Document:

Exhibit-10.7

		
			 
		

		
			COMMERCIAL LEASE AGREEMENT
		

		
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			 THIS COMMERCIAL LEASE AGREEMENT (hereinafter called the "Lease") is made this 11 day of March, 2009 by and between POLARIS CEDAR CREST, LLC, a Pennsylvania limited liability company, which has as its address 7562 Perm Drive, Suite 100, Allentown, Pennsylvania 18106, or its assignee or nominee (the "Lessor")
		

		
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			EMBASSY BANK FOR THE LEHIGH VALLEY, a Pennsylvania financial institution, which has as its address 100 Gateway Drive, Suite 100, Bethlehem, Pennsylvania 18017 (the "Lessee").
		

		
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			WITNESSETH:
		

		
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			WHEREAS, VIST Bank, f/k/a Madison Bank, a division of Leesport Bank ("VIST"), has succeeded to the interests of Center Square Associates, a Pennsylvania general partnership as owner of the fee interest in certain tract or parcel of land located in Salisbury Township, Lehigh County, Pennsylvania, as more particularly described in Exhibit "A" attached hereto and made a part hereof (the "Premises"), pursuant to VIST's purchase of the Premises at the January 23, 2009 Lehigh County Sheriffs Sale; and
		

		
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			WHEREAS, VIST, pursuant to its rights in that certain Subordination, Non-Disturbance and Attornment Agreement dated October 2, 2007 and recorded in the Lehigh County Recorder of Deeds office on December 28, 2007 at Document ID# 7458028, has succeeded to the rights of Center Square Associates as the Ground Lessor of all improvements, including but not limited to the bank building (the "Improvements") located upon the Premises pursuant to that certain Ground Lease dated July 12, 2005, as amended by those certain four (4) Amendments thereto (collectively, the "Ground Lease"); and
		

		
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			WHEREAS, VIST and Lessee, also the tenant under the Ground Lease, have agreed to terminate the Ground Lease on the day of Closing of the sale of the Premises from VIST to Lessor; and
		

		
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			WHEREAS, VIST and Lessor have executed an Agreement of Sale dated January 22, 2009 (the "Agreement of Sale") pursuant to which Lessor, subject to certain conditions contained therein, is the equitable owner of the Premises; and
		

		
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			WHEREAS, Lessee has requested that Lessor construct on the Premises a bank building in accordance with the Site Plan prepared by Bohler Engineering, Inc. revised March 28, 2007 and recorded on July 26, 2007 ("Site Plan"), and Lessor has in fact substantially completed construction thereof, and which the Improved Lease Premises the Lessee will then lease from Lessor.
		

		
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			NOW, THEREFORE, the parties hereto, in consideration of the covenants and agreements herein, and intending to be legally bound hereby, agree as follows:
		

		
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			1.              IMPROVED LEASED PREMISES. Subject to the terms and conditions of this Lease, Lessor hereby leases to Lessee and Lessee hereby leases from Lessor the Premises and the Improvements now existing and to be constructed thereon (collectively, the "Improved Lease Premises") as provided herein. Lessor will complete the improvements to the Premises in accordance with the Work Letter attached hereto as Exhibit "B" and incorporated herein. Lessee agrees to the terms and conditions set forth on Exhibit "B" hereto.
		

		
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		(a)            For the purposes of this Lease, the term "Improved Lease Premises" shall also include the all rights contained in that certain Declaration of Cross Easements and Easements dated May 22, 2008 and recorded as document #7481685 in the Lehigh County Office of the Recorder of Deeds.
		

		
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			2.              TERM.
		

		
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			(a)            The term of this Lease for the Improved Leased Premises (the "Term") shall be approximately eleven (11) years commencing on the date on which Lessor has closed on the purchase of the Premises (the "Commencement Date"), and ending at midnight on the day preceding the eleventh (11th) anniversary of the Commencement Date.
		

		
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			(b)            Provided that Lessee shall not then be in default hereunder, Lessee shall have the option to extend the Term of this Lease for two (2) successive renewal terms of seven (7) years, followed by one (1) additional renewal period of four (4) years and ten (10) months, (each, a "Renewal Term"), on the same terms and conditions set forth herein and with the rental for each Renewal Term continuing to increase at the rate of two and one-half percent (2-1/2%) per year such that the rental for each lease year during any Renewal Term shall be 102.5% of the rental for the immediately preceding lease year. Lessee may exercise its right to renew the Lease Term by providing Lessor with written notice of its option to renew the Lease not less than nine (9) months prior to the expiration of the then current Term or Renewal Term.
		

		
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			(c)            Notwithstanding the Commencement Date of the Term, Lessee shall be bound by all of the terms and conditions hereof, from and after the date of execution of this Lease.
		

		
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			3.              CONDITIONS OF COMMENCEMENT. The Commencement of this Commercial Lease is expressly conditioned upon the occurrence of all of the following conditions:
		

		
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			(a)            The Closing of the purchase contemplated by the Agreement of Sale ("Closing"); and
		

		
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			(b)            The termination of the Ground Lease by mutual agreement between VIST and Lessee contemporaneous with the Closing.
		

		
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			(i)             In the event that VIST fails to terminate the Ground Lease, Lessee and Lessor, as successor in interest to VIST as landlord under the Ground Lease, hereby agree to mutually terminate the Ground Lease , in a separate writing signed by both Lessor and Lessee. Said termination will be effective contemporaneously with the effective date of this Lease.
		

		
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			(c)            After the conditions of Section 3(a) and (b) have occurred, the withdrawal with prejudice by Lessor of the civil action which Lessor filed in the Lehigh County Court of Common Pleas at docket # 2008-C-4098 (the "Civil Action") against Lessee.
		

		
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			4.              USE. Lessee shall use the Improved Leased Premises as an Embassy Bank or any successor bank or, with Lessor's prior written consent, for any other lawful purpose permitted under zoning and other applicable laws, ordinances, and regulations.
		

		
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			5.              RENT.
		

		
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			(a)            During the first year of the Term, Lessee shall pay to Lessor as minimum annual rent the sum of One Hundred Eighty-four Thousand Eight Dollars ($184,008.00), payable in equal monthly installments of Fifteen Thousand Three Hundred Thirty-four Dollars ($15,334.00) each. Thereafter, for each Lease year during the Term and any Renewal Term, minimum annual rent shall equal the minimum annual rent payable in the immediately preceding Lease year, multiplied by 102.5% (e.g., the prior year's rental plus an increase of 2.5%). 
		

		 

 

		Such minimum annual rent shall be payable in advance, in equal monthly installments on the first day of each calendar month during the Term and any Renewal Term hereof, without demand, offset or deduction, and shall be payable in lawful money of the United States of America. Lessor agrees that it will use its best efforts to obtain a Certificate of Occupancy on or before July 1, 2009.
		

		
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			(i)             In the event Lessor shall not deliver a Certificate of Occupancy by August 1, 2009, Lessee shall have the option of (i) completing such work necessary to obtain a Certificate of Occupancy, and deduct the actual and reasonable cost thereof from the rent otherwise payable under this Lease until such amount is paid in full, or (ii) pay 50% of the rent otherwise payable pursuant to this lease until such time as Lessor delivers a Certificate of Occupancy.
		

		
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			(b)            This Lease is intended to be a "triple net" lease. Accordingly, Lessee agrees to pay as additional rent, all charges for utilities, taxes, assessments and other governmental charges with respect to the Improved Leased Premises and as may be further provided in this Lease. It is the parties' intent that Lessee shall pay all such charges directly. In the event Lessor shall receive any such charges, Lessor shall bill Lessee for any such charges and Lessee shall promptly pay Lessor for such charges upon invoice. In the event of nonpayment of additional rent. Lessor shall have, in addition to all other rights and remedies, all the rights and remedies provided for herein or by law in the case of nonpayment of the minimum rent.
		

		
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			(c)            For all purposes under this Lease, rent shall mean both minimum and additional rent. Rent shall be delivered to Lessor at Lessor's address as set forth above, or at such other place or to such other person as Lessor may designate in writing from time to time.
		

		
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			(d)            The parties acknowledge that Lessee has obtained regulatory approval that requires the subject bank branch to open by November 21, 2009. Only in the limited event that Lessor has not delivered a Certificate of Occupancy on or before November 21, 2009, and Lessee is unable to obtain an extension of all applicable bank regulatory approvals necessary to operate a bank branch at the subject location, but has diligently pursued such approvals and/or extensions of time, then Lessee shall have the option of terminating this Lease as of such date, provided that Lessee continues to make regular monthly payments as required in this Section 5 for a period of nine (9) months following the termination date. The Lessee shall be relieved of the liability for the post- termination monthly rental payments upon the expiration of nine (9) months following the termination date, or the date upon which rental obligations commence with a replacement Tenant at the property, whichever is sooner.
		

		
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			(i)             The Lessee shall have no other termination rights hereunder except in the limited circumstance provided for in Section 5(d), above.
		

		
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			(ii)            Notice of termination pursuant to Section 5(d) shall be in writing signed by an authorized representative of Lessee and delivered according to the provisions of Section 32, below.
		

		
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			6.              ALTERATIONS AND IMPROVEMENTS.
		

		
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			(a)            Lessee shall not make or cause to be made any alterations, additions or improvements to the Improved Leased Premises without the prior written consent of Lessor. All alterations, additions or improvements approved by Lessor shall be made solely at Lessee's expense by a contractor approved by Lessor, shall be made in a good and workmanlike manner and shall be performed in compliance with all laws, ordinances and requirements of any and all Federal, State, Municipal and/or other authorities, the Board of Fire Underwriters and any mortgages to which the Improved Leased Premises is subject. Any alteration, addition or improvement made by Lessee under this Section 6, and any fixtures installed as a part thereof, shall, at Lessor's option, become the property of Lessor upon the expiration or other termination of this Lease. Lessor shall have the right, however, to 
		

		 

 

		require Lessee to remove such fixtures at Lessee's cost upon such termination of this Lease, and Lessee shall promptly remove the same and repair any damage to the Improved Leased Premises caused by such removal.
		

		
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			(b)            All persons to whom these presents may come are put upon notice of the fact that Lessee shall never, under any circumstances, have the power to subject the interest of Lessor or any mortgagee in the Improved Leased Premises to any mechanic's, materialman's or similar lien.
		

		
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			(c)            Any contract or agreement for labor, equipment, services, materials or supplies in connection with the rights set forth hereunder shall provide that no lien or claim shall thereby be created or arise, or be filed by anyone thereunder, upon or against the Improved Leased Premises and/or the interest of Lessor, or any mortgagee of Lessor, or the buildings or improvements thereon to be erected on the Improved Leased Premises or any of the equipment thereof.
		

		
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			(d)            In the event of a lien or claim of any kind, arising out of the exercise of the rights set forth hereunder by Lessee, its agents, employees, contractors, subcontractors, and materialmen, being filed against the interest of Lessor, any mortgagee of Lessor and/or against the Improved Leased Premises, Lessee covenants and agrees that at its expense it will within thirty (30) days after written notice from Lessor, cause the Improved Leased Premises and any such interest therein to be released from the legal effect of such lien or claim, either by payment or by posting of bond or by the payment into court of the amount necessary to relieve and release the Improved Leased Premises or the interest from such claim or in any manner satisfactory to Lessor, and any mortgagee of Lessor. If Lessee desires to contest the validity of any lien or claim, Lessee may do so upon Lessor's prior written consent, provided Lessee sustains the cost of such contest, and Lessee remains liable to pay or discharge any lien or claim deemed to be due or payable. Lessee hereby indemnifies and holds Lessor harmless against any and all liability, loss or damage sustained by Lessor by reason of such contest, unless such contest arises from any negligent or intentional act or omission of Lessor.
		

		
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			7.              UTILITIES. Lessee shall pay, when the same shall become due, all charges for utilities consumed by it on the Improved Leased Premises including without limitation electricity, heat and telephone, and any other utilities, as well as water and sewer charges. Lessor shall not be required to furnish to Lessee any utility, janitorial or other service of any kind whatsoever during the Term of this Lease.
		

		
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			8.             MAINTENANCE AND REPAIRS. Lessor has made no representations concerning the condition of the Improved Leased Premises other than that the improvements will be completed in accordance with the agreement between the parties as referred to in Section 1 hereof. Lessee shall maintain and be responsible for maintaining and repairing all portions of the Improved Leased Premises. Lessee, at its sole cost and expense, shall take good care of the Improved Leased Premises and will maintain the same in good order and condition, ordinary wear and tear excepted, and make all necessary repairs thereto, interior as well as exterior, including and without limiting the generality of the foregoing, roof and structural members, including walls. Lessee shall be responsible for the routine regular cleaning of the Improved Leased Premises, and shall keep all portions of the Improved Leased Premises in a clean and orderly condition, free of unlawful obstruction, and shall not permit or cause any damage, waste or injury to the building or other improvements on the Improved Leased Premises.
		

		
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			9.              REFUSE REMOVAL. Lessee shall provide for its own garbage, rubbish and refuse disposal and agrees to keep the Improved Leased Premises free and clear of debris. Lessee agrees to keep all rubbish, garbage and refuse in covered containers within the Improved Leased Premises (or at such other location identified by Lessor) and to have the same removed regularly.
		

		
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		10.            COMPLIANCE. With regard to its use of the Improved Leased Premises, Lessee shall, at its own expense, comply with all laws, rules, orders, regulations, and requirements of all Federal, State, and municipal governments, courts, departments, commissions, boards, and officers having jurisdiction over the Improved Leased Premises, the lawful orders, rules, and regulations of the Board of Fire Underwriters having jurisdiction over the Improved Leased Premises, any mortgages to which the Improved Leased Premises is subject, and any rules and regulations of Lessor. Lessee shall have the right to contest by appropriate legal proceedings, diligently pursued, without cost or expense to Lessor, the validity of any governmental law, rule, order, regulation or requirement. Lessee hereby indemnifies and holds Lessor harmless against any and all liability, loss, or damage sustained by Lessor by reason of such contest. Notwithstanding any of the foregoing, Lessee shall promptly comply with any such law, rule, order, regulation or requirement if at any time the Improved Leased Premises or any part thereof shall then be immediately subject to forfeiture or Lessee shall be subject to criminal liability for non-compliance therewith.
		

		
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			11.            TAXES. Lessee shall pay as and when the same shall become due all real property taxes, assessments and other governmental charges assessed against the Improved Leased Premises during the Term of this Lease. Lessee shall have the right to contest by appropriate legal proceedings, diligently pursued, without cost or expense to Lessor, the validity of any such tax, assessment or other governmental charge. Lessee hereby indemnifies Lessor against any and all liability, loss or damage sustained by Lessor by reason of such contest. Notwithstanding any of the foregoing, Lessee shall promptly pay any such tax, assessment or other government charge if at any time the Improved Leased Premises or any part thereof shall then be immediately subject to forfeiture or Lessee shall be subject to any criminal liability for nonpayment thereof. Lessor shall deliver all applicable tax bills to Lessee upon receipt to enable Lessee to timely pay all such taxes in the discount period.
		

		
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			12.            SURRENDER OF IMPROVED LEASED PREMISES. Lessee covenants that upon the termination or expiration of this Lease or any renewal thereof, Lessee shall surrender the Improved Leased Premises in good order and condition and shall surrender all keys to the Improved Leased Premises to Lessor at the place then fixed for the payment of rent. This covenant shall survive termination of this Lease.
		

		
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			13.            RIGHT OF ENTRY. Upon prior notice and in the presence of an authorized representative of Lessee (whom Lessee agrees to provide upon such notice received from Lessor), Lessor and/or its agents shall have the right to enter upon and inspect the Improved Leased Premises at all reasonable times and to exhibit the Improved Leased Premises to prospective purchasers and prospective tenants (but in this case, only during the last six (6) months of the term of this Lease). Lessor shall be permitted to affix a "To Let" or "For Sale" sign on the Improved Leased Premises during the last ninety (90) days of the term of this Lease in such place as shall not interfere with the business then being conducted at the Improved Leased Premises.
		

		
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			14.            SIGNS. Lessee shall have the right to install and maintain on the Improved Leased Premises such signs and advertising matter as Lessee may reasonably desire, subject to the prior consent of Lessor. Lessee shall comply with any laws or ordinances with respect to such signs or advertising, and shall obtain any necessary permits. Lessee agrees to maintain such signs or advertising in good condition, and to repair any damage which may be caused by erection, maintenance, repair or removal of such signs or advertising.
		

		
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			15.        LIABILITY AND OTHER INSURANCE. Lessee shall, during the entire term hereof, keep in full force and effect policies of comprehensive liability and property damage insurance, with respect to the Improved Leased Premises and the business operated by Lessee in and upon the Improved Leased Premises. The policy (or policies) shall name Lessor, and any persons, firms, or corporations designated by Lessor, including the Ground Lessor and mortgagees, if any, and Lessee as insured and shall contain a clause that the insurer will not cancel or modify the insurance without first giving the named parties thirty (30) days prior written notice. Copies of the policy or certificates of accord or insurance shall be delivered to Lessor upon the Commencement Date. If Lessee shall not comply with its covenants made in this section, Lessor may, at its option, cause insurance as aforesaid to be issued and in such event, Lessee agrees to pay the premium for such insurance promptly upon Lessor's demand as 
		

		 

 

		additional rent. All obligations contained in this Section 15 shall be subject to the requirements of Lessor's lender and/or mortgagee. In the event the Lessor's lender requires minimum insurance coverage in excess of the limits described herein, then the Lessee expressly agrees to comply with all requirements of Lessor's lender.   Failure to do so shall constitute an Event of Default under this Lease.
		

		
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			(a)            Property and Personal Injury Liability Insurance. At all times during theTerm of this Lease, Lessee shall maintain, at its sole cost, comprehensive broad-form general public liability insurance against claims and liability for personal injury, death, and property damage arising from the use, occupancy, disuse, or condition of the Leased Premises and Improvements. The insurance shall be carried by insurance companies authorized to transact business in Pennsylvania, selected by Lessee and approved by Lessor, which approval shall not be unreasonably withheld, delayed or conditioned. In addition, the following conditions shall be met:
		

		
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			(i)             The insurance provided pursuant to this Paragraph 15(a)(1) shall be in an amount no less than One Million ($1,000,000.00) Dollars for property coverage, and in an amount no less than One Million ($1,000,000.00) Dollars for one person and Two Million ($2,000,000.00) Dollars for one accident for personal injury.
		

		
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			(ii)            The insurance shall be maintained for the mutual benefit of Landlord and Lessee, any succeeding owners of the fee title in the Leased Premises, any successors and assigns of this Lease. The insurance policy or policies shall name Lessor and Lessee as insureds and shall not be subject to cancellation unless Lessor has received a minimum of thirty (30) days prior written notice of the intention of the insurer to cancel the coverage.
		

		
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			(iii)           Construction Liability Insurance. Lessee agrees either to obtain and maintain (to the extent reasonably procurable) construction liability insurance at all times when demolition, excavation, or construction work is in progress on the Leased Premises, or cause its contractors to maintain such construction liability insurance. This insurance shall be carried by insurance companies authorized to transact business in Pennsylvania, selected by Lessee and shall be paid for by Lessee. The insurance shall have limits of no less than One Million ($1,000,000.00) Dollars for property damage, and One Million ($1,000,000.00) Dollars for one person and Two Million ($2,000,000.00) Dollars for one accident for personal injury. The insurance shall be maintained for the mutual benefit of Lessor and Lessee, as well as any succeeding owners of the fee title in the Leased Premises, any successors and assigns of this Lease, against all liability for injury or damage to any person or property in any way arising out of demolition, excavation, or construction work on the premises. The insurance policy or policies shall name Lessor and Lessee as insureds and shall not be subject to cancellation unless Lessor has received a minimum of thirty (30) days prior written notice of the intention of the insurer to cancel the coverage.
		

		
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			(iv)           Certificates of Insurance. Lessee shall furnish Lessor with certificates of all insurance required by this Section 15. Lessee agrees that if it does not keep this insurance in full force and effect, Lessor may notify Lessee of this failure, and if Lessee does not deliver to Lessor certificates showing all of the required insurance to be in full force and effect within ten (10) days after this notice, Lessor may, at its option, take out and pay the premiums on the insurance needed to fulfill Lessee's obligations herein. On demand from Lessor, Lessee shall reimburse Lessor the full amount of any insurance premiums paid by Lessor, with interest at the rate of ten (10%) percent per annum from the date of Lessor's demand until reimbursement by Lessee.
		

		
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			16.            WAIVER OF SUBROGATION. Neither Lessee nor anyone claiming by, through, under or on behalf of Lessee, shall have any claim, right of action, or right of subrogation against Lessor for or based upon any loss or damage caused by any casualty, including but not limited to fire or explosion, relating to the Improved Leased Premises or property therein. Neither Lessor nor anyone claiming by, through, under or on behalf of Lessor, 
		

		 

 

		shall have any claim, right of action, or right of subrogation against Lessee for or based upon any loss or damage caused by any casualty, including but not limited to fire or explosion, relating to the Improved Leased Premises or property therein. This release shall be applicable and in force and effect only with respect to loss or damage occurring during such time as the releasor's policies shall contain a clause or endorsement to the effect that any such release shall not adversely affect or impair or prejudice the right of the releasor to recover thereunder. Lessor and Lessee each agree that their policies will include such a clause or endorsement so long as the same is obtainable and if not obtainable, shall so advise the other in writing and such notice shall release both parties from the obligation to obtain such a clause or endorsement.
		

		
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			17.            INDEMNITY.  Lessee hereby agrees to indemnify, hold harmless and defend, at its own expense, Lessor from and against any and all claims, actions, damages, liability, judgments and expenses, including without limitation reasonable attorneys' fees, which may be imposed upon or incurred by or asserted against Lessor or Lessor's interest in the Improved Leased Premises, by reason of any loss of life, personal injury or claim of injury, or damage to property or claim of damage to property in or about the Improved Leased Premises, howsoever caused, arising out of or relating to the occupancy or use by Lessee, its employees, agents or invitees, of the Improved Leased Premises, including without limitation the streets, alleys, sidewalks or parking areas.   The Lessee shall indemnify Lessor for any environmental liability, but only to the extent that such claims, damages, liability, judgments and expenses are caused by the negligence or willful misconduct of Lessee, its employees, agents and/or invitees. In addition, Lessee shall indemnify, defend and hold Lessor harmless from and against any and all expenses incurred by Lessor arising out of or relating to Lessee's failure to pay or perform its obligations under this Lease.
		

		
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			18.            CASUALTY. In the event that the Improved Leased Premises, or any portion thereof, are damaged or destroyed by any cause whatsoever, Lessee shall commence such restoration as soon as possible after such occurrence, but in no event later than ninety (90) days thereafter, and shall diligently pursue such repair or restoration to completion, with a contractor approved by Lessor. Only to the extent that the casualty to the Improved Leased Premises is caused directly by the gross negligence of Lessor, Rent shall be equitably abated based on the area of the Improved Leased Premises rendered untenantable, if any, during the period of such untenantability. Notwithstanding the foregoing, if destruction of more than forty percent (40%) of the Improvements on the Improved Leased Premises occurs at any point in the last three (3) years of the then-current Term of the Lease or if any destruction of more than ten percent (10%) of the Improvements on the Improved Leased Premises occurs in the last year of the then current Term of the Lease, then Lessee shall have the right to terminate the Lease.
		

		
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			19.            EMINENT DOMAIN.
		

		
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			 If the entire Improved Leased Premises shall be taken by reason of condemnation or under eminent domain proceedings, Lessee may terminate this Lease as of the date when possession of the Improved Leased Premises is so taken by the condemning entity. If a portion of the Improved Leased Premises, including without limitation the building, site improvements, parking or access, shall be taken under eminent domain or by reason of condemnation to such an extent that the taking materially adversely affects Lessee's use of the Improved Leased Premises, Lessee shall have the option to terminate this Lease by written notice to Lessor within forty-five (45) days of such taking. If this Lease is not so terminated, Lessee may at its sole cost and expense, and with a contractor acceptable to Lessor, restore the remaining portions of the Improved Leased Premises as Lessee deems necessary or appropriate (subject to applicable law) without abatement of rent. For purposes of this Section 19, (i) a partial taking shall be deemed to include loss or impairment of access to and from the Improved Leased Premises and (ii) grants or conveyances made in lieu or in anticipation of or under threat of a taking or condemnation shall be deemed a taking. Both parties shall pursue their own damage awards with respect to any such taking, provided however that Lessee shall be entitled to, and nothing herein shall prevent Lessee from seeking, an award for taking of or damage to Lessee's trade fixtures and any award for Lessee's moving expenses, so long as said awards do not diminish the award to which Lessor is entitled.
		

		
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			20.            DEFAULT. The occurrence of any one or more of the following events shall constitute an "Event of Default" hereunder:
		

		
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			(a)            Lessee shall fail to pay in full when due, any installment of rent or any other sum payable by Lessee hereunder, and such failure shall continue for a period of ten (10) days;
		

		
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			(b)            Lessee shall fail to perform or observe (or cause or permit any such failure) any other covenant, term, condition, agreement or obligation to be performed or observed by Lessee under this Lease or under the Ground Lease, and such failure shall continue for twenty (20) days after written notice thereof from Lessor to Lessee; provided however that a failure as described in this Section 20(b) shall not constitute a default if it is curable but cannot with reasonable diligence be cured by Lessee within a period of twenty (20) days, so long as Lessee promptly commences cure and proceeds to cure the failure with reasonable diligence and in good faith.
		

		
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			(c)            The insolvency of Lessee, as evidenced by (i) the adjudication of Lessee as a bankrupt or insolvent; (ii) the filing of a petition seeking reorganization of Lessee or an arrangement with creditors, or any other petition seeking protection of any bankruptcy or insolvency law; (iii) the filing of a petition seeking the appointment of a receiver, trustee or liquidator of Lessee or of all or any part of Lessee's assets or property; (iv) an assignment by Lessee for the benefit of creditors; or (v) the levy against any portion of Lessee's assets or property by any sheriff or other officer.
		

		
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			(d)            Lessor acknowledges and agrees that, notwithstanding any other provisions contained in this Lease Agreement, in the event (i) Lessee or its successors or assignees shall become subject to a bankruptcy case pursuant to Title 11 of the U.S. Code or similar proceeding during the term of this Lease or (ii) the depository institution then operating the Improved Leased Premises is closed or is taken over by any depository institution supervisory authority during the term of this Lease, Lessor shall be bound by all applicable federal statutes and regulations, including specifically 12 U.S.C. 1821(e)(4).
		

		
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			21.            REMEDIES. Upon the occurrence of any Event of Default, Lessor shall have the following rights and remedies in addition to all other rights and remedies otherwise available at law or in equity:
		

		
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			(a)            If Lessee shall at any time fail to pay any sum, charge, or imposition or perform any other act on its part to be performed, then Lessor, after ten (10) days written notice to Lessee and without waiving or releasing Lessee from any obligation hereunder, may pay such charge or sum of money or make any other payment or perform any other act on the Lessee's part to be made or performed, and may enter upon the Improved Leased Premises for any such purpose, and take all such action thereon as may be necessary therefor. All sums so paid by Lessor and all costs and expenses incurred by Lessor in connection with the performance of any such act, together with interest thereon at the rate of ten percent (10%) per annum from the respective dates of Lessor's making of each such payment or incurring of each such cost and expense, shall constitute additional rent payable by Lessee under this Lease and Lessor shall have the same remedies for the collection thereof as in the case of a failure to pay rent.
		

		
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			(b)            At the option of Lessor and upon written notice to Lessee, this Lease, without waiver of any other rights of Lessor herein, may be terminated and declared void, without any right on the part of Lessee to save forfeiture by payment of any sum due or by performance of any term, covenant, or condition broken and Lessor may re-enter and possess the Improved Leased Premises without demand or notice, with or without process of law, using such reasonable force as may be necessary, without being deemed guilty of trespass, eviction, forcible entry, conversion or becoming liable for any loss or damage which may be occasioned thereby. In such event, Lessor shall be entitled to recover from Lessee all damages incurred by Lessor by reason of Lessee's default including, but not limited to, the cost of recovering possession of the Improved Leased Premises; expenses of reletting, including 
		

		 

 

		necessary renovation and alteration of the Improved Leased Premises; reasonable attorneys' fees; rent payment through the balance of the term; or the difference between the rent to be paid by the Lessee pursuant to this Lease and the rent charges collected by Lessor upon reletting;
		

		
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			(c)            Lessor may retake possession of the Improved Leased Premises without terminating the Lease, in which case this Lease shall continue in effect whether or not Lessee shall have abandoned the Improved Leased Premises. In such event, Lessor shall be entitled to enforce all of Lessor's rights and remedies under this Lease, including the right to recover the rent and any other charges and adjustments as may become due hereunder;
		

		
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			(d)            At Lessor's option, the entire rent and other charges which would have become due during the balance of the lease term or renewal thereof shall be accelerated and shall at once become due and payable as if by the terms of this Lease it were all payable in advance, without presentment, demand, notice of nonpayment, protest, notice of protest, or other notice, all of which are hereby expressly waived by Lessee;
		

		
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			11
		

		
			   
		

		
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			(e)            CONFESSION OF JUDGMENT. FOR VALUE RECEIVED, LESSEE HEREBY AUTHORIZES AND EMPOWERS ANY PROTHONOTARY OR ANY ATTORNEY OF ANY COURT OF RECORD TO APPEAR FOR LESSEE, AS WELL AS FOR ALL PERSONS CLAIMING BY, THROUGH OR UNDER LESSEE, AND WITH OR WITHOUT DECLARATION FILED, UPON THE EXPIRATION OF A TEN (10) DAY PRIOR NOTICE AND CURE PERIOD, TO CONFESS JUDGMENT AGAINST LESSEE AND IN FAVOR OF LESSOR, ITS SUCCESSORS AND ASSIGNS, FOR THE SUM DUE BY REASON OF SAID DEFAULT IN THE PAYMENT OF RENT, INCLUDING UNPAID RENT FOR THE BALANCE OF THE TERM IF THE SAME SHALL HAVE BECOME DUE AND PAYABLE UNDER THE PROVISIONS OF THIS LEASE, AND/OR FOR THE SUM DUE BY REASON OF ANY BREACH OF ANY OTHER COVENANT BY LESSEE HEREIN, TOGETHER WITH INTEREST AND COSTS OF SUIT AND AN ATTORNEYS' COMMISSION OF FIVE (5%) PERCENT (BUT NO LESS THAN $1,000.00) FOR COLLECTION.  LESSOR MAY THEREAFTER ISSUE A WRIT OR WRITS OF EXECUTION UPON THE JUDGMENT OBTAINED, AND LESSEE HEREBY WAIVES AND RELEASES ALL ERRORS AND EXEMPTIONS WHICH LESSEE COULD OTHERWISE RAISE AS DEFENSES TO SAID EXECUTION.   SUCH AUTHORITY SHALL NOT BE EXHAUSTED BY ONE EXERCISE THEREOF, BUT JUDGMENT MAY BE CONFESSED AS AFORESAID FROM TIME TO TIME AS OFTEN AS ANY SAID RENT AND/OR OTHER SUMS SHALL BE IN ARREARS.   FOR THE PURPOSE OF PROCEEDING UNDER THIS SECTION, THIS LEASE SHALL BE A SUFFICIENT WARRANT, AND A TRUE AND CORRECT COPY OF THIS LEASE MAY BE FILED WITH THE COURT IN LIEU OF FILING AN ORIGINAL HEREOF;
		

		
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			(f)            IN ADDITION, FOR DEFAULT WITH FAILURE TO CURE AS SET FORTH ABOVE, LESSEE FURTHER AUTHORIZES, AT THE OPTION OF LESSOR, ANY PROTHONOTARY OR ANY ATTORNEY OF ANY COURT OF RECORD, EITHER IN ADDITION TO OR WITHOUT JUDGMENT FOR THE AMOUNT DUE UNDER THE LEASE, TO APPEAR AS ATTORNEY FOR LESSEE, AS WELL AS FOR ALL PERSONS CLAIMING BY, THROUGH OR UNDER LESSEE, AND TO CONFESS JUDGMENT IN EJECTMENT AGAINST LESSEE AND IN FAVOR OF LESSOR, FOR RECOVERY BY LESSOR OF POSSESSION OF THE IMPROVED LEASED PREMISES, FOR WHICH THIS LEASE OR A TRUE COPY THEREOF SHALL BE SUFFICIENT WARRANT; THEREUPON, IF LESSOR SO DESIRES, AN APPROPRIATE WRIT OF POSSESSION MAY ISSUE FORTHWITH WITHOUT LEAVE OF COURT. IF FOR ANY REASON ANY SUCH ACTION SHALL BE TERMINATED AND POSSESSION SHALL REMAIN IN OR BE RESTORED TO LESSEE, SUCH AUTHORITY SHALL NOT BE EXHAUSTED BY ONE EXERCISE THEREOF, BUT JUDGMENT MAY BE CONFESSED AS AFORESAID AS OFTEN AS THERE SHALL BE ANY DEFAULT WITH FAILURE TO CURE; AND
		

		
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			(g)            LESSEE HEREBY WAIVES ANY RIGHT IT MAY HAVE, INCLUDING ANY CONSTITUTIONAL RIGHT, TO NOTICE OR OPPORTUNITY FOR A HEARING PRIOR TO JUDGMENT BEING ENTERED AGAINST IT UNDER (e) OR (f) ABOVE AND PRIOR TO EXECUTION AGAINST ITS ASSETS UNDER (e) OR (f) ABOVE. LESSEE ACKNOWLEDGES THAT IT UNDERSTANDS THE CONFESSION OF JUDGMENT PROVISIONS IN (e) AND (f) ABOVE, AND THIS (g).
		

		
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			(h)            LESSEE SHALL PAY LESSOR A TEN PERCENT (10%) LATE CHARGE FOR ANY RENT PAYMENT NOT PAID WHEN DUE. SAID LATE CHARGE SHALL BEGIN TO ACCRUE ON THE FIRST DAY FOLLOWING THE EXPIRATION OF THE TEN (10) DAY GRACE PERIOD REFERENCED IN PARAGRAPH 21(a).
		

		
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			22.            CUMULATIVE REMEDIES. Lessor shall have and may exercise all remedies available to Lessor hereunder and at law and in equity and all such remedies shall be cumulative, concurrent, and nonexclusive. The waiver of or failure to exercise any one or more rights or remedies shall be wholly without prejudice to the exercise and enforcement of any other right or remedy, whether herein expressly provided for or given by law or in equity.
		

		
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			23.            SUBORDINATION AND ATTORNMENT TO LESSOR'S MORTGAGEE.
		

		
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			(a)            Lessee agrees that this Lease shall be subordinate to any mortgages that may presently or hereafter be placed upon the Lessor's interest in the Improved Lease Premises and to any and all advances to be made thereunder, and all renewals, replacements, and extensions thereof, without the necessity of any further instrument or act on the part of Lessee, subject however to the execution of a customary subordination and non-disturbance agreement which Lessee agrees to execute in the form required by Lessor's lender. Lessee will, upon written demand by Lessor, execute such instruments as may be required at any time and from time to time to confirm such subordination. Although this subordination shall be self-operative, Lessor agrees to provide Lessee with a non-disturbance agreement executed by Lessor's current mortgagee, substantially in the form attached as Exhibit "C." Lessor further agrees to use its best efforts to provide a customary non-disturbance agreement signed by any future mortgagee of Lessor. Any such subordination agreement shall provide that so long as Lessee is not in default of the terms of this Lease, the party holding the instrument to which this Lease is subordinate shall recognize and preserve this Lease in the event of any foreclosure sale or possessory action, and in such case this Lease shall continue in full force and effect. Following written notice from Lessor's lender directing Lessee to pay any rent or additional sums directly to such lender (otherwise payable to Lessor pursuant to the Lease), Lessee's payment of such sums directly to such lender shall not constitute a default under the terms of this Lease Agreement and Lessor expressly waives any claims related thereto.
		

		
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			(b)            Lessee shall, in the event any proceedings are brought for the foreclosure of any mortgage made by Lessor covering the Improved Leased Premises, attorn to the purchaser upon any such foreclosure and sale and recognize such purchaser as the Lessor under this Lease.
		

		
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			24.            ESTOPPEL CERTIFICATE. Lessee agrees, within fifteen (15) days after the Lessor's written request, to execute, acknowledge and deliver to the Lessor party a written instrument in recordable form reasonably required by Lessor and/or Lessor's lender or mortagee certifying (i) whether this Lease is in full force and effect and whether there have been any modifications, supplements, side agreements or amendments and, if so, stating such modifications, supplements, side agreements and amendments; (ii) the date to which rent has been paid; (iii) the amount of any prepaid rent and any credit due Lessee if any; (iv) the Commencement Date and whether any option to renew the Term has been exercised and, if so, the day that Renewal Term expires; (v) whether either party is in default in the performance of any covenant, agreement or condition contained in this Lease and, if so, specifying 
		

		 

 

		each such default; and (vi) such other matters as Lessor's mortgagee may reasonably require.  Any such instrument delivered pursuant to this section may be relied upon by Lessor and Lessee, and any mortgagee or permitted assignee of any of them, and any prospective purchaser of the Improved Leased Premises.
		

		
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			25.            MEMORANDUM OF LEASE AND RECORDING. Lessor and Lessee shall execute a Memorandum of Lease hereof, in form reasonably satisfactory to each of them, and Lessee may record such Memorandum of Lease in the office of the Recorder of Deeds of and for Lehigh County, Pennsylvania. Upon the Commencement Date hereof, the parties shall execute and record a modification of the Memorandum of Lease to reflect the actual term of the last Renewal Term pursuant hereto.
		

		
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			26.            ASSIGNMENT AND SUBLETTING. Neither Lessee or its successors or permitted assigns shall assign this Lease or any interest therein, sublet the whole or any portion of the Improved Leased Premises or subject its interest in this Lease to any leasehold mortgage without the prior written consent of Lessor.   No assignment or sublease shall release Lessee from its obligations to perform the terms, covenants, and conditions of this Lease. Lessor's consent shall not be unreasonably withheld, provided that: (i) the assigning or subletting entity and any guarantor remains liable for all of Lessee's obligations hereunder; (ii) there exists no Event of Default under this Lease either at the time Lessee notifies Lessor of such proposed assignment or sublease or at the time such assignment or sublease is to become effective; (iii) Lessee delivers to Lessor an executed copy of the proposed sublease or assignment; (iv) the proposed sublease or assignment shall meet all use requirements and restrictions set forth in this Lease; and (v) Lessor has no contractual requirement of to obtain the consent of Lessor's mortagee and/or lender, or alternatively, if such a contractual requirement exists, then the Lessor's mortgagee and/or lender has consented to the proposed sublease and/or assignment.
		

		
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			27.            BINDING OBLIGATION. Each and every provision of this Lease shall bind and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns.
		

		
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			28.            PROHIBITED ACTS. Lessee shall not use or operate any equipment or machinery or in any way use the Improved Leased Premises in a way which is harmful to the Improved Leased Premises. Lessee shall not cause or permit any hazardous substances to be utilized at, on or in the Improved Leased Premises except with the prior written consent of Lessor and in strict compliance with all applicable environmental laws, ordinances, rules and regulations. Lessee shall not do or allow to be done any acts, omissions, or activity which would cause the fire, hazard, or any other insurance now in force or hereinafter to be placed on the Improved Leased Premises or building, or any part thereof, to become void, suspended, or rated as a more hazardous risk than at the date of the execution of this Lease, furthermore, Lessee shall not be permitted to act or conduct business in any way that is against any applicable law.
		

		
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			29.            CONSTRUCTION AND INTERPRETATION. This Lease shall be considered as having been made, executed, and delivered in the Commonwealth of Pennsylvania, and all questions regarding its validity, interpretation, or construction shall be construed in accordance with the laws of this Commonwealth. Words contained herein that are gender specific, singular, or plural, shall, if the context permits, be construed to include all genders, and both singular and plural forms.
		

		
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			30.            WAIVER. No waiver by Lessor of any breach by Lessee of any of its obligations, agreements, or covenants hereunder and no failure of Lessor to exercise available remedies allowed upon the occurrence of an Event of Default, shall be a waiver of any subsequent breach of obligations, agreements, or covenants and nor shall it be a waiver by Lessor of its rights or remedies with respect to such or any subsequent Event of Default.
		

		
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			31.            ENTIRE AGREEMENT. This Lease and any exhibits attached hereto and forming a part hereof set forth all of the covenants, promises, agreements, conditions, and understanding between Lessor and Lessee concerning the Improved Leased Premises, and there are no covenants, promises, agreements, conditions, or understandings, either oral or written, between the parties other than as are herein set forth. No subsequent 
		

		 

 

		alteration, amendment, change or addition to this Lease shall be binding upon either Lessor or Lessee unless the same is reduced to writing and executed by Lessor and Lessee.
		

		
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			32.            NOTICES. All notices, elections, requests, demands or other communications with respect to this Lease shall be in writing and shall be deemed to have been given when hand delivered, when deposited with a reputable overnight delivery service (such as Federal Express) or when deposited in a postal depository maintained by the United States Postal Service, first class certified mail, postage prepaid to Lessor or Lessee at the addresses recited in the Preamble to this Lease, or to such other address as designated in writing by Lessor or Lessee.
		

		
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			33.            PARTIAL INVALIDITY. If any term, covenant, or condition of this Lease or the application thereof to any person, partnership, association, corporation, or other entity, is determined to be invalid or unenforceable, the remainder of this Lease, or the application of such term, covenant, or condition to persons, partnerships, associations, corporations or other entities other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term, covenant, or condition of this Lease shall be valid and be enforced to the fullest extent permitted by law.
		

		
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			34.            HEADINGS. Any headings preceding the text of the sections set forth herein are inserted solely for convenience and shall not in any way define, limit, or describe the scope, intent, or meaning of such sections, and such headings shall not constitute a part of this Lease.
		

		
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			35.            QUIET ENJOYMENT. Lessor agrees that Lessee, on payment of the rent and all other charges provided for in this Lease and Lessee's fulfillment of all obligations under the covenants, agreements and conditions of this Lease shall and may (subject to the exceptions, reservations, terms and conditions of this Lease, superior mortgages, the Ground Lease and matters of record) peaceably and quietly have, hold and enjoy the Improved Leased Premises for the Term without interference by or from Lessor or any party claiming through or under Lessor.
		

		
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			36.            TIME OF THE ESSENCE. Time is of the essence in the performance by Lessee of its obligations hereunder.
		

		
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			[Signature page follows.]
		

		
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			IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have caused this Lease to be executed by persons duly authorized as of the day and year first above written.
		

		
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						WITNESS:

					
					
						   

					
					
						LESSOR:

				
	
					
						   

					
					
						   

					
					
						POLARIS CEDAR CREST, LLC,

				
	
					
						   

					
					
						   

					
					
						a Pennsylvania limited liability company

				
	
					
						   

					
					
						   

					
					
						   

					
					
						   

					
					
						   

				
	
					
						   

					
					
						   

					
					
						   

					
					
						   

					
					
						   

				
	
					
						/s/ Jessica Gentile

					
					
						   

					
					
						By:

					
					
						/s/ James Gentile

				
	
					
						 

					
					
						   

					
					
						   

					
					
						Name:

					
					
						James Gentile

				
	
					
						   

					
					
						   

					
					
						   

					
					
						Title:

					
					
						Member

				
	
					
						   

					
					
						   

					
					
						   

					
					
						   

					
					
						   

				
	
					
						   

					
					
						   

					
					
						   

					
					
						   

					
					
						   

				
	
					
						   

					
					
						   

					
					
						   

					
					
						   

					
					
						   

				
	
					
						   

					
					
						   

					
					
						   

					
					
						   

					
					
						   

				

		 

 

			
					
						   

					
					
						   

					
					
						   

					
					
						   

					
					
						   

				
	
					
						ATTEST/WITNESS:

					
					
						   

					
					
						LESSEE:

				
	
					
						   

					
					
						   

					
					
						EMBASSY BANK FOR THE LEHIGH

				
	
					
						   

					
					
						   

					
					
						VALLEY, a Pennsylvania financial

				
	
					
						   

					
					
						   

					
					
						institution

				
	
					
						   

					
					
						   

					
					
						   

					
					
						   

					
					
						   

				
	
					
						   

					
					
						   

					
					
						   

					
					
						   

					
					
						   

				
	
					
						   

					
					
						   

					
					
						   

					
					
						   

					
					
						   

				
	
					
						/s/ Mark A. Casciano

					
					
						   

					
					
						By:

					
					
						/s/ David M. Lobach Jr.

				
	
					
						 

					
					
						   

					
					
						   

					
					
						Name:

					
					
						David M. Lobach Jr.

				
	
					
						   

					
					
						   

					
					
						   

					
					
						Title:

					
					
						CEO

				

		
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			EXHIBIT A
		

		
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			Premises
		

		
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			LEGAL DESCRIPTION
		

		
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			ALL THAT CERTAIN LOT OF LAND BEING 1142 SOUTH CEDAR CREST BOULEVARD IN SALISBURY TOWNSHIP, LEHIGH COUNTY, PENNSYLVANIA, SHOWN AS LOT A ON THE PLAN OF CENTER SQUARE ASSOCIATES RECORDED TO LEHIGH COUNTY DOCUMENT NO. 7431330, BOUNDED AND DESCRIBED AS FOLLOWS:
		

		
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			BEGINNING ATA POINT ON THE WESTERLY RIGHT-OF-WAY LINE OF CEDAR CREST BOULEVARD (A.K.A. S.R. 0029, A.K.A. LR. 557, 80 FOOT WIDE RIGHT-OF-WAY) AT THE INTERSECTION OF THE DIVIDING LINE BETWEEN PROPOSED LOT A AND PROPOSED LOT B, SAID POINT BEING DISTANT SOUTH 00 DEGREES 03 MINUTES 00 SECONDS WEST, A DISTANCE OF 237.91 FEET FROM THE DIVIDING LINE BETWEEN T.M.P. J8NE2-14-5, LANDS NOW OR FORMERLY CENTER SQUARE ASSOCIATES AND T.M.P. J8NE2-14-4, LANDS NOW OR FORMERLY KILARESKI AND FROM SAID POINT OF BEGINNING RUNNING; THENCE ALONG THE WESTERLY RIGHT-OF-WAY LINE OF CEDAR CREST BOULEVARD, SOUTH 00 DEGREES 03 MINUTES 00 SECONDS WEST, DISTANCE OF 128.34 FEET TO A POINT; THENCE THE FOLLOWING FOUR (4) COURSES AND DISTANCES CONNECTING THE WESTERLY RIGHT-OF-WAY LINE OF CEDAR CREST BOULEVARD WITH THE NORTHERLY RIGHT-OF-WAY LINE OF LINCOLN AVENUE (A.K.A. T-481, A.K.A. EAST TEXAS ROAD, 60 FOOT WIDE RIGHT-OF-WAY); (1) NORTH 89 DEGREES 57 MINUTES 00 SECONDS WEST, A DISTANCE OF 1.63 FEET TO A POINT OF CURVATURE; (2) ALONG THE OF A CIRCLE CURVING TO THE RIGHT HAVING A RADIUS OF 25.00 FEET, A CENTRAL ANGLE OF 73 DEGREES 59 MINUTES 54 SECONDS, AN ARC LENGTH OF 32.29 FEET, A CHORD BEARING SOUTH 39 DEGREES 35 MINUTES 28 SECONDS WEST, AND A CHORD DISTANCE OF 30.09 FEET TO A POINT OF COMPOUND CURVATURE; (3) ALONG THE ARC OF A CIRCLE CURVING TO THE RIGHT, HAVING A RADIUS OF 149.50 FEET, A CENTRAL ANGLE OF 03 DEGREES 37 MINUTES 40 SECONDS, AN ARC LENGTH OF 9.47 FEET, A CHORD BEARING SOUTH 78 DEGREES 24 MINUTES 15 SECONDS WEST, AND A CHORD DISTANCE OF 9.46 FEET TO A POINT; (4) SOUTH 05 DEGREES 51 MINUTES 08 SECONDS WEST, DISTANCE OF 2.26 FEET TO A POINT ON THE NORTHERLY RIGHT-OF-WAY LINE OF LINCOLN AVENUE; THENCE ALONG THE NORTHERLY RIGHT-OF-WAY LINE OF LINCOLN AVENUE, NORTH 84 DEGREES 08 MINUTES 52 SECONDS WEST, A DISTANCE OF 153.53 FEET TO A POINT; THENCE ALONG THE DIVIDING LINE BETWEEN PROPOSED LOTA AND T.M.P. J8NE2-14-7, LANDS NOW OR FORMERLY SHOEMAKER, ALONG THE ARC OF A CIRCLE CURVING TO THE RIGHT, HAVING A RADIUS OF 225.00 FEET, A CENTRAL ANGLE OF 20 DEGREES 58 MINUTES 52 SECONDS, AND ARC LENGTH OF 82.39 FEET, A CHORD BEARING NORTH 23 DEGREES 49 MINUTES 16 SECONDS EAST, AND A CHORD DISTANCE OF 
		

		 

 

		81.93 FEET TO A POINT ON THE CENTERLINE OF A 20 FOOT WIDE UNOPENED ALLEY; THENCE ALONG THE CENTERLINE OF A 20 FOOT WIDE UNOPENED ALLEY, NORTH 00 DEGREES 03 MINUTES 00 SECONDS EAST, A DISTANCE OF 65.20 FEET TO A POINT; THENCE ALONG THE DIVIDING LINE BETWEEN PROPOSED LOT A AND PROPOSED LOT B, SOUTH 89 DEGREES 57 MINUTES 00 SECONDS EAST, A DISTANCE OF 150.00 FEET TO THE PLACE OF BEGINNING.
		

		
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			CONTAINING 23,854 SQUARE FEET OF LAND (0.548 ACRE), MORE OR LESS.
		

		
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			PARCEL 548588071238-1
		

		
			 
		

		
			 
		

		
			18Exhibit-10.8

		
			 
		

		
			Village Comer EMBASSY Lease 022503
		

		
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			LEASE AGREEMENT
		

		
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			This LEASE AGREEMENT is made this 21 day of March, 2003, by and between
		

		
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			VILLAGE CORNER, LLC, a Pennsylvania limited liability company, as Landlord (hereinafter sometimes called "Landlord")
		

		
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			EMBASSY BANK FOR THE LEHIGH VALLEY, as Tenant (hereinafter sometimes called "Tenant").
		

		
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			RELEVANT FACTS
		

		
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			A.                Landlord plans to construct an office building (hereinafter sometimes referred to as the Building) on its real property. Tenant desires to lease a portion of the Building from Landlord and Landlord desires to lease such premises to Tenant.
		

		
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			B.                Tenant hereby acknowledges that it has read this Lease and is cognizant of the fact that this Lease contains restrictions upon the activities which may be conducted in the Building and other restrictions and provisions applicable to this Lease. Tenant agrees that all activities conducted by it, its employees, agents, partners and shareholders and anyone claiming by, through or under Tenant in any part of the Building shall be in accordance with the terms, covenants and conditions of this Lease including, without limitation, Paragraph 1.2 which pertains to use of Building, assignment and subleasing, specifically prohibited uses and other matters.
		

		
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			1.                 Lease of Premises.
		

		
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			1.1       Leased Premises.     Landlord hereby demises and leases to Tenant and Tenant hereby leases from Landlord, on the terms and conditions herein set forth, that portion of the Building consisting of:
		

		
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			approximately 3,584 rentable sq. ft., designated as SUITES 8 and 9
		

		
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			on the building plans maintained by the Landlord. The leased space is sometimes referred to herein as the "Premises", and its location is shown on the attached Exhibit "A".
		

		
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			The Premises are leased with bare, exterior walls insulated but not covered with drywall, and with plumbing and electrical lines and HVAC service brought to the Premises, as depicted in Landlord's shell building plans. All other finishes and improvements, including without limitation, internal walls and partitions, diffusers, terminal units, internal duct work, thermostats, paint, wall coverings, carpets, tile, cabinets, plumbing fixtures, outlets, switches, lighting and other fixtures, subpanels as required shall be the responsibility of Tenant to construct and install.
		

		
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			The building and the leased premises, when completed, will be in compliance with all applicable building, safety and fire codes and with the Americans with Disabilities Act.
		

		
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			It is understood the drive thru window and canopy construction will be at the tenant's expense. It is understood the approximate cost for said construction will be between $15,000-$18,000. It is further understood appropriate documentation will be provided to substantiate the final cost.
		

		
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			All interior finish improvements to the Premises shall be obtained from a competent construction contractor of Tenant's choice, provided, however, that Landlord shall approve the selection of Tenant's contractor (and its subcontractors) prior to the commencement of any work at the Premises. Tenant shall be responsible for completing these interior finishes and improvements to the Premises in accordance with the written architectural and 
		

		 

 

		construction agreements approved by Landlord, whose approval shall not be unreasonably withheld or delayed. Tenant shall pay any and all costs necessary to complete these interior finishes and improvements.
		

		
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			Prior to the commencement of any improvements to finish the interior of the Premises, Tenant and any contractor working in or on the Premises shall execute a Stipulation Against Liens to be recorded in the Office of the Clerk of Courts, Lehigh County, Pennsylvania, at Tenant's expense.
		

		
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			1.2        Use of Premises.     The Premises shall be used by Tenant solely as a:
		

		
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			RETAIL BANK BRANCH
		

		
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			Page 1
		

		
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			Village Comer EMBASSY Lease 022503
		

		
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			and the business activities related thereto and for no other purposes, with the sole exception that with the prior written consent of Landlord, in its sole discretion, the Premises may be used for other approved purposes.
		

		
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			Tenant shall not use or permit any part of the Premises to be used for any unlawful purpose. Tenant shall be solely responsible for obtaining all required zoning and occupancy permits.
		

		
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			Landlord agrees that, during the term of this lease, Landlord shall not lease or permit to be occupied any other portion to the Building to a Tenant for a use by such Tenant similar to or in competition with the use of the Premises by Tenant set forth in this paragraph.
		

		
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			1.3      Quiet Enjoyment.     Landlord warrants and represents that it has the right and authority to lease the Premises to Tenant. Tenant, upon the payment of all rents herein reserved and upon the performance of all terms of this lease, shall at all times during the lease term peaceably and quietly enjoy the Premises without any disturbance from Landlord.
		

		
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			1.4       Landlords Right of Entry.     Landlord and its agents and employees shall have the right to enter the Premises at all reasonable times, and upon twenty-four (24) hours prior notice to Tenant, in order to examine it, to show it to prospective purchasers, mortgagees or tenants, to make repairs, alterations, improvements or additions as Landlord may deem necessary or desirable, to place upon the Premises "for sale" and "for rent" signs, and for any other purpose whatsoever. Landlord's right of entry hereunder does not extend to personal property, documents and files possessed or owned by the Tenant and located upon the Premises. Landlord shall exercise its right of entry only in the presence of Tenant, or its designee, except in the case of emergency.
		

		
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			2.                Term of Lease.
		

		
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			2.1            Initial Term.     The term of this Lease for the Premises shall be a period of five (5) years (hereinafter the "Initial Term") beginning on the date (herein sometimes called the "Commencement Date") of substantial completion of the Premises. Substantial completion shall be deemed to have occurred thirty (30) days after the Premises may be occupied for the uses herein provided as evidenced by a Certificate of Occupancy issued by the applicable municipal authority or, in the absence of such Certificate, as determined by Landlord's Architect. Landlord and Tenant shall sign a written statement in the form of Exhibit "B" hereto setting forth the Commencement Date and termination date of the Initial Term. In the event that either Landlord or Tenant causes any delay in the substantial completion of the Premises so that the Premises are substantially completed on a date later than when it would have been substantially completed, but for such delay, then the Commencement Date shall be deemed to have occurred on the date when the Premises would have been substantially completed but for such delay. In the event that substantial completion of the Premises is delayed because of late delivery of fixtures, equipment or other materials necessary to complete the Premises to comply with Tenant's requirements, then the Commencement Date shall be deemed to have occurred on the date when the Premises would have been 
		

		 

 

		substantially completed but for such late delivery. Landlord and Tenant agree that Landlord shall use its best efforts to cause the leased premises to be delivered to Tenant for commencement of fit-out no later than November 1, 2003. In the event that Landlord delays delivery of the Premises to Tenant for fit-out beyond such date, Tenant shall receive a rental credit equal to one hundred (100%) percent of the monthly installment of Rent for each month or portion thereof of such delay.
		

		
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			2.2           Option Term.     Tenant shall have the right or option to lease the Premises for four additional terms (hereinafter sometimes called the "Option Term") of five (5) years each for a total of twenty (20) years following the termination of the Initial Term. Such options shall be exercised by Tenant sending written notice to Landlord of its intention to exercise this option at least six (6) months prior to the expiration of the Initial Term and each subsequent term, time being of the essence. Tenant's right to extend the term for each Option Term shall automatically be extinguished as if it had never existed if Tenant fails to exercise its option in the required manner within the required period of time. If Tenant shall duly exercise its right or option to lease the Premises for such Option Terms, all terms and conditions herein shall remain the same, except that (i) Tenant shall have no further right to extend the term of this Lease; and (ii) the Base Rent (hereinafter defined) at the commencement of such Option Term shall be adjusted to Fair Market Value as provided in Paragraph 3.3
		

		
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			2.3           Additional Term.     Upon the termination of the Initial Term if the options under Paragraph 2.2 are not exercised, or upon the expiration of the Option Terms, this lease shall continue upon the same terms and conditions for a further period of one (1) year and so on from year to year unless or until terminated by either Landlord or Tenant giving to other party written notice of termination at least ninety (90) days prior to the expiration of the then current term; provided, however, that upon the commencement of the Additional Term and upon each annual anniversary thereof, the Base Rent (as hereinafter defined) shall be adjusted to Fair Market Value as provided in Paragraph 3.3.
		

		
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			3.                Rent.
		

		
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			3.1        Base Rent.      For the Initial Term of this Lease, Tenant shall pay to Landlord an annual base rental of
		

		
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			SEVENTY-SEVEN THOUSAND FIFTY-SIX and 00/100 ($77,056.00) Dollars per year
		

		
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			(equal to $21.50 per rentable sq. ft. per year) payable in advance, in equal monthly installments of
		

		
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			SIX THOUSAND FOUR HUNDRED TWENTY-ONE and 33/100 ($6,421.33) Dollars,
		

		
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			on or before the first day of each month (such annual amount is hereinafter sometimes called "Base Rent"). On the second anniversary of the Commencement Date and annually thereafter, as of the anniversary of the Commencement Date, the Base Rent shall be adjusted to Fair Market Value as provided in Paragraph 3.3.
		

		
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			3.2       Payment of Rent.     Both Base Rent and Additional Rent (as defined in Paragraph 3.4) shall be payable without demand, setoff or deduction whatsoever except as may be specifically provided in this Lease. Rent shall be payable at such place as Landlord may from time to time designate. In the event that this Lease commences or expires in the middle of a month, rental for the portion of such month shall be prorated, and payable in advance.
		

		
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			3.3       Adjustment to Fair Market Value.    Whenever this Lease calls for adjustment of the Base Rent to Fair Market Value, the same shall be accomplished by multiplying the Base Rent installment for the month immediately preceding the adjustment date by twelve (12) (the "Product") and then by adding thereto a sum equal to 
		

		 

 

		the Product multiplied by the cumulative rate of change (expressed as a percentage) in the Consumer Price Index, Northeast Pennsylvania B/C from the last adjustment date to arrive at the annual Base Rent for the succeeding period.
		

		
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			3.4       Additional Rent.     Tenant shall pay to Landlord, in addition to the Base Rent specified hereinabove, from the Commencement Date and continuing through the term of this Lease and any renewal terms hereof, as Additional Rent,
		

		
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			TEN THOUSAND SEVEN HUNDRED FIFTY-TWO and 00/100 ($10,752.00) Dollars
		

		
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			(equal to $3.00 per rentable sq. ft. per year) payable in advance, in equal monthly installments of
		

		
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			EIGHT HUNDRED NINETY-SIX and 00/100 ($896.00) Dollars
		

		
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			representing ELEVEN percent (11%) of Landlord's total projected operating expenses.
		

		
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			For the initial twelve (12) months of the term of this Lease, Landlord's operating expenses shall be fixed at $3.00 per rentable sq. ft.
		

		
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			The total of the base rent plus additional rent shall be:
		

		
			EIGHTY-SEVEN  THOUSAND  EIGHT  HUNDRED   SEVEN   and  96/100   ($87,807.96)  Dollars annually or
		

		
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			SEVEN THOUSAND THREE HUNDRED SEVENTEEN and 33/100 ($7,317.33) Dollars monthly for the first year.
		

		
			As used in this Lease, the term operating expenses shall mean the reasonable costs incurred by Landlord in the management, operation and maintenance of the Building and its common areas, including, but not limited to, the cost of maintenance, real property taxes and assessments, common area utilities, non-hazardous waste removal, supplies, ground usage, property management and fire, casualty and liability insurance. Operating expenses shall not include depreciation, interest on and amortization of debt, repairs, alterations, or additions that under generally accepted accounting principles are properly classified as capital expenditures, or costs incurred in the solicitation or execution of leases.
		

		
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			A copy of the calculated operating expenses will be provided upon written request.
		

		
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			3.5        Changes in Operating Expenses.     If Landlord's operating expenses during the first twelve (12) months of the Term or such portion thereof as shall end on June 30 of the following year, exceed the sum fixed hereinabove in Paragraph 3.4, Landlord shall so notify Tenant by September 30 of the second year of the Term, and commencing on October 1 of the second year of the Term, Tenant shall pay to Landlord in the following nine (9) month period Tenant's percentage share of the increased operating expenses in nine (9) equal monthly installments.
		

		
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			If Landlord's operating expenses during the first twelve (12) months of the Term or such portion thereof as shall end on June 30 of the second year, are less than the sum fixed hereinabove in Paragraph 3.4, Landlord shall so notify Tenant by September 30 of the second year of the Term, and commencing October 1 of each year Tenant receive a credit in the following nine (9) month period Tenant's percentage share of the decreased operating expenses in nine (9) equal monthly installments.
		

		
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		Thereafter, from year (commencing July 1) to year (ending June 30) during the Term, Landlord shall calculate its annual operating expenses and deliver to Tenant Landlord's statement showing its operating expenses, any increase or decrease in which shall be collected from or credited to Tenant by Landlord in the same manner as stated herein following the initial twelve (12) months of the Term or such portion as shall end on June 30.
		

		
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			3.6       Tenants Space Ratio.     The percentage specified in Paragraph 3.4 of this Lease is that percentage determined by dividing the square footage of the Premises, as the numerator, by the total square footage of the Building less the common areas, as the denominator, as set forth in Exhibit "A" attached hereto. In the event that the completed Building, Premises or common areas contain different square footage than that set forth in the attached Exhibit, then Tenant's Space Ratio, and the corresponding percentage, shall be recalculated based upon the actual as built conditions.
		

		
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			3.7       Utilities.     Landlord and Tenant agree that separate utility metering for any and all utilities will be installed for the Premises. Tenant shall pay directly to the appropriate utility company or authority all utility charges and fees for utilities used of consumed in, on or at the Premises which are separately metered. Tenant shall indemnify and save and hold Landlord harmless from and against all fees, charges, expenses, penalties, interest and other charges with respect to utility service which is separately metered and provided directly to the Premises. If requested, Tenant shall furnish to Landlord, within ten (10) days after the date any amount is payable by Tenant directly to a utility supplier proof of payment satisfactory to Landlord.
		

		
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			3.8       Interest.      Tenant shall pay as additional rent without demand and without setoff all sums of money or charges required to be paid by Tenant under this Lease, whether or not the same be designated rent. If such amounts or charges are not paid at the time provided in this Lease, they shall nevertheless if not paid when due, be collectible as additional rent with the next installment of the rent thereafter falling due hereunder and shall bear interest from the due date thereof to the date of payment at the rate of fifteen (15%) percent per annum. Nothing in this Paragraph 3.8 shall prevent or hinder or delay Landlord from pursuing any remedy which may be available at law or in equity or pursuant to the terms of this Lease by reason of such failure by Tenant to pay sums when due.
		

		
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			3.9        Security Deposit.     In lieu of a Security Deposit, Tenant shall pay the first month's rent upon the signing of this lease as a good faith deposit for the full and faithful performance by Tenant of the terms and conditions of this Lease. Tenant waives any requirement that such payment be held in any escrow account or in any other way segregated from Landlord's other funds. Tenant further waives any requirement that such payment be held in any interest bearing account.
		

		
			 
		

		
			Landlord may apply all or any part of the deposit required to cure any default of Tenant under the terms and conditions of this Lease. In the event of such application, Tenant must deposit with the Landlord the amount applied to cure its default immediately on notice from Landlord of the nature and amount of the application.
		

		
			 
		

		
			If Landlord transfers its interest in the Lease, it may do either of the following: (1) return the deposit to Tenant, without interest, any deductions made and not replaced by Tenant; or (2) transfer the deposit, without interest, minus any deductions made and not replaced by Tenant, to Landlord's successor in interest. In the event Landlord transfers all or any portion of the deposit under this Paragraph, upon such transfer Landlord shall be relieved of all obligations with regard to the deposit, and all of rights and obligations regarding such good faith deposit shall accrue to the transferee. Landlord shall give Tenant notice of any such transfer, including the name and address of the transferee and the amount transferred.
		

		
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			4.                Casualty Loss.
		

		
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			4.1        Total Destruction     If the Premises or the Building are totally destroyed by fire, flood or other casualty, or if the Building or Leased Premises should be so damaged by such cause that the rebuilding or repairs cannot, in Landlord's reasonable judgment, be completed within ninety (90) working days and at a cost not to exceed One Hundred Fifty and no/00 ($150.00) Dollars per rentable sq. ft. excluding Tenant's finishes, Landlord shall give written notice of such determination to Tenant and this Lease shall terminate, and rent be abated for the unexpired portion of the Lease, effective as of the date of determination.
		

		
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			4.2            Partial Destruction     If the Premises are damaged by fire, flood or other casualty, but not to such an extent that rebuilding or repairs cannot reasonably be completed within ninety (90) working days at a cost not to exceed One Hundred Fifty and no/00 ($150.00) Dollars per rentable sq. ft. excluding Tenant's finishes, this Lease shall not be terminated, but Base and Additional Rent shall be abated pro rata for the number of days during which Tenant is reasonably unable to utilize the Premises for its intended purposes.
		

		
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			5.               Insurance.
		

		
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			Landlord shall maintain and keep in effect throughout the term of this Lease a liability insurance policy with a minimum combined single limit of not less than One Million and no/100 ($1,000,000.00) Dollars for personal injury and property damage, and shall purchase casualty insurance for not less than the full replacement cost of the Premises other than the Tenant's interior finish improvements. Such casualty policy shall satisfy all coinsurance requirements of the policy and may contain a commercially reasonable deductible and shall be included in Landlord's policy for the Building. Tenant, at Tenant's sole cost and expense, shall maintain and keep in effect throughout the term of this Lease (1) a premises general liability insurance policy with a minimum combined single limit of not less than One Million and no/100 ($1,000,000.00) Dollars, for personal injury and property damage, and (2) broad form casualty insurance for the full replacement cost of Tenant's interior finish improvements. In the event of an insured casualty loss of the Building, at Landlord's option, this Lease shall be terminated in its entirety. In the event of a casualty loss of less than all of the Building, the insurance proceeds shall be applied at Landlord's option to repair or replace the damage and, if applicable, in accordance with the provisions of Landlord's financing documents to which this Lease is subordinate. The aforementioned policies of insurance shall name as the insured Landlord and Tenant as their interests may appear, and shall contain standard mortgagee endorsements for any holders of mortgage(s) on the Premises. In the event of a loss due to any casualty or peril for which Landlord or Tenant has agreed to provide insurance, each party shall look solely to its insurance (including policies maintained by the other party where the damaged party is named as the additional insured) for recovery. To the extent permissible by their insurers, Landlord and Tenant hereby grant to each other, on behalf of an insurer providing insurance to either of them with respect to the Premises, the improvements thereon and the equipment, a waiver of any right of subrogation which any insurer of one party may acquire against the other by virtue of the payment of any loss under such insurance. Landlord and Tenant agree to furnish each other suitable evidence by certificate or copies of such insurance policies indicating that such insurance is in force and includes, if available, the above-described waiver of subrogation and other clauses.
		

		
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			6.                Maintenance of Premises.
		

		
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			6.1        Tenant's Obligation.      Throughout the term of this Lease, Tenant shall, at its sole cost and expense, make all necessary repairs, maintenance, and replacements to keep the Premises in good order and repair, including all floor and wall coverings, all doors, the ceiling system, all light fixtures and bulbs, reasonable wear and tear alone excepted. Tenant shall not be obligated to maintain, repair or replace portions of the building systems which also service other tenants or which also service common areas. Tenant shall, at its sole cost and expense, make all necessary repairs, replacements and maintenance the need for which is caused by or results from the acts or negligence of Tenant or Tenant's employees, agents, contractors, subtenants or invitees. The quality of all work performed by or on behalf of Tenant, and the quality of all materials furnished, by or on behalf of Tenant, shall be of a quality at least equal to the quality of the original construction. Tenant shall periodically maintain the Premises, as needed, so that the appearance of the Premises is at all times at least consistent with the prevailing quality of the appearance of similar first class buildings in the Lehigh Valley.
		

		
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			6.2        Landlord's Obligation.     Landlord shall be responsible for all repairs and maintenance which are not the express responsibility of Tenant as provided above, including, but not limited to the roof, exterior walls, 
		

		 

 

		foundation, building systems not serving solely the Premises, roof-mounted air conditioning units not serving solely the Premises, elevators, exterior windows and common areas.
		

		
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			6.3       Surrender.      Upon the termination of this Lease, whenever occurring or howsoever caused, Tenant shall surrender the Premises and all improvements and replacements constructed or placed thereon, broom clean, in good condition and repair, and in the same condition, maintenance and repair as Tenant has agreed in Paragraph 6.1 above, reasonable wear and tear excepted. Provided that Tenant is not in default hereunder at the termination of this Lease, Tenant may, at Tenant's sole cost and expense, remove from the Premises Tenant's equipment and Tenant's trade fixtures not attached to the Premises in any manner. Tenant, at Tenant's sole cost and expense shall repair any damage caused by such removal. Tenant's removal of the foregoing items and repair of any damage caused thereby shall be effectuated during the week immediately prior to the termination of this Lease. Tenant shall comply with all laws, rules, ordinances and directives applicable to all work performed by Tenant or on Tenant's behalf.
		

		
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			6.4        Improvements.     Tenant shall have the right to make and install such improvements, additions, fixtures, equipment, and installations in the Premises as Tenant shall desire, subject to Landlord's prior written consent, which consent shall not be unreasonably withheld. Tenant shall comply with all laws, rules, ordinances and directives applicable to all work performed by Tenant or on Tenant's behalf. Tenant shall obtain all required permits and approvals with respect to all such work, Tenant shall not commence any such work unless and until Tenant has complied with all of Landlord's requirements with respect thereto, including, without limitation, requirements for insurance, mechanics lien waivers, approval of contractors and subcontractors and approval of plans and specifications. All improvements, additions, fixtures, and installations, other than movable equipment, including without limitation, items which are an integral part of the Building or a building system (such as fixtures, plumbing, and telephone, electrical and other utility lines) shall be the property of the Landlord on termination of the Lease and may not be removed by Tenant. However, it is understood that the vault placed in this location may be removed at tenant's expense or, in the alternative, may remain on the premises at the termination of the lease providing that it will be the responsibility and the expense of Tenant to restore the vacated area to Landlord's satisfaction. Tenant may also remove certain other improvements attached to the Premises provided they can be removed without causing material damage and under the same terms of the preceding sentence.
		

		
			 
		

		
			7.                Signs.
		

		
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			Tenant shall not place or allow to be placed any stand, booth, sign or show case upon the doorsteps, vestibules or outside walls or pavements of the Premises, the Building or any common areas of the Building, or paint, place, erect or cause to be painted, placed or erected any sign, projection or devise on or in any part of the Premises, the Building or any common areas of the Building, except as provided for herein.
		

		
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			Tenant shall be permitted a sign on the exterior pole signboard. The size and design of such sign shall be approved by Landlord, in writing, prior to installation. Tenant shall be solely responsible, at Tenant's sole cost and expense, for the cost of Tenant's sign, including, but not limited to, design, construction, and installation.
		

		
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			Tenant shall be responsible, at Tenant's sole cost and expense, for the identification lettering of Tenant's Premises, which lettering shall be approved by Landlord, in writing, prior to installation. Tenant shall, at Tenant's sole cost and expense, insert a sign or other identifier on the exterior of the Building designating Tenant's use of the Premises, subject to approval, in writing, prior to installation, by Landlord.
		

		
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			Tenant shall remove any sign, projection or device painted, placed or erected, if permission has been granted and restore the walls, etc., to their former conditions, at or prior to the expiration of this lease.
		

		

		

		 

 

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			In case of the breach of this covenant (in addition to all other remedies given to Landlord in case of the breach of any conditions or covenants of this lease) Landlord shall have the privilege of removing said stand, booth sign, showcase, projection or device, and restoring said walls, etc., to their former condition, and Tenant, at Landlord's option, shall be liable to Landlord for any and all expenses so incurred by Landlord.
		

		
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			8.                Rules and Regulations; Parking.
		

		
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			8.1        Rules and Regulations.     Landlord shall have the right from time to time to promulgate, adopt, amend, supplement, and modify rules and regulations applicable to (i) the Building; (ii) each demised space therein; (iii) the parking areas which are made available to the Building; (iv) the common area within the Building; and (v) all other areas which in any way affect the Building or its use or operation.. Tenant agrees to abide by, and comply with, all of the terms and provisions of the rules and regulations in effect from time to time as if such rules and regulations were specifically set forth in this Lease. Landlord agrees that all rules and regulations shall, to the extent practicable, apply uniformly to all building tenants.
		

		
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			8.2        Parking.     Landlord confirms that the successful operation of the Building is dependent upon sufficient accessible parking being available to customers, clients, patients, tenants in the Building, and their employees. Therefore, Landlord agrees that all tenants and their employees may park their vehicles in those portions of the parking lot constructed by Landlord. However, all tenants and their employees shall park their vehicles only in those portions of the parking lot constructed by Landlord designated by Landlord for tenant and employee parking. To enable this provision to be enforced, Tenant shall furnish Landlord, upon demand from time to time, with the state automobile license number assigned to the vehicles utilized by Tenant and its employees who work in the Premises. Tenant shall be responsible for compliance with this provision and shall require its employees to comply with it. Three (3) parking spaces in front of the building shall be allocated and designated for Embassy Bank's use only.   There is ample parking on the west side of the building for bank use.   Landlord may modify, amend, suspend, or otherwise change this Paragraph 8.2 by exercising from time to time its rights pursuant to Paragraph 8.1.
		

		
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			9.                Trash Removal and Landlord's Services.
		

		
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			Except as specifically set forth in this Lease, Landlord shall not be obligated to supply or provide any services to Tenant or to the Premises. Landlord's system for the removal of trash from the Premises shall be for the removal of normal office trash such as papers and cups and shall not be for the removal of any items (hereinafter called Special Items) which, by law, require special handling or special disposal such as, by example only, radioactive material, explosive material, toxins or human parts. Tenant shall remove and dispose of all Special Items, as its sole cost and expense in accordance with all applicable laws, ordinances, rules and regulations.
		

		
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			10.              Compliance with Laws and Governmental Regulations.
		

		
			 
		

		
			10.1     Governmental Rules.     Tenant shall throughout the term of this Lease, at its sole expense, promptly comply with all laws, ordinances, rules, directives and regulations of all federal, state and municipal governments and appropriate departments, commissions, boards and offices thereof, and the orders and regulations of the National Board of Fire Underwriters, or any other body now or hereafter exercising similar functions, which may be applicable to the Premises, Tenant, or the use thereto by Tenant.
		

		
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			10.2      Permits.  Tenant at its sole cost and expense, shall obtain all permits and authorizations required for Tenant's activities in the Building. In the event any occupant of the Premises desires to provide services therein 
		

		 

 

		to customers, clients, patients or others which cannot be legally provided therein unless Building itself has certain licenses, certificates, and facilities, then such services shall not be provided unless the Building has all such required certificates, licenses, and facilities. Landlord is not required to obtain any such certificates, licenses or facilities other than the customary Certificates of Occupancy for the Building.
		

		
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			10.3      Safety.     Tenant shall conduct all of its activities in the Premises in a safe manner so as not to create any risks to the Building or any occupant or invitee of the Building. At Tenant's expense, Tenant shall cause the Premises to contain all necessary safety features for the activities conducted therein such as, by example only, lead shielded walls if Tenant uses X-ray equipment.
		

		
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			10.4      Insurance Reimbursement.     Without in any way relieving Tenant of any obligations imposed by Paragraph 10.1 above, Tenant shall promptly reimburse Landlord upon demand, if anything, done or not done in the Premises causes an increase in the cost to Landlord for any insurance carried by Landlord.
		

		
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			11.              Assignments and Subletting.
		

		
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			Tenant shall have the right to sublet the Premises on such terms and to such parties (subject to the use restrictions set forth in Paragraph 1 above and all other terms and conditions hereof) with the prior written consent of Landlord which shall not be unreasonably withheld. No sublease shall in any manner relieve or release Tenant from its obligations as Tenant under this lease. Tenant shall not under any circumstances have the right to mortgage, pledge or hypothecate this Lease. All subleases shall be in writing on a form approved by Landlord in writing in advance. No sublease shall be effective unless and until all requirements of Landlord have been satisfied.
		

		
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			12.               Mechanics Liens.
		

		
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			Tenant shall not cause or permit to be created, remain, and shall discharge any lien, encumbrance or charge which might be or become a lien or encumbrance upon the Building, the Premises or any part thereof or the income therefrom, including, without limitation, any mechanics, laborers or materialmans lien or charge.
		

		
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			13.               Subordination; Non-Disturbance.
		

		
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			This Lease shall be subject and subordinate at all times to the lien of any mortgages, security interests and other encumbrances now or hereafter placed upon the Building or any part thereof and to all renewals, modifications, amendments, consolidations, replacements and extensions thereof. Tenant shall promptly execute and deliver in recordable form any instruments which may be reasonably required by Landlord in confirmation of such subordination upon Landlord's request. Tenant shall attorn to and recognize the holder of any mortgage(s) or any purchaser at a foreclosure sale under any mortgage(s) or any transferee who acquires the Building by deed in lieu of foreclosure, and the successors and assigns of such purchasers, as Landlord for the unexpired balance (and any extensions, if exercised) of the term of this Lease upon the same terms and conditions set forth herein. In the event Landlord subjects the Building to any mortgage or other financing, Landlord shall use its best efforts to assure that this Lease shall be superior to the lien of any or all such mortgages or financing or any part thereof and to all renewals, modifications, amendments, consolidations, replacements and extensions thereof.
		

		
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			Any and all Subordinatioiifs) signed by Embassy Bank in favor of any mortgagee of the Landlord will provide that the mortgagee(s) be subject to Tenant's non-disturbance rights, as set forth in paragraph 1.3 of this lease.
		

		
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			14.               Public Taking.
		

		
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		If the Building becomes the subject of condemnation, an eminent domain proceeding or a like court proceeding which materially affects the conduct of Tenant's business in the Premises, Landlord or Tenant may terminate this Lease upon written notice to the other party delivered within ninety (90) days of the date title vests in the condemner. All compensation or damages awarded or paid upon the total, partial or temporary taking of the Building shall be the property of Landlord; provided, however, that nothing herein contained shall be construed to preclude Tenant from prosecuting any claim directly against the condemning authority for business dislocation damages, moving expenses, removal expenses, and depreciation to, damage to or cost of the removal of, transportation of and reinstallation of the removable stock, goods, fixtures, furniture, machinery, equipment and other personal property of the Tenant or any other damages which are payable to tenants under the provision of the Eminent Domain Code of Pennsylvania and under any other applicable law, provided, in each instance, that any sums awarded to Tenant do not in any way diminish or otherwise adversely affect the amount of any award(s) which may be payable to Landlord. Tenant shall not be precluded from prosecuting any other claim directly against the condemning authority in such condemnation proceedings or otherwise for any damages allowed to Tenant by law if such claim shall not diminish or otherwise adversely affect Landlord's award. If the condemnation shall result in the taking of only a portion of the Building and shall not materially adversely affect the conduct of Tenant's business in the Premises, this Lease and Tenant's obligations hereunder, including, without limitation, the payment in full of all Base Rent and Additional Rent, shall continue in full force and effect.
		

		
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			15.               Indemnification.
		

		
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			Tenant shall indemnify and save harmless Landlord from and against any and all claims arising from the occupancy, conduct, operation or management of the Premises or from any work or thing whatsoever done or which was not done in or on the Premises, or arising from any breach or default on the part of the Tenant in the performance of any covenant or agreement on the part of Tenant to be performed pursuant to the terms of this Lease, or under the law, or arising from any act, neglect or negligence of Tenant, or any of its agents, contractors, servants, employees, or licensees, or arising from any accident, injury or damage whatsoever occurring during the term of this Lease, in or about the Premises, and from and against all costs, expenses and liabilities incurred in connection with any such claim or action or proceeding brought thereon (including without limitation the fees of attorneys, investigators and experts); and in case any action or proceeding be brought against Landlord by reason of any such claim, Tenant upon notice from Landlord covenants at Tenant's cost and expense to resist or defend such action or proceeding or to cause it to be resisted or defended by an insurer.
		

		
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			The indemnification of the Landlord will not apply to the Landlord's own negligence or willful acts.
		

		
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			16.              Default by Tenant; Termination and Entry; Distraint.
		

		
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			16.1      Default.     In the event Tenant shall at any time be in default in the payment of rent herein
		

		
			reserved, or of any other sum required to be paid by Tenant under this Lease, or in the performance of or compliance with any of the terms, covenants, conditions or provisions of this Lease, or compliance with any rule or regulation promulgated by Landlord, or if Tenant shall file a petition for relief under the federal Bankruptcy Code or shall have filed against it a petition in bankruptcy or insolvency which is not discharged within forty-five (45) days of filing, or Tenant shall make an assignment for the benefit of creditors or shall file any proceedings for reorganization or an arrangement under any federal or state law, or if any proceedings for the appointment of a receiver shall be instituted by any creditor of Tenant under any state or federal law which is not discharged within forty-five (45) days of filing, or if Tenant is levied upon and is about to be sold out upon the Premises under execution or other legal process, or if the Premises shall be deserted abandoned or vacated, or if Tenant fails to continuously conduct its business activities in the Premises, the occurrence of any such event shall constitute an event of default and a breach under this Lease. 16.2 Termination and Entry. Upon the occurrence of any event of default or breach of this Lease, Tenant shall receive written notice thereof and shall have a period of five (5) days, in the case of a monetary default, or thirty (30) days, in the case of a nonmonetary default, within which to cure said default or, only in the case of a nonmonetary default, have thirty (30) days to notify Landlord that it is proceeding in good faith to cure said default or breach. In the event that Tenant has failed within said period to cure the default or breach, or provide the notice aforesaid, then in addition to any other rights or remedies Landlord may have under this Lease or at law or in equity, Landlord shall have the right to terminate this Lease and the term hereby created without any right on the part of Tenant to waive the forfeiture by payment of any sum due or by other performance of any condition, term or covenant broken. In such event Landlord shall have the right to re-enter or repossess the Premises, either by force, 
		

		 

 

		summary proceedings, surrender or otherwise, and dispossess and remove therefrom the Tenant, and any other occupants thereof, and their effects, without being liable for any prosecution therefore. Landlord may store such effects at Tenant's expense and/or dispose of all or any of them at any time(s) without being liable to Tenant in any manner. In such event Landlord may, at its option, relet the Premises or any part thereof for such term as Landlord desires and in such event Tenant shall be liable for and shall pay to Landlord, as and for liquidated and agreed current damages for Tenant's default, all rent then due and the rent for the unexpired balance of the lease term less the net proceeds of any reletting after deduction of all Landlord's expenses in connection with such reletting, including, without limitation all repossession costs, brokerage commissions, legal expenses, attorneys fees, and costs of alterations. Such reletting and liquidation damages shall not apply if the lessee pursuant to such reletting defaults. Notwithstanding the foregoing, upon default hereunder the balance of the rent unpaid for the remainder of the term of this Lease, together with all other charges, payments, costs and expenses herein agreed to be paid by Tenant, and all costs and reasonable attorneys fees of Landlord (whether internal or external) incurred and likely to be incurred in connection with any default or the collection of sums due from Tenant hereunder, shall become immediately due and payable without any notice or demand whatsoever by Landlord and may be collected by distraint or any other means. It is agreed that the Landlord will exercise reasonable efforts to mitigate its damages.
		

		
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			Village Comer EMBASSY Lease 022503
		

		
			 
		

		
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			16.3      U.C.C. Rights.      Upon default by Tenant, Landlord shall have and may exercise any of or all of the rights and remedies provided to a secured party under the Uniform Commercial Code then in force in Pennsylvania provided, however, that upon request of Tenant, Landlord shall execute a waiver of its lien as to leased or financed equipment or fixtures in favor of any bank, leasing company or other lender providing financing for Tenant.
		

		
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			16.4      Assignee's Rights.      The right by Landlord to exercise any and all rights upon a default may also be exercised by any assignee of this Lease or of Landlord's right, title and interest in this Lease in the name of the Landlord or in the name of such assignee. Landlord and Tenant acknowledge Landlord's right to assign its rights in this Lease and Tenant hereby consents to such assignment and upon written notice from Landlord and an assignee agrees to make any and all payments hereunder directly to said assignee.
		

		
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			16.5      Non-exclusivity.     No right or remedy herein conferred upon or reserved to Landlord is intended to be exclusive of any other right or remedy herein or by law provided but each shall be cumulative and in addition to every other right or remedy given herein or now or hereafter existing at law or in equity by statute.
		

		
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			16.6     Waiver. No waiver by Landlord of any breach by Tenant of any of Tenant's obligations, agreements or covenants herein shall be a waiver of any subsequent breach or of any obligation, agreement or covenant, nor shall any forbearance by Landlord to seek a remedy for any breach by Tenant be a waiver by Landlord of any rights and remedies with respect to such breach or default or with respect to any other breach or default.
		

		
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			16.7      Cure by Landlord.     If Tenant shall be in default hereunder, Landlord may, but shall not be
		

		
			obligated to, in addition to any other rights which Landlord may have, cure such default on behalf of Tenant. In such event Tenant shall reimburse Landlord upon demand for any sums paid or costs incurred by Landlord in curing such default, including an administration fee of fifteen percent (15%) per annum of all sums advanced by Landlord as aforesaid, which sums, costs and fee shall be deemed Additional Rent payable hereunder.
		

		
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			17.              Notices.
		

		
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			Notices required or provided for in the Lease Agreement shall be given in writing by personal hand delivery or United States certified mail, postage prepaid, addressed as follows:
		

		
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		﻿
		

			
					
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						To Landlord at:

					
					
						Vincent A. Palumbo, Manager

				
	
					
						﻿

					
					
						      Village Corner, LLC

				
	
					
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						      1612 W. Allen Street 2nd floor

				
	
					
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						       Allentown, PA, 18102

				

		
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						With a Simultaneous

					
					
						Charles E. Shoemaker, Jr., Esquire

				
	
					
						Copy to:

					
					
						      727-729 North 19th Street

				
	
					
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						       Allentown, PA,   18104

				
	
					
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						To Tenant at:

					
					
						Embassy Bank

				
	
					
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						      P.O. Box 20405

				
	
					
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						      Lehigh Valley, PA, 18002-0405

				
	
					
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						      Attn. David M. Lobach Jr.

				

		
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			Page 9
		

		
			   
		

		
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			Village Coiner EMBASSY Lease 022503
		

		
			 
		

			
					
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						With a Simultaneous

					
					
						 

				
	
					
						Copy to:

					
					
						Attorney Fred Jacobs

				
	
					
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						     214 Bushkill Street

				
	
					
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						     Easton, PA, 18042-1886

				

		
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			or to such other address or persons as the parties may designate by notice in accordance with this paragraph. Payments of rent hereunder shall be made to Landlord at the address from time to time designated as aforesaid for the giving of notice.
		

		
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			18.              Effect of Agreement.
		

		
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			18.1      Construction.     This Lease shall constitute the entire agreement of the parties and supersedes all prior or contemporaneous agreements and understandings, and there are no other terms and conditions other than those set forth herein. No covenant or condition not expressed in this Lease shall be effective to interpret, change, or restrict this Lease. No change, termination or attempted waiver of any of the provisions of this Lease shall be binding on the parties unless in writing. The rights, obligations, duties and agreements of the parties hereto shall inure to and be binding on their respective heirs, administrators, executors, personal representatives, successors and assigns, except as otherwise herein provided.
		

		
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			Nothing herein expressed or implied is intended or shall be construed to confer upon or to give to any person or entity, other than the parties hereto, their respective heirs, administrators, executors, personal representatives, successors and assigns and their respective partners or shareholders, or any of them, any rights or remedies under or by reason of this Lease.
		

		
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			18.2     Invalid Provisions.      If any term, condition, clause or provision of this Lease is determined to be invalid or unenforceable, then all other terms, conditions, clauses or provisions herein set forth shall nevertheless be valid and continue in full force and effect.
		

		
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			18.3     Applicable Law, Jurisdiction and Venue. This Lease and the interpretation and construction thereof shall be governed by the laws of the Commonwealth of Pennsylvania. This Lease may not be recorded 
		

		 

 

		without the consent of Landlord and Tenant, and any such recordation without written consent shall be of no effect and, if recorded by Tenant, shall, at the option of Landlord, be an event of default hereunder by Tenant.
		

		
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			The parties hereto agree that the sole and exclusive jurisdiction and venue for and with regard to the resolution of any and all disputes between the parties hereto shall be vested in the Court of Common Pleas of Lehigh County, Pennsylvania.
		

		
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			18.4      Headings.      The headings and captions in this Lease shall be given no effect and are only for convenience.
		

		
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			18.5     Pledge of Lease.     Tenant shall not pledge its interest in this Lease or grant any security interest in its interest in this Lease or otherwise hypothecate this Lease. The immediately preceding sentence shall apply in all events including, without limitation, in the event of any financing obtained by Tenant involving the Premises or in the event of any loan whatsoever.
		

		
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			IN WITNESS THEREOF, the parties hereto have executed this Lease Agreement under seal the day and year first above written, intending to be legally bound thereby.
		

		
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						ATTEST:

					
					
						   

					
					
						LANDLORD:

					
					
						 

				
	
					
						   

					
					
						   

					
					
						   

					
					
						   

					
					
						 

				
	
					
						/s/ Mary Shelley

					
					
						   

					
					
						/s/ Vincent A. Palumbo

					
					
						 

				
	
					
						   

					
					
						   

					
					
						Village Corner, LLC

					
					
						 

				
	
					
						   

					
					
						   

					
					
						By:

					
					
						Vincent A. Palumbo, Manager

					
					
						 

				
	
					
						   

					
					
						   

					
					
						   

					
					
						   

					
					
						 

				
	
					
						   

					
					
						   

					
					
						   

					
					
						   

					
					
						 

				
	
					
						WITNESS:

					
					
						   

					
					
						TENANT:

					
					
						   

					
					
						 

				
	
					
						   

					
					
						   

					
					
						   

					
					
						   

					
					
						 

				
	
					
						/s/ Elmer Gates

					
					
						   

					
					
						/s/ David M. Lobach Jr.

					
					
						 

				
	
					
						   

					
					
						   

					
					
						Embassy Bank

					
					
						 

				
	
					
						   

					
					
						   

					
					
						By:

					
					
						David M. Lobach Jr.

					
					
						 

				

		
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			Page 10
		

		
			   
		

		
			 
		

		
			ADDENDUM
		

		
			TO
		

		
			LEASE AGREEMENT
		

		
			 
		

		
			The following shall be added and/or amended and made part of the Lease Agreement entered into between the undersigned parties on     March 21,    2003, 2003.
		

		
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			Section 1.1    Leased Premises     The following is to be added as the second paragraph - "The building and the leased premises shall be constructed in a good and workmanlike manner and in conformity with the building plans and specifications which are attached as Exhibit "C." The Landlord will correct or cause to be corrected any defects in materials or workmanship provided a list of all such defects is given to Landlord within ninety (90) days of Tenant's occupancy."
		

		
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			Section 1.2    Use of Premises     The following sentence shall be added at the end of Section 1.2 - "No suites or space In the Village Corner complex will be leased to or used by any Tenant for the conduct of a check cashing or pay day loan business, pawn shop, massage parlor, retailer of 'sexual aids' or similar type businesses."
		

		
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		Section 1.4    Landlord's Right of Entry     The first sentence is amended to read "Landlord and its agents and employees shall have the right to enter the Premises at all reasonable times, and upon twenty-four (24) hours prior notice to Tenant, In order to examine it, to show it to prospective purchasers, mortgagees or tenants, to make repairs, alterations, Improvements or additions as Landlord may deem necessary or desirable and for any other purpose whatsoever. However no 'for sale' or 'for rent' signs shall be placed inside or on the Premises."
		

		
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			Section 2.1    Initial Term     The first and second sentences are replaced by the following: The term of this Lease for the Premises shall be a period of five (5) years (hereinafter the "Initial Term") beginning on the date (herein sometimes called the "Commencement Date") of substantial completion of the Premises or upon physical occupancy of the Tenant whichever occurs first Substantial completion shall be deemed to have occurred thirty (30) days after the Premises may be occupied for the uses herein provided as evidenced by a Certificate of Occupancy issued by the applicable municipal authority.
		

		
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			Section 3.1    Base Rent     The last sentence of the first paragraph shall be amended to read "Beginning with the twenty-fifth (25th) month following the Commencement Date and annually thereafter, as of the anniversary of the Commencement Date, the Base Rent shall be adjusted to Fair Market Value as provided in Paragraph 3.3."
		

		
			 
		

		
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			Section 3.5    Changes in Operating Expenses. Insert the following statement between the first and second paragraph of this section "Tenant will be given the opportunity to review, obtain reasonable verification of and consult with the Landlord for thirty (30) days after each September 30 concerning adjustments in Tenant's percentage share of the increased operating expenses before the adjustments have to be paid over the next nine months."
		

		
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			Section 3.9    Security Deposit.     This section is amended to read: "In lieu of a Security Deposit, Tenant shall pay the first month's rent upon the signing of this lease as a good faith deposit for the full and faithful performance by Tenant of the terms and conditions of this Lease." The remainder of this section is stricken.
		

		
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			Section 4.1     Casualty Loss.    The wording 'effective as of the date of determination' is changed to read 'effective as of the date of destruction'
		

		
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			Section 6.4     Improvements.    This   Section  shall  be   replaced  in  its  entirety  by  the following: "Tenant shall have the right, at Tenant's expense, to make and install such improvements, additions, fixtures, equipment, and installations in the Premises as Tenant shall desire, subject to Landlord's prior written consent, which consent shall not be unreasonably withheld. Tenant shall comply with all laws, rules, ordinances and directives applicable to all work performed by Tenant or on Tenant's behalf. Tenant shall obtain all required permits and approvals with respect to all such work, Tenant shall not commence any such work unless and until Tenant has complied with all of Landlord's requirements with respect thereto, including, without limitation, requirements for insurance, mechanics lien waivers, approval of contractors and subcontractors and approval of plans and specifications. All improvements, additions, fixtures, and installations (including the proposed canopy), other than movable equipment, including without limitation, items which are an integral part of the Building or a building system (such as fixtures, plumbing, and telephone, electrical and other utility lines) shall be the property of the Landlord on termination of the Lease and may not be removed by Tenant." However, it is understood that the vault, ATM machines, night depositories, drive-thru equipment and other bank equipment placed in this location may be removed at Tenant's expense or, in the alternative, may remain on the premises at the termination of the lease providing that it will be the responsibility and the expense of Tenant to restore the vacated area to Landlord's satisfaction.
		

		
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			Section 10.2  Approvals       Insert as 10.2.1 'Tenant's obligations under this Lease are conditioned upon the approval of the Lease and the location of the premises by the Pennsylvania Department of Banking and the FDIC for which Tenant shall diligently apply following the signing hereof.   In the event such approvals cannot be obtained, this Lease shall be void and all deposits and rentals previously paid by Tenant shall be refunded without offset."
		

		
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			Section 16.1     Insolvency     Insert as 16.1.1 "Not withstanding any other provisions contained in this Lease, in the event (a) Tenant or its successors or assignees shall become insolvent or bankrupt, or their interests under the Lease shall be levied upon or sold under execution or other legal process, or (b) the depository institution then operating on the Premises is closed, or is taken over by any depository institution supervisory authority (hereinafter referred to as the "Authority"), Landlord may in either such event, terminate this Lease only with the concurrence of any Receiver or Liquidator appointed by such Authority; provided, that in the event this Lease is terminated by the Receiver or Liquidator, the maximum claim of Landlord for rent, damages or indemnity for injury resulting from the termination, rejection, or abandonment of the unexpired Lease shall by law in no event exceed all accrued and unpaid rent to the date of termination."
		

		
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			All other terms and conditions of the Lease Agreement shall remain in full force and effect.
		

		
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			IN WITNESS THEREOF, the parties hereto have executed this Addendum to Lease Agreement under seal the day and year set forth below, intending to be legally bound thereby.
		

		
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						ATTEST:

					
					
						 

					
					
						LANDLORD:

				
	
					
						   

					
					
						 

					
					
						Village Corner, LLC

				
	
					
						   

					
					
						 

					
					
						   

					
					
						   

					
					
						   

				
	
					
						   

					
					
						 

					
					
						   

					
					
						   

					
					
						   

				
	
					
						/s/ Mary Shelley

					
					
						 

					
					
						By:

					
					
						/S/ Vincent A. Palumbo

				
	
					
						   

					
					
						 

					
					
						Vincent A. Palumbo, Managing Partner

				
	
					
						   

					
					
						 

					
					
						Village Corner, LLC

				
	
					
						   

					
					
						 

					
					
						   

					
					
						   

					
					
						   

				
	
					
						   

					
					
						 

					
					
						Date:

					
					
						 3-18

					
					
						, 2003

				
	
					
						   

					
					
						 

					
					
						   

					
					
						   

					
					
						   

				
	
					
						WITTNESS/ATTEST:

					
					
						 

					
					
						TENANT;

				
	
					
						   

					
					
						 

					
					
						EMBASSY BANK

				
	
					
						   

					
					
						 

					
					
						   

					
					
						   

					
					
						   

				
	
					
						 

					
					
						 

					
					
						BY:

					
					
						/s/ David M. Lobach Jr.

				
	
					
						   

					
					
						 

					
					
						   

					
					
						   

					
					
						   

				
	
					
						   

					
					
						 

					
					
						TITLE:

					
					
						CEO

				
	
					
						   

					
					
						 

					
					
						   

					
					
						   

					
					
						   

				
	
					
						   

					
					
						 

					
					
						Date:

					
					
						3/21

					
					
						, 2003

				

		
			 
		

		
			 
		

		
			 Page 3 of 3

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