1901 E. 1ST STREET PARTNERS, LLC 1 - 2007

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2. DEFINITIONS. In the Agreement, unless the context otherwise requires: 2.1 "Applicable Rules" means all rules, regulations, ordinances and official plans and policies of the City in force as of the Effective Date as included within the Santa Ana Municipal Code ("SAMC"), the Metro East Mixed-Use Overlay Zone, this Agreement and the Entitlements, as defined below. 2.2 "Effective Date" means May 2, 2007, the date upon which the ordinance approving this Agreement becomes effective. 2.3 "Entitlements" means Environmental Review No. 2006-01, General Plan Amendment No. 2007-01, Amendment Application No. 2007-01, Tentative Tract Map No. 2007- 01 (County Map No. 17069), Zoning Ordinance Amendment No. 2007-01, the Metro East Overlay Zone Public Realm Improvement Plan and Site Plan Review No. 2007-01. 2.4 "Reserved Powers" means the rights and authority excepted from this Agreement's restrictions on the City's police powers and which are instead reserved to the City. The Reserved Powers include the power to enact and implement rules, regulations, ordinances and policies after the Effective Date that are not in conflict with the Applicable Rules or that may be in conflict with the Applicable Rules, but: (a) prevent or remedy conditions which the City has found to be injurious or detrimental to the public health and/or safety; (b) are Uniform Codes; (c) are required to comply with mandates under state and federal laws, rules and regulations (whether enacted previous or subsequent to the Effective Date) or to comply with a court order or judgment of a state or federal court; or (d) relate to increases in development impact fees occurring after the Effective Date. 2.5 "Property Owner" or "Owner" means 1901 E. 1st Street Partners, LLC, a Delaware Limited Liability Company, being the person, persons, or entity having a legal or equitable interest in the Property, and includes successors in interest. 2.6 "Property" is the real property described in Exhibit A and referred to in Exhibit B. 2.7 "Project" is the development of the Property, a one or two phase, for-sale 374 residential condominium development with 8,800 square feet of commercial development, as generally set forth in Environmental Review No. 2006-01, General Plan Amendment No. 2007-01, Amendment Application No. 2007-01, Tentative Tract Map No. 2007-01 (County Map No. 17069), Zoning Ordinance Amendment No. 2007-01, the Metro East Overlay Zone Public Realm Improvement Plan and Site Plan Review No. 2007-01. 2.8 "Uniform Codes" means those building, electrical, mechanical, fire and other similar regulations of a City-wide scope which are based on recommendations of a multi- state professional organization and become applicable throughout the City, such as, but not limited to, the California Building Code, the California Electrical Code, the California Mechanical Code, or the California Fire Code (including those amendments to the promulgated - 3 -