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                                                                    Exhibit 10.9


                                 LEASE AGREEMENT

PARTIES         THIS LEASE AGREEMENT, made this 5th day of August, 1986, between
                BONNIE HEIGHTS REALTY CORP. having an office at 1 Edgewater
                Plaza, Staten Island, hereinafter referred to as "Landlord", and
                AMBOY BUS CO. a New York corporation having an address at 52 Bay
                View Avenue, Staten Island, New York, hereinafter referred to as
                "Tenant".

                                   WITNESSETH:

                1. Landlord, in consideration of the rents to be paid and the
                covenants and agreements to be performed by Tenant, hereby lets
                and Tenant hereby leases the parcel or parcels of land with
                appurtenances, and improvements thereon thereunto belonging,
DESCRIPTION     hereinafter collectively referred to as the "premises", located
                at l752 Shore Parkway Brooklyn, New York and more particularly
                the office building, garage and appurtenances and vacant land as
                per the survey attached hereto marked Exhibit A excepting there
                from so much of the demised premises as are presently occupied
                by Midwood Carting Co. in the rear of the property used as a
                tranfer station until such time as Midwood Carting Co. ceases to
                be a tenant.

                Landlord represents that Midwood is a month to month tenant;
                that Midwood is obligated to remove debris from portions of the
                premises pursuant to a certain order or orders of the Department
                of Environmental Conservation; landlord will not enter a lease
                with Midwood and shall deliver occupancy to such portions of the
                premises to Tenant within 90 days after such orders are
                satisfied or vacated.

AUTHORIZED      Primarily for use as a storage, parking, maintenance, and
RENT            service establishment of omnibuses including dispatch and
                general offices and all other purposes incidental to such
                service and for any other lawful purpose not injurious to the
TERM            reversion for a term of five (5) years, beginning on the 20th
                day of August, 1986 and ending on the 19th day of August, 1991,
RENT            at a base rental of $3.50 per square foot for the garage and
                office consisting of ______ square feet; $1.25 per square foot
                for the first 80,000 square feet of vacant land and $.90 per
                square foot for the balance
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                of the square footage of vacant land comprising the above
                described premises but at no time during the initial term of
                this lease shall the total rental exceed $310,000 which rent
                shall be payable in equal monthly installments of $25,833
                payable in advance on the first business day of each month
                during the term. It is understood that the rent on vacant land
                does not include that portion on which the garage and office are
                situated. Tenant will commence to pay rent on that portion of
                the premises occupied by Midwood Carting Co. or a portion
                thereof, on the first day of the month after Midwood vacates
                such premises or a portion thereof, but in no event less than
                two (2) weeks after such vacating. Landlord shall use its best
                efforts to require Midwood to clear and vacate 50,000 square
                feet of land within a period of 18 months including commencing
                litigation to compel same.

ADDITIONAL      Tenant agrees during the initial term of this lease to pay, as
RENT            additional rent, all real estate taxes assessed against the
                demised premises in excess of the amount of real estate taxes
                assessed in the "base year." The base year for the purpose of
                this lease shall be the 1986-87 tax year. The Landlord shall be
                responsible for paying the real estate tax on the demised
                premises and will, upon receipt of the tax bill, notify the
                Tenant in writing of the amount of excess that the Tenant shall
                be required to pay as additional rent. The tenant shall remit to
                the Landlord, within thirty (30) days of the receipt of such tax
                bill, the additional amount of real estate tax on its part to be
                paid.

RIGHT TO LET    2. Landlord covenants and warrants that it has the right to let 
AND CONDITION   the premises for the aforesaid use and term on the terms and 
OF PREMISES     conditions herein contained.

POSSESSION      3. Landlord covenants and agrees that the premises will be
                delivered to the Tenant at the commencement of the term, free
                from all tenancies and occupancies except as set forth in
                Schedule B annexed hereto. The Landlord Agrees to assign to the
                tenant all of its rights to remove and dispossess any tenant now
                in possession on expiration of its lease or if the tenant is an
                holdover tenant or a month to month tenancy or hold possession
                of the premises under any other legal right and will agree to
                execute any and all legal documents necessary to give effect to
                this
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                paragraph. It is specifically understood that the removal of the
                tenants and/or occupants by the Tenant herein shall be at
                Tenant's cost and expense unless otherwise agreed to by the
                Landlord.

COVENANT TO     4. Tenant shall make all repairs necessary to keep the premises
REPAIR AND      and the buildings and appurtenances situated thereon in as good
TAKE CARE OF    order and condition as when delivered to it, Tenant represents 
PREMISES        that it has inspected the office building and garage prior to
                occupancy and is satisfied with the conditions of the structure
                and the exterior of the building including the roof and agrees
                to accept same as is.

COVENANT TO     5. Tenant shall pay the specified rent subject to Paragraph One
PAY RENT        (1) and upon expiration of the term remove all personal property
                not attached to the premises and such personal property that may
                be attached that can be readily removed provided the Tenant
                restores the premises to good condition and peacefully yield up
                the premises to the Landlord.

ASSIGNMENT      6. Tenant shall not assign this Lease. The Tenant shall not
                sublet the premises without the written consent of the Landlord,
                which consent shall not be unreasonably withheld. Should the
                Tenant sublet the whole of the demised premises, then this lease
                shall terminate and the Landlord shall have the right to enter
                into a lease with the proposed subleasee upon such terms and
                conditions as the Landlord may specify. Any such sublease shall
                bind the sublessor to perform all of the obligations of the
                Tenant the same as required by the primary lease. In the event
                the sublessee should default in the performance of any
                obligation on its part required to be performed which under the
                primary lease is the obligation of the Tenant, then such
                default, unless cured by the Tenant within fifteen (15) days,
                after the Landlord notifies the Tenant of such default such
                default will be considered a default under this lease. Tenant
                will supply Landlord with a fully executed copy of the
                sub-lease.

MAJOR CHANGES   7. Tenant shall have the right, with the written consent of the 
IN  PREMISES    Landlord, which consent shall not be unreasonably withheld, at 
                its sole cost and expense, to make additions and related
                modifications to the existing building(s) and to the premises at
                any time after the commencement of and during the term of this

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                Lease, subject only to the restriction that such improvements
                shall be constructed in accordance with all applicable laws,
                statutes, ordinances, rulings and codes and Tenant shall not
                permit any mechanic's liens to remain on the premises for a
                period in excess of thirty (30) days from date of filing
                thereof. Tenant in such event shall furnish all appropriate
                insurance and insure Landlord against loss or damages and will
                hold harmless and indemnify Landlord against any liability on
                account thereof. Upon termination of this Lease, title to all
                such improvements shall vest in Landlord.

LANDLORD'S      8. Landlord warrants and represents that the premises may be
REPRESENTATION  used for the purposes herein set forth in Pargraph One (1) of
OF LAWFUL USE   this lease. If any judicial decree, law, ordinance, ruling,
                order or regulation of the United States, State, municipal or
                other governmental unit or agency which now exists or is
                hereafter enacted or created which prohibits, restricts or
                alters the proposed use of the premises by Tenant or its
                subtenant for any one or more of the foregoing purposes, or
                creates or levies any fine or penalty, Tenant may, at its
                option, terminate this Lease and all of its liability hereunder
                shall cease from and after the date of such law, ordinance,
                ruling, regulation, prohibition or penalty becomes effective and
                prepaid rental or other sums prepaid by Tenant shall be
                apportioned and paid to Tenant.

FIRE AND        9. (a) If the premises shall be so damaged by fire, casualty or
OTHER CASUALTY  other cause of happening so as to render the premises unfit for 
                Tenant's proposed use, then this Lease shall terminate at the
                option of Tenant and, if terminated, Tenant's obligation to pay
                rent shall cease and any unearned rent paid in advance shall be
                refunded to Tenant.

                    (b) If the demised premises shall be partially destroyed by
                fire, casualty, or other cause or happening, but not to such an
                extent as to render the premises unfit for Tenant's proposed
                use, then the premises shall be with reasonable dispatch
                restored by Landlord and a portion of the rent specified shall
                abate until the premises shall have been restored. If the
                parties are unable to agree on the amount of such abatement of
                rent, then such dispute shall be settled by arbitration in
                accordance with the rules of the American Arbitration
                Association, with each

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                party paying one-half (1/2) of the cost thereof. In determining
                what constitutes reasonable dispatch consideration shall be
                given to delays caused by strikes, adjustment of insurance and
                other causes beyond the Landlord's control.

                    (c) Notwithstanding the provisions set forth in
                subparagraphs (a) and (b) above, in the event of any such loss,
                Tenant shall not be obligated to replace or rebuild such
                improvements as it may have placed on the premises during the
                term hereof. In the event that the Tenant elects not to
                reconstruct or replace such improvements, applicable insurance
                proceeds shall belong to Tenant and Tenant shall promptly remove
                all debris, walls, footings and any vestige of such
                improvements, fill any excavations with clean fill sand and
                level the area upon which such improvements were located to
                prevailing grade levels.

CONDEMNATION    10. (a) If all of the premises shall be condemned or taken by
AND UNSAFE      lawful authority or if such portion of the premises be so
CONDITION       condemned or taken making it unreasonable or imprudent to use
                the remaining portion for its intended use, this Lease shall
                terminate at Tenant's option as of the date when possession is
                required to be given in such condemnation or taking. The rent
                shall be prorated to such date and all further rights and
                liabilities of the parties under this Lease shall terminate.

                    (b) If a portion of the demised premises shall be condemned
                or taken and such taking does not make it unreasonable or
                imprudent to use the remaining portion for the purposes for
                which the premises were leased, this Lease shall continue as to
                the part not so taken, and Landlord shall, forthwith at its
                expense, restore and reconstruct the original buildings and
                improvements situated on the premises to substantially the same
                extent, quality, condition and functional character, as existed
                prior to such condemnation or taking, to the extent possible on
                the real property thus remaining excluding any improvements
                added by Tenant. The rent specified in Paragraph One (1) shall
                be reduced as of the date of condemnation or taking to an amount
                determined by multiplying said rent by a fraction the numerator
                of which is the value of the premises immediately after such
                condemnation or taking and denominator of which is the value
                immediately before such condemnation or

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                taking. Said rent, as reduced, shall be increased as of the date
                restoration is completed to an amount which bears the same
                proportion to said rent, as reduced, as the value of the
                premises immediately after completion of restoration bears to
                the value immediately after such condemnation or taking. Changes
                in value occurring during the period of restoration not related
                to such restoration shall be disregarded in computing said
                increase. Said rent, as increased, shall not exceed the rent set
                out in Paragraph One (1). Improvements added by Tenant that are
                condemned or taken shall be restored by Tenant at its option.

                    (c) If any lawful authority shall declare the premises
                unsafe and/or order demolition or removal of any structure
                covered by this Lease so as to render the premises unfit for
                Tenant's proposed used, then this Lease at Tenant's option shall
                terminate and the Landlord shall not be required to reconstruct
                any structure demolished or removed. If such declaration or
                order does not render 50% or more of the premises unfit for
                Tenant's proposed use, then Landlord shall promptly comply with
                such declaration or order and commence reconstruction of any
                premises demolished or removed but only as to Landlord's
                improvements and not as to any improvements or additions made by
                Tenant and a portion of the rent specified shall abate until
                such compliance and reconstruction is complete. The rent to be
                paid during the abatement period shall be reduced to an amount
                which bears the same proportion to the rent specified as the
                square footage of the portion of the premises demolished or
                removed bears to the square footage of the entire demised
                premises of the building thereon.

                If the parties are unable to agree on the amount of their shares
                of awards or the amount of adjustments of rent provided for in
                this Paragraph Eleven (11), then such dispute shall be settled
                by arbitration in accordance with the rules of the American
                Arbitration Association, with each party paying one-half (1/2)
                of the cost thereof. Improvements added by Tenant shall be
                disregarded in computing such adjustments of rent.

RIGHT OF ENTRY  11.  Landlord may, during the term of this Lease, at reasonable 
OF LANDLORD     times and during usual business hours, enter the premises to 
                view them, and except, in the event of renewal or extension,
                may, at any time within two (2) months next preceding the
                expiration of
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                the specified term, during normal business hours, show the
                premises to others for the purpose of rental
"FOR SALE"      or sale and may affix to any suitable parts of the 
AND "TO LET"    premises a notice for lease or sale thereof, provided 
SIGNS           such sign or notice shall not interfere with the usual and 
                ordinary conduct to Tenant's business operations.

ALTERATIONS     12. If any alterations or improvements, except painting or wall
OR IMPROVE-     papering, are made at Tenant's expense or if Tenant shall 
MENTS BY        install or acquire ownership of previously installed shelving, 
TENANT, TRADE   lighting fixtures, removable partitions, trade fixtures, 
FIXTURES, INC.  machinery and equipment or advertising signs, they shall remain
                Tenant's property and may be removed prior to termination of
                Tenant's occupancy; provided, however, that Tenant shall repair
                any damage occasioned by removal thereof and shall, at
                Landlord's option, restore or replace any structural parts or
                improvements which may previously have been removed by Tenant.

LANDLORD'S      13. If Tenant shall fail to observe or perform any of its 
REMEDIES IN     obligations under this Lease and shall fail to cure its default
EVENT OF        within thirty (30) days after notice from Landlord to do so or 
DEFAULT,        if Tenant shall be adjudicated bankrupt or become insolvent or 
BANKRUPTCY,     shall make an assignment for the benefit of creditors, then in 
OR INSOLVENCY   any of said events,  Landlord  may lawfully  enter into and upon
OF TENANT       the premises or any part thereof and repossess the same and
                expel the Tenant and persons claiming under and through it, and
                remove any effects, forcibly if necessary, without being guilty
                of trespass and without prejudice to any remedies which may be
                available for arrears or rent or for Tenant's breach of
                covenent. Upon entry as aforesaid, this Lease shall terminate
                and wholly expire, and Tenant covenants that in the event of
                such termination it will indemnify Landlord against all loss of
                rent, which Landlord may incur by reason of such termination
                during the residue of the specified term.

INDEMNIFICA-    14. Tenant agrees to indemnify Landlord against any actions or 
TION OF CLAIMS  claims which may be asserted or brought by third parties 
AGAINST LAND-   against Landlord and which are based upon Tenant's negligent 
LORD            acts or omissions in connection with its use and occupancy of 
                the premises.
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OPTION TO       15. The Tenant is hereby granted an option to renew the lease 
RENEW           after the initial term thereof for an additional period or five
                (5) years upon the same terms and conditions except that the
                rent reserved as base rent as herein set forth in Paragraph One
                (1) shall be increased by the percentage increase of the
                Consumer Price Index from the inseption of the lease to the time
                of the renewal or by an additional 15% of the annual rent so
                reserved, whichever is less. The Tenant agrees to pay during
                such renewal term of five (5) years as additional rent, real
                estate taxes assessed against the demised premises in excess of
                the real estate taxes in the base year which for the purposes of
                this lease shall be the year 1986/1987. The Landlord shall be
                responsible for paying all of the real estate taxes on the
                demised premises and will promptly, upon receipt of the tax
                bill, notify the Tenant in writing, of the amount of excess that
                the Tenant shall be required to pay as additional rent. The
                Tenant shall remit to the Landlord, within thirty (30) days of
                the receipt of such tax bill, the additional amount of real
                estate taxes on its part required to be paid.

                The Tenant is hereby granted an option to renew for a second
                additional period of five years. Upon the same terms and
                conditions except that the rent reserved as base rent as herein
                set forth in Paragraph 1 shall be increased by percentage
                increase of the Consumer Price Index from the inception of the
                lease to the time of renewal. The Tenant agrees to pay during
                such renewal term of five years as additional rent, real estate
                taxes assessed against the demised premises in excess of real
                estate taxes in the base year which for the purpose of this
                lease shall be the year 1986/1987. The procedure for paying such
                taxes shall be the same as previously set forth in this
                paragraph.

                Tenant shall be responsible for the payment of all utilities, to
                wit: gas, electric, water, fuel, on the demised premises and
                shall maintain the buildings thereon at its own cost and
                expense.

                The Consumer Price Index referred to in this Paragraph 15, shall
                be the Consumer Price Index for the New York Metropolitan area.
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                Any option to renew must be exercised in writing 60 days prior
                the expiration date of this lease or any additional term thereof
                by notice to the Landlord at 1 Edgewater Plaza, Staten Island,
                New York.

SUBORDINATION   16. This Lease and all rights of Tenant hereunder are and shall 
OF MORTGAGE     be subject and subordinate to the lien of any mortgage or
                mortgages constituting a first lien on the premises, or any part
                thereof, at the date hereof, and to any mortgage or mortgages,
                consolidated or otherwise, constituting a first lien on the
                premises, hereafter placed on the premises, or any part thereof,
                and made to and accepted by a savings bank, bank, trust or
                insurance company, or other reputable institution, private or
                public, authorized to make mortgage loans in the State of New
                York, and to any and all renewals, modifications, consolidations
                or extensions of any such mortgage or mortgages. Tenant shall,
                upon demand, at any time or times, execute, acknowledge and
                deliver to Landlord, any and all instruments that may be
                necessary or proper to subordinate this Lease and all rights of
                Tenant hereunder to the lien of any such mortgage or mortgages.
                The subordination of this Lease to any such existing or new
                mortgage is expressly conditioned upon the existing or new
                mortgagee, simultaneously with the making of this Lease or of
                such new mortgage, entering into an agreement, in recordable
                form, but its terms binding upon the mortgagee, its successors
                and assigns whereby the mortgagee agrees that in the event that
                it should become necessary to foreclose said mortgage, it will
                cause the sale of said premises to be made subject to this
                Lease, provided that the Tenant is not in default under any of
                the terms, conditions or covenants of this Lease at the time of
                such foreclosure and, in the event of condemnation or damage by
                fire, casualty or other causes as covered by fire and extended
                coverage insurance, the condemnation award or proceeds of such
                insurance shall be used for reconstruction or otherwise
                disbursed as provided herein.

TENANT'S        17. At any time during the term of this Lease, including any
RIGHT OF        renewal or extension hereof, Tenant may, at its option, 
TERMINATION     terminate this Lease. In the event that Tenant so elects to
                terminate, it shall notify Landlord or such termination by
                Registered or Certified United States Mail, Return Receipt
                Requested, and this Lease shall cease and terminate ninety (90)
                days

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                following the postdate of such notice of termination. 

                Not more than fifteen (15) days prior to the Lease termination
                date, as provided hereinabove, and as consideration for such
                cancellation, Tenant shall pay to Landlord the present value of
                the remainder of the base rent due for the balance of the lease
                term then in effect, including taxes, insurance, special
                assessment or any other additional sums payable hereunder and
                excluding any increase in basic rental which may be effective
                subsequent to the termination date. Upon delivery of such funds,
                Landlord shall execute a termination agreement releasing and
                absolving Tenant from any and all obligations, past or future,
                under and pursuant to this Lease. Any prepaid or unpaid rent,
                taxes, insurance, special assessments or similar items shall be
                prorated as of the termination date with payment to Landlord or
                Tenant, as the case may be.

NOTICES         18. All notices to be given hereunder by either party shall be
                in writing and given by personal delivery, certified or
                registered mail to Landlord or to an officer of the Tenant, and
                the date of any notice by certified or registered mail shall be
                deemed to be the date of registration thereof.

MEMORANDUM      19. For the purposes of recording some of the basic terms and
OF LEASE        conditions of this Lease, Landlord and Tenant agree to execute,
                as soon as the commencement date of the original term has been
                determined, a short form of lease. It is understood that such
                short form of Lease is for purposes of recordation only and is
                not intended and shall not in any way modify, amend, supersede
                or otherwise affect this Lease. Tenant agrees not to record this
                lease or memorandum of lease for a period of three (3) years
                after execution of this lease.

SURRENDER       20. Tenant shall, on the last day of the term hereof or of any
                extension or renewal thereof or upon any earlier termination of
                this Lease, surrender and deliver up the premises into the
                possession of the Landlord in the same order, condition and
                repair as when delivered to Tenant, wear and tear, damage by
                fire, explosion or the element excepted.
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QUIET           21. Landlord covenants that if and so long as Tenant pays the 
ENJOYMENT       rent, additional rent and other sum or sums of money and charges
                as herein provided and upon performance of all of the covenants,
                conditions and agreements aforesaid, Tenant shall and may
                preaceably and quietly have, hold and enjoy the premises for the
                term aforesaid, subject, however, to the terms of this Lease.

                22. That if the said premises, or any part thereof shall be
                deserted or become vacant during said term, or if any default be
                made in the payment of the said rent or any part thereof, or if
                any default be made in the performance of any of the covenants
                herein contained, the Landlord or representatives may re-enter
                the said premises by force, summary proceedings or otherwise,
                and remove all persons therefrom, without being liable to
                prosecution therefor, and the Tenant hereby expressly waives the
                service of any notice in writing of intention to re-enter, and
                the Tenant shall pay at the same time as the rent becomes
                payable under the terms hereof a sum equivalent to the rent
                reserved herein, and the Landlord may rent the premises on
                behalf of the Tenant, reserving the right to rent the premises
                for a longer period of time than fixed in the original lease
                without releasing the original Tenant from any liability,
                applying any moneys collected, first to the expense of resuming
                or obtaining possession, second to restoring the premises to
                rentable condition, and then to the payment of the rent and all
                other charges due and to grow due to the landlord, any surplus
                to be aid to the Tenant, who shall remain liable for any
                deficiency.

                23. That the Landlord is exempt from any and all liability for
                any damage or injury to person or property caused by or
                resulting from steam, electricity, gas, water, rain, ice or
                snow, or any leak or flow from or into any part of said building
                or from any damage or injury resulting or arising from any other
                cause or happening whatsoever unless said damage or injury be
                caused by or be due to the negligence of the Landlord.

                24. The Tenant has this day deposited with the Landlord the sum
                of $ 25,833.00 as security for the full and faithful performance
                by the Tenant of all the terms, covenants and conditions of this
                lease

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                upon the Tenant's part to be performed, which said sum shall be
                returned to the Tenant after the time fixed as the expiration of
                the term herein, provided the Tenant has fully and faithfully
                carried out all of said terms, covenants and conditions on
                Tenant's part to be performed. In the event of a bona fide sale,
                subject to this lease, the Landlord shall have the right to
                transfer the security to the vendee for the benefit of the
                Tenant and the Landlord shall be considered released by the
                Tenant from all liability for the return of such security; and
                the Tenant agrees to look to the new Landlord solely for the
                return of said security, and it is agreed that this shall apply
                to every transfer or assignment made of the security to a new
                Landlord.

                25. That the security deposited under this lease shall not be
                mortgaged, assigned or encumbered by the Tenant without the
                written consent of the Landlord.

                26. It is expressly understood and agreed that in case the
                demised premises shall be deserted or vacated, or if default be
                made in the payment of the rent or any part thereof as herein
                specified, or if, without the consent of the Landlord, the
                Tenant shall sell, assign or mortgage this lease or if default
                be made in the performance of any of the covenants and
                agreements in this lease contained on the part of the Tenant to
                be kept performed, or if the Tenant shall fail to comply with
                any of the statutes, ordinances, rules, orders, regulations and
                requirements of the Federal, State and City Government or of any
                and all their Departments and Bureaus, applicable to said
                premises, or hereafter established as herein provided, or if the
                Tenant shall file a petition in bankruptcy or be adjudicated a
                bankrupt, or make an assignment for the benefit of crditors to
                take advantage of any insolvency act, the Landlord may, if the
                Landlord so elects, at any time thereafter temrinate this lease
                and the term hereof, on giving to the Tenant five days' notice
                in writing of the Landlord's intention so to do, and this lease
                and the term hereof shall expire and come to an end on the date
                fixed in such notice as if the said date were the date
                originally fixed in this lease for hte expiration hereof. Such
                notice may be given by mail to the Tenant addressed to the
                demised premises.
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                27. That the Tenant will not nor will the Tenant permit
                undertenants or other persons to do anything in said premises,
                or bring anything into said premises, or permit anything to be
                brought into said premises or to be kept therein, which will in
                any way increase the rate of fire insurance on said demised
                premises, nor use the demised premises or any part thereof, nor
                suffer or permit their use for any business or purpose which
                would cause an increase in the rate of fire insurance on said
                building, and the Tenant agrees to pay on demand any such
                increase.

                28. The failure of the Landlord to insist upon a strict
                performance of any of the terms, conditions and covenants
                herein, shall not be deemed a waiver of any rights or remedies
                that the Landlord may have, and shall not be deemed a waiver of
                any subsequent breach or default in the terms, conditions and
                covenants herein contained. This instrument may not be changed,
                modified or discharged orally.

                29. In the event that the relation of the Landlord and Tenant
                may cease or terminate by reason of the re-entry of the Landlord
                under the terms and covenants contained in this lease or by the
                ejectment of the Tenant by summary proceedings or otherwise, or
                after the abandonment of the premises by the Tenant, it is
                hereby agreed that the Tenant shall remain liable and shall pay
                in monthly payments the rent which accrues subsequent to the
                re-entry by the Landlord, and the Tenant expressly agrees to pay
                as damages for the breach of the covenants herein contained, the
                difference between the rent reserved and the rent collected and
                received, if any, by the Landlord during the remainder of the
                unexpired term, such difference or deficiency between the rent
                herein reserved and the rent collected if any, shall become due
                and payable in monthly payments during the remainder of the
                unexpired term, as the amounts of such difference of deficiency
                shall from time to time be ascertained; and the Tenant waives
                and will waive all rights to trial by jury in any summary
                proceedings hereafter instituted by the Landlord against the
                Tenant in respect to the demised premises or in any action
                brought to recover rent or damages hereunder.
<PAGE>

                30. Landlord states that it has a report of the New York Testing
                Laboratory, that the land fill is non-toxic in nature.

INSURANCE       31. (a) Tenant is to maintain, throughout the term of the lease
                both bodily injury and property damage liability insurance for
                the mutual benefit of the Landlord and Tenant, naming the
                Landlord as an additional insured against claims for bodily
                injury, death or property damage occurring on, in or about the
                premises, sidewalks, adjoining streets, property and
                passageways. Such insurance shall be a general, all risk
                liability policy of not less than $1,000,000 per person for
                bodily injury or wrongful death and not less than $100,000
                property damage.

                b) All insurance policies maintained by the Tenant shall name
                the Landlord and Tenant as insureds as their respective
                interests may appear. Such insurance shall be written by
                companies of recognized financial standing. All insurance
                maintained by Tenant shall provide that no cancellation,
                reduction or other material changes thereof shall be effective
                until at least ten (10) days after receipt of written notice
                thereof by Landlord, and Tenant will, at the Landlord's request,
                furnish to Landlord certificates of such insurance.

                c) Tenant is to maintain, throughout the term of the lease, fire
                insurance covering the premises in an amount equal to the fair
                market value of the building and structures thereon presently
                and in the event the tenant makes improvements or constructs
                additional structures on the premises, the tenant shall supply
                coverage of such additional structures in an amount not less
                than the replacement value. The policy shall name Landlord as an
                insured under the policy as its interest may appear. The tenant
                shall furnish to the Landlord, at Landlord's request,
                certificates of insurance.

                32. Tenant has inspected said premises and is thoroughly
                acquainted with its condition and is leasing said premises "as
                is" and in their present condition.
<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Lease in person or by
a duly authorized officer on the day and year stated in the commencement.

SIGNED, SEALED AND DELIVERED                   LANDLORD; Bonnie Heights Realty 
IN THE PRESENCE OF:                            Corp.

                                               BY: [ILLEGIBLE]
                                                  ------------------------------


______________________________                 ITS: Vice Pres.
                                                   -----------------------------


                                               TENANT:

______________________________                 BY: [ILLEGIBLE]
                                                  ------------------------------


                                               ITS:  Pres.
                                                   -----------------------------
<PAGE>

                               AMBOY BUS CO., INC.
                                 7 North Street
                          Staten Island, New York 10302

                                                                    May 10, 1996

CERTIFIED MAIL
RETURN RECEIPT REQUESTED

Bonnie Heights Realty Corp.
One Edgewater Plaza
Staten Island, New York 10305

                  Re:    Lease Agreement dated August 5, 1986 
                         between Bonnie Heights Realty Corp.
                         as Landlord and Amboy Bus Co., Inc. as Tenant

Gentlemen:

         Reference is made to the above-captioned lease and more particularly to
paragraph 15 thereof entitled "Option to Renew". Please be advised that the
tenant hereby exercises its option to renew the lease for an additional period
of five years.

                                                Very truly yours,

                                                AMBOY BUS CO., INC.

                                                By: /s/ Domenic Gatto
                                                    ----------------------------
                                                    Domenic Gatto, President


DG/cz
cc:   Kenneth Lee Raisch, Esq.
<PAGE>

                               AMBOY BUS CO., INC.
                                52 Bayview Avenue
                          Staten Island, New York 10309

                                                               December 26, 1989

CERTIFIED MAIL 
RETURN RECEIPT REQUESTED

Bonnie Heights Realty Corp.
One Edgewater Plaza
Staten Island, New York 10305

                 Re:    Lease Agreement dated August 5, 1986 
                        between Bonnie Heights Realty Corp. 
                        as Landlord and Amboy Bus Co., Inc. as Tenant

Gentlemen:

         Reference is made to the above-captioned lease and more particularly to
paragraph 15 thereof entitled "Option to Renew". Please be advised that the
tenant hereby exercises its option to renew the lease for an additional period
of five years.

                                                Very truly yours,

                                                AMBOY BUS CO., INC.

                                                By: /s/ Domenic Gatto
                                                    ----------------------------
                                                           Domenic Gatto
                                                             President

cc: James Dowling, Esq.