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                                                                    EXHIBIT 10.7

THIS AGREEMENT MADE EFFECTIVE THE 16TH DAY OF SEPTEMBER, 2002.

Between:

         Laidlaw Inc., a corporation duly incorporated under the laws of Canada
         ("LINC")

                                       and

                        Kevin E. Benson (the "Executive")

WHEREAS, LINC desires to employ the Executive and the Executive desires to be
employed by LINC;

NOW THEREFORE, the parties have agreed that the terms and conditions of the
relationship shall be as follows:

ARTICLE 1 -- DEFINITIONS

Whenever used in this Agreement, the following terms shall have the meanings set
forth below, and when the meaning is intended, the initial letter of the word is
capitalized:

(a)      "Agreement" means this employment agreement, as amended from time to
         time.

(b)      "Base Salary" means the salary of record paid to the Executive as
         annual salary, and as further indicated in paragraph (a) of Article 4
         (Compensation).

(c)      "Board" means the Board of Directors of LINC.

(d)      "Cause" means the Executive's:

         (i)      Willful and continued failure to perform substantially the
                  Executive's duties with LINC after LINC delivers to the
                  Executive written demand for substantial performance,
                  specifically identifying the manner in which the Executive has
                  not substantially performed his duties;

         (ii)     Conviction of an indictable offense; or

         (iii)    Willfully engaging in illegal conduct or gross misconduct
                  which is materially and demonstrably injurious to LINC.

         For purposes of this paragraph and Article 13, no act or omission by
         the Executive shall be considered "willful" unless it is done or
         omitted in bad faith or without reasonable belief that the Executive's
         action or omission was in the best interests of LINC.

(e)      "Committee" means the Compensation Committee of the Board.

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(f)      "Effective Date" means September 16, 2002.

(g)      "Executive" shall mean Kevin E. Benson.

(h)      "LINC" shall mean Laidlaw Inc., a corporation incorporated under the
         laws of Canada, including any and all subsidiaries or any successor
         thereto.

ARTICLE 2 -- TERM OF THE AGREEMENT

The term of this Agreement shall commence on the Effective Date and shall
continue until terminated in accordance with the provisions of this Agreement.

ARTICLE 3 -- TITLE; COMMENCEMENT OF EMPLOYMENT; REPORTING

The Executive shall serve as the President and Chief Executive Officer of LINC.
The Executive's employment shall commence on the Effective Date. The Executive
shall report to the Board.

ARTICLE 4 -- COMPENSATION

(a)      Unless otherwise provided, all dollar amounts set forth in this
         Agreement shall be in United States Dollars. The Base Salary of the
         Executive for his services is established by the Committee at the
         annualized rate of $600,000. The Base Salary shall be payable twice
         monthly on the 15th business day and the last business day of each
         month. The Base Salary shall be reviewed annually during LINC's normal
         review period. The review will be undertaken by assessing the
         Executive's achievement of the overall objectives established by the
         Committee in consultation with the Executive and with regard to the
         market rates of remuneration paid for similar duties and
         responsibilities.

(b)      The Executive will be eligible to participate in LINC's Short Term
         Incentive Plan. For fiscal years commencing September 1, 2002 and
         thereafter, the Executive's target bonus shall be 75% of Base Salary
         and the maximum bonus shall be 150% of Base Salary. The Executive's
         right to receive any bonus under LINC's Short Term Incentive Plan shall
         be determined based only upon quantitative measurements established by
         the Committee after consultation with the Executive and as set forth in
         accordance with LINC's Short Term Incentive Plan.

(c)      The Executive shall participate in The Supplemental Executive
         Retirement Plan sponsored by LINC for the benefit of its employees.

(d)      Subject to approval by the Committee, the Executive will be eligible to
         receive grants of stock options from time to time. Such stock options
         will be on terms and conditions established by the Committee after
         consultation with the Executive.

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ARTICLE 5 -- BENEFITS

(a)      AUTOMOBILE

         LINC will provide the Executive with a monthly allowance of One
         Thousand, Two Hundred Dollars ($1,200.00) for expenses incurred by the
         Executive for an automobile and its related operating and insurance
         expenses.

(b)      EXPENSES

         It is understood and agreed that the Executive will incur expenses in
         connection with his duties under this Agreement, including, but not
         limited to, travel expenses, home facsimile expenses, personal computer
         expenses and telephone expenses. LINC shall reimburse the Executive for
         any such expenses provided that the Executive provides to LINC an
         itemized written account and receipts acceptable to LINC.

(c)      VACATION

         The Executive shall be entitled to five (5) weeks vacation during each
         calendar year, pro-rated, however, for 2002 based on the number of days
         remaining in 2002 after the date of this Agreement divided by 365. The
         vacation shall be taken at the discretion of the Executive with the
         understanding that the Executive will take into account business needs
         and operations in scheduling vacation.

(d)      WELFARE BENEFITS

         The Executive shall be entitled to those welfare benefit coverages as
         are offered by LINC to its employees generally (such as medical
         insurance, dental insurance, short and long-term disability insurance
         and group term life insurance), all in accordance with the employee
         benefit plans and policies maintained by LINC for the benefit of
         employees of LINC, and as amended from time to time.

(e)      CLUB MEMBERSHIP

         LINC will reimburse the Executive for up to an aggregate amount of
         Fifty Thousand Dollars ($50,000.00) of expenses incurred by the
         Executive for the initial membership fees associated with joining one
         business club and one recreational club that the Executive will use in
         connection with LINC's business. LINC will also reimburse the Executive
         for ongoing annual dues incurred by the Executive in connection with
         the Executive's membership in such business club and recreational club.

(f)      PROFESSIONAL EXPENSES

         LINC will reimburse the Executive for up to Ten Thousand Dollars
         ($10,000.00) annually for expenses incurred by the Executive in
         connection with the Executive's tax preparation and planning.

(g)      EXECUTIVE RELOCATION ALLOWANCE

         The Executive shall relocate to the area chosen to be LINC's corporate
         headquarters following the completion of the financial restructuring of
         LINC and its affiliates. The Executive shall relocate within three
         months following the date that the location of the new corporate
         headquarters is chosen. The Executive shall be entitled to
         reimbursement of customary moving and transportation expenses and
         closing costs (including realtor

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         commissions in connection with the sale of the Executive's home in the
         Vancouver, BC, Canada area) in connection with the Executive's
         relocation.

ARTICLE 6 -- TERMINATION OF EMPLOYMENT

(a)      The parties understand and agree that this Agreement and the
         Executive's employment hereunder may be terminated in the following
         manner in the specified circumstances:

         (i)      By the Executive, at any time, for any reason, on the giving
                  of 90 days' written notice to LINC. LINC may waive notice, in
                  whole or in part, upon immediate payment to the Executive of
                  the Executive's Base Salary for such portion of the 90-day
                  notice period as is waived by LINC.

         (ii)     By LINC, in its absolute discretion, without any notice or pay
                  in lieu thereof, for Cause.

         (iii)    By LINC, in its absolute discretion and for any reason,
                  without Cause. Upon such termination, LINC shall continue to
                  pay the Executive his Base Salary in effect at the time of
                  such termination for a period of 24 months following such
                  termination and shall continue to provide the Executive
                  medical insurance, dental insurance and term life insurance
                  for a period of 24 months after termination, or, if such
                  benefits cannot be provided by LINC, LINC shall pay to the
                  Executive an equivalent lump sum cash amount in lieu of such
                  benefits. In addition, if such termination occurs on or prior
                  to the first anniversary of the Effective Date, LINC shall
                  reimburse the Executive for reasonable and actual relocation
                  expenses to Canada (or a destination of the Executive's choice
                  of equal or lesser cost), subject to LINC's relocation policy
                  and guidelines as in effect from time to time.

         In order to receive the entitlement under this paragraph, the Executive
         must undertake to sign a release in a form satisfactory to LINC, fully
         releasing LINC from further claims upon payment of the amounts
         stipulated herein. However, the form of release shall not require that
         the Executive give up any rights of indemnity which the Executive may
         have had as against LINC for acts carried out by the Executive in the
         ordinary course of LINC's business.

(b)      The Executive agrees that during employment pursuant to this Agreement
         and for twenty-four (24) months following termination without Cause of
         his employment by LINC and payment of the severance payment amount and
         benefit continuation as detailed in subparagraph (iii) of paragraph (a)
         of Article 6 (Termination of Employment), he will not solicit or accept
         business with respect to products competitive with those of LINC from
         any of LINC's customers, wherever situated, and he shall not either
         individually or in partnership, or jointly in conjunction with any
         other person, entity or organization, as principal, agent, consultant,
         lender, contractor, employer, employee, investor, shareholder, or in
         any other manner, directly or indirectly, advise, manage, carry on,
         establish, control, engage in, invest in, offer financial assistance or
         services to, or permit his name to be used by any business that
         competes with the then-existing business of LINC, provided that the
         Executive shall be entitled, for investment purposes, to purchase and
         trade shares of a public company which are listed and posted for
         trading on a

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         recognized stock exchange and the business of which public company may
         be in competition with the business of LINC, provided that the
         Executive shall not directly or indirectly own more than five percent
         (5%) of the issued share capital of the public company, or participate
         in its management or operation, or in any advisory capacity within the
         time limits set out herein.

         For purposes of the obligations set out herein, the business of LINC
         shall mean the provision of contract bus services for school bus
         transportation throughout Canada and the United States and municipal
         and paratransit bus transportation within the United States, inter-city
         and tourism bus transportation throughout North America and healthcare
         transportation services and emergency management services in the United
         States.

(c)      The Executive further agrees that for a period of twenty-four (24)
         months following termination of employment, however caused, he will not
         solicit for hire or rehire, or take away, or cause to be hired, or
         taken away, any employee of LINC.

ARTICLE 7 -- AUTHORITY

(a)      The Executive shall have, subject always to the general or specific
         instructions and directions of the Board, full power and authority to
         manage and direct the business affairs of LINC (except only the matters
         and duties as by law must be transacted or performed by the Board or by
         the shareholders of LINC), including power and authority to enter into
         contracts, engagements or commitments of every nature or kind, in the
         name of and on behalf of LINC, and to engage, employ and dismiss all
         managers and other employees and agents of LINC, subject to the by-laws
         and charter documents of the Company.

(b)      The Executive shall conform to all lawful instructions and directions
         given to him by the Board and obey and carry out the by-laws of LINC.

ARTICLE 8 -- SERVICE

(a)      The Executive, throughout the term of his employment, shall devote his
         full time and attention to the business and affairs of LINC, and shall
         not undertake any other business or occupation or, unless approved by
         the Board, become either (i) an officer, employee or agent of any other
         company or firm which is a commercial venture or (ii) a director of
         more than two companies or firms which are commercial ventures.

(b)      The Executive shall well and faithfully serve LINC and use his best
         efforts to promote the interests thereof and shall not disclose any
         information he may acquire in relation to LINC's business, the private
         affairs or trade secrets of LINC, techniques and concepts, and other
         confidential information concerning the business, operations or
         financing of LINC, to any person other than the Board, or for any
         purposes other than those of LINC, either during the term of his
         employment under this Agreement or after such term.

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ARTICLE 9 -- CHANGE IN CONTROL

(a)      If a change in control (as defined in the Change in Control Agreement)
         occurs, the rights and obligations of the Executive and LINC shall be
         in accordance with the Change in Control Agreement attached as Appendix
         A.

(b)      In order to receive the entitlement under this paragraph, the Executive
         must undertake to sign a release in a form satisfactory to LINC, fully
         releasing LINC from further claims upon payment of the amounts
         stipulated in Appendix A. However, the form of release shall not
         require that the Executive give up any rights of indemnity which the
         Executive may have had as against LINC for acts carried out by the
         Executive in the ordinary course of LINC's business.

If a change in control occurs and Executive receives all payments under the
Change in Control Agreement, the Executive hereby waives any rights he may have
to any payments or other benefits under this Agreement, including any severance
payments.

ARTICLE 10 -- ASSIGNMENT OF RIGHTS

The rights which accrue to LINC under this Agreement shall pass to their
affiliates, successors or assigns. The rights of the Executive under this
Agreement are not assignable or transferable in any manner but flow to the
Executive's estate and heirs.

ARTICLE 11 -- NOTICES

All notices and other communications required or permitted hereunder, or
necessary or convenient in connection herewith, shall be in writing and shall be
deemed to have been given when hand delivered, delivered by facsimile or mailed
by registered mail as follows (provided that notice of change of address shall
be deemed given only when received):

If to LINC, to:

Laidlaw Inc.
3221 North Service Road
Burlington, Ontario
Canada L7R 3Y8

If to the Executive, to:

Kevin E. Benson
3785 Edgemont Boulevard
North Vancouver, BC
Canada V7R 2P6

or to such other names or addresses as LINC or the Executive shall designate by
notice to the other in the manner specified in this paragraph.

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ARTICLE 12 -- LIABILITY INSURANCE

LINC shall maintain the Executive's liability insurance in accordance with
LINC's corporate policy and applicable law.

ARTICLE 13 -- INDEMNIFICATION

LINC agrees that if the Executive is made a party to any action, suit,
proceeding or any other claim whatsoever, by reason of the fact that the
Executive is or was a director, officer, employee or agent of LINC, or is or was
serving at the request of LINC as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise,
whether or not the basis of such claim is the Executive's alleged action in an
official capacity while in service as a director, officer, employee or agent of
LINC, the Executive shall be indemnified and held harmless by LINC to the
fullest extent legally permitted or authorized by LINC's certificate of
incorporation or bylaws or Board resolutions against all expenses, liability and
loss, including, without limitation, legal fees, fines or penalties and amounts
paid or to be paid in settlement, all as reasonably incurred by the Executive in
connection therewith, and such indemnification shall continue as to the
Executive even after the Executive has ceased to be a director, officer,
employee or agent of LINC, and shall inure to the benefit of the Executive's
heirs, executors and administrators.

ARTICLE 14 -- WITHHOLDING OF TAXES

LINC shall be entitled to withhold from any amounts payable under this Agreement
all taxes as legally shall be required pursuant to applicable federal, state or
local laws. LINC shall not be obligated to compensate the Executive for the
payment of such taxes.

ARTICLE 15 -- SEVERABILITY

If any provision of this Agreement or the application thereof to anyone, or
under any circumstances, is adjudicated to be invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall not affect any other
provision or application of this Agreement which can be given effect without the
invalid or unenforceable provision or application and shall not invalidate or
render unenforceable such provision or application in any other jurisdiction.

ARTICLE 16 -- ENTIRE AGREEMENT

This Agreement, including Appendix A hereto, constitutes the entire agreement
between the parties with respect to the employment and appointment of the
Executive and any and all previous agreements, written or oral, express or
implied, between the parties or on their behalf, relating to the employment and
appointment of the Executive by LINC, are terminated and cancelled and each of
the parties releases and forever discharges the other of and from all manner of
actions, causes of action, claims and demands whatsoever, under or in respect of
any previous agreement.

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ARTICLE 17 -- AMENDMENT, WAIVER, ETC.

No provision of this Agreement may be modified, waived or discharged unless such
waiver, modification or discharge is agreed to in writing and signed by the
Executive and LINC. No waiver by any party hereto at any time of any breach by
any other party hereto of, or compliance with, any condition of this Agreement
to be performed by such other party shall be deemed a waiver of similar or
dissimilar provisions or conditions at the same or at any prior or subsequent
time.

ARTICLE 18 -- HEADINGS

The headings used in this Agreement are for convenience only and are not to be
construed in any way as additions to or limitations of the covenants and
agreements contained in it.

ARTICLE 19 -- COUNTERPARTS

This Agreement may be executed in one or more counterparts, each of which shall
be deemed to be an original but all of which together will constitute one and
the same instrument.

ARTICLE 20 -- GENDER AND NUMBER

Except where otherwise indicated by the context, any masculine term used herein
shall also include the feminine; the plural shall include the singular, the
singular shall include the plural.

ARTICLE 21 -- GOVERNING LAW

This Agreement shall be governed by the internal law, and not the laws of
conflicts, of the State of Delaware.

IN WITNESS WHEREOF, the parties have executed this Agreement on the 16th day of
September, 2002.

                                  LAIDLAW INC.

                                  BY: /SIGNED/PETER N.T. WIDDRINGTON
                                  NAME: PETER N.T. WIDDRINGTON
                                  TITLE: CHAIRMAN

                                  KEVIN E. BENSON
                                  /SIGNED/ KEVIN E. BENSON

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