APPRAISAL OF

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File No. APPRAISAL OF LOCATED AT: FOR: BORROWER: AS OF: BY: CMA Appraisals, Inc. 50 StateStreetMontpelier, VT 05602 05006060 167 Berlin Street Montpelier, VT 05602 Chittenden Bank, Commercial Banking 2 Burlington Square Burlington, VT 05402 Varnavas Zagaris July 7, 2005 Charles M.

Andrews Certified Residential Appraiser CMA Appraisals, INC. 50 StateStreetMontpelier VT 05602 ph 802 223 5770/fax 802 223 5771 File No. File Number: In accordance with your request, I have personally inspected and appraised the real property at: The purpose of this appraisal is to estimate the market value of the subjectproperty, as improved.

The property rights appraised are the fee simple interest in the site and improvements. In my opinion, the estimated marketvalue of the property as ofis: The attached report contains the description,analysis and supportive data for the conclusions, final estimate of value, descriptive photographs, limiting conditions and appropriate certifications. CMA Appraisals, Inc.

50 StateStreetMontpelier, VT 05602 05006060 07/11/2005 Amy J. Myers, Senior VP Chittenden Bank, Commercial Banking 2 Burlington Square Burlington, VT 05402 05006060 Amy J. Myers, Senior VP 167 Berlin Street Montpelier, VT 05602 July 7, 2005 $215,000 Two Hundred Fifteen Thousand Dollars Cordially, Charles M.

Andrews Certified Residential Appraiser 079-0000184 CMA Appraisals, INC. 50 StateStreetMontpelier VT 05602 ph ... more. less.

802 223 5770/fax 802 223 5771 Property DescriptionFile No. UNIFORM RESIDENTIAL APPRAISAL REPORT Property AddressCityStateZip Code Legal DescriptionCounty Assessor's Parcel No.Tax YearR.E. Taxes $Special Assessments $ BorrowerCurrent OwnerOccupant:OwnerTenantVacant Property rights appraisedFee SimpleLeaseholdProject TypePUDCondominium (HUD/VA only)HOA$/Mo. Neighborhood or Project NameMap ReferenceCensus Tract Sale Price $Date of SaleDescription and $ amount of loan charges/concessions to be paid by seller Lender/ClientAddress AppraiserAddress SUBJECT LocationUrbanSuburbanRural PredominantSingle family housingPresent land use %Land use change Built upOver 75%25-75%Under 25% occupancy PRICEAGE $ (000)(yrs) One familyNot likelyLikely Growth rateRapidStableSlowOwnerLow2-4 familyIn process Property valuesIncreasingStableDecliningTenantHighMulti-familyTo: Demand/supplyShortageIn balanceOver supplyVacant (0-5%)PredominantCommercial Marketing timeUnder 3 mos.3-6 mos.Over 6 mos. Vacant (over 5%)() Note: Race and the racial composition of the neighborhood arenot appraisal factors. Neighborhood boundaries and characteristics: Factors that affect the marketability of the properties in the neighborhood (proximity to employment and amenities, employment stability, appeal to market, etc.): Market conditions in the subject neighborhood (including support for the above conclusions related to thetrend of property valu es, demand/supply, and marketing time - - such as data on competitive properties for sale in the neighborhood, description of the prevalence of sales and financing c oncessions, etc.): NEIGHBORHOOD Project Information for PUDs (If applicable) - - Is the developer/builder in control of theHome Owners' Association (HOA)?YESNO Approximate total number ofunits in the subject project.Approximate total number of units for sale in the subject project. Describe common elements and recreational facilities: PUD DimensionsTopography Site areaCorner LotYesNoSize Specific zoning classification and descriptionShape Zoning complianceLegalLegal nonconforming (Grandfathered use)IllegalNo zoningDrainage Highest & best use as improved:Present useOther use (explain)View Utilities PublicOther Off-site Improvements TypePublicPrivateLandscaping ElectricityStreetDriveway Surface GasCurb/gutterApparent easements WaterSidewalkFEMA Special Flood Hazard AreaYesNo Sanitary sewerStreet lightsFEMA ZoneMap Date Storm sewerAlleyFEMA Map No. Comments (apparent adverse easements, encroachments, special assessments, slide areas, illegal or legal nonconforming zoning, u se, etc.): SITE GENERAL DESCRIPTIONEXTERIOR DESCRIPTIONFOUNDATIONBASEMENTINSULATION No. of UnitsFoundationSlabArea Sq.Ft.Roof No. of StoriesExterior WallsCrawl Space% FinishedCeiling Type (Det./Att.)Roof SurfaceBasementCeilingWalls Design (Style)Gutters & Dwnspts.Sump PumpWallsFloor Existing/ProposedWindow TypeDampnessFloorNone Age (Yrs.)Storm/ScreensSettlementOutside Entry Unknown Effective Age (Yrs.)Manufactured HouseInfestation ROOMSFoyerLivingDiningKitchenDenFamily Rm.Rec. Rm.Bedrooms# BathsLaundryOtherArea Sq.Ft. Basement Level 1 Level 2 Finished area above grade contains:Rooms;Bedroom(s);Bath(s);Square Feet of Gross Living Area INTERIORMaterials/ConditionHEATINGKITCHEN EQUIP.ATTICAMENITIESCAR STORAGE: FloorsTypeRefrigeratorNoneFireplace(s) #None WallsFuelRange/OvenStairsPatioGarage# of cars Trim/FinishConditionDisposalDrop StairDeckAttached Bath FloorCOOLINGDishwasherScuttlePorchDetached Bath WainscotCentralFan/HoodFloorFenceBuilt-In DoorsOtherMicrowaveHeatedPoolCarport ConditionWasher/DryerFinishedDriveway DESCRIPTION OF IMPROVEMENTS Additional features (special energy efficient items, etc.): Condition of the improvements, depreciation (physical, functional, and external), repairs needed, quality of construction remod eling/additions, etc.: Adverse environmental conditions (such as, but not limited to, hazardous wastes, toxic substances, etc.) present in the improve ments, on the site, or in the immediate vicinity of the subject property: COMMENTS Freddie Mac Form 70 6-93Fannie Mae Form 1004 6-93 PAGE 1 OF 2 Produced using ACI software, 800.234.8727 www.aciweb.com CompleteAppraisal/Summary Appraisal Report 05006060 167 Berlin StreetMontpelierVT05602 Perclerks records; Volume 352, page 1-2 City VaultWashington 00156700020042,288.96N/A Varnavas Zagaris167Berlin St. Realty Trustx XN/A MontpelierSee attached9549.00 Market ValueN/AN/A Chittenden Bank, Commercial Banking2 Burlington Square, Burlington, VT 05402 Charles M. Andrews50 StateStreetMontpelier, VT 05602 X X X X X X X90 X 45 500+ 146 New 180+ 100 65% 5% 1% 15% vacant14% X Subject is located in a well established residential neighborhood along Berlin Street. Characteristic arefor an older mixof housing in a high density city setting. Subject is located within Montpelier City, oneof thelargest cities in central Vermont. Subject is located in an older well est ablished neighborhood. Access to interstate89 is within 1 mile. Central Vermont Hospital is within 4 miles. BlueCross, National Lifeo f Vermont and Stateof Vermont theareas largest employers arewithin 4 miles and 1 mile, respectively. Montpelier is thestatecapit al and an employmentcenter for thearea. Proximity ot employmentand services is considered good for thecentral Vermont area. Employmentstability is considered stable. Appeal to market is considered aboveaveragebased on thesupply of qualified buyers. The appraiser located 4 active/12 pending or under deposit MLS listings in Montpelier between $179,000-$398,000; with a media n list priceof $207,000; averagelist priceis $244,000. Tracking 59 Montpelier MLS sales in thelast 12 months ($59k-565k) themed ian sales priceis $180,000; theaveragepriceis $177,000 ; days on market is around 45 days; 97% listing to sales priceratio. Intere st rates arefavorableand arereported to bearound 5.8%(6.7 for Jumbos). Seller concessions for closing costs or minor repairs are common of up to 6%. Overall market conditions areimproving with appreciation rates of around 6% annually. This area is not applicable As per deed, if noted. 0.09 acresX MDR; 13,500 Sq. Ft. Min. X X X LP Gas X X X AsphaltX ConcreteX ConcreteX ElecX None sloping 0.09 acres Irregular Appears adequate Local none special Asphalt/shared See deed X C02/17/82 505518 0002A Typical utility easements noted. Thesiteis adjoining a largeapartmentcomplex.There is considerabletraffic along Berlin Street. Access is by a shared driveway. Sitesize perthecity (0.09 acres), would not allow an area for a garageto bebuilt if desired. 1 3 Detached Traditional Existing 1906 15 Stone Aluminum Shingles None noted. Dbl hung some/yes No N/A N/A Full None noted. Yes/typical some/typical None noted 720 none Joist Stone Stone/PC None All concealed. 0 11110.751720 131720 1540 841.751,980 Wd/Cpt/Avg Dw/Plast/paint/Avg Wd/Pnt/Avg Vin/Avg Fg/Avg Luon/Hollow/Avg bbhw Oil avg None None N/A X X X X X N/A N/A EnclosedX N/A N/A X ample Traditional three levelhome;updates includenew 0.75 bathroom(level #1); new roof; new windows; updated electrical to breaker service; enclosed porch See Attached Addendum See Attached Addendum Valuation SectionFile No. UNIFORM RESIDENTIAL APPRAISAL REPORT ........................... ................ ................... ................... ........... ESTIMATED SITE VALUE= $Comments on Cost Approach (such as, sourceof cost estimate, ESTIMATED REPRODUCTION COST-NEW OF IMPROVEMENTS:site value, square foot calculationand for HUD, VA and FmHA, the DwellingSq. Ft. @ $= $estimated remaining economic life of the property): Sq. Ft. @ $= = Garage/CarportSq. Ft. @ $= Total Estimated Cost New= $ LessPhysicalFunctionalExternalEst. Remaining Econ. Life: Depreciation= $ Depreciated Value of Improvements= $ "As-is" Value of Site Improvements= $ INDICATED VALUE BY COST APPROACH = $ COST APPROACH ITEMSUBJECT Address Proximity to Subject Sales Price$ Price/Gross Liv. Area$ Data and/or Verification Sources VALUE ADJUSTMENTSDESCRIPTION Sales or Financing Concessions Date of Sale/Time Location Leasehold/Fee Simple Site View Design and Appeal Quality of Construction Age Condition Above Grade TotalBdrmsBaths Room Count Gross Living AreaSq.Ft. Basement & Finished Rooms Below Grade Functional Utility Heating/Cooling Energy Efficient Items Garage/Carport Porch, Patio, Deck, Fireplace(s), etc. Fence, Pool, etc. Net Adj. (total) Adjusted Sales Price of Comparable COMPARABLE NO. 1 $ $ DESCRIPTION + (-) $ Adjustment TotalBdrmsBaths Sq.Ft. +-$ Gross: Net:$ COMPARABLE NO. 2 $ $ DESCRIPTION + (-) $ Adjustment TotalBdrmsBaths Sq.Ft. +-$ Gross: Net:$ COMPARABLE NO. 3 $ $ DESCRIPTION + (-) $ Adjustment TotalBdrmsBaths Sq.Ft. +-$ Gross: Net:$ Comments on Sales Comparison (including the subject property's compatibility to the neighborhood, etc. ): ITEMSUBJECT Date, Price and Data Source for prior sales within year of appraisal COMPARABLE NO. 1 COMPARABLE NO. 2 COMPARABLE NO. 3 ..................................................... Analysis of any current agreement of sale, option, or listing of the subject property and analysis of anyprior sales of subject and comparables within one year of the date of appraisal: INDICATED VALUE BY SALES COMPARISON APPROACH $ SALES COMPARISON ANALYSIS INDICATED VALUE BY INCOME APPROACH (If Applicable)Estimated Market Rent $/Mo. x Gross Rent Multiplier= $ This appraisal is made"as is" subject to the repairs, alterations, inspections or conditions listed belowsubject to completion per plans and specifications. Conditions of Appraisal: Final Reconciliation: The purpose of this appraisal is to estimate the market value of the realproperty that is the subject of this report, based on the above conditions and the certification, contingent and limiting conditions, and market value definitionthat are stated in the attached Freddie Mac Form 439/Fannie Mae Form 1004B (Revised). I (WE) ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE REAL PROPERTY THAT IS THE SUBJECTOF THIS REPORT, AS OF (WHICH IS THE DATE OF INSPECTION AND THE EFFECTIVE DATE OF THIS REPORT) TO BE $. APPRAISER:SUPERVISORY APPRAISER (ONLY IF REQUIRED): SignatureSignatureDidDid Not NameNameInspect Property Date Report SignedDate Report Signed State Certification #StateState Certification #State Or State License #StateOr State License #State RECONCILIATION Freddie Mac Form 70 6-93Fannie Mae Form 1004 6-93 PAGE 2 OF 2 Produced using ACI software, 800.234.8727 www.aciweb.com CompleteAppraisal/Summary Appraisal Report 05006060 40,000 1,9800 Bsmt. 7200 00 0 45 0 0 40,000 The sitevalueis derived through acceptableappraisal process, including an exercisein extraction and allocation. As this is a summary report all support remains in the appraisers workfile. Cost approach is considered but not processed as rendering accurateaccrued depreciation on dwellings of thesubjects' agecould bemarginal at best and ultimately misleading. Effectiveage of 15 years is estimated with a remaining economic lifeof at least 45 years based on a total lifeof 60 years. 167 Berlin Street Montpelier EFMV 215000 108.59 Inspection Land Records N/A N/A Montpelier Fee Simple 0.09 acres Local Traditional Average 1906 Years Average 841.75 20 1,980 Basement Unfinished Average Oil bbhw Typical for age None Enc Porch N/A N/A DecorAverage 367 ElmStreet Montpelier, VT 05602 0.8 mile 212,000 135.55 MLS/city records Driveby Cash None 05/23/05 0.75%1,590 Montpelier Fee Simple 0.19 acres Local Traditional Average 1930 Average 731.004,000 1,5648,300 Basement Unfinished Average fha Typical for age 1 car garage-5,000 Enc Porch FP-2,000 None Average X6,890 9.9% 3.3%218,890 271 Main Street Montpelier, VT 05602 0.9 mile 224,900 140.56 MLS/city records Driveby Conv None 05/12/05 0.75%1,687 Montpelier Fee Simple 1.06 acres-10,000 Local Traditional Average 1825 Average 731.75 1,6007,600 Basement Unfinished Average bbhw/monitor Typical for age None Cov Porch None None Average X713 8.6% -0.3%224,187 41 Northfield Street Montpelier .3 miles 258,900 104.61 MLS/city records Driveby Conv None 06/24/2005 Montpelier Fee Simple 0.85 acres-0- Local Traditional Good 68+/--14,000 Superior-14,000 733.00-5,000 2,475-9,900 Basement None Average Oil bbhw Typical for age None Por/deck/Pat-2,000 N/A N/A Average X44,900 17.3% -17.3%214,000 The appraiser has made a thorough search of comparablesales in theMLS system, in theappraisers in officefiles and through a search of property transfer taxreturns at theto wn offices. A careful selection of comparables has been made. All adjustments in this section arebased on contributory valueand market reaction and not cost. Amenities such as GLA, lot size,baths, fireplaces, porches, garages etc arebased on a matched data pair sets analysis. If a comparablesalehas a concession thesales priceis reflected to demonstratethe"cash equivalency" amount. Comps ar e similar in GLA and roomutility and no GLA adjustments arewarranted. Market/timeadjusted @6% annually (0.5%/monthly) None in 3 yearsNone in 12 months Land Records None in 12 months Land Records None in 3 years Land Records This appraisal assignmentis prepared for a refinancetransaction. Thereis no known listing, option,contract or agreementthat wo uld effect value. 215,000 1,000N/ALimited x AS IS : no conditions to valuenoted. Adequatemarket data is availableto support thefinal market valueestimate. The appraiser does not warrant thefunctionality or condition of any and all of themajor elements of thehome. In this market thecost and income approaches to valuearenot typically relied upon as much as thesales comparison approach. Additionally, theappraiser's peers would not process theseapproaches on this typeof property. Thesales comparison approach is considered thebest approach to value. Themarket valueestimateis based on a typical marketing time. 6/93 07/07/2005 215,000 Charles M. Andrews 07/12/2005 079-0000184VT CMA Appraisals ADDENDUM Borrower:Varnavas ZagarisFile No.:05006060 Property Address:167 Berlin StreetCase No.: City:MontpelierState:VTZip:05602 Lender:Chittenden Bank, Commercial Banking Addendum Page 1 of 2 Legal Description You are the client in this report. The client and intended users of this report are assumed to be knowledgeable in reading and understanding report terminology and appraisal techniques and summary reports in general. Summary reports allow appraisers to summarize results and are quite abbreviated in format and content. The abbreviated nature of the summary appraisal report restricts the use of this report to the client only. Homeowners generally speaking do not understand summary appraisal reports or the commonly used techniques and terminology contained within the reports. Any other use other than the stated use by the client of this report voids the report in its entirety. The purpose of the appraisal assignment is to estimate the market value of the fee simple interests of the subject real property as defined on the attached Certification and Statement of Limiting Conditions. Certification and Statement of Limiting Conditions is considered inseparable from the report. The function and intended use is to assist the client in a risk assessment for mortgage lending purposes. This appraisal assignment has been prepared in accordance with the Uniform Standards of Professional Appraisal Practices. The client has requested a complete appraisal and a summary appraisal report. There has been no departure from any approach to value. The subject's market value estimate as defined by the attached market value definition is based on a reasonable exposure on the open and competitive market. The scope of the appraisers work has included a study and review of current economic and real estate trends in the subject market area. In this assignment an interior inspection of the subject improvement and an exterior inspection of each comparables sale. Primary and secondary data sources may include other appraisers, MLS, town listers information or a conversation with buyers, sellers or participating brokers. A review of active and pending competing properties was conducted in the MLS system. Charles M. Andrews personally prepared all conclusions and opinions about the real estate that are set forth in this appraisal report. No personal property is given any value in this appraisal. Neighborhood Boundaries The reader should be aware that because of the generally rural nature of this market and surrounding market areas , varying styles and varying lot sizes of properties that sell, a broad range of values exists within Vermont communities. Often neighborhoods will not have a predominant value range or age of homes. It is not uncommon in this area to see a "mixed bag" neighborhood consisting of a mix of housing , like 15 years old ranches on one acre, next to 200+ year old farmhouses on 20+ acres. Value differences within neighborhoods can be $20,000 to $100,000 or more. When reporting on predominant values an appraiser may find that sales in a certain price range do not exist within a neighborhood. Because of these factors the reader should be aware that singe family housing price ranges may not be a good indicator of neighborhood value trends because of its broad ranges. It is not an indication as to whether a subject is an "over" or "under" improvement for the area. Neighborhood Market Conditions Exposure time is considered the theoretical time between actually listing a property and accepting an offer. Inherent within the definition of market value is a presumed reasonable exposure. Exposure time is considered to be similar to days on market, which is based on historical data, and is around 30-90 days for appropriately priced homes. The average selling price (MLS)in Montpelier has increased 15% between 7/03-7/04 and 7/04-7/05. Since 7/2004 days on market have decreased from 84 days to 45 days. Highest and Best Use Highest and best use of property as improved. The use that should be made of a property as it exists. An existing improvement should be renovated or retained as is so long as it continues to contribute to the total market value of the property, or until the return from a new improvement would more than offset the cost of demolishing the existing building and constructing a new one. I have the highest confidence that the highest and best use of the subject site are the current existing improvements. Subject is viewed as a legal non conforming use as use pre exists current zoning. Because the use pre-exists current zoning it is permitted under a grand fathered clause. In the event of a fire or natural disaster the property can be rebuilt on the existing footprint within a time frame specified by the municipality. Condition of Improvements Subject is in average condition with no differed maintenance noted or observed. Any physical depreciation is viewed as normal wear and tear and would be considered curable. No functional or external obsolescence noted. The appraiser is not a building inspector is not qualified to warrant if the home is free of patent or latent defects. If the reader requires more information, a qualified inspector should be hired. The structures in this report are viewed to be in a safe, habitable, and sanitary condition unless otherwise highlighted in this report Adverse Environmental Conditions The appraiser is not an expert and is not qualified in identifying environmental conditions and cannot warrant the absence or presence of any environmental contaminants which may include but are not limited to lead paint, asbestos, radon, mold, carbon monoxide, poor water potability, and poor air quality. For more information on adverse environmental conditions please copy and paste the following web address into your browser: http://www.anr.state.vt.us/dec/wastediv/sms/hazsites.htm. ADDENDUM Borrower:Varnavas ZagarisFile No.:05006060 Property Address:167 Berlin StreetCase No.: City:MontpelierState:VTZip:05602 Lender:Chittenden Bank, Commercial Banking Addendum Page 2 of 2 Comments on Sales Comparison The reader of this report should be aware that because of Vermont s' environmental laws, a 10 acre parcel is often called a "building lot", and carries the same value as a 1 acre lot. This is because 10 acre type parcels typically consist of a "build ing envelope",and the balance of the land is viewed as residual land and often has lesser or little value and utility than the "building envelope". The typical buyer is concerned more with the "building envelope" which has the most utility. The residual land does not contribute value to the site in the same proportion as the "building envelope". When considered by purchasers larger lots of differing sizes often do not have significant differences in value. The same generally holds true fo r lots under 10 acres, where a 1 acre lot sells for $20,000, a five acre lot does not generally sell for $100,000. Comp #3 site is mostly steeply sloping and is not useable, over the subject and comp site are equal. Comps are all located on busy access roads and have similar traffic patterns past the site(s). The reader should also be aware of local market cycles. This is a smaller Vermont community with a limited number of annual property transfers. Often in this market area similar properties within one mile or within six months of the effective date of the appraisal do not sell. This is primarily caused by the seasonal selling season. In Vermont more properties sell in the spring and summer months than do in fall and winter. A slower selling season with fewer sales in fall and winter is typica l for this area. The limited number of available sales data is often the reason an appraiser will use comparables over one mile or over sixmonths old. The reader should understand that substantial differences in gross living area do have an effect on value. Minor deviations in GLA are considered insignificant to the typical buyer. Most purchasers will consider room utility and how the house "feels" when considering buying a house and not strictly gross living area. Additionally when confirming gross living area amounts on subject and comparables often the appraiser will discover two different numbers, based on varying measurement techniques. Because of this gross living area adjustments are rounded, and not merely calculated as a mechanical dollar per square foot cost. GLA is adjusted @(a market derived) $25/sq ft ; GLA differences of 300 sq ft or less are not adjusted for as this amount is considered insignificant to the typical buyer. Comp#3 is superior for decor, interior features and condition, the effective age adjustment is based on matched data pair sets analysis with comps #1,#2 which are more similar in condition to the subject than comp #3. The appraiser is not responsible for errors/omissions that may exist within the public records and assumes the information collected from these sources to be correct. File No. USPAP COMPLIANCE ADDENDUM BorrowerOrder # Property Address CityCountyStateZip Code Lender/ClientClient Reference # Only those items checked X belowapply to this report. The purpose of the appraisal is to provide an opinion of market value of the subject property as defined in this report, on beh alf of the appraisal company facilitating the assignment for the referenced client as the intended user of the report. The only function of the appraisal is to assist the client mentioned in this report in evaluating the subject property for lending purposes. The use of this appraisal by anyone o ther than the stated intended user, or for any other use than the stated intended use, is prohibited. The purpose of the appraisal is to provide an opinion of market value of the subject property, as defined in this report, on be half of the appraisal company facilitating the assignment for the referenced client as the intended user of this report. The only function of the appraisal is to assist the client mentioned in this report in evaluating the subject property Real Estate Owned (REO) purposes. The use of this appraisal by anyone other than the stated intended user, or for any other use than the stated intended use, is prohibited. The purpose of this appraisal is to, on behalf of the appraisal company facilitating the assignment for the referenced client as the intended user of this report. The only function of the appraisal is to assist the client mentione d in this report in evaluating the subject property for. The use of this appraisal by anyone other than the stated intended user, or for any other use than the stated intended use is prohibited. PURPOSE, FUNCTION AND INTENDED USE OF THE APPRAISAL This is aAppraisal written in aReport format and the USPAP Departure Rule has not been invoked. This is a Limited Appraisal written in aReport format and the USPAP Departure Rule has been invoked as disclosed in the body or addenda of the report. The client has agreed that a Limited Appraisal is sufficient for its purposes. TYPE OF APPRAISAL AND APPRAISAL REPORT The appraisal is based on the information gathered by the appraiser from public records, other identified sources, inspection o f the subject property and neighborhood, and selection of comparable sales, listings, and/or rentals within the subject market area. The ori ginal source of the comparables is shown in the Data Source section of the market grid along with the source of confirmation, if available. The or iginal source is presented first. The sources and data are considered reliable. When conflicting information was provided, the source deemed m ost reliable has been used. Data believed to be unreliable was not included in the report nor used as a basis for the value conclusion. The ex tent of analysis applied to this assignment may be further imparted within the report, the Appraiser's Certification below and/or any other Stat ement of Limiting Conditions and Appraiser's Certification such as may be utilized within the Freddie Mac form 439 or Fannie Mae form 1004b (date d 6/93), when applicable. SCOPE (EXTENT) OF REPORT A reasonable marketing time for the subject property isday(s) utilizing market conditions pertinent to the appraisal assignment . A reasonable exposure time for the subject property isday(s). MARKETING TIME AND EXPOSURE TIME FOR THE SUBJECT PROPERTY I certify that, to the best of my knowledge and belief: -The statements of fact contained in this report are true and correct. -The reported analyses, opinions, and conclustions are limited only by the reported assumptions and limiting conditions, and ar e my personal, impartial, and unbiased professional analyses, opinions, and conclusions. -I have no present or prospective interest in the property that is the subject of this report, and no personal interest with re spect to the parties involved, unless otherwise stated within the report. -I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment . -My engagement in this assignment was not contingent upon developing or reporting predetermined results. -My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occur rence of a subsequent event directly related to the intended use of this appraisal. -My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Stand ards of Professional Appraisal Practice. -I haveor have notmade a personal inspection of the property that is the subject of this report. (if more than one person sign s this report, this certification must clearly specify which individuals did and which individuals did not make a personal inspection of the a ppraisal property.) -No one provided significant professional assistance to the person signing this report. (If there are exceptions, the name of each individual providing significant professional assistance must be stated.) NOTE: In the case of any conflict with a client provided certification (i.e., Fannie Mae or Freddie Mac), this revised certifi cation shall take precedence. - Supervisory Appraiser's Certification: If a supervisory appraiser signed the appraisal report, he or she certifiesand agrees that: I directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and co nclusions of the appraiser, agree to be bound by the appraiser's certifications numbered 2-7 and 9 on the second page of Freddie Mac Form 43 9 6-93/Fannie Mae Form 1004B 6-93, or the third page of Form 2055, and am taking full responsibility for the appraisal report. APPRAISER'S CERTIFICATION APPRAISER:SUPERVISORY APPRAISER (onlyif required): Signature:Signature: Name:Name: Date the Report was Signed:Date the Report was Signed: State Certification #:State Certification #: or State License #:or State License #: State:State: Expiration Date of Certification or License:Expiration Date of Certification or License: Did inspect subject propertyInspected Comparables Interior & ExteriorInterior & Exterior Exterior onlyExterior only APPRAISER'S AND SUPERVISORY APPRAISER'S SIGNATURE USPAP Compliance Addendum - 4/99 1 of 1 Produced using ACI software, 800.234.8727 www.aciweb.com CompleteAppraisal/Summary Appraisal Report 05006060 Varnavas Zagaris 167 Berlin Street MontpelierWashingtonVT05602 Chittenden Bank, Commercial Banking X X CompleteSummary X X 45 X 30-90 X Charles M. Andrews 07/12/2005 079-0000184 VT 05/31/2007 USPAP COMPLIANCE ADDENDUM File No. APPRAISER'S CERTIFICATION: The following Certification statements are in addition to and may supercede the signed Appraiser's Certification attached to th is appraisal report. This Appraiser's Certification is compliant with the current edition of the Uniform Standards of Professional Appraisal Practic e. I certify that, to the best of my knowledge and belief: The statements of fact contained in this report are true and correct. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are m y personal, impartial, and unbiased professional analyses, opinions, and conclusions. I have no present or prospective interest in the property that is the subject of this report and no personal interest with resp ect to the parties involved. I have no bias with respect to the property that is the subject of this report or to the parties invoved with this assignment. My engagement in this assignment was not contingent upon developing or reporting predetermined results. My compensation for completing this assignement is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occur rence of a subsequent event directly related to the intended use of this appraisal. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standa rds of Professional Appraisal Practice. Ihavehave not made a personal inspection of the property that is the subject of this report. (If more than one person signs thi s certification, the certification must clearly specify which individuals did and which individuals did not make a personal inspection of the ap praised property.) No one provided significant real property appraisal assistance to the person signing this certification. (If there are exceptio ns, the name of each individual providing significant real property appraisal assistance must be stated.) PURPOSE, INTENDED USE, AND INTENDED USER OF THE APPRAISAL: The purpose of the appraisal is to estimate the market value of the subject property, as defined in this report, as of the effe ctive date of this report. The intended use of the appraisal is to assist the client and any other intended users in the underwriting, approval, and fundi ng of the mortgage loan. The intended users of this report are the stated client and any other institutions involved in the underwriting , approval, and funding of the mortgage loan. No one else, including the purchaser and seller, should rely on the estimate of value or any other conclusions contained in this appraisal report. ANALYSIS AND REPORT FORM: The appraisal is based on the information gathered by the appraiser from public records, other identified sources, inspection o f the subject property and neighborhood, and selection of comparable sales, listings, and/or rentals within the subject market area. The original source of the comparable data described in the Data Source section of the market grid along with the source of con firmation provided, where available, the original source is presented first. The sources and data are considered reliable. When conflicting informa tion was provided, source deemed most reliable has been used. Data believed to be unreliable was not included in the report or used as a basis for the value conclusion. The extent of the analysis to this assignment is stated in the Appraiser's Certification included above and attache d to this report. DEFINITION OF INSPECTION: The term "Inspection", as used in this report, is not the same level of inspection that is required for a "Professional Home In spection". The appraiser does not fully inspect the electrical system, plumbing systems, mechanical systems, foundation system, floor structure, or subf loor. The appraiser is not an expert in construction materials and the purpose of the appraisal is to make an economic evaluation of the subject prope rty. If the client needs a more detailed inspection of the property, a home inspection, by a Professional Home Inspector, is suggested. DIGITAL SIGNATURES: The signature(s) affixed to this report, and certification, were applied by the original appraiser(s) or supervisory appraiser and represent their acknowledgements of the facts, opinions and conclusions found in the report. Each appraiser(s) applied his or her signature ele ctronically using a password encrypted method. Hence these signatures have more safeguards and carry the same validity as the individual's hand app lied signature. If the report has a hand-applied signature, this comment does not apply. OPINION OF MARKET VALUE VS ESTIMATE OF MARKET VALUE: The current Uniform Standards of Professional Appraisal Practice defines the market value conclusion as an opinion of market va lue and not an estimate of market value. THREE YEAR SALES HISTORY FOR THE SUBJECT PROPERTY: The appraiser has complied with Standards Rule 1-5b and 2-2b (ix) requiring the appraiser to analyze and report all sales of th e subject property that occurred within the three (3) years prior to the effective date of the appraisal. If this information was available to the appraiser(s), it is reported in the subject column of Sales Comparison Analysis section of the appraisal report. EXPOSURE PERIOD: By studying the sales of similar comparable residential properties with value ranges as identified in the Neighborhood section of this report and discussions with individuals knowledgeable of current neighborhood trends in the subject area, the appraiser feels that the exp osure time for the subject property is equal to the indicated Marketing Time identified in the Neighborhood section of this appraisal report. APPRAISER: Signature Name Date Report Signed State Certification #State Or State License #State SUPERVISORY APPRAISER: SignatureDidDid Not NameInspect Property Date Report Signed State Certification #State Or State License #State Produced using ACI software, 800.234.8727 www.aciweb.com 05006060 X Charles M. Andrews 07/12/2005 079-0000184VT CMA Appraisals File No. DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the pric e is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing o f title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or w ell advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; ( 4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associa ted with the sale. *Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necess ary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identi fiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comp arable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the Appraiser's judgment. STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it. The appraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the title. The prop erty is appraised on the basis of it being under responsible ownership. 2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sket ch is included only to assist the reader of the report in visualizing the property and understanding the appraiser's determination of its size. 3. The appraiser has examined the available flood mapsthat are provided by the Federal Emergency Management Agency (or other d ata sources) and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, u nless specific arrangements to do so have been made beforehand. 5. Theappraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements at t heir contributory value. These separate valuations of the land and improvements must not be used in conjunction with any other appr aisal and are invalid if they are so used. 6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc. ) observed during the inspection of the subject property or that he or she became aware of durin g the normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property or adverse environmentalconditions (including the presence of hazardous wastes, toxic substances, etc. ) that would make the property more or lessvaluable, and has assumed that there are no such conditions and mak es no guarantees or warranties, express or implied, regarding the condition of the property. The appraiser will not be responsible f or any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. B ecause the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an environment al assessment of the property. 7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources th at he or she considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accura cy of such items that were furnished by other parties. 8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standardsof Prof essional Appraisal Practice. 9. The appraiser has based his or her appraisalreport and valuation conclusion for an appraisal that is subject to satisfactor y completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. 10. The appraiser must provide his or her prior written consent before the lender/client specified in the appraisal report can distribute the appraisal report (including conclusions about the property value, the appraiser's identity and professional designations, and r eferences to any professional appraisalorganizations or the firm with which the appraiser is associated ) to anyone other than the borrower; the mortgagee or its successors and assigns; the mortgage insurer; consultants; professional appraisal organizations; any state or federally approved financial institution; or any department, agency, or instrumentality of the United States or any state or the District of Columbia; except that the lender/client may distribute the property description section of the report only to data collection or reportin g service(s) without having to obtain the appraiser's prior written consent. The appraiser's written consent and approval must also be obta ined before the appraisal can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media. Freddie Mac Form 439 6-93Page 1 of 2Fannie Mae Form 1004B 6-93 05006060 File No. APPRAISERS CERTIFICATION: The Appraiser certifies and agrees that: 1. I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to thesubject property for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significant variation. If a significant item in a comparable property is superior to , or mo re favorable than, the subject property, I have made a negative adjustment to reduce the adjusted sales price of the comparable and, if a signific ant item in a comparable property is inferior to, or less favorable than the subject property, I have made a positive adjustment to increase the adjusted sales price of the comparable. 2. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report.I have not knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are true and correct. 3. I stated in the appraisal report only my own personal, unbiased, and professional analysis, opinions, and conclusions, whic h are subject only to the contingent and limiting conditions specified in this form. 4. I have no present or prospective interest in the property that is the subject to this report, and I have no present or pros pective personal interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analy sis and/or the estimate of market value in the appraisal report on the race, color, religion, sex, handicap, familial status, or national ori gin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property. 5. I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this appraisal is contingent on the appraised value of the property. 6. I was not required to report a predetermined value or direction in value that favors the cause of the client or any related party, the amount of the value estimate, the attainment of a specific result, or the occurrence of a subsequent event in order to rece ive my compensation and/or employment for performing the appraisal. I did not base the appraisal report on a requested minimum valuat ion, a specific valuation, or the need to approve a specific mortgage loan. 7. I performed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were adopted an d promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place as of the effective date of thi s appraisal, with the exception of the departure provision of those Standards, which does not apply. I acknowledge that an estimate of a re asonable time for exposure in the open market is a condition in the definition of market value and the estimate I developed is consisten t with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in the reconciliation section. 8. I have personally inspected the interior and exterior areas of the subject property and the exterior of all properties list ed as comparables in the appraisal report. I further certify that I have noted any apparent or known adverse conditions in the subject improveme nts, on the subject site, or on any site within the immediate vicinity of the subject property of which I am aware and have made adjustment s for these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property. 9. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. If I relied on significant professional assistance from any individual or individuals in the performance of the appraisal or the preparation o f the appraisal report, I have named such individual(s) and disclosed the specific tasks performed by them in the reconciliation section of thi s appraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a chan ge to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it. SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisoryappraiser signed the appraisal report, he or she certifies and agrees that: I directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agre e with the statements and conclusions of the appraiser, agree to be bound by the appraiser's certifications numbered 4 through 7 above, an d am taking full responsibility for the appraisal and the appraisal report. ADDRESS OF PROPERTY APPRAISED: APPRAISER:SUPERVISORY APPRAISER (only if required) Signature:Signature: Name:Name: Date Signed:Date Signed: State Certification #:State Certification #: or State License #:or State License #: State:State: Expiration Date of Certification or License:Expiration Date of Certification or License: DidDid Not Inspect Property Freddie Mac Form 439 6-93Page 2 of 2Fannie Mae Form 1004B 6-93 05006060 167 Berlin Street, Montpelier, VT 05602 Charles M. Andrews 07/12/2005 079-0000184 VT 05/31/2007 Certified Residential Appraiser SUBJECT PROPERTY PHOTO ADDENDUM Borrower:File No.: Property Address:Case No.: City:State:Zip: Lender: FRONT VIEW OF SUBJECT PROPERTY Appraised Date: Appraised Value: $ REAR VIEW OF SUBJECT PROPERTY STREET SCENE Varnavas Zagaris05006060 167 Berlin Street MontpelierVT05602 Chittenden Bank, Commercial Banking July 7, 2005 215,000 COMPARABLE PROPERTY PHOTO ADDENDUM Borrower:File No.: Property Address:Case No.: City:State:Zip: Lender: COMPARABLE SALE #1 Sale Date: Sale Price: $ COMPARABLE SALE #2 Sale Date: Sale Price: $ COMPARABLE SALE #3 Sale Date: Sale Price: $ Varnavas Zagaris05006060 167 Berlin Street MontpelierVT05602 Chittenden Bank, Commercial Banking 367 ElmStreet Montpelier, VT 05602 05/23/05 0.75% 212,000 271 Main Street Montpelier, VT 05602 05/12/05 0.75% 224,900 41 Northfield Street Montpelier 06/24/2005 258,900 FLOORPLAN Borrower:File No.: Property Address:Case No.: City:State:Zip: Lender: Varnavas Zagaris05006060 167 Berlin Street MontpelierVT05602 Chittenden Bank, Commercial Banking Sketch by Apex IV Windows" 24.0' 30.0' 24.0' 30.0' 30.0' 18.0' Bedroom Bedroom Bedroom Bedroom Den Stairs Stairs Stairs Foyer Bath Bath/lau KitchenDining Living Room Dimensions per public records For Illustrative purposes only Not to scale AREA CALCULATIONS SUMMARY CodeDescriptionSizeTotals GLA1First Floor720.00 GLA2 720.00 Second Floor720.00 GLA3 720.00 Third Floor540.00540.00 TOTAL LIVABLE(rounded)1980 BreakdownSubtotals LIVING AREA BREAKDOWN First Floor 24.0 x 30.0 720.00 Second Floor 24.0 x 30.0 720.00 Third Floor 18.0 x 30.0 540.00 3 Areas Total (rounded)1980 CMA Appraisals, INC. 50 StateStreetMontpelier VT 05602 ph 802 223 5770/fax 802 223 5771 LOCATION MAP Borrower:File No.: Property Address:Case No.: City:State:Zip: Lender: Varnavas Zagaris05006060 167 Berlin Street MontpelierVT05602 Chittenden Bank, Commercial Banking CMA Appraisals, INC. 50 StateStreetMontpelier VT 05602 ph 802 223 5770/fax 802 223 5771 Borrower:File No.: Property Address:Case No.: City:State:Zip: Lender: Varnavas Zagaris05006060 167 Berlin Street MontpelierVT05602 Chittenden Bank, Commercial Banking CMA Appraisals, INC. 50 StateStreetMontpelier VT 05602 ph 802 223 5770/fax 802 223 5771 Borrower:File No.: Property Address:Case No.: City:State:Zip: Lender: Varnavas Zagaris05006060 167 Berlin Street MontpelierVT05602 Chittenden Bank, Commercial Banking CMA Appraisals, INC. 50 StateStreetMontpelier VT 05602 ph 802 223 5770/fax 802 223 5771

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