portions of block 198 from 4 tracts/Texas Parks and Wildlife/State of Texas to the City of La Porte Development Corporation

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File No. 1229-08-1546 Policy No. 7222143-3475 SCHEDULE B EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) that arise by reason of the terms and conditions of the leases and easements, if any, shown in Schedule A, and the following matters: 1. The following restrictive covenants of record itemized below (the Company must either insert specific recording data or delete this exception): ITEM 1 OF SCHEDULE B IS HEREBY DELETED IN ITS ENTIRETY. 2. Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping of improvements. 3. Homestead or community property or survivorship rights, if any, of any spouse of any insured. 4. Any titles or rights asserted by anyone, including but not limited to, persons, the public, corporations, governments or other entities. a. to tidelands, or lands comprising the shores or beds of navigable or perennial rivers and streams, lakes, bays, gulfs or oceans, or b. to lands beyond the line of the harbor or bulkhead lines as established or changed by any government, or c. to filled-in lands, or artificial islands, or d. to statutory water rights, including riparian rights, or e. to the area extending from the line of mean low tide to the line of vegetation or the right of access to that area or easement along and across that area. 5. Standby fees, taxes and assessments by any taxing authority for the year 2009 and subsequent years; and subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or ownership, but not those taxes or assessments for prior years because of an exemption granted to a previous owner of the property under Section 11.13, Texas Tax Code, or because of improvements not assessed for a previous tax year. 6. The following matters and all terms of the documents creating or offering evidence of the matters (The Company must insert matters or delete this exception.): A. Rights of Parties in possession. B. Subject to any visible or apparent easements and/or rights of way on, over under or across the subject property, the existence of which would appear on a current survey. C. Possible easement across Lot 26, Block 198, in favor of Houston Lighting & Power Company, as disclosed on an unrecorded plat of Block 198. (MAY BE REMOVED UPON RECEIPT OF SURVEY REFLECTING AND DENOTING SAME DOES NOT APPLY.) D. The terms, conditions and stipulations of the La Porte Area Water Authority created by Ordinance No. 1295, a copy of which has been filed for record under Harris County Clerk's File No(s). L826773. FORM T1: Owner's Policy of Title Insurance Page 3 of 5 1229-08-1546