Document:

ORIGINAL
NAME                       ISSUE DATE                PRIN              DOC #
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MARSALA*                    12/31/97              $184,300            9711
A.CRAWFORD                  12/31/97              $ 60,000            9712

* Filed herewith

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                          NY REGIONAL RAIL CORPORATION
                                 4302 FIRST AVE.
                               BROOKLYN, NY 11232
                        (718) 788-3690 FAX (718) 788-4462

                              PROMISSORY NOTE 9711

                                    12/31/97

         FOR THE VALUE RECEIVED, the undersigned promises to pay to the order of
JOHN MARSALA the sum of ONE HUNDERD EIGHTY-FOUR THOUSAND THREE HUNDERD DOLLARS
($184,300) United States of America Dollars.

         The Note amount shall be paid to Note Holder in a single payment of ONE
HUNDERD EIGHTY-FOUR THOUSAND THREE HUNDERD DOLLARS ($184,300), plus all accrued
interest due on or before December 31, 1998. Interest will be Ten percent (10%)
per annum.

         In addition, the maker provides to the Note holder, listed above, the
IRREVOCABLE right to convert this Note into Common Shares of NEW YORK REGIONAL
RAIL CORPORATION ("NYRR"), as said Common Shares are available under the
provisions of the non-public offering, exemption as provided in the U.S.
Securities Act of 1933 (and Regulation D thereunder) for as long, as this Note
remains open. The conversion rights granted to the Note Holder will. be
calculated based on:

         (i)      on the value of the Note divided by $0.075 or
         (ii)     on the value of the note divided by the ninety percent (90%)
                  of the average closing bid price of the common shares for the
                  previous five trading days prior to the date the conversion is
                  exercised by the Note holder.

The conversion rights represented by this note are exercisable at the option of
the Note Holder in whole at any time within the period above specified.

Upon exercise of Note 9711 conversion to Common shares the maker grants Note
Holder an OPTION to acquire a block of 1 share of non restricted Common Stock
for twelve ($0.12) for every share holder acquires through converting this NOTE
9711 into NYRR common stock. Said OPTION will be exercisable until June 30,
1999.

                  Maker warrants that Common shares provided to Note Holder on
Conversion of Note or any other Common shares will be issued to Holder as result
of provisions of this Note will be issued without restriction.

                  To receive a certificate for the Common shares when the Note
is converted, the Note will be presented and surrendered to the Corporation,
with the accompanying form of subscription duly executed. A conversion
subscription form is provided as an attachment to this Note.

In the event of default, the undersigned agrees to pay all reasonable attorney
fees and cost of collection.

New York Regional Rail

By:__________________
PresidentEMPLOYMENT AGREEMENT

This Agreement for Employment is made this 5th day of January, 1998, by and
between New York Regional Rail Corporation ("Employer") and W. Robert Bentley
("Employee").

For good and valuable consideration, receipt of which is hereby acknowledged the
Employer shall employ as any Employee subject to the following terms and
conditions.

1.       The Employee shall commence employment on January 5, 1998.

2.       The Employee shall perform the following duties and responsibilities:

         a) The Employee shall perform the duties and responsibilities as
President of the New York Cross Harbor Railroad ("NYCH"). Said duties and
responsibilities shall include those set forth in the Articles of Incorporation
and Corporate By-Laws of the NYCH, which Employee acknowledges receipt of.
Employer agrees to jointly develop a organizational structure with Employee such
that all operational employees of NYCH will report to Employee.

         b) The Employee shall perform such further and other duties as are
required by the Employer.

    The Employee shall work Monday through Friday from 8 A.M. to 5 P.M. and such
additional hours as are required by the Employer for the Employee to competently
perform the duties of his position. The Employer recognizes Employee has
requested flexible work hours and Employer agrees to this request provided the
Employee fulfills the duties and responsibilities as described in 2. above. The
Employee shall use his best efforts on behalf of the Employer.

4.       The Employee shall comply with all stated standards of performance,
policies, rules, regulations and manuals, receipt of which by the Employee is
hereby acknowledged. The Employee shall also comply with such future Employer
policies, rules, regulations, performance standards and manuals as may be
published or amended from time to time.

5.       The Employee's employment under this Agreement shall commence January
5, 1998 and shall terminate on December 31, 2001, unless terminated prior to
such time for cause.

6.       The Employer shall pay to the Employee as compensation for services,
and the Employee agrees to accept the sum of $75,000.00 per year payable weekly
of $1442.31, and be entitled to the following "fringe benefits":

         a) Employer will provide Employee with family health insurance or will
reimburse Employee for Employee's current insurance plan, said plan current
costs is $365.00 per month.
         b) Employer will compensate Employee for local housing costs up to
$700.00 per month for a period of one year.
         c) Employer will provide Employee with Company Vehicle.
         d) Employer will provide Employee with 4 weeks paid vacation per year.
         e) Employer will provide Employee with 1,000,000 shares of Employer
Common Stock. These shares will be held in escrow pursuant to terms to be
jointly agreed to by Employer and Employee. Said terms will include a vesting
schedule and a purchase option for acquiring up to ______ shares of Employer's
common stock.
         f) Employer will reimburse Employee for reasonable Business and Travel
Expenses within the Guidelines provided by the Internal Revenue Service.

7.       This contract of employment may terminate upon the occurrence of any of
the following events:

        (a) the death of the Employee;
        (b) the failure of the Employee to perform his duties satisfactorily
after notice or warning thereof;
        (c) for just cause based upon non-performance of duties by Employee.
        (d) economic reasons of the Employer which may arise during the term of
this Agreement and which may be beyond the control of the Employer.

                                       1

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8.       The Employee shall not, at any times during the period hereof, and for
5 years from the date of termination of this Agreement, directly or indirectly,
within a Geographic area of 100 miles, engage in, or become involved in, any
competitive or similar business as that of the within Employer.

9.       Any dispute under this contract shall be required to be resolved by
binding arbitration of the parties hereto.  Each party shall select one
arbitrator and both arbitrators shall select a third.  The arbitration shall be
governed by the rules of the American Arbitration Association then in force and
effect.

10.      This Agreement may not be assigned without prior notice by either party
and subject to the mutual consent and approval of any such assignment.

11.      This Agreement constitutes the complete understanding between the
parties, unless amended by a subsequent written instrument signed by the
employer and employee.

    Employee                                                    EmployerNY REGIONAL RAIL CORPORATION
                                 4302 FIRST AVE.
                               BROOKLYN, NY 11232
                       (718) 788-3690                         FAX (718) 788-4462

                                                         PROMISSORY NOTE 9801

                                     2/3/98

         FOR THE VALUE RECEIVED, the undersigned promises to pay to the order of
Gordon Buchanan the sum of one hundred eighty thousand ($180,000) United States
of America Dollars.

         The Note amount shall be paid to Note Holder in a single payment,
including an accrued interest due, of one hundred eighty thousand ($180,000) on
or before December 31, 1998. Interest will be Ten percent (10%) per annum.

         In addition, the maker provides to the Note holder, listed above, the
IRREVOCABLE right to convert this Note into Common Shares of NEW YORK REGIONAL
RAIL CORPORATION, as said Common Shares are available under the provisions of
the non-public offering exemption as provided in the U.S. Securities Act of 1933
(and Regulation D thereunder) for as long as this Note, remains open. The
conversion rights granted to the Note Holder will be at nine cents per share and
will be calculated based on the value of the Note divided nine cents. The
conversion rights represented by this Note are exercisable at the option of the
Note Holder at any time within the period above specified.

         Upon exercise of Note 9801 conversion to Common shares the maker grants
Note Holder an OPTION to acquire a block of 1,750,000 shares of non restricted
Common Stock for fifteen cents ($.15) per share. Said option will be exercisable
until December 31, 1998.

         Maker warrants that Common shares provided to Note Holder on conversion
of Note or any other Common shares issued to Holder as result of provisions of
this Note will be issued with out restrictions.

To receive a certificate for the Common shares when the Note is converted, the
Note will be presented and surrendered to the Corporation, with the accompanying
form.

        In the event of default, the undersigned agrees to pay all reasonable
attorney fees and costs of collection.

New York Regional Rail Corporation
By:____________________
President

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