Example 2 is correct. (The beginning of the second sentence "Which are" needs to be restored though.)
Thank you for alerting me to the possible misinterpretation of this section. The reason you are instructed to delete that second line is because no such directive regarding line 1 on a braille page is given in the Nemeth Code. In the new errata to "An Introduction to Braille Mathematics" efforts were made to remove statements made in the lesson book that are not Nemeth Code rules.
Clarifications of or changes to rules that have proven to be ambiguous are being posted on the BANA website under "Latest Code Updates" after approval by the BANA committees. In April of 2011 a change was made to Rule XXV Sections 191a(v) and 191b(vi) which eliminated the blank line between a cell 5 heading and instructions which immediately follow such a heading. In the new errata/addenda to AN INTRODUCTION TO BRAILLE MATHEMATICS the wording of Section 28 in was changed to reflect this new rule and in so doing we also removed the wording that had been added.
Your question has to do with instructions that start on line 1 of a document when the document does not employ a running head. When layouts are not given in the Nemeth Code--this one is not--we are instructed to follow EBAE or Braille Formats. I am happy to see that the new Braille Formats 2011 gives a statement regarding line 1 as it relates to exercise directions:
BF2011 Section 10: EXERCISE MATERIAL, 10.2 BLANK LINES: 10.2.2 Each exercise set, with accompanying directions, is preceded and followed by a blank line. Directions may begin on line 1 if no running head is used. Directions begin on line 3 when a running head is used.