Document:

Exhibit 1013

		
			SECOND LEASE EXPANSION ADDENDUM
		

		
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			THIS SECOND LEASE EXPANSION ADDENDUM (this “Addendum”) is dated as of October 21,  2011 (the “Effective Date”), and is by and between EMBASSY  BANK FOR THE LEHIGH VALLEY (“Embassy”) and RED BIRD ASSOCIATES, LLC (“Red Bird”).
		

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

		
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			WHEREAS, said Lease Agreement was amended by a First Amendment dated August 6, 2001; and
		

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

		
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			WHEREAS, the said Lease Agreement was amended by a Lease Addendum dated January 1, 2005 (the “First Lease Expansion Addendum”); and
		

		
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			WHEREAS, the parties desire to amend the Lease Agreement in order to provide for the lease by Embassy of an additional 4,303 square feet of space on the second floor of the premises.
		

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

		
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			1. Lease.  Red Bird hereby leases to Embassy and Embassy hereby leases from Red Bird approximately 4,303 square feet of office space on the second floor of the premises known as 100 Gateway Drive,  Hanover Township, Northampton County,  Pennsylvania.  The additional space to be occupied by Embassy is shown and more fully described on Exhibit “A”, attached hereto.
		

		
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			2. Term.  This Addendum and the lease of additional space shall be effective as of January 1, 2012 (the “Commencement Date”), and shall continue for the remaining term of the underlying Lease Agreement, including all renewal options.  
		

		
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			3. Increased Rent.  As a result of the additional space added to the existing lease, Embassy’s annual base rent shall be increased by $73,151.00 (4,303 additional square feet at $17.00 per square foot per year), or $6,095.92 per month.
		

		
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			4. Rent Escalator.  On each anniversary of the Commencement Date, the annual base rent for the additional space provided for herein shall increase by three (3%) 
		

		 

 

		percent per year, to be calculated in the same manner as set forth in Exhibit “C” of the Lease Agreement.
		

		
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			5. Leasehold Improvement Allowance.  Red Bird hereby grants to Embassy a tenant improvement allowance of $88,175.00 (3,527 square feet of interior rentable or “usable” space at $25.00 per square foot), which amount may be used by Embassy as an offset against the rent due hereunder.
		

		
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			6. Operating Expenses.  As a result of Embassy’s lease of the additional space provided for herein, its share of the Operating Expenses (as defined in the Lease Agreement) shall be increased to 62% (an increase of 14.5% arising from this second expansion).
		

		
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			7. Renewal.  The parties agree and acknowledge Embassy’s current lease term expires February 28, 2012, and it is the party’s intent to negotiate and renew Embassy’s lease as to all of its leased space.  Any renewal of such leased space shall include the additional leased space provided for in this second expansion.  Additionally, and notwithstanding the Rent Escalator language set forth above, it is the parties intent to consolidate the annual rent escalations so that upon a certain date, all of Embassy’s rent shall increase by the applicable percentage on an annual basis.
		

		
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			8. Right of First Refusal. 
		

		
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			A. In the event Red Bird receives a written offer for the lease of any portion of the 100 Gateway Drive building (other than renewals of currently existing leases), and there has been no default under the Lease Agreement, Embassy shall have a right of first refusal to lease such space at the rent and on the terms contained in such written offer.  Red Bird shall provide written notice of any such offer to Embassy, whereupon Embassy shall exercise its right of first refusal, if at all, within 30 days of receipt of such notice, by providing written notice to Red Bird of the same.  The parties shall thereafter promptly execute a lease amendment for such space, upon the terms and conditions set forth in the notice.  If Embassy does not exercise such right within 30 days, Red Bird shall be free to lease such space to such third party upon the terms and conditions contained in the written notice.
		

		
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			B. In the event Red Bird receives a written offer to purchase the 100 Gateway Drive building and related land, improvements and associated condominium rights (i.e. Red Bird’s entire interest in the premises as acquired from Gateway Associates, LLC), and there has been no default under the Lease Agreement, Embassy shall have a right of first refusal to purchase such property on the terms contained in such written offer.   Red Bird shall provide written notice of any such offer to Embassy, whereupon Embassy shall exercise its right of first refusal, if at all, within 30 days of receipt of such notice, by providing written notice to Red Bird of the same.  The parties shall thereafter promptly execute an agreement of sale, upon the terms and conditions set forth in the notice.  If Embassy does not exercise such right within 30 days, Red Bird 
		

		 

 

		shall be free to sell the property to such third party upon the terms and conditions contained in the written notice.
		

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

		
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			10.Entire Agreement.  This Addendum, together with the underlying Lease Agreement (as amended), contains the entire agreement between the parties concerning the subject matter hereof.
		

		
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			IN WITNESS WHEREOF, and intending to be legally bound, the parties have executed this Addendum as of the day 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/ Lynne M. Neel

				
	
					
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						Judith A. Hunsicker

					
					
						 

					
					
						Lynne M. Neel, SVP

				
	
					
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						RED BIRD ASSOCIATES, LLC

				
	
					
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						By:

					
					
						/s/ Bernard M. Lesavoy

				
	
					
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						Bernard M. Lesavoy

				

		
			﻿Exhibit 1023

		

			 

		

		

			 

		

		
			AMENDMENT NO. 1 TO AMENDED AND RESTATED
		

		
			SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN AGREEMENT
		

		
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			THIS AMENDMENT NO. 1 TO AMENDED AND RESTATED SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN AGREEMENT (“Amendment”) is made as of the 21st day of November, 2011, by and between DAVID M. LOBACH, JR. (“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 Amended and Restated Supplemental Executive Retirement Plan Agreement dated November 19, 2010 (the “SERP”), and
		

		
			WHEREAS, the Bank and the Executive desire to amend the SERP to provide for gross-up payments for any excise tax on payments to be made by the Bank thereunder consistent with the gross-up language contained in Executive’s Employment Agreement with Bank.  
		

		
			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 SERP is hereby amended to provide that, should the total of all amounts or benefits payable under the SERP, 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.  All amounts required to be paid pursuant to this paragraph shall be paid at the time any withholding may be required (or, if earlier, the time Executive shall be required to pay such amounts) under applicable law, and any additional amounts to which Executive may be entitled shall be paid or reimbursed no later than fifteen (15) days following confirmation of such amount by the Bank’s independent certified accountant provided, however, that any payments to be made under this paragraph shall in all events be made no later than the end of Executive’s taxable year next following the taxable year in which the Executive remits such excise tax payments.  The parties recognize that the actual implementation of the provisions of this paragraph are complex and agree to deal with each other in good faith to resolve any questions or disagreements arising hereunder.
		

		

		

		 

 

		2.Capitalized terms used herein, but not defined herein, shall have the meanings assigned to such terms in the SERP.
		

		
			3.In all other respects, the SERP, as amended above, is hereby ratified and confirmed by the Bank and the Executive.  All other provision of the SERP 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/ Lynne M. Neel

					
					
						By:   

					
					
						/s/ Judith A. Hunsicker, SEVP CFO

				
	
					
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						WITNESS:

					
					
						EXECUTIVE

				
	
					
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						/s/ Lynne M. Neel

					
					
						 

					
					
						/s/ David M. Lobach, Jr.

				

		
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