Document:

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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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                                                                    EXHIBIT 10.8

                     CHANGE IN CONTROL SEVERANCE AGREEMENT

Kevin E. Benson
Laidlaw Inc

Suite 400, 55 Shuman Blvd,

Naperville, 60563

Dear Kevin:

         Laidlaw Inc. (the "Company") recognizes that, as is the case for most
companies, the possibility of a change in control exists. The Company wishes to
ensure that its senior executives are not distracted from performing their
duties in the event of a proposed or actual transaction involving a change in
control. Accordingly, the Company has determined that as an additional
inducement for you (the "Executive") to continue to remain in the employ of the
Company and to assure itself of both present and future continuity of
management, the Company agrees to provide the Executive with severance benefits
under the following circumstances pursuant to the following terms and conditions
(the "Agreement"):

1.                Certain Defined Terms. In addition to terms defined elsewhere
         herein, the following terms have the following meanings when used in
         this Agreement with initial capital letters:

         (a)      "Base Pay" means the Executive's annual base salary rate as in
                  effect from time to time.

         (b)      "Board" means the Board of Directors of the Company.

         (c)      Cause" means that, prior to any termination pursuant to
                  Section 3(b), the Executive shall have:

                  (i)      engaged in misconduct which is materially injurious
                           to the Company, monetarily or otherwise;

                  (ii)     committed an act of fraud, embezzlement or theft in
                           connection with his duties or in the course of his
                           employment with the Company or any subsidiary;

                  (iii)    intentionally damaged property of the Company or any
                           subsidiary;

                  (iv)     committed wrongful disclosure of secret processes or
                           confidential information of the Company or any
                           Subsidiary; or

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                  (v)      engaged in any Competitive Activity;

                           and any such act shall have been demonstrably and
                           materially harmful to the Company. Notwithstanding
                           the foregoing, the Executive shall not be deemed to
                           have been terminated for "Cause" hereunder unless and
                           until there shall have been delivered to the
                           Executive a copy of a resolution duly adopted by the
                           affirmative vote of not less than a majority of the
                           Board then in office (excluding the Executive if he
                           is a Director) at a meeting of the Board called and
                           held for such purpose, after reasonable notice to the
                           Executive and an opportunity for the Executive,
                           together with the Executive's counsel (if the
                           Executive chooses to have counsel present at such
                           meeting), to be heard before the Board, finding that,
                           in the good faith opinion of the Board, the Executive
                           had committed an act constituting "Cause" as herein
                           defined and specifying the particulars thereof in
                           detail. Nothing herein will limit the right of the
                           Executive or his beneficiaries to contest the
                           validity or propriety of any such determination;

         (d)               "Change in Control" means the occurrence during the
                  Term of any of the following events:

                  (i)      the acquisition by any individual, entity or group
                           (within the meaning of Section 13(d)(3) or 14(d)(2)
                           of the Exchange Act) (a "Person") of beneficial
                           ownership (within the meaning of Rule 13d-3
                           promulgated under the Exchange Act) of 50% or more of
                           the then-outstanding Voting Stock; provided, however,
                           that the following acquisitions shall not constitute
                           a Change in Control: (A) any acquisition directly
                           from the Company, (B) any acquisition by the Company,
                           (C) any acquisition by any employee benefit plan (or
                           related trust) sponsored or maintained by the Company
                           or any Subsidiary or (D) any acquisition by any
                           Person pursuant to a transaction that complies with
                           clauses (A), (B) and (C) of subsection (iii) of this
                           Section 1(d);

                  (ii)     individuals who, as of the date hereof, constitute
                           the Board (the "Incumbent Board") cease for any
                           reason (other than death or disability) to constitute
                           at least a majority of the Board; provided, however,
                           that any individual becoming a director subsequent to
                           the date hereof whose election, or nomination for
                           election by the Company's stockholders, was approved
                           by a vote of at least a majority of the directors
                           then comprising the Incumbent Board (either by a
                           specific vote or by approval of the proxy statement
                           of the Company in which such person is named as a
                           nominee for director, without objection to such
                           nomination) shall be considered as though such
                           individual were a member of the Incumbent Board, but
                           excluding for this purpose, any such individual whose
                           initial assumption of office occurs as a result of an
                           actual or threatened election contest (within the
                           meaning of Rule 14a-11 of the Exchange Act) with
                           respect to the election or removal of directors or
                           other actual or threatened

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                           solicitation of proxies or consents by or on behalf
                           of a Person other than the Board;

                  (iii)    consummation of a reorganization, merger or
                           consolidation or sale or other disposition of all or
                           substantially all of the assets of the Company (a
                           "Business Combination"), unless, in each case,
                           immediately following such Business Combination, (A)
                           all or substantially all of the individuals and
                           entities who were the beneficial owners of Voting
                           Stock of the Company immediately prior to such
                           Business Combination beneficially own, directly or
                           indirectly, more than 50% of the then outstanding
                           shares of common stock and the combined voting power
                           of the then outstanding voting securities entitled to
                           vote generally in the election of directors of the
                           entity resulting from such Business Combination
                           (including, without limitation, an entity which as a
                           result of such transaction owns the Company or all or
                           substantially all of the Company's assets either
                           directly or through one or more subsidiaries) in
                           substantially the same proportions relative to each
                           other as their ownership, immediately prior to such
                           Business Combination, of the Voting Stock of the
                           Company, (B) no Person (excluding any entity
                           resulting from such Business Combination or any
                           employee benefit plan (or related trust) sponsored or
                           maintained by the Company, any Subsidiary or such
                           entity resulting from such Business Combination)
                           beneficially owns, directly or indirectly, 15% or
                           more of the then outstanding shares of common stock
                           of the entity resulting from such Business
                           Combination or the combined voting power of the then
                           outstanding voting securities of such entity except
                           to the extent such ownership existed prior to the
                           Business Combination and (C) at least a majority of
                           the members of the board of directors of the entity
                           resulting from such Business Combination were members
                           of the Incumbent Board at the time of the execution
                           of the initial agreement or of the action of the
                           Board providing for such Business Combination; or

                  (iv)     approval by the stockholders of the Company of a
                           complete liquidation or dissolution of the Company.

         (e)               "Competitive Activity" means the Executive's
                  participation, without the written consent of the Board, as an
                  employee, officer, consultant or director of any business
                  enterprise if such enterprise engages in substantial and
                  direct competition with the Company and such enterprise's
                  sales of any product or service competitive with any product
                  or service of the Company amounted to 10% of such enterprise's
                  net sales for its most recently completed fiscal year and if
                  the Company's net sales of said product or service amounted to
                  10% of the Company's net sales for its most recently completed
                  fiscal year. "Competitive Activity" will not include (i) the
                  mere ownership of securities in any such enterprise and the
                  exercise of rights appurtenant thereto or (ii) participation
                  in the management of any such enterprise other than in
                  connection with the competitive operations of such enterprise.

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         (f)               "Employee Benefits" means the perquisites, benefits
                  and service credit for benefits as provided under any and all
                  employee retirement income and welfare benefit policies,
                  plans, programs or arrangements in which Executive is entitled
                  to participate, including, without limitation, any stock
                  option, performance share, performance unit, stock purchase,
                  stock appreciation, savings, pension, supplemental executive
                  retirement, or other retirement income or welfare benefit,
                  deferred compensation, incentive compensation, group or other
                  life, health, medical/hospital or other insurance (whether
                  funded by actual insurance or self-insured by the Company or a
                  Subsidiary), disability, salary continuation, expense
                  reimbursement and other employee benefit policies, plans,
                  programs or arrangements.

         (g)               "Exchange Act" means the Securities Exchange Act of
                  1934.

         (h)               "Incentive Pay" means an annual bonus, incentive or
                  other payment of compensation, in addition to Base Pay, made
                  or to be made in regard to services rendered in any year or
                  other period pursuant to any bonus, incentive, profit-sharing,
                  performance, discretionary pay or similar agreement, policy,
                  plan, program or arrangement (whether or not funded) of the
                  Company or a Subsidiary, or any successor thereto.

         (i)               "Retirement Plans" means the retirement income,
                  supplemental executive retirement, excess benefits and retiree
                  medical, life and similar benefit plans, programs or
                  arrangements of the Company in which the Executive is entitled
                  to participate.

         (j)               "Severance Period" means the period of time
                  commencing on the date of the first occurrence of a Change in
                  Control and continuing until the earlier of (i) the second
                  anniversary of the occurrence of the Change in Control, or
                  (ii) the Executive's death.

         (k)               "Subsidiary" means an entity in which the Company
                  directly or indirectly beneficially owns 50% or more of the
                  outstanding Voting Stock.

         (l)               "Term" means the period commencing as of the date
                  hereof and expiring as of the later of (i) the close of
                  business on August 31, 2003, or (ii) the expiration of the
                  Severance Period; provided, however, that (A) commencing on
                  September 1, 2004 and each September 1 thereafter, the term of
                  this Agreement will automatically be extended for an
                  additional year unless, not later than June 30 of the
                  immediately preceding year, the Company or the Executive shall
                  have given notice that it or the Executive, as the case may
                  be, does not wish to have the Term extended and (B) subject to
                  the last sentence of Section 9, if, prior to a Change in
                  Control, the Executive ceases for any reason to be an employee
                  of the Company and any Subsidiary, thereupon without further
                  action the Term shall be deemed to have expired and this
                  Agreement will immediately terminate and be of no further
                  effect. For purposes of this Section 1(l), the Executive shall
                  not be deemed to have ceased to be an employee of the Company
                  and any Subsidiary by

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                  reason of the transfer of Executive's employment between the
                  Company and any Subsidiary, or among any Subsidiaries.

         (m)               "Termination Date" means the date on which the
                  Executive's employment is terminated (the effective date of
                  which shall be the date of termination, or such other date
                  that may be specified by the Executive if the termination is
                  pursuant to Section 3(b)).

          (n)              "Voting Stock" means securities entitled to vote
                  generally in the election of directors.

2.                Operation of Agreement. This Agreement will be effective and
         binding immediately upon its execution, but, anything in this Agreement
         to the contrary notwithstanding, except as provided in Sections 8 and
         9, this Agreement will not be operative unless and until a Change in
         Control occurs. Upon the occurrence of a Change in Control at any time
         during the Term, without further action, this Agreement shall become
         immediately operative.

3.                Termination Following a Change in Control, (a) In the event of
         the occurrence of a Change in Control, the Executive's employment may
         be terminated by the Company or a Subsidiary during the Severance
         Period and the Executive shall be entitled to the benefits provided by
         Section 4 unless such termination is the result of the occurrence of
         one or more of the following events:

                  (i)      The Executive's death;

                  (ii)     If the Executive becomes permanently disabled within
                           the meaning of, and begins actually to receive
                           disability benefits pursuant to, the long-term
                           disability plan in effect for, or applicable to,
                           Executive immediately prior to the Change in Control;
                           or

                  (iii)    Cause.

         If, during the Severance Period, the Executive's employment is
terminated by the Company or any Subsidiary other than pursuant to Section
3(a)(i), 3(a)(ii) or 3(a)(iii), the Executive will be entitled to the benefits
provided by Section 4 hereof.

         (b)               In the event of the occurrence of a Change in
                  Control, the Executive may terminate employment with the
                  Company and any Subsidiary during the Severance Period with
                  the right to severance compensation as provided in Section 4
                  upon the occurrence of one or more of the following events
                  (regardless of whether any other reason, other than Cause as
                  hereinabove provided, for such termination exists or has
                  occurred, including, without limitation, other employment):

                  (i)      Failure to elect or reelect or otherwise to maintain
                           the Executive in the office or the position, or a
                           substantially equivalent office or position, of or
                           with the Company and/or a Subsidiary (or any
                           successor thereto by

                                       5

<PAGE>

                           operation of law of or otherwise), as the case may
                           be, which the Executive held immediately prior to a
                           Change in Control, or the removal of the Executive as
                           a director of the Company and/or a Subsidiary (or any
                           successor thereto) if the Executive shall have been a
                           director of the Company and/or a Subsidiary
                           immediately prior to the Change in Control;

                  (ii)     (A) A significant adverse change in the nature or
                           scope of the authorities, powers, functions,
                           responsibilities or duties attached to the position
                           with the Company and any Subsidiary which the
                           Executive held immediately prior to the Change in
                           Control, (B) a reduction in the aggregate of the
                           Executive's Base Pay received from the Company and
                           any Subsidiary or the Executive's Incentive Pay
                           opportunity from the Company or its Subsidiaries, or
                           (C) the termination or denial of the Executive's
                           rights to Employee Benefits or a reduction in the
                           scope or value thereof to a level that is
                           substantially lower in the aggregate from the level
                           in effect at the time of the Change in Control, any
                           of which is not remedied by the Company within 10
                           calendar days after receipt by the Company of written
                           notice from the Executive of such change, reduction,
                           denial or termination, as the case may be;

                  (iii)    The liquidation, dissolution, merger, consolidation
                           or reorganization of the Company or transfer of all
                           or substantially all of its business and/or assets,
                           unless the successor or successors (by liquidation,
                           merger, consolidation, reorganization, transfer or
                           otherwise) to which all or substantially all of its
                           business and/or assets have been transferred (by
                           operation of law or otherwise) assumed all duties and
                           obligations of the Company under this Agreement
                           pursuant to Section 12(a);

                  (iv)     The Company relocates its principal executive offices
                           (if such offices are the principal location of
                           Executive's work), or requires the Executive to have
                           his principal location of work changed, to any
                           location that, in either case, is in excess of 50
                           miles from the location thereof immediately prior to
                           the Change in Control, or requires the Executive to
                           travel away from his office in the course of
                           discharging his responsibilities or duties hereunder
                           at least 20% more (in terms of aggregate days in any
                           calendar year or in any calendar quarter when
                           annualized for purposes of comparison to any prior
                           year) than was required of Executive in any of the
                           three full years immediately prior to the Change in
                           Control without, in either case, his prior written
                           consent; or

                  (v)      Without limiting the generality or effect of the
                           foregoing, any material breach of this Agreement by
                           the Company or any successor thereto which is not
                           remedied by the Company within 10 calendar days after
                           receipt by the Company of written notice from the
                           Executive of such breach.

         (c)               Except as otherwise provided herein, a termination by
                  the Company pursuant to Section 3(a) or by the Executive
                  pursuant to Section 3(b) will not

                                       6

<PAGE>

                  affect any rights that the Executive may have pursuant to any
                  agreement, policy, plan, program or arrangement of the Company
                  or Subsidiary providing Employee Benefits, which rights shall
                  be governed by the terms thereof, except for any rights to
                  severance compensation to which Executive may be entitled upon
                  termination of employment pursuant to Paragraph 6(a)(iii) of
                  the Executive's employment agreement, dated August   , 2002,
                  which rights shall, during the Severance Period, be superseded
                  by this Agreement.

4.                Severance Compensation. (a) If, following the occurrence of a
         Change in Control, the Company or Subsidiary terminates the Executive's
         employment during the Severance Period other than pursuant to Section
         3(a)(i), 3(a)(ii) or 3(a)(iii), or if the Executive terminates his
         employment pursuant to Section 3(b), the Company shall pay to the
         Executive the amounts described in Annex A within five business days
         after the Termination Date and shall provide to the Executive the
         benefits described on Annex A for the periods described therein.

                  (b)      Without limiting the rights of the Executive at law
or in equity, in the event it is determined that the Company fails to make any
payment or provide any benefit required to be made or provided hereunder on a
timely basis, the Company shall pay interest on the amount or value thereof at
an annualized rate of interest equal to the so-called composite "prime rate" as
quoted from time to time during the relevant period in the The Wall Street
Journal, plus 4%. Any change in such prime rate shall be effective on and as of
the date of such change.

                  (c)      Notwithstanding any provision of this Agreement to
the contrary, the parties' respective rights and obligations under this Section
4 and under Sections 5, 7, 8 and the last sentence of Section 9 will survive any
termination or expiration of this Agreement or the termination of the
Executive's employment following a Change in Control for any reason whatsoever.

                  (d)      Notwithstanding any provision to the contrary in any
applicable plan, program or agreement, upon the occurrence of a Change in
Control, all equity incentive awards held by the Executive shall become fully
vested and all stock options held by the Executive shall become fully
exercisable.

5.                Limitation on Payments and Benefits. Notwithstanding any
         provision of this Agreement to the contrary, if any amount or benefit
         to be paid or provided under this Agreement would be an "Excess
         Parachute Payment," within the meaning of Section 280G of the Internal
         Revenue Code of 1986, as amended (the "Code"), or any successor
         provision thereto, but for the application of this sentence, then the
         payments and benefits to be paid or provided under this Agreement shall
         be reduced to the minimum extent necessary (but in no event to less
         than zero) so that no portion of any such payment or benefit, as so
         reduced, constitutes an Excess Parachute Payment; provided, however,
         that the foregoing reduction shall be made only if and to the extent
         that such reduction would result in an increase in the aggregate
         payment and benefits to be provided, determined on an after-tax basis
         (taking into account the excise tax imposed pursuant to Section 4999 of
         the Code, or any successor provision thereto, any tax

                                       7

<PAGE>

         imposed by any comparable provision of state law, and any applicable
         federal, state and local income taxes). The determination of whether
         any reduction in such payments or benefits to be provided under this
         Agreement or otherwise is required pursuant to the preceding sentence
         shall be made at the expense of the Company, if requested by the
         Executive or the Company, by the Company's independent accountants. The
         fact that the Executive's right to payments or benefits may be reduced
         by reason of the limitations contained in this Section 5 shall 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 5, the Executive shall
         be entitled to designate the payments and/or benefits to be so reduced
         in order to give effect to this Section 5. The Company shall 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 Termination Date, the Company may effect such
         reduction in any manner it deems appropriate.

6.                No Mitigation Obligation. The Company hereby acknowledges that
         it will be difficult and may be impossible for the Executive to find
         reasonably comparable employment following the Termination Date.
         Accordingly, the payment of the severance compensation by the Company
         to the Executive in accordance with the terms 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, except
         as expressly provided in the last sentence of Section 2 set forth on
         Annex A.

7.                Legal Fees and Expenses. It is the intent of the Company that
         the Executive not be required to incur legal fees and the related
         expenses associated with the interpretation, enforcement or defense of
         Executive's rights under this Agreement by litigation or otherwise
         because the cost and expense thereof would substantially detract from
         the benefits intended to be extended to the Executive hereunder.
         Accordingly, if the Executive reasonably believes that the Company has
         failed to comply with any of its obligations under this Agreement or in
         the event that the Company or any other person takes or threatens to
         take any action to declare this Agreement void or unenforceable, or
         institutes any litigation or other action or proceeding designed to
         deny, or to recover from, the Executive the benefits provided or
         intended to be provided to the Executive hereunder, subject to the
         other provisions of this Section 7, the Company irrevocably authorizes
         the Executive from time to time to retain counsel of Executive's
         choice, at the expense of the Company to the extent and as hereafter
         provided, to advise and represent the Executive in connection with any
         such interpretation, enforcement or defense, including, without
         limitation, the initiation or defense of any litigation or other legal
         action, whether by or against the Company or any director, officer,
         stockholder or other person affiliated with the Company, in any
         jurisdiction. Notwithstanding any existing or prior attorney-client
         relationship between the Company and such counsel, the Company
         irrevocably consents to the Executive's entering into an
         attorney-client relationship with such counsel, and in that connection
         the Company and the Executive agree that a

                                       8

<PAGE>

         confidential relationship shall exist between the Executive and such
         counsel. The Company will pay and be solely responsible for any and all
         attorneys' and related fees and expenses incurred by the Executive in
         connection with any of the foregoing, except to the extent that the
         Executive fails to prevail on a material claim in any such proceeding
         described in this Section 7.

8.                Confidentiality. The Executive acknowledges that in the course
         of his employment by the Company, he will or may have access to and
         become informed of confidential or proprietary information (as defined
         in this Section 8) of the Company. The Executive hereby covenants and
         agrees that he will not, without the prior written consent of the
         Company, during the Term or thereafter disclose to any person not
         employed by the Company, or use in connection with engaging in
         competition with the Company, any confidential or proprietary
         information of the Company. For purposes of this Agreement, the term
         "confidential or proprietary information" will include all information
         of any nature and in any form that is owned by the Company and that is
         not publicly available (other than by Executive's breach of this
         Section 8) or generally known to persons engaged in businesses similar
         or related to those of the Company. Confidential or proprietary
         information will include, without limitation, the Company's financial
         matters, customers, employees, industry contracts, strategic business
         plans, product development (or other proprietary product data),
         marketing plans, and all other secrets and all other information of a
         confidential or proprietary nature. For purposes of the preceding two
         sentences, the term "Company" will also include any Subsidiary
         (collectively, the "Restricted Group"). The foregoing obligations
         imposed by this Section 8 will not apply (i) during the Term, in the
         course of the business of and for the benefit of the Company, (ii) if
         such confidential or proprietary information will have become, through
         no fault of the Executive, generally known to the public or (iii) if
         the Executive is required by law to make disclosure (after giving the
         Company notice and an opportunity to contest such requirement).

9.                Employment Rights. Nothing expressed or implied in this
         Agreement will create any right or duty on the part of the Company or
         the Executive to have the Executive remain in the employment of the
         Company or any Subsidiary prior to or following any Change in Control.
         Any termination of employment of the Executive or the removal of the
         Executive from the office or position in the Company or any Subsidiary
         that occurs (i) not more than 90 days prior to the date on which a
         Change in Control occurs, and (ii) following the commencement of any
         discussion with a third person that ultimately results in a Change in
         Control, shall be deemed to be a termination or removal of the
         Executive after a Change in Control for purposes of this Agreement.

10.               Post-termination Assistance. Executive shall provide such
         information and assistance to the Company as the Company may reasonably
         request, upon reasonable notice, in connection with any litigation in
         which it or any of its affiliates is or may become a party. The Company
         shall reimburse the Executive for any expenses, including travel
         expenses, incurred by the Executive in connection with providing such
         information and assistance.

                                       9

<PAGE>

11.               Withholding of Taxes. The Company may withhold from any
         amounts payable under this Agreement all federal, state, city or other
         taxes as the Company is required to withhold pursuant to any applicable
         law, regulation or ruling.

12.               Successors and Binding Agreement. (a) The Company will require
         any successor (whether direct or indirect, by purchase, merger,
         consolidation, reorganization or otherwise) to all or substantially all
         of the business or assets of the Company, by agreement in form and
         substance reasonably satisfactory to the Executive, expressly to assume
         and agree to perform this Agreement in the same manner and to the same
         extent the Company would be required to perform if no such succession
         had taken place. This Agreement will be binding upon and inure to the
         benefit of the Company and any successor to the Company, including,
         without limitation, any persons acquiring directly or indirectly all or
         substantially all of the business or assets of the Company whether by
         purchase, merger, consolidation, reorganization or otherwise (and such
         successor shall thereafter be deemed the "Company" for the purposes of
         this Agreement), but will not otherwise be assignable, transferable or
         delegable by the Company.

                  (b)      This Agreement will inure to the benefit of and be
enforceable by the Executive's personal or legal representatives, executors,
administrators, successors, heirs, distributees and legatees.

                  (c)      This Agreement is personal in nature and neither of
the parties hereto shall, without the consent of the other, assign, transfer or
delegate this Agreement or any rights or obligations hereunder except as
expressly provided in Sections 12(a) and 12(b). Without limiting the generality
or effect of the foregoing, the Executive's right to receive payments hereunder
will not be assignable, transferable or delegable, whether by pledge, creation
of a security interest, or otherwise, other than by a transfer by Executive's
will or by the laws of descent and distribution and, in the event of any
attempted assignment or transfer contrary to this Section 12(c), the Company
shall have no liability to pay any amount so attempted to be assigned,
transferred or delegated.

13.               Notices. For all purposes of this Agreement, all
         communications, including, without limitation, notices, consents,
         requests or approvals, required or permitted to be given hereunder will
         be in writing and will be deemed to have been duly given when hand
         delivered or dispatched by electronic facsimile transmission (with
         receipt thereof orally confirmed), or five business days after having
         been mailed by United States registered or certified mail, return
         receipt requested, postage prepaid, or three business days after having
         been sent by a nationally recognized overnight courier service (such as
         Federal Express or UPS) addressed to the Company (to the attention of
         the Secretary of the Company) at its principal executive office and to
         the Executive at his principal residence, or to such other address as
         any party may have furnished to the other in writing and in accordance
         herewith, except that notices of changes of address shall be effective
         only upon receipt.

14.               Governing Law. The validity, interpretation, construction and
         performance of this Agreement will be governed by and construed in
         accordance with the substantive

                                       10

<PAGE>

         laws of the State of Delaware, without giving effect to the principles
         of conflict of laws of such State.

15.               Validity. If any provision of this Agreement or the
         application of any provision hereof to any person or circumstances is
         held invalid, unenforceable or otherwise illegal, the remainder of this
         Agreement and the application of such provision to any other person or
         circumstances will not be affected, and the provision so held to be
         invalid, unenforceable or otherwise illegal will be reformed to the
         extent (and only to the extent) necessary to make it enforceable, valid
         or legal.

16.               Miscellaneous. No provision of this Agreement may be modified,
         waived or discharged unless such waiver, modification or discharge is
         agreed to in writing signed by the Executive and the Company. No waiver
         by either party hereto at any time of any breach by the other party
         hereto or compliance with any condition or provision of this Agreement
         to be performed by such other party will be deemed a waiver of similar
         or dissimilar provisions or conditions at the same or at any prior or
         subsequent time. No agreements or representations, oral or otherwise,
         expressed or implied with respect to the subject matter hereof have
         been made by either party which are not set forth expressly in this
         Agreement. References to Sections are to references to Sections of this
         Agreement.

17.               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 agreement.

         IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
 executed and delivered as of the date first above written.

                                        LAIDLAW INC.

                                        /s/ Peter N. T. Widdrington
                                        ----------------------------------------
                                        By: Peter N. T. Widdrington
                                        Its: Chairman

                                        /s/ Kevin E. Benson
                                        ----------------------------------------
                                        By: Kevin E. Benson

                                          Sept 18, 2002

                                       11

<PAGE>

                                     Annex A

1.       The Company shall pay to the Executive a lump sum payment in an amount
         equal to two (2) times the sum of (A) Base Pay (at the highest rate in
         effect for any period prior to the Termination Date), plus (B)
         Incentive Pay (in an amount equal to not less than the higher of (x)
         the highest aggregate Incentive Pay earned in any fiscal year after the
         Change in Control or in any of the three fiscal years immediately
         preceding the year in which the Change in Control occurred or (y) the
         plan target for which the year in which the Change in Control
         occurred).

2.       The Company shall, for a period of twenty four (24) months following
         the Termination Date (the "Continuation Period"), arrange to provide
         the Executive with Employee Benefits that are welfare benefits (but not
         stock option, stock purchase, stock appreciation or similar
         compensatory benefits) substantially similar to those that the
         Executive was receiving or entitled to receive immediately prior to the
         Termination Date (or, if greater, immediately prior to the reduction,
         termination or denial described in Section 3(b)(ii)), except that the
         level of any such Employee Benefits to be provided to the Executive may
         be reduced in the event of a corresponding reduction generally
         applicable to all recipients of or participants in such Employee
         Benefits, which Continuation Period will be considered service with the
         Company for the purpose of determining service credits and benefits due
         and payable to the Executive under the Company's retirement income,
         supplemental executive retirement and other benefit plans of the
         Company applicable to the Executive, his dependents or his
         beneficiaries immediately prior to the Termination Date. Without
         otherwise limiting the purpose or effect of Section 5, Employee
         Benefits otherwise receivable by the Executive pursuant to this Section
         2 will be reduced to the extent comparable welfare benefits are
         actually received by the Executive from another employer during the
         Continuation Period following the Executive's Termination Date, and any
         such benefits actually received by the Executive shall be reported by
         the Executive to the Company.

3.       In addition to the retirement income, supplemental executive
         retirement, and other benefits to which Executive is entitled under the
         Retirement Plans, a lump sum payment in an amount equal to the
         actuarial equivalent of the excess of (x) the retirement pension and
         the medical, life and other benefits that would be payable to the
         Executive under the Retirement Plans if Executive continued to be
         employed through the Continuation Period given the Executive's Base Pay
         (as determined in Section 1) (without regard to any amendment to the
         Retirement Plans made subsequent to a Change in Control which adversely
         affects in any manner the computation of retirement or welfare benefits
         thereunder), over (y) the retirement pension and the medical, life and
         other benefits that the Executive is entitled to receive (either
         immediately or on a deferred basis) under the Retirement Plans. For
         purposes of this Section, "actuarial equivalent" shall be determined
         using the actuarial assumptions mandated under Section 417(e)(3) of the
         Code in effect for the month second preceding the date of payment and
         the Continuation Period will be considered service with the Company for
         the purpose of determining service credits and benefits due and payable
         to the Executive under the Company's retirement pension and medical,
         life and other benefit plans of the Company

                                       A-1

<PAGE>

         applicable to the Executive, his dependents or his beneficiaries
         immediately prior to the Termination Date.

4.       Reasonable outplacement services by a firm selected by the Executive,
         at the expense of the Company, in an amount up to $25,000.

5.       If the Termination Date occurs on or prior to the first anniversary of
         the date hereof, the Company 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 the
         Company's relocation policy and guidelines as in effect from time to
         time.

                                      A-2

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