Document:

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                                                                  EXHIBIT 10.10

                              BUSINESS CONFIDENTIAL

                           OXYGEN, NITROGEN, AND ARGON
                                SUPPLY AGREEMENT

                                     BETWEEN

                                  PRAXAIR, INC.

                                       AND

                               ROUGE STEEL COMPANY
                                  DEARBORN, MI

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                                TABLE OF CONTENTS

<Table>
<Caption>

                                                                                                                Page
<S>                                                                                                            <C>
PART I - DEFINITIONS..............................................................................................1
         ARTICLE 1 - DEFINITIONS..................................................................................1

PART II - OXYGEN SUPPLY...........................................................................................4
         ARTICLE 2 - QUANTITY, INSTALLATION, OPERATION AND MAINTENANCE............................................4
         ARTICLE 3 - GASEOUS OXYGEN RECEIVERS ....................................................................5
         ARTICLE 4 - OXYGEN DELIVERY..............................................................................5
         ARTICLE 5 - SELLER'S SHUTDOWN - OXYGEN SUPPLY SYSTEM.....................................................6

PART III - NITROGEN SUPPLY........................................................................................6
         ARTICLE 6 - QUANTITY, INSTALLATION, OPERATION AND MAINTENANCE............................................6
         ARTICLE 7 - NITROGEN DELIVERY............................................................................7
         ARTICLE 8 - SELLER'S SHUTDOWN - NITROGEN SUPPLY SYSTEM...................................................7

PART IV - ARGON SUPPLY............................................................................................7
         ARTICLE 9 - QUANTITY, INSTALLATION, OPERATION AND MAINTENANCE............................................7
         ARTICLE 10 - ARGON DELIVERY..............................................................................8

PART V - PRICING AND REPRICING....................................................................................9
         ARTICLE 11 - PRICING AND REPRICING.......................................................................9

PART VI - GENERAL TERMS AND CONDITIONS...........................................................................12
         ARTICLE 12 - OXYGEN AND NITROGEN METERS.................................................................12
         ARTICLE 13 - SPECIFICATIONS.............................................................................13
         ARTICLE 14 - PAYMENT....................................................................................14
         ARTICLE 15 - TAXES......................................................................................14
</Table>

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<Table>
<S>                   <C>                                                                                       <C>
         ARTICLE 16 - CONTINGENCIES..............................................................................15
         ARTICLE 17 - ASSIGNMENT.................................................................................16
         ARTICLE 18 - LIABILITY..................................................................................16
         ARTICLE 19 - DURATION OF AGREEMENT......................................................................17
         ARTICLE 20 - PRIOR AGREEMENT............................................................................17
         ARTICLE 21 - EARLY TERMINATION OF AGREEMENT.............................................................17
         ARTICLE 22 - PURCHASES BY BUYER FROM A THIRD PARTY......................................................17
         ARTICLE 23 - RESOLUTION OF DISPUTES.....................................................................18
         ARTICLE 24 - EASEMENTS AND RIGHTS OF WAY................................................................19
         ARTICLE 25 - BUYER'S AND SELLER'S AUTHORIZED REPRESENTATIVES............................................19
         ARTICLE 26 - FAIR LABOR STANDARDS ACT...................................................................19
         ARTICLE 27 - HEADINGS...................................................................................19
         ARTICLE 28 - SMOKING AND OPEN FLAMES....................................................................19
         ARTICLE 29 - NON-WAIVER.................................................................................19
         ARTICLE 30 - APPLICABLE LAW.............................................................................20
         ARTICLE 32 - ENTIRE AGREEMENT...........................................................................20

         EXHIBIT A - DRAWING
         EXHIBIT B - EXHIBIT B EQUIPMENT
         EXHIBIT C - DRAWING
         EXHIBIT D -EXAMPLES ILLUSTRATING THE INTENT OF THE PARTIES REGARDING SUPPLEMENTAL NITROGEN AND
         SUPPLEMENTAL OXYGEN
         EXHIBIT E - SAMPLE CALCULATION OF LOAD FACTOR

</Table>

<PAGE>

         THIS AGREEMENT made and entered into as of December 1, 2002, by and
between Praxair, Inc., a Delaware corporation with an office located at 39 Old
Ridgebury Road, Danbury, CT 06810-5113 (hereinafter referred to as "Seller") and
Rouge Steel Company, a Delaware corporation with an office located at 3001
Miller Road, Dearborn, MI 48121-1699 (hereinafter referred to as "Buyer");

                                  WITNESSETH:

         WHEREAS, Buyer requires substantial quantities of oxygen, nitrogen, and
argon for use at its plant at Dearborn, Michigan, and has requested Seller to
supply such quantities of oxygen, nitrogen and argon to such plant; and

         WHEREAS, Seller owns and operates facilities for the production of
oxygen, nitrogen and argon at Ecorse, Michigan from which Seller is willing to
supply oxygen, nitrogen and argon to Buyer;

         NOW THEREFORE, in consideration of the foregoing and the mutual
promises contained herein, Buyer and Seller agree as follows:

                              PART I - DEFINITIONS

ARTICLE 1 - DEFINITIONS

         As used in this Agreement:

         1.1 "Agreement Date" means December 1, 2002.

         1.2 "Argon Distributing System" means the system of trunk and service
pipelines owned and operated by Buyer for the transmission of vaporized Liquid
Argon from the Liquid Argon Storage System to the various argon use points
within Buyer's Plant.

         1.3 This Article intentionally left blank

         1.4 "Buyer's Argon Requirements" means Buyer's total present and future
requirements, in gaseous and liquid form, of argon, other than argon supplied in
cylinders, for use at Buyer's Plant; provided, however, in the event Buyer
should require argon for use at Buyer's Plant in connection with any new
technological process utilized at Buyer's Plant subsequent to the date of this
Agreement which requires investment, either by Buyer or another party, where as
a condition of using such new process Buyer is required to purchase its argon
requirements for use in such process from a supplier other than Seller, and a
similar process is not available from Seller at an equal or lower price and
substantially similar terms and conditions, any argon so required for use at
Buyer's Plant under such conditions shall not be deemed to be included in the
definition of "Buyer's Argon Requirements" for purposes of this Agreement.

         1.5 "Buyer's Nitrogen Requirements" means Buyer's total present and
future requirements, in gaseous and liquid form, of nitrogen, other than that
supplied in cylinders, for use at Buyer's Plant; provided, however, in the event
Buyer should require nitrogen for use at Buyer's Plant in connection with

<PAGE>

any new technological process utilized at Buyer's Plant subsequent to the date
of this Agreement which requires investment, either by Buyer or another party,
where as a condition of using such new process Buyer is required to purchase its
nitrogen requirements for use in such process from a supplier other than Seller,
and a similar process is not available from Seller at an equal or lower price
and substantially similar terms and conditions, any nitrogen so required for use
at Buyer's Plant under such conditions shall not be deemed to be included in the
definition of "Buyer's Nitrogen Requirements" for purposes of this Agreement;
and further provided, that notwithstanding anything contained in this Article
1.5, in no event shall Buyer be relieved of its obligation to pay for a minimum
of XXXXXXXX Cubic Feet of Gaseous Nitrogen each Month at the then current First
Block Gaseous Nitrogen Price even if no nitrogen is taken during any such Month
as provided in Article 11.3.

         1.6 "Buyer's Oxygen Requirements" means Buyer's total present and
future requirements, in gaseous and liquid form, of oxygen, other than that
supplied in cylinders, for use at Buyer's Plant; provided, however, in the event
Buyer should require oxygen for use at Buyer's Plant in connection with any new
technological process utilized at Buyer's Plant subsequent to the date of this
Agreement which requires investment, either by Buyer or another party, where as
a condition of using such new process Buyer is required to purchase its oxygen
requirements for use in such process from a supplier other than Seller, and a
similar process is not available from Seller at an equal or lower price and
substantially similar terms and conditions, any oxygen so required for use at
Buyer's Plant under such conditions shall not be deemed to be included in the
definition of "Buyer's Oxygen Requirements" for purposes of this Agreement; and
further provided, that notwithstanding anything contained in this Article 1.6,
in no event shall Buyer be relieved of its obligation to pay for a minimum of
XXXXXXXX Cubic Feet of Gaseous Oxygen each Month at the then current First Block
Gaseous Oxygen Price even if no oxygen is taken during any such Month as
provided in Article 11.2.

         1.7 "Buyer's Plant" means Buyer's plant at the location referred to in
the first WHEREAS clause above, and any additions thereto.

         1.8 "Contract Year" means a period of one (1) year commencing on the
Agreement Date or on any yearly anniversary of such date.

         1.9 "Cubic Foot" means that quantity of oxygen, nitrogen, or argon that
would occupy a volume of one cubic foot at 70 degrees Fahrenheit temperature and
14.696 pounds per square inch absolute pressure.

         1.10 "Gaseous Nitrogen" means nitrogen delivered (a) at a maximum
instantaneous demand rate not to exceed XXXXXXXX Cubic Feet per minute, or (b)
up to a quantity not to exceed XXXXXXXX Cubic Feet in any Month.

         1.11 "Gaseous Oxygen" means oxygen delivered (a) at a maximum
instantaneous demand rate not to exceed XXXXXXXX Cubic Feet per minute, or (b)
up to a quantity not to exceed XXXXXXXX Cubic Feet in any Month.

                                      -2-
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         1.12 "Gaseous Oxygen Receivers" means the storage tanks together with
the oxygen regulators and any associated piping and equipment located at Buyer's
Plant which Buyer has sold to Seller as provided in Article 3.1.

         1.13 "Liquid Argon" means all argon delivered to Buyer hereunder in
liquid form to the Liquid Argon Storage System.

         1.14 "Liquid Argon Delivery Point" means the point at which Liquid
Argon is delivered into the Liquid Argon Storage System.

         1.15 "Liquid Argon Storage System" means the storage tanks,
vaporization equipment, piping, controls, devices and instrumentation owned,
installed, operated and maintained by Seller at Buyer's Plant for the storage
and vaporization of Liquid Argon. The location of the Liquid Argon Storage
System is depicted in Exhibit C attached hereto and made a part hereof.

         1.16 "Meter and Receiver Site" means that plot of ground at Buyer's
Plant as depicted in Exhibit A attached hereto and made a part hereof which
Buyer has furnished to Seller for the term hereof for the purpose of installing,
maintaining and operating the oxygen and nitrogen meters installed by Seller as
provided in Article 12 and the Gaseous Oxygen Receivers sold by Buyer to Seller
as provided in Article 3.1.

         1.17 "Month" means that period of time beginning at twelve o'clock
midnight on the first day of any calendar month and extending to twelve o'clock
midnight on the first day of the following calendar month.

         1.18 "Nitrogen Delivery Point" means the flange where Seller's Nitrogen
Pipeline will be connected to the Nitrogen Distributing System at the existing
nitrogen meter station depicted in Exhibit A.

         1.19 "Nitrogen Distributing System" means the system of trunk and
service pipelines owned and operated by Buyer for the transmission of nitrogen
from the Nitrogen Delivery Point to the various nitrogen use points within
Buyer's Plant.

         1.20 "Nitrogen Supply System" means the facilities owned and operated
by Seller at the location referred to in the second WHEREAS clause above for the
supply, production, compression, storage and vaporization of nitrogen to be
delivered hereunder.

         1.21 "Oxygen Delivery Point" means the flange where Seller's Oxygen
Pipeline will be connected to the Oxygen Distributing System within the Meter
and Receiver Site depicted in Exhibit A.

         1.22 "Oxygen Distributing System" means the system of trunk and service
pipelines owned and operated by Buyer for the transmission of oxygen from the
Oxygen Delivery Point to the various oxygen use points within Buyer's Plant.

         1.23 "Oxygen Supply System" means the facilities owned and operated by
Seller at the location referred to in the second WHEREAS clause above for the
production, compression, storage and vaporization of oxygen to be delivered
hereunder.

         1.24 "Seller's Nitrogen Pipeline" means the pipeline owned and
maintained by Seller for the delivery of nitrogen from the Nitrogen Supply
System to the Nitrogen Delivery Point.

                                      -3-
<PAGE>

         1.25 "Seller's Oxygen Pipeline" means the pipeline owned and maintained
by Seller for the delivery of oxygen from the Oxygen Supply System to the Oxygen
Delivery Point.

         1.26 "Supplemental Nitrogen" means all nitrogen delivered hereunder
during any Month that is not Gaseous Nitrogen as determined by adding (i) the
quantity of nitrogen delivered during such Month at an instantaneous demand rate
in excess of XXXXXXXX Cubic Feet per minute, (ii) the quantity of nitrogen
delivered during such Month pursuant to Article 16 and (iii) the quantity of
nitrogen calculated by subtracting the sum of the quantities of (i) and (ii)
above from the quantity of nitrogen, if any, delivered during such Month that is
in excess of XXXXXXXX Cubic Feet; provided, however, in no event will the
difference so obtained be less than zero. Reference Exhibit D attached hereto
and made a part hereof for an example illustrating the intent of the parties
regarding the meaning of the term "Supplemental Nitrogen".

         1.27 "Supplemental Oxygen" means all oxygen delivered hereunder during
any Month that is not Gaseous Oxygen as determined by adding (i) the quantity of
oxygen delivered during such Month at an instantaneous demand rate in excess of
XXXXXXXX Cubic Feet per minute, (ii) the quantity of oxygen delivered during
such Month pursuant to Article 16 and (iii) the quantity of oxygen calculated by
subtracting the sum of the quantities of (i) and (ii) above from the quantity of
oxygen, if any, delivered during such Month that is in excess of XXXXXXXX Cubic
Feet; provided, however, in no event will the difference so obtained be less
than zero. Reference Exhibit D for an example illustrating the intent of the
parties regarding the meaning of the term "Supplemental Oxygen".

         1.28 "Quarter" means a calendar quarter.

                             PART II - OXYGEN SUPPLY

ARTICLE 2 - QUANTITY, INSTALLATION, OPERATION AND MAINTENANCE

         2.1 Seller will sell and deliver into the Oxygen Distributing System
and Buyer will purchase and receive from Seller on the terms and conditions
hereinafter set forth Buyer's Oxygen Requirements. Seller will deliver Gaseous
Oxygen to meet Buyer's Oxygen Requirements up to the maximum instantaneous
demand rate set forth in Article 1.11.

         2.2.This Article intentionally left blank.

         2.3 If, from time to time, Buyer requires to purchase oxygen at an
instantaneous demand rate in excess of the maximum instantaneous demand rate for
Gaseous Oxygen as set forth in Article 1.11, Seller will, during the term of
this Agreement, sell and deliver such oxygen as Supplemental Oxygen to the
extent that Seller, in its reasonable discretion, deems that it has such oxygen
available for Buyer and delivery may be made within the flow and pressure
limitations of Seller's Oxygen Pipeline and the metering equipment installed
pursuant to Article 12.

         2.4 Seller shall, at its sole expense, own, maintain and operate the
Oxygen Supply System, Seller's Oxygen Pipeline and the metering equipment and
communications system installed pursuant to

                                      -4-

<PAGE>

Article 12 during the term of this Agreement. All of the foregoing shall be and
remain the sole property of Seller and, within a period of one hundred eighty
(180) days following termination of this Agreement, Seller shall have the option
to remove any and all components thereof that may then be situated at Buyer's
Plant or leave same in place and pass title of any such components left in place
to Buyer. In removing any such components that may be situated at Buyer's Plant
as aforesaid, Seller shall not unreasonably interfere with the business or
operations of Buyer and to the extent Seller does so interfere with the business
or operations of Buyer, Seller shall reimburse Buyer for any damages sustained
by Buyer as a result thereof.

         2.5 Buyer shall, during the term of this Agreement, maintain the Oxygen
Distributing System and Seller, at no cost to Buyer, will maintain the
connection between Seller's Oxygen Pipeline and the Oxygen Distributing System.

ARTICLE 3 - GASEOUS OXYGEN RECEIVERS

         3.1 Buyer has sold to Seller and Seller has bought from Buyer all
right, title and interest in and to the equipment specified in Exhibit B
attached hereto and made a part hereof, including without limitation, the
Gaseous Oxygen Receivers as more particularly identified in Exhibit B. The
equipment specified in Exhibit B is sometimes hereinafter collectively referred
to as the "Exhibit B Equipment".

         3.2 This Article left intentionally blank

         3.3 The Exhibit B Equipment has been sold by Buyer to Seller "as is,
where is" free and clear of all liens, security interests and encumbrances of
any kind.

         3.4 During the term of this Agreement Seller shall, at its expense,
inspect, maintain, operate, repair and replace the Exhibit B Equipment;
provided, however, in the event any item of Exhibit B Equipment or any component
thereof specifically identified on Exhibit B as Exhibit B Equipment for which
Buyer will be required to bear the cost of repair or replacement, needs to be
repaired or replaced during the term hereof, and the parties agree that such
need exists, Seller shall, at Buyer's expense, cause such item of Exhibit B
Equipment or component thereof to be repaired or replaced and Buyer shall
reimburse Seller for any costs, including without limitation the cost of
material and labor, incurred by Seller in connection with such repair or
replacement within thirty (30) days following the date of Seller's invoice
therefor.

         3.5 This Article intentionally left blank.

         3.6 Effective as of the date this Agreement terminates, Seller shall
resell to Buyer and Buyer shall repurchase from Seller for ten (10) dollars all
of Seller's right, title and interest in and to the Exhibit B Equipment on the
same basis as Seller has purchased same from Buyer as provided in Article 3.3.

ARTICLE 4 - OXYGEN DELIVERY

         4.1 Oxygen will be delivered from the Oxygen Supply System at a
pressure of not less than 275 pounds per square inch gauge or more than 450
pounds per square inch gauge to a regulator which will deliver oxygen into the
Oxygen Distributing System at a pressure of not less 180 pounds per square inch

                                      -5-

<PAGE>

gauge or more than 220 pounds per square inch gauge. Seller's pressure relief
valves will actuate on Seller's Oxygen Pipeline at 475 pounds per square inch
gauge. Buyer shall be responsible for installing and maintaining appropriate
relief devices on the Oxygen Distributing System.

         4.2 Title to and risk of loss of oxygen delivered through Seller's
Oxygen Pipeline shall pass to Buyer at the Oxygen Delivery Point.

ARTICLE 5 - SELLER'S SHUTDOWN - OXYGEN SUPPLY SYSTEM

         5.1 Seller will have the right from time to time to shut down the
Oxygen Supply System for such period of time as may be necessary for Seller to
make ordinary repairs for maintenance and/or thawing necessary and consistent
with proper operation. During any such period, Seller shall deliver from storage
Buyer's Oxygen Requirements.

                           PART III - NITROGEN SUPPLY

ARTICLE 6 - QUANTITY, INSTALLATION, OPERATION AND MAINTENANCE

         6.1 Seller will sell and deliver into the Nitrogen Distributing System
and Buyer will purchase and receive from Seller on the terms and conditions
hereinafter set forth Buyer's Nitrogen Requirements. Seller will deliver Gaseous
Nitrogen to meet Buyer's Nitrogen Requirements up to the maximum instantaneous
demand rate set forth in Article 1.10.

         6.2 If, from time to time, Buyer requires to purchase nitrogen at an
instantaneous demand rate in excess of the maximum instantaneous demand rate for
Gaseous Nitrogen as set forth in Article 1.10, Seller will, during the term of
this Agreement, sell and deliver such nitrogen as Supplemental Nitrogen to the
extent that Seller, in its reasonable discretion, deems that it has such
nitrogen available for Buyer and delivery may be made within the flow and
pressure limitations of Seller's Nitrogen Pipeline and the metering equipment
installed pursuant to Article 12.

        6.3 Seller shall, at its sole expense, own, maintain and operate the
Nitrogen Supply System, Seller's Nitrogen Pipeline and the metering equipment
and communications system installed pursuant to Article 12 during the term of
this Agreement. All of the foregoing shall be and remain the sole property of
Seller and, within a period of one hundred eighty (180) days following
termination of this Agreement, Seller shall have the option to remove any and
all components thereof which may then be situated at Buyer's Plant or leave same
in place and pass title of any such components left in place to Buyer. In
removing any such components that may be situated at Buyer's Plant as aforesaid,
Seller shall not unreasonably interfere with the business or operations of Buyer
and to the extent Seller does so interfere with the business or operations of
Buyer, Seller shall reimburse Buyer for any damages sustained by Buyer as a
result thereof.

                                      -6-
<PAGE>

         6.4 Buyer shall, during the term of this Agreement, maintain the
Nitrogen Distributing System, and Seller at no cost to Buyer, will maintain the
connection between Seller's Nitrogen Pipeline and the Nitrogen Distributing
System.

ARTICLE 7 - NITROGEN DELIVERY

         7.1 Nitrogen will be delivered into the Nitrogen Distributing System at
a pressure of not less than 150 pounds per square inch gauge or more than 225
pounds per square inch gauge. Pressure relief valves will actuate on Seller's
Nitrogen Pipeline at 275 pounds per square inch gauge and Buyer shall be
responsible for installing appropriate relief devices on the Nitrogen
Distributing System.

         7.2 Title to and risk of loss of nitrogen delivered through Seller's
Nitrogen Pipeline shall pass to Buyer at the Nitrogen Delivery Point.

ARTICLE 8 - SELLER'S SHUTDOWN - NITROGEN SUPPLY SYSTEM

         8.1 Seller will have the right from time to time to shut down the
Nitrogen Supply System for such period of time as may be necessary for Seller to
make ordinary repairs for maintenance and/or thawing necessary and consistent
with proper operation. During any such period, Seller shall deliver from storage
Buyer's Nitrogen Requirements.

                             PART IV - ARGON SUPPLY

ARTICLE 9 - QUANTITY, INSTALLATION, OPERATION AND MAINTENANCE

         9.1 Seller will sell and deliver to Buyer and Buyer will purchase and
receive from Seller, on the terms and conditions hereinafter set forth, Buyer's
Argon Requirements. Buyer will give Seller reasonable advance notice of the
quantities of Liquid Argon needed for Buyer's use. Seller will deliver such
quantities within a reasonable time not to exceed twenty-four (24) hours after
receipt of order. The delivery of Liquid Argon by Seller will constitute Buyer's
purchase thereof, and the quantities delivered will be measured by the method
Seller regularly uses for the type of delivery made. Buyer grants to Seller the
right of twenty-four (24) hour access to the Liquid Argon Storage System for the
performance of this Agreement, and if Buyer fails to grant such access, Buyer
will pay Seller any special expenses incurred. Seller will only make full
truckload deliveries of Liquid Argon unless otherwise agreed to by Buyer and
Seller.

         9.2 Seller, at its expense, unless otherwise provided herein, will: (i)
install the Liquid Argon Storage System and make the connections to the Argon
Distributing System as depicted in Exhibit C for the distribution of Liquid
Argon; (ii) maintain the Liquid Argon Storage System; and (iii) remove the
Liquid Argon Storage System within a reasonable time not to exceed one hundred
eighty (180) days following termination of this Agreement. In addition, Seller
may, at its expense, and for reasons other than a substantial change in Buyer's
Argon Requirements, method of supply or Buyer's Plant and with Buyer's approval,
such approval not

                                      -7-

<PAGE>

to be unreasonably withheld, remove the Liquid Argon Storage System or any part
thereof, and replace it with another argon supply system or another Liquid Argon
Storage System or part thereof, as Seller may deem appropriate for the supply of
Buyer's Argon Requirements. The Liquid Argon Storage System will remain the
property of Seller at all times. If Seller relocates or removes all or part of
the Liquid Argon Storage System and installs a replacement due to a substantial
change in Buyer's Argon Requirements, method of supply or Buyer's Plant, Seller
may charge Buyer the cost of such removal and installation as approved by Buyer
prior to said removal and installation, such approval not to be unreasonably
withheld. If the Liquid Argon Storage System is damaged by Buyer, its agents,
employees, contractors or invitees, the cost of repairs reasonably required by
Seller will be borne by Buyer. At the time Liquid Argon is first delivered
hereunder, the Liquid Argon Storage System will include storage tanks with
capacities of 3,000 gallons with atmospheric vaporizers and 11,000 gallons with
steam vaporizers.

         9.3 Buyer, at its expense, has provided and will continue to provide:
(i) a site for the Liquid Argon Storage System with access by road which is
reasonably acceptable to Seller; (ii) a foundation for the Liquid Argon Storage
System which is reasonably acceptable to Seller; (iii) fencing to prevent
tampering which is reasonably acceptable to Seller; and (iv) isolation barriers
which are reasonably acceptable to Seller. In addition, Buyer, at its expense,
has obtained and will continue to maintain all necessary permits and licenses
for the Liquid Argon Storage System and has furnished and will continue to
furnish all utilities reasonably required by Seller in connection with the
Liquid Argon Storage System, such as electric power, lighting, telephone, water
and/or steam. The facilities furnished by Buyer for the purpose of delivering
such utilities to the points on the Liquid Argon Storage System site designated
by Seller have been found satisfactory by Seller and Buyer will continue to
furnish such facilities hereunder. Buyer will prevent persons other than
Seller's representatives or Buyer's employees, agents, contractors or invitees
authorized by Seller, from entering the Liquid Argon Storage System site,
delaying delivery, or altering, repairing, adjusting, or otherwise tampering
with the Liquid Argon Storage System.

         9.4 Buyer shall, during the term of this Agreement, maintain the Argon
Distributing System, and Seller, at no cost to Buyer, will maintain the
connection between the Liquid Argon Storage System and the Argon Distributing
System depicted in Exhibit C.

ARTICLE 10 - ARGON DELIVERY

         10.1 Liquid Argon will be vaporized by the Liquid Argon Storage System
and transferred into the Argon Distributing System at a pressure of not less
than 150 pounds per square inch gauge or more than 220 pounds per square inch
gauge. Pressure relief valves will actuate on the Liquid Argon Storage System at
265 pounds per square inch gauge and Buyer shall be responsible for installing
appropriate relief devices on the Argon Distributing System.

         10.2 Title to and risk of loss of Liquid Argon shall pass to Buyer at
the Liquid Argon Delivery Point.

                                      -8-
<PAGE>

                         PART V - PRICING AND REPRICING

ARTICLE 11 - PRICING AND REPRICING

         11.1 As promptly as possible after the end of each Month, Seller will
read the metering equipment installed pursuant to Article 12 to determine the
quantities of oxygen and nitrogen delivered to Buyer during such Month. Based
upon such readings, Seller will invoice Buyer and Buyer will pay Seller in
accordance with the prices set forth below as adjusted under Articles 11.4 and
11.8 plus the amount of any sales, use or other excise taxes now or hereafter
imposed by law on Buyer by reason of such sale or delivery.

<Table>
<S>                                               <C>
BASE GASEOUS OXYGEN PRICE
         FIRST BLOCK
         First XXXXXXXX Cubic Feet per Month      $ XXXXXXXX per Month
         SECOND BLOCK
         Next XXXXXXXX Cubic Feet per Month       $ XXXXXXXX per 100 Cubic Feet

BASE SUPPLEMENTAL OXYGEN PRICE
         Any Quantity                             $ XXXXXXXX per 100 Cubic Feet

BASE GASEOUS NITROGEN PRICE
         FIRST BLOCK
         First XXXXXXXX Cubic Feet per Month      $ XXXXXXXX per Month
         SECOND BLOCK
         Next XXXXXXXX Cubic Feet per Month       $ XXXXXXXX per 100 Cubic Feet

BASE SUPPLEMENTAL NITROGEN PRICE
         Any Quantity                             $ XXXXXXXX per 100 Cubic Feet
</Table>

         11.2 Buyer will be obligated to pay Seller for a minimum of XXXXXXXX
Cubic Feet of Gaseous Oxygen each Month at the then current First Block Gaseous
Oxygen Price as set forth in Article 11.1, as adjusted under Article 11.4, even
if no oxygen is taken by Buyer during any such Month.

         11.3 Buyer will be obligated to pay Seller for a minimum of XXXXXXXX
Cubic Feet of Gaseous Nitrogen each Month at the then current First Block
Gaseous Nitrogen Price as set forth in Article 11.1, as adjusted under Article
11.4, even if no nitrogen is taken by Buyer during any such Month.

                                      -9-
<PAGE>

         11.4 The Base Gaseous Nitrogen Prices will be adjusted as of the first
day of each Quarter during the term of this Agreement based upon changes in the
cost of electric power and the Producer Price Index-Industrial Commodities Less
Fuel (BLS Series ID# WPU03T15M05), hereinafter the "PPI", using the following
formula:

                                    (Enew)       (PPInew)
                    NPn = BPn [.40 ------- + .40 --------- +.20]
                                   (Ebase)       (PPIbase)

where:

NPn               =        New Gaseous Nitrogen Price

BPn               =        Base Gaseous Nitrogen Price

and Ebase, Enew, PPIbase and PPInew shall have the meanings set forth below in
this Article 11.4.

The Base Gaseous Oxygen Prices set forth in Article 11.1 will be adjusted as of
the first day of each Quarter during the term of this Agreement based upon
changes in the cost of electric power, the PPI and the quantities of oxygen
delivered by Seller to Buyer under this Agreement using the following formula:

         NPo = BPo x {(.54 x (Enew/Ebase)) + (.20 x (PPInew /PPIbase)) + 0.26} x
(LFbase/LFnew)

Where:
         NPo =    New Gaseous Oxygen Price

         BPo =    Base Gaseous Oxygen Price

         LFbase = XXXXXXXX

                                           T
         LFnew = The lesser of LFbase or  ---
                                           H
 Where:

         T = The aggregate quantity of Gaseous Oxygen and Supplemental
             Oxygen delivered by Seller to Buyer under this Agreement
             during the Quarter immediately preceding the Quarter in which
             an adjustment becomes effective; and

         H = The average of the highest twelve (12) aggregate quantities
             of Gaseous Oxygen and Supplemental Oxygen delivered by Seller
             to Buyer under this Agreement during any hours of the
             applicable Quarter referenced in the definition of T above,
             multiplied by the total number of hours in such Quarter.
             Examples illustrating the intent of the parties with respect
             to the calculation of LFnew are set forth in Exhibit E
             attached hereto and made a part hereof.

                                      -10-
<PAGE>

PPIbase =     The three month average of the PPI as published by the
              United States Department of Labor, Bureau of Labor Statistics
              for the Months of January, February and March, 2002.

PPInew =      The average monthly PPI published by the United States
              Department of Labor, Bureau of Labor Statistics for the
              Quarter immediately preceding the Quarter in which an
              adjustment is made using the most current data available at
              the end of any such Quarter. If the PPI is revised and
              published on some other base, the values will be adjusted to
              the new base in accord with such conversion schedule or factor
              as may be supplied by the Bureau of Labor Statistics.

Enew =        XXXXXXXX

Ebase =       $ XXXXXXXX /kWh

              Buyer will have the right through an independent third party
auditor to audit the data and calculations used by the Seller in performing its
obligations under this Agreement with respect to the calculation of Enew and
Ebase pursuant to this Article 11. The auditor will report to Buyer only the
auditor's conclusion as to what the auditor considers the correct application of
the terms and conditions of this Agreement, and will not divulge any of the
detailed factors or assumptions behind the auditor's conclusion. Buyer will
provide not less than thirty (30) days prior written notice of its intention to
initiate any such audit. Each audit must be initiated not later than the end of
the sixth month following the Quarter under audit. Payment of auditor's fees
will be shared equally between Buyer and Seller.

         11.5 This Article intentionally left blank.

         11.6 Seller will invoice Buyer and Buyer will pay Seller for Liquid
Argon supplied hereunder in accord with the price set forth below, as adjusted
in accord with Article 11.7, plus the amount of any sales, use or other excise
tax now or hereafter imposed in connection with the supply of Liquid Argon
hereunder.

<Table>
<S>                                               <C>
         BASE LIQUID ARGON PRICE

         Any Quantity (up to XXXXXXXX Cubic       $ XXXXXXXX per 100 cubic feet

         Feet per Month)
</Table>

         In addition to the price set forth above, Buyer will pay to Seller each
Month during the term of this Agreement beginning with the Month in which the
Agreement Date occurs a Base Liquid Argon Monthly Charge of $XXXXXXXX plus the
amount of any sales, use or other excise tax related thereto; provided, however,
in the event this Agreement terminates on a date other than the last day of a
Month, such charge shall be prorated for such Month.

                                      -11-
<PAGE>

         11.7 The Base Liquid Argon Price set forth in Article 11.6 shall be
adjusted on the first day of each Quarter during the term of this Agreement
based upon changes in the cost of electric power and the PPI using the following
formula:

                                    (Enew)       (PPInew)
                    NPa = BPa [.40 ------- + .40 --------- +.20]
                                   (Ebase)       (PPIbase)
where:

         NPa = New Liquid Argon Price

         BPa = Base Liquid Argon Price

and Ebase, Enew, PPIbase and PPInew shall have the same meanings as provided in
Article 11.4.

         11.8 The Base Supplemental Oxygen Price and the Base Supplemental
Nitrogen Price set forth in Article 11.1 may be adjusted by Seller at any time
during the term of this Agreement by giving Buyer not less than thirty (30) days
prior written notice of the effective date of the adjustment. In the event Buyer
is able, within sixty (60) days following receipt of Seller's notice of
adjustment, to provide Seller with documentary evidence that it can obtain a
lower price for Supplemental Oxygen or Supplemental Nitrogen and Seller is
unwilling to either meet that lower price or rescind the notice of adjustment
within thirty (30) days after Seller receives such documentary evidence, Buyer
shall have the right to purchase Supplemental Oxygen or Supplemental Nitrogen
from another supplier. Any increases under this Article 11.8 will be limited to
5% per Contract Year.

         11.9 If the PPI referred to in Article 11.4 is revised and published on
some base other than 1982=100, the values of PPIbase and PPInew used in the
price formulas in Articles 11.4 and 11.7 will be adjusted to the new base in
accord with such conversion schedule or factor as may be supplied by the
publisher of such index. Should any of the publications or schedules containing
PPIbase, PPInew, Ebase, or Enew cease to exist or generate the necessary data, a
new index will be established by reference to other public sources of similar
information as may be mutually agreed upon by the parties. If no other public
source of such information is available, then the parties will in good faith
establish a new method for determining a similar index within sixty (60) days of
the acknowledged cessation of the public source data.

                     PART VI - GENERAL TERMS AND CONDITIONS

ARTICLE 12 - OXYGEN AND NITROGEN METERS

         12.1 Seller has installed or will install meters on Seller's Oxygen
Pipeline and Seller's Nitrogen Pipeline at the Meter and Receiver Site and at
the existing nitrogen meter station depicted in Exhibit A to measure the
quantities of Gaseous Oxygen, Supplemental Oxygen, Gaseous Nitrogen and
Supplemental Nitrogen delivered hereunder. The meters shall be operated and
maintained by Seller. Buyer grants to Seller the right of access to the Meter
and Receiver Site during the term of this Agreement, and thereafter,

                                      -12-
<PAGE>

for the removal of same. Buyer, at its expense, will provide a roadway to the
Meter and Receiver Site. Buyer, at its expense, will provide facilities for and
will deliver 110-volt electric power to the metering equipment. Seller has
installed or will install a communications system from the metering equipment to
the Oxygen Supply System and Nitrogen Supply System by a mutually acceptable
route over Buyer's property. Buyer grants to Seller the right of access to the
communications system for the purpose of maintaining said system during the term
of this Agreement, and thereafter, for the removal of same.

         12.2 Seller, at its expense, will test, calibrate and certify the
metering equipment at regular intervals (at least annually) as determined by
Seller, and Buyer may have its representatives present during such tests. Copies
of the calibration certification shall be provided to Buyer. Readings will be
corrected to standard cubic feet measured at 70 degrees Fahrenheit and 14.696
pounds per square inch absolute pressure. At any time requested by Buyer, Seller
will test the metering equipment in the presence of Buyer's representatives, and
if the metering equipment is found on such test to be accurate, Buyer will pay
Seller the cost and expense of such test, but if the metering equipment is found
on such test to be inaccurate, then the cost and expense of such test and of
correcting the inaccuracy in the metering equipment will be borne by Seller. If
on any test any metering equipment is found to be inaccurate, a correcting
invoice will be rendered to cover the actual amount of oxygen or nitrogen
delivered to Buyer through such metering equipment for the thirty (30) day
period prior to the date on which such test was made, or the period from the
date such metering equipment was last tested and considered accurate whichever
period is shorter. If on any test of any metering equipment its inaccuracy is
not over two percent (2%), either fast or slow, such metering equipment will be
considered accurate.

ARTICLE 13 - SPECIFICATIONS

         13.1 Oxygen delivered hereunder will be at least 99.5% pure. Nitrogen
delivered hereunder will be at least 99.999% inert with a dewpoint of not over
minus 84 degrees Fahrenheit temperature. Argon delivered hereunder will be at
least 99.998% pure with a dewpoint of not over minus 80 degrees Fahrenheit
temperature. Buyer may refuse delivery of any oxygen, nitrogen or argon which
does not conform to the foregoing specifications by providing Seller with verbal
notice within eight (8) hours and subsequent written confirmation within five
(5) days of delivery thereof and no charge will be made for any oxygen, nitrogen
or argon so refused. Seller will immediately, or as soon as practicable, replace
any such refused oxygen, nitrogen or argon with conforming oxygen, nitrogen or
argon at the same price as that oxygen, nitrogen or argon which was so refused
by Buyer. Since Buyer may obtain devices which have the capability of testing
the purity of oxygen, nitrogen or argon delivered hereunder and may refuse at no
cost oxygen, nitrogen or argon delivered hereunder which does not meet the
foregoing specifications, no claim of any kind with respect to oxygen, nitrogen
or argon delivered hereunder, whether or not based on negligence, warranty, or
any other theory of law will be greater than the purchase price of the quantity
of nonconforming oxygen, nitrogen or argon in respect to which such claim is
made. This represents Buyer's

                                      -13-
<PAGE>

exclusive remedy with respect to claims relating to the purity of oxygen,
nitrogen or argon. Seller will have no liability for any incidental,
consequential, indirect or special damages hereunder. THERE ARE NO EXPRESS
WARRANTIES BY SELLER WITH RESPECT TO OXYGEN, NITROGEN OR ARGON OTHER THAN THOSE
SPECIFIED IN THIS ARTICLE 13. NO WARRANTIES BY SELLER (OTHER THAN WARRANTY OF
TITLE AS PROVIDED IN THE UNIFORM COMMERCIAL CODE) SHALL BE IMPLIED OR OTHERWISE
CREATED UNDER THE UNIFORM COMMERCIAL CODE, INCLUDING BUT NOT LIMITED TO WARRANTY
OF MERCHANTABILITY AND WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE.

         13.2 At the beginning of each Month during the term hereof Seller shall
provide Buyer with a Certificate of Conformance indicating that oxygen and
nitrogen delivered hereunder during the immediately preceding Month conformed to
the specifications set forth in Article 13.1.

ARTICLE 14 - PAYMENT

         14.1 Terms of payment for all products and services provided under this
Agreement will be net thirty (30) days following the date of invoice. If Buyer
fails to make timely payment in accordance with the terms of this Agreement, or
its financial responsibility becomes otherwise impaired, Seller reserves the
right, among other remedies, to:

                  (a) Refuse to supply oxygen, nitrogen or argon except for
receipt of cash with order and/or payment in full of all outstanding charges;
and/or

                  (b) Assess and collect from Buyer a monthly late charge on any
delinquent balance at the interest rate permitted by law which charge shall be
payable by Buyer within fifteen (15) days following the date of invoice
therefor.

         14.2 If Buyer fails to make timely payment in accordance with the terms
of this Agreement and such failure continues for a period of thirty (30) days
following written notice of such failure by Seller, Seller shall have the right
to terminate or suspend this Agreement.

ARTICLE 15 - TAXES

         15.1 Subject to the provisions of Articles 11.1 and 11.6, Seller shall
pay or cause to be paid the taxes lawfully levied by any federal, state or local
governmental authority on Seller, including without limitation any taxes
applicable to any product delivered hereunder prior to its delivery to Buyer,
and Seller shall hold Buyer harmless therefrom. Buyer shall pay all taxes
lawfully levied by any federal, state or local governmental authority on Buyer,
including without limitation any taxes applicable to any product delivered
hereunder at and after delivery thereof to Buyer or for the account of Buyer,
and shall agree to hold Seller harmless therefrom. If Seller is required to
remit or pay any taxes that are lawfully levied on Buyer, Buyer shall reimburse
Seller for such remission or payment within thirty (30) days following the date
of Seller's invoice therefor. If Buyer is required to remit or pay any taxes
that are lawfully levied on Seller, Seller shall

                                      -14-
<PAGE>

reimburse Buyer for such remission or payment within thirty (30) days following
the date of Buyer's invoice therefor. Notwithstanding the foregoing, Buyer shall
have no liability for any taxes which are derived from Seller's gross or net
income or for the Michigan Single Business Tax.

ARTICLE 16 - CONTINGENCIES

         16.1 Neither party hereto will be liable to the other for default or
delay in the performance of any of its obligations hereunder (except any
obligation to make payments when due) due to an act of God, accident, fire,
flood, storm, riot, war, sabotage, explosion, strike, labor disturbance or other
concerted acts of workers beyond the reasonable control of the party claiming
excuse from performance which has the effect of disrupting the claiming party's
ability to perform hereunder and which also meets the other tests set forth in
this Article 16.1, national defense requirement, governmental law, ordinance,
rule or regulation, whether valid or invalid, extraordinary failure of equipment
or apparatus, inability to obtain electricity (whether or not such electricity
is purchased on an interruptible basis) or other type of energy, raw material,
labor, equipment or transportation, or any similar or different contingency
beyond its reasonable control which would make performance commercially
impracticable whether or not the contingency is of the same class as those
enumerated above, it being expressly agreed that such enumeration shall be
nonexclusive, provided however, neither business downturn nor economic
conditions will qualify as a contingency within the meaning of this Article 16.

         16.2 If, for any period, a contingency covered by Article 16.1 reduces
or fully interrupts the delivery of oxygen or nitrogen hereunder, Buyer and
Seller will have no commitment under Articles 2.1 or 6.1. In that event, Seller
will allocate in a fair and reasonable manner, between Buyer and Seller's own
needs and customers elsewhere, any oxygen or nitrogen which Seller has
reasonably available in storage within the Oxygen Supply System or Nitrogen
Supply System. Seller will so deliver such oxygen or nitrogen to Buyer, and
Seller will give prompt notice to Buyer of the reduction or interruption. Buyer
will accept and pay for any such oxygen or nitrogen so delivered before said
notice is given. Upon receiving said notice, Buyer will either advise Seller to
discontinue said deliveries or request that they be continued. Seller will
continue said deliveries, if so requested, for as long as Seller, in its
discretion, deems that its own needs and contract commitments to others will
permit. Buyer will pay for any such oxygen or nitrogen delivered pursuant to
this Article 16.2 at the price for Supplemental Oxygen or Supplemental Nitrogen,
as the case may be, specified in Article 11.1 as adjusted under Article 11.8
plus any additional costs related to special handling.

         16.3 During any Month in which the quantity of Gaseous Oxygen or
Gaseous Nitrogen purchased by Buyer is less than the minimum purchase obligation
set forth in Articles 11.2 or 11.3, respectively, because of a contingency as
provided in Article 16.1 affecting Seller or Buyer, Buyer's minimum purchase
obligation for such Month shall be reduced pro rata according to the duration of
the contingency during such Month and the term of this Agreement shall be
extended one (1) day for each contingency day or part thereof which has caused
said reduction in Buyer's minimum purchase obligation.

                                      -15-

<PAGE>

         16.4 In the event a Seller's contingency reduces or eliminates Seller's
capability to produce and/or deliver Liquid Argon, Seller will allocate Liquid
Argon among the requirements of all its regular customers in a fair and
reasonable manner.

         16.5 As utilized in Article 16.1 "extraordinary failure of equipment or
apparatus" shall mean a failure of equipment or apparatus that arises from
causes beyond Buyer's or Seller's control, rather than failure that arises from
Buyer's or Seller's lack of proper operation, maintenance, design, or
engineering.

ARTICLE 17 - ASSIGNMENT

         17.1 This Agreement shall inure to the benefit of and bind the
respective successors and assigns of the parties hereto and except as provided
below, any assignment of this Agreement without the prior written consent of the
other party, which consent shall not be unreasonably withheld, shall be void.
Either party may assign its rights under this Agreement, including its right to
receive payments hereunder, to a subsidiary, affiliate or any financial
institution, but in such case the assigning party shall remain liable to the
other party for the assigning party's obligations hereunder. The nonassigning
party shall promptly acknowledge such assignment in writing after notice of
assignment is received from the assigning party.

ARTICLE 18 - LIABILITY

         18.1 Buyer acknowledges that there are hazards associated with the
storage, use and handling of argon, oxygen and nitrogen and Buyer agrees that
its personnel concerned with argon, oxygen and nitrogen are aware of such
hazards. Buyer shall be responsible for complying with all relevant reporting
obligations under all applicable laws, including but not limited to the
Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. Sections
11001-11049 (EPCRA, also commonly known as Title III of the Superfund Amendments
and Reauthorization Act of 1986, SARA Title III) resulting from the presence at
Buyer's Plant of argon, oxygen and nitrogen supplied under this Agreement. Buyer
shall be responsible for warning and protecting its employees, independent
contractors and others exposed to the hazards posed by Buyer's storage, use and
handling of argon, oxygen and nitrogen. Buyer also assumes all responsibility
for the suitability and the results of using oxygen, nitrogen and argon alone or
in combination with other articles or substances and in any manufacturing
process. Buyer will notify Seller in advance of any anticipated construction,
renovation, or change in operations in the area of the Meter and Receiver Site
or the Liquid Argon Storage System so that any hazards associated with same can
be minimized. Neither party will be liable to the other party for any loss or
damage to the other's property which may occur because of the performance of
this Agreement regardless of which party may be negligent. Neither Buyer nor
Seller will be liable for any incidental, consequential, indirect or special
damages or charges under this Agreement. Buyer will receive documents from
Seller, including Seller's Material Safety Data Sheet(s) containing Seller's
safety and health information pertaining to argon, oxygen and nitrogen delivered
hereunder and Buyer will incorporate such information into Buyer's safety
program. Each party hereby agrees to indemnify the other

                                      -16-

<PAGE>

and hold the other harmless from any actions, lawsuits, demands, claims, losses,
expenses, costs, including but not limited to legal fees, and damages, arising
from the injury, illness or death of their respective employees while engaged in
activities connected with this Agreement, whether or not such injury, illness or
death is claimed to have been caused by, resulted from, or was in any way
connected with the negligence of the party to be indemnified.

         18.2 Buyer will hold Seller harmless from and against liens and claims
against any of Seller's equipment due to its location at Buyer's Plant.

ARTICLE 19 - DURATION OF AGREEMENT

         19.1 This Agreement will be in effect from the Agreement Date and will
continue in effect until December 1, 2011 or as may be extended pursuant to
Article 16.3 and thereafter until terminated by either party upon giving not
less than twelve (12) months prior written notice of such termination to the
other party.

ARTICLE 20 - PRIOR AGREEMENT

         20.1 Effective as of the Agreement Date, this Agreement shall supersede
and cancel the existing agreement dated November 16, 1993, as amended, between
the parties hereto relating to the supply of oxygen, argon and nitrogen to
Buyer's Plant.

ARTICLE 21 - EARLY TERMINATION OF AGREEMENT

         21.1 If Buyer permanently shuts down its iron and steelmaking
operations at Buyer's Plant, then Buyer may terminate this Agreement per the
schedule below by providing Seller not less than one hundred eighty (180) days
prior written notice of such termination. A termination fee, as liquidated
damages and not as a penalty, determined in accordance with the following
schedule, shall be payable by Buyer to Seller not less than ninety (90) days
prior to the effective date of such termination:

<Table>
<Caption>

The Effective Date of Termination                            Termination Fee
---------------------------------                            ---------------
<S>                                                          <C>
Before December 31, 2002                                     $  12,000,000

January 1, 2003 through December 31, 2003                    $   9,000,000

January 1, 2004 through December 31, 2004                    $   6,000,000

January 1, 2005 through December 31, 2005                    $   3,000,000

January 1, 2006 or later                                     $           0
</Table>

ARTICLE 22 - PURCHASES BY BUYER FROM A THIRD PARTY

         22.1 In the event that Seller is unable to supply all or any part of
Buyer's requirements for Supplemental Oxygen or Supplemental Nitrogen for any
reason during the term hereof, Buyer shall have the

                                      -17-
<PAGE>

right to purchase such requirements, or part thereof, from another supplier
during the period of such inability. This right of Buyer shall not entitle Buyer
to recover from Seller any incidental, indirect, consequential or special
damages or any part of the purchase price paid to any such other supplier,
including but not limited to the difference between the price of such other
supplier and the prices specified herein. Upon notice from Seller that the
inability to supply on the part of Seller has concluded, Buyer shall promptly
resume its purchases from Seller.

         22.2 During the term of this Agreement Buyer shall have the right to
initiate good faith negotiations with Seller for the purpose of determining
whether the prices for Supplemental Oxygen and Supplemental Nitrogen set forth
herein, as adjusted as provided herein, are fair market prices. In making such a
determination, the parties shall take into consideration all of the terms and
conditions contained in this Agreement, including without limitation
instantaneous delivery rates, delivery pressures, backup obligations, minimum
take or pay obligations, requirement obligations, repricing provisions, payment
terms and the duration of this Agreement. Buyer may exercise its right under
this Article 22.2 at any time during the term of this Agreement. In the event
Buyer exercises such right and Buyer and Seller are unable to agree whether the
prices set forth herein for Supplemental Oxygen or Supplemental Nitrogen are
fair market prices, Buyer may request competitive bids from other responsible
suppliers. If as a result of any such request Buyer receives credible written
evidence that Supplemental Oxygen or Supplemental Nitrogen can be supplied to
Buyer's Plant by a responsible third party supplier under terms and conditions
substantially the same as those contained in this Agreement at the time of such
request and at a price that is lower than the price for Supplemental Oxygen or
Supplemental Nitrogen set forth herein, as adjusted as provided herein, Buyer
shall furnish such evidence to Seller and if, within thirty (30) days after
receipt of such evidence, Seller does not agree to meet such lower price, Buyer
may elect, within thirty (30) days thereafter, to purchase all or a portion of
the product or products (Supplemental Oxygen or Supplemental Nitrogen) to which
such lower price applies from such third party supplier by giving Seller not
less than thirty (30) days prior written notice of such election. If Seller
agrees to meet the lower price, such price shall become effective on the first
day of the Month following the Month in which the evidence of such lower price
is received by Seller.

ARTICLE 23 - RESOLUTION OF DISPUTES

         23.1 In the event that a party to this Agreement has reasonable grounds
to believe that the other party hereto has failed to fulfill any obligation
hereunder, or, that its expectation of receiving due performance under this
Agreement may be impaired, such party will promptly notify the other party in
writing of the substance of its belief. The party receiving such notice must
respond in writing within thirty (30) days of receipt of such notice and either
provide evidence of cure of the condition specified or provide an explanation of
why it believes that its performance is in accordance with the terms and
conditions of this Agreement, and also specify three (3) dates, all of which
must be within thirty (30) days from the date of its response, for a meeting to
resolve the dispute and by providing either (a) evidence of cure of the
condition specified, or (b)

                                      -18-

<PAGE>

evidence that said party has diligently commenced to cure the condition
specified and will diligently continue to prosecute such cure, or (c) an
explanation of why it believes that its performance is in accordance with the
terms and conditions of this Agreement. The claiming party will then select one
(1) of the three (3) dates, and a dispute resolution meeting will be held. In
addition, each party shall have the right to require that the responsible
officers from each of the companies who is authorized to execute or amend this
Agreement be in attendance at such dispute resolution meeting. If the parties
cannot, in good faith discussions, resolve their dispute, they will be free to
pursue the remedies allowed under law without prejudice.

ARTICLE 24 - EASEMENTS AND RIGHTS OF WAY

         24.1 Buyer shall provide Seller at no cost during the term hereof with
any necessary rights of way on, over, across or through Buyer's Plant as Seller
may require for the installation, operation and maintenance of Seller's Oxygen
Pipeline and Seller's Nitrogen Pipeline.

ARTICLE 25 - BUYER'S AND SELLER'S AUTHORIZED REPRESENTATIVES

         25.1 Buyer's and Seller's authorized representatives shall have the
right to enter the Meter and Receiver Site at all times. Buyer shall exercise
all reasonable precautions to prevent its unauthorized employees or anyone other
than Seller's representatives or Buyer's employees authorized by Seller from
altering, repairing, adjusting or tampering with any of Seller's equipment
located at Buyer's Plant and to prevent trespassing on or entrance to the Meter
and Receiver Site by any unauthorized person or persons.

ARTICLE 26 - FAIR LABOR STANDARDS ACT

         26.1 Seller represents that all oxygen, nitrogen and argon delivered to
Buyer hereunder will be produced in compliance with the Fair Labor Standards Act
of 1938, as amended.

ARTICLE 27 - HEADINGS

         27.1 Headings and titles are for convenience of reference only, and are
not to be used in the interpretation of any provision herein.

ARTICLE 28 - SMOKING AND OPEN FLAMES

         28.1 Buyer agrees to prohibit smoking or unauthorized open flames
within the Meter and Receiver Site and to prohibit the storage of highly
flammable materials within 100 feet thereof in order to minimize the risk of
fire exposure.

ARTICLE 29 - NON-WAIVER

         29.1 Either party's failure to enforce any rights or remedies it may
have hereunder shall not constitute a waiver of any other subsequent rights or
remedies.

                                      -19-

<PAGE>

ARTICLE 30 - APPLICABLE LAW

         30.1 This Agreement shall be construed in accordance with the laws of
the State of Michigan.

ARTICLE 31 - NOTICES

         31.1 Any notice required to be given by either party to the other under
any provisions of this Agreement shall be in writing and sent by mail to the
other party, as follows:

                  SELLER:      Praxair, Inc.
                               7000 High Grove Blvd
                               Burr Ridge, IL  60521
                               Attn: Region Vice-President
                               Fax:  630-320-4506

                  BUYER:       Rouge Steel Company
                               3001 Miller Road
                               Dearborn, MI 48121-1699
                               Attn: Director, Purchasing and Transportation

                  INVOICES:    Rouge Steel Company
                               3001 Miller Road
                               Dearborn, MI  48121-1699
                               Attn:  Accounts Payable

or to such other party or such other address as either party shall from time to
time designate for the purpose.

ARTICLE 32 - ENTIRE AGREEMENT

         32.1 The entire agreement is contained herein. The parties acknowledge
that they have read and understand this Agreement, that they have consulted with
counsel of their choice regarding this Agreement, that there are no other
promises, representations or warranties affecting this Agreement, and that any
other or different terms and conditions in any purchase orders issued or
accepted hereunder shall be deemed null and void. Neither of the parties shall
be bound by any decision, definitions, warranties, or representations with
respect to the subject matter hereof other than as expressly provided herein, or
as duly set forth on or subsequent to the date hereof in writing and signed by
the parties to be bound thereby.

         IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed as of the date first above written.

ROUGE STEEL COMPANY                            PRAXAIR, INC.

By: /s/ Gary P. Latendresse                    By:    Paul J. Bilek
   --------------------------                     --------------------------

Title:  Vice Chairman & CFO                    Title: Executive Vice President
      -----------------------                        -----------------------

Date:  12-03-02                                Date:  12-09-02
     ------------------------                       ------------------------

                                      -20-<PAGE>
                                                                     EXHIBIT 4.1

            THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

         THIS THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT, dated as
of February 14, 2003 (this "Amendment"), is by and between CHILDTIME CHILDCARE,
INC., an Illinois corporation (the "Company"), and BANK ONE, NA, with its main
office in Chicago, Illinois, and successor by merger to Bank One, Michigan, a
Michigan banking corporation (the "Bank").

                                  INTRODUCTION

         A. The Company and the Bank have entered into an Amended and Restated
Credit Agreement dated as of January 31, 2002, as amended by the First Amendment
to Amended and Restated Credit Agreement dated as of April 1, 2002, and the
Second Amendment to Amended and Restated Credit Agreement dated as of July 19,
2002 (the "Credit Agreement").

         B. The Company has requested the Bank to amend the Credit Agreement in
certain respects, and the Bank is willing to do so on the terms and conditions
set forth in this Amendment.

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

                    ARTICLE 1. AMENDMENTS TO CREDIT AGREEMENT

         Effective the date (the "Amendment Date") the conditions precedent set
forth in Article 3 are satisfied, the Credit Agreement hereby is amended as
follows:

         1.1 The following definition of the term "Acceptable Letter of Credit
Advances" is added to Section 1.1 in alphabetical order:

          "Acceptable Letter of Credit Advances" means (i) renewals of Letters
     of Credit existing on the Third Amendment Date and (ii) the issuance of
     Letters of Credit as reasonably necessary for the Company's worker's
     compensation insurance requirements, so long as in each case under the
     foregoing clauses (i) and (ii) all conditions for the making of Advances
     under Sections 2.5 and 2.6 of this Agreement are satisfied.

         1.2 The definition of the term "Applicable Margin" in Section 1.1 is
amended and restated in full as follows:

          "Applicable Margin" means (a) for purposes of determining the
     commitment fees payable under Section 2.3(a), 0.75% per annum, (b) for
     purposes of determining the Eurodollar Rate applicable to Eurodollar Rate
     Loans outstanding at any time and the Letter of Credit fees payable under
     Section 2.3(c), 3.75% per annum, and (c) for

<PAGE>

     purposes of determining the Floating Rate applicable to Floating Rate Loans
     outstanding at any time, 1.50% per annum.

         1.3 The definition of the term "Floating Rate" in Section 1.1 is
amended and restated in full as follows:

          "Floating Rate" means the per annum rate equal to the sum of (a) plus
     (b), where "(a)" is the greater of (i) the Prime Rate in effect from time
     to time or (ii) the sum of one percent (1%) per annum plus the Federal
     Funds Rate in effect from time to time, and "(b)" is the Applicable Margin;
     which Floating Rate shall change simultaneously with any change in such
     Prime Rate or Federal Funds Rate, as the case may be.

         1.4 The definition of the term "Termination Date" in Section 1.1 is
amended and restated in full as follows:

          "Termination Date" means the earlier to occur of (a) July 31, 2003,
     and (b) the date on which the Commitment shall be terminated pursuant to
     Section 2.2 or 6.2.

         1.5 The following definitions of the terms "Third Amendment" and "Third
Amendment Effective Date" are added to Section 1.1 in alphabetical order,
respectively, as follows:

          "Third Amendment" means the Third Amendment to this Agreement dated as
     of February 14, 2003.

          "Third Amendment Date" means the Amendment Date (as defined in the
     Third Amendment).

         1.6 The following sentence is added to the end of Section 1.2:

     Notwithstanding anything to the contrary, for purposes of calculating and
     determining compliance with the financial covenants under Sections 5.2(a)
     and 5.2(d), the parties shall disregard the effects of all non-cash
     accounting charges and adjustments, e.g., impairment losses with respect to
     intangible assets recognized in accordance with Financial Accounting
     Standard 142.

         1.7 Section 2.1(a) is amended and restated in full as follows:

                                      -2-
              [Third Amendment to Childtime Childcare, Inc. Second
                     Amended and Restated Credit Agreement]
<PAGE>

          (a) Advances. The Bank agrees, subject to the terms and conditions of
     this Agreement, to make Revolving Credit Loans to the Company pursuant to
     Section 2.4 and Section 3.3, and to make Letter of Credit Advances to the
     Company pursuant to Section 2.4, from time to time from and including the
     Effective Date to but excluding the Termination Date, not to exceed in
     aggregate principal amount at any time outstanding the amount determined
     pursuant to Section 2.1(b); provided that, on and after the Third Amendment
     Date, other than Acceptable Letter of Credit Advances, all Letter of Credit
     Advances, if any, shall be made by the Bank in its sole discretion
     notwithstanding satisfaction of any or all conditions for the making of
     Advances under Sections 2.5 and 2.6 of this Agreement.

         1.8 The first sentence of Section 2.1(b) is amended and restated in
full as follows:

     Notwithstanding anything in this Agreement to the contrary, the aggregate
     principal amount of the Advances made by the Bank at any time outstanding
     shall not exceed the amount of the Commitment as of the date any such
     Advance is made, provided, however, that the aggregate principal amount of
     Letter of Credit Advances outstanding at any time shall not exceed
     $4,000,000.

         1.9 Subpart (e) of Section 2.10 is amended and restated in full as
follows:

          (e) In accordance with Section 5.1(f), first-priority mortgage liens
     on all real property of the Company and the Guarantors.

         1.10 Subpart (vii) of Section 5.1(d) is amended and restated in full as
follows:

                (vii) (A) As soon as available and in any event not later than
     April 15, 2003, updated financial projections for the Parent Guarantor and
     its Subsidiaries for the fiscal years of the Parent Guarantor ending in
     March of 2004 and March of 2005, which shall include, in each case, for the
     first of such two fiscal years a balance sheet and statements of income and
     cash flows, and for the second of such two fiscal years, only a summary
     statement of income, and (B) as soon as available and in any event within
     90 days after the end of each fiscal year of the Parent Guarantor
     commencing with such fiscal year ending in March of 2004, updated financial
     projections for the Parent Guarantor and its Subsidiaries for the next two
     fiscal years of the Parent Guarantor, which shall include, in each case,
     for the first of such two fiscal years a balance sheet and statements of
     income and cash flows, and for the second of such two fiscal years, only a
     summary statement of income; and

         1.11 Section 5.1(f) is amended and restated in full as follows:

          (f) Real Property Collateral.

                                      -3-
              [Third Amendment to Childtime Childcare, Inc. Second
                     Amended and Restated Credit Agreement]
<PAGE>

                (i) Updated Identification of Real Property. Within three (3)
     Business Days after the Third Amendment Date, deliver to the Bank a
     schedule setting forth all real property owned by the Company and each
     Guarantor, and, within ten (10) Business Days after the Third Amendment
     Date, deliver all other information reasonably required for the Bank to
     obtain appraisals, if required by the Bank, of all such property with
     respect to which the Bank does not presently have current appraisals,
     certified as true and correct by a duly authorized officer of the Company.

                (ii) Environmental Investigation. Within thirty (30) Business
     Days after the Third Amendment Date, deliver to the Bank the Bank's
     standard form of environmental questionnaire duly completed with respect to
     each property owned or leased by the Company and the Guarantors for which
     the Company and the Guarantors have not previously delivered such a
     questionnaire, together with such other information as the Bank may deem
     necessary or desirable in order to complete its environmental investigation
     with respect thereto. The Bank shall provide to the Company a list of
     approved environmental consultants for each respective state within seven
     (7) Business Days after the Third Amendment Date.

                (iii) Complete Mortgage Collateral Items within Sixty (60) Days.
     Within sixty (60) calendar days after the Third Amendment Date, deliver to
     the Bank, or cause to be delivered to the Bank, the following; provided
     that the Company agrees to execute and deliver, or cause to be executed and
     delivered, the Mortgage forms required below within two (2) Business Days
     after the Bank provides them to the Company:

                        (A) The Mortgages duly executed on behalf of the Company
     and the Guarantors, as applicable, granting to the Bank first-priority
     mortgage liens on all real property owned by the Company and the
     Guarantors, together with:

                        (B) Evidence of the recordation, filing and other action
     (including payment of any applicable taxes or fees) in such jurisdictions
     as the Bank may deem necessary or appropriate with respect to the Security
     Documents, including the filing of financing statements and similar
     documents which the Bank may deem necessary or appropriate to create,
     preserve or perfect the liens, security interests and other rights intended
     to be granted to the Bank thereunder;

                        (C) Policies of mortgage title insurance in form and
     amounts, and issued by an insurer, satisfactory to the Bank, insuring the
     interest of the Bank under the Mortgage without standard exceptions and
     without any special exceptions not acceptable to the Bank and containing
     such further endorsements, affirmative coverage and other terms as the Bank
     may reasonably request;

                                      -4-
              [Third Amendment to Childtime Childcare, Inc. Second
                     Amended and Restated Credit Agreement]
<PAGE>

                        (D) Surveys of the property to be subject to the
     Mortgages, made by a land surveyor licensed in the State in which such
     property is located and acceptable to the Bank complying with the Minimum
     Standard Detail Requirements for Land Title Surveys as adopted by the
     American Title Association and the American Congress on Surveying and
     Mapping and showing such details as the Bank may reasonably request,
     certified to the Bank and the issuer of such mortgage title insurance
     policy in form reasonably acceptable to the Bank;

                        (E) Flood-zone certifications, in form and substance
     satisfactory to the Bank, with respect to all properties subject to the
     Mortgages;

                        (F) Evidence that the casualty and other insurance
     required pursuant to the Mortgages is in full force and effect;

                        (G) The favorable written opinions of counsel for the
     Company and the Guarantors, including, if requested by the Bank, local
     counsel for the Company and the Guarantors in the jurisdictions in which
     the mortgaged properties are located other than Arizona, California,
     Georgia, Ohio and Oklahoma, as to such matters with respect to the
     Mortgages as the Bank may reasonably request;

                        (H) Environmental Certificates with respect to all
     mortgaged properties, or confirmations thereof, duly executed on behalf of
     the Company and the Guarantors; and

                        (I) Copies of all governmental and nongovernmental
     consents, approvals, authorizations, declarations, registrations or
     filings, if any, required on the part of the Company or the Guarantors in
     connection with the execution, delivery and performance of the Mortgages or
     as a condition to the legality, validity or enforceability of the
     Mortgages, certified as true and correct and in full force and effect as of
     the date of the Mortgages by a duly authorized officer of the Company, or,
     if none is required, a certificate of such officer to that effect.

     Notwithstanding the foregoing, the Company shall be entitled to additional
     time to deliver any of the items set forth in (iii)(A)-(I) above to the
     extent necessary to compensate for any delay caused by the Bank or the
     Bank's agents or contractors.

                (iv) Previously Required Mortgage Documents by February 28,
     2003. Notwithstanding anything to the contrary, by not later than February
     28, 2003, the Company shall deliver, or caused to be delivered, to the Bank
     all items identified under clause (iii) above relating to the Mortgages
     previously required to be delivered to the Bank under this Agreement,
     including without

                                      -5-
              [Third Amendment to Childtime Childcare, Inc. Second
                     Amended and Restated Credit Agreement]
<PAGE>
     limitation pursuant to the Second Amendment to this Agreement. As of the
     Third Amendment Date those items include, without limitation, the
     following:

                                1. Owner's affidavits satisfactory to the title
               company for each of such Mortgages;

                                2. Discharges of existing liens as requested by
               the Bank for: (A) Site #5 being mortgaged by the Company in the
               State of California; (B) Site #15 being mortgaged by the Company
               in the State of Georgia, (C) Site #17 being mortgaged by the
               Company in the State of Georgia, (D) all properties being
               mortgaged by the Company in the State of Virginia (Sites #23-26,
               inclusive), (E) Site #28 being mortgaged by the Company in the
               State of Ohio, and (F) all properties being mortgaged by the
               Company in the State of Arizona (Sites #35 and 36); or in the
               alternative, if the Company cannot obtain such discharges by
               February 28, 2003 and the Bank does not elect to extend such
               deadline, the Company shall provide by such date title insurance
               insuring over such liens in form and substance satisfactory to
               the Bank; and

                                3. Payment of all title insurance premiums and
               other costs relating to such Mortgages in the States of Arizona
               and Ohio. The Company further agrees to promptly pay the title
               insurance company all amounts for title insurance premiums and
               recording charges relating to all properties from time to time
               being mortgaged by the Company in favor of the Bank when and as
               invoiced by the title insurance company, and if the Company fails
               to promptly pay such amounts, the Company hereby authorizes the
               Bank to debit its account for payment of all such amounts.

                        (v) Conditional Exclusion of Proposed Sale Properties.
     Notwithstanding anything to the contrary, each of the properties commonly
     known as 1199 Quince Orchard Boulevard, Gaithersburg, Maryland, 855 Hopkins
     Road, Williamsville, New York, and 9861 Yorktown Avenue, Huntington Beach,
     California (each a "Sale Property"), shall be excluded from the
     requirements of clause (iii) above so long as by not later than June 30,
     2003 each such Sale Property has been sold outright or is the subject of a
     valid and bona fide sale/leaseback transaction on terms and conditions
     satisfactory to the Bank. In the event any Sale Property has not been so
     sold or is not so subject to such a transaction by such date, the Company
     shall deliver, or cause to be delivered, to the Bank all the items required
     under clause (iii) above with respect to such Sale Property as soon as
     practicable and in any event by not later than July 15, 2003.

                1.12 Sections 5.2(a), (b), (c) and (d) are amended and restated
in full, respectively, as follows:

                   (a) Tangible Capital Funds. Permit or suffer Consolidated
     Tangible Capital Funds of the Parent Guarantor and its Subsidiaries at any
     time to be

                                      -6-
              [Third Amendment to Childtime Childcare, Inc. Second
                     Amended and Restated Credit Agreement]
<PAGE>

     less than the amount equal to 80% of the amount of Consolidated Tangible
     Capital Funds of the Parent Guarantor and its Subsidiaries as of the end of
     the Parent Guarantor's interim fiscal period ended January 3, 2003.

                        (b) Senior Debt to EBITDA. [intentionally omitted]

                        (c) Debt Service Coverage Ratio. [intentionally omitted]

                        (d) EBITDA. Permit or suffer the Consolidated EBITDA of
     the Parent Guarantor and its Subsidiaries to be less than (i) $410,000 as
     of the end of the Parent Guarantor's fiscal quarter ending on or about
     January 3, 2003, for the period of the fiscal quarter then ended, (ii)
     $279,000 as of the end of the third to last four-week fiscal period of the
     Parent Guarantor's fiscal year ending on or about March 31, 2003, for the
     four-week fiscal period then ending, (iii) $697,000 as of the end of the
     second to last four-week fiscal period of the Parent Guarantor's fiscal
     year ending on or about March 31, 2003, for the period of the two four-week
     fiscal periods then ending, (iv) $1,194,000 as of the end of the last
     four-week fiscal period of the Parent Guarantor's fiscal year ending on or
     about March 31, 2003, for the period of the three four-week fiscal periods
     then ending, (v) $300,000 as of the end of the first four-week fiscal
     period of the Parent Guarantor's fiscal year ending on or about March 31,
     2004, for the four-week fiscal period then ending, (vi) $600,000 as of the
     end of the second four-week fiscal period of the Parent Guarantor's fiscal
     year ending on or about March 31, 2004, for the period of the two four-week
     fiscal periods then ending, or (vii) $900,000 as of the end of the third
     four-week fiscal period of the Parent Guarantor's fiscal year ending on or
     about March 31, 2004, for the period of the three four-week fiscal periods
     then ending.

                1.13 Clause (iii) of Section 5.2(e) (as added pursuant to the
Second Amendment to the Credit Agreement referenced above) is amended and
restated in full as follows:

          (iii) Subordinated Debt that constitutes Initial Subordinated Debt (as
     defined in Section 5.2(g)) provided by the Investors (as defined in Section
     5.2(g)) to the Company or the Parent Guarantor in accordance with Section
     5.2(g) in an aggregate principal amount of not more than $14,000,000 plus
     the aggregate principal amount of any notes representing Initial
     Subordinated Debt PIK Interest, and Subordinated Debt that constitutes
     Rights Offering Subordinated Debt (as defined in Section 5.2(g)) in an
     aggregate principal amount not exceeding $3,500,000 incurred in accordance
     with the terms of this Agreement, the proceeds of which are used to
     refinance such Subordinated Debt; and

                1.14 The last sentence of Section 5.2(g) (as added pursuant to
the Second Amendment to the Credit Agreement referenced above), including
subparts (1) through (9) thereof, is amended and restated in full as follows:

                                      -7-
              [Third Amendment to Childtime Childcare, Inc. Second
                     Amended and Restated Credit Agreement]
<PAGE>

     Notwithstanding anything in this Section 5.2(g) or any other provision of
     this Agreement, the Bank agrees that in the event Tutor Time Learning
     Systems, Inc. ("Tutor Time") is the subject of proceedings under the United
     States Bankruptcy Code and the trustee in the proceedings elects to sell
     property of the Tutor Time estate, the Company and/or any of the Guarantors
     may purchase all or any portion of such property (the "Tutor Time Property
     Purchase"), subject to the satisfaction of each of the following
     conditions:

          (1) the assets of Tutor Time subject of the Tutor Time Property
     Purchase shall have been approved by the Bank in its sole discretion, the
     Bank shall otherwise have completed all due diligence required by the Bank
     with respect to the Tutor Time Property Purchase, and the results of all
     such due diligence shall be satisfactory to the Bank in its sole
     discretion,

          (2) the assets of Tutor Time purchased in the Tutor Time Property
     Purchase shall be free and clear of all Liens, claims and other
     encumbrances and interests, and the Tutor Time Property Purchase shall have
     been approved under Section 363 of the Bankruptcy Code pursuant to terms
     and an order acceptable to the Bank in its sole discretion,

          (3) the maximum aggregate principal amount of the Loans the Company
     may use for the Tutor Time Property Purchase shall be the amount equal to
     the then unused Commitment minus $2,000,000 (such amount so used,
     hereinafter the "Credit Facility Usage"),

          (4) for every $1.00 of Credit Facility Usage used to fund the
     consideration paid by the Company and the Guarantors for the Tutor Time
     Property Purchase, JP Acquisition Fund III L.P., other shareholders of the
     Parent Guarantor acceptable to the Bank or other investors acceptable to
     the Bank (collectively, the "Investors") shall have contributed to the
     Company net $1.00 cash of Subordinated Debt on terms and conditions
     satisfactory to the Bank (the "Initial Subordinated Debt"), and such cash
     likewise shall have been used by the Company to fund the Tutor Time
     Property Purchase (or contributed by the Company to the Subsidiary
     Guarantors and used by them for such purpose); provided that:

                        (i) the terms of the Initial Subordinated Debt must
          include without limitation: (A) the first required principal payment
          with respect to the Initial Subordinated Debt shall be not earlier
          than December 31, 2004, (B) the total interest, commissions,
          discounts, fees, charges and other consideration and compensation
          (collectively, "Interest") stated to be payable by the Company and the
          Guarantors with respect to the Initial Subordinated Debt, including
          without limitation all Interest payable in kind with the issuance of
          additional securities and all Interest payable in cash and cash
          equivalents, shall not in the aggregate exceed an amount equal to a
          per annum rate of return of 15% (plus any applicable default rate of
          return), (C) the total Interest with respect to the Initial
          Subordinated

                                      -8-
              [Third Amendment to Childtime Childcare, Inc. Second
                     Amended and Restated Credit Agreement]
<PAGE>

          Debt which by its terms is stated to be payable by the Company and the
          Guarantors in cash or cash equivalents prior to December 31, 2004
          shall not, except as otherwise provided in clause (iii) below, in the
          aggregate exceed an amount equal to a per annum rate of return of 7%
          (all Interest with respect to the Initial Subordinated Debt in excess
          of a per annum rate of return of 7% hereinafter is called the "Initial
          Subordinated Debt PIK Interest"), and (D) notwithstanding anything to
          the contrary, no Interest, whether Initial Subordinated Debt PIK
          Interest or other Interest, shall be paid in cash on the Initial
          Subordinated Debt prior to December 31, 2004, except as provided in
          clauses (iii) and (iv) below;

                        (ii) the Initial Subordinated Debt and, subject to the
          conditions set forth in clause (iii) below, accrued and unpaid
          Interest thereon (including Initial Subordinated Debt PIK Interest),
          may be repaid with the proceeds of equity and Subordinated Debt, or
          cancelled in connection with the payment of a portion of the purchase
          price for such securities, pursuant to a rights offering (the "Rights
          Offering") by the Company and/or the Parent Guarantor to shareholders
          of the Parent Guarantor to purchase common stock of the Parent
          Guarantor (the "Rights Offering Equity") and Subordinated Debt of the
          Company or the Parent Guarantor in an aggregate principal amount of
          not more than $3,500,000 on terms and conditions satisfactory to the
          Bank (the "Rights Offering Subordinated Debt"), so long as the terms
          of the Rights Offering Subordinated Debt include without limitation:
          (A) the first required principal payment with respect to the Rights
          Offering Subordinated Debt shall be not earlier than December 31,
          2004, and (B) subject to clause (iv) below, the total Interest payable
          by the Company and the Guarantors with respect to the Rights Offering
          Subordinated Debt shall not in the aggregate exceed an amount equal to
          a per annum rate of return of 15% (plus any applicable default rate of
          return) all of which may be payable in cash;

                        (iii) Interest on the Initial Subordinated Debt may be
          paid only if the aggregate amount of the net proceeds of the Rights
          Offering Equity and the Rights Offering Subordinated Debt exceeds
          $14,000,000 (without the Rights Offering Subordinated Debt exceeding
          $3,500,000), in which case Interest on the Initial Subordinated Debt
          (including Initial Subordinated PIK Interest and any Interest
          constituting penalty interest or interest accrued on overdue amounts)
          may be paid out of such proceeds in excess of $14,000,000 so long as
          no Default or Event of Default shall have then occurred and be
          continuing or would be caused thereby; and

                        (iv) if the Company and/or the Parent Guarantor has not
          cancelled Initial Subordinated Debt in connection with its tender in
          payment of the purchase price of, and/or received net cash proceeds
          from, the Rights Offering Equity in an aggregate amount of $7,500,000
          or more by July 19, 2003, then at all times thereafter until the
          earlier of December 31, 2004 or the Company's and/or the Parent
          Guarantor's cancellation of

                                      -9-
              [Third Amendment to Childtime Childcare, Inc. Second
                     Amended and Restated Credit Agreement]
<PAGE>

          Initial Subordinated Debt in payment of the purchase price of, and/or
          receipt of net cash proceeds from, the Rights Offering Equity in such
          amount, all Interest with respect to both the Initial Subordinated
          Debt and the Rights Offering Subordinated Debt must be stated to be
          payable only in kind with the issuance of additional securities and no
          Interest with respect to either the Initial Subordinated Debt or the
          Rights Offering Subordinated Debt may be payable in cash or cash
          equivalents,

          (5) all consideration paid by the Company and the Guarantors for the
     Tutor Time Property Purchase in excess of the sum of the Credit Facility
     Usage plus the equal amount contributed by the Investors and used to fund
     the Tutor Time Property Purchase under the foregoing clause (4), shall have
     been contributed by the Investors to the Company in the form of new cash
     equity or Subordinated Debt and used by the Company to fund the Tutor Time
     Property Purchase (or contributed by the Company to the Subsidiary
     Guarantors and used by them for such purpose),

          (6) immediately before and after giving effect to the Tutor Time
     Property Purchase, no Default or Event of Default shall exist or shall have
     occurred and be continuing, all Subsidiaries, including without limitation
     TT Acquisition LLC and CTT Acquisition Corp., shall have become Guarantors
     and the Company otherwise shall have complied with the requirements of
     clause (ii) of Section 5.1(g) with respect to all new Subsidiaries of the
     Company or any Guarantor (without regard for the 30-day period referenced
     therein which the Company hereby waives), and the representations and
     warranties contained in Article IV of the Credit Agreement and in the other
     Loan Documents shall be true and correct on and as of the date thereof
     (both before and after the Tutor Time Property Purchase is consummated) as
     if made on the date the Tutor Time Property Purchase is consummated, and,
     without limiting the foregoing, immediately before and after giving effect
     to the Tutor Time Property Purchase, the Parent Guarantor and its
     Subsidiaries shall be in compliance on a pro forma basis with all financial
     covenants under this Agreement (including without limitation as amended in
     accordance with the Second Amendment to this Agreement), on a pro forma
     basis consistent with Section 1.2 of this Agreement and otherwise
     acceptable to the Bank,

          (7) by not later than October 4, 2002, the Company shall have executed
     and delivered to the Bank additional Mortgages covering not less than ten
     (10) facilities of the Company in locations acceptable to the Bank in its
     sole discretion, together with the related items contemplated under Section
     5.1(f)(iii); provided that the Bank shall not require appraisals or surveys
     of such additional mortgaged facilities,

          (8) the Tutor Time Property Purchase shall close on or before August
     15, 2002, and

                                      -10-
              [Third Amendment to Childtime Childcare, Inc. Second
                     Amended and Restated Credit Agreement]
<PAGE>
          (9) prior to the consummation of the Tutor Time Property Purchase, the
     Company shall have paid to the Bank a fee in the amount of $50,000 in
     immediately available funds and all other amounts owing to the Bank, or for
     which the Company has agreed with the Bank to be responsible, under this
     Agreement or otherwise, including without limitation all fees and expenses
     of counsel to the Bank and all appraisal fees.

        1.15    Section 5.2(h) is amended and restated in full as follows:

                (h) Disposition of Assets; Etc. Sell, lease, license, transfer,
     assign or otherwise dispose of all or a substantial portion of its
     business, assets, rights, revenues or property, real, personal or mixed,
     tangible or intangible, whether in one or a series of transactions, other
     than (i) inventory sold in the ordinary course of business upon customary
     credit terms and sales of scrap or obsolete material or equipment and (ii)
     the sale of the Sale Properties (as defined in Section 5.1(f)(v)) prior to
     June 30, 2003, either outright or pursuant to sale/leaseback transactions
     on terms and conditions satisfactory to the Bank.

        1.16    Section 5.2(n) is amended and restated in full as follows:

                (n) Payments and Modification of Subordinated Debt. (i)
     Notwithstanding any terms of the Initial Subordinated Debt or any Rights
     Offering Subordinated Debt to the contrary, make any payment of Interest on
     the Initial Subordinated Debt except in accordance with Section 5.2(g) (as
     amended by the Third Amendment) or make any payment in cash or cash
     equivalents of Interest on the Rights Offering Subordinated Debt that is
     prohibited under Section 5.2(g) (as amended by the Third Amendment), (ii)
     make any optional payment, prepayment or redemption of any Subordinated
     Debt, other than the surrender and cancellation of the Initial Subordinated
     Debt in accordance with Section 5.2(g) (as amended by the Third Amendment)
     and the other terms of this Agreement, (iii) amend or modify, or consent or
     agree to any amendment or modification, which would shorten any maturity or
     increase the amount of any payment of principal or increase the rate (or
     require earlier payment) of Interest on any Subordinated Debt, (iv) amend
     any agreement under which any Subordinated Debt is issued or created or
     otherwise related thereto, (v) enter into any agreement or arrangement
     providing for the defeasance of any Subordinated Debt; provided that this
     Section 5.2(n) shall not prohibit (1) the prepayment, in accordance with
     subpart (4) of the last sentence of Section 5.2(g), of the Initial
     Subordinated Debt (as defined in such subpart (4)) with the proceeds of the
     equity and Subordinated Debt issued pursuant to the Rights Offering
     described in such subpart (4), or (2) the payment of interest on the
     Initial Subordinated Debt with certain excess proceeds of the Rights
     Offering Equity in accordance with such subpart (4) of the last sentence of
     Section 5.2(g). As of the date of execution of the Third Amendment, the
     Company has voluntarily determined to provide for the additional
     restrictions on the payment of Interest on the Initial Subordinated Debt
     and the Rights Offering Subordinated Debt set forth in Section 5.2(g) (as
     amended by the Third

                                      -11-
              [Third Amendment to Childtime Childcare, Inc. Second
                     Amended and Restated Credit Agreement]
<PAGE>

     Amendment). If, notwithstanding such determination and the terms of
     Section 5.2(g), the Company at any time elects to make any scheduled
     payment of Interest on the Initial Subordinated Debt or the Rights Offering
     Subordinated Debt in cash or cash equivalents contrary to the terms of
     Section 5.2(g), the Company will provide not less than ten (10) Business
     Days' advance written notice to the Bank of the Company's intention to make
     any such payment. Upon the issuance of any such written notice, an Event of
     Default shall be deemed to have occurred.

                    ARTICLE 2. REPRESENTATIONS AND WARRANTIES

         In order to induce the Bank to enter into this Amendment, the Company
represents and warrants that:

         2.1 The execution, delivery and performance by the Company of this
Amendment are within its corporate powers, have been duly authorized by all
necessary corporate action and are not in contravention of any law, rule or
regulation, or any judgment, decree, writ, injunction, order or award of any
arbitrator, court or governmental authority, or of the terms of the Company's
charter or by-laws, or of any contract or undertaking to which the Company is a
party or by which the Company or its property is or may be bound or affected.

         2.2 This Amendment is a legal, valid and binding obligation of the
Company, enforceable against the Company in accordance with its terms.

         2.3 No consent, approval or authorization of or declaration,
registration or filing with any governmental authority or any nongovernmental
person or entity, including without limitation any creditor or stockholder of
the Company, is required on the part of the Company in connection with the
execution, delivery and performance of this Amendment or the transactions
contemplated hereby or as a condition to the legality, validity or
enforceability of this Amendment.

         2.4 After giving effect to the amendments contained in Article 1 of
this Amendment, the representations and warranties contained in Article IV of
the Credit Agreement and in the Loan Documents are true on and as of the date
hereof with the same force and effect as if made on and as of the date hereof,
and no Default or Event of Default has occurred and is continuing; provided that
such representations and warranties contained in Section 4.6 of the Credit
Agreement shall be deemed made with respect to the most recent fiscal year-end
and interim financial statements, respectively, of the Parent Guarantor and its
Subsidiaries delivered pursuant to Section 5.1(d) of the Credit Agreement.

                         ARTICLE 3. CONDITIONS PRECEDENT

         The amendments set forth in Article 1 of this Amendment shall not
become effective until each of the following has been satisfied:

         3.1 This Amendment shall have been executed by a duly authorized
officer on behalf of the Company, and the acknowledgements at the end of this
Amendment shall have

                                      -12-
              [Third Amendment to Childtime Childcare, Inc. Second
                     Amended and Restated Credit Agreement]
<PAGE>
been executed by a duly authorized officer on behalf of each of the Guarantors
and executed by each of the Investors (whether by the Company as
attorney-in-fact for each of them or directly, as the case may be), in the
respective spaces so provided, and this Amendment shall have been delivered to
the Bank.

         3.2 The Investors and all other holders, if any, of the Initial
Subordinated Debt shall have acknowledged and agreed in writing for the benefit
of the Bank, in form and substance satisfactory to the Bank, that (a) they
approve the terms of this Amendment, (b) no interest on the Initial Subordinated
Debt may be paid except in accordance with subpart (4) of Section 5.2(g) of the
Credit Agreement as amended by this Amendment, and (c) the Subordination
Agreement made by each of them in favor of the Bank with respect to the Initial
Subordinated Debt continues in full force and effect, subject to the
modification contemplated by the foregoing clause (b), and none of them has any
defense, counterclaim or offset with respect thereto.

         3.2 The Company shall have paid (a) to the Bank a fee for this
Amendment in the amount of $50,000, which shall be deemed fully earned upon
receipt and nonrefundable and (b) to Dickinson Wright PLLC, counsel for the
Bank, all reasonable fees and expenses of Dickinson Wright PLLC in connection
with the Credit Agreement, including without limitation the Mortgage collateral
matters under Section 5.1(f) of the Credit Agreement, in connection with the
negotiation and preparation of this Amendment and the consummation of the
transactions contemplated hereby, and in connection with advising the Bank as to
its rights and responsibilities with respect thereto.

         3.3 Such other documents, and evidence of completion of such other
matters, as the Bank may reasonably request shall have been duly executed, if
applicable, and delivered to the Bank.

                                ARTICLE 4. WAIVER

         The Company and the Guarantors have informed the Bank that Events of
Default have occurred due to (1) breaches of Sections 5.2(c) and 5.2(d) of the
Credit Agreement as of the end of the Parent Guarantor's fiscal quarter ended on
or about October 11, 2002 (the "Subject Quarter End"), (2) breaches of Section
5.1(b) due to the Parent Guarantor's failure to file timely Form 8K with the
Securities and Exchange Commission (the "SEC") in connection with the Tutor Time
Property Purchase, subsequently to timely file with the SEC the related
financial statements and to timely file with the SEC the Parent Guarantor's Form
10Q for the Subject Quarter End, and (3) breaches of Section 5.1(d)(ii) and
Section 5.1(d)(iii) due to the failure to deliver timely the financial
statements and certificates of the chief financial officer required thereunder
for the Subject Quarter End and due to the failure to deliver timely the
financial statements and certificate of the chief financial officer required
under Section 5.1(d)(ii) for periods prior to the Subject Quarter End and for
subsequent periods through December 27, 2002 (all of the foregoing,
collectively, the "Known Defaults"), and the Company and the Guarantors have
requested that the Bank waive the Known Defaults subject to the terms and
conditions set forth herein. Pursuant to such request, upon the occurrence of
the Amendment Date, the Bank hereby waives the Known Defaults, provided that the
Bank is not waiving any other Defaults, Events of Default or other breaches of
Section 5.1(b), 5.1(d), 5.2(c) or 5.2(d) or any other provisions of the Credit

                                      -13-
              [Third Amendment to Childtime Childcare, Inc. Second
                     Amended and Restated Credit Agreement]
<PAGE>

Agreement. The Company and the Guarantors acknowledge and agree that the waiver
contained herein is a limited waiver, limited to the specific Known Defaults
described above and subject to the conditions described herein. Such limited
waiver (a) shall not waive any other term, covenant or agreement of the Credit
Agreement or any other Loan Document, (b) shall not be deemed to be a waiver of
any other term, covenant or agreement of the Credit Agreement or any other Loan
Document, and (c) shall not be deemed to prejudice any present or future right
or rights which the Bank now has or may have thereunder. Additionally, this
limited waiver shall not be deemed to waive any Event of Default, whether now
existing or hereafter existing, whether known, unknown or otherwise, except as
specifically set forth herein.

                            ARTICLE 5. MISCELLANEOUS

         5.1 The Company acknowledges and agrees that prompt and complete
compliance by the Company with all the requirements of Section 5.1(f) of the
Credit Agreement as amended by this Amendment is a material inducement to the
Bank to enter into this Amendment and any failure by the Company so to comply
shall constitute an immediate Event of Default under the Credit Agreement.
Further, if the Company shall fail to perform or observe any term, covenant or
agreement in this Amendment, or any representation or warranty made by the
Company in this Amendment shall prove to have been incorrect in any material
respect when made, such occurrence shall be deemed to constitute an Event of
Default.

         5.2 All references to the Credit Agreement in any other document,
instrument or certificate referred to in the Credit Agreement or delivered in
connection therewith or pursuant thereto hereafter shall be deemed references to
the Credit Agreement, as amended hereby

         5.3 The Company represents and warrants that it is aware of no claims
or causes of action against the Bank or any of its officers, directors,
employees or agents. Notwithstanding such representation and warranty, and as
further consideration for the agreements set forth in this Amendment, each of
the Company and the Guarantors, for itself and its successors and assigns,
releases the Bank, and its officers, directors, employees, agents, attorneys,
affiliates, subsidiaries, and successors and assigns, from any liability, claim,
right or cause of action which now exists or hereafter arises, whether known or
unknown, arising from or in any way related to facts in existence as of the date
hereof.

         5.4 Each party hereto, after consulting or having had the opportunity
to consult with counsel, knowingly, voluntarily, and intentionally waives any
right any of them may have to a trial by jury in any litigation based upon or
arising out of this Amendment, or any agreement referenced herein or other
related instrument or agreement, or any of the transactions contemplated by this
Amendment, or any course of conduct, dealing, statements (whether oral or
written) or actions of any of them. None of the parties hereto shall seek to
consolidate, by counterclaim or otherwise, any such action in which a jury trial
has been waived with any other action in which a jury trial cannot be or has not
been waived. These provisions shall not be deemed to have been modified in any
respect or relinquished by any party hereto except by a written instrument
executed by all of them.

                                      -14-
              [Third Amendment to Childtime Childcare, Inc. Second
                     Amended and Restated Credit Agreement]
<PAGE>

         5.5 This Amendment and the other agreements and documents executed in
connection with this Amendment constitute the entire understanding of the
parties with respect to the subject matter hereof. This Amendment is binding on
the parties hereto and their respective successors and assigns, and shall inure
to the benefit of the parties hereto and their respective successors and
assigns. If any of the provisions of this Amendment are in conflict with any
applicable statute or rule or law or otherwise unenforceable, such offending
provisions shall be null and void only to the extent of such conflict or
unenforceability, but shall be deemed separate from and shall not invalidate any
other provision of this Amendment.

         5.6 No course of dealing on the part of the Bank, nor any delay or
failure on the part of the Bank in exercising any right, power or privilege
hereunder shall operate as a waiver of such right, power or privilege or
otherwise prejudice the Bank's rights and remedies hereunder or under the Credit
Agreement, the Note, any Security Document, any other Loan Document or any other
agreement or instrument of the Company or any of the Guarantors with or in favor
of the Bank; nor shall any single or partial exercise thereof preclude any
further exercise thereof or the exercise of any other right, power or privilege.
No right or remedy conferred upon or reserved to the Bank under this Amendment
or under the Credit Agreement, the Note, any Security Document, any other Loan
Document or any other agreement or instrument of the Company or any Guarantor
with or in favor of the Bank is intended to be exclusive of any other right or
remedy, and every right and remedy shall be cumulative and in addition to every
other right or remedy granted thereunder or now or hereafter existing under any
applicable law. Every right and remedy granted by this Amendment or under the
Credit Agreement, the Note, any Security Document, any other Loan Document or
any other agreement or instrument of the Company or any Guarantor with or in
favor of the Bank or by applicable law to the Bank may be exercised from time to
time and as often as may be deemed expedient by the Bank.

         5.7 The Loan Documents and, subject to the amendments herein provided,
the Credit Agreement shall in all respects continue in full force and effect.

         5.8 Capitalized terms used but not defined herein shall have the
respective meanings ascribed thereto in the Credit Agreement.

         5.9 This Amendment shall be governed by and construed in accordance
with the laws of the State of Michigan.

         5.10 The Company agrees to pay the reasonable fees and expenses of
Dickinson Wright PLLC, counsel for the Bank, in connection with the negotiation
and preparation of this Amendment and the consummation of the transactions
contemplated hereby, and in connection with advising the Bank as to its rights
and responsibilities with respect thereto.

         5.11 This Amendment may be executed upon any number of counterparts
with the same effect as if the signatures thereto were upon the same instrument.

                                      -15-
              [Third Amendment to Childtime Childcare, Inc. Second
                     Amended and Restated Credit Agreement]
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed and delivered as of the day and year first-above written.

                                       CHILDTIME CHILDCARE, INC.

                                        By:/s/ Frank M. Jerneycic
                                           ---------------------------------

                                           Its: Chief Financial Officer
                                               -----------------------------

                                       BANK ONE, NA

                                       By: /s/ Richard C. Ellis
                                           ---------------------------------

                                           Its: Vice President
                                               -----------------------------

                                      -16-
              [Third Amendment to Childtime Childcare, Inc. Second
                     Amended and Restated Credit Agreement]

<PAGE>
                            GUARANTOR ACKNOWLEDGEMENT

         Each of the undersigned hereby acknowledges that it has reviewed and
fully consents to the foregoing Third Amendment to Amended and Restated Credit
Agreement (the "Amendment"), that the Guaranty Agreements and all other Loan
Documents made by each of the undersigned in favor of the Bank continue in full
force and each of the undersigned acknowledges and agrees that it has no
defenses, counterclaims or offsets with respect thereto. All references to the
Credit Agreement in the Guaranty Agreements and in all other Loan Documents or
any other document, instrument or certificate referred to in the Credit
Agreement or delivered in connection therewith or pursuant thereto, hereafter
shall be deemed references to the Credit Agreement, as amended by the Amendment.
Except as otherwise expressly set forth herein, capitalized terms used but not
defined herein shall have the respective meanings ascribed thereto in the
Amendment or the Credit Agreement, as the case may be.

                               CHILDTIME LEARNING CENTERS, INC.

                               By: /s/ Frank M. Jerneycic
                                  ------------------------------------

                                   Its: Chief Financial Officer
                                        ------------------------------

                               CHILDTIME CHILDCARE-PMC, INC.

                               By: /s/ Frank M. Jerneycic
                                  ------------------------------------

                                   Its: Chief Financial Officer
                                       -------------------------------

                               CHILDTIME CHILDCARE-MICHIGAN, INC.

                               By: /s/ Frank M. Jerneycic
                                  ------------------------------------

                                   Its: Chief Financial Officer
                                       -------------------------------

                               TUTOR TIME LEARNING CENTERS, LLC
                               (formerly known as TT Acquisition LLC)

                               By: /s/ Frank M. Jerneycic
                                  ------------------------------------

                                   Its: Chief Financial Officer
                                       -------------------------------

                                      -17-
              [Third Amendment to Childtime Childcare, Inc. Second
                     Amended and Restated Credit Agreement]

<PAGE>

                               TUTOR TIME INTERNATIONAL LEARNING
                               CENTERS, INC. (formerly known as CTT
                               Acquisition Corp.)

                               By:     /s/ Frank M. Jerneycic
                                   --------------------------------------

                                   Its: Chief Financial Officer
                                       ----------------------------------

                                      -18-
              [Third Amendment to Childtime Childcare, Inc. Second
                     Amended and Restated Credit Agreement]
<PAGE>
                SUBORDINATED LENDER ACKNOWLEDGEMENT AND AGREEMENT

         As of the date first set forth above, each of the undersigned
subordinated lenders (the "Investors") party to the Subordination Agreement
dated as of July 19, 2002 among Bank One, NA, as agent, the undersigned, and the
Company (the "Subordination Agreement") hereby acknowledges and agrees that such
Investor has reviewed and fully consents to the foregoing Third Amendment to
Amended and Restated Credit Agreement (the "Amendment"), and that, subject to
the next following sentence, the Subordination Agreement continues in full force
and effect, and each of the undersigned acknowledges and agrees that, as of the
date hereof, it has no defenses, counterclaims or offsets with respect thereto.
Each of the undersigned Investors agrees that, notwithstanding anything to the
contrary in the Subordination Agreement or the Subordinated Lending Agreements
(as defined in the Subordination Agreement), no Interest on the Initial
Subordinated Debt may be paid, nor shall the Investors accept any such Interest,
except in accordance with the terms and requirements of subpart (4) of Section
5.2(g) of the Credit Agreement as amended by this Amendment, and Section 2.2(a)
of the Subordination Agreement hereby shall be deemed amended accordingly. All
references to the Credit Agreement in the Subordination Agreement or in the
Subordinated Notes or any other Subordinated Lending Agreements (as such terms
are defined in the Subordination Agreement) hereafter shall be deemed references
to the Credit Agreement, as amended by the Amendment. Except as otherwise
expressly set forth herein, capitalized terms used but not defined herein shall
have the respective meanings ascribed thereto in the Amendment or the Credit
Agreement, as the case may be.

                                        JP Acquisition Fund II, L.P.
                                        By: JPAF Limited Partnership
                                                  Its General Partner
                                                  By:    JPAF, Inc.
                                                  Its General Partner

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

                                        JP Acquisition Fund III, L.P.
                                        By: JPAF III LLC
                                            Its General Partner
                                            By:   Jacobson Partners
                                                  Its Sole Member

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

                                        /s/ Benjamin R. Jacobson
                                        ------------------------------------
                                        Benjamin R. Jacobson

                                      -19-
              [Third Amendment to Childtime Childcare, Inc. Second
                     Amended and Restated Credit Agreement]
<PAGE>
                              Each of the Subordinated Lenders (as defined in
                              the Subordination Agreement) identified on
                              Schedule A attached hereto (other than Benjamin R.
                              Jacobson, JP Acquisition Fund II, L.P. and JP
                              Acquisition Fund III, L.P.) by CHILDTIME
                              CHILDCARE, INC., as attorney-in-fact for each of
                              them

                              By: Frank M. Jerneycic
                                 ----------------------------------------------
                                 Its: Chief Financial Officer
                                     ------------------------------------------

Accepted and agreed:

CHILDTIME CHILDCARE, INC.

By:     /s/ Frank M. Jerneycic
   ---------------------------
   Its: Chief Financial Officer
       ------------------------
Date: February 17, 2003
      -----------------
BANK ONE, NA

By: Richard C. Ellis
   ----------------------------
   Its: Vice President
       ------------------------
Date: February 17, 2003
     --------------------------

                                      -20-
              [Third Amendment to Childtime Childcare, Inc. Second
                     Amended and Restated Credit Agreement]
<PAGE>
                                   SCHEDULE A

                              Subordinated Lenders

Amcito Partners, L.P.
Raymond P. Barbrick
Barcam Holdings, Inc.
Allan Chan
Silvia Cocozza
John Dickerson and Beverly Dickerson, JTWROS
Edmund Gaffney
Nathan Gantcher
Jamie L. Goldberg
D. M. Harlan, Jr.
Christopher D. Heinz
Harrison R. Horan
HVS Boxers LLC
Benjamin R. Jacobson
Sara K. Jacobson Trust, Michael Fuchs, Trustee
JP Acquisition Fund II, L.P.
JP Acquisition Fund III, L.P.
Virginia Juliano
Nicolas Karlson Trust, Michael Fuchs, Trustee
George A. Kellner
James J. Morgan
QFG Ventures, L.P.
Gerald L. Parsky
Maria and Gaetano Ruvio, JTWROS
Shazeen Sacranie and Gail R. Sacranie, JTWROS
Kurt Schnaubelt
Timothy E. Whelan

                                      -21-
              [Third Amendment to Childtime Childcare, Inc. Second
                     Amended and Restated Credit Agreement]

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