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<TITLE>Filed by Bowne Pure Compliance</TITLE>
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<P style="font-size: 14pt" align="center"><B>UNITED STATES<BR>
SECURITIES AND
EXCHANGE COMMISSION<BR>
<FONT style="font-size: 12pt">Washington, D.C. 20549
</FONT></B>

<P style="font-size: 18pt" align="center"><B>FORM 8-K</B>

<P style="font-size: 12pt" align="center"><B>CURRENT REPORT<BR>
Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934</B>

<P style="font-size: 10pt" align="center"><B>Date of Report (Date of earliest
event reported): December 9, 2008</B>



<P style="font-size: 24pt" align="center"><B>Cortland Bancorp<BR>
</B><FONT
style="font-size: 10pt">(Exact name of registrant as specified in its charter)
</FONT>
<TABLE style="font-size: 10pt; text-align: center" cellspacing="0"
cellpadding="0" width="100%" border="0">

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  <TD width="32%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="33%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="32%">&nbsp;</TD>
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 <TR valign="bottom">
  <TD style="border-bottom: #000000 1px solid"><B>Ohio</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>000-13814</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>34-1451118</B></TD>
 </TR>
 <TR valign="top">
  <TD>(State or other Jurisdiction of Incorporation)</TD>
  <TD>&nbsp;</TD>
  <TD>(Commission File Number)</TD>
  <TD>&nbsp;</TD>
  <TD>(IRS Employer Identification No.)</TD>
 </TR>

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cellpadding="0" width="100%" border="0">

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  <TD style="border-bottom: #000000 1px solid"><B><BR>
194 West Main Street,
Cortland, Ohio<BR>
</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>44410</B></TD>
 </TR>
 <TR valign="top">
  <TD>(Address of Principal Executive Offices)</TD>
  <TD>&nbsp;</TD>
  <TD>(Zip Code)</TD>
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<P style="font-size: 10pt" align="center">Registrant&#8217;s telephone number,
including area code: <B>(330) 637-8040</B>
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cellpadding="0" width="30%" border="0">

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  <TD style="border-bottom: #000000 1px solid" nowrap><B><BR>
[not
applicable]</B></TD>
 </TR>
 <TR>
  <TD nowrap>(Former name or former address if changed since last report.)</TD>
 </TR>

</TABLE>


<P style="font-size: 10pt" align="left">Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions:

<P style="font-size: 10pt" align="left"><FONT face="Wingdings">o</FONT> Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)<BR>
<BR>
<FONT face="Wingdings">o</FONT> Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<BR>



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<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">1
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<P style="font-size: 10pt" align="left"><B>Item&nbsp;5.02 Compensatory
Arrangements of Certain Officers.</B>

<P style="font-size: 10pt; text-indent: 4%" align="left"><B>Amended Salary
Continuation Agreements</B>. On December&nbsp;9, 2008, the Board of Directors
of The Cortland Savings and Banking Company (the &#8220;Bank&#8221;), a wholly
owned subsidiary of Cortland Bancorp (&#8220;Cortland&#8221;), approved and
adopted the amended salary continuation agreements proposed for Lawrence A.
Fantauzzi, President and Chief Executive Officer of Cortland and the Bank,
James M. Gasior, Senior Vice President, Chief Financial Officer, and Secretary
of Cortland and the Bank, Stephen A. Telego, Sr., Senior Vice President and
Director of Human Resources and Corporate Administration of the Bank, and four
other executives. The amended salary continuation agreements amend and restate
these executives&#8217; previous salary continuation agreements in their
entirety.

<P style="font-size: 10pt; text-indent: 4%" align="left">The salary
continuation agreements were amended in order to comply with Section&nbsp;409A
of the Internal Revenue Code of 1986, as amended (the &#8220;IRC&#8221;),
including the final regulations issued by the Internal Revenue Service. IRC
Section 409A governs the deferral of compensation by a director, officer, or
employee who has a legally binding right to compensation that is payable in a
future year. IRC Section&nbsp;409A imposes new requirements with respect to
deferral elections, payment events, and payment elections.

<P style="font-size: 10pt; text-indent: 4%" align="left">As part of the
revisions to comply with IRC Section&nbsp;409A, the amended salary continuation
agreements provide that the normal retirement benefit is automatically payable
at the normal retirement age of 65, even if separation from service does not
occur at age 65. In addition, Messrs.&nbsp;Fantauzzi and Gasior&#8217;s amended
salary continuation agreements provide a single trigger change-in-control
benefit payable upon the occurrence of a change in control, regardless of
whether employment termination occurs. Previously, Messrs.&nbsp;Fantauzzi and
Gasior&#8217;s salary continuation agreements required a termination of
employment following a change in control for change-in-control benefits to be
payable. The revised change-in-control design for Messrs.&nbsp;Fantauzzi and
Gasior under these two officers&#8217; salary continuation agreements was
implemented to avoid the six-month delay imposed by IRC Section&nbsp;409A if
benefits are payable on account of a separation from service. IRC imposes a
six-month payment delay on termination benefits payable to a so-called
specified employee, meaning an executive of a publicly traded company whose
annual compensation is $150,000 or more (the $150,000 figure is annually
adjusted for inflation by the Internal Revenue Service).

<P style="font-size: 10pt; text-indent: 4%" align="left">The Bank previously
purchased insurance on the lives of the executives who are parties to the
amended salary continuation agreements and entered into split dollar agreements
with them, promising to share a portion of the life insurance death benefits
with the executives&#8217; designated beneficiaries if the executive died while
working for the Bank. The Bank purchased the split dollar life insurance
policies as informal financing for the Bank&#8217;s payment obligations under
the salary continuation agreements. Because (i)&nbsp;the 2008 amended salary
continuation agreements provide that the normal retirement benefit is payable
at the time the executive attains age 65 and (ii)&nbsp;the intent of the split
dollar agreements was to provide a split dollar life insurance benefit for
death occurring before the salary continuation agreement obligation was fully
accrued, the Bank also entered into amended split dollar agreements with the
seven executives specifying that the split dollar life insurance benefit
expires when the nonqualified deferred compensation obligation is fully
accrued at age 65, even if the executive is still working for the Bank.

<P style="font-size: 10pt; text-indent: 4%" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">2
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<P style="font-size: 10pt; text-indent: 4%" align="left"><B>Severance
Agreements</B>. On December&nbsp;9, 2008, The Board of Directors of Cortland
and the Bank also approved and adopted the revised severance agreements
proposed for Messrs.&nbsp;Fantauzzi, Gasior, Telego, and four other executives.
Again, the principal reason for replacement of the existing severance
agreements was to ensure compliance with the requirements of IRC
Section&nbsp;409A. Accordingly, various provisions in the severance agreements
were revised to be consistent with IRC Section&nbsp;409A. Cortland and the Bank
also entered into a new severance agreement with Craig M. Phython, the
Bank&#8217;s Senior Vice President, Chief Investment Officer, and Treasurer.
Like the other executives with severance agreements, Mr.&nbsp;Phython&#8217;s
severance agreement provides a single-trigger change-in-control benefit equal
to one times his annual compensation payable upon the occurrence of a change in
control.

<P style="font-size: 10pt; text-indent: 4%" align="left">The summary of the
compensatory agreements described above is qualified in its entirety by
reference to the form of agreements attached hereto as Exhibits 10.17 through
10.32 and incorporated herein by reference. Reference is made to the copies
included as Exhibits 10.17 through 10.32 for the complete terms of the
agreements.

<P style="font-size: 10pt" align="left"><B>Item&nbsp;9.</B><B>01(d)</B><B>
Exhibits</B>

<P style="font-size: 10pt; margin-left: 4%" align="left">*Exhibit&nbsp;10.17
Third Amended and Restated Salary Continuation Agreement between The Cortland
Savings and Banking Company and Timothy Carney, dated as of December&nbsp;3, 2008

<P style="font-size: 10pt; margin-left: 4%" align="left">*Exhibit&nbsp;10.18
Third Amended and Restated Salary Continuation Agreement between The Cortland
Savings and Banking Company and Lawrence A. Fantauzzi, dated as of December&nbsp;3, 2008

<P style="font-size: 10pt; margin-left: 4%" align="left">*Exhibit&nbsp;10.19
Third Amended and Restated Salary Continuation Agreement between The Cortland
Savings and Banking Company and James M. Gasior, dated as of December&nbsp;3, 2008

<P style="font-size: 10pt; margin-left: 4%" align="left">*Exhibit&nbsp;10.20
Second Amended Salary Continuation Agreement between The Cortland Savings and
Banking Company and Marlene Lenio, dated as of December&nbsp;3, 2008

<P style="font-size: 10pt; margin-left: 4%" align="left">*Exhibit&nbsp;10.21
Amended Salary Continuation Agreement between The Cortland Savings and Banking
Company and Craig Phythyon, dated as of December&nbsp;3,
2008

<P style="font-size: 10pt; margin-left: 4%" align="left">*Exhibit&nbsp;10.22
Third Amended and Restated Salary Continuation Agreement between The Cortland
Savings and Banking Company and Stephen A. Telego, Sr., dated as of December&nbsp;3, 2008

<P style="font-size: 10pt; margin-left: 4%" align="left">*Exhibit&nbsp;10.23
Third Amended and Restated Salary Continuation Agreement between The Cortland
Savings and Banking Company and Danny L. White, dated as of December&nbsp;3, 2008

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">3
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<P style="font-size: 10pt; margin-left: 4%" align="left">*Exhibit&nbsp;10.24
Third Amended Split Dollar Agreement and Endorsement between The Cortland
Savings and Banking Company and Timothy Carney, dated as of December&nbsp;3, 2008

<P style="font-size: 10pt; margin-left: 4%" align="left">*Exhibit&nbsp;10.25
Third Amended Split Dollar Agreement and Endorsement between The Cortland
Savings and Banking Company and Lawrence A. Fantauzzi, dated as of December&nbsp;3, 2008

<P style="font-size: 10pt; margin-left: 4%" align="left">*Exhibit&nbsp;10.26
Third Amended Split Dollar Agreement and Endorsement between The Cortland
Savings and Banking Company and James M. Gasior, dated as of December&nbsp;3, 2008

<P style="font-size: 10pt; margin-left: 4%" align="left">*Exhibit&nbsp;10.27
Second Amended Split Dollar Agreement between The Cortland Savings and Banking
Company and Marlene Lenio, dated as of December&nbsp;3,
2008

<P style="font-size: 10pt; margin-left: 4%" align="left">*Exhibit&nbsp;10.28
Amended Split Dollar Agreement and Endorsement between The Cortland Savings and
Banking Company and Craig Phythyon, dated as of December&nbsp;3, 2008

<P style="font-size: 10pt; margin-left: 4%" align="left">*Exhibit&nbsp;10.29
Third Amended Split Dollar Agreement and Endorsement between The Cortland
Savings and Banking Company and Stephen A. Telego, Sr., dated as of
December&nbsp;3, 2008

<P style="font-size: 10pt; margin-left: 4%" align="left">*Exhibit&nbsp;10.30
Third Amended Split Dollar Agreement and Endorsement between The Cortland
Savings and Banking Company and Danny L. White, dated as of
December&nbsp;3, 2008

<P style="font-size: 10pt; margin-left: 4%" align="left">*Exhibit&nbsp;10.31
Severance Agreement entered into by Cortland Bancorp and The Cortland Savings
and Banking Company in December&nbsp;3, 2008, with each
of Timothy Carney, Lawrence A. Fantauzzi, James M. Gasior, and Stephen A.
Telego, Sr.

<P style="font-size: 10pt; margin-left: 4%" align="left">*Exhibit&nbsp;10.32
Severance Agreement entered into by Cortland Bancorp and The Cortland Savings
and Banking Company in December&nbsp;3, 2008, with each
of Marlene Lenio, Craig M. Phython, Barbara Sandrock, and Danny L. White

<P style="font-size: 10pt" align="left">*Management contract or compensatory
plan or arrangement

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">4
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<P style="font-size: 10pt" align="center"><B>Signatures</B>

<P style="font-size: 10pt; text-indent: 4%" align="left">Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.

<P style="font-size: 10pt; margin-left: 46%" align="left"><B>Cortland
Bancorp</B>

<P>
<TABLE style="font-size: 10pt" cellspacing="0" cellpadding="0" width="100%"
border="0">

 <TR
style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; color: #000000"
valign="top">
  <TD colspan="2">Date: 12, 2008</TD>
 </TR>

</TABLE>


<P style="margin-top: -11pt; font-size: 10pt; margin-left: 46%"
align="left"><U>/s/ Lawrence A.
Fantauzzi&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
<BR>
Lawrence A. Fantauzzi <BR>
President and Chief Executive Officer

<P style="font-size: 10pt" align="center">&nbsp;

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">5
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<P style="font-size: 10pt" align="center"><B>Cortland Bancorp</B>

<P style="font-size: 10pt" align="center"><B>CURRENT REPORT ON FORM 8-K</B>

<P style="font-size: 10pt" align="center"><B>INDEX OF EXHIBITS</B>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" cellpadding="0" width="100%"
border="0">
<!-- Begin Table Head -->

 <TR valign="bottom">
  <TD width="20%">&nbsp;</TD>
  <TD width="5%">&nbsp;</TD>
  <TD width="75%">&nbsp;</TD>
 </TR>
 <TR style="font-size: 10pt" valign="bottom">
  <TD style="border-bottom: #000000 1px solid" nowrap align="left"><B>Exhibit
No.</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid" nowrap
align="center"><B>Description of Exhibit</B></TD>
 </TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">*Exhibit&nbsp;10.17 </DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Third Amended and Restated Salary Continuation
Agreement between The Cortland Savings and Banking Company and Timothy Carney,
dated as of December&nbsp;3, 2008</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">*Exhibit&nbsp;10.18 </DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Third Amended and Restated Salary Continuation
Agreement between The Cortland Savings and Banking Company and Lawrence A.
Fantauzzi, dated as of December&nbsp;3, 2008</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">*Exhibit&nbsp;10.19 </DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Third Amended and Restated Salary Continuation
Agreement between The Cortland Savings and Banking Company and James M. Gasior,
dated as of December&nbsp;3, 2008</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">*Exhibit&nbsp;10.20 </DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Second Amended Salary Continuation Agreement
between The Cortland Savings and Banking Company and Marlene Lenio, dated as of
December&nbsp;3, 2008</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">*Exhibit&nbsp;10.21 </DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Amended Salary Continuation Agreement between
The Cortland Savings and Banking Company and Craig Phythyon, dated as of
December&nbsp;3, 2008</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">*Exhibit&nbsp;10.22 </DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Third Amended and Restated Salary Continuation
Agreement between The Cortland Savings and Banking Company and Stephen A.
Telego, Sr., dated as of December&nbsp;3, 2008</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">*Exhibit&nbsp;10.23 </DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Third Amended and Restated Salary Continuation
Agreement between The Cortland Savings and Banking Company and Danny L. White,
dated as of December&nbsp;3, 2008</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">*Exhibit&nbsp;10.24 </DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Third Amended Split Dollar Agreement and
Endorsement between The Cortland Savings and Banking Company and Timothy
Carney, dated as of December&nbsp;3, 2008</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">*Exhibit&nbsp;10.25 </DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Third Amended Split Dollar Agreement and
Endorsement between The Cortland Savings and Banking Company and Lawrence A.
Fantauzzi, dated as of December&nbsp;3, 2008</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">&nbsp;</TD>
 </TR>
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</TABLE>
</DIV>

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">6
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<DIV
style="margin-left: 0.25in; width: 7.2in; font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" cellpadding="0" width="100%"
border="0">
<!-- Begin Table Head -->

 <TR valign="bottom">
  <TD width="19%">&nbsp;</TD>
  <TD width="5%">&nbsp;</TD>
  <TD width="76%">&nbsp;</TD>
 </TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">*Exhibit&nbsp;10.26 </DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Third Amended Split Dollar Agreement and
Endorsement between The Cortland Savings and Banking Company and James M.
Gasior, dated as of December&nbsp;3, 2008</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">*Exhibit&nbsp;10.27 </DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Second Amended Split Dollar Agreement between
The Cortland Savings and Banking Company and Marlene Lenio, dated as of
December&nbsp;3, 2008</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">*Exhibit&nbsp;10.28 </DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Amended Split Dollar Agreement and Endorsement
between The Cortland Savings and Banking Company and Craig Phythyon, dated as
of December&nbsp;3, 2008</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">*Exhibit&nbsp;10.29 </DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Third Amended Split Dollar Agreement and
Endorsement between The Cortland Savings and Banking Company and Stephen A.
Telego, Sr., dated as of December&nbsp;3, 2008</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">*Exhibit&nbsp;10.30 </DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Third Amended Split Dollar Agreement and
Endorsement between The Cortland Savings and Banking Company and Danny L.
White, dated as of December&nbsp;3, 2008</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">*Exhibit&nbsp;10.31 </DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Severance Agreement entered into by Cortland
Bancorp and The Cortland Savings and Banking Company in
December&nbsp;3, 2008, with each of Timothy Carney,
Lawrence A. Fantauzzi, James M. Gasior, and Stephen A. Telego, Sr.</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">*Exhibit&nbsp;10.32 </DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Severance Agreement entered into by Cortland
Bancorp and The Cortland Savings and Banking Company in
December&nbsp;3, 2008, with each of Marlene Lenio, Craig
M. Phython, Barbara Sandrock, and Danny L. White</TD>
 </TR>
<!-- End Table Body -->

</TABLE>
</DIV>

<P style="font-size: 10pt" align="left">*Management contract or compensatory
plan or arrangement

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">7
</DIV>
</BODY>
</HTML>
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{"company-data": {"conformed-name": "CORTLAND BANCORP INC", "cik": "0000774569", "assigned-sic": "6035", "irs-number": "341451118", "state-of-incorporation": "OH", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-13814", "film-number": "081245189"}, "business-address": {"street1": "194 W MAIN ST", "city": "CORTLAND", "state": "OH", "zip": "44410", "phone": "2166378040"}, "mail-address": {"street1": "194 WEST MAIN STREET", "city": "CORTLAND", "state": "OH", "zip": "44410"}}
Filed by Bowne Pure Compliance
UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest
event reported): December 9, 2008
Cortland Bancorp
(Exact name of registrant as specified in its charter)
Ohio
000-13814
34-1451118
(State or other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
194 West Main Street,
Cortland, Ohio
44410
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number,
including area code:
(330) 637-8040
[not
applicable]
(Former name or former address if changed since last report.)
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions:
o
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o
Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 5.02 Compensatory
Arrangements of Certain Officers.
Amended Salary
Continuation Agreements
. On December 9, 2008, the Board of Directors
of The Cortland Savings and Banking Company (the "Bank"), a wholly
owned subsidiary of Cortland Bancorp ("Cortland"), approved and
adopted the amended salary continuation agreements proposed for Lawrence A.
Fantauzzi, President and Chief Executive Officer of Cortland and the Bank,
James M. Gasior, Senior Vice President, Chief Financial Officer, and Secretary
of Cortland and the Bank, Stephen A. Telego, Sr., Senior Vice President and
Director of Human Resources and Corporate Administration of the Bank, and four
other executives. The amended salary continuation agreements amend and restate
these executives' previous salary continuation agreements in their
entirety.
The salary
continuation agreements were amended in order to comply with Section 409A
of the Internal Revenue Code of 1986, as amended (the "IRC"),
including the final regulations issued by the Internal Revenue Service. IRC
Section 409A governs the deferral of compensation by a director, officer, or
employee who has a legally binding right to compensation that is payable in a
future year. IRC Section 409A imposes new requirements with respect to
deferral elections, payment events, and payment elections.
As part of the
revisions to comply with IRC Section 409A, the amended salary continuation
agreements provide that the normal retirement benefit is automatically payable
at the normal retirement age of 65, even if separation from service does not
occur at age 65. In addition, Messrs. Fantauzzi and Gasior's amended
salary continuation agreements provide a single trigger change-in-control
benefit payable upon the occurrence of a change in control, regardless of
whether employment termination occurs. Previously, Messrs. Fantauzzi and
Gasior's salary continuation agreements required a termination of
employment following a change in control for change-in-control benefits to be
payable. The revised change-in-control design for Messrs. Fantauzzi and
Gasior under these two officers' salary continuation agreements was
implemented to avoid the six-month delay imposed by IRC Section 409A if
benefits are payable on account of a separation from service. IRC imposes a
six-month payment delay on termination benefits payable to a so-called
specified employee, meaning an executive of a publicly traded company whose
annual compensation is $150,000 or more (the $150,000 figure is annually
adjusted for inflation by the Internal Revenue Service).
The Bank previously
purchased insurance on the lives of the executives who are parties to the
amended salary continuation agreements and entered into split dollar agreements
with them, promising to share a portion of the life insurance death benefits
with the executives' designated beneficiaries if the executive died while
working for the Bank. The Bank purchased the split dollar life insurance
policies as informal financing for the Bank's payment obligations under
the salary continuation agreements. Because (i) the 2008 amended salary
continuation agreements provide that the normal retirement benefit is payable
at the time the executive attains age 65 and (ii) the intent of the split
dollar agreements was to provide a split dollar life insurance benefit for
death occurring before the salary continuation agreement obligation was fully
accrued, the Bank also entered into amended split dollar agreements with the
seven executives specifying that the split dollar life insurance benefit
expires when the nonqualified deferred compensation obligation is fully
accrued at age 65, even if the executive is still working for the Bank.
Severance
Agreements
. On December 9, 2008, The Board of Directors of Cortland
and the Bank also approved and adopted the revised severance agreements
proposed for Messrs. Fantauzzi, Gasior, Telego, and four other executives.
Again, the principal reason for replacement of the existing severance
agreements was to ensure compliance with the requirements of IRC
Section 409A. Accordingly, various provisions in the severance agreements
were revised to be consistent with IRC Section 409A. Cortland and the Bank
also entered into a new severance agreement with Craig M. Phython, the
Bank's Senior Vice President, Chief Investment Officer, and Treasurer.
Like the other executives with severance agreements, Mr. Phython's
severance agreement provides a single-trigger change-in-control benefit equal
to one times his annual compensation payable upon the occurrence of a change in
control.
The summary of the
compensatory agreements described above is qualified in its entirety by
reference to the form of agreements attached hereto as Exhibits 10.17 through
10.32 and incorporated herein by reference. Reference is made to the copies
included as Exhibits 10.17 through 10.32 for the complete terms of the
agreements.
Item 9.
01(d)
Exhibits
*Exhibit 10.17
Third Amended and Restated Salary Continuation Agreement between The Cortland
Savings and Banking Company and Timothy Carney, dated as of December 3, 2008
*Exhibit 10.18
Third Amended and Restated Salary Continuation Agreement between The Cortland
Savings and Banking Company and Lawrence A. Fantauzzi, dated as of December 3, 2008
*Exhibit 10.19
Third Amended and Restated Salary Continuation Agreement between The Cortland
Savings and Banking Company and James M. Gasior, dated as of December 3, 2008
*Exhibit 10.20
Second Amended Salary Continuation Agreement between The Cortland Savings and
Banking Company and Marlene Lenio, dated as of December 3, 2008
*Exhibit 10.21
Amended Salary Continuation Agreement between The Cortland Savings and Banking
Company and Craig Phythyon, dated as of December 3,
2008
*Exhibit 10.22
Third Amended and Restated Salary Continuation Agreement between The Cortland
Savings and Banking Company and Stephen A. Telego, Sr., dated as of December 3, 2008
*Exhibit 10.23
Third Amended and Restated Salary Continuation Agreement between The Cortland
Savings and Banking Company and Danny L. White, dated as of December 3, 2008
*Exhibit 10.24
Third Amended Split Dollar Agreement and Endorsement between The Cortland
Savings and Banking Company and Timothy Carney, dated as of December 3, 2008
*Exhibit 10.25
Third Amended Split Dollar Agreement and Endorsement between The Cortland
Savings and Banking Company and Lawrence A. Fantauzzi, dated as of December 3, 2008
*Exhibit 10.26
Third Amended Split Dollar Agreement and Endorsement between The Cortland
Savings and Banking Company and James M. Gasior, dated as of December 3, 2008
*Exhibit 10.27
Second Amended Split Dollar Agreement between The Cortland Savings and Banking
Company and Marlene Lenio, dated as of December 3,
2008
*Exhibit 10.28
Amended Split Dollar Agreement and Endorsement between The Cortland Savings and
Banking Company and Craig Phythyon, dated as of December 3, 2008
*Exhibit 10.29
Third Amended Split Dollar Agreement and Endorsement between The Cortland
Savings and Banking Company and Stephen A. Telego, Sr., dated as of
December 3, 2008
*Exhibit 10.30
Third Amended Split Dollar Agreement and Endorsement between The Cortland
Savings and Banking Company and Danny L. White, dated as of
December 3, 2008
*Exhibit 10.31
Severance Agreement entered into by Cortland Bancorp and The Cortland Savings
and Banking Company in December 3, 2008, with each
of Timothy Carney, Lawrence A. Fantauzzi, James M. Gasior, and Stephen A.
Telego, Sr.
*Exhibit 10.32
Severance Agreement entered into by Cortland Bancorp and The Cortland Savings
and Banking Company in December 3, 2008, with each
of Marlene Lenio, Craig M. Phython, Barbara Sandrock, and Danny L. White
*Management contract or compensatory
plan or arrangement
Signatures
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
Cortland
Bancorp
Date: 12, 2008
/s/ Lawrence A.
Fantauzzi
Lawrence A. Fantauzzi
President and Chief Executive Officer
Cortland Bancorp
CURRENT REPORT ON FORM 8-K
INDEX OF EXHIBITS
Exhibit
No.
Description of Exhibit
*Exhibit 10.17
Third Amended and Restated Salary Continuation
Agreement between The Cortland Savings and Banking Company and Timothy Carney,
dated as of December 3, 2008
*Exhibit 10.18
Third Amended and Restated Salary Continuation
Agreement between The Cortland Savings and Banking Company and Lawrence A.
Fantauzzi, dated as of December 3, 2008
*Exhibit 10.19
Third Amended and Restated Salary Continuation
Agreement between The Cortland Savings and Banking Company and James M. Gasior,
dated as of December 3, 2008
*Exhibit 10.20
Second Amended Salary Continuation Agreement
between The Cortland Savings and Banking Company and Marlene Lenio, dated as of
December 3, 2008
*Exhibit 10.21
Amended Salary Continuation Agreement between
The Cortland Savings and Banking Company and Craig Phythyon, dated as of
December 3, 2008
*Exhibit 10.22
Third Amended and Restated Salary Continuation
Agreement between The Cortland Savings and Banking Company and Stephen A.
Telego, Sr., dated as of December 3, 2008
*Exhibit 10.23
Third Amended and Restated Salary Continuation
Agreement between The Cortland Savings and Banking Company and Danny L. White,
dated as of December 3, 2008
*Exhibit 10.24
Third Amended Split Dollar Agreement and
Endorsement between The Cortland Savings and Banking Company and Timothy
Carney, dated as of December 3, 2008
*Exhibit 10.25
Third Amended Split Dollar Agreement and
Endorsement between The Cortland Savings and Banking Company and Lawrence A.
Fantauzzi, dated as of December 3, 2008
*Exhibit 10.26
Third Amended Split Dollar Agreement and
Endorsement between The Cortland Savings and Banking Company and James M.
Gasior, dated as of December 3, 2008
*Exhibit 10.27
Second Amended Split Dollar Agreement between
The Cortland Savings and Banking Company and Marlene Lenio, dated as of
December 3, 2008
*Exhibit 10.28
Amended Split Dollar Agreement and Endorsement
between The Cortland Savings and Banking Company and Craig Phythyon, dated as
of December 3, 2008
*Exhibit 10.29
Third Amended Split Dollar Agreement and
Endorsement between The Cortland Savings and Banking Company and Stephen A.
Telego, Sr., dated as of December 3, 2008
*Exhibit 10.30
Third Amended Split Dollar Agreement and
Endorsement between The Cortland Savings and Banking Company and Danny L.
White, dated as of December 3, 2008
*Exhibit 10.31
Severance Agreement entered into by Cortland
Bancorp and The Cortland Savings and Banking Company in
December 3, 2008, with each of Timothy Carney,
Lawrence A. Fantauzzi, James M. Gasior, and Stephen A. Telego, Sr.
*Exhibit 10.32
Severance Agreement entered into by Cortland
Bancorp and The Cortland Savings and Banking Company in
December 3, 2008, with each of Marlene Lenio, Craig
M. Phython, Barbara Sandrock, and Danny L. White
*Management contract or compensatory
plan or arrangement