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Order No.: 80300470 Policy No.: CNJP-1597-432423 <br />This policy does not insure against loss or damage (and the Company will not pay costs, attorneys, fees or expenses) <br />which arise by reason of: <br />PART I <br />1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies <br />taxes or assessments on real property or by the public records. <br />Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether <br />or not shown by the records of such agency or by the public records. <br />2. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by <br />an inspection of the land or by making inquiry of persons in possession thereof. <br />3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records. <br />4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct <br />survey would disclose, and which are not shown by the public records. <br />5. (a) Urpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance <br />thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) <br />are shown by the public records. <br />SCHEDULE B <br />PART II <br />1. 1996-97 taxes a lien, not yet due or payable. <br />2. The lien of supplemental taxes, if any, assessed pursuant to the <br />provisions of Chapter 3.5 (commencing with Section 75) of the <br />Revenue and Taxation Code of the State of California. <br />3. Easement for sanitary sewers and appurtenances thereto, granted to <br />The City of San Leandro by instrument recorded August 2, 1955, <br />Series No. AK-82510, Book 7738, Page 69. <br />(Affects a northwesterly portion.) <br />4. Easement for railroad purposes and appurtenances thereto, granted <br />to Southern Pacific Company, a corporation by instrument recorded <br />July 11, 1963, Series No. AU-114822, Reel 933, Image 601. <br />(Affects a northwesterly portion.) <br />A portion of said easement was eliminated by Quitclaim Deed <br />recorded December 23, 1964, Series No. AW-205288, Reel 1399, Image <br />58. <br />Page 4 <br />