**Exhibit 10.1**

 

**STOCK OPTION AGREEMENT**

 

Dear Name:

 

Pursuant to the 1995 Stock Incentive Plan for Key Employees, (the “1995 Plan) of Childtime Learning Centers, Inc. (the “Corporation”), the Corporation hereby grants you an option (the “Option”) to purchase ____ shares of the Common Stock of the Corporation (collectively, the “Shares”) at $____ per share, upon the terms and conditions contained in this Agreement and in the 1995 Plan, a copy of which is attached hereto and made a part hereof. The date of this grant was ______ and the share price of $____ is equal to the closing price of the Company’s common stock on NASDAQ on this date.

 
| 1. | The Option is intended to be a Non-qualified Option, as defined in Paragraph 10 of the 1995 plan. |
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| 2. | The Option may not be transferred by you other than by will or by the laws of descent and distribution and, during your lifetime, the Option is exercisable only by you. |
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| 3. | Subject to the other terms contained in this Agreement and in the 1995 Plan, you may exercised the Option in accordance with the following schedule: |
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| a. | Prior to the first anniversary date of this Agreement, you may not purchase any of the Shares. |
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| b. | Beginning on the first anniversary date of this Agreement, you may purchase up to 20% of the Shares. |
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| c. | Beginning on the second anniversary date of this Agreement, you may purchase up to 40% of the Shares. |
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| d. | Beginning on the third anniversary date of this Agreement, you may purchase up to 60% of the Shares. |
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| e. | Beginning on the fourth anniversary date of this Agreement, you may purchase up to 80% of the Shares. |
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| f. | Beginning on the fifth anniversary date of this Agreement, you may purchase up to 100% of the Shares. |
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| 4. | Subject to earlier termination of the Option pursuant to Paragraph 16 of the Plan, the Option will expire (to the extent not previously exercised) on the sixth anniversary of the date of this Agreement. |
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| 5. | Notwithstanding the foregoing, the Option will become immediately exercisable with respect to all the Shares upon occurrence of a “Change in Control” (as defined below). For purposes of this Agreement, a “Change in Control” of the Corporation will occur on the date that (i) any “person” (as that term is used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934), other than Childcare Associates or KD Partners II and their affiliates (collectively, “KD Partners”) and/or Jacobson Partners and its affiliates (collectively, “Jacobson Partners”), (A) acquires beneficial ownership, directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities and (B)exercises that voting power to replace 50% of the directors who were serving on the Board of Directors of the Company prior to such acquisition or (ii) any person other than KD Partners and/or Jacobson Partners acquires all or substantially all of the assets of the Company (whether by purchase, merger or consolidation). |
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