COMMUNITY BANCORP /VT

Preferred stock

In December 2007, the Company issued 25 shares of fixed-to-floating rate non-cumulative perpetual preferred stock, without par value and having a liquidation preference of $100,000 per share. There were 0 shares and 15 shares of preferred stock outstanding as of December 31, 2025 and 2024, respectively. Under the terms of the preferred stock, the Company paid non-cumulative cash dividends quarterly, when, as and if declared by the Board. Dividends were payable at a variable dividend rate equal to the Wall Street Journal Prime Rate in effect on the first business day of each quarterly dividend period. A variable rate of 8.50% was in effect for the three quarters dividend payments in 2024, followed by a decrease with a rate of 8.00% in effect for the last quarter of 2024. For the first quarter of 2025 the variable rate decreased to 7.50%, which remained in effect for the next two quarters of 2025. Prior to 2020, the Company had redeemed 10 shares of preferred stock at an aggregate redemption price of $1,000,000 plus accrued dividends. The Company redeemed the remaining 15 shares at par in November 2025 at an aggregate redemption price of $1,500,000 plus accrued dividends.