<SEC-DOCUMENT>0000950123-11-029910.txt : 20110329
<SEC-HEADER>0000950123-11-029910.hdr.sgml : 20110329
<ACCEPTANCE-DATETIME>20110329060113
ACCESSION NUMBER:		0000950123-11-029910
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20110517
FILED AS OF DATE:		20110329
DATE AS OF CHANGE:		20110329
EFFECTIVENESS DATE:		20110329

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Grand Canyon Education, Inc.
		CENTRAL INDEX KEY:			0001434588
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-EDUCATIONAL SERVICES [8200]
		IRS NUMBER:				203356009
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-34211
		FILM NUMBER:		11717237

	BUSINESS ADDRESS:	
		STREET 1:		3300 W. CAMELBACK ROAD
		CITY:			PHOENIX
		STATE:			AZ
		ZIP:			85017
		BUSINESS PHONE:		602-639-7500

	MAIL ADDRESS:	
		STREET 1:		3300 W. CAMELBACK ROAD
		CITY:			PHOENIX
		STATE:			AZ
		ZIP:			85017
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>c14675def14a.htm
<DESCRIPTION>DEFINITIVE PROXY STATEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>Definitive Proxy Statement</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">


<DIV align="center" style="font-size: 14pt; margin-top: 6pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>SCHEDULE 14A</B>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 12pt">Proxy Statement Pursuant to Section&nbsp;14(a) of the Securities<BR>
Exchange Act of 1934 (Amendment No.&nbsp;__)</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Filed by the Registrant <FONT face="wingdings" size="2">&#254;</FONT><BR>
Filed by a Party other than the Registrant <FONT face="wingdings" size="2">&#111;</FONT>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box:

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Preliminary Proxy Statement</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD><B>Confidential, for Use of the Commission Only (as permitted by Rule&nbsp;14a-</B><B>6(e)(2)</B><B>)</B></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#254;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Definitive Proxy Statement</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Definitive Additional Materials</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Soliciting Material Pursuant to &#167;240.14a-12</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 6pt">&nbsp;</DIV>

<DIV align="center">
Grand Canyon Education, Inc.</DIV>
<DIV align="center" style="font-size: 10pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
(Name of Registrant as Specified In Its Charter)</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt">&nbsp;</DIV>

<DIV align="center">
</DIV>
<DIV align="center" style="font-size: 10pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Payment of Filing Fee (Check the appropriate box):

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#254;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>No fee required.</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Fee computed on table below per Exchange Act Rules&nbsp;14a-6(i)(1) and 0-11.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(1)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Title of each class of securities to which transaction applies:</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(2)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Aggregate number of securities to which transaction applies:</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(3)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Per unit price or other underlying value of transaction computed pursuant to Exchange Act
Rule&nbsp;0-11 (set forth the amount on which the filing fee is calculated and state how it was
determined):</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(4)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Proposed maximum aggregate value of transaction:</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(5)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Total fee paid:</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Fee paid previously with preliminary materials.</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Check box if any part of the fee is offset as provided by Exchange Act Rule&nbsp;0-11(a)(2)
and identify the filing for which the offsetting fee was paid previously. Identify the
previous filing by registration statement number, or the Form or Schedule and the date of its
filing.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(1)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Amount Previously Paid:</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(2)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Form, Schedule or Registration Statement No.:</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(3)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Filing Party:</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(4)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Date Filed:</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">
</DIV>


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><IMG src="c14675c1467501.gif" alt="(GRAND CANYON UNIVERSITY LOGO)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">3300 W. Camelback Road<BR>
Phoenix, Arizona 85017<BR>
(602)&nbsp;639-7500

</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 10pt">March&nbsp;28, 2011
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Dear Stockholder:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">You are cordially invited to attend the 2011 Annual Meeting of Stockholders (the &#147;Annual
Meeting&#148;) of Grand Canyon Education, Inc. (the &#147;Company&#148;) to be held at McKinley Hall on the campus
of Grand Canyon University at 3300 W. Camelback Road, Phoenix, Arizona 85017, commencing at 10:00
a.m., local time, on Tuesday, May&nbsp;17, 2011.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The notice of annual meeting and the proxy statement that follow describe the matters to come
before the Annual Meeting. Each holder of record of shares of the Company&#146;s common stock
(NasdaqGM: LOPE) at the close of business on March&nbsp;28, 2011 is entitled to receive notice of and to
vote at the Annual Meeting, and any adjournment or postponement of the Annual Meeting. Shares of
our common stock can be voted at the Annual Meeting only if the holder is present in person or by
valid proxy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Our Annual Meeting materials are available over the Internet. We believe that this delivery
process expedites stockholders&#146; receipt of proxy materials as well as lowers the costs and reduces
the environmental impact of our Annual Meeting. All stockholders as of the record date were mailed
a Notice of Internet Availability (the &#147;Notice&#148;) with instructions on how to access our Annual
Meeting materials online and how to request a paper copy of the materials by mail. The Notice also
includes instructions on how to vote online or by telephone. Internet voting must be completed
before midnight, Mountain Standard Time, prior to the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We hope that you will be able to attend the Annual Meeting in person and we look forward to
seeing you.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="64%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Sincerely,
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><IMG src="c14675c1467502.gif" alt="-s- Brian E. Mueller"></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Brian E. Mueller<BR>
<I>Chief Executive Officer and Director</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">This proxy statement is dated March&nbsp;28, 2011, and is first being sent or made available to
stockholders on or about April&nbsp;9, 2011.
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">



<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>VOTING METHODS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The accompanying proxy statement describes important issues affecting Grand Canyon Education,
Inc. If you are a stockholder of record as of the record date, you have the right to submit your
proxy through the Internet, by telephone or by mail. You also may revoke your proxy at any time
before the Annual Meeting. Please help us save time and administrative costs by submitting your
proxy through the Internet or by telephone. Each method is generally available 24 hours a day and
will ensure that your voting instructions are confirmed and posted immediately. To submit your
proxy:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>BY TELEPHONE</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On a touch-tone telephone, call toll-free 1-800-652-VOTE
(8683), 24 hours a day, seven days a week, through 11:00&nbsp;p.m. (PT)&nbsp;on May&nbsp;16,
2011.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please have available your notice card.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Follow the simple instructions provided.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>BY INTERNET</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Go to the web site at www.investorvote.com, 24 hours a day,
seven days a week, through 11:00&nbsp;p.m. (PT)&nbsp;on May&nbsp;16, 2011.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please have available your notice card.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Follow the simple instructions provided.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>BY MAIL (if you submit your proxy by telephone or Internet, please do not mail
your proxy card)</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mark, sign and date your proxy card.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Return it in the enclosed postage-paid envelope.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">If your shares are held in an account at a brokerage firm, bank or similar organization, you
will receive instructions from the registered holder that you must follow in order to have your
shares voted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Your vote is important. Thank you for submitting your proxy.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 8%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Notice of Annual Meeting of Stockholders<BR>
to be held on May&nbsp;17, 2011</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">To our Stockholders:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The 2011 Annual Meeting of Stockholders (the &#147;Annual Meeting&#148;) of Grand Canyon Education, Inc.
(the &#147;Company&#148;), will be held at McKinley Hall on the campus of Grand Canyon University at 3300 W.
Camelback Road, Phoenix, Arizona 85017, commencing at 10:00&nbsp;a.m., local time, on Tuesday, May&nbsp;17,
2011, for the following purposes:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To elect a Board of Directors of eight directors, each to serve until the 2012
annual meeting of stockholders or until his or her successor has been duly elected and
qualified or until his or her earlier resignation or removal;</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To approve the Annual Cash Incentive Plan in accordance with Internal Revenue
Code Section&nbsp;162(m);</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To approve the grant limitation within our 2008 Equity Incentive Plan in
accordance with Internal Revenue Code Section&nbsp;162(m);</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To approve, on an advisory basis, the compensation of our named executive
officers as disclosed in the enclosed Proxy Statement;</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To recommend, on an advisory basis, the frequency of the advisory vote on
executive compensation;</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To ratify the appointment of Ernst &#038; Young LLP as our independent registered
public accounting firm for the fiscal year ending December&nbsp;31, 2011; and</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To transact such other business as may properly be brought before the meeting
or any adjournment or postponement thereof.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Our Board of Directors has fixed March&nbsp;28, 2011 as the record date for the determination of
stockholders entitled to notice of and to vote at the Annual Meeting or any adjournment or
postponement thereof. For 10&nbsp;days prior to the Annual Meeting, a list of stockholders entitled to
vote at the Annual Meeting will be available for inspection in the offices of Grand Canyon
Education, Inc., Office of the General Counsel, 3300 W. Camelback Road, Phoenix, Arizona 85017
between the hours of 8:30 a.m. and 5:00 p.m., local time, each weekday. Such list will also be
available at the Annual Meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><B>Your proxy is important to ensure a quorum at the meeting. Even if you own only a few shares,
and whether or not you expect to be present, you are urgently requested to submit the enclosed
proxy by telephone or through the Internet in accordance with the instructions provided to you.</B>
<U><B>If you received a paper copy of the proxy card by mail, you may also date, sign and mail the
proxy card in the postage-paid envelope that is provided.</B></U><B> The proxy may be revoked by you at
any time prior to being exercised, and submitting your proxy by telephone or through the Internet
or returning your proxy by mail will not affect your right to vote in person if you attend the
Annual Meeting and revoke the proxy.</B>
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 8%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><B>Important Notice Regarding the Availability of Proxy Materials for the Stockholder Meeting to
Be Held on May&nbsp;17, 2011. </B>Our Proxy Statement is attached. Financial and other information
concerning Grand Canyon Education, Inc. is contained in our Annual Report to Stockholders for the
fiscal year ended December&nbsp;31, 2010. A complete set of proxy materials relating to our Annual
Meeting is available on the Internet. These materials, consisting of the Notice of Annual Meeting,
Proxy Statement, Proxy Card and Annual Report to Stockholders<B>, are available and may be viewed at
www.edocumentview.com/LOPE.</B>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="64%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By Order of the Board of Directors,
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><IMG src="c14675c1467503.gif" alt="-s- Christopher C. Richardson"></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Christopher C. Richardson<BR>
<I>Secretary</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Phoenix, Arizona<BR>
March&nbsp;28, 2011
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">


<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="C14675tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="90%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>PAGE</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#C14675101">GENERAL INFORMATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675102">Notice of Internet Availability</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675103">Record Date and Quorum</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675104">Submission of Proxies; Revocation</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675105">Deadlines for Stockholder Proposals</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675106">Quorum</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675107">Vote Required</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675108">Adjournment or Postponement of Meeting</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675109">Expenses of Soliciting Proxies</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#C14675110">CORPORATE GOVERNANCE AND BOARD MATTERS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675111">Corporate Governance Philosophy</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675112">Board of Directors Meetings and Attendance</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675113">Director Independence</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675114">Board Leadership Structure</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675115">Committees of Our Board of Directors</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675116">Code of Conduct</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675117">Risk Oversight</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675118">Director Nomination Process</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675119">Compensation Committee Interlocks and Insider Participation</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675120">Stockholder Communications with the Board of Directors</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675121">Director Stock Ownership Guidelines</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675122">Compensation of Directors</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675123">2010 Director Compensation</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#C14675124">PROPOSAL NO. 1 ELECTION OF DIRECTORS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675125">Composition of our Board of Directors</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675126">Directors and Director Nominees</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#C14675127">PROPOSAL NO. 2 APPROVAL OF OUR ANNUAL CASH INCENTIVE PLAN IN ACCORDANCE WITH <FONT style="white-space: nowrap">SECTION 162(M)</FONT>
OF THE INTERNAL REVENUE CODE</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675128">Summary of the Cash Incentive Plan</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#C14675129">PROPOSAL NO. 3 APPROVAL OF THE SECTION 162(M) LIMITS OF OUR 2008 EQUITY INCENTIVE PLAN</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675130">Summary of the 2008 Equity Incentive Plan</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675131">U.S. Federal Income Tax Consequences</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#C14675132">PROPOSAL NO. 4 ADVISORY (NON-BINDING) VOTE ON EXECUTIVE COMPENSATION (SAY-ON-PAY)</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#C14675133">PROPOSAL NO. 5 ADVISORY (NON-BINDING) VOTE ON THE FREQUENCY OF AN ADVISORY VOTE ON
EXECUTIVE COMPENSATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->-i-<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="90%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>PAGE</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#C14675134">PROPOSAL NO. 6 RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675135">Fees</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675136">Approval of Independent Registered Public Accounting Firm Services and Fees</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#C14675137">AUDIT COMMITTEE REPORT</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#C14675138">EXECUTIVE OFFICERS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#C14675139">EXECUTIVE COMPENSATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675140">Compensation Discussion and Analysis</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675141">Compensation Committee Report</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675142">Compensation of Named Executive Officers</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675143">Potential Payments upon Termination or Change in Control</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#C14675144">BENEFICIAL OWNERSHIP OF COMMON STOCK</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#C14675145">CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675146">Policies and Procedures for Related Party Transactions</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C14675147">Certain Transactions</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#C14675148">SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#C14675149">HOUSEHOLDING OF PROXY MATERIALS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#C14675150">ADDITIONAL INFORMATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#C14675151">APPENDIX A &#151; GRAND CANYON EDUCATION, INC. ANNUAL CASH INCENTIVE PLAN</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 7pt"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->-ii-<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Grand Canyon Education, Inc.<BR>
3300 West Camelback Road<BR>
Phoenix, Arizona 85017</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>PROXY STATEMENT</B>
</DIV>

<DIV align="left">
<A name="C14675101"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>GENERAL INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The enclosed proxy is being solicited by our Board of Directors for use in connection with the
Annual Meeting to be held on Tuesday, May&nbsp;17, 2011, at McKinley Hall on the Company&#146;s campus at
3300 W. Camelback Road, Phoenix, Arizona 85017, commencing at 10:00&nbsp;a.m., local time, and at any
adjournment or postponement thereof.
</DIV>
<DIV align="left">
<A name="C14675102"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Notice of Internet Availability</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">In accordance with the electronic delivery rules adopted by the Securities and Exchange
Commission (&#147;SEC&#148;), the Company is permitted to furnish proxy materials to its stockholders on the
Internet, in lieu of mailing a printed copy of proxy materials to each stockholder of record. You
will not receive a printed copy of proxy materials unless you request a printed copy. The Notice,
which was made available to our stockholders on or about April&nbsp;9, 2011, instructs you as to how you
may access and review on the Internet all of the important information contained in the proxy
materials. The Notice also instructs you as to how you may vote your proxy. If you received a
Notice by mail and would like to receive a printed copy of the Company&#146;s proxy materials and annual
report, you must follow the instructions for requesting such materials included in the Notice.
Alternatively, you may download or print these materials, or any portion thereof, from any computer
with Internet access and a printer. The Company believes this process provides its stockholders the
information they need in a more timely manner, while reducing the environmental impact and lowering
the costs of printing and delivering the proxy materials. To access the Company&#146;s proxy statement
and annual report electronically, please visit <U>www.proxyvote.com</U> or the Company&#146;s Investor
Relations website at <U>www.gcu.edu</U>.
</DIV>
<DIV align="left">
<A name="C14675103"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Record Date and Quorum</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Only stockholders of record at the close of business on March&nbsp;28, 2011, will be entitled to
notice of and to vote at the Annual Meeting and any adjournment or postponement thereof. At the
close of business on the record date, we had approximately 45,020,905 shares of our common stock
outstanding and entitled to vote, with each such outstanding share entitled to one vote per share
on each matter to be voted upon by stockholders. A majority of the shares outstanding on the
record date, present in person or represented by proxy, will constitute a quorum for the
transaction of business at the meeting.
</DIV>
<DIV align="left">
<A name="C14675104"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Submission of Proxies; Revocation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">All valid proxies received prior to the Annual Meeting will be exercised. All shares
represented by a proxy will be voted, and where a proxy specifies a stockholder&#146;s choice with
respect to any matter to be acted upon, the shares will be voted in accordance with that
specification. If no choice is indicated on the proxy, the shares will be voted in favor of the
proposal. You may revoke your proxy at any time before it is exercised by submitting to our
Secretary a written notice of revocation, submitting a properly executed proxy bearing a later
date, voting by telephone or via the Internet at a later time (if initially able to vote in that
manner) so long as such vote or voting direction is received by the applicable date and time set
forth above for stockholders of record, or by attending the Annual Meeting and voting in person. If
you hold your shares through a bank, broker, trustee or nominee and you have instructed the bank,
broker, trustee or nominee to vote your shares, you must follow the directions received from your
bank, broker, trustee or nominee to change those instructions.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 8%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">
<DIV align="left">
<A name="C14675105"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Deadlines for Stockholder Proposals</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Stockholder proposals may be included in our proxy materials for an annual meeting so long as
they are provided to us on a timely basis and satisfy certain other conditions established by the
Securities and Exchange Commission (the &#147;SEC&#148;), including specifically under Rule&nbsp;14a-8 of the
Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;). To be timely, a proposal to be
included in our proxy statement must be received at our principal executive offices, addressed to
our Secretary, not less than 120 calendar days before the date of our proxy statement released to
stockholders in connection with the previous year&#146;s annual meeting. Accordingly, for a stockholder
proposal to be included in our proxy materials for our 2012 Annual Meeting of Stockholders, the
proposal must be received at our principal executive offices, addressed to our Secretary, not later
than the close of business on November&nbsp;29, 2011. Subject to certain exceptions, stockholder
business that is not intended for inclusion in our proxy materials may be brought before an annual
meeting so long as we receive notice of the proposal as specified by, and subject to the conditions
set forth in, our bylaws, addressed to our Secretary at our principal executive offices, not
earlier than the close of business on the 120th day, nor later than the close of business on the
90th day, prior to the first anniversary of the date of the preceding year&#146;s annual meeting. For
our 2012 Annual Meeting of Stockholders, proper notice of business that is not intended for
inclusion in our proxy statement must be received not earlier than the close of business on January
21, 2012, nor later than the close of business on February&nbsp;20, 2012.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">A stockholder&#146;s notice to our Secretary must set forth as to each matter the stockholder
proposes to bring before the meeting (i)&nbsp;a brief description of the business desired to be brought
before the meeting and the text of the proposal or business, including the text of any resolutions
proposed for consideration and, in the event that such business includes a proposal to amend the
Company&#146;s bylaws, the language of the proposed amendment, (ii)&nbsp;the name and address, as they appear
on the Company&#146;s books, of the stockholder proposing such business and the names and addresses of
the beneficial owners, if any, on whose behalf the business is being brought, (iii)&nbsp;a
representation that the stockholder is a holder of record of stock of the Company entitled to vote
at the meeting on the date of such notice and intends to appear in person or by proxy at the
meeting to propose the business specified in the notice, (iv)&nbsp;any material interest of the
stockholder and any such other beneficial owner in such business, and (v)&nbsp;the following information
regarding the ownership interests of the stockholder or any such other beneficial owner, which
shall be supplemented in writing by the stockholder not later than ten (10)&nbsp;days after the record
date for voting at the meeting to disclose such interests as of such record date: (A)&nbsp;the class and
number of shares of the Company that are owned beneficially and of record by the stockholder and
any such other beneficial owner<B>; </B>(B)&nbsp;any &#147;derivative instrument&#148; (which is defined as any option,
warrant, convertible security, stock appreciation right, or similar right with an exercise or
conversion privilege or a settlement payment or mechanism at a price related to any class or series
of shares of the Company or with a value derived in whole or in part from the value of any class or
series of shares of the Company, whether or not such instrument or right shall be subject to
settlement in the underlying class or series of capital stock of the Company or otherwise directly
or indirectly owned beneficially by such stockholder and any other direct or indirect opportunity
to profit or share in any profit derived from any increase or decrease in the value of shares of
the Company); (C)&nbsp;any proxy, contract, arrangement, understanding, or relationship pursuant to
which such stockholder has a right to vote any shares of any security of the Company; (D)&nbsp;any short
interest in any security of the Company (meaning a person shall be deemed to have a short interest
in a security if such person, directly or indirectly, through any contract, arrangement,
understanding, relationship or otherwise, has the opportunity to profit or share in any profit
derived from any decrease in the value of the subject security); (E)&nbsp;any rights to dividends on the
shares of the Company owned beneficially by such stockholder that are separated or separable from
the underlying shares of the Company; (F)&nbsp;any proportionate interest in shares of the Company or
derivative instruments held, directly or indirectly, by a general or limited partnership in which
such stockholder is a general partner or, directly or indirectly, beneficially owns an interest in
a general partner; and (G)&nbsp;any performance-related fees (other than an asset-based fee) to which
such stockholder is entitled based on any increase or decrease in the value of shares of the
Company or derivative instruments, if any, as of the date of such notice, including, without
limitation, any such interests held by members of such stockholder&#146;s immediate family sharing the
same household.
</DIV>
<DIV align="left">
<A name="C14675106"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Quorum</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The presence at the Annual Meeting, in person or by proxy, of the holders of a majority of the
shares of common stock outstanding on the record date will constitute a quorum for the transaction
of business at the meeting. Abstentions and broker non-votes are included in determining whether a
quorum is present. Abstentions include shares present in person but not voting and shares
represented by proxy but with respect to which the holder has
abstained. Broker non-votes occur when a nominee holding shares for a beneficial owner does
not vote on a particular proposal because the nominee does not have discretionary voting power on
that item and has not received instructions from the beneficial owner.
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">
<DIV align="left">
<A name="C14675107"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Vote Required</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">If you hold your shares in &#147;street name,&#148; and you do not give your bank, broker or other
holder of record specific voting instructions for your shares, your record holder can vote your
shares on routine matters, which include the ratification of our independent public accountants.
However, your record holder cannot vote your shares without your specific instructions on the
election of directors or on matters that relate to executive compensation, including the advisory
votes described below on the compensation of our named executive officers and on the frequency of
the advisory vote on executive compensation. If you hold your shares in &#147;street name,&#148; please
refer to the information forwarded by your bank, broker or other holder of record for procedures on
revoking or changing your proxy. In the absence of instructions, shares subject to such broker
non-votes will not be counted as voted or as present or represented on any of the proposals offered
at the Annual Meeting other than ratification of our auditors and so will have no effect on the
vote. <B>We encourage you to provide instructions to your broker regarding the voting of your shares.</B>
Our stockholders have no dissenter&#146;s or appraisal rights in connection with any of the proposals
described herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Election of Directors</I>. The affirmative vote of a plurality of the shares of common stock
present in person or by proxy at the meeting and entitled to vote is required for the election to
the Board of Directors of each of the nominees for director. Stockholders do not have the right to
cumulate their votes in the election of directors. Votes that are withheld, abstentions, and
broker non-votes will have no effect on the outcome of the election.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Approve the Annual Cash Incentive Plan in accordance with Internal Revenue Code Section
1</I><I>62(m)</I><I>. </I>Approval of the Annual Cash Incentive Plan requires the affirmative vote of the majority
of shares present in person or represented by proxy at the Annual Meeting and entitled to vote.
Broker non-votes will have no effect on the outcome of this proposal, while abstentions will have
the effect of a vote against this proposal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Approve the grant limitation within our 2008 Equity Incentive Plan in accordance with Internal
Revenue Code Section&nbsp;</I><I>162(m)</I><I>. </I>Approval of the grant limitation within our 2008 Equity Incentive
Plan requires the affirmative vote of the majority of shares present in person or represented by
proxy at the Annual Meeting and entitled to vote. Broker non-votes will have no effect on the
outcome of this proposal, while abstentions will have the effect of a vote against this proposal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Advisory vote on the compensation of our named executive officers. </I>Approval of the proposal
to approve, on an advisory basis, the compensation of our named executive officers requires the
affirmative vote of the majority of shares present in person or represented by proxy at the Annual
Meeting and entitled to vote. Broker non-votes will have no effect on the outcome of this
proposal, while abstentions will have the effect of a vote against this proposal. Although this
vote is advisory and is not binding on our Board of Directors, the Board of Directors and the
Compensation Committee will consider the voting results, along with other relevant factors, in
connection with their ongoing evaluation of our compensation program.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Advisory vote on the frequency of the advisory vote on executive compensation. </I>Approval of
the proposal to present the advisory vote to approve the compensation our named executive officers
on a triennial basis requires the affirmative vote of the majority of shares present in person or
represented by proxy at the Annual Meeting and entitled to vote. Broker non-votes will have no
effect on the outcome of this proposal, while abstentions will have the effect of a vote against
this proposal. Although this vote is advisory and is not binding, the Compensation Committee will
consider the outcome, along with other relevant factors, in recommending a voting frequency to the
Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Ratification of the appointment of the Independent Registered Public Accounting Firm.</I>
Approval of the proposal to ratify the Audit Committee&#146;s appointment of Ernst &#038; Young LLP as our
independent registered public accounting firm for the fiscal year ending December&nbsp;31, 2011 requires
the affirmative vote of the majority of shares present in person or represented by proxy at the
Annual Meeting and entitled to vote. Broker non-votes will have no effect on the outcome of this
proposal, while abstentions will have the effect of a vote against this proposal.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 8%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">
<DIV align="left">
<A name="C14675108"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Adjournment or Postponement of Meeting</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The Annual Meeting may be adjourned or postponed to any other time and to any other place at
which a meeting of stockholders may be held by the chairman of the Annual Meeting or, in the
absence of such person, by any officer entitled to preside at or to act as Secretary of the Annual
Meeting, or by the holders of a majority of the shares of stock present or represented by proxy at
the meeting and entitled to vote, although less than a quorum.
</DIV>
<DIV align="left">
<A name="C14675109"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Expenses of Soliciting Proxies</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We will bear the cost of soliciting proxies. In addition to solicitation by the use of mail
or via the Internet, certain directors, officers and regular employees may solicit proxies by
telephone or personal interview. None of such persons will receive any additional compensation for
their services.
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">


<DIV align="left">
<A name="C14675110"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>CORPORATE GOVERNANCE AND BOARD MATTERS</B>
</DIV>

<DIV align="left">
<A name="C14675111"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Corporate Governance Philosophy</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The business affairs of the Company are managed under the direction of the Board of Directors
in accordance with the Delaware General Corporation Law, as implemented by the Company&#146;s
certificate of incorporation and bylaws. The role of the Board of Directors is to effectively
govern the affairs of the Company for the benefit of its stockholders and other constituencies. The
Board strives to ensure the success and continuity of business through the selection of qualified
management. It is also responsible for ensuring that the Company&#146;s activities are conducted in a
responsible and ethical manner. The Company is committed to having sound corporate governance
principles.
</DIV>
<DIV align="left">
<A name="C14675112"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Board of Directors Meetings and Attendance</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">During our 2010 fiscal year, our Board of Directors held eight meetings and acted by written
consent one time and each of our directors attended more than 75% of such meetings. We do not
have a formal policy regarding attendance of our directors at annual meetings of our stockholders,
but we do encourage each of our directors to attend. Six of our eight directors attended our 2010
annual meeting.
</DIV>
<DIV align="left">
<A name="C14675113"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Director Independence</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Our Board of Directors periodically reviews the independence of each director. During these
reviews, our Board of Directors considers transactions and relationships between each director (and
his or her immediate family and affiliates) and our Company and management to determine whether any
such transactions or relationships are inconsistent with a determination that the director was
independent. Our Board of Directors has affirmatively determined that each director other than
Brent D. Richardson, who is our Executive Chairman, Brian E. Mueller, who is our Chief Executive
Officer, and Christopher C. Richardson, who is our General Counsel, is &#147;independent,&#148; as defined by
the Marketplace Rules of the Nasdaq Stock Market. Under the Marketplace Rules, a director can be
independent only if the director does not trigger a categorical bar to independence and our Board
of Directors affirmatively determines that the director does not have a relationship which, in the
opinion of our Board of Directors, would interfere with the exercise of independent judgment by the
director in carrying out the responsibilities of a director.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">With respect to Messrs.&nbsp;Chad N. Heath and D. Mark Dorman, our Board of Directors considers
their roles as managing directors of Endeavour Capital IV, LLC, which is the general partner of
certain affiliated investment funds (the &#147;Endeavour Entities&#148;), and the fact that the Endeavour
Entities own 11.0% of our outstanding shares of our capital stock. See &#147;Beneficial Ownership of
Common Stock.&#148; After reviewing these relationships between and among the Company, the Endeavour
Entities, and Messrs.&nbsp;Heath and Dorman, and considering that the affiliation between Messrs.&nbsp;Heath
and Dorman and the Endeavour Entities will positively align their interests with those of our
public stockholders, our Board of Directors has affirmatively determined (with Messrs.&nbsp;Heath and
Dorman abstaining) that, in its judgment, Messrs.&nbsp;Heath and Dorman meet the applicable independence
standards established by the Nasdaq Stock Market and that these relationships do not interfere with
the exercise of independent judgment by these directors.
</DIV>
<DIV align="left">
<A name="C14675114"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Board Leadership Structure</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We currently separate the roles of Chief Executive Officer and Chairman of the Board in
recognition of the differences between the two roles. The Chief Executive Officer is responsible
for setting the strategic direction for the Company and the day to day leadership and performance
of the Company, while the Chairman of the Board provides guidance to the Chief Executive Officer
and sets the agenda for Board meetings and presides over meetings of the full Board. Currently,
even though Mr.&nbsp;Richardson is an employee of the Company, the Board believes that Mr.&nbsp;Richardson&#146;s
role as Chairman ensures a greater role for the non-management directors in the oversight of the
Company and encourages greater participation of the non-management directors in setting agendas and
establishing priorities and procedures for the work of the Board. Because Mr.&nbsp;Richardson is an
employee of the Company and is therefore not &#147;independent,&#148; our Board of Directors has appointed
the Chairman of our Compensation Committee, Mr.&nbsp;David J. Johnson, as &#147;lead independent director&#148; to
preside at executive sessions of &#147;non-management&#148; directors. The Board generally seeks to hold
executive sessions twice a year.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 3%">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">
<DIV align="left">
<A name="C14675115"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Committees of Our Board of Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Our Board of Directors directs the management of our business and affairs, as provided by
Delaware law, and conducts its business through meetings of the Board of Directors. Our Board of
Directors has established three standing committees: an Audit Committee; a Compensation Committee;
and a Nominating and Corporate Governance Committee. Each director attended at least 75% of the
meetings of the Board committees on which such director served. In addition, from time to time,
special committees may be established under the direction of the Board of Directors when necessary
to address specific issues. The composition of the Board committees complies with the applicable
rules of the Nasdaq Stock Market and applicable law. Our Board of Directors has adopted a written
charter for each of the standing committees, which are available in the Corporate Governance
section of the Investor Relations page on our website at <I>www.gcu.edu.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Audit Committee</I>. Our Audit Committee consists of Messrs.&nbsp;Jack A. Henry (chair), David J.
Johnson, and Gerald J. Colangelo, each of whom our Board of Directors has determined is
&#147;independent,&#148; as defined under and required by the rules of the Nasdaq Stock Market and the
federal securities laws. Our Audit Committee met five times during 2010. Our Audit Committee is
directly responsible for, among other things, the appointment, compensation, retention, and
oversight of our independent registered public accounting firm. The oversight includes reviewing
the plans and results of the audit engagement with the firm, approving any additional professional
services provided by the firm and reviewing the independence of the firm. The Audit Committee is
also responsible for discussing the effectiveness of the internal controls over financial reporting
with the firm and relevant financial management. Our Board of Directors has determined that each
of Messrs.&nbsp;Henry, Johnson and Colangelo qualifies as an &#147;Audit Committee financial expert,&#148; as
defined under applicable federal securities laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Compensation Committee. </I>Our Compensation Committee consists of Messrs.&nbsp;David J. Johnson
(chair), Chad N. Heath, and D. Mark Dorman, each of whom the Board of Directors has determined is
&#147;independent,&#148; as defined under and required by the rules of the Nasdaq Stock Market. Our
Compensation Committee met eight times and acted by written consent one time during 2010. The
Compensation Committee is responsible for, among other things, supervising and reviewing our
affairs as they relate to the compensation and benefits of our executive officers. In carrying out
these responsibilities, the Compensation Committee reviews all components of executive compensation
for consistency with our compensation philosophy and with the interests of our stockholders<I>.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The Compensation Committee&#146;s charter allows it to delegate any matters within its authority to
individuals or subcommittees as it deems appropriate. In addition, the Compensation Committee has
the authority under its charter to retain outside advisors to assist it in the performance of its
duties. Beginning in the fall of 2009, the Compensation Committee has engaged Mercer as its
compensation consultant and advisor to:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Provide ongoing recommendations regarding executive compensation consistent with the
Company&#146;s business needs, pay philosophy, market trends and latest legal and regulatory
considerations;</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Provide market data for base salary, short-term incentive and long-term incentive
decisions; and</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Advise the Compensation Committee as to best practices.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">In 2010, Mercer conducted a review of the Company&#146;s executive compensation program, including
an evaluation of the market positioning for total compensation and individual pay elements, and
conducted interviews with representatives of management and the Compensation Committee to
understand the peer group with which the Company competes for labor, capital and customers. In
addition to these considerations, Mercer considered peers based on the Company&#146;s industry and
revenue. Mercer recommended a peer group of publicly traded education companies with median
revenue near the Company&#146;s revenue, which was approved. The peer group consists of the following
companies:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="41%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="41%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Education Management Corporation;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Universal Technical Institute, Inc.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Career Education Corporation
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bridgepoint Education, Inc.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">DeVry, Inc.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">K12, Inc.</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="41%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="41%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Corinthian Colleges, Inc.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Capella Education, Inc.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ITT Educational Services, Inc.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Princeton Review, Inc.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Lincoln Educational Services, Inc.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Learning Tree International, Inc.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Strayer Education, Inc.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">American Public Education Co.</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The Compensation Committee expects to utilize Mercer&#146;s peer group analyses in setting
compensation for 2011 and future years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Nominating and Corporate Governance Committee. </I>Our Nominating and Corporate Governance
Committee consists of Messrs.&nbsp;Chad N. Heath (chair)&nbsp;and D. Mark Dorman, each of whom our Board of
Directors has determined is &#147;independent,&#148; as defined under and required by the rules of the Nasdaq
Stock Market. Our Nominating and Corporate Governance Committee met three times during 2010. The
Nominating and Corporate Governance Committee is responsible for, among other things, identifying
individuals qualified to become members of the Board of Directors; recommending to the Board of
Directors nominees for each election of directors; developing and recommending to the Board of
Directors criteria for selecting qualified director candidates; considering committee member
qualifications, appointment and removal; recommending corporate governance principles, codes of
conduct and compliance mechanisms; and providing oversight in the evaluation of the Board of
Directors and each committee.
</DIV>
<DIV align="left">
<A name="C14675116"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Code of Conduct</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We have adopted our business code of conduct, which applies to all of our employees,
directors, and consultants. The code of conduct includes particular provisions applicable to our
senior financial management, which includes our chief executive officer, chief financial officer
and principal accounting officer, and other employees performing similar functions. A copy of our
code of conduct is available on the Corporate Governance section of the Investor Relations page on
our website at <I>www.gcu.edu. </I>We intend to post on our website any amendment to, or waiver from, a
provision of our code of conduct that applies to any director or officer, including our chief
executive officer, chief financial officer and principal accounting officer, and other persons
performing similar functions, promptly following the date of such amendment or waiver.
</DIV>
<DIV align="left">
<A name="C14675117"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Risk Oversight</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Our Board of Directors is responsible for oversight of our risk assessment and management
process. The Board of Directors has delegated to the Compensation Committee basic responsibility
for oversight of management&#146;s compensation risk assessment, and has delegated to the Audit
Committee tasks related to risk process oversight. In exercising its oversight duties, the Board
of Directors receives reports from each committee regarding the committee&#146;s considerations and
actions. The Audit Committee&#146;s process includes working with the Company&#146;s Chief Risk Officer and
other members of the Company&#146;s enterprise risk management team, meeting periodically with the Chief
Risk Officer and other members of management and receiving reports on enterprise risk management,
including management&#146;s assessment of risk exposures (including risks related to liquidity, credit,
operations and regulatory compliance, among others), and the processes in place to monitor and
control such exposures. The Audit Committee may also, from time to time, receive updates between
meetings from the Chief Risk Officer, the Chief Executive Officer, the Chief Financial Officer and
other members of management relating to risk oversight matters.
</DIV>
<DIV align="left">
<A name="C14675118"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Director Nomination Process</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">When selecting nominees for appointment or election to our Board of Directors, our Nominating
and Corporate Governance Committee intends to make such selections pursuant to the following
process:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the identification of director candidates by our Nominating and Corporate Governance
Committee based upon suggestions from current directors and senior management,
recommendations by stockholders and/or use of a director search firm;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a review of the candidates&#146; qualifications by our Nominating and Corporate
Governance Committee to determine which candidates best meet our Board of Directors&#146;
required and desired criteria;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>interviews of interested candidates who best meet these criteria by the chair of the
Nominating and Corporate Governance Committee, the chair of our Board of Directors,
and/or certain other directors;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the recommendation by our Nominating and Corporate Governance Committee for
inclusion in the slate of directors for the annual meeting of stockholders or for
appointment by our Board of Directors to fill a vacancy during the interval between
stockholder meetings; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>formal nomination by our Board of Directors.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Although our Nominating and Corporate Governance Committee will review each candidate&#146;s
qualifications to determine whether such candidate is appropriate for our Board of Directors,
candidates need not possess any minimum qualifications or specific qualities or skills. In
accordance with its charter, the Nominating and Corporate Governance Committee&#146;s review and
assessment of incumbent directors and proposed nominees includes the consideration of a candidate&#146;s
skills, business experiences, and background, which may include with respect to any particular
incumbent or proposed nominee consideration of one or more of the following criteria:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The extent of the director&#146;s/proposed nominee&#146;s educational, business, non-profit or
professional acumen and experience;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Whether the director/proposed nominee assists in achieving a mix of Board members
that represents a diversity of background, perspective and experience;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Whether the director/proposed nominee meets the independence requirements of the
listing standards of the Nasdaq Stock Market;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Whether the director/proposed nominee has the business experience relevant to an
understanding of our business;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Whether the director/proposed nominee would be considered a &#147;financial expert&#148; or
&#147;financially literate&#148; as defined in applicable listing standards or applicable law;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Whether the director/proposed nominee, by virtue of particular technical expertise,
experience or specialized skill relevant to our current or future business, will add
specific value as a Board member; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Whether the director/proposed nominee possesses a willingness to challenge and
stimulate management and the ability to work as part of a team in an environment of
trust.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">With respect to existing members of the Board of Directors, our Nominating and Corporate
Governance Committee will reassess the qualifications of a director, including the director&#146;s
performance on our Board of Directors to date, the director&#146;s current employment, the director&#146;s
service on other boards of directors and the director&#146;s independence, prior to recommending a
director for reelection to another term. All director-nominees were recommended for election at
the Annual Meeting by our Nominating and Corporate Governance Committee, and such recommendations
were formally approved by our Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Stockholders who wish to recommend individuals for consideration by our Nominating and
Corporate Governance Committee to become nominees for election to our Board of Directors may do so
by submitting a written recommendation to our Nominating and Corporate Governance Committee, c/o
General Counsel, Grand Canyon Education, Inc., 3300 W. Camelback Road, Phoenix, Arizona 85017.
Submissions must be received not less than 120 calendar days in advance of the first anniversary of
the date that the Company&#146;s proxy statement was released to stockholders in connection with the
previous year&#146;s annual meeting of stockholders, except that if no annual meeting was held in the
previous year or the date of the annual meeting has been advanced by more than 30 calendar days
from
the date contemplated at the time of the previous year&#146;s proxy statement, notice by the
stockholders to be timely must be received not later than the close of business on the tenth day
following the day on which public announcement of the date of such meeting is first made. For our
2012 Annual Meeting of Stockholders, stockholder nominations must be received by December&nbsp;7, 2011.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 8%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Each submission must set forth: (i)&nbsp;the name and address of the stockholder who intends to
make the nomination, or the beneficial owner, if any, on whose behalf the nomination is being made
and of the person or persons to be nominated; (ii)&nbsp;a representation that the stockholder is a
holder of record of stock of the Company entitled to vote for the election of directors on the date
of such notice and intends to appear in person or by proxy at the meeting to nominate the person or
persons specified in the notice; (iii)&nbsp;the following information regarding the ownership interests
of the stockholder and such other beneficial owners, which shall be supplemented in writing by the
stockholder not later than ten (10)&nbsp;days after the record date for notice of the meeting to
disclose such interests as of such record date: (A)&nbsp;the class and number of shares of the Company
that are owned beneficially and of record by the stockholder or any such beneficial owner; (B)&nbsp;any
derivative instrument directly or indirectly owned beneficially by such stockholder or any such
beneficial owner and any other direct or indirect opportunity to profit or share in any profit
derived from any increase or decrease in the value of shares of the Company; (C)&nbsp;any proxy,
contract, arrangement, understanding, or relationship pursuant to which such stockholder or any
such beneficial owner has a right to vote any shares of any security of the Company; (D)&nbsp;any short
interest in any security of the Company; (E)&nbsp;any rights to dividends on the shares of the Company
owned beneficially by such stockholder or any such beneficial owner that are separated or separable
from the underlying shares of the Company; (F)&nbsp;any proportionate interest in shares of the Company
or derivative instruments held, directly or indirectly, by a general or limited partnership in
which such stockholder or any such beneficial owner is a general partner or, directly or
indirectly, beneficially owns an interest in a general partner; and (G)&nbsp;any performance-related
fees (other than an asset-based fee) to which such stockholder or any such beneficial owner is
entitled based on any increase or decrease in the value of shares of the Company or derivative
instruments, if any, as of the date of such notice, including, without limitation, any such
interests held by members of such stockholder&#146;s or beneficial owner&#146;s immediate family sharing the
same household, (iv)&nbsp;a description of all arrangements or understandings between the stockholder or
such beneficial owner and each nominee and any other person or persons (naming such person or
persons) pursuant to which the nomination or nominations are to be made by the stockholder; (v)&nbsp;a
description of all direct and indirect compensation and other material monetary agreements,
arrangements and understandings during the past three (3)&nbsp;years, and any other material
relationships, between or among such stockholder and such other beneficial owner, if any, and their
respective affiliates and associates, or others acting in concert therewith, on the one hand, and
each proposed nominee, and his respective affiliates and associates, or others acting in concert
therewith, on the other hand, including, without limitation all information that would be required
to be disclosed pursuant to Rule&nbsp;404 promulgated under Regulation&nbsp;S-K if the stockholder making the
nomination and any beneficial owner on whose behalf the nomination is made, if any, or any
affiliate or associate thereof or person acting in concert therewith, were the &#147;registrant&#148; for
purposes of such rule and the nominee were a director or executive officer of such registrant, (vi)
such other information regarding each nominee proposed by such stockholder as would be required to
be included in a proxy statement filed pursuant to the proxy rules of the Securities and Exchange
Commission, had the nominee been nominated, or intended to be nominated, by the Board of Directors;
and (vii)&nbsp;the consent of each nominee to serve as a director of the Company if so elected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We did not receive any director nominations from stockholders for the Annual Meeting.
</DIV>
<DIV align="left">
<A name="C14675119"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Compensation Committee Interlocks and Insider Participation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">During 2010, Messrs.&nbsp;Johnson, Heath and Dorman served as the members of our Compensation
Committee. No executive officer serves, or in the past has served, as a member of the Board of
Directors or compensation committee of any entity that has any of its executive officers serving as
a member of our Board of Directors or Compensation Committee.
</DIV>
<DIV align="left">
<A name="C14675120"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Stockholder Communications with the Board of Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Stockholders may communicate with any of our directors, including our lead outside director,
the chair of any of the committees of the Board of Directors, or the non-management directors as a
group by writing to them c/o Secretary, Grand Canyon Education, Inc., 3300 West Camelback Road,
Phoenix, Arizona 85017. Please specify to whom your correspondence should be directed. The
Secretary will promptly forward all correspondence to the Board
of Directors or any specific director, as indicated in the correspondence, except for junk
mail, mass mailings, job inquiries, surveys, business solicitations or advertisements, or patently
offensive or otherwise inappropriate material. The Secretary may forward certain correspondence,
such as product-related or service-related inquiries, elsewhere within the Company for review and
possible response.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 8%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">
<DIV align="left">
<A name="C14675121"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Director Stock Ownership Guidelines</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The Board of Directors believes that each director should develop a meaningful ownership
position in the Company. Therefore, in January&nbsp;2011, the Board of Directors adopted stock ownership
guidelines for directors. Pursuant to these guidelines, each director is expected to own at least
$50,000 of our Common Stock. Current directors are expected to achieve the target ownership
threshold within two years of the adoption of the policy, while future directors are expected to
achieve the target ownership threshold within two years of their election to the Board of
Directors.
</DIV>
<DIV align="left">
<A name="C14675122"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Compensation of Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We have a directors&#146; compensation policy for our non-employee directors, which utilizes annual
retainers, per meeting fees, and restricted stock grants. For joining our Board of Directors, new
non-employee directors receive an award of restricted stock under our 2008 Equity Incentive Plan
(the &#147;Equity Incentive Plan&#148;) valued at $20,000, which vests on the one year anniversary of the
date of grant, subject to accelerated vesting in the event of a change in control. For serving on
the Board of Directors, our non-employee directors receive an annual retainer of $60,000 in cash
or, at their election, an annual retainer consisting of $30,000 in cash and an award of restricted
stock under our Equity Incentive Plan valued at $35,000. The restricted stock grants to our
non-employee directors are made after our annual meeting of stockholders each year and vest on the
earlier of the one year anniversary of the date of grant or immediately prior to the following
year&#146;s annual meeting of stockholders, subject to acceleration in the event of a change in control.
In addition, our lead outside director receives an annual cash retainer of $33,333, each
non-employee director receives an annual cash retainer for service on a Board committee of $5,000,
and each committee chair receives an additional annual cash retainer of $2,500, except for the
chair of the Audit Committee, whose additional annual cash retainer is $5,000. Each of the annual
retainers are payable in quarterly installments. We also pay our non-employee directors a fee of
$2,000 per meeting for each quarterly meeting of the Board of Directors attended. We reimburse all
of our directors for reasonable expenses incurred to attend our Board of Directors and committee
meetings.
</DIV>
<DIV align="left">
<A name="C14675123"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>2010 Director Compensation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The following table provides information regarding the compensation paid to our non-employee
directors in 2010:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="58%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fees Earned or</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Equity-Based</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Paid in Cash ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Awards ($)(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total ($)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chad N. Heath</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">80,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">80,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">D. Mark Dorman</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">David J. Johnson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83,833</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,833</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jack A. Henry</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gerald J. Colangelo</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Directors who are Company employees receive no additional compensation for serving on the
Board of Directors. Compensation for Brent D. Richardson, Brian E. Mueller, and Christopher
C. Richardson is reflected in the Summary Compensation Table set forth in &#147;Executive
Compensation&#148; below.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>As part of their annual retainer, a restricted stock grant was made after our annual meeting
of stockholders on May&nbsp;18, 2010 to each of Messrs.&nbsp;Johnson, Henry and Colangelo valued at
$35,000.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The following table provides a break down of the cash compensation paid to our non-employee
directors in 2010 in respect of their annual retainer for service on the Board of Directors, Board
of Directors&#146; meeting fees, annual retainer for service on Board committees, and annual retainer
for services as a Board committee chair:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Committee</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Board of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Chair</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Directors</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Board of Directors</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Board Committee</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Annual</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Annual Retainer</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Meeting Fees</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Annual Retainers</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Retainer</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chad N. Heath</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">60,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">80,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">D. Mark Dorman</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">David J. Johnson(1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,833</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83,833</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jack A. Henry(1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gerald J. Colangelo(1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The amount for Mr.&nbsp;Johnson includes the additional annual retainer of $33,333 that he receives
in his capacity as lead outside director. The amounts for Messrs.&nbsp;Johnson, Henry and Colangelo
exclude their respective restricted stock grants valued at $35,000.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">
<DIV align="left">
<A name="C14675124"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>PROPOSAL NO. 1<BR>
ELECTION OF DIRECTORS</B>
</DIV>

<DIV align="left">
<A name="C14675125"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Composition of our Board of Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Our bylaws provide that our business will be managed by or under the direction of a Board of
Directors. The number of directors constituting our Board of Directors is determined from time to
time by our Board of Directors. Currently, our Board of Directors consists of eight members. Each
nominee for the position of director will be elected at the Annual Meeting to hold office until the
next annual meeting of stockholders or the director&#146;s earlier resignation or removal. Upon the
recommendation of the Nominating and Corporate Governance Committee of the Board of Directors, the
Board of Directors has nominated the eight persons named below for election as directors. Proxies
solicited by our Board of Directors will, unless otherwise directed, be voted to elect the eight
nominees named below to constitute the entire Board of Directors.
</DIV>
<DIV align="left">
<A name="C14675126"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Directors and Director Nominees</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">All of the nominees named below are currently serving on the Board of Directors. Each nominee
has indicated a willingness to serve as a director for the ensuing year, but in case any nominee is
not a candidate at the meeting for any reason, the proxies named in the enclosed proxy form may
vote for a substitute nominee recommended by the Nominating and Corporate Governance Committee and
approved by the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The following table sets forth certain information regarding each director nominee:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="21%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="42%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Age</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Position</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Committee Membership</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="top" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brent D. Richardson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">48</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Chairman</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">None</TD>
</TR>
<TR valign="top" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brian E. Mueller</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">57</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Executive Officer and Director</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">None</TD>
</TR>
<TR valign="top" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Christopher C. Richardson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">39</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">General Counsel and Director</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">None</TD>
</TR>
<TR valign="top" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chad N. Heath</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">36</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Compensation<BR> Nominating and Corporate Governance (chair)</TD>
</TR>
<TR valign="top" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">D. Mark Dorman</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">50</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Compensation <BR> Nominating and Corporate Governance</TD>
</TR>
<TR valign="top" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">David J. Johnson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">64</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Compensation (chair) <BR> Audit</TD>
</TR>
<TR valign="top" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jack A. Henry</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">67</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Audit (chair)</TD>
</TR>
<TR valign="top" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gerald J. Colangelo</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">71</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Audit</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Brent D. Richardson </I>has been serving as our Executive Chairman since July&nbsp;1, 2008. Mr.
Richardson previously served as our Chief Executive Officer and as a director from 2004 to July
2008. From 2000 to 2004, Mr.&nbsp;Richardson served as Chief Executive Officer of Masters Online, LLC,
a company that provided online educational programs and marketing services to several regionally
and nationally accredited universities. Prior to 2000, Mr.&nbsp;Richardson served as Director of Sales
and Marketing and later General Manager of the Educational Division of Private Networks, a company
that produced customized distance learning curricula for the healthcare and automotive industries.
Mr.&nbsp;Richardson received a Bachelor of Science degree in Finance from Eastern Illinois University.
As our former Chief Executive Officer, and with more than 20&nbsp;years of experience in the education
industry, we believe that Mr.&nbsp;Richardson brings an extensive understanding of both our Company, in
particular, and the education industry, in general, to the Board and serves as an invaluable
resource for assessing and managing risks and planning for corporate strategy within the context of
our overall corporate culture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Brian E. Mueller </I>has been serving as our Chief Executive Officer since July&nbsp;1, 2008 and as a
director since March&nbsp;2009. From 1987 to 2008, Mr.&nbsp;Mueller was employed by Apollo Group, Inc., a
for-profit, postsecondary education company and the parent company of the University of Phoenix,
serving between January&nbsp;2006 and June&nbsp;2008 as its President and a Director. Mr.&nbsp;Mueller previously
served as the Chief Operating Officer of Apollo Group from December&nbsp;2005 to January&nbsp;2006, as Chief
Executive Officer of the University of Phoenix Online, a unit of the University of Phoenix, from
March&nbsp;2002 to November&nbsp;2005, and as Chief Operating Officer and Senior Vice President of the
University of Phoenix Online from May&nbsp;1997 to March&nbsp;2002. From 1987 to May&nbsp;1997, Mr.&nbsp;Mueller held
several positions in operations management for Apollo Group. From 1983 to 1987, Mr.&nbsp;Mueller was a
professor at Concordia University. Mr.&nbsp;Mueller received a Bachelor of Arts degree in Education and
a Master of Arts in
Education degree from Concordia University. We believe that Mr.&nbsp;Mueller&#146;s past experience as
a senior operating executive of Apollo Group, the largest company in our industry, and one of the
persons directly responsible for the development and growth of online education in the United
States, as well as his day to day leadership and intimate knowledge of our business and operations,
provide the Board of Directors with both industry-wide and Company-specific experience and
expertise.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Christopher C. Richardson </I>has been serving as our General Counsel since 2007 and as a director
since 2004. From 2004 to 2007, Mr.&nbsp;Richardson served as legal counsel in our Office of General
Counsel. Prior to 2004, Mr.&nbsp;Richardson served as the Chief Operating Officer for Masters Online,
LLC, a company that provided online educational programs and marketing services to several
regionally and nationally accredited universities. Mr.&nbsp;Richardson received a Bachelor of Arts
degree in Political Science from Brigham Young University, and a Juris Doctorate from the
University of Arizona College of Law, where he graduated summa cum laude. We believe that Mr.
Richardson&#146;s legal career, which has been focused both on general corporate matters and on the
extensive regulatory issues associated with operating a business in the education industry, as well
as his deep knowledge of our Company, has given him the experience and knowledge to guide our Board
of Directors on a variety of legal and business matters affecting the Company, including corporate
governance, regulatory issues and other corporate and litigation matters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Chad N. Heath </I>has been serving as a member of our Board of Directors since 2005. Mr.&nbsp;Heath
joined Endeavour Capital, a private equity firm based in Portland, Oregon that currently manages
over $1&nbsp;billion in equity capital, in 2001 and has served as one of its Managing Directors since
2006. Prior to joining Endeavour Capital, Mr.&nbsp;Heath served as a Principal at Charterhouse Group
International, a New York-based private equity firm focused on middle-market transactions. Prior
to Charterhouse, Mr.&nbsp;Heath worked in the investment banking division of Merrill Lynch. Mr.&nbsp;Heath
currently sits on the Boards of Directors of three privately held companies: Tall Oak Learning,
LLC, Barrett-Jackson Holdings, LLC, and Skagit Northwest Holdings, Inc. Mr.&nbsp;Heath received a
Bachelor of Science in Business Administration degree, magna cum laude, from Georgetown University.
We believe that Mr.&nbsp;Heath&#146;s financial and investment banking background, long association with the
Company, and extensive experience in investing in and serving as a director of companies in a
variety of industries, brings valuable experience and insights to the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>D.&nbsp;Mark Dorman </I>has been serving as a member of our Board of Directors since 2005. Mr.&nbsp;Dorman
joined Endeavour Capital in 1998 and has served as one of its Managing Directors since 2006. Prior
to joining Endeavour Capital, Mr.&nbsp;Dorman served as an investment banker at Green Manning &#038; Bunch, a
Denver-based investment banking firm focused on merger and acquisition transactions and advisory
work for middle-market clients across the western United States. He also served in the investment
banking groups of Boettcher &#038; Company and Morgan Stanley. Mr.&nbsp;Dorman currently sits on the Boards
of Directors of the following privately held companies: Skagit Northwest Holdings, Inc.;
Barrett-Jackson Holdings, LLC; Alpha Broadcasting, LLC; Providien, LLC and Nor-Cal Products
Holdings, Inc. Mr.&nbsp;Dorman received a Bachelor of Science degree from Lewis &#038; Clark College and a
Master of Business Administration degree from Harvard Business School. We believe that Mr.
Dorman&#146;s financial and investment banking background, long association with the Company, and
extensive experience in investing in and serving as a director of companies in a variety of
industries, brings valuable experience and insights to the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>David J. Johnson </I>has been serving as a member of our Board of Directors since November&nbsp;2008.
From 1997 to 2006, Mr.&nbsp;Johnson served as Chief Executive Officer and Chairman of the Board of
Directors of KinderCare Learning Centers, Inc., a for-profit provider of early childhood education
and care services, and from 1991 to 1996, he served as President, Chief Executive Officer, and
Chairman of the Board of Directors of Red Lion Hotels Corporation, a hotel company, each of which
were portfolio companies of Kohlberg Kravis Roberts &#038; Co. Prior to that time, Mr.&nbsp;Johnson served
as a general partner of Hellman &#038; Friedman, a private equity investment firm, from 1989 to 1991, as
President, Chief Operating Officer and Director of Dillingham Holdings, a diversified company, from
1986 to 1988, and as President and Chief Executive Officer of Cal Gas Corporation, a principal
subsidiary of Dillingham Holdings, which was also a portfolio company of Kohlberg Kravis Roberts &#038;
Co., from 1984 to 1987. Mr.&nbsp;Johnson received a Bachelor of Arts degree from the University of
Oregon and a Master of Business Administration degree from the University of Southern California.
We believe that Mr.&nbsp;Johnson&#146;s extensive experience as a Chief Executive Officer of other companies
provides a tremendous resource to our Board of Directors and management team, particularly in the
areas of operations, finance, and corporate governance.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Jack A. Henry </I>has been serving as a member of our Board of Directors since November&nbsp;2008.
Since 2000, Mr.&nbsp;Henry has served as the Managing Director of Sierra Blanca Ventures, LLC, a private
investment and advisory firm. From 1966 to 2000, Mr.&nbsp;Henry worked as a certified public accountant
for Arthur Andersen, a national accounting firm, retiring in 2000 as the Managing Partner of the
Phoenix, Arizona office. Mr.&nbsp;Henry currently serves on the Board of Directors of IA Global, a
services and outsourcing company, and previously served on the Boards of Directors of the following
companies: Point Blank Solutions, Inc., a designer and producer of protective technologies and body
armor, VistaCare, Inc., a provider of hospice care services, and White Electronic Designs
Corporation, a provider of defense electronics services. He also serves on the Boards of Directors
of several private companies and as President of the Arizona Chapter of the National Association of
Corporate Directors. Mr.&nbsp;Henry received a Bachelor of Business Administration degree and a Master
of Business Administration degree from the University of Michigan. We believe that Mr.&nbsp;Henry&#146;s
extensive experience with public and financial accounting matters for corporate organizations, as
well as experience as a consultant to and director of other public companies, provide significant
insight and expertise to our Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Gerald J. Colangelo </I>has been serving as a member of our Board of Directors since October&nbsp;2009.
Mr.&nbsp;Colangelo has been instrumental in the development of Arizona&#146;s professional sports industry,
as the face of the National Basketball Association&#146;s Phoenix Suns franchise since its inaugural
season in 1968 and for his role in bringing Major League Baseball to Phoenix in 1998. He served as
the Chairman of the NBA&#146;s Board of Governors, and served as a member of the league&#146;s Finance
Committee, Long Range Planning Committee, Expansion Committee and Competition and Rules&nbsp;Committee.
He is currently Managing Director of the USA Basketball Men&#146;s Senior National Team program,
overseeing a program that achieved the gold medal at the 2008 Beijing Olympics. Mr.&nbsp;Colangelo
served as Chairman and Chief Executive Officer of the 2001 World Champion Arizona Diamondbacks,
going from expansion team to World Champion in just four years. As with the NBA, Mr.&nbsp;Colangelo was
involved with the governing of baseball, serving on the Legislative Committee and on the Board of
Directors of the MLB Advanced Media arm of the league. He is currently a principal partner of JDM
Partners LLC, a real estate development company. He is Chairman of the Board of the Council of
Leadership Education; Vice Chairman of the Board of the Naismith Memorial Basketball Hall of Fame,
the National Italian American Foundation, and Young Life International; and serves on the Boards
of Directors of Southwest Leadership Foundation, the National Italian American Sports Hall of Fame
and the Leadership Foundations of America. He has previously served on the Boards of Directors of
the Phoenix Art Museum, the Greater Phoenix Economic Council, Athletes in Action, Phoenix Suns
Charities, the Collaboration for a New Century, and the Phoenix Community Alliance, and is the past
Vice President of the Downtown Phoenix Partnership. Mr.&nbsp;Colangelo graduated from the University of
Illinois. We believe that Mr.&nbsp;Colangelo&#146;s long and successful business career, including as a
professional sports team executive and owner and real estate developer, as well his extensive
leadership roles with leading athletic, charitable and other organizations throughout Arizona and
the United States, provides the Board of Directors with significant executive leadership and
management experience.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Other than Brent D. Richardson and Christopher C. Richardson, who are brothers, there are no
family relationships among any of our directors or executive officers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><B>Our Board of Directors unanimously recommends that the stockholders vote </B><U><B>FOR</B></U><B> the
election of each of the eight nominees listed above to constitute our Board of Directors.</B>
</DIV>


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<DIV align="left">
<A name="C14675127"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>PROPOSAL NO. 2<BR>
APPROVAL OF OUR ANNUAL CASH INCENTIVE PLAN IN ACCORDANCE WITH<BR>
SECTION 162(M) OF THE INTERNAL REVENUE CODE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Our Board of Directors has approved, upon the recommendation of the Compensation Committee and
subject to the approval of our stockholders at the 2011 Annual Meeting of Stockholders, our Annual
Cash Incentive Plan (the &#147;Cash Incentive Plan&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Stockholders are being asked to approve the Cash Incentive Plan to ensure that annual cash
bonuses paid to plan participants will qualify as &#147;performance-based&#148; compensation under Section
162(m) of the Internal Revenue Code of 1986, as amended (the &#147;Code&#148;) and thus be fully deductible
by the Company for federal income tax purposes. Section 162(m) and related guidance generally
preclude a publicly traded company from taking a tax deduction for compensation in excess of $1.0
million per individual paid to certain &#147;covered employees.&#148; These covered employees consist of our
chief executive officer and our three other highest compensated officers, excluding our chief
financial officer. The deduction limitation is subject to an exception for &#147;performance-based&#148;
compensation that meets certain requirements, including a requirement that the &#147;material terms of
the performance goals&#148; applicable to the covered employees must be disclosed to and approved by
stockholders before any compensation is paid to them. Stockholder approval of the Cash Incentive
Plan will constitute approval of the &#147;material terms of the performance goals&#148; under the plan
within the meaning of the regulations under Section&nbsp;162(m). By approving the Cash Incentive Plan,
the stockholders will be approving, among other things, the participant eligibility requirements,
the performance criteria on which incentive awards are based and the maximum dollar amount of
compensation that may be paid under the plan to any covered employee in any fiscal year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">If the Cash Incentive Plan is approved by stockholders, it will be effective for fiscal 2011,
beginning January&nbsp;1, 2011 and ending December&nbsp;31, 2011, and will remain in effect for each fiscal
year thereafter until terminated by our Board of Directors or Compensation Committee. If the
stockholders do not approve the Cash Incentive Plan, we will not be able to provide annual cash
incentives under the plan to our covered employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The affirmative vote of a majority of shares of common stock present in person or represented
by proxy and voting at the Annual Meeting and entitled to vote on the matter is required for
approval of this proposal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><B>Our Board of Directors unanimously recommends a vote </B><U><B>FOR</B></U><B> approval of the Cash
Incentive Plan.</B>
</DIV>
<DIV align="left">
<A name="C14675128"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Summary of the Cash Incentive Plan</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The following is a summary of the Cash Incentive Plan. It is qualified in its entirety by
reference to the full text of the Plan, which is attached as <I>Appendix&nbsp;A </I>to this proxy statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Administration. </I>The Cash Incentive Plan will be administered by the Compensation Committee,
consisting of at least two nonemployee directors, each of whom satisfies the requirements for an
&#147;outside director&#148; as the term is defined under Section&nbsp;162(m). The Compensation Committee may
delegate authority to a designee with respect to administration of awards which are not intended to
be performance-based for purposes of Section&nbsp;162(m).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Eligibility. </I>The Compensation Committee will select participants in the Cash Incentive Plan
from among the officers and regular employees of the Company and its subsidiaries. As of February
28, 2011, all employees (including all executive officers) were eligible to be designated to
participate in the Cash Incentive Plan and, subject to stockholder approval of Proposal 2, were
selected by the Compensation Committee to participate in the Cash Incentive Plan for 2011.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Determination of awards under the Cash Incentive Plan. </I>For each fiscal year, the Compensation
Committee establishes one or more performance goals to be satisfied and the target bonus to be
earned by each participant if those performance goals are satisfied. The target bonus may be either
an absolute dollar amount or a specified percentage of base salary, as determined by the
Compensation Committee. For those participants who are covered employees, the Compensation
Committee generally must establish the applicable annual performance goals no later the 90&nbsp;days
after the commencement of the fiscal year and at a time when their outcome remains substantially
uncertain.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The performance goals for each fiscal year must be based on one or more of the following
measures of Company performance: (i)&nbsp;revenue targets; (ii)&nbsp;adjusted EBITDA targets (as such term is
defined from time to time in the Company&#146;s periodic reports as filed with the Securities and
Exchange Commission); (iii)&nbsp;return measures (including, but not limited to, return on assets,
capital, investment, equity or sales, and total stockholder return); (iv)&nbsp;earnings per share; (v)
net income (before or after taxes) or operating income; (vi)&nbsp;budget comparisons; (vii)&nbsp;regulatory
compliance; (viii)&nbsp;productivity improvements; (ix)&nbsp;measures of student satisfaction or achievement;
(x)&nbsp;any combination of, or a specified increase in, any of the foregoing; and (xi)&nbsp;the completion
of corporate transactions intended to enhance the Company&#146;s revenue or profitability. The
Compensation Committee may also establish personal performance goals for any participant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Performance goals may be based upon the attainment of specified levels of the Company&#146;s
performance under one or more of the measures described above relative to a budget, an index or the
performance of other entities and may also be based on the performance of any of the Company&#146;s
business units. Performance goals may include a minimum threshold level of performance below which
no award will be earned, levels of performance at which specified portions of an award will be
earned and a maximum level of credited performance above which no greater award may be earned. The
measured attainment of performance goals may include or exclude certain extraordinary items or
transactions, as determined by the Compensation Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The maximum bonus payable to any participant in a fiscal year may not be greater than 200% of
the participant&#146;s base salary for the year or exceed $2,000,000. This amount is greater than bonus
levels paid by the Company in previous years. This bonus limit was set in part to allow the Cash
Incentive Plan to accommodate continued growth of the Company. The Board believes that this limit
will provide the Compensation Committee with sufficient flexibility to recognize exceptional
individual performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Final payouts for a fiscal year under the Cash Incentive Plan must be approved by the
Compensation Committee and will occur as soon as practical after the close of the Company&#146;s
financial books for the fiscal year. To be eligible to receive a bonus payment, a participant must
generally remain an employee as of the last day of the fiscal year. However, the Compensation
Committee may authorized a prorated bonus payment based on actual achievement of the applicable
performance goals for the full fiscal to any employee whose employment terminates during the year
by reason of death, disability, retirement or involuntary termination due to a reduction in force
after at least six months of service during the year. The Compensation Committee may adjust
individual bonus payment up or down based on the individual&#146;s personal performance, provided that
no such upward adjustment may be made to any bonus payable to a covered employee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Deferral of bonuses. </I>Bonuses earned under the Cash Incentive Plan generally must be paid no
later than the 15th day of the third month following the end of the fiscal year. However, the
Compensation Committee may permit a participant to defer all or part of the bonus awarded to such
participant under any Company sponsored deferred compensation plan for which that participant is
eligible.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Amendment or termination. </I>The Company reserves the right, exercisable by the Compensation
Committee, to amend the Cash Incentive Plan at any time and in any respect or to discontinue and
terminate the Cash Incentive Plan in whole or in part at any time; provided, however, that certain
amendments to the Cash Incentive Plan will be subject to approval of the Company&#146;s stockholders in
such manner and with such frequency as shall be required under Section&nbsp;162(m).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Summary of federal income tax consequences. </I>Under present federal income tax law,
participants will realize ordinary income, equal to the amount of the award paid to them, at the
time of payment. That income will be subject to applicable income and employment tax withholding by
the Company. The Company will receive a deduction for the amount constituting ordinary income to
the participant, provided that the Cash Incentive Plan satisfies the requirements of Section
162(m), which imposes a $1,000,000 limitation on the income tax deductibility of
non-performance-related compensation paid per individual in the group comprised of the Company&#146;s
chief executive officer and the three most highly compensated officers (other than the chief
financial officer), and otherwise satisfies the requirements for deductibility under federal income
tax law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Award amounts</I>. Bonuses payable under the Cash Incentive Plan for fiscal year 2011 and future
years cannot currently be determined because they will depend on the attainment by the Company and
plan participants of the specified performance goals established by the Compensation Committee. If
the Cash Incentive Plan as proposed
herein had been in effect for fiscal year 2010, the amounts that would have been paid to named
executive officers under the Cash Incentive Plan are the same as those that were actually paid to
them under the cash incentive plan in effect for fiscal 2010, which amounts are set forth in the
Compensation Discussion and Analysis section under the &#147;Non-Equity Incentive Plan Compensation&#148;
column of the Summary Compensation Table.
</DIV>


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<DIV align="left">
<A name="C14675129"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>PROPOSAL NO. 3<BR>
APPROVAL OF THE SECTION 162(M) LIMITS OF<BR>
OUR 2008 EQUITY INCENTIVE PLAN</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Our stockholders have previously approved our 2008 Equity Incentive Plan (the &#147;Equity
Incentive Plan&#148;), under which employees, officers, directors and consultants may be granted
equity-based and cash-based awards. The stockholders now are being asked to approve certain
provisions of the Equity Incentive Plan solely for the purpose of preserving the Company&#146;s ability
to deduct in full for federal income tax purposes the compensation recognized by our certain of our
executive officers in connection with performance-based awards that may be granted to them in the
future under the Equity Incentive Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">As described in Proposal No.&nbsp;2, under Section 162(m) of the Code and related guidance, we
generally may not deduct for federal income tax purposes compensation paid to certain executive
officers to the extent that any of these persons receive more than $1.0&nbsp;million in compensation in
any single year. However, if the compensation qualifies as &#147;performance-based&#148; for Section 162(m)
purposes, we may deduct it for federal income tax purposes even if it exceeds $1.0&nbsp;million in a
single year. In general, for a grant under the Equity Incentive Plan to qualify as
&#147;performance-based,&#148; certain material terms of the Equity Incentive Plan must have been approved by
our public stockholders in a separate vote. Awards granted under the Equity Incentive Plan during a
transition period following our initial public offering and ending on the earlier of the date of a
material modification of the Equity Incentive Plan or the 2011 annual meeting are, however, exempt
from the deduction disallowance rule of Section&nbsp;162(m). The availability of the exemption for
awards of performance-based compensation therefore depends upon obtaining approval of the Equity
Incentive Plan by our public stockholders at the 2011 annual meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The Board of Directors believes that it is in the best interests of the Company and its
stockholders to continue to preserve the ability of the Company to deduct in full compensation
related to stock options, stock appreciation rights and other performance-based awards granted
under the Equity Incentive Plan. Therefore, solely for the purpose of qualifying such compensation
as performance-based under Section&nbsp;162(m), the stockholders are asked to approve the following
provisions of the Equity Incentive Plan (the &#147;Section&nbsp;162(m) Qualifying Provisions&#148;):
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All employees of the Company and any parent or subsidiary corporation of the Company or
other affiliated entity are eligible to be granted stock options, stock appreciation
rights, restricted stock, restricted stock units, performance shares, performance units,
other stock-based awards and cash-based awards under the Equity Incentive Plan.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No participant may receive in any fiscal year under the Equity Incentive Plan
equity-based awards intended to qualify as &#147;performance-based&#148; for more than 2,000,000
shares of our common stock, provided that this limit will be appropriately adjusted for
stock splits, stock dividends and similar changes to the Company&#146;s capital structure.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No participant may receive in any fiscal year under the Equity Incentive Plan
cash-denominated awards intended to qualify as &#147;performance-based&#148; for more than $5,000,000
for each full fiscal year contained in the applicable performance period.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The vesting of restricted stock, restricted stock units, performance share and
performance unit awards and other stock-based awards and cash-based awards intended to
qualify as &#147;performance-based&#148; may be made subject to the attainment of performance goals
for a specified period of time relating to one or more of the following performance
measures, either individually, alternatively or in any combination, applied to either the
Company as a whole or to a business unit or subsidiary, either individually, alternatively
or in any combination, and measured either annually or cumulatively over a period of years,
on an absolute basis or relative to a pre-established target, to previous years&#146; results or
to a designated comparison group or index, in each case as specified by the administrator
in the award: (i)&nbsp;revenue, (ii)&nbsp;sales, (iii)&nbsp;expenses, (iv)&nbsp;operating income, (v)&nbsp;gross
margin, (vi)&nbsp;operating margin, (vii)&nbsp;earnings before any one or more of: stock-based
compensation expense, interest, taxes, depreciation and amortization, (viii)&nbsp;pre-tax
profit, (ix)&nbsp;net operating income, (x)&nbsp;net income, (xi)&nbsp;economic value added, (xii)&nbsp;free
cash flow, (xiii)&nbsp;operating cash flow, (xiv)&nbsp;balance of cash, cash equivalents and
marketable securities, (xv)&nbsp;stock price, (xvi)&nbsp;earnings per share, (xvii)&nbsp;return on
stockholder equity, (xviii)&nbsp;return on capital, (xix)&nbsp;return on assets, (xx)&nbsp;return on
investment, (xxi)
employee satisfaction, (xxii)&nbsp;employee retention, (xxiii)&nbsp;market share, (xxiv)&nbsp;customer
satisfaction, (xxv)&nbsp;product development, (xxvi)&nbsp;research and development expenses, (xxvii)
completion of an identified special project, or (xxviii)&nbsp;completion of a joint venture or
other corporate transaction.</TD>
</TR>

</TABLE>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">While we believe that compensation provided by such awards under the Equity Incentive Plan
generally will be deductible by the Company for federal income tax purposes, under certain
circumstances, such as a change in control of the Company, compensation paid in settlement of
certain awards may not qualify as performance-based.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We believe that we must retain the flexibility to respond to changes in the market for top
executive officers and offer compensation packages that are competitive with those offered by
others in our industry. In the event we are motivated by competitive forces to offer compensation
in excess of $1.0&nbsp;million to executive officers, our Board of Directors believes it would be in our
best interests and those of our stockholders to be able to deduct such compensation for federal
income tax purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">If stockholder approval of this proposal is not obtained, we will not make any further grants
under the Equity Incentive Plan to our Chief Executive Officer and our other named executive
officers who are &#147;covered employees&#148; as defined in Section&nbsp;162(m), or their successors, until such
time, if any, as stockholder approval of a subsequent similar proposal is obtained.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The affirmative vote of a majority of shares of common stock present in person or represented
by proxy and voting at the Annual Meeting and entitled to vote on the matter is required for
approval of this proposal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><B>Our Board of Directors unanimously recommends a vote </B><U><B>FOR</B></U><B> approval of the provisions of
our 2008 equity incentive plan setting forth the </B><B>Section 162(m)</B><B> limits.</B>
</DIV>
<DIV align="left">
<A name="C14675130"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Summary of the 2008 Equity Incentive Plan</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The following summary of the Equity Incentive Plan as currently in effect is qualified in its
entirety by the specific language of the Equity Incentive Plan. Copies of the Equity Incentive Plan
are available to any stockholder upon request addressed to Investor Relations, Grand Canyon
Education, Inc., 3300 West Camelback Road, Phoenix, Arizona 85017. The Equity Incentive Plan may
also be viewed without charge on the Securities and Exchange Commission website at www.sec.gov.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Purpose</I>. Our Board of Directors and stockholders previously adopted the Equity Incentive Plan
to enhance the link between the creation of stockholder value and executive incentive compensation
and to give our directors, executive officers and other employees appropriate motivation and
rewards for achieving increases in share value. These incentives are provided through the grant of
stock options, stock appreciation rights, restricted stock, restricted stock units, performance
shares, performance units, other stock-based awards, cash-based awards, and nonemployee director
awards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Shares reserved for issuance under the plan</I>. As of February&nbsp;28, 2011, we had authorized and
reserved a total of 7,622,034 shares of our common stock for issuance under the Equity Incentive
Plan. This reserve automatically increases on a cumulative basis on January 1 of each year through
2018, by an amount equal to the smaller of (a)&nbsp;2.5% of the number of shares of common stock issued
and outstanding on the immediately preceding December&nbsp;31, or (b)&nbsp;an amount determined by our Board
of Directors. We will make appropriate adjustments in the number of authorized shares and other
numerical limits in the Equity Incentive Plan and in outstanding awards to prevent dilution or
enlargement of participants&#146; rights in the event of a stock split or other change in our capital
structure. Shares subject to awards that expire or are cancelled or forfeited will again become
available for issuance under the Equity Incentive Plan. The shares available will not be reduced by
awards settled in cash or by shares withheld to satisfy tax withholding obligations. Only the net
number of shares issued upon the exercise of stock appreciation rights or options exercised by
means of a net exercise or by tender of previously owned shares will be deducted from the shares
available under the Equity Incentive Plan.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Certain award limits. </I>To enable compensation provided in connection with certain types of
awards intended to qualify as &#147;performance-based&#148; within the meaning of Section 162(m) of the Code,
the Board of Directors has amended the Equity Incentive Plan to establish limits on the maximum
aggregate number of shares or dollar value for
which such awards may be granted to an employee in any fiscal year, as follows:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No more than 2,000,000 shares under equity-based awards.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No more than $5,000,000 for each full fiscal year contained in the
performance period under cash-denominated awards.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">In addition, to comply with applicable tax rules, the Equity Incentive Plan also limits to
4,199,937 the number of shares that may be issued upon the exercise of incentive stock options
granted under the Equity Incentive Plan, provided that this limit automatically increases on a
cumulative basis on January 1 of each year through 2018, by an amount equal to the smaller of (a)
the annual increase described above or (b)&nbsp;4,199,937 shares. These award limits are subject to
appropriate adjustments in the event of a stock split or other change in our capital structure.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Plan administration</I>. The Equity Incentive Plan is administered by our Compensation Committee
or, if there is no Compensation Committee, by our Board of Directors acting as the Compensation
Committee. The Compensation Committee has the complete discretion to make all decisions relating to
the Equity Incentive Plan, including modifying outstanding awards. All such decisions shall be
final and binding unless fraudulent or made in bad faith.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Eligibility</I>. We may grant awards under the Equity Incentive Plan to our employees, officers,
directors, or consultants, or those of any future parent or subsidiary corporation or other
affiliated entity. While we may grant incentive stock options only to employees, we may grant
nonstatutory stock options, stock appreciation rights, restricted stock purchase rights or bonuses,
restricted stock units, performance shares, performance units, and cash-based awards or other
stock-based awards to any eligible participant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Description of options</I>. Subject to plan limits, the Compensation Committee has discretion to
determine the terms of each option and the number of shares covered by each option, and the vesting
term for each option. In most cases, options will expire not more than 10&nbsp;years after they are
granted, though options generally expire earlier if the participant&#146;s service terminates earlier.
The total fair market value of the shares (as of the date of grant) with respect to which incentive
stock options are exercisable for the first time by any participant during any calendar year may
not exceed $100,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Type of stock option grants permitted</I>. The Equity Incentive Plan permits us to grant
incentive stock options and nonstatutory stock options. After we grant an option, the principal
differences to the participant between an incentive stock option and a nonstatutory stock option
relate to federal income tax consequences, which are described below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Exercise price of stock options</I>. The Compensation Committee determines the option exercise
price of each option. However, the exercise price may not be less than the fair market value of the
shares on the date of grant; provided however, that exercise price of any incentive stock option
granted to a person who is also a 10% stockholder of our common stock will not be less than 110% of
the fair market value of the shares on the date of grant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Each option is exercisable at the time or times and under the restrictions and conditions that
the Compensation Committee determines in its discretion; provided, however, that no option will be
exercisable after the expiration of 10&nbsp;years from the date the option is granted; and provided,
further, that no incentive stock option granted to a person who directly or by attribution owns
more than 10% of the total combined voting power of all classes of our stock or any parent or
subsidiary of ours will be exercisable after the expiration of five years from the date the
incentive stock option is granted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Description of stock appreciation rights</I>. Stock appreciation rights provide for payment of
any appreciation in the market price of a specified number of shares of our common stock between
the grant date and the date on which a stock appreciation right is exercised after it has vested.
The amount of any payments received under a stock appreciation right will fluctuate up and down
with changes in our share price. The amount of stock price appreciation may be paid in cash, in
shares of our common stock having a fair market value equal to the amount of appreciation to be
paid, or in a combination of cash and shares of stock. The form of payment will be determined by
the Compensation Committee, in its discretion. Stock appreciation rights may be awarded in
combination with options, and such an award may provide that the stock appreciation rights will not
be exercisable unless the related options are forfeited.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Each stock appreciation right is exercisable at the time or times and under the restrictions
and conditions that the Compensation Committee determines in its discretion; provided, however,
that no stock appreciation right will be exercisable after the expiration of 10&nbsp;years from the date
the stock appreciation right is granted. Stock appreciation rights granted in combination with
options shall expire on the date the related options expire.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Exercise price of stock appreciation rights</I>. The Compensation Committee determines the
exercise price of each stock appreciation right. However, the exercise price for each stock
appreciation right granted in combination with a stock option will be the same as the exercise
price of the related stock option. The exercise price per share of a freestanding stock
appreciation right will not be less than the fair market value of a share of stock on the date the
right is granted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Description of restricted stock awards</I>. The Compensation Committee may approve a restricted
stock award in the form of either a restricted stock bonus, restricted stock purchase right or
restricted stock unit. A restricted stock bonus is a grant of stock which does not generally
require payment of any monetary purchase price, a restricted stock purchase right is an award which
permits the Equity Incentive Plan participant to elect during a short period of time to purchase a
specified number of shares at a specified price, and a restricted stock unit is simply a promise by
us to issue shares at or after vesting of the units.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The purchase price for shares of stock issuable under a restricted stock purchase right is
established by the Compensation Committee in its discretion. Generally, no monetary payment is
required for the issuance of shares under a restricted stock bonus award or a restricted stock unit
award, the consideration for which will be services already rendered by the Equity Incentive Plan
participant. However, a participant granted a restricted stock bonus or a restricted stock unit
award may be required to furnish consideration in the form of cash or past services rendered in the
amount of the par value of the shares subject to the award. Generally, the vesting of restricted
stock awards will cease upon termination of the participant. The Compensation Committee, in its
discretion, can determine the period during which a participant may exercise its restricted stock
purchase right, though such period cannot exceed 30&nbsp;days from the date of grant of the award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Description of performance awards</I>. Performance awards may be granted in the form of either
performance shares or performance units. These awards are contractual rights that provide the
holder with a payment in shares or cash if certain performance goals established by the
Compensation Committee are attained within a specified time period. The Compensation Committee
decides, in its discretion, whether or not a participant will be granted a performance award, and
if so, the type of award, the number of performance shares or units subject to the award, the
applicable performance goals and the performance period. The number of performance shares or
performance units a participant is awarded is set forth in an award agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The initial value of each performance share and performance unit will be determined by the
Compensation Committee. Generally, the initial value of a performance share will be equal to the
fair market value of one share of our common stock on the date of grant and the initial value of
each performance unit will be a monetary value established by the Compensation Committee at the
time of grant. The ultimate value of a performance award depends on the extent to which
performance goals established by the Compensation Committee are attained and, in the case of
performance shares, the fair market value of our common stock at the time payment is made under the
award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Performance goals are established by the Compensation Committee based on targets to be
obtained with respect to one or more measures of business or financial performance during the
performance period specified by the Compensation Committee. Once a performance goal is
established, it cannot be changed during the performance period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Measurement of performance goals. </I>The Equity Incentive Plan sets forth performance measures
used in the case of an award intended to qualify as &#147;performance-based&#148; under Section&nbsp;162(m). To
qualify as a &#147;performance-based,&#148; the number of shares or other benefits granted, issued,
retainable or vested under an award may be made subject to the attainment of performance goals for
a specified period of time relating to one or more of the following performance measures, either
individually, alternatively or in any combination, applied to either us as a whole or to a business
unit or subsidiary, either individually, alternatively or in any combination, and measured either
annually or cumulatively over a period of years, on an absolute basis or relative to a
pre-established target, to previous years&#146; results or to a designated comparison group or index, in
each case as specified by the Compensation Committee in the award: (i)&nbsp;revenue, (ii)&nbsp;sales, (iii)
expenses, (iv)&nbsp;operating income, (v)&nbsp;gross margin, (vi)&nbsp;operating margin, (vii)&nbsp;earnings before
any one or more of: stock-based compensation expense, interest, taxes, depreciation and
amortization, (viii)&nbsp;pre-tax profit, (ix)&nbsp;net operating income, (x)&nbsp;net income, (xi)&nbsp;economic value
added, (xii)&nbsp;free cash flow, (xiii)&nbsp;operating cash flow, (xiv)&nbsp;balance of cash, cash equivalents
and marketable securities, (xv)&nbsp;stock price, (xvi)&nbsp;earnings per share, (xvii)&nbsp;return on stockholder
equity, (xviii)&nbsp;return on capital, (xix)&nbsp;return on assets, (xx)&nbsp;return on investment, (xxi)
employee satisfaction, (xxii)&nbsp;employee retention, (xxiii)&nbsp;market share, (xxiv)&nbsp;customer
satisfaction, (xxv)&nbsp;product development, (xxvi)&nbsp;research and development expenses, (xxvii)
completion of an identified special project, or (xxviii)&nbsp;completion of a joint venture or other
corporate transaction.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Cash-based awards and other stock-based awards. </I>The Compensation Committee may grant
cash-based awards or other stock-based awards in such amounts and subject to such terms and
conditions as the Compensation Committee determines. Cash-based awards will specify a monetary
payment or range of payments, while other stock-based awards will specify a number of shares or
units based on shares or other equity-related awards. Such awards may be subject to vesting
conditions based on continued performance of service or subject to the attainment of one or more
performance goals similar to those described above in connection with performance awards.
Settlement of awards may be in cash or shares of common stock, as determined by the Compensation
Committee. A participant will have no voting rights with respect to any such award unless and
until shares are issued pursuant to the award. The Compensation Committee may grant dividend
equivalent rights with respect to other stock-based awards. The effect on such awards of the
participant&#146;s termination of service will be determined by the Compensation Committee and set forth
in the participant&#146;s award agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Nonemployee director awards</I>. The Equity Incentive Plan authorizes the Compensation Committee
to establish a program of periodic awards to our nonemployee directors. These awards may take the
form of nonstatutory stock options, stock appreciation rights, restricted stock awards or
restricted stock unit awards. Nonemployee director awards are to be granted on a periodic,
nondiscriminatory basis. They may consist of a basic award granted to all nonemployee directors,
with additions for one or more of the following: (i)&nbsp;initial election or appointment to our Board
of Directors; (ii)&nbsp;service on a committee of our Board of Directors; and (iii)&nbsp;service as chairman
of our Board of Directors. Only members of the Board of Directors who are not employees at the
time of grant will be eligible to participate in the non-employee director awards component of the
Equity Incentive Plan. The Board of Directors or the Compensation Committee will set the amount and
type of non-employee director awards to be awarded on a periodic, non-discriminatory basis. Under
our current nonemployee director compensation plan, upon joining our Board of Directors, new
non-employee directors receive an award of restricted stock under the Equity Incentive Plan valued
at $20,000, which vests on the one year anniversary of the date of grant, subject to accelerated
vesting in the event of a change in control. For serving on the Board of Directors, our
non-employee directors also receive an annual retainer of $60,000 in cash or, at their election, an
annual retainer consisting of $30,000 in cash and an award of restricted stock under the Equity
Incentive Plan valued at $35,000. The restricted stock grants to our non-employee directors are
made after our annual meeting of stockholders each year and vest on the earlier of the one year
anniversary of the date of grant or immediately prior to the next year&#146;s annual meeting of
stockholders, subject to acceleration in the event of a change in control.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Effect of change in control</I>. In the event of a change in control, as described in the Equity
Incentive Plan, the acquiring or successor entity may assume or continue all or any awards
outstanding under the Equity Incentive Plan or substitute substantially equivalent awards. Any
awards that are not assumed or continued in connection with a change in control or are not
exercised or settled prior to the change in control will terminate effective as of the time of the
change in control. The Compensation Committee may provide for the acceleration of vesting of any or
all outstanding awards upon such terms and to such extent as it determines, except that the vesting
of all non-employee director awards will automatically be accelerated in full. The Equity Incentive
Plan also authorizes the Compensation Committee, in its discretion and without the consent of any
participant, to cancel each or any outstanding award denominated in shares upon a change in control
in exchange for a payment to the participant with respect to each share subject to the cancelled
award of an amount equal to the excess of the consideration to be paid per share of common stock in
the change in control transaction over the exercise price per share, if any, under the award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Amendment and termination</I>. The Equity Incentive Plan will continue in effect until its
termination by the Compensation Committee, provided that no awards may be granted under the Equity
Incentive Plan following September&nbsp;26, 2018, the tenth anniversary of the Equity Incentive Plan&#146;s
effective date. The Compensation Committee may amend, suspend or terminate the Equity Incentive
Plan at any time, provided that no amendment may be made without stockholder approval that would
increase the maximum aggregate number of shares of stock
authorized for issuance under the Equity Incentive Plan, change the class of persons eligible
to receive incentive stock options or require stockholder approval under any applicable law. No
amendment, suspension or termination of the Equity Incentive Plan may affect any outstanding award
unless expressly provided by the administrator, and, in any event, may not have a materially
adverse affect an outstanding award without the consent of the participant unless necessary to
comply with applicable law.
</DIV>
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<DIV align="left">
<A name="C14675131"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>U.S. Federal Income Tax Consequences</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The following summary is intended only as a general guide to the U.S. federal income tax
consequences of participation in the Equity Incentive Plan and does not attempt to describe all
possible federal or other tax consequences of such participation or tax consequences based on
particular circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Incentive stock options. </I>An optionee who is granted an incentive stock option does not
recognize taxable income at the time the option is granted or upon its exercise, although the
exercise may subject the optionee to the alternative minimum tax. Upon a disposition of the shares
more than two years after grant of the option and one year after exercise of the option, any gain
or loss is treated as long-term capital gain or loss. If these holding periods are not satisfied,
the optionee recognizes ordinary income at the time of disposition equal to the difference between
the exercise price and the lower of (i)&nbsp;the fair market value of the shares at the date of the
option exercise or (ii)&nbsp;the sale price of the shares. Any gain or loss recognized on such a
premature disposition of the shares in excess of the amount treated as ordinary income is treated
as long-term or short-term capital gain or loss, depending on the holding period. We are entitled
to a deduction in the same amount as the ordinary income recognized by the optionee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Nonstatutory stock options</I>. An optionee does not recognize any taxable income at the time he
or she is granted a nonstatutory stock option. Upon exercise, the optionee recognizes taxable
income generally measured by the excess of the then fair market value of the shares over the
exercise price. Any taxable income recognized in connection with an option exercise by our employee
is subject to tax withholding by us. We are generally entitled to a deduction in the same amount as
the ordinary income recognized by the optionee, except to the extent such deduction is limited by
applicable provisions of the Code. Upon a disposition of such shares by the optionee, any
difference between the sale price and the optionee&#146;s exercise price, to the extent not recognized
as taxable income as provided above, is treated as long-term or short-term capital gain or loss,
depending on the holding period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Stock appreciation rights</I>. No taxable income is reportable when a stock appreciation right is
granted to a participant. Upon exercise, the participant will recognize ordinary income in an
amount equal to the amount of cash received and the fair market value of any shares received. If
the participant is an employee, such ordinary income generally is subject to withholding of income
and employment taxes. Any additional gain or loss recognized upon any later disposition of the
shares would be capital gain or loss. We generally should be entitled to a deduction equal to the
amount of ordinary income recognized by the participant in connection with the exercise of the
stock appreciation right, except to the extent such deduction is limited by applicable provisions
of the Code.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Restricted stock awards</I>. A participant acquiring restricted stock generally will recognize
ordinary income equal to the excess of the fair market value of the shares on the &#147;determination
date&#148; over the price paid, if any, for such shares. The &#147;determination date&#148; is the date on which
the participant acquires the shares unless the shares are subject to a substantial risk of
forfeiture and are not transferable, in which case the determination date is the earlier of (i)&nbsp;the
date on which the shares become transferable or (ii)&nbsp;the date on which the shares are no longer
subject to a substantial risk of forfeiture (e.g., when they become vested). If the determination
date follows the date on which the participant acquires the shares, the participant may elect,
pursuant to Section 83(b) of the Internal Revenue Code, to designate the date of acquisition as the
determination date by filing an election with the Internal Revenue Service no later than 30&nbsp;days
after the date on which the shares are acquired. If the participant is an employee, such ordinary
income generally is subject to withholding of income and employment taxes. Upon the sale of shares
acquired pursuant to a restricted stock award, any gain or loss, based on the difference between
the sale price and the fair market value of the shares on the determination date, will be taxed as
capital gain or loss. We generally should be entitled to a deduction equal to the amount of
ordinary income recognized by the participant on the determination date, except to the extent such
deduction is limited by applicable provisions of the Code.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Restricted stock unit, performance shares and units, cash-based and other stock-based awards</I>.
A participant generally will recognize no income upon the receipt of a restricted stock unit,
performance share, performance unit, cash-based or other stock-based award. Upon the settlement of
such awards, participants normally will recognize
ordinary income in the year of settlement in an amount equal to the cash received and the fair
market value of any substantially vested shares of stock received. If the participant is an
employee, such ordinary income generally is subject to withholding of income and employment taxes.
If the participant receives shares of restricted stock, the participant generally will be taxed in
the same manner as described above under &#147;Restricted stock awards.&#148; Upon the sale of any shares
received, any gain or loss, based on the difference between the sale price and the fair market
value of the shares on the determination date (as defined above under &#147;Restricted stock awards&#148;),
will be taxed as capital gain or loss. We generally should be entitled to a deduction equal to the
amount of ordinary income recognized by the participant on the determination date, except to the
extent such deduction is limited by applicable provisions of the Code.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Dividend equivalents. </I>A participant will recognize taxable income upon the payout of a
dividend equivalent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Section&nbsp;</I><I>162(m)</I><I>. </I>Section&nbsp;162(m) of the Code would render non-deductible to us certain
compensation in excess of $1,000,000 received in any year by certain executive officers unless such
excess is &#147;performance-based compensation&#148; (as defined in the Code) or is otherwise exempt from
Section&nbsp;162(m). The availability of the exemption for awards of performance-based compensation not
covered by the transition period rule described above depends upon obtaining approval of certain
material terms of the Equity Incentive Plan by our public stockholders. Provided we obtain the
approval of our stockholders of this proposal, grants of options and stock appreciation rights, and
grants of restricted stock awards, restricted stock units and performance awards conditioned on
attainment of one or more performance goals set forth in the Equity Incentive Plan, may qualify as
performance-based compensation exempt from Section&nbsp;162(m).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Section&nbsp;409A</I>. Certain awards granted under the Equity Incentive Plan may be deemed to
constitute deferred compensation within the meaning of Section&nbsp;409A of the Code and must satisfy
the requirements of Section&nbsp;409A to avoid adverse tax consequences to participants who receive such
awards. These requirements include limitations on election timing, acceleration of payments, and
distributions. We intend to structure any deferrals and awards under the Equity Incentive Plan to
meet the applicable tax law requirements.
</DIV>


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<DIV align="left">
<A name="C14675132"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>PROPOSAL NO. 4<BR>
ADVISORY (NON-BINDING) VOTE ON EXECUTIVE COMPENSATION (SAY-ON-PAY)</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act, or the
Dodd-Frank Act, requires that our stockholders have the opportunity to cast an advisory
(non-binding) vote on executive compensation commencing with our 2011 annual meeting of
stockholders, commonly referred to as a &#147;Say-on-Pay&#148; vote, as well as an advisory vote with respect
to whether future Say-on-Pay votes will be held every one, two or three years, which is the subject
of Proposal No.&nbsp;5 in this proxy statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The advisory vote on executive compensation is a non-binding vote on the compensation of our
named executive officers as described in the Compensation Discussion and Analysis section,
including the tabular disclosure and accompanying narrative disclosure, regarding such
compensation, set forth in this proxy statement. Please read the Compensation Discussion and
Analysis section starting on page 31 of this proxy statement for a detailed discussion about our
executive compensation programs, including information about the fiscal 2010 compensation of our
named executive officers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The advisory vote on executive compensation is not a vote on our general compensation
policies, the compensation of our Board of Directors, or our compensation policies as they relate
to risk management. The Dodd-Frank Act requires that we hold the advisory vote on executive
compensation at least once every three years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We pay our executive officers based on business performance and individual performance, and,
in setting compensation levels, we take into consideration our past practices, our current and
anticipated future needs, and the relative skills and experience of each individual executive
officer. Under our compensation philosophy, which we discuss in the Compensation Discussion and
Analysis, a named executive officer&#146;s total compensation will vary based on our overall performance
and the particular named executive officer&#146;s personal performance and contribution to our overall
results. We believe that the compensation program we follow helps us achieve our principal
compensation objectives of relating compensation to performance and making our compensation package
competitive and cost-effective.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The Compensation Discussion and Analysis section starting on page 31 of this proxy statement
provides a more detailed discussion of our executive compensation program and compensation
philosophy. We believe our policies have helped us achieve our compensation objectives of
attracting, motivating, retaining, and rewarding our key officers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The vote solicited by this Proposal No.&nbsp;4 is advisory, and therefore is not binding on us, our
Board of Directors or our Compensation Committee, nor will its outcome require us, our Board of
Directors or our Compensation Committee to take any action. Moreover, the outcome of the vote will
not be construed as overruling any decision by us or our Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Furthermore, because this non-binding, advisory vote primarily relates to the compensation of
our named executive officers that we have already paid or otherwise contractually committed to,
there is generally no opportunity for us to revisit these decisions. However, our Board of
Directors, including our Compensation Committee, values the opinions of our stockholders and, to
the extent there is any significant vote against the named executive officer compensation as
disclosed in this proxy statement, we will consider our stockholders&#146; concerns and evaluate what
actions, if any, may be appropriate for us to take in the future to address those concerns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Stockholders will be asked at the Annual Meeting to approve the following resolution pursuant
to this Proposal No.&nbsp;4:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">&#147;RESOLVED, that the stockholders of Grand Canyon Education, Inc. approve, on an advisory
basis, the compensation of the Company&#146;s named executive officers, disclosed pursuant to Item&nbsp;402
of Regulation&nbsp;S-K in the Company&#146;s definitive proxy statement for the 2011 Annual Meeting of
Stockholders.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><B>Our Board of Directors unanimously recommends that you vote </B><B><U>FOR</U> the resolution approving
the compensation of our named executive officers as disclosed in this proxy statement.</B>
</DIV>



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<DIV align="left">
<A name="C14675133"></A>
</DIV>
<DIV align="center" style="margin-top: 10pt; font-size: 10pt"><B>PROPOSAL NO. 5</B></DIV>

<DIV align="center" style="font-size: 10pt"><B>ADVISORY (NON-BINDING) VOTE ON THE FREQUENCY</B><br>
<B>OF AN ADVISORY VOTE ON EXECUTIVE COMPENSATION</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">In connection with Proposal No.&nbsp;4 above seeking advisory approval of the compensation of our
named executive officers, the Dodd-Frank Act also requires that we include in this proxy statement
for our 2011 Annual Meeting a separate advisory (non-binding) stockholder vote to advise on whether
the Say-on-Pay vote should occur every one, two or three years. You have the option to vote for
any one of the three options, or to abstain on the matter. For the reasons described below, our
Board of Directors recommends that our stockholders select a frequency of three years, or a
triennial vote. We are required to solicit stockholder approval on the frequency of future
Say-on-Pay proposals at least once every six years, although we may seek stockholder input more
frequently.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Our Board of Directors believes that our current executive compensation programs directly link
the compensation we pay to our executive officers to our overall financial performance and
therefore strongly align the interests of our executive officers with those of our stockholders.
Our Board of Directors has determined that an advisory vote on executive compensation every three
years is the best approach for our company based on a number of considerations, including the
following:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our compensation program does not change significantly from year to year and is
designed to induce performance over a multi-year period. Our Board of Directors
believes that a vote held every three years would be more consistent with, and provide
better input on, our long-term compensation policies;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A triennial vote cycle will give our Board of Directors and the Compensation
Committee sufficient time to thoughtfully consider the results of the advisory vote, to
engage with stockholders to understand and respond to the vote results and to
effectively implement any changes to our executive compensation policies and procedures
that our Board of Directors and Compensation Committee determine are appropriate based
on such consideration and discussions;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A triennial vote cycle will provide stockholders with a more complete view of the
amount and mix of the components of the compensation paid to our named executive
officers;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A triennial vote cycle will give stockholders sufficient time to evaluate the
effectiveness of our short- and long-term compensation strategies and the related
performance of the company, and whether the components of the compensation paid to our
named executive officers have achieved positive results for us; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Many large shareholders rely on proxy advisory firms for vote recommendations. We
believe that a triennial vote on executive compensation, rather than an annual or
biennial vote, will help proxy advisory firms provide more detailed and thorough
analyses and recommendations regarding our compensation programs. Less frequent
Say-on-Pay votes will improve the ability of institutional shareholders to exercise
their voting rights in a more deliberate, thoughtful and informed way that is in the
best interests of shareholders.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Our stockholders also have the opportunity to provide additional feedback on important matters
involving executive compensation even in the years when Say-on-Pay votes do not occur. For
example, NASDAQ rules require that we seek stockholder approval for new employee equity
compensation plans and material revisions of our existing plans. Further, as discussed under
&#147;Corporate Governance and Board Matters&#151;Stockholder Communications with the Board of Directors&#148;
on page 9 of this proxy statement, we provide stockholders with an opportunity to communicate
directly with our Board of Directors, including on issues of executive compensation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We understand that our stockholders may have different views as to what is the best approach
for us, and we look forward to hearing from our stockholders on this proposal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The Board of Directors will continue to engage with our stockholders on executive compensation
between stockholder votes.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">You may cast your vote on your preferred voting frequency by choosing the option of three
years, two years, or one year when you vote in response to the resolution set forth below, or you
may abstain from voting on this matter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">&#147;RESOLVED, that the stockholders of Grand Canyon Education, Inc. determine, on an advisory
basis, that the frequency with which the stockholders of the Company shall have an advisory vote on
executive compensation, as disclosed pursuant to the compensation disclosure rules of the SEC, is:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Choice 1&#151;every three years;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Choice 2&#151;every two years;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Choice 3&#151;every year; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Choice 4&#151;abstain from voting.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The option of three years, two years or one year that receives votes representing the majority
in voting power of shares present in person or represented by proxy and entitled to vote will be
the frequency for the advisory vote on the compensation of our named executive officers that has
been selected by stockholders. However, because this vote is advisory and is not binding on our
Board of Directors, the Board of Directors may decide that it is in the best interests of us and
our stockholders to hold an advisory vote on executive compensation more or less frequently than
the option approved by our stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Abstentions and broker non-votes will not be counted and, accordingly, will have no effect on
the outcome of the vote on this Proposal No.&nbsp;5.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">This vote may not be construed (1)&nbsp;as overruling a decision by us or our Board of Directors or
(2)&nbsp;to create or imply any change or addition to the fiduciary duties of us or our Board of
Directors. Stockholders are not voting to approve or disapprove the Board of Directors&#146;
recommendation. Stockholders may choose among the four choices included in the resolution set
forth above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><B>Our Board of Directors unanimously recommends that you vote </B><U><B>FOR</B></U><B> the option of once
every three years as the frequency with which stockholders are provided an advisory vote on
executive compensation, as disclosed pursuant to Item&nbsp;402 of Regulation&nbsp;S-K of the SEC rules.</B>
</DIV>

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<DIV align="left">
<A name="C14675134"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>PROPOSAL NO. 6</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><B>RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The firm of Ernst &#038; Young LLP (&#147;Ernst &#038; Young&#148;) has been our independent registered public
accounting firm since 2008. Our Audit Committee has selected Ernst &#038; Young to serve as our
independent registered public accounting firm for the fiscal year ending December&nbsp;31, 2011. While
it is not required to do so, our Audit Committee is submitting the selection of that firm for
ratification in order to ascertain the view of our stockholders. In the event the stockholders
fail to ratify the selection, the adverse vote will be considered a direction to the Audit
Committee to consider other auditors for next year. However, because of the difficulty in making
any substitution so long after the beginning of the current year, the appointment of Ernst &#038; Young
for fiscal 2011 will stand, unless the Audit Committee finds other good reason for making a change.
Even if the selection is ratified, the Audit Committee, in its discretion, may direct the
appointment of different independent registered public accounting firm at any time during the year
if the Audit Committee determines that such a change would be in the Company&#146;s and its
stockholders&#146; best interests. Proxies solicited by our Board of Directors will, unless otherwise
directed, be voted to ratify the appointment of Ernst &#038; Young as our independent registered public
accounting firm for the fiscal year ending December&nbsp;31, 2011.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">A representative of Ernst &#038; Young will be present at the meeting, will be afforded an
opportunity to make a statement if the representative so desires, and will be available to respond
to appropriate questions during the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><B>Our Board of Directors unanimously recommends that the stockholders vote </B><U><B>FOR</B></U><B> the
ratification of the appointment of Ernst &#038; Young LLP as our independent registered public
accounting firm for the fiscal year ending December&nbsp;31, 2011.</B>
</DIV>
<DIV align="left">
<A name="C14675135"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Fees</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">For the years ended December&nbsp;31, 2010 and 2009, Ernst &#038; Young billed us the amounts set forth
below for professional services rendered in connection with audit, audit-related, tax and other
professional services. All of the fees for audit, audit-related, tax and other services performed
by Ernst &#038; Young were pre-approved by the Audit Committee in accordance with the pre-approval
policies and procedures described below.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="72%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Services Rendered</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2010</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Audit Fees<SUP style="FONT-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">502,281</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">551,278</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Audit-Related Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tax Fees<SUP style="FONT-size: 85%; vertical-align: text-top">(2)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">116,858</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">All Other Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">533,431</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">668,136</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Audit Fees relate to services rendered for the audits of our annual financial statements, for
the review of quarterly financial statements, and for services that are normally provided by
the auditor in connection with statutory and regulatory filings or engagements. All 2010
Audit Fees related to audit and review services expensed in 2010. In 2009, $502,504 of the
Audit Fees related to audit and review services expensed in 2009, and $48,774 of the Audit
Fees related to services provided in connection with our secondary public offering completed
in September&nbsp;2009, including the filing of our Registration Statement on <font style="white-space: nowrap">Form S-1.</font></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>For 2010, Tax Fees consisted of $31,150 for assistance with IRS examinations. For 2009, Tax
Fees consisted of $73,221 for tax advisory services, $8,465 for tax return services for prior
years provided in 2009, and $35,172 for assistance with IRS examinations.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->27<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">
<DIV align="left">
<A name="C14675136"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Approval of Independent Registered Public Accounting Firm Services and Fees</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The Audit Committee has adopted a policy regarding pre-approval of audit and non-audit
services performed by our independent registered public accounting firm. The Audit Committee is
responsible for pre-approving all engagements of our independent registered public accounting firm.
The policy also highlights services the Audit Committee will and will not approve for audit and
non-audit services. The policy requires that written documentation be provided by the independent
registered accounting firm to the Audit Committee for all tax services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The Audit Committee may, annually or from time to time, set fee levels for certain non-audit
services, as defined in the policy, or for all non-audit services. Any engagements that exceed
those fee levels must receive specific pre-approval from the Audit Committee. The Audit Committee
may delegate to the Audit Committee chair authority to grant pre-approvals of permissible audit and
non-audit services, provided that any pre-approvals by the chair must be reported to the full Audit
Committee at the next scheduled meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">On a regular basis, management provides written updates to the Audit Committee regarding the
amount of audit and non-audit service fees incurred to date. All of the services described above
for fiscal years 2010 and 2009 were approved by our Audit Committee.
</DIV>
<DIV align="left">
<A name="C14675137"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>AUDIT COMMITTEE REPORT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Our Audit Committee is composed of three members, each of whom the Board has determined to be
an independent director as defined by the listing standards of the Nasdaq Stock Market. The duties
of the Audit Committee are summarized in this proxy statement under &#147;Committees of Our Board of
Directors&#148; on page 6 and are more fully described in the Audit Committee charter adopted by the
Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">One of the Audit Committees primary responsibilities is to assist the Board in overseeing the
Company&#146;s management and independent registered public accounting firm in regard to our financial
reporting and internal controls over financial reporting. In performing our oversight function, we
relied upon advice and information received in our discussions with management and the independent
registered public accounting firm.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We have (a)&nbsp;reviewed and discussed our Company&#146;s audited financial statements for the fiscal
year ended December&nbsp;31, 2010, with management; (b)&nbsp;discussed with our Company&#146;s independent
registered public accounting firm the matters required to be discussed by Codification of
Statements on Auditing Standards, AU &#167; 380 regarding communication with Audit Committees; (c)
received the written disclosures and the letter from the independent registered public accounting
firm required by applicable requirements of the Public Company Accounting Oversight Board regarding
the independent registered public accounting firm&#146;s communications with the Audit Committee
concerning independence; and (d)&nbsp;discussed with the independent registered public accounting firm
its independence.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Based on the review and discussions with management and our independent registered public
accounting firm referred to above, we recommended to our Board of Directors that the audited
financial statements be included in our Company&#146;s Annual Report on Form 10-K for the fiscal year
ended December&nbsp;31, 2010, for filing with the Securities and Exchange Commission.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Audit Committee:</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="29%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>Jack A. Henry (Chair)</I></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>David J. Johnson</I></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>Gerald J. Colangelo</I></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->28<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">



<DIV align="left">
<A name="C14675138"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>EXECUTIVE OFFICERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The following sets forth information regarding our non-director executive officers as of the
date of this proxy statement. For information regarding Brent D. Richardson, our Executive
Chairman, Brian E. Mueller, our Chief Executive Officer and a director, and Christopher C.
Richardson, our General Counsel and a director, see &#147;Proposal No.&nbsp;1 <B>&#151; </B>Election of Directors <B>&#151;</B>
Directors and Director Nominees.&#148;
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="36%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="51%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Age</B></TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Position</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dr. W. Stan Meyer
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="center" valign="top">50</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Daniel E. Bachus
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="center" valign="top">40</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Financial Officer</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Joseph N. Mildenhall
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="center" valign="top">57</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Information Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dr. Kathy Player
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="center" valign="top">47</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Grand Canyon University President</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Dr.&nbsp;W. Stan Meyer </I>has been serving as our Executive Vice President since July&nbsp;1, 2008. From
August&nbsp;2002 to June&nbsp;2008, Dr.&nbsp;Meyer was employed by Apollo Group, Inc., a for-profit, postsecondary
education company and the parent company of the University of Phoenix, serving between June&nbsp;2006 to
June&nbsp;2008 as its executive vice president of marketing and enrollment. Dr.&nbsp;Meyer previously served
as a regional vice president of the University of Phoenix Online, a unit of the University of
Phoenix, and division director of Axia College and of the School of Advanced Studies, also units of
the University of Phoenix. From 1983 to 2002, Dr.&nbsp;Meyer held several positions with the Concordia
University system, including director of operations for Concordia University&#146;s education network.
Dr.&nbsp;Meyer received a Bachelor of Arts in Communications degree from Concordia University and a
Master of Business Administration degree and a Doctor of Education in Institutional Management
degree from Pepperdine University.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Daniel E. Bachus </I>has been serving as our Chief Financial Officer since July&nbsp;1, 2008. From
January&nbsp;2007 until June&nbsp;2008, Mr.&nbsp;Bachus served as chief financial officer for Loreto Bay Company,
a real estate developer. From 2000 to 2006, Mr.&nbsp;Bachus served as the chief accounting officer and
controller of Apollo Group, Inc., a for-profit, postsecondary education company and the parent
company of the University of Phoenix. From 1992 to 2000, Mr.&nbsp;Bachus was employed by Deloitte &#038;
Touche LLP, most recently as an audit senior manager. Mr.&nbsp;Bachus received a Bachelor of Science
degree in Accountancy from the University of Arizona and a Master in Business Administration degree
from the University of Phoenix. Mr.&nbsp;Bachus is also a certified public accountant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Joseph N. Mildenhall </I>has been serving as our Chief Information Officer since September&nbsp;2009.
From 1998 to September&nbsp;2009, Mr.&nbsp;Mildenhall was employed by Apollo Group, Inc., a for-profit,
postsecondary education company and the parent company of the University of Phoenix, serving
between June&nbsp;2006 and September&nbsp;2009 as its chief information officer. From 1998 to 2006, Mr.
Mildenhall directed the design, development and deployment of the University of Phoenix online
education environment and the student and faculty Internet portal supporting the rapid growth of
the online campus beginning in 1998. From 1979 to 1988, Mr.&nbsp;Mildenhall held increasingly
responsible roles in software development at J&#038;K Computer Systems, eventually becoming vice
president and co-owner. When J&#038;K Computer Systems was acquired by National Computer Systems, Mr.
Mildenhall continued in senior software development and technology leadership roles
through 1998. Mr.&nbsp;Mildenhall holds a Bachelor of Science degree in Accounting from Brigham Young
University and a Master of Business Administration from the University of Phoenix.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Dr.&nbsp;Kathy Player </I>has been serving as Grand Canyon University President since July&nbsp;31, 2008.
From 2007 to July&nbsp;2008, she served as our Provost and Chief Academic Officer. From 1998 to 2007,
Dr.&nbsp;Player served in several other leadership roles at Grand Canyon University, including most
recently as Dean of the Ken Blanchard College of Business. Dr.&nbsp;Player received a Bachelor of
Science degree in Nursing from St. Joseph&#146;s College, a Master of Business Administration degree and
a Master of Science degree in Nursing Leadership from Grand Canyon University, a Master of Science
degree in Counseling from Nova Southeastern University, and a Doctorate of Education degree in
Counseling Psychology from Argosy University (formally the University of Sarasota).
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->29<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">
<DIV align="left">
<A name="C14675139"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>EXECUTIVE COMPENSATION</B>
</DIV>

<DIV align="left">
<A name="C14675140"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Compensation Discussion and Analysis</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>The following discussion and analysis should be read in conjunction with &#147;Compensation of
Named Executive Officers&#148; and the related tables that follow.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Executive Summary</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We are a regionally accredited provider of postsecondary education services focused on
offering graduate and undergraduate degree programs in our core disciplines of education, business,
healthcare, and liberal arts. We offer programs online as well as ground programs at our
approximately 100-acre traditional campus in Phoenix, Arizona and onsite at the facilities of
employers. At December&nbsp;31, 2010, we had approximately 41,500 students. At December&nbsp;31, 2010, 91.0%
of our students were enrolled in our online programs and, of those students 45.5% were pursuing
master&#146;s or doctoral degrees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Fiscal 2010 was a transitional year for the Company. We made a strategic decision to scale
down enrollment growth and focus on enhancing the academic reputation of our private,
Christian-focused, market-supported institution. In addition, we made numerous operational and
academic changes, including adjustments to our student refund policy, the strengthening of our
academic progress policy, the raising of our admissions requirements and the transition from a
&#147;term-based&#148; financial aid system (where all students, including online students, begin programs
and are eligible to receive financial aid at periodic start dates pursuant to a calendar-based term
system) to a &#147;borrower-based, non-term&#148; or &#147;BBAY&#148; financial aid system (where each student may
begin a program and be eligible to receive financial aid at any time throughout the year). While
these changes had a significant negative impact on our short-term financial results, we believe
they are in the long-term best interest of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">In addition, throughout 2010, our industry faced a changing regulatory environment with new
proposed and final rules being issued by the Department of Education and legislative hearings and
initiatives in both the U.S. Senate and House of Representatives. For a complete description of
these matters, please see &#147;Business &#151; Regulation&#148; and &#147;Management&#146;s Discussion and Analysis of
Financial Condition and Results of Operations&#148; in our Annual Report on Form 10-K.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Our senior management guided our company through these changes while still producing very
positive financial results:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Net revenue increased 47.3% to $385.8&nbsp;million for fiscal 2010, compared to
$261.9&nbsp;million for fiscal 2009;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Operating income increased 57.9% to $73.5&nbsp;million for fiscal 2010, compared to
$46.6&nbsp;million for fiscal 2009. The operating margin for fiscal 2010 was 19.1%,
compared to 17.8% for fiscal 2009;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Adjusted EBITDA increased 55.4% to $101.2&nbsp;million for fiscal 2010, compared to
$65.1&nbsp;million for fiscal 2009;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Net income increased 62.5% to $44.4&nbsp;million for fiscal 2010, compared to $27.3
million for fiscal 2009; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Diluted net income per share was $0.96 for fiscal 2010, compared to $0.60 for
fiscal 2009</TD>
</TR>

</TABLE>
</DIV><P align="center" style="font-size: 10pt">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">


<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We also had positive non-financial developments in 2010, including:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The focus on the quality of our online student body resulted in an increase in
the number of graduate students as a percentage of the total online student body to
45.5% in 2010 from 44.5% in 2009 and an increase in the number of our nursing and
education students, who as a group have the highest graduation rates and lowest
default rates, as a percentage of the total online student body to 19.3% and 49.6%
in 2010 from 13.4% and 49.1% in 2009, respectively;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The focus on the quality of our campus-based students and our ground campus
resulted in an increase in the number of campus-based students from 3,113 in 2009
to 3,748 in 2010 and an increase in the average incoming G.P.A. of these students.
While we currently expect to have between 4,200 and 4,500 campus-based students in
fall 2011, we expect the quality of these students to continue to improve;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We continued to focus on academic excellence initiatives, including a new
learning system that we will begin to implement in the first half of 2011 and which
we expect will increase student learning and faculty effectiveness and result in
higher retention rates, as well as the build out of our instructional design team,
who work to improve the curriculum, instruction and course sequencing in many of
our programs.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Finally, during fiscal year 2010, we continued practices that are considered standard for good
corporate governance and executive compensation, including:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Strong alignment between company-wide and personal performance and payouts under
our annual cash incentive plan;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The absence of any multi-year guaranteed bonuses;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Severance arrangements with our named executive officers that are limited to one
year of base salary and benefits and limited acceleration of vesting; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Double-trigger change-in-control arrangements with our named executive officers.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Given these factors and practices, we believe our executive compensation in fiscal year 2010
appropriately reflected the economic and regulatory environments, the performance of the Company
and the relationship with market compensation necessary to retain and motivate our executives.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We anticipate 2011 may be equally as challenging. It appears that our industry is beginning
to face an increased amount of competition for working adult students as more universities have
begun offering working adults options to return to school, and the easing of the economic downturn
of the last three years, which had created a counter-cyclical environment. The legislative
hearings and initiatives in the U.S. Senate, House of Representatives and at the Department of
Education appear as if they will also continue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Overview of 2010 Executive Compensation</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The purpose of this compensation discussion and analysis is to provide information about each
material element of compensation that we pay or award to, or that is earned by, our named executive
officers, who consist of our principal executive officer, our principal financial officer, and our
five other most highly compensated executive officers whose total compensation for the fiscal year
ended December&nbsp;31, 2010, was in excess of $100,000 and who were serving as executive officers at
the end of that fiscal year, all as set forth in the Summary Compensation Table set forth below.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">This compensation discussion and analysis addresses and explains the compensation practices we
followed in 2010, the numerical and related information contained in the summary compensation and
related tables presented below, and actions we have taken regarding executive compensation since
the end of our 2010 fiscal year. Specifically, this compensation discussion and analysis
addresses:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the objectives of our compensation program (found in the section entitled
&#147;Objectives of Compensation Programs&#148;);</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>what our compensation program is designed to reward (also described in the section
entitled &#147;Objectives of Compensation Programs&#148;);</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>each element of compensation (set forth in the section entitled &#147;Compensation
Programs Design and Elements of Compensation&#148;);</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>why each element was chosen (described with each element of compensation, including
base pay, short-term incentives and long-term incentives);</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>how amounts and formulas for pay are determined (also described with each element of
compensation, including base pay, short-term incentives and long-term incentives); and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>how each compensation element and our decisions regarding that element fit into the
Company&#146;s overall compensation objectives and affect decisions regarding other elements
(described with each element of compensation).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Compensation Determinations</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">All of our named executive officers who appear in the Summary Compensation Table are parties
to employment agreements, and the level of base salary to be paid to those officers over the term
of their respective employment agreements was determined as part of the negotiation process
relating to such agreements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Our Compensation Committee&#146;s charter empowers it to set all compensation, including, but not
limited to, salary, bonus, incentive compensation, equity awards, benefits and perquisites, for our
executive officers. Our Compensation Committee makes such determinations with respect to our
Executive Chairman and Chief Executive Officer and, for all other executives, makes such
determinations in consultation with our Executive Chairman and Chief Executive Officer. For
additional information regarding the Compensation Committee, please see &#147;Corporate Governance and
Board Matters &#151; Committees of Our Board of Directors &#151; Compensation Committee.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Objectives of Compensation Programs</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We pay our executive officers based on business performance and individual performance, and,
in setting compensation levels, we take into consideration our past practices, our current and
anticipated future needs, and the relative skills and experience of each individual executive.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Compensation philosophy. </I>Under our compensation philosophy, a named executive officer&#146;s total
compensation will vary based on our overall performance and the particular named executive
officer&#146;s personal performance and contribution to our overall results. This philosophy generally
applies to all of our employees, although the degree of variability and compensation at risk
increases as an employee&#146;s function and level of responsibility increases. Our overall goals in
implementing this philosophy are to attract, motivate, and retain highly qualified individuals
responsible for guiding us and creating value for our investors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Compensation objectives. </I>We believe that the compensation program we follow helps us achieve
the following objectives:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Compensation should be related to performance. </I>We believe that the
performance-based portion of an individual&#146;s total compensation should increase as the
individual&#146;s business responsibilities increase. Thus, a material portion of executive
compensation is linked to our and the individual&#146;s performance, which also serves to
align the named executive officers&#146; interests with those of our investors.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Compensation should be competitive and cost effective. </I>We believe that our
compensation programs should foster an innovative, high integrity, and
performance-oriented culture that serves to attract, motivate, and retain executives
and other key employees with the appropriate skill sets to lead us through expected
future growth in a dynamic, competitive, and highly regulated environment. Accordingly,
we seek to provide compensation, in amounts and based on performance targets, necessary
to achieve these goals and which is of fair value relative to other positions at the
Company.</TD>
</TR>

</TABLE>
</DIV><P align="center" style="font-size: 10pt">&nbsp;

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</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Company compensation policies. </I>During 2010, our named executive officers&#146; total in-service
compensation consisted of base salaries, cash bonuses, limited perquisites, and other benefits
generally available to all employees. With regard to these components, we adhere to the following
compensation policies:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Founders with significant equity stakes require limited cash or equity incentives.</I>
As founders of our Company, Brent D. Richardson and Christopher C. Richardson have
significant equity ownership in the Company. We believe that the Richardsons&#146; ownership
stake provides a level of motivation that would not be appreciably enhanced through
material cash bonus opportunities or the grant of further equity incentives.
Accordingly, in 2010, the Richardsons were compensated solely through base salary, a
limited bonus and limited perquisites.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Cash should be the principal component of compensation. </I>The Company&#146;s compensation
policy focuses most heavily on providing the opportunity for its named executive
officers to earn total cash compensation at levels that enable the Company to achieve
the motivation and retention goals described above, and to provide equity incentives as
a reward for superior performance rather than as a substitute for cash compensation.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Base salaries should generally be the largest component of cash compensation</I>. Our
compensation programs generally reflect our view that base salaries reflect
compensation for the named executive officers to perform the essential elements of
their respective jobs, and that cash bonuses are a reward for superior company and
individual performance. In this regard, base salary should generally be the largest
component of cash compensation.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Cash incentives should be linked to performance. </I>Under our Cash Incentive Plan,
bonuses paid to our named executive officers are based on overall company and
individual performance.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We believe our policies have helped us achieve our compensation objectives of attracting,
motivating, retaining, and rewarding our key officers.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Compensation Programs Design and Elements of Compensation</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We choose to pay each element of compensation to further the objectives of our compensation
program, which, as noted, include the need to attract, motivate, retain, and reward key leaders
critical to our success by providing competitive total compensation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Elements of In-Service Compensation. </I>For our 2010 fiscal year, our executive compensation mix
included base salary, cash bonuses, share-based compensation, limited perquisites, and other
benefits generally available to all employees. We generally determine the nature and amount of
each element of compensation as follows:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Base salary. </I>We typically agree upon a base salary with a named executive officer
at the time of initial employment. The amount of base salary agreed upon, which is not
at risk, reflects our views as to the individual executive&#146;s past experience, future
potential, knowledge, scope of anticipated responsibilities, skills, expertise, and
potential to add value through performance, as well as competitive industry salary
practices. Although minimum base salaries for each of our current named executive
officers are set by their respective employment agreements, as described below, we
review executive officer salaries annually and may increase them based on an evaluation
of the Company&#146;s performance for the year and the performance of the functional areas
under an executive officer&#146;s scope of responsibility. We also consider qualitative
criteria, such as education and experience requirements, complexity, and scope or
impact of the position compared to other executive positions internally.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Bonuses. </I>We provide cash bonuses, which typically are at-risk, to recognize and
reward our named executive officers based on our success and their individual
performance in a given year. For 2010, we awarded performance-related bonuses based on
the Cash Incentive Plan. The operation of this plan as it relates to our named
executive officers is described in more detail below.</TD>
</TR>

</TABLE>
</DIV><P align="center" style="font-size: 10pt">&nbsp;

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</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Share-based compensation</I>. Our Equity Incentive Plan had authorized 6,478,015 shares
of common stock for grants as of December&nbsp;31, 2010. Under the terms of this plan, the
number of shares authorized for grants thereunder automatically increased on January&nbsp;1,
2011 by 2.5% of the number of shares of our common stock issued and outstanding on
December&nbsp;31, 2010, to 7,621,065 shares. In 2010, our named executive officers received
grants under this plan as part of an overall, annual grant made to company employees.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Perquisites. </I>We seek to compensate our named executive officers at levels that
eliminate the need for material perquisites and enable each individual officer to
provide for his or her own needs. Accordingly, in 2010, we provided limited perquisites
to our named executive officers. See &#147;Compensation of Executive Officers &#151; Summary
Compensation Table&#148; for additional detail.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Other. </I>We offer other employee benefits to named executive officers for the purpose
of meeting current and future health and security needs for the executives and their
families. These benefits, which we generally offer to all eligible employees, include
medical, dental, and life insurance benefits; short-term disability pay; long-term
disability insurance; flexible spending accounts for medical expense reimbursements; a
401(k) retirement savings plan; and free tuition for a spouse or up to two children
with no more than two participants receiving the tuition benefit at any one time. The
401(k) retirement savings plan is a defined contribution plan under Section 401(a) of
the Code. Employees may make pre-tax contributions into the plan, expressed as a
percentage of compensation, up to prescribed IRS annual limits, with such contributions
subject to a matching Company contribution up to prescribed limits.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Elements of Post-Termination Compensation and Benefits. </I>The employment agreements of our
current named executive officers provide for post-termination salary and benefit continuation in
the event of a termination by us without Cause (as defined below) or by the executive for Good
Reason (as defined below) or in the event of any such termination within 12&nbsp;months following a
Change in Control (as defined below), and for so long as the named executive officer abides by
customary confidentiality, non-competition, and non-solicitation covenants and executes a full
release of all claims, known or unknown, that the executive may have against the Company. We
believe that the amounts of these payments and benefits and the periods of time during which they
would be provided are fair and reasonable, and we have not historically taken into account any
amounts that may be received by a named executive officer following termination when establishing
current compensation levels. The elements of post-termination compensation that were in effect
during 2010 pursuant to the written employment agreements consisted of the following:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Salary continuation. </I>Each named executive officer would continue to receive salary
payments for a period of 12&nbsp;months following any qualifying termination of employment.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Benefits continuation. </I>Each named executive officer would continue to receive
Company -paid premiums for continued group health benefits under COBRA during the
12-month salary continuation period.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Partially accelerated vesting of stock options</I>. Mr.&nbsp;Mueller, Dr.&nbsp;Meyer, and Mr.
Bachus would receive partial acceleration of the vesting of certain of their stock
options to the next vesting date immediately following the date of termination, in the
event of a termination by us without Cause or by the executive for Good Reason.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Fully accelerated vesting of stock options</I>. In the event of a termination by us
without Cause or by the executive for Good Reason within 12&nbsp;months following a Change
in Control, each named executive officer would receive full acceleration of the vesting
of their stock options.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">See &#147;Potential Payments Upon Termination or Change in Control&#148; for additional detail.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Impact of Performance on Compensation</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Under the Cash Incentive Plan, a participant&#146;s bonus is based on the Company&#146;s achievement of
revenue and Adjusted EBITDA targets, as well as the participant&#146;s achievement of individual
performance goals. For purposes of the plan, Adjusted EBITDA is defined as net income plus
interest expense net of interest income, plus income tax expense, and plus depreciation and
amortization (EBITDA), as adjusted for (i)&nbsp;royalty payments incurred pursuant to an agreement with
our former owner that was terminated as of April&nbsp;15, 2008; (ii)&nbsp;share-based compensation and any
other expense related to equity compensation awards for the applicable fiscal year; (iii)&nbsp;any
extraordinary, nonrecurring items, as determined by the Compensation Committee; and (iv)&nbsp;all
amounts (including settlement payments, legal fees, costs and other litigation and/or settlement
expenses) expensed during the applicable fiscal year in connection with the settlement of
litigation matters. We focus on Adjusted EBITDA in connection with our Cash Incentive Plan because
we believe that it provides useful information regarding our operating performance and executive
performance as it does not give effect to items that management does not consider to be reflective
of our core operating performance. See &#147;Management&#146;s Discussion and Analysis of Financial Condition
and Results of Operations &#151; Non-GAAP Discussion&#148; in our Annual Report on Form 10-K for further
information. As such, we believe it is fair and reasonable to our executives to assess their
individual performance on the same basis as our performance is assessed by our Board of Directors
and investors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Company performance</I>. Depending on a participant&#146;s management level, the financial metrics
account for between 60% and 80% of the target bonus and the specific individual performance goals
account for between 20% and 40% of the target bonus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Individual performance</I>. In reviewing individual performance, we look at an executive&#146;s
achievement of non-financial objectives that, with respect to a given participant, may include
achieving objectives related to, among other things, program development and expansion, regulatory
compliance, and enrollment growth.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Calculation of bonuses</I>. For each named executive officer, the Compensation Committee
establishes a target bonus, which is stated as a percentage of the officer&#146;s base salary. For
2010, the target bonus percentage for the named executive officers was as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="86%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Target Bonus as a</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percentage of Base Salary</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brent D. Richardson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brian E. Mueller</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dr.&nbsp;W. Stan Meyer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">75.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Daniel E. Bachus</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">75.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joseph N. Mildenhall</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Christopher C. Richardson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dr.&nbsp;Kathy Player</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">For each named executive officer, the financial metrics account for 80% of the target
bonus, with the revenue target and the Adjusted EBITDA target accounting for 50.0% each of such
80%, respectively, and the specific individual performance goals accounting for 20% of the target
bonus. The actual percentage is determined on the basis of the Company&#146;s achievement of the
revenue and Adjusted EBITDA targets that the Compensation Committee establishes for the applicable
fiscal year. With respect to these targets, the threshold goal is set using the Company&#146;s budget
for the applicable fiscal year. For participants to earn any payout under the plan, the Company
must achieve at least of 95% of both budgeted revenue and Adjusted EBITDA. Assuming both of these
thresholds are achieved, payouts are made based on the Company&#146;s achievement of a minimum of 95% of
budgeted revenue and Adjusted EBITDA (resulting in a bonus of 50% of the target bonus allocable to
the financial metrics) and a maximum of 105% of budgeted revenue and 107% of Adjusted EBITDA
(resulting in a bonus of 150% of the target bonus allocable to the financial metrics). Performance
between minimum and maximum levels results in prorated payments to plan participants using
straight-line interpolation.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->35<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Shown below is a summary of the matrix described above:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="58%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Goal</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Threshold</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Target</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Maximum</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenue goal<br> (50.0% of financial metric)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" valign="top">95% of budget</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" valign="top">100% of budget</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" valign="top" align="center">105% of budget</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjusted EBITDA<br> (50.0% of financial metric)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">95% of budget</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">100% of budget</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" valign="top" align="center">107% of budget</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bonus payout as a % of target bonus
allocable to financial metrics</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">50%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">100%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="center" valign="top">150%</TD>
    <TD nowrap valign="top"></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Under the Cash Incentive Plan, the actual bonus that a named executive officer could earn
under the plan for a given fiscal year ranges from 0% to a maximum of 140% of his or her annual
target bonus (with such maximum achieved by obtaining the maximum payout for achieving the
financial metrics (80% * 150%, or 120%) and achieving the individual goals (an additional 20%). To
illustrate how the plan functions, assume that a participant&#146;s base salary for 2010 is $300,000 and
that the target bonus is 50% of base salary. Of this target bonus of $150,000, $60,000 (or 50.0%
of the 80% subject to achievement of the financial metrics) would be based upon the Company&#146;s
achievement of the revenue target, $60,000 (or 50.0% of the 80% subject to the achievement of the
financial metrics) would be based on the Company&#146;s achievement of the Adjusted EBITDA target, and
$30,000 (20%) would be based on the participant&#146;s achievement of his or her individual performance
goals. If the revenue target is achieved at the threshold level (so only 50% of the revenue
component is payable at that level), the Adjusted EBITDA target is achieved at the target level (so
that 100% of the Adjusted EBITDA component is payable at that level), and the specific individual
performance goals are met, the participant would be entitled to a potential bonus of $120,000
(calculated as $30,000 plus $60,000 plus $30,000).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The plan for eligible senior management other than the named executive officers is similar to
the above, except that, for participants below the named executive officer level, the bonus is
calculated based on two six-month cycles, such that the determination of the bonus payable for each
half of the applicable year is determined on the basis of the achievement of the revenue, Adjusted
EBITDA and individual performance targets established for each such period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>2010 financial goals. </I>The following table shows the Company financial goals established for
the named executive officers for 2010. These financial goals were selected based upon the Company&#146;s
budget for 2010, which the Board of Directors believes is the appropriate level at which to set
goals in order to maximize the incentive for superior performance.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="58%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Maximum</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(105% of Budget for</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Threshold</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Target</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Revenue/107% of Budget</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(95% of Budget)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(100% of Budget)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>for Adjusted EBITDA</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B><I>Revenue</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">379,549,607</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">399,525,902</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">419,502,197</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B><I>Adjusted EBITDA</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">94,825,138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">99,815,935</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106,803,050</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>2010 individual goals</I>. The individual performance goals applicable to the named
executive officers in 2010 focused on each executive&#146;s achievement of one or more objectives that
related to their specific duties and responsibilities on behalf of the Company. For Mr.&nbsp;Mueller,
Dr.&nbsp;Meyer, Mr.&nbsp;Bachus, Mr.&nbsp;Chris Richardson, Mr.&nbsp;Mildenhall, and Dr.&nbsp;Player, one individual
performance goal was to manage their individual departments within budget. Mr.&nbsp;Brent Richardson&#146;s
individual performance goals included providing insight and direction to the senior management team
regarding key corporate objectives. The individual performance goals for Mr.&nbsp;Mueller and Dr.&nbsp;Meyer
included developing solutions for operational challenges such as improving student time to
completion, transitioning to a borrower-based financial aid environment, improving staff to student
ratios, and developing campus infrastructure. The individual performance goals for Mr.&nbsp;Mueller
and Mr.&nbsp;Bachus included participation in a specified number of investor conferences and/or investor
meetings. Dr.&nbsp;Meyer&#146;s individual performance goals included developing a media and marketing
strategy that improved the marketing awareness of Grand Canyon University. Mr.&nbsp;Bachus individual
performance goals included managing the financial and reporting functions to ensure that no
material weaknesses occurred within the Company&#146;s financial reporting structure and overseeing the
transition to the federal direct lending program. The individual performance goals for Mr.&nbsp;Chris
Richardson included working with outside legal counsel to resolve outstanding legal matters and
demonstrating leadership in other management areas such as human resources and state licensure. Dr.
Player&#146;s individual performance goals included producing a comprehensive Presidential Report
regarding Grand Canyon University and its colleges and working on solutions to improve certain
academic related items.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->36<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"><I>Actual performance vs. compensation paid for 2010</I>. For 2010, each named executive officer
achieved performance payout percentages of between 85.0% and 100.0% of the 20.0% portion of their
respective bonus awards that are allocable to individual performance goals. In addition, the
Company achieved revenue equal to 96.6% of target and Adjusted EBITDA equal to 101.4% of target,
resulting in performance payout percentages of 66.0% for the revenue component of the target bonus
and 110.0% for the adjusted EBITDA component of the target bonus. Accordingly, the named
executive officers achieved incentive bonuses equal to the following percentages of their base
salaries:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Adjusted</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Revenue</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>EBITDA</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Individual Goals</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2010 Bonus as</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2010 Bonus as</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Performance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Performance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Performance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percentage of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percentage of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Payout (%)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Payout (%)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Payout (%)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Target Bonus (%)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Base Salary($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2010 Bonus ($)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brent D. Richardson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">66.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">110.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">90.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.6</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22,600</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brian E. Mueller</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">66.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">110.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">90.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">90.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">542,400</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dr.&nbsp;W. Stan Meyer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">66.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">110.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">93.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">89.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">66.9</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">234,019</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Daniel E. Bachus</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">66.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">110.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">90.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">67.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">237,300</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Christopher C.
Richardson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">66.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">110.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">90.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">45.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">134,470</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joseph N. Mildenhall</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">66.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">110.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">90.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">45.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">135,600</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dr.&nbsp;Kathy Player</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">66.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">110.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">85.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">87.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">43.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">120,175</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Equity Incentives</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">In 2008, our Board of Directors and stockholders adopted the Equity Incentive Plan and
authorized and reserved a total of 4,199,937 shares of our common stock for issuance thereunder.
The number of shares authorized and reserved under the Equity Incentive Plan will increases on each
subsequent January 1 through 2018 by an amount equal to the smaller of (a)&nbsp;2.5% of the number of
shares of common stock issued and outstanding on the immediately preceding December&nbsp;31, or (b)&nbsp;a
lesser amount determined by our Board of Directors. As of January&nbsp;1, 2011, there is authorized and
reserved a total of 6,478,015 shares under the Equity Incentive plan. Shares subject to awards that
expire or are cancelled or forfeited will again become available for issuance under the Equity
Incentive Plan. The shares available are not reduced by awards settled in cash or by shares
withheld to satisfy tax withholding obligations. Only the net number of shares issued upon the
exercise of stock appreciation rights or options exercised by means of a net exercise or by tender
of previously owned shares are deducted from the shares available under the Equity Incentive Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The following table provides information as of December&nbsp;31, 2010, with respect to shares of
our common stock that may be issued under our existing equity compensation plans:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Equity Compensation Plan Information</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="58%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number of securities to be</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted-average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number of securities</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>issued upon exercise of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>exercise price of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>remaining available for</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>outstanding options,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>outstanding options,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>future issuance under</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Plan Category</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>warrants and rights</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>warrants and rights</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>equity compensation plans</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity Compensation
Plans Approved by
Securityholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4,443,962</TD>
    <TD nowrap><SUP style="FONT-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2,034,053</TD>
    <TD nowrap><SUP style="FONT-size: 85%; vertical-align: text-top">(2)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity Compensation
Plans Not Approved
by Securityholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" nowrap align="right">None</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="right">None</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4,443,962</TD>
    <TD nowrap><SUP style="FONT-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2,034,053</TD>
    <TD nowrap><SUP style="FONT-size: 85%; vertical-align: text-top">(2)</SUP></TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes outstanding options to purchase shares of our common stock under our Equity
Incentive Plan.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes shares available for future issuance under our Equity Incentive Plan.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->37<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We may grant awards under the Equity Incentive Plan to our employees, officers, directors, or
consultants, or those of any future parent or subsidiary corporation or other affiliated entity.
While we may grant incentive stock options only to employees, we may grant nonstatutory stock
options, stock appreciation rights, restricted stock purchase rights or bonuses, restricted stock
units, performance shares, performance units, and cash-based awards or other stock-based awards to
any eligible participant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Only members of the Board of Directors who are not employees at the time of grant are eligible
to participate in the non-employee director awards component of the Equity Incentive Plan. The
Board of Directors, based on the recommendation of the Nominating and Corporate Governance
Committee, sets the amount and type of non-employee director awards to be awarded on a periodic,
non-discriminatory basis. Non-employee director awards may be granted in the form of nonstatutory
stock options, stock appreciation rights, restricted stock awards and restricted stock unit awards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">In the event of a change in control, as described in the Equity Incentive Plan, the acquiring
or successor entity may assume or continue all or any awards outstanding under the Equity Incentive
Plan or substitute substantially equivalent awards. Any awards that are not assumed or continued in
connection with a change in control or are not exercised or settled prior to the change in control
will terminate effective as of the time of the change in control. In connection with a change in
control, the Compensation Committee may provide for the acceleration of vesting of any or all
outstanding awards upon such terms and to such extent as it determines, except that the vesting of
all non-employee director awards will automatically be accelerated in full, and the vesting of
awards held by each of our named executive officers who are parties to employment agreements will
automatically be accelerated in full upon termination other than for cause upon or within 12&nbsp;months
following such change in control. The Equity Incentive Plan also authorizes the Compensation
Committee, in its discretion and without the consent of any participant, to cancel each or any
outstanding award denominated in shares upon a change in control in exchange for a payment to the
participant with respect to each share subject to the cancelled award of an amount equal to the
excess of the consideration to be paid per share of common stock in the change in control
transaction over the exercise price per share, if any, under the award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Our Board of Directors has approved a policy relating to the granting of stock options and
other equity-based awards. Under this policy:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all stock option grants, restricted stock awards, and other equity based awards,
which we collectively refer to as stock-based grants, must be approved by the
Compensation Committee;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the date for determining the strike price and similar measurements for stock-based
awards will be the date of the meeting (or a date shortly after the meeting) or, in the
case of an employee, director, or consultant not yet hired, appointed, or retained,
respectively, the subsequent date of hire, appointment, or retention, as the case may
be;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we will not intentionally grant stock-based awards before the anticipated
announcement of materially favorable news or intentionally delay the grant of
stock-based awards until after the announcement of materially unfavorable news; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Compensation Committee will approve stock-based grants only for persons
specifically identified at the meeting by management.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Role of the Compensation Consultant</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The Compensation Committee has the sole authority from the Board of Directors for
the appointment, compensation and oversight of our outside compensation consultant. The
Compensation Committee has retained Mercer, a wholly-owned subsidiary of Marsh &#038; McLennan
Companies, Inc. (&#147;MMC&#148;), as its consultant to assist the Compensation Committee with its
responsibilities related to our executive compensation programs. Mercer&#146;s fees for executive
compensation consulting to the Compensation Committee in fiscal year 2010 were $28,473. The
executive compensation services provided include assisting in defining the Company&#146;s executive
compensation strategy, providing market benchmark information, supporting and reviewing the design
of incentive compensation plans, advising on the competitiveness of executive officer compensation,
and providing regulatory and governance guidance.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->38<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">During the fiscal year, Mercer and its MMC affiliates were retained by Company management to
provide services unrelated to executive compensation, including insurance brokerage services and
services related to the Company&#146;s employee health plans. The aggregate fees paid for those other
services in fiscal 2010 were $149,000. The Compensation Committee did not review or approve the
other services provided by Mercer and its affiliates to the Company, as those services were
approved by management in the normal course of business. Based on policies and procedures
implemented by the Compensation Committee and by Mercer to ensure the objectivity of Mercer&#146;s
individual executive compensation consultant, the Compensation Committee believes that the
consulting advice it receives from Mercer is objective and not influenced by Mercer&#146;s or its
affiliates&#146; other relationships with the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Effect of Accounting and Tax Treatment on Compensation Decisions</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Internal Revenue Code Section&nbsp;162(m) Policy</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Section&nbsp;162(m) of the Code, as amended, imposes a $1&nbsp;million limit on the amount that a public
company may deduct for compensation paid to the company&#146;s chief executive officer or any of the
company&#146;s four other most highly compensated executive officers who are employed as of the end of
the year. This limitation does not apply to compensation that meets the requirements under Section
162(m) for &#147;qualifying performance-based&#148; compensation (i.e., compensation paid only if the
individual&#146;s performance meets pre-established objective goals based on performance criteria
approved by stockholders). With regard to our Equity Incentive Plan, we previously relied on an
exemption from Section 162(m) for a plan adopted prior to the time a company becomes a public
company. In connection with this proxy statement, we are soliciting the approval of our
stockholders with respect to the grant limitation within our 2008 Equity Incentive Plan. If
stockholder approval of the grant limitation within our 2008 Equity Incentive Plan is not obtained,
we will not make any further grants under the Equity Incentive Plan to our chief executive officer
and our other named executive officers who are &#147;covered employees&#148; as defined in Section&nbsp;162(m), or
their successors, until such time, if any, as stockholder approval of a subsequent similar proposal
is obtained. With regard to the cash compensation we pay, in the form of both base salary and
pursuant to our Cash Incentive Plan described above, we are also soliciting the approval of our
stockholders of the Cash Incentive Plan in accordance with Section&nbsp;162(m). If the Cash Incentive
Plan is approved by stockholders, it will be effective for fiscal 2011, beginning January&nbsp;1, 2011
and ending December&nbsp;31, 2011, and will remain in effect for each fiscal year thereafter until
terminated by our Board of Directors or Compensation Committee. No compensation will be paid under
the Cash Incentive Plan to the named executive officers covered by the Cash Incentive Plan unless
the Cash Incentive Plan is approved by stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Internal Revenue Code Section&nbsp;409A</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Section&nbsp;409A of the Code (&#147;Section&nbsp;409A&#148;) requires that &#147;nonqualified deferred compensation&#148;
be deferred and paid under plans or arrangements that satisfy the requirements of the statute with
respect to the timing of deferral elections, timing of payments and certain other matters. Failure
to satisfy these requirements can expose employees and other service providers to accelerated
income tax liabilities and penalty taxes and interest on their vested compensation under such
plans. Accordingly, as a general matter, it is our intention to design and administer our
compensation and benefits plans and arrangements for all of our employees and other service
providers, including our named executive officers, so that they are either exempt from, or satisfy
the requirements of, Section&nbsp;409A. With respect to our compensation and benefit plans that are
subject to Section&nbsp;409A, in accordance with Section&nbsp;409A and regulatory guidance issued by the
Internal Revenue Service, we are currently operating such plans in compliance with Section&nbsp;409A.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Accounting Standards</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Grants of stock options under the Equity Incentive Plan are recognized as compensation expense
for the fair value of equity-based compensation awards. The Compensation Committee considers the
accounting implications of significant compensation decisions, including in connection with
decisions that relate to the Equity Incentive Plan and equity award programs thereunder. As
accounting standards change, we may revise certain programs to appropriately align accounting
expenses of our equity awards with our overall executive compensation philosophy and objectives.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->39<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Conclusion</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We believe that the compensation amounts paid to our named executive officers for their
service in 2010 were reasonable and appropriate and in our best interests.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Significant Events After December&nbsp;31, 2010</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The Compensation Committee granted stock options to the Company&#146;s named executive officers,
other than Brent D. Richardson and Christopher C. Richardson, effective March&nbsp;11, 2011. Each
option vests 20% on each of the first five anniversaries of the date of grant, and has an exercise
price of $15.34, which is equal to the closing price of our common stock on the date of grant. The
number of shares granted to each such officer is as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="86%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number of Shares Subject to Option</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brian E. Mueller</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dr.&nbsp;W. Stan Meyer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Daniel E. Bachus</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joseph N. Mildenhall</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dr.&nbsp;Kathy Player</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Compensation Policies and Practices as Related to Risk Management</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">In connection with the preparation of this proxy statement, our Compensation Committee
reviewed and discussed our compensation policies and practices for senior management, including our
named executive officers. In this regard, the Compensation Committee took note of the fact that:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We pay base salaries we believe are competitive and that are generally intended to
constitute the largest component of cash compensation. We believe that this emphasis on
paying competitive base salaries that are not at risk for performance discourages
inappropriate risk taking;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our Cash Incentive Plan focuses on the achievement of company-wide revenue and
adjusted EBITDA targets and individual non-financial performance metrics (which can
include metrics based on compliance with regulatory or other risk management policies).
We believe that the design of the Cash Incentive Plan prevents participants from being
able to materially enhance their bonus prospects through excessive or inappropriate
risk-taking;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The cash payments that may be made to our named executive officers under the Cash
Incentive Plan are subject to stated maximum limits, which we believe mitigates any
risks that our named executive officers may take; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The stock option grants made to our named executive officers, and all other
employees, under the Equity Incentive Plan all vest in annual increments over a period
of five years, which we believe discourages excessive or inappropriate short-term risk
taking.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Based on that review, and with input from management, the Compensation Committee has determined
that that there are no known potential risks arising from our compensation polices or practices
that are reasonably likely to have a material adverse effect on us.
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->40<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">



<DIV align="left">
<A name="C14675141"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Compensation Committee Report</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The Compensation Committee has discussed and reviewed the Compensation Discussion and Analysis
with management. Based upon this review and discussion, the Compensation Committee recommended to
the Board of Directors that the Compensation Discussion and Analysis be included in this proxy
statement.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Compensation Committee:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>David J. Johnson (Chair)</I></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>Chad N. Heath</I></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>D. Mark Dorman</I></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="C14675142"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Compensation of Named Executive Officers</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Summary Compensation Table</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The following table sets forth the total compensation earned for services rendered by our
principal executive officer, our principal financial officer, and our five other most highly
compensated executive officers whose total compensation for the fiscal year ended December&nbsp;31, 2010
was in excess of $100,000 and who were serving as executive officers at the end of that fiscal
year. The listed individuals are referred to herein as the &#147;named executive officers.&#148;
</DIV>
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="36%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Non-Equity</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Incentive Plan</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>All Other</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Salary</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Bonus</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock Awards</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Option Awards</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Compensation</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Compensation</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name and Position</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)(3)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)(4)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)(5)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brent D. Richardson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">297,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,408</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">337,508</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><I>Executive Chairman</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">297,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,425</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,408</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">340,333</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">297,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,628</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">331,128</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brian E. Mueller</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">555,384</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,067,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">542,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,580</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,167,364</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><I>Chief Executive Officer and Director</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">500,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">508,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,028,705</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">(Principal Executive Officer) (6)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">246,154</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,311,948</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,533,489</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,740</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,349,331</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dr.&nbsp;W. Stan Meyer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">327,692</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">426,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">234,019</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,745</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">991,256</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><I>Executive Vice President </I>(6)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">300,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">152,550</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,391</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">457,941</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147,692</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,613,394</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,836,086</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Daniel E. Bachus</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">316,538</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">426,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">237,300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">420</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">981,058</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><I>Chief Financial Officer</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">275,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139,838</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">323</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">415,161</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">(Principal Financial Officer) (6)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132,212</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,352,058</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,553,020</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Christopher C. Richardson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">297,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134,470</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,527</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">434,497</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><I>General Counsel and Director</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">297,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76,275</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,244</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">379,019</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">297,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">323,250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mr.&nbsp;Joseph N. Mildenhall</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">300,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">266,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,963</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">705,313</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><I>Chief Information Officer</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78,075</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">580,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,356</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,887</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">720,968</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dr.&nbsp;Kathy Player</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">275,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">266,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120,175</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,610</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">664,535</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><I>Grand Canyon University President</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">275,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139,838</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,346</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">420,184</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">230,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">398,139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">710,889</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>





<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>For Mr.&nbsp;Mueller, Dr.&nbsp;Meyer, Mr.&nbsp;Bachus and Dr.&nbsp;Player, the amounts in this column for 2008
reflect non-performance-related bonuses that were negotiated in connection with the employment
agreements we entered into with them prior to our initial public offering, as well as, for Dr.
Player only, an additional discretionary bonus of $6,250. All other amounts in this column
reflect discretionary bonuses paid prior to the time we became a public company.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>The amounts shown in this column reflect the compensation costs attributable to an
unrestricted stock grant made to Mr.&nbsp;Mueller in 2008 in connection with out initial public
offering. The compensation costs are based on the grant date fair value for the shares of
common stock granted. Such grant date fair value has been calculated on the basis of the fair
market value of our common stock on the grant date. No shares of stock were granted in any
year prior to 2008.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->41<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">





<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>The amounts shown in this column reflect the compensation costs attributable to the stock
options granted to the named executive officers in 2010, 2009 and 2008. The compensation costs
are based on the grant date fair value of each stock option and do not take into account any
estimated forfeitures related to service-based vesting conditions, if any. Assumptions used in
the calculation of the grant date fair value of each option granted during the 2010, 2009 and
2008 fiscal year are set forth in Notes 2 and 15 to our financial statements for the fiscal
year ended December&nbsp;31, 2010 included in our 2010 Annual Report on Form&nbsp;10-K. No options were
granted in any year prior to 2008.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>The amounts in this column reflect non-equity incentive payments earned pursuant to our Cash
Incentive Plan.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>For Mr.&nbsp;Brent D. Richardson, the amounts in this column include the value of payments made by
us on a Company-owned vehicle used by Mr.&nbsp;Richardson. In 2009 for Mr.&nbsp;Mueller, the amount in
this column reflects the value of tuition-free enrollment for an additional child at Grand
Canyon University (beyond the single spouse or child tuition benefit available to all
full-time Company employees at that time). For Mr.&nbsp;Mueller, Dr.&nbsp;Meyer, Mr.&nbsp;Christopher D.
Richardson, Mr.&nbsp;Joseph N. Mildenhall and Dr.&nbsp;Player, the amounts in this column reflect
matching payments made by the Company under our 401(k) plan. In 2010 and 2009, the amounts in
this column include company paid life insurance premiums for all named executive officers.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Mueller, Dr.&nbsp;Meyer, and Mr.&nbsp;Bachus commenced employment with us on July&nbsp;1, 2008. Mr.
Mildenhall commenced employment with us on September&nbsp;16, 2009.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>2010 Grants of Plan-Based Awards</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The following table sets forth certain information with respect to incentive plan awards under
our Cash Incentive Plan and our Equity Incentive Plan for the fiscal year ended December&nbsp;31, 2010
to each of our named executive officers:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>All Other</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Option</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Awards:</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Exercise or</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Grant Date</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Base Price</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fair Value of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>Estimated Future Payouts Under Non-Equity</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Securities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Option</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock and</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Incentive Plan Awards(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Underlying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Awards</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Option</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Grant Date</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Threshold($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Target($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Maximum($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Options (#)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($/Sh)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Awards(2)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brent D. Richardson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">35,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brian E. Mueller</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="right">Feb. 25, 2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">300,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">600,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">840,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,067,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dr.&nbsp;W. Stan Meyer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="right">Feb. 25, 2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">131,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">262,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">367,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">426,800</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Daniel E. Bachus</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="right">Feb. 25, 2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">131,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">262,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">367,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">426,800</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Christopher C.
Richardson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">210,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joseph N. Mildenhall</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right">Feb. 25, 2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74,375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">148,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">208,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">266,750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dr.&nbsp;Kathy Player</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="right">Feb. 25, 2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">137,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">192,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">266,750</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>These amounts reflect the Threshold, Target and Maximum bonuses payable to our named executive
officers under our Cash Incentive Plan. All such awards have been paid, and the actual amounts paid
are set forth in the Summary Compensation Table above.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>The dollar value reported in this column with respect to option awards represents the grant
date fair value of each option award determined in accordance with the provisions of SFAS 123(R). A
discussion of the valuation assumptions used in the SFAS 123(R) calculation of grant date fair
value is set forth in Notes 2 and 15 to our financial statements for the fiscal year ended December
31, 2010, included in our 2010 Annual Report on Form 10-K.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->42<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">






<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>2010 Outstanding Equity Awards at Fiscal Year-End</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The following table provides certain summary information concerning outstanding equity awards
held by the named executive officers as of December&nbsp;31, 2010.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>Option Awards(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Stock Awards</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B></B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Securities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Securities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Market Value</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Underlying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Underlying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Shares of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Unexercised</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Unexercised</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Option</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock That</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock That</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Options (#)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Options (#)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Exercise Price</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Option Expiration</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Have Not</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Have Not</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Exercisable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Unexercisable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Vested</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Vested</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brian E. Mueller</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">February 25, 2020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">437,315</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">655,973</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">November 19, 2018</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dr.&nbsp;W. Stan Meyer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">February 25, 2020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">174,926</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">262,389</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">November 19, 2018</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Daniel E. Bachus</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">February 25, 2020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157,433</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">236,151</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">November 19, 2018</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joseph N. Mildenhall</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">February 25, 2020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">September 16, 2019</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dr.&nbsp;Kathy Player</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">February 25, 2020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,955</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="left">November 19, 2018</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>





<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>For Dr.&nbsp;Player, 29,463 shares covered by her exercisable options were fully vested upon
grant. The shares covered by the options granted to Mr.&nbsp;Mueller, Dr.&nbsp;Meyer, Mr.&nbsp;Bachus, Mr.
Mildenhall and the remainder of Dr.&nbsp;Player&#146;s options vest in five successive equal annual
installments upon the completion of each year of service with us over the five year period
measured from their grant date, subject to fully accelerated vesting in the event of a
termination of employment by us without cause or by the executive for good reason within 12
months following a change in control of the Company. Mr.&nbsp;Mueller, Dr.&nbsp;Meyer, Mr.&nbsp;Bachus and
Mr.&nbsp;Mildenhall also receive partially accelerated vesting through the next vesting date
immediately following the date of termination, upon the termination of employment by us
without cause or by the executive for good reason.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Option Exercises and Stock Vested</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Dr.&nbsp;Player was the only one of our named executive officers that exercised stock options
during the fiscal year ended December&nbsp;31, 2010.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="72%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Option Awards</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number of Shares Acquired</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Value Realized</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>on Exercise (#)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>on Exercise ($)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dr.&nbsp;Kathy Player</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">210,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Executive Employment Agreements</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We are parties to employment agreements with each of our named executive officers. The
agreements with Mr.&nbsp;Mueller, Dr.&nbsp;Meyer, and Mr.&nbsp;Bachus (entered into in July&nbsp;2008), and the
agreements with Messrs.&nbsp;Richardson and Richardson and Dr.&nbsp;Player (entered into in September&nbsp;2008)
each have a four-year term that automatically renew for one year periods after the initial
four-year term unless either party provides written notice that it does not wish to renew the
respective agreement. The agreement with Mr.&nbsp;Mildenhall (entered into in September&nbsp;2009) has a
three-year term and is also subject to automatic renewal. Except with respect to certain items of
compensation, as described below, the terms of each agreement are similar in all material respects.
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The agreements with each of Brent D. Richardson and Christopher C. Richardson
provide for a base salary of $297,500, subject to annual review by the Compensation
Committee, and entitle each to receive performance bonuses as determined by the
Compensation Committee based upon the Company&#146;s achievement of performance, budgetary,
and other objectives, as set in advance by the Compensation Committee. The agreements
do not set a target performance bonus as percentage of base salary, but leave such
target to be determined by the Compensation Committee. In addition, and also as
discussed elsewhere in this proxy statement, although Messrs.&nbsp;Richardson and Richardson
are eligible to participate in the Equity Incentive Plan, we do not anticipate granting
any material awards under the Equity Incentive Plan to them and their agreements do not
provide for any such awards.</TD>
</TR>

</TABLE>
</DIV><P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->43<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">


<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The agreements with each of Mr.&nbsp;Mueller, Dr.&nbsp;Meyer, Mr.&nbsp;Bachus, Mr.&nbsp;Mildenhall and
Dr.&nbsp;Player provide for a base salary and a target bonus under our Cash Incentive Plan.
Effective June&nbsp;1, 2010, the Compensation Committee increased the base salaries of Mr.
Mueller, Dr.&nbsp;Meyer and Mr.&nbsp;Bachus to $600,000, $350,000 and $350,000 from $500,000,
$300,000 and $275,000, respectively, and also increased the target bonus for Dr.&nbsp;Meyer
and Mr.&nbsp;Bachus to 75% of base salary from 50% of base salary. Mr.&nbsp;Mueller, Dr.&nbsp;Meyer,
Mr.&nbsp;Bachus , Mr.&nbsp;Mildenhall, and Dr.&nbsp;Player are also eligible to receive equity
incentive awards under our Equity Incentive Plan.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each agreement entitles the executive to receive customary and usual fringe benefits
generally available to our senior management, and to be reimbursed for reasonable
out-of-pocket business expenses.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each agreement entitles the executive to certain benefits upon his or her
termination of employment under specified circumstances.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">In addition, each of the above employment agreements provides for payments upon certain
terminations of the executive&#146;s employment. For a description of these termination provisions,
whether or not following a change-in-control, and a quantification of benefits that would be
received by these executives, see the heading &#147;Potential Payments upon Termination or Change in
Control&#148; below.
</DIV>
<DIV align="left">
<A name="C14675143"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Potential Payments upon Termination or Change in Control</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Our employment agreements with our named executive officers entitle them to certain severance
payments and other benefits in the event of certain types of terminations, which are summarized
below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Termination for Cause</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Each of the employment agreements provides that if the named executive officer is terminated
by us for &#147;Cause,&#148; the named executive officer will be entitled to receive only his or her base
salary then in effect, pro rated to the date of termination, and all fringe benefits through the
date of termination, and all of such officer&#146;s vested and unvested options will terminate. For
purposes of each of the employment agreements, &#147;Cause&#148; is defined as (a)&nbsp;acts or omissions
constituting gross negligence, recklessness or willful misconduct on the part of the executive with
respect to the executive&#146;s obligations or otherwise relating to the business of the Company; (b)
the executive&#146;s material breach of the employment agreement; (c)&nbsp;the executive&#146;s breach of the
Company&#146;s employee nondisclosure and assignment agreement; (d)&nbsp;the executive&#146;s conviction or entry
of a plea of nolo contendere for fraud, misappropriation or embezzlement, or any felony or crime of
moral turpitude; (e)&nbsp;the executive&#146;s inability to perform the essential functions of the
executive&#146;s position, with or without reasonable accommodation, due to a mental or physical
disability; (f)&nbsp;the executive&#146;s willful neglect of duties as determined in the sole and exclusive
discretion of the Board of Directors, provided that the 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 30&nbsp;days following receipt of such written notice,
unless the executive&#146;s action or omission is not subject to cure, in which case no such notice
shall be required, or (g)&nbsp;the executive&#146;s death.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->44<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Termination Without Cause or Termination for Good Reason</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Each of the employment agreements provides that if the named executive officer&#146;s employment is
terminated by us without Cause, or by the executive for &#147;Good Reason,&#148; the named executive officer
will be entitled to receive his or her base salary then in effect, pro rated to the date of
termination, as well as a severance package consisting of the following:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a severance payment equivalent to 12&nbsp;months of the executive&#146;s base salary then in
effect on the date of termination, payable in accordance with the Company&#146;s regular
payroll cycle commencing with the first payroll date occurring on or after the 60th day
following the date of the executive&#146;s termination of employment;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>payment by us of the premiums required to continue the executive&#146;s group health care
coverage for a period of 12&nbsp;months following the executive&#146;s termination, under the
applicable provisions of the Consolidated Omnibus Budget Reconciliation Act (&#147;COBRA&#148;),
provided that the executive timely elects to continue and remains eligible for these
benefits under COBRA, and does not become eligible for health coverage through another
employer during this period; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>with respect to Mr.&nbsp;Mueller, Dr.&nbsp;Meyer, and Mr.&nbsp;Bachus, acceleration of the vesting
of the next annual installment of the options granted to them in November&nbsp;2008 that
would otherwise have vested on the next vesting date following the termination of the
executive&#146;s employment.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">To receive the severance package, the executive must: (i)&nbsp;comply with all surviving
provisions of his or her agreement, including the non-competition, non-solicitation, and
confidentiality provisions described below, and (ii)&nbsp;execute a full general release, releasing all
claims, known or unknown, that executive may have against us arising out of or in any way related
to executive&#146;s employment or termination of employment with us. In addition, for options that
previously vested, the executive has until the earlier of three months from the date of separation
and the expiration of the applicable option to exercise such option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">For purposes of each of the employment agreements, &#147;Good Reason&#148; is defined as the occurrence
of any of the following conditions without the executive&#146;s written consent, which condition remains
in effect 30&nbsp;days after the executive provides written notice to us of such condition: (a)&nbsp;a
material reduction in the executive&#146;s base salary as then in effect prior to such reduction, other
than as part of a salary reduction program among similar management employees, (b)&nbsp;a material
diminution in the executive&#146;s authority, duties or responsibilities as an employee of the Company
as they existed prior to such change, or (c)&nbsp;a relocation of the executive&#146;s principal place of
work that increases the executive&#146;s one-way commute distance by more than 50 miles; provided that
the executive will be deemed to have given consent to any such condition if the executive does not
provide written notice to us of his or her intent to exercise such rights within 30&nbsp;days following
the first occurrence of such condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Termination Upon a Change in Control</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Each of the employment agreements provides that if the named executive officer&#146;s employment is
terminated by us without Cause or by the executive for Good Reason, in each case upon or within 12
months following a &#147;Change in Control,&#148; then, in addition to receiving his or her base salary then
in effect, pro rated to the date of termination, and the severance package described above, the
named executive officer will also be entitled to acceleration of the vesting of all stock options
held by such executive that have not yet vested as of the date of such termination. For purposes
of each of the employment agreements, &#147;Change in Control&#148; is defined as any one of the following
occurrences: (a)&nbsp;any &#147;person&#148; (as such term is used in Sections 13(d) and 14(d) of the Exchange
Act), becomes the &#147;beneficial owner&#148; (as such term is defined in Rule&nbsp;13d-3 promulgated under the
Exchange Act), directly or indirectly, of securities of the Company representing more than 50% of
the total fair market value or total combined voting power of our 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: (i)&nbsp;an acquisition of securities by any person who on the effective date of
the employment agreement was the beneficial owner of more than 50% of such voting power, (ii)&nbsp;any
acquisition of securities directly from us including, without limitation, pursuant to or in
connection with a public offering of securities, (iii)&nbsp;any acquisition of securities by us, (iv)
any acquisition of securities by a trustee or other fiduciary under a Company employee benefit
plan, or (v)&nbsp;any
acquisition of securities by an entity owned directly or indirectly by stockholders of the
Company in substantially the same proportions as their ownership of the voting securities of the
Company; (b)&nbsp;the sale or disposition of all or substantially all of the Company&#146;s assets (other
than a sale or disposition to one or more subsidiaries of the Company), or any transaction having
similar effect is consummated; (c)&nbsp;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 (d)
the dissolution or liquidation of the Company.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->45<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Non-Competition and Non-Solicitation Obligations</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Each of the agreements prohibits the executives from engaging in any work that creates an
actual conflict of interest with us, and includes customary non-competition and non-solicitation
covenants that prohibit the executives, during their employment with us and for 12&nbsp;months
thereafter, from (i)&nbsp;owning (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),
managing, controlling, participating in, consulting with, rendering services for, or in any manner
engaging in the operation of a for-profit, postsecondary education institution or any other
business that is in the same line of business as us; (ii)&nbsp;soliciting funds on behalf of, or for the
benefit of, any for-profit, postsecondary education institution (other than us) or any other entity
that competes with us; (iii)&nbsp;soliciting our current or prospective students to be students for any
other for-profit, postsecondary education institution; (iv)&nbsp;inducing or attempting to induce any of
our employees to leave our employ, or in any way interfering with the relationship between us and
any of our employees; or (v)&nbsp;inducing or attempting to induce any of our students, customers,
suppliers, licensees, or other business partners to cease doing business with, or modify its
business relationship with, us, or in any way interfere with or hinder the relationship between any
such student, customer, supplier, licensee, or business partner and us. Each of the executives has
separately entered into a confidentiality agreement with us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The following table provides information regarding the potential payments upon termination
without Cause or for Good Reason, as well upon termination without Cause or for Good Reason after a
Change in Control of the Company, which would have been paid to each executive in the event he or
she had been terminated as of December&nbsp;31, 2010. All payments in connection with any such
termination will comply with Section&nbsp;409A of the Code, to the extent Section&nbsp;409A applies. The
actual amounts to be paid out can only be determined at the time of such executive&#146;s separation
from the Company.
</DIV>
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>Termination without Cause or for Good Reason following</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Termination without Cause or for Good Reason</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>a Change in Control</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Cash</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Acceleration of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Acceleration of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Payment</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Benefits</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Vesting of Options</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Cash Payment</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Benefits</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Vesting of Options</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)(3)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)(3)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brent D. Richardson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">297,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">297,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brian E. Mueller</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">600,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,659,611</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">600,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,978,834</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dr.&nbsp;W. Stan Meyer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">350,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">663,844</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">350,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,991,533</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Daniel E. Bachus</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">350,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">597,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">350,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,792,382</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joseph N. Mildenhall</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">300,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,283</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">300,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,283</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">Christopher C.
Richardson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">297,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,462</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">297,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,462</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dr.&nbsp;Kathy Player</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">275,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,075</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">275,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,075</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">296,503</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Assumes a termination date of December&nbsp;31, 2010, and is based on the executive&#146;s salary in
effect at such date.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Reflects the cost related to the continuation of the executive&#146;s health benefits for the
period specified.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Calculated based on an assumed termination date of December&nbsp;31, 2010 and the closing market
price of our common stock on the Nasdaq Global Market on such date, less the applicable
exercise price for each option for which vesting is accelerated.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->46<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">





<DIV align="left">
<A name="C14675144"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>BENEFICIAL OWNERSHIP OF COMMON STOCK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The following table sets forth information regarding the beneficial ownership of our common
stock as of February&nbsp;28, 2011 for:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>each person, or group of affiliated persons, known to us to own beneficially 5% or
more of our outstanding common stock;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>each of our directors;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>each of our named executive officers; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all of our directors and named executive officers as a group.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The information in the following table has been presented in accordance with the rules of the
SEC. Under SEC rules, beneficial ownership of a class of capital stock includes any shares of such
class as to which a person, directly or indirectly, has or shares voting power or investment power
and also any shares as to which a person has the right to acquire such voting or investment power
within 60&nbsp;days through the exercise of any stock option, warrant or other right. If two or more
persons share voting power or investment power with respect to specific securities, each such
person is deemed to be the beneficial owner of such securities. Except as we otherwise indicate
below and under applicable community property laws, we believe that the beneficial owners of the
common stock listed below, based on information they have furnished to us, have sole voting and
investment power with respect to the shares shown. Unless otherwise noted below, the address for
each holder listed below is 3300 W. Camelback Road, Phoenix, Arizona 85017.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The calculations of beneficial ownership in this table are based on 45,661,714 shares
outstanding at February&nbsp;28, 2011.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="72%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Common Stock</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amount and Nature of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Beneficial Ownership</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent of Class</B><SUP style="FONT-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Principal Stockholders:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Endeavour Capital Fund IV, L.P. and affiliates<SUP style="FONT-size: 85%; vertical-align: text-top">(2)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">11.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">FMR LLC<SUP style="FONT-size: 85%; vertical-align: text-top">(3)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,785,291</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wells Fargo and Company<SUP style="FONT-size: 85%; vertical-align: text-top">(4)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,843,887</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.2</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">BlackRock, Inc.<SUP style="FONT-size: 85%; vertical-align: text-top">(5)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,602,841</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Directors and Named Executive Officers:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brent D. Richardson<SUP style="FONT-size: 85%; vertical-align: text-top">(6)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,611,504</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brian E. Mueller<SUP style="FONT-size: 85%; vertical-align: text-top">(7)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">566,644</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.2</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dr.&nbsp;W. Stan Meyer<SUP style="FONT-size: 85%; vertical-align: text-top">(7)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">185,426</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Daniel E. Bachus<SUP style="FONT-size: 85%; vertical-align: text-top">(7)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">175,433</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Christopher C. Richardson<SUP style="FONT-size: 85%; vertical-align: text-top">(8)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,536,631</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joseph N. Mildenhall<SUP style="FONT-size: 85%; vertical-align: text-top">(7)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dr.&nbsp;Kathy Player<SUP style="FONT-size: 85%; vertical-align: text-top">(7)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,955</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chad N. Heath<SUP style="FONT-size: 85%; vertical-align: text-top">(9)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,010,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">11.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">D. Mark Dorman<SUP style="FONT-size: 85%; vertical-align: text-top">(10)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,005,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">11.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">David J. Johnson<SUP style="FONT-size: 85%; vertical-align: text-top">(7)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">109,870</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jack A. Henry</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gerald J. Colangelo</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>All directors and executive officers as a group (12 persons)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,269,234</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">35.6</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 10pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Represents beneficial ownership of less than 1%</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The percentage of beneficial ownership as to any person as of a particular date is calculated
by dividing the number of shares beneficially owned by such person, which includes the number
of shares as to which such person has the right to acquire voting or investment power within
60&nbsp;days after such date, by the sum of the number of shares outstanding as of such date plus
the number of shares as to which such person has the right to acquire voting or investment
power within 60&nbsp;days after such date. Consequently, the denominator for calculating
beneficial ownership percentages may be different for each beneficial owner.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->47<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Endeavour Capital IV, LLC is the general partner of the Endeavour Entities and, except as
noted below, has voting and dispositive power with respect to the shares held by the Endeavour
Entities. Messrs.&nbsp;Chad N. Heath and D. Mark Dorman, each of whom is a managing director of
Endeavour Capital IV, LLC and serves on our Board of Directors, disclaim beneficial ownership
of these shares except to the extent of their respective pecuniary interests. The address for
these entities is 920 SW Sixth Avenue, Suite&nbsp;1400, Portland, Oregon 97204.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>This information for FMR, LLC is based on a Schedule&nbsp;13G filed with the Securities and
Exchange Commission on January&nbsp;10, 2011. The address for FMR, LLC is 82 Devonshire Street,
Boston, MA 02109.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>This information for Wells Fargo and Company is based on a Schedule&nbsp;13G filed with the
Securities and Exchange Commission on January&nbsp;20, 2011. The address for Wells Fargo and
Company is 420 Montgomery Street, San Francisco, CA 94163.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>This information for BlackRock, Inc. is based on a Schedule&nbsp;13G filed with the Securities and
Exchange Commission on January&nbsp;21, 2011. The address for BlackRock, Inc. is 55 East 52nd
Street, New York, NY 10055.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Consists of 2,611,504 shares of common stock held of record by Exeter Capital, LLC, a limited
liability company of which Brent D. Richardson, our Executive Chairman, is the manager, which
are attributable to, and beneficially owned by, Mr.&nbsp;Brent D. Richardson.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes shares of common stock issuable upon exercise of vested stock options.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>Consists of 2,536,631 shares of common stock held of record by Calle Camelia Investments,
LLC, a limited liability company of which Christopher C. Richardson, our General Counsel and a
director, is a manager, which are attributable to, and beneficially owned by, Mr.&nbsp;Christopher
C. Richardson.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(9)</TD>
    <TD>&nbsp;</TD>
    <TD>Consists of 5,000,000 shares of common stock held beneficially and of record by the Endeavour
Entities (see note (2)&nbsp;above) and 10,000 shares of common stock held of record by Mr.&nbsp;Heath.
Mr.&nbsp;Heath, who is a managing member of Endeavour Capital IV, LLC, the general partner of the
Endeavour Entities, and serves on our Board of Directors, disclaims beneficial ownership of
the shares held of record by any of the Endeavour Entities except to the extent of his
pecuniary interest in such shares.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(10)</TD>
    <TD>&nbsp;</TD>
    <TD>Consists of 5,000,000 shares of common stock held beneficially and of record by the Endeavour
Entities (see note (2)&nbsp;above) and 5,000 shares of common stock held of record by Mr.&nbsp;Dorman.
Mr.&nbsp;Dorman, who is a managing member of Endeavour Capital IV, LLC, the general partner of the
Endeavour Entities, and serves on our Board of Directors, disclaims beneficial ownership of
the shares held of record by any of the Endeavour Entities except to the extent of his
pecuniary interest in such shares.</TD>
</TR>

</TABLE>


<DIV align="left">
<A name="C14675145"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</B>
</DIV>

<DIV align="left">
<A name="C14675146"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Policies and Procedures for Related Party Transactions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We have adopted a written related party transactions policy, pursuant to which our executive
officers, directors and principal stockholders, including their immediate family members, are not
permitted to enter into a related party transaction with us without the prior consent of our Audit
Committee. Any request for us to enter into a transaction with an executive officer, director,
principal stockholder or any of such persons&#146; immediate family members or affiliates, in which the
amount involved exceeds $120,000 must be presented to our Audit Committee for review, consideration
and approval. All of our directors, executive officers and employees are required to report to our
Audit Committee any such related party transaction. In approving or rejecting the proposed
agreement, our Audit Committee will take into account, among other factors it deems appropriate,
whether the transaction is on terms no less favorable than terms generally available to an
unaffiliated third-party under the same or similar circumstances and the extent of the related
party&#146;s interest in the transaction. Under the policy, if we should discover related party
transactions that have not been pre-approved, the Audit Committee will be notified and will
determine the appropriate action, including ratification, rescission or amendment of the
transaction. In addition, under the policy, certain types of transactions have been pre-approved
by the Audit Committee, including employment arrangements with executive officers, director
compensation, transactions where all stockholders receive proportional benefits, transactions
involving competitive bids, regulated transactions, and banking-related service transactions.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">
<DIV align="left">
<A name="C14675147"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Certain Transactions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Set forth below is a summary of certain transactions since January&nbsp;1, 2010, in which the
Company was or is to be a participant and involving our directors, executive officers, beneficial
owners of more than 5% of our common stock, and some of the entities with which the foregoing
persons are affiliated or associated, and in which the amount involved exceeds or will exceed
$120,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Agreements with Mind Streams and Lifetime Learning</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Through December&nbsp;2010, we were a party to an agreement with Mind Streams, LLC, which is owned
and operated, in part, by Gail Richardson, the father of Brent D. Richardson, our Executive
Chairman, and Christopher C. Richardson, our General Counsel and a director. Pursuant to this
agreement, Mind Streams identified qualified applicants for admission to Grand Canyon University in
return for which it was a paid a stated percentage of the net revenue (calculated as tuition
actually received, less scholarships, refunds, and allowances) derived by us from those identified
applicants that matriculate at Grand Canyon University. Additionally in 2010, we entered into an
agreement with Lifetime Learning, LLC, another entity owned and operated, in part, by Gail
Richardson, which generates and sells information regarding prospective students to us. For the
year ended December&nbsp;31, 2010, we expensed approximately $8.8&nbsp;million pursuant to these
arrangements, exclusive of the settlement arrangement discussed in the following paragraph and, as
of December&nbsp;31, 2010, approximately $9.4&nbsp;million was due to these related parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">As a result of new rules adopted by the Department of Education and effective July&nbsp;1, 2011, we
determined that revenue sharing arrangements like the agreement with MindStreams will most likely
no longer be permitted. Accordingly, we allowed the agreement with MindStreams to expire by its
terms effective December&nbsp;31, 2010. In connection with such planned expiration and in consideration
for amounts that we would continue to owe to Mind Streams under the arrangement following such
expiration in respect of anticipated net revenue derived from any such currently matriculated
students identified by Mind Streams who continue to take courses at the University in the future,
we entered into an agreement with MindStreams, dated December&nbsp;30, 2010, pursuant to which we agreed
to pay Mind Streams an amount equal to (a) $8.5&nbsp;million, plus (b)&nbsp;Mind Streams&#146; applicable share of
any net revenue actually received by us on or before February&nbsp;28, 2011 with respect to any such
matriculated students that began a course prior to November&nbsp;1, 2010. In return, Mind Streams agreed
to (i)&nbsp;accept such amounts in full and complete satisfaction of all amounts owed by us to Mind
Streams under the agreement, and (ii)&nbsp;transfer to us a proprietary database of potential student
contacts. The amount paid by us covers both the present value of Mind Streams&#146; allocable share of
such anticipated net revenue as well as the value of the acquired database.
</DIV>
<DIV align="left">
<A name="C14675148"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Section&nbsp;16(a) of the Exchange Act requires that our Company&#146;s directors and executive officers
file initial reports of ownership and reports of changes in ownership with the SEC. Directors and
executive officers are required to furnish our Company with copies of all Section 16(a) forms they
file. Based solely on a review of the copies of such forms furnished to our Company and written
representations from our Company&#146;s directors and executive officers, all reports required by
Section 16(a) were filed on a timely basis for the fiscal year ended December&nbsp;31, 2010.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->49<!-- /Folio -->
</DIV>

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<DIV align="left">
<A name="C14675149"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>HOUSEHOLDING OF PROXY MATERIALS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The SEC has adopted rules that permit companies and intermediaries such as brokers to satisfy
delivery requirements for annual reports, proxy statements, and Notices of Internet Availability of
Proxy Materials with respect to two or more stockholders sharing the same address by delivering a
single annual report, proxy statement, or Notice of Internet Availability of Proxy Materials
addressed to those stockholders. This process, which is commonly referred to as &#147;householding,&#148;
potentially provides extra convenience for stockholders and cost savings for companies. Brokers
with account holders who are stockholders of the Company may be householding the Company&#146;s proxy
materials. Once you have received notice from your broker that it will be householding materials
to your address, householding will continue until you are notified otherwise or until you revoke
your consent. If, at any time, you no longer wish to participate in householding and would prefer
to receive a separate annual report, proxy statement, or Notice of Internet Availability of Proxy
Materials or if you are receiving multiple copies thereof and wish to receive only one, please
notify your broker or notify the Company by sending a written request to Grand Canyon Education,
Inc., 3300 W. Camelback Road, Phoenix, Arizona, 85017, Attn: Investor Relations, or by calling
(602)&nbsp;639-7500.
</DIV>
<DIV align="left">
<A name="C14675150"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>ADDITIONAL INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Our 2010 annual report and our Annual Report on Form 10-K for fiscal year 2010, including
financial statements, are available electronically along with our proxy statement to all
stockholders of record as of March&nbsp;28, 2011, including those stockholders whose shares are held in
a brokerage, bank or similar account, who will receive the same mailing from the organization
holding the account. <B>Stockholders who wish to obtain a copy of our Annual Report on </B><B>Form 10-K</B><B>, for
the fiscal year ended December&nbsp;31, 2010, and our proxy statement may do so without charge by
writing to Investor Relations, Grand Canyon Education, Inc., 3300 W. Camelback Road, Phoenix,
Arizona 85017.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">As of the date of this proxy statement, management knows of no matters that will be presented
for determination at the Annual Meeting other than those referred to herein. If any other matters
properly come before the Annual Meeting calling for a vote of stockholders, it is intended that the
persons named in the proxies solicited by our Board of Directors, in accordance with their best
judgment, will vote the shares represented by these proxies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">By Order of the Board of Directors,<BR><BR>
<IMG src="c14675c1467503.gif" alt="-s- Christopher C. Richardson"><BR><BR>
Christopher C. Richardson<BR>
<I>Secretary</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Dated: March&nbsp;28, 2011
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->50<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">



<DIV align="left">
<A name="C14675151"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 10pt">APPENDIX A &#151; GRAND CANYON EDUCATION, INC. ANNUAL CASH INCENTIVE PLAN
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 10pt"><B>GRAND CANYON EDUCATION, INC.</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 10pt"><B>Annual Cash Incentive Plan</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>I. </B><U><B>PLAN OBJECTIVE</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The Grand Canyon Education, Inc. Annual Cash Incentive Plan (the &#147;<B>Plan</B>&#148;) is an annual cash
bonus program designed to motivate eligible participants to achieve financial and strategic
objectives of Grand Canyon Education, Inc. (the &#147;<B>Company</B>&#148;). The Plan is intended to satisfy the
applicable provisions of Section 162(m) of the Internal Revenue Code of 1986, as amended and the
regulations thereunder (&#147;<B>Section&nbsp;162(m)</B>&#148;), with respect to participants who are Covered Employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>II. </B><U><B>PLAN ADMINISTRATOR</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(a)&nbsp;The Plan shall be administered by the Compensation Committee (the &#147;<B>Committee</B>&#148;) of the
Board of Directors of the Company. The Committee shall be comprised of not fewer than two members
who shall be &#147;outside directors&#148; within the meaning of Section&nbsp;162(m). The Committee may delegate
responsibility for plan administration to a designee; provided, however, the Committee may not
delegate its responsibility regarding the grant and administration of awards which are intended to
qualify as performance-based compensation under Section&nbsp;162(m). The term &#147;<B>Plan Administrator</B>&#148; as
used herein shall mean the Committee or its designee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(b)&nbsp;The Plan Administrator shall have full authority to establish the rules and regulations
relating to the Plan, to interpret the Plan and those rules and regulations, to select participants
in the Plan, to determine each participant&#146;s target award, to approve all of the awards, to decide
the facts in any case arising under the Plan and to make all other determinations, including
factual determinations, and to take all other actions necessary or appropriate for the proper
administration of the Plan, including the delegation of such authority or power, where appropriate;
provided, however, that only the Committee shall have authority to amend or terminate the Plan, and
the Plan Administrator shall not be authorized to increase the amount of the award payable to a
Covered Employee that would otherwise be payable pursuant to the terms of the Plan. The Plan
Administrator&#146;s administration of the Plan, including all such rules and regulations,
interpretations, selections, determinations, approvals, decisions, delegations, amendments,
terminations and other actions, shall be final and binding on the Company and all employees of the
Company, including, the participants in the Plan and their respective beneficiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>III. </B><U><B>ELIGIBILITY</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Subject to such limitations or restrictions as the Plan Administrator may impose, the
individuals eligible to participate in the Plan shall be regular employees of the Company and its
subsidiaries, if any.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The Plan Administrator shall select the actual individuals who shall participate in the Plan
for each Plan Year; provided that such selection with respect to those individuals who are Covered
Employees shall be designated in writing no later than the Section 162(m) Designation Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>IV. </B><U><B>PERFORMANCE GOALS</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(a)&nbsp;For each Plan Year for which awards are to be made under the Plan, the Plan Administrator
will pre-establish the performance goal(s) to be achieved in order for any awards to be payable for
that Plan Year and the threshold, target and maximum bonus amounts that may be paid if the
performance goals are met; provided that with respect to those individuals who are Covered
Employees the applicable performance goal(s) shall be established by the Plan Administrator in
writing no later than the Section 162(m) Designation Date and otherwise in accordance with the
requirements of Section&nbsp;162(m).
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(b)&nbsp;The performance goal(s) for participants who are Covered Employees will be based on one or
more of the following business or operational criteria:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>revenue targets;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Adjusted EBITDA targets (as such term is defined from time to time in the
Company&#146;s periodic reports as filed with the Securities and Exchange Commission);</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>return measures (including, but not limited to, return on assets, capital,
investment, equity or sales, and total stockholder return);</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>earnings per share;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>net income (before or after taxes) or operating income;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>budget comparisons;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>regulatory compliance;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>productivity improvements;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>measures of student satisfaction or achievement;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any combination of, or a specified increase in, any of the foregoing; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the completion of corporate transactions intended to enhance the Company&#146;s
revenue or profitability.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Each of these measures will be defined by the Plan Administrator on a corporation, subsidiary,
group or division basis and may be stated as an absolute value or as a value determined relative to
a budget, an index or the performance of other entities and may include or exclude specified
extraordinary items, as determined by the Plan Administrator.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(c)&nbsp;The specific goals for participants who are not Covered Employees may be based on the
foregoing criteria or any other criteria determined by the Plan Administrator.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(d)&nbsp;Anything herein to the contrary notwithstanding, no performance goal for any participant
may be used that would result in a payment being made under this plan that is based in any part,
directly or indirectly, upon success in securing student enrollments or the award of financial aid
in violation of applicable law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>V. </B><U><B>TARGET BONUS LEVELS</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(a)&nbsp;The Plan Administrator shall specify the threshold, target and maximum credited
performance level(s) to be achieved with respect to the applicable performance goal(s) determined
in accordance with Article&nbsp;IV, and the bonus amounts for each participant in the Plan that will be
paid upon the attainment of the specified levels of achievement of the performance goal(s);
provided that, with respect to those individuals who are Covered Employees, the Plan
Administrator&#146;s specification shall be made in writing no later than the Section 162(m) Designation
Date. The Plan Administrator may also establish individual performance goals for each participant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(b)&nbsp;Each participant will earn a bonus for a Plan Year based on the achievement of the
performance goal(s) established by the Plan Administrator. The Plan Administrator may adjust,
upward or downward, the bonus amount for each participant who is not a Covered Employee, based on
the Plan Administrator&#146;s determination of the participant&#146;s achievement of personal and other
performance goals established by the Plan Administrator and other factors as the Plan Administrator
determines. The Plan Administrator may reduce (but not increase) the bonus amount for each Covered
Employee based on the Plan Administrator&#146;s determination of the participant&#146;s achievement of
personal and other performance goals established by the Plan Administrator and other factors as the
Plan Administrator determines.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(c)&nbsp;Unless determined otherwise by the Plan Administrator, the target bonus amounts will be
expressed as either an absolute dollar amount or a percentage of a participant&#146;s base salary. In
no event may the bonus paid to a participant for a Plan Year exceed two hundred percent (200%) of
the participant&#146;s base salary for the Plan Year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(d)&nbsp;The maximum amount of compensation that a Covered Employee may receive under the Plan for
any Plan Year is $2,000,000.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>VI. </B><U><B>PAYMENT OF BONUSES</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(a)&nbsp;The Plan Administrator shall certify in writing the actual extent to which the applicable
performance goal(s) have been achieved for the Plan Year and announce to the participants the bonus
amounts that will be paid by the Company as soon as practicable following the final determination
of the Company&#146;s financial results for the Plan Year. Payment of the bonuses certified by the Plan
Administrator shall be made in a single lump sum cash payment as soon as practicable following such
certification but in any event no later than the 15th day of the third month following the end of
the Plan Year. However, the Plan Administrator may provide with respect to participants, including
Covered Employees, for periodic payments of bonuses based on achievement of the applicable
performance goal(s) for one or more interim periods during a Plan Year (each an &#147;<B>Interim
Performance Period</B>&#148;), as the Plan Administrator determines.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(b)&nbsp;Participants must be employed on the last day of the Plan Year or Interim Performance
Period, as applicable, to be eligible for a bonus payment under the Plan, except as described in
subsections (c)&nbsp;and (d)&nbsp;below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(c)&nbsp;Participants who terminate employment prior to the last day of the Plan Year or Interim
Performance Period, as applicable, will not be eligible for any bonus payment for that Plan Year or
Interim Performance Period. However, the Plan Administrator shall have the discretion to authorize
a full or partial payment of the bonus to which the participant would have actually become entitled
had such individual continued in employee status through the payment date, should such individual&#146;s
employment terminate prior to such date by reason of his or her death, disability, retirement or
involuntary termination due to a reduction in force, departmental reduction or job reduction that
occurs after at least six (6)&nbsp;months of service during the Plan Year. The bonus amounts in these
cases will be based on the achievement of the performance goal(s) for the entire Plan Year or
Interim Performance Period, as applicable, and the participant&#146;s actual level of individual
performance. Such bonus amounts may be prorated based on the period of the participant&#146;s actual
employment during the Plan Year. Payment will be made in a single payment at the same time as all
other bonuses for the Plan Year or Interim Performance Period, as applicable, are distributed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(d)&nbsp;In the case of the death of a participant, any bonus payable to the participant shall be
paid to his or her beneficiary named under the Company-sponsored life insurance plan. If no life
insurance beneficiary is designated, the beneficiary will be the decedent&#146;s estate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(e)&nbsp;The Plan Administrator may establish appropriate terms and conditions to accommodate newly
hired and transferred employees, consistent, in the case of a Covered Employee, with Section
162(m).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>VII. </B><U><B>CHANGES TO PERFORMANCE GOALS AND TARGET AWARDS</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">At any time prior to the final determination of bonuses earned, for participants other than
Covered Employees, the Plan Administrator may adjust the performance goals and target awards to
reflect a change in corporate capitalization (such as a stock split or stock dividend), or a
corporate transaction (such as a merger, consolidation, separation, reorganization or partial or
complete liquidation), or to reflect equitably the occurrence of any extraordinary event, any
change in applicable accounting rules or principles, any change in the Company&#146;s method of
accounting, any change in applicable law, any change due to any merger, consolidation, acquisition,
reorganization, stock split, stock dividend, combination of shares or other changes in the
Company&#146;s corporate structure or shares, or any other change of a similar nature. The Plan
Administrator may make the foregoing adjustments with respect to Covered Employees&#146; awards to the
extent the Plan Administrator deems appropriate, provided that the pre-established terms of the
award contemplate the specific adjustment(s) to be made and the adjustment(s) otherwise conform to
the requirements of Section&nbsp;162(m).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>VIII. </B><U><B>DEFERRALS</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Participants who are eligible to participate in any deferred compensation plan of the Company,
if any, may elect to defer all or a portion of the payment of their Plan awards to the extent and
in accordance with the requirements of such deferral plan.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>IX. </B><U><B>AMENDMENT AND TERMINATION</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Notwithstanding the above, the Committee, at its sole discretion, may amend, modify or change
the Plan or its implementation at any time, including, but not limited to, revising performance
targets, bonus multipliers, strategic goals and objectives and actual bonus payments. However, such
amendment shall not occur without the appropriate approval of the Company&#146;s stockholders, if such
approval is required by Section&nbsp;162(m). The Committee may terminate the Plan at any time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>X. </B><U><B>MISCELLANEOUS</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(a)&nbsp;The following definitions shall apply:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(i) &#147;<B>Covered Employee</B>&#148; means a participant who is or may reasonably be expected to
become as of the last day of the applicable Plan Year one of the group of &#147;covered
employees&#148; as defined in the regulations promulgated under Section&nbsp;162(m), or any successor
statute.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii) &#147;<B>Plan Year</B>&#148; means the calendar year beginning January 1 and ending December&nbsp;31.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iii) &#147;<B>Section&nbsp;</B><B>162(m)</B><B> Designation Date</B>&#148; means the <U>earlier</U> of (A)&nbsp;the date 90
days after the period of service to which the performance goal(s) relates or (B)&nbsp;the date on
which 25% of the period of service to which the performance goal(s) relates has elapsed, and
in any event at a time when the outcome of the performance goal(s) remains substantially
uncertain.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(b)&nbsp;Neither the establishment of the Plan, nor any action taken hereunder, shall be construed
as giving any participant any right to be retained in the employ of the Company or any of its
subsidiaries. Nothing in the Plan, and no action taken pursuant to the Plan, shall affect the right
of the Company to terminate a participant&#146;s employment at any time and for any or no reason. The
Company is under no obligation to continue the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(c)&nbsp;A participant&#146;s right and interest under the Plan may not be assigned or transferred,
except upon death, and any attempted assignment or transfer shall be null and void and shall
extinguish, in the Company&#146;s sole discretion, the Company&#146;s obligation under the Plan to pay awards
with respect to the participant. The Company&#146;s obligations under the Plan may be assigned to any
corporation which acquires all or substantially all of the Company&#146;s assets or any corporation into
which the Company may be merged or consolidated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(d)&nbsp;The Plan shall be unfunded. The Company shall not be required to establish any special or
separate fund, or to make any other segregation of assets, to assure payment of awards. The
Company&#146;s obligations hereunder shall constitute a general, unsecured obligation; awards shall be
paid solely out of the Company&#146;s general assets, and no participant shall have any right to any
specific assets of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(e)&nbsp;The Company shall have the right to deduct from awards any and all federal, state and
local taxes or other amounts required by law to be withheld.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(f)&nbsp;The validity, construction, interpretation and effect of the Plan shall exclusively be
governed by and determined in accordance with the laws of the State of Delaware without giving
effect to principles of conflicts of laws.
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-4<!-- /Folio -->
</DIV>



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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.50in">

<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="42%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->

<TR valign="bottom">
    <TD COLSPAN="8" valign="top"><div style="margin-left: 4%"><IMG src="c14675c1467500.gif" alt="(GRAND CANYON UNIVERSITY LOGO)"><br><br>
<DIV style="width: 50%; border: 3px solid black; padding: 5px;">


<DIV align="justify" style="font-size: 8pt; margin-top: 6pt"><font style="white-space: nowrap"><b><I>IMPORTANT ANNUAL MEETING INFORMATION</I></b></font>
</DIV> </DIV>
</DIV>

&nbsp;</td>

    <TD valign="top" align="left" colspan="3"><B><font style="font-size: 10pt">
<BR><br style="font-size: 6pt"><font style="font-size: 12pt"><BR><BR>
<BR>
<BR>
<BR>
Electronic Voting Instructions</font></font><BR>
<div style="font-size: 10pt; margin-top: 3pt">You can vote by
Internet or telephone&#033;<BR>
Available 24 hours a day, 7 days a
week&#033;</div><BR style="font-size: 3pt"></B>
<DIV align="justify">Instead of mailing your proxy, you may choose one of the two voting methods outlined below to vote your proxy. </DIV>
<BR style="font-size: 3pt">VALIDATION DETAILS ARE LOCATED BELOW IN THE TITLE BAR.
</TD></TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><DIV align="justify"><BR style="font-size: 3pt"><B>Proxies submitted by the Internet or
telephone must be received by 11:00 p.m., Pacific Time, on Monday, May 16, 2011. </B></DIV></TD>
</TR>
<TR><TD align="left" valign="top" style="font-size:6pt">&nbsp;</TD></TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" rowspan="2"><B><FONT  style="font-size: 10pt">Vote by
Internet</FONT></B><br>&nbsp;&nbsp;&nbsp;<B>&#149;</B>&nbsp;&nbsp;Log on to the Internet and go to
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>www.envisionreports.com/LOPE</B>
<BR><BR style="font-size: 6pt">&nbsp;&nbsp;&nbsp;<B>&#149;</B>&nbsp;&nbsp;Follow the steps outlined on the secured website. </TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"></TD>
</TR>
<TR><TD align="left" valign="top" style="font-size:6pt">&nbsp;</TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" rowspan="2"><B><FONT  style="font-size: 10pt">Vote by telephone</FONT></B>
<Div style="margin-left: 20px; text-indent: -20px">&nbsp;&nbsp;&nbsp;<B>&#149;</B>&nbsp;&nbsp;Call toll free 1-800-652-VOTE (8683) within the USA,
US territories &#038; Canada any time on a touch tone
telephone. There is <B>NO CHARGE</B> to you for the call.
</DIV><BR style="font-size: 6pt"></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>

    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" COLSPAN="4"><DIV style="margin-left:0px; text-indent:-0px">Using a <B>black ink</B> pen, mark your votes with an <B>X</B> as shown in
this example. Please do not write outside the designated areas.</DIV></TD>
    <TD nowrap align="right" valign="top"><FONT face="Wingdings" style="font-size: 24pt">&#120;</FONT></TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><Div style="margin-left: 20px; text-indent: -20px">&nbsp;&nbsp;&nbsp;<B>&#149;</B>&nbsp;&nbsp;Follow the instructions provided by the recorded
message.</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt"><DIV style="border-bottom: 3px solid #000000; font-size: 1px">&nbsp;</DIV>

</DIV>

<DIV align="justify" style="font-size: 14pt; margin-top: 6pt"><b>Annual Meeting Proxy Card</b>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><DIV style="border-bottom: 3px solid #000000; font-size: 1px">&nbsp;</DIV>

</DIV>


<DIV align="center" style="font-size: 6pt; margin-top: 6pt; MARGIN-LEFT: 0%"><B>IF YOU HAVE NOT VOTED VIA THE INTERNET <U>OR</U> TELEPHONE,
FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. </B></DIV>



<DIV align="left" style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="background:#000000;  width=2%">
<font color="#FFFFFF">&nbsp;<B>A</B>&nbsp; </FONT></FONT><B>&nbsp;&nbsp;Proposals &#151;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>The Board of Directors recommends a vote <U>FOR</U> all the nominees listed, <U>FOR</U>
Proposals 2, 3, 4 and 6 and
<U>3 YRS</U> for Proposal 5.</B></DIV></TD>
</TR>
</TABLE>
</DIV>


<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="18%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->


<TR valign="bottom">

    <TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px">1.&nbsp;&nbsp; Election of Directors:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>01 - Brent D. Richardson<BR>
04 - Chad N. Heath<BR>
07 - Jack A. Henry
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>02 - Brian E. Mueller<BR>
05 - D. Mark Dorman<BR>
08 - Gerald J. Colangelo
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>03 - Christopher C. Richardson<BR>
06 - David J. Johnson
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><font style="font-size: 20pt"><B>&#043;</B></font></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="85%">
<!-- Begin Table Head -->

<TR valign="bottom" style="font-size: 3pt">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="23">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="38%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top" style="font-size:20pt"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Mark here to vote
<u>FOR</u> all nominees</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="font-size:20pt"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Mark here to <u>WITHHOLD </u>
vote from all nominees</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="font-size:20pt"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>For All <u>EXCEPT</u></B> - To withhold authority to vote for any
nominee(s), write the name(s) of such nominee(s) below.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="margin-left:0%">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr style="font-size: 12pt">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>For</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Against</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Abstain</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>For</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Against</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Abstain</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top" colspan="3"><DIV style="margin-left: 15px; text-indent: -15px">2.&nbsp;&nbsp;To approve the Annual Cash Incentive Plan in accordance
with Section 162(m) of the Internal Revenue Code.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="font-size:20pt"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="font-size:20pt"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="font-size:20pt"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="left" valign="top" colspan="3"><DIV style="margin-left: 15px; text-indent: -15px">3.&nbsp;&nbsp;To approve the Section 162(m) limits of our 2008
Equity Incentive Plan.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="font-size:20pt"><FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="font-size:20pt"><FONT face="Wingdings">&#111;</FONT>
</TD>
<TD>&nbsp;</TD>
    <TD align="center" valign="top" style="font-size:20pt"><FONT face="Wingdings">&#111;</FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="margin-left:0%">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr style="font-size: 6pt">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap>&nbsp;&nbsp;&nbsp;</TD>
    <TD nowrap align="center"><B>For</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Against</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Abstain</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>1 Yr</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>2 Yrs</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>3 Yrs</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Abstain</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top" colspan="3"><DIV style="margin-left: 15px; text-indent: -15px">4.&nbsp;&nbsp;To approve, on an advisory basis, the compensation
of our named executive officers.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="font-size:20pt"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="font-size:20pt"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="font-size:20pt"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="left" valign="top" colspan="0"><DIV style="margin-left: 15px; text-indent: -15px">5.&nbsp;&nbsp;To recommend, on an advisory basis, the
frequency of the advisory vote on named
executive officer compensation.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="font-size:20pt"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="font-size:20pt"><FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="font-size:20pt"><FONT face="Wingdings">&#111;</FONT>
</TD>
<TD>&nbsp;</TD>
    <TD align="center" valign="top" style="font-size:20pt"><FONT face="Wingdings">&#111;</FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="margin-left:0%">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr style="font-size: 12pt">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>For</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Against</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Abstain</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top" colspan="3"><DIV style="margin-left: 15px; text-indent: -15px">6.&nbsp;&nbsp;To ratify the appointment of Ernst &#038; Young LLP as
        our independent registered public accounting firm for
        the fiscal year ending December 31, 2011.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="font-size:20pt"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="font-size:20pt"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="font-size:20pt"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="left" valign="top" colspan="3"><DIV style="margin-left: 15px; text-indent: -15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="font-size:20pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="font-size:20pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="font-size:20pt">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<DIV align="center" style="margin-top: 20pt; MARGIN-LEFT: 0%">
<TABLE style="font-size: 9pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
<TD COLSPAN="2"><DIV style="background:#000000; WIDTH: 1%"><font color="#FFFFFF"><font style="font-size: 10pt">&nbsp;<B>B</B></font>&nbsp;</FONT></DIV></TD>
   <TD align="left" width="97%" nowrap><font style="font-size: 10pt"><b>Authorized Signatures &#151; This section must be completed for your vote to be counted. &#151; Date and Sign Below </b></font>
</TD>
</TR>

</TABLE>
</DIV>





<DIV align="justify" style="font-size: 8pt; margin-top: 6pt; margin-left: 0%">Please sign exactly as your name(s) appear on the proxy.
If held in joint tenancy, all persons must sign. Trustee, administrators, etc.,
should include title and authority. Corporations should provide the full name
of corporation and the title of the authorized officer signing the proxy.
</DIV>

<DIV align="center" style="margin-top: 3pt">
<TABLE style="font-size: 7pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom" style="font-size: 5pt">
    <TD width="30%"></TD>
    <TD width="4%"></TD>
    <TD width="30%"></TD>
    <TD width="4%"></TD>
    <TD width="30%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top" nowrap align="left"><DIV style="margin-left:0px; text-indent:-0px">Date (mm/dd/yyyy) &#151; Please print date below.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Signature 1 &#151; Please keep signature within the box.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Signature 2 &#151; Please keep signature within the box.</TD>
</TR>
<TR valign="bottom" style="font-size: 20pt">
    <TD align="center" style="border-bottom: 1px solid #000000; border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">
&nbsp;/&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000; border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000; border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>

</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><font style="font-size: 20pt"><FONT face="Wingdings">&#110;</FONT></FONT>

</TD>
    <TD>&nbsp;</TD>

<TD align="right" valign="top"><font style="font-size: 20pt"><B>&#043;</B></font></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C14675tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.50in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>ANNUAL MEETING OF STOCKHOLDERS</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Tuesday, May&nbsp;17, 2011<BR>
10:00&nbsp;a.m.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Grand Canyon Education, Inc.<BR>
McKinley Hall<BR>
3300 W. Camelback Road<BR>
Phoenix, Arizona 85017</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Important Notice Regarding the Availability of Proxy Materials
for the Stockholder <br>Meeting to Be Held on May&nbsp;17, 2011. This
proxy statement and our annual report<br>
for the year ended December&nbsp;31, 2010, are available and may be viewed at<br>
www.edocumentview.com/LOPE.</B>
</DIV>


<DIV align="justify" style="font-size: 6pt; margin-top: 40pt"><B>IF YOU HAVE NOT VOTED VIA THE INTERNET </B><U><B>OR</B></U><B> TELEPHONE, FOLD ALONG THE PERFORATION, DETACH
AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE.</B>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="95%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 2px solid #000000">&nbsp;</DIV>
<font style="font-size: 14pt"><B>Proxy &#151; Grand Canyon Education, Inc.</B></font>
<DIV style="font-size: 1pt; border-top: 2px solid #000000">&nbsp;</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="middle"><font style="font-size: 20pt"><B>&#043;</B></font></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 14pt; margin-top: 0pt"><B>Notice of 2011 Annual Meeting of Stockholders</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>McKinley Hall<BR>
3300 W. Camelback Road<BR>
Phoenix, Arizona 85017</B>

</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Proxy Solicited by Board of Directors for Annual Meeting &#151; Tuesday, May&nbsp;17, 2011</B>
</DIV>

<DIV align="justify" style="font-size: 8pt; margin-top: 10pt">Brian E. Mueller and Daniel E. Bachus, or any of them, each with the power of
substitution, are hereby authorized to represent and vote the shares of the undersigned,
with all the powers which the undersigned would possess if personally present, at the Annual
Meeting of Stockholders of Grand Canyon Education, Inc. to be held on Tuesday, May&nbsp;17, 2011
or at any postponement or adjournment thereof.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>THIS PROXY WHEN PROPERLY EXECUTED WILL BE VOTED AS DIRECTED OR, IF NO DIRECTION IS GIVEN,
WILL BE VOTED FOR ITEMS 1, 2, 3, 4 AND 6 AND 3 YRS FOR ITEM 5.</B>
</DIV>

<DIV align="justify" style="font-size: 8pt; margin-top: 10pt"><B>In their discretion, the Proxies are authorized to vote upon such other business as may
properly come before the meeting.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(Items to be voted appear on reverse side.)
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><FONT style="BACKGROUND: #000000; WIDTH: 2%">
<FONT color=#ffffff>&nbsp;<B>C</B></font></font> <b>Non-Voting Items</b>
</DIV>

<DIV align="justify" style="font-size: 8pt; margin-top: 1pt"><b>Change of Address</b> &#151; Please print new address below.
</DIV>

<div align="left" style="margin-top: 3pt; font-size: 3pt">&nbsp;</div>

<DIV style="width: 100%; border: 2px solid black; padding: 11px;">



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">&nbsp;<br>
</DIV>
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><font style="font-size: 20pt"><FONT face="Wingdings">&#110;</FONT></FONT>

</TD>
    <TD>&nbsp;</TD>

<TD align="right" valign="top"><font style="font-size: 20pt"><B>&#043;</B></font></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>



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