10.

Regulation

On June 13, 2011, the Department of Education published its final regulations defining the term "gainful employment." Under the regulations, which become effective July 1, 2012, a particular program offered by an institution would become ineligible for Title IV funding if it could not pass at least one of three alternative measurements in three out of four consecutive years. The first year that a program could become ineligible is 2015. The Company does not have adequate guidance or data from the Department of Education to determine the financial or operational impact, if any, of the new regulation, and therefore is unable to estimate any potential range of liability. The Department of Education has indicated that it would endeavor to provide additional guidance and illustrative data in 2012.