Laidlaw Transportation, Inc. and Subsidiaries - Page 10

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          C$1.5 million6 in 1969, which it used to repay bank debts and buy           
          more businesses.  LTL stock was traded on stock exchanges in                
          Canada and the United States by August 31, 1988 (the end of LTL's           
          1988 tax year).                                                             
               LTL and its subsidiaries grew rapidly before and during the            
          years in issue.  DeGroote acquired businesses that provided                 
          trucking, solid waste services, and passenger and school bus                
          services.  These businesses used heavy vehicles to transport                
          materials or people and needed governmental licenses or permits             
          to operate.  DeGroote believed that the fastest way to expand in            
          these businesses was to buy small privately-held businesses which           
          had existing licenses and permits.                                          
               4.   LTL's Management Team                                             
               The core management team of the Laidlaw entities during the            
          years in issue consisted of DeGroote, Leslie W. Haworth                     
          (Haworth), and Ivan R. Cairns (Cairns).  Haworth became LTL's               
          senior financial officer in 1972 and later became senior vice               
          president for finance.  Cairns became LTL's vice president,                 
          general counsel, and secretary in 1981.  He later became senior             
          vice president.  Cairns and Haworth were DeGroote's two closest             
          advisors on acquisitions, financing, and other matters.  They               
          were directors and officers of LTL and all of its subsidiaries              
          relevant to these cases before and during the years in issue.               

               6 All references to "C$" are to Canadian dollars.  All                 
          references to "$" are to U.S. dollars.                                      

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