EXHIBIT 10.9

                              EMPLOYMENT AGREEMENT

      This Employment Agreement (the "Agreement") by and between Coach USA,
Inc., a Delaware corporation ("the Company"), and Barnett Rukin ("Employee") is
hereby entered into and effective as of the 31st day of July, 1998. This
Agreement hereby supersedes any other employment agreements or understandings,
written or oral, between the Company and Employee.

                                 R E C I T A L S

      The following statements are true and correct:

      As of the date of this Agreement, the Company is engaged primarily in the
business of providing passenger ground transportation services.

      Employee is employed hereunder by the Company in a confidential
relationship wherein Employee, in the course of Employee's employment with the
Company, has and will continue to become familiar with and aware of information
as to the Company's customers, specific manner of doing business, including the
processes, techniques and trade secrets utilized by the Company, and future
plans with respect thereto, all of which has been and will be established and
maintained at great expense to the Company; this information is a trade secret
and constitutes the valuable good will of the Company.

      Therefore, in consideration of the mutual promises, terms, covenants and
conditions set forth herein and the performance of each, it is hereby agreed as
follows:

                               A G R E E M E N T S

      1. EMPLOYMENT AND DUTIES.

      (a) The Company hereby employs Employee as its Senior Regional Vice
President for the Northeast Region or such other position of equal or higher
rank as designated by the Board of Directors. As such, Employee shall have
responsibilities, duties and authority reasonably accorded to and expected of
such position and will report directly to the Chief Operating Officer of the
Company. Employee hereby accepts this employment upon the terms and conditions
herein contained and, subject to paragraph 1(c), agrees to devote Employee's
time, attention and efforts to promote and further the business of the Company.

      (b) Employee shall faithfully adhere to, execute and fulfill all policies
established by the Company.

      (c) Employee shall not, during the term of Employee's employment
hereunder, be engaged in any other business activity pursued for gain, profit or
other pecuniary advantage if such activity interferes with Employee's duties and
responsibilities hereunder. The foregoing limitations


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shall not be construed as prohibiting Employee from making or managing personal
investments in such form or manner as will not violate the terms of paragraph 3
hereof.

      (d) During the first three years after the date hereof, the Company shall
nominate the Employee to the Company's Board of Directors at each election of
directors, subject to the vote of the stockholders of the Company.

      2. COMPENSATION. For all services rendered by Employee, the Company shall
compensate Employee as follows:

      (a) BASE SALARY. The base salary payable to Employee shall be $260,000 per
year, payable on a regular basis in accordance with the Company's standard
payroll procedures. On each anniversary date of this Agreement during the term,
Employee's base salary shall increase by not less than the average percentage
increase in the salaries of the senior management of the Company.

      (b) INCENTIVE BONUS PLAN. For 1998 and subsequent years of the term, the
Employee shall be eligible to participate in the Company's Incentive Bonus Plan,
which sets forth the criteria under which key employees, as designated by the
Chief Operating Officer may be eligible to receive year-end bonus awards.

      (c) EXECUTIVE PERQUISITES, BENEFITS AND OTHER COMPENSATION. Employee shall
be entitled to receive additional benefits and compensation from the Company in
such form and to such extent as specified below:

            (i) Admittance for participation for Employee and Employee's
      dependent family members under health, hospitalization, disability,
      dental, life and other insurance plans that the Company may have in effect
      from time to time, with benefits provided to Employee under this clause
      (i) to be at least equal to such benefits provided to Company executives.

            (ii) Reimbursement for all business travel and other out-of-pocket
      expenses reasonably incurred by Employee in the performance of Employee's
      services pursuant to this Agreement. All reimbursable expenses shall be
      appropriately documented in reasonable detail by Employee upon submission
      of any request for reimbursement, and in a format and manner consistent
      with the Company's expense reporting policy.

            (iii) The Company shall provide Employee with other executive
      perquisites as may be available to or deemed appropriate for Employee by
      the Board and participation in all other Company-wide employee benefits as
      available from time to time.


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      3. NON-COMPETITION AGREEMENT.

      (a) Employee will not, during the period of Employee's employment by or
with the Company, and for a period of two (2) years immediately following the
termination of Employee's employment under this Agreement, for any reason
whatsoever, directly or indirectly, for Employee or on behalf of or in
conjunction with any other person, persons, company, partnership, corporation or
business of whatever nature:

            (i) engage, as an officer, director, shareholder, owner, partner,
      joint venturer, or in a managerial or advisory capacity, whether as an
      employee, independent contractor, consultant or advisor, or as a sales
      representative, in any business offering any services or products in
      direct competition with the Company or any of its subsidiaries within 100
      miles of where the Company or any of its subsidiaries conducts business,
      including any territory serviced by the Company or any of its subsidiaries
      (the "Territory");

            (ii) call upon any person who is, at that time, within the
      Territory, an employee of the Company (including the subsidiaries thereof)
      in a managerial capacity for the purpose or with the intent of enticing
      such employee away from or out of the employ of the Company (including the
      subsidiaries thereof);

            (iii) call upon any person or entity which is, at that time, or
      which has been, within one (1) year prior to that time, a customer of the
      Company (including the subsidiaries thereof) within the Territory for the
      purpose of soliciting or selling products or services in direct
      competition with the Company within the Territory; or

            (iv) call upon any prospective acquisition candidate, on Employee's
      own behalf or on behalf of any competitor, which candidate was, to
      Employee's actual knowledge after due inquiry, either called upon by the
      Company (including the subsidiaries thereof) or for which the Company made
      an acquisition analysis, for the purpose of acquiring such entity.

      Notwithstanding the above, the foregoing covenant shall not be deemed to
prohibit Employee from acquiring as an investment not more than four and
nine-tenths percent (4.9%) of the capital stock of a competing business, whose
stock is traded on a national securities exchange or over-the-counter.

      (b) Because of the difficulty of measuring economic losses to the Company
as a result of a breach of the foregoing covenant, and because of the immediate
and irreparable damage that could be caused to the Company for which they would
have no other adequate remedy, Employee agrees that the foregoing covenant may
be enforced by the Company in the event of breach by Employee, by injunctions
and restraining orders.

      (c) It is agreed by the parties that the foregoing covenants in this
paragraph 3 impose a reasonable restraint on Employee in light of the activities
and business of the Company (including


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the Company's subsidiaries) on the date of the execution of this Agreement and
the current plans of the Company (including the Company's subsidiaries); but it
is also the intent of the Company and Employee that such covenants be construed
and enforced in accordance with the changing activities, business and locations
of the Company (including the Company's subsidiaries) throughout the term of
this covenant, whether before or after the date of termination of the employment
of Employee. For example, if, during the term of this Agreement, the Company
(including the Company's subsidiaries) engages in new and different activities,
enters a new business or establishes new locations for its current activities or
business in addition to or other than the activities or business enumerated
under the Recitals above or the locations currently established therefor, then
Employee will be precluded from soliciting the customers or employees of such
new activities or business or from such new location and from directly competing
with such new business within 100 miles of its then-established operating
location(s) through the term of this covenant.

      It is further agreed by the parties hereto that, in the event that
Employee shall cease to be employed hereunder, and shall enter into a business
or pursue other activities not in competition with the Company (including the
Company's subsidiaries), or similar activities or business in locations the
operation of which, under such circumstances, does not violate clause (i) of
this paragraph 3, and in any event such new business, activities or location are
not in violation of this paragraph 3 or of Employee's obligations under this
paragraph 3, if any, Employee shall not be chargeable with a violation of this
paragraph 3 if the Company (including the Company's subsidiaries) shall
thereafter enter the same, similar or a competitive (i) business, (ii) course of
activities or (iii) location, as applicable.

      (d) The covenants in this paragraph 3 are severable and separate, and the
unenforceability of any specific covenant shall not affect the provisions of any
other covenant. Moreover, in the event any court of competent jurisdiction shall
determine that the scope, time or territorial restrictions set forth are
unreasonable, then it is the intention of the parties that such restrictions be
enforced to the fullest extent which the court deems reasonable, and the
Agreement shall thereby be reformed.

      (e) All of the covenants in this paragraph 3 shall be construed as an
agreement independent of any other provision in this Agreement, and the
existence of any claim or cause of action of Employee against the Company,
whether predicated on this Agreement or otherwise, shall not constitute a
defense to the enforcement by the Company of such covenants. It is specifically
agreed that the period of two (2) years following termination of employment
stated at the beginning of this paragraph 3, during which the agreements and
covenants of Employee made in this paragraph 3 shall be effective, shall be
computed by excluding from such computation any time during which Employee is in
violation of any provision of this paragraph 3.

      (f) Employee agrees that the covenants and agreements of Employee in this
paragraph 3, and in paragraphs 5, 6 and 7 below, are in addition to, independent
of, and made for consideration that is not the same as the consideration
received by Employee for any similar covenants and agreements of Employee
contained in any other agreement of any nature between Employee and the


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Company including but not limited to any covenants and agreements of Employee in
any other agreement of any nature whatsoever between Employee and the Company.

      4. PLACE OF PERFORMANCE.

      (a) Employee understands that Employee may be requested by the Board to
relocate from Employee's present residence to another geographic location in
order to more efficiently carry out Employee's duties and responsibilities under
this Agreement or as part of a promotion or other increase in duties and
responsibilities. In such event, if Employee agrees to relocate, the Company
will pay all relocation costs to move Employee, Employee's immediate family and
their personal property and effects. Such costs may include, by way of example,
but are not limited to, pre-move visits to search for a new residence,
investigate schools or for other purposes; temporary lodging and living costs
prior to moving into a new permanent residence; duplicate home carrying costs;
all closing costs on the sale of Employee's present residence and on the
purchase of a comparable residence in the new location; and added income taxes
that Employee may incur if any relocation costs are not deductible for tax
purposes. The general intent of the foregoing is that Employee shall not
personally bear any out-of-pocket cost as a result of the relocation, with an
understanding that Employee will use Employee's best efforts to incur only those
costs which are reasonable and necessary to effect a smooth, efficient and
orderly relocation with minimal disruption to the business affairs of the
Company and the personal life of Employee and Employee's family.

      (b) Notwithstanding the above, if Employee is requested by the Board to
relocate and Employee refuses, such refusal shall not constitute "cause" for
termination of this Agreement under the terms of paragraph 5(c).

      5. TERM; TERMINATION; RIGHTS ON TERMINATION. The term of this Agreement
shall begin on the date hereof and continue for three (3) years (the "Term"),
unless terminated sooner as herein provided. This Agreement and Employee's
employment may be terminated in any one of the followings ways:

      (a) DEATH. The death of Employee shall immediately terminate this
Agreement with no severance compensation due to Employee's estate.

      (b) DISABILITY. If, as a result of incapacity due to physical or mental
illness or injury, Employee shall have been absent from full-time duties
hereunder for four (4) consecutive months, then thirty (30) days after receiving
written notice (which notice may occur before or after the end of such four (4)
month period, but which shall not be effective earlier than the last day of such
four (4) month period), the Company may terminate Employee's employment
hereunder provided Employee is unable to resume full-time duties at the
conclusion of such notice period. Also, Employee may terminate Employee's
employment hereunder if Employee's health should become impaired to an extent
that makes the continued performance of Employee's duties hereunder hazardous to
Employee's physical or mental health or life, provided that Employee shall have
furnished the Company with a written statement from a qualified doctor to such
effect and provided,


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further, that, at the Company's request made within thirty (30) days of the date
of such written statement, Employee shall submit to an examination by a doctor
selected by the Company who is reasonably acceptable to Employee or Employee's
doctor and such doctor shall have concurred in the conclusion of Employee's
doctor. In the event this Agreement is terminated as a result of Employee's
disability, Employee shall receive from the Company, in a lump-sum payment due
within ten (10) days of the effective date of termination, the compensation
specified in paragraph 2 above for one (1) year.

      (c) GOOD CAUSE. The Company may terminate the Agreement ten (10) days
after written notice to Employee for good cause, which shall be: (1) Employee's
gross negligence in the performance or intentional nonperformance (continuing
for ten (10) days after receipt of written notice of need to cure) of any of
Employee's material duties and responsibilities hereunder; or (2) Employee's
conviction of a felony crime. In the event of a termination for good cause, as
enumerated above, Employee shall have no right to any severance compensation.

      (d) WITHOUT CAUSE. At any time after the commencement of employment, the
Company or Employee may, without cause, terminate this Agreement and Employee's
employment, effective thirty (30) days after written notice is provided to or
from the Company. Should Employee be terminated by the Company without cause
during the Term or should Employee resign by reason of Employer's material
violation of this Agreement, Employee shall receive from the Company, in a
lump-sum payment due within ten (10) days of the effective date of termination,
an amount equal to the Employee's compensation specified in paragraph 2 above
for the remainder of the Term. Further, any termination without cause by the
Company shall operate to shorten the period set forth in paragraph 3(a) and
during which the terms of paragraph 3 apply to one (1) year from the date of
termination of employment. If Employee resigns or otherwise terminates
Employee's employment pursuant to this paragraph 5(d) for any reason other than
Employer's material violation of this Agreement, Employee shall receive no
severance compensation.

      Upon termination of this Agreement for any reason provided above, Employee
shall be entitled to receive all compensation earned and all benefits and
reimbursements due through the effective date of termination. Additional
compensation subsequent to termination, if any, will be due and payable to
Employee only to the extent and in the manner expressly provided above. All
other rights and obligations of the Company and Employee under this Agreement
shall cease as of the effective date of termination, except that the Company's
obligations under paragraph 9 herein and Employee's obligations under paragraphs
3, 6, 7, 8 and 10 herein shall survive such termination in accordance with their
terms.

      If termination of Employee's employment arises out of the Company's
failure to pay Employee on a timely basis the amounts to which Employee is
entitled under this Agreement or as a result of any other breach of this
Agreement by the Company, as determined by a court of competent jurisdiction or
pursuant to the provisions of paragraph 15 below, the Company shall pay all
amounts and damages to which Employee may be entitled as a result of such
breach, including interest thereon and all reasonable legal fees and expenses
and other costs incurred by Employee to


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enforce Employee's rights hereunder. Further, none of the provisions of
paragraph 3 shall apply in the event this Agreement is terminated as a result of
a breach by the Company.

      6. RETURN OF COMPANY PROPERTY. All records, designs, patents, business
plans, financial statements, manuals, memoranda, lists and other property
delivered to or compiled by Employee by or on behalf of the Company or its
representatives, vendors or customers which pertain to the business of the
Company shall be and remain the property of the Company and be subject at all
times to their discretion and control. Likewise, all correspondence, reports,
records, charts, advertising materials and other similar data pertaining to the
business, activities or future plans of the Company which is collected by
Employee shall be delivered promptly to the Company without request by it upon
termination of Employee's employment.

      7. INVENTIONS. Employee shall disclose promptly to the Company any and all
significant conceptions and ideas for inventions, improvements and valuable
discoveries, whether patentable or not, which are conceived or made by Employee,
solely or jointly with another, during the period of employment, and which are
directly related to the business or activities of the Company and which Employee
conceives as a result of Employee's employment by the Company. Employee hereby
assigns and agrees to assign all Employee's interests therein to the Company or
its nominee. Whenever requested to do so by the Company, Employee shall execute
any and all applications, assignments or other instruments that the Company
shall deem necessary to apply for and obtain Letters Patent of the United States
or any foreign country or to otherwise protect the Company's interest therein.

      8. TRADE SECRETS. Employee agrees that Employee will not, during or after
the Term of this Agreement with the Company, disclose the specific terms of the
Company's relationships or agreements with their respective significant vendors
or customers or any other significant and material trade secret of the Company
whether in existence or proposed, to any person, firm, partnership, corporation
or business for any reason or purpose whatsoever.

      9. INDEMNIFICATION. In the event Employee is made a party to any
threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative (other than an action by the Company
against Employee), by reason of the fact that Employee is or was performing
services under this Agreement, then the Company shall indemnify Employee against
all expenses (including attorneys' fees), judgments, fines and amounts paid in
settlement, as actually and reasonably incurred by Employee in connection
therewith. In the event that both Employee and the Company are made a party to
the same third-party action, complaint, suit or proceeding, the Company agrees
to engage competent legal representation, and Employee agrees to use the same
representation, provided that if counsel selected by the Company shall have a
conflict of interest that prevents such counsel from representing Employee,
Employee may engage separate counsel and the Company shall pay all attorneys'
fees of such separate counsel. Further, while Employee is expected at all times
to use Employee's best efforts to faithfully discharge Employee's duties under
this Agreement, Employee cannot be held liable to the Company for errors or
omissions made in good


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faith where Employee has not exhibited gross, willful and wanton negligence and
misconduct or performed criminal and fraudulent acts which materially damage the
business of the Company.

      10. NO PRIOR AGREEMENTS. Employee hereby represents and warrants to the
Company that the execution of this Agreement by Employee and Employee's
employment by the Company and the performance of Employee's duties hereunder
will not violate or be a breach of any agreement with a former employer, client
or any other person or entity. Further, Employee agrees to indemnify the Company
for any claim, including, but not limited to, attorneys' fees and expenses of
investigation, by any such third party that such third party may now have or may
hereafter come to have against the Company based upon or arising out of any
non-competition agreement, invention or secrecy agreement between Employee and
such third party which was in existence as of the date of this Agreement.

      11. ASSIGNMENT; BINDING EFFECT. Employee understands that Employee has
been selected for employment by the Company on the basis of Employee's personal
qualifications, experience and skills. Employee agrees, therefore, that Employee
cannot assign all or any portion of Employee's performance under this Agreement.
Subject to the preceding two (2) sentences, this Agreement shall be binding
upon, inure to the benefit of and be enforceable by the parties hereto and their
respective heirs, legal representatives, successors and assigns.

      12. COMPLETE AGREEMENT. This Agreement is not a promise of future
employment. Employee has no oral representations, understandings or agreements
with the Company or any of its officers, directors or representatives covering
the same subject matter as this Agreement. This written Agreement is the final,
complete and exclusive statement and expression of the agreement between the
Company and Employee and of all the terms of this Agreement, and it cannot be
varied, contradicted or supplemented by evidence of any prior or contemporaneous
oral or written agreements. This written Agreement may not be later modified
except by a further writing signed by a duly authorized officer of the Company
and Employee, and no term of this Agreement may be waived except by writing
signed by the party waiving the benefit of such term.

      13. NOTICE. Whenever any notice is required hereunder, it shall be given
in writing addressed as follows:

      To the Company:   Coach USA, Inc.
                        One Riverway, Suite 500
                        Houston, Texas 77056-1903
                        Attn: Chief Operating Officer

      with a copy to:   Law Department
                        Coach USA, Inc.
                        One Riverway, Suite 500
                        Houston, Texas 77056-1903


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      To Employee:      Barnett Rukin
                        17 Franklin Turnpike
                        Mahwah, New Jersey 07430

      with a copy to:   Keith E. Osber, Esq.
                        Hinman, Howard & Kattell, LLP
                        700 Security Mutual Building
                        80 Exchange Street
                        P.O. Box 5250
                        Binghamton, New York 13902-5250


      Notice shall be deemed given and effective three (3) days after the
deposit in the U.S. mail of a writing addressed as above and sent first class
mail, certified, return receipt requested, or when actually received. Either
party may change the address for notice by notifying the other party of such
change in accordance with this paragraph 13.

      14. SEVERABILITY; HEADINGS. If any portion of this Agreement is held
invalid or inoperative, the other portions of this Agreement shall be deemed
valid and operative and, so far as is reasonable and possible, effect shall be
given to the intent manifested by the portion held invalid or inoperative. The
paragraph headings herein are for reference purposes only and are not intended
in any way to describe, interpret, define or limit the extent or intent of the
Agreement or of any part hereof.

      15. ARBITRATION. Any unresolved dispute or controversy arising under or in
connection with this Agreement shall be settled exclusively by arbitration,
conducted before a panel of three (3) arbitrators in New York, New York in
accordance with the rules of the American Arbitration Association then in
effect. The arbitrators shall not have the authority to add to, detract from, or
modify any provision hereof nor to award punitive damages to any injured party.
The arbitrators shall have the authority to order back-pay, severance
compensation, vesting of options (or cash compensation in lieu of vesting of
options), reimbursement of costs, including those incurred to enforce this
Agreement, and interest thereon in the event the arbitrators determine that
Employee was terminated without disability or good cause, as defined in
paragraphs 5(b) and 5(c), respectively, or that the Company has otherwise
materially breached this Agreement. A decision by a majority of the arbitration
panel shall be final and binding. Judgment may be entered on the arbitrators'
award in any court having jurisdiction. The direct expense of any arbitration
proceeding shall be borne by the Company.

      16. GOVERNING LAW. This Agreement shall in all respects be construed
according to the laws of the State of New York.


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      17. COUNTERPARTS. This Agreement may be executed simultaneously in two (2)
or more counterparts, each of which shall be deemed an original and all of which
together shall constitute but one and the same instrument.



      IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above written.


                                          COACH USA, INC.



                                          By: /s/ DOUGLAS M. CERNY
                                          Name:   Douglas M. Cerny
                                          Title:  Sr. Vice President

                                          EMPLOYEE:


                                          /S/ BARNETT RUKIN
                                              Barnett Rukin