Item 1.01 Entry into a Material Definitive Agreement.
On December 30, 2020, Embassy Bank for the Lehigh Valley (the "Bank"), the
primary operating subsidiary of Embassy Bancorp, Inc. (the "Company"), executed
a lease agreement (the "Lease") with Lehigh County Agricultural Society, Inc.
(the "Lessor") for a proposed new branch office to be located at 2002 West
Liberty Street, Allentown, Lehigh County, Pennsylvania.
The Lease provides for an initial term of seven (7) years effective January 1,
2021, and grants the Bank two (2) successive options to renew for a term of five
(5) years each and one (1) successive option to renew for a term of three (3)
years. In addition to certain maintenance, real estate taxes and other costs,
the annual basic rent for each of the first five (5) years of the initial term
is $54,000.00, followed by annual basic rent in years six (6) and seven (7) of
the initial term in the amount of $60,000.00. Under the first renewal option
term, annual basic rent for the first three (3) years of this option term would
be $60,000.00, followed by annual basic rent in the amount of $66,000.00 for
years four (4) and five (5) of this first renewal option term. Under the second
renewal option term, annual basic rent for the first three (3) years of this
option term would be $66,000.00, followed by annual rent in the amount of
$72,000.00 for years four (4) and five (5) of this second renewal option term.
Under the third renewal option term of three (3) years, annual basic rent would
be $72,000.00.
Pursuant to the terms of the Lease, should the Bank fail to obtain all requisite
governmental permits and approvals within 240 days following the effective date
of the Lease of January 1, 2021, upon written notice to Lessor by the Bank, the
Lessor agrees to termination of the Lease and a refund to the Bank of half of
the basic rent paid by the Bank since the effective date.
The Bank anticipates commencing operations at the branch during the second
quarter of 2021.
The foregoing description of the Lease is qualified in its entirety by reference
to the Lease, a copy of which is attached to this Current Report on Form 8-K as
Exhibit 10.1 and incorporated herein by reference.
Item 9.01.Financial Statements and Exhibits.
(d)Exhibits
Exhibit No. Description
10.1 Lease dated December 30, 2020 by and between Embassy Bank for the
Lehigh Valley and Lehigh County Agricultural Society, Inc.
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