Document:

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                                                                   EXHIBIT 10.20

                           FIRST AMENDMENT TO AMENDED
                      AND RESTATED SUBORDINATION AGREEMENT

        THIS FIRST AMENDMENT TO AMENDED AND RESTATED SUBORDINATION AGREEMENT
(this "Amendment"), dated as of December 15, 1999, is entered into by and
between CONGRESS FINANCIAL CORPORATION (WESTERN), a California corporation
("Senior Lender"), and KRAUSE'S FURNITURE, INC., a Delaware corporation
("Subordinating Lender").

                                     RECITALS

        A. Subordinating Lender and Senior Lender have previously entered into
that certain Amended and Restated Subordination Agreement dated as of August 26,
1996 (the "Subordination Agreement"). Terms used herein without definition shall
have the meanings ascribed to them in the Subordination Agreement.

        B. Subordinating Lender and Borrower have informed Senior Lender that
they intend to amend, restate and replace all existing Junior Debt Documents
with a new promissory note. In accordance with the terms of the Subordination
Agreement, Subordinating Lender and Borrower hereby requests that Senior Lender
(i) consent to the issuance of such new promissory note to replace the existing
Junior Debt Documents and (ii) amend the Subordination Agreement to reflect
certain terms of such new promissory note.

        C. Senior Lender is willing to agree to give such consent and make such
amendments to the Subordination Agreement under the terms and conditions set
forth in this Amendment. Subordinating Lender is entering into this Amendment
with the understanding and agreement that none of Senior Lender's rights or
remedies as set forth in the Subordination Agreement is being waived or modified
by the terms of this Amendment.

        NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants herein contained, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereby
agree as follows:

        1.     Amendments to Subordination Agreement.

               (a) The definition of "Junior Debt" set forth in Section 1 of the
        Subordination Agreement is hereby amended and restated in its entirety
        to read as follows:

                      "'Junior Debt' means all present and future indebtedness
               and other obligations (direct and indirect) owing by Borrower to
               Subordinating Lender including, but not limited to, indebtedness
               owed under the Junior Debt Documents."

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               (b) The definition of "Junior Debt Documents" set forth in
        Section 1 of the Subordination Agreement is hereby amended and restated
        in its entirety to read as follows:

                      "`Junior Debt Documents' means all instruments and
               agreements evidencing the Junior Debt, including, but not limited
               to, that certain Subordinated Promissory Note, dated December 15,
               1999 in the original principal amount of Forty One Million One
               Hundred Forty One Thousand Eight Hundred Thirty Five Dollars
               ($41,141,835) executed by Borrower to the order of Subordinating
               Lender, a copy of which is attached hereto as Exhibit A and
               incorporated herein by this reference."

               (c) Section 3(b) of the Subordination Agreement (entitled
        "Payments to Subordinating Lender") is hereby amended and restated in
        its entirety to read as follows:

                      "b. Payments to Subordinating Lender. If no default or
               event of default by Borrower under any present or future
               instrument or agreement (including the Senior Loan Agreement)
               between Borrower and Senior Lender shall have occurred, Borrower
               may make the following payments against the Junior Debt:

                             (i) quarterly payments of interest at a rate per
                      annum equal to one percent (1.0%) in excess of the rate
                      announced publicly from time to time by Bank of America
                      National Trust and Savings Association at its San
                      Francisco executive offices as its "prime rate", but in
                      any event not to exceed a maximum rate of ten percent
                      (10%) per annum; and

                             (ii) semi-annual payments of principal, in an
                      amount not to exceed fifty percent (50%) of Excess Cash
                      Flow for the applicable semi-annual period, if any (for
                      the purposes of this Section 3(b)(ii), `Excess Cash Flow'
                      shall mean, for any applicable semi-annual period, net
                      income after taxes of Borrower, exclusive of extraordinary
                      gains, plus depreciation and any other non-cash items to
                      the extent deducted from the revenues of Borrower in the
                      calculation of net income or loss, and less any capital
                      expenditures that are actually made and not financed
                      during such period); provided however, that (A) principal
                      payments shall not be permitted, unless, notwithstanding
                      the availability of Excess Cash Flow, after giving effect
                      to such principal payment, Borrower has a minimum of One
                      Million Dollars ($1,000,000) of Excess Availability (as
                      defined under the Senior Loan Agreement) as of the last
                      day of the applicable semi-annual period and (B) Borrower
                      shall only be permitted to pay the semi-annual principal
                      payments upon receipt and review by Lender of Borrower's
                      financial statements for the semi-annual period to which
                      the requested payment relates, which financial statements
                      shall be prepared in accordance with GAAP consistently
                      applied subject to normal year-end audit adjustments and
                      shall show sufficient Excess Cash Flow to permit the
                      principal payment and the required minimum Excess
                      Availability;

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               provided further however, that after giving effect to any such
               payment to Subordinating Lender, no default or event of default
               by Borrower under any present or future instrument or agreement
               (including the Senior Loan Agreement between Borrower and Senior
               Lender) shall have occurred and prior to such payment, Borrower
               and Subordinating Lender shall have provided notice to Senior
               Lender of such intended payment or any demand for such payment.
               Except as provided in this Agreement, Borrower and Subordinating
               Lender agree and (Subordinating Lender acknowledges such
               agreement) that Borrower shall neither: (i) make any payments to
               Subordinating Lender in respect of the Junior Debt; nor (ii)
               without Senior Lender's prior written consent, execute or deliver
               any negotiable instruments as evidence of the Junior Debt."

               (d) The addresses set forth in Section 12 of the Loan Agreement
        to which notices are to be delivered to Senior Lender are hereby changed
        to the following:

               Senior Lender:       CONGRESS FINANCIAL CORPORATION (WESTERN)
                                    251 South Lake Avenue, Suite 900
                                    Pasadena, California  91101
                                    Attention: Account Executive

               With a copy to:      KELLEY DRYE & WARREN LLP
                                    777 South Figueroa Street, Suite 2700
                                    Los Angeles, California  90017
                                    Attention:  Marshall C. Stoddard, Jr., Esq.

        2. New Exhibit A. The existing Exhibit A to the Subordination Agreement
is hereby replaced in its entirety with the Exhibit A attached hereto.

        3. Consent to New Junior Debt Documents. Subject to the terms and
conditions set forth herein, Senior Lender hereby consents to the issuance of a
new promissory note by Borrower to the order of Subordinating Lender to replace
all existing Junior Debt Documents; provided that, such new promissory note
shall be in form and substance satisfactory to Senior Lender.

        4. Effectiveness of this Amendment. Senior Lender must have received the
following items, in form and substance acceptable to Senior Lender, or evidence
of the occurrence thereof, before this Amendment is effective.

               (a) Amendment. This Amendment fully executed in a sufficient
number of counterparts for distribution to Senior Lender and Subordinating
Lender.

               (b) Authorizations. Evidence that the execution, delivery and
performance by Subordinating Lender of this Amendment and any instrument or
agreement required under this Amendment have been duly authorized.

               (c) Representations and Warranties. The representations and
warranties of Subordinating Lender set forth herein must be true and correct.

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               (d) Eighth Amendment to Senior Loan Agreement. The Eighth
Amendment to the Senior Loan Agreement duly executed by Borrower.

               (e) Other Required Documentation. All other documents and legal
matters in connection with the transactions contemplated by this Amendment shall
have been delivered or executed or recorded and shall be in form and substance
satisfactory to Senior Lender.

        5. Representations and Warranties. Subordinating Lender and Borrower
represent and warrant (jointly and severally) to Senior Lender that:

               (a) Amount of Junior Debt. As of the date of this Amendment, the
aggregate outstanding principal balance (principal plus interest) of this Junior
Debt is Forty One Million One Hundred Forty One Thousand Eight Hundred Thirty
Five Dollars ($41,141,835).

               (b) No Default. After giving effect to the transactions
contemplated by this Amendment, Borrower is not in default under any Junior Debt
Document.

        6. Choice of Law. The validity of this Amendment, its construction,
interpretation and enforcement, and the rights of the parties hereunder, shall
be determined under, governed by, and construed in accordance with the laws of
the State of California governing contracts wholly to be performed in that
State.

        7. Counterparts. This Amendment may be executed in any number of
counterparts and by different parties on separate counterparts, each of which
when so executed and delivered, shall be deemed an original, and all of which,
when taken together, shall constitute but one and the same instrument.

        8. Due Execution. The execution, delivery and performance of this
Amendment are within the powers of the Subordinating Lender, have been duly
authorized by all necessary corporate action, have received all necessary
governmental approval, if any, and do not contravene any law or any contractual
restrictions binding on Subordinating Lender.

        9. Otherwise Not Affected. In the event of any conflict or inconsistency
between the Subordination Agreement and the provisions of this Amendment, the
provisions of this Amendment shall govern. Except to the extent set forth
herein, the Subordination Agreement shall remain in full force and effect.

        10. Ratification. Subordinating Lender hereby restates, ratifies and
reaffirms each and every term and condition set forth in the Subordination
Agreement, as amended hereby, effective as of the date hereof.

        11. Estoppel. To induce Senior Lender to enter into this Amendment and
to continue to make advances to Borrower under the Senior Loan Agreement,
Subordinating Lender hereby acknowledges and agrees that, after giving effect to
this Amendment, as of the date hereof, there exists no default by Subordinating
Lender and no right of offset, defense, counterclaim or objection in favor of
Subordinating Lender as against Senior Lender with respect to the obligations of
Subordinating Lender under the Subordination Agreement.

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        IN WITNESS WHEREOF, the parties hereto have executed this Amendment as
of the day and year first above written.

                                      KRAUSE'S FURNITURE, INC.,
                                      a Delaware corporation

                                      By:_____________________________
                                      Name:___________________________
                                      Title:__________________________

                                      CONGRESS FINANCIAL
                                      CORPORATION (WESTERN),
                                      a California corporation

                                      By:_____________________________
                                      Name:___________________________
                                      Title:__________________________

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                                 ACKNOWLEDGMENT

        The undersigned Borrower hereby approves of, and agrees and consents to
the foregoing Amendment. Borrower further agrees to be bound by the
Subordination Agreement, as amended by such Amendment. Although Senior Lender
and Subordinating Lender have informed Borrower of such Amendment and the
matters set forth above, and Borrower has acknowledged the same, Borrower
understands and agrees that neither Senior Lender nor Subordinating Lender has a
duty under the Subordination Agreement, the Senior Loan Agreement or any other
agreement with Borrower, to so notify Borrower or to seek such an
acknowledgment, for such Amendment to be effective, and nothing contained herein
is intended to or shall create such a duty as to any amendments hereafter.

Dated:  December 15, 1999                   KRAUSE'S CUSTOM CRAFTED
                                            FURNITURE CORP.,
                                                  a California corporation

                                                By:_____________________________
                                                Name:___________________________
                                                Title:__________________________

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                                                                     Exhibit 4.5
                                                                  EXECUTION COPY

                               AMENDMENT NUMBER 4
                                     TO THE
             AMENDED AND RESTATED POOLING AND SERVICING AGREEMENT

            THIS AMENDMENT NUMBER 4 TO THE AMENDED AND RESTATED POOLING AND
SERVICING AGREEMENT, dated as of May 14, 1999, (this "Amendment") is between
FLEET BANK (RI), NATIONAL ASSOCIATION ("Fleet (RI)"), a national banking
association, as Seller and Servicer, and BANKERS TRUST COMPANY, as Trustee (the
"Trustee") under the Amended and Restated Pooling and Servicing Agreement, dated
as of December 1, 1993 (as amended by Amendment Number 1 to the Amended and
Restated Pooling and Servicing Agreement, dated as of July 1, 1994, as further
amended by Amendment Number 2 to the Amended and Restated Pooling and Servicing
Agreement, dated as of October 6, 1995, and as further amended by Amendment
Number 3 to the Amended and Restated Pooling and Servicing Agreement, dated as
of February 20, 1998, and as assigned by Advanta National Bank, previously known
as Advanta National Bank USA and prior to that known as Colonial National Bank
USA ("Advanta"), to Fleet (RI) pursuant to an Assignment and Assumption
Agreement, dated as of February 20, 1998, among Advanta, Fleet (RI), Fleet
Credit Card, LLC and Bankers Trust Company, as Trustee, the "Pooling and
Servicing Agreement"), between Fleet (RI), as Seller and Servicer, and the
Bankers Trust Company, as Trustee for the Fleet Credit Card Master Trust II.

                                    RECITALS

            WHEREAS, Fleet (RI) wishes to amend the Pooling and Servicing
Agreement as provided herein in accordance with Section 13.01(a) of the Pooling
and Servicing Agreement and the Trustee is willing to consent to such amendment
upon the terms provided for herein.

            NOW THEREFORE, in consideration of the premises and the agreements
contained herein, the parties hereto agree as follows:

             SECTION 1. Amendment of Section 4.02. Section 4.02 of the Pooling
and Servicing Agreement is hereby amended by adding the following paragraph at
the end of such section.

                  Notwithstanding the immediately preceding paragraph, the terms
            of this paragraph shall apply and to the extent of any differences
            between this paragraph and the immediately preceding paragraph the
            terms of this paragraph shall control so long as (1) on each Date of
            Processing if the Seller Amount on such Date of Processing is less
            than the Required Seller Amount and the Seller makes a deposit
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            into the Excess Funding Account to the extent needed to increase the
            Seller Amount to the Required Seller Amount and (2) Fleet (RI)
            remains the Servicer and maintains a certificate of deposit rating
            of P-1 or better by Moody's. Funds on deposit in the Excess Funding
            Account shall at the direction of the Servicer be invested by the
            Trustee in Eligible Investments selected by the Servicer. All such
            Eligible Investments shall be held by the Trustee for the benefit of
            the Certificateholders. The Trustee shall maintain for the benefit
            of the Certificateholders possession of the negotiable instruments
            or securities, if any, evidencing such Eligible Investments. Funds
            on deposit in the Excess Funding Account on any date (after giving
            effect to any withdrawals from the Excess Funding Account on such
            date) will be invested in Eligible Investments that will mature so
            that funds will be available at the close of business on the
            Transfer Date following such date or with respect to some or all of
            the amounts so invested, so that funds will be available on such
            earlier date as the Servicer directs. Unless directed by the
            Servicer, funds deposited in the Excess Funding Account on a
            Transfer Date with respect to the next following Distribution Date
            are not required to be invested overnight. On each Transfer Date,
            the Servicer shall instruct the Trustee to withdraw on the related
            Distribution Date from the Excess Funding Account and deposit in the
            Collection Account all interest and other investment earnings (net
            of losses and investment expenses) on funds on deposit in the Excess
            Funding Account, for application as Collections of Finance Charge
            Receivables with respect to the prior Monthly Period. Interest
            (including reinvested interest) and other investment income and
            earnings on funds on deposit in the Excess Funding Account shall not
            be considered part of the Excess Funding Amount for purposes of this
            Agreement. On any Business Day on which no Series is in an
            Accumulation Period or Amortization Period, the Servicer shall
            determine the amount by which the Seller Amount exceeds the Required
            Seller Amount on such date and shall instruct the Trustee in writing
            to withdraw such amount from the Excess Funding Account on the next
            succeeding Business Day and pay such amount to the Holders of the
            Seller Certificates. On any Business Day on which one or more Series
            is in an Accumulation Period or Amortization Period, if the Servicer
            determines (i) that, on the first Distribution Date after such
            Business Day no Principal Shortfall will exist with respect to any
            Principal Sharing Series and (ii) that, on such Business Day, the
            Seller Amount exceeds the Required Seller Amount, then the Servicer
            shall instruct the Trustee in writing to withdraw the amount by
            which the Seller Amount exceeds the Required Seller Amount from the
            Excess Funding Account on the next succeeding Business Day and pay
            such amount to the Holders of the Seller Certificates. For purposes
            of the immediately preceding sentence, the Servicer shall determine
            whether or not a Principal Shortfall will exist on the first
            Distribution Date thereafter solely on the basis of Collections
            received by the Servicer prior to the Business Day on which such
            determination is made (and for the Monthly Period related to such
            Distribution Date) and on the assumption that no additional
            Collections will be received prior to such Distribution Date. On any
            Transfer Date on which one or more Series is in an Accumulation
            Period or Amortization Period, the Servicer shall determine

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            the aggregate amount of Principal Shortfalls, if any, with respect
            to each such Series that is a Principal Sharing Series (after giving
            effect to the allocation and payment provisions in the Supplement
            with respect to each such Series), and the Servicer shall instruct
            the Trustee in writing to withdraw such amount (up to the Excess
            Funding Amount) from the Excess Funding Account on the succeeding
            Distribution Date and allocate such amount among each such Series as
            Shared Principal Collections as specified herein and in each related
            Supplement.

            SECTION 2.   SECTION 2.  Effectiveness.  The amendment provided
for by this Amendment shall become effective on the date (the "Effective
Date") that each of the following events occur:

            (a) Fleet (RI) shall have delivered to the Trustee an Officer's
Certificate from Fleet (RI) stating that Fleet (RI) reasonably believes that the
execution and delivery of this Amendment will not have an Adverse Effect.

            (b) Fleet (RI) shall have received from each Rating Agency written
confirmation that the execution and delivery of this Amendment will not result
in the reduction or withdrawal of its current rating of any outstanding Series
or Class of Investor Certificates.

            (c) Each of the parties hereto shall have received counterparts of
this Amendment, duly executed by each of the parties hereto.

             SECTION 3. Pooling and Servicing Agreement in Full Force and Effect
as Amended. Except as specifically amended hereby, all of the terms and
conditions of the Pooling and Servicing Agreement shall remain in full force and
effect. All references to the Pooling and Servicing Agreement in any other
document or instrument shall be deemed to mean such Pooling and Servicing
Agreement as amended by this Amendment. This Amendment shall not constitute a
novation of the Pooling and Servicing Agreement, but shall constitute an
amendment thereof. The parties hereto agree to be bound by the terms and
obligations of the Pooling and Servicing Agreement, as amended by this
Amendment, as though the terms and obligations of the Pooling and Servicing
Agreement were set forth herein.

             SECTION 4. Counterparts. This Amendment may be executed in any
number of counterparts and by separate parties hereto on separate counterparts,
each of which when executed shall be deemed an original, but all such
counterparts taken together shall constitute one and the same instrument.

             SECTION 5. Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE
TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF
THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

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            IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
the Pooling and Servicing Agreement to be duly executed by their respective
authorized officers as of the day and year first above written.

                                    FLEET BANK (RI), NATIONAL ASSOCIATION,
                                    Seller and Servicer

                                    By:  /s/ Jeffrey A. Lipson
                                        -------------------------------------
                                        Name: Jeffrey A. Lipson
                                        Title:  Vice President

                                    BANKERS TRUST COMPANY,
                                    Trustee

                                    By:  /s/ Peter Becker
                                        -------------------------------------
                                        Name: Peter Becker
                                        Title:  Assistant Vice President

                  [Signature Page to Amendment No. 4 to the
            Amended and Restated Pooling and Servicing Agreement]

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