Document:

Exhibit 10.14

Exhibit 10.14

Cortland Bancorp

Split Dollar Agreement and Endorsement

This Split Dollar Agreement and Endorsement (this “Split Dollar Agreement”) is
entered into as of                                         , 2011, by and between Cortland
Bancorp, an Ohio corporation (the “Company”), and Joseph E. Koch, a director of the Company (the
“Director”). This Split Dollar Agreement shall append the Split Dollar Endorsement entered into on
even date herewith, or as subsequently amended, by and between the Company and the Director.

Whereas, to encourage the Director to remain a director of the Company, the Company
is willing to grant to the Director the right to designate the beneficiary of a portion of the
death proceeds of an insurance policy on the Director’s life. The Company will pay life insurance
premiums from its general assets.

Now Therefore, in consideration of the foregoing premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows.

Article 1

General Definitions

Capitalized terms not otherwise defined in this Split Dollar Agreement shall have the same
meaning as defined in the Director Retirement Agreement between the Company and the Director dated
as of the date hereof, as the same may be amended. The following terms shall have the meanings
specified.

1.1 “Administrator” means the administrator described in Article 7.

1.2 “Director’s Interest” means the benefit set forth in section 2.2.

1.3 “Insured” means the Director.

1.4 “Insurer” means each life insurance carrier for which there is a Split Dollar Policy
Endorsement attached to this Agreement.

1.5 “Policy” means the specific life insurance policy or policies issued by the Insurer.

1.6 “Split Dollar Policy Endorsement” means the form required by the Administrator or the
Insurer to indicate the Director’s interest, if any, in a Policy on the Director’s life.

 

 

 

Article 2

Policy Ownership/Interests

2.1 Company Ownership. The Company is the sole owner of the Policy and shall have the right
to exercise all incidents of ownership. The Company shall be the beneficiary of any death proceeds
remaining after the Director’s interest is paid under section 2.2 below.

2.2 Death Benefit. Provided the Policy is not cancelled, surrendered, terminated, or allowed
to lapse, at the Director’s death the Director’s beneficiary designated in accordance with the
Split Dollar Policy Endorsement shall be entitled to death proceeds in the amount of $100,000 (the
“Director’s Interest”). The Director shall have the right to designate the beneficiary of the
Director’s Interest.

2.3 Option to Purchase. The Company shall not sell, surrender, or transfer ownership of the
Policy while this Split Dollar Agreement is in effect unless the Company first gives the Director
or the Director’s transferee a right of first refusal to purchase the Policy. The option to
purchase the Policy shall lapse if not exercised within 60 days after the date the Company gives
written notice of the Company’s intention to sell, surrender, or transfer ownership of the Policy.
The purchase price shall be an amount equal to the Policy cash surrender value. This provision
shall not impair the Company’s right to terminate this Split Dollar Agreement.

2.4 Comparable Coverage. The Company shall maintain the Policy in full force and effect. The
Company may not amend, terminate, or otherwise abrogate the Director’s interest in the Policy
unless the Company replaces the Policy with a comparable insurance policy to cover the benefit
provided under this Split Dollar Agreement and executes a new split dollar agreement and
endorsement for the comparable insurance policy. The Policy or any comparable policy shall be
subject to claims of the Company’s creditors.

2.5 Internal Revenue Code Section 1035 Exchanges. The Director recognizes and agrees that the
Company may after this Split Dollar Agreement is adopted wish to exchange the Policy of life
insurance on the Director’s life for another contract of life insurance insuring the Director’s
life. Provided that the Policy is replaced or intended to be replaced with a comparable policy of
life insurance, the Director agrees to provide medical information and cooperate with medical
insurance-related testing required by a prospective insurer for implementing the Policy or, if
necessary, for modifying or updating to a comparable insurer.

Article 3

Premiums

3.1 Premium Payment. The Company shall pay any premiums due on the Policy.

3.2 Economic Benefit. The Company shall determine the economic benefit attributable to the
Director based on the life insurance premium factor for the Director’s age multiplied by the
aggregate death benefit payable to the Director’s Beneficiary. The life insurance premium factor
is the minimum amount required to be imputed under Internal Revenue Service Regulations, section
1.61-22(d)(3)(ii), or any subsequent applicable authority. The Company shall impute the economic
benefit to the Director annually by adding the economic benefit to the Director’s Form W-2 or, if
applicable, Form 1099.

Article 4

Assignment

The Director may assign without consideration all interests in the Policy and in this Split
Dollar Agreement to any person, entity, or trust. If the Director transfers all of the Director’s
interest in the Policy, all of the Director’s interest in the Policy and in the Split Dollar
Agreement shall be vested in the Director’s transferee, who shall be substituted as a party
hereunder, and the Director shall have no further interest in the Policy or in this Split Dollar
Agreement.

 

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Article 5

Insurer

The Insurer shall be bound only by the terms of the Policy. Any payments the Insurer makes or
actions it takes in accordance with the Policy shall fully discharge it from all claims, suits, and
demands of all entities or persons. The Insurer shall not be bound by or be deemed to have notice
of the provisions of this Split Dollar Agreement.

Article 6

Claims Procedure

6.1 Claims Procedure. The Company shall notify any person or entity making a claim under this
Split Dollar Agreement (the “Claimant”) in writing, within 90 days after receiving Claimant’s
written application for benefits, of his or her eligibility or ineligibility for benefits under
this Split Dollar Agreement. If the Company determines that the Claimant is not eligible for
benefits or full benefits, the notice shall set forth (w) the specific reasons for denial, (x) a
specific reference to the provisions of this Split Dollar Agreement on which the denial is based,
(y) a description of any additional information or material necessary for the Claimant to perfect
his or her claim, and a description of why it is needed, and (z) an explanation of this Split
Dollar Agreement’s claims review procedure and other appropriate information concerning the steps
to be taken if the Claimant wishes to have the claim reviewed. If the Company determines that
there are special circumstances requiring additional time to make a decision, the Company shall
notify the Claimant of the special circumstances and the date by which a decision is expected to be
made, and may extend the time for up to an additional 90 days.

6.2 Review Procedure. If the Claimant is determined by the Company not to be eligible for
benefits, or if the Claimant believes that he or she is entitled to greater or different benefits,
the Claimant shall have the opportunity to have its claim reviewed by the Company by filing a
petition for review with the Company within 60 days after receipt of the notice issued by the
Company. The petition shall state the specific reasons the Claimant believes it is entitled to
benefits or to greater or different benefits. Within 60 days after receipt by the Company of the
petition, the Company shall afford the Claimant (and counsel, if any) an opportunity to present its
position to the Company verbally or in writing, and the Claimant (or counsel) shall have the right
to review the pertinent documents. The Company shall notify the Claimant of the Company’s decision
in writing within the 60-day period, stating specifically the basis of its decision, written in a
manner to be understood by the Claimant, and the specific provisions of this Split Dollar Agreement
on which the decision is based. If, because of the need for a hearing, the 60-day period is not
sufficient, the decision may be deferred for up to another 60-day period at the election of the
Company, but notice of this deferral shall be given to the Claimant.

Article 7

Administration of Agreement

7.1 Plan Administrator Duties. This Split Dollar Agreement shall be administered by a Plan
Administrator consisting of the Company’s board of directors or such committee or person as the
board shall appoint. The Plan Administrator shall have the discretion and authority to (x) make,
amend, interpret, and enforce all appropriate rules and regulations for the administration of this
Agreement and (y) decide or resolve any and all questions that may arise, including interpretations
of this Split Dollar Agreement.

 

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7.2 Agents. In the administration of this Split Dollar Agreement, the Plan Administrator may
employ agents and delegate to them such administrative duties as it sees fit (including acting
through a duly appointed representative) and may from time to time consult with counsel, who may be
counsel to the Company.

7.3 Binding Effect of Decisions. The decision or action of the Plan Administrator about any
question arising out of the administration, interpretation, and application of the Agreement and
the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all
persons having any interest in this Split Dollar Agreement.

7.4 Indemnity of Plan Administrator. The Company shall indemnify and hold harmless the
members of the Plan Administrator against any and all claims, losses, damages, expenses, or
liabilities arising from any action or failure to act with respect to this Split Dollar Agreement,
except in the case of willful misconduct by the Plan Administrator or any of its members.

7.5 Company Information. To enable the Plan Administrator to perform its functions, the
Company shall supply full and timely information to the Plan Administrator on all matters relating
to the date and circumstances of the retirement, Disability, death, or Termination of Service of
the Director, and such other pertinent information as the Plan Administrator may reasonably
require.

Article 8

Miscellaneous

8.1 Amendment and Termination. This Split Dollar Agreement may be amended solely by a written
agreement signed by the Company and by the Director. This Split Dollar Agreement shall terminate
if the Director Retirement Agreement terminates under Article 5 of the Director Retirement
Agreement.

8.2 Binding Effect. This Split Dollar Agreement shall bind the Director and the Company and
their beneficiaries, survivors, executors, administrators and transferees, and any Policy
beneficiary.

8.3 No Guarantee of Service. This Split Dollar Agreement is not a service policy or contract.
It does not give the Director the right to remain a director of the Company nor does it interfere
with the right of the Company’s stockholders not to re-elect the Director or the right of
stockholders or the board to remove an individual as a director of the Company. This Split Dollar
Agreement also does not require the Director to remain a director or interfere with the Director’s
right to terminate service at any time.

8.4 Applicable Law. The Split Dollar Agreement and all rights hereunder shall be governed by
and construed according to the laws of the State of Ohio, except to the extent preempted by the
laws of the United States of America.

8.5 Entire Agreement. This Split Dollar Agreement constitutes the entire agreement between
the Company and the Director concerning the subject matter. No rights are granted to the Director
under this Split Dollar Agreement other than those specifically set forth.

8.6 Severability. If any provision of this Split Dollar Agreement is held invalid, such
invalidity shall not affect any other provision of this Split Dollar Agreement not held invalid and
each such other provision shall continue in full force and effect to the full extent consistent
with law. If any provision of this Split Dollar Agreement is held invalid in part, such invalidity
shall not affect the
remainder of such provision not held invalid and the remainder of such provision, together with all
other provisions of this Split Dollar Agreement, shall continue in full force and effect to the
full extent consistent with law.

 

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8.7 Captions and Counterparts. Captions and section headings in this Split Dollar Agreement
are included solely for convenience of reference and shall not affect the meaning or interpretation
of any provision of this Split Dollar Agreement. This Split Dollar Agreement may be executed in
two or more counterparts, each of which shall be deemed an original but all of which together shall
constitute one and the same instrument.

8.8 Notices. All notices, requests, demands and other communications hereunder shall be in
writing and shall be deemed to have been duly given if delivered by hand or mailed, certified or
registered mail, return receipt requested, with postage prepaid, to the following addresses or to
such other address as either party may designate by like notice. If to the Company, notice shall
be given to the board of directors, Cortland Bancorp, 194 W. Main Street, P.O. Box 98, Cortland,
Ohio 44410-1466, or to such other or additional person or persons as the Company shall have
designated to the Director in writing. If to the Director, notice shall be given to the Director
at the address of the Director appearing on the Company’s records, or to such other or additional
person or persons as the Director shall have designated to the Company in writing.

In Witness Whereof, the Director and a duly authorized Company officer have executed
this Split Dollar Agreement and Endorsement as of the date first written above.

	 	 	 	 	 	 	 
	Director	 	Cortland Bancorp	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 
	 

Joseph E. Koch

	 	 	 	Title: 	 	 

Agreement to Cooperate with Insurance Underwriting Incident to Internal Revenue Code section 1035 Exchange

I acknowledge that I have read the Split Dollar Agreement and Endorsement and agree to be
bound by its terms, particularly the covenant on my part set forth in section 2.5 of the Split
Dollar Agreement and Endorsement to provide medical information and cooperate with medical
insurance-related testing required by an insurer to issue a comparable insurance policy to cover
the benefit provided under this Split Dollar Agreement and Endorsement.

	 	 	 
	 

	 	 
	Witness

	 	Joseph E. Koch

 

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Split Dollar Policy Endorsement

Insured: Joseph E. Koch

Insurer:

Policy No.:

Pursuant to the terms of the Cortland Bancorp Split Dollar Agreement and Endorsement dated as
of                     , 2011, the undersigned Owner requests that the above-referenced policy issued by
the Insurer provides for the following beneficiary designation and limited contract ownership
rights to the Insured:

1. Upon the death of the Insured, proceeds shall be paid in one sum to the Owner, its
successors or assigns, to the extent of its interest in the policy. It is hereby provided that the
Insurer may rely solely upon a statement from the Owner as to the amount of proceeds it is entitled
to receive under this paragraph.

2. Any proceeds at the death of the Insured in excess of the amount paid under the provisions
of the preceding paragraph shall be paid in one sum to:

 

Primary Beneficiary, Relationship/Social Security Number

 

Contingent Beneficiary, Relationship/Social Security Number

The exclusive rights to change the beneficiary for the proceeds payable under this paragraph and to
assign all rights and interests granted under this paragraph are hereby granted to the Insured.
The sole signature of the Insured shall be sufficient to exercise the rights. The Owner retains
all contract rights not granted to the Insured under this paragraph.

3. It is agreed by the undersigned that this designation and limited assignment of rights
shall be subject in all respects to the contractual terms of the policy.

4. Any payment directed by the Owner under this endorsement shall be a full discharge of the
Insurer, and such discharge shall be binding on all parties claiming any interest under the policy.

The undersigned for the Owner is signing in a representative capacity and warrants that he or
she has the authority to bind the entity on whose behalf this document is executed.

Signed at                                         , Ohio this                      day of  
                                       , 2011.

	 	 	 	 	 	 	 
	Insured:	 	Owner:

Cortland Bancorp	 
	 
	 	 	 	 	 	 
	 
Joseph E. Koch

	 	By:	 	 	 
	 

	 	 	 	Its:Exhibit 10.24

Exhibit 10.24

Addendum A

The Cortland Savings and Banking Company

Fourth Amended Split Dollar Agreement and Endorsement

This Fourth Amended Split Dollar Agreement and Endorsement (this “Agreement”) is
entered into as of this
 _____ 

day of                     , 2011, by and between The Cortland Savings and
Banking Company, an Ohio-chartered commercial bank (the “Bank”), and Timothy Carney, Executive Vice
President and Chief Operating Officer of the Bank (the “Executive”). This Agreement shall append
the Split Dollar Policy Endorsement entered into on even date herewith or as subsequently amended,
by and between the aforementioned parties.

Whereas, to encourage the Executive to remain a Bank employee, the Bank and the
Executive entered into a Third Amended Split Dollar Agreement and Endorsement dated as of December
3, 2008, providing for division of the death proceeds of a life insurance policy or policies on the
Executive’s life,

Whereas, the Bank and the Executive entered into a Fourth Amended Salary Continuation
Agreement dated as of June 1, 2010, providing for specified retirement benefits and amending and
restating in its entirety the Third Amended Salary Continuation Agreement, which also was dated as
of December 3, 2008, and

Whereas, the Bank and the Executive intend that this Fourth Amended Split Dollar
Agreement and Endorsement shall be attached as Addendum A to the Fourth Amended Salary Continuation
Agreement, amending and restating in its entirety the Third Amended Split Dollar Agreement and
Endorsement.

Now Therefore, in consideration of the foregoing premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

Article 1

Definitions

Capitalized terms not otherwise defined in this Agreement are used herein as defined in the
Fourth Amended Salary Continuation Agreement dated as of June 1, 2010, between the Bank and the
Executive. The following terms shall have the meanings specified.

1.1 Administrator means the administrator described in Article 7.

1.2 Executive’s Interest means the benefit set forth in section 2.2.

1.3 Insured means the Executive.

1.4 Insurer means each life insurance carrier for which there is a Split Dollar Policy
Endorsement attached to this Agreement.

 

 

 

1.5 Net Death Proceeds means the total death proceeds of the Policy minus the cash surrender
value.

1.6 Policy means the specific life insurance policy or policies issued by the Insurer(s).

1.7 Salary Continuation Agreement means the Fourth Amended Salary Continuation Agreement dated
as of June 1, 2010, between the Bank and the Executive, as the same may hereafter be amended.

1.8 Split Dollar Policy Endorsement means the form required by the Administrator or the
Insurer to indicate the Executive’s interest, if any, in a Policy on such Executive’s life.

Article 2

Policy Ownership/Interests

2.1 Bank Ownership. The Bank is the sole owner of the Policy and shall have the right to
exercise all incidents of ownership. The Bank shall be the beneficiary of the remaining death
proceeds of the Policy after the Executive’s interest is paid according to section 2.2 below.

2.2 Death Benefit. Provided the Executive’s death occurs both before the Executive’s
Separation from Service and before the Executive attains age 65, at the Executive’s death the
Executive’s beneficiary designated in accordance with the Split Dollar Policy Endorsement shall be
entitled to Policy proceeds in an amount equal to the lesser of (x) 100% of the Net Death Proceeds
or (y) $1,147,374 (the lesser of the amounts specified in clauses (x) and (y) being referred to in
this Agreement as the “Executive’s Interest”). The Executive’s Interest shall be extinguished at
the earliest of the date of the Executive’s Separation from Service, the date the Executive attains
age 65, or the date on which the Executive receives payment of the benefit provided under the
Salary Continuation Agreement for a Change in Control, and the Executive’s beneficiary shall be
entitled to no benefits under the Agreement of the Executive’s death occurring thereafter. The
Executive shall have the right to designate the beneficiary of the Executive’s Interest.

2.3 Option to Purchase. Upon termination of this Agreement, the Bank shall not sell,
surrender, or transfer ownership of the Policy without first giving the Executive or the
Executive’s transferee the option to purchase the Policy for a period of 60 days from written
notice of such intention. The purchase price shall be an amount equal to the cash surrender value
of the Policy.

2.4 Comparable Coverage. The Bank may replace the Policy with a comparable insurance policy
to cover the benefit provided under this Agreement, in which case the Bank and the Executive shall
execute a new Split Dollar Policy Endorsement for the comparable insurance policy.

2.5 Internal Revenue Code Section 1035 Exchanges. The Executive recognizes and agrees that
the Bank may after this Agreement is adopted wish to exchange the Policy of life insurance on the
Executive’s life for another contract of life insurance insuring the Executive’s life. Provided
that the Policy is replaced (or intended to be replaced) with a comparable policy of life
insurance, the Executive agrees to provide medical information and cooperate with medical
insurance-related testing required by
a prospective insurer for implementing the Policy or, if necessary, for modifying or updating
to a comparable insurer.

 

2

 

Article 3

Premiums

3.1 Premium Payment. The Bank shall pay any premiums due on the Policy.

3.2 Economic Benefit. The Administrator shall annually determine the economic benefit
attributable to the Executive based on the life insurance premium factor for the Executive’s age
multiplied by the aggregate death benefit payable to the Executive’s beneficiary. The “life
insurance premium factor” is the minimum factor applicable under guidance published pursuant to
Treasury Reg. section 1.61-22(d)(3)(ii) or any subsequent authority.

3.3 Imputed Income. The Bank shall impute the economic benefit to the Executive on an annual
basis by adding the economic benefit to the Executive’s W-2, or if applicable, Form 1099.

Article 4

Assignment

The Executive may irrevocably assign without consideration all of the Executive’s interest in
the Policy and in this Agreement to any person, entity, or trust established by the Executive or
the Executive’s spouse. If the Executive transfers all of the Executive’s interest in the Policy,
all of the Executive’s interest in the Policy and in the Agreement shall be vested in the
Executive’s transferee, who shall be substituted as a party hereunder and the Executive shall have
no further interest in this Agreement.

Article 5

Insurer

The Insurer shall be bound by the terms of the Policy only. Any payments the Insurer makes or
actions it takes in accordance with the Policy shall fully discharge it from all claims, suits, and
demands of all entities or persons. The Insurer shall not be bound by or be deemed to have notice
of the provisions of this Agreement.

Article 6

Claims and Review Procedures

6.1 Claims Procedure. Any person or entity who has not received benefits under this Agreement
that he or she believes should be paid (the “claimant”) shall make a claim for benefits as follows —

6.1.1 Initiation — written claim. The claimant initiates a claim by submitting to the
Administrator a written claim for benefits. If the claim relates to the contents of a
notice received by the claimant, the claim must be made within 60 days after the notice was
received by the claimant. All other claims must be made within 180 days after the date of
the event that
caused the claim to arise. The claim must state with particularity the determination
desired by the claimant.

 

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6.1.2 Timing of Administrator response. The Administrator shall respond to the claimant
within 90 days after receiving the claim. If the Administrator determines that special
circumstances require additional time for processing the claim, the Administrator can extend
the response period by an additional 90 days by notifying the claimant in writing, before
the end of the initial 90-day period, that an additional period is required. The notice of
extension must set forth the special circumstances and the date by which the Administrator
expects to render its decision.

6.1.3 Notice of decision. If the Administrator denies part or all of the claim, the
Administrator shall notify the claimant in writing of the denial. The Administrator shall
write the notification in a manner calculated to be understood by the claimant. The
notification shall set forth —

	 	(a)	 	The specific reasons for the denial,

	 	(b)	 	A reference to the specific provisions of this Agreement on which
the denial is based,

	 	(c)	 	A description of any additional information or material necessary
for the claimant to perfect the claim and an explanation of why it is needed,

	 	(d)	 	An explanation of the Agreement’s review procedures and the time
limits applicable to such procedures, and

	 	(e)	 	A statement of the claimant’s right to bring a civil action under
ERISA section 502(a) after an adverse benefit determination on review.

6.2 Review Procedure. If the Administrator denies part or all of the claim, the claimant
shall have the opportunity for a full and fair review by the Administrator of the denial, as
follows —

6.2.1 Initiation — written request. To initiate the review, the claimant must file with
the Administrator a written request for review within 60 days after receiving the
Administrator’s notice of denial.

6.2.2 Additional submissions — information access. The claimant shall then have the
opportunity to submit written comments, documents, records, and other information relating
to the claim. Upon request and free of charge, the Administrator shall also provide the
claimant reasonable access to and copies of all documents, records, and other information
relevant (as defined in applicable ERISA regulations) to the claimant’s claim for benefits.

6.2.3 Considerations on review. In considering the review, the Administrator shall take
into account all materials and information the claimant submits relating to the claim,
without regard to whether the information was submitted or considered in the initial benefit
determination.

6.2.4 Timing of Administrator response. The Administrator shall respond in writing to the
claimant within 60 days after receiving the request for review. If the Administrator
determines that special circumstances require additional time for processing the claim, the
Administrator can extend the response period by an additional 60 days by notifying the
claimant in writing before
the end of the initial 60-day period that an additional period is required. The notice of
extension must set forth the special circumstances and the date by which the Administrator
expects to render its decision.

 

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6.2.5 Notice of decision. The Administrator shall notify the claimant in writing of its
decision on review. The Administrator shall write the notification in a manner calculated
to be understood by the claimant. The notification shall set forth —

	 	(a)	 	The specific reasons for the denial,

	 	(b)	 	A reference to the specific provisions of the Agreement on which
the denial is based,

	 	(c)	 	A statement that the claimant is entitled to receive, upon
request and free of charge, reasonable access to and copies of all documents,
records, and other information relevant (as defined in applicable ERISA
regulations) to the claimant’s claim for benefits, and

	 	(d)	 	A statement of the claimant’s right to bring a civil action under
ERISA section 502(a).

Article 7

Administration of Agreement

7.1 Administrator Duties. This Agreement shall be administered by an Administrator, which
shall consist of the Board or such committee as the Board shall appoint. The Executive may not be
a member of the Administrator. The Administrator shall have the discretion and authority to (x)
make, amend, interpret, and enforce all appropriate rules and regulations for the administration of
this Agreement and (y) decide or resolve any and all questions that may arise, including
interpretations of this Agreement.

7.2 Agents. In the administration of this Agreement, the Administrator may employ agents and
delegate to them such administrative duties as the Administrator sees fit (including acting through
a duly appointed representative) and may from time to time consult with counsel, who may be counsel
to the Bank.

7.3 Binding Effect of Decisions. The decision or action of the Administrator concerning any
question arising out of the administration, interpretation, and application of this Agreement and
the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all
persons having any interest in the Agreement.

7.4 Indemnity of Administrator. The Bank shall indemnify and hold harmless the members of the
Administrator against any and all claims, losses, damages, expenses, or liabilities arising from
any action or failure to act with respect to this Agreement, except in the case of willful
misconduct by the Administrator or any of its members.

7.5 Information. To enable the Administrator to perform its functions, the Bank shall supply
full and timely information to the Administrator on all matters relating to the date and
circumstances of the retirement, death, or Separation from Service of the Executive, and such
other pertinent information as the Administrator may reasonably require.

 

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Article 8

Miscellaneous

8.1 Amendment and Termination of Agreement. This Agreement may be amended or terminated
solely by a written agreement signed by the Bank and the Executive. However, this Agreement shall
terminate upon the first to occur of (u) payment to the Executive of the benefit provided under the
Salary Continuation Agreement for a Change in Control, or (v) surrender, lapse, or other
termination of the Policy by the Bank, or (w) distribution of the death benefit proceeds in
accordance with section 2.2 above, or (x) termination of the Salary Continuation Agreement under
Article 5 of the Salary Continuation Agreement, or (y) the Executive’s Separation from Service, or
(z) the date the Executive attains age 65.

8.2 Binding Effect. This Agreement shall bind the Executive and the Bank and their
beneficiaries, survivors, executors, administrators, and transferees, and any Policy beneficiary.

8.3 No Guarantee of Employment. This Agreement is not an employment policy or contract. This
Agreement does not give the Executive the right to remain an employee of the Bank nor does it
interfere with the Bank’s right to discharge the Executive. This Agreement also does not require
the Executive to remain an employee or interfere with the Executive’s right to terminate employment
at any time.

8.4 Successors; Binding Agreement. By an assumption agreement in form and substance
satisfactory to the Executive, the Bank shall require any successor (whether direct or indirect, by
purchase, merger, consolidation, or otherwise) to all or substantially all of the business or
assets of the Bank to expressly assume and agree to perform this Agreement in the same manner and
to the same extent that the Bank would be required to perform this Agreement had no succession
occurred.

8.5 Applicable Law. This Agreement and all rights hereunder shall be governed by and
construed according to the laws of the State of Ohio, except to the extent preempted by the laws of
the United States of America.

8.6 Entire Agreement. This Agreement and the Salary Continuation Agreement constitute the
entire agreement between the Bank and the Executive concerning the subject matter. No rights are
granted to the Executive under this Agreement other than those specifically set forth. This
Agreement amends and restates in its entirety the December 3, 2008 Third Amended Split Dollar
Agreement and Endorsement.

8.7 Severability. If any provision of this Agreement is held invalid, such invalidity shall
not affect any other provision of this Agreement not held invalid, and each such other provision
shall continue in full force and effect to the full extent consistent with law. If any provision
of this Agreement is held invalid in part, such invalidity shall not affect the remainder of the
provision not held invalid, and the remainder of the provision together with all other provisions
of this Agreement shall continue in full force and effect to the full extent consistent with law.

 

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8.8 Headings. Caption headings and subheadings herein are included solely for convenience of
reference and shall not affect the meaning or interpretation of any provision of this Agreement.

8.9 Notices. All notices, requests, demands and other communications hereunder shall be in
writing and shall be deemed to have been duly given if delivered by hand or mailed, certified or
registered mail, return receipt requested, with postage prepaid, to the following addresses or to
such other address as either party may designate by like notice. If to the Bank, notice shall be
given to the board of directors, The Cortland Savings and Banking Company, 194 W. Main Street, P.O.
Box 98, Cortland, Ohio 44410-1466, or to such other or additional person or persons as the Bank
shall have designated to the Executive in writing. If to the Executive, notice shall be given to
the Executive at the Executive’s address appearing on the Bank’s records, or to such other or
additional person or persons as the Executive shall have designated to the Bank in writing.

In Witness Whereof, the Executive and a duly authorized representative of the Bank
have executed this Agreement as of the date first written above.

	 	 	 	 	 	 	 	 	 
	Executive:	 	Bank:
 

The Cortland Savings and Banking Company	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Timothy Carney

	 	 	 	James M. Gasior	 	 
	 

	 	 	 	Title:
	 	President and Chief Executive Officer	 	 

Agreement to Cooperate with Insurance Underwriting Incident to Internal Revenue
Code section 1035 Exchange

I acknowledge that I have read the Fourth Amended Split Dollar Agreement and Endorsement and
agree to be bound by its terms, particularly the covenant on my part set forth in section 2.5 of
the Fourth Amended Split Dollar Agreement and Endorsement to provide medical information and
cooperate with medical insurance-related testing required by an insurer to issue a comparable
insurance policy to cover the benefit provided under this Fourth Amended Split Dollar Agreement and
Endorsement.

	 	 	 
	 

	 	 
	Witness

	 	Timothy Carney

 

7

 

Split Dollar Policy Endorsement

Insured: Timothy Carney

Insurer: New York Life Insurance and Annuity Corporation

Policy No. 77251005

According to the terms of The Cortland Savings and Banking Company Fourth Amended Split Dollar
Agreement and Endorsement dated as of                                         , 2011,
the undersigned Owner requests that the above-referenced policy issued by the Insurer provide for
the following beneficiary designation and limited contract ownership rights to the Insured:

1. Upon the death of the Insured, proceeds shall be paid in one sum to the Owner, its
successors or assigns, to the extent of the Owner’s interest in the policy. It is hereby provided
that the Insurer may rely solely upon a statement from the Owner concerning the amount of proceeds
the Owner is entitled to receive under this paragraph.

2. Any proceeds at the death of the Insured in excess of the amount paid under the provisions
of the preceding paragraph shall be paid in one sum to:

 

Primary Beneficiary, Relationship/Social Security Number

 

Contingent Beneficiary, Relationship/Social Security Number

The exclusive rights to change the beneficiary for the proceeds payable under this paragraph and to
assign all rights and interests granted under this paragraph are hereby granted to the Insured.
The sole signature of the Insured shall be sufficient to exercise the rights. The Owner retains
all contract rights not granted to the Insured under this paragraph.

3. It is agreed by the undersigned that this designation and limited assignment of rights
shall be subject in all respects to the contractual terms of the policy.

4. Any payment directed by the Owner under this endorsement shall be a full discharge of the
Insurer, and such discharge shall be binding on all parties claiming any interest under the policy.

The undersigned for the Owner is signing in a representative capacity and warrants that he or
she has the authority to bind the entity on whose behalf this document is executed.

Signed at                                         , Ohio this
 _____ 

day of                                         , 2011.

	 	 	 	 	 
	Insured:	 	Owner:

The Cortland Savings and Banking Company
	 
	 	 	 	 
	 

	 	By: 	 	 
	 

	 	 	 
	Timothy Carney

	 	 	Its: 	 

 

 

 

Split Dollar Policy Endorsement

Insured: Timothy Carney

Insurer: Midland National Life Insurance Company

Policy No. 00690213

According to the terms of The Cortland Savings and Banking Company Fourth Amended Split Dollar
Agreement and Endorsement dated as of              , 2011,
the undersigned Owner requests that the above-referenced policy issued by the Insurer provide for
the following beneficiary designation and limited contract ownership rights to the Insured:

1. Upon the death of the Insured, proceeds shall be paid in one sum to the Owner, its
successors or assigns, to the extent of the Owner’s interest in the policy. It is hereby provided
that the Insurer may rely solely upon a statement from the Owner concerning the amount of proceeds
the Owner is entitled to receive under this paragraph.

2. Any proceeds at the death of the Insured in excess of the amount paid under the provisions
of the preceding paragraph shall be paid in one sum to:

 

Primary Beneficiary, Relationship/Social Security Number

 

Contingent Beneficiary, Relationship/Social Security Number

The exclusive rights to change the beneficiary for the proceeds payable under this paragraph and to
assign all rights and interests granted under this paragraph are hereby granted to the Insured.
The sole signature of the Insured shall be sufficient to exercise the rights. The Owner retains
all contract rights not granted to the Insured under this paragraph.

3. It is agreed by the undersigned that this designation and limited assignment of rights
shall be subject in all respects to the contractual terms of the policy.

4. Any payment directed by the Owner under this endorsement shall be a full discharge of the
Insurer, and such discharge shall be binding on all parties claiming any interest under the policy.

The undersigned for the Owner is signing in a representative capacity and warrants that he or
she has the authority to bind the entity on whose behalf this document is executed.

Signed at              
                         
  , Ohio this                    
  day of                         
                , 2011.

	 	 	 	 	 	 	 
	Insured:	 	Owner:

The Cortland Savings and Banking Company	 	 
	 
	 	 	 	 	 	 
	 

	 	By: 	 	 	 
	 

Timothy Carney

	 	 	Its:

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