Document:

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                                                                    EXHIBIT 10.1

                                 SIXTH AMENDMENT
                        TO CREDIT AND SECURITY AGREEMENT

                  SIXTH AMENDMENT TO CREDIT AND SECURITY AGREEMENT, dated as of
June 30, 2004 (the "Amendment"), among FRANK'S NURSERY & CRAFTS, INC., a
Delaware corporation ("Borrower"), and KIMCO CAPITAL CORP., as lender
("Lender"):

                              W I T N E S S E T H:

                  WHEREAS, Borrower and Lender are parties to that certain
Credit and Security Agreement, dated as of May 20, 2002, (as amended by that
certain First Amendment and Waiver to Credit and Security Agreement, dated as of
January 23, 2003, that certain Second Amendment to Credit and Security
Agreement, dated as of July 7, 2003, that certain Third Amendment to Credit and
Security Agreement, dated as of October 30, 2003, that certain Fourth Amendment
to Credit and Security Agreement, dated as of January 16, 2004, and that certain
Fifth Amendment to Credit and Security Agreement, dated as of January 21, 2004,
and as the same may be further amended, modified or supplemented from time to
time, the "Credit Agreement"); and

                  WHEREAS, Borrower has requested that Lender commit to extend
Overline Revolving Credit Loans in an amount that exceeds the current maximum of
Overline Revolving Credit Loans by $15,000,000 (the "Incremental Loan Amount");
and

                  WHEREAS, the parties have agreed, subject to and upon the
terms and conditions set forth herein, to amend the Credit Agreement as set
forth herein in order to provide for such additional Revolving Credit Loans;

                  NOW, THEREFORE, for good and valuable consideration the
receipt and sufficiency of which is hereby acknowledged, the parties hereto
hereby agree as follows:

                  1. Definitions. Capitalized terms used herein and not
otherwise defined shall have the respective meanings ascribed to such terms in
the Credit Agreement, as amended hereby.

                  2. Consent. In reliance upon the representations and
warranties of the Borrower set forth in Section 5 below, subject to the
satisfaction of the conditions set forth in Section 6 below and subject to
Congress Financial Corporation ("Congress") entering into an intercreditor
agreement with the Lender within 30 days of the execution of this Amendment,
such intercreditor agreement to be in form and substance reasonably acceptable
to Lender, the Lender hereby consents to the execution and delivery of that
certain Fifth Amendment to the Loan and Security Agreement, dated as of May 20,
2002, as amended, among Congress, Borrower and the lenders party thereto (the
"Congress
                                       1

<PAGE>

Loan Agreement"), including the creation of the junior subordinated liens as
provided for in Section 1.97 of the Congress Loan Agreement.

                  3. Amendments to Credit Agreement. The Credit Agreement is,
effective as of the Sixth Amendment Effective Date, hereby amended as follows:

         (i)      Section 1.2(c) is hereby amended and restated in its entirety
as follows:

         "(c) The Lender agrees upon the terms and subject to the conditions
         herein set forth, to make available to Borrower, commencing on the
         Sixth Amendment Effective Date and ending on the Overline Credit
         Termination Date, Revolving Credit Loans (each an "Overline Revolving
         Credit Loan" and collectively, the "Overline Revolving Credit Loans")
         in an aggregate amount not to exceed $40,000,000. Subject to the
         foregoing and within the foregoing limits, Borrower may borrow, repay
         (and subject to the provisions of Sections 1.8 and 1.9 of the Credit
         Agreement, prepay) and reborrow Overline Revolving Credit Loans from
         time to time prior to the Overline Credit Termination Date, subject to
         the terms, provisions and limitations set forth herein. The Overline
         Revolving Credit Loans shall be made without regard to whether, after
         giving effect thereto, the aggregate principal amount of the Revolving
         Credit Loans outstanding at such time exceeds the Revolving Credit
         Commitment; provided, however, that the Incremental Loan Amount shall
         only be available in the 9th and 10th Accounting Periods and shall not
         exceed $1,000,000 at the end of the 9th Accounting Period and
         $6,000,000 at the end of the 10th Accounting Period, unless otherwise
         consented to by the Lender. Notwithstanding anything in this Agreement
         to the contrary (including, without limitation, the provisions of
         Section 1.4(c)), upon the occurrence of the Overline Credit Termination
         Date, all Overline Revolving Credit Loans outstanding at such time
         shall immediately become due and payable and Borrower shall permanently
         repay all such Overline Revolving Credit Loans as of such date,
         together with all accrued and unpaid interest due on such Loans, and
         the commitment of Lender to provide Overline Revolving Credit Loans
         pursuant to this Section 1.2(c) shall permanently terminate. All
         Overline Revolving Credit Loans shall constitute Revolving Credit Loans
         as such term is used in this Credit Agreement, and the Overline
         Revolving Credit Loans and all amounts due in connection therewith
         (including, without limitation, interest thereon) shall constitute
         Obligations under this Credit Agreement and shall be secured by the
         Collateral and the Non-Realty Collateral to the same extent as all
         other Obligations hereunder.";

         (ii)     Section 1.14 is hereby amended and restated in its entirety as
follows:

         The Loans shall be used to finance Borrower's obligations under the
         Plan of Reorganization, to pay Fees and other expenses incurred in
         connection with this Credit Agreement and for general corporate
         purposes in

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         accordance with the provisions of this Credit Agreement; provided, that
         the Overline Revolving Credit Loans may only be used to fund
         expenditures in accordance with the Financing Projections and,
         notwithstanding any other provision of this Agreement, Lender shall
         have no obligation to make Overline Revolving Credit Loans other than
         in accordance with the Financing Projections.

                  4. Further Assurances. In consideration for the Overline
Revolving Credit Loans and the other consideration provided for in this
Amendment, as security for the due and punctual payment of the Obligations
(including the Overline Revolving Credit Loans provided for in this Amendment
and including interest accruing on and after the filing of any petition in
bankruptcy or of reorganization of Borrower, whether or not post filing interest
is allowed in such proceeding):

         (i) Borrower hereby agrees to grant, mortgage, pledge, assign,
transfer, set over, convey and deliver to Lender, promptly upon the request of
Lender, a security interest in and lien upon all right, title and interest of
the Borrower in any all real property, owned or leased, in which Borrower may at
any time hereafter acquire or have an interest; and

         (ii) Borrower agrees that at any time and from time to time, at
Borrower's expense, Borrower will promptly execute and deliver all further
instruments and documents, and take all further action that Lender may
reasonably request, in order to perfect and protect the security interests
granted in respect of the Obligations or to enable Lender to exercise and
enforce its rights, powers and remedies with respect to the Collateral, the
Inventory Collateral, the Supplemental Collateral and any other collateral that
may secure the Obligations in the future.

                  5. Representations and Warranties. Borrower represents and
warrants to, and agrees with, Lender that:

         (i) Borrower has the corporate power and authority to (x) execute,
deliver and perform, as applicable, its obligations under this Amendment and any
other documents contemplated hereby or thereby to which it is or will be a party
and (y) grant to Lender a lien and security interest in the Supplemental
Collateral;

         (ii) the execution, delivery and performance of this Amendment (a) have
been duly authorized by all necessary corporate action on the part of Borrower,
(b) will not constitute a violation of any provision of any Applicable Law or
any order of any Governmental Authority applicable to Borrower or any of its
properties or assets, (c) will not violate any provision of the Certificate of
Incorporation, By-Laws, or any other organizational document of, or other
similar instrument to which Borrower is a party or by which Borrower or any of
its properties or assets are bound or to which Borrower is subject, (d) subject
to amendment or waiver of the Working Capital Facility, will not be in conflict
with, result in a breach of, or constitute (with due notice or lapse of time or
both) a default under, or create any right to terminate, any indenture,
agreement, bond, note, mortgage, deed of trust, or other instrument to which
Borrower is a party or by

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<PAGE>
which Borrower or any of its properties or assets are bound or to which Borrower
is subject and (e) will not result in the creation or imposition of (or the
obligation to create or impose) any Lien, charge or encumbrance of any nature
whatsoever upon any of the properties or assets of Borrower other than pursuant
to the Credit Agreement (as amended) or the other Fundamental Documents (as
amended);

         (iii) upon its execution and delivery by Borrower, this Amendment and
each Fundamental Document amended pursuant hereto shall constitute or continue
to constitute the legal, valid and binding obligation of Borrower, enforceable
against Borrower in accordance with its terms, except as such enforceability may
be limited by applicable bankruptcy, insolvency and similar laws affecting
creditors' rights generally and to general principles of equity, irrespective of
whether such enforceability is considered in a proceeding at law or in equity;

         (iv) as of the Sixth Amendment Effective Date, there are no outstanding
Defaults or Events of Default under the Credit Agreement;

         (v) Borrower is not in violation of any Applicable Law (including,
without limitation, any Environmental Law) or any restrictions of record or
agreements affecting the Collateral, the Inventory Collateral or the
Supplemental Collateral, except for violations which in the aggregate could not
reasonably be expected to have a Material Adverse Effect;

         (vi) The Overline Revolving Credit Loans and all obligations related
thereto constitute Obligations under the Credit Agreement and the other
Fundamental Documents, including, without limitation, the Security Documents;
and

         (vii) All representations and warranties set forth in the Credit
Agreement and the other Fundamental Documents, including as set forth in Article
2 of the Credit Agreement, are true and correct in all material respects on and
as of the Sixth Amendment Effective Date with the same effect as if made on and
as of such date, except to the extent such representations and warranties
expressly relate to an earlier date.

                  6. Conditions to Effectiveness. This Amendment shall become
effective on the date (the "Sixth Amendment Effective Date") upon which Lender
notifies Borrower that it is satisfied that each of the following conditions
have been met:

                  (i) Lender shall have received an executed counterpart of this
         Amendment bearing the signature of Borrower;

                  (ii) Borrower shall have delivered to Lender the Financing
         Projections and Lender shall have approved the same;

                  (iii) Borrower shall have delivered to Lender such other
         documents and information as Lender may reasonably request, including,
         without limitation, Security Documents relating to any collateral;

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<PAGE>

                  (iv) Lender's counsel shall be satisfied that either (a) the
         execution of this Amendment and incurrence of by Borrower of the
         Overline Revolving Credit Loans and other Obligations hereunder in no
         way constitutes an event of default or an event which with the giving
         of notice or the passage of time, or both, would constitute an event of
         default under the Working Capital Facility or any other agreement,
         instrument or document executed in connection with the Working Capital
         Facility, or (b) Congress shall have waived any such event;

                  (v) Lender shall have received the written opinion of a)
         Honigman Miller Schwartz and Cohn, LLP, counsel to Borrower, dated the
         Sixth Amendment Effective Date and addressed to Lender with respect to
         such matters relating to this Amendment as may be requested by Lender
         and its counsel, which opinion shall be in form and substance
         satisfactory to Lender and its counsel, and b) Borrower's in-house
         counsel, dated the Sixth Amendment Effective Date and addressed to
         Lender with respect to such matters relating to this Amendment, the
         Credit Agreement and the Fundamental Documents as may be requested by
         Lender and its counsel, which opinion shall be in form and substance
         satisfactory to Lender and its counsel;

                  (vi) The Lender shall have received reimbursement or other
         payment of all reasonable legal fees and expenses of Lender (including,
         without limitation, the fees and disbursements of Wachtell, Lipton,
         Rosen & Katz), incurred in connection with the negotiation,
         preparation, execution and delivery of this Amendment and all other
         documents to be delivered in connection herewith, it being understood
         and agreed that the obligations of Borrower set forth in Section 7.4 of
         the Credit Agreement shall extend to the negotiation, preparation,
         execution and delivery of this Amendment and all other documents to be
         delivered herewith;

                  (vii) The representations and warranties set forth herein and
         in Article 2 of the Credit Agreement and in any other Fundamental
         Documents then in existence shall be true and correct in all material
         respects, and no Default or Event of Default shall have occurred and be
         continuing;

                  (viii) Lender shall have received a closing certificate signed
         by an Authorized Officer of Borrower, substantially in the form of
         Exhibit B hereto; and

                  (ix) Borrower shall have executed and delivered to Lender's
         counsel one or more amendments to the Mortgages as requested by Lender,
         which amendments shall be in form and substance consistent with the
         terms of this Amendment and satisfactory to Lender, and such other
         documents, agreements and instruments as may be required by Lender.

                  7. Commitment Fee. Borrower hereby agrees that, in
consideration of this Amendment, it shall pay to the Lender a commitment fee
equal to 2.5% of the Incremental Loan Amount (the "Commitment Fee"); provided,
that the Commitment Fee shall be paid as follows: upon the occurrence of the
Sixth Amendment Effective Date, an amount equal to the Commitment Fee shall be
deemed to have been advanced to the

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Borrower under the Credit Agreement, shall be added to the outstanding principal
Obligations in respect of Revolving Credit Loans under the Credit Agreement and
shall accrue interest (and otherwise be subject to the Credit Agreement) as if
such amount were actually advanced to Borrower as a Revolving Credit Loan. The
Commitment Fee shall be non-refundable and shall be fully earned upon the Sixth
Amendment Effective Date.

                  8. Limitations. This Amendment shall be limited precisely as
written and shall not be deemed (a) to be a consent granted pursuant to, or a
waiver or modification of any other term or condition of the Credit Agreement or
any of the instruments or agreements referred to therein or (b) to prejudice any
right or rights which Lender may now have or have in the future under or in
connection with the Credit Agreement or any of the instruments or agreements
referred to therein. Whenever the Credit Agreement is referred to in the Credit
Agreement or any of the instruments, agreements or other documents or papers
executed or delivered in connection therewith, such reference shall be deemed to
mean the Credit Agreement as modified by this Amendment.

                  9. Counterparts. This Amendment may be executed in any number
of counterparts and by the different parties hereto in separate counterparts,
each of which when so executed and delivered shall be deemed to be an original
and all of which taken together shall constitute but one and the same
instrument. A facsimile signature shall serve as the functional equivalent of a
manual executed signature for all purposes.

                  10. Governing Law. This Amendment shall be governed by, and
construed in accordance with, the laws of the State of New York, without regard
to the conflicts of law principles thereof.

                            [SIGNATURE PAGE FOLLOWS]

                                       6
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this Sixth
Amendment to Credit and Security Agreement to be duly executed as of the day and
the year first written.

                                            BORROWER:

                                            FRANK'S NURSERY & CRAFTS, INC.

                                            By: /s/ Michael D. McBride
                                                ----------------------------
                                            Michael D. McBride
                                            Vice President Legal and Secretary

                                            LENDER:

                                            KIMCO CAPITAL CORP.

                                            By: /s/ Ray Edwards
                                                ----------------------------
                                            Ray Edwards
                                            Vice President of Retailer Service

                                       7
<PAGE>

                SIXTH AMENDMENT TO CREDIT AND SECURITY AGREEMENT

                                    EXHIBIT B

                                   CERTIFICATE

      The undersigned, an executive officer of Frank's Nursery & Crafts, Inc., a
Delaware corporation (the "Borrower"), hereby certifies, in such officer's
representative capacity on behalf of Borrower (and not individually), that:

      1.    This Certificate is being delivered to Kimco Capital Corp.
            ("Lender"), pursuant to Section 6(viii) of the Sixth Amendment to
            Credit and Security Agreement, dated as of June 30, 2004, between
            Borrower and Lender (the "Sixth Amendment").

      2.    The representations and warranties of the Borrower contained in
            Section 5 of the Sixth Amendment that are qualified as to
            materiality or material adverse effect are true and correct in all
            respects, and the representations and warranties of the Borrower
            contained in Section 5 of the Sixth Amendment that are not so
            qualified are true and correct in all material respects, in each
            case as of the date hereof, other than such representations and
            warranties that are made as of an earlier date, which were true and
            correct as of such earlier date. The covenants and agreements
            contained in the Sixth Amendment to be complied with by the Borrower
            on or prior to the date hereof have been complied with in all
            material respects.

      Each capitalized term used but not defined herein has the meaning assigned
to it in the Sixth Amendment.

      IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
June 30, 2004.

                                             FRANK'S NURSERY & Crafts, Inc.

                                               By: /s/ Michael McBride
                                                   -------------------
                                                   Michael McBride
                                                   Vice President Legal
                                                   and Secretary<PAGE>

                                                                    EXHIBIT 10.2

                               AMENDMENT NO. 5 TO
                           LOAN AND SECURITY AGREEMENT

            This Amendment No. 5 ("Amendment No. 5") is dated as of the 29th day
of June, 2004 and is by and among Congress Financial Corporation (Central), as
Agent (the "Agent") for the lenders from time to time party to the Loan
Agreement (as defined below) (the "Lenders") and as a Lender and Frank's Nursery
& Crafts, Inc. ("Borrower").

                              W I T N E S S E T H:

            WHEREAS, Agent, Lenders and Borrower are parties to that certain
Loan and Security Agreement, dated as of May 20, 2002, as amended (the "Loan
Agreement"; all capitalized terms used herein, unless otherwise defined herein,
shall have the meanings ascribed to them in the Loan Agreement), pursuant to
which Lenders agreed to provide certain loans and other financial accommodations
to Borrower;

            WHEREAS, Borrower and Kimco Capital Corp. ("Kimco") are parties to
that certain Credit and Security Agreement, dated as of May 20, 2002, as amended
(the "Kimco Credit Agreement");

            WHEREAS, Borrower, Agent and Lenders have also agreed to amend the
Loan Agreement in certain respects;

            WHEREAS, in consideration for Agent and Lenders agreeing to the
foregoing amendments, Borrower has agreed to grant liens to Agent, on behalf of
the Lenders, on certain parcels of real property owned by Borrower on which
Borrower has previously granted liens to Kimco pursuant to the Kimco Credit
Agreement;

            NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto hereby agree as follows:

            1. Consent. In reliance upon the representations and warranties of
the Borrower set forth in Section 5 below, and subject to the satisfaction of
the conditions set forth in Section 6 below, Agent and Lenders hereby (i)
consent to the execution and delivery of that certain Sixth Amendment to Kimco
Credit Agreement dated June 29, 2004, in the form of Exhibit A hereto, and (ii)
agree that compliance with Section 9.18(a) of the Loan Agreement with respect to
the period ending on the last day of the fourth Accounting Period of the fiscal
year of Borrower ending 2005 shall not be measured for any purpose.

            2. Amendments to Loan Agreement. The Loan Agreement is hereby
amended as follows:

<PAGE>

            (a) Section 1.67 of the Loan Agreement is amended and restated in
its entirety as follows:

            1.67. "Kimco Documents" shall mean the Credit and Security Agreement
      dated as of May 20, 2002, as amended, by and between Borrower and Kimco
      (the "Kimco Credit Agreement"), and the Fundamental Documents (as such
      term is defined in the Kimco Credit Agreement).

            (b) Section 1.97 of the Loan Agreement is amended and restated in
its entirety as follows:

            1.97. "Real Estate Reserve" shall mean an amount equal to $0;
      provided, that the "Real Estate Reserve" shall mean an amount equal to
      $4,000,000 if (i) Kimco fails to provide Overline Revolving Credit Loans
      (as defined in the Kimco Credit Agreement) to Borrower in an amount equal
      to $40,000,000 pursuant to the Sixth Amendment to Kimco Credit Agreement
      dated June 29, 2004 or (ii) on or before July 31, 2004 (A) Borrower fails
      to have executed and delivered to Agent mortgages and deeds of trust, in
      form and substance satisfactory to the Agent, to grant to Agent, on behalf
      of the Lenders, a lien on each of the three parcels of real property owned
      by Borrower and set forth on Schedule 5.1(A) hereto and (B) Agent and
      Kimco fail to enter into an intercreditor and marshalling agreement
      satisfactory to Agent pursuant to which Kimco agrees to a satisfactory
      marshalling arrangement with respect to the real properties set forth on
      Schedule 5.1(A) and Agent agrees that its liens and security interests on
      such real properties are junior and subordinate to Kimco's liens and
      security interests on such properties in the same manner that Kimco's
      liens and security interests on Borrower's current assets are junior and
      subordinate to Agent's liens and security interests.

            (c) Section 2.2(d) of the Loan Agreement is amended by amending and
restating clause (iii)(A) contained therein as follows:

            (A) if the proposed Letter of Credit Accommodation is for the
      purpose of purchasing Eligible Inventory and the documents of title with
      respect thereto are consigned to the issuer, the sum of (1) the percentage
      equal to one hundred (100%) percent minus the then applicable percentage
      with respect to Eligible Inventory set forth in the definition of the term
      Borrowing Base multiplied by the Cost of such Eligible Inventory (provided
      that with respect to Current Christmas Decoration Inventory, at any time
      in which the Applicable Current Christmas Advance Rate is zero percent
      (0%), the percentage under this clause 2.2(d)(iii)(A)(1) shall be the
      percentage equal to one hundred (100%) percent minus the product of
      eighty-five (85%) percent multiplied by the Net Recovery Rate for such
      Current Christmas Decoration Inventory), plus (2) freight, taxes, duty and
      other amounts which Agent estimates must be paid in connection with such
      Inventory upon arrival and for delivery to one of

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<PAGE>

      Borrower's locations for Eligible Inventory within the United States of
      America; and

            (d) Section 5.1 of the Loan Agreement is amended by amending and
restating the last sentence thereof in its entirety as follows:

            Notwithstanding the foregoing, the Collateral shall not include (i)
      the Kimco Collateral or (ii) the Equipment and fixtures located on the
      real property described on Schedule 5.1, except that the Collateral shall
      include the real property set forth on Schedule 5.1(A) hereto and the
      Equipment and fixtures located on such real property.

            (e) Section 9.18(a) of the Loan Agreement is amended and restated in
its entirety as follows:

            (a) For each period below, Borrower shall maintain EBITDA of at
      least the amount set forth opposite such period:

<TABLE>
<CAPTION>
                       Period                                    Amount
                       ------                                    ------
<S>                                                          <C>
The period of 7 Accounting Periods ending on the
last day of the seventh Accounting Period of the
fiscal year of Borrower ending in 2005                        $ 5,362,000

The period of 10 Accounting Periods ending on the
last day of the tenth Accounting Period of the
fiscal year of Borrower ending in 2005                       ($ 9,653,000)

The period of 13 Accounting Periods ending on the
last day of the fiscal year of Borrower ending in
2005                                                         ($14,996,000)

The period of 13 Accounting Periods ending on the
last day of the fourth Accounting Period of the
fiscal year of Borrower ending in 2006                       ($ 8,538,000)
</TABLE>

            (f) A new Schedule 5.1(A) shall be added to the Loan Agreement in
the form set forth as Schedule 5.1(A) attached hereto.

            3. Other Agreements. Until such time as the Obligations have been
paid in full, Borrower hereby agrees to retain the consulting services of Abacus
Advisors or another advisor reasonably acceptable to the Required Lenders.
Borrower hereby agrees that the failure by Borrower to satisfy the foregoing
agreement shall constitute an Event of Default.

                                      -3-
<PAGE>

            4. References. Agent, Lenders and Borrower hereby agree that all
references to the Loan Agreement which are contained in any of the other
Financing Agreements shall refer to the Loan Agreement as amended by this
Amendment No. 5, as such may be amended and supplemented from time to time
hereafter.

            5. Representations and Warranties. To induce Agent and Lenders to
enter into this Amendment No. 5, Borrower hereby represents and warrants to
Agent and Lenders that:

            (a) The execution, delivery and performance by Borrower of this
Amendment No. 5 and each of the other agreements, instruments and documents
contemplated hereby are within its corporate power, have been duly authorized by
all necessary corporate action, have received all necessary governmental
approval (if any shall be required), and do not and will not contravene or
conflict with any provision of law applicable to Borrower, the articles of
incorporation and by-laws of Borrower, any order, judgment or decree of any
court or governmental agency, or any agreement, instrument or document binding
upon Borrower or any of its property;

            (b) Each of the Loan Agreement and the other Financing Agreements,
as amended by this Amendment No. 5, are the legal, valid and binding obligation
of Borrower enforceable against Borrower in accordance with its terms, except as
the enforcement thereof may be subject to (i) the effect of any applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditor's rights generally, and (ii) general principles of equity;

            (c) The representations and warranties contained in the Loan
Agreement and the other Financing Agreements are true and accurate as of the
date hereof with the same force and effect as if such had been made on and as of
the date hereof; and

            (d) Borrower has performed all of its obligations under the Loan
Agreement and the Financing Agreements to be performed by it on or before the
date hereof and as of the date hereof, Borrower is in compliance with all
applicable terms and provisions of the Loan Agreement and each of the Financing
Agreements to be observed and performed by it and no event of default or other
event which upon notice or lapse of time or both would constitute an event of
default has occurred (other than the matters waived in Section 1 above).

            6. Conditions to Effectiveness. This Amendment No. 5 shall be
effective upon (i) the delivery by Borrower to Agent of a fully executed copy of
this Amendment No. 5, (ii) the consent of Kimco to the liens in favor of Agent
on the real property listed on Schedule 5.1(A) of the Loan Agreement, and (iii)
receipt by Agent of an amendment fee in the amount of $125,000.

            7. Counterparts. This Amendment No. 5 may be executed in any number
of counterparts and by the different parties on separate counterparts, and each
such

                                      -4-
<PAGE>

counterpart shall be deemed to be an original, but all such counterparts shall
together constitute but one and the same Amendment No. 5.

            8. Continued Effectiveness. Except as specifically set forth herein,
the Loan Agreement and each of the Financing Agreements shall continue in full
force and effect according to its terms.

            9. Costs and Expenses; Amendment Fee. Borrower hereby agrees that
all expenses incurred by Agent and Lenders in connection with the preparation,
negotiation and closing of the transactions contemplated hereby, including
without limitation reasonable attorneys' fees and expenses, shall be part of the
Obligations. Borrower agrees to pay to Agent, for the benefit of Lenders, an
amendment fee in the amount of $125,000 on the date hereof.

            10. Release.

            (a) In consideration of the agreements of Agent and Lenders
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Borrower, on behalf of itself and
its successors, assigns, and other legal representatives, hereby absolutely,
unconditionally and irrevocably releases, remises and forever discharges Agent
and Lenders, and their successors and assigns, and their present and former
shareholders, affiliates, subsidiaries, divisions, predecessors, directors,
officers, attorneys, employees, agents and other representatives (Agent, each
Lender and all such other Persons being hereinafter referred to collectively as
the "Releasees" and individually as a "Releasee"), of and from all demands,
actions, causes of action, suits, covenants, contracts, controversies,
agreements, promises, sums of money, accounts, bills, reckonings, damages and
any and all other claims, counterclaims, defenses, rights of set-off, demands
and liabilities whatsoever (individually, a "Claim" and collectively, "Claims")
of every name and nature, known or unknown, suspected or unsuspected, both at
law and in equity, which Borrower or any of its successors, assigns, or other
legal representatives may now or hereafter own, hold, have or claim to have
against the Releasees or any of them for, upon, or by reason of any
circumstance, action, cause or thing whatsoever which arises at any time on or
prior to the day and date of this Amendment No. 5, including, without
limitation, for or on account of, or in relation to, or in any way in connection
with any of the Loan Agreement, or any of the other Financing Agreements or
transactions thereunder or related thereto.

            (b) Borrower understands, acknowledges and agrees that the release
set forth above may be pleaded as a full and complete defense and may be used as
a basis for an injunction against any action, suit or other proceeding which may
be instituted, prosecuted or attempted in breach of the provisions of such
release.

            (c) Borrower agrees that no fact, event, circumstance, evidence or
transaction which could now be asserted or which may hereafter be discovered
shall affect in any manner the final, absolute and unconditional nature of the
release set forth above.

                            [Signature page follows]

                                      -5-
<PAGE>

            IN WITNESS WHEREOF, this Amendment No. 5 has been executed as of the
day and year first written above.

                                       FRANK'S NURSERY & CRAFTS, INC., as
                                       Borrower

                                       By: /s/ Michael McBride
                                           -------------------
                                           Michael McBride
                                           Vice President

                                       CONGRESS FINANCIAL CORPORATION
                                       (CENTRAL), as Agent and Lender

                                       By: /s/ Steve Linderman
                                           -------------------
                                           Steve Linderman
                                           Senior Vice President
<PAGE>

                                 SCHEDULE 5.1(A)

<TABLE>
<CAPTION>
                                                                                       ZIP
STORE #         STORE ADDRESS                        CITY                   STATE      CODE    COUNTY
<S>         <C>                                    <C>                      <C>        <C>     <C>
   88       720 N. Green Bay Rd.,                  Waukegan                   IL       60087    Lake
   90       2999 E. Lincoln Hwy.                   Merrillville               IN       46410    Lake
  297       2051 N. Rte. 83                        Round Lake Beach           IL       60046    Lake
</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}]]