Unassociated Document


    
      

    

    Exhibit
10.4

    


    LEASE
ADDENDUM

    


    THIS
LEASE ADDENDUM is dated January 1, 2005 and is by and between EMBASSY BANK, a
Pennsylvania state bank ("Embassy") and Red Bird Associates, LLC, a Pennsylvania
Limited Liability Company ("Red Bird").

    


    WHEREAS,
by Lease Agreement dated June 11,2001 Embassy Bank leased from Gateway
Associates, LLC, approximately 7,827 square feet of office space on the first
floor of the office building commonly known as 100 Gateway Drive, Hanover
Township, Northampton County, Pennsylvania; and

    


    WHEREAS,
the said building was acquired from Gateway Associates, LLC by Red Bird on
January 10,2003, together with an assignment to Red Bird of all leases affecting
the premises; and

    


    WHEREAS,
the parties desire to amend the Lease Agreement in order to provide for the
lease by Embassy of an additional 4,349 square feet of space on the second floor
of the premises.

    


    NOW,
THEREFORE, in consideration of the mutual promises and covenants herein
contained, the parties agree as follows:

     

    1.           Lease. Red Bird
hereby leases to Embassy and Embassy hereby leases from Red Bird 4,349 square
feet of office space on the second floor of the premises known as 100 Gateway
Drive, Hanover Township, Northampton County, Pennsylvania. The additional space
to be occupied by Embassy is shown on the diagram attached hereto as Exhibit
"A".

    2.           Term. This Addendum
and the lease of additional space shall be effective as of January 1, 2005 and
shall continue for the remaining term of the underlying Lease Agreement,
including all renewal options.

    3.           Increased Rent. As a
result of the additional space added to the lease, Embassy's annual base rent
shall be increased by $78,282 (4,349 additional square feet at $ 18.00 per
square foot per year) or $6,523.50 per month.

    4.           Rent Escalator. On
the third anniversary of this Addendum and each anniversary thereafter, the
annual base rent for the additional space shall increase by
three (3%) percent per year, to be calculated in the same manner as set forth in Exhibit "C" of the
underlying Lease Agreement with respect to the rent escalator for the original
space.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    5.          
Leasehold
Improvement Allowance. Red Bird hereby grants to Embassy a tenant
improvement allowance of $44,512.50 (3,561 square feet of interior rentable
space at $12,50 per square foot) which amount may be used by Embassy as an
offset against the rent due hereunder.

    6.          
Operating
Expenses. As a result of Embassy's lease of the additional
space, its share of the Operating Expenses (as defined in the Lease
Agreement) shall be increased from 33% to 47.5%.

    7.          
Incorporation
by Reference. Except as provided herein, all terms and provisions of the
Lease Agreement are incorporated herein by reference thereto and are hereby
ratified and confirmed as if the additional space leased hereunder was included
as part of the terms of the original Lease Agreement. 

    8.           Entire Agreement.
This Lease Addendum, together with the underlying Lease Agreement, contains the
entire agreement between the parties concerning the subject matter
hereof

    


    IN
WITNESS WHEREOF, and intending to be legally bound, the parties have executed
this Lease Addendum as of the day and year first above written.

    
 

    
      
        
          
            
              	
                      ATTEST:

                    	 	
                      EMBASSY
      BANK

                    
	 
      	 	 
      	 
      
	
                      /s/
      Judith A. Hunsicker

                    	 	
                      By

                    	
                      /s/
      Elmer Gates

                    
	
                      Judith
      A. Hunsicker

                    	 	 
      	
                      Elmer
      Gates

                    
	      
                      Secretary

                    	 	 
      	
                      Chairman

                    
	 
      	 	 
      	 
      
	 
      	 	 
      	 
      
	 
      	 	
                      RED
      BIRD ASSOCIATES, LLC

                    
	 
      	 	 
      	 
      
	 
      	 	 
      	 
      
	 
      	 	
                      By

                    	
                      /s/
      Frank Banko

                    
	 
      	 	 
      	
                      Frank
      Banko

                    
	 
      	 	 
      	
                      President