Document:

exv4w1

 

Exhibit 4.1

[FACE OF NOTE]

			
	REGISTERED

	 	REGISTERED

	No. 001

	 	Principal Amount

	CUSIP No. 195891 AH9
	 	$275,000,000.00

COLONIAL REALTY LIMITED PARTNERSHIP

4.75% Senior Notes due 2010

     UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY,
A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE,
OR PAYMENT AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     UNLESS AND UNTIL THIS NOTE IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM,
THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY DTC TO A NOMINEE THEREOF OR BY A NOMINEE
THEREOF TO DTC OR ANOTHER NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR OF DTC OR A
NOMINEE OF SUCH SUCCESSOR.

     Colonial Realty Limited Partnership, a Delaware limited partnership (the “Issuer”, which term
includes any successor under the Indenture hereinafter referred to), for value received, hereby
promises to pay to Cede & Co., as nominee of The Depository Trust Company, or registered assigns,
the principal sum of Two Hundred Seventy-Five Million Dollars ($275,000,000.00) on February 1, 2010
(the “Stated Maturity Date”) or any Redemption Date, as defined below (each such date being
referred to as the “Maturity Date” with respect to the principal repayable on such date), and to
pay interest thereon from January 31, 2005 (or from the most recent Interest Payment Date to which
interest has been paid or duly provided for), semi-annually in arrears on February 1 and August 1
of each year, commencing on August 1, 2005, and on the Maturity Date, at a rate of interest of
4.75% per annum, until payment of said principal sum has been made or duly provided for. Any
capitalized terms used herein, including on the reverse hereof, and not defined herein or on the
reverse hereof shall have the meaning ascribed to them in the Indenture hereinafter referred to.

     The interest so payable and punctually paid or duly provided for on an Interest Payment Date
and at the Maturity Date will be paid to the Holder in whose name this Note (or one or

 

 

more predecessor Notes) is registered at the close of business on the Regular Record Date for
such payment, which will be January 15 or July 15 (regardless of whether such day is a Business
Day) next preceding such Interest Payment Date or Maturity Date, as the case may be. Any interest
not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on
such Regular Record Date, and may either be paid to the Holder in whose name this Note (or one or
more predecessor Notes) is registered at the close of business on a Special Record Date for the
payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to
Holders of Notes of this series not less than ten (10) days prior to such Special Record Date, or
may be paid at any time in any other lawful manner not inconsistent with the requirements of any
securities exchange or which the Notes of this series may be listed, and upon such notice as may be
required by such exchange, as more fully provided in the Indenture.

     The principal and Make-Whole Amount, if any, of this Note payable at the Maturity Date will be
paid against presentation and surrender of this Note at the office or agency of the Issuer
maintained for that purpose in New York, New York. The Issuer hereby initially designates the
Corporate Trust Office of the Trustee in New York, New York as the office to be maintained by it
where this Note may be presented for payment, registration on transfer or exchange and where
notices or demands to or upon the Issuer in respect of this Note or the Indenture may be served.

     Interest payable on this Note will be computed on the basis of a 360-day year consisting of
twelve 30-day months. If any Interest Payment Date or Maturity Date would otherwise be a day that
is not a Business Day, the required payment will be made on the next succeeding Business Day with
the same force and effect as if it were paid on the date such payment was due, and no interest will
accrue on the amount so payable for the period from and after such Interest Payment Date or
Maturity Date, as the case may be.

     This Note may be redeemed at any time at the option of the Issuer, in whole or from time to
time in part, upon notice to the Holders of not more than 60 nor less than 30 days prior to the
date fixed for redemption (the “Redemption Date”), at a redemption price equal to the sum of (i)
100% of the aggregate principal amount of the Notes being redeemed plus accrued but unpaid interest
thereon to the Redemption Date and (ii) the Make-Whole Amount, if any, with respect to such Notes.

     Payments of principal, Make-Whole Amounts, if any, and interest in respect of this Note will
be made by wire transfer of immediately available funds, in such coin or currency as at the time of
payment is legal tender for the payment of public and private debts, so long as this Note is in
global form as described in Section 203 of the Indenture. If this Note is not in global form, all
such payments will be made by wire transfer of immediately available funds if the Holder hereof at
the applicable record date shall have provided wire transfer instructions to the Trustee, received
by the Trustee no later than fifteen (15) days prior to the applicable payment date, and otherwise
payment shall be made in accordance with Section 307 of the Indenture. Such wire transfer
instructions shall remain in effect until revoked in a writing received by the Trustee from the
Holder hereof.

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     REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE HEREOF.
SUCH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS THOUGH FULLY SET FORTH AT
THIS PLACE.

     This Note shall not be entitled to the benefits of the Indenture referred to on the reverse
hereof or be valid or become obligatory for any purpose until the certificate of authentication
hereon shall have been signed by the Trustee under such Indenture.

* * *

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     IN WITNESS WHEREOF, the Issuer has caused this Note to be signed manually or by facsimile by
its duly authorized officers.

	 	 	 	 	 
	Dated: January 31, 2005	 	COLONIAL REALTY LIMITED PARTNERSHIP,
	

	 	 	 	as Issuer
	 
	 	 	 	 
	

	 	By:
	 	COLONIAL PROPERTIES TRUST, not

individually but as General Partner
	 
	 	 	 	 
	

	 	By:
	 	/s/ Thomas H. Lowder
	

	 	 	 	 
	

	 	 	 	Thomas H. Lowder
	

	 	 	 	Chairman of the Board, President and
Chief Executive Officer
	 
	 	 	 	 
	

	 	By:
	 	/s/ Weston M. Andress
	

	 	 	 	 
	

	 	 	 	Weston M. Andress
	

	 	 	 	Executive Vice President and Chief Financial and
Investment Officer

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Notes of the series designated herein referred to in the within-mentioned
Indenture.

	 	 	 	 	 
	Dated: January 31, 2005	 	DEUTSCHE BANK TRUST COMPANY
	

	 	 	 	AMERICAS, as Trustee
	 
	 	 	 	 
	

	 	By:
	 	/s/ Irina Golovashchuk
	

	 	 	 	 
	

	 	 	 	Authorized Officer

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[REVERSE OF NOTE]

COLONIAL REALTY LIMITED PARTNERSHIP

4.75% Senior Notes due 2010

     This Note is one of a duly authorized issue of debentures, notes, bonds or other evidences of
indebtedness of the Issuer (hereinafter called the “Securities”) of the series hereinafter
specified, all issued or to be issued under an Indenture dated as of July 22, 1996, as supplemented
by the First Supplemental Indenture, dated as of December 31, 1998 (the “Indenture”), between the
Issuer and Deutsche Bank Trust Company Americas (formerly Bankers Trust Company), as Trustee
(herein called the “Trustee,” which term includes any successor trustee under the Indenture with
respect to the series of Securities of which this Note is a part), to which Indenture and all
indentures supplemental thereto reference is hereby made for a description of the respective
rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the
Issuer and the Holders of the Securities, and of the terms upon which the Securities are, and are
to be, authenticated and delivered. The Securities may be issued in one or more series, which
different series may be issued in various aggregate principal amounts, may mature at different
times, may bear interest (if any) at different rates, may be subject to different redemption
provisions (if any), and may otherwise vary as provided in the Indenture. This Note is one of the
outstanding Securities of a series designated as the “4.75% Senior Notes due 2010” of the Issuer
(the “Notes”), limited in aggregate principal amount to $275,000,000.00.

     In case an Event of Default with respect to the Notes shall have occurred and be continuing,
the principal of, and premium or Make-Whole Amount, if any, may be declared, and upon such
declaration shall become, due and payable, in the manner, with the effect, and subject to the
conditions provided in the Indenture.

     As provided in and subject to the provisions of the Indenture, the Holder of this Note shall
not have the right to institute any proceeding with respect to the Indenture or for the appointment
of a receiver or trustee or for any other remedy thereunder, unless (i) such Holder shall have
previously given written notice to the Trustee of a continuing Event of Default with respect to the
Notes, (ii) the Holders of not less than 25% in principal amount of the Notes shall have made
written request to the Trustee to institute proceedings in respect of such Event of Default in its
own name as Trustee, (iii) such Holder or Holders have offered reasonable indemnity to the Trustee
against the costs, expenses and liabilities to be incurred in compliance with such request, (iv)
the Trustee shall have failed to institute any such proceeding for 60 days after its receipt of
such notice, request and offer of indemnity and (v) the Trustee shall not have received from the
Holders of a majority in principal amount of the Notes a direction inconsistent with such request.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Issuer and the rights of the Holders of the
Notes to be affected under the Indenture at any time by the Issuer and the Trustee

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with the consent of the Holders of not less than a majority in principal amount of the Notes
affected thereby. The Indenture also contains provisions permitting the Holders of at least a
majority in principal amount of the Notes, on behalf of the Holders of all Notes, to waive
compliance by the Issuer with certain provisions of the Indenture and certain past defaults under
the Indenture and their consequences. Any such consent or waiver by the Holders of this Note shall
be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note
issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or
not notation of such consent or waiver is made upon this Note.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of, premium or Make-Whole Amount, if any, and interest on this Note at the times, place
and rate, and in the coin or currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Note is registrable in the Security Register, upon surrender of this Note for
registration of transfer at the office or agency of the Issuer in any Place of Payment where the
principal of, premium or Make-Whole Amount, if any, on, and interest on this Note are payable, duly
endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Issuer
and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in
writing, and thereon one or more new Notes of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.

     The Notes are issuable only in registered form without coupons in denominations of $1,000 and
any integral multiple thereof. As provided in the Indenture and subject to certain limitations
therein set forth, the Notes are exchangeable for a like aggregate principal amount of Notes of a
different authorized denomination, as requested by the Holder surrendering the same.

     No service charge shall be made for any registration of transfer or exchange of Notes, but the
Issuer may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith. In no event shall the Issuer be required to pay any Additional
Amounts as contemplated by the Indenture.

     Prior to due presentment of this Note for registration of transfer, the Issuer, the Trustee,
and any authorized agent of the Issuer or the Trustee may treat the Person in whose name this Note
is registered as the absolute owner of this Note (whether or not this Note shall be overdue and
notwithstanding any notation of ownership or other writing hereon), for the purpose of receiving
payment of, or on account of, the principal hereof and premium, if any, and subject to the
provisions on the face hereof, interest hereon, and for all other purposes, and none of the Issuer,
the Trustee or any authorized agent of the Issuer or the Trustee shall be affected by any notice to
the contrary.

     Notwithstanding anything contained herein or in the Indenture to the contrary, no recourse
under or upon any obligation, covenant or agreement contained in the Indenture or in this Note, or
because of any indebtedness evidenced thereby (including without limitation, any obligation or
indebtedness relating to the principal of, or premium or Make-Whole Amount, if

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any, interest or any other amounts due, or claimed to be due, on this Note), or for any claim
based thereon or otherwise in respect thereof, shall be had (i) against Colonial Properties Trust
or any other partner in the Issuer, (ii) against any other person which owns an interest, directly
or indirectly, in any partner in the Issuer, or (iii) against any promoter, as such, or against any
past, present of future stockholder, partner, officer or director, as such, of the Issuer or of any
successor, either directly or through the Issuer or any successor, under any rule of law, statute
or constitutional provisions or by the enforcement of any assessment or by any legal or equitable
proceeding or, otherwise, all such liability being expressly waived and released by the acceptance
of this Note by the Holder thereof and as part of the consideration for the issue of the Notes.
The Holder of this Note acknowledges by acceptance of this Note that its sole remedies under the
Indenture for any Default by the Issuer in the payment of the principal of, or any premium or
Make-Whole Amount, if any, interest or any amounts due, or claimed to be due, on this Note, or
otherwise, are limited to claims against the property of the Issuer as provided in Section 503 of
the Indenture.

     Notwithstanding anything contained in the Indenture to the contrary, “Make-Whole Amount” and
“Reinvestment Rate” as used with respect to this Note shall have the following meanings:

     “Make-Whole Amount” means, in connection with any optional redemption of the Notes, the
excess, if any, of: (i) the aggregate present value as of the date of such redemption of each
dollar of principal being redeemed and the amount of interest (exclusive of interest accrued to the
date of redemption) that would have been payable in respect of each such dollar if such redemption
had not been made, determined by discounting, on a semi-annual basis, such principal and interest
at the Reinvestment Rate (determined on the third Business Day preceding the date notice of such
redemption is given) from the respective dates on which such principal and interest would have been
payable if such redemption had not been made, to the date of redemption; over (ii) the aggregate
principal amount of the Notes being redeemed.

     “Reinvestment Rate” means 0.15% plus the arithmetic mean of the yields under the heading “Week
Ending” published in the most recent Statistical Release under the caption “Treasury Constant
Maturities” for the maturity, rounded to the nearest month, corresponding to the remaining life to
maturity, as of the payment date of the principal amount of the Notes being redeemed. If no
maturity exactly corresponds to such maturity, yields for the two published maturities most closely
corresponding to such maturity shall be calculated pursuant to the immediately preceding sentence
and the Reinvestment Rate shall be interpolated or extrapolated from such yields on a straight-line
basis, rounding in each of such relevant periods to the nearest month. For the purposes of
calculating the Reinvestment Rate, the most recent Statistical Release published prior to the date
of determination of the Make-Whole Amount shall be used. If the format or content of the
Statistical Release changes in a manner that precludes determination of the Treasury yield in the
above manner, then the Treasury yield shall be determined in the manner that most closely
approximates the above manner, as reasonably determined by the Company.

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     “Statistical Release” means the statistical release designated “H.15(519)” or any successor
publication which is published weekly by the Federal Reserve System and which reports yields on
actively traded United States government securities adjusted to constant maturities, or, if such
statistical release is not published at the time of any required determination under the indenture,
then such other reasonably comparable index which shall be designated by the Company.

     THE INDENTURE AND EACH NOTE SHALL BE DEEMED TO BE A CONTRACT UNDER THE LAWS OF THE STATE OF
NEW YORK, AND FOR ALL PURPOSES SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF SUCH STATE, EXCEPT
AS MAY OTHERWISE BE REQUIRED BY MANDATORY PROVISIONS OF LAW.

     Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Issuer has caused “CUSIP” numbers to be printed on the Notes as a convenience to
the Holders of such Notes. No representation is made as to the correctness or accuracy of such
CUSIP numbers as printed on the Notes, and reliance may be placed only on the other identification
numbers printed hereon.

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ABBREVIATIONS

     The following abbreviations, when used in the inscription on the face of this instrument,
shall be construed as though they were written out in fully according to applicable laws or
regulations:

	 	 	 	 	 	 	 
	TEN COMM

	 	-
	 	as tenants in common
	 	UNIF GIFT MIN ACT -
	TEN ENT

	 	-
	 	as tenants by the entireties
	 	_____ Custodian _______

	JT TEN

	 	-
	 	as joint tenants with right
of survivorship and not as
tenants in common
	 	(Cust)                       (Minor)

Under Uniform Gifts to Minors

Act                                          
                     State

Additional abbreviations may also be used though not in the above list.

_________________________________

Social Security or taxpayer I.D. or other identifying number of assignee.

_________________________________

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                

(name and address of assignee)

the within Note and all rights thereunder, hereby irrevocably constituting and appointing
_____________________, attorney to transfer said Note on the books kept for registration thereof,
with full power of substitution in the premises.

Dated:_______________________

______________________________________

9exv10w1

 

EXHIBIT 10.1

This Agreement made effective the 1st day of January, 2005.

Among:

Greyhound Lines, Inc., a Delaware corporation (“Greyhound”),

Laidlaw International, Inc., a Delaware corporation (“Laidlaw”)

and

John Werner Haugsland (the “Executive”)

WHEREAS, Executive is currently employed by Greyhound pursuant to the terms of the Second Amended
Executive Employment Agreement dated as of March 16, 1999, as amended (the “Prior Agreement”); and

WHEREAS, Greyhound desires to continue the employment of Executive and the Executive desires to
continue to be employed by Greyhound pursuant to the terms of this Agreement;

WHEREAS, Greyhound is a wholly owned subsidiary of Laidlaw;

WHEREAS, Greyhound, Laidlaw and Executive desire to terminate the Prior Agreement;

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 Laidlaw.

(d) “Cause” means the Executive’s:

	 	(i)  	Willful and continued failure to perform substantially the Executive’s primary
duties with Greyhound after Greyhound delivers to the Executive written demand for
substantial performance, specifically identifying the manner in which the Executive has
not substantially performed his duties;
	 
	 	(ii)  	Act of omission constituting fraud under the law of the State of Texas;
	 
	 	(iii)  	Conviction of, or plea of nolo contendere to a felony;

 

 

	 	(iv)  	Use of illegal drugs;
	 
	 	(v)  	Embezzlement of Greyhound or Laidlaw property or funds;
	 
	 	(vi)  	Material breach of any provision of this Agreement, including but not limited
to the covenants set forth in Section 6(d), or the unauthorized use of Greyhound’s
confidential business information in a manner which is detrimental to Greyhound and/or
Laidlaw.

(e) “Committee” means the Compensation Committee of the Board.

(f) “Disability” means 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 after becoming so
disabled.

(g) “Effective Date” means January 1, 2005.

(h) “Executive” shall mean John Werner Haugsland.

(i) “Good Reason” shall mean, without the consent of the Executive:

	 	(i)  	Greyhound’s failure to perform any material provision of this Agreement;
	 
	 	(ii)  	A material change in the Executive’s authority, duties or responsibilities
under this Agreement, other than a termination by Greyhound for Cause;
	 
	 	(iii)  	Any request by the Greyhound Board that the Executive perform, assist, abet or
approve any act which is illegal under any federal, state or local law;
	 
	 	(iv)  	Any requirement by the Greyhound Board that Executive relocate from the Dallas,
Texas metropolitan area; or
	 
	 	(v)  	Greyhound fails to maintain adequate liability insurance coverage or indemnify
executive in accordance with Articles 12 and 13 of this Agreement,

(j) “Greyhound” shall mean Greyhound Lines, Inc., a Delaware corporation, and all subsidiaries or
any successor thereto.

(k) “Greyhound Board” shall mean the Board of Directors of Greyhound.

(l) “Laidlaw” shall mean Laidlaw International Inc., a Delaware corporation, 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 January
31, 2007, unless otherwise terminated earlier in accordance with the provisions of this Agreement.

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Article 3 — Title; Commencement of Employment; Reporting

The Executive shall serve as the Executive Vice President and Chief Operating Officer of Greyhound.
The Executive shall report to the President and Chief Executive Officer of Greyhound.

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 $378,562. 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 Greyhound’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 Greyhound’s Short Term Incentive Plan as
approved by the Committee. For fiscal years commencing September 1, 2003 and thereafter, the
Executive’s target bonus shall be 50% of Base Salary and the maximum bonus shall be 100% of
Base Salary. The Executive’s right to receive any bonus under Greyhound’s Short Term
Incentive Plan shall be determined based only upon quantitative measurements established by
the Committee and as set forth in accordance with Greyhound’s Short Term Incentive Plan.

	(c)  	The Executive shall participate in the Greyhound Supplemental Executive Retirement Plan
sponsored by Greyhound for the benefit of its employees in accordance with its terms; provided
that Executive shall be credited with all service with Greyhound and any predecessors for
purposes of the Greyhound Supplemental Executive Retirement Plan.

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

	(e)  	For the fiscal year commencing September 1, 2004, Greyhound will recommend to the Committee
grants of deferred shares and value appreciation rights (VARs) to Executive under the terms of
the Laidlaw Plan in the amount double the amount to be granted by the Committee in November,
2004. Such recommendation shall include four year ratable vesting on the deferred shares and
3-year cliff vesting on the VARs, with acceleration of vesting upon death or disability. The
deferred shares will vest upon retirement, as defined in the Laidlaw Plan. VARs shall
continue to vest for so long as Executive remains either employed by Greyhound or as a member
of the Greyhound Board. All grants of deferred shares and VARs are subject to such terms and
conditions as the Committee may actually approve and the Laidlaw Plan. There will be no other
grants of deferred shares or VARs during the term of the Agreement.

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Article 5 — Benefits

	(a)  	Automobile
	 
	   	Greyhound will provide the Executive with a monthly allowance of One Thousand Dollars
($1,000.00) for expenses incurred by the Executive for an automobile.
	 
	(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. Greyhound shall reimburse the
Executive for any such expenses provided that the Executive provides to Greyhound an
itemized written account and receipts acceptable to Greyhound.
	 
	(c)  	Vacation
	 
	   	The Executive shall be entitled to five (5) weeks vacation during each calendar year. 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. All
vacation earned must be taken by the end of the calendar year following accrual or it is
forfeited.
	 
	(d)  	Welfare Benefits
	 
	   	The Executive shall be entitled to those welfare benefit coverages as are offered by
Greyhound to its executive 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 Greyhound for the benefit of
employees of Greyhound, and as amended from time to time subject to and supplemented by the
following:

	 	(i)  	Medical: Greyhound shall pay the full cost
of health and welfare benefit coverages for Executive. Greyhound will
reimburse Executive for medical expenses up to $5,000 per calendar year;
provided, that Executive provides to Greyhound appropriate evidence of
such expenses as acceptable to Greyhound. Additionally, Greyhound will
reimburse Executive for the cost of an annual physical performed by a
mutually agreed upon physician.
	 
	 	(ii)  	Life Insurance: At all times during the
term of this Agreement, Executive will receive life insurance coverage as
provided by Greyhound on terms not less favorable than that provided to
other executives of Greyhound. 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. Greyhound shall have
the right to purchase insurance to fund its obligations to the Executive
under this section; provided,

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	 	   	however, that any insurance company or companies selected by Greyhound to
fund its obligations under this section must be the company or companies
that underwrite life insurance benefits covering other officers of
Greyhound.
	 
	 	(iii)  	Long Term Disability: Greyhound will
provide Executive long-term disability coverage and benefits on terms
which are not less favorable than that provided to other executives of
Greyhound 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.

	(e)  	Club Memberships
	 
	   	Greyhound will reimburse the Executive for the initial membership fees associated with
joining a mutually agreed upon club that the Executive will use in connection with
Greyhound’s business. Greyhound will also reimburse the Executive for ongoing annual dues
incurred by the Executive in connection with the Executive’s membership in such club.
Greyhound will also reimburse the Executive for monthly dues of up to $250 per month for one
health club.
	 
	(f)  	Professional Expenses
	 
	   	Greyhound will reimburse the Executive for up to Fifteen Thousand Dollars ($15,000.00)
annually for expenses incurred by the Executive in connection with the Executive’s estate
planning, tax and financial preparation and planning.

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 without Good Reason, on the giving of 90 days’
written notice to Greyhound. Greyhound 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 Greyhound.
	 
	 	(ii)  	By Executive for Good Reason on the giving of 30 days’ written notice to
Greyhound specifying the events which entitle termination for Good Reason and provided
Greyhound does not cure, if curable, any such event which otherwise would entitle
Executive to terminate for Good Reason.
	 
	 	(iii)  	By Greyhound, in its absolute discretion, without any notice or pay in lieu
thereof, for Cause.
	 
	 	(iv)  	By Greyhound, in its absolute discretion and for any reason other than death or
disability, without Cause.
	 
	 	(v)  	By Greyhound for reasons of Disability.

5

 

	 	(vi)  	Upon the Executive’s death.

	 	 	 	 	 
	(b)

	 	 	 	(i) Upon termination of Executive’s employment by Greyhound without Cause or by
Executive for Good Reason, Greyhound shall (A) pay the Executive in a lump sum an amount equal
to three times the sum of his Base Salary in effect at the time of such termination and the
greater of his bonus for the year prior to such termination or his target bonus at the time of
his termination, and (B) shall continue to provide the Executive all of the benefits set forth
in Sections 5(a), (d), (e) and (f) of this Agreement for a period of 36 months after
termination, or, if such benefits cannot be provided by Greyhound, Greyhound shall pay to the
Executive an equivalent lump sum cash amount in lieu of such benefits.

	 	 	(ii) Upon termination of Executive’s employment by Greyhound for Disability or by
reason of death, Executive shall be entitled to his Base Salary through the date of
termination, and if and when otherwise payable, a pro rata portion of the bonus
Executive would have received if his employment were not so terminated.
	 
	 	 	(iii) In all other cases, Executive shall be entitled only to his Base Salary, any
vacation accrued but unpaid through the date of termination.

	(c)  	In order to receive the entitlement under Section 6(b)(i) or (ii), the Executive (or his
heirs or estate) must undertake to sign a release in a form reasonably satisfactory to
Greyhound, fully releasing Greyhound and Laidlaw from further claims upon payment of the
amounts stipulated herein. However, the form of release shall not require that the Executive
(or his heirs or estate) give up any rights of indemnity which the Executive may have had as
against Greyhound or Laidlaw for acts carried out by the Executive in the ordinary course of
Greyhound’s business.

	(d)  	The Executive agrees that during employment pursuant to this Agreement and for thirty-six
(36) months following termination of his employment by Greyhound for Cause, or by Executive
without Good Reason, 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 Greyhound and affiliates in the markets in which
Greyhound or any affiliate is then operating its business, or has definitive plans to operate
its business, 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
recognized stock exchange and the business of which public company may be in competition with
the business of Greyhound and affiliates, 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 Greyhound and affiliates
shall mean the provision of inter-city transportation of passengers or cargo by automobile
or motorbus in the United States and Canada.

6

 

	(e)  	The Executive further agrees that for a period of thirty-six (36) months following
termination of employment by Greyhound for Cause, or by Executive without Good Reason, he will
not solicit for hire or rehire, or take away, or cause to be hired, or taken away, any
employee of Greyhound.

Article 7 — Authority

	(a)  	The Executive shall support the President and Chief Executive Officer of Greyhound in
carrying out the general or specific instructions and directions of the Greyhound Board and
together with the President and Chief Executive Officer in doing so, may enter into contracts,
engagements or commitments of every nature or kind, in the name of and on behalf of Greyhound,
and may engage, employ and dismiss all managers and other employees and agents of Greyhound,
subject to the by-laws and charter documents of Greyhound.

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

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 Greyhound, and shall not undertake any other business
or occupation or, unless approved by the President and Chief Executive Officer of Greyhound,
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)  	Executive’s responsibilities shall include the inter-city coach, coach charter and line haul
and any other related business thereto of Greyhound and its affiliates in the United States
and Canada; provided, however, upon any realignment of Greyhound and its affiliates along
distinct product or business lines, Executive’s responsibilities may be altered to exclude
responsibility for the courier/package express and tour/charter businesses, and such change in
responsibilities shall not constitute grounds for resignation by Executive for Good Reason.

	(c)  	The Executive shall well and faithfully serve Greyhound and use his best efforts to promote
the interests thereof and shall not disclose any information he may acquire in relation to
Greyhound’s business, the private affairs or trade secrets of Greyhound, techniques and
concepts, and other confidential information concerning the business, operations or financing
of Greyhound, to any person other than (i) to an employee of Greyhound or Laidlaw or their
subsidiaries, (ii) a member of the Greyhound Board or the Board; (iii) to a person to whom
disclosure is reasonably necessary or appropriate in connection with the performance of his
duties as an executive of Greyhound; (iv) as authorized in writing by the Greyhound Board; or
(iv) required by law.

7

 

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 Greyhound 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 Greyhound, fully releasing Greyhound 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 Greyhound for acts carried out by the Executive in the ordinary course of
Greyhound’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 Greyhound 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 Greyhound, to:

                    Greyhound Lines, Inc.

                    15110 North Dallas Parkway

                    Dallas, Texas 75248

                    Attn: General Counsel

If to Laidlaw, to:

                    Laidlaw International, Inc.

                    55 Shuman Boulevard, Suite 400

                    Naperville, IL 60563

                    Attn: General Counsel

If to the Executive, at such address as Executive provides to Greyhound from time to time as part
of his personnel records, or to such other names or addresses as Greyhound or the Executive shall
designate by notice to the other in the manner specified in this paragraph.

8

 

Article 12 — Liability Insurance

Greyhound or Laidlaw shall maintain the Executive’s liability insurance in accordance with
corporate policy and applicable law.

Article 13 — Indemnification

Greyhound 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 Greyhound, or is or was serving at the request of Greyhound 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 Greyhound, the Executive shall be
indemnified and held harmless by Greyhound to the fullest extent legally permitted or authorized by
Greyhound’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 Greyhound, and shall inure to the benefit of the
Executive’s heirs, executors and administrators.

Article 14 — Withholding of Taxes

Greyhound 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. Greyhound 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 Greyhound, including the Prior Agreement 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.

9

 

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 Greyhound. 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.

Article 22 –Greyhound Board Membership

Upon execution of this Agreement, Laidlaw agrees to elect Executive as a director of the Greyhound
Board. Each year during the term of this Agreement, and if Executive retires from Greyhound on
January 31, 2007, for a period of two years thereafter, if Executive so desires, Laidlaw will
continue to elect Executive as a member of the Greyhound Board. Greyhound shall pay Executive an
annual retainer of one hundred thousand dollars ($100,000) per year for each year in which
Executive serves as a member of the Greyhound Board following his retirement on January 31, 2007 as
an employee of Greyhound. Such retainer shall be paid in quarterly installments.

Article 23 — Dispute Resolution

	(a)  	Greyhound and the Executive agree that any claim or controversy arising out of or relating to
this Agreement or the Change of Control Agreement, or any breach of this Agreement or the
Change of Control 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 Greyhound agree that either party must request such non-binding
arbitration of any claim or controversy on or before

10

 

	   	the earlier of: (i) the fifteenth (15th) business day after the termination 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 or the Change in Control Agreement,
either party agrees to 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 Greyhound, 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, Greyhound 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 applicable),
finds that the Executive’s position in such proceeding was frivolous.

IN WITNESS WHEREOF, the parties have executed this Agreement on this ___day of January, 2005.

	 	 	 	 	 	 	 
	 	 	GREYHOUND LINES, INC.
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	 	
	 	 
	 	 	Name: Stephen E. Gorman
	 	 	Title: President and Chief Executive Officer
	 
	 	 	 	 	 	 
	 	 	LAIDLAW INTERNATIONAL INC.
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	 	
	 	 
	 	 	Name: Kevin Benson
	 	 	Title: President and Chief Executive Officer
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE
	 
	 	 	 	 	 	 
	 	 	

	 	 	John Werner Haugsland

11

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