Document:

EX-10.25

 EXHIBIT NO. 10.25 

THE CORTLAND SAVINGS AND BANKING COMPANY 

AMENDED SALARY CONTINUATION AGREEMENT 

This AMENDED SALARY CONTINUATION AGREEMENT (this
“Agreement”) is entered into             , 20     by and between The Cortland Savings and Banking Company (the “Bank”), an Ohio-chartered,
FDIC-insured member bank, and Stanley P. Feret, Senior Vice President and Chief Lending Officer of the Bank (the “Executive”). 

WHEREAS, the Executive has contributed substantially to the success of the Bank and its parent company,
Cortland Bancorp, an Ohio corporation, and the Bank desires that the Executive continue in its employ, 

WHEREAS, to encourage the Executive to remain an employee, the Bank is willing to provide to the
Executive salary continuation benefits payable from the Bank’s general assets, 
 WHEREAS, as of
the date of this Agreement none of the conditions or events included in the definition of the term “golden parachute payment” that is set forth in section 18(k)(4)(A)(ii) of the Federal Deposit Insurance Act [12 U.S.C. 1828(k)(4)(A)(ii)]
and in Federal Deposit Insurance Corporation Rule 359.1(f)(1)(ii) [12 CFR 359.1(f)(1)(ii)] exists or, to the best knowledge of the Bank, is contemplated insofar as the Bank is concerned, and 

WHEREAS, the Bank and the Executive intend that this Agreement amend and restate in its entirety the
June 1, 2010 Salary Continuation Agreement between the Executive and the Bank, and 
 WHEREAS, the
parties hereto intend that this Agreement be considered an unfunded arrangement maintained primarily to provide supplemental retirement benefits for the Executive, and to be considered a non-qualified benefit plan for purposes of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”). The Executive is fully advised of the Bank’s financial status. 

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 

1.1 “Accrual Balance” means the liability that should be accrued by the Bank under generally accepted accounting
principles (“GAAP”) for the Bank’s obligation to the Executive under this Agreement, applying Financial Accounting Standards Board ASC 710-10-30 (formerly known as Accounting Principles Board Opinion No. 12, as amended by
Statement of Financial Accounting Standards No. 106), and the calculation method and discount rate specified hereinafter. The Accrual Balance is calculated such that when it is credited with interest each month the Accrual Balance at Normal
Retirement Age equals the present value of the normal retirement benefits. The discount rate means the rate used by the Plan Administrator for determining the Accrual Balance. In its sole discretion the Plan Administrator may adjust the discount
rate to maintain the rate within reasonable standards according to GAAP. 

 1.2 “Beneficiary” means each designated person, or the estate of the
deceased Executive, entitled to benefits, if any, upon the death of the Executive, determined according to Article 4. 
 1.3
“Beneficiary Designation Form” means the form established from time to time by the Plan Administrator that the Executive completes, signs, and returns to the Plan Administrator to designate one or more Beneficiaries. 

1.4 “Change in Control” means a change in control as defined in Internal Revenue Code section 409A and rules,
regulations, and guidance of general application thereunder issued by the Department of the Treasury, including a change in ownership, a change in effective control, or change in ownership of a substantial portion of assets. 

1.5 “Code” means the Internal Revenue Code of 1986, as amended, and rules, regulations, and guidance of general
application issued by the Department of the Treasury under the Internal Revenue Code of 1986, as amended. 
 1.6
“Disability” means, because of a medically determinable physical or mental impairment that can be expected to result in death or that can be expected to last for a continuous period of at least 12 months, (x) the
Executive is unable to engage in any substantial gainful activity, or (y) the Executive is receiving income replacement benefits for a period of at least three months under an accident and health plan of the employer. Medical
determination of disability may be made either by the Social Security Administration or by the provider of an accident or health plan covering employees of the Bank. Upon request of the Plan Administrator, the Executive must submit proof to the Plan
Administrator of the Social Security Administration’s or provider’s determination. 
 1.7 “Early
Termination” means Separation from Service before Normal Retirement Age for reasons other than death, Disability, or Termination with Cause. Early Termination excludes a Separation from Service governed by section 2.4. 

1.8 “Effective Date” means June 1, 2010. 

1.9 “Intentional,” for purposes of this Agreement, no act or failure to act on the part of the Executive will be
considered intentional if it is due primarily to an error in judgment or negligence. An act or failure to act on the Executive’s part is intentional if it is not in good faith and if it is without a reasonable belief that the action or failure
to act is in the Bank’s best interests. 
 1.10 “Normal Retirement Age” means the Executive’s 65th birthday. 
 1.11 “Plan Administrator” or
“Administrator” means the plan administrator described in Article 7. 
 1.12 “Plan Year” means a
twelve-month period commencing on March 1 and ending on the last day of February of each year. The initial Plan Year commenced on the Effective Date. 

1.13 “Separation from Service” means the Executive’s service as an executive and independent contractor to the
Bank and any member of a controlled group, as defined in Code section 414, terminates for any reason, other than because of a leave of absence approved by the Bank or the Executive’s death. For purposes of this Agreement, if there is a dispute
about the employment status of the Executive or the date of the Executive’s Separation from Service, the Bank has the sole and absolute right to decide the dispute, unless a Change in Control has occurred. 

  
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 1.14 “Termination with Cause” and “Cause” have the same
meaning specified in any effective severance or employment agreement existing on the date hereof or hereafter entered into between the Executive and the Bank. If the Executive is not a party to a severance or employment agreement containing a
definition of termination with cause, Termination with Cause means the Bank terminates the Executive’s employment because of – 

(a) gross negligence or gross neglect of duties or intentional and material failure to perform stated duties after written notice thereof, or

 (b) disloyalty or dishonesty in the performance of duties, or a breach of fiduciary duties for personal profit, in any case whether in
the Executive’s capacity as a director or officer, or 
 (c) intentional wrongful damage to the business or property of the Bank or its
affiliates, including without limitation the reputation of the Bank, which in the judgement of the Bank causes material harm to the Bank or affiliates, or 

(d) willful violation of any applicable law or significant policy of the Bank or an affiliate that, in the Bank’s judgement, results in
an adverse effect on the Bank or the affiliate, regardless of whether the violation leads to criminal prosecution or conviction. For purposes of this Agreement applicable laws include any statute, rule, regulatory order, statement of policy, or
final cease-and-desist order of any governmental agency or body having regulatory authority over the Bank, or 
 (e) occurrence of any event
that results in the Executive being excluded from coverage, or having coverage limited for the Executive as compared to other executives of the Bank, under the Bank’s blanket bond or other fidelity or insurance policy covering its directors,
officers, or employees, or 
 (f) the Executive is removed from office or permanently prohibited from participating in the Bank’s
affairs by an order issued under section 8(e)(4) or section 8(g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. 1818(e)(4) or (g)(1), or 

(g) conviction of or plea of no contest to a felony or conviction of or plea of no contest to a misdemeanor involving moral turpitude, or the
actual incarceration of the Executive for 45 consecutive days or more. 
 1.15 “Voluntary Termination with Good
Reason” means a voluntary Separation from Service by the Executive if the following conditions (x) and (y) are satisfied: (x) a voluntary Separation from Service by the Executive will be considered a
Voluntary Termination with Good Reason if any of the following occur without the Executive’s advance written consent – 
 1) a
material diminution of the Executive’s base salary, 
 2) a material diminution of the Executive’s authority, duties, or
responsibilities, 
 3) a material diminution in the authority, duties, or responsibilities of the supervisor to whom the Executive is
required to report, 
 4) a material diminution in the budget over which the Executive retains authority, 

5) a material change in the geographic location at which the Executive must perform services for the Bank, or 

6) any other action or inaction that constitutes a material breach by the Bank of the agreement under which the Executive provides services to
the Bank. 
 (y) the Executive must give notice to the Bank of the existence of one or more of the conditions described in clause
(x) within 90 days after the initial existence of the condition, and the Bank shall have 30 

  
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days thereafter to remedy the condition. In addition, the Executive’s voluntary termination because of the existence of one or more of the conditions described in clause (x) must
occur within 24 months after the initial existence of the condition. 
 ARTICLE 2 

LIFETIME BENEFITS 

2.1 Normal Retirement. Unless Separation from Service occurs before Normal Retirement Age, when the Executive attains Normal Retirement
Age the Bank will pay to the Executive the benefit described in this section 2.1 instead of any other benefit under this Agreement. If the Executive’s Separation from Service thereafter is a Termination with Cause or if this Agreement
terminates under Article 5, no further benefits will be paid. 
  

	 	2.1.1	Amount of benefit. The annual benefit under this section 2.1 is $92,000. 

  

	 	2.1.2	Payment of benefit. Beginning with the month immediately after the month in which the Executive attains Normal Retirement Age, the Bank will pay the benefit under this section 2.1 to the Executive in equal
monthly installments on the last day of each month. The benefit will be paid to the Executive for 180 months. 

 2.2 Early
Termination. For Early Termination the Bank will pay to the Executive the benefit described in this section 2.2 instead of any other benefit under this Agreement. Neither the Bank nor the Executive is entitled to elect in the 24-month period
after a Change in Control between the benefit under this section 2.2 versus the benefit under section 2.4. If the Executive’s Separation from Service within 24 months after a Change in Control is an involuntary termination without Cause or a
Voluntary Termination with Good Reason, no benefit is payable under this section 2.2 and the Executive is instead entitled to the benefit under section 2.4 or, if the Executive first attained Normal Retirement Age, section 2.1. No benefit is payable
under this Agreement if the Executive’s Separation from Service is a Termination with Cause or if this Agreement terminates under Article 5. 
  

	 	2.2.1	Amount of benefit. The annual benefit under this section 2.2 is calculated as the amount that fully amortizes the vested portion of the Accrual Balance existing at the end of the month immediately before the
month in which Separation from Service occurs, amortizing that vested Accrual Balance over 15 years and taking into account interest at the discount rate or rates established by the Plan Administrator. Until the Executive is 100% vested on the tenth
anniversary of the Effective Date the Executive becomes vested in the benefit under this section 2.2 in equal 10% increments on each anniversary of the Effective Date, provided the Executive remains employed by the Bank on each vesting date.
However, if a Change in Control occurs before Separation from Service the Executive will be considered 100% vested when the Change in Control occurs. 

  

	 	2.2.2	Payment of benefit. The Bank will pay the annual benefit to the Executive in equal monthly installments on the last day of each month, except that the first six monthly installments after the Executive’s
Separation from Service will not be paid to the Executive until the seventh month after the month in which Separation from Service occurs. In the seventh month after the month in which Separation from Service occurs the Executive is entitled to the
first six monthly installments and the regular monthly installment for the seventh month. The Executive is entitled to a total of 180 monthly installments, including the first six installments that are paid in the seventh month. 

  
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 2.3 Disability. For Separation from Service because of Disability before Normal Retirement
Age, the Bank will pay to the Executive the benefit described in this section 2.3 instead of any other benefit under this Agreement. 
  

	 	2.3.1	Amount of benefit. The annual benefit under this section 2.3 is calculated as the amount that fully amortizes the Accrual Balance existing at the end of the month immediately before the month in which Separation
from Service occurs, amortizing that Accrual Balance over 15 years and taking into account interest at the discount rate or rates established by the Plan Administrator. 

 

	 	2.3.2	Payment of benefit. Beginning with the later of (x) the seventh month after the month in which the Executive’s Separation from Service occurs, or (y) the month immediately after the
month in which the Executive attains Normal Retirement Age, the Bank will pay the annual benefit to the Executive in equal monthly installments on the last day of each month. If the benefit is paid under clause (x) in the seventh month
after Separation from Service, the first six monthly installments after Separation from Service will not be paid to the Executive until the seventh month after the month in which Separation from Service occurs. In the seventh month the Executive is
entitled to the first six monthly installments and the regular monthly installment for the seventh month. The Executive is entitled to a total of 180 monthly installments, including the first six installments that are paid in the seventh month.

 2.4 Change in Control. If the Executive’s Separation from Service is an involuntary termination without Cause
or a Voluntary Termination with Good Reason, in either case within 24 months after a Change in Control, the Bank will pay to the Executive the benefit described in this section 2.4 instead of any other benefit under this Agreement. However, no
benefit is payable under this Agreement if the Executive’s employment is terminated under circumstances described in Article 5 of this Agreement. Neither the Bank nor the Executive is entitled to elect in the 24-month period after a Change in
Control between the benefit under this section 2.4 versus the Early Termination benefit under section 2.2. If the Executive’s Separation from Service within 24 months after a Change in Control is an involuntary termination without Cause or a
Voluntary Termination with Good Reason, no benefit is payable under section 2.2 and the Executive is instead entitled to the benefit under this section 2.4. But if the Executive has attained Normal Retirement Age when Separation from Service within
24 months after a Change in Control occurs, whether Separation from Service is voluntary or involuntary for any reason other than Termination with Cause, the Executive is entitled solely to the benefit provided by section 2.1, not this section 2.4.

  

	 	2.4.1	Amount of benefit. The benefit under this section 2.4 is the Accrual Balance when Separation from Service occurs. 

  

	 	2.4.2	Payment of benefit. The Bank will pay the benefit under this section 2.4 to the Executive in a single lump sum on the first day of the seventh month after the month in which Separation from Service occurs.

 2.5 Lump-Sum Payout of Remaining Normal Retirement Benefit, Early Termination Benefit, or Disability Benefit When a
Change in Control Occurs. If a Change in Control occurs while the Executive is receiving the Normal Retirement Age benefit under section 2.1, the Bank will pay the remaining salary continuation benefits to the Executive in a single lump sum
three days after the Change in Control. If a Change in Control occurs after Separation from Service but while the Executive is receiving or is entitled to receive the Early Termination benefit under sections 2.2 or the Disability benefit under
section 2.3, the Bank will pay the remaining salary continuation benefits to the Executive in a single lump sum three days after the later of (x) the Change in Control or (y) the first day of the seventh month after the month
in which the Executive’s Separation from Service occurs. The lump-sum payment due to the Executive as a result of a 

  
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Change in Control is an amount equal to the Accrual Balance amount corresponding to the particular benefit when the Change in Control occurs, or vested Accrual Balance in the case of Early
Termination benefits payable under section 2.2. 
 2.6 Annual Benefit Statement. Within 120 days after the end of each Plan Year the
Plan Administrator will provide or cause to be provided to the Executive an annual benefit statement showing benefits payable or potentially payable to the Executive under this Agreement. Each annual benefit statement supersedes the previous
year’s annual benefit statement. If there is a contradiction between this Agreement and the annual benefit statement concerning the amount of a particular benefit payable or potentially payable to the Executive under sections 2.2, 2.3, or 2.4
hereof, the amount of the benefit determined under this Agreement controls. 
 2.7 Savings Clause Relating to Compliance with Code
Section 409A. Despite any contrary provision of this Agreement, if when the Executive’s employment terminates the Executive is a specified employee, as defined in Code section 409A, and if any payments under Article 2 of this Agreement
will result in additional tax or interest to the Executive because of section 409A, the Executive is not entitled to the payments under Article 2 until the earliest of (x) the date that is at least six months after termination of the
Executive’s employment for reasons other than the Executive’s death, (y) the date of the Executive’s death, or (z) any earlier date that does not result in additional tax or interest to the Executive under
section 409A. If any provision of this Agreement would subject the Executive to additional tax or interest under section 409A, the Bank will reform the provision. However, the Bank will maintain to the maximum extent practicable the original intent
of the applicable provision without subjecting the Executive to additional tax or interest, and the Bank is not required to incur any additional compensation expense as a result of the reformed provision. 

2.8 One Benefit Only. Despite anything to the contrary in this Agreement, the Executive and Beneficiary are entitled to one benefit
only under this Agreement, which is determined by the first event to occur that is dealt with by this Agreement. Except as provided in section 2.5 or Article 3, subsequent occurrences of events dealt with by this Agreement do not entitle the
Executive or Beneficiary to other or additional benefits under this Agreement. 
 ARTICLE 3 

DEATH BENEFITS 

Unless the Accrual Balance or vested Accrual Balance is paid to the Executive under sections 2.4 or 2.5 after a Change in Control, if at death
the Executive is receiving or entitled to receive benefits under sections 2.1, 2.2, or 2.3 but dies before receiving all 180 monthly benefit payments under sections 2.1, 2.2, or 2.3, at the Executive’s death the Bank will pay to the
Executive’s Beneficiary the Accrual Balance existing at the time of the Executive’s death, or vested Accrual Balance for death occurring after Early Termination. If a benefit is payable to the Executive’s Beneficiary, the benefit will
be paid in a single lump sum 90 days after the Executive’s death. 
 ARTICLE 4 

BENEFICIARIES 

4.1 Beneficiary Designations. The Executive may designate a Beneficiary to receive any benefits payable under this Agreement after the
Executive’s death. The Beneficiary designated under this Agreement may be the same as or different from the beneficiary designation under any other benefit plan of the Bank in which the Executive participates. 

4.2 Beneficiary Designation: Change. The Executive designates a Beneficiary by completing and signing the Beneficiary Designation Form
and delivering it to the Plan Administrator or its designated 

  
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agent. The Executive’s Beneficiary designation is automatically revoked if the Beneficiary predeceases the Executive or if the Executive names a spouse as Beneficiary and the marriage is
subsequently dissolved. The Executive may change a Beneficiary by completing, signing, and otherwise complying with the terms of the Beneficiary Designation Form and the Plan Administrator’s rules and procedures, as in effect from time to time.
Upon acceptance by the Plan Administrator of a new Beneficiary Designation Form, all Beneficiary designations previously filed are cancelled. The Plan Administrator is entitled to rely on the last Beneficiary Designation Form filed by the Executive
and accepted by the Plan Administrator before the Executive’s death. 
 4.3 Acknowledgment. No designation or change in
designation of a Beneficiary is effective until received, accepted, and acknowledged in writing by the Plan Administrator or its designated agent. 

4.4 No Beneficiary Designation. If the Executive dies without a valid beneficiary designation or if all designated Beneficiaries
predecease the Executive, the Executive’s spouse is the designated Beneficiary. If the Executive has no surviving spouse, benefit payments will be made to the personal representative of the Executive’s estate. 

4.5 Facility of Payment. If a benefit is payable to a minor, to a person declared incapacitated, or to a person incapable of handling
the disposition of his or her property, the Bank may pay the benefit to the guardian, legal representative, or person having the care or custody of the minor, incapacitated person, or incapable person. The Bank may require proof of incapacity,
minority, or guardianship as it may deem appropriate before distribution of the benefit. Distribution completely discharges the Bank from all liability. 

ARTICLE 5 

GENERAL LIMITATIONS 

5.1 Termination with Cause. Despite any contrary provision of this Agreement, the Bank will not pay any benefit under this Agreement
and this Agreement terminates if Separation from Service is a Termination with Cause. 
 5.2 Misstatement. No benefits will be paid
under this Agreement if the Executive makes any material misstatement of fact on any application or resume provided to the Bank, on any application for life insurance purchased by the Bank, or on any application for benefits provided by the Bank.

 5.3 Removal. If the Executive is removed from office or permanently prohibited from participating in the Bank’s affairs by an
order issued under section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. 1818(e)(4) or (g)(1), all obligations of the Bank under this Agreement terminate as of the effective date of the order. 

5.4 Default. Despite any contrary provision of this Agreement, if the Bank is in “default” or “in danger of
default,” as those terms are defined in section 3(x) of the Federal Deposit Insurance Act, 12 U.S.C. 1813(x), all obligations under this Agreement terminate. 

5.5 FDIC Open-Bank Assistance. All obligations under this Agreement terminate, except to the extent determined that continuation of the
contract is necessary for the continued operation of the Bank, if the Federal Deposit Insurance Corporation enters into an agreement to provide assistance to or on behalf of the Bank under the authority contained in section 13(c) of the Federal
Deposit Insurance Act. 12 U.S.C. 1823(c). Any rights of the parties that have already vested are not affected, however. 

  
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 ARTICLE 6 

CLAIMS AND REVIEW PROCEDURES 

6.1 Claims Procedure. The Bank will notify any person or entity that makes a claim for benefits under this Agreement (the
“Claimant”) in writing, within 90 days after receiving Claimant’s written application for benefits, of his or her eligibility or noneligibility for benefits under the Agreement. If the Plan Administrator determines that the Claimant
is not eligible for benefits or full benefits, the notice will state (w) the specific reasons for denial, (x) a specific reference to the provisions of the 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 the Agreement’s claims review procedure and other appropriate
information concerning steps to be taken if the Claimant wishes to have the claim reviewed. If the Plan Administrator determines that there are special circumstances requiring additional time to make a decision, the Bank will 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 Plan Administrator not to be eligible for benefits, or if the Claimant
believes that he or she is entitled to greater or different benefits, the Claimant will have the opportunity to have his or her claim reviewed by the Bank by filing a petition for review with the Bank within 60 days after receipt of the notice
issued by the Bank. The Claimant’s petition must state the specific reasons the Claimant believes entitle him or her to benefits or to greater or different benefits. Within 60 days after receipt by the Bank of the petition, the Plan
Administrator will give the Claimant (and counsel, if any) an opportunity to present his or her position verbally or in writing, and the Claimant (or counsel) will have the right to review the pertinent documents. The Plan Administrator will notify
the Claimant of the Plan Administrator’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 the 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 days at the election of the Plan Administrator, but notice of this deferral will be given to the
Claimant. 
 ARTICLE 7 

ADMINISTRATION OF AGREEMENT 

7.1 Plan Administrator Duties. This Agreement will be administered by a Plan Administrator consisting of the Board or such committee or
person as the Board appoints. The Executive may not be a member of the Plan Administrator. The Plan Administrator has the discretion and authority (x) to make, amend, interpret, and enforce all appropriate rules and regulations for the
administration of this Agreement and (y) to 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 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 Bank. 

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 is final and conclusive and binding upon all persons having any interest in the Agreement. No Executive or Beneficiary has any right, vested or
nonvested, regarding the continued use of any previously adopted assumptions, including but not limited to the discount rate and calculation method employed in the determination of the Accrual Balance. 

7.4 Indemnity of Plan Administrator. The Bank will 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 regarding this Agreement, except in the case of willful misconduct by the Plan Administrator or any of its members. 

  
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 7.5 Bank Information. To enable the Plan Administrator to perform its functions, the Bank
will supply full and timely information to the Plan Administrator on all matters relating to the date and circumstances of the retirement, Disability, death, or Separation from Service of the Executive, and such other pertinent information as the
Plan Administrator reasonably requires. 
 ARTICLE 8 

MISCELLANEOUS 

8.1 Amendments and Termination. This Agreement may be amended solely by a written agreement signed by the Bank and by the Executive.
This Agreement may be terminated by the Bank without the Executive’s consent. Unless Article 5 provides that the Executive is not entitled to payment or unless when termination occurs the Executive has already received payment of benefits under
this Agreement, the Bank must pay the Accrual Balance in a single lump sum to the Executive if the Bank terminates this Agreement. The lump-sum termination payment will be made to the Executive on the first day of the thirteenth month after the
month in which the Bank terminates this Agreement. 
 8.2 Binding Effect. This Agreement binds the Executive and the Bank and their
beneficiaries, survivors, executors, successors, administrators, and transferees. 
 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 this Agreement 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
Non-Transferability. Benefits under this Agreement may not be sold, transferred, assigned, pledged, attached, or encumbered. 
 8.5
Successors; Binding Agreement. By an assumption agreement in form and substance satisfactory to the Executive, the Bank will require any successor (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or
substantially all of the Bank’s business or assets to expressly assume and agree to perform this Agreement in the same manner and to the same extent the Bank would be required to perform this Agreement had no succession occurred. 

8.6 Tax Withholding. The Bank will withhold any taxes that are required to be withheld from the benefits provided under this Agreement.

 8.7 Applicable Law. The Agreement and all rights hereunder are governed by the laws of the State of Ohio, except to the extent
preempted by the laws of the United States of America. 
 8.8 Unfunded Arrangement. The Executive and beneficiary are general
unsecured creditors of the Bank for the payment of benefits under this Agreement. The benefits represent the mere promise by the Bank to pay benefits. The rights to benefits are not subject to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, attachment, or garnishment by creditors. Any insurance on the Executive’s life is a general asset of the Bank to which the Executive and beneficiary have no preferred or secured claim. 

8.9 Entire Agreement. This Agreement constitutes 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 June 1, 2010 Salary Continuation Agreement. 

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

8.11 Headings. Headings are included herein solely for convenience of reference and do not affect the meaning or interpretation of any
provision of this Agreement. 
 8.12 Notices. All notices, requests, demands and other communications hereunder must be in writing
and will 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 must 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 designates to
the Executive in writing. If to the Executive, notice will 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 designates to the Bank in
writing. 
 8.13 Payment of Legal Fees. The Bank is aware that after a Change in Control management could cause or attempt to cause
the Bank to refuse to comply with its obligations under this Agreement, or could institute or cause or attempt to cause the Bank to institute litigation seeking to have this Agreement declared unenforceable, or could take or attempt to take other
action to deny Executive the benefits intended under this Agreement. In these circumstances the purpose of this Agreement would be frustrated. The Bank desires that the Executive not be required to incur expenses associated with enforcement of
rights under this Agreement, whether by litigation or other legal action, because the cost and expense thereof would substantially detract from the benefits intended to be granted to the Executive hereunder. The Bank desires that the Executive not
be forced to negotiate settlement of rights under this Agreement under threat of incurring expenses. Accordingly, if after a Change in Control it appears to Executive that (x) the Bank has failed to comply with any of its obligations
under this Agreement, or (y) the Bank or any other person has taken any action to declare this Agreement void or unenforceable, or instituted any litigation or other legal action designed to deny, diminish, or recover from the Executive
the benefits intended to be provided to the Executive hereunder, the Bank irrevocably authorizes the Executive to retain counsel of the Executive’s choice, at the Bank’s expense as provided in this section 8.13, to represent the Executive
in the initiation or defense of any litigation or other legal action, whether by or against the Bank or any director, officer, stockholder or other person affiliated with the Bank, in any jurisdiction. Despite any existing or previous
attorney-client relationship between the Bank and any counsel chosen by the Executive under this section 8.13, the Bank irrevocably consents to the Executive entering into an attorney-client relationship with that counsel, and the Bank and the
Executive agree that a confidential relationship exists between the Executive and that counsel. The fees and expenses of counsel selected by the Executive will be paid or reimbursed to the Executive by the Bank on a regular, periodic basis upon
presentation by the Executive of a statement or statements prepared by counsel in accordance with counsel’s customary practices, regardless of whether suit is brought and regardless of whether incurred in trial, bankruptcy, or appellate
proceedings, but the Bank’s payment or reimbursement of the Executive’s counsel’s fees and expenses must occur on or before the last day of the Executive’s tax year immediately after the Executive’s tax year in which the
expense is incurred. If the Executive is a specified employee, as defined in Code section 409A, on the date of termination, payment under this section 8.13 will be made on the first day of the seventh month after the month in which the
Executive’s termination occurs. Interest will accrue on the payment from the date of termination through the 

  
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date of payment at the Prime Rate of Interest in effect on the date of termination and as reported in the Wall Street Journal. The six-month delay
applies if and only if an exemption from the six-month delay requirement of Code section 409A is not available. The Executive’s right to payment or reimbursement under this section 8.13 is not subject to liquidation or exchange for another
benefit. The Bank’s obligation to make reimbursement payments will not apply later than the Executive’s remaining lifetime (or, if longer, through the 20th anniversary of the effective
date of this Agreement). The legal fee reimbursements are intended to satisfy the requirements for “reimbursement or in-kind benefit plans” described in Treasury Regulation section 1.409A-3(i)(1)(iv)(A) and will be administered to satisfy
those requirements. The Bank’s obligation to pay the Executive’s legal fees under this section 8.13 operates separately from and in addition to any legal fee reimbursement obligation the Bank or the Bank’s parent Cortland Bancorp may
have with the Executive under a severance, employment, or other agreement. Despite any contrary provision in this Agreement however, the Bank is not required to pay or reimburse the Executive’s legal expenses if doing so violates section 18(k)
of the Federal Deposit Insurance Act [12 U.S.C. 1828(k)] and Rule 359.3 of the Federal Deposit Insurance Corporation [12 CFR 359.3]. 

8.14 Automatic Review. On the third year anniversary of the date of this Agreement and every third year thereafter the Bank will
automatically review this Agreement for reasonableness of benefits, with the goal that the Executive’s benefit under this Agreement combined with other Bank-provided benefits equal a reasonable percentage of Executive’s pre-retirement
compensation. For purposes of this Agreement, Bank-provided benefits include but are not limited to (x) the Bank 401(k) match and (y) the Bank portion of Social Security benefits. The term “compensation” as used in
this section 8.14 means the base annual salary of the Executive projected at the Executive’s Normal Retirement Age. Base annual salary means compensation of the type that would, according to the Securities and Exchange Commission’s
Regulation S-K Item 402(c) (17 CFR 229.402(c)), be required to be reported by an accelerated filer as salary in column (c) of that rule’s Summary Compensation Table. The term base annual salary specifically excludes director fees and
other director compensation, bonus, option grants and any other compensation that would be reported in separate columns in the Summary Compensation Table, but it includes salary deferred at the election of the Executive. 

IN WITNESS WHEREOF, the Executive and a duly authorized Bank officer have
executed this Amended Salary Continuation Agreement as of the date first written above. 
  

							
	EXECUTIVE:	 		 	BANK:
		 		 	THE CORTLAND SAVINGS AND BANKING COMPANY
				
	  
	 		 	By:	 	  

	Stanley P. Feret	 		 		 	James M. Gasior
		 		 	Title:	 	President and Chief Executive Officer

  
 11 

 BENEFICIARY DESIGNATION 

THE CORTLAND SAVINGS AND BANKING COMPANY 

AMENDED SALARY CONTINUATION AGREEMENT 

I, Stanley P. Feret, designate the following as beneficiary of any death benefits under this Amended Salary Continuation Agreement: 

 

					
	 Primary:
	 	  
	 	
	  
	 	.

					
			
	 Contingent:
	 	  
	 	
	  
	 	.

  

	 	Note:	To name a trust as beneficiary, please provide the name of the trustee(s) and the exact name and date of the trust agreement. 

I understand that I may change these beneficiary designations by filing a new written designation with the Bank. I further understand that the
designations will be automatically revoked if the beneficiary predeceases me or if I have named my spouse as beneficiary and our marriage is subsequently dissolved. 
  

					
	Signature:	 	  
	  	
		 	Stanley P. Feret	  	
		
	Date:             , 20    	  	

 Accepted by the Bank this      day of
            , 20     
  

					
	By:	 	  
	  	
		 	James M. Gasior	  	
	Title:	 	President and Chief Executive Officer	  	

  
 12EX-10.31.1

 EXHIBIT 10.31.1 

SEVERANCE AGREEMENT 

This SEVERANCE AGREEMENT (this “Agreement”) is entered into and is
effective as of , 2015 by and between Cortland Bancorp, an Ohio corporation, and Timothy Carney (the “Executive”), Executive Vice President and Chief Operating Officer of Cortland Bancorp and The Cortland Savings and Banking
Company (the “Bank”), an Ohio-chartered bank and wholly owned subsidiary of Cortland Bancorp. 

WHEREAS, recognizing the contributions to the profitability, growth, and financial strength of Cortland
Bancorp and the Bank that the Executive has made and is expected to continue to make, intending to assure itself of the current and future continuity of management and establish minimum severance benefits for certain officers and other key employees
and ensure that officers and other key employees are not practically disabled from discharging their duties if a proposed or actual transaction involving a change in control arises, and finally desiring to provide additional inducement for the
Executive to remain in the employ of Cortland Bancorp and the Bank, Cortland Bancorp desires to enter into a Severance Agreement with the Executive, 

WHEREAS, Cortland Bancorp and the Executive intend that this Agreement supersede and replace in its
entirety the September 28, 2012 Severance Agreement and that from and after the date hereof the September 28, 2012 Severance Agreement will be of no further force or effect, and 

WHEREAS, as of the effective date of this Agreement none of the conditions or events included in the
definition of the term “golden parachute payment” that is set forth in section 18(k)(4)(A)(ii) of the Federal Deposit Insurance Act [12 U.S.C. 1828(k)(4)(A)(ii)] and in Federal Deposit Insurance Corporation Rule 359.1(f)(1)(ii) [12 CFR
359.1(f)(1)(ii)] exists or, to the best knowledge of Cortland Bancorp, is contemplated insofar as Cortland Bancorp or any of its subsidiaries is concerned. 

NOW THEREFORE, in consideration of these premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows. 
 1. Cash
Benefit after a Change in Control. (a) Cash benefit. If a Change in Control occurs, Cortland Bancorp will make a lump-sum payment to the Executive in an amount in cash equal to 2.99 times the Executive’s compensation. For this
purpose, the Executive’s compensation means the sum of (x) the Executive’s base salary when the Change in Control occurs, including salary deferred at the Executive’s election, plus (y) any bonus awarded for
the most recent whole calendar year before the year in which the Change in Control occurs, regardless of whether the bonus is paid in the year earned and regardless of whether the bonus is vested or subject to elective deferral. The term bonus means
cash or non-cash compensation of the type that under SEC rules is required to be reported by accelerated filers as bonus in the Summary Compensation Table, specifically Regulation S-K Item 402 (17 CFR 229.402, currently
Item 402(c)(2)(iv)). The amount payable to the Executive hereunder will not be reduced to account for the time value of money or discounted to present value. Subject to section 17 of this Agreement, the payment required under this section 1(a)
will be made five business days after the Change in Control occurs. If the Executive receives payment of the benefit under this section 1(a) because of the occurrence of a Change in Control, the Executive is not entitled to an additional payment
under this section 1(a) if an additional Change in Control occurs thereafter. 
 (b) Change in Control defined. For purposes of this
Agreement, the term Change in Control means a change in control as defined in Internal Revenue Code section 409A and rules, regulations, and guidance of general application thereunder issued by the Department of the Treasury, including – 

 (1) Change in ownership: a change in ownership of Cortland Bancorp occurs on the date any
one person or group accumulates ownership of Cortland Bancorp stock constituting more than 50% of the total fair market value or total voting power of Cortland Bancorp stock, 

(2) Change in effective control: (x) any one person or more than one person acting as a group acquires within a 12-month
period ownership of Cortland Bancorp stock possessing 30% or more of the total voting power of Cortland Bancorp stock, or (y) a majority of Cortland Bancorp’s board of directors is replaced during any 12-month period by directors
whose appointment or election is not endorsed in advance by a majority of Cortland Bancorp’s board of directors, or 
 (3) Change in
ownership of a substantial portion of assets: a change in ownership of a substantial portion of Cortland Bancorp’s assets occurs if in a 12-month period any one person or more than one person acting as a group acquires from Cortland Bancorp
assets having a total gross fair market value equal to or exceeding 40% of the total gross fair market value of all of Cortland Bancorp’s assets immediately before the acquisition or acquisitions. For this purpose, gross fair market value means
the value of Cortland Bancorp’s assets or the value of the assets being disposed of, determined without regard to any liabilities associated with the assets. 

2. Additional Benefits after Employment Termination. (a) If the Executive’s employment terminates involuntarily but
without Cause or voluntarily but with Good Reason, in either case within 24 months after a Change in Control, Cortland Bancorp will provide at Cortland Bancorp’s expense and on behalf of the Executive a benefit consisting of reimbursement by
Cortland Bancorp of a portion of the Executive’s cost to continue medical, dental, accident, disability, and life insurance coverage substantially identical to the coverage maintained for the Executive at termination, except to the extent
coverage may be changed in its application to all employees, including reimbursement of a portion of the Executive’s cost to obtain coverage under Title X of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) [Pub. L. 99-272,
100 Stat. 82]. Regardless of whether it is sufficient to reimburse the Executive’s entire monthly cost for continued medical, dental, accident, disability, and life insurance coverage, the amount of the Employer’s reimbursement under this
section 2(a) is equal to the monthly medical, dental, accident, disability, and life insurance premium cost incurred by Cortland Bancorp and the Bank on account of the Executive’s participation in Cortland Bancorp and the Bank’s medical,
dental, accident, disability, and life insurance plan in the month immediately before the month in which the Executive’s employment terminated. If providing the medical, dental, accident, disability, and life insurance coverage reimbursement
benefit would result in Cortland Bancorp or any of its affiliates breaching the terms of any insurance policy with an applicable insurer or incurring any penalty or additional tax for failing to comply with any applicable law, instead of receiving
the insurance coverage reimbursement benefit the Executive will be entitled to elect continuation coverage under COBRA section 4980B(f) and, beginning with the first payroll period after the first day of the seventh month after the month in which
the Executive’s employment terminates, Cortland Bancorp will pay to the Executive a monthly cash amount equal to the monthly premium amount the Employer would have paid for the Executive’s medical, dental, accident, disability, and life
coverage had the Executive remained actively employed, less any applicable tax withholdings (each such payment, an “Employer Payment”). The first Employer Payment will include the amount that the Executive would have
received in the seven-month period after the date of employment termination had the Executive otherwise received the Employer Payments during the seven-month period. Any benefit provided by Cortland Bancorp in accordance with the preceding sentences
after employment termination will not count toward the medical and dental plan’s obligation to provide continuation coverage under COBRA or any applicable provision of Cortland Bancorp and the Bank’s health plans that provide for
continuing coverage for the Executive, and the last day of the post-termination period in which the Executive is entitled to the benefit under this section will be deemed 

  
 2 

 
to be the date of the Executive’s “qualifying event” for purposes of COBRA, provided that if application of this sentence would result in Cortland Bancorp or any of its affiliates
incurring any penalty or additional tax for failing to comply with any applicable law, this section will be applied without giving effect to this sentence. 

(b) Cortland Bancorp’s obligation to pay benefits under section 2(a) will terminate on the first to occur of (x) the date the
Executive becomes eligible for medical, dental, accident, disability, and life insurance coverage under plans provided by another employer, (y) the Executive’s death, or (z) 36 months after the Executive’s
employment terminates. Termination of the benefit under section 2(a) does not, however, relieve Cortland Bancorp of its obligation to make a reimbursement payment due but not yet paid to the Executive. Section 2 will not be interpreted to limit
any benefits to which the Executive or the Executive’s dependents or beneficiaries may be entitled under any of Cortland Bancorp and the Bank’s employee benefit plans, agreements, programs, or practices after the Executive’s
employment termination, including without limitation retiree medical benefits. 
 (c) Involuntary termination with Cause defined. For
purposes of this Agreement, involuntary termination of the Executive’s employment is an involuntary termination with Cause if any of the following occur – 

(1) an act of fraud, embezzlement, or theft while employed by Cortland Bancorp or the Bank, or conviction of or plea of no contest to a felony
or conviction of or plea of no contest to a misdemeanor involving moral turpitude, or the actual incarceration of the Executive for 45 consecutive days or more, or 

(2) gross negligence, insubordination, disloyalty, or dishonesty in the performance of duties as an officer of Cortland Bancorp or the Bank;
willful or reckless failure to adhere to Cortland Bancorp’s or the Bank’s written policies; intentional wrongful damage to the business or property of Cortland Bancorp or the Bank, including, without limitation, its reputation, which in
Cortland Bancorp’s sole judgment causes material harm to Cortland Bancorp or the Bank; breach of fiduciary duties to Cortland Bancorp and its stockholders, whether in the Executive’s capacity as an officer or as a director of Cortland
Bancorp or the Bank, 
 (3) removal of the Executive from office or permanent prohibition of the Executive from participating in the
Bank’s affairs by an order issued under section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. 1818(e)(4) or (g)(1), or 

(4) intentional wrongful disclosure of secret processes or confidential information of Cortland Bancorp or the Bank, which in Cortland
Bancorp’s sole judgment causes material harm to Cortland Bancorp or the Bank, or 
 (5) any actions that cause the Executive to be
terminated for cause under any employment agreement existing on the date hereof or hereafter entered into between the Executive and Cortland Bancorp or the Bank, or 

(6) the occurrence of any event that results in the Executive being excluded from coverage, or having coverage limited for the Executive as
compared to other executives of Cortland Bancorp or the Bank, under a blanket bond or other fidelity or insurance policy covering directors, officers, or employees. 

  
 3 

 For purposes of this Agreement, no act or failure to act on the Executive’s
part will be considered intentional if it is due primarily to an error in judgment or negligence. An act or failure to act on the Executive’s part is intentional if it is not in good faith and if it is without a reasonable belief that the
action or failure to act is in Cortland Bancorp’s best interests. Any act or failure to act based upon authority granted by resolutions duly adopted by the board of directors or based upon the advice of counsel for Cortland Bancorp is
conclusively presumed to be in good faith and in Cortland Bancorp’s best interests. 
 (d) Voluntary termination with Good Reason
defined. For purposes of this Agreement, a voluntary termination by the Executive is a voluntary termination with Good Reason if the conditions stated in both clauses (x) and (y) are satisfied – 

(x) a voluntary termination by the Executive is a voluntary termination with Good Reason if any of the following occur without the
Executive’s advance written consent, and the term Good Reason means the occurrence of any of the following without the Executive’s advance written consent – 

1) a material diminution of the Executive’s base salary, 

2) a material diminution of the Executive’s authority, duties, or responsibilities, 

3) a material diminution in the authority, duties, or responsibilities of the supervisor to whom the Executive is required to report, 

4) a material diminution in the budget over which the Executive retains authority, 

5) a material change in the geographic location at which the Executive must perform services, or 

6) any other action or inaction that constitutes a material breach by Cortland Bancorp of this Agreement. 

(y) the Executive must give notice to Cortland Bancorp of the existence of one or more of the conditions described in clause
(x) within 90 days after the initial existence of the condition, and Cortland Bancorp has 30 days thereafter to remedy the condition. In addition, the Executive’s voluntary termination because of the existence of one or more of the
conditions described in clause (x) must occur within 24 months after the initial existence of the condition. 
 3.
Gross-Up for Taxes. (a) Additional payment to account for excise taxes. If the Executive receives change-in-control benefits under this Agreement and acceleration of benefits under any other benefit, compensation, or incentive
plan or arrangement with Cortland Bancorp or the Bank (collectively, the “Total Benefits”), and if any part of the Total Benefits is subject to the Excise Tax under Internal Revenue Code sections 280G and 4999 (the
“Excise Tax”), at the same time Cortland pays the cash severance benefit to the Executive under section 1 Cortland Bancorp will pay to the Executive the following additional amounts, consisting of (x) a
payment equal to the Excise Tax payable by the Executive under section 4999 on the Total Benefits (the “Excise Tax Payment”) and (y) a payment equal to 80% of the difference between (w) a
full gross-up amount (including the Excise Tax Payment) that would provide to the Executive the Excise Tax Payment net of all income, payroll, and excise taxes and (v) the Excise Tax Payment. Together, the additional amounts described in
clauses (x) and (y) are referred to in this Agreement as the “Gross-Up Payment Amount.” Payment of the Gross-Up Payment Amount is in addition to the benefits set forth in section 1 and
section 2. 
 Calculating the excise tax. For purposes of determining whether any of the Total Benefits are
subject to the Excise Tax and for purposes of determining the amount of the Excise Tax – 

  
 4 

	 	1)	Determination of “parachute payments” subject to the Excise Tax: any other payments or benefits received or to be received by the Executive in connection with a Change in Control or the Executive’s
termination of employment (whether under the terms of this Agreement or any other agreement or any other benefit plan or arrangement with Cortland Bancorp, the Bank, any person whose actions result in a Change in Control, or any person affiliated
with Cortland Bancorp, the Bank, or such person) will be treated as “parachute payments” within the meaning of Internal Revenue Code section 280G(b)(2) and all “excess parachute
payments” within the meaning of section 280G(b)(1) will be treated as subject to the Excise Tax, unless in the opinion of the certified public accounting firm that is retained by Cortland Bancorp as of the date immediately before the
Change in Control (the “Accounting Firm”) the other payments or benefits do not constitute (in whole or in part) parachute payments, or the excess parachute payments represent (in whole or in part) reasonable
compensation for services actually rendered within the meaning of Internal Revenue Code section 280G(b)(4) in excess of the “base amount” (as defined in Internal Revenue Code section 280G(b)(3)), or are otherwise not subject to the Excise
Tax, 

  

	 	2)	Calculation of benefits subject to the Excise Tax: the amount of the Total Benefits that will be treated as subject to the Excise Tax is equal to the lesser of (x) the total amount of the Total
Benefits reduced by the amount of such Total Benefits that in the opinion of the Accounting Firm are not parachute payments, or (y) the amount of excess parachute payments within the meaning of section 280G(b)(1) (after applying clause
(1), above), and 

  

	 	3)	Value of noncash benefits and deferred payments: the value of any noncash benefits or any deferred payment or benefit will be determined by the Accounting Firm according to the principles of Internal Revenue Code
sections 280G(d)(3) and (4). 

 Assumed marginal income tax rate. For purposes of
determining the Gross-Up Payment Amount, the Executive is deemed to pay federal income taxes at the highest marginal rate of federal income taxation in the calendar years in which the Gross-Up Payment Amount is to be made and state and local income
taxes at the highest marginal rate of taxation in the state and locality of the Executive’s residence on the date of termination of employment, net of the reduction in federal income taxes that can be obtained from deduction of state and local
taxes (calculated by assuming that any reduction under Internal Revenue Code section 68 in the amount of itemized deductions allowable to the Executive applies first to reduce the amount of state and local income taxes that would otherwise be
deductible by the Executive, and applicable federal FICA and Medicare withholding taxes). 
 Return of reduced
Excise Tax payment or payment of additional Excise Tax. If the Excise Tax is later determined to be less than the amount taken into account hereunder when the Executive’s employment
terminated, the Executive will repay to Cortland Bancorp – when the amount of the reduction in Excise Tax is finally determined – the portion of the Gross-Up Payment Amount attributable to the reduction (plus that portion of the Gross-Up
Payment Amount attributable to the Excise Tax, federal, state, and local income taxes and FICA and Medicare withholding taxes imposed on the Gross-Up Payment Amount being repaid by the Executive to the extent that the repayment results in a
reduction in Excise Tax, FICA and Medicare withholding taxes and/or a federal, state, or local income tax deduction). 
 If the Excise Tax
is later determined to be more than the amount taken into account hereunder when the Executive’s employment terminated (due, for example, to a payment whose existence or amount cannot be determined at the time of the Gross-Up Payment Amount),
Cortland Bancorp will make an additional payment to the Executive for that excess (plus any interest, penalties or additions payable by the Executive for the excess) when the amount of the excess is finally determined. 

  
 5 

 (b) Responsibilities of the Accounting Firm and Cortland Bancorp. Determinations
will be made by the Accounting Firm. Subject to the provisions of section 3(a), all determinations required to be made under this section 3(b) – including whether and when a Gross-Up Payment
Amount is required, the amount of the Gross-Up Payment Amount, and the assumptions to be used to arrive at the determination (collectively, the “Determination”) – will be made by the Accounting Firm, which will provide
detailed supporting calculations both to Cortland Bancorp and the Executive within 15 business days after receipt of notice from Cortland Bancorp or the Executive that there has been a Gross-Up Payment Amount, or such earlier time as is requested by
Cortland Bancorp. 
 Fees and expenses of the Accounting Firm and agreement
with the Accounting Firm. All fees and expenses of the Accounting Firm will be borne solely by Cortland Bancorp. Cortland Bancorp will enter into any agreement requested by the Accounting Firm for its services hereunder.

 Accounting Firm’s opinion. If the Accounting Firm determines that no Excise Tax is payable by the Executive,
the Accounting Firm will furnish the Executive with a written opinion to that effect and to the effect that failure to report Excise Tax, if any, on the Executive’s applicable federal income tax return will not result in the imposition of a
negligence or similar penalty. 
 Accounting Firm’s Determination is binding; underpayment
and overpayment. The Determination by the Accounting Firm is binding on Cortland Bancorp and the Executive. Because of the uncertainty when the Determination is made about whether any of the Total Benefits will be subject to the Excise
Tax, it is possible that a Gross-Up Payment Amount that should have been made will not have been made by Cortland Bancorp (“Underpayment”), or that a Gross-Up Payment Amount will be made that should not have been made by
Cortland Bancorp (“Overpayment”). If after a Determination by the Accounting Firm the Executive is required to make a payment of additional Excise Tax, the Accounting Firm will determine the amount of the Underpayment. The
Underpayment (together with interest at the rate provided in Internal Revenue Code section 1274(d)(2)(B)) will be paid promptly by Cortland Bancorp to or for the benefit of the Executive. If the Gross-Up Payment Amount exceeds the amount necessary
to reimburse the Executive for the Excise Tax according to section 2(a), the Accounting Firm will determine the amount of the Overpayment. The Overpayment (together with interest at the rate provided in Internal Revenue Code section 1274(d)(2)(B))
will be paid promptly by the Executive to or for the benefit of Cortland Bancorp. Provided that the Executive’s expenses are reimbursed by Cortland Bancorp, the Executive will cooperate with any reasonable requests by Cortland Bancorp in any
contests or disputes with the Internal Revenue Service relating to the Excise Tax. 
 Accounting Firm conflict
of interest. If the Accounting Firm is serving as accountant or auditor for the individual, entity, or group effecting the Change in Control, the Executive may appoint another nationally recognized public accounting firm to make the
Determinations required hereunder (in which case the term “Accounting Firm” as used in this Agreement refers to the accounting firm appointed by the Executive). 

4. Termination for Which No Benefits Are Payable. The Executive is not entitled to benefits under this Agreement if the
Executive’s employment terminates with Cause, if the Executive dies while actively employed by Cortland Bancorp or the Bank, or if the Executive becomes totally disabled while actively employed by Cortland Bancorp or the Bank. For purposes of
this Agreement the term totally disabled means that because of injury or sickness the Executive is unable to perform the Executive’s duties. The benefits, if any, payable to the Executive or the Executive’s beneficiary or estate relating
to the Executive’s death or disability will be determined solely by such benefit plans or arrangements as Cortland Bancorp or the Bank may have with the Executive relating to death or disability, not by this Agreement. This section 4 does not
apply to or operate to prevent payment of special compensation to which the Executive is entitled under section 19 after employment termination. 

  
 6 

 5. Term of Agreement. The initial term of this Agreement is three years, commencing
on the effective date of this Agreement first written above. On the first anniversary of the effective date of this Agreement and on each anniversary thereafter this Agreement will extend automatically for one additional year, unless Cortland
Bancorp’s board of directors gives notice to the Executive in writing at least 90 days before the anniversary that the term of this Agreement will not be extended. If the board of directors determines not to extend the term, the board will
promptly notify the Executive. References herein to the term of this Agreement mean the initial term and extensions of the initial term. Unless terminated earlier, this Agreement terminates when the Executive attains age 65. If the board of
directors decides not to extend the term of this Agreement, this Agreement nevertheless remains in force until its term expires. 

6. This Agreement Is Not an Employment Contract. The parties hereto acknowledge and agree that this Agreement is not a
management or employment agreement and that nothing in this Agreement gives the Executive any rights or impose any obligations to continued employment by Cortland Bancorp or the Bank or successor of Cortland Bancorp. 

7. Payment of Legal Fees. Cortland Bancorp is aware that after a Change in Control management could cause or attempt to cause
Cortland Bancorp to refuse to comply with its obligations under this Agreement, or could institute or cause or attempt to cause Cortland Bancorp to institute litigation seeking to have this Agreement declared unenforceable, or could take or attempt
to take other action to deny the Executive the benefits intended under this Agreement. In these circumstances the purpose of this Agreement would be frustrated. Cortland Bancorp desires that the Executive not be required to incur expenses associated
with the enforcement of rights under this Agreement, whether by litigation or other legal action, because the cost and expense thereof would substantially detract from the benefits intended to be granted to the Executive hereunder. Cortland Bancorp
desires that the Executive not be forced to negotiate settlement of rights under this Agreement under threat of incurring expenses. Accordingly, if after a Change in Control it appears to the Executive that (x) Cortland Bancorp has
failed to comply with any of its obligations under this Agreement or (y) Cortland Bancorp or any other person has taken any action to declare this Agreement void or unenforceable, or instituted any litigation or other legal action
designed to deny, diminish, or to recover from the Executive the benefits intended to be provided to the Executive hereunder, Cortland Bancorp irrevocably authorizes the Executive from time to time to retain counsel of the Executive’s choice,
at Cortland Bancorp’s expense as provided in this section 7, to represent the Executive in the initiation or defense of any litigation or other legal action, whether by or against Cortland Bancorp or any director, officer, stockholder, or other
person affiliated with Cortland Bancorp, in any jurisdiction. Regardless of any existing or previous attorney-client relationship between Cortland Bancorp and any counsel chosen by the Executive under this section 7, Cortland Bancorp irrevocably
consents to the Executive entering into an attorney-client relationship with that counsel, and Cortland Bancorp and the Executive agree that a confidential relationship exists between the Executive and that counsel. The fees and expenses of counsel
selected from time to time by the Executive will be paid or reimbursed to the Executive by Cortland Bancorp on a regular, periodic basis upon presentation by the Executive of a statement or statements prepared by counsel in accordance with
counsel’s customary practices, whether suit is brought or not, and regardless of whether incurred in trial, bankruptcy, or appellate proceedings. Cortland Bancorp’s payment or reimbursement of the Executive’s counsel’s fees and
expenses must occur on or before the last day of the Executive’s tax year immediately after the Executive’s tax year in which the expense is incurred. If the Executive is a “specified employee” for purposes of Internal Revenue
Code section 409A on the date of termination, payment under this section 7 will be made on the first day of the seventh month after the month in which the Executive’s termination 

  
 7 

 
occurs. Interest will accrue on the payment from the date of termination through the date of payment at the Prime Rate of Interest in effect on the date of termination and as reported in the
Wall Street Journal. The six-month delay applies if and only if an exemption from the six-month delay requirement of Internal Revenue Code section 409A is not available. The Executive’s right to payment or reimbursement under this
section 7 is not subject to liquidation or exchange for another benefit. Cortland Bancorp’s obligation to make reimbursement payments will not apply later than the Executive’s remaining lifetime (or, if longer, through the 20th anniversary of the effective date of this Agreement). The legal fee reimbursements are intended to satisfy the requirements for “reimbursement or in-kind benefit plans” described in
Treasury Regulation section 1.409A-3(i)(1)(iv)(A) and will be administered to satisfy those requirements. Cortland Bancorp’s obligation to pay the Executive’s legal fees under this section 7 operates separately from and in addition to any
legal fee reimbursement obligation Cortland Bancorp may have with the Executive under any separate severance, employment, salary continuation, or other agreement. Despite anything in this Agreement to the contrary, however, Cortland Bancorp is not
required to pay or reimburse the Executive’s legal expenses if doing so violates section 18(k) of the Federal Deposit Insurance Act [12 U.S.C. 1828(k)] and Rule 359.3 of the Federal Deposit Insurance Corporation [12 CFR 359.3]. 

8. Withholding of Taxes. Cortland Bancorp may withhold from any benefits payable under this Agreement all federal, state, local
or other taxes as may be required by law, governmental regulation, or ruling. 
 9. Successors and Assigns. (a) This
Agreement is binding on Cortland Bancorp’s successors. This Agreement is binding upon and enforceable by Cortland Bancorp and any successor to Cortland Bancorp, including any persons acquiring directly or indirectly all or substantially all
of the business or assets of Cortland Bancorp by purchase, merger, consolidation, reorganization, or otherwise. But this Agreement and Cortland Bancorp’s obligations under this Agreement are not otherwise assignable, transferable, or delegable
by Cortland Bancorp. By agreement in form and substance satisfactory to the Executive, Cortland Bancorp will require any successor to all or substantially all of the business or assets of Cortland Bancorp expressly to assume and agree to perform
this Agreement in the same manner and to the same extent Cortland Bancorp would be required to perform had no succession occurred. 
 (b)
This Agreement is enforceable by the Executive’s heirs. This Agreement inures to the benefit of and is enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributes, and
legatees. 
 (c) This Agreement is personal. This Agreement is personal in nature. The Executive’s right to receive payments
hereunder is not assignable or transferable, whether by pledge, creation of a security interest, or otherwise, except for a transfer by Executive’s will or by the laws of descent and distribution. If the Executive attempts an assignment or
transfer that is contrary to this section 9, Cortland Bancorp has no liability to pay any amount to the assignee or transferee. 

10. Notices. Any notice under this Agreement will be deemed to have been effectively made or given if in writing and personally
delivered, delivered by mail properly addressed in a sealed envelope, postage prepaid by certified or registered mail, delivered by a reputable overnight delivery service, or sent by facsimile. Unless otherwise changed by notice, notice is properly
addressed to the Executive if addressed to the address of the Executive on the books and records of Cortland Bancorp at the time of the delivery of the notice, and properly addressed to Cortland Bancorp if addressed to the Board of Directors,
Cortland Bancorp, 194 West Main Street, Cortland, Ohio 44410, Attention: Corporate Secretary. 

  
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 11. Captions and Counterparts. The headings and subheadings used in this Agreement
are included solely for convenience and do not affect the interpretation of this Agreement. This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original but all of which together constitute one and the
same agreement. 
 12. Amendments and Waivers. No provision of this Agreement may be modified, waived, or discharged unless
the waiver, modification, or discharge is agreed to in a writing signed by the Executive and by Cortland Bancorp. No waiver by either party hereto at any time of any breach by the other party hereto or waiver of compliance with any condition or
provision of this Agreement to be performed by the other party is a waiver of other provisions or conditions at the same or at any other time. 

13. Severability. The provisions of this Agreement are severable. The invalidity or unenforceability of any provision does not
affect the validity or enforceability of the other provisions of this Agreement. Any provision held to be invalid or unenforceable will be reformed to the extent (and only to the extent) necessary to make it valid and enforceable. 

14. Governing Law. The validity, interpretation, construction, and performance of this Agreement are governed by and construed
in accordance with the substantive laws of the State of Ohio, without giving effect to the principles of conflict of laws of the State of Ohio. 

15. Entire Agreement. This Agreement constitutes the entire agreement between Cortland Bancorp and the Executive concerning the
subject matter. No rights are granted to the Executive under this Agreement other than those specifically set forth. No agreements or representations, oral or otherwise, expressed or implied concerning the subject matter have been made by either
party that are not set forth expressly in this Agreement. From and after the date of this Agreement the September 28, 2012 Severance Agreement is of no further force or effect. 

16. No Mitigation Required. Cortland Bancorp hereby acknowledges that it will be difficult and could be impossible
(x) for the Executive to find reasonably comparable employment after termination and (y) to measure the amount of damages the Executive suffers because of termination. Additionally, Cortland Bancorp acknowledges that its
general severance pay plans do not provide for mitigation, offset, or reduction of any severance payment received thereunder. Cortland Bancorp further acknowledges that the payment of benefits by Cortland Bancorp under this Agreement is reasonable
and will be liquidated damages. The Executive is not required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise, nor will any profits, income, earnings, or other benefits from any source
whatsoever create any mitigation, offset, reduction, or any other obligation on the part of the Executive hereunder or otherwise. 

17. Internal Revenue Code Section 409A. Cortland Bancorp and the Executive intend that their exercise of authority or
discretion under this Agreement comply with section 409A of the Internal Revenue Code of 1986. If when the Executive’s employment terminates the Executive is a specified employee, as defined in section 409A of the Internal Revenue Code of 1986,
and if any payments or benefits under this Agreement will result in additional tax or interest to the Executive because of section 409A, then despite any provision of this Agreement to the contrary the Executive is not entitled to the payments or
benefits until the earliest of (x) the date that is at least six months after termination of the Executive’s employment for reasons other than the Executive’s death, (y) the date of the Executive’s death, or
(z) any earlier date that does not result in additional tax or interest to the Executive under section 409A. As promptly as possible after the end of the period during which payments or benefits are delayed under this provision, the
entire amount of the delayed payments will be paid to the Executive in a single lump sum. If any provision of this Agreement does not satisfy the requirements of section 409A, the provision 

  
 9 

 
will nevertheless be applied in a manner consistent with those requirements. If any provision of this Agreement would subject the Executive to additional tax or interest under section 409A,
Cortland Bancorp will reform the provision. However, Cortland Bancorp will maintain to the maximum extent practicable the original intent of the applicable provision without subjecting the Executive to additional tax or interest, and Cortland
Bancorp is not required to incur any additional compensation expense as a result of the reformed provision. References in this Agreement to section 409A of the Internal Revenue Code of 1986 include rules, regulations, and guidance of general
application issued by the Department of the Treasury under Internal Revenue Code section 409A. 
 18. No Violation of Golden
Parachute Rules. Cortland Bancorp, the Bank, and the Executive acknowledge and agree that any payment to the Executive under this Agreement and any agreement to make a payment to the Executive are or may be subject to the golden parachute
limitations of 12 U.S.C. 1828(k) and FDIC rules at 12 C.F.R. Part 359. Cortland Bancorp, the Bank, and the Executive acknowledge and agree that if any payment or agreement to make a payment under this Agreement would be considered a golden parachute
payment under 12 C.F.R. 359.1(f), neither Cortland Bancorp nor the Bank has a contractual or other obligation to make the payment to the Executive, and the agreement to make the payment is void, unless (x) the payment receives the prior
approval of the appropriate Federal banking agency, if required at that time by 12 U.S.C. section 1828(k), 12 C.F.R. Part 359, or other federal or state laws, rules or regulations, and (y) the obligation and the payment comply in all
other respects with 12 U.S.C. section 1828(k), 12 C.F.R. Part 359, and other federal and state laws, rules or regulations, to the extent applicable at the time. 

19. Restrictions on the Executive’s Post-Employment Activities. The restrictions in this section 19 have been negotiated,
presented to, and accepted by the Executive contemporaneous with the offer and acceptance by the Executive of this Agreement. Cortland Bancorp’s decision to enter into this Agreement is conditioned upon the Executive’s agreement to be
bound by the restrictions contained in this section 19. 
 (a) Promise of no solicitation. The Executive promises and agrees that
during the Restricted Period (as defined below) and in the Restricted Territory (as defined below) the Executive will1: 

1. not directly or indirectly solicit or attempt to solicit any Customer (as defined below) to accept or purchase Financial Products or
Services (as defined below) of the same nature, kind, or variety as provided to the Customer by the Bank during the two years immediately before the Executive’s employment termination with the Bank, 

2. not directly or indirectly influence or attempt to influence any Customer, joint venturer, or other business partner of the Bank to
alter that person or entity’s business relationship with the Bank in any respect, and 
 3. not accept the Financial Products or
Services business of any Customer or provide Financial Products or Services to any Customer on behalf of anyone other than the Bank. 
 (b)
Promise of no competition. The Executive promises and agrees that during the Restricted Period in the Restricted Territory the Executive will not engage, undertake, or participate in the business of providing, selling, marketing, or
distributing Financial Products or Services of a similar nature, kind, or 
  

	1 	 For example, the promise of no solicitation applies if the Executive is conducting prohibited business in the Restricted Territory or if the
entity with, for, or to whom the Executive is conducting prohibited business is located within the Restricted Territory. 

  
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variety (x) as offered by the Bank to Customers during the two years immediately before the Executive’s employment termination with the Bank, or (y) as offered by the
Bank to any of its Customers during the Restricted Period.2 Subject to the above provisions and conditions of this subparagraph (b), the Executive promises that during the Restricted Period the
Executive will not become employed by or serve as a director, partner, consultant, agent, or owner of 5% or more of the outstanding stock of or contractor to any entity providing these prohibited Financial Products or Services that is located
in or conducts business in the Restricted Territory. 
 (c) Promise of no raiding/hiring. The Executive promises and agrees that
during the Restricted Period the Executive will not solicit or attempt to solicit and will not encourage or induce in any way any employee, joint venturer, or business partner of Cortland Bancorp or the Bank to terminate an employment
or contractual relationship with Cortland Bancorp or the Bank. The Executive agrees that the Executive will not hire any person employed by Cortland Bancorp or the Bank during the two-year period before the Executive’s employment
termination with the Bank or any person employed by Cortland Bancorp or the Bank during the Restricted Period. 
 (d) Promise of no
disparagement. The Executive promises and agrees that during the Restricted Period the Executive will not cause statements to be made (whether written or oral) that reflect negatively on the business reputation of Cortland Bancorp or the
Bank. Cortland Bancorp and the Bank likewise promise and agree that during the Restricted Period Cortland Bancorp and the Bank will not cause statements to be made (whether written or oral) that reflect negatively on the reputation of the
Executive. 
 (e) Acknowledgment. The Executive and Cortland Bancorp acknowledge and agree that the provisions of this section 19
have been negotiated and carefully determined to be reasonable and necessary for the protection of legitimate business interests of Cortland Bancorp and the Bank. Both parties agree that a violation of section19 is likely to cause immediate and
irreparable harm that will give rise to the need for court ordered injunctive relief. If a breach or threatened breach by the Executive of any provision of this Agreement occurs, Cortland Bancorp, including its successors and assigns, is entitled to
obtain an injunction without bond restraining the Executive from violating the terms of this Agreement and to institute an action against the Executive to recover damages from the Executive for the breach. These remedies for default or breach are in
addition to any other remedy or form of redress provided under Ohio law. The parties acknowledge that the provisions of this section 19 survive termination of the employment relationship and are enforceable by Cortland Bancorp and Cortland
Bancorp’s successors and assigns. The parties agree that if any of the provisions of this section 19 are deemed unenforceable by a court of competent jurisdiction, the unenforceable provisions may be stricken as independent clauses by the court
in order to enforce the remaining territory restrictions and that the intent of the parties is to afford the broadest restriction on post-employment activities as set forth in this Agreement. Without limiting the generality of the foregoing, without
limiting the remedies available to Cortland Bancorp for violation of this Agreement, and without constituting an election of remedies, if the Executive violates any of the terms of section 19 the Executive forfeits on the Executive’s own behalf
and that of beneficiary(ies) any rights to and interest in any severance or other benefits under this Agreement or other contract the Executive has with Cortland Bancorp or the Bank. 

(f) Definitions: 1. “Restricted Period,” as used herein, means the one-year period immediately after the Executive’s
termination and/or separation of employment with Cortland Bancorp or the Bank, regardless of the reason for termination and/or separation and regardless of whether the term of 

 

	2 	 For example, the promise of no competition applies if the Executive is conducting prohibited business in the Restricted Territory or if the
entity with, for, or to whom the Executive is conducting prohibited business is located within the Restricted Territory. 

  
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this Agreement has expired before the Executive’s employment termination or expires under section 5 during the one-year period immediately after the Executive’s termination and/or
separation of employment with the Bank. The Restricted Period will be extended in an amount equal to any time period during which a violation of section 19 of this Agreement is proven. 

2. “Restricted Territory,” as used herein, means all of Trumbull, Portage, and Mahoning Counties in Ohio. 

3. “Customer,” as used herein, means any individual, joint venturer, entity of any sort, or other business partner of Cortland
Bancorp or the Bank with, for, or to whom Cortland Bancorp or the Bank has provided Financial Products or Services during the last two years of the Executive’s employment with Cortland Bancorp or the Bank, or any individual, joint venturer,
entity of any sort, or business partner whom Cortland Bancorp or the Bank has identified as a prospective customer of Financial Products or Services within the last two years of the Executive’s employment with Cortland Bancorp or the Bank. 

4. “Financial Products or Services,” as used herein, means any product or service that a financial institution or a financial holding
company could offer by engaging in any activity that is financial in nature or incidental to such a financial activity under section 4(k) of the Bank Holding Company Act of 1956 and that is offered by Cortland Bancorp or the Bank or an affiliate on
the date of the Executive’s employment termination, including, but not limited to, banking activities and activities that are closely related and a proper incident to banking, or other products or services of the type of which the Executive was
involved during the Executive’s employment with Cortland Bancorp or the Bank. 
 (g) Special compensation. Because the Executive
may be subject to the post-employment restrictions of this section 19 without also being entitled to Change-in-Control benefits under this Agreement, Cortland Bancorp hereby agrees that the Executive is entitled to one times compensation, as the
term compensation is defined in section 1(a), under this section 19(g), payable in a single lump sum, without reduction to account for the time value of money or discounting to present value, except that the Executive is not entitled to any
compensation under this section 19(g) if (x) the Executive is entitled to receive or has received Change-in-Control compensation under this Agreement or (y) the Executive’s employment termination is on account of
retirement or occurs after the Executive attains age 65. The provisions of section 4, prohibiting payment of severance in specified cases, do not apply to or operate to prevent payment of special compensation to which the Executive is entitled under
this section 19 after employment termination. 
 The special compensation payable under this section 19(g) will be paid to the Executive
five days after the Executive’s employment termination, but if when the Executive’s employment terminates the Executive is a specified employee, as defined in section 409A of the Internal Revenue Code of 1986, and if the special
compensation payable under this section 19(g) would be considered nonqualified deferred compensation under section 409A, and finally if an exemption from the six-month delay requirement of section 409A(a)(2)(B)(i) is not available, rather than being
payable five days after employment termination the special compensation payable under this section 19(g) will be paid to the Executive in a single lump sum without interest on the first day of the seventh month after the month in which the
Executive’s employment terminates. 
 (h) Section 19 is void after a Change in Control. Section 19 of this Agreement
is null and void after a Change in Control occurs. 

  
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 IN WITNESS WHEREOF, the
parties have executed this Severance Agreement as of the date first written above. 
  

									
	EXECUTIVE	 		 	CORTLAND BANCORP
				
	  
	 		 	By:	 	  

	Timothy Carney	 		 		 	James M. Gasior
		 		 		 	Its:	 	President and Chief Executive Officer

  
 13

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