Document:

Exhibit 10.1

Exhibit 10.1

EXECUTIVE EMPLOYMENT AGREEMENT

(Chief Information Officer)

This Executive Employment Agreement (the “Agreement”) is entered into on September 16th,
2009, by and between Grand Canyon Education, Inc., a Delaware corporation (the “Company”),
and Joseph N. Mildenhall (“Executive”).

The parties agree as follows:

1. Employment. The Company hereby employs Executive, and Executive hereby accepts
such employment, upon the terms and conditions set forth herein.

2. Duties.

2.1 Position. Executive is employed as Chief Information Officer and shall have the
duties and responsibilities assigned by the Company’s Chief Executive Officer (“CEO”) both
upon initial hire and as may be reasonably assigned from time to time. Executive shall perform
faithfully and diligently all duties assigned to Executive. The Company reserves the right to
modify Executive’s position and duties at any time in its sole and absolute discretion, except that
any material diminution in Executive’s duties shall be subject to Section 6.3(b) below.

2.2 Best Efforts/Full-time. Executive will expend Executive’s best efforts on behalf
of the Company, and will abide by all policies and decisions made by the Company, as well as all
applicable federal, state and local laws, regulations or ordinances. Executive will act in the
best interest of the Company at all times. Executive shall devote Executive’s full business time
and efforts to the performance of Executive’s assigned duties for the Company, unless Executive
notifies the CEO in advance of Executive’s intent to engage in other paid work and receives the
CEO’s express written consent to do so. Notwithstanding the foregoing, Executive will be permitted
to serve as an outside director on the board of directors for corporate, civic, nonprofit or
charitable entities, so long as Executive obtains the consent of the Company and provided such
entities are not competitive with the Company and subject to the provisions of section 9 below.

2.3 Work Location. Executive’s principal place of work shall be located in Phoenix,
Arizona, or such other location as the Company may direct from time to time.

3. Term.

3.1 Initial Term. The employment relationship pursuant to this Agreement shall be for
an initial term commencing on September 16, 2009 (the “Effective Date”) and continuing for
a period of three (3) years following such date (“Initial Term”), unless sooner terminated
in accordance with Section 6 below.

3.2 Renewal. On expiration of the Initial Term specified in Section 3.1 above, this
Agreement will automatically renew for subsequent one (1) year terms (each a “Renewal
Term”) unless either party provides thirty (30) days’ advance written notice to the other that
the Company or Executive does not wish to renew the Agreement for a subsequent Renewal Term. In the event either party gives notice of nonrenewal pursuant to this Section 3.2, this
Agreement will expire at the end of the then current term. The Initial Term and each subsequent
Renewal Term are referred to collectively as the “Term”.

 

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4. Compensation.

4.1 Base Salary. As compensation for Executive’s performance of Executive’s duties
hereunder, the Company shall pay to Executive an initial Base Salary at the rate of Three Hundred
Thousand Dollars ($300,000.00) per year payable in accordance with the normal payroll practices of
the Company, less required deductions for state and federal withholding tax, social security and
all other employment taxes and payroll deductions. In the event Executive’s employment under this
Agreement is terminated by either party, for any reason, Executive will earn the Base Salary
prorated to the date of termination, except as otherwise set forth herein. Executive’s Base Salary
shall be reviewed annually by the Compensation Committee of the Company’s Board of Directors (the
“Compensation Committee”).

4.2 Incentive Compensation. For the fiscal year of the Company ending December 31,
2009, and provided Executive remains employed with the Company as of such date, Executive will be
eligible to receive a pro-rata share of his target bonus as is explained below. Thereafter,
Executive will be eligible to earn incentive compensation in the form of an annual bonus for each
fiscal year of the Company with a target amount of fifty percent (50%) of Executive’s Base Salary.
The Compensation Committee will determine the actual amount of the bonus earned for any year, which
will be based upon both the Company’s achievement of overall performance metrics for the year and
Executive’s achievement of individual performance metrics as agreed upon by the Compensation
Committee and the Executive. The Compensation Committee may, in its sole discretion, increase the
Executive’s annual bonus above fifty percent (50%) of Base Salary if it determines that the
performance of both the Executive and the Company significantly exceed the predetermined metrics.
Bonus amounts, if any, are to be awarded annually and payment shall be made within two and one-half
months following the end of the applicable Company fiscal year.

4.3 Stock Options. Upon approval by the Compensation Committee, Executive will be
granted, upon Executive’s commencement of employment hereunder, a nonstatutory stock option (the
“Option”) to purchase 75,000 shares of the Company’s common stock, par value $0.01 per
share (“Common Stock”), under the Company’s 2008 Equity Incentive Plan (the “Plan”)
at an exercise price per share equal to the fair market value of such Common Stock on the date of
grant, as provided in the Plan. Subject to Executive’s continued employment, the Option will vest
and become exercisable in five equal annual installments (each, an “Annual Installment”)
over a five (5) year period beginning on the grant date. The Option will be subject to the terms
and conditions of the Plan and a form of stock option agreement specified by the Compensation
Committee, which Executive will be required to sign as a condition of retaining the Option.
Executive may be eligible for future grants at the sole discretion of the Compensation Committee.

4.4 Customary Fringe Benefits. Executive will be eligible for all customary and usual
fringe benefits generally available to senior management of the Company, subject to the terms and
conditions of the Company’s benefit plan documents. The Company reserves the right to change or
eliminate fringe benefits on a prospective basis, at any time, effective upon notice to Executive.

 

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5. Business Expenses. Executive will be reimbursed for all reasonable, out-of-pocket
business expenses incurred in the performance of Executive’s duties on behalf of the Company. To
obtain reimbursement, expenses must be submitted promptly with appropriate supporting documentation
and will be reimbursed in accordance with the Company’s policies. Any reimbursement Executive is
entitled to receive shall (a) be paid no later than the last day of Executive’s tax year following
the tax year in which the expense was incurred, (b) not be affected by any other expenses that are
eligible for reimbursement in any tax year, and (c) not be subject to liquidation or exchange for
another benefit.

6. Termination of Executive’s Employment.

6.1 Termination for Cause by Company. Although the Company anticipates a mutually
rewarding employment relationship with Executive, the Company may terminate Executive’s employment
immediately at any time for Cause. For purposes of this Agreement, “Cause” is defined as:
(a) acts or omissions constituting gross negligence, recklessness or willful misconduct on the part
of Executive with respect to Executive’s obligations or otherwise relating to the business of the
Company; (b) Executive’s material breach of this Agreement, including, without limitation, any
breach of Section 8, Section 9, or Section 10; (c) Executive’s breach of the Company’s Employee
Nondisclosure and Assignment Agreement; (d) Executive’s conviction or entry of a plea of nolo
contendere for fraud, misappropriation or embezzlement, or any felony or crime of moral turpitude;
(e) Executive’s inability to perform the essential functions of Executive’s position, with or
without reasonable accommodation, due to a mental or physical disability; (f) Executive’s willful
neglect of duties as determined in the sole and exclusive discretion of the Board of Directors,
provided that Executive has received written notice of the action or omission giving rise to such
determination and has failed to remedy such situation to the satisfaction of the Board of Directors
within thirty (30) days following receipt of such written notice, unless Executive’s action or
omission is not subject to cure, in which case no such notice shall be required, or (g) Executive’s
death. In the event Executive’s employment is terminated in accordance with this Section 6.1,
Executive shall be entitled to receive only Executive’s Base Salary then in effect, prorated to the
date of termination, and all fringe benefits through the date of termination. All other Company
obligations to Executive pursuant to this Agreement will be automatically terminated and completely
extinguished. Executive will not be entitled to receive the Severance Package described in Section
6.2 below, but will be subject to the surviving provisions of this Agreement set forth in Section
13.8 below.

6.2 Termination Without Cause by Company/Severance. The Company may terminate
Executive’s employment under this Agreement without Cause at any time upon written notice to
Executive. In the event of such termination, Executive will receive Executive’s Base Salary then
in effect, prorated to the date of termination of employment. In addition, Executive will receive
a “Severance Package” that shall include (a) a severance payment equivalent to twelve (12)
months of Executive’s Base Salary then in effect on the date of termination, payable in accordance
with the Company’s regular payroll cycle commencing with the first payroll date occurring on or
after the 60th day following the date of Executive’s termination of employment, (b) payment by the
Company of the premiums required to continue Executive’s group health care coverage for a period of
twelve (12) months following Executive’s termination, under the applicable provisions of the
Consolidated Omnibus Budget Reconciliation Act (“COBRA”), provided that Executive timely
elects to continue and remains eligible for these benefits under COBRA, and does not become
eligible for health coverage through another employer during this period, and (c) acceleration of
the vesting of the Annual Installment under the Option that would otherwise have vested on the next
vesting date following the termination of Executive’s employment. Executive will only receive the
Severance Package if Executive: (i) complies with all surviving provisions of this Agreement as specified in Section 13.8 below;
and (ii) executes a full general release, releasing all claims, known or unknown, that Executive
may have against the Company arising out of or any way related to Executive’s employment or
termination of employment with the Company, and such release has become effective in accordance
with its terms prior to the 60th day following the termination date. All other Company obligations
to Executive will be automatically terminated and completely extinguished.

 

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6.3 Voluntary Resignation by Executive for Good Reason/Severance. Executive may
voluntarily resign Executive’s position with the Company for Good Reason at any time on thirty (30)
days’ advance written notice to the Company. In the event of Executive’s resignation for Good
Reason, Executive will be entitled to receive Executive’s Base Salary then in effect, prorated to
the date of termination of employment, and the Severance Package described in Section 6.2 above,
provided Executive complies with all of the conditions described in Section 6.2 above. All other
Company obligations to Executive pursuant to this Agreement will be automatically terminated and
completely extinguished. Executive will be deemed to have resigned for Good Reason if Executive
voluntarily terminates his employment with the Company within ninety (90) days following the first
occurrence of a condition constituting Good Reason. “Good Reason” means the occurrence of
any of the following conditions without Executive’s written consent, which condition(s) remain(s)
in effect thirty (30) days after Executive provides written notice to the Company of such
condition(s): (a) a material reduction in Executive’s Base Salary as then in effect prior to such
reduction, other than as part of a salary reduction program among similar management employees, (b)
a material diminution in Executive’s authority, duties or responsibilities as an employee of the
Company as they existed prior to such change, or (c) a relocation of Executive’s principal place of
work which increases Executive’s one-way commute distance by more than fifty (50) miles. Executive
will be deemed to have given consent to any condition(s) described in this Section if Executive
does not provide written notice to the Company of his intent to exercise his rights pursuant to
this Section within thirty (30) days following the first occurrence of such condition(s).

6.4 Voluntary Resignation by Executive Without Good Reason. Executive may voluntarily
resign Executive’s position with the Company without Good Reason at any time on thirty (30) days’
advance written notice to the Company. In the event of Executive’s resignation without Good
Reason, Executive will be entitled to receive only Executive’s Base Salary, prorated to the date of
termination of employment, and all fringe benefits through the date of termination. All other
Company obligations to Executive pursuant to this Agreement will be automatically terminated and
completely extinguished. In addition, Executive will not be entitled to receive the Severance
Package described in Section 6.2 above, but will be subject to the surviving provisions of this
Agreement set forth in Section 13.8 below.

6.5 Termination After a Change in Control.

(a) Severance Payment; Option Vesting Acceleration. If, upon or within twelve (12)
months after a Change in Control (as that term is defined below), Executive’s employment is
terminated by the Company other than for Cause (as defined in Section 6.1 above) or Executive
resigns for Good Reason (as defined in Section 6.3 above), then (i) Executive shall be entitled to
receive (A) Executive’s Base Salary, prorated to the date of termination of employment, and (B) the
Severance Package described in Section 6.2 above, provided Executive complies with all of the
conditions described in Section 6.2 above, and (ii) to the extent not yet vested, the Option and
any other stock options granted to Executive by the Company shall vest in full as of the date of
such termination of employment, provided Executive complies with the conditions described in
Section 6.2 above.

 

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(b) Parachute Payments. If, due to the benefits provided under Section 6.5(a) and any
other payments or benefits, Executive would be subject to any excise tax pursuant to Section 4999
of the Internal Revenue Code of 1986, as amended (the “Code”) due to characterization of
any such amounts as excess parachute payments pursuant to Section 280G of the Code, the amounts
payable under Section 6.5(a) will be reduced (to the least extent possible) in order to avoid any
“excess parachute payment” under Section 280G(b)(1) of the Code.

(c) Change in Control. A Change in Control is defined as any one of the following
occurrences:

(i) Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934 (the “Exchange Act”)), becomes the “beneficial owner” (as such term is defined
in Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of the
Company representing more than fifty percent (50%) of the total fair market value or total combined
voting power of the Company’s then-outstanding securities entitled to vote generally in the
election of directors; provided, however, that a Change in Control shall not be deemed to have
occurred if such degree of beneficial ownership results from any of the following: (A) an
acquisition of securities by any person who on the Effective Date is the beneficial owner of more
than fifty percent (50%) of such voting power, (B) any acquisition of securities directly from the
Company, including, without limitation, pursuant to or in connection with a public offering of
securities, (C) any acquisition of securities by the Company, (D) any acquisition of securities by
a trustee or other fiduciary under an employee benefit plan of the Company, or (E) any acquisition
of securities by an entity owned directly or indirectly by the stockholders of the Company in
substantially the same proportions as their ownership of the voting securities of the Company; or

(ii) the sale or disposition of all or substantially all of the Company’s assets (other than a
sale or disposition to one or more subsidiaries of the Company), or any transaction having similar
effect is consummated; or

(iii) the Company is party to a merger or consolidation that results in the holders of voting
securities of the Company outstanding immediately prior thereto failing to continue to represent
(either by remaining outstanding or by being converted into voting securities of the surviving
entity) more than 50% of the combined voting power of the voting securities of the Company or such
surviving entity outstanding immediately after such merger or consolidation; or

(iv) the dissolution or liquidation of the Company.

6.6 Termination of Employment Upon Nonrenewal. In the event either party decides not
to renew this Agreement for a subsequent term in accordance with Section 3.2 above, this Agreement
will expire, Executive’s employment with the Company will terminate and Executive will only be
entitled to Executive’s Base Salary then in effect paid through the last day of the then current
term. All other Company obligations to Executive pursuant to this Agreement will be automatically
terminated and completely extinguished. Executive will not be entitled to receive the Severance
Package described in Section 6.2 above, but shall be subject to the surviving provisions of this
Agreement as set forth in Section 13.8 below.

 

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6.7 Resignation of Board or Other Positions. Executive agrees that should Executive’s
employment terminate for any reason, Executive will immediately resign all other positions
(including board membership) Executive may hold on behalf of the Company.

6.8 Application of Section 409A.

(a) Notwithstanding anything set forth in this Agreement to the contrary, no amount payable
pursuant to this Agreement on account of Executive’s termination of employment with the Company
which constitutes a “deferral of compensation” within the meaning of the Treasury Regulations
issued pursuant to Section 409A of the Code (the “Section 409A Regulations”) shall be paid
unless and until Executive has incurred a “separation from service” within the meaning of the
Section 409A Regulations. Furthermore, if Executive is a “specified employee” within the meaning
of the Section 409A Regulations as of the date of Executive’s separation from service, no amount
that constitutes a deferral of compensation which is payable on account of Executive’s separation
from service shall be paid to Executive before the date (the “Delayed Payment Date”) which
is first day of the seventh month after the date of Executive’s separation from service or, if
earlier, the date of Executive’s death following such separation from service. All such amounts
that would, but for this Section, become payable prior to the Delayed Payment Date will be
accumulated and paid on the Delayed Payment Date.

(b) The Company intends that income provided to Executive pursuant to this Agreement will not
be subject to taxation under Section 409A of the Code. The provisions of this Agreement shall be
interpreted and construed in favor of satisfying any applicable requirements of Section 409A of the
Code. However, the Company does not guarantee any particular tax effect for income provided to
Executive pursuant to this Agreement. In any event, except for the Company’s responsibility to
withhold applicable income and employment taxes from compensation paid or provided to Executive,
the Company shall not be responsible for the payment of any applicable taxes incurred by Executive
on compensation paid or provided to Executive pursuant to this Agreement.

7. No Violation of Rights of Third Parties. Executive represents and warrants to the
Company that Executive is not currently a party, and will not become a party, to any other
agreement that is in conflict with, or will prevent Executive from complying with, this Agreement.
Executive further represents and warrants to the Company that Executive’s performance of all of
the terms of this Agreement as an employee of the Company does not and will not breach any
agreement to keep in confidence any proprietary information, knowledge, or data acquired by
Executive in confidence or trust prior to Executive’s employment with the Company. Executive
acknowledges and agrees that the representations and warranties in this Section 8 are a material
part of this Agreement.

8. Other Covenants. Executive hereby makes the following covenants, each of which
Executive acknowledges and agrees are a material part of this Agreement:

8.1 During the Term of Executive’s employment with the Company, Executive will not (a) breach
any agreement to keep in confidence any confidential or proprietary information, knowledge or data
acquired by Executive prior to Executive’s employment with Company, or (b) disclose to the Company,
or use or induce the Company to use, any confidential or proprietary information or material
belonging to any previous employer or any other third party. Executive acknowledges that the
Company has specifically instructed Executive not to breach any such agreement or make any such
disclosures to the Company.

 

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8.2 During the Term of Executive’s employment with the Company, Executive will not engage in
any work or activity, paid or unpaid, that creates an actual conflict of interest with the Company.
Such work shall include, but is not limited to, directly or indirectly competing with the Company
in any way, or acting as an officer, director, employee, consultant, stockholder, volunteer,
lender, or agent of any business enterprise of the same nature as, or which is in direct
competition with, the business in which the Company is now engaged or in which the Company becomes
engaged during the term of Executive’s employment with the Company, as may be determined by the
Company in its sole discretion. If the Company believes such a conflict exists during the term of
this Agreement, the Company may ask Executive to choose to discontinue the other work or activity
or resign employment with the Company.

8.3 During the Term of Executive’s employment with the Company and after the termination
thereof, neither Executive nor the Company will disparage each other, or the Company’s products,
services, agents or employees.

8.4 During the Term of Executive’s employment with the Company and after the termination
thereof, at the Company’s expense and upon its reasonable request, Executive will cooperate and
assist the Company in its defense or prosecution of any disputes, differences, grievances, claims,
charges, or complaints between the Company and any third party, which assistance will include
testifying on the Company’s behalf in connection with any such matter or performing any other task
reasonably requested by the Company in connection therewith.

9. Confidentiality and Proprietary Rights. Executive agrees to read, sign and abide
by the Company’s Employee Nondisclosure and Assignment Agreement, which is provided with this
Agreement and incorporated herein by reference.

10. Non-Competition; Nonsolicitation of Company’s Employees. Executive acknowledges
that in the course of his employment with the Company he will serve as a member of the Company’s
senior management and will become familiar with the Company’s trade secrets and with other
confidential and proprietary information and that his services will be of special, unique and
extraordinary value to the Company. Executive further acknowledges that the Company’s business, a
substantial portion of which is conducted online, is national in scope and that the Company, in the
course of such business, recruits students and faculty throughout the United States, works with
vendors throughout the United States, and competes with other companies located throughout the
United States. Therefore, in consideration of the foregoing, Executive agrees that, during the
Term, and during the twelve-month (12) month period following the Term, he shall not directly or
indirectly anywhere within the United States of America (a) own (except ownership of less than 1%
of any class of securities which are listed for trading on any securities exchange or which are
traded in the over-the-counter market), manage, control, participate in, consult with, render
services for, be employed by, or in any manner engage in the operation of (i) a for-profit,
post-secondary education institution, or (ii) any other business of the Company in which Executive
had significant involvement prior to Executive’s separation; (b) solicit funds on behalf of, or for
the benefit of, any for-profit, post-secondary education institution (other than the Company) or
any other entity that competes with the Company; (c) solicit individuals who are current or
prospective students of the Company to be students for any other for-profit, post-secondary
education institution; (d) induce or attempt to induce any employee of the Company to leave the
employ of the Company, or in any way interfere with the relationship between the Company and any
employee thereof, or (e) induce or attempt to induce any student, customer, supplier, licensee or
other business relation of the Company to cease doing business with, or modify its business relationship with, the Company,
or in any way interfere with or hinder the relationship between any such student, customer,
supplier, licensee or business relation and the Company.

 

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11. Injunctive Relief. Executive acknowledges that Executive’s breach of the
covenants contained in Section 8, Section 9 and Section 10 hereof (collectively
“Covenants”) would cause irreparable injury to the Company and agrees that in the event of
any such breach, the Company shall be entitled to seek temporary, preliminary and permanent
injunctive relief without the necessity of proving actual damages or posting any bond or other
security in addition to any other relief to which the Company may be entitled and other remedies
Company may exercise under this Agreement or otherwise.

12. Insurance; Indemnification.

12.1 During the Term of Executive’s employment hereunder, Executive will be covered by the
Company’s director and officer insurance policy to the same extent as all other senior executive
officers of the Company.

12.2 Following the execution of this Agreement, the Company will execute and deliver a
director and officer indemnification agreement with Executive in a form approved by the Board of
Directors for the senior executive officers of the Company.

13. General Provisions.

13.1 Successors and Assigns. The rights and obligations of the Company under this
Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of the
Company. Executive shall not be entitled to assign any of Executive’s rights or obligations under
this Agreement.

13.2 Waiver. Either party’s failure to enforce any provision of this Agreement shall
not in any way be construed as a waiver of any such provision, or prevent that party thereafter
from enforcing each and every other provision of this Agreement.

13.3 Attorneys’ Fees. In the event of a dispute involving the interpretation or
enforcement of this Agreement, a court shall award attorneys’ fees and costs to the prevailing
party.

13.4 Severability. In the event any provision of this Agreement is found to be
unenforceable by a court of competent jurisdiction, such provision shall be deemed modified to the
extent necessary to allow enforceability of the provision as so limited, it being intended that the
parties shall receive the benefit contemplated herein to the fullest extent permitted by law. If a
deemed modification is not satisfactory in the judgment of such court, the unenforceable provision
shall be deemed deleted, and the validity and enforceability of the remaining provisions shall not
be affected thereby.

13.5 Interpretation; Construction. The headings set forth in this Agreement are for
convenience only and shall not be used in interpreting this Agreement. This Agreement has been
drafted by legal counsel representing the Company, but Executive has participated in the
negotiation of its terms. Furthermore, Executive acknowledges that Executive has had an
opportunity to review and revise the Agreement and have it reviewed by legal counsel, if desired,
and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this
Agreement.

 

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13.6 Governing Law; Forum. This Agreement will be governed by and construed in
accordance with the laws of the United States and the State of Arizona. Each party consents to the
jurisdiction and venue of the state or federal courts in Phoenix, Arizona, if applicable, in any
action, suit, or proceeding arising out of or relating to this Agreement, and agrees that the state
or federal courts in Phoenix, Arizona shall have exclusive jurisdiction over any dispute arising
between the parties related to this Agreement or Executive’s employment with the Company.

13.7 Notices. Any notice required or permitted by this Agreement shall be in writing
and shall be delivered as follows with notice deemed given as indicated: (a) by personal delivery
when delivered personally; (b) by overnight courier upon written verification of receipt; (c) by
telecopy or facsimile transmission upon acknowledgment of receipt of electronic transmission; or
(d) by certified or registered mail, return receipt requested, upon verification of receipt.
Notice shall be sent to the addresses set forth under the signatures below, or such other address
as either party may specify in writing.

13.8 Survival. Sections 8 (“Other Covenants”), 9 (“Confidentiality and Proprietary
Rights”), 10 (“Non-Competition; Nonsolicitation”), 11 (“Injunctive Relief”), 13 (“General
Provisions”) and 14 (“Entire Agreement”) of this Agreement shall survive termination of Executive’s
employment with the Company.

14. Entire Agreement. This Agreement, including the Employee Nondisclosure and
Assignment Agreement incorporated herein by reference and the Company’s 2008 Equity Incentive Plan
and related option documents described in Section 4.3 of this Agreement, constitutes the entire
agreement between the parties relating to this subject matter and supersedes all prior or
simultaneous representations, discussions, negotiations, and agreements, whether written or oral.
This agreement may be amended or modified only with the written consent of Executive and the Board.
No oral waiver, amendment or modification will be effective under any circumstances whatsoever.

 

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THE PARTIES TO THIS AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH AND EVERY
PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES HAVE EXECUTED THIS AGREEMENT ON THE DATES SHOWN
BELOW.

	 	 	 	 	 
	 	 	JOSEPH N. MILDENHALL
	 
	 	 	 	 
	Dated: September 16, 2009

	 	By:
	 	/s/ Joseph N. Mildenhall
	 

	 	 	 	 
	 	 	Address: 3300 West Camelback Road
           
  
Phoenix, Arizona 85017
	 
	 	 	 	 
	 	 	GRAND CANYON EDUCATION, INC.
	 
	 	 	 	 
	Dated: September 16, 2009

	 	By:
	 	/s/ Stan Meyer
	 

	 	 	 	 
	 

	 	Name:
	 	Stan Meyer
	 

	 	Title:
	 	Executive Officer
	 
	 	 	 	 
	 	 	Address: 3300 West Camelback Road
           
  Phoenix, Arizona 85017

 

10exv10w1

Exhibit 10.1

TERM PROMISSORY NOTE

	 	 	 	 	 
	Amount: $1,500,000

	 	Date of Execution:
	 	November 3, 2009
	 

	 	Effective Date:
	 	November 3, 2009

     1. Promise to Pay. FOR VALUE RECEIVED, Hiland Holdings GP, LP, a Delaware limited
partnership, with offices located at 205 West Maple, Suite 1100, Enid, Oklahoma 73701 (“Borrower”),
promises to pay to the order of Harold Hamm, whose office is located at 302 North Independence,
Suite 1500, Enid, Oklahoma 73701, and/or his successors and assigns (“Lender”), or at such place as
Lender may from time to time designate in writing, in lawful money of the United States of America,
and in immediately available funds, the sum of One Million Five Hundred Thousand Dollars
($1,500,000), together with all other amounts added thereto pursuant to this Note (the “Loan”) (or
so much thereof as may from time to time be outstanding) together with interest thereon as set
forth in this Promissory Note (this “Note”).

     This Note and all other documents evidencing or securing the Loan executed in connection with
the Loan, and any modification, renewal, or extension of any of the foregoing are collectively the
“Loan Documents”.

     This is a term note and does not have a re-advance feature.

     2. Principal and Interest; Default Interest Rate; Lawful Rate of Interest.

          (a) Interest Rate. As long as no Event of Default exists, interest shall accrue on the
principal balance hereof from time to time outstanding and Borrower shall pay interest thereon at a
Rate (the “Interest Rate”) equal to a floating rate per annum equal to the national prime rate as
published in The Wall Street Journal, Eastern Edition (the “National Prime Rate”), plus one percent
(1%) but in no event shall the Interest Rate be less than five percent (5%). The Interest Rate
shall be adjusted daily, or when changes occur in the National Prime Rate. Interest shall accrue
daily on the basis of a three hundred sixty (360) day year and charged for the actual number of
days elapsed.

          (b) Default Interest Rate. On the occurrence and during the continuation of an Event
of Default, interest shall be payable on the unpaid principal balance under this Note at a rate
equal to the National Prime Rate plus seven percent (7 %) (the “Default Rate”).

          (c) Lawful Rate of Interest. In no event whatsoever shall the amount of interest
contracted, charged, paid or agreed to be paid to Lender pursuant to this Note or any of the Loan
Documents exceed the highest lawful rate of interest permissible under applicable law. If, from
any circumstances whatsoever, fulfillment of any provision of this Note and the other Loan
Documents shall involve exceeding the lawful rate of interest which a court of competent
jurisdiction may deem applicable (the “Excess Interest”), then ipso facto, the obligation to be
fulfilled shall be reduced to the highest lawful rate of interest permissible under such law and
if, for any reason whatsoever, Lender shall receive, as interest, an amount which would be deemed
unlawful under such applicable law, such interest shall be applied to the principal of the Loan
(whether or not due and payable), and not to the payment of interest, or refunded to Borrower if

 

 

the Loan has been paid in full. Neither Borrower nor endorser shall have any action against Lender
for any damages whatsoever arising out of the payment, contracting, charging for or collection of
any Excess Interest.

     3. (a) Principal and Interest Payments. Borrower shall pay in full the outstanding
principal balance and all unpaid interest on the Maturity Date. Interest shall be calculated based
on a 360-day year and charged for the actual number of days elapsed. All payments shall be
applied in accordance with this Note. By acceptance of this Note and the making of the Loan to
Borrower, Lender acknowledges that payment of this Note is subordinate to the repayment by Borrower
of that certain loan from Borrower payable to The Security National Bank of Enid (“SNB”) in the
original principal amount of $3,000,000 dated as of August 7, 2009 (the “SNB Loan”). Lender
agrees until the SNB Loan has been paid in full, Lender shall not accept any principal or interest
payments from Borrower on the Loan evidenced hereby. The foregoing two sentences are solely for
the purpose of defining the relative rights of SNB, on the one hand, and Lender, on the other hand,
and nothing herein shall impair, as between the Borrower and the Lender, the obligation of the
Borrower which is unconditional and absolute, to pay the principal, interest and Late Fees in
accordance with this Note.

          (b) Application of Payments. All payments under this Note will be applied to as
follows:

(i) First, to accrued interest due;

(ii) Second, to the outstanding principal balance;

(iii) Third, to any outstanding costs or fees including, but not limited to,
service fees, wire fees, and collection costs Borrower is obligated to pay
under this Note and the other Loan Documents; and

(iv) Fourth, to all outstanding Late Fees (defined below).

          (c) Maturity Date. The Loan shall be fully due and payable on or before December 31,
2009 (“Maturity Date”). Lender is under no obligation to renew this Term Note after the maturity
thereof.

     4. Prepayment. Prepayment of this Note is permitted in whole or in part at any time,
without penalty or premium.

2

 

     5. Creation of Security Interest.

          (a) Borrower grants and pledges to Lender a continuing security interest in all of Borrower’s
right, title and interest in and to all of the following property, whether now owned or existing or
hereafter acquired or arising and regardless of where located (collectively, the “Collateral”), as
collateral security for the prompt and complete payment and performance when due (whether at stated
maturity, by acceleration or otherwise) of the Loan:

          (i) all common units of Hiland Partners, LP, a Delaware limited partnership (the
“Partnership”), owned by Borrower (the “Common Units”);

          (ii) all subordinated units of the Partnership owned by the Borrower (the “Subordinated
Units”);

          (iii) all distributions (whether made in cash, instruments, income, securities or other
property), dividends, cash, securities, instruments and other property now or hereafter
received, receivable or otherwise made with respect to, in substitution for, or in exchange
for the Common Units or the Subordinated Units, including interim distributions, returns of
capital, loan repayments, and payments made in (or proceeds received from any) liquidation
of the Partnership; and

          (iv) all proceeds of all or any of the foregoing, in whatever form.

          (b) The security interest in the Collateral created hereunder is subordinate to the security
interest in the Collateral granted by Borrower pursuant to that certain Pledge Agreement dated
August 7, 2009 by Borrower in favor of The Security National Bank of Enid, to secure Borrower’s
obligations under that certain First Amended and Restated Senior Secured Credit Agreement dated as
of August 7, 2009 between Hiland Holdings GP, LP, as borrower, and The Security National Bank of
Enid, as lender (as amended, restated, supplemented or otherwise modified from time to time, the
“Senior Credit Agreement”).

          (c) Borrower hereby confirms that by signing this Note, Borrower has authenticated this Note,
within the meaning of Section 9 of the Uniform Commercial Code of the State of Oklahoma. This Note
shall constitute full authorization in favor of Lender to file appropriate financing statements,
initial or “in lieu” financing statements, continuation statements, and statements of amendment,
with or without Borrower’s signature, as may be necessary or advisable to perfect and maintain the
perfection and priority of the security interest granted to Lender in this Note. Any such financing
statements, continuation statements or amendments may be signed by Lender on Borrower’s behalf.

     6. Event of Default and Remedies.

          (a) Event of Default. An “Event of Default” under this Note means the occurrence of
any of the following:

          (i) the failure to pay any payment as and when required under this Note;

3

 

          or

          (ii) the occurrence of an Event of Default (as such term is defined in the Senior
Credit Agreement) pursuant to either Section 6.01(c) or Section 6.01(e) of the Senior Credit
Agreement.

          (b) Remedies. On and during the occurrence of an Event of Default: (i) interest shall
accrue at the Default Rate; (ii) Lender may, at its option and without notice (such notice being
expressly waived), declare the Loan immediately due and payable; and (iii) Lender may pursue all
rights and remedies available under all other Loan Documents. Lender’s rights, remedies, and
powers, as provided in this Note and the other Loan Documents, are cumulative and concurrent, and
may be pursued singly, successively, or together against Borrower, the security described in the
Loan Documents, and all other security given at any time to secure the payment of this Note, all at
the sole discretion of Lender. Additionally, Lender may resort to every other right or remedy
available at law or in equity without first exhausting the rights and remedies contained in this
Note, all in Lender’s sole discretion. Failure of Lender, for any period of time or on more than
one occasion, to exercise its option to accelerate the Maturity Date shall not constitute a waiver
of the right to exercise the same at any time during the continued existence of any Event of
Default or any subsequent Event of Default. No course of dealing between Borrower and Lender or
any delay on the part of Lender in exercising any rights under this Note shall operate as a waiver
of any rights of Lender.

     If any attorney is engaged: (i) to collect the Loan or any sums due under the Loan Documents,
whether or not legal proceedings are thereafter instituted by Lender; (ii) to represent Lender in
any bankruptcy, reorganization, receivership, or other proceedings affecting creditors’ rights and
involving a claim under this Note; (iii) to protect the liens and security interests; (iv) to
foreclose on the collateral under the Loan Documents; (v) to represent Lender in any other
proceedings whatsoever in connection with any of the Loan Documents including, without limitation,
post judgment proceedings to enforce any judgment related to the Loan Documents and probate
proceedings; or (vi) in connection with seeking an out-of-court workout or settlement of any of the
foregoing, then Borrower shall pay to Lender all reasonable costs, attorneys’ fees, and expenses in
connection therewith, in addition to all other amounts due under this Note.

     7. Late Fees. If payments of principal or interest, or any other amount under the
Note or other Loan Documents are not timely made or remain overdue for a period of ten (10) days,
Borrower, without notice or demand by Lender, promptly shall pay in addition to any other amounts
due hereunder an amount (“Late Fee”) equal to five percent (5.0%) of each delinquent payment.

     8. Waiver. Borrower, for itself and all endorsers, and sureties of this Note, and
their heirs, successors, assigns, and legal representatives, waives presentment for payment,
demand, notice of nonpayment, notice of dishonor, protest of any dishonor, notice of protest, and
protest of this Note, and all other notices in connection with the delivery, acceptance,
performance, default, or enforcement of the payment of this Note, and agrees that their respective
liability shall be unconditional and without regard to the liability of any other party and shall
not be in any

4

 

manner affected by any indulgence, extension of time, renewal, waiver, or modification granted
or consented to by Lender. Borrower, for itself and all endorsers, and sureties of this Note, and
their heirs, legal representatives, successors, and assigns, consents to every extension of time,
renewal, waiver, or modification that may be granted by Lender with respect to the payment or other
provisions of this Note, and to the release of any makers, endorsers, or sureties, and of any
collateral given to secure the payment of this Note, or any part of this Note, with or without
substitution, and agrees that additional makers, endorsers, or sureties may become parties to this
Note without notice to Borrower or to any endorser, or surety, and without affecting the liability
of any of them.

     9. Evidence of Indebtedness. This Note is given and accepted as evidence of
indebtedness only and not in payment or satisfaction of any indebtedness or obligation.

     10. Choice of Law, Jurisdiction, and Venue. This Note shall be deemed to have been
made and executed in the State of Oklahoma, and this Note shall be interpreted, construed, and
enforced in accordance with the laws of the State of Oklahoma without regard to the principles of
conflict of laws.

     BORROWER AGREES THAT ALL ACTIONS OR PROCEEDINGS ARISING DIRECTLY, INDIRECTLY, OR OTHERWISE IN
CONNECTION WITH, OUT OF, RELATED TO OR FROM THIS NOTE SHALL BE LITIGATED, AT LENDER’S SOLE
DISCRETION AND ELECTION, IN COURTS HAVING A SITUS WITHIN THE STATE OF OKLAHOMA. BORROWER HEREBY
CONSENTS AND SUBMITS TO THE JURISDICTION OF ANY LOCAL, STATE, OR FEDERAL COURT LOCATED WITHIN SAID
STATE. BORROWER HEREBY WAIVES ANY RIGHT IT MAY HAVE TO TRANSFER OR CHANGE THE VENUE OF ANY
LITIGATION BROUGHT AGAINST IT BY LENDER ON THE LOAN DOCUMENTS IN ACCORDANCE WITH THIS PARAGRAPH.

     11. Severability. If one or more of the provisions of this Note shall for any reason
be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or
unenforceability shall not affect any other provisions of this Note, but this Note shall be
construed as if such invalid, illegal, or unenforceable provision had never been contained in this
Note.

     12. Modification. This Note shall not be modified, amended, changed, terminated,
supplemented, or any term or condition hereof waived except in writing signed by Borrower and
Lender.

     13. Assignment. Borrower shall not assign its obligations under this Note without the
express written consent of Lender. Lender, however, may assign, transfer, pledge or sell its
interest in this Note. On notification of such assignment, Borrower shall remit any payments due
hereunder directly to the address of the assignee set forth on the notification.

     14. Headings. Headings are for convenience of reference only and shall not be deemed
to modify, explain, enlarge, or restrict any of the provisions of this Note.

5

 

     15. Notices. Notices shall be given under this Note at the addresses of the parties
shown above by first class mail, postage prepaid, or by overnight delivery.

     16. Joint and Several Obligations. The obligations of Borrower under this Note are
joint and several obligations of Borrower and of each Borrower, if more than one, and of each
Borrower’s heirs, personal representatives, successors, and assigns, provided nothing in this Note
shall be deemed consent to any assignment restricted or prohibited by the Loan Documents.

     17. Time of Essence. Time is of the essence on this Note and the performance of each
of the covenants and agreements in the Note.

     18. Sale of Loan. Lender, at any time and without the consent of Borrower, may grant
participations in or sell, transfer, assign, and convey all or any portion of its right, title, and
interest in and to the Loan, this Note and the other Loan Documents, any guaranties given in
connection with the Loan, and any collateral given to secure the Loan. If Lender sells, transfers,
conveys, or assigns all of Lender’s right, title, and interest in this Note or the Loan, Lender
shall give notice thereof to Borrower and Lender shall thereon be released from liability and
obligations of Lender under this Note and under all other transferred Loan Documents from and after
the date of such transfer; provided such transferee agrees to be bound by the obligations of Lender
thereunder. Notice to Borrower shall not be required for any partial sale, transfer, assignment,
or conveyance of this Note.

     19. Jury Trial Waiver. BORROWER, AND HOLDER BY ITS ACCEPTANCE OF THIS NOTE, HEREBY
WAIVE THEIR RESTRICTIVE RIGHTS TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED ON, OR RELATED
TO, THE SUBJECT MATTER OF THIS NOTE AND THE BUSINESS RELATIONSHIP THAT IS BEING ESTABLISHED. THIS
WAIVER IS KNOWINGLY, INTENTIONALLY, AND VOLUNTARILY MADE BY BORROWER AND BY LENDER, AND BORROWER
ACKNOWLEDGES THAT NEITHER HOLDER NOR ANY PERSON ACTING ON BEHALF OF LENDER HAS MADE ANY
REPRESENTATIONS OF FACT TO INCLUDE THIS WAIVER OR TRIAL BY JURY OR HAS TAKEN ANY ACTIONS WHICH IN
ANY WAY MODIFY OR NULLIFY ITS EFFECT. BORROWER AND LENDER ACKNOWLEDGE THAT THIS WAIVER IS A
MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT BORROWER AND LENDER HAVE ALREADY
RELIED ON THIS WAIVER IN ENTERING INTO THIS NOTE AND THAT EACH OF THEM WILL CONTINUE TO RELY ON
THIS WAIVER IN THEIR RELATED FUTURE DEALINGS. BORROWER AND LENDER FURTHER ACKNOWLEDGE THAT THEY
HAVE BEEN REPRESENTED IN THE SIGNING OF THIS NOTE AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT
COUNSEL.

(continued on the following page)

6

 

     In witness whereof, the undersigned has executed this Note or has caused the same to be
executed by its duly authorized representative as of the date above first written.

	 	 	 	 	 	 	 
	 	 	Lender:	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Harold Hamm	 	 
	 	 	 	 	 
	 	 	Harold Hamm	 	 
	 
	 	 	 	 	 	 
	 	 	Borrower:	 	 
	 
	 	 	 	 	 	 
	 	 	HILAND HOLDINGS GP, LP, a Delaware limited partnership	 	 
	 
	 	 	 	 	 	 
	 	 	By:	 	Hiland Partners GP Holdings, LLC, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Matthew S. Harrison
	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Matthew S. Harrison	 	 
	 

	 	Title:
	 	Vice President-Finance, Chief Financial Officer and Secretary

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