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 additionalspace shall increase by
three (3%) percent per year, to becalculated in the same manneras 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'slease of the additional
space, its shareofthe 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 GatesJudith
      A. Hunsicker
                    
                    
                    Elmer
      GatesSecretary
                    
                    
                    ChairmanRED
      BIRD ASSOCIATES, LLCBy
                    /s/
      Frank BankoFrank
      BankoPresident