Document:

exv10w2

Exhibit 10.2

EXECUTIVE EMPLOYMENT AGREEMENT

(General Counsel)

     This Executive Employment Agreement (the “Agreement”) is entered into on September 10,
2008, by and between Grand Canyon Education, Inc., a Delaware corporation (the “Company”),
and Christopher C. Richardson (“Executive”).

     The parties agree as follows:

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

     2. Duties.

          2.1 Position. Executive is employed as General Counsel and Secretary and shall have
the duties and responsibilities assigned by the Company’s Executive Chairman or Chief Executive
Officer as may be reasonably assigned from time to time. Executive shall perform faithfully and
diligently all duties assigned to Executive. The Company reserves the right to modify Executive’s
position and duties at any time in its sole and absolute discretion, except that any material
diminution in Executive’s duties shall be subject to Section 7.3(ii) below.

          2.2 Board. Executive shall serve as a member of the Board of Directors, subject to
the review and recommendation of the Company’s Nominating and Corporate Governance Committee.

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

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

     3. Term.

          3.1 Initial Term. The employment relationship pursuant to this Agreement shall be for
an initial term commencing on September 10, 2008 (the “Effective Date”) and continuing for
a period of four (4) years following such date (“Initial Term”), unless sooner terminated
in accordance with section 7 below.

          3.2 Renewal. On expiration of the Initial Term specified in subsection 3.1 above,
this Agreement will automatically renew for subsequent one (1) year terms (each a

1

 

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

     4. Compensation.

          4.1 Base Salary. As compensation for Executive’s performance of Executive’s duties
hereunder, the Company shall pay to Executive an initial Base Salary at the rate of Two-Hundred
Ninety-Seven Thousand Five-Hundred Dollars ($297,500.00) per year payable in accordance with the
normal payroll practices of the Company, less required deductions for state and federal withholding
tax, social security and all other employment taxes and payroll deductions. In the event
Executive’s employment under this Agreement is terminated by either party, for any reason,
Executive will earn the Base Salary prorated to the date of termination, except as otherwise set
forth herein. Executive’s Base Salary shall be reviewed annually by the Compensation Committee of
the Company’s Board of Directors (the “Compensation Committee”).

          4.2 Incentive Compensation. Executive will be eligible to earn incentive compensation
in the form of an annual bonus for each fiscal year of the Company as determined by the
Compensation Committee. The Compensation Committee will base such determination upon both the
Company’s achievement of overall performance metrics for the year and Executive’s achievement of
individual performance metrics as agreed upon by the Compensation Committee and the Executive.
Bonus amounts, if any, are to be awarded annually and payment shall be made within two and one-half
months following the end of the applicable Company fiscal year.

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

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

     7. Termination of Executive’s Employment.

          7.1 Termination for Cause by Company. Although the Company anticipates a mutually
rewarding employment relationship with Executive, the Company may terminate Executive’s employment
immediately at any time for Cause. For purposes of this Agreement, “Cause” is defined as:
(a) acts or omissions constituting gross negligence, recklessness or willful misconduct on the part
of Executive with respect to Executive’s obligations or otherwise relating to the business of the
Company; (b) Executive’s material breach of this Agreement,

2

 

including, without limitation, any breach of Section 8, Section 9, or Section 11; (c)
Executive’s breach of the Company’s Employee Nondisclosure and Assignment Agreement; (d)
Executive’s conviction or entry of a plea of nolo contendere for fraud, misappropriation or
embezzlement, or any felony or crime of moral turpitude; (e) Executive’s inability to perform the
essential functions of Executive’s position, with or without reasonable accommodation, due to a
mental or physical disability; (f) Executive’s willful neglect of duties as determined in the sole
and exclusive discretion of the Board of Directors, provided that Executive has received written
notice of the action or omission giving rise to such determination and has failed to remedy such
situation to the satisfaction of the Board of Directors within thirty (30) days following receipt
of such written notice, unless Executive’s action or omission is not subject to cure, in which case
no such notice shall be required, or (g) Executive’s death. In the event Executive’s employment is
terminated in accordance with this subsection 7.1, Executive shall be entitled to receive only
Executive’s Base Salary then in effect, prorated to the date of termination, and all fringe
benefits through the date of termination. All other Company obligations to Executive pursuant to
this Agreement will be automatically terminated and completely extinguished. Executive will not be
entitled to receive the Severance Package described in subsection 7.2 below. Any termination
pursuant to this subsection 7.1 shall be evidenced by a resolution or written consent of the Board
of Directors of the Company, and the Company shall provide Executive with a copy of such resolution
or written consent, certified by the Secretary of the Company, upon Executive’s written request.

          7.2 Termination Without Cause by Company/Severance. The Company may terminate
Executive’s employment under this Agreement without Cause at any time upon written notice to
Executive. In the event of such termination, Executive will receive Executive’s Base Salary then
in effect, prorated to the date of termination of employment. In addition, Executive will receive
a “Severance Package” that shall include (a) a severance payment equivalent to twelve (12)
months of Executive’s Base Salary then in effect on the date of termination, payable in accordance
with the Company’s regular payroll cycle commencing with the first payroll date occurring on or
after the 60th day following the date of Executive’s termination of employment, and (b) payment by
the Company of the premiums required to continue Executive’s group health care coverage for a
period of twelve (12) months following Executive’s termination, under the applicable provisions of
the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), provided that Executive
timely elects to continue and remains eligible for these benefits under COBRA, and does not become
eligible for health coverage through another employer during this period. Executive will only
receive the Severance Package if Executive: (i) complies with all surviving provisions of this
Agreement as specified in subsection 14.8 below; and (ii) executes a full general release,
releasing all claims, known or unknown, that Executive may have against the Company arising out of
or any way related to Executive’s employment or termination of employment with the Company, and
such release has become effective in accordance with its terms prior to the 60th day following the
termination date. All other Company obligations to Executive will be automatically terminated and
completely extinguished.

          7.3 Voluntary Resignation by Executive for Good Reason/Severance. Executive may
voluntarily resign Executive’s position with the Company for Good Reason at any time on thirty (30)
days’ advance written notice to the Company. In the event of Executive’s resignation for Good
Reason, Executive will be entitled to receive Executive’s Base Salary then in effect, prorated to
the date of termination of employment, and the Severance Package described in subsection 7.2 above,
provided Executive complies with all of the conditions described in subsection 7.2 above. All
other Company obligations to Executive pursuant to this Agreement will be automatically terminated
and completely extinguished. Executive will be

3

 

deemed to have resigned for Good Reason if Executive voluntarily terminates his employment
with the Company within ninety (90) days following the first occurrence of a condition constituting
Good Reason. “Good Reason” means the occurrence of any of the following conditions without
Executive’s written consent, which condition(s) remain(s) in effect thirty (30) days after
Executive provides written notice to the Company of such condition(s): (i) a material reduction in
Executive’s Base Salary as then in effect prior to such reduction, other than as part of a salary
reduction program among similar management employees, (ii) a material diminution in Executive’s
authority, duties or responsibilities as an employee of the Company as they existed prior to such
change, or (iii) a relocation of Executive’s principal place of work which increases Executive’s
one-way commute distance by more than fifty (50) miles. Executive will be deemed to have given
consent to any condition(s) described in this subsection if Executive does not provide written
notice to the Company of his intent to exercise his rights pursuant to this subsection within
thirty (30) days following the first occurrence of such condition(s).

          7.4 Voluntary Resignation by Executive Without Good Reason. Executive may voluntarily
resign Executive’s position with the Company without Good Reason at any time on thirty (30) days’
advance written notice to the Company. In the event of Executive’s resignation without Good
Reason, Executive will be entitled to receive only Executive’s Base Salary, prorated to the date of
termination of employment, and all fringe benefits through the date of termination. All other
Company obligations to Executive pursuant to this Agreement will be automatically terminated and
completely extinguished. In addition, Executive will not be entitled to receive the Severance
Package described in subsection 7.2 above.

          7.5 Termination After a Change in Control.

               (a) Severance Payment; Option Vesting Acceleration. If, upon or within twelve (12)
months after a Change in Control (as that term is defined below), Executive’s employment is
terminated by the Company other than for Cause (as defined in subsection 7.1 above) or Executive
resigns for Good Reason (as defined in subsection 7.3 above), then (i) Executive shall be entitled
to receive (A) Executive’s Base Salary, prorated to the date of termination of employment, and (B)
the Severance Package described in subsection 7.2 above, provided Executive complies with all of
the conditions described in subsection 7.2 above, and (ii) to the extent not yet vested, any stock
options or other equity grants granted to Executive by the Company shall vest in full as of the
date of such termination of employment, provided Executive complies with the conditions described
in subsection 7.2 above.

               (b) Parachute Payments. If, due to the benefits provided under subsection 7.5(a) and
any other payments or benefits, Executive would be subject to any excise tax pursuant to Section
4999 of the Internal Revenue Code of 1986, as amended (the “Code”) due to characterization
of any such amounts as excess parachute payments pursuant to Section 280G of the Code, the amounts
payable under subsection 7.5(a) will be reduced (to the least extent possible) in order to avoid
any “excess parachute payment” under Section 280G(b)(1) of the Code.

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

                    (i) Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934 (the “Exchange Act”)), becomes the “beneficial owner” (as such term is defined
in Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of the
Company representing more than fifty percent (50%) of the total

4

 

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

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

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

                    (iv) the dissolution or liquidation of the Company.

          7.6 Termination of Employment Upon Nonrenewal. In the event either party decides not
to renew this Agreement for a subsequent term in accordance with subsection 3.2 above, this
Agreement will expire, Executive’s employment with the Company will terminate and Executive will
only be entitled to Executive’s Base Salary then in effect paid through the last day of the then
current term. All other Company obligations to Executive pursuant to this Agreement will be
automatically terminated and completely extinguished. Executive will not be entitled to receive
the Severance Package described in subsection 7.2 above, but shall be subject to the surviving
provisions of this Agreement as set forth in section 14.8 below.

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

          7.8 Application of Section 409A.

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

5

 

such separation from service. All such amounts that would, but for this subsection, become
payable prior to the Delayed Payment Date will be accumulated and paid on the Delayed Payment Date.

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

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

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

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

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

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

6

 

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

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

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

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

7

 

     13. Insurance; Indemnification.

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

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

     14. General Provisions.

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

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

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

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

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

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

8

 

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

          14.8 Survival. Sections 9 (“Other Covenants”), 10 (“Confidentiality and Proprietary
Rights”), 11 (“Non-Competition; Nonsolicitation”), 12 (“Injunctive Relief”), 13 (“Insurance;
Indemnification”), 14 (“General Provisions”) and 15 (“Entire Agreement”) of this Agreement shall
survive termination of Executive’s employment with the Company.

     15. Entire Agreement. This Agreement, including the Employee Nondisclosure and
Assignment Agreement incorporated herein by reference, constitutes the entire agreement between the
parties relating to this subject matter and supersedes all prior or simultaneous representations,
discussions, negotiations, and agreements, whether written or oral. This agreement may be amended
or modified only with the written consent of Executive and the Board. No oral waiver, amendment or
modification will be effective under any circumstances whatsoever.

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

	 	 	 	 	 
	 	CHRISTOPHER C. RICHARDSON

 	 
	Dated: September 10, 2008 	By:  	/s/ Christopher C. Richardson
 	 
	 	 	 	 
	 	 	Address:  	 
	 
	 	 	  	 
	 
	 

	 	 	 	 	 
	 	GRAND CANYON EDUCATION, INC.

 	 
	Dated: September 10, 2008 	By  	/s/ Brian E. Mueller
 	 
	 	 	Name:  	Brian E. Mueller 	 
	 	 	Title:  	Chief Executive Officer
	 
	 	 	  	
 	 
	 	 	Address:  	  3300 West Camelback Road

Phoenix, Arizona 85017 	 
	 

9exv10w3

Exhibit 10.3

AMENDED AND RESTATED

SENIOR MANAGEMENT AGREEMENT

     This Amended and Restated Senior Management Agreement (“Agreement”) is entered into
September 10, 2008, between Grand Canyon Education, Inc., a Delaware corporation (the
“Company”), and John Crowley (“Executive”). Terms used in this Agreement and not
otherwise defined shall have the meanings set forth in Article 4 of this Agreement.

     WHEREAS, the Company and Executive previously entered into an agreement to provide for the
terms and conditions of Executive’s at will employment with the Company;

     WHEREAS, the success of the business of the Company is dependent on the goodwill established
by Executive and the Company’s directors, executive officers and employees with the Company’s
customers and the public generally; and

     WHEREAS, the Company and Executive desire to amend and restate the agreement on the terms set
forth in this Agreement.

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and
Executive hereby agree as follows:

ARTICLE 1

EMPLOYMENT

     1.1 Employment. The Company hereby engages Executive to serve as Chief Operating
Officer and Executive Vice President of the Company, and Executive agrees to serve the Company as
such at the direction of the Board of Directors (“Board”), for the period beginning on the
date hereof and until Separation, in the capacities, and subject to the terms and conditions, set
forth in this Agreement (such period to be referred to as the “Service Term”). The Company
and Executive agree that this Agreement supersedes any employment agreement previously existing
between Executive and Company or any of its predecessors (including Significant Education, LLC),
and such employment agreement(s) shall be deemed to terminate as of the date of this Agreement.

     1.2 Services. During the Service Term, Executive shall have all of the duties and
responsibilities customarily rendered by senior management of companies of similar size and nature,
with similar title and responsibility and as are provided in the Company’s Bylaws and/or may be
delegated from time to time by the Chief Executive Officer or the Board; provided, however, the
following actions of the Company must be approved in advance by the Board:

          (a) Acquisitions or dispositions of the assets or Capital Stock of any entity (other than
inventory or transactions entered into in the ordinary course of business);

          (b) Agreements to borrow money on behalf of the Corporation;

 

 

          (c) Senior management agreements or employment agreements (other than standard confidentiality
and non-competition agreements with employees), including any amendments thereof;

          (d) Appointment, separation and remuneration of senior management;

          (e) Bonus or other incentive plans for senior management or other employees;

          (f) Increase the compensation of any of the Company’s employees in excess of that compensation
customarily paid to employees in companies of similar size, or similar maturity, and in a similar
business;

          (g) Make, enter into or amend any joint venture agreement or contract, agreement or
arrangement with any consultant providing for gross compensation in excess of $50,000 over the term
of the agreement;

          (h) Issuances of Capital Stock, stock options, warrants or other securities or plans or
agreements relating to the same;

          (i) The establishment of annual corporate objectives;

          (j) The establishment of annual operating and capital expenditure budgets;

          (k) Enter into any agreement or arrangement with any governmental authority;

          (l) Dividends, distributions and redemptions of Capital Stock; and

          (m) All actions involving statutory corporate matters, including but not limited to,
amendments to the Company’s Certificate of Incorporation or Bylaws or qualifying to do business in
other jurisdictions.

     Executive will devote substantially all of his business time and attention (except for
vacation periods and periods of illness or other incapacity) to the business of the Company.
Notwithstanding the foregoing, and provided that such activities do not unreasonably interfere with
the fulfillment of Executive’s obligations hereunder, including the non-compete provisions below,
Executive may serve as a director or trustee of any charitable or non-profit entity with the
consent of the Board, acquire investment interests in one or more entities which are not, directly
or indirectly, in competition with the Company or are customers or suppliers of the Company, own up
to 5% of the outstanding voting securities of any publicly-held company, and from time to time,
consult with other non-competing businesses (including Crowley Transportation Systems, LLC).
Executive will perform his services for the Company at the Company’s principal place of business in
Phoenix, Arizona (“Current Location”) or any other location mutually agreed by Executive
and the Company. Executive will travel to such other locations as may be reasonably necessary in
order to discharge his duties hereunder. In the event that the Company proposes a location for
Executive to perform services hereunder that is more than fifty (50) miles from the Current
Location and Executive agrees to relocate, the Company will reimburse Executive for all reasonable
relocation expenses incurred by Executive, including but

2

 

not limited to moving expenses and real estate brokerage commissions. In all other events,
relocation expenses shall be borne by Executive, provided, however, that Executive will be provided
with all applicable moving and relocation benefits in accordance with the Company’s policies in
existence at the time of the relocations.

     1.3 Salary, Bonus and Benefits. During the Service Term, the Company will pay
Executive a base salary (the “Annual Base Salary”) as the Board may designate from time to
time, at the rate of not less than Two Hundred Ninety Seven Thousand Five Hundred Dollars
($297,500) per annum. The Annual Base Salary shall be subject to review annually by the Board;
provided, however, that the Annual Base Salary shall not be reduced during the Service Term.
Executive will be eligible to receive performance bonuses as determined by the Board based upon the
Company’s achievement of performance, budgetary and other objectives set by the Board. In
addition, during the Service Term, Executive will be entitled to the insurance, vacation, holidays
and other benefits consistent with the Company’s past practice for its employees generally and as
approved by the Board.

     1.4 Separation.

          (a) Events of Separation. Executive’s employment with the Company shall cease upon
the occurrence of any of the following (a “Separation”):

          (i) Executive’s death.

          (ii) Executive’s disability, which means his incapacity due to physical or mental
illness or condition such that he is unable to perform his previously assigned duties where
(1) such incapacity has been determined to exist by either (x) the Company’s disability
insurance carrier or (y) by the concurring opinions of two licensed physicians (one selected
by the Company and one by Executive), and (2) the Board has determined, based on competent
medical advice, that such incapacity will continue for such period of time of at least three
(3) continuous months and that it would have a material adverse effect on the Company;
provided, however, that in the event Executive is insured pursuant to any disability
insurance coverage maintained or paid for by the Company, any such Separation shall occur
only upon eligibility of Executive to receive payment of such disability insurance benefits,
subject to compliance with the terms and requirements of such disability insurance. Any
such Separation for disability shall be only as expressly permitted by the Americans with
Disabilities Act.

          (iii) Separation by the Company upon the Board’s determination, in its good faith
judgment, that such separation is in the best interests of the Company. Such Separation
will require delivery to Executive of a written notice from the Board that Executive has
been terminated (“Notice of Separation”) with or without Cause.

          (iv) Executive’s voluntary resignation by the delivery to the Board of a written notice
from Executive that Executive has resigned with or without Good Reason.

3

 

          (b) Rights on Separation.

          (i) In the event that Separation is by Executive with Good Reason or a termination by
the Company without Cause, the Company will continue to pay to Executive a monthly portion
of the Annual Base Salary for a period equal to six (6) months commencing on the date of
Separation, subject, however, to Section 1.4(c) below. In addition, the Company shall have
the option, in its sole discretion, exercisable by delivering written notice to Executive
within thirty (30) days after the date of Separation by Executive with Good Reason or by the
Company without Cause, to pay to Executive a monthly portion of the Annual Base Salary for
an additional period of six (6) months commencing on the date which is six (6) months after
the date of Separation (the “Extension Severance”), in which case the Non-compete
Period (as defined in Section 3.1) shall be extended as provided by Section 3.1. Executive
and the Company agree that the amounts payable pursuant to this subparagraph (i) shall, for
all purposes of Section 409A (as defined below), be treated as a right to a series of
separate payments.

          (ii) If the Company terminates Executive’s employment for Cause, if Executive dies or
is disabled, if Executive resigns without Good Reason or in the event of a Sale of the
Company (as defined in the Stockholders Agreement), the Company’s obligations to pay any
compensation or benefits under this Agreement will cease effective the date of Separation.
Executive’s right to receive any other benefits will be determined under the provisions of
applicable plans, programs or other coverages.

          (iii) Notwithstanding the foregoing, the Company’s obligation to Executive for
severance pay or other rights under either subparagraphs (i) or (ii) above (the “Severance
Pay”) shall cease if Executive is in violation of the provisions of Articles 2 or 3 hereof.
The Severance Pay, if any, shall be paid by the Company to Executive in equal installments
payable commencing on the Company’s regularly scheduled payroll date next following the date
of Executive’s Separation, subject, however, to Section 1.4(c) below.

          (iv) Until such time as Executive has received all of his Severance Pay, he will be
entitled to continue to receive the benefits to which he is entitled or is participating in
accordance with the provisions of Section 1.3 of this Agreement, subject, however, to
Section 1.4(c) below.

          (c) Compliance with Section 409A of the Internal Revenue Code (“Section 409A”).
Notwithstanding any other provision of this Agreement to the contrary, the provision, time and
manner of payment or distribution of all compensation and benefits provided by this Agreement that
constitute deferred compensation subject to and not exempted from the requirements of Section 409A
(“Section 409A Deferred Compensation”) shall be subject to, limited by and construed in
accordance with the requirements of Section 409A, including the following:

          (i) Payments and benefits constituting Section 409A Deferred Compensation otherwise
payable or provided pursuant to Section 1.4(b) shall be paid or

4

 

provided only at or following the time that Executive has experienced a “separation
from service” within the meaning of Section 409A (“Separation from Service”).

          (ii) Payments and benefits constituting Section 409A Deferred Compensation to be paid
or provided pursuant to Section 1.4(b) at a time when Executive is a “specified employee”
within the meaning of Section 409A shall be paid or provided commencing on the later of
(1) the date that is six (6) months and one (1) day after the date of Executive’s Separation
from Service or, if earlier, the date of death of Executive (in either case, the
“Delayed Payment Date”), or (2) the date or dates on which such Section 409A
Deferred Compensation would otherwise be paid or provided in accordance with Section 1.4(b).
All such amounts that would, but for this subparagraph (ii), become payable prior to the
Delayed Payment Date shall be accumulated and paid on the Delayed Payment Date.

          (iii) To the extent that all or any portion of the Company’s payment or reimbursement
to Executive for the cost of the Company’s obligation to provide benefits pursuant to
Section 1.4(b)(iv) (the “Company-Provided Benefits”) would exceed an amount for
which, or continue for a period of time in excess of which, such Company Provided Benefits
would qualify for an exemption from treatment as Section 409A Deferred Compensation, the
Company shall, for the duration of the applicable period, pay or reimburse Executive for the
applicable Company-Provided Benefits in an amount not to exceed $3,800 per calendar year or
any portion thereof included in the applicable period. The amount of Company-Provided
Benefits furnished in any taxable year of Executive shall not affect the amount of
Company-Provided Benefits furnished in any other taxable year of Executive. Any right of
Executive to Company-Provided Benefits shall not be subject to liquidation or exchange for
another benefit. Any reimbursement for Company-Provided Benefits to which Executive is
entitled shall be paid no later than the last day of Executive’s taxable year following the
taxable year in which Executive’s expense for such Company-Provided Benefits was incurred.

ARTICLE 2

CONFIDENTIAL INFORMATION

     Executive acknowledges that the information, observations and data obtained by him as an
employee and owner of the Company, or during the course of his performance under this Agreement,
concerning the business and affairs of the Company and its Affiliates or acquisition opportunities
in or reasonably related to the Company’s business or industry (“Confidential Information”)
are the confidential and proprietary trade secrets and other property of the Company. Therefore,
except as may be required by the lawful order of a court or agency of competent jurisdiction,
Executive agrees that he will not disclose to any unauthorized Person or use for his own account
any Confidential Information without the Board’s written consent unless and to the extent that the
aforementioned matters become generally known to and available for use by the public other than as
a result of Executive’s acts or omissions. Executive agrees to deliver to the Company on the date
of Separation, or at any other time the Company may request in writing after the date of
Separation, all memoranda, notes, plans, records, reports and other

5

 

documents (and copies thereof) relating to the business of the Company and its Affiliates, or
their acquisition prospects which he may then possess or have under his control.

ARTICLE 3

NONCOMPETITION, NONSOLICITATION AND NON-DISPARAGEMENT

     3.1 Noncompetition and Nonsolicitation. Executive acknowledges that in the course of
his employment with the Company he will serve as a member of the Company’s senior management and
will become familiar with the Company’s trade secrets and with other Confidential Information and
that his services will be of special, unique and extraordinary value to the Company. Therefore,
Executive agrees that, during the Service Term, and during the twelve (12) month period following
the Service Term, or if the Company elects to pay Extension Severance, the twenty-four (24) month
period following the Service Term (collectively, the “Non-compete Period”), he shall not
directly or indirectly (A) own (except ownership of less than 5% of any class of securities which
are listed for trading on any securities which are listed for trading on any securities exchange or
which are traded in the over-the-counter market), manage, control, participate in, consult with,
render services for, or in any manner engage in the operation of a regionally accredited higher
education institution or any business in which Executive had significant involvement in the
Company’s or any of its predecessors’ business prior to Executive’s Separation; (B) solicit funds
on behalf of, or for the benefit of, any regionally accredited higher education institution other
than the Company or any other entity that competes with the Company; (C) solicit individuals who
are current or prospective students of the Company to be students for any other regionally
accredited higher education institution; (D) induce or attempt to induce any employee of the
Company to leave the employ of the Company, or in any way interfere with the relationship between
the Company and any employee thereof, or (E) induce or attempt to induce any student, customer,
supplier, licensee or other business relation of the Company to cease doing business with, or
modify its business relationship with, the Company, or in any way interfere with or hinder the
relationship between any such student, customer, supplier, licensee or business relation and the
Company.

     3.2 Non-Disparagement. Following Separation, Executive agrees not to make to any
Person, including but not limited to customers of the Company, any statement that disparages the
Company or which reflects negatively upon the Company or the Investors, including but not limited
to statements regarding the Company’s financial condition, its officers, directors, stockholders,
employees and affiliates.

     3.3 Enforcement. If, at the time of enforcement of Articles 2 or 3 of this Agreement,
a court holds that the restrictions stated herein are unreasonable under circumstances then
existing, the parties hereto agree that the maximum duration, scope or geographical area reasonable
under such circumstances shall be substituted for the stated period, scope or area and that the
court shall be allowed to revise the restrictions contained herein to cover the maximum duration,
scope and area permitted by law. Because Executive’s services are unique and because Executive has
access to Confidential Information, the parties hereto agree that money damages would be an
inadequate remedy for any breach of this Agreement. Therefore, in the event a breach or threatened
breach of this Agreement, the Company or its successors or assigns may, in

6

 

addition to other rights and remedies existing in their favor, apply to any court of competent
jurisdiction for specific performance and/or injunctive or other relief in order to enforce, or
prevent any violations of, the provisions hereof (without posting a bond or other security).

ARTICLE 4

DEFINITIONS

     “Affiliate” means any other person, entity or investment fund controlling, controlled by or
under common control with the Company, including without limitation, any of its Subsidiaries.

     “Capital Stock” shall mean all shares of all classes of the Company’s capital stock,
including, without limitation, the Company’s preferred stock and common stock.

     “Cause” shall mean:

	 	(1)	 	Executive’s (i) commission of a felony or a crime involving moral turpitude, or
the commission of any other willful act or omission involving dishonesty or fraud with
respect to the Company or any of its customers or suppliers, or (ii) misappropriation
of any funds or assets of the Company for personal use, or (iii) engaging in any
conduct bringing the Company into substantial public disgrace or disrepute;
	 
	 	(2)	 	Executive’s (i) continued and repeated neglect of his duties in breach of this
Agreement following notice of such breach and a failure to cure such breach following a
reasonable opportunity to cure, (ii) gross misconduct in the performance of his duties
hereunder, or (iii) his material and repeated failure to perform his duties in breach
of this Agreement as directed by the Board following notice of such breach and failure
to cure such breach following a reasonable opportunity to cure; or
	 
	 	(3)	 	Executives engaging in conduct constituting cause for Separation under
applicable law; or
	 
	 	(4)	 	Executive’s engaging in conduct constituting a breach of Article 2 or 3 of this
Agreement.

     “Good Reason” shall mean Executive’s resignation from employment with the Company within
ninety (90) days after the occurrence of any one of the following conditions, provided that
Executive has given written notice to the Company of such condition within thirty (30) days of its
first occurrence and the Company has failed to remedy such condition within fifteen (15) days of
the delivery of such written notice:

	 	(1)	 	The failure of the Company to pay a material amount owing to Executive
hereunder;

7

 

	 	(2)	 	The assignment to Executive by the Company of duties materially and adversely
inconsistent with Executive’s title or duties from those set forth in this Agreement or
the failure to elect or reelect Executive to such position, except in the event of a
termination for Cause, death, disability or by Executive other than for Good Reason; or
	 
	 	(3)	 	The Company’s requirement that Executive perform services under this Agreement
at a location that is more than fifty (50) miles from the Current Location, and
Executive’s failure to do so.

     “Investors” means Endeavour Capital Fund IV, L.P., Endeavour Associates Fund IV, L.P.,
Endeavour Capital Parallel Fund IV, L.P. and 220 GCU, L.P.

     “Person” means an individual, a partnership, a limited liability company, a corporation, an
association, a joint stock company, an investment fund, a trust, a joint venture, an unincorporated
organization and a governmental entity or any department, agency or political subdivision thereof.

     “Stockholders Agreement” means the Stockholders Agreement, dated August 24, 2005, by and among
the Company, Significant Education Holding, LLC, and the Investors, as amended or restated from
time to time.

ARTICLE 5

NOTICES

     Any notice provided for in this Agreement must be in writing and must be either personally
delivered, mailed by first class United States mail (postage prepaid) or sent by reputable
overnight courier service (charges prepaid) or by facsimile to the recipient at the address below
indicated:

     If to the Company:

Grand Canyon Education, Inc.

3300 West Camelback Road

Phoenix, Arizona 85017

Telephone: (602) 589-2755

Facsimile: (602) 589-2458

     with a copy to each of:

Endeavour Capital IV, LLC

920 SW Sixth Ave

Suite 1400

Portland, OR 97204

Attention: D. Mark Dorman and Chad N. Heath

Telephone: (503) 223-2721

8

 

Facsimile: (503) 223-1384

Davis Graham & Stubbs LLP

1550 Seventeenth Street, Suite 500

Denver, Colorado 80202-1500

Attention: Ronald R. Levine, II

Telephone: 303-892-9400

Facsimile: 303-893-1379

     If to Executive:

John Crowley

8154 Via de Viva

Scottsdale, AZ 85258

Attention: John Crowley

Telephone: 413-478-5002

or such other address or to the attention of such other person as the recipient party shall have
specified by prior written notice to the sending party.

ARTICLE 6

GENERAL PROVISIONS

     6.1 Expenses. The Company shall reimburse Executive for all reasonable business,
promotional, travel and entertainment expenses incurred or paid by him during the Service Term and
the performance of his services under this Agreement, provided that Executive furnishes to the
Company in a timely fashion appropriate documentation required by the Internal Revenue Code in
connection with such expenses and shall furnish such other reasonable documentation and accounting
as the Company, from time to time, may reasonably request. Any reimbursement Executive is entitled
to receive shall (a) be paid no later than the last day of Executive’s taxable year following the
taxable year in which the expense was incurred, (b) not be affected by the amount of expenses
eligible for reimbursement in any other taxable year and (c) not be subject to liquidation or
exchange for another benefit.

     6.2 Complete Agreement. This Agreement, those documents expressly referred to herein
and other documents of even date herewith embody the complete agreement and understanding among the
parties and supersede and preempt any prior understandings, agreements or representations by or
among the parties, written or oral, which may have related to the subject matter hereof in any way.

     6.3 Counterparts. This Agreement may be executed in separate counterparts, each of
which is deemed to be an original and all of which taken together constitute one and the same
agreement.

9

 

     6.4 Severability. Whenever possible, each provision of this Agreement will be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be invalid, illegal or unenforceable in any respect under any
applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will
not affect any other provision or any other jurisdiction, but this Agreement will be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision
had never been contained herein.

     6.5 Successors and Assigns. This Agreement is intended to bind and inure to the
benefit of and be enforceable by the Company, and its successors and assigns. Executive may not
assign any of its rights or obligations under this Agreement.

     6.6 Choice of Law. The construction, validity and interpretation of this Agreement
and the exhibit hereto will be governed by and construed in accordance with the internal laws of
the State of Arizona, without giving effect to any choice of law or conflict of law provision or
rule (whether of the State of Arizona or any other jurisdiction) that would cause the application
of the laws of any jurisdiction other than the State of Arizona.

     6.7 Remedies. Each of the parties to this Agreement will be entitled to enforce its
rights under this Agreement specifically, to recover damages and costs (including attorney’s fees)
caused by any breach of any provision of this Agreement and to exercise all other rights existing
in its favor. The parties hereto agree and acknowledge that money damages may not be an adequate
remedy for any breach of the provisions of this Agreement and that any party may in its sole
discretion apply to any court of law or equity of competent jurisdiction (without posting any bond
or deposit) for specific performance and/or other injunctive relief in order to enforce or prevent
any violations of the provisions of this Agreement.

     6.8 Amendment and Waiver. The provisions of this Agreement may be amended and waived
only with the prior written consent of the Company and Executive.

     6.9 Business Days. If any time period for giving notice or taking action hereunder
expires on a day which is a Saturday, Sunday or holiday in the state in which the Company’s chief
executive office is located, the time period shall be automatically extended to the business day
immediately following such Saturday, Sunday or holiday.

     6.10 Termination. All of the provisions of this Agreement shall terminate after the
expiration of the Service Term or upon the Separation of Executive’s employment with the Company,
except Article 2 and Section 3.2 shall survive indefinitely, and Section 3.1 shall terminate upon
expiration of the Non-compete Period.

[THIS SPACE INTENTIONALLY LEFT BLANK]

10

 

     IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Senior
Management Agreement on the date first written above.

	 	 	 	 	 	 	 
	 	 	GRAND CANYON EDUCATION, INC.,

a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Brian Mueller	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Brian Mueller	 	 
	 

	 	Title:
	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE:	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ John Crowley	 	 
	 	 	 	 	 
	 	 	John Crowley	 	 

Signature Page — Amended and Restated Senior Management Agreement (J. Crowley)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]