Exhibit 10.8

                   LEASE MODIFICATION AND EXTENSION AGREEMENT


                  THIS  AGREEMENT,  made  this  6th day of  June,  1996,  by and
between Hanover Public Warehousing,  Inc., a New Jersey  corporation,  having an
office at Park 80 West, Plaza II, Saddle Brook,  New Jersey 07663  ("Landlord"),
and Five Star Group, Inc., a Delaware corporation (successor by corporate merger
to J. Leven & Co.),  having an address at 903 Murray Road,  P.O. Box 1960,  East
Hanover, New Jersey 07936 ("Tenant").

                              W I T N E S S E T H:

                  WHEREAS,  Landlord's  predecessor  in  interest  and  Tenant's
predecessor in interest  entered into a lease,  dated May 11, 1983, (as same may
have been amended from time to time,  the "Lease"),  covering  certain  premises
consisting of 192,513 square feet of floor area (the "Demised  Premises") in the
"Building" (as defined in the Lease) located in the "Complex" (as defined in the
Lease) situated in East Hanover, New Jersey; and

                  WHEREAS, all of the right, title and interest of Vornado, Inc.
as  Landlord  under  the  Lease  was  heretofore   acquired  by  Hanover  Public
Warehousing, Inc.; and

                  WHEREAS,  Landlord and Tenant desire to modify the Lease so as
to increase the floor area of the Demised  Premises,  to increase the "Rent" (as
defined  in the  Lease)  payable  by  Tenant,  and to change  the Lease in other
respects, all as hereinafter set forth in this Agreement; and

                  NOW,  THEREFORE,  in consideration of the terms and provisions
herein contained, the Lease is modified as follows:

1.  From  and  after  the  "Fourth   Additional  Space  Commencement  Date"  (as
hereinafter  defined),  Exhibit A attached  to the Lease shall be deleted in its
entirety and all  references  to Exhibit A in the Lease shall be deemed to refer
to Exhibit A-4 attached hereto and made a part hereof.

2. From and after the Fourth Additional Space  Commencement Date the size of the
Demised  Premises,  presently  consisting of 192,513  square feet of floor area,
shall be changed and increased to 236,195 square feet of floor area. The changed
and  increased  Demised  Premises is shown on Exhibit A-4. The floor area hereby
added to the  Demised  Premises  is  hereinafter  sometimes  referred  to as the
"Fourth Additional Space".

3. Except for  "Landlord's  Work" as described on Exhibit B attached  hereto and
made a part  hereof,  Tenant shall accept  possession  of the Fourth  Additional
Space in its present "As Is"  condition and shall,  at its own expense,  perform
all work  necessary to make the Second  Additional  Space  suitable for Tenant's
business  operation  at the Demised  Premises.  Such work shall be  performed by
Tenant in accordance with the provisions of Section 3.04 of the Lease.  Landlord
shall commence  Landlord's Work as soon as the current tenant vacates the Fourth
Additional Space.

4. Effective as of the Fourth Additional Space  Commencement  Date, Section 1.03
of the Lease  shall be deemed to be deleted in its  entirety  and the  following
shall be deemed to be inserted in its place and stead:

                  "Section 1.03. Expiration Date: Means March 14, 2007."

5. Effective as of the Fourth Additional Space  Commencement  Date, the "Minimum
Rent" (as defined in the Lease)  shall be  increased as follows and Section 1.04
of the Lease shall be deemed to be amended accordingly

                  "(i)  From  the  Fourth  Additional  Space  Commencement  Date
through March 14, 1997,  Minimum Rent shall be the sum of $767,633.75 per annum;
and

                  (ii) From March 15, 1997 through March 14, 2002,  Minimum Rent
shall be the sum of $885,731.25; and

                  (iii) From March 15, 2002 through March 14, 2007, Minimum Rent
shall be the sum of $944,780.00 per annum."

6.       Effective as of the Fourth Additional Space Commencement Date, the
floor  area of the  entire  Demised  Premises  (236,195  square  feet)  shall be
included in the  numerator  and  denominator  of  Tenant's  "Pro Rata Share" (as
defined in the Lease).

7. "Fourth Additional Space Commencement Date" means the later to occur of: (i)
September  1, 1996;  or (ii) the date that the current  Tenant vacates the 
Fourth Additional Space.

8.       As herein expressly modified and supplemented, all of the terms,
covenants and  conditions of the Lease shall remain in full force and effect and
be  binding  upon and  inure to the  benefit  of the  parties  hereto  and their
respective successors and assigns.

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

ATTEST:                                 LANDLORD:  Hanover Public
                                                   Warehousing, Inc.

By:  _______________________            By:      _______________________________
     Susan D. Schmider                           Joseph Macnow
     Secretary                                   Vice President 
                                                 Chief Financial Officer


ATTEST:                                 TENANT:  Five Star Group, Inc.


_____________________________           By:      ______________________________



CONSENTED TO:                               ATTEST:

National Patent Development Corporation

By:  _________________________               __________________________________

Dated:    June 6th, 1996

STATE OF New York  )
                   )   SS:
COUNTY OF New York )

                  On this 6th day of June, 1996, before me personally came to me
Richard  Grad known,  who,  being by me duly  sworn,  did depose and say that he
resides at 903 Murray Road, East Hanover, New Jersey that he is President the of
Five Star Group,  Inc.,  the  corporation  described  in and which  executed the
foregoing Lease Modification and Extension Agreement;  that he knows the seal of
said  corporation,  that the seal affixed to said  instrument is such  corporate
seal,  that it was so  affixed  by  order  of the  board  of  directors  of said
corporation, and that he signed his name thereto by like order.

                  In witness whereof I hereunto set my hand and official seal.



(Notarial Seal)                              __________________________________
                                                               Notary Public




STATE OF New York )
                  )   SS:
COUNTY OF New York)


                  On this 6th day of June, 1996, before me personally came to me
Scott. N. Greenberg known,  who, being by me duly sworn, did depose and say that
he  resides at 9 West 57th  Street,  New York,  New York,  that he is the V.P. &
Chief  Financial  Officer  of  National  Patent  Development  Corporation,   the
corporation described in and which executed the foregoing Lease Modification and
Extension Agreement,  that he knows the seal of said corporation,  that the seal
affixed to said  instrument is such  corporate  seal,  that it was so affixed by
order of the board of directors of said corporation, and that he signed his name
thereto by like order.

                  In witness whereof I hereunto set my hand and official seal.


(Notarial Seal)                         __________________________________
                                                          Notary Public


<PAGE>


                                                                   EXHIBIT "B"

                                 Landlord's Work

                                    J. Leven



1. Landlord to demolish entire demising wall.

2. All electric, plumbing, lighting and heating to be in working order.

3. Leave fenced area in place.