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additional obligations on the lot owners or Continental. If the rezoning occurs, the limitation to one single-family dwelling per lot need not be a deed covenant, unless desired by Continental. 2. Lots within the SLU Agricultural District: a. SMA Exemption: Continental and the County agree that there are currently 13 lots, or portions thereof, within the SMA. The County of Hawaii shall grant an SMA exemption for a maximum of thirteen (13) developable pre-existing lots (Lots 31, 32, 33, 34, 36, 37, 38, 1, 3, 4, 5, 6 and 7) approximately one to six acres in size located within the SMA and Agricultural District. The consolidation and resubdivision of these thirteen (13) lots into the proposed configuration as proposed in Exhibit A is not "development" because it does not pose a significant environmental or ecological effect in that the resulting lots are not concentrated on a beach or other sensitive coastal area, the lots are located approximately 300 feet from the shoreline, and in consideration of the other requirements of this Agreement, including the provisions relating to public access and limitations on the use of the bulk lot. In the event that the Conservation District line within the Continental Lands is re -interpreted by the State Land Use Commission (or changed by boundary amendment) in the makai direction from its present location approximately as shown on Exhibit A, approximately 300 feet from the cliff edge, all dwellings shall be setback from the certified shoreline a minimum of 330 feet. Lots 35, 39, 40, 44 and 2 are determined to be outside of the SMA, or in the case of Lots 44, 2 and 39, if not outside the SMA, the boundaries shall be adjusted so that they are not within the SMA, or upon Continental's sole option, one or more of the lots shall be included in the SMA Major permit application noted herein. The County hereby waives the requirement for submittal of a certified shoreline survey for these exempt lots in that they are located a considerable distance from the shoreline by a band of SLUC Conservation District land. Location of south and north lots outside SMA: Continental shall locate the oceanfront lots proposed at the south end (Lot 71 through and including Lot 81) and north end (Lot 8 through and including Lot 20) of the Continental Lands outside of the SMA. The County of Hawaii shall not require processing of a SMA Assessment or SMA Use Permit (Major or Minor) for these lots. Continental may, at its sole option, relocate any or all of the 2019077.1.054151-00002 4/12/2002 13.1 1