Issue of Shares, Board Changes and CEO remuneration · CPA. He also holds a Graduate Diploma in Company Secretarial Practice and is an Associate of the Institute of Chartered Secretaries

Early Learning Services Limited | ACN 123 828 553 A Suite 27 Pegasus Centre, 42 Bundall Road, Bundall QLD 4217 P PO Box 7092 Gold Coast MC QLD 9726

P 07 5581 5300 F 07 5581 5311 W www.earlylearningservices.com.au E [email protected]

26 March 2010

Issue of Shares, Board Changes and CEO remuneration

Issue of Shares

Shares issued as consideration for acquiring 100% of the issued capital of Payce Childcare Pty Ltd

Following shareholder approval of a merger between the Company and Payce Childcare Pty Ltd (PCC), and the satisfaction of all conditions precedent, the Company has now issued 64 million fully paid ordinary shares to the vendors to acquire 100% of the issued capital of PCC.

Exercise of employees options

The Company has also issued 250,000 fully paid ordinary shares pursuant to the exercise of 250,000 employee options at $0.20.

Notice Under Section 708A(5) of the Corporations Act

This notice is given under paragraph (5)(e) of section 708A of the Corporations Act.

The following securities of Early Learning Services Limited (“the Company”) were issued without disclosure to investors under Part 6D.2 of the Corporations Act:

Type Shares

Class/Description Ordinary (fully paid)

Date of Allotment 25 March 2010

Number Allotted: 64,250,000

Issue Price per Security: Non-cash, issued as consideration for acquiring 100% of the issued

capital of Payce Childcare Pty Ltd

As at the date of this notice, the Company has complied with:

a) the provisions of Chapter 2M of the Corporations Act as they apply to the Company; and

b) section 674 of the Corporations Act.

Other information which is excluded information required to be disclosed under paragraph (6)(e) of section 708A of the Corporations Act: None.

Appendix 3B

An Appendix 3B applying for quotation of these shares is attached.

ASX Announcement (ASX:ELY)

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Board Changes

Resignations

Mr Anthony Hartnell and Mr Greg Kern have resigned as directors

Appointments

Ms Jennifer Joan Hutson B.Com, LLB, FAIMM, MAICD has been appointed as non-executive Chairman of the Board

Jenny is founder and managing director of Wellington Capital Limited, a boutique Queensland based merchant bank and fund manager differentiated by its innovative style. She leads a team of 30 professionals who have acted as corporate advisers on over $1.5 billion in projects, focusing on finance and property based transactions, and offering clients a proven expertise in de-risking opportunities and innovatively structuring transactions.

Jenny has acted as corporate adviser to a wide range of projects. She has delivered/published 100 papers on corporate and commercial topics and is regularly invited as a keynote speaker at conferences.

Jenny was previously a partner of a major law firm. She has over 15 years experience in board issues involving listed companies.

Jenny holds a Bachelor of Commerce and of Law and was Queensland Businesswoman of the Year and Australian Institute of Management Owner/Manager of the Year. Wellington was awarded the Australian Business Award for Enterprise in Finance.

Mr Christopher John Scott B.Ec (Hons) has been appointed Managing Director

Chris graduated with first class honours in Economics from Latrobe University in Melbourne. He was awarded the DM Myers University Medal in 1977.

Chris has over 23 years experience in senior management positions. He relocated to Singapore in 1978 and established a road transport business (Road Express Pte Ltd) which provided refrigerated freight services from Southern Thailand to Singapore and overnight cargo express services from Singapore to Malaysia. Chris sold his share in the business to Malaysian interests in 1987.

Chris then set up American Freight Services Pte Ltd. The company was an inbound handling and marketing agent for Brennan International Transport Inc which (by 1995) had become the second largest outbound seafreight consolidator in the USA. This business was sold to Brennan International in 1998.

Chris Scott was the founder of the S8 Group (now part of Stella Travel Services).

Chris is a ‘hands on’ manager. His operational, analytical and strategic skills were critical in the selection of potential acquisitions which met the criteria to ensure the profitable expansion of the S8 Group.

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Mr Craig Graeme Chapman B. Com., A.S.C.P.A., C.S.A. has been appointed as an executive director

Craig has had 25 years experience in tourism and property sectors holding senior management roles with hotels, travel companies, theme parks, property industry with particular emphasis on consolidations over the last 10 years.

Craig has held senior finance and operational roles with Sea World, Sea World Nara Resort, Ramada Hotels & Resorts, Hayman Island, Stamford Hotels & Resorts, Islands Hotels & Resorts, Jones Lang LaSalle, Travel Online, S8 Limited, Greencross Limited, Sunkids and Ramsay & Bourne.

Craig has held senior management positions with 4 ASX listed companies, assisting in taking 2 through the IPO process.

Craig holds a Bachelor of Commerce from the University of Queensland and is an Associate CPA. He also holds a Graduate Diploma in Company Secretarial Practice and is an Associate of the Institute of Chartered Secretaries and Administrators.

Mr Brian Hilton Bailison B.Com, B.Acc (Cum Laude), ACA has been appointed as a non-executive director

Brian has over 15 years experience in finance, corporate finance and operations from senior roles in listed and unlisted businesses in South Africa and Australia, including senior positions at Rand Merchant Bank Limited (South Africa’s largest banc-assurance business), the Ivany Investment Group (diversified investment group) and Payce Consolidated Limited (diversified property group).

Brian holds Bachelor of Commerce and Bachelor of Accounting (Cum Laude) degrees from the University of Witwatersrand and is a member of the Institute of Chartered Accountants of Australia.

Appendix 3X and 3Z

Appendix 3X; Initial director’s interest notices and Appendix 3Z Final director’s interest notices are attached for each of the incoming directors and retiring directors respectively.

Managing Director’s and CEO’s Remuneration -

As required by ASX upon the appointment of a CEO, we provide the following information:

Managing Director - Mr Christopher John Scott

Term of agreement – ongoing, commenced 25 March 2010 Base salary, exclusive of superannuation, $200,000pa to be reviewed annually. Payment of termination benefit on early termination by the Company, other than for gross misconduct, equal to the base salary for three months.

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Chief Executive Officer – Mr Craig Graeme Chapman

Term of agreement – ongoing, commenced 25 March 2010 Base salary, exclusive of superannuation, $200,000pa to be reviewed annually. Payment of termination benefit on early termination by the Company, other than for gross misconduct, equal to the base salary for three months.

Early Learning Services Limited

Garry Edwards

Company Secretary

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Appendix 3B New issue announcement

+ See chapter 19 for defined terms. 24/10/2005Appendix 3B Page 1

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities

and agreement Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005.

Name of entity

EARLY LEARNING SERVICES LIMITED

ABN

95 123 828 553

We (the entity) give ASX the following information.

Part 1 - All issues You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of +securities issued or to be issued

Ordinary

2 Number of +securities issued or

to be issued (if known) or maximum number which may be issued

(a) 64,000,000

(b) 250,000

3 Principal terms of the +securities

(eg, if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)

Fully Paid F

or p

erso

nal u

se o

nly


+ See chapter 19 for defined terms. Appendix 3B Page 2 24/10/2005

4 Do the +securities rank equally in

all respects from the date of

allotment with an existing +class

of quoted +securities? If the additional securities do not rank equally, please state:

the date from which they do

the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment

the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

Yes

5 Issue price or consideration

(a) Non-cash, issued as consideration. (b) $50,000

6 Purpose of the issue

(If issued as consideration for the acquisition of assets, clearly identify those assets)

(a) Consideration for acquisition of 100% of the issued capital of Payce Childcare Pty Ltd

(b) Exercise of employee options

7 Dates of entering +securities into

uncertificated holdings or despatch of certificates

26 March 2010

Number +Class 8 Number and +class of all

+securities quoted on ASX (including the securities in clause 2 if applicable)

108,250,000 Ordinary

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+ See chapter 19 for defined terms. 1/1/2003 Appendix 3B Page 3

Number +Class 9 Number and +class of all +securities not

quoted on ASX (including the securities in clause 2 if applicable)

(a) 250,000 (b) 250,000

Employee Options exercisable at $0.20 per share. Expiry:

(a) 01/07/2011 (b) 01/07/2012

10 Dividend policy (in the case of a trust,

distribution policy) on the increased capital (interests)

Rank equally with other ordinary shares.

Part 2 - Bonus issue or pro rata issue

11 Is security holder approval required?

N/A

12 Is the issue renounceable or non-

renounceable? N/A

13 Ratio in which the +securities will be

offered N/A

14 +Class of +securities to which the offer

relates N/A

15 +Record date to determine entitlements N/A

16 Will holdings on different registers (or

subregisters) be aggregated for calculating entitlements?

N/A

17 Policy for deciding entitlements in

relation to fractions

N/A

18 Names of countries in which the entity

has +security holders who will not be sent new issue documents

Note: Security holders must be told how their entitlements are to be dealt with.

Cross reference: rule 7.7.

N/A

19 Closing date for receipt of acceptances

or renunciations N/A

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20 Names of any underwriters

N/A

21 Amount of any underwriting fee or

commission N/A

22 Names of any brokers to the issue

N/A

23 Fee or commission payable to the

broker to the issue N/A

24 Amount of any handling fee payable to

brokers who lodge acceptances or

renunciations on behalf of +security holders

N/A

25 If the issue is contingent on +security

holders’ approval, the date of the meeting

N/A

26 Date entitlement and acceptance form

and prospectus or Product Disclosure Statement will be sent to persons entitled

N/A

27 If the entity has issued options, and the

terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders

N/A

28 Date rights trading will begin (if

applicable) N/A

29 Date rights trading will end (if

applicable)

N/A

30 How do +security holders sell their

entitlements in full through a broker? N/A

31 How do +security holders sell part of

their entitlements through a broker and accept for the balance?

N/A

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+ See chapter 19 for defined terms. 1/1/2003 Appendix 3B Page 5

32 How do +security holders dispose of

their entitlements (except by sale through a broker)?

N/A

33 +Despatch date

N/A

Part 3 - Quotation of securities You need only complete this section if you are applying for quotation of securities

34 Type of securities

(tick one)

(a)

Securities described in Part 1

(b)

All other securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a) Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

35

If the +securities are +equity securities, the names of the 20 largest holders of the additional +securities, and the number and percentage of additional +securities held by those holders

36

If the +securities are +equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over

37

A copy of any trust deed for the additional +securities

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Entities that have ticked box 34(b)

38 Number of securities for which +quotation is sought

39 Class of +securities for which quotation is

sought

40 Do the +securities rank equally in all

respects from the date of allotment with

an existing +class of quoted +securities? If the additional securities do not rank equally, please state:

the date from which they do

the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment

the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

41 Reason for request for quotation now

Example: In the case of restricted securities, end of restriction period

(if issued upon conversion of another security, clearly identify that other security)

Number +Class 42 Number and +class of all +securities

quoted on ASX (including the securities in clause 38)

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+ See chapter 19 for defined terms. 24/10/2005Appendix 3B Page 7

Quotation agreement

1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may

quote the +securities on any conditions it decides. 2 We warrant the following to ASX.

The issue of the +securities to be quoted complies with the law and is not for an illegal purpose.

There is no reason why those +securities should not be granted +quotation.

An offer of the +securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

Section 724 or section 1016E of the Corporations Act does not apply to any

applications received by us in relation to any +securities to be quoted and

that no-one has any right to return any +securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request

that the +securities be quoted.

If we are a trust, we warrant that no person has the right to return the

+securities to be quoted under section 1019B of the Corporations Act at the

time that we request that the +securities be quoted.

3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

4 We give ASX the information and documents required by this form. If any

information or document not available now, will give it to ASX before +quotation of

the +securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here: Date: 26/03/2010 (Company secretary) Print name: Garry M Edwards.

== == == == ==

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Appendix 3X Initial Director’s Interest Notice

#28371v1 + See chapter 19 for defined terms. 11/3/2002 Appendix 3X Page 1

Rule 3.19A.1

Appendix 3X

Initial Director’s Interest Notice Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public. Introduced 30/9/2001.

Name of entity EARLY LEARNING SERVICES LIMITED

ABN 95 123 828 553

We (the entity) give ASX the following information under listing rule 3.19A.1 and as agent for the director for the purposes of section 205G of the Corporations Act. Name of Director JENNIFER JOAN HUTSON

Date of appointment 25 MARCH 2010

Part 1 - Director’s relevant interests in securities of which the director is the registered holder In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be disclosed in this part. Number & class of securities 647,950 ordinary

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+ See chapter 19 for defined terms. Appendix 3X Page 2 11/3/2002

Part 2 – Director’s relevant interests in securities of which the director is not the registered holder In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust Name of holder & nature of interest Note: Provide details of the circumstances giving rise to the relevant interest.

Crossborder Investments Pty Ltd

Number & class of Securities

647,950 ordinary

Part 3 – Director’s interests in contracts Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be disclosed in this part. Detail of contract

Nature of interest

Name of registered holder (if issued securities)

No. and class of securities to which interest relates

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Rule 3.19A.1

Appendix 3X



ABN 95 123 828 553

We (the entity) give ASX the following information under listing rule 3.19A.1 and as agent for the director for the purposes of section 205G of the Corporations Act. Name of Director CHRISTOPHER JOHN SCOTT


Part 1 - Director’s relevant interests in securities of which the director is the registered holder In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be disclosed in this part. Number & class of securities Nil ordinary

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Part 3 – Director’s interests in contracts Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be disclosed in this part. Detail of contract Executive Employment contract

Nature of interest

Direct



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Rule 3.19A.1

Appendix 3X



ABN 95 123 828 553

We (the entity) give ASX the following information under listing rule 3.19A.1 and as agent for the director for the purposes of section 205G of the Corporations Act. Name of Director CRAIG GRAEME CHAPMAN


Part 1 - Director’s relevant interests in securities of which the director is the registered holder In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be disclosed in this part. Number & class of securities Nil ordinary

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Part 3 – Director’s interests in contracts Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be disclosed in this part. Detail of contract Executive Employment contract

Nature of interest

Direct



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Rule 3.19A.1

Appendix 3X



ABN 95 123 828 553

We (the entity) give ASX the following information under listing rule 3.19A.1 and as agent for the director for the purposes of section 205G of the Corporations Act. Name of Director BRIAN HILTON BAILISON


Part 1 - Director’s relevant interests in securities of which the director is the registered holder In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be disclosed in this part. Number & class of securities nil

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nil


Part 3 – Director’s interests in contracts Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be disclosed in this part. Detail of contract

Nature of interest



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Appendix 3Z

Final Director’s Interest Notice

+ See chapter 19 for defined terms.

11/3/2002 Appendix 3Z Page 1

Rule 3.19A.3

Appendix 3Z

Final Director’s Interest Notice Information or documents not available now must be given to ASX as soon as available. Information and

documents given to ASX become ASX’s property and may be made public.

Introduced 30/9/2001.

Name of entity Early Learning Services Limited

ABN 95 123 828 553

We (the entity) give ASX the following information under listing rule 3.19A.3 and as agent for the

director for the purposes of section 205G of the Corporations Act.

Name of director Anthony Geoffrey Hartnell

Date of last notice 07/12/2007

Date that director ceased to be director 25/03/2010

Part 1 – Director’s relevant interests in securities of which the director is the registered holder In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be

disclosed in this part.

Number & class of securities

Ordinary Shares: 10,000 Anthony Geoffrey Hartnell & Maryed Hartnell <Hartnell

Retirement Fund A/C>)

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Appendix 3Z



Appendix 3Z Page 2 11/3/2002

Part 2 – Director’s relevant interests in securities of which the director is not the registered

holder

Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be


In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Name of holder & nature of interest Note: Provide details of the circumstances giving rise to

the relevant interest


Part 3 – Director’s interests in contracts

Detail of contract

Nature of interest

Name of registered holder

(if issued securities)

No. and class of securities to

which interest relates

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Appendix 3Z



11/3/2002 Appendix 3Z Page 1

Rule 3.19A.3

Appendix 3Z

Final Director’s Interest Notice Information or documents not available now must be given to ASX as soon as available. Information and

documents given to ASX become ASX’s property and may be made public.

Introduced 30/9/2001.

Name of entity Early Learning Services Limited

ABN 95 123 828 553

We (the entity) give ASX the following information under listing rule 3.19A.3 and as agent for the

director for the purposes of section 205G of the Corporations Act.

Name of director Gregory James Kern

Date of last notice 26/12/2009

Date that director ceased to be director 25/03/2010

Part 1 – Director’s relevant interests in securities of which the director is the registered holder In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be



NIL

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Appendix 3Z



Appendix 3Z Page 2 11/3/2002

Part 2 – Director’s relevant interests in securities of which the director is not the registered

holder

Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be


In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Name of holder & nature of interest Note: Provide details of the circumstances giving rise to

the relevant interest


NIL

Part 3 – Director’s interests in contracts

Detail of contract N/A

Nature of interest

Name of registered holder

(if issued securities)

No. and class of securities to

which interest relates

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Documents

Issue of Shares, Board Changes and CEO remuneration · CPA. He also holds a Graduate Diploma in Company Secretarial Practice and is an Associate of the Institute of Chartered Secretaries