<PAGE>   1



                                                                   EXHIBIT 10.17

                              TERMINATION AGREEMENT

         THIS TERMINATION AGREEMENT (this "Agreement") is entered into as of
October 24, 2000 by and among Laidlaw Transportation, Inc. ("LTI"), a Delaware
corporation, Greyhound Lines, Inc. ("Greyhound"), a Delaware corporation, and
the subsidiaries of Greyhound listed on the signature pages hereto (collectively
with Greyhound, the "Subsidiaries").

         WHEREAS, LTI and the Subsidiaries are party to that certain Affiliated
Companies Demand Loan Agreement dated as of March 16, 1999 (the "Loan
Agreement");

         WHEREAS, LTI and the Subsidiaries desire to terminate their rights and
obligations under the Loan Agreement in full, effective as of the date first
written above;

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, LTI and the Subsidiaries hereby
agree as follows:

1.   Termination. LTI acknowledges and agrees that there are no amounts owing to
     it under the Loan Agreement, and therefore LTI and the Subsidiaries agree
     that the Loan Agreement is hereby terminated and all obligations and rights
     of LTI and the Subsidiaries thereunder are hereby extinguished.

2.   Binding Effect. This Agreement shall be binding upon and shall inure to the
     benefit of LTI and the Subsidiaries and each of their respective heirs and
     assigns.

3.   Counterparts. This Agreement may be executed in any number of counterparts,
     each of which shall be deemed to be an original hereof and submissible in
     evidence and all of which when taken together shall be deemed to be a
     single instrument.

4.   Further Assurances. Each of LTI and the Subsidiaries agrees to execute any
     additional agreements or documents evidencing the termination of the Loan
     Agreement as any party hereto may reasonably request.

5.   GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
     GOVERNED BY THE LAWS AND DECISIONS OF THE STATE OF TEXAS.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]



<PAGE>   2



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



LAIDLAW TRANSPORTATION, INC.                GLI HOLDING COMPANY


By:      /s/  IVAN R. CAIRNS                By:      /s/  JEFFREY W. SANDERS
   -----------------------------------        ----------------------------------
         IVAN R. CAIRNS                              JEFFREY W. SANDERS
         Senior Vice President                       Senior V.P. and Chief
                                                     Financial Officer


GREYHOUND LINES, INC.                       GREYHOUND DE MEXICO, S.A. DE C.V.


By:      /s/  JEFFREY W. SANDERS            By:      /s/  JEFFREY W. SANDERS
   -----------------------------------        ----------------------------------
         JEFFREY W. SANDERS                          JEFFREY W. SANDERS
         Senior V.P. and Chief                       Senior V.P. and Chief
         Financial Officer                           Financial Officer


ASI ASSOCIATES, INC.                        ATLANTIC GREYHOUND LINES OF
                                            VIRGINIA, INC.


By:      /s/  JEFFREY W. SANDERS            By:      /s/  JEFFREY W. SANDERS
   -----------------------------------        ----------------------------------
         JEFFREY W. SANDERS                          JEFFREY W. SANDERS
         Senior V.P. and Chief                       Senior V.P. and Chief
         Financial Officer                           Financial Officer


CAROLINA ASSOCIATES, INC.                   LSX DELIVERY, L.L.C.


By:      /s/  JEFFREY W. SANDERS            By:      /s/  JEFFREY W. SANDERS
   -----------------------------------        ----------------------------------
         JEFFREY W. SANDERS                          JEFFREY W. SANDERS
         Senior V.P. and Chief                       Senior V.P. and Chief
         Financial Officer                           Financial Officer


CAROLINA COACH COMPANY                      ON TIME DELIVERY SERVICE, INC.


By:      /s/  JEFFREY W. SANDERS            By:      /s/  JEFFREY W. SANDERS
   -----------------------------------        ----------------------------------
         JEFFREY W. SANDERS                          JEFFREY W. SANDERS
         Senior V.P. and Chief                       Senior V.P. and Chief
         Financial Officer                           Financial Officer


PEORIA ROCKFORD                             T.N.M. & O. TOURS, INC.
BUS LINES, L.L.C.

By:      /s/  JEFFREY W. SANDERS            By:      /s/  JEFFREY W. SANDERS
   -----------------------------------        ----------------------------------
         JEFFREY W. SANDERS                          JEFFREY W. SANDERS
         Senior V.P. and Chief                       Senior V.P. and Chief
         Financial Officer                           Financial Officer

<PAGE>   3

VALLEY GARAGE COMPANY                       VERMONT TRANSIT CO., INC.



By:      /s/  JEFFREY W. SANDERS            By:      /s/  JEFFREY W. SANDERS
   -----------------------------------        ----------------------------------
         JEFFREY W. SANDERS                          JEFFREY W. SANDERS
         Senior V.P. and Chief                       Senior V.P. and Chief
         Financial Officer                           Financial Officer

SEASHORE TRANSPORTATION                     VALLEY TRANSIT CO., INC.
COMPANY


By:      /s/  JEFFREY W. SANDERS            By:      /s/  JEFFREY W. SANDERS
   -----------------------------------        ----------------------------------
         JEFFREY W. SANDERS                          JEFFREY W. SANDERS
         Senior V.P. and Chief                       Senior V.P. and Chief
         Financial Officer                           Financial Officer


SISTEMA INTERNACIONAL DE                    TEXAS, NEW MEXICO & OKLAHOMA
TRANSPORTE DE AUTOBUSES, INC.               COACHES, INC.


By:      /s/  JEFFREY W. SANDERS            By:      /s/  JEFFREY W. SANDERS
   -----------------------------------        ----------------------------------
         JEFFREY W. SANDERS                          JEFFREY W. SANDERS
         Senior V.P. and Chief                       Senior V.P. and Chief
         Financial Officer                           Financial Officer