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                                                                    EXHIBIT 10.8

                   AFFILIATED COMPANIES DEMAND LOAN AGREEMENT

         THIS AFFILIATED COMPANIES DEMAND LOAN AGREEMENT made as of March 16,
1999, by and among Laidlaw Transportation, Inc. and Greyhound Lines, Inc. and
its present and any future affiliated companies (as hereinafter defined), which
affiliated companies, including Greyhound Lines, Inc. are hereinafter
collectively referred to as the "Affiliates" or individually referred to as an
"Affiliate".

         WHEREAS, the Affiliates which are parties to this Agreement wish to
provide for the payment of loans and interest charges on any and all
intercompany indebtedness by or among any of the Affiliates.

         NOW, THEREFORE, in consideration of the mutual covenants herein set out
and intending to be legally bound, the Affiliates which are parties to this
Agreement agree each with the others as follows:

1.       Definitions:

         For the purposes of this Agreement:

         (a)      A company is an "affiliate" of, or a company is "affiliated"
                  with another specified company if it, directly or indirectly,
                  through one or more intermediaries, controls, is controlled by
                  or is under common control with the other specified company;

         (b)      "Control" means (i) the possession, direct or indirect, of the
                  power to direct or cause the direction of the management and
                  policies of a company, or (ii) the ownership, directly or
                  indirectly, of shares possessing more than 80% of the voting
                  power of all of the shares of a company.

2.       Intercompany Loans.

         Any intercompany loan or indebtedness which is shown on the books and
         records of any Affiliate and which has been received or advanced from
         another Affiliate shall hereby be deemed to be an intercompany loan
         made between such Affiliates which shall be due and payable in full,
         together with interest thereon as set out below, upon demand made by
         the Affiliate advancing the intercompany loan.

3.       Interest Charges.

         An Affiliate which receives an intercompany loan from any of the other
         Affiliates shall pay interest on such intercompany loan calculated
         quarterly at the prime rate of interest in effect at the First National
         Bank of Chicago plus a percentage thereon, not to exceed two percent
         (2%), as may be determined by Laidlaw Transportation, Inc. from time to
         time.

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4.       Interest Payments.

         The interest charges set out in Section 3 above shall be payable by the
         Affiliate which received an intercompany loan to the Affiliate which
         makes such intercompany loan annually on the anniversary date of the
         intercompany loan.

5.       Further Actions.

         The Affiliates shall take such further actions and shall execute such
         further documents or instruments as may be reasonably necessary to
         fulfill or give force and effect to this Agreement.

6.       Successors and Assigns.

         This Agreement shall be binding upon and ensure to the benefit of the
         Affiliates which are parties hereto and their respective successors and
         assigns.

7.       Additional Parties and Withdrawal.

         An Affiliate may join in this Agreement at any time, by duly adopted
         resolution of its Board of Directors and by giving notice thereof to
         Laidlaw Transportation, Inc., and shall thereafter be bound by the
         terms hereof together with all other Affiliates then parties hereto.
         Any Affiliate may withdraw from this Agreement by giving 30 days'
         written notice of its withdrawal to the other Affiliates then party to
         this Agreement, which giving of notice may be effected by the delivery
         thereof to Laidlaw Transportation, Inc.

8.       Governing Law.

         This Agreement shall be governed by and interpreted in accordance with
         the laws in force in the State of Delaware, and the Affiliates hereby
         attorn to the jurisdiction of the courts of that State.

9.       Effective Date.

         This Agreement shall commence as of March 16, 1999 and shall continue
         in force and effect for all taxable years thereafter until terminated.
         This Agreement shall terminate and supersede any and all prior
         intercompany loan agreements between Greyhound Lines, Inc. and its
         affiliates.

         IN WITNESS WHEREOF this Agreement has been duly adopted by the Boards
of Directors of each of the Affiliates which are parties hereto.

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LAIDLAW TRANSPORTATION, INC.

By:      /s/  Ivan R. Cairns
   ---------------------------------------------
         IVAN R. CAIRNS
         Senior Vice President

GREYHOUND LINES, INC.

By:      /s/ Craig R. Lentzsch
   ---------------------------------------------
         CRAIG R. LENTZSCH
         President and Chief Executive Officer

ASI ASSOCIATES, INC.

By:      /s/ Craig R. Lentzsch
   ---------------------------------------------
         CRAIG R. LENTZSCH
         Chief Executive Officer

ATLANTIC GREYHOUND LINES OF
VIRGINIA, INC.

By:      /s/ Craig R. Lentzsch
   ---------------------------------------------
         CRAIG R. LENTZSCH
         Chairman of the Board and President
         and Chief Executive Officer

CAROLINA ASSOCIATES, INC.

By:      /s/ Craig R. Lentzsch
   ---------------------------------------------
         CRAIG R. LENTZSCH
         Chief Executive Officer

CAROLINA COACH COMPANY

By:      /s/ Craig R. Lentzsch
   ---------------------------------------------
         CRAIG R. LENTZSCH
         Chief Executive Officer

GLI HOLDING COMPANY

By:      /s/ Craig R. Lentzsch
   ---------------------------------------------
         CRAIG R. LENTZSCH
         President and Chief Executive Officer

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

By:      /s/ Craig R. Lentzsch
   ---------------------------------------------
         CRAIG R. LENTZSCH
         President

GRUPO CENTRO, INC.

By:      /s/ Craig R. Lentzsch
   ---------------------------------------------
         CRAIG R. LENTZSCH
         President

LOS BUENOS LEASING CO., INC.

By:      /s/ Alfonso Penedo
   ---------------------------------------------
         ALFONSO PENEDO
         President and Chief Executive Officer
         and General Manager

LSX DELIVERY, L.L.C.

By: :    /s/ Craig R. Lentzsch
   ---------------------------------------------
         CRAIG R. LENTZSCH
         Chairman of the Board

ON TIME DELIVERY SERVICE, INC.

By:      /s/ Craig R. Lentzsch
   ---------------------------------------------
         CRAIG R. LENTZSCH
         Chairman of the Board

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PRB ACQUISITION, LLC

By:      /s/ Craig R. Lentzsch
   ---------------------------------------------
         CRAIG R. LENTZSCH
         Chief Executive Officer and President

RED BUS SYSTEMS, INC.

By:      /s/ Craig R. Lentzsch
   ---------------------------------------------
         CRAIG R. LENTZSCH
         Chief Executive Officer

SEASHORE TRANSPORTATION COMPANY

By:      /s/ Craig R. Lentzsch
   ---------------------------------------------
         CRAIG R. LENTZSCH
         Chief Executive Officer

SET ACQUISITION CORP.

By:      /s/ Craig R. Lentzsch
   ---------------------------------------------
         CRAIG R. LENTZSCH
         President

SISTEMA INTERNACIONAL DE
TRANSPORTE DE AUTOBUSES, INC.

By:      /s/ Craig R. Lentzsch
   ---------------------------------------------
         CRAIG R. LENTZSCH
         President and Chief Executive Officer

TEXAS, NEW MEXICO & OKLAHOMA COACHES, INC.

By:      /s/ Craig R. Lentzsch
   ---------------------------------------------
         CRAIG R. LENTZSCH
         Chief Executive Officer

T.N.M. & O. TOURS, INC.

By:      /s/ Craig R. Lentzsch
   ---------------------------------------------
         CRAIG R. LENTZSCH
         Chief Executive Officer

VALLEY GARAGE COMPANY

By:      /s/ Craig R. Lentzsch
   ---------------------------------------------
         CRAIG R. LENTZSCH
         Chief Executive Officer

VALLEY TRANSIT CO., INC.

By:      /s/ Craig R. Lentzsch
   ---------------------------------------------
         CRAIG R. LENTZSCH
         Chief Executive Officer

VERMONT TRANSIT CO., INC.

By:      /s/ Craig R. Lentzsch
   ---------------------------------------------
         CRAIG R. LENTZSCH
         President and Chief Executive Officer

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                                                                    EXHIBIT 10.9

                                   SCHEDULE A

                            TAX ALLOCATION AGREEMENT

         TAX ALLOCATION AGREEMENT, made this 1st day of June, 1982, by and among
Laidlaw Transportation, Inc. ("Parent") and the subsidiaries of Parent that are
includible in the consolidated federal income tax return of the Parent
affiliated group for the taxable year beginning on September 1, 1981 or for any
subsequent taxable year with respect to which Parent files a consolidated
federal income tax return as the common parent corporation of an affiliated
group (the "Subsidiaries").

         Parent and the Subsidiaries (the "Affiliated Group") wish to provide
for payment of the consolidated federal income tax liability of the Affiliated
Group by Parent; for the contribution to such payment by the various members of
the Affiliated Group, including Parent to which such liability is attributable
in whole or in part; and for the reimbursement by members of the Affiliated
Group that benefit from any losses or credits of members of the Affiliated Group
in an amount which is agreed upon in writing annually by affected members.

         In consideration of the foregoing, and of the mutual covenants and
promises herein contained, Parent and the Subsidiaries agree as follows:

1.       Tax Liability of Group. The tax liability of the Affiliated Group for
         the taxable year in question shall be the consolidated tax liability as
         determined in Form 1120 (Corporate Income Tax Return) filed by the
         members of the Group. In years in which a consolidated tax liability
         exists, each member (including Parent, as the case may be) shall make
         payment to the Parent of an amount no less than its pro-rata share of
         such liability. This amount shall be derived by a formula in which the
         aggregate of all separate tax return liabilities is the denominator and
         each member's separate tax liability is the numerator. The separate
         return liabilities shall be determined by applying consolidated return
         limitations on all appropriate items such as capital gains, investment
         tax credits and charitable contributions.

2.       Tax Benefits of Group. The tax benefits enjoyed by the Affiliated Group
         for the taxable year in question as a result of losses, deductions or
         credits of any member or members of the Affiliated Group shall be
         ascertained by comparing the consolidated tax return liability to the
         sum of the separate tax return liabilities of all members with such
         liabilities. The tax benefits will then be allocated to each of those
         members who actually contributed such benefits. Each such member who
         contributed benefits will be compensated by those members who realized
         the benefits in an amount determined annually as negotiated between the
         members. Such amount of negotiated payment represents the "Tax Benefit
         Liability".

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3.       Payment for Tax Benefits of Group. The Tax Benefit Liability shall be
         paid to the respective Members within a reasonable time period after
         the annual filing of the consolidated tax return. All computations of
         tax benefit amounts shall be substantiated by specific records
         maintained by the Affiliated Group.

4.       Adjustments. Any adjustment of income, deduction or credit that results
         after the taxable year in question by reason of any carryback, amended
         return, claim for refund, or audit shall be given effect by
         redetermining amounts payable and reimbursable for such taxable year
         hereunder as if such adjustment had been part of the original
         determination hereunder. The amount of any adjustment shall reflect any
         interest actually due to the United States or to the Affiliated Group
         as a result thereof. Any penalties imposed with respect to any
         consolidated return filed on behalf of the Affiliated Group shall be
         the sole responsibility of Parent. Cessation of membership in the
         Affiliated Group shall not deprive a corporation of its Tax Benefit
         Liability amounts, or of any payment otherwise due to it, hereunder.

5.       Payments. The Parent may request from any member of the Affiliated
         Group a contribution towards estimated tax payments in an amount equal
         to the expected pro-rata portion of the consolidated tax liability of
         each such member. Such requested payments shall be offset against the
         final liability of each such member and appropriate refunds or requests
         for additional payments shall be made whenever the consolidated tax
         liability for the year becomes reasonably ascertainable.

6.       Effective Date. The Agreement shall be effective for the taxable year
         of the Affiliated Group ended August 31, 1982 and for all taxable years
         thereafter.

7.       Governing Law. This Agreement shall be governed by the laws applicable
         to contracts entered into and to be fully performed within the State of
         Illinois by residents thereof.

8.       Successors and Assigns. This Agreement shall be binding upon and shall
         inure to the benefit of, the parties hereto and their respective
         successors and assigns.

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