THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Community Bank System, Inc. (CBU)

4/13/2006 Proxy Information

Some of the directors and executive officers of the Company and the Bank (and the members of their immediate families and corporations, organizations, trusts, and estates with which these individuals are associated) are indebted to the Bank. However, all such loans were made in the ordinary course of business, do not involve more than the normal risk of collectibility or present other unfavorable features, and were made on substantially the same terms, including interest rate and collateral requirements, as those prevailing at the same time for comparable loan transactions with unaffiliated persons. No such loan is nonperforming at present. The Company expects that the Bank will continue to have banking transactions in the ordinary course of business with the CompanyÕs executive officers and directors and their associates on substantially the same terms, including interest rates and collateral, as those then prevailing for comparable transactions with others.

Outside of these normal customer relationships, none of the directors or executive officers of the Company or the Bank and no 5% Shareholders of the Company (or members of the immediate families of any of the above or any corporations, organizations, or trusts with which such persons are associated) maintains any significant business or personal relationship with the Company or the Bank, other than as arises by virtue of his ownership interest in the Company or his position with the Company or the Bank. The law firm of Franklin & Gabriel, owned by Director Gabriel, provided legal services to the BankÕs operations in its Finger Lakes Markets during 2005; the law firm of DiCerbo and Palumbo, of which Director DiCerbo is a partner, provided legal services to the BankÕs operations in its Southern Region Markets during 2005; the law firm of Cantwell & Cantwell, owned by Director Cantwell, provided legal services to the BankÕs operations in its Northern Region Markets during 2005; and Director Sally A. Steele, Esq. provided legal services to the BankÕs operations in its Pennsylvania Markets during 2005. For services rendered during 2005 and for related out-of-pocket disbursements, DiCerbo and Palumbo received $259,391 from the Bank, Franklin and Gabriel received $62,133 from the Bank, and Cantwell & Cantwell received $49,832 from the Bank. The amount received by Director Steele for legal services rendered during 2005 and for related out-of-pocket disbursements did not exceed 5% of her firmÕs gross revenues.

Pursuant to the terms of its written charter, the Audit/Compliance/Risk Management Committee is responsible for reviewing and approving all related-party transactions involving the Company or the Bank. Consistent with this responsibility, the Committee has reviewed and approved the foregoing relationships as being consistent with the best interests of the Company and the Bank.

4/7/2005 Proxy Information

Some of the directors and executive officers of the Company and the Bank (and the members of their immediate families and corporations, organizations, trusts, and estates with which these individuals are associated) are indebted to the Bank. However, all such loans were made in the ordinary course of business, do not involve more than the normal risk of collectibility or present other unfavorable features, and were made on substantially the same terms, including interest rate and collateral requirements, as those prevailing at the same time for comparable loan transactions with unaffiliated persons. No such loan is nonperforming at present. The Company expects that the Bank will continue to have banking transactions in the ordinary course of business with the CompanyÕs executive officers and directors and their associates on substantially the same terms, including interest rates and collateral, as those then prevailing for comparable transactions with others.

Outside of these normal customer relationships, none of the directors or executive officers of the Company or the Bank and no 5% Shareholders of the Company (or members of the immediate families of any of the above or any corporations, organizations, or trusts with which such persons are associated) maintains any significant business or personal relationship with the Company or the Bank, other than as arises by virtue of his ownership interest in the Company or his position with the Company or the Bank. The law firm of Franklin & Gabriel, owned by Director Gabriel, provided legal services to the BankÕs operations in its Finger Lakes Markets during 2004; the law firm of DiCerbo and Palumbo, of which Director DiCerbo is a partner, provided legal services to the BankÕs operations in its Southern Region Markets during 2004; the law firm of Cantwell & Cantwell, owned by Director Cantwell, provided legal services to the BankÕs operations in its Northern Region Markets during 2004; and Director Sally A. Steele, Esq. provided legal services to the BankÕs operations in its Pennsylvania Markets during 2004. For services rendered during 2004 and for related out-of-pocket disbursements, DiCerbo and Palumbo received $244,845 from the Bank, Franklin and Gabriel received $62,575 from the Bank, and Cantwell & Cantwell received $48,840 from the Bank. The amount received by Director Steele for legal services rendered during 2004 and for related out-of-pocket disbursements did not exceed 5% of her firmÕs gross revenues.

Pursuant to the terms of its written charter, the Audit/Compliance/Risk Management Committee is responsible for reviewing and approving all related-party transactions involving the Company or the Bank. Consistent with this responsibility, the Committee has reviewed and approved the foregoing relationships as being consistent with the best interests of the Company and the Bank.

4/15/2004 Proxy Information

Harold Kaplan and Saul Kaplan are brothers.

Some of the directors and executive officers of the Company and the Bank (and the members of their immediate families and corporations, organizations, trusts, and estates with which these individuals are associated) are indebted to the Bank. However, all such loans were made in the ordinary course of business, do not involve more than the normal risk of collectibility or present other unfavorable features, and were made on substantially the same terms, including interest rate and collateral requirements, as those prevailing at the same time for comparable loan transactions with unaffiliated persons. No such loan is nonperforming at present. The Company expects that the Bank will continue to have banking transactions in the ordinary course of business with the Company's executive officers and directors and their associates on substantially the same terms, including interest rates and collateral, as those then prevailing for comparable transactions with others.

Outside of these normal customer relationships, none of the directors or executive officers of the Company or the Bank and no 5% Shareholders of the Company (or members of the immediate families of any of the above or any corporations, organizations, or trusts with which such persons are associated) maintains any significant business or personal relationship with the Company or the Bank, other than as arises by virtue of his ownership interest in the Company or his position with the Company or the Bank. The law firms of (i) Franklin & Gabriel, owned by Director Gabriel, provided legal services to the Bank's operations in its Finger Lakes Markets, (ii) DiCerbo and Palumbo, of which Director DiCerbo is a partner, provided legal services to the Bank's operations in its Southern Region Markets, and (iii) Cantwell & Cantwell, owned by Director Cantwell, provided legal services to the Bank's operations in its Northern Region Markets. For services rendered during 2003 and for related out-of-pocket disbursements, DiCerbo and Palumbo received $187,655 from the Bank, Franklin and Gabriel received $38,394 from the Bank, and Cantwell & Cantwell received $66,749 from the Bank.

Pursuant to the terms of its written charter, the Audit/Compliance/Risk Management Committee is responsible for reviewing and approving all related-party transactions involving the Company or the Bank. Consistent with this responsibility, the Committee has reviewed and approved the foregoing relationships as being consistent with the best interests of the Company and the Bank.