Document:

EXHIBIT 10.04
                          PIONEER REALTY HOLDINGS, LLC

                                41 ANNETT AVENUE
                        EDGEWATER, NEW JERSEY 07020-1529

February 21, 2007

Charles Milich, President
The RAL Supply Group, Inc.
24 Dunning Road
Middletown, NY 10940

                                    Re: Modification of Lease (the "Third
                                    Modification of Lease Agreement")

                                    Pioneer Realty Holdings, LLC as Landlord,
                                    with RAL Purchasing Corp., as Assignee of
                                    RAL Supply Group, Inc., f/k/a RAL
                                    Purchasing Corp., as Tenant

                                    Premises located at 2213 Route 9, Town of
                                    Fishkill, Dutchess County, NY (the "Fishkill
                                    Store")

                                    Lease dated September 1, 1998 (the "Lease
                                    Agreement")

                                    Modification of Lease dated September 30,
                                    2003 (the "First Modification of Lease
                                    Agreement")

                                    Modification of Lease dated April 12, 2005
                                    (the "Second Modification of Lease
                                    Agreement")

Dear Mr. Milich:

With  regard  to  the  above Lease, it is understood that the Lease Agreement as
amended  by the First Modification of Lease Agreement and Second Modification of
Lease  Agreement  (as  so  amended,  the "Lease") is hereby further modified and
amended  as  of  the  Effective  Date  as  defined  below.

     1.   Paragraph 1.1 is hereby amended to read as follows:

               "1.1 Leases  Premises
                    ----------------

                    Landlord  hereby  leases  to  Tenant  the  premises  more
                    particularly  described  in  Schedule A, attached hereto and
                    made  part hereof, consisting of approximately 25,947 square
                    feet,  hereinafter  sometimes  called  "Leased  Premises."

<PAGE>
     2.   Paragraph 1.2 is hereby amended to read as follows:

               "1.2 Initial Term of Lease and Effective Date
                    ----------------------------------------

                    a.   The  "Initial  Term"  of  this  Lease  for  the  Leased
                         Premises  shall  be  for  a  period  commencing  on the
                         Effective  Date,  and  terminating  on  March 31, 2017.

                    b.   The term "Effective Date" means the date of issuance of
                         a  certificate of occupancy for the Leased Premises (as
                         defined  below) by the Town of Fishkill for the purpose
                         of  distribution  of  heating,  ventilating  and  air
                         conditioning ("HVAC") and plumbing equipment, parts and
                         accessories."

     3.   Paragraph 1.5 is hereby amended to read as follows:

               "1.5 Covenant to Pay Rent
                    --------------------

                    Tenant  shall  pay  to  Landlord  the Annual Fixed Rental as
                    set  form  on  Schedule  B, annexed hereto, in equal monthly
                    installments,  in advance, without setoff or defense, on the
                    first  day  of each and every calendar month, beginning upon
                    the "Effective Date" as defined herein, until the expiration
                    of  the  term  of  this  Lease  and  any  Renewal  Term."

     4.   Schedule B, paragraph 1.1, is hereby amended to read as follows:

               "1.1 The "Annual  Fixed  Rent"  for  the  Leased  Premises during
                    the  initial  term  shall  be  the sum of $245,844 per year,
                    payable  $20,487  per  month  in advance on the first day of
                    each  month."

     5.   Schedule  B,  paragraph  1.3,  is  hereby  amended  to substitute "May
          2006"  in  place of "May 1998" as the "Base Month," and to substitutes
          May  2007  for  May  1999  in  such  paragraph.

     6.   Schedule B, paragraph 1.4, is hereby amended to read as follows:

               "1.4 The  Annual  Fixed  Rent  for the second year of the Initial
                    Term shall be $245,844 per year, increased by the percentage
                    of  the  Index  of  the Comparison Month (May 2007) over the
                    Base  Month  (May  2006),  except that in no event shall the
                    increase  be  less than a two (2%) percent increase over the
                    previous  year  or  more than an eight (8%) percent increase
                    over  the  previous  year."

     7.   The examples  in  Schedule  B  are  hereby modified in accordance with
          the  amendment  effectuated  by  the  foregoing  Sections.

All  other  terms  and  conditions  of  the Lease shall remain in full force and
effect.

<PAGE>
If this agrees with your understanding, kindly sign below.

Sincerely,                              Agreed and Accepted:

Pioneer Realty Holdings, LLC            The RAL Supply Group, Inc. f/k/a RAL
                                        Purchasing Corp.

By:  /s/ William Pagano                 By:  /s/ Charles Milich
     ------------------------------          ------------------------------
     William Pagano, Member                  Charles Milich, President

Accepted and Approved:

Colonial Commercial Corp.

By:  /s/ William Salek
     ------------------------------
     William Salek, CFOEXHIBIT 10.05

                               OPTION TO PURCHASE
                               ------------------

     Option Agreement ("Agreement") made as of February 21, 2007, by and between
PIONEER  REALTY HOLDINGS, LLC, a New York limited liability company ("Pioneer"),
having an address at 41 Annett Avenue, Edgewater, New Jersey 07020, and COLONIAL
COMMERCIAL  CORP.,  having an address at 275 Wagaraw Road, Hawthorne, New Jersey
07506  ("Colonial").  Pioneer  and  Colonial  are  sometimes  referred to as the
"parties."

                                    Recitals

     A.  Pioneer  is  the  owner of a improved property located at 2213 Route 9,
Town  of Fishkill, Dutchess County, NY (the "Premises") which is presently being
leased  to  The  RAL  Supply  Group,  Inc. ("RAL"), a wholly-owned subsidiary of
Colonial,  pursuant  to  a  Lease  dated  September  1,  1998, as modified under
agreements  dated as of September 30, 2003 and April 12, 2005, respectively (the
"Lease").

     B.  Pioneer  is owned by a group of private investors that includes William
Pagano  ("Pagano").

     C.  Pioneer has commenced a renovation and expansion of the Premises.  Upon
completion,  the entire renovated Premises will be leased to RAL under the terms
of  the  Lease.

     D.  In accordance with resolutions adopted at a Colonial Board of Directors
meeting  on  January  18, 2007, as of the date hereof Colonial will enter into a
third  modification  of  the  terms  of the Lease, including an increase in rent
payments  due under the Lease, provided that Pioneer grant Colonial an option to
purchase  the  Premises  exercisable  through  July  31,  2007.

     NOW,  THEREFORE,  in  consideration  of  the  foregoing  and other good and
valuable  consideration  the  receipt  of  which  is  hereby  acknowledged,  and
intending  to  be  legally  bound hereby, Pioneer and Colonial agree as follows:

1.  Pioneer  hereby  grants  Colonial  the  option  ("Option")  to  purchase the
Premises for (i) an exercise price equal to Pioneer's total financial investment
in the Premises through the date of exercise and (ii) the release of Pagano (and
any  other guarantors) from all bank guaranties of mortgage loans secured by the
Premises.  The  Option  shall  expire  on  July  31,  2007.

2.  The  Option may be exercised by delivery of a notice of exercise to Pioneer,
followed  by  payment  of  the  exercise  price  in full and release of all bank
guarantors,  within  thirty  (30)  days  of  receipt  from Pioneer of a detailed
calculation  of  the  exercise  price.

3.  Any and all notices to be given under this Agreement shall be in writing and
shall  be  deemed to have been duly given immediately when personally delivered,
on  the  next  business  day  when delivered by overnight courier, or three days
after  being  mailed by first class registered or certified mail, return receipt
requested, addressed to the parties at the addresses set forth above (or at such
other  address  as any party may specify by notice to all other parties given as
aforesaid).

<PAGE>
4.  This writing constitutes the entire agreement of the parties with respect to
the  subject matter hereof, supersedes all prior agreements or understandings of
the  parties  relating  thereto,  and may not be modified, amended or terminated
except  by  a  written  agreement.

5.  This  Agreement shall be binding upon and inure to the benefit of each party
hereto,  its  successors  and  assigns.  Neither  party  may  assign either this
Agreement  or any of its rights, interests, or obligations hereunder without the
prior  written  approval  of  the  other.

6.  Each  party hereto shall cooperate, shall take such further action and shall
execute and deliver such further documents as may be reasonably requested by any
other party in order to carry out the provisions and purposes of this Agreement.

7.  This  Agreement  shall be governed and construed in accordance with the laws
of  the  State  of  New  York, applicable to agreements made and to be performed
within  such  State.  Any disputes, controversies or claims ("Disputes") arising
out  of  or  relating  to  the  transactions  contemplated herein, or the breach
thereof,  shall  be  referred to a single arbitrator selected in accordance with
the  rules  of  the American Arbitration Association ("AAA") sitting in New York
City, New York and enforcement of and/or challenges to any determination made by
such  arbitrator shall be determined in accordance with the laws of the State of
New  York.  Any award issued by the AAA shall be final and binding, and judgment
upon  the  award rendered may be entered in any court having jurisdiction.  Such
arbitration  shall  be  the  exclusive method of resolving Disputes.  Each party
shall  be  liable  for  its  own  attorney's  fees.

8.  No course of dealing between the parties to this Agreement or any failure or
delay  on  the  part  of  either  party  in exercising any rights or remedies or
enforcing  any of the provisions of the Agreement shall be construed as a waiver
of  such  provisions or preclude the exercise of any other rights or remedies or
the  enforcement  of  any  provisions  hereunder.

9.  The  waiver  by  any  party  hereto  of  a  breach  of any provision of this
Agreement shall not operate or be construed as a waiver of any subsequent breach
of  any  party.  No failure or delay (in whole or in part) on the part of either
party  hereto  to  exercise  any  right or remedy hereunder will impair any such
right  or  remedy,  operate  as  a waiver thereof, or affect any right or remedy
hereunder.  All  rights  and  remedies  hereunder  are  cumulative  and  are not
exclusive of any other rights or remedies provided hereunder or by law

10.  This  Agreement  may be executed in one or more counterparts, each of which
shall  be  deemed  an original but all of which together will constitute one and
the  same  instrument.  Delivery of an executed counterpart of this Agreement by
facsimile  shall  have  the  same  force  and  effect as delivery of an original
executed  counterpart  of  this  Agreement.  Any  party  delivering  an executed
counterpart  of  this  Agreement  by  facsimile  shall  also deliver an original
executed  counterpart  of this Agreement, but the failure to deliver an original
executed  counterpart  shall not affect the validity, enforceability and binding
effect of this Agreement as to such party or any other party.

<PAGE>
IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of the day,
month  and  year  first  above  written.

PIONEER REALTY HOLDINGS, LLC

By:     /s/ William Pagano
        ------------------
Name:   William Pagano
Title:  Managing Member

COLONIAL COMMERCIAL CORP.

By:     /s/  William Salek
        ------------------
Name:   William  Salek
Title:  CFO, Secretary

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