuance of New Right Certificates. Notwithstanding any of the provisions of
this Agreement or of the Rights to the contrary, the Company may, at its option, issue
new Right Certificates evidencing Rights in such form as may be approved by its Board of
Directors to reflect any adjustment or change in the Purchase Price and the number or
kind or class of shares or other securities or property purchasable under the Right
Certificates made in accordance with the provisions of this Agreement.  

        Section
23.     Redemption.  

	 	        (a)              The
Rights may be redeemed by action of the Board of Directors pursuant to subsection (b) of
this Section 23 and shall not be redeemed in any           other manner.  

	 	        (b)              The
Board of Directors of the Company may, at its option, at any time prior to           such
time as any Person becomes an Acquiring Person, redeem all but not less           than
all of the then outstanding Rights at a redemption price of $0.001 per           Right,
appropriately adjusted to reflect any stock split, stock dividend or           similar
transaction occurring after the date hereof (such redemption price being
          hereinafter referred to as the “Redemption Price”). Any such
          redemption will be effective immediately upon the action of the Board of
          Directors of the Company ordering the same, unless such action of the Board of
          Directors of the Company expressly provides that such redemption will be
          effective at a subsequent time or upon the occurrence or nonoccurrence of one
or           more specified events (in which case such redemption will be effective in
          accordance with the provisions of such action of the Board of Directors of the
          Company), notwithstanding any occurrence of a Section 11(a)(ii) Event.  

29 

	 	        (c)              Immediately
upon the effectiveness of the action of the Board of Directors of           the Company
ordering the redemption of the Rights pursuant to subsection           (b) of this
Section 23 and without any further action and without any           notice, the
right to exercise the Rights will terminate and the only right           thereafter of
the holders of Rights shall be to receive the Redemption Price.           The Company
shall promptly give public notice of any such redemption; provided, however,
that the failure to give, or any defect in, any           such notice shall not affect
the validity of such redemption. Within 10 days           after the effectiveness of the
action of the Board of Directors ordering the           redemption of the Rights pursuant
to subsection (b) the Company shall           mail a notice of redemption to all
the holders of the then outstanding Rights at           their last addresses as they
appear upon the registry books of the Rights Agent           or, prior to the
Distribution Date, on the registry books of the transfer agent           for the Common
Shares, Class A Common Shares and Class B Common Shares. Any           notice which is
mailed in the manner herein provided shall be deemed given,           whether or not the
holder receives the notice. Each such notice of redemption           will state the
method by which the payment of the Redemption Price will be made.           Neither the
Company nor any of its Affiliates or Associates may redeem, acquire           or purchase
for value any Rights at any time in any manner other than that           specifically set
forth in this Section 23 or in Section 24 hereof,           and other than
in connection with the purchase of Common Shares, Class A Common           Shares or
Class B Common Shares prior to the Distribution Date.  

        Section
24.     Exchange.  

	 	        (a)              The
Board of Directors of the Company may, at its option, at any time after any
          Person becomes an Acquiring Person, exchange all or part of the then
outstanding           and exercisable Rights (which shall not include Rights that have
become void           pursuant to the provisions of Section 11(a)(ii) hereof) for
Common Shares           or Class A Common Shares at an exchange ratio of one-half of one
Common Share or           one-half of one Class A Common Share per Right, as appropriate,
appropriately           adjusted to reflect any stock split, stock dividend or similar
transaction           occurring after the date hereof (such exchange ratio being
hereinafter referred           to as the “Exchange Ratio”).
Notwithstanding the foregoing, the           Board of Directors shall not be empowered to
effect such exchange at any time           after any Person (other than any member of the
Carver Family, the Company, any           Subsidiary of the Company, any employee benefit
plan of the Company or any such           Subsidiary, any entity holding Common Shares,
Class A Common Shares or Class B           Common Shares for or pursuant to the terms of
any such plan, or any trustee,           administrator or fiduciary of such a plan),
together with all Affiliates and           Associates of such Person, becomes the
Beneficial Owner of (i) 50% or more of           the Common Shares then outstanding, (ii)
50% or more of the Class A Common           Shares then outstanding or (iii) 50% of the
Common Shares and Class A Common           Shares then outstanding.  

30 

	 	        (b)              Immediately
upon the action of the Board of Directors of the Company ordering           the exchange
of any Rights pursuant to subsection (a) of this Section           24 and
without any further action and without any notice, the right to           exercise such
Rights shall terminate and the only right thereafter of a holder           of such Rights
shall be to receive that number of Common Shares or Class A           Common Shares, as
appropriate, equal to the number of such Rights held by such           holder multiplied
by the Exchange Ratio. The Company shall promptly give public           notice of any
such exchange; provided, however, that the failure           to give, or
any defect in, such notice shall not affect the validity of such           exchange. The
Company promptly shall mail a notice of any such exchange to all           of the holders
of such Rights at their last addresses as they appear upon the           registry books
of the Rights Agent. Any notice which is mailed in the manner           herein provided
shall be deemed given, whether or not the holder receives the           notice. Each such
notice of exchange will state the method by which the exchange           of the Common
Shares or Class A Common Shares, as appropriate, for Rights will           be effected
and, in the event of any partial exchange, the number of Rights           which will be
exchanged. Any partial exchange shall be effected pro rata based           on the number
of Rights (other than Rights which have become void pursuant to           the provisions
of Section 11(a)(ii) hereof) held by each holder of           Rights.  

	 	        (c)              In
any exchange pursuant to this Section 24, the Company, at its option,
          may substitute common stock equivalents (as such term is defined in Section
          11(a)(iii) hereof) for some or all of the Common Shares or Class A Common
          Shares, as appropriate, exchangeable for Rights.  

	 	        (d)              In
the event that there shall not be sufficient Common Shares, Class A Common
          Shares or common stock equivalents issued but not outstanding or authorized but
          unissued to permit any exchange of Rights as contemplated in accordance with
          this Section 24, the Company shall take all such action as may be
          necessary to authorize additional Common Shares, Class A Common Shares or
common           stock equivalents for issuance upon exchange of the Rights.  

	 	        (e)              The
Company shall not be required to issue fractions of Common Shares or Class A
          Common Shares or to distribute certificates which evidence fractional Common
          Shares or Class A Common Shares. In lieu of such fractional Common Shares or
          Class A Common Shares, the Company shall pay to the registered holders of the
          Right Certificates with regard to which such fractional Common Shares or Class
A           Common Shares would otherwise be issued an amount in cash equal to the same
          fraction of the current market value of a whole Common Share or Class A Common
          Share. For the purposes of this paragraph (e), the current market value of a
          whole Common Share or Class A Common Share shall be the closing price of a
          Common Share or Class A Common Share, as appropriate, (as determined pursuant
to           the second sentence of Section 11(d) hereof) for the Trading Day
          immediately prior to the date of exchange pursuant to this Section 24.  

        Section
25.     Notice of Certain Events.  

31 

	 	        (a)              In
case the Company shall propose, after the Distribution Date, (i) to pay any
          dividend payable in stock of any class to the holders of Common Shares, Class A
          Common Shares or Class B Common Shares or to make any other distribution to the
          holders of Common Shares, Class A Common Shares or Class B Common Shares (other
          than a regular quarterly cash dividend), (ii) to offer to the holders of Common
          Shares, Class A Common Shares or Class B Common Shares rights or warrants to
          subscribe for or to purchase any additional Common Shares or shares of stock of
          any class or any other securities, rights or options, (iii) to effect any
          reclassification of Common Shares, Class A Common Shares or Class B Common
          Shares (other than a reclassification involving only the subdivision of
          outstanding Common Shares, Class A Common Shares and Class B Common Shares),
          (iv) to effect any consolidation or merger into or with (other than a merger of
          a Subsidiary into or with the Company), to effect any share exchange with or to
          effect any sale or other transfer (or to permit one or more of its Subsidiaries
          to effect any sale or other transfer), in one or more transactions, of 50% or
          more of the assets or earning power of the Company and its Subsidiaries (taken
          as a whole) to, any other Person, or (v) to effect the liquidation, dissolution
          or winding up of the Company, then, in each such case, the Company shall give
to           each holder of a Right Certificate, in accordance with Section 26
hereof, a           notice of such proposed action, which shall specify the record date
for the           purposes of such stock dividend, or distribution of rights or warrants,
or the           date on which such reclassification, consolidation, merger, share
exchange,           sale, transfer, liquidation, dissolution, or winding up is to take
place and the           date of participation therein by the holders of the Common
Shares, Class A           Common Shares or Class B Common Shares if any such date is to
be fixed, and such           notice shall be so given in the case of any action covered
by clause (i) or           (ii) above at least 10 days prior to the record date for
determining holders of           Common Shares, Class A Common Shares or Class B Common
Shares for purposes of           such action, and in the case of any such other action,
at least 10 days prior to           the date of the taking of such proposed action or the
date of participation           therein by the holders of the Common Shares, Class A
Common Shares or Class B           Common Shares whichever shall be the earlier.  

	 	        (b)              In
case any Section 11(a)(ii) Event or Section 13 Event shall occur, then, in           any
case, the Company shall as soon as practicable thereafter give to each           holder
of a Right Certificate, in accordance with Section 26 hereof, a           notice
of the occurrence of such event, which notice shall include a brief           summary of
the Section 11(a)(ii) Event or Section 13 Event, as the case may be,           and the
consequences thereof to holders of Rights.  

	 	        (c)              In
case of an adjustment to the number of Common Shares or Class A Common Shares
          subject to receipt upon exercise of the Rights shall occur pursuant to Section
7(a) of this Agreement, then the Company shall give to (i) the           Rights
Agent, in accordance with Section 26 hereof, notice of such           adjustment
as soon as practicable and (ii) each holder of a Right Certificate,           in
accordance with Section 26 hereof, notice of such adjustment no later
          than the earlier of the payment date of the Company’s next regular
          quarterly cash dividend on Common Shares, Class A Common Shares or Class B
          Common Shares payable after the amendment date, or 100 days after the amendment
          date.  

        Section
26.           Notices. 

32 

	 	        (a)              Notices
or demands authorized by this Agreement to be given or made by the           Rights Agent
or by the holder of any Right Certificate to or on the Company           shall be
sufficiently given or made if sent by first-class mail, postage           prepaid,
addressed (until another address is filed in writing with the Rights           Agent) as
follows:  

	 	
Bandag,
Incorporated                                             
2905 North Highway 61
                                            
Muscatine, Iowa 52671
                                            
Attention:  Secretary 

	 	        (b)              Subject
to the provisions of Section 21 hereof, any notice or demand           authorized
by this Agreement to be given or made by the Company or by the holder           of any
Right Certificate to or on the Rights Agent shall be sufficiently given           or made
if sent by first-class mail, postage prepaid, addressed (until another           address
is filed in writing with the Company) as follows:  

	 	
Computershare
Trust Company, N.A.                                             
One North State Street,
Suite 0674                                             
Chicago, Illinois 60602
                                            
Attention:  Relationship Management 

	 	        (c)              Notices
or demands authorized by this Agreement to be given or made by the           Company or
the Rights Agent to the holder of any Right Certificate shall be           sufficiently
given or made if sent by first-class mail, postage prepaid,           addressed to such
holder at the address of such holder as shown on the registry           books of the
Company.  

        Section
27.     Supplements and Amendments. Prior to the Distribution Date and subject to the
penultimate sentence of this Section 27, the Company may and the Rights Agent
shall, if the Company so directs, supplement or amend any provision of this Agreement
without the approval of any holders of certificates representing Common Shares, Class A
Common Shares or Class B Common Shares. Without limiting the foregoing, the Company may
at any time prior to such time as any Person becomes an Acquiring Person amend this
Agreement to lower the thresholds set forth in Sections 1(a) and 3(a) hereof
from 20% beneficial ownership of the Common Shares then outstanding, 20% beneficial
ownership of the Class A Common Shares then outstanding and 20% beneficial ownership of
the total number of Common Shares and Class A Common Shares then outstanding to not less
than 10% beneficial ownership of the Common Shares, 10% beneficial ownership of the Class
A Common Shares and 10% of the total number of Common Shares and Class A Common Shares
then outstanding, with appropriate exceptions for Persons then beneficially owning Common
Shares of the Company constituting a percentage of the number of Common Shares, Class A
Common Shares or Common Shares and Class A Common Shares together then outstanding equal
to or in excess of the new threshold. From and after the Distribution Date and subject to
the penultimate sentence of this Section 27, the Company and the Rights Agent
shall, if the Company so directs, supplement or amend this Agreement without the approval
of any holders of Right Certificates in order (i) to cure any ambiguity, (ii) to
correct or supplement any provision contained herein which may be defective or
inconsistent with any other provision herein, (iii) to shorten or lengthen any time
period hereunder or (v) to change or supplement the provisions hereunder in any
manner which the Company may deem necessary or desirable and which shall not adversely
affect the interests of the holders of Right Certificates (other than an Acquiring Person
or an Affiliate or Associate of an Acquiring Person); provided, however,
that from and after the Distribution Date this Agreement may not be supplemented or
amended to lengthen, pursuant to clause (iii) of this sentence, (A) a time
period relating to when the Rights may be redeemed at such time as the Rights are not
then redeemable, or (B) any other time period unless such lengthening is for the
purpose of protecting, enhancing or clarifying the rights of, and/or the benefits to, the
holders of Rights. Upon the delivery of a certificate from an appropriate officer of the
Company which states that the proposed supplement or amendment is in compliance with the
terms of this Section 27, the Rights Agent shall execute such supplement or
amendment. Notwithstanding anything contained in this Agreement to the contrary, the
Rights Agent may, but shall not be obligated to, enter into any supplement or amendment
that affects the Rights Agent’s own rights, duties, obligations or immunities under
this Agreement. Notwithstanding anything contained in this Agreement to the contrary, no
supplement or amendment shall be made which reduces the then effective Redemption Price
or moves to an earlier date the then effective Final Expiration Date. Prior to the
Distribution Date, the interests of the holders of Rights shall be deemed coincident with
the interests of the holders of Common Shares or Class A Common Shares.  

33 

        Section
28.     Successors. All the covenants and provisions of this Agreement by or for the
benefit of the Company or the Rights Agent shall bind and inure to the benefit of their
respective successors and assigns hereunder.  

        Section
29.     Benefits of this Agreement. Nothing in this Agreement shall be construed to
give to any person or corporation other than the Company, the Rights Agent and the
registered holders of the Right Certificates (and, prior to the Distribution Date, the
Common Shares, Class A Common Shares and Class B Common Shares) any legal or equitable
right, remedy or claim under this Agreement; but this Agreement shall be for the sole and
exclusive benefit of the Company, the Rights Agent and the registered holders of the
Right Certificates (and, prior to the Distribution Date, the Common Shares, Class A
Common Shares and Class B Common Shares).  

        Section
30.     Severability. If any term, provision, covenant or restriction of this
Agreement is held by a court of competent jurisdiction or other authority to be invalid,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions
of this Agreement shall remain in full force and effect and shall in no way be affected,
impaired or invalidated.  

        Section
31.    Governing Law. This Agreement and each Right
Certificate issued hereunder shall be deemed to be a contract made under the laws of the
State of Iowa, except that the laws of the State of Delaware shall govern the rights and
duties of the Rights Agent hereunder, and for all purposes shall be governed by and
construed in accordance with the laws of the State of Iowa applicable to contracts to be
made and performed entirely within such State (other than with respect to the rights and
duties of the Rights Agent, which shall be governed by and construed in accordance with
the laws of the State of Delaware).  

        Section
32.     Counterparts. This Agreement may be executed in any number of counterparts and
each of such counterparts shall for all purposes be deemed to be an original, and all
such counterparts shall together constitute but one and the same instrument.  

34 

        Section
33.     Descriptive Headings. Descriptive headings of the several Sections of this
Agreement are inserted for convenience only and shall not control or affect the meaning
or construction of any of the provisions hereof.  

	 	        Section
34.    Determinations and Actions by the Board of Directors.
(a)     For all purposes of this Agreement, any calculation of the number of Common Shares,
Class A Common Shares or Class B Common Shares outstanding at any particular time,
including for purposes of determining the particular percentage of such outstanding
Common Shares or Class A Common Shares of which any Person is the Beneficial Owner, shall
be made in accordance with the last sentence of Rule 13d-3(d)(1)(i) of the General Rules
and Regulations promulgated under the Exchange Act. The Board of Directors of the Company
shall have the exclusive power and authority to administer this Agreement and to exercise
all rights and powers specifically granted to the Board or to the Company, or as may be
necessary or advisable in the administration of this Agreement, including, without
limitation, the right and power to (a) interpret the provisions of this Agreement,
and (b) make all determinations deemed necessary or advisable for the administration of
this Agreement (including a determination to redeem or not redeem the Rights or to amend
the Agreement and any determination as to whether actions or any Person shall be such as
to cause such Person to beneficially own shares held by another Person). All such
actions, calculations, interpretations and determinations (including, for purposes of
clause (ii) below, all omissions with respect to the foregoing) which are done or made by
the Board of the Company in good faith (the Rights Agent may assume the Board acted in
good faith), shall (i) be final, conclusive and binding on the Company, the Rights Agent,
the holders of the Rights and all other parties, and (ii) not subject the Board of the
Company to any liability to the holders of the Rights.  

	 	        (b)              Notwithstanding
any other provision hereof, it is understood that the Nominating           and Corporate
Governance Committee shall review and evaluate this Agreement in           order to
consider whether the maintenance of this Agreement continues to be in           the best
interests of the Company, its stockholders and other relevant           constituencies of
the Company at least once every three years. Following each           such review, the
Nominating and Corporate Governance Committee shall communicate           its conclusions
to the full Board of Directors, including any recommendation in           light thereof
as to whether this Agreement should be modified or the Rights           should be
redeemed.  

	 	        (c)              The
Nominating and Corporate Governance Committee and the Board of Directors,           when
considering whether this Agreement should be modified or the Rights should           be
redeemed, shall have the power to set their own agenda and to retain at the
          expense of the Company their choice of legal counsel, investment bankers and
          other advisors. The Nominating and Corporate Governance Committee and the Board
          of Directors, when considering whether this Agreement should be modified or the
          Rights should be redeemed, shall have the authority to review all information
of           the Company and to consider any and all factors they deem relevant to an
          evaluation of whether this Agreement should be modified or the Rights should be
          redeemed.  

[Signature page
follows on next page.]

35 

        IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
attested, all as of the day and year first above written. 

	Attest:	BANDAG, INCORPORATED
	

By:______________________________________	By:______________________________________
	Name:	Name:
	
Title:	Title:
	

Attest:	COMPUTERSHARE TRUST COMPANY, N.A.
	

By:______________________________________	By:______________________________________
	Name:	Name:
	
Title:	Title:

Exhibit A-1 

FORM OF COMMON SHARE
PURCHASE RIGHT CERTIFICATE 

Certificate No. R- Common
Share Purchase Right 

_____ Common Share
Purchase Rights 

	 	
NOT
EXERCISABLE AFTER AUGUST 20, 2016 OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS. THE RIGHTS
ARE SUBJECT TO REDEMPTION AT $.001 PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE
RIGHTS AGREEMENT.

Common Share Purchase
Right Certificate 

BANDAG, INCORPORATED 

        This
certifies that __________, or registered assigns, is the registered owner of the number of
Common Share Purchase Rights set forth above, each of which entitles the owner thereof,
subject to the terms, provisions and conditions of the Rights Agreement, dated as of
August 21, 2006, and as such agreement may be amended, (the “Rights
Agreement”), between Bandag, Incorporated, an Iowa corporation (the
“Company”), and Computershare Trust Company, N.A. (the “Rights
Agent”), to purchase from the Company at any time after the Distribution Date (as
such term is defined in the Rights Agreement) and prior to 5:00 P.M., Eastern time, on
August 20, 2016, at the principal office of the Rights Agent, or at the office of its
successor as Rights Agent, one-half of one fully paid nonassessable share of Common Stock,
par value $1.00, of the Company (the “Common Shares) at a purchase price of
$100 per Common Share (the “Common Shares Purchase Price”) (equivalent to
$50 for each one-half of one Common Share), upon presentation and surrender of this Common
Share Purchase Right Certificate with the Form of Election to Purchase duly executed. The
number of Common Share Purchase Rights evidenced by this Common Share Purchase Right
Certificate (and the number of Common Shares which may be purchased upon exercise hereof)
set forth above, and the Common Shares Purchase Price set forth above, are the number and
Common Shares Purchase Price as of August 21, 2006, based on the Common Shares as
constituted at such date. As provided in the Rights Agreement, the Common Shares Purchase
Price and the number of Common Shares which may be purchased upon the exercise of the
Common Share Purchase Rights evidenced by this Common Share Purchase Right Certificate are
subject to modification and adjustment upon the happening of certain events. 

        This
Common Share Purchase Right Certificate is subject to all of the terms, provisions and
conditions of the Rights Agreement, which terms, provisions and conditions are hereby
incorporated herein by reference and made a part hereof and to which Rights Agreement
reference is hereby made for a full description of the rights, limitations of rights,
obligations, duties and immunities hereunder of the Rights Agent, the Company and the
holders of the Common Share Purchase Right Certificates. Copies of the Rights Agreement
are on file at the principal executive offices of the Company and the above-mentioned
offices of the Rights Agent. 

A1-1 

        This
Common Share Purchase Right Certificate, with or without other Common Share Purchase Right
Certificates, upon surrender at the principal office of the Rights Agent, may be exchanged
for another Common Share Purchase Right Certificate or Common Share Purchase Right
Certificates of like tenor and date evidencing Common Share Purchase Rights entitling the
holder to purchase a like aggregate number of Common Shares as the Common Share Purchase
Rights evidenced by the Common Share Purchase Right Certificate or Common Share Purchase
Right Certificates surrendered shall have entitled such holder to purchase. If this Common
Share Purchase Right Certificate shall be exercised in part, the holder shall be entitled
to receive upon surrender hereof another Common Share Purchase Right Certificate or Common
Share Purchase Right Certificates for the number of whole Common Share Purchase Rights not
exercised. 

        Subject
to the provisions of the Rights Agreement, the Common Share Purchase Rights evidenced by
this Certificate (i) may be redeemed by the Company at a redemption price of $.001 per
Right or (ii) may be exchanged in whole or in part for Common Shares. 

        The
Board of Directors of the Company may, at its option, at any time after any Person becomes
an Acquiring Person, but prior to such Person’s acquisition of 50% or more of the
outstanding Common Shares, 50% or more of the outstanding shares of Class A Common Stock,
par value $1.00 (the “Class A Common Shares”), or 50% or more of the
outstanding Common Shares and Class A Common Shares on a combined basis, exchange the
Rights evidenced by the Certificate for Common Shares, at an exchange ratio of one-half of
one Common Share per Right, subject to adjustment, as provided in the Rights Agreement. 

        No
fractional Common Shares will be issued upon the exercise of any Common Share Purchase
Right or Common Share Purchase Rights evidenced hereby, but in lieu thereof a cash payment
will be made, as provided in the Rights Agreement. No Common Share Purchase Rights may be
exercised that would entitle the holder to any fraction of a Common Share greater than
one-half of a Common Share unless concurrently therewith such holder purchases an
additional fraction of a Common Share which, when added to the number of Common Shares to
be received upon such exercise, equals an integral number of Common Shares, as provided in
the Rights Agreement. 

        No
holder of this Common Share Purchase Right Certificate shall be entitled to vote or
receive dividends or be deemed for any purpose the holder of the Common Shares or of any
other securities of the Company which may at any time be issuable on the exercise hereof,
nor shall anything contained in the Rights Agreement or herein be construed to confer upon
the holder hereof, as such, any of the rights of a shareholder of the Company or any right
to vote for the election of directors or upon any matter submitted to shareholders at any
meeting thereof, or to give or withhold consent to any corporate action, or to receive
notice of meetings or other actions affecting shareholders (except as provided in the
Rights Agreement), or to receive dividends, distributions or subscription rights, or
otherwise, until the Common Share Purchase Right or Common Share Purchase Rights evidenced
by this Common Share Purchase Right Certificate shall have been exercised as provided in
the Rights Agreement. 

        This
Common Share Purchase Right Certificate shall not be valid or obligatory for any purpose
until it shall have been countersigned by the Rights Agent. 

[Signature page
follows on next page.] 

A1-2 

        WITNESS
 the  facsimile  signature  of the  proper  officers  of the  Company  and its  corporate
 seal.  Dated as of ___________, 20__.  

	Attest:	BANDAG, INCORPORATED
	

By:______________________________________	By:______________________________________
	Name:	Name:
	
Title:	Title:
	

Attest:	COMPUTERSHARE TRUST COMPANY, N.A.
	

By:______________________________________	By:______________________________________
	Name:	Name:
	
Title:	Title:

A1-3 

FORM OF REVERSE SIDE OF
COMMON SHARE PURCHASE RIGHT CERTIFICATE 

FORM OF ASSIGNMENT

(To be executed by the registered
holder if such holder desires to transfer the Common Share Purchase Right Certificate.) 

        FOR
VALUE RECEIVED _____________________________ hereby sells, assigns and transfers unto
(Please print name and address of transferee) 

 ________________________________________________________________________________________________________
this Common Share
Purchase Right Certificate, together with all right, title and interest therein, and does
hereby irrevocably constitute and appoint ____________ Attorney, to transfer the within
Common Share Purchase Right Certificate on the books of the within-named Company, with
full power of substitution. 

Dated:
________________________, 20__ 

		___________________________________________________
	 	Signature

Signature Guaranteed: 

        The
undersigned hereby certifies that the Common Share Purchase Rights evidenced by this
Common Share Purchase Right Certificate are not beneficially owned by an Acquiring Person
or an Affiliate or Associate thereof (as defined in the Rights Agreement). 

		___________________________________________________
	 	Signature

A1-4 

FORM OF REVERSE SIDE OF
COMMON SHARE PURCHASE RIGHT CERTIFICATE — CONTINUED 

FORM OF ELECTION TO
PURCHASE 

        (To
be executed if holder desires to exercise the Common Share Purchase Right Certificate.) 

To Bandag, Incorporated: 

        The undersigned
hereby irrevocably elects to exercise ________________ Common Share Purchase Rights
represented by this Common Share Purchase Right Certificate to purchase the Common Shares
issuable upon the exercise of such Common Share Purchase Rights and requests that
certificates for such Common Shares be issued in the name of: 

Please insert social security or
other identifying number 

___________________________________________________________________________________________________________________
(Please print name and
address) 

___________________________________________________________________________________________________________________ 

If such number of Common Share
Purchase Rights shall not be all the Common Share Purchase Rights evidenced by this Common
Share Purchase Right Certificate, a new Common Share Purchase Right Certificate for the
balance remaining of such Common Share Purchase Rights shall be registered in the name of
and delivered to: 

Please insert social security or
other identifying number 

___________________________________________________________________________________________________________________
(Please print name and
address) 

___________________________________________________________________________________________________________________ 

Dated __________________,
20__ 

		___________________________________________________
	 	Signature

Signature Guaranteed: 

        Signatures
must be guaranteed by a member firm of a registered national securities exchange, a member
of the National Association of Securities Dealers, Inc., or a commercial bank or trust
company having an office or correspondent in the United States. 

A1-5 

FORM OF REVERSE SIDE OF
COMMON SHARE PURCHASE RIGHT CERTIFICATE — CONTINUED 

        The
undersigned hereby certifies that the Common Share Purchase Rights evidenced by this
Common Share Purchase Right Certificate are not beneficially owned by an Acquiring Person
or an Affiliate or Associate thereof (as defined in the Rights Agreement). 

		___________________________________________________
	 	Signature

NOTICE 

        The
signature in the foregoing Forms of Assignment and Election must conform to the name as
written upon the face of this Common Share Purchase Right Certificate in every particular,
without alteration or enlargement or any change whatsoever. 

        In
the event the certification set forth above in the Form of Assignment or the Form of
Election to Purchase, as the case may be, is not completed, the Company and the Rights
Agent will deem the beneficial owner of the Common Share Purchase Rights evidenced by this
Common Share Purchase Right Certificate to be an Acquiring Person or an Affiliate or
Associate thereof (as defined in the Rights Agreement) and such Assignment or Election to
Purchase will not be honored. 

A1-6 

Exhibit A-2 

FORM OF CLASS A COMMON
SHARE PURCHASE RIGHT CERTIFICATE 

Certificate No. R-  Class A Common
Share Purchase Right 

_____ Class A Common
Share Purchase Rights 

	 	
NOT
EXERCISABLE AFTER AUGUST 20, 2016 OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS. THE RIGHTS
ARE SUBJECT TO REDEMPTION AT $.001 PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE
RIGHTS AGREEMENT.

Class A Common Share
Purchase Right Certificate 

BANDAG, INCORPORATED 

        This
certifies that __________, or registered assigns, is the registered owner of the number of
Class A Common Share Purchase Rights set forth above, each of which entitles the owner
thereof, subject to the terms, provisions and conditions of the Rights Agreement, dated as
of August 21, 2006, and as such agreement may be amended, (the “Rights
Agreement”), between Bandag, Incorporated, an Iowa corporation (the
“Company”), and Computershare Trust Company, N.A. (the “Rights
Agent”), to purchase from the Company at any time after the Distribution Date (as
such term is defined in the Rights Agreement) and prior to 5:00 P.M., Eastern time, on
August 20, 2016, at the principal office of the Rights Agent, or at the office of its
successor as Rights Agent, one-half of one fully paid nonassessable share of Class A
Common Stock, par value $1.00, of the Company (the “Class A Common
Shares”) at a purchase price of $100 per Class A Common Share (the “Class
A Common Shares Purchase Price”) (equivalent to $50 for each one-half of one
Class A Common Share), upon presentation and surrender of this Class A Common Share
Purchase Right Certificate with the Form of Election to Purchase duly executed. The number
of Class A Common Share Purchase Rights evidenced by this Class A Common Share Purchase
Right Certificate (and the number of Class A Common Shares which may be purchased upon
exercise hereof) set forth above, and the Class A Common Shares Purchase Price set forth
above, are the number and Class A Common Shares Purchase Price as of August 21, 2006,
based on the Class A Common Shares as constituted at such date. As provided in the Rights
Agreement, the Class A Common Shares Purchase Price and the number of Class A Common
Shares which may be purchased upon the exercise of the Class A Common Share Purchase
Rights evidenced by this Class A Common Share Purchase Right Certificate are subject to
modification and adjustment upon the happening of certain events. 

        This
Class A Common Share Purchase Right Certificate is subject to all of the terms, provisions
and conditions of the Rights Agreement, which terms, provisions and conditions are hereby
incorporated herein by reference and made a part hereof and to which Rights Agreement
reference is hereby made for a full description of the rights, limitations of rights,
obligations, duties and immunities hereunder of the Rights Agent, the Company and the
holders of the Class A Common Share Purchase Right Certificates. Copies of the Rights
Agreement are on file at the principal executive offices of the Company and the
above-mentioned offices of the Rights Agent. 

A2-1 

        This
Class A Common Share Purchase Right Certificate, with or without other Class A Common
Share Purchase Right Certificates, upon surrender at the principal office of the Rights
Agent, may be exchanged for another Class A Common Share Purchase Right Certificate or
Class A Common Share Purchase Right Certificates of like tenor and date evidencing Class A
Common Share Purchase Rights entitling the holder to purchase a like aggregate number of
Class A Common Shares as the Class A Common Share Purchase Rights evidenced by the Class A
Common Share Purchase Right Certificate or Class A Common Share Purchase Right
Certificates surrendered shall have entitled such holder to purchase. If this Class A
Common Share Purchase Right Certificate shall be exercised in part, the holder shall be
entitled to receive upon surrender hereof another Class A Common Share Purchase Right
Certificate or Class A Common Share Purchase Right Certificates for the number of whole
Class A Common Share Purchase Rights not exercised. 

        Subject
to the provisions of the Rights Agreement, the Class A Common Share Purchase Rights
evidenced by this Certificate (i) may be redeemed by the Company at a redemption price of
$.001 per Right or (ii) may be exchanged in whole or in part for Class A Common Shares. 

        The
Board of Directors of the Company may, at its option, at any time after any Person becomes
an Acquiring Person, but prior to such Person’s acquisition of 50% or more of the
outstanding Class A Common Shares, 50% or more of the outstanding shares of Common Stock,
par value $1.00 (the “Common Shares”), or 50% or more of the outstanding
Class A Common Shares and Common Shares on a combined basis, exchange the Rights evidenced
by the Certificate for Common Shares, at an exchange ratio of one-half of one Common Share
per Right, subject to adjustment, as provided in the Rights Agreement. 

        No
fractional Class A Common Shares will be issued upon the exercise of any Class A Common
Share Purchase Right or Class A Common Share Purchase Rights evidenced hereby, but in lieu
thereof a cash payment will be made, as provided in the Rights Agreement. No Class A
Common Share Purchase Rights may be exercised that would entitle the holder to any
fraction of a Class A Common Share greater than one-half of a Class A Common Share unless
concurrently therewith such holder purchases an additional fraction of a Class A Common
Share which, when added to the number of Class A Common Shares to be received upon such
exercise, equals an integral number of Class A Common Shares, as provided in the Rights
Agreement. 

        No
holder of this Class A Common Share Purchase Right Certificate shall be entitled to vote
or receive dividends or be deemed for any purpose the holder of the Class A Common Shares
or of any other securities of the Company which may at any time be issuable on the
exercise hereof, nor shall anything contained in the Rights Agreement or herein be
construed to confer upon the holder hereof, as such, any of the rights of a shareholder of
the Company or any right to vote for the election of directors or upon any matter
submitted to shareholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting shareholders
(except as provided in the Rights Agreement), or to receive dividends, distributions or
subscription rights, or otherwise, until the Class A Common Share Purchase Right or Class
A Common Share Purchase Rights evidenced by this Class A Common Share Purchase Right
Certificate shall have been exercised as provided in the Rights Agreement. 

        This
Class A Common Share Purchase Right Certificate shall not be valid or obligatory for any
purpose until it shall have been countersigned by the Rights Agent. 

[Signature page
follows on next page.] 

A2-2 

        WITNESS
 the  facsimile  signature  of the  proper  officers  of the  Company  and its  corporate
 seal.  Dated as of  ___________, 20__.  

	Attest:	BANDAG, INCORPORATED
	

By:______________________________________	By:______________________________________
	Name:	Name:
	
Title:	Title:
	

Attest:	COMPUTERSHARE TRUST COMPANY, N.A.
	

By:______________________________________	By:______________________________________
	Name:	Name:
	
Title:	Title:

A2-3 

FORM OF REVERSE SIDE OF
CLASS A COMMON SHARE PURCHASE RIGHT CERTIFICATE 

FORM OF ASSIGNMENT 

(To be executed by the registered
holder if such holder desires to transfer the Class A Common Share Purchase Right
Certificate.) 

        FOR
VALUE RECEIVED _____________________________ hereby sells, assigns and transfers unto
(Please print name and address of transferee) 

____________________________________________________________________________________________________________
this Class A Common
Share Purchase Right Certificate, together with all right, title and interest therein, and
does hereby irrevocably constitute and appoint ____________ Attorney, to transfer the
within Class A Common Share Purchase Right Certificate on the books of the within-named
Company, with full power of substitution. 

Dated:
________________________, 20__ 

		___________________________________________________
	 	Signature

Signature Guaranteed: 

        The
undersigned hereby certifies that the Class A Common Share Purchase Rights evidenced by
this Class A Common Share Purchase Right Certificate are not beneficially owned by an
Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights
Agreement). 

		___________________________________________________
	 	Signature

     

A2-4 

FORM OF REVERSE SIDE OF CLASS A
COMMON SHARE PURCHASE RIGHT CERTIFICATE -- CONTINUED 

FORM OF ELECTION TO
PURCHASE 

        (To
be executed if holder desires to exercise the Class A Common Share Purchase Right
Certificate.) 

To Bandag, Incorporated: 

        The
undersigned hereby irrevocably elects to exercise ________________ Class A Common Share
Purchase Rights represented by this Class A Common Share Purchase Right Certificate to
purchase the Class A Common Shares issuable upon the exercise of such Class A Common Share
Purchase Rights and requests that certificates for such Class A Common Shares be issued in
the name of: 

Please insert social security or
other identifying number 

___________________________________________________________________________________________________________________
(Please print name and
address) 

___________________________________________________________________________________________________________________ 

If such number of Class A Common
Share Purchase Rights shall not be all the Class A Common Share Purchase Rights evidenced
by this Class A Common Share Purchase Right Certificate, a new Class A Common Share
Purchase Right Certificate for the balance remaining of such Class A Common Share Purchase
Rights shall be registered in the name of and delivered to: 

Please insert social security or
other identifying number 

___________________________________________________________________________________________________________________
(Please print name and
address) 

___________________________________________________________________________________________________________________ 

Dated __________________,
20__ 

		___________________________________________________
	 	Signature

Signature Guaranteed: 

        Signatures
must be guaranteed by a member firm of a registered national securities exchange, a member
of the National Association of Securities Dealers, Inc., or a commercial bank or trust
company having an office or correspondent in the United States. 

A2-5 

FORM OF REVERSE SIDE OF CLASS A
COMMON SHARE PURCHASE RIGHT CERTIFICATE -- CONTINUED 

     

        The
undersigned hereby certifies that the Class A Common Share Purchase Rights evidenced by
this Class A Common Share Purchase Right Certificate are not beneficially owned by an
Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights
Agreement). 

		___________________________________________________
	 	Signature

     

NOTICE 

        The
signature in the foregoing Forms of Assignment and Election must conform to the name as
written upon the face of this Class A Common Share Purchase Right Certificate in every
particular, without alteration or enlargement or any change whatsoever. 

        In
the event the certification set forth above in the Form of Assignment or the Form of
Election to Purchase, as the case may be, is not completed, the Company and the Rights
Agent will deem the beneficial owner of the Class A Common Share Purchase Rights evidenced
by this Class A Common Share Purchase Right Certificate to be an Acquiring Person or an
Affiliate or Associate thereof (as defined in the Rights Agreement) and such Assignment or
Election to Purchase will not be honored. 

A2-6 

Exhibit B 

BANDAG, INCORPORATED 

SUMMARY OF RIGHTS TO
PURCHASE SHARES 

        On
August 21, 2006, the Board of Directors of Bandag, Incorporated (the
“Company”) declared a dividend of (a) one common share purchase right (a
“Common Share Purchase Right”) for each outstanding share of common
stock, par value $1.00, of the Company (the “Common Shares”) and each
outstanding share of class B common stock, par value $1.00, of the Company (the
“Class B Common Shares”) and (b) one class A common share purchase right
(a “Class A Common Share Purchase Right”) (the Class A Common Share
Purchase Rights and Common Share Purchase Rights being collectively referred to as
“Rights”) for each outstanding share of class A common stock, par value
$1.00, of the Company (the “Class A Common Shares”). The dividend is
payable on September 12, 2006 to the shareholders of record on September 12, 2006 (the
“Record Date”). Each Common Share Purchase Right or Class A Common Share
Purchase Right entitles the registered holder to purchase from the Company one-half of one
Common Share or one-half of one Class A Common Share, as applicable, at a price of $100
per Common Share (equivalent to $50 for each one-half of one Common Share) (the
“Common Shares Purchase Price”) or a price of $100 per Class A Common
Share (equivalent to $50 for each one-half of one Class A Common Share) (the
“Class A Common Shares Purchase Price”) (when used without further
specification as to which, the Common Shares Purchase Price and Class A Common Shares
Purchase Price being collectively referred to as the “Purchase Price”),
subject to adjustment. The description and terms of the Rights are set forth in a Rights
Agreement (the “Rights Agreement”) between the Company and Computershare
Trust Company, N.A. as Rights Agent. 

        Until
the earlier to occur of (i) 10 days following a public announcement that a person or
group of affiliated or associated persons, other than any member of the Carver Family (as
defined in the Rights Agreement), the Company, any subsidiary of the Company, any
employee benefit plan of the Company or of any subsidiary of the Company, or any entity
holding Common Shares or Class A Common Shares for or pursuant to the terms of any such
plan, or any trustee, administrator or fiduciary of such a plan (an “Acquiring
Person”), has acquired beneficial ownership of 20% or more of the outstanding
Common Shares, 20% or more of the outstanding Class A Common Shares or 20% or more of the
outstanding Common Shares and Class A Common Shares on a combined basis (the “Shares
Acquisition Date”) or (ii) 10 business days following the commencement of, or
announcement of an intention to make, a tender offer or exchange offer the consummation
of which would result in the beneficial ownership by a person or group of 20% or more of
such outstanding Common Shares, 20% or more of such outstanding Class A Common Shares or
20% or more of such outstanding Common Shares and Class A Common Shares on a combined
basis (the earlier of such dates being called the “Distribution Date”),
the Rights will be evidenced, with respect to any of the Common Share, Class A Common
Share or Class B Common Share certificates outstanding as of the Record Date, by such
Common Share, Class A Common Share or Class B Common Share certificate, as applicable.
The Rights Agreement excludes from the definition of Acquiring Person any shareholders
who or which, as of August 21, 2006, own in excess of the thresholds, as long as they do
not purchase any additional Common Shares or Class A Common Shares. 

B-1 

        The
Rights Agreement provides that, until the Distribution Date, the Rights will be
transferred with and only with the Common Shares, Class A Common Shares and Class B Common
Shares. Until the Distribution Date (or earlier redemption or expiration of the Rights),
new Common Share, Class A Common Share or Class B Common Share certificates issued after
the Record Date, upon transfer, conversion or new issuance of Common Shares, Class A
Common Shares or Class B Common Shares, will contain a notation incorporating the Rights
Agreement by reference. Until the Distribution Date (or earlier redemption or expiration
of the Rights), the surrender for transfer of any certificates for Common Shares, Class A
Common Shares or Class B Common Shares outstanding as of the Record Date, even without
such notation being attached thereto, will also
constitute the transfer of the Rights associated with the Common Shares, Class A Common
Shares or Class B Common Shares represented by such certificate. As soon as practicable
following the Distribution Date, separate certificates evidencing the Rights
(“Right Certificates”) will be mailed to holders of record of the Common
Shares, Class A Common Shares and Class B Common Shares as of the close of business on the
Distribution Date and such separate Right Certificates alone will evidence the Rights. 

        The
Rights are not exercisable until the Distribution Date. The Rights will expire on August
20, 2016, unless the Rights are earlier redeemed or exchanged by the Company, in each
case, as described below. 

        The
Purchase Price payable, and the number of Common Shares or Class A Common Shares, as
appropriate, or other securities or property issuable, upon exercise of the Rights are
subject to adjustment from time to time to prevent dilution (i) in the event of a stock
dividend on, or a subdivision, combination or reclassification of, the Common Shares or
Class A Common Shares (except as further provided in the Rights Agreement), (ii) upon the
grant to holders of the Common Shares or Class A Common Shares of certain rights or
warrants to subscribe for or purchase Common Shares or Class A Common Shares at a price,
or securities convertible into Common Shares or Class A Common Shares with a conversion
price, less than the then current market price of the Common Shares or Class A Common
Shares, as applicable, or (iii) upon the distribution to holders of the Common Shares or
Class A Common Shares of evidences of indebtedness or assets (excluding regular quarterly
cash dividends or dividends payable in Common Shares or Class A Common Shares, as
applicable) or of subscription rights or warrants (other than those referred to above). 

        In
the event (a “Flip-In Event”) any Person (as defined in the Rights
Agreement) shall become an Acquiring Person other than in a transaction that would be a
Flip-Over Event (as defined below) proper provision will be made so that each holder of a
Right will have a right to receive that number of Common Shares or Class A Common Shares
that at the time of such Flip-In Event have a per share market price equal to two times
the exercise price of the Right. Notwithstanding any of the foregoing, following the
occurrence of a Flip-In Event all Rights that are or were acquired or beneficially owned
by an Acquiring Person, or any Associate or Affiliate of such Acquiring Person (each as
defined in the Rights Agreement), will be null and void. 

        In
the event that, at any time following the Shares Acquisition Date, (i) the Company is
acquired in a merger or other business combination transaction, (ii) the Company acquires
another entity in a merger or other business combination transaction or (iii) 50% or more
of its consolidated assets or earning power are sold (the events described in clauses
(i), (ii) and (iii) are herein referred to as “Flip-Over Events”),
each Right (other than Rights that are or were acquired or beneficially owned by an
Acquiring Person, or any Associate or Affiliate of such Acquiring Person) would entitle
holders to buy common stock of the acquiring company that would have a market value of
twice the exercise price per Right upon payment of the then current exercise price.  

B-2 

        Other
than provisions relating to the principal economic terms of the Rights, the terms of the
Rights may be amended by the Board of Directors of the Company without the consent of the
holders of the Rights, including an amendment to lower the threshold for exercisability of
the Rights from 20% to not less than 10%, with appropriate exceptions for a person or
group then beneficially owning Common Shares, Class A Common Shares or Common Shares and
Class A Common Shares in excess of 20% of the number of shares then outstanding,
except that from and after the Distribution Date no such amendment may adversely affect
the interests of the holders of the Rights.  

        At
least once every three years, the Company’s Nominating and Corporate Governance
Committee will evaluate the Rights Agreement in order to consider whether the maintenance
of the Rights Agreement continues to be in the best interests of the Company. 

        Until
a Right is exercised, the holder thereof, as such, will have no rights as a shareholder of
the Company, including, without limitation, the right to vote or to receive dividends. 

        A
copy of the Rights Agreement has been filed with the Securities and Exchange Commission as
an Exhibit to a Registration Statement on Form 8-A filed with respect to the Rights. A
copy of the Rights Agreement is available free of charge from the Company. This summary
description of the Rights does not purport to be complete and is qualified in its entirety
by reference to the Rights Agreement, which is hereby incorporated herein by reference. 

B-3

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