APPENDIX 7 - HUD

Kistler WorldwideWetzlar (Ger)Kistler Automotive GmbHCompetence Center Wetzlar35 EmployeesStuttgart (Ger)Kistler Instrumente GmbH64 EmployeesLorch (Ger)Kistler Lorch GmbH95 EmployeesMünchen (Ger)Kistler Automotive GmbHCompetence Center München23 EmployeesDetroit (USA)Kistler Instrument Corp.24 EmployeesHong Kong (HK)Kistler China50 EmployeesBuffalo NY (USA)Kistler Instrument Corp.85 EmployeesO Product CenterO Continental Head OfficesWinterthur (CH)Kistler Instrumente AG460 EmployeesKistler – Your Partner for Automotive Research and Testing / Wus / April 2, 2012Stuttgart (Ger)Kistler Automotive GmbHCompetence Center Schönaich74 EmployeesKistler Group Companies in 25 andDistributors in 30 countries3

4615.1 REV-1 – APPENDIX 7Q. Automobile Liability• Coverage to include all owned vehicles, as well as non-owned and/or hired vehicles• $300,000 for one person and $500,000 for more than one person• $100,000 against claims for damage to property• Or $1,000,000 combined single limitR. Aviation/Helipad• If owner operates aircraft or permits helicopters to land and take off from the hospital,then insurance is required in an amount satisfactory to the independent insuranceconsultantS. Construction Endorsements• Required for projects having construction such as roof replacement or reconstructionafter an insured loss• Coverage and deductible same as Commercial PropertyT. Contract Services Providers• Mortgagor must use its own judgment in determining whether the activities of aprovider of contract services are sufficiently hazardous to warrant an insurancerequirement• Affected contractors should provide mortgagor with insurance certificates naming themortgagor, the mortgagee, and HUD as additional insureds• Unusual perils inherent in the nature of the work or service to be performed must becovered• Insurance should include generally accepted coverage such as commercial liability,performance bond, workers compensation, vehicle liability, blanket fidelity bond, andbuilder’s risk3. INSURANCE/COVERAGE REQUIREMENTS FOR NEW CONSTRUCTION/REHABILITATIONPROJECTSA. Builder’s Risk - Owner• Owner should procure the policy• 100% replacement cost• Maximum deductible equal to 1% of hard costs of construction subject to approval byindependent insurance consultant• “All Risk” of physical loss including earthquake and flood if applicable• Sublimits for Transit and Off Site Storage equal to maximum value of buildingmaterials, subject to these exposures• Coverage for soft costs and business income in an amount acceptable to Lender,HUD, and/or an independent insurance consultant• To be replaced by Commercial Property insurance as buildings are completed• Coverage includes loss resulting from faulty workmanship or faulty materials or errorin designINSURANCE REQUIREMENTS - 6

4615.1 REV-1 – APPENDIX 7I. Design and Inspecting Architect Liability• Minimum Limits: $1,000,000 per occurrence and $2,000,000 aggregate• If policy is written on a per occurrence basis, coverage must be maintained for theduration of the project• If policy is written on a claims made basis, coverage must be maintained for theduration of the project plus 5 years post construction. Evidence must be provided toLender and HUD (Office of Architects and Engineers) annually.• If design and inspecting architect cannot provide adequate limits, the owner maypurchase an Owners Protective Professional Indemnity policy for the balance of thelimit. Policy to be in force for the duration of the project, plus a 5 year extendedreporting period.INSURANCE REQUIREMENTS - 8