Document:

<PAGE>

                                                                    EXHIBIT 10.1

                        Childtime Learning Centers, Inc.
                       38345 West Ten Mile Road, Suite 100
                        Farmington Hills, Michigan 48335

                                  July 19, 2002

JP Acquisition Fund II, L.P.
JP Acquisition Fund III, L.P.
c/o Jacobson Partners
595 Madison Avenue, Suite 100
New York, New York 10022-1907

         RE:  GRANT OF OPTIONS

Gentlemen:

         In consideration of the agreement of each of you and certain of your
co-investors to arrange for standby purchasers in connection with the $14
million rights offering (the "Rights Offering") contemplated by Childtime
Learning Centers, Inc. (the "Company"), as described on the attached Exhibit A,
pursuant to the terms of that certain Standby Stock Purchase Agreement described
on the attached Exhibit A to be entered into with the Company (the "Standby
Commitment"), the Company agrees as follows:

         1. Subject to the approval of the Company's shareholders and paragraph
3 below, the Company hereby grants to you and your designated co-investors
(collectively, the "Optionees") options (the "Options") to acquire, in the
aggregate, 400,000 shares of the Company's common stock, no par value (the
"Common Stock"), at an exercise price of $5.00 per share. The Options may be
exercised, in whole or in part, at any time, and from time to time, after the
later of (a) the date the Options have been approved by the Company's
shareholders and (b) the consummation of the Rights Offering, until July 19,
2006.

         2. The registration rights granted pursuant to the Consulting Agreement
to shares of Common Stock acquired by Jacobson Partners (and its affiliates or
designees) will cover any such shares (a) issuable upon exercise of the Options,
and (b) purchased by the Optionees pursuant to, or as a standby purchaser in
connection with, the Rights Offering.

         3. Notwithstanding anything to the contrary in this letter, in the
event the Rights Offering does not take place or is not consummated in
accordance with its terms (which terms will be not less favorable to the Company
as those set forth on the attached Exhibit A) by July 19, 2003, the Options
granted under paragraph 1 above will not become effective, but will be
forfeited, and the Company will have no obligation hereunder.

         4. In the event the Company is required to pay federal withholding
taxes upon the exercise of any Option granted hereunder, the Company may, in the
sole discretion of the

<PAGE>

Compensation Committee of the Company's Board of Directors, (a) require the
exercising Optionee, as a condition to the issuance of the shares subject to the
exercised option, to submit to the Company the amount of the applicable
withholding tax or (b) retain a portion of the shares to be issued upon such
exercise having a market value, as of the exercise date, approximating the
amount of the applicable withholding tax.

         If the foregoing is acceptable, please so indicate by signing below.

                                         Very truly yours,

                                         CHILDTIME LEARNING CENTERS, INC.

                                         By:  /s/ Leonard C. Tylka
                                            ------------------------------------
                                              Leonard C. Tylka, Interim Chief
                                              Financial Officer

Agreed to and Accepted by:

JP Acquisition Fund II, L.P.                  JP Acquisition Fund III, L.P.
By: JPAF, Limited Partnership,                By: JPAF III, LLC,
    its general partner                           its general partner
    By: Jacobson Partners,                        By: Jacobson Partners,
        its general partner                           its sole member

                By: /s/ Benjamin R. Jacobson       By: /s/ Benjamin R. Jacobson
                   --------------------------          -------------------------

                                       2
<PAGE>

Memorandum

           TO:    Len Tylka
           FROM:  Ben Jacobson
           DATE:  7/19/2002
           RE:    Rights Offering Term Sheet

           ---------------------------------------------------------------------

The following represents the terms under which we prepare to underwrite a Rights
Offering:

           Transaction:             $14 million rights offering (75% in the form
                                    of equity and 25% in the form of
                                    subordinated debt) commenced shortly after
                                    completion of the Tutor Time deal, but in
                                    any event completed no later than July 19,
                                    2003.

Structure:                          Pro-rata offering to all Childtime
                                    shareholders.

           JP Back Stop:            JP Acquisition Fund II, L.P., JP Acquisition
                                    Fund III, L.P., and other investors
                                    (collectively "JP Funds") will underwrite
                                    100% of the offering.

           Price:                   $3.50 per share.

           JP Options:              JP Funds will be granted 400,000 options at
                                    a price of $5.00 per share that will have a
                                    July 19, 2006 expiration date. The options
                                    can be exercised at any time after the
                                    rights offering, however, in the event the
                                    rights offering does not take place prior to
                                    July 19, 2003, the options will be
                                    terminated.

           Ability to Terminate:    JP Funds will only be able to terminate its
                                    commitment to invest up to $14 million in
                                    the event of a Childtime bankruptcy filing.

           Childtime Election:      Childtime must make the election to
                                    undertake the rights offering based on the
                                    terms herein within 30 days of closing of
                                    the Tutor Time transaction.<PAGE>

                                                                    EXHIBIT 10.1

                       AMENDMENT NO. 2 TO CREDIT AGREEMENT
                       -----------------------------------

     AMENDMENT NO. 2, dated as of June 6, 2002 (this "Amendment"), to and under
                                                      ---------
the Credit Agreement, dated as of January 5, 2001, among Insight Midwest
Holdings, LLC, the Lenders party thereto, Bank of America, N.A. and TD
Securities (USA), Inc., as Co-Syndication Agents, Fleet National Bank, as
Documentation Agent, and The Bank of New York, as Administrative Agent (as
amended, supplemented, or otherwise modified, the "Credit Agreement"), as
                                                   ----------------
amended by Amendment No. 1 to Credit Agreement and Amendment No. 1 to Guarantee
Agreement, dated as of April 18, 2002.

                                    RECITALS
                                    --------

     A. Capitalized terms used herein that are defined in the Credit Agreement
shall have the same meanings as therein defined.

     B. The Borrower has requested that the Administrative Agent agree to amend
the Credit Agreement and the Guarantee Agreement as described below and the
Administrative Agent is willing to so agree subject to the terms and conditions
contained in this Amendment.

     Accordingly, in consideration of the Recitals and the covenants, conditions
and agreements hereinafter set forth, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
Borrower and the Administrative Agent hereby agree as follows:

     1. Section 1.1 of the Credit Agreement is hereby amended by adding the
following defined terms in the appropriate alphabetical order:

          "Amendment No. 2" means Amendment No. 2 to Credit Agreement and
           ---------------
     Amendment No. 2 to Guarantee Agreement, dated as of June 6, 2002.

     2. The defined term "Designated Holding Company Debt" contained in Section
                          -------------------------------
1.1 of the Credit Agreement is hereby amended by amending and restating the last
sentence thereof:

     All of the Indebtedness referred to in paragraph 4(b)(i) of Amendment No.
     2, and the Parent Loan, shall each constitute Designated Holding Company
     Debt.

     3. Subsection (h) of Section 7.8 of the Credit Agreement is hereby amended
and restated in its entirety as follows:

          (h) the Borrower may make one or more Restricted Payments (i) to the
     Parent in an aggregate amount not to exceed the outstanding principal
     balance of, and capitalized or accrued and unpaid interest from time to
     time on, the Parent Loan, provided that immediately before and after giving
                               --------
     effect to each such Restricted Payment, no Default shall be in existence or
     would result therefrom, and (ii) for any purpose, provided that immediately
                                                       --------
     before and after giving effect to each such Restricted Payment (a) no
     Default shall be in existence or would result therefrom, and (b) the
     Leverage Ratio shall and would be less than 3.25:1.00.

<PAGE>

     4. Paragraphs 1 through 3 above shall not be effective until such time, if
any, as each of the following shall have occurred, provided that each of the
                                                   --------
following shall have occurred on or before December 31, 2002:

          (a) the Administrative Agent (or its counsel) shall have received from
     the Issuing Bank, Required Lenders and each of the Loan Parties either (i)
     a counterpart of this Amendment signed on behalf of such Person or (ii)
     written evidence satisfactory to the Administrative Agent (which may
     include facsimile transmission of a signed signature page of this
     Amendment) that such Person has signed a counterpart of this Amendment,

          (b) the Administrative Agent shall have received a certificate signed
     by a Financial Officer of each of the Parent and the Borrower, (i)
     acknowledging the Parent's receipt on or after June 1, 2002 of cash
     proceeds, in an aggregate amount not less than $175,000,000 (less any
     related fees and expenses, the "Net Debt Proceeds")), arising from the
                                     -----------------
     issuance of unsecured Indebtedness by the Parent, and (ii) acknowledging
     the Borrower's receipt, simultaneously with or immediately following the
     Parent's receipt of such cash proceeds, of an additional capital
     contribution from the Parent, in cash, in an amount not less than the Net
     Debt Proceeds, and

          (c) the Administrative Agent shall have received all fees and
     expenses, if any, that the Loan Parties shall have agreed in writing to pay
     to the Administrative Agent in connection with this Amendment, together
     with all reasonable fees and disbursements of counsel to the Administrative
     Agent to extent invoiced.

     5. Each of the Loan Parties hereby (i) reaffirms and admits the validity
and enforceability of each Loan Document to which it is a party and its
obligations thereunder, and agrees and admits that it has no defense to or
offset against any such obligation, and (ii) represents and warrants that, as of
the date hereof, (a) it is in compliance with all of the terms, covenants and
conditions of each Loan Document to which it is a party, (b) there exists no
Default and (c) the representations and warranties made by it in the Loan
Documents are true and correct with the same effect as though such
representations and warranties had been made on the date hereof.

     6. This Amendment may be executed in counterparts (and by different parties
hereto on different counterparts), each of which shall constitute an original,
but all of which, when taken together, shall constitute but one contract.
Delivery of an executed counterpart of a signature page of this Amendment by
facsimile transmission shall be effective as delivery of a manually executed
counterpart of this Amendment.

     7. The Credit Agreement, the Guarantee Agreement and the other Loan
Documents shall in all other respects remain in full force and effect, and no
amendment, consent, waiver, or other modification herein in respect of any term
or condition of any Loan Document shall be

                                       2

<PAGE>

deemed to be an amendment, consent, waiver, or other modification in respect of
any other term or condition of any Loan Document.

     8. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK.

                            [SIGNATURE PAGES FOLLOW]

                                       3

<PAGE>

                         INSIGHT MIDWEST HOLDINGS, LLC
                      AMENDMENT NO. 2 TO CREDIT AGREEMENT

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

                            INSIGHT MIDWEST HOLDINGS, LLC
                            By: Insight Midwest L.P., its sole member
                            By: Insight Communications Company, L.P., its sole
                                  general partner
                            By: Insight Communications Company, Inc., its sole
                                  general partner

                            By:
                                -----------------------------------------------
                            Name:
                                  ---------------------------------------------
                            Title:
                                   --------------------------------------------

CONSENTED AND AGREED TO:

INSIGHT MIDWEST L.P.
By:  Insight Communications Company L.P., its
     sole general partner
By:  Insight Communications Company Inc., its
     sole general partner

By:
    --------------------------------------
Name:
      ------------------------------------
Title:
       -----------------------------------

<PAGE>

                         INSIGHT MIDWEST HOLDINGS, LLC
                      AMENDMENT NO. 2 TO CREDIT AGREEMENT

CONSENTED AND AGREED TO:

INSIGHT COMMUNICATIONS MIDWEST, LLC

By:  Insight Midwest Holdings, LLC, its sole member
By:  Insight Midwest L.P., its sole member
By:  Insight Communications Company, L.P., its sole general
     partner
By:  Insight Communications Company, Inc., its sole general
     partner

By:
    --------------------------------------
Name:
      ------------------------------------
Title:
       -----------------------------------

CONSENTED AND AGREED TO:

INSIGHT COMMUNICATIONS OF KENTUCKY, L.P.

By:  Insight Midwest Holdings, LLC, its general
     partner
By:  Insight Midwest, L.P., its sole member
By:  Insight Communications Company, L.P., its
     general partner
By:  Insight Communications Company, Inc., its
     general partner

By:
    --------------------------------------
Name:
      ------------------------------------
Title:
       -----------------------------------

<PAGE>

                         INSIGHT MIDWEST HOLDINGS, LLC
                      AMENDMENT NO. 2 TO CREDIT AGREEMENT

CONSENTED AND AGREED TO:

INSIGHT KENTUCKY PARTNERS I, L.P.

By:  Insight Communications of Kentucky, L.P.,
     its general partner
By:  Insight Midwest Holdings, LLC, its general
     partner
By:  Insight Midwest, L.P., its sole member
By:  Insight Communications Company, L.P., its
     general partner
By:  Insight Communications Company, Inc., its
     general partner

By:
    --------------------------------------
Name:
      ------------------------------------
Title:
       -----------------------------------

CONSENTED AND AGREED TO:

INSIGHT KENTUCKY PARTNERS II, L.P.

By:   Insight Kentucky Partners I, L.P., its general
      partner
By:   Insight Communications of Kentucky, L.P., its
      general partner
By:   Insight Midwest Holdings, LLC, its general
      partner
By:   Insight Midwest L.P., its sole member
By:   Insight Communications Company, L.P., its
      sole general partner
By:   Insight Communications Company, Inc., its
      sole general partner

By:
    --------------------------------------
Name:
      ------------------------------------
Title:
       -----------------------------------

<PAGE>

                         INSIGHT MIDWEST HOLDINGS, LLC
                      AMENDMENT NO. 2 TO CREDIT AGREEMENT

                                   THE BANK OF NEW YORK, individually,
                                   as Issuing Bank and as Administrative Agent

                                   By:
                                       -----------------------------------------
                                   Name:
                                         ---------------------------------------
                                   Title:
                                          --------------------------------------

<PAGE>

                         INSIGHT MIDWEST HOLDINGS, LLC
                      AMENDMENT NO. 2 TO CREDIT AGREEMENT

CONSENTED AND AGREED TO:

---------------------------------------

By:
    --------------------------------------
Name:
      ------------------------------------
Title:
       -----------------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}]]