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                                                                    EXHIBIT 10.2

                  FIRST AMENDED EXECUTIVE EMPLOYMENT AGREEMENT


         This FIRST AMENDED EXECUTIVE EMPLOYMENT AGREEMENT ("Agreement") is made
and entered into as of the _____ day of __________________, 1998, to be
effective November 15, 1998 (the "Effective Date"), by and between GREYHOUND
LINES, INC. (together with its successors, the "Company") and JOHN WERNER
HAUGSLAND (the "Executive").

         WHEREAS, the Executive has considerable experience, expertise and
training in management related to the types of services offered by the Company;
and

         WHEREAS, the Executive and the Company entered into an Executive
Employment Agreement (the "Original Agreement"), which was effective May 15,
1995; and

         WHEREAS, the Company desires and intends to continue to employ the
Executive as the Executive Vice President and Chief Operating Officer of the
Company pursuant to the terms and conditions set forth in this Agreement; and

         WHEREAS, both the Company and the Executive have read and understood
the terms and provisions set forth in this Agreement, and have been afforded a
reasonable opportunity to review this Agreement.

         NOW, THEREFORE, in consideration of the mutual promises and covenants
set forth in this Employment Agreement, the Executive and the Company agree as
follows:

1.       COMPENSATION:  During his  employment  pursuant  to this  Agreement,  
the  Company  agrees to provide the Executive the following compensation:

         a. BASE SALARY: From the Effective Date until changed as provided in
this section, the Company agrees to pay the Executive an annual salary of
$305,000.00 (the "Base Salary"), payable in at least equal monthly installments
in accordance with the Company's ordinary payroll policies and procedures for
executive compensation. The Company and the Executive acknowledge that during
the employment of the Executive pursuant to this Agreement, the Executive's Base
Salary will be subject to an annual review and adjustment by the Board of
Directors of the Company (the "Board of Directors") but, in no event, will the
Executive's annual Base Salary be less than the amount set forth in this
section.

         b. BUSINESS EXPENSES: The Company agrees that the Executive shall be
entitled to reimbursement by the Company for all reasonable expenses (including
first class air travel) that the Executive may incur in the performance of his
duties and obligations under this Agreement, consistent with the Company's
policies for documentation, reimbursement and payment.

         c. INCENTIVE BONUS: The Company agrees that the Executive shall be
entitled to additional bonus compensation (the "Incentive Compensation") on
terms not less favorable than those applicable to other officers of the Company
(other than the President and Chief Executive 





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Officer of the Company). For the year ending December 31, 1998 and subsequent
years, the Executive shall be eligible for annual incentive bonus consideration
under the 1998 Management Incentive Plan (or its successor), starting with the
1998 plan year and continuing thereafter for the duration of this Agreement with
an annual Target Award of at least 45% of Base Salary for each respective year.

         d. EMPLOYEE BENEFITS: The parties acknowledge and agree that certain
employee benefits will be provided to the Executive incident to his employment
as Chief Operating Officer of the Company. Except as specifically modified by
this section, these employee benefits shall be governed by the applicable plan
documents, and the Executive shall be entitled to participate in all benefits
provided to officers of the Company on terms not less favorable than to other
officers of the Company (other than the President and Chief Executive Officer of
the Company). The Company agrees, however, that to the extent not prohibited by
law, the Company will provide Executive the benefits listed in this Subsection
and that the following provisions shall apply to any employee benefits provided
by the Company:

                  (1) SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN: For purposes of
the Greyhound Lines, Inc. Supplemental Executive Retirement Plan (the "SERP"),
all of the Executive's prior service with Greyhound Lines, Inc. will be credited
for all purposes under the SERP, the Executive shall be a designated person
eligible for coverage and benefits under the SERP as of the Effective Date, and
the Executive shall be entitled to an annual contribution of 20% of Executive's
annual Base Salary. Within ninety (90) days of the Effective Date of this
Agreement, the Company shall establish and fully fund a trust for the benefit of
the Executive to secure the payment of benefits provided to the Executive under
this Subsection.

                  (2) AUTOMOBILE ALLOWANCE: During the term of his employment
with the Company, the Executive shall be entitled to an automobile allowance, of
not less than $1,000.00 per month, commencing on the Effective Date of this
Agreement.

                  (3) LIFE INSURANCE: At all times during the term of this
Agreement, Executive will receive life insurance coverage as provided by the
Company on terms not less favorable than that provided to other executives of
the Company. In addition to any life insurance provided pursuant to the
preceding sentence, the Executive will be provided with Company-paid life
insurance which will provide death benefits in the event of his death in an
amount of at least $1,500,000.00 payable to the beneficiary or beneficiaries
named by the Executive. The Company shall have the right to purchase insurance
to fund its obligations to the Executive under this section; provided, however,
that any insurance company or companies selected by the Company to fund its
obligations under this Subsection must be the company or companies that
underwrite life insurance benefits covering other officers of the Company.

                  (4) PHYSICAL EXAMINATIONS: At least once a year, the Executive
will be entitled to a Company-paid physical examination at a clinic or doctor
mutually acceptable to the Executive and the Company.

                  (5) COUNTY CLUB DUES: The Company agrees to pay all initiation
fees and monthly membership dues on behalf of the Executive at a country club
mutually selected by the Executive and the Company.





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                  (6) ESTATE, TAX AND FINANCIAL PLANNING: During the term of his
employment with the Company, the Executive shall be entitled to $15,000 per year
for estate, tax and financial planning. Such reimbursement payments shall be
paid by the Company within a reasonable time after such expenses are incurred by
the Executive.

                  (7) LONG TERM DISABILITY: The Company will provide Executive
long-term disability coverage and benefits on terms which are not less favorable
than that provided to other executives of the Company but which will provide an
annual disability benefit to the Executive of at least fifty percent (50%) of
his expected annual Base Salary, payable for the year during which Executive was
disabled.

                  (8) VACATION: The Company will provide vacation to the
Executive on terms not less favorable than that provided to executive officers
of the Company. For purposes of determining the amount of vacation, Executive's
prior service with Greyhound Lines, Inc. (or any affiliate of Greyhound Lines,
Inc.) shall be deemed to be service with the Company.

                  (9) OTHER BENEFITS: For purposes of any and all other benefits
provided by the Company to its Chief Operating Officer, the Executive shall be
eligible for such benefits immediately on the Effective Date. Additionally, for
purposes of determining eligibility, funding or vesting with respect to any
other benefits, the Executive's prior service with Greyhound Lines, Inc. shall
be deemed to be prior service with the Company.

2. DURATION: The duration of this Agreement shall be defined and determined as
follows:

         a. INITIAL TERM: This Agreement shall continue in full force and effect
for three (3) years (the "Initial Term"), commencing on the Effective Date and
expiring on November 14, 2001 (the "Expiration Date"), unless terminated prior
to the Expiration Date in accordance with Subsection 2(c).

         b. RENEWAL: Notwithstanding Subsection 2(a), this Agreement shall
automatically renew for a period of two (2) years (the "Renewal Term") on the
Expiration Date unless either party gives effective written notice to the other
party of the party's intention not to renew this Agreement ("Notice of
Non-Renewal"), with or without Good Cause, at least ninety (90) days prior to
the Expiration Date. At the expiration of each Renewal Term, this Agreement
shall automatically renew for another two (2) year Renewal Term, unless and
until either gives Notice of Non-Renewal. If any Change of Control (as hereafter
defined) occurs on or after November 15, 1999, this Agreement will be deemed to
have renewed for a two (2) year period, and in such event, the Expiration
Date(s) will occur every two years from the date of such Change of Control.

         c. TERMINATION AND NON-RENEWAL: This Agreement may be terminated as
follows:

                  (1) DEATH: The Agreement will terminate in the event of the
Executive's death, provided, however, that the Executive's estate shall be paid
(a) the Base Salary through the 




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date of death and (b) a pro rata portion of the entire Annual Target Award of
Incentive Compensation (based upon the Executive's annual Base Salary), payable
when the Incentive Compensation payments are made to other executives of the
Company. The pro rata share will be calculated by the month of the date of death
(e.g., if the Executive's death should occur in July, the Executive's estate
shall receive 7/12 of the Annual Target Award of Incentive Compensation based
upon the Executive's annual Base Salary). In addition, the Executive's
designated beneficiaries shall be entitled to receive any life insurance
benefits provided to the Executive in accordance with the applicable plan
documents and/or insurance policies governing such benefits, including but not
limited to, the Life Insurance benefits set forth in Subsection l(d)(3) of this
Agreement.

                  (2) DISABILITY: The Company shall be entitled to terminate
this Agreement in the event the Executive becomes "disabled," as that term is
defined in the Greyhound Lines, Inc. Employee Long Term Disability Plan ("the
LTD Plan"), and is unable to perform the essential functions of his position,
with reasonable accommodation, for a period of one hundred eighty (180)
consecutive days. The Executive will be paid his Base Salary through the
expiration of such one hundred eighty day period and a pro rata portion of the
entire Annual Target Award of Incentive Compensation (based upon the Executive's
annual Base Salary) in accordance with the previous Subsection.

                  (3)      GOOD CAUSE:

                           (a) The Company shall be entitled to terminate this
Agreement by providing the Executive with written notice that the Company is
terminating the Agreement for Good Cause, as defined herein ("Notice of
Termination for Good Cause") at any time during his employment.

                           (b) The Company shall be entitled to terminate this
Agreement by communicating Notice of Non-Renewal for Good Cause, as defined
herein, at least ninety (90) days prior to the Expiration Date, or at least
ninety (90) days prior to the expiration of any Renewal Tenn or Extension.

                           (c) For purposes of this Agreement, "Good Cause"
shall be defined as follows:

                                    i) Any act or omission constituting fraud
                           under the law of the State of Texas; or

                                    ii) Conviction of, or a plea of nolo
                           contendere to, a felony; or

                                    iii) Use of illegal drugs; or

                                    iv) Embezzlement of Company property or
                           funds; or
                                    
                                    v) The material breach of any provision of
                           this Agreement; or continued gross neglect of his
                           duties under this Agreement; or unauthorized
                           competition with the Company during his employment




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                           pursuant to this Agreement; or unauthorized use of
                           Confidential Information (as defined in Section 9);
                           which, in any event, is materially detrimental to the
                           Company;

                           (d) In the event the Company believes "Good Cause"
exists for terminating this Agreement pursuant to Subsection (c)(v), the Company
shall be required to give the Executive written Notice of the acts or omissions
constituting "Good Cause" ("Cause Notice").

                           (e) No Notice of Termination for Good Cause or Notice
of Non-Renewal for Good Cause pursuant to Subsection (c)(v) shall be
communicated by the Company unless and until the Executive fails to cure such
acts or omissions within thirty (30) days after receipt of the Cause Notice.

                           (f) In the event the Company communicates a Notice of
Termination For Good Cause or Notice of Non-Renewal for Good Cause pursuant to
this section, the Executive shall have the right to a hearing before the
President/Chief Executive Officer, on a date determined by the President/Chief
Executive Officer not later than thirty (30) days after the date such Notice is
received, to contest the alleged "Good Cause" for the Notice of Termination or
Notice of Non-Renewal. The President/Chief Executive Officer shall provide the
Executive with written notice of his decision resolving any contest under this
section, and no termination or non-renewal of this Agreement shall be deemed to
be effective until such written notice is received by the Executive. In the
event that the President/Chief Executive Officer affirms the "Good Cause" for
termination or non-renewal, the Executive shall have the right to the Dispute
Resolution procedures set forth in Section 10.

                  (4)      WITHOUT GOOD CAUSE:

                           (a) The Company shall be entitled to terminate the
Executive's employment under this Agreement by providing a written Notice of
Termination "Without Good Cause" at any time during his employment, or by
providing a written Notice of Non-Renewal "Without Good Cause," as defined
herein, at least ninety (90) days prior to the Expiration Date or at least
ninety (90) days prior to the expiration of any Renewal Term or Extension.
Provided, however, that in the event of any Notice of Termination Without Good
Cause or Notice of Non-Renewal Without Good Cause, the Company shall be required
to pay Severance Pay in accordance with the Severance provisions in Section 5.

                           (b) Any termination of employment or non-renewal of
this Agreement which is not for "Good Cause," as defined above in Subsection
2(c)(3), or which does not result from the death or retirement of the Executive,
or the disability of the Executive, shall be deemed to be a termination or
non-renewal "Without Good Cause." Furthermore, in the event that the Company
communicates a Notice of Termination for Good Cause or a Notice of Non-Renewal
for Good Cause, and either the President/Chief Executive Officer [under
Subsection 2(c)(3)(f)] or an arbitration or a final, non-appealable judicial
proceeding [under Section 10] determine that no Good Cause exists or existed for
the Notice of Termination or Notice of Non-Renewal that was originally
communicated, then such Notice of Termination or Notice of Non-Renewal shall be



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deemed to have been communication of a Notice of Termination Without Good Cause
or Notice of Non-Renewal Without Good Cause, as appropriate, for all purposes
under this Agreement.

                  (5) RESIGNATION: The Executive shall be entitled to terminate
his employment under this Agreement by providing the Company with a written
Notice of Resignation at least ninety (90) days prior to his intended
resignation date, subject to the following provisions:


                           (a) RESIGNATION FOR GOOD REASON: The Executive shall
have the right to resign for any "Good Reason," as defined herein, and such
resignation shall be deemed to be a termination "Without Good Cause" as defined
in Subsection 2(c)(4) for all purposes under this Agreement, including the
Change of Control provisions set forth in Section 4 and the Severance provisions
set forth in Section 5. For purposes of this Section, the term "Good Reason"
shall be defined as:

                                    i) The Company's failure to perform any
                           material provision of this Agreement; or

                                    ii) Any material changes by the Company or
                           the Board of Directors in the authority, duties, or
                           responsibilities of the Executive under this
                           Agreement, without the written consent of the
                           Executive, other than a termination or non-renewal
                           for "Good Cause," as defined herein; or

                                    iii) Any request by the Board of Directors
                           that the Executive perform, assist, abet or approve
                           any act which is or could be construed to be illegal
                           under any federal, state or local law; or

                                    iv) Any requirement by the Board of
                           Directors that the Executive relocate from the
                           Dallas, Texas, metropolitan area without his consent;
                           or

                                    v) In the event the Company fails to
                           maintain adequate liability insurance coverage in
                           accordance with Section 8 of this Agreement, without
                           the written consent of the Executive.

                           (b) OPPORTUNITY TO CURE: In the event he believes
"Good Reason" exists for his resignation, the Executive shall be required to
give the President/Chief Executive Officer of the Company written notice of the
acts or omissions constituting Good Reason, and no Notice of Resignation with
Good Reason shall be communicated to the Company unless and until the Company
fails to cure such acts or omissions within thirty (30) days after receipt of
the notice described in this sentence. Any Notice of Resignation with Good
Reason shall be deemed to be effective immediately, and no other notice or
opportunity to cure shall be required.

                           (c) RESIGNATION WITHOUT GOOD REASON: Any resignation
by the Executive for any reason other than "Good Reason," as defined above,
shall be deemed to be a resignation "Without Good Reason." In the event of a
Resignation Without Good Reason, the





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Change of Control provisions in Section 4 (except during the thirteenth month
following the Change of Control as provided in Section 4) and the Severance
provisions in Section 5 shall be inapplicable.

3. RESPONSIBILITIES: The Executive and the Company acknowledge and agree that
the Executive shall be employed as Executive Vice President and Chief Operating
Officer of the Company. The Executive covenants and agrees that he will
faithfully devote his best efforts and full time, attention and skill to the
business of the Company as is necessary to perform his obligations under this
Agreement. The Executive shall report to the President and Chief Executive
Officer of the Company. The Executive shall have or perform no other business
responsibilities or obligations during the term of this Agreement without the
prior written approval of the President of the Company.

4. CHANGE OF CONTROL: The parties acknowledge that the Executive has agreed to
assume the position of Executive Vice President and Chief Operating Officer and
to enter into this Agreement based upon his confidence in the current
shareholders of the Company, the support of the Board of Directors, and the
continued execution of the current business strategy of the Company.
Accordingly, if the Company should undergo a "Change of Control" while the
Executive is employed by the Company or any parent or subsidiary corporation of
the Company, the parties agree as follows:

         a. VESTING OF STOCK INCENTIVES AND AWARDS: In the event of a Change of
Control, as defined in this section, all Stock Incentives and Awards provided in
Section 6 of this Agreement shall immediately become vested and exercisable, all
other equity incentive awards held by the Executive shall become fully vested
and all other stock options held by the Executive shall become fully
exercisable, effective on the date of the Change of Control or at such other
time as is necessary to permit the Executive to be treated with respect to
vesting and exercisability no less favorably than other shareholders.

         b. COMPENSATION: In the event that the employment of the Executive is
terminated:

                  (1) at any time within twenty four (24) months after the date
of a Change of Control, as defined in this section, by: (i) the Company
communicating a Notice of Termination Without Good Cause; (ii) the Company
communicating a Notice of Non-Renewal Without Good Cause, or (iii) the Executive
communicating a Notice of Resignation for Good Reason; or

                  (2) by the resignation of the Executive, whether with or
without Good Reason, within thirty (30) days of the first Anniversary Date
(i.e., one year from the date) of a Change of Control,

the Company agrees to pay to the Executive a lump sum cash payment equal to
three (3) times the sum of: (x) an amount equal to the Executive's then current,
annualized Base Salary, and (y) the greater of: (a) the applicable Annual Payout
of Incentive Compensation paid for the Plan Year immediately prior to the
termination, or (b) the full, non-pro rata Annual Target Award for Incentive
Compensation based upon Executive's annual Base Salary for the Plan Year in
which the termination occurs, which payment shall be paid within thirty (30)
days after the effective




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date of termination, non-renewal or resignation. The Company further agrees to
pay benefits to the Executive as provided in Subsection 5(d) for a period of
thirty-six (36) months.

         c. DEFINITIONS: For purposes of this Agreement and notwithstanding
anything in this Agreement to the contrary, a "Change of Control" shall be
deemed to occur at the same moment that a Change of Control is determined to
have occurred according to the definition of a Change of Control in the
Greyhound Lines, Inc. 1995 Long Term Stock Incentive Plan (the "LTSI Plan") as
that term is so defined as of the Effective Date of this Agreement and the
additional definitions contained in this Section. Any change in the definition
of the Change of Control in the LTSI Plan shall not be effective with respect to
Executive for purposes of this Agreement without the prior written approval of
Executive. For purposes of this Agreement and notwithstanding anything in this
Agreement to the contrary, a Change of Control will also be deemed to exist in
the event that any of the following occurs:

                  (1)      the persons who were members of the Board of
                           Directors immediately prior to a tender offer,
                           exchange offer, contested election or any combination
                           of the foregoing, cease at any time within twelve
                           (12) months thereafter, to constitute a majority of
                           the Board of Directors; or

                  (2)      a change in control is reported by the Company in
                           response to either Item 6(a) of Schedule 14A of
                           Regulations 14A promulgated under the Exchange Act or
                           Item 1 of Form 8-K promulgated under the Exchange
                           Act, which change in control has not been approved by
                           a majority of the Board of Directors then in office
                           who were directors at the beginning of two-year
                           period ending on the date the reported change in
                           control occurred.

For purposes of this Subsection, a sale of all or substantially all of the
assets of the Company shall be deemed to occur if any corporation, person or
group acting in concert (a "Person") as described in Subsection 14(d)(2) of the
Securities Exchange Act of 1934, as amended, acquires (or during the 12-month
period on the date of the most recent acquisition by such Person, has acquired)
gross assets of the Company that have an aggregate fair market value equal to
50% of the fair market value of all of the gross assets of the Company
immediately prior to such acquisition(s).

For purposes of this Agreement and notwithstanding anything in this Agreement to
the contrary, a Change of Control shall include any other transactions or series
of related transactions occurring which have substantially the same effect as
the transactions specified in the LTSI Plan or this Subsection.

         d. In the event a definition of Change of Control is adopted which is
more favorable to the Executive than the definition set forth in Subsection
4(c), in any stock option plan or in employment agreements applying to any
Company executives, other than the President and Chief Executive Officer, at the
option of the Executive through written notice to the Company at any time prior
to the expiration of 180 days following the occurrence of a Change of Control,
such language will immediately supersede and replace the language set forth in
Subsection 4(c).




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         e.       CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY.

                  (1) Anything in this Agreement to the contrary
notwithstanding, but subject to Section 4(d)(8), in the event that it shall be
determined (as hereafter provided) that any payment (other than the Gross-Up
payments provided for in this Section 4(e)) or distribution by the Company or
any of their affiliates to or for the benefit of the Executive, whether paid or
payable or distributed or distributable pursuant to the terms of this Agreement
or otherwise pursuant to or by reason of any other agreement, policy, plan,
program or arrangement, including without limitation any stock option,
performance share, performance unit, stock appreciation right or similar right,
or the lapse or termination of any restriction on or the vesting or
exercisability of any of the foregoing (a "Payment"), would be subject to the
excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as
amended (the "Code") (or any successor provision thereto) by reason of being
considered "contingent on a change in ownership or control" of the Company,
within the meaning of Section 280G of the Code (or any successor provision
thereto) or to any similar tax imposed by state or local law, or any interest or
penalties with respect to such tax (such tax or taxes, together with any such
interest and penalties, being hereafter collectively referred to as the "Excise
Tax"), then the Executive shall be entitled to receive an additional payment or
payments (collectively, a "Gross-Up Payment"); provided, however, that no
Gross-up Payment shall be made with respect to the Excise Tax, if any,
attributable to (a) any incentive stock option, as defined by Section 422 of the
Code ("ISO") granted prior to the initial execution of the Original Agreement,
or (b) any stock appreciation or similar right, whether or not limited, granted
in tandem with any ISO described in clause (a). The Gross-Up Payment shall be in
an amount such that, after payment by the Executive of all taxes (including any
interest or penalties imposed with respect to such taxes), including any Excise
Tax imposed upon the Gross-Up Payment, the Executive retains an amount of the
Gross-Up Payment equal to the Excise Tax imposed upon the Payment.

                  (2) Subject to the provisions of Section 4(d)(6), all
determinations required to be made under this Section 4(e), including whether an
Excise Tax is payable by the Executive and the amount of such Excise Tax and
whether a Gross-Up Payment is required to be paid by the Company to the
Executive and the amount of such Gross-Up Payment, if any, shall be made by a
nationally recognized accounting firm (the "Accounting Firm") selected by the
Executive in his sole discretion. The Executive shall direct the Accounting Firm
to submit its determination and detailed supporting calculations to both the
Company and the Executive within 30 calendar days after the date of termination
of the Executive's employment, if applicable, and any such other time or times
as may be requested by the Company or the Executive. If the Accounting Firm
determines that any Excise Tax is payable by the Executive, the Company shall
pay the required Gross-Up Payment to the Executive within five business days
after receipt of such determination and calculations with respect to any Payment
to the Executive. If the Accounting Firm determines that no Excise Tax is
payable by the Executive, it shall, at the same time as it makes such
determination, furnish the Company and the Executive an opinion that the
Executive has substantial authority not to report any Excise Tax on his federal,
state or local income or other tax return. As a result of the uncertainty in the
application of Section 4999 of the Code (or any successor provision thereto) and
the possibility of similar uncertainty regarding applicable state or local tax
law at the time of any determination by the Accounting Firm hereunder, it is





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possible that Gross-Up Payments which will not have been made by the Company
should have been made (an "Underpayment"), consistent with the calculations
required to be made hereunder. In the event that the Company exhausts or fails
to pursue its remedies pursuant to Section 4(d)(6) and the Executive thereafter
is required to make a payment of any Excise Tax, the Executive shall direct the
Accounting Firm to determine the amount of the Underpayment that has occurred
and to submit its determination and detailed supporting calculations to both the
Company and the Executive as promptly as possible. Any such Underpayment shall
be promptly paid by the Company to, or for the benefit of, the Executive within
five business days after receipt of such determination and calculations.

                  (3) The Company and the Executive shall each provide the
Accounting Firm access to and copies of any books, records and documents in the
possession of the Company or the Executive, as the case may be, reasonably
requested by the Accounting Firm, and otherwise cooperate with the Accounting
Firm in connection with the preparation and issuance of the determinations and
calculations contemplated by Section 4(d)(2). Any determination by the
Accounting Firm as to the amount of the Gross-Up Payment shall be binding upon
the Company and the Executive.

                  (4) The federal, state and local income or other tax returns
filed by the Executive shall be prepared and filed on a consistent basis with
the determination of the Accounting Firm with respect to the Excise Tax payable
by the Executive. The Executive shall make proper payment of the amount of any
Excise Payment, and at the request of the Company, provide to the Company true
and correct copies (with any amendments) of his federal income tax return as
filed with the Internal Revenue Service and corresponding state and local tax
returns, if relevant, as filed with the applicable taxing authority, and such
other documents reasonably requested by the Company, evidencing such payment. If
prior to the filing of the Executive's federal income tax return, or
corresponding state or local tax return, if relevant, the Accounting Firm
determines that the amount of the Gross-Up Payment should be reduced, the
Executive shall within five business days pay to the Company the amount of such
reduction.

                  (5) The fees and expenses of the Accounting Firm for its
services in connection with the determinations and calculations contemplated by
Section 4(d)(2) shall be borne by the Company. If such fees and expenses are
initially paid by the Executive, the Company shall reimburse the Executive the
full amount of such fees and expenses within five business days after receipt
from the Executive of a statement therefor and reasonable evidence of his
payment thereof.

                  (6) The Executive shall notify the Company in writing of any
claim by the Internal Revenue Service or any other taxing authority that, if
successful, would require the payment by the Company of a Gross-Up Payment. Such
notification shall be given as promptly as practicable but no later than 10
business days after the Executive actually receives notice of such claim and the
Executive shall further apprise the Company of the nature of such claim and the
date on which such claim is requested to be paid (in each case, to the extent
known by the Executive). The Executive shall not pay such claim prior to the
earlier of (a) the expiration of the 30-calendar-day period following the date
on which he gives such notice to the Company and (b) the date that any payment
of amount with respect to such claim is due. If the Company




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notifies the Executive in writing prior to the expiration of such period that it
desires to contest such claim, the Executive shall:

                  (i) provide the Company with any written records or documents
         in his possession relating to such claim reasonably requested by the
         Company;

                  (ii) take such action in connection with contesting such claim
         as the Company shall reasonably request in writing from time to time,
         including without limitation accepting legal representation with
         respect to such claim by an attorney competent in respect of the
         subject matter and reasonably selected by the Company;

                  (iii) cooperate with the Company in good faith in order
         effectively to contest such claim; and

                  (iv) permit the Company to participate in any proceedings
         relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including interest and penalties) incurred in connection with such
contest and shall indemnify and hold harmless the Executive, on an after-tax
basis, for and against any Excise Tax or income tax, including interest and
penalties with respect thereto, imposed as a result of such representation and
payment of costs and expenses. Without limiting the foregoing provisions of this
Section 4(d)(6), the Company shall control all proceedings taken in connection
with the contest of any claim contemplated by this Section 4(d)(6) and, at its
sole option, may pursue or forego any and all administrative appeals,
proceedings, hearings and conferences with the taxing authority in respect of
such claim (provided, however, that the Executive may participate therein at his
own cost and expense) and may, at its option, either direct the Executive to pay
the tax claimed and sue for a refund or contest the claim in any permissible
manner, and the Executive agrees to prosecute such contest to a determination
before any administrative tribunal, in a court of initial jurisdiction and in
one or more appellate courts, as the Company shall determine; provided, however,
that if the Company directs the Executive to pay the tax claimed and sue for a
refund, the Company shall advance the amount of such payment to the Executive on
an interest-free basis and shall indemnify and hold the Executive harmless, on
an after-tax basis, from any Excise Tax or income or other tax, including
interest or penalties with respect thereto, imposed with respect to such
advance; and provided further, however, that any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Executive
with respect to which the contested amount is claimed to be due is limited
solely to such contested amount. Furthermore, the Company's control of any such
contested claim shall be limited to issues with respect to which a Gross-Up
Payment would be payable hereunder and the Executive shall be entitled to settle
or contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

                  (7) If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 4(d)(6), the Executive receives any
refund with respect to such claim, the Executive shall (subject to the Company's
complying with the requirements of Section 4(d)(6)) promptly pay to the Company
the amount of such refund (together with any





                                       11
<PAGE>   12



interest paid or credited thereon after any taxes applicable thereto). If, after
the receipt by the Executive of an amount advanced by the Company pursuant to
Section 4(d)(6), a determination is made that the Executive shall not be
entitled to any refund with respect to such claim and the Company does not
notify the Executive in writing of its intent to contest such denial or refund
prior to the expiration of 30 calendar days after such determination, then such
advance shall be forgiven and shall not be required to be repaid and the amount
of any such advance shall offset, to the extent thereof, the amount of Gross-Up
Payment required to be paid by the Company to the Executive pursuant to this
Section 4(e).

                  (8) Notwithstanding any provision of this Agreement to the
contrary, if (a) but for this sentence, the Company would be obligated to make a
Gross-Up Payment to the Executive, (b) the aggregate "present value" of the
"parachute payments" to be paid or provided to the Executive under this
Agreement or otherwise does not exceed 1.15 multiplied by three times the
Executive's "base amount," and (c) but for this sentence, the net after-tax
benefit to the Executive of the Gross-Up Payment would not exceed $50,000
(taking into account both income taxes and any Excise Tax), then the payments
and benefits to be paid or provided under this Agreement will be reduced to the
minimum extent necessary (but in no event to less than zero) so that no portion
of any payment or benefit to the Executive, as so reduced, constitutes an
"excess parachute payment." For purposes of this Section 4(d)(8), the terms
"excess parachute payment," "present value," "parachute payment," and "base
amount" will have the meanings assigned to them by Section 280G of the Code. The
determination of whether any reduction in such payments or benefits to be
provided under this Agreement is required pursuant to the preceding sentence
will be made at the expense of the Company, if requested by the Executive or the
Company, by the Accounting Firm. The fact that the Executive's right to payments
or benefits may be reduced by reason of the limitations contained in this
Section 4(d)(8) will not of itself limit or otherwise affect any other rights of
the Executive other than pursuant to this Agreement. In the event that any
payment or benefit intended to be provided under this Agreement or otherwise is
required to be reduced pursuant to this Section 4(d)(8), the Executive will be
entitled to designate the payments and/or benefits to be so reduced in order to
give effect to this Section 4(d)(8). The Company will provide the Executive with
all information reasonably requested by the Executive to permit the Executive to
make such designation. In the event that the Executive fails to make such
designation within 10 business days of the date of termination of the
Executive's employment, the Company may effect such reduction in any manner it
deems appropriate.

5.       SEVERANCE:  Severance shall be paid as follows:

         a. NON-RENEWAL WITHOUT GOOD CAUSE: In the event that the Agreement is
not renewed by the Company (except where the renewal is for Good Cause), the
Company shall pay the severance required by Subsection 5(b) in accordance with
Subsection 5(c) and continue the benefits as required by Subsection 5(d).

         b. RESIGNATION FOR GOOD REASON OR TERMINATION WITHOUT GOOD CAUSE: In
the event the Company terminates this Agreement without "Good Cause," as defined
in Subsection 2(c)(3), or the Executive resigns for "Good Reason," the Executive
shall be entitled to receive a lump sum payment equal to two (2) times the sum
of: (i) an amount equal to his then current,




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<PAGE>   13



annualized Base Salary, and (ii) the greater of: (x) the applicable Annual
Payout of Incentive Compensation paid for the Plan Year immediately prior to the
termination, or (y) the full non-pro rata Annual Target Award for Incentive
Compensation based upon Executive's annual Base Salary for the Plan Year in
which the termination occurs.

         c. TERMS OF PAYMENT: Severance Pay required pursuant to this section
shall be payable in cash in full within thirty (30) days after the termination
date, non-renewal date or resignation date of the Executive's employment.

         d. CONTINUATION OF BENEFITS: In the event of a Non-Renewal Without Good
Cause or a Termination Without Good Cause or a Resignation For Good Reason, the
Company agrees to continue any and all benefits as provided in the Greyhound
Lines, Inc. Medical Plan and Subsections 1(d)(2) through (8) of this Agreement,
as modified pursuant to the terms of Subsection l(d), for twenty-four (24)
months after the effective date of termination, non-renewal or resignation.
Additionally, Executive shall be permitted to continue participation in the
benefits provided in Subsection 1(d)(1) to the extent permitted by law so as not
to cause disqualification of the 401 k Plan and 1(d)(3) without further Company
contributions, except earnings on contributions made prior to termination and
except contributions the Company is required to make to ensure that such
benefits are fully funded for service prior to termination.

         e. EXCEPTIONS: Severance Pay shall not be payable under this section in
any of the following circumstances:

                  (1) In the event that this Agreement is terminated as a result
of the death or disability of the Executive, as provided in Subsections
2(c)(1)-(2); or

                  (2) In the event that this Agreement is terminated pursuant to
a Notice of Termination For Good Cause or a Notice of Non-Renewal for Good Cause
communicated by the Company, as provided in Subsection 2(c)(3), and such
termination or non-renewal is affirmed by both the President/Chief Executive
Officer (if applicable), and by the Dispute Resolution procedures set forth in
Section 10; or

                  (3) In the event the provisions of Section 4 are applicable as
a result of a "Change of Control" having occurred, and the payments provided for
in Section 4 are paid by the Company; or

                  (4) In the event that the Executive communicates Notice of
Resignation Without Good Reason as defined in Subsection 2(c)(5).

         f. EXCLUSIVITY: The Company and the Executive acknowledge and agree
that the Severance Payments required under this section are intended to be
exclusive and to supersede any severance pay plans or policies adopted by the
Company and that the Executive shall not be entitled to any additional severance
compensation under any other severance plan or policy adopted by the Company.

         g. MITIGATION: The payment of the severance compensation by the Company
to the




                                       13
<PAGE>   14



Executive in accordance with Sections 4 and 5 of this Agreement is hereby
acknowledged by the Company to be reasonable, and the Executive will not be
required to mitigate the amount of any payment provided for in this Agreement by
seeking other employment or otherwise, nor will any profits, income, earnings or
other benefits from any source whatsoever create any mitigation, offset,
reduction or any other obligation on the part of the Executive hereunder or
otherwise.

6.       STOCK INCENTIVES AND AWARDS: In addition to the other compensation set
forth in this Agreement and in addition to stock incentives and awards that were
granted under the terms of the Original Agreement, the Company agrees to grant
the Executive stock incentive and awards as provided in the LTSI Plan, as well
as such other stock incentive and award plans that may be adopted by the Board
of Directors of the Company. Executive shall be entitled to participate in such
stock incentives and awards plans on terms not less favorable than to other
officers and directors of the Company (except for the President and Chief
Executive Officer of the Company), except that the Company may provide for
additional benefits, incentives, or awards to Executive and except that the
following shall apply to any options granted to Executive after the Effective
Date of this Agreement:

         a. DEATH AND DISABILITY: If Executive dies or becomes disabled during
the term of this Agreement, (1) all unvested options as of the date of such
death or disability shall vest immediately; and (2) Executive (or his legal
representative or Estate) may exercise such options in accordance with the
exercise period prescribed in the stock incentive and award plan or twelve (12)
months from such death or disability, whichever is longer.

         b. RETIREMENT: If Executive retires (as defined in the 401 k plan,
except that, for purposes of this Section, the service requirement will be
modified to be no more than ten (10) years and the age requirement will be no
more than age 55), (1) all unvested options as of the date of such retirement
shall vest immediately; and (2) Executive (or his Estate) may exercise such
options in accordance with the exercise period prescribed in the stock incentive
and award plan or thirty-six (36) months, whichever is longer.

Further, notwithstanding anything to the contrary herein, nothing in this First
Amended Executive Employment Agreement will affect to the Executive's
disadvantage any non-qualified stock incentive and awards previously granted to
Executive, whether under the Original Agreement between Executive and the
Company or otherwise.

7. SUCCESSORS AND ASSIGNS: The parties acknowledge and agree that this Agreement
may not be assigned by either party without the written consent of the other
party. In the event of a "Change of Control" as defined in Subsection 4(c), the
Company shall be entitled to assign this Agreement to any successor or assignee;
provided, however, that such assignment shall not or be construed to, in any way
whatsoever, release, limit or excuse the Company from the performance of its
obligations and the payment of its liabilities under this Agreement, regardless
of whether such obligations or liabilities accrued or accrue before, after or as
a result of such assignment, and regardless of whether such obligations or
liabilities are or were assumed by any successor or assignee. In the event of
the Executive's death, this Agreement shall be enforceable by the Executive's
estate, executors or legal representatives, but only to the extent that such
persons may collect any compensation (including stock incentives and awards) due




                                       14
<PAGE>   15



to the Executive under this Agreement.

8.       INDEMNIFICATION: During and after the employment of the Executive 
pursuant to this Agreement, the Company shall indemnify the Executive against
all judgments, penalties, fines, assessments, losses, amounts paid in settlement
and reasonable expenses (including, but not limited to, attorneys' fees) for
which the Executive may become liable as a result of his performance of his
duties and responsibilities pursuant to this Agreement and shall advance and pay
any expenses incurred in defending such claims, to the fullest extent
permissible under the laws of the State of Delaware. In addition, the Company
agrees to purchase liability insurance for any such judgments, penalties, fines,
assessments, losses, amounts paid in settlement and reasonable expenses
(including, but not limited to, attorneys' fees) for which the Executive may
become liable as a result of his performance of his duties and responsibilities
pursuant to this Agreement in an amount not less than the amount of director and
officer liability insurance in effect on the Effective Date of this Agreement,
and consistent with coverage provided to other officers of the Company.

9.       NON-COMPETITION AND NON-DISCLOSURE: The Company and the Executive agree
as follows:

         a. During the term of this Agreement, the Company agrees that it will
disclose to Executive Confidential Information, as defined in this section, to
the extent necessary for Executive to carry out his obligations to the Company.
During and after his employment by the Company, the Executive agrees that he
shall not directly or indirectly disclose any Confidential Information, as
defined in this section, unless such disclosure is: (i) to an employee or a
member of the Board of Directors of the Company or its subsidiaries; or (ii) to
a person to whom disclosure is reasonably necessary or appropriate in connection
with the performance of his duties as an executive of the Company; or (iii)
authorized in writing by the Board of Directors; or (iv) required by law.

         b. In the event that Executive's employment under this Agreement is
terminated for any reason, the Executive agrees that he shall promptly return
all records, files, documents, materials and copies relating to the business of
the Company or its subsidiaries which came into the possession of the Executive
during his employment pursuant to this Agreement; provided, however, that
nothing in this section shall be construed as any limitation on the Executive's
right to retain any documents or other information which was in the possession
of the Executive prior to the Effective Date of the Original Agreement.

         c. For purposes of this Agreement, the term "Confidential Information"
shall be defined as any information relating to the business of the Company or
its subsidiaries which is not generally available to the public and which the
Company takes affirmative steps to maintain as confidential. The term shall not
include any information that the Executive was aware of prior to May 15, 1995,
information that is a matter of any public record, information contained in any
document filed or submitted to any governmental entity, any information that is
common knowledge in any industry in which the Company does business, any
information that has previously been made available to persons who are not
employees of the Company or any information that is known to the Company's
competitors.




                                       15
<PAGE>   16




         d. Both the Company and the Executive recognize that in his employment
at the Company, the Executive will be provided with Confidential Information, as
defined above. Both the Company and the Executive recognize that the disclosure
of such Confidential Information to a competitor of the Company could place the
Company at a competitive disadvantage. Accordingly, in consideration of the
Company agreeing to provide Confidential Information to him, and to prevent the
disclosure or use of such information to the competitive disadvantage of the
Company, the parties agree that in the event that the Executive's employment
with the Company is terminated as a result of either: (i) Notice of Termination
for Good Cause or Notice of Non-Renewal for Good Cause, as defined in Subsection
2(c)(3); or (ii) the resignation of the Executive "Without Good Reason," as
defined by Subsection 2(c)(5), the Executive covenants and agrees not to compete
with the Company for twelve (12) calendar months subsequent to such termination,
non-renewal or resignation from employment, in the business of providing
inter-city transport of passengers or cargo by automobile or motorbus in any
city in which the Company engaged in such business during the twelve (12)
calendar months prior to such termination, nonrenewal or resignation. This
provision shall not apply in the event that the employment of the Executive is
terminated for any reason other than "Good Cause" or in the event of a
"Resignation for Good Reason."

         e. Unless the Board of Directors provides prior written approval, for
one (1) year following the termination of the Executive's employment by the
Company, the Executive shall not, directly or indirectly:

                  (1) solicit, entice, persuade or induce any employee of the
Company, or its subsidiaries, to terminate his/her employment with the Company,
or its subsidiaries, or to become employed by any Person other than the Company,
or its subsidiaries; or

                  (2) approach any such employee for any of the foregoing
purposes; or

                  (3) authorize or assist in the taking of such actions by any
third party.

10.      DISPUTE RESOLUTION: The Company and the Executive agree as follows:

         a. Any claim or controversy arising out of or relating to this
Agreement, or any breach of this Agreement, shall be submitted to non-binding
arbitration in the city of Dallas, Texas in accordance with procedures or rules
established by the American Arbitration Association. The Executive and the
Company agree that either party must request such non-binding arbitration of any
claim or controversy on or before the earlier of: (i) the fifteenth (15th)
business day after the termination or non-renewal of this Agreement becomes
effective; or (ii) the sixtieth (60th) business day after the date the claim or
controversy first arises, by giving written notice of the party's request for
non-binding arbitration ("Arbitration Notice"). If both parties fail to give
such Arbitration Notice, either party may proceed to seek judicial relief in a
court of competent jurisdiction located in Dallas County, Texas.

         b. In the event that any dispute arising under this Agreement concerns
the amount of any payment required to be made under any provision of this
Agreement, either party agrees to




                                       16
<PAGE>   17


pay the undisputed portion of the payment to the other party and deposit the
disputed portion of the payment in an interest bearing account with a financial
institution acceptable to the other party within five (5) days after either
party effectively communicates its Arbitration Notice or files an original
petition or complaint in a court of competent jurisdiction.

         c. At the election of both the Executive and the Company, all claims or
controversies subject to arbitration under this Agreement may be submitted to
final and binding arbitration in accordance with the applicable Rules of the
American Arbitration Association.

         d. In any dispute arising under the terms of this Agreement, without
regard to whether such dispute proceeds to arbitration or litigation, the
Company will reimburse the Executive for reasonable and necessary attorney's
fees up to a maximum amount of Forty Thousand Dollars ($40,000.00), unless a
court of competent jurisdiction (or the Arbitrator, if the parties so elect
according to Section 10), finds that the Executive's position in such proceeding
was frivolous.

11.      RULES OF CONSTRUCTION: The following provisions shall govern the
interpretation and enforcement of this Agreement:

         a. SEVERABILITY: The parties acknowledge and agree that each provision
of this Agreement shall be enforceable independently of every other provision.
Furthermore, the parties acknowledge and agree that, in the event any provision
of this Agreement is determined to be unenforceable for any reason, the
remaining covenants and/or provisions will remain effective, binding and
enforceable.

         b. WAIVER: The parties acknowledge and agree that the failure of either
to enforce any provision of this Agreement shall not constitute a waiver of that
particular provision, or of any other provisions, of this Agreement, except as
otherwise stated in this Agreement.

         c. CHOICE OF LAW: The parties acknowledge and agree that except as
specifically provided otherwise in this Agreement, the law of Texas will govern
the validity, interpretation and effect of this Agreement and any other dispute
relating to, or arising out of, the employment relationship between the Company
and the Executive.

         d. MODIFICATION: The parties acknowledge and agree that, except as
expressly provided herein, this Agreement constitutes the complete and entire
agreement between the parties; that the parties have executed this Agreement
based upon the express terms and provisions set forth herein; that the parties
have not relied on any representations, oral or written, which are not set forth
in this Agreement; that no previous agreement, either oral or written, shall
have any effect on the terms or provisions of this Agreement; and that all
previous agreements, either oral or written, are expressly superseded and
revoked by this Agreement. In addition, the parties acknowledge and agree that
the provisions of this Agreement may not be modified by any subsequent agreement
unless the modifying agreement (i) is in writing (ii) contains an express
provision referencing this Agreement (iii) is signed by the Executive and (iv)
is approved by the Board of Directors.





                                       17
<PAGE>   18



         e. EXECUTION: The parties agree that this Agreement may be executed in
multiple counterparts, each of which shall be deemed an original for all
purposes.

         f. HEADINGS: The parties agree that the subject headings set forth at
the beginning of each section in this Agreement are provided for ease of
reference only, and shall not be utilized for any purpose in connection with the
construction, interpretation or enforcement of this Agreement.

12.      LEGAL CONSULTATION: The parties acknowledge and agree that both parties
have been accorded a reasonable opportunity to review this Agreement with legal
counsel prior to executing the agreement.

13.      NOTICES: The parties acknowledge and agree that any and all Notices 
required to be delivered under the terms of this Agreement shall be forwarded by
personal delivery or certified U.S. mail. Either party may change their
respective address for the purpose of receiving notices only by providing
written notification via certified mail, five (5) days in advance of such
change. Notices shall be deemed to be communicated and effective on the day of
receipt. Such Notices shall be addressed to each party as follows:

         John Werner Haugsland                       Greyhound Lines, Inc.
         17824 Cedar Creek Canyon                    15110 No. Dallas Parkway
         Dallas, Texas 75252                         Dallas, Texas 75248
                                                     Attn: General Counsel
         With a copy to:

         Robert E. Sheeder, Esq.                     Craig R. Lentzsch
         1445 Ross Avenue, Suite 3200                President and Chief 
         Dallas, Texas 75202                         Executive Officer
                                                     Greyhound Lines, Inc.
                                                     15110 North Dallas Parkway
                                                     Dallas, Texas 75248




                                       18
<PAGE>   19







         EXECUTED on this ____ day of _________________, 1998.

                                               JOHN WERNER HAUGSLAND



                                               --------------------------------

                                               GREYHOUND LINES, INC.



                                               By:
                                                  -----------------------------
                                               Title:
                                                     --------------------------



                                       19