Document:

exv10w11

Exhibit 10.11

	 	 	 

	MEMORANDUM OF AGREEMENT

	 	Norwegian
Shipbrokers’ Association’s Memorandum of Agreement for sale and purchase of ships. Adopted by The Baltic and International Maritime Council (BIMCO) in 1956.
	Dated: 13 April 2011

	 	Code-name
	 

	 	SALEFORM 1993
	 

	 	Revised 1966, 1983 and 1986/87.
	 

	 	 

A.P. Moller Singapore Pte. Ltd.

200 Cantonment Road, Southpoint #10-00

Singapore 089763

hereinafter called the Sellers, have agreed to sell, and

Ebon Shipping Company Inc. of Trust Company Complex

Ajeltake Road

Ajeltake Island, Majuro

Marshall Islands MH 96960

Performance of Ebon Shipping Company Inc. of Trust Company Complex to be guaranteed by

Diana Containerships Inc. of Trust Company Complex

Ajeltake Road

Ajeltake Island, Majuro,

Marshall Islands MH 96960

hereinafter called the Buyers, have agreed to buy

Name: M/V “Maersk Merlion”

Classification Society/Class: ABS

	 	 	 

	Built: 1990

	 	By: Mitsui, Japan
	Flag: Singapore

	 	Place of Registration: Singapore
	Call Sign: 9VIN6

	 	Grt/Nrt: 49874/31357
	Register IMO Number: 8904111
	 	 

hereinafter called the Vessel, on the following terms and
conditions:

Definitions

“Banking days” are days on which banks are open both in the country of the currency
stipulated for the Purchase Price in Clause 1 and in the place of closing
stipulated in Clause 8.

“In writing” or “written” means a letter handed over from the Sellers to the Buyers
or vice versa, a registered letter, telex, telefax or other modern form of written
communication.

“Classification Society” or “Class” means the Society referred to in line 4.

1. Purchase Price US$ 24,000,000 (United States Dollars Twenty Four Million) to Sellers in
cash, hereinafter called the Purchase Price.

	2.	 	Deposit

As security for the correct fulfilment of this Agreement the Buyers shall pay a deposit of 10%
(ten per cent) of the Purchase Price within 3 banking days from the date of this after the
contract has been signed by both parties by e-mail or by fax and all subjects have been lifted,
whichever is later.

Agreement. This deposit shall be placed with a first-class international bank to be nominated by
Sellers
and held by them in a joint interest bearing account for the Sellers and the Buyers, to be
released in accordance
with joint written instructions of the Sellers and the Buyers.

This document is a computer generated SALEFORM 1993 form printed by authority of the
Norwegian Shipbrokers’ Association. Any insertion or deletion to the form must be clearly visible.
In the event of any modification made to the pre-printed text of this document which is not
clearly visible, the text of the original approved document shall apply. BIMCO and the Norwegian
Shipbrokers’ Association assume no responsibility for any loss, damage or expense as a result of
discrepancies between the original approved document and this computer generated document.

	 	 	 

	Copyright:
Norwegian Shipborkers’ Association, Osio, Norway.

	 	Printed BIMCO’S idea

 

 

Interest, if any, to be credited to the
Buyers.
Any fee charged for holding the said deposit shall be borne equally by the Sellers and the Buyers.

	3.	 	Payment

The said
Purchase Price shall be paid in full free of bank charges, plus or minus any amounts agreed between Sellers and the Buyers, to a first-class international bank to be nominated by
Sellers
on delivery of the Vessel, but not later than 3 banking days after the Vessel is in every
respect physically ready for delivery in accordance with the terms and conditions of this
Agreement and Notice of Readiness has been given in accordance with Clause 5.

	4.	 	Inspections

	a)*	 	The Buyers have inspected and accepted the Vessel’s classification records.
The Buyers have also inspected the Vessel at/in Busan on 4th of October
2010 and have accepted the Vessel following this inspection and the sale is outright
and definite, subject only to the terms and conditions of this
Agreement.

	b)*	 	  The Buyers shall have the right to inspect the
Vessel’s classification records and
declare whether same are accepted or not-within
The Sellers shall provide for inspection or the Vessel at/in
The Buyers shall undertake the inspection without
undue delay to the Vessel. Should the Buyers cause undue delay they shall compensate the Sellers for the
losses thereby incurred. The Buyers shall inspect the Vessel without
opening up and
without cost to the Sellers. During the inspection, the Vessel’s
deck and engine
log books shall be made available for examination by the Buyers. If the Vessel is
accepted after such inspection, the sale shall become outright and definite,
subject only to the forms and’ conditions of this Agreement,
provided the
Sellers receive written notice of acceptance from the Buyers within
72 hours after
completion of such inspection.
Should notice of acceptance of the Vessel’s classification records and of the
Vessel not be received by the Sellers as aftersaid, the deposit together with
interest earned shall be released immediately to the Buyers, whereafter this
Agreement shall be null and void.

 

	*	 	4 a) and 4b) are alternatives; delete whichever is not
applicable. In the absence of
deletions, alternative 4a) to apply.

	5.	 	Notices, time and place of delivery

	a)	 	The Sellers shall keep the Buyers well informed of the Vessel’s itinerary and shall
provide the Buyers with 30 (thirty), 20 (twenty), 15 (fifteen), 7 (seven) and 3 (three)
days notice of the estimated time of arrival and 1 (one) day
definite notice at the
intended place of drydocking/underwater inspection/ of delivery. When the Vessel is at
the place
of delivery and in every respect physically ready for delivery in accordance with this
Agreement, the Sellers shall give the Buyers a written Notice of Readiness for delivery.

	b)	 	The Vessel shall be delivered and taken over safely afloat at a safe and
accessible anchorage or berth-or ancherage at/in Caribs, including Manzanillo and Balboa, West Coast South America
(Panama, Columbia, Chile, Peru), UK, the Netherlands and Greece in the Sellers’ option.

	 	 	Expected time of delivery: 20 May 2011 to 20 June 2011 in Sellers option.

	 	 	Date of cancelling (see Clauses 5 c), 6 b) (iii) and 14): 30 June 2011, in the
Buyers’ option.

	c)	 	If the Sellers anticipate that, notwithstanding the exercise of due diligence by them,
the Vessel will not be ready for delivery by the cancelling date they may notify the
Buyers in writing stating the date when they anticipate that the Vessel will be ready for
delivery and propose a new cancelling date. Upon receipt of such notification the Buyers
shall have the option of either cancelling this Agreement in accordance with Clause
14 within 7 running days of receipt of the notice or of accepting the new date as the
new cancelling date. If the Buyers have not declared their option within 7 running
days of receipt of the Sellers’ notification or if the Buyers accept the new date, the
date proposed in the Sellers’ notification shall be deemed to be the new cancelling date
and shall be substituted for the cancelling

This document is a computer generated SALEFORM 1993 form printed by authority of the
Norwegian Shipbrokers’ Association. Any insertion or deletion to the form must be clearly visible.
In the event of any modification made to the pre-printed text of this document which is not
clearly visible, the text of the original approved document shall apply. BIMCO and the Norwegian
Shipbrokers’ Association assume no responsibility for any loss, damage or expense as a result of
discrepancies between the original approved document and this computer generated document.

 

 

	 	 	date stipulated in line 61.

	 	 	If this Agreement is maintained with the new cancelling date all other terms and conditions
hereof including those contained in Clauses 5 a) and 5 c) shall remain unaltered and in full
force and effect. Cancellation or failure to cancel shall be entirely without prejudice to
any claim for damages the Buyers may have under Clause 14 for the Vessel not being ready by

the original cancelling date.

	d)	 	Should the Vessel become an actual, constructive or compromised total loss before
delivery the deposit together with interest earned shall be released immediately to
the Buyers whereafter this Agreement shall be null and void.

	6.	 	Drydocking/Divers Inspection

	a)**	 	The Sellers shall place the Vessel in drydock at the port of delivery for inspection by
the
Classification Society of the Vessel’s underwater parts below the deepest load
line, the extent of the inspection being in accordance with the Classification
Society’s rules. If the rudder, propeller, bottom or other underwater parts
below the deepest load line are found broken, damaged or defective so-as to
affect the Vessel’s class, such defects shall be made good at the Sellers’
expense to the satisfaction of the Classification Society without
condition/recommendation*.

	 	 	b)** (i) The Vessel is to be delivered without drydocking. However, the Buyers shall have
the right at their risk and expense to arrange for an underwater inspection by a
diver approved by the Classification Society prior to the delivery of the Vessel.
In case Class
imposes a condition/recommendation, then the underwater inspection/divers company
expenses are to be for the account of Sellers. The Sellers shall at their
cost make the Vessel available for such inspection. The extent of the inspection
and the conditions under which it is performed shall be to the satisfaction of the
Classification Society. If the conditions at the port of delivery are unsuitable
for such inspection, the Sellers shall make the Vessel available at a suitable
alternative place near to the delivery port. Buyers superintendent to have the
right to attend. The Sellers are to require the Class to attend such underwater
inspection at the Sellers cost.

(ii) If the rudder, propeller, bottom or other underwater parts below the deepest
load line
are found broken, damaged or defective so as to affect the Vessel’s class, then
unless repairs can be carried out afloat to the satisfaction of the Classification
Society, the Sellers shall—arrange for the Vessel to be drydocked at their
expense for inspection by the Classification Society of the
Vessel’s underwater
parts below the deposit load line, the extent of the inspection being in
accordance with the Classification Society’s rules. If the rudder, propeller,
bottom or other underwater parts below the deposit load line are found broken,
damaged or defective so as to affect the Vessel’s class, such
defects shall be made
good by the Sellers at their expense to the satisfaction of the Classification
Society without condition/recommendation*. In such event the Sellers are to pay also for the cost of
the underwater inspection and the Classification Society’s attendance.

If the rudder, propeller, bottom or other underwater parts below the deepest load line
are found to be broken, damaged or defective so as to affect the Class of the Vessel
and the Classification Society approves the postponement of such repairs/rectification
of conditions/recommendations until the next periodical drydocking, then the Vessel
is to be delivered without drydocking and repairs, with the Sellers making a cash
settlement to the Buyers for such repairs/rectification which is to be calculated on
the basis of the average quotation received from 2 (two) reputable shipyards, 1 (one)
obtained by each party. The said compensation is to be deducted from the purchase price
at the time of delivery.

However, if such damage affects the Class of the Vessel and repairs/rectification of
conditions/recommendations cannot be postponed by Classification Society until the next
periodical drydocking, then, unless repairs can be carried out afloat to the
satisfaction of the Classification Society, the Sellers will arrange for the Vessel to
be drydocked at their expense for inspection by the Classification Society of the
underwater parts of the Vessel below the deepest load line, the extent of the
inspection being in accordance with the Classification Society rules. If the rudder,
propeller, bottom or other underwater parts below the deepest load line are found
broken, damaged or defective so as to affect

This document is a computer generated SALEFORM 1993 form printed by authority of the
Norwegian Shipbrokers’ Association. Any insertion or deletion to the form must be clearly visible.
In the event of any modification made to the pre-printed text of this document which is not
clearly visible, the text of the original approved document shall apply. BIMCO and the Norwegian
Shipbrokers’ Association assume no responsibility for any loss, damage or expense as a result of
discrepancies between the original approved document and this computer generated document.

 

 

the Class of the Vessel, such defects will be made good by the Sellers at their
expense to the satisfaction of the Classification Society without
conditions/recommendations. In such event, the Sellers are to pay also for the cost
of the underwater inspection and the attendance of the Classification Society.

(iii) If the Vessel is to be dry-docked pursuant to Clause 6 b) (ii)
and no suitable drydocking facilities are available at the port of delivery, the
Sellers shall take the Vessel to a port where suitable drydocking facilities are
available, whether within or outside the delivery range as per Clause 5 b).
Once drydocking has taken place the Sellers shall deliver the Vessel at a port
within the delivery range as per Clause 5 b) which shall, for the purpose
of this Clause, become the new port of delivery. In such event the cancelling date
provided for in Clause 5 b)) shall be extended by the additional time
required for the drydocking and extra steaming, but limited to a maximum of 14
running days.

	c)	 	If the Vessel is drydocked pursuant to Clause 6 a) or 6 b) above

(i) the Classification Society may require survey of the tailshaft system, the
extent of the survey being to the satisfaction of the Classification surveyor. If
such survey is not required by the Classification Society, the Buyers shall have
the right to require the tailshaft to be drawn and surveyed by the Classification
Society, the extent of the survey being in accordance with the Classification
Society’s rules for tailshaft survey and consistent with the current stage of the
Vessel’s survey cycle. The Buyers shall declare whether they require the
tailshaft to be drawn and surveyed not later than by the completion of the
inspection by the Classification Society. The drawing and refitting of the
tailshaft shall be arranged by the Sellers. Should any parts of the tailshaft
system be condemned or found defective so as to affect the Vessel’s class, those
parts shall be renewed or made good at the Sellers’ expense to the satisfaction
of the Classification Society without condition/recommendation*.

(ii) the expenses relating to the survey of the tailshaft system shall be borne by the
Buyers unless the Classification Society requires such survey to be carried out,
in which case the Sellers shall pay these expenses. The Sellers shall also pay the
expenses if the Buyers require the survey and parts of the system are condemned
or found defective or broken so as to affect the Vessel’s class*.

(iii) the expenses in connection with putting the Vessel in and
taking her out of drydock, including the drydock dues and the Classification
Society’s fees shall be paid by the Sellers if the Classification Society issues
any condition/recommendation* as a result of the survey or if it requires survey
of the tailshaft system. In all other cases the Buyers shall pay the aforesaid
expenses, dues and fees.

(iv) the Buyers’ representative shall have the right to be present in the
drydock, but without interfering with the work or decisions of the
Classification surveyor.

(v) the Buyers shall have the right to have the underwater parts of the Vessel
cleaned and painted at their risk and expense without interfering with the
Sellers’ or the Classification surveyor’s work, if any, and without affecting the
Vessel’s timely delivery. If, however, the Buyers’ work in drydock is still in
progress when the Sellers have completed the work which the Sellers are required
to do, the additional docking time needed to complete the Buyers’ work shall be
for the Buyers’ risk and expense. In the event that the Buyers’ work requires such
additional time, the Sellers may upon completion of the Sellers’ work tender
Notice of Readiness for delivery whilst the Vessel is still in drydock and the
Buyers shall be obliged to take delivery in accordance with Clause 3,
whether the Vessel is in drydock or not and irrespective of Clause 5 b).

 

			
	*	 	Notes, if any, in the surveyor’s report which are accepted by the Classification Society
without condition/recommendation are not to be taken into account.
	 
	**	 	6 a) and 6 b) are alternatives; delete whichever is not applicable. In the absence
of deletions,
alternative 6 a) to apply.

	7.	 	Spares/bunkers, etc.

The Sellers shall deliver the Vessel to the Buyers with everything belonging to her on
board and on shore. All spare parts and spare equipment including spare tail-end shaft(s)
and/or spare propeller(s)/propeller blade(s), if any, belonging to the Vessel at the time
of inspection used or unused, whether on board or not shall become the Buyers’ property, 
but
fatl-sparos on order are to

This document is a computer generated SALEFORM 1993 form printed by authority of the
Norwegian Shipbrokers’ Association. Any insertion or deletion to the form must be clearly visible.
In the event of any modification made to the pre-printed text of this document which is not
clearly visible, the text of the original approved document shall apply. BIMCO and the Norwegian
Shipbrokers’ Association assume no responsibility for any loss, damage or expense as a result of
discrepancies between the original approved document and this computer generated document.

 

 

be
excluded. Forwarding charges, if any, shall be for the Buyers’ account. The Sellers
are not required to replace spare parts including spare tail — end shaft(s) and spare
propeller(s)/propeller blade(s) which are taken out of spare and used as replacement
prior to delivery, but the replaced items shall be the property of the Buyers. The radio
installation and navigational equipment shall be included in the sale without extra
payment if they are the property of the Sellers. Unused stores and provisions shall be
included in the sale and be taken over by the Buyers without extra payment.

The Sellers have the right to take ashore crockery, plates, cutlery, linen and other
articles bearing the Sellers’ flag or name, provided they replace same with similar unmarked
items. Library, forms, etc., exclusively for use in the Sellers’ vessel(s), shall be
excluded without compensation. Captain’s, Officers’ and Crew’s personal belongings
including the slop chest are to be excluded from the sale, as well as the following
additional items (including items on hire):

 The Buyers shall take-over the remaining bunkers and unused lubricating oils in storage
tanks and sealed drums and-pay the current net market price (excluding barging expenses)
at the port and date of delivery of the Vessel.

Payment-under
this Clause shall be made at the same time and place and in the same
currency as the Purchase Price.

Bunkers to remain the Sellers’ property during handover. The Buyers are to buy back same
upon redelivery from time charter. Same shall be covered by the charter party with logical
amendments.

The Buyers shall take over remaining unused lubricating oils (in tanks or in
broached/unbroached drums) at the time of delivery paying the Sellers net Oil Major prices
for last supply port.

Exclusion list:

	-	 	Reefer container unit spare parts
	 
	-	 	Power packs for reefer containers with related plugs, cords and extension cables
	 
	-	 	Manuals for reefer units
	 
	-	 	Logbooks for deck/engine, but Buyers can take copies of same
	 
	-	 	Unitor and/or drew bottles
	 
	-	 	Master’s officers and crew’s personal effects
	 
	-	 	Welfare equipment limited to games consoles, DVD’s and games software
	 
	-	 	Pictures and paintings
	 
	-	 	Documents directly related to present ownership
	 
	-	 	Documents which have to be returned to the authorities
	 
	-	 	All forms etc. which are related to the present ownership
	 
	-	 	The Vessel’s maintenance system for hull and machinery, however buyers have the right to
take copies
	 
	-	 	Computer software for PC’s which are either developed by or licensed to the Sellers except
loadmaster computer which is included in the sale
	 
	-	 	Digital cameras and mobile telephones
	 
	-	 	Meteorological equipment supplied by NOAA
	 
	-	 	Vessel specific and Sellers company stamps
	 
	-	 	PPE/Maersk boiler suits
	 
	-	 	Video on demand to be returned to Videotel
	 
	-	 	Fleet broadband internet SIM card

The Sellers confirm one spare propeller available for Maersk Merlion (located in Singapore).

Payment under this Clause shall be made at the same time and place and in the same
currency as the Purchase Price.

	8.	 	Documentation

The place of closing: Nordea Bank Finland Plc — London Branch or Copenhagen Branch.

In exchange for payment of the Purchase Price the Sellers shall furnish the Buyers with
delivery documents, namely:

	a)	 	Legal Bill of Sale in a form recordable in The Republic of the Marshall
Islands (the country in which the Buyers are to register the Vessel), warranting that
the Vessel is free from all encumbrances, mortgages

This document is a computer generated SALEFORM 1993 form printed by authority of the
Norwegian Shipbrokers’ Association. Any insertion or deletion to the form must be clearly visible.
In the event of any modification made to the pre-printed text of this document which is not
clearly visible, the text of the original approved document shall apply. BIMCO and the Norwegian
Shipbrokers’ Association assume no responsibility for any loss, damage or expense as a result of
discrepancies between the original approved document and this computer generated document.

 

 

	 	 	and maritime liens or any other debts or claims whatsoever, duly notarially attested
and  legalized by the consul of such country or other competent authority.

	b)	 	Current Certificate of Ownership issued by the competent authorities of the flag state
of the Vessel.
	 
	c)	 	Confirmation of Class issued within 72 hours prior to delivery.
	 
	d)	 	Current Certificate issued by the competent authorities stating that the Vessel is free
from  registered encumbrances.
	 
	e)	 	Certificate of Deletion of the Vessel from the Vessel’s registry or other official
evidence of deletion appropriate to the Vessel’s registry at the time of delivery, or, in
the event that the registry does not as a matter of practice issue such documentation
immediately, a written undertaking by the Sellers to effect deletion from the Vessel’s
registry forthwith and furnish a Certificate or other official evidence of deletion to
the Buyers promptly and latest within 4 (four) weeks after the Purchase Price has been
paid and the Vessel has been delivered.
	 
	f)	 	Any such additional documents as may reasonably be required by the Buyers financiers or
the competent authorities

for the purpose of registering the Vessel, provided the Buyers notify the Sellers of
any such documents as soon as possible after the date of this
Agreement. Such request
shall be made latest 15 days prior the expected date of delivery.

At the time of delivery the Buyers and Sellers shall sign and deliver to each other a
Protocol of Delivery and Acceptance confirming the date and time of delivery of the Vessel
from the Sellers to the Buyers.

At the time of delivery the Sellers shall hand to the Buyers the classification certificate(s) as
well as all
plans etc., which are on board the Vessel. Other certificates which are on board the Vessel shall
also be handed over to the Buyers unless the Sellers are required to retain same, in which case the
Buyers to have the right to take copies. Other technical documentation which
may be in the Sellers’ possession shall be promptly forwarded to the Buyers at their expense, if
they so request. The Sellers may keep the Vessel’s log books but the Buyers to have the right to
take copies of same.

	9.	 	Encumbrances

The Sellers warrant that the Vessel, at the time of delivery, is free from all charters,
encumbrances, mortgages and maritime liens or any other debts whatsoever. The Sellers hereby
undertake to indemnify the Buyers against all consequences of claims made against the
Vessel which have been incurred prior to the time of delivery.

	10.	 	Taxes, etc.

Any taxes, fees and expenses in connection with the purchase and registration under the
Buyers’ flag shall be for the Buyers’ account, whereas similar charges in connection with
the closing of the Sellers’ register shall be for the Sellers’ account.

	11.	 	Condition on delivery

The Vessel
with everything belonging to her will shall be at the
Sellers’ risk and expence
until she is
delivered to the Buyers, but subject to the. terms and conditions of this Agreement she shall
be delivered and taken over in the same condition as she was at the time of inspection, fair
wear and tear excepted.

However, the The Vessel shall is to be delivered with her class fully maintained without
condition/recommendation and with all survey cycles for hull and machinery up to date, and
free of average damage which is known to the Sellers and which affects Class and with her
classification certificates and all national, international and
trading certificates, as well
as all other certificates the Vessel had at the time of inspection, to be clean, unextended
and valid for a minimum of 3 (three) months at the time of delivery without
conditions/recommendations by Class or relevant authorities. The Vessel is to be delivered
with current inventory of lashing equipment, which to be verified by a joint survey between
the representatives of the Buyers and the Sellers. In case of insufficient lashings, the
Sellers are to make cash compensation to the Buyers at the time of delivery.*,
free
of average-damage affecting the Vessel’s class,-and with her classification
Certificates- and national Certificates as well as all other certificates the Vessel had
at the time of inspection, valid and unextended without condition/recommondation* by
Class or the relevant-authorities at the time of

This document is a computer generated SALEFORM 1993 form printed by authority of the
Norwegian Shipbrokers’ Association. Any insertion or deletion to the form must be clearly visible.
In the event of any modification made to the pre-printed text of this document which is not
clearly visible, the text of the original approved document shall apply. BIMCO and the Norwegian
Shipbrokers’ Association assume no responsibility for any loss, damage or expense as a result of
discrepancies between the original approved document and this computer generated document.

 

 

delivery.
“Inspection”
in this Clause 11, shall mean the Buyer’s inspection according
to Clause 4 a) or 4 b), if
applicable, or the Buyers’ inspection prior to the signing of
the Agreement. If the
Vessel is taken over without inspection, the date of this Agreement shall be-the relevant
date.

 

			
	*	 	Notes, if any, in the surveyor’s report which are accepted by the Classification Society without condition/recommendation are not to be taken into account.

	12.	 	Name/markings

Upon delivery the Buyers undertake to change the name of the Vessel and alter funnel
markings at their expense.

	13.	 	Buyers’ default

	Should the deposit not be paid in accordance with Clause 2, the Sellers have the
right to cancel this Agreement, and they shall be entitled to claim compensation for their
losses and for all expenses  incurred together with interest.

Should the
Purchase Price not be paid in accordance with Clause 3, the Sellers have
the right to cancel the Agreement, in which case the deposit together with interest earned
shall be released to the Sellers. If the deposit does not cover their loss, the Sellers
shall be entitled to claim further compensation for their losses and for all expenses incurred
together with interest.

14. Sellers’ default

Should the Sellers fail to give Notice of Readiness in accordance with Clause
5 a) or fail to
be ready to validly complete a legal transfer by the date stipulated in line 61
the Buyers shall have the option of cancelling this Agreement provided always that the
Sellers shall be granted a maximum of 3 banking days after Notice of Readiness has been given
to make arrangements for the documentation set out in Clause 8. If after Notice of
Readiness has been given but before the Buyers have taken delivery, the Vessel ceases to be
physically ready for delivery and is not made physically ready again in every respect by the
date stipulated in line 61 and new Notice of Readiness given, the Buyers shall retain
their option to cancel. In the event that the Buyers elect to cancel this Agreement the
deposit together with interest earned shall be released to them immediately.

Should the Sellers fail to give Notice of Readiness by the date stipulated in
line 61 or fail
to be ready to validly complete a legal transfer as aforesaid they shall make due compensation
to the Buyers for their
loss
and for all expenses together with interest if
their failure is due to proven negligence and whether or not the Buyers cancel this
Agreement.

	15.	 	Buyers’ representatives

After this Agreement has been signed by both parties and the deposit has been lodged, the
Buyers have the right to place two representatives on board the Vessel at their sole risk
and expense. upon
arrival at on or about

These representatives are on board for the purpose of familiarisation and in the capacity
of observers only, and they shall not interfere in any respect with the operation of the
Vessel. The
Buyers’ representatives shall sign the Sellers’ letter of indemnity prior to their
embarkation.

In any event the Buyers representatives are only to board the Vessel earliest 30 days
prior to expected delivery.

	16.	 	Arbitration
	 
	a)*	 	This Agreement shall be governed by and construed in accordance with English law
and any dispute arising out of this Agreement shall be referred to arbitration in
London in accordance with the  Arbitration Acts—1950 and 1979  Arbitration Act
1996 or any statutory modification or
re-enactment thereof for the time being in force, one arbitrator being appointed by
each party. On the receipt by one party of the nomination in writing of the other
party’s arbitrator, that party shall appoint their arbitrator within fourteen days,
failing which the decision of the single arbitrator appointed shall apply. If two
arbitrators properly appointed shall not agree they shall appoint an umpire whose
decision shall be final. The LMAA terms from time to time shall apply.
	 
	b)*	 	This Agreement shall be governed by and construed in accordance with Title 9 of the

This document is a computer generated SALEFORM 1993 form printed by authority of the
Norwegian Shipbrokers’ Association. Any insertion or deletion to the form must be clearly visible.
In the event of any modification made to the pre-printed text of this document which is not
clearly visible, the text of the original approved document shall apply. BIMCO and the Norwegian
Shipbrokers’ Association assume no responsibility for any loss, damage or expense as a result of
discrepancies between the original approved document and this computer generated document.

 

 

United States Code and the Law of the State of New York and should any
dispute arise out of this Agreement, the matter in dispute shall be
referred to three persons at New York, one to be appointed by each
of the parties hereto, and the third by the two so chosen; their decision
or that of any two of them shall be final, and for purpose of enforcing any
award, this Agreement may be made a rule of the Court. 

 The proceedings shall be conducted in accordance with the rules of the
Society of Maritime Arbitrators, Inc. New York. 

e)* Any dispute arising out of this Agreement shall be referred to arbitration at,
subject to the procedures applicable there.

The laws of shall govern this Agreement. 

 

			
	*	 	16 a), 16 b) and 16 c) are alternatives; delete whichever is not applicable. In the absence of
deletions, alternative 16 a) to apply.

	 	 	Clause 17 to 19 inclusive as attached hereto shall form an integral part of this Agreement

	 	 	 

	For the Sellers:

	 	For the Buyers:
	A.P. Moller Singapore Pte. Ltd.

	 	Ebon Shipping Company
	 

	 	Inc. of Trust Company Complex
	 
	 	 
	/s/ Jan Holm
 
Name:
Jan Holm

	 	/s/ Symeon Palios
 

Name:  Symeon Palios
	Title: Managing Director

	 	Title: Director and President
	 
	 	 
	 

	 	The Guarantors:
	 

	 	Diana Containerships 
Inc. of Trust Company Complex
	 
	 	 
	 

	 	/s/ Joannis Zafirakis
 
Name:
Joannis Zafirakis
	 

	 	Title: Director, Chief Operating
Officer, and Secretary

This document is a computer generated SALEFORM 1993 form printed by authority of the
Norwegian Shipbrokers’ Association. Any insertion or deletion to the form must be clearly visible.
In the event of any modification made to the pre-printed text of this document which is not
clearly visible, the text of the original approved document shall apply. BIMCO and the Norwegian
Shipbrokers’ Association assume no responsibility for any loss, damage or expense as a result of
discrepancies between the original approved document and this computer generated document.

 

 

Additional Clauses to Memorandum of Agreement dated
13th April 2011

M/V “MAERSK MERLION”

	 	 	 

	Clause 17

	 	Arab Boycott League
	 
	 	 
	 

	 	The Sellers are to confirm that to the best
of their knowledge and belief the Vessel is not
blacklisted by the Arab Boycott League in
Damascus, Syria, or by any organization or national
authority.
	 
	 	 
	Clause 18

	 	 Entire Agreement
	 
	 	 
	 

	 	This Agreement constitutes the only and entire agreement between the
parties and supersedes and replaces any prior written or oral agreements,
representations, statements or understandings between the Buyers and the
Sellers relating to its subject matter.
	 
	 	 
	 

	 	Each party confirms that it has not entered into this Agreement on
the basis of any representation or statement which is not expressly
incorporated into this Agreement. Without limiting the generality of the
foregoing, neither party shall have any remedy in respect of any untrue
representation or statement made to him upon which he may have relied in
entering into this Agreement, and a party’s only remedy is for breach of
contract. However, nothing in this Agreement purports to exclude liability
for any fraudulent statement or act.
	 
	 	 
	 

	 	This Agreement shall not be released, discharged,
supplemented, interpreted, amended, varied or modified in any manner except
by an addendum in writing signed by a duly authorised representative of
each of the parties to this Agreement.
	 
	 	 
	Clause 19

	 	Confidentiality 
	 
	 	 
	 

	 	Negotiations are to
be kept strictly private
and confidential between the
parties involved, subject
however to any disclosure
requirements of the U.S.
SEC and the Stock
Exchange. Should however
details of the sale become
known or reported on the
market, neither the Buyers
nor the Sellers will have  the
right to withdraw from the
sale or the right to fail
to fulfil their obligations
under the MoA.

This Agreement has been drawn up and executed in 2 (two) originals, 1 (one) of which is to be
retained by the Sellers and 1 (one) of which is to be retained by the Buyers.

- 1 -Exhibit 10.1

Exhibit 10.1

AMENDED AND RESTATED LOAN AGREEMENT

This AMENDED AND RESTATED LOAN AGREEMENT (this “Agreement”) is dated as of April 8,
2011, by and between BANK OF AMERICA, N.A., a national banking association (the “Bank”) and
GRAND CANYON EDUCATION, INC., a Delaware corporation (the “Borrower”).

FACTUAL BACKGROUND

Borrower and Bank are parties to a Loan Agreement dated April 27, 2009, which was previously
amended on June 9, 2010 (the “Loan Agreement”) pursuant to which the Bank made a secured
term loan to the Borrower. The Borrower has requested that the Bank also provide a revolving line
of credit. The Bank is willing to provide such a revolving line of credit on the terms and
conditions set forth herein, and to amend and restate the Loan Agreement.

AGREEMENT

Therefore, in consideration of the mutual covenants and agreements herein contained, the
parties hereto covenant and agree as follows:

1. VARIABLE RATE TERM LOAN

1.1 Loan Amount.

The Bank has provided a loan to the Borrower in the principal amount of Twenty-Five Million Six
Hundred Seventy Five Thousand and no/100 Dollars ($25,675,000.00) (the “Term Loan”).

1.2 Single Disbursement of Term Loan.

The Term Loan has been made by a single disbursement.

1.3 Repayment Terms.

	(a)	 	The Borrower will pay accrued interest on the principal balance of the Term Loan commencing
on June 1, 2009, and thereafter on the same day of each month, until payment in full of the
Term Loan, such interest to be computed in accordance with Section 1.4.

	(b)	 	The Borrower will also make principal payments in equal monthly installments of One Hundred
Forty Two Thousand Six Hundred Thirty Eight and 89/100 Dollars ($142,638.89) beginning on June
1, 2009 and on the first (1st) day of each month thereafter. In addition to the foregoing
monthly payments of principal, not later than March 31, 2016 (the “Maturity Date”) the
Borrower shall repay to the Bank the remaining unpaid principal, all accrued and unpaid
interest and all other amounts payable under this Agreement and the Collateral Documents, as
defined in Article 4 below.

 

 

 

	(c)	 	Upon not less than ten (10) banking days irrevocable written notice received by the Bank from
the Borrower, the Borrower may prepay the Term Loan in full or in part only on the first (1st)
day of the calendar month that is so noted in such notice. Any such noticed prepayment shall
be unconditionally due on such stated date for such prepayment in the notice. Such prepayment
must be accompanied with (i) the payment of any termination, reinvestment, or breakage costs
incurred by the Bank if such prepayment is not received on the first (1st) day of the calendar
month that is noted in such prepayment notice; and (ii) a prepayment fee as follows:

	 	 	 
	Date of Prepayment	 	Percentage of Prepaid Amount
	 	 	 
	Prior to March 31, 2012
	 	0.50%

Provided that, if the prepayment is a prepayment in full and made in connection with either:

(A) a refinancing transaction, the proceeds of which are used to
both (x) repay the Term Loan and all other amounts payable to the
Bank in full, and (y) to finance material improvements to the real
property and improvements thereon comprising the Collateral (as
defined below); or

(B) a new market tax credit financing transaction, the proceeds of
which are used to repay the Term Loan and all other amounts payable
to the Bank in full;

then a prepayment fee as follows:

	 	 	 
	Date of Prepayment	 	Percentage of Prepaid Amount
	 	 	 
	Prior to March 31, 2012
	 	0.25%

Provided further that, if the Bank is either the only lender or is the primary lender of any
financing covered by clause (A) of the preceding sentence, then no prepayment fee will be
required.

Each such prepayment will be applied (A) first, to the payment of any such
termination, reinvestment, or breakage fee; (B) second, to the Prepayment Fee; and
then; (C) third, to the most remote payment of principal due under this Agreement.
The Borrower shall also pay to the Bank, in addition to any late fee or default, interest on
any noticed prepayment that is not timely made, all costs, expenses, fees and losses
incurred by Bank as a result of such failure, including any termination, reinvestment or
breakage fee.

1.4 Interest Rate.

	(a)	 	The interest rate on the unpaid amount of the Term Loan shall be a rate per year equal to the
BBA LIBOR Rate (Adjusted Periodically), plus two hundred (200) basis points.

 

2

 

	(b)	 	The interest rate will be adjusted on the first (1st) day of every calendar month (the
“Adjustment Date”) and remain fixed until the next Adjustment Date. If the Adjustment
Date in any particular month would otherwise fall on a day that is not a banking day then, at
the Bank’s option, the Adjustment Date for that particular calendar month will be the first
banking day immediately following thereafter.

	(b)	 	The BBA LIBOR Rate (Adjusted Periodically) is a rate of interest equal to the rate per annum
equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by
Reuters (or another commercially available source providing quotations of BBA LIBOR as
selected by the Bank from time to time) as determined for each Adjustment Date at
approximately 11:00 a.m. London time two (2) London Banking Days prior to the Adjustment Date,
for U.S. Dollar deposits (for delivery on the first day of such interest period) with a term
of one month, as adjusted from time to time in the Bank’s sole discretion for reserve
requirements, deposit insurance assessment rates and other regulatory costs. If such rate is
not available at such time for any reason or if the Bank determines in its sole discretion
that such rate no longer accurately reflects its cost of funds, then the rate for that
interest period will be determined by such alternate method as reasonably selected by the Bank
provided that the effect of such alternative method is to provide for an interest rate that is
generally comparable in market performance and fluctuation as the BBA LIBOR immediately prior
to such rate not being available or not reflecting the cost of funds. A “London Banking
Day” is a day on which banks in London are open for business and dealing in offshore
dollars.

2. VARIABLE RATE REVOLVER COMMITMENT

2.1 Revolver Commitment.

The Bank agrees to provide a revolving line of credit (the “Revolver” and the Term Loan and
outstanding amounts advanced under the Revolver, the “Loans”) to the Borrower in the
maximum principal amount of Fifty Million and no/100 Dollars ($50,000,000.00) (the “Revolver
Commitment”).

2.2 Purpose of Revolver and Availability.

2.2.1 Purpose.

Amounts advanced on the Revolver shall be used by the Borrower only to fund working capital,
capital expenditures, repurchase shares of Borrower, and other lawful general corporate expenses
and purposes of Borrower.

2.2.2 Availability.

Advances on the Revolver will be fully available to the Borrower as of the date hereof and through
March 30, 2016 (“Availability Period”), or such earlier date as the availability may
terminate as provided in this Agreement (the “Expiration Date”).

	(a)	 	During the Availability Period, the Bank will provide the Revolver to the Borrower in the
maximum amount of the Revolver Commitment.

 

3

 

	(b)	 	At no time may the outstanding principal amount advanced on the Revolver exceed the Revolver
Commitment. If the Borrower exceeds this limit, the Borrower will immediately pay the excess
to the Bank upon the Bank’s demand.

	(c)	 	The Revolver is a revolving line of credit. During the Availability Period, the Borrower may
repay principal amounts advanced thereunder and, subject to the terms and conditions in this
Agreement, reborrow them.

2.3 Request for Advances.

Any requests for advances on the Revolver by the Borrower shall be made by delivering to the Bank a
written request in the form of Request of Revolver Advance attached hereto as Exhibit 2.3,
executed by a duly authorized officer designated by the Borrower. Each Request for an advance on
the Revolver shall constitute, without the necessity of a specific written statement, a
representation and warranty by the Borrower, as of the date of such request for, and the Bank’s
making of, such an advance that (i) all of the Borrower’s representations and warranties set forth
in Section 7 of this Agreement are true and correct in all material respects as of the date
of the advance (except to the extent any such representation or warranty expressly relates to an
earlier date); (iii) no Event of Default shall have occurred and be continuing; and (iv) no Event
of Default will result from such advance.

2.4 Repayment Terms.

	(a)	 	The Borrower will pay accrued interest on the principal balance of the outstanding advances
on the Revolver commencing on May 1, 2011, and thereafter on the same day of each month, until
payment in full of the Revolver, such interest to be computed in accordance with Section
2.5.

	(b)	 	Not later than the Maturity Date, the Borrower shall repay to the Bank all outstanding and
unpaid principal, all accrued and unpaid interest and all other amounts payable under this
Agreement, and the Collateral Documents, as defined in Article 4 below.

2.5 Interest Rate.

	(a)	 	The interest rate on the outstanding amounts advanced on the Revolver shall be a rate per
year equal to the BBA LIBOR Daily Floating Rate, plus two hundred (200) basis points.

	(b)	 	The BBA LIBOR Daily Floating Rate is a fluctuating rate of interest which can change on each
banking day. The rate will be adjusted on each banking day to equal the British Bankers
Association LIBOR Rate (“BBA LIBOR”) for U.S. Dollar deposits for delivery on the date
in question for a one month term beginning on that date. The Bank will use the BBA LIBOR Rate
as published by Reuters (or other commercially available source providing quotations of BBA
LIBOR as selected by the Bank from time to time) as determined at approximately 11:00 a.m.
London time two (2) London Banking Days prior to the date in question, as adjusted from time
to time in the Bank’s sole discretion for reserve requirements, deposit insurance assessment
rates and other regulatory costs. If such rate is not available at such time for any reason,
then the rate will be determined
by such alternate method as reasonably selected by
the Bank. A “London Banking Day” is a day on which
banks in London are open for business and dealing
in offshore dollars.

 

4

 

2.6 Standby Letters of Credit.

	(a)	 	During the Availability Period, at the request of the Borrower and pursuant to this
Agreement, the Bank will issue standby letters of credit with a maximum maturity of one year,
but in no event shall the maturity ever extend beyond the Expiration Date.

	(b)	 	The amount of the letters of credit outstanding at any one time (including the drawn and
unreimbursed amounts of the letters of credit) may not exceed the aggregate of Ten Million and
No/100 Dollars ($10,000,000.00).

	(c)	 	In calculating the principal amount outstanding under the Revolver Commitment, the
calculation shall include the amount of any letters of credit outstanding, including amounts
drawn on any letters of credit and not yet reimbursed.

(d) The Borrower agrees:

	 	(i)	 	Any sum drawn under a letter of credit may, at the option of the Bank, be added
to the principal amount outstanding under the Revolver Commitment. The amount will
bear interest and be due as described elsewhere in this Agreement.

	 	(ii)	 	If there is a default under this Agreement, to immediately prepay and make the
Bank whole for any outstanding letters of credit.

	 	(iii)	 	The issuance of any letter of credit and any amendment to a letter of credit
is subject to the Bank’s written approval and must be in form and content satisfactory
to the Bank and in favor of a beneficiary acceptable to the Bank.

	 	(iv)	 	To sign the Bank’s form Application and Agreement for Standby Letter of Credit.

	 	(v)	 	To pay any issuance and/or other fees that the Bank notifies the Borrower will
be charged for issuing and processing letters of credit for the Borrower.

	 	(vi)	 	To allow the Bank to automatically charge its checking account for applicable
fees, discounts, and other charges.

	 	(vii)	 	To pay the Bank a non-refundable fee equal to 2.00% per annum (the “LC
Rate”) of the outstanding undrawn amount of each standby letter of credit, payable
annually in advance, calculated on the basis of the face amount outstanding on the day
the fee is calculated.

 

5

 

3. FEES AND EXPENSES

3.1 Fees.

	(a)	 	Loan Fee. The Borrower agrees to pay a loan fee (i) in consideration for the
extension of the Maturity Date of the Term Loan in the amount of Fifty Six Thousand Three
Hundred Forty Two and 36/100 Dollars ($56,342.36), and (ii) in consideration for the Revolver
Commitment in the amount of Two Hundred Thousand and no/100 Dollars ($200,000.00). The loan
fees shall be paid by the Borrower on the date of this Agreement and shall be fully paid and
non-refundable upon receipt by the Bank.

	(b)	 	Unused Commitment Fee. The Borrower agrees to pay a fee on any difference between
the Revolver Commitment and the outstanding amounts actually advanced on the Revolver at any
time and from time to time, determined by the daily amount of advances outstanding on the
Revolver during the specified period. The fee will be calculated at 0.25% per year.

This fee is due on May 1, 2011 and on the same day of each following month until the
expiration of the Availability Period.

	(c)	 	Late Fee. The Borrower agrees to pay a late fee in an amount equal to four percent
(4%) of the amount of any delinquent payment of principal or interest that is more than ten
(10) calendar days late. The imposition and payment of a late fee shall not constitute a
waiver of the Bank’s rights with respect to the default. This fee shall be in addition to the
accrual of interest at the default rate of interest pursuant to Section 5.6 below.

	(d)	 	Waiver Fee. If the Bank, at its discretion, agrees to waive or amend any terms of
this Agreement, the Borrower will, at the Bank’s option, pay the Bank a fee for each waiver or
amendment in an amount advised by the Bank at the time the Borrower requests the waiver or
amendment. Nothing in this paragraph shall imply that the Bank is obligated to agree to any
waiver or amendment requested by the Borrower. The Bank may impose additional requirements as
a condition to any waiver or amendment.

3.2 Expenses.

The Borrower agrees to repay the Bank within ten (10) days after request or invoice for all
expenses and costs incurred by the Bank in connection with the Loans, which may include, but are
not limited to, filing, recording and search fees, appraisal fees, survey fees, title report fees,
title insurance premiums, and documentation fees.

3.3 Reimbursement of Costs and Expenses.

	(a)	 	The Borrower agrees to also reimburse the Bank for any costs or expenses it incurs in the
preparation of this Agreement, any agreement, document or instrument required by this
Agreement, including, without limitation, the Collateral Documents, as defined in Article
4 below and any agreement, document or instrument required pursuant to Article 6
below. Expenses shall include, but are not limited to, reasonable attorneys’ fees and
costs, including any allocated costs of the Bank’s in-house counsel to the extent permitted
by applicable law.

 

6

 

	(b)	 	The Borrower agrees to also reimburse the Bank for the cost and expense of periodic field
examinations of the Collateral, and appraisals of the Collateral, at such intervals as the
Bank may reasonably require; provided, however, that so long as there is no Event of Default,
Borrower shall not be required to pay for more than one (1) appraisal in any calendar year.
The actions described in this paragraph shall include, without limitation, the actions taken
pursuant to Section 8.23 below, and may be performed by employees of the Bank or by
independent appraisers.

4. DEED OF TRUST, SECURITY AGREEMENT AND COLLATERAL

The Borrower’s obligations to the Bank under this Agreement will be secured by the property rights
and interests covered by the following (the “Collateral”):

A Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing dated as
of April 27, 2009, as amended and restated on April 8, 2011 (the “Deed of
Trust”) which shall cover the approximately 100 acres of land located at 3300
West Camelback Road, Phoenix, Arizona 85017-3030 and the other property, rights and
interest described in the Deed of Trust.

A Security Agreement dated as of April 8, 2011 (the “Security Agreement”).

The Deed of Trust, Security Agreement and any other document executed at any time by the Borrower
to secure the Loans are collectively, the “Collateral Documents”.

5. DISBURSEMENTS, PAYMENTS AND COSTS

5.1 Disbursements and Payments.

	(a)	 	Each payment by the Borrower will be made in U.S. Dollars and immediately available funds by
debit to a deposit account, as described in this Agreement or otherwise authorized by the
Borrower. For payments not made by direct debit, payments will be made by mail to the address
shown on the Borrower’s statement or at one of the Bank’s banking centers in Phoenix, Arizona,
or at such other banking center designated by the Bank, or by such other method as may be
permitted or directed by the Bank.

	(b)	 	The Bank may honor instructions for repayments or prepayments given by any one of the
individuals authorized to sign this Agreement or the Collateral Documents on behalf of the
Borrower, or any other individual designated in a writing delivered to the Bank by any one of
such authorized signers (each an “Authorized Individual”).

	(c)	 	For any payment under this Agreement made by debit to a deposit account, the Borrower will
maintain sufficient immediately available funds in the deposit account to cover such debit.
If there are insufficient immediately available funds in the deposit account on the date the
Bank enters any such debit authorized by this Agreement, the Bank may reverse the debit.

 

7

 

	(d)	 	The disbursement of the Loan and each advance under the Revolver by the Bank and each payment
by the Borrower on the Loans will be evidenced by records kept by the Bank, and shall be
conclusive, absent manifest error. In addition, the Bank may, at its discretion, require the
Borrower to sign a promissory note to further evidence the Loans, and the Borrower’s
obligation to repay the Loans, plus interest.

	(e)	 	Not later than five (5) calendar days prior to the date each payment of principal and
interest or any fees, costs or expenses from the Borrower becomes due (each a “Due
Date”), the Bank will mail to the Borrower a statement of the amounts that will be due on
the stated Due Date (the “Billed Amount”). The due date for any payment by Borrower
shall not be delayed or postponed if for any reason (A) Bank does not timely mail any such
statement; or (B) Borrower does not timely receive such statement. The calculations in each
such billing statement will be made on the assumption that no payments will be made between
the date of the billing statement and the Due Date, and that there will be no changes in the
applicable interest rate. If the Billed Amount differs from the actual amount due on the
stated Due Date (the “Accrued Amount”), the discrepancy will be treated as follows:

	 	(i)	 	If the Billed Amount is less than the Accrued Amount, the Billed Amount for the
following Due Date will be increased by the amount of the discrepancy. The Borrower
will not be in default by reason of any such discrepancy.

	 	(ii)	 	If the Billed Amount is more than the Accrued Amount, the Billed Amount for the
following Due Date will be decreased by the amount of the discrepancy.

Regardless of any such discrepancy, interest will continue to accrue
based on the actual amount of principal outstanding without
compounding. Interest shall also accrue on any fees, costs or
expenses that are not paid by the Borrower upon presentment of the
amount to the Borrower. The Bank will not pay the Borrower interest
on any overpayment.

5.2 Telephone and Telefax Authorization.

	(a)	 	The Bank may honor telephone, telefax or e-mail instructions for repayments or prepayments
given, or purported to be given, by any one of the Authorized Individuals.

	(b)	 	The Borrower will fully indemnify and hold the Bank harmless from all liability, loss, and
costs in connection with any act resulting from telephone, telefax or e-mail instructions the
Bank reasonably believes are made by any Authorized Individual. This section will survive
this Agreement’s termination, and will benefit the Bank and its officers, employees, and
agents.

5.3 Direct Debit.

	(a)	 	The Borrower agrees that on each Due Date the Bank will debit the Billed Amount from one of
Borrower’s accounts with the Bank as designated in writing by the Borrower (the
“Designated Account”).

 

8

 

5.4 Banking Days.

Unless otherwise provided in this Agreement, a banking day is a day other than a Saturday,
Sunday or other day on which commercial banks are authorized to close, or are in fact closed, in
the State of Arizona, and, if such day relates to amounts bearing interest at an offshore rate (if
any), means any such day on which dealings in dollar deposits are conducted among banks in the
offshore dollar interbank market. All payments and disbursements which would be due on a day which
is not a banking day will be due on the next banking day. All payments received on a day which is
not a banking day will be applied to the credit on the next banking day.

5.5 Interest Calculation.

Except as otherwise stated in this Agreement, all interest and fees, if any, will be computed
on the basis of a 360-day year and the actual number of days elapsed. This results in more
interest or a higher fee than if a 365-day year is used. Installments of principal which are not
paid when due under this Agreement shall continue to bear interest until paid.

5.6 Default Rate.

Following the occurrence of an Event of Default or after maturity of or after judgment has
been rendered on any obligation under this Agreement, all amounts outstanding under this Agreement,
including any (a) interest; or (b) fees, costs or expenses which are not paid within two (2)
business days after the date when due will at the option of the Bank bear interest at a rate which
is (and the LC Rate will increase to a rate which is) six hundred (600) basis points higher than
the applicable interest rate (or the LC Rate) in effective and accruing immediately prior to such
occurrence, maturity or judgment. This may result in the compounding of interest. This will not
constitute a waiver of any default and shall be in addition to the late fee pursuant to Section
3.1(c).

6. CONDITIONS

Before the Bank is required to make any advance on the Revolver Commitment pursuant to this
Agreement, it must receive any documents and other items it may reasonably require, in form and
content acceptable to the Bank, including any items specifically listed below.

6.1 Authorizations.

Evidence that the execution, delivery and performance by the Borrower of this Agreement and
any instrument or agreement required under this Agreement have been duly authorized.

6.2 Governing Documents.

A copy of the Borrower’s organizational and operating documents.

6.3 Deed of Trust.

Signed, acknowledged and properly recorded original Deed of Trust.

 

9

 

6.4 Security Agreement.

Signed original Security Agreement.

6.5 Title Insurance.

An ALTA lender’s title insurance policy (on a form acceptable to the Bank and from a title
company acceptable to the Bank), for Seventy Two Million Five Hundred Thirty Six Thousand Nine
Hundred Forty Four and no/100 Dollars ($72,530,944.00), insuring the Bank’s lien pursuant to the
Deed of Trust, with only such exceptions and exclusions as may be approved by the Bank and together
with such endorsements as the Bank may require (the “Title Policy”). The Title Policy may
be by an amendment to the current title policy issued for the Term Loan, in a form and content
acceptable to the Bank.

6.6 Payment of Fees, Costs and Expenses.

Payment of all fees and other amounts due and owing to the Bank, including without limitation
payment of all accrued and unpaid expenses incurred by the Bank as required by the Section
2.3 entitled “Reimbursement of Costs and Expenses.” The payment of all Reimbursement
Costs accruing prior to the date of this Agreement shall be set forth in the Closing Statement
referenced in Section 8.1 and may be paid out of the proceeds of any advance made under
the Revolver on the date hereof, if any.

6.7 Good Standing.

Certificates of good standing for the Borrower from the State of Delaware and the State of Arizona.

6.8 Legal Opinion.

A written opinion from the Borrower’s legal counsel, covering such matters as valid corporate
existence, authority to borrow, confirmation that entering into this Agreement will not cause a
violation of any other lending agreement, and any other matters the Bank may require. The legal
counsel and the terms of the opinion must be acceptable to the Bank.

6.9 Insurance.

Evidence of insurance coverage, as required pursuant to either (i) Section 8.14 of this
Agreement or (ii) the Collateral Documents.

6.10 Other Required Documentation.

	(a)	 	All documents and certificates set forth on the Closing Checklist delivered to Borrower from
the legal counsel of the Bank regarding the Loans (the “Closing Checklist”).

	(b)	 	All documents and certificates required by the Title Insurance Company as a condition to its
issuance of the Title Policy, and all endorsements thereto.

 

10

 

7. REPRESENTATIONS AND WARRANTIES

When the Borrower signs this Agreement, and until the Bank is repaid in full, the Borrower makes
the following representations and warranties as of and on each day the Term Loan or the Revolver
Commitment remains outstanding.

7.1 Formation.

Borrower is duly formed and validly existing under the laws of the State of Delaware.

7.2 Authorization.

This Agreement, and any instrument or agreement required hereunder, are within the Borrower’s
corporate powers, have been duly authorized, and do not conflict with any of its organizational or
governing documents.

7.3 Enforceable Agreement and Deed of Trust.

This Agreement and the Collateral Documents are each a legal, valid and binding agreement of the
Borrower, enforceable against the Borrower in accordance with their respective terms. In addition,
any instrument or agreement required under this Agreement, when executed and delivered, will be
similarly legal, valid, binding and enforceable.

7.4 Good Standing.

In each state in which the Borrower does business, it is properly licensed, in good standing, and,
where required, in compliance with fictitious name statutes, except where such failure to be so
licensed, in good standing and in compliance has not and would not reasonably be expected to have a
material adverse effect on the Borrower or its business.

7.5 No Conflicts.

This Agreement does not conflict with any law, agreement, or obligation by which the Borrower is
bound.

7.6 Financial Information.

All financial and other information that has been or will be supplied to the Bank pursuant to
Section 8.2 is sufficiently complete to give the Bank accurate and complete knowledge, in
all material respects, of the Borrower’s financial condition, including all material contingent
liabilities. Since the date of the most recent financial statement provided to the Bank, there has
been no material adverse change in the business condition (financial or otherwise), operations,
properties or prospects of the Borrower.

 

11

 

7.7 Lawsuits.

As of the date of this Agreement, there is no lawsuit, tax claim or other dispute pending, overtly
threatened in writing or, to Borrower’s actual knowledge, otherwise threatened against the
Borrower (or any of the Borrower’s property) which, if lost, would materially impair the Borrower’s
financial condition or ability to repay the Loans, except as have been disclosed in writing to the
Bank or as have otherwise been disclosed by the Borrower in any periodic report or other filing
made with the Securities and Exchange Commission (the “SEC”) under the Securities Act of
1933, as amended (the “Securities Act”) or the Securities Exchange Act of 1934, as amended
(the “Exchange Act”) (collectively, the “SEC Reports”), or if occurring after the
date of this Agreement, is promptly disclosed to the Bank pursuant to Section 8.13.

7.8 Collateral.

As of the time the Deed of Trust is recorded with the Recorder of Maricopa County, Arizona, the
Collateral is owned by the Borrower free of any title defects or any liens, except those which are
disclosed in the Title Policy referenced in Section 6.5 above or by a UCC financing
statement search. As of the time of filing a Financing Statement with the Arizona Secretary of
State for the Collateral to be perfected by such filing is owned by the Borrower free of any liens
of interest of any person or entity other than Permitted Liens (as defined in Section 8.8).

7.9 Permits, Franchises.

The Borrower possesses all permits, memberships, franchises, contracts and licenses required and
all trademark rights, trade name rights, patent rights, copyrights, and fictitious name rights
necessary to enable it to conduct the business in which it is now engaged except to the extent
Borrower’s failure to possess such permits or other rights has not resulted or would not reasonably
be expected to result in a material adverse effect on Borrower or its business.

7.10 Other Obligations.

As of the date of this Agreement, the Borrower is not in default on any obligation for borrowed
money, any purchase money obligation or any other material lease, commitment, contract, instrument
or obligation.

7.11 Tax Matters.

The Borrower has no knowledge of any pending assessments or adjustments in an amount exceeding One
Hundred Thousand Dollars and no/100 Dollars ($100,000.00) of its income tax for any year and all
taxes due have been paid, except as have been disclosed in writing to the Bank, or if the Borrower
obtains knowledge of such assessment or adjustment after the date of this Agreement, except as is
promptly disclosed to the Bank in writing.

7.12 No Event of Default.

There is no event which is, or with notice or lapse of time or both would be, an Event of Default
under this Agreement or any of the Collateral Documents.

7.13 Insurance.

The Borrower has obtained, and maintains in effect, the insurance coverage required in any of (i)
Section 8.14 of this Agreement, or (ii) pursuant to the Collateral Documents.

 

12

 

7.14 ERISA Plans.

	(a)	 	Each Plan (other than a multiemployer plan) is in compliance in all material respects with
the applicable provisions of ERISA, the Code and other federal or state law. Each Plan has
received a favorable determination letter from the IRS and to the best knowledge of the
Borrower, nothing has occurred which would cause the loss of such qualification. The Borrower
has fulfilled its obligations, if any, under the minimum funding standards of ERISA and the
Code with respect to each Plan, and has not incurred any liability with respect to any Plan
under Title IV of ERISA.

	(b)	 	There are no claims, lawsuits or actions (including by any governmental authority), and there
has been no prohibited transaction or violation of the fiduciary responsibility rules, with
respect to any Plan which has resulted or could reasonably be expected to result in a material
adverse effect on the Borrower or its business.

	(c)	 	With respect to any Plan subject to Title IV of ERISA:

	 	(i)	 	No reportable event has occurred under Section 4043(c) of ERISA for which the
PBGC requires 30-day notice.

	 	(ii)	 	No action by the Borrower or any ERISA Affiliate to terminate or withdraw from
any Plan has been taken and no notice of intent to terminate a Plan has been filed
under Section 4041 of ERISA.

	 	(iii)	 	No termination proceeding has been commenced with respect to a Plan under
Section 4042 of ERISA, and no event has occurred or condition exists which might
constitute grounds for the commencement of such a proceeding.

	(d)	 	The following terms have the meanings indicated for purposes of this Agreement:

	 	(i)	 	“Code” means the Internal Revenue Code of 1986, as amended from time to
time.

	 	(ii)	 	“ERISA” means the Employee Retirement Income Security Act of 1974, as
amended from time to time.

	 	(iii)	 	“ERISA Affiliate” means any trade or business (whether or not
incorporated) under common control with the Borrower within the meaning of Section
414(b) or (c) of the Code.

	 	(iv)	 	“PBGC” means the Pension Benefit Guaranty Corporation.

	 	(v)	 	“Plan” means a pension, profit-sharing, or stock bonus plan intended to
qualify under Section 401(a) of the Code, maintained or contributed to by the Borrower
or any ERISA Affiliate, including any multiemployer plan within the meaning of Section
4001(a)(3) of ERISA.

 

13

 

7.15 Location of Borrower.

As of the date of this Agreement, the place of business of the Borrower and its chief executive
office are each located at 3300 West Camelback Road, Phoenix, Arizona 85017-3030.

7.16 Closing Checklist.

The Borrower’s Survey and Environmental Certificate and Agreement listed on the Closing Checklist
and delivered to the Bank is true and correct in all material respects.

8. COVENANTS

The Borrower agrees that until the Bank is repaid in full and during the availability:

8.1 Use of Proceeds of Revolver.

To use and apply the proceeds of each advance on the Revolver only for the purposes set forth in
Section 2.2.1.

8.2 Financial Information.

To provide the following financial statements and other information; provided, that for so long as
the Borrower is required to file SEC Reports, the Borrower shall be deemed to have satisfied its
obligation to provide such financial statements and other information to the extent such financial
statements and other information are filed by the Borrower on the SEC’s EDGAR filing system and a
copy of each such filing is delivered to the Bank within five (5) calendar days of such filing.

	(a)	 	Copies of each Form 10-K Annual Report for Borrower filed with the SEC. If the Borrower does
not timely file, or is not required to file with the SEC, a Form 10-K Annual Report for
Borrower for any fiscal year, then, within ninety (90) days of each fiscal year end of the
Borrower, the Borrower shall provide to Bank the annual financial statements of Borrower,
certified and dated by an authorized financial officer. The financial statements delivered
separately or included in such Form 10-K Annual Reports must be (i) audited by a Certified
Public Accountant acceptable to the Bank; (ii) prepared on a consolidated basis (if
applicable); and (iii) include a balance sheet, statement of income and statement of cash
flow.

	(b)	 	Copies of each Form 10-Q Quarterly Report for Borrower filed with the SEC. If the Borrower
does not timely file, or is not required to file with the SEC, a Form 10-Q Quarterly Report
for Borrower for any fiscal quarter, then, within sixty (60) days of each fiscal quarter
(other than the fiscal quarter that ends with the fiscal year) the Borrower shall provide to
Bank the quarterly financial statements of Borrower, certified and dated by an authorized
financial officer. The financial statements delivered separately or included in such Form
10-Q Quarterly Report must be, (i) certified and dated by an authorized financial officer;
(ii) prepared on a consolidated basis (if applicable); and (iii) include a balance sheet,
statement of income and statement of cash flow.

 

14

 

	(c)	 	Copies of each Form 8-K Current Report for Borrower filed with the SEC.

	(d)	 	Promptly, upon sending or receipt, copies of any management letters and correspondence
relating to management letters, sent or received by the Borrower to or from the Borrower’s
auditor. If no management letter is prepared, the Bank may, in its discretion, request a
letter from such auditor stating that no deficiencies were noted that would otherwise be
addressed in a management letter.

	(e)	 	Consolidated Financial Projections covering a three (3) year time period and specifying the
assumptions used in creating the projections (the “Consolidated Financial
Projections”). The Consolidated Financial Projections shall be provided to the Bank no
less often than annually, and within seventy-five (75) days after the end of each fiscal year.

	(f)	 	Promptly upon the Bank’s request, such other books, records, statements, lists of property
and accounts, budgets, forecasts, pipeline reports or other reports as the Bank may reasonably
request; including, without limitation, information, documents, evidence and opinions of
compliance of any New Market Tax Credit transaction (“NMTC”) with the terms and
provisions of this Agreement.

	(g)	 	Within sixty (60) days of the end of each fiscal quarter (other than a fiscal quarter that
ends on last day of the fiscal year), a compliance certificate of the Borrower, signed by an
authorized financial officer in the form of Exhibit 8.2(g), which shall include,
without limitation, (i) the information and computations (in sufficient detail) to establish
compliance with the financial covenants set forth in Sections 8.3, 8.4, and
8.5 at the end of the period covered by the financial statements then being furnished
for such fiscal quarter, and (ii) a statement whether there existed as of the date of either
such financial statements or the date of the certificate, any default under this Agreement,
and if any such default exists, specifying the nature thereof and the action the Borrower is
taking and proposes to take with respect thereto (the “Quarterly Compliance
Certificate”). The form or delivery of any Quarterly Compliance Certificate does not
change the terms of any financial or other covenant contained in this Agreement.

	(h)	 	Within ninety (90) days of the end of each fiscal year, a compliance certificate of the
Borrower, signed by an authorized financial officer in the form of Exhibit 8.2(h),
which shall include, without limitation, (i) the information and computations (in sufficient
detail) to establish compliance with the financial covenants set forth in Sections
8.3, 8.4, and 8.5 at the end of the period covered by the financial
statements then being furnished for such fiscal year, (ii) the information to establish
compliance with the Educational Covenants contained herein, and (iii) a statement whether
there existed as of the date of such financial statements and whether there exists as of the
date of the certificate, any default under this Agreement, and if any such default exists,
specifying the nature thereof and the action the Borrower is taking and proposes to take with
respect thereto (the “Annual Compliance Certificate”). The form or delivery of any
Annual Compliance Certificate does not change the terms of any financial or other covenant
contained in this Agreement.

	(i)	 	Not later than the earlier of (A) June 30 of each year, or (B) upon the filing with the DOE
thereof, a copy of the Borrower’s most recent Title IV Compliance Audit (as such term is
defined by the DOE).

 

15

 

8.3 Funded Debt to Adjusted EBITDA Ratio.

To maintain on a consolidated basis a ratio of Funded Debt to Adjusted EBITDA as of the end of each
fiscal quarter and each fiscal year not exceeding 1.75:1.00.

“Funded Debt” means all outstanding liabilities for borrowed money and other
interest-bearing liabilities, including current and long term debt, less the non-current portion of
Subordinated Liabilities (as defined in Section 8.5 below).

“Adjusted EBITDA” means net income, less income or plus loss from discontinued operations
and extraordinary items, plus income taxes, plus interest expense, plus depreciation, depletion,
and amortization, as adjusted for (i) the amortization of prepaid royalty payments recorded in
conjunction with the settlement of dispute with the Borrower’s former owner that has been
terminated as of April 15, 2008, as disclosed in the SEC Reports; (ii) non-cash share based
compensation; and (iii) agreed upon, non-cash charges or non-recurring charges. This ratio will be
calculated at the end of each reporting period for which the Bank requires financial statements,
using the results of the twelve-month period ending with that reporting period.

8.4 Basic Fixed Charge Coverage Ratio.

To maintain on a consolidated basis a Basic Fixed Charge Coverage Ratio as of the end of each
fiscal quarter and each fiscal year of at least 1.50:1.00.

“Basic Fixed Charge Coverage Ratio” means the ratio of (a) the sum of net income plus (i)
royalty payments incurred pursuant to an agreement with the Borrower’s former owner that has been
terminated as of April 15, 2008, as disclosed in the SEC Reports; (ii) non-cash share based
compensation; and (iii) agreed upon, non-cash charges or non-recurring charges, plus interest
expense, and rent expense, to (b) the sum of interest expense, rent expense, the current portion of
long term debt, the current portion of capitalized lease obligations and dividends.

This ratio will be calculated at the end of each reporting period for which the Bank requires
financial statements, using the results of the twelve-month period ending with that reporting
period. The current portion of long-term liabilities will be measured as of the date of each
calculation.

8.5 Tangible Net Worth.

To maintain on a consolidated basis Tangible Net Worth as of the end of each fiscal quarter and
each fiscal year in an amount equal to at least (i) One Hundred Six Million Nine Hundred Seventy
Five Thousand and no/100 Dollars ($106,975,000.00); plus (ii) 50% of the Borrower’s net
income for each fiscal quarter commencing with fiscal quarter ending June 30, 2011 and each fiscal
quarter thereafter (without reduction for any net loss for any fiscal quarter).

 

16

 

“Tangible Net Worth” means the value of total assets including pre-paid royalty payments,
leaseholds and leasehold improvements, and reserves against assets but excluding goodwill, patents,
trademarks, trade names, organization expense, unamortized debt discount and expense, capitalized
or deferred research and development costs, deferred marketing expenses, and other like
intangibles, and monies due from affiliates, officers, directors, employees, shareholders, members
or managers) less total liabilities, including but not limited to accrued and deferred
income taxes, but excluding the non-current portion of Subordinated Liabilities.

“Subordinated Liabilities” means liabilities subordinated to the Borrower’s obligations to
the Bank in a manner acceptable to the Bank in its sole discretion.

8.6 No Subsidiaries.

Borrower shall not have, create or maintain any subsidiary, except for (i) any Qualified QALICB, as
defined in Section 8.7(f) below that has executed a Continuing Guaranty covering the Loans in such
form and content acceptable to the Bank, (ii) any subsidiary formed for a discrete business purpose
otherwise in compliance with this Agreement, approved by the Bank in it reasonable judgment and
which prior to engaging in any business executes a Continuing Guaranty covering the Loans and
related indebtedness and liabilities to the Bank (the “Guarantied Obligations”) and a
Security Agreement (and a Deed of Trust, as applicable) securing the Guaranteed Obligations and
such Continuing Guaranty, all in form and content acceptable to the Bank, or (iii) the Dormant
Subsidiary as defined in and pursuant to the remainder of this Section 8.6. The Borrower has
formed, but has not yet capitalized a subsidiary named “Grand Canyon University, Inc, an Arizona
corporation” which has not yet been capitalized and is dormant (the “Dormant Subsidiary”).
The Dormant Subsidiary shall not be activated, capitalized or transact any business until the
requirements in subsections (i) or (ii) of this Section 8.6 are satisfied as to the Dormant
Subsidiary.

8.7 Other Debts.

Not to have outstanding or incur any direct or contingent liabilities or lease obligations (other
than those to the Bank), or become liable for the liabilities of others, without the Bank’s written
consent. This does not prohibit:

	(a)	 	Acquiring goods, supplies, or merchandise on normal trade credit.

	(b)	 	Becoming and remaining liable with respect to subordinated indebtedness, the terms of such
indebtedness and the subordination thereof are reasonably acceptable to Bank and the maturity
date of which is at least one (1) year later than the Maturity Date.

	 
	(c)	 	Endorsing negotiable instruments received in the usual course of business.

	 
	(d)	 	Obtaining surety bonds in the usual course of business.

	(e)	 	Liabilities, lines of credit and leases in existence on the date of this Agreement as
disclosed in writing to the Bank or in the Borrower’s SEC Reports.

 

17

 

	(f)	 	Debt issued in connection with a qualified NMTC that is non-recourse unsecured debt (i) of a
[QALICB] that is at all times absolutely and unconditionally wholly owned and controlled by
the Borrower (a “Qualified QALICB”) and (ii) is fully, absolutely and unconditionally
forgivable without the payment of any money or other consideration not later than the seventh
anniversary of the date of issuance.

	(g)	 	Additional debts and lease obligations for business purposes which are not covered by (a)
through (f) above, and which do not exceed a total aggregate principal amount of Ten Million
and no/100 Dollars ($10,000,000.00) outstanding at any one time.

8.8 Other Liens.

Not to create, assume, or allow any security interest or lien (including judicial liens) on
property the Borrower (or any subsidiary permitted under Section 8.6 above) now or later owns,
except the “Permitted Liens”):

	(a)	 	Liens and security interests in favor of the Bank.

	 
	(b)	 	Liens for taxes not yet due.

	 
	(c)	 	Liens outstanding on the date of this Agreement disclosed in writing to the Bank.

	(d)	 	Purchase money security interests (or leasing of equipment) outstanding on the date of this
Agreement, and additional purchase money security interests in assets (or leasing of
equipment) acquired after the date of this Agreement, or liens on any asset existing at the
time of acquisition of such asset by the Borrower, or liens to secure any indebtedness
permitted hereby incurred by the Borrower at the time of or within ninety (90) days after the
acquisition of such asset, which indebtedness is incurred for the purpose of financing all or
any part of the purchase price thereof; provided that the total principal amount of the debts
or indebtedness secured by the liens covered by this Subsection 8.8(d) shall not
exceed Ten Million and no/100 Dollars ($10,000,000.00) in the aggregate at any one time.

	(e)	 	Statutory liens of landlords, liens of collecting banks under the UCC on items in the course
of collection, statutory liens and rights of set-off of banks, statutory liens of carriers,
warehousemen, mechanics, repairmen, workmen and materialmen, and other liens imposed by law,
in each case incurred in the ordinary course of business (i) for amounts not yet overdue or
(ii) for amounts that are overdue and that (in the case of any such amounts overdue for a
period in excess of five (5) days) are being contested in good faith by appropriate
proceedings, so long as such reserves or other appropriate provisions, if any, as shall be
required by GAAP shall have been made for any such contested amounts.

	(f)	 	Deposits made in the ordinary course of business in connection with workers’ compensation,
unemployment insurance and other types of social security, or to secure the performance of
statutory obligations, bids, surety and appeal bonds, leases, government contracts,
performance bonds, trade contracts, and other similar obligations (exclusive of obligations
for the payment of borrowed money).

 

18

 

	(g)	 	Licenses (with respect to intellectual property and other property), leases or subleases
granted to third parties not interfering in any material respect with ordinary conduct of the
business of Borrower consistent with past and anticipated practices.

	(h)	 	Easements, rights-of-way, restrictions, encroachments, and other minor defects or
irregularities in title, in each case which do not and will not (i) interfere in any material
respect with the ordinary conduct of the business of the Borrower; or (ii) adversely affect
the value of the Collateral in any material respect.

	(i)	 	Any (i) interest or title of a lessor or sublessor under any lease not prohibited by this
Agreement, (ii) lien or restriction that the interest or title of such lessor or sublessor may
be subject to, or (iii) subordination of the interest of the lessee or sublessee under such
lease to any lien or restriction referred to in the preceding clause (ii), so long as the
holder of such lien or restriction agrees to recognize the rights of such lessee or sublessee
under such lease.

	(j)	 	Liens arising from filing UCC financing statements relating solely to leases not prohibited
by this Agreement.

	(k)	 	Liens in favor of customs and revenue authorities arising as a matter of law to secure
payment of customs duties in connection with the importation of goods.

	(l)	 	Liens incurred in favor of insurance companies (or their financing affiliates) in connection
with the financing of insurance premiums in the ordinary course of business.

	(m)	 	Any zoning or similar law or right reserved to or vested in any government authority to
control or regulate the use of any real property.

Without limiting the foregoing, Borrower shall timely pay all amounts payable to the general
contractor, all subcontractors, materialmen and suppliers, as applicable, in connection with the
construction of the Event Center and Dormitory Building A. Promptly upon each payment, Borrower
shall deliver to Fidelity National Title Insurance Company at One East Washington Street, Suite
#450, Phoenix, AZ 85004, Attention: Kelli J. Vos, the following items with respect to each such
payment:

	 	(i)	 	A sworn statement from the general contractor identifying all individuals to
receive payment pursuant to the applicable AIA payment application;

	 	(ii)	 	AIA payment application from the general contractor signed by the Borrower and
including the architect’s certification for the applicable billing period; and

	 	(iii)	 	Conditional Lien Waivers from the general contractor and all subcontractors,
materialmen and suppliers identified in the general contractor’s sworn statement for
the applicable billing period.

Additionally, upon completion of the Event Center and Dorm Building A and final payment to the
general contractor, the Borrower shall deliver to Fidelity National
Title Insurance Company: (i) .a sworn statement of the Borrower identifying all contracts entered into by the
Borrower for the construction of the Event Center and Dormitory Building A; and, (ii)
Unconditional Lien Waivers from the general contractor and all subcontractors, materialmen and
suppliers identified in the general contractor’s sworn statement.

 

19

 

Upon receipt of all of the foregoing, Fidelity National Title Insurance Company shall issue ,
at no cost to the Borrower or Bank, an endorsement to the Title Insurance Policy insuring the Deed
of Trust, further insuring the Bank against all liens from the general contractor, all
subcontractors, materialmen and suppliers for the Event Center and Dormitory Building A.

8.9 Maintenance of Assets.

	(a)	 	Not to sell, assign, lease, transfer or otherwise dispose of any part of the Borrower’s
business or the Borrower’s assets except in the ordinary course of the Borrower’s business,
and in no case in an aggregate amount exceeding Five Million and no/100 Dollars
($5,000,000.00) in any fiscal year, except for transfers of property, that is at all times
subject to and subordinate in every respect to the lien and security interest in favor of the
Bank, that is part of a new NMTC and immediately and unconditionally result in such
transferred property being unconditionally owned by a Qualified QALICB and (i) without
restrictions or limitations of any type or nature, and (ii) without any liens and
encumbrances, except for Permitted Liens.

	(b)	 	Not to sell, assign, lease, transfer or otherwise dispose of any assets for less than fair
market value, or enter into any agreement to do so.

	 
	(c)	 	Not to enter into any sale and leaseback agreement covering any of its fixed assets.

	 
	(d)	 	To maintain and preserve all material rights, privileges, and franchises of the Borrower.

	(e)	 	To make any repairs, renewals, or replacements to keep the Collateral in good working
condition.

8.10 Investments.

Not to have any existing, or make any new, investments in any individual or entity (including,
without limitation, any repurchase of or investment in any stock, debt or other securities of
Borrower), or make any capital contributions or other transfers of assets to any individual or
entity, except for:

	(a)	 	Existing investments disclosed to the Bank in writing.

	 
	(b)	 	Investments in the Borrower’s current subsidiaries.

	(c)	 	Investments consistent with the Borrower’s Investment Policy as of the date of this
Agreement, a copy of which is attached hereto as Exhibit 8.10, as prepared by the
Controller and for purposes of this Section 8.10, any changes thereto that are
approved by the Board of Directors and CFO from time to time with the consent of the Bank,
which consent will not be unreasonably withheld, which may include investments in any of the
following:

	 	(i)	 	certificates of deposit;

 

20

 

	 	(ii)	 	U.S. treasury bills and other obligations of the federal government; and

	 	(iii)	 	readily marketable securities (including commercial paper, but excluding
restricted stock and stock subject to the provisions of Rule 144 of the Securities and
Exchange Commission).

	(d)	 	The stock repurchase program of Borrower for (i) up to $25,000,000.00 of Borrower’s stock
announced in the press release issued on August 16, 2010; and (ii) an additional $25,000,000
of properly authorized and legally permitted stock repurchases that is publicly announced
prior to December 31, 2012, and (iii) additional properly authorized and legally permitted
stock repurchases for which the Borrower provides evidence to the Bank that the Borrower is
and will remain (and the Borrower at all times remains) in compliance with all financial
covenants contained in this Agreement through such additional stock repurchases.

	(e)	 	An investment in a QALICB in connection with a qualified NMTC which is in compliance with
Sections 8.7(f) and 8.9(a)(ii).

	(f)	 	Additional investments permitted under Section 8.12(b) below.

	(g)	 	Additional investments which are not covered by (a) through (d) above, and which do not
exceed a total aggregate amount of Five Million and no/100 Dollar ($5,000,000.00), at any
time.

8.11 Loans to Officers or Affiliates.

Not to make any loans, advances or other extensions of credit (including extensions of credit in
the nature of accounts receivable or notes receivable arising from the sale or lease of goods or
services) to any of the Borrower’s executives, officers or directors (or any relatives of any of
the foregoing), or to any affiliated entities in excess of Five Hundred Thousand and no/100 Dollars
($500,000.00) in the aggregate to all of the foregoing at any one time; provided that this
Section 8.11 shall not prohibit Indebtedness issued in compliance with Section
8.7(f) above.

8.12 Additional Negative Covenants.

Not to, without the Bank’s written consent:

	(a)	 	Enter into any consolidation, merger, or other combination, or become a partner in a
partnership, a member of a joint venture, or a member of a limited liability company.

	(b)	 	Acquire or purchase a business or all or substantially all of the assets of a business, in an
aggregate amount exceeding an amount equal to 25% of the Borrower’s Tangible Net Worth on the
date of each such acquisition or purchase after giving effect to all prior, and the currently
planned acquisition or purchase; provided that, (i) such acquisition or
purchase is consensual (and not hostile) to the selling party; and (ii) the Borrower, is in
compliance with all covenants in this Agreement, and shall be, on a pro-forma basis, in
compliance with all covenants in this Agreement after giving effect to such acquisition or
purchase.

 

21

 

	(c)	 	Engage in any business activities substantially different from the Borrower’s present
business.

	 
	(d)	 	Liquidate or dissolve the Borrower’s business.

	(e)	 	Voluntarily suspend its business for more than ten (10) calendar days in any rolling three
hundred and sixty five (365) day period.

8.13 Notices to Bank.

To promptly notify the Bank in writing of:

	(a)	 	Any lawsuit in which the damages claimed exceed Five Million and no/100 Dollars
($5,000,000.00) against the Borrower or the disclosure of which would be required in an SEC
Report.

	(b)	 	Any material dispute between any governmental authority and the Borrower not otherwise
disclosed in an SEC Report, promptly delivered to the Bank.

	(c)	 	An Event of Default under this Agreement, or any event which, with notice or lapse of time or
both, would constitute an Event of Default.

	(d)	 	Any material adverse change in the Borrower’s business condition (financial or otherwise),
operations, properties or prospects, the Collateral, or the Borrower’s ability to repay the
Loans.

	(e)	 	Any change in the Borrower’s name, legal structure, principal, place of business, or its
chief executive office.

	(f)	 	Except as otherwise disclosed in any financial statements of Borrower or in any SEC Report,
any actual contingent liabilities of the Borrower in excess of Five Million and no/100 Dollars
($5,000,000.00) in the aggregate and, to Borrower’s knowledge, any such contingent liabilities
which are reasonably foreseeable, where such liabilities would cause an Event of Default.

	(g)	 	Not later than thirty (30) days prior to closing of any new NMTC a written notice of such
NMTC including (i) a detailed summary and explanation of the NMTC structure, (ii) evidence
that the closing of such NMTC will be in full compliance with the covenants contained in this
Agreement, and (iii) such other documents, information, evidence and opinions requested by the
Bank.

 

22

 

8.14 Insurance.

	(a)	 	General Business Insurance. To maintain insurance reasonably satisfactory to the
Bank as to amount, nature and carrier covering property damage (including loss of use and
occupancy) to any of the Borrower’s properties, business interruption insurance, public
liability insurance including coverage for contractual liability, product liability and
workers’ compensation, and any other insurance which is usual for the Borrower’s business.
Each policy shall provide for at least thirty (30) days prior notice to the Bank of any
cancellation thereof.

	(b)	 	Insurance Covering Collateral. To maintain insurance required pursuant to the Deed
of Trust. The insurance must be issued by an insurance company reasonably acceptable to the
Bank and must include a lender’s loss payable endorsement in favor of the Bank in a form
acceptable to the Bank.

	(c)	 	Evidence of Insurance. Upon the request of the Bank, to deliver to the Bank a copy
of each insurance policy, or, if permitted by the Bank, a certificate of insurance listing all
insurance in force, and when requested by the Bank, noting the Bank on each such policy as an
additional insured or loss payee, as appropriate.

8.15 Compliance with Laws. 

To comply with the applicable laws (including any fictitious or trade name statute), regulations,
and orders of any government body with authority over the Borrower’s business, except where the
failure to comply would not reasonably be expected to have a material adverse effect on the
Borrower or its business.

8.16 ERISA Plans. 

Promptly during each year, to pay and cause any subsidiaries to pay contributions adequate to meet
at least the minimum funding standards under ERISA with respect to each and every Plan; file each
annual report required to be filed pursuant to ERISA in connection with each Plan for each year;
and notify the Bank within ten (10) calendar days of the occurrence of any Reportable Event that
might constitute grounds for termination of any capital Plan by the Pension Benefit Guaranty
Corporation or for the appointment by the appropriate United States District Court of a trustee to
administer any Plan. Capitalized terms in this paragraph shall have the meanings defined within
ERISA.

8.17 ERISA Plans — Notices.

With respect to a Plan subject to Title IV of ERISA, to give prompt written notice to the Bank of:

	(a)	 	The occurrence of any reportable event under Section 4043(c) of ERISA for which the PBGC
requires 30-day notice.

	(b)	 	Any action by the Borrower or any ERISA Affiliate to terminate or withdraw from a Plan or the
filing of any notice of intent to terminate under Section 4041 of ERISA.

	 
	(c)	 	The commencement of any proceeding with respect to a Plan under Section 4042 of ERISA.

 

23

 

8.18 Books and Records.

To maintain adequate books and records of its corporate and business activities.

8.19 Audits.

Except as may be prohibited by applicable laws regarding confidentiality, to allow the Bank and its
agents to inspect the Borrower’s properties and examine, audit, and make copies of books and
records at any reasonable time. If any of the Borrower’s properties, books or records are in the
possession of a third party, the Borrower authorizes that third party to permit the Bank or its
agents to have access to perform inspections or audits and to respond to the Bank’s requests for
information concerning such properties, books and records.

8.20 Perfection of Liens.

To help the Bank perfect and protect its security interests in and liens on the Collateral, and
reimburse it for related costs it incurs to perfect, protect or enforce its security interests in
and liens on the Collateral.

8.21 Cooperation.

To take any action reasonably requested by the Bank to carry out the intent of this Agreement.

8.22 Flood and Other Insurance.

If any improved real property comprising the Collateral is located in a designated flood hazard
area, or becomes located in a designated flood hazard area after the date of this Agreement as a
result of any re-mapping of flood insurance maps by the Federal Emergency Management Agency, the
Borrower will be required to maintain flood insurance on the real property and any other portion of
the Collateral within such area.

8.23 Inspections and Appraisals of Real Property.

To allow the Bank and its agents to visit the real property comprising any of the Collateral at any
reasonable time for the purpose of inspecting such property and conducting appraisals thereof, and
deliver to the Bank any financial or other information concerning such property as the Bank may
request. So long as there is no Event of Default, Borrower shall not be required to pay for more
than one (1) appraisal in any calendar year.

8.24 Use or Leasing of the Real Property Collateral.

	(a)	 	To occupy the real property comprising any of the Collateral for the conduct of its regular
business. The Borrower will not change its intended use of such real property without the
Bank’s prior written approval.

 

24

 

	(b)	 	All leases of any portion of the real property comprising any of the Collateral and spaces
within such real property may be entered into with bona fide third party tenants, financially
capable of performing their obligations under the leases, in arms-length transactions at the
then current market rate for comparable space, area or use. All leases in the aggregate shall
not alter the Borrower’s current occupancy, control or use of the Collateral and shall not
cover any material part of the real property comprising any of the Collateral. The leases
shall not contain any right to purchase such real property or any present or future interest
in any portion of the real property other than the right to use and occupy the premises
demised. The Borrower will promptly obtain and deliver to the Bank such estoppel certificates
and subordination and attornment agreements from tenants as the Bank from time to time may
require provided that so long as there is no Event of Default Borrower shall not be required
to deliver such certificates more frequently than one (1) time per calendar year. The
Borrower will perform all obligations of landlord under all leases.

8.25 Indemnity Regarding Use of Real Property.

To indemnify, defend with counsel acceptable to the Bank, and hold the Bank harmless from and
against all liabilities, claims, actions, damages, costs and expenses (including all legal fees and
expenses of Bank’s counsel) arising out of or resulting from the construction of any improvements
on the real property comprising any of the Collateral, or the ownership, operation, or use of such
real property collateral, whether such claims are based on theories of derivative liability,
comparative negligence or otherwise. The Borrower’s obligations to the Bank under this Section
shall survive termination of this Agreement and repayment of the Borrower’s obligations to the Bank
under this Agreement, and shall also survive as unsecured obligations after any acquisition by the
Bank of the real property comprising any of the Collateral or any part of it by foreclosure or any
other means.

8.26 Educational Covenants.

The following Sections 8.27, 8.28, 8.29, and 8.30 shall be
collectively referred to as the “Educational Covenants.” The following definitions shall
apply to the Educational Covenants. Any term in the Educational Covenants that is not defined
herein shall have the meaning given to them by the DOE or Title IV.

“Title IV” shall mean Title IV of the Higher Education Act of 1965, as amended.

“Title IV Programs” means the programs of federal student financial assistance administered
pursuant to Title IV.

“School” shall mean Grand Canyon University.

“Education Law” means any federal, state, local or similar statute, law, ordinance,
regulation, rule, code, order, or binding standard issued or administered by, or related to, any
Education Agency and applicable to private educational institutions.

 

25

 

“Education Agency” means any entity or organization, whether governmental, government
chartered, private, or quasi-private, that engages in granting or withholding Educational
Approvals for, provides or administers financial assistance to or for students of, or otherwise
regulates private schools in accordance with standards relating to the performance, operation,
financial condition or academic standards of such schools, including, without limitation, the DOE,
DHS, state authorizing or licensing agencies, accrediting bodies, state student aid agencies, state
approving agencies for veterans benefits, and student loan guaranty agencies.

“DHS” means the U.S. Department of Homeland Security.

“DOE” shall mean the United Stated Department of Education.

8.27 Title IV Accreditation Requirements.

Borrower shall ensure that School maintains all customary accreditation requirements under Title IV
including all licenses, accreditations, certificates, permits, consents, authorizations and other
governmental, regulatory, or accreditation approvals or exemptions (the “Educational
Approvals”) necessary for the School to conduct its business, including all requisite approvals
or exemptions from the DOE, the State of Arizona, the Higher Learning Commission and any other
Education Agency. In addition, the Borrower shall ensure that the School maintains its eligibility
as a “proprietary institution of higher education,” as defined in 34 C.F.R. § 6005.5 under Title
IV, and remains party to, and in material compliance with, a valid Program Participation Agreement
(provisional or otherwise) with the DOE with respect to the School’s operations. Lastly, the
Borrower shall ensure that the School continues to hold a valid Eligibility and Certification
Approval Report (provisional or otherwise) issued by the DOE attesting to its Title IV Program
eligibility. Borrower shall also maintain all other academic accreditations (or substitute a
commercially reasonable substitute academic accreditation) as the Borrower reasonably determines
are necessary for the School to conduct its business provided that, if the Borrower elects to cease
maintaining a material academic accreditation without such substitution, then such election or
determination of the Borrower must be reasonably acceptable to the Bank. Borrower shall give Bank
notice within ten (10) business days of any breach of this Section 7.27.

8.28 DOE Composite Score Requirement. 

Borrower shall ensure that School maintains a DOE Composite Score of not less than 1.50 for any
fiscal year. In addition, Borrower shall ensure that School continues to be in material compliance
with the DOE standards of financial responsibility as set forth at 34 C.F.R. §§ 668.172 — 174. In
addition, Borrower shall notify Bank if it is required by the DOE to post a letter of credit,
including a letter of credit due to late funds pursuant to 34 C.F.R. § 668.173.

8.29 Long Term Student Receivables Limitation.

Borrower shall ensure that School does not allow its Long Term Receivables to Students to exceed an
amount equal to ten percent (10%) of the Borrower’s Tangible Net Worth as defined in Section
8.5, and calculated on consolidated basis as of the end of each fiscal quarter and each fiscal
year. In addition, Borrower will ensure that the School continues to comply with the statutory
provision at 20 U.S.C. § 1002(b)(1)(F) requiring that at least ten percent (10%) of its revenues
for any fiscal year are not derived from Title IV Program funds as required by 34 C.F.R. § 600.5.

 

26

 

8.30 Cohort Default Rate.

Borrower shall ensure that School does not allow its Cohort default rate to exceed any of (i)
twenty-five percent (25%) as calculated under the two-year method, for each of the Borrower’s three
most recent federal fiscal years, or (ii) thirty percent (30%) as calculated under the three-year
method, for each of the Borrower’s three most recent federal fiscal years, or (iii) forty percent
(40%) in any fiscal year, or (iv). a rate that may result in any suspension of eligibility or
sanctions pursuant to the Higher Education Act of 1965, as amended. In addition, Borrower shall
ensure that School meets the requirements for Federal Direct Loan Program loans and Federal Perkins
loans, as published by the DOE.

9. DEFAULT AND REMEDIES

If any of the following events of default (“Event of Default”) occurs, the Bank may do one
or more of the following: declare the Borrower in default, stop making any additional credit
available to the Borrower, and require the Borrower to repay its entire debt immediately and
without prior notice. In addition, if any Event of Default occurs, the Bank shall have all rights,
powers and remedies available under any instruments and agreements required by or executed in
connection with this Agreement, as well as all rights and remedies available at law or in equity.
If an Event of Default occurs under the paragraph entitled “Bankruptcy,” below, with
respect to the Borrower, then the entire debt outstanding under this Agreement will automatically
be due immediately.

9.1 Failure to Pay.

The Borrower fails to make a payment under this Agreement when due, and such failure continues for
three (3) calendar days.

9.2 Other Bank Agreements.

Any default occurs and is continuing under any other agreement the Borrower has with the Bank with
a payment or obligation amount exceeding Fifty Thousand and no/100 Dollars ($50,000.00), if such
default continues after giving effect to any applicable cure period.

9.3 Cross-default.

Any default occurs under any agreement in connection with any credit exceeding One Million and
no/100 Dollars ($1,000,000.00) the Borrower or any subsidiary of the Borrower’s has obtained from
anyone else or which the Borrower or any of the Borrower’s subsidiaries has guaranteed, if such
default continues after giving effect to any applicable cure period.

9.4 False Information.

The Borrower has given the Bank materially false or misleading information or representations.

 

27

 

9.5 Bankruptcy.

The Borrower files a bankruptcy petition; or a bankruptcy petition is filed against the Borrower
(and not dismissed within sixty (60) days); or the Borrower makes a general assignment for the
benefit of creditors.

9.6 Receivers.

A receiver or similar official is appointed for a substantial portion of the Borrower’s business
and such appointment is not terminated within ten (10) calendar days, or the business is
terminated.

9.7 Lien Priority.

The Bank fails to have an enforceable first lien (except for any prior liens to which the Bank has
consented in writing or are noted in the Title Policy) on or security interest in any of the
Collateral as security for the Loans or this Agreement.

9.8 [Intentionally Blank].

9.9 Judgments.

Any judgments or arbitration awards are entered against the Borrower, or the Borrower enters into
any settlement agreements, in each case with respect to any litigation or arbitration, in an
aggregate amount of Five Million and no/100 Dollars ($5,000,000.00) or more in excess of any
insurance coverage and (i) said judgments are not stayed or bonded over within thirty (30) days
after entry, or (ii) Borrower does not have sufficient liquidity to satisfy such judgment or award,
as determined by the Bank.

9.10 Material Adverse Change.

A material adverse change occurs in the Borrower’s business condition (financial or otherwise),
operations or properties, which could reasonably adversely affect the Borrower’s ability to repay
the Loans including any action by any government authority.

9.11 Intentionally Omitted.

9.12 Default under Related Documents.

Any Event of Default, as defined therein, or a default occurs (and continues beyond any applicable
notice or cure period and which gives the Bank an immediate right to exercise its remedies as a
result thereof), under any guaranty, subordination agreement, security agreement, deed of trust,
mortgage, or other document required by or delivered in connection with this Agreement or the
Loans, including, without limitation, the Deed of Trust or any other Collateral Document.

 

28

 

9.13 ERISA Plans.

Any one or more of the following events occurs with respect to a Plan of the Borrower subject to
Title IV of ERISA, provided such event or events could reasonably be expected, in the judgment of
the Bank, to subject the Borrower to any tax, penalty or liability (or any combination of the
foregoing) which, in the aggregate, could have a material adverse effect on the financial condition
of the Borrower:

	(a)	 	A reportable event shall occur under Section 4043(c) of ERISA with respect to a Plan.

	(b)	 	Any Plan termination (or commencement of proceedings to terminate a Plan) or the full or
partial withdrawal from a Plan by the Borrower or any ERISA Affiliate.

9.14 Educational Covenants.

A default occurs under any term or condition of the Educational Covenants and such default, if it
is capable of being cured, continues for a period of thirty (30) days.

9.15 Other Breach Under Agreement.

A default occurs under any other term or condition of this Agreement not specifically referred to
in this Article, including any failure by the Borrower to comply with any financial covenants set
forth in this Agreement, whether such failure is evidenced by financial statements delivered to the
Bank or is otherwise known to the Borrower or the Bank.

9.16 Representations and Warranties.

Any representation or warranty of the Borrower or any written certification or other material
written statement of fact made or deemed made by the Borrower or by a Authorized Individual on
behalf of the Borrower, in this Agreement or in any other Collateral Document, or in any document
delivered in connection herewith or therewith shall be incorrect or misleading in any material
respect when made or deemed made.

10. ENFORCING THIS AGREEMENT; MISCELLANEOUS

10.1 GAAP.

Except as otherwise stated in this Agreement, all financial information provided to the Bank and
all financial covenants will be made under generally accepted accounting principles, consistently
applied.

10.2 Governing Law.

This Agreement shall be governed by and construed in accordance with the laws of Arizona. To the
extent that the Bank has greater rights or remedies under federal law, whether as a national bank
or otherwise, this paragraph shall not be deemed to deprive the Bank of such rights and remedies as
may be available under federal law.

 

29

 

10.3 Successors and Assigns.

This Agreement is binding on the Borrower’s and the Bank’s successors and assignees. The Borrower
agrees that it may not assign this Agreement without the Bank’s prior consent. The Bank may sell
participations in or assign the Term Loan or the Revolver Commitment, and may exchange information
about the Borrower (including, without limitation, any information regarding any hazardous
substances) with actual or potential participants or assignees. If a participation is sold or the
Term Loan or Revolver Commitment is assigned, the purchaser will have the right of set-off against
the Borrower.

10.4 Dispute Resolution Provision.

This paragraph, including the subparagraphs below, is referred to as the “Dispute Resolution
Provision.” This Dispute Resolution Provision is a material inducement for the parties
entering into this agreement.

	(a)	 	This Dispute Resolution Provision concerns the resolution of any controversies or claims
between the parties, whether arising in contract, tort or by statute, including but not
limited to controversies or claims that arise out of or relate to: (i) this Agreement
(including any renewals, extensions or modifications); or (ii) any document related to this
agreement (collectively a “Claim”). For the purposes of this Dispute Resolution
Provision only, the term “parties” shall include any parent corporation, subsidiary or
affiliate of the Bank involved in the servicing, management or administration of any
obligation described or evidenced by this Agreement.

	(b)	 	At the request of any party to this agreement, any Claim shall be resolved by binding
arbitration in accordance with the Federal Arbitration Act (Title 9, U.S. Code) (the
“Act”). The Act will apply even though this Agreement provides that it is governed by
the law of a specified state.

	(c)	 	Arbitration proceedings will be determined in accordance with the Act, the then-current rules
and procedures for the arbitration of financial services disputes of the American Arbitration
Association or any successor thereof (“AAA”), and the terms of this Dispute Resolution
Provision. In the event of any inconsistency, the terms of this Dispute Resolution Provision
shall control. If AAA is unwilling or unable to (i) serve as the provider of arbitration or
(ii) enforce any provision of this arbitration clause, the Bank may designate another
arbitration organization with similar procedures to serve as the provider of arbitration.

	(d)	 	The arbitration shall be administered by AAA and conducted, unless otherwise required by law,
in Phoenix, Arizona. All Claims shall be determined by one arbitrator; however, if Claims
exceed Five Million and no/100 Dollars ($5,000,000.00), upon the request of any party, the
Claims shall be decided by three arbitrators. All arbitration hearings shall commence within
ninety (90) days of the demand for arbitration and close within ninety (90) days of
commencement and the award of the arbitrator(s) shall be issued within thirty (30) days of the
close of the hearing. However, the arbitrator(s), upon a showing of good cause, may extend
the commencement of the hearing for up to an additional sixty
(60) days. The arbitrator(s) shall provide a concise written statement of reasons for the
award. The arbitration award may be submitted to any court having jurisdiction to be
confirmed and have judgment entered and enforced.

 

30

 

	(e)	 	The arbitrator(s) will give effect to statutes of limitation in determining any Claim and may
dismiss the arbitration on the basis that the Claim is barred. For purposes of the application
of any statutes of limitation, the service on AAA under applicable AAA rules of a notice of
Claim is the equivalent of the filing of a lawsuit. Any dispute concerning this arbitration
provision or whether a Claim is arbitrable shall be determined by the arbitrator(s), except as
set forth at subparagraph (h) of this Dispute Resolution Provision. The arbitrator(s) shall
have the power to award legal fees pursuant to the terms of this Agreement.

	(f)	 	This paragraph does not limit the right of any party to: (i) exercise self-help remedies,
such as but not limited to, setoff; (ii) initiate judicial or non-judicial foreclosure against
any real or personal property collateral; (iii) exercise any judicial or power of sale rights,
or (iv) act in a court of law to obtain an interim remedy, such as but not limited to,
injunctive relief, writ of possession or appointment of a receiver, or additional or
supplementary remedies.

	(g)	 	The filing of a court action is not intended to constitute a waiver of the right of any
party, including the suing party, thereafter to require submittal of the Claim to arbitration.

	(h)	 	Any arbitration or trial by a judge of any Claim will take place on an individual basis
without resort to any form of class or representative action (the “Class Action
Waiver”). Regardless of anything else in this Dispute Resolution Provision, the validity
and effect of the Class Action Waiver may be determined only by a court and not by an
arbitrator. The parties to this Agreement acknowledge that the Class Action Waiver is
material and essential to the arbitration of any disputes between the parties and is
nonseverable from the agreement to arbitrate Claims. If the Class Action Waiver is limited,
voided or found unenforceable, then the parties’ agreement to arbitrate shall be null and void
with respect to such proceeding, subject to the right to appeal the limitation or invalidation
of the Class Action Waiver. The Parties acknowledge and agree that under no circumstances
will a class action be arbitrated.

	(i)	 	By agreeing to binding arbitration, the parties irrevocably and voluntarily waive any right
they may have to a trial by jury in respect of any Claim. Furthermore, without intending in
any way to limit this agreement to arbitrate, to the extent any Claim is not arbitrated, the
parties irrevocably and voluntarily waive any right they may have to a trial by jury in
respect of such Claim. This waiver of jury trial shall remain in effect even if the Class
Action Waiver is limited, voided or found unenforceable. WHETHER THE CLAIM IS DECIDED BY
ARBITRATION OR BY TRIAL BY A JUDGE, THE PARTIES AGREE AND UNDERSTAND THAT THE EFFECT OF THIS
AGREEMENT IS THAT THEY ARE GIVING UP THE RIGHT TO TRIAL BY JURY TO THE EXTENT PERMITTED BY
LAW.

 

31

 

10.5 Severability; Waivers.

If any part of this Agreement is not enforceable, the rest of the Agreement may be enforced. The
Bank retains all rights, even if it made the Term Loan or any advances under the Revolver after a
default. If the Bank waives a default, it may enforce a later default. Any consent or waiver
under this Agreement must be in writing.

10.6 Attorneys’ Fees.

The Borrower shall reimburse the Bank for any reasonable costs and attorneys’ fees incurred by the
Bank in connection with the enforcement or preservation of any rights or remedies under this
Agreement and any other documents executed in connection with this Agreement, and in connection
with any amendment, waiver, “workout” or restructuring under this Agreement. In the event
of a lawsuit or arbitration proceeding, the prevailing party is entitled to recover costs and
reasonable attorneys’ fees incurred in connection with the lawsuit or arbitration proceeding, as
determined by the court or arbitrator. In the event that any case is commenced by or against the
Borrower under the Bankruptcy Code (Title 11, United States Code) or any similar or successor
statute, the Bank is entitled to recover costs and reasonable attorneys’ fees incurred by the Bank
related to the preservation, protection, or enforcement of any rights of the Bank in such a case.
As used in this paragraph, “attorneys’ fees” includes the allocated costs of the Bank’s
in-house counsel.

10.7 Set-Off.

	(a)	 	In addition to any rights and remedies of the Bank provided by law, upon the occurrence and
during the continuance of any Event of Default under this Agreement, the Bank is authorized,
at any time, to set off and apply any and all Deposits of the Borrower held by the Bank
against any and all Obligations owing to the Bank. The set-off may be made irrespective of
whether or not the Bank shall have made demand under this Agreement or any guaranty, and
although such Obligations may be contingent or unmatured or denominated in a currency
different from that of the applicable Deposits.

	(b)	 	The set-off may be made without prior notice to the Borrower or any other party, any such
notice being waived by the Borrower to the fullest extent permitted by law. The Bank agrees
promptly to notify the Borrower after any such set-off and application; provided,
however, that the failure to give such notice shall not affect the validity of such
set-off and application.

	(c)	 	For the purposes of this Section 10.7, “Deposits” means any deposits (general
or special, time or demand, provisional or final, individual or joint) and any instruments
owned by the Borrower which come into the possession or custody or under the control of the
Bank. “Obligations” means all obligations, now or hereafter existing, of the Borrower
to the Bank under this Agreement and under any other agreement or instrument executed in
connection with this Agreement.

 

32

 

10.8 One Agreement.

This Agreement and any related security or other agreements required by this Agreement,
collectively:

	(a)	 	represent the sum of the understandings and agreements between the Bank and the Borrower
concerning this credit;

	(b)	 	replace any prior oral or written agreements between the Bank and the Borrower concerning
this credit; and

	(c)	 	are intended by the Bank and the Borrower as the final, complete and exclusive statement of
the terms agreed to by them.

In the event of any conflict between this Agreement and any other agreements required by this
Agreement, this Agreement will prevail. Any reference in any related document to a “promissory
note” or a “note” executed by the Borrower and dated as of the date of this Agreement
shall be deemed to refer to this Agreement, as now in effect or as hereafter amended, renewed, or
restated.

10.9 Indemnification.

The Borrower will indemnify and hold the Bank harmless from any loss, liability, damages,
judgments, and costs of any kind relating to or arising directly or indirectly out of (a) this
Agreement or any document required hereunder, (b) any credit extended or committed by the Bank to
the Borrower hereunder, and (c) any litigation or proceeding related to or arising out of this
Agreement, any such document, or any such credit. This indemnity includes but is not limited to
attorneys’ fees (including the allocated cost of in-house counsel). This indemnity extends to the
Bank, its parent, subsidiaries and all of their directors, officers, employees, agents, successors,
attorneys, and assigns. This indemnity will survive repayment of the Borrower’s obligations to the
Bank. All sums due to the Bank hereunder shall be obligations of the Borrower, due and payable
immediately without demand.

10.10 Notices.

Unless otherwise provided in this Agreement or in another agreement between the Bank and the
Borrower, all notices required under this Agreement shall be personally delivered or sent by first
class mail, postage prepaid, or by overnight courier, to the addresses on the signature page of
this Agreement, or sent by facsimile to the fax numbers listed on the signature page, or sent via
electronic mail (e-mail) with attachments in portable document format (PDF) to the e-mail addresses
listed on the signature page, or to such other addresses as the Bank and the Borrower may specify
from time to time in writing. Notices and other communications shall be effective (i) if mailed,
upon the earlier of receipt or five (5) days after deposit in the U.S. mail, first class, postage
prepaid, (ii) if telecopied, when transmitted, (iii) if hand-delivered, by courier or otherwise
(including telegram, lettergram or mailgram), when delivered or (iv) if sent via electronic mail,
upon electronic confirmation of delivery and receipt.

 

33

 

10.11 Headings.

Article and Section headings are for reference only and shall not affect the interpretation or
meaning of any provisions of this Agreement.

10.12 Counterparts.

This Agreement may be executed in as many counterparts as necessary or convenient, and by the
different parties on separate counterparts each of which, when so executed, shall be deemed an
original but all such counterparts shall constitute but one and the same Agreement. A copy of an
executed signature page that is transmitted by facsimile or sent as a PDF file via email shall, for
all purposes, be deemed to be an original.

10.13 Borrower Information; Reporting to Credit Bureaus.

The Borrower authorizes the Bank at any time to verify or check any information given by the
Borrower to the Bank, check the Borrower’s credit references, verify employment, and obtain credit
reports. The Borrower agrees that the Bank shall have the right at all times to disclose and
report to credit reporting agencies and credit rating agencies such information pertaining to the
Borrower and/or all guarantors as is consistent with the Bank’s policies and practices from time to
time in effect.

[Remainder of page is intentionally left blank; signature pages follow]

 

34

 

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

	 	 	 	 	 	 	 
	 	 	GRAND CANYON EDUCATION, INC.,

a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Daniel E. Bachus
 

Name: Daniel E. Bachus

Title: Chief Financial Officer
	 	 
	 
	 	 	 	 	 	 
	 	 	Contact Information for Notice:	 	 
	 
	 	 	 	 	 	 
	 	 	3300 West Camelback Road

Phoenix, Arizona 85017-3030

Attn: Daniel E. Bachus, CFO	 	 
	 
	 	 	 	 	 	 
	 	 	Telephone:    602-639-6648

Facsimile:       602-639-7846

Email: dbachus@gcu.edu	 	 
	 
	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David R. Barney	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: David R. Barney

Title: Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Contact Information for Notice:	 	 
	 
	 	 	 	 	 	 
	 	 	201 East Washington Street

AZ1-200-22-32, 22nd Floor

Phoenix, Arizona 85004-2343

Attn: David Barney — Commercial Banking	 	 
	 
	 	 	 	 	 	 
	 	 	Telephone:   602-523-2351	 	 
	 	 	Facsimile:      (to be sent toboth:)

312-453-5567

866-524-9739
	 	 
	 
	 	 	 	 	 	 
	 	 	Email: david.r.barney@bankofamerica.com	 	 

 

S-1

 

Federal law requires Bank of America, N.A. (the “Bank”) to provide the following notice.
The notice is not part of the foregoing agreement or instrument and may not be altered. Please
read the notice carefully.

USA PATRIOT ACT NOTICE Federal law requires all financial institutions to obtain, verify
and record information that identifies each person who opens an account or obtains a loan. The
Bank will ask for the Borrower’s legal name, address, tax ID number or social security number and
other identifying information. The Bank may also ask for additional information or documentation
or take other actions reasonably necessary to verify the identity of the Borrower, guarantors or
other related persons.

 

S-2

 

EXHIBIT 2.3

BORROWING REQUEST

[To Be Completed]

 

Exhibit 2.3

 

EXHIBIT 8.2(g)

FORM OF QUARTERLY COMPLIANCE CERTIFICATE

[Form Used for Real Estate As Modified for Financial Covenants.]

 

Exhibit 8.2(g)

 

EXHIBIT 8.2(h)

FORM OF ANNUAL COMPLIANCE CERTIFICATE

[Form Used for Real Estate As Modified for Financial Covenants.]

 

Exhibit 8.2(h)

 

EXHIBIT 8.10

BORROWER’S INVESTMENT POLICY

[Will be same as For Real Estate Loan]

 

Exhibit 8.10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}]]