Document:

Exhibit 10.15
                              EMPLOYMENT AGREEMENT

     THIS  EMPLOYMENT  AGREEMENT is made and entered into as of this 29th day of
June 2001, by and between Monty Matrisciani  ("Matrisciani" and/or "Executive"),
and Capital  Beverage  Corporation,  a Delaware  corporation  ("Capital"  and/or
"Company").  Executive's address is 164 West County Road, Colts Neck, New Jersey
07722. Capital's address is 1111 East Tremont Avenue, Bronx, New York.

W I T N E S S E T H :

     WHEREAS,  Capital  wishes  to  enter  into  an  employment  agreement  with
Executive  for a period of three (3) years from June 29, 2001  through  June 28,
2004 with options in favor of Executive to continue  this  Employment  Agreement
for an additional two (2) years; and

     WHEREAS,  Capital  agrees to employ  Executive as its Director of Sales and
Marketing in accordance with the terms and conditions set forth below:

     1. TERM: Executive will be employed by Capital as the Director of Sales and
Marketing  for a  period  of three  (3)  years  from the date of this  Agreement
("Effective  Date") with  options in favor of the  Executive  to  continue  this
Employment Agreement for an additional two (2) years, as provided in Section 16.

     2. DUTIES AND  RESPONSIBILITIES  OF EMPLOYEE:  The Executive shall serve as
the  Director  of Sales  and  Marketing  of the  Company  and  shall  have  such
authority,  duties and responsibilities  that are consistent with those commonly
given to an executive of the Company  (which duties are executive in nature) and
such additional authority,  duties and responsibilities as may from time to time
be  conferred  upon or assigned  to the  Executive  by or pursuant to  authority
delegated  by  the  President  of the  Company  which  duties  may  include  the
performance of services for  subsidiaries  of the Company.  The Executive  shall
devote all of his working  time and efforts to the  business  and affairs of the
Company and/or its subsidiaries. Reasonable travel outside the State of New York
may  be   required   in  order  to   perform   Executive's   duties   hereunder.
Notwithstanding  the  foregoing,  Executive  shall be entitled to maintain other
passive business interests or holdings that do not interfere with his ability to
provide the services required hereunder.

<PAGE>

     3.  BASE  SALARY:  Capital  will pay to  Executive  the base  salary of One
Hundred  and  Ninety  Two  Thousand  ($192,000)  Dollars  per  year,  less  such
deductions  as shall be required to be withheld by  applicable  law,  payable in
equal weekly  installments  over a period of three (3) years from the  Effective
Date, plus any extension of the agreement (as provided in Section 16).

     3.1 ADDITIONAL COMPENSATION: In addition to the base salary, Executive will
receive the following additional compensation from the Company:

          a.  Executive will  participate in any stock option plan,  401(k) plan
     and other  pension  and benefit  plans made  available  to other  executive
     officers of the Company, as determined by the Board of Directors;

          b.  Executive  will  receive  reimbursement  with respect to leased or
     owned vehicle payments,  gas, tolls, parking,  mileage and other automobile
     related  expenses not to exceed $1,000 per month and subject to appropriate
     receipts being presented by Executive to the appropriate  financial officer
     of Capital;

          c.Capital  will  continue  to  maintain  in full  force and effect the
     health and welfare coverage for the Executive and his family providing such
     benefits as were  previously  maintained by Prospect  and/or Capital or any
     equivalent coverage through a different carrier;

          d. Capital will pay up to Five  Hundred  ($500)  Dollars per month for
     Executive to lease and use a mobile or cellular telephone to be used in the
     course of the business of Capital and subject to appropriate receipts being
     presented by Executive to the appropriate financial officer of Capital; and

          e. Capital will reimburse Executive for up to $833 per month in travel
     and  entertainment  expenses  incurred  in the  course of the  business  of
     Capital and subject to the  Executive  presenting  to  Capital's  financial
     staff the proper and necessary receipts and  documentation,  as required by
     Capital.

<PAGE>

     3.2  INCENTIVE  BONUS.  The  Executive  will be paid by the  Company a cash
incentive bonus, subject to the following terms and conditions:

          a.  In  addition  to his  other  compensation  set  forth  above,  the
     Executive  will  receive a bonus  payable on or before  April 30, 2002 with
     respect to calendar  year 2001, if and only if, for the calendar year 2001,
     Capital  makes a net after tax profit of Five Hundred  Thousand  ($500,000)
     Dollars or more in the  calendar  year 2001 in  connection  with  Capital's
     operations and sales  conducted in the State of New York ("New York Area"),
     excluding,  inter alia, all  operations and sales in all other states.  The
     bonus for the Executive will be calculated by paying the Executive  6.6666%
     of the net  after-tax  profit  of the  Company  and its  subsidiaries  on a
     consolidated  basis  from  operations  and sales in the New York Area above
     Five  Hundred  Thousand  ($500,000)  Dollars  net  after  tax  profit.  The
     Executive  must remain in the  employment of Capital  through  December 31,
     2001 to be eligible to receive the bonus for the year 2001.

          b.  In  addition  to his  other  compensation  set  forth  above,  the
     Executive  will  receive a bonus  payable on or before  April 30, 2003 with
     respect to calendar  year 2002, if and only if, for the calendar year 2002,
     Capital  makes a net after tax profit of Five Hundred  Thousand  ($500,000)
     Dollars or more in the  calendar  year 2002 in  connection  with  Capital's
     operations and sales conducted in the New York Area, excluding, inter alia,
     all operations  and sales in all other states.  The bonus for the Executive
     will be calculated  by paying the  Executive  6.6666% of the net after -tax
     profit of the Company and its  subsidiaries  on a  consolidated  basis from
     operations  and  sales in the New York Area  above  Five  Hundred  Thousand
     ($500,000)  Dollars net after tax profit.  The Executive must remain in the
     employment of Capital  through  December 31, 2002 to be eligible to receive
     the bonus for the year 2002.

          c.  In  addition  to his  other  compensation  set  forth  above,  the
     Executive  will  receive a bonus  payable on or before  April 30, 2004 with
     respect to calendar  year 2003, if and only if, for the calendar year 2003,
     Capital  makes a net after tax profit of Five Hundred  Thousand  ($500,000)
     Dollars or more in the  calendar  year 2003 in  connection  with  Capital's
     operations and sales conducted in the New York Area, excluding, inter alia,
     all operations  and sales in all other states.  The bonus for the Executive
     will be  calculated  by paying the  Executive  6.6666% of the net after-tax
     profit of the Company and its  subsidiaries  on a  consolidated  basis from
     operations  and  sales in the New York Area  above  Five  Hundred  Thousand
     ($500,000)  Dollars net after tax profit.  The Executive must remain in the
     employment of Capital  through  December 31, 2003 to be eligible to receive
     the bonus for the year 2003.

<PAGE>

          d. In calculating the bonuses  provided in(a),  (b) and (c) above, the
     following shall apply:

               (i) The $500,000  thresholdshall  be prorated during any calendar
          year  in  which  Executive  has not  been  employed  for the  complete
          calendar year (ie.,  $250,000 of net after tax profits if Executive is
          employed from July 1, 2001 through  December 31, 2001 in calendar year
          2001),  other than in the case of  termination  of this  Agreement for
          "cause" (as defined in Section 9(c) below);

               (ii) Sales and selling,  general and  administrative  expenses of
          Capital attributable to the business conducted outside of the New York
          Area, shall be excluded from the calculation of the bonus;

               (iii)  There shall be no  reduction  in  computing  net after tax
          profits with respect to the bonuses being paid to Michael  Matrisciani
          and Daniel Matrisciani;

               (iv) The phone card business  (Sales and all  expenses)  shall be
          excluded from the calculation of the bonus;

               (v) The calculations shall be determined by the Company auditor's
          in accordance with generally accepted  accounting  principles,  unless
          otherwise  specifically  provided  to the  contrary  in  this  Section
          3.2(d);

               (vi) In computing  the after tax profits  herein,  Capital  shall
          apply the maximum  amount of its net operating  loss carry forwards as
          permitted  pursuant  to the  rules  and  regulations  of the  Internal
          Revenue Code;

               (vii) All expenses (including extraordinary expenses) incurred as
          a result  of the  operations  outside  of the New York  Area  shall be
          excluded from the  calculation  of the bonus;  and (viii) In computing
          the after tax profits herein, Capital shall not apply any amortization
          or depreciation  expenses.  (e) If this Agreement is extended pursuant
          to the  provisions of Section 16,  Executive  shall be entitled to the
          cash incentive bonus provided in this Section 3 during such periods.

     4. BUSINESS EXPENSES: In the event that the Executive is required to expend
money for travel or for any  extraordinary  expense  relating to the business of
Capital in excess of $833 per month (as provided in 3(e) above),  the  Executive
must procure prior written  authorization  from Carmine N. Stella,  President or
Carol Russell, Secretary/Treasurer of Capital.

<PAGE>

     5. VACATION  POLICY:  Executive  shall be entitled to paid vacation of four
(4) weeks per calendar  year,  pro rated as  applicable  for any partial year of
employment.  If Executive does not use his allotted  vacation,  he may carry any
unused  vacation over to the following  years.  Upon  termination of employment,
Executive shall not be paid for any unused vacation days.

     6. PERSONAL DAYS AND HOLIDAYS: Executive shall be entitled to be reimbursed
for six (6)  personal  leave days per year (earned at the rate of 1 personal day
for every 2 months of employment) and sick days in keeping with Capital's policy
regarding executives. Executive shall be entitled to holidays in accordance with
Capital's company policy.

     7.BEREAVEMENT LEAVE:  Executive shall be afforded five (5) days bereavement
leave in the event of the death of any member of his immediate family.

     8. SEVERANCE: If Executive ceases to be employed by Capital for any reason,
Executive  will receive four (4) weeks base salary for each year of service with
Capital,  which salary shall be paid within 1 week of termination of employment.
Such payment will be pro-rated  for the portion of  Executive's  first and final
year of service, if any year is a partial year. Executive will receive severance
pay only if  Executive  releases  Capital  of all  claims.  Notwithstanding  the
foregoing,  nothing contained herein will waive the Executive's right to contest
any  termination  and seek damages  pursuant to the  "Disputes  and  Arbitration
Provision"  in Paragraph  15, in which case the  severance  pay will not be paid
until the matter has been resolved.

     9. TERMINATION: The Executive's employment hereunder may be terminated upon
the following circumstances:

          (a) Death.  The Executive's  employment  hereunder shall be terminated
     upon his death.  Executive's base salary and other compensation shall cease
     on such date, but  Executive's  estate shall be entitled to payment of base
     salary and other compensation  through the date of death plus the pro rated
     amount (as  calculated  in  3.2(d)(i)  above) of his bonus  provided  under
     Section 3, if any.

          (b) Disability.  If, as a result of the Executive's  incapacity due to
     physical or mental  illness,  the Executive shall have been absent from his
     duties  hereunder  for ninety  (90)  consecutive  days or for an  aggregate
     period of  one-hundred-eighty  (180) days  during a  consecutive  period of
     twelve (12) months,  the Company may terminate the  Executive's  employment
     hereunder.  Upon  termination for disability,  Executive's  base salary and
     other compensation shall cease on such date but Executive shall be entitled
     to  payment  of base  salary  and other  compensation  through  the date of
     termination  plus a pro rated amount (as calculated in 3.2(d)(i)  above) of
     his bonus provided under Section 3, if any.

          (c) Cause. The Company (upon majority vote of the Board) may terminate
     the  Executive's  employment  hereunder  for "Cause".  For purposes of this
     Agreement,  "Cause" shall mean: (i) repeated violations by the Executive of
     the Executive's  assigned duties (other than any such violations  resulting
     from the  Executive's  incapacity  due to physical or mental  illness)  and
     which are not  remedied  within ten (10) days after  receipt of notice from
     the Company specifying such violations; or (ii) immediately, after any such
     actual  violations  after the  issuance  of a "Notice of  Termination"  (as
     defined in Section 9 (d) hereof which  specifies the same  violation in (i)
     above);  (iii) a material  breach by the Executive of any provision of this
     Agreement if such  material  breach has not been cured within ten (10) days
     after receipt of notice from the Company specifying such breach or (iv) any
     illegal  act  or  acts  of  the  Executive   involving   moral   turpitude,
     embezzlement, misappropriation of property of the Company or any subsidiary
     thereof or any other act involving  dishonesty or fraud with respect to the
     Company or any subsidiary thereof.

<PAGE>

          (d) Any  termination  of the  Executive's  employment  by the  Company
     (other  than  termination   pursuant  to  Section  9(a)  hereof)  shall  be
     communicated   by  written  Notice  of  Termination  to  the  Executive  in
     accordance  with  Section 19 hereof.  For  purposes  of this  Agreement,  a
     "Notice  of  Termination"  shall mean a notice  which  shall  indicate  the
     specific termination  provision in this Agreement relied upon and shall set
     forth in reasonable detail the facts and circumstances claimed to provide a
     basis for termination of the Executive's  employment under the provision so
     indicated.

          (e)  "Date  of  Termination"  shall  mean  the  following:  (i) if the
     Executive's  employment is terminated by his death,  the date of his death;
     (ii) if the Executive's  employment is terminated  pursuant to Section 9(b)
     hereof,  ten (10) days after the Notice of Termination  is given;  (iii) if
     the Executive's  employment is terminated  pursuant to Section 9(c) hereof,
     the later of the date that the Notice of  Termination is given and the date
     specified in the Notice of Termination.

          (f) If any third party shall bring an action against the Company,  its
     subsidiaries,  agents,  servants,  shareholders,   directors,  officers  or
     employees due to an alleged breach of an employment  agreement or violation
     of a non-compete  agreement by Executive,  the Company may give a Notice of
     Termination  to the Executive  terminating  his employment on ten (10) days
     notice  if  Executive  is  ultimately  found,  by a court  or  tribunal  of
     competent jurisdiction, to have violated such provisions.  Executive hereby
     represents  that  he is not a  party  to any  agreement  of  employment  or
     agreement that restricts him from competition in any matter whatsoever.

          (g) If the  Executive  wishes to contest  the right of the  Company to
     terminate the Executive, the Executive may do so pursuant to the provisions
     of Paragraph 15, "Disputes and Arbitration."

          (h) Capital may not terminate  Executive's  employment without "cause"
     prior to the next annual meeting of shareholders of Capital.

     10.  CONFIDENTIALITY:  During the period of his employment and for a period
of six (6) months from the Date of Termination  hereunder,  the Executive  shall
keep  confidential  and shall  not  divulge  to any  other  party or use for the
Executive's  benefit,  directly or indirectly,  any and all private,  secret and
confidential  information  relating to such matters as the finances,  methods of
operation and competition,  pricing,  marketing plans and strategies,  equipment
and operational  requirements  and  information of the Company,  other than such
information which (a) is or becomes generally available to the public other than
as a result of a  disclosure  by Executive or (b) is required to be disclosed by
law or by a judicial, administrative or regulatory authority.

     11. NON SOLICITATION OF EMPLOYEES:  During the period of his employment and
for a period of six (6) months from the Date of Termination hereunder, Executive
shall  not,  either  for his own  account  or for any  person  firm or  company,
solicit,  interfere with or endeavor to cause any employee of the Company or any
subsidiary of the Company to leave his or her employment or induce or attempt to
induce any such employee to terminate or breach his or her employment  agreement
with the Company or any subsidiary of the Company.  Executive shall not be bound
by the provisions of this Section if either (a) Capital ceases  operations,  (b)
Capital  sells its  business  to a third  party and  Executive's  employment  is
terminated  prior to the expiration of the term, (c) Capital merges with another
entity,  is not the surviving  entity and  Executive's  employment is terminated
prior to the expiration of the term or (d) if Executive is terminated by Capital
without "cause".

<PAGE>

     12. NONSOLICITATION OF CLIENTS: During the period of his employment and for
a period of six (6) months  from the Date of  Termination  hereunder,  Executive
shall not  solicit,  induce or  attempt  to induce  any past,  current or future
client of the Company or any  subsidiary of the Company  located  within the New
York Area, to cease or refrain from doing  business in whole or in part with the
Company or any  subsidiary of the Company.  Executive  shall not be bound by the
provisions of this Section if either (a) Capital ceases  operation,  (b) Capital
sells its business to a third party and Executive's  employment is terminated by
such third party prior to the  expiration of the term,  (c) Capital  merges with
another  entity,  is not the  surviving  entity and  Executive's  employment  is
terminated  by such other entity prior to the  expiration  of the term or (d) if
Executive is terminated by Capital without "cause".

     13. INJUNCTIVE  RELIEF:  The remedy at law for any breach of this Agreement
is and will be  inadequate.  In the  event of a breach or  threatened  breach by
Executive of the provisions of this Agreement,  the Company shall be entitled to
an injunction  restraining Executive from soliciting employees or clients of the
Company or any subsidiary or from disclosing,  in whole or in part, the private,
secret and confidential information described herein. Executive will be enjoined
from  rendering any services to any person,  firm,  corporation,  association or
other entity to whom such  information has been disclosed or is threatened to be
disclosed  to any  business  described  in  Section 10 or from  otherwise  being
connected with any business described in Sections 10, 11 or 12 or from otherwise
violating the provisions of this Agreement. Nothing herein shall be construed as
prohibiting  the Company from  pursuing any other  remedies  available  for such
breach or threatened breach including the recovery of damages from Executive.

     14.  SEPARATE  COVENANTS:  This  Agreement  shall be deemed to consist of a
series of separate  covenants.  Executive  expressly  agrees that the character,
duration and geographical scope of this Agreement are reasonable in light of the
circumstances as they exist on the date upon which this Agreement are reasonable
in  light  of the  circumstances  as they  exist on the  date  upon  which  this
Agreement has been executed. However, should a determination nonetheless be made
by a court of competent  jurisdiction at a later date, that character,  duration
or  geographical  scope  of  this  Agreement  is  unreasonable,  then  it is the
intention and the such a manner as to impose only restrictions on the conduct of
Executive which are reasonable in light of the  circumstances as they then exist
and as necessary  to assure the Company or Executive of the intended  benefit of
this  Agreement,  enforced  in such  proceeding  shall,  for the purpose of such
proceeding, be deemed eliminated from this Agreement.

     15. DISPUTES AND ARBITRATION: In the event that a dispute arises, including
an alleged  breach of this  Agreement,  and the  parties are not able to resolve
such dispute,  then they shall submit their dispute to arbitration in the County
and City of New York in accordance with the prevailing Labor  Arbitration  Rules
of the  American  Arbitration  Association.  Additionally,  any  party  may seek
injunctive  relief from any Court of competent  jurisdiction  in the City of New
York or Long Island.  Any party may enter any award made by the  arbitrator as a
judgment in any Court of competent jurisdiction,  including State and/or Federal
Courts located in the City of New York or Long Island.  In the event that either
party has to seek injunctive  relief or any provisional  remedy,  the parties to
this  Agreement  consent to  jurisdiction  in the Federal  and/or  State  Courts
located in the City of New York or Long Island.  Nothing  contained herein shall
limit the right of the Company to seek immediate relief if injunctive  relief is
necessary to protect the Company's rights.

<PAGE>

     16. OPTIONS:

          A. This Employment  Agreement shall be automatically  extended for one
     year from June 29,  2004  through  June 28,  2005  unless  Executive  gives
     Capital at least  thirty (30) days  written  notice  pursuant to the Notice
     provision  contained in Paragraph  19(B) of his intention to terminate this
     Employment Agreement on June 28, 2004.

          B. If this  Employment  Agreement  is  extended  for the  fourth  year
     pursuant to  Paragraph  16(A) above,  this  Employment  Agreement  shall be
     automatically  extended  for a second year from June 29, 2005  through June
     28, 2006 unless  Executive  gives Capital at least thirty (30) days written
     notice pursuant to the Notice provision contained in Paragraph 19(B) of his
     intention to terminate this Employment Agreement on June 28, 2005.

          17.  RELOCATION  OF  CAPITAL:  In the  event  that  Capital  moves its
     principal offices more than fifty miles from New York City, Long Island and
     Westchester,  the  Executive  may at his  election,  upon  twenty (20) days
     written notice,  terminate this Employment  Agreement.  In such event,  the
     Executive will continue to receive  twenty-six  (26) weeks of severance pay
     (base salary only)  provided that the Executive  executes full and complete
     General Releases to Capital in the form acceptable to Capital.

     18. RIGHT TO SET-OFF: Executive acknowledges that if it is adjudicated that
Capital  is  entitled  to  payment  due to its  rights of  indemnification  from
Executive pursuant to the terms of that certain Asset Purchase Agreement,  dated
as of May 4, 2001, between Capital,  Prospect Beverage Inc. ("Prospect") and the
shareholders  of  Prospect,  that  Capital may off-set  and  withhold  any bonus
payment  payable to  Executive  hereunder.  Capital may apply all of any bonuses
towards  repayment  of  Executive's  indemnification  obligations.  Any of  such
bonuses that would  otherwise be paid to Executive,  shall be deposited  into an
escrow  account (with a third party to be mutually  agreed upon between  Capital
and Executive) pending the resolution of the matter.

<PAGE>

     19. MISCELLANEOUS:

          A. Advice of Counsel.  The parties  acknowledge  and confirm that they
     have been advised by counsel as to the  consequences  of this Agreement and
     that they  fully  intend  to be bound by these  provisions  and that  their
     respective  counsel have advised them that they believe that this Agreement
     is valid and binding on all parties.

          B. Notices.  All notices made pursuant to the terms of this Agreement,
     shall be made in writing, sent by Express Mail or by Federal Express, or by
     personal  delivery,  to the parties at the  following  addresses:

               a. If to Prospect or to any or all of the Matriscianis, or to the
          Prospect Shareholders, notices to be sent to:

                        (i) Monty Matrisciani
                            164 West County Road
                            Colts Neck, New Jersey 07722

                                  -and-

                       (ii) Barry Wadler, Esq. at
                            630 Third Avenue
                            New York, New York 10017

               b. If to Capital, notices to be sent to:

                       (i)  Mr. Carmine Stella
                            Capital Beverage Corp.
                            700 Columbia Street
                            Erie Basin, Building 302
                            Brooklyn, New York 11231-1919

                                  -and-

                       (ii) William J. Dealy, Esq.
                            Dealy & Trachtman, LLP
                            225 Broadway, Suite 1405
                            New York, New York 10007-3001

     C. Construction.  This Agreement is made in the State of New York and shall
be governed by and  construed  in  accordance  with the laws of the State of New
York;

     i. The  parties  agree that the  language  of this  Agreement  shall not be
interpreted against the drafter; and

     ii. Should any provision of this  Agreement be held to be illegal,  void or
unenforceable,  such  provision  shall be of no force and effect.  However,  the
illegality or  unenforceability of any such provision shall have no effect upon,
and shall  not  impair  the  enforceability  of,  any  other  provision  of this
Agreement.

     D. Headings.  The headings in this Agreement are solely for convenience and
shall be given no effect in the interpretation of this Agreement.

<PAGE>

     E. Waiver. Waiver by any party of any breach or its failure to exercise any
right under this Agreement  shall not be deemed a continuing  waiver or a waiver
of any  subsequent  breach or right.  The failure of any party to take action at
the  earliest  possible  time to redress any such breach or to exercise any such
right shall not deprive such party of the right to take action at any subsequent
time while such breach or condition giving rise to such right continues.

     F.  Severability.  If any provision of this Agreement shall be held invalid
or unlawful,  such invalidity shall not affect the other provisions  hereof, and
to this extent the  provisions of this Agreement are intended to be and shall be
deemed severable.

     G. Binding.  This Agreement  shall be binding upon and inure to the benefit
of the respective successors and assigns of the parties.

     H. Entire  Agreement.  This  Agreement  contains the full  agreement of the
parties hereto concerning the subject matter hereof. This Agreement shall not be
modified,  amended,  altered,  discharged or  terminated,  except  pursuant to a
writing  signed by the  party(ies)  charged  hereof  all prior  representations,
promises or discussions are merged and superseded by this written contract.

CAPITAL BEVERAGE CORP.

BY: /s/ Carmine N. Stella
        ------------------
        Carmine N. Stella
        President

EXECUTIVE:

BY: /s/ Monty Matrisciani
        -----------------
        Monty MatriscianiExecutive Contract Agreement

AGREEMENT made as of the 1st day of October, 2001 by and between RTS,
Incorporated, a New Jersey Corporation (hereinafter referred to as RTS), and New
York Cross Harbor Railroad Terminal Corporation, a New York Corporation, having
its principal place of business located at 4302 First Ave., Brooklyn, New York
(hereinafter referred to as "the Company").

WHEREAS the parties hereto have negotiated a mutually satisfactory arrangement
for the contract services of RTS to provide executive management for the
Company.

Now therefore, in consideration of the mutual covenants hereinafter set forth,
the parties hereto agree as follows:

1.       Services and Duties. The Company hereby assigns Wayne Eastman of RTS to
         act as the Chief Operating Officer for New York Cross Harbor
         Railroad, and Wayne Eastman hereby accepts such assignment upon the
         terms and conditions hereinafter set forth. Wayne Eastman shall devote
         himself diligently to the promotion of the Company's interests. Wayne
         Eastman shall provide, but not limited to, the usual services provided
         as the Vice President of Operations and those duties reasonably
         requested of him by the President.

2.       Term. The term of this Agreement shall be one (1) year commencing on
         the date first above written. The Company hereto may terminate this
         Agreement at any time "for cause" or a disability whereby RTS is unable
         to perform the duties set forth in this Agreement for a period of three
         consecutive months. The Agreement shall automatically renew for a
         period of one (1) year unless either party gives the other written
         notice 60 days prior to the end date of the contract that the party
         wishes to terminate the renewal.

3.       Compensation.

         A.       Regular Compensation
              As compensation for the services rendered by RTS, the Company will
              pay to RTS the amount of $4000.00 per month. The Company agrees to
              allow use of Corporate facilities and automobiles as necessary for
              providing the services described in this Agreement.

         B.       Bonus Compensation
              RTS shall also be entitled to the following Bonus Compensation
              pursuant to the achievement of the following terms.

              i.       Stock Options
                         After each one-year period of this agreement RTS shall
                         be entitled to the following Bonus Compensation. For
                         any increase in gross sales revenue above the previous
                         years gross sales revenues of the New York Cross Harbor
                         Railroad, the Company shall grant Wayne Eastman stock
                         options in New York Regional Rail Corp. These options
                         will be granted at a rate of 1 stock option for each
                         $10 increase in gross sales revenue. First year's
                         option exercise price shall be 100% of the value of the
                         closing stock price of New York Regional Railroad's
                         common stock symbol "NYRR" traded on the NASDAQ
                         Exchange, as reported by such exchange on the execution
                         date of this agreement. Each year thereafter, said
                         option price shall be 100% of the value of the closing
                         stock price of New York Regional Railroad's common
                         stock symbol "NYRR" traded on the NASDAQ Exchange as
                         reported by such exchange commencing on each one year
                         anniversary of the date of this agreement. Said grant
                         will be paid within 30 days of the Company closing of
                         its books for the 3rd Quarter of the Calendar year.

              C.  Vacation Time.
              Wayne Eastman shall be entitled to three (3) weeks paid vacation
              for each one year of service while this Agreement is in effect.

4.       Expenses. During the term of this Agreement the Company shall pay, or
         reimburse Wayne Eastman for, the reasonable and necessary expenses
         incurred in connection with this agreement, and such other expenses as
         the President or Board of Directors shall specifically approve. Wayne
         Eastman shall be compensated for business use of his vehicle at the
         rate of $500.00 per month. Wayne Eastman will be reimbursed for medical
         insurance premiums at a rate of $606.40 per month.

5.       Termination For Cause.  At any time during the Term, the Company may
         terminate this agreement and the assignment of Wayne Eastman as Vice
         President of Operations hereunder for Cause (as defined herein),
         effective immediately upon notice to Wayne Eastman.

                                       1
<PAGE>
         For purposes of this Agreement, Cause shall mean that Wayne Eastman:
         (1) breaches, neglects or fails to diligently perform to the reasonable
         satisfaction of the Company any or all of this duties under this
         Agreement, (2) commits an act of dishonesty or breach of trust, or acts
         in a manner which is inimical or injurious to the business or interest
         of the Company, (3) violates or breaches any of the provisions of the
         Agreement, (4) act or omission to act results in or is intended to
         result directly in gain to or personal enrichment at the Company's
         expense., (5) is indicted for or convicted of a felony or any crime
         involving larceny, embezzlement or moral turpitude, (6) becomes
         insolvent, makes an assignment for the benefit of creditors, files or
         has filed against him a petition for relief or other proceeding under
         federal bankruptcy law or state insolvency law or is assessed, or
         administered in any type of creditor's proceedings.

         On termination of this Agreement, all rights to compensation and
         benefits of RTS shall cease as of the Date of Termination, except RTS
         shall be entitled to any unpaid portion compensation earned to the Date
         of Termination.

6.       Vesting. Any options earned by virtue of the successful completion of
         the objectives set forth in Paragraph 3 above shall immediately be
         deemed vested. The option rights identified in this Agreement shall
         expire upon the earlier of one year from the date of vesting or 90 days
         following the termination of the Agreement. Upon any termination of the
         Agreement all rights to any unvested options shall be terminated.

7.       Binding Effect.  This Agreement shall inure to the benefit of and be
         binding upon the Company, its successors and assigns.

8.       Notice.  Any notice required to be given by this Agreement shall be
         delivered in hand to the person to whom such notice is addressed or
         mailed to such person by certified mail to the following appropriate
         address:

              To the Company:   Darryl S. Caplan, Esq.
                                Cureton Caplan Hunt Scaramella & Clark, P.C.
                                950 Chester Avenue
                                Delran, NJ 08075

              To RTS, Inc.:     Wayne Eastman
                                RTS, Inc.
                                8 Pueblo Trail
                                Branchburg, NJ 08876

9.       Governing Law. This Agreement shall be governed, construed and enforced
         according to the laws of the State of New Jersey and no other. All
         actions, whether sounding in contract or in tort, shall be instituted
         and litigated in the State of New Jersey and the parties hereto submit
         to the jurisdiction of the courts of the State of New Jersey,
         specifically the United States District Court of New Jersey and/or
         Superior Court of New Jersey.

10.      Nondisclosure.  At all times during and after the Term, RTS shall keep
         confidential  and shall not,  except with the Company's  express prior
         written consent, or except in the proper course of his employment with
         the Company, directly or indirectly,  communicate,  disclose, divulge,
         publish,  or  otherwise  express,  to any  Person,  or use for his own
         benefit or the benefit of any Person, any trade secrets,  confidential
         or  proprietary  knowledge  or  information,  no  matter  when  or how
         acquired,   concerning  the  conduct  and  details  of  the  Company's
         business,   including  without  limitation  ;names  of  customers  and
         suppliers,  marketing methods, trade secrets, policies,  prospects and
         financial  condition.  For  purposes  of  this  Section,  confidential
         information shall not include any information which is now known by or
         readily  available to the general  public or which becomes known by or
         readily  available to the general public other than as a result of any
         improper act or omission of RTS.

11.      Entire Agreement. It is specifically stipulated that there are no
         verbal agreements or understandings between the parties hereto
         affecting this Agreement, and that this Agreement constitutes the sole
         agreement between the parties. All prior contract agreements between
         RTS and the Company (and/or any of its affiliates) are hereby
         terminated as of the date hereof as fully performed on both sides.

In Witness Whereof the parties have caused this Agreement to be executed, sealed
and delivered, in the case of the Company by its officer thereunto duly
authorized, as of the date first above written.

                           The Company

                           By:__________________________________________

                           RTS, Inc.

                           By:__________________________________________

                                       2

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