ORDER CALLING CONFIRMATION, DIRECTORS AND TAX BOND ELECTION

WHEREAS, The Woodlands Road U t i l i t y D i s t r i c t No. 1, o f Montgomery County, Texas ( t h e " D i s t r i c t " ) , was h e r e t o f o r e d u l y c r e a t e d by Chapter 816, Acts o f t h e 73rd Texas L e g i s l a t u r e , Regular Session, 1991 ( h e r e i n t h e " A c t " ) , e f f e c t i v e June 16, 1991, and t h e temporary d i r e c t o r s o f t h e D i s t r i c t a p p o i n t e d by the A c t have met and organized and have q u a l i f i e d t o serve as d i r e c t o r s o f t h e D i s t r i c t by t a k i n g t h e oath and f u r n i s h i n g t h e q u a l i f i c a t i o n statement r e q u i r e d by law; and WHEREAS, i t i s now necessary t o c a l l an e l e c t i o n f o r t h e purpose o f c o n f i r m i n g t h e c r e a t i o n and e s t a b l i s h m e n t o f t h e District and f o r t h e purpose o f t h e e l e c t i o n o f f i v e (5) permanent d i r e c t o r s f o r t h e D i s t r i c t ; and WHEREAS, A r t i c l e 6 6 7 4 r - l , Vernon's Texas C i v i l Statutes, a u t h o r i z e s t h e D i s t r i c t t o i n c l u d e a t a x bond p r o p o s i t i o n a t t h e c o n f i r m a t i o n and d i r e c t o r ' s e l e c t i o n ; and WHEREAS, t h e Board of Directors wishes t o secure a u t h o r i z a t i o n from t h e q u a l i f i e d v o t e r s o f t h e D i s t r i c t t o issue and s e l l $44,200,000 u n l i m i t e d t a x bonds o f t h e D i s t r i c t a t t h e maximum l e g a l i n t e r e s t r a t e as may be a u t h o r i z e d by law and i n e f f e c t a t t h e t i m e o f issuance o f each issue o r s e r i e s o f s a i d bonds; and WHEREAS, t h e Board of Directors wishes t o secure a u t h o r i z a t i o n from t h e q u a l i f i e d v o t e r s o f t h e D i s t r i c t t o issue and sell $44,200,000 u n l i m i t e d t a x r e f u n d i n g bonds o f t h e D i s t r i c t a t t h e maximum l e g a l i n t e r e s t r a t e as may be a u t h o r i z e d by law and i n e f f e c t a t t h e t i m e o f issuance o f each issue o r s e r i e s o f s a i d r e f u n d i n g bonds, f o r t h e purpose o f r e f u n d i n g , by any means now o r h e r e a f t e r a u t h o r i z e d by law, a l l o r any p o r t i o n of any bonds o r r e f u n d i n g bonds o f t h e D i s t r i c t payable i n whole or i n p a r t from t a x e s ; and WHEREAS, t h i s Board o f D i r e c t o r s wishes t o proceed w i t h t h e o r d e r i n g o f s a i d e l e c t i o n s ; Now, T h e r e f o r e , BE I T ORDERED BY THE BOARD OF DIRECTORS OF THE WOODLANDS ROAD UTILITY DISTRICT NO. 1, OF MONTGOMERY COUNTY, TEXAS, THAT: S e c t i o n 1; The m a t t e r s and f a c t s s e t o u t i n t h e preamble o f t h i s o r d e r a r e hereby found and d e c l a r e d t o be t r u e and complete. S e c t i o n 2: A s p e c i a l e l e c t i o n s h a l l be h e l d w i t h i n t h e D i s t r i c t on January 18, 1992, between t h e hours o f 7:00 a.m. and 7:00 p.m., a t 9700 Grogans M i l l Road, The Woodlands, Montgomery County, Texas, a t which e l e c t i o n t h e r e s h a l l be s u b m i t t e d t h e

q u e s t i o n s o f t h e c o n f i r m a t i o n o f t h e c r e a t i o n and e s t a b l i s h m e n t of t h e D i s t r i c t by t h e L e g i s l a t u r e , t h e e l e c t i o n o f f i v e (5) permanent d i r e c t o r s o f t h e D i s t r i c t , t h e issuance o f bonds and t h e l e v y and c o l l e c t i o n o f taxes i n payment t h e r e o f , and t h e issuance o f r e f u n d i n g bonds and t h e l e v y and c o l l e c t i o n o f taxes i n payment t h e r e o f , and a t which the f o l l o w i n g p r o p o s i t i o n s s h a l l be s u b m i t t e d : PROPOSITION I SHALL THE CREATION OF THE WOODLANDS ROAD UTILITY DISTRICT NO. 1, OF MONTGOMERY COUNTY, TEXAS, BE CONFIRMED? PROPOSITION I I SHALL THE BOARD OF DIRECTORS OF THE WOODLANDS ROAD UTILITY DISTRICT NO. 1, OF MONTGOMERY COUNTY, TEXAS, BE AUTHORIZED TO ISSUE THE BONDS OF SAID DISTRICT I N ONE OR MORE ISSUES OR SERIES IN THE MAXIMUM AGGREGATE ORIGINAL PRINCIPAL AMOUNT OF $44,2 00,000 MATURING SERIALLY OR OTHERWISE IN SUCH INSTALLMENTS AS ARE FIXED BY SAID BOARD OVER A PERIOD OR PERIODS NOT EXCEEDING FIFTY (50) YEARS FROM THEIR DATE OR DATES, BEARING INTEREST AT ANY RATE OR RATES, AND TO SELL SAID BONDS AT ANY PRICE OR PRICES, PROVIDED THAT THE NET EFFECTIVE INTEREST RATE ON ANY ISSUE OR ISSUES OF SAID BONDS SHALL NOT EXCEED THE MAXIMUM LEGAL LIMIT IN EFFECT AT THE TIME OF ISSUANCE OF EACH ISSUE OF SAID BONDS, ALL AS MAY BE DETERMINED BY THE BOARD OF DIRECTORS OF SAID DISTRICT, FOR THE PURPOSE OR PURPOSES OF CONSTRUCTION, MAINTENANCE AND OPERATION OF MACADAMIZED, GRAVELED, OR PAVED ROADS AND TURNPIKES, OR IN AID THEREOF, AND RELATED DRAINAGE WORKS, INCLUDING, BUT NOT LIMITED TO, ALL ADDITIONS TO SUCH SYSTEMS AND ALL WORKS, IMPROVEMENTS, FACILITIES, EQUIPMENT, APPLIANCES, INTERESTS IN PROPERTY AND CONTRACT RIGHTS NEEDED THEREFOR, AND ADMINISTRATIVE COSTS AND EXPENSES IN CONNECTION THEREWITH, AND TO PROVIDE FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON SUCH BONDS BY THE LEVY AND COLLECTION ANNUALLY OF A SUFFICIENT TAX UPON ALL TAXABLE PROPERTY WITHIN SAID DISTRICT, ALL AS AUTHORIZED BY THE CONSTITUTION AND LAWS OF THE STATE OF TEXAS? PROPOSITION I I I SHALL THE BOARD OF DIRECTORS OF THE WOODLANDS ROAD UTILITY DISTRICT NO. 1, OF MONTGOMERY COUNTY, TEXAS, BE AUTHORIZED TO ISSUE THE BONDS OF SAID DISTRICT I N ONE OR MORE ISSUES OR SERIES IN THE MAXIMUM AGGREGATE ORIGINAL PRINCIPAL AMOUNT OF $4 4,2 00,000 MATURING SERIALLY OR OTHERWISE IN SUCH INSTALLMENTS AS ARE FIXED

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BY SAID BOARD OVER A PERIOD OR PERIODS NOT EXCEEDING FORTY (40) YEARS FROM THEIR DATE OR DATES, BEARING INTEREST AT ANY RATE OR RATES, AND TO SELL SAID BONDS AT ANY PRICE OR PRICES, PROVIDED THAT THE NET EFFECTIVE INTEREST RATE ON ANY ISSUE OR SERIES OF SAID BONDS SHALL NOT EXCEED THE MAXIMUM LEGAL LIMIT I N EFFECT AT THE TIME OF ISSUANCE OF EACH ISSUE OR SERIES OF SAID BONDS, ALL AS MAY BE DETERMINED BY THE BOARD OF DIRECTORS OF SAID DISTRICT, FOR THE PURPOSE OF REFUNDING, BY ANY MEANS NOW OR HEREAFTER AUTHORIZED BY LAW, ALL OR ANY PORTION OF ANY BONDS OR REFUNDING BONDS OF THE DISTRICT PAYABLE I N WHOLE OR I N PART FROM TAXES, WHETHER HERETOFORE OR HEREAFTER ISSUED BY THE DISTRICT, AND WHETHER AUTHORIZED HEREUNDER OR AT PREVIOUS ELECTIONS HELD WITHIN AND FOR THE DISTRICT, AND TO PROVIDE FOR THE PAYMENT OF THE PRINCIPAL OF AND THE INTEREST ON SUCH REFUNDING BONDS BY THE LEVY AND COLLECTION OF A SUFFICIENT TAX UPON ALL TAXABLE PROPERTY WITHIN SAID DISTRICT, ALL AS AUTHORIZED BY THE CONSTITUTION AND LAWS OF THE STATE OF TEXAS? S e c t i o n 3; V o t i n g i n s a i d e l e c t i o n s h a l l be by t h e use o f paper b a l l o t s which s h a l l be p r i n t e d i n b o t h E n g l i s h and Spanish and which s h a l l conform t o t h e requirements o f t h e Texas E l e c t i o n Code. The form o f t h e b a l l o t s f o r t h e e l e c t i o n s h a l l be as follows: NO. CONFIRMATION AND DIRECTOR ELECTION AND BOND ELECTION JANUARY 18, 1992 ELECCION DE CONFORMACION Y DE DIRECTORES ELECCION DE BONOS 18 DE ENERO DE 1992 THE WOODLANDS ROAD UTILITY DISTRICT NO. 1 DISTRITO NO. 1 DE UTILIDADES DE THE WOODLANDS ROAD DEL CONDADO DE MONTGOMERY OFFICIAL BALLOT BALOTA OFICIAL INSTRUCTION NOTE: Place an "X" i n t h e square beside t h e s t a t e m e n t i n d i c a t i n g t h e way you wish t o v o t e . INSTRUCCIONES: E l v o t a n t e i n d i c a r a como desea v o t a r colocando una "X" en e l cuadrado que corresponda. PROPOSITION I PROPOSICION I [ ] FOR DISTRICT

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A FAVOR DEL DISTRITO ] AGAINST DISTRICT EN CONTRA DEL DISTRITO PROPOSITION I I PROPOSICION I I ] FOR A FAVOR DE ] AGAINST EN CONTRA DE THE ISSUANCE OF BONDS AND THE LEVY OF TAXES IN PAYMENT OF THE BONDS LA EMISION DE BONOS, Y LA GRAVACION DE IMPUESTOS PARA EL PAGA DE LOS BONOS PROPOSITION I I I PROPOSICION I I I ] FOR A FAVOR DE ] AGAINST EN CONTRA DE THE ISSUANCE OF REFUNDING BONDS AND THE LEVY OF TAXES I N PAYMENT OF THE BONDS LA EMISION DE BONOS DE DEVOLUCION Y LA GRAVACION DE IMPUESTOS PARA EL PAGO DE LOS BONOS

INSTRUCTION NOTE: Vote f o r t h e candidates o f your c h o i c e by p l a c i n g an "X" i n t h e square beside t h e c a n d i d a t e s ' names. INSTRUCCIONES: Vote por l o s candidates de sue e l e c c i o n colocando una "X" en e l cuadrado que e s t a j u n t o a l o s nombres d e l candidates. DIRECTORS DIRECTORES (Vote f o r none, one, two, t h r e e , f o u r o r f i v e ) (Vote por ninguno, uno, dos, t r e s , c u a t r o , o c i n c o ) Joseph K u t c h i n Vance M. Gilmer Jack B. Haynes Robert N. Powers B i l l A. N e i l l

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S e c t i o n 4: The boundaries o f t h e D i s t r i c t as e s t a b l i s h e d by t h e L e g i s l a t u r e a r e hereby e s t a b l i s h e d as and s h a l l c o n s t i t u t e one e l e c t i o n p r e c i n c t f o r purposes o f t h e e l e c t i o n . S e c t i o n 5; The f o l l o w i n g q u a l i f i e d r e s i d e n t v o t e r s a r e hereby a p p o i n t e d t o serve as o f f i c e r s o f s a i d e l e c t i o n . Nancy Primeaux Kimberly T u n n e l l P r e s i d i n g Judge A l t e r n a t e P r e s i d i n g Judge ordered

Said o f f i c e r s a r e appointed t o serve i n t h e h e r e i n e l e c t i o n only.

The P r e s i d i n g Judge s h a l l a p p o i n t two (2) q u a l i f i e d r e s i d e n t v o t e r s t o serve as e l e c t i o n c l e r k s t o a s s i s t i n t h e conduct o f t h e e l e c t i o n and s h a l l appoint t h e A l t e r n a t e P r e s i d i n g Judge as one o f t h e e l e c t i o n c l e r k s . There i s hereby c r e a t e d an Absentee B a l l o t Board. The P r e s i d i n g Judge, t h e A l t e r n a t e P r e s i d i n g Judge and one e l e c t i o n c l e r k a p p o i n t e d by t h e P r e s i d i n g Judge s h a l l a l s o serve as t h e Absentee B a l l o t Board f o r t h e e l e c t i o n f o r t h e p r o c e s s i n g o f absentee b a l l o t r e s u l t s . The P r e s i d i n g Judge o f t h e e l e c t i o n s h a l l serve as t h e p r e s i d i n g o f f i c e r o f t h e Absentee B a l l o t Board. Nancy Primeaux i s hereby a p p o i n t e d absentee v o t i n g c l e r k f o r s a i d e l e c t i o n . Absentee v o t i n g by p e r s o n a l appearance s h a l l be conducted a t 9700 Grogans M i l l Road, The Woodlands, Montgomery County, Texas 77380, which i s w i t h i n t h e boundaries o f t h e District. The o f f i c i a l m a i l i n g address o f t h e absentee v o t i n g c l e r k i s 9700 Grogans M i l l Road, The Woodlands, Texas 77380. Said c l e r k s h a l l keep s a i d p l a c e open f o r absentee v o t i n g by p e r s o n a l appearance f o r t h r e e hours, from 5:00 a.m. t o 8:00 a.m. on each day which i s n o t a Saturday, a Sunday, o r a l e g a l s t a t e h o l i d a y , b e g i n n i n g on t h e 20th day p r e c e d i n g t h e date o f such e l e c t i o n , unless such day i s a Saturday, Sunday, o r l e g a l s t a t e h o l i d a y i n which case t h e p e r i o d begins on t h e next r e g u l a r b u s i n e s s day, and c o n t i n u i n g t h r o u g h t h e 4 t h day p r e c e d i n g t h e d a t e o f such e l e c t i o n . Except as p r o v i d e d by V.T.C.A., E l e c t i o n Code, S e c t i o n s 84.008, 102.003 and 103.003, absentee v o t i n g by m a i l s h a l l be conducted by an a p p l i c a n t s u b m i t t i n g t o the absentee v o t i n g c l e r k by m a i l an a p p l i c a t i o n f o r a b a l l o t t o be v o t e d by m a i l . Except as o t h e r w i s e p r o v i d e d by V.T.C.A., E l e c t i o n Code, Chapters 84, 101, 102 and 103, such a p p l i c a t i o n must be submitted on o r a f t e r t h e 60th day b e f o r e t h e date o f such e l e c t i o n and b e f o r e t h e c l o s e o f r e g u l a r business i n t h e absentee v o t i n g c l e r k ' s o f f i c e or 12:00 noon, whichever i s l a t e r , on t h e 7 t h day b e f o r e t h e date o f such e l e c t i o n , u n l e s s such day i s a Saturday, Sunday, l e g a l s t a t e h o l i d a y o r n a t i o n a l h o l i d a y , i n which case t h e l a s t day i s t h e f i r s t preceding business day. A marked b a l l o t v o t e d by m a i l

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must a r r i v e a t t h e address r e f l e c t e d on t h e c a r r i e r envelope b e f o r e t h e t i m e t h e p o l l s are r e q u i r e d t o c l o s e on t h e d a t e o f such e l e c t i o n . I n accordance w i t h t h e V.T.C.A., E l e c t i o n Code, S e c t i o n 31.123, t h e Board o f D i r e c t o r s hereby a p p o i n t s J u l i e M. Kime as i t s agent t o p e r f o r m v a r i o u s e l e c t i o n d u t i e s f o r t h e e l e c t i o n , i n c l u d i n g m a i n t a i n i n g i n such agent's o f f i c e a t 1300 Post Oak Boulevard, S u i t e 1400, Houston, Texas 77056, t h e documents, r e c o r d s , and o t h e r papers r e l a t i n g t o t h e e l e c t i o n t h a t by law are p l a c e d i n t h e custody o f t h e Board o f D i r e c t o r s and t h a t are public information. The agent s h a l l r e c e i v e any personally d e l i v e r e d document r e l a t i n g t o t h e e l e c t i o n t h a t t h e Board o f D i r e c t o r s i s a u t h o r i z e d or r e q u i r e d t o r e c e i v e and s h a l l make a v a i l a b l e f o r i n s p e c t i o n and copying, i n accordance w i t h t h e a p p l i c a b l e r e g u l a t i o n s , t h e documents, r e c o r d s , and o t h e r papers t h a t are r e q u i r e d t o be m a i n t a i n e d i n t h e agent's o f f i c e and may p e r f o r m any o t h e r m i n i s t e r i a l d u t i e s i n c o n n e c t i o n w i t h t h e e l e c t i o n t h a t may l a w f u l l y be performed by an employee o f t h e District. S e c t i o n 6; The S e c r e t a r y o f t h e Board o f D i r e c t o r s i s hereby d i r e c t e d t o g i v e n o t i c e o f such e l e c t i o n as r e q u i r e d by law. S e c t i o n 7; The e l e c t i o n s h a l l be h e l d and conducted and r e t u r n s made t o t h i s Board o f D i r e c t o r s i n accordance w i t h t h e Texas E l e c t i o n Code and A r t i c l e 6 6 7 4 r - l , Vernon's Texas C i v i l Statutes. S e c t i o n 8: The r a t e o f pay f o r judges, c l e r k s , absentee c l e r k s and absentee b a l l o t board members s h a l l be d e t e r m i n e d by t h e Board o f D i r e c t o r s o f t h e D i s t r i c t i n compliance w i t h t h e Texas E l e c t i o n Code. S e c t i o n 9; A l l q u a l i f i e d r e s i d e n t e l e c t o r s o f t h e D i s t r i c t s h a l l be e n t i t l e d t o v o t e i n t h e e l e c t i o n . S e c t i o n 10; The Chairman and Secretary o f t h e Board o f D i r e c t o r s and t h e D i s t r i c t ' s agent f o r such e l e c t i o n a r e hereby a u t h o r i z e d and d i r e c t e d t o t a k e any a c t i o n necessary t o c a r r y o u t t h e p r o v i s i o n s o f t h i s order.

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PASSED AND APPROVED t h i s 3rd day o f December, 1991.

Chairman, ATTEST:

Board

o f Directors

S e c r e t a r y , Board o f D i r e c t o r s (SEAL)

JH:RUD\ELECTION/03.DOC

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