When is a database called as an Embedded database?

There are two definitions of embedded databases I've seen:

1. Embedded database as in a database system particularly designed for the "embedded" space (mobile devices and so on.) This means they perform reasonably in tight environments (memory/CPU wise.)
2. Embedded database as in databases that do not need a server, and are embedded in an application (like SQLite.) This means everything is managed by the application.

I've personally never seen the term used exactly as Wikipedia defines it, but that's probably my fault, although it resembles quite a bit my number 2 above.

The word 'embedded' does add meaning, basically that the database is dedicated to a specific application rather than shared among multiple applications, to a degree hidden from the user of the application, and completely controlled by the application.

An embedded database is conceptually just a part of the application rather than a separate thing.