Document:

Exhibit 4.1

		

			Exhibit 4.1

		

		
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			DESCRIPTION OF SECURITIES
		

		
			REGISTERED PURSUANT TO SECTION 12 OF
		

		
			THE SECURITIES EXCHANGE ACT OF 1934
		

		
			Embassy Bancorp, Inc. (the “Company”) has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: common stock, $1.00 par value per share (the “Common Stock”). The Company’s Common Stock is not listed for trading on any exchange.
		

		
			The following is a description of the material terms and provisions of the Company’s Common Stock. It may not contain all the information that is important to you. Therefore, you should read the Company’s articles of incorporation and bylaws, copies of which are attached as exhibits to the Annual Report on Form 10-K to which this description is an exhibit, and certain provisions of applicable law.
		

		
			Authorized Shares
		

		
			The Company is authorized to issue up to 20,000,000 shares of Common Stock, $1.00 par value per share, and up to 10,000,000 shares of preferred stock, $1.00 par value per share.  
		

		
			Shareholder Liability
		

		
			All outstanding shares of our Common Stock are fully paid and non-assessable. Under the Pennsylvania Business Corporation Law of 1988, as amended, shareholders generally are not personally liable for a corporation’s acts or debts.
		

		
			Dividends; Liquidation; Dissolution.  
		

		
			Subject to the preferential rights of any other shares or series of capital stock, holders of shares of our Common Stock are entitled to receive dividends on shares of Common Stock if, as and when authorized and declared by our Board of Directors out of funds legally available for dividends and to share ratably in the assets of the Company legally available for distribution to its shareholders in the event of its liquidation, dissolution or winding-up after payment of, or adequate provision for, all known debts and liabilities of the Company.
		

		
			Voting Rights
		

		
			Each outstanding share of our Common Stock entitles the holder to one vote on all matters submitted to a vote of shareholders, including the election of directors. Unless a larger vote is required by law, our articles of incorporation or our bylaws, when a quorum is present at a meeting of shareholders, the affirmative vote of a majority of the votes cast shall decide any question. Except as otherwise required by law or except as provided with respect to any other class or series of capital stock, the holders of our Common Stock possess the exclusive voting power. There is no cumulative voting in the election of directors. Our Board of Directors is classified into three classes with each class as nearly equal in number as possible. This means, in general, that one-third of the members of our Board of Directors are subject to re-election at each annual meeting of shareholders.  
		

		
			Preemptive Rights; Redemption
		

		
			Holders of our Common Stock have no conversion, sinking fund or redemption rights or preemptive rights to subscribe for any of our classes of stock.
		

		
			Anti-Takeover Provisions
		

		
			Our articles of incorporation and bylaws contain certain provisions that may have the effect of deterring or discouraging an attempt to take control of the Company. Among other things, these provisions: 
		

			
	
			
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			Empower our Board of Directors, without shareholder approval, to issue shares of our preferred stock the terms of which, including voting power, are set by our Board of Directors; 

			
	
			
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			Divide our Board of Directors into three classes serving staggered three year terms;

		 

		

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			Exhibit 4.1

		

			
	
			
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			Authorize our Board of Directors to oppose a tender or other offer for the Company’s securities if the Board of Directors determines that such an offer should be rejected;

			
	
			
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			Require the affirmative vote of holders of at least 70% of the outstanding shares of our Common Stock to approve any merger or consolidation, or any sale or other disposition of all or substantially all of the assets of the Company, and require the affirmative vote of holders of at least 70% of the outstanding shares of our Common Stock to amend this requirement;

			
	
			
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			Do not provide for cumulative voting in the election of directors; and

			
	
			
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			Require advance notice of nominations for the election of directors and the presentation of shareholder proposals at meetings of shareholders.

		
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			2Exhibit 10.13

		

			 

		

		

			 

		

		
			AMENDMENT TO EMPLOYMENT AGREEMENT
		

		
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			THIS AMENDMENT TO EMPLOYMENT AGREEMENT (“Amendment”) made as of the 19th  day of November, 2010, by and between JAMES R. BARTHOLOMEW (“Executive”) and EMBASSY BANK FOR THE LEHIGH VALLEY, a Pennsylvania banking institution having its principal office in Bethlehem, Pennsylvania (the “Bank”).
		

		
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			WITNESSETH
		

		
			WHEREAS,  the Bank and the Executive entered into an Employment Agreement dated February 20, 2009 (the “Employment Agreement”), and
		

		
			WHEREAS,  the Bank and the Executive desire to amend the Employment Agreement to ensure compliance with Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.  
		

		
			NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:
		

		
			1.The Employment Agreement is amended to provide that, for purposes of determining whether (i) the Executive has become permanently “disabled;” or (ii) there has been a “change in control” of the Bank or a bank holding company controlling the Bank for purposes thereof, any such determination shall be made in accordance with the applicable definitions thereof as set forth in Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder (“Section 409A”).  
		

		
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			 2.Notwithstanding anything in the Employment Agreement to the contrary, if Executive is determined to be a “specified employee” (as defined in Section 409A), payments to such Executive pursuant to the Employment Agreement, other than payments qualifying as short term deferrals or an exempt separation pay arrangement under Section 409A, shall not begin earlier than the first day of the seventh month after the date of termination.   The Bank agrees to cause any and all amounts due under the Employment Agreement, the payment or distribution of which is delayed pursuant to this paragraph in accordance with Section 409A, to be paid or distributed in a single sum payment at the earliest permissible date under Section 409A.
		

		
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			For purposes of the foregoing, the date upon which a determination is made as to the Specified Employee status of the Executive, the “identification date” (as defined in Section 409A) shall be December 31.
		

		
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			3.The Bank intends in good faith that the Employment Agreement comply with Section 409A.  To the extent any provision of the Employment Agreement is deemed inconsistent with that section, said provision in hereby expunged and the Employment Agreement shall be deemed amended to comply with said law and the Bank shall take such steps as to amend the Agreement so that it complies in form with Section 409A.
		

		
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			4.        Should the total of all amounts or benefits payable under the Employment Agreement, together with any other payments which Executive has a right to receive from the Bank, any affiliates or subsidiaries of the Bank, or any successors of any of the foregoing, result in the imposition of an excise tax under Section 4999 of the Internal Revenue Code (or any successor thereto), Executive shall be entitled to an additional “excise tax” adjustment payment in 
		

		 

 

		an amount such that, after the payment of all federal and state income and excise taxes, Executive will be in the same after-tax position as if no excise tax had been imposed.  Any payment or benefit which is required to be included under Sections 280G or 4999 of the Internal Revenue Code (or any successor provisions thereto) for purposes of determining whether an excise tax is payable shall be deemed a payment “made to Executive” or a payment “which Executive has a right to receive” for purposes of this provision.  The Bank (or its successor) shall be responsible for the costs of calculation of the deductibility of payments and benefits and the excise tax by the Bank’s independent certified accountant and tax counsel and shall notify Executive of the amount of excise tax prior to the time such excise tax is due.  If at any time it is determined that the additional “excise tax” adjustment payment previously made to Executive was insufficient to cover the effect of the excise tax, the gross-up payment pursuant to this provision shall be increased to make Executive whole, including an amount to cover the payment of any penalties resulting from any incorrect or late payment of the excise tax resulting from the prior calculation.
		

		
			5.  In all other respects, the Employment Agreement, as amended above, is hereby ratified and confirmed by the Bank and the Executive.  All other provision of the Employment Agreement shall remain in full force and effect as amended hereby.
		

		
			IN WITNESS WHEREOF, the parties, each intending to be legally bound, have executed this Amendment as of the date, month and year first above written.
		

		
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			ATTEST:                       EMBASSY BANK FOR THE LEHIGH VALLEY
		

		
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			_/s/ Judith A. Hunsicker_______              By:_/s/ David M. Lobach, Jr.___________
		

		
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			WITNESS:                                                         EXECUTIVE
		

		
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			_/s/ Judith A. Hunsicker_______              _/s/ James R. Bartholomew____________

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