X0303 4 2011-05-27 0000723188 COMMUNITY BANK SYSTEM INC CBU 0001264817 ACE BRIAN R R.R. #1, BOX 1550 LACEYVILLE PA 18623 1 Phantom Stock (Deferred Compensation) 2011-05-27 4 A 0 141.9878 24.65 A Common Stock 141.9878 18688.1316 D Each unit of phantom stock is the economic equivalent of one share of Community Bank System, Inc. common stock. The units of phantom stock relating to the Deferred Compensation Plan will be settled in Community Bank System, Inc. common stock at future dates selected by the reporting person. Includes 173.7452 units of phantom stock acquired on April 11, 2011 under the Deferred Compensation Plan's dividend reinvestment feature. /s/ Donna J. Drengel, as attorney-in-fact, pursuant to a power of attorney for Brian R. Ace 2011-06-01