The minimum ad hoc recurring payment increase is R200 per month - subject to the restrictions under Section 54 of the Long-Term Insurance Act.

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1 For intermediaries June 2017 Cumulus Investments with Recurring Payments Summary of technical information Cumulus Investments is an endowment with an investment term of 5 to 10 years. It is designed to pay a lump sum after the initial term or on death of the last surviving life insured in return for recurring monthly or annual payments. Initial term Minimum: Maximum: 5 years 10 years After the initial term has expired, the term is open-ended. This means that the plan will not automatically be paid out when the initial term has expired, but that the plan will continue until the client terminates it, or until the death of the last surviving life insured whichever comes first. Recurring payments Minimum: R1 000 per month An additional allocation applies to each payment of R2 500 per month or more. The additional allocation depends on the negotiated commission percentage. For example: For every R5 000 per month, we invest R5 100 i.e. an extra 2% if 100% commission is negotiated or R5 350 i.e. an extra 7% if 0% commission is applicable. Monthly payments Percentage invested R1 000 or more, but less than R % - 105% R2 500 or more, but less than R % - 106% R5 000 or more 102% - 107% The relevant additional allocation percentages are also applicable once the recurring payments reaches R2 500 and R5 000 per month due to contractual payment increases or ad hoc recurring payment increases. The minimum ad hoc recurring payment increase is R200 per month - subject to the restrictions under Section 54 of the Long-Term Insurance Act. The product is available for monthly and annual frequencies only. Recurring payments can be made by debit order or stop order. Contractual annual payment increases on this plan is optional. Sanlam is a Licensed Financial Services Provider.

2 No one-off payments are allowed on this product. The Cumulus Investments product with product code E40 is available for one-off payments only. Charge structure The Effective Annual Cost (EAC) measure is an Association for Savings and Investment South Africa (ASISA) Standard that shows the extent to which the investment return on a financial product will be reduced if it is terminated. The lower the total EAC number, the more cost-effective the investment is. Plan charge The plan charge is currently R15.50 per month. It is deducted monthly from the fund value by selling units to the value of this fee. Payment charge only for stop order payments Only if the payments are made by stop order a payment charge of 3.5% of each recurring payment is deducted before the payment is invested. Variable marketing and administration charge The charge is a percentage of the fund value and is calculated on a monthly basis, which means it is divided by 12. It is deducted monthly from the fund value by selling units to the value of the charge. This charge reduces as the fund value increases to a higher fund value band. Fund value band First R Next R Next R Excess above R1m Percentage of fund value 3.30% per annum 2.70% per annum 2.50% per annum 2.30% per annum A percentage of this charge will be refunded on the plan in the form of a loyalty bonus, therefore lowering the impact of this charge. Fixed marketing and administration charge This annual charge is a percentage of the fund value and it may differ for different investment funds. It is taken into account when we calculate the daily unit price of each investment fund. A percentage of this charge will be refunded on the plan in the form of a loyalty bonus, therefore lowering the impact of this charge. Sanlam Escalating funds: Investment guarantee charge This charge is 0.80% per annum only if a Sanlam Escalating fund forms part of the plan. It is a percentage of the fund value and taken into account when we calculate the daily unit price of each Sanlam Escalating fund.

3 Investment management charges An asset manager charges fees for investment research and selecting the underlying assets for a specific investment fund. These fees are taken into account in the calculation of the daily unit price of each investment fund. The total investment cost (TIC) consists of the total expense ratio (TER) plus total cost ratio (TCR). The total investment cost used is after any rebates received from an asset manager and Sanlam Reality discount, if applicable, have been deducted. Loyalty bonus Rebates (referred to as a loyalty bonus) for the variable as well as fixed marketing and administration charge are added to the fund value by adding unit to the plan on certain plan anniversaries, as well as at death, or termination on or after the option date. The amount of the loyalty bonus is calculated as a percentage of the charges above deducted from the plan since the date on which the previous loyalty bonus was added, or since the 5 th plan anniversary from the start date for the 1 st loyalty bonus. The rebate percentage for each relevant plan anniversary depends on the initial term at the start of the plan: Plan anniversary from start date Initial term: 5 years Initial term: 6 10 years - 5 years 35% 10% - 10 years 57.5% 67.5% - Every 5 years thereafter 67.5% 67.5% If the termination date of any of the above termination events falls between any of the plan anniversaries in the table, the next plan anniversary in the table will be used to determine the percentage of the rebate. Alteration charge An alteration charge is not applicable if payments are reduced or stopped. For the following alterations within the 1 st 2 years only of the initial term, the fund value will be reduced by the amount paid to the plan holder and by the alteration charge: - Termination of the plan - A loan against the plan - An ad hoc withdrawal from the plan The alteration charge percentage of the reduction of the fund value during the 1 st plan year is 8% and during the 2 nd plan year it is 4%. Transaction charge For any of these alterations during the initial term, a transaction charge is levied and calculated as the smaller of R300 and 1% of the fund value.

4 Investment funds Availability Any investment may be closed at any time. This may occur if, for example, legislation changes or assets become unavailable or it is in our opinion no longer prudent to invest in the specific investment fund. If a plan is affected, we will request the plan holder to choose another investment fund allowed at that stage. Switches and redirections The client may at any time switch between any of the investment funds available for this product. The first four switches in a plan year are free of charge. For each subsequent switch transaction in that plan year, a transaction charge of R700 applies. Best of breed investment funds Some of the leading investment funds are available making an appropriate asset allocation easier. A number of these funds include a built-in unit price guarantee that allows for protection in uncertain times. Any combination of up to ten of the following investment funds may be selected to invest: Sanlam Escalating funds explained These funds include a built-in guarantee that will ensure that the unit price of a Sanlam Escalating fund is always at least 80% of the highest unit price it has ever reached since the original start date of that Sanlam Escalating fund. A Sanlam Escalating fund invests in a combination of the corresponding unit trust and cash. Accordingly, the investment return on a Sanlam Escalating fund is a combination of the investment returns on the corresponding unit trust and cash, and it can differ substantially from that of the corresponding unit trust. The Sanlam Escalating funds reduce the volatility of returns, compared to the corresponding unit trust, and aims to limit capital losses in a declining market, while also benefiting from rising markets. The allocation between the corresponding unit trust and cash is not fixed, but varies according to market conditions: When the market value of the corresponding unit trust decreases: The percentage of assets allocated to cash will be increased to protect the capital value. When the market value of the corresponding unit trust increases: The percentage of assets allocated to the corresponding unit trust will be increased, allowing the Sanlam Escalating fund to benefit from a rising market. In market downturns the cash component of a Sanlam Escalating fund may increase substantially and a Sanlam Escalating fund may invest the bulk of its assets in cash. Therefore it is not unlikely that the cash component of a Sanlam Escalating fund may exceed 50% from time to time. In extreme downturns, a Sanlam Escalating fund could become 100% invested in cash. However, interest earned on the cash coupled with a recovery in the market will result in a Sanlam Escalating fund gradually switching out of cash and into the corresponding unit trust again.

5 Sanlam funds Risk level or asset class 773 SATRIX Balanced Index Fund 1 Moderately Aggressive 781 SIM Active Income Fund Conservative 774 SIM Balanced Fund Moderate 776 SIM General Equity Fund Equity 872 SIM Inflation Plus Fund 1 Cautious 777 SIM Money Market Fund Cash 817 SIM Managed Conservative Fund of Funds 1 Conservative 818 SIM Managed Cautious Fund of Funds 1 Cautious 819 SIM Managed Moderate Fund of Funds 1 Moderate 820 SIM Managed Moderately Aggressive Fund of Funds 1 Moderately Aggressive 821 SIM Managed Aggressive Fund of Funds 1 Aggressive 775 SIM Value Fund Equity 814 Vesting Bonus Fund 1 Cautious 815 NUR Balanced Fund 3 Moderate Sanlam Escalating funds Risk level 854 Sanlam Escalating - Diversified Wealth Builder 1 Moderate 786 Sanlam Escalating - SIM Balanced Fund Cautious 787 Sanlam Escalating - SIM General Equity Fund Moderately Aggressive 783 Sanlam Escalating - Allan Gray Balanced Fund Cautious 782 Sanlam Escalating - Allan Gray Equity Fund 1 Moderately Aggressive 790 Sanlam Escalating - Allan Gray Orbis Global Equity Feeder Fund 1 Moderately Aggressive 791 Sanlam Escalating - Coronation Balanced Plus Fund P Cautious 792 Sanlam Escalating - Coronation Equity Fund P 1 Moderately Aggressive 784 Sanlam Escalating - Investec Equity Fund 1 Moderately Aggressive 788 Sanlam Escalating - Investec Opportunity Fund 1 Cautious 785 Sanlam Escalating - Nedgroup Investments Rainmaker Fund 1 Moderately Aggressive External funds Risk level 794 Absa Access BCI Balanced Fund 2 Moderate 795 Absa Access BCI Cautious Fund 2 Cautious 793 Absa Access BCI Growth Fund 2 Moderately Aggressive 780 Absa Absolute Fund 1, 2 Cautious 778 Absa Balanced Fund 1,2 Moderate 779 Absa Select Equity Fund 1,2 Equity 764 Allan Gray Balanced Fund Moderate 763 Allan Gray Equity Fund Equity 762 Allan Gray Orbis Global Equity Feeder Fund 1 Equity 765 Allan Gray Stable Fund Cautious 811 Ashburton Balanced Fund 1,2 Moderate 760 Coronation Balanced Plus Fund P Moderate 766 Coronation Equity Fund P Equity 761 Coronation Money Market Fund P 1 Cash 759 Coronation Property Equity Fund P Property 771 Coronation Strategic Income Fund P Conservative 769 Coronation Top 20 Fund P 1 Equity 767 Investec Equity Fund 1 Equity 772 Investec Opportunity Fund 1 Moderate 770 Investec Property Equity Fund 1 Property 768 Nedgroup Investments Rainmaker Fund Equity

6 Not available for tax-paying institutions For accredited brokers only Shariah compliant Sanlam Reality membership If the plan holder is a Sanlam Reality member, and depending on the Sanlam Reality option and tier status, the plan holder may qualify for a discount on the fee at benchmark if invested in any of the Sanlam Investments funds in bold. Any such discount will be added monthly to the fund value of the plan by adding units to the value of the discount. Sanlam Reality Tier status Percentage discount on fee at benchmark Bronze 15% Silver 50% Gold 100% General information Age at entry Minimum: 1 age next birthday Maximum: 90 age next birthday Availability of this product - Individuals, a trust of which all the beneficiaries are individuals or a tax-paying institution may invest in this product. - New business only i.e. no continuations or conversions to this product are allowed. - Cumulus Investments for one-off payments cannot be combined with this product and vice versa. Nominee to become the new plan holder A nominee i.e. an individual, a trust of which all the beneficiaries are individuals, or a taxpaying institution, may become the new plan owner after the death of the plan holder, provided the existing plan holder is not the only life insured. Cessions A collateral or outright cession to another individual, a trust of which all the beneficiaries are individuals, or a taxpaying institution, is allowed on this plan. Surrender, withdrawal and loans Subject to the restrictions under Section 54 of the Long-term Insurance Act, the following apply during an initial restricted period of 5 years: The surrender or loan value is limited to the payment amounts plus 5% interest compounded annually. The balance plus investment growth will be paid at the end of the restricted period of 5 years. Only one partial withdrawal and one loan are allowed. If a partial withdrawal has been made, the plan may not be terminated during the restricted period. After the initial term has expired, the term is open-ended. The client may apply to make regular withdrawals during the open-ended period. Regular withdrawals can however not be made together with recurring payments on the plan.

7 Intermediary remuneration The following applies to new business and increases whether at the client s request or due to contractual annual payment increases on the plan. The maximum commission payable is 5% of each recurring payment. Before option date i.e. during initial term - Up to 50% (i.e. 2.5%) may be paid upfront as initial or discounted commission. - The amount payable upfront is calculated as the amount equal to the negotiated percentage of the recurring payment, discounted at 6% per annum over the discount term which is equal to the term to option date. - Up to 5% of each recurring payment may be paid as payment-based commission, subject to the level of the negotiated initial commission. The initial commission vests over 60 months as follows: None in the first six months after the start date or increase, 7/60ths of the initial commission in the 7th month after the start date or increase, and thereafter 1/60th for each further month after the start date or increase. The initial commission percentage negotiated at the start of the plan cannot be renegotiated afterwards. No initial commission on recurring payments is allowed in the case of a replacement; only payment-based commission. After option date i.e. during open-ended period - Initial commission not allowed. - Only payment-based commission equal to the percentage negotiated initial commission and the last negotiated payment-based commission before option date, subject to a maximum of 5% of each recurring payment. - A fund-based fee of up to 1.14% per annum (including VAT, if applicable) of the fund value may be negotiated, subject to the level of the payment-based commission. E.g. if 5% payment-based commission is negotiated, no fund-based fee will be allowed. Product code E43 Application form AEB2099 Comprehensive details are available in the Sanlam Savings technical guide for recurring payments as well as the new business quotation and plan contract. This document is part of Sanlam s on-going support to intermediaries. It does not constitute advice by Sanlam.