Page 1 of 7 1 7

This page contains the Default Investment Strategy (DIS) Disclosure and Business Rules which forms part of the form. Member should read the contents in

detail before completing the form.

DIS Disclosure and Business Rules (Effective Date is 1 April 2017)

Default Option

(1) Effective from 1 April 2017, the default investment arrangement of the scheme is DIS.

(2) Members are allowed to choose separate fund choices on employer or member contribution. For unspecified part, the future contributions and accrued benefits transferred from another MPF scheme will be set to DIS.

Valid Investment Option

(1) Fund choice allocation must be an integer.

(2) Fund choice allocation must be a minimum of 5%.

(3) For new enrolment case, if the total fund choice allocation is less than or exceeded 100%, or the percentage has been amended but without member's signature, future contributions and accrued benefits transferred from another MPF scheme will be set to DIS.

(4) For fund switching case, the percentage amount for switching should be an integer percentage and the switch-in total must be 100%. If the total fund choice allocation is less than or exceeded 100%, switching percentage not an integer or the percentage has been amended but without member's signature, the existing investment choice for futurecontributions and accrued benefits transferred from another MPF scheme and/or fund allocation of the accrued benefits (if any) will remain unchanged.

(5) For switching out of partial accrued benefits to other constituent fund(s), the fund allocation for the rest of the accrued benefits in any or all of a members sub-account(s) forwhich no specified instruction has been given will remain unchanged until the member submits another valid fund switching request.

DIS Features

(1) Members are free to choose to invest in the DIS. Also, members can select a combination of DIS and other constituent funds including Principal Core Accumulation Fund(CAF) and Principal Age 65 Plus Fund (A65F).

(2) The automatic de-risking feature will only apply to members who have selected or defaulted to DIS. This feature does not apply if member has chosen the CAF and A65F as astandalone constituent fund choice.

(3) The date of annual de-risking will be on member's birthday. In case the member's birthday is not a business day, the annual de-risking day will be the following business day.For member's birthday on 29 February, the de-risking will be on 1 March if there is no 29 February for the year.

(4) For member who has selected DIS and with incomplete date of birth record:

If only the year and month of birth is available, the annual de-risking will use the last calendar day of the birth month or the following business day if such day is not a business day.

If only the year of birth is available, the annual de-risking will use the last calendar day of the year or the following business day if such day is not a business day. If the date of birth is unknown, member's accrued benefits will be fully invested in A65F without de-risking.

(5) For change of date of birth or submission of date of birth after member enrolment, an ad hoc de-risking on the DIS may be processed within 10 business days after we haveupdated the member's record.

Discontinue of De-risking

(1) The de-risking mechanism for future contributions and accrued benefits transferred from another MPF scheme under DIS will be discontinued if member has provided a valid investment instruction on future investment choice to us which does not involve any DIS selection.

(2) The de-risking mechanism on the accrued benefits under DIS will be discontinued if member has provided a valid fund switching instruction to us to switch out all the existingfund balance under DIS.

(3) For a deceased member, de-risking will be ceased once we have received proof of the death of the member. If de-risking has already been taken place between the death of the member and the time at which we received the satisfactory proof of such death, such de-risking will not be undone, although no further de-risking will take place in respectof the deceased member.

Multiple Transactions

(1) If we have received another specified instruction, including but not limited to subscription (e.g. contribution or fund transfer-in), redemption (e.g. fund transfer-out orwithdrawals) or switching instructions, the de-risking will be automatically processed on the member's birthday while the other instruction(s) will be processed within the service turnaround time.

(2) When one or more of the specified instructions, including but not limited to subscription, redemption or switching instructions, are being processed on the annual de-risking date for a relevant member, while the annual de-risking will only take place after completion of these instructions, the annual de-risking will be completed on the original de-risking date.

(3) In order to ensure that the switching instruction can be processed on or prior to the de-risking date, members should refer to the cut-off time and the required time to complete (after the date of receipt of completed instruction) as set out in the Trustee Service Comparative Platform in the MPFAs website before submitting a valid switching instruction or change of investment mandate instruction. Any valid switching instruction or change of investment mandate instruction received by the Trustee before theannual de-risking but not meeting the required timeframe may only be completed after the annual de-risking.

Transfer or Withdrawal of Accrued Benefits

(1) For transfer of accrued benefits from one account to another account within the same scheme, for example, to transfer the account balance from a terminated memberaccount to a personal account under the same scheme, it will be by way of unit transfer. Regarding future contributions and accrued benefits transferred from another MPF scheme, unless the member has provided investment instruction under the new personal account, the investment mandate will be set to DIS.

(2) For any specified instructions involving unit redemption, including but not limited to consolidation of personal accounts among different schemes, partial or full withdrawal of accrued benefits, transfer out of accrued benefits due to member termination or under employee choice arrangement, long service payment / severance payment offset and employer switching plans, all or part of the member accrued benefits including DIS will be withdrawn. The de-risking mechanism on the remaining DIS accrued benefits will be continued until the DIS account balance is zero.

(3) When an account is terminated and all the accrued benefit has been withdrawn or transferred out to another scheme, the subsequent contribution will be withdrawn to the member or transferred out to another scheme from the terminated account without allocating to any of the investment fund.

Contact Details

(1) For details of the default fund arrangement, de-risking mechanism and de-risking table, please contact our customer service hotline at 2802 2812 / 2885 8011 or visit our website at www.principal.com.hk.

Continued on next page ()

http://www.principal.com.hk/

Page 2 of 7 2 7

/

(201741)

(1) 2017 4 1

(2) //

(1)

(2) 5%

(3) /

(4) 100%100%

/()

(5) //

(1) //65

(2) //65

(3) ///229229

31

(4) /:

/65

(5) //

(1) /

(2) /

(3) // /

/

(1) /

(2) /

(3) /

(1) /

/

(2) //

/()

(3) /

(1) 2802 2812 / 2885 8011www.principal.com.hk

Continued on next page ()

http://www.principal.com.hk/

Page 3 of 7 3 7

PARTICIPATION AGREEMENT & APPLICATION FOR MEMBERSHIP - SELF-EMPLOYED PERSON

/ -

This Participation Agreement is made between Principal Trust Company (Asia) Limited (Trustee), Trustee of the Principal MPF - Simple Plan (the Plan)

and the Self-Employed Person named below. ()

I hereby apply for membership of the Principal MPF - Simple Plan on the terms and conditions of the trust deed of the Plan.

/

Contract no. (For office use only)

Section A Information of Self-Employed Person

(1) Scheme effective date

Y M D

(2) HKID card no.

Please provide a copy of your HKID card or passport.

(3) Company name (if any)

or Passport no. (for non-HKID card holders) ( ) ()

(4) Applicants name

(as appeared in HKID card) English Surname

Given Name

(Chinese

(5) Sex

(6) Date of birth

Male

Female

Y M D

(7) Residential address (In English)

Flat / Room Floor Block

Name of Building

Street No. Name of Street

Kowloon

Others

(8) Contact details

(a) Mobile phone no.

E-mail address#

(b) Tel no.

(d) Fax no.

(c)

(10) Government registration type

(11) Registration no.

(BR) Business Registration

(OT) Others

Please provide a copy of the registration certificate.

(12) Initial charge

Deducted from Contributions

Paid by the Self-Employed Person in addition to Contributions

If these boxes are left blank, it will be treated as "Deducted from Contributions".

(13) Nature of Business

(01) Catering

Financing/Banking Services

Transport

Hairdressing & Beauty

(02) Construction

(03) Manufacturing

(06) Wholesale/Retail/Import & Export//

(09) Security Guard

(04) (05) Community/Social/Personal Services

Cleaning

Others

(07) (08)

(10) (88)

Name of District Hong Kong

N.T.

Simple Plan

(9) e-Communication Subscribe to the e-Communication (email address in Contact Details above must be provided for receiving this service) ()

Remarks : e-Communication covers all documents in electronic form issued by us from time to time which include but are not limited to regulatory notifications (such as member notice, member benefit statement,

fund fact sheets, principal brochure and addendum of the principal brochure), newsletter, information booklet and promotional materials. To register for this service, you must provide your information including the

above email address for receiving this service. After registration, hard copies of the statements will no longer be sent out. Your subscription will remain effective until we receive your cancellation notice. If you change

your email address or you want to cancel this service, please inform us at least 14 days in advance by submitting your request through our website or contact our Customer Service Hotline, or complete and return the e-

Communication Registration/Cancel Form for our processing. If you have any questions related to the subscription or consent, please contact our Customer Service Hotline at 2802-2812 / 2885-8011. :

(//)

14

/2802-2812 / 2885-8011

*

# With the above information provided, you may

receive MPF information or relevant services via email

for free.

F12_SEP AGREEMENT_SIMPLE_v.1.Dec17

*CASE-SEPARATOR**DEFKBC-NBSEP**OBJTNBAPPFORM*

Page 4 of 7 4 7

(14) I wish to register Principal e-Channel Service to receive pension account balance via Principal Mobile SMS on a monthly basis in the following language. (Applicable to phone numbers starting with 5, 6 or 9 and with SMS support ONLY) eChannel (569)

Language for SMS messages : Chinese English

Note: If you have benefits to be transferred from other scheme, please complete the Scheme Member Request For Fund Transfer Form [Form MPF(S)- P(M) ].

: MPF(S) - P(M)

Section B Voluntary Contributions (If applicable)

Please select one if you would like to make additional Voluntary Contribution Contribution % or Fixed Amount

Fixed amount per contribution period

Relevant Income (subject to the maximum level of relevant income defined in MPF Ordinance) x Contribution% () x

2.5% 5% _____%

Section C Mandatory Contributions Payment Details

The payment arrangement for my Mandatory Contributions for the Accounting Period of the Scheme Effective Date:

Income Option (tick one only)

Relevant Income

Remarks

1 Equal to or greater than the statutory maximum relevant income^

^

Contribute based on the statutory maximum relevant income^.

^

No income proof is required.

2 Less than the statutory maximum relevant income

^

^

My relevant income is less than the statutory maximum relevant income ^. Please tick the appropriate box :

^

(a) My relevant income can be taken to be an amount equal to the amount states as assessable profit in my most recent notice of assessment. I attach a copy of my most recent notice of assessment for your records.

Please provide proof of income.

(b) I am unable to produce a copy of my most recent notice of assessment or the issue date of my most recent notice of assessment is more than 24 months or the latest tax assessment is being objected or under appeal. I would like to declare that my relevant income per month/per annum stated below is equal to my assessable profits for the preceding year of assessment calculated in accordance with Part IV of the Inland Revenue Ordinance (Cap.112):

HKD ___________________ per annum, equal to HKD ___________________ per month

24112IV

______________________________________

Please fill in the relevant income per annum /per month.

/

3 Less than the statutory maximum relevant income

^, and take the basic

allowance in force under Inland Relevant Ordinance as my relevant income

^

My relevant income is less than the statutory maximum relevant income ^. Profits tax in respect of my business is payable under the Inland Revenue Ordinance (Cap. 112) in relation to this Accounting Period. I am unable to produce a copy of my most recent notice of assessment or other evidence of my relevant income and I would not make any declaration on my relevant income for this Accounting Period. My relevant income can be taken to be equal to the basic allowance in force under the meaning of Section 28 of the Inland Revenue Ordinance (Cap.112).

^112> (112) 28

Contribution based on 5% of basic allowance.

4

Loss

I declare that my business(es) sustained a net loss in the latest financial period, which is calculated in accordance with Part IV of the Inland Revenue Ordinance (Cap. 112). 112IV

Please provide the relevant Statement of Loss as evidence.

Payment mode

On a monthly basis

On a yearly basis

Contribution Payment Method

Direct Debit (please complete Direct Debit Authorization Form) () Payment by cheque (please make cheque payable to PTC - Simple Plan)( - )

Remarks :

As the setup of autopay would take approximately 2 months to complete, please attach a cheque together with this application form for payment of the first two months of contributions. The two months of contributions will be used to purchase units using the price(s) available on the same valuation date.

222

^ The statutory maximum relevant income is prescribed by law which is subject to change from time to time

Page 5 of 7 5 7

Section D Investment Mandate

Key Features and Special Note to DIS : DIS is not a fund, it is a strategy that uses two constituent funds, namely the CAF and A65F to automatically reduce the risk exposure as the member approaches retirement age.

6 5 / /

Members are allowed to choose separate fund choices on employer or member contribution. For unspecified part, the future contributions and accrued benefits transferred from another MPF

scheme will be set to DIS. // Members are free to choose to invest in the DIS. Also, members can select a combination of DIS and other constituent funds including CAF and A65F. /

/65 The automatic de-risking feature will only apply to members who have selected or defaulted to DIS. This feature does not apply if member has chosen the CAF and A65F as a standalone

constituent fund choice. //65

(for amounts relating to Mandatory Contributions, Voluntary Contributions and benefits transferred from other scheme, other than amounts transferred within Principal MPF Simple Plan) ( )

Name of Constituent Fund

Fund Code

Member Contribution(Note 1) (Applicable to transfer-in accrued benefits

and new contribution)

/(1)

()

(1) For amount relating to Member Contribution, a

member may invest in any Constituent Funds with a minimum of 5% in each selected Constituent Fund.

//

5%

(2) The specified percentage should be in whole number.

(3) The contribution percentage must add up to 100% for Member Contribution.

/

Default Investment Strategy (DIS)

DIS

Principal Age65 Plus Fund

65 A65F

Principal Core Accumulation Fund

CAF

Principal MPF Conservative Fund

- MCP

Principal Dynamic Global Bond Fund

MGB

Principal Stable Fund

MST

Principal Balanced Fund

MBA

Principal Growth Fund

MGR

Principal Dynamic Hong Kong Equity Fund

MHK

Principal Dynamic Asia Pacific Equity Fund

MAP

Principal Dynamic Global Equity Fund

MGE

Total

100%

Notice: If you leave column blank or has not given an instruction according to 1 - 3 above, your instruction will be considered invalid, unclear, incomplete instructions. In this case or

amendments which are not properly initialed in respect of all or any percentage of Member Contribution, the Trustee will invest such amounts with missing and / or incomplete instructions

(net of charges) in the default fund designated by the Trustee with the agreement of the Sponsor from time to time currently the Default Investment Strategy, if you would like to change

the investment mandate or switch out the accrued benefits invested in the default fund to other fund(s), please complete and submit the Change In Investment Form. Amounts

transferred within Principal MPF - Simple Plan will be processed by unit transfer, any units invested in Constituent Fund(s) immediately before the transfer will continue to be invested in

the same Constituent Fund(s) under the new account.

/ 1 - 3

/

Note 1: Applicable to accrued benefits transferred from other scheme and contribution made to the Plan by the member (including both Mandatory and Voluntary Contributions).

1: /()

Page 6 of 7 6 7

Personal Information Collection Statement

The provision of information and other personal data by you is on a voluntary basis. However, failure to provide us with the information and other personal data as requested may result in your

application/instruction not being able to be processed. The information and other personal data provided by you will only be accessed and handled by Principal Trust Company (Asia) Limited (the Trustee and

Administrator), Principal Insurance Company (Hong Kong) Limited (the Sponsor), AXA China Region Insurance Company Limited and its Subsidiary Intermediary (the Intermediary) (collectively, the Entity). The information and other personal data collected from you from time to time will be used for the purposes of:

(1) processing your application for participation in our Principal MPF Scheme(s) (the MPF Scheme);

(2) administering and managing your contributions and accrued benefits under the MPF Scheme;

(3) carrying out your instructions or responding to any enquiries given or purporting to be given by you or on your behalf;

(4) direct marketing of mandatory provident fund (MPF) products, retirement schemes, MPF related services and products of the T rustee and the member company(ies) (as defined below);

(5) providing MPF related services;

(6) maintaining statistical data and providing a database for product and market research;

(7) compliance with applicable laws and regulations; and

(8) any other purposes relating or incidental to the above.

Your personal data (name, contact details and account records) may be used for direct marketing of MPF products, retirement schemes, MPF related services and products of the Trustee and the member

company(ies) only with your consent. If you do not wish your personal data being used for direct marketing as described herein, you should indicate your objection by tickin g ( ) the relevant box under

Declaration.

Your personal information may be transferred/disclosed to the following parties (whether within or outside the Hong Kong Special Administrative Region) for any of the purposes stated above:

(1) any agent, contractor, third party service provider, or any company(ies) within the same group of companies to which the Trustee belongs (the member company(ies)) which provides administrative,

telecommunications, computer, marketing, professional or other services to the Trustee in connection with their business oper ations;

(2) any person to whom the Trustee is under an obligation to make disclosure under the requirements of any law binding on the Trustee or any of the member companies or under and for the purposes of any

guidelines issued by regulatory or other authorities with which the Trustee or the member companies are expected to comply; a nd

(3) any actual or proposed assignee of the Trustee or participant or sub-participant or transferee of the rights of the Trustee in respect of the client.

Under the Personal Data (Privacy) Ordinance, you have a right to request access to and correction of any of your personal inf ormation held by the above Entity and not to use your personal data for direct

marketing purpose as stated above. The aforesaid requests can be made in writing to:

Data Protection Officer

Principal Trust Company (Asia) Limited

30/F, Millennium City 6,

392 Kwun Tong Road,

Kwun Tong, Kowloon, Hong Kong

If you have any questions or wish to know more about our privacy policy, please send your enquiry to the above address or contact us at 2802 2812 / 2885 8011.

/()(

) () () ()

(1) ()

(2)

(3)

(4) ()

(5)

(6)

(7)

(8)

()

()

/()

(1) ()

(2)

(3)

()

()

392630

2802 2812 / 2885 8011

Declaration

I AGREE THAT: - I agree to participate in the Plan and comply any regulatory requirements of a self-employed person and with the terms and conditions of the trust deed of the Plan, as amended from

time to time; - my participation shall take effect from the effective date as specified by the Trustee; - I will make Contributions as required under the terms and conditions of the trust deed of the Plan, as amended from time to t ime; - I will do all things necessary and supply such information to the Trustee as it shall require to facilitat e the administration of the Plan; - I have read, fully understood the Offering Document of the Plan and agree to pay the relevant fees, charges and deposits as r equired under the Plan.

(1) I hereby acknowledge that I have read and fully understand the offering document and all relevant information in connection with this Application, and all the information and documents

submitted with this Application are true, accurate and complete. (2) I accept the responsibility for the decisions I have made on this Application and acknowledge that the Entity shall not be liable for any loss due to an inappropriate choice made by me. (3) I hereby authorize the Trustee / Administrator to accept and act on facsimile instructions and agree to indemnify the Truste e / Administrator against any action, proceeding, claim, loss,

damage, cost or expense which may be brought against the Trustee / Administrator or suffered or incurred by the Trustee / Adm inistrator arising either directly out of or in connection with the Trustee / Administrator accepting facsimile instructions and acting thereon, whether or not the same are confirmed by me in writing, unless due to th e wilful default or gross negligence of the Trustee / Administrator. The Trustee / Administrator has the right to determine which forms or other documents of instructions may or may not be accepted by facsimile.

(4) I agree the Entity to record all or any of my telephone conversation(s) with the Entity.

(5) I hereby acknowledge that I have read and fully understood the content of the Personal Information Collection Statement as attached hereto. (6) I understand that the Trustee and the member company(ies) intends to use my personal data (name, contact details and account records) for direct marketing of mandatory provident fund (MPF) products, retirement schemes, MPF related services and products as stated in the Personal Information Collection Stat ement. I also understand that the Trustee and the member company(ies) cannot make such use of my personal data without my consent and will cease to use my personal data for direct marketing purpose upon my written or verbal request. I hereby express my consent to the use of my personal data (as provided/updated by me from time to time) by the Trustee and the member company(ies) (and their agents) for the aforesaid direct marketing purpose. I further understand that should I find such use of my personal data not acceptable, I should indic ate my objection by ticking () the box below.

I object to the proposed use of my personal data in direct marketing.

Page 7 of 7 7 7

-

-

-

-

-

(1)

(2)

(3) / / / (

)/

(4)

(5)

(6) () ()

.

To be SIGNED by Self-Employed Person

Self-Employed Person's Name (in BLOCK LETTERS) Self-Employed Person's Signature Date

This Participation Agreement is issued and shall be read in conjunction with the offering document.

Terms defined in the trust deed of the Plan shall have the same meanings when used in this Participation Agreement.

(To be completed by MPF Intermediary )

Type Agent Others

Broker/IFA, Name of Company

Agent/Broker/IFA Code

MPF Intermediary Details

Name Signature

Contact Phone No.

Individual Sales Code (For IFA only) ()

(For office use only )

SIGNED FOR AND ON BEHALF OF PRINCIPAL TRUST COMPANY (ASIA) LIMITED ()

Authorized officer Date

Trustee & Administrator: Principal Trust Company (Asia) Limited : ()

Sponsor: Principal Insurance Company (Hong Kong) Limited :

30/F, Millennium City 6, 392 Kwun Tong Road, Kwun Tong, Kowloon, Hong Kong 392630

Customer Service Hotline : (852) 2802 2812 or (852) 2885 8011 Employer Hotline : (852) 2519 1188 Fax :(852) 2827 1707 Website: : www.principal.com.hk

fill_1: undefined: fill_3: fill_4: fill_6: undefined_2: fill_7: undefined_3: undefined_4: Given Name: undefined_5: fill_13: fill_11: b Tel no: fill_15: undefined_6: d Fax no: fill_19: fill_8: undefined_7: fill_3_2: fill_4_2: fill_5: fill_6_3: fill_7_3: fill_8_2: fill_9_2: fill_10: fill_11_2: fill_12: fill_13_2: SelfEmployed Persons Name in BLOCK LETTERS: Date: undefined_8: undefined_9: fill_10_2: fill_11_3: Text1: Text2: Check Box3: Check Box4: Text5: Text6: Check Box8: Check Box9: Check Box10: Check Box11: Check Box12: Check Box13: Check Box14: Check Box15: Check Box16: Check Box17: Check Box18: Check Box19: Check Box20: Check Box21: Check Box22: Check Box23: Check Box24: Check Box25: Check Box26: Check Box27: Check Box28: Check Box29: Check Box30: Check Box31: Check Box32: Check Box33: Check Box34: HKD: per annum equal to HKD: Check Box35: Check Box36: Check Box37: Check Box38: Check Box39: Check Box40: Check Box41: Check Box42: Check Box43: Check Box44: Text45: Text46: Check Box47: Check Box48: Check Box49: Check Box50: fill_14: Text7: Text51: fill_8_3: