Document:

ex10_5.htm

    
      

    

    Exhibit
10.5

     

    
      COMMERCIAL LEASE
AGREEMENT

      

       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")

      

      AND

      

      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").

      

      WITNESSETH:

      

      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

      

      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

      

      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

      

      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

      

      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.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

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

      

      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.

      

      (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.

      

      2.          
   TERM.

      

      (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.

      

      (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.

      

      (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.

      

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

      

      (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.

      

      (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.

      

      (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.

      

      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.

      

      5.          
   RENT.

      

      (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.

      

      (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.

      

      (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.

      

      (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.

      

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

      

      (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.

      

      6.         
    ALTERATIONS AND
IMPROVEMENTS.

      

      (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.

      

      (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.

      

      (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.

      

      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.

      

      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.

      

      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.

      

      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.

      

      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.

      

      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.

      

      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.

      

      (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:

      

      (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.

      

      (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.

      

      (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.

      

      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.

      

      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.

      

      19.         
  EMINENT
DOMAIN.

      

       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:

      

      (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;

      

      (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.

      

      (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.

      

      (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).

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      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:

      

      (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.

      

      (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;

      

      (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;

      

      (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;

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      (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;

      

      (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

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      (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).

      

      (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).

      

      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.

      

      23.       
    SUBORDINATION AND ATTORNMENT
TO LESSOR'S MORTGAGEE.

      

      (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.

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      (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.

      

      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.

      

      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.

      

      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.

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      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.

      

      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.

      

      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.

      

      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.

      

      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.

      

      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.

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      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.

      

      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.

      

      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.

      

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

      

      [Signature
page follows.]

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

      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.

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  	
                                                          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

                                                        

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

      EXHIBIT
A

      

      Premises

      

      LEGAL
DESCRIPTION

      

      

      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:

      

      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.

      

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

      

      PARCEL
548588071238-1

       

       

      18ex10_6.htm

    
      

    

    Exhibit
10.6

     

    
      Village
Comer EMBASSY Lease 022503

    

    
      

    

    
      

    

    
      LEASE
AGREEMENT

    

    
      

    

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

    

    
      

    

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

    

    
      And

    

    
      

    

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

    

    
      

    

    
      RELEVANT
FACTS

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      1.                
Lease of
Premises.

    

    
      

    

    
      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:

    

    
      

    

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

    

    
      

    

    
      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".

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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 $15,000-$!
8,000. It is further understood appropriate documentation will be provided to
substantiate the final cost.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

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

    

    
      

    

    
      RETAIL
BANK BRANCH

    

    
      
         

      

      
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      Village
Comer EMBASSY Lease 022503

    

    
      

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      2.               
Term of
Lease.

    

    
      

    

    
      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.

    

    
      

    

    
      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

    

    
      

    

    
      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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Corner EMBASSY Lease 022503

    

    
      

    

    
      

    

    
      3.               
Rent.

    

    
      

    

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

    

    
      

    

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

    

    
      

    

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

    

    
      

    

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

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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,

    

    
      

    

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

    

    
      

    

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

    

    
      

    

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

    

    
      

    

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

    

    
      

    

    
      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.

    

    
      

    

    
      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

    

    
      

    

    
      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.

    

    
      

    

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

    

    
      
         

      

      
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      Village
Comer EMBASSY Lease 022503

    

    
      

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      4.               
Casualty
Loss.

    

    
      

    

    
      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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      Village
Comer EMBASSY Lease 022503

    

    
      

    

    
      

    

    
      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.

    

    
      

    

    
      5.              
Insurance.

    

    
      

    

    
      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.

    

    
      

    

    
      6.              
 Maintenance of
Premises.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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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      Village
Comer EMBASSY Lease 022503

    

    
      

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      8.               
Rules and Regulations;
Parking.

    

    
      

    

    
      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.

    

    
      

    

    
      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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      Village
Comer EMBASSY Lease 022503

    

    
      

    

    
      

    

    
      9.               
Trash Removal and
Landlord's Services.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      11.             
Assignments and
Subletting.

    

    
      

    

    
      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.

    

    
      

    

    
      12.              
Mechanics
Liens.

    

    
      

    

    
      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.

    

    
      

    

    
      13.              
Subordination;
Non-Disturbance.

    

    
      

    

    
      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.

    

    
      
         

      

      
        Page
7

        
          

        

      

      
         

      

    

    
      Village
Corner EMBASSY Lease 022503

    

    
      

    

    
      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.

    

    
      

    

    
      14.              
Public
Taking.

    

    
      

    

    
      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.

    

    
      

    

    
      15.              
Indemnification.

    

    
      

    

    
      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.

    

    
      

    

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

    

    
      

    

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

    

    
      

    

    
      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.

    

    
      

        
          
             

          

          
            Page
8

            
              

            

          

          
             

          

        

      

       

    

    
      Village
Comer EMBASSY Lease 022503

    

    
       

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      17.             
Notices.

    

    
      

    

    
      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:

    

    
      

    

    
      
        	
                To
      Landlord at:

              	
                Vincent
      A. Palumbo, Manager

              

      

    

    
      Village
Corner, LLC

    

    
      1612 W.
Allen Street 2nd floor

    

    
      Allentown,
PA, 18102

      
 

    

    
      With a
Simultaneous

    

    
      
        	
                Copy
      to:

              	
                Charles
      E. Shoemaker, Jr., Esquire

              

      

    

    
      727-729
North 19th Street

    

    
      Allentown,
PA,   18104

    

    
      

    

    
      
        	
                To
      Tenant at:

              	
                Embassy
      Bank

              

      

    

    
      P.O. Box
20405

    

    
      Lenigh Valley, PA,
18002-0405

    

    
      Attn.
David M. Lobach Jr.

    

    
      
         

      

      
        Page
9

        
          

        

      

      
         

      

    

    
      Village
Coiner EMBASSY Lease 022503

    

    
       

    

    
      With a
Simultaneous

    

    
      
        	
                Copy
      to:

              	
                Attorney
      Fred Jacobs

              

      

    

    
      214 Bushkill Street

    

    
      Easton, PA,
18042-1886

    

    
       

    

    
      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.

    

    
      

    

    
      18.              Effect of
Agreement.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

    
      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.

    

    
      

    

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

    

    
      

    

    
      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.

    

    
      

    

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

    

    
      

    

    
      

    

    
      
        
          
            
              
                
                  
                    
                      	
                              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.	 

                    

                  

                

              

            

          

        

      

    

    
      

        
          
             

          

          
            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.

    

    
      

    

    
      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."

    

    
      

    

    
      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."

    

    
      

    

    
      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."

    

    
      

    

    
      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.

    

    
      

    

    
      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."

    

     

    
      
        
        

      

      
        Page 1 of
3

        
          

        

      

      
        
        

      

    

    
       

    

    
      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."

    

    
      

    

    
      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.

    

    
      

    

    
      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'

    

    
      

    

    
      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.

    

    
      

    

    
      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."

    

    
      
         

      

      
        Page 2 of
3

        
          

        

      

      
         

      

    

     

    
      
        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."

      

      
        

      

      
        

      

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

      

      
        

      

      
        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.

      

      
        

      

      
        

      

      
        
          
            	
                    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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