LEASE MODIFICATION AGREEMENT & PERSONAL GUARANTEES






AGREEMENT) made this day of January, 2002

BETWEEN) WILLIAM IMPERIAL and IMPERIAL REALTY PARTNERSHIP, L.L.P., located at Post Office Box 576, Succasunna, New Jersey 07876, hereinafter referred to as the "Landlord"

AND) CHAN CORPORATION, INC. located at 181 Route 10 East, East Hanover, New Jersey, hereinafter referred to as the "Tennant".

WHEREAS by Lease Agreement dated December, 1991, and amended by Assignment of Lease, etc. dated March21, 1995, and Assignment of Lease dated December, 1998, Landlord leased to Tenant premises located at 181 Route 10 East, East Hanover, New Jersey, hereinafter known as the Lease Agreement.All terms and conditions of the current Lease Agreement and Assignment of Lease will remain in full force and ALICE W. CHAN and KWOK YEE CHAN, her husband, personally guaranty said Lease Agreement. The parties agree to the following modifications of said Lease Agreement.

NOW THEREFORE, in consideration of the mutual covenants, agreements and conditions set forth herein, it is agreed as follows:

1.) The rear garrage area measuring approximately 25' x 22' shall be excluded from the Lease Agreement. The Tennant agrees to remove all material storage from the garrage area and deliver this area to the Landlord,totaly vacant and in swepted clean condition, by January 31st, 2002.If for any reason the garrage area is not vacant and in swepted clean condition by January 31st, then this agreement will not take effect untill the first day of the following month after this condition has been met and the tenant shall be responsible for, and pay, the full present rent in the amount of $ 2790.00. After the effective date, the area that shall remain included in the Lease Agreement as the Store Premises located at 181 Rt. 10, East Hanover, New Jersey shall consist of the first floor (approx. 52' x 22') , and the basement below same (approx. 40' x 22').

2.) The Tenant covenants and agrees to pay to the Landlord, as rent for and during the term hereof, the sum of $ 2,590.00 on the first day of February, 2002 or the effective date as outlined above and a like sum on the first day of each and every month thereafter.

3.) Said Lease Agreement is further amended as follows:

The term shall end on December 31st, 2006 and shall provide in pertinent part as follows: 
               YEAR          MONTHLY RENT

               2003          $ 2590.00
               2004          $ 2590.00
               2005          $ 2590.00
               2006          $ 2590.00


4.) Provided the tenant is not in material breach of any of the terms of this lease, Landlord agrees that during the period commencing 180 days prior to the termination of this lease, Landlord shall negotiate with the Tenant for an extension of the term hereof upon such terms and conditions as shall be agreeable to Landlord.

5.) KWOK YEE CHAN and ALICE W.CHAN hereby guararntee the punctual payment by the Tenant of rent and other charges imposed by the Lease Agreement and the performance by the Tenant of all other terms and conditions thereof. This is an absolute guaranty of paytment of the said obligation and not a guaranty of collection. KWOK YEE CHAN and ALICE W. CHAN agree that if the Tenant defaults and such default continues for more than thirty (30) days, they shall pay the rent, additional rent or comply with all other terms and conditions on demand.

IN WITNESS WHEREOF, the parties herto have hereunto set their hands and seals to be hereto affixed the day and year first written above.
Witness or Attest:







By:






William Imperial















Kwok Yee Chan















Alice W. Chan






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