Document:

<PAGE>   1
                   AMENDMENT TO PLEDGE AND SECURITY AGREEMENT

         This Agreement is made the 16th day of October, 2000, by and among
Great Lakes of Michigan, LLC, a Minnesota limited liability company ("Great
Lakes"), Lakes Gaming, Inc., a Minnesota corporation ("Lakes"), and the Pokagon
Band of Potawatomi Indians (the "Band").

                              W I T N E S S E T H:

         WHEREAS, the Band and Lakes have entered into a Development Agreement
dated as of July 8, 1999 (the "Development Agreement") and a Management
Agreement dated as of July 8, 1999 (the "Management Agreement"; collectively,
with the Development Agreement, the "Agreements"), pursuant to which the Band
has engaged Lakes to, among other things, assist the Band in the design,
development, construction and management of a gambling casino and certain
related amenities (as defined in the Development Agreement, the "Facility"); and

         WHEREAS, pursuant to the Development Agreement Lakes has agreed to make
certain payments and advances to the Band, including without limitation the
Transition Loan, the Lakes Development Loan and the Non-Gaming Land Acquisition
Line of Credit (collectively the "Lakes Loans"), and the Scholarship Program
Fee, and has agreed to perform development services with regard to the Facility,
all on the terms set out in that Agreement; and

         WHEREAS, pursuant to the Management Agreement Lakes has agreed to
manage the Facility on the terms set out in that Agreement; and

         WHEREAS, the obligations of Lakes to the Band are secured by a Pledge
and Security Agreement between Lakes and the Band (the "Pledge Agreement") and
by an Account Control Agreement among Lakes, the Band and Firstar Bank, N.A.,
f/k/a Firstar Bank of Minnesota, N.A. (the "Control Agreement"), each dated as
of July 8, 1999; and

         WHEREAS, Lakes has informed the Band that it wishes to restructure its
corporate organization by forming a first tier subsidiary, Lakes Gaming and
Resorts, LLC, a Minnesota limited liability company ("LG&R"), to own the equity
in second-tier subsidiaries, including Great Lakes, that will be engaged in
gaming and gaming-related businesses (the "Restructuring"); and

         WHEREAS, in connection with such restructuring Lakes has requested that
the Band consent to the assignment to Great Lakes of (i) Lakes' rights and
obligations

<PAGE>   2

under the Agreements, the Lakes Loans and all related documentation (the
"Obligations") , and (ii) the Account and related cash, financial assets and
investment property, as defined in the Control Agreement, subject to the
continuing first perfected security interest of the Band; and

         WHEREAS, Lakes and LG&R have agreed, as a condition to the Band's
consent, to unconditionally guaranty the Obligations, as assumed by Great Lakes,
including without limitation the obligations of Great Lakes under the Pledge
Agreement and the Control Agreement; and

         WHEREAS, it is the intent of the parties that the restructuring not
affect or impair the Band's rights and remedies under the Obligations or the
Band's first perfected security interest in the Account, other than the
conversion of Lakes from primary obligor to unlimited guarantor;

         WHEREAS, under the Agreements Lakes cannot carry out such restructuring
without the Band's consent; and

         WHEREAS, the Band is willing to so consent, but only on the terms and
conditions set out in this Agreement and in a certain Assignment and Assumption
Agreement of near or even date among the Band, Lakes, Great Lakes and LG&R (the
"Assignment Agreement");

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

1.   Recitals True. The above recitals are true.

2.   Defined Terms. Capitalized terms used but not otherwise defined herein and
     defined in the Pledge Agreement shall have the same meaning herein as
     therein.

3.   Assignment of Account. Lakes represents to the Band that it has, pursuant
     to the Assignment Agreement, assigned and transferred to Great Lakes all
     rights of Lakes in and to the Account and all cash, financial assets and
     investment property credited to the Account, subject to the first perfected
     security interest of the Band.

4.   Acceptance of Assignment. Great Lakes accepts the assignment of the Account
     and all related cash, financial assets and investment property, and agrees
     to perform and discharge Lakes' obligations under the Pledge

<PAGE>   3

     Agreement in accordance with the terms thereof as if Great Lakes had
     originally been a party thereto. The liabilities so assumed by Great Lakes
     include any obligations or liabilities of Lakes which have accrued under
     the Pledge Agreement as of the date hereof, as well as those subsequently
     accruing. Great Lakes recognizes and agrees that the Account and all cash,
     financial assets and investment property credited to the Account are and
     shall remain subject to the first perfected security interest of the Band
     in accordance with the Pledge Agreement and the Account Control Agreement.

5.   Amendment to Pledge Agreement. The Pledge Agreement is amended as follows:

     a.   All references in the Pledge Agreement to Lakes (other than in the
          recitals) or to Pledgor shall be deemed to refer to each of Lakes and
          Great Lakes.

     b.   S. Eric Marshall is deleted from the list of persons to whom copies of
          notices to the Band must be given.

     c.   The definition of "Secured Obligations" in ss.1(a) of the Pledge
          Agreement is amended so that it reads in its entirety as follows:

                "'Secured Obligations' includes (i) the obligations of Great
                Lakes and Lakes to the Band under or relating to the Agreements,
                and (ii) the obligations of Lakes and LG&R under their Guaranty
                to the Band dated October 16, 2000."

     d.   The following person is added as a person to whom copies of notices to
          Great Lakes must be given:

          Brian J. Klein, Esq.
          Mason Edelman Borman & Brand, LLP
          3300 Norwest Center
          90 South Seventh Street
          Minneapolis, MN 55402-4140

6.   Reservation of Rights. The Band expressly reserves all rights against
     Lakes under the Pledge Agreement.

7.   Warranties and Representations. Each of Great Lakes and Lakes
     warrants, represents and covenants to the Band that:

<PAGE>   4

         a.   The Agreement and the Pledge Agreement each constitute the legal,
              valid and binding obligation of Great Lakes and Lakes, and are
              fully enforceable in accordance with their terms; and

         b.   Neither the execution or delivery of this Agreement nor
              fulfillment of or compliance with the terms and provisions hereof
              will conflict with, or result in a breach of the terms,
              conditions or provisions of, constitute a default under or result
              in the creation of any lien, charge or encumbrance upon any
              property or assets of Lakes or Great Lakes under any agreement or
              instrument to which they or either of them is now a party or by
              which they may be bound; and

         c.   The Band has, and at all times until the termination of the
              Control Agreement in accordance with ss. 8 thereof shall have, a
              first perfected security interest in the Account and all cash,
              financial assets and investment property credited to the Account.

     8.   Further Assurances. From time to time hereafter, Lakes, Great Lakes
          and/or the Band will execute and deliver, or will cause to be executed
          and delivered, such additional instruments, certificates or documents,
          and will take all such actions, as may reasonably be requested by the
          other party or parties, for the purpose of implementing or
          effectuating the provisions of this Agreement.

     9.   Governing Law. This Agreement shall be interpreted in accordance with
          the law of the internal law of Minnesota.

     10.  Amendments, Assignments, Etc. Any provision of this Agreement may be
          amended if, but only if, such amendment is in writing and is signed by
          each of the parties hereto. No modification shall be implied from
          course of conduct. Great Lakes may not further assign its rights in
          the Account and its obligations under the Control Agreement without
          the written consent of the Band.

     11.  Gender and Number; Counterparts. Whenever the context so requires the
          masculine gender shall include the feminine and/or neuter and the
          singular number shall include the plural, and conversely in each case.
          This Agreement may be executed in separate counterparts and said
          counterparts shall be deemed to constitute one binding document.

     12.  Notices to Great Lakes. Great Lakes agrees that any notice or demand
          upon it shall be deemed to be sufficiently given or served if it is in
          writing and is personally served or in lieu of personal service is
          mailed by first class certified mail, postage prepaid, or be overnight
          mail or courier service, addressed to

<PAGE>   5

          Great Lakes at the address of Lakes and with copies set forth in ss. 8
          of the Pledge Agreement.

     13.  Arbitration; Limited Waiver of Sovereign Immunity. Any disputes under
          this Agreement shall be subject to arbitration as provided in ss.14.2
          of the Development Agreement; provided that any demand for arbitration
          shall be made within 30 days after a notice of default, denominated as
          such, is given under this Agreement. The Band's limited waiver of
          sovereign immunity in ss.ss. 14.1 and 14.3 of the Development
          Agreement shall apply to this Agreement; provided that the liability
          of the Band under any judgment shall always be Limited Recourse, and
          in no instance shall any enforcement of any kind whatsoever be allowed
          against any assets of the Band other than the limited assets of the
          Band specified in Section 14.3(i) of the Development Agreement.

     14.  Ratification. Except as expressly modified in this Agreement, the
          Pledge Agreement is ratified and confirmed.

     15.  Interpretation. This Agreement, the related amendments to the
          Agreements and to the Control Agreement (the "Amendments") and the
          Obligations shall be interpreted in favor of the Band so as to ensure
          for the Band the full benefit of its rights, powers and remedies under
          the Obligations notwithstanding the Restructuring, this Agreement and
          the Amendments; and to fully implement the intent of the parties that
          the Restructuring, this Agreement and the Amendments not affect or
          impair the Band's rights, powers and remedies under the Obligations,
          other than the conversion of Lakes from primary obligor to unlimited
          guarantor, or the Band's continuing first security interest in the
          Account.

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed as of the 16th day of October, 2000

WITNESS:
                                   GREAT LAKES OF MICHIGAN, LLC

                                          BY:
                                             ------------------------------
                                          NAME: Timothy J. Cope
                                          ITS: Chief Financial Officer

                                   LAKES GAMING, INC.

                                          BY:
                                             ------------------------------
                                          NAME:  Timothy J. Cope
                                          ITS: Chief Financial Officer

<PAGE>   6

                                    THE POKAGON BAND OF POTAWATOMI
                                    INDIANS

                                         BY:
                                            ------------------------------

                                         NAME: ---------------------------
                                         ITS: Council Chairman

                                         BY:
                                            ------------------------------

                                         NAME: ---------------------------
                                         ITS: Secretary

Seen and consented to:

                                    LAKES GAMING AND RESORTS, LLC

                                         BY:
                                            ------------------------------
                                         NAME:  Timothy J. Cope
                                         ITS: Chief Financial Officer<PAGE>   1

                                   EXHIBIT 4.1
                      FOURTH AMENDMENT TO CREDIT AGREEMENT

                      FOURTH AMENDMENT TO CREDIT AGREEMENT

         THIS FOURTH AMENDMENT TO CREDIT AGREEMENT, dated as of July 21, 2000
(this "Amendment"), is by and between CHILDTIME CHILDCARE, INC., an Illinois
corporation (the "Company"), and BANK ONE, MICHIGAN, a Michigan banking
corporation f/k/a NBD Bank (the "Bank").

                                  INTRODUCTION

         A. The Company and the Bank have entered into the Credit Agreement,
dated as of February 1, 1996, as amended by letter agreements dated April 1,
1999, May 18, 1999 and May 30, 2000 and by the Third Amendment to Credit
Agreement dated as of December 6, 1999 (as amended, the "Credit Agreement"),
pursuant to which the Bank provides to the Company a revolving credit facility
in an aggregate principal amount not to exceed $7,500,000.

         B. The Company has requested the Bank to increase the aggregate
principal amount of such credit facility to $10,000,000 and otherwise to modify
the terms of the Credit Agreement in certain respects, and the Bank is willing
to so amend the Credit Agreement on the terms and conditions herein set forth.

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

                1.1   The first paragraph after the heading "INTRODUCTION" on
the first page of the Credit Agreement is amended and restated in its entirety
as follows:

                   The Company desires to obtain a revolving credit facility,
                   including letters of credit, in the aggregate principal
                   amount of $10,000,000, in order to provide funds and other
                   financial accommodations for working capital and the
                   Company's other general corporate purposes, and the Bank is
                   willing to establish such a credit facility in favor of the
                   Company on the terms and conditions herein set forth.

                1.2   The definition of the term "Commitment" in Section 1.1 of
the Credit Agreement is amended by deleting the dollar amount "$10,000,000" and
inserting in its place the dollar amount "$7,500,000".

                1.3   Each reference in the Credit Agreement, including without
limitation in the definition of the term "Determination Period" in Section 1.1,
to the terms "Activated Credit

                                                                         E-1-
<PAGE>   2

                                   EXHIBIT 4.1
                      FOURTH AMENDMENT TO CREDIT AGREEMENT

Commitment Fee Rate" and "Unactivated Credit Commitment Fee Rate" is deleted,
and the single term "Commitment Fee Rate" is inserted in place thereof in each
such place.

                1.4   Subparts (a) and (b) of Section 2.3 are amended and
restated in their entirety as follows:

                      (a) The Company agrees to pay to the Bank a commitment fee
                  on the daily average unused amount of the Commitment during
                  any calendar quarter, for the period from the Effective Date
                  to but excluding the Termination Date, at a rate equal to the
                  percentage set forth below under the heading "Commitment Fee
                  Rate" in the row corresponding to the Consolidated Fixed
                  Charge Coverage Ratio of the Parent Guarantor and its
                  Subsidiaries for the applicable Determination Period:

                       Consolidated Fixed
                      Charge Coverage Ratio                  Commitment Fee Rate
                      ---------------------                  -------------------
                  Less than or equal to 1.75 to 1.00               0.375%

                  Greater than 1.75 to 1.00 but not
                  greater than 2.00 to 1.00                        0.300%

                  Greater than 2.00 to 1.00 but not
                  greater than 2.25 to 1.00                        0.300%

                  Greater than 2.25 to 1.00 but not
                  greater than 2.50 to 1.00                        0.250%

                  Greater than 2.50 to 1.00                        0.250%

                  Accrued commitment fees shall be payable quarterly in arrears
                  on the last Business Day of each March, June, September and
                  December, commencing on the first such Business Day occurring
                  after the Effective Date, and on the Termination Date.

                      (b)   [intentionally omitted]

               1.5    Exhibit B attached to the Credit Agreement is deleted in
its entirety and Exhibit B attached to this Amendment (there is no Exhibit A to
this Amendment) shall be deemed substituted in place thereof. The Company shall
execute and deliver to the Bank a Note in the form of Exhibit B attached to this
Amendment (the "Replacement Note") to be exchanged for the existing Note issued
by the Company to the Bank under the Credit Agreement (the "Existing Note"). On
the Amendment Date, the principal balance of the Existing Note, as well as all
other information which has been endorsed on the books and records of the Bank
with respect to the Existing Note, shall be endorsed on the books and records of
the Bank with respect to the Replacement Note. The execution and delivery by the
Company of the Replacement Note

                                                                            E-2-
<PAGE>   3

                                   EXHIBIT 4.1
                      FOURTH AMENDMENT TO CREDIT AGREEMENT

shall not in any circumstances be deemed a novation or to have terminated,
extinguished or discharged the Company's indebtedness evidenced by the Existing
Note, all of which indebtedness shall continue under and be evidenced and
governed by the Replacement Note and the Credit Agreement, as amended, and the
Bank shall be entitled to all the benefits of the Loan Documents with respect to
the indebtedness evidenced by the Replacement Note.

                    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 and the Replacement Note 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, and the Replacement Note when delivered
hereunder will be, legal, valid and binding obligations of the Company,
enforceable against the Company in accordance with their respective 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, the Replacement Note or
the transactions contemplated hereby or as a condition to the legality, validity
or enforceability of this Amendment or the Replacement Note.

               2.4    After giving effect to the amendments contained in
Article 1 of this Amendment, the representations and warranties contained in
Article V 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.

               2.5    No Default or Unmatured Default has occurred and is
continuing.

                         ARTICLE 3. CONDITIONS PRECEDENT

               As conditions precedent to the effectiveness of the amendments to
the Credit Agreement set forth in Article 1 of this Amendment, the Bank shall
receive the following documents and the following matters shall be completed,
all in form and substance satisfactory to the Bank, unless waived by the Bank:

                                                                            E-3-
<PAGE>   4

                                   EXHIBIT 4.1
                      FOURTH AMENDMENT TO CREDIT AGREEMENT

                3.1   The Replacement Note duly executed on behalf of the
Company.

                3.2   Certified copies of the resolutions of the board of
directors of the Company authorizing the Company's execution, delivery and
performance of this Amendment, the Replacement Note and the transactions
contemplated hereby.

                3.3   Such other documents and agreements reasonably requested
by the Bank.

                            ARTICLE 4. MISCELLANEOUS

               4.1    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 a
Default.

               4.2    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. All references to the
Existing Note in the Credit Agreement 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
Replacement Note.

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

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

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

               4.6    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.

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

                [The rest of this page intentionally left blank.]

                                                                            E-4-
<PAGE>   5

                                   EXHIBIT 4.1
                      FOURTH AMENDMENT TO CREDIT AGREEMENT

              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:     Michael M. Yeager
                                         ---------------------------------------

                                              Its:     CFO
                                                  ------------------------------

                                      BANK ONE, MICHIGAN

                                      By:     Thomas A. Gamm
                                         ---------------------------------------

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

                            GUARANTOR ACKNOWLEDGEMENT

         The undersigned hereby acknowledges that it has reviewed and fully
consents to the foregoing Fourth Amendment to Credit Agreement (the "Fourth
Amendment"), that the Irrevocable Guaranty Agreement dated as of February 1,
1996 made by the undersigned in favor of the Bank continues in full force and
effect to secure, among other things, all indebtedness, obligations and
liabilities of Childtime Childcare, Inc. under the Credit Agreement, as amended
by the Fourth Amendment, and acknowledges and agrees that it has no defenses,
counterclaims or offsets with respect thereof. All references to the Credit
Agreement in any Loan Document 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 Fourth Amendment. All references to the Existing Note in any
Loan Document or any other document, instrument or certificate referred to
therein or delivered in connection therewith or pursuant thereto, hereafter
shall be deemed references to the Replacement Note. Except as otherwise
expressly set forth herein, capitalized terms used but not defined herein shall
have the respective meanings ascribed thereto in the Fourth Amendment or the
Credit Agreement, as the case may be.

                                      CHILDTIME LEARNING CENTERS, INC.

                                      By: Michael M. Yeager
                                         ---------------------------------------

                                      Its:     CFO
                                          --------------------------------------

                                                                            E-5-

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