<HTML>
<HEAD>
<TITLE>MOUNTAIN NATIONAL BANCSHARES, INC. - FORM S-8</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center" style="font-size: 10pt; margin-top: 18pt">As Filed With the Securities and Exchange Commission<BR>
on September&nbsp;16, 2005
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Registration No.&nbsp;333-________</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FORM S-8<BR>
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>MOUNTAIN NATIONAL BANCSHARES, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Tennessee</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>75-3036312</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction of
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">incorporation or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Identification No.)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>300 East Main Street</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>37862</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>Sevierville, Tennessee</B><BR>
(Address of Principal Executive Offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MOUNTAIN NATIONAL BANCSHARES, INC. STOCK OPTION PLAN</B><BR>
(Full title of the plan)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Dwight Grizzell<BR>
300 East Main Street<BR>
Sevierville, Tennessee 37862</B><BR>
(Name and address of agent for service)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Copy to:
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Bob F. Thompson, Esq.<BR>
Bass, Berry &#038; Sims PLC<BR>
315 Deaderick Street, Suite&nbsp;2700<BR>
Nashville, Tennessee 37238-0002<BR>
(615)&nbsp;742-6200</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>(865)&nbsp;428-7990</B><BR>
(Telephone number, including area code, of agent for service)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALCULATION OF REGISTRATION FEE</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="37%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="23" style="border-bottom: 3px solid #000000">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Proposed</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD nowrap align="left">Title of securities</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Amount to be</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Proposed maximum</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">maximum aggregate</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Amount of</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt" valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD nowrap align="left">to be registered</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">registered<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">offering price per share</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">offering price <SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">registration fee</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>

<TD style="border-top: 2px solid #000000"><DIV style="margin-left:30px; text-indent:-15px">Common Stock,
$1.00 par value</DIV></TD>

    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>

    <TD style="border-top: 2px solid #000000">&nbsp;</TD>

    <TD colspan="3" align="center" style="border-top: 2px solid #000000">275,625 shares</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD colspan="2" align="center" style="border-top: 2px solid #000000">$29.63</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD colspan="2" align="center" style="border-top: 2px solid #000000">$8,166,269</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD colspan="2" align="center" style="border-top: 2px solid #000000">$962</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>

<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="23" style="border-top: 3px solid #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP> Pursuant to Rule 416(a) under the Securities Act of 1933, as amended, includes an
indeterminate number of additional shares which may be offered and issued to prevent dilution
resulting from stock splits, stock dividends or similar transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><SUP style="font-size: 85%; vertical-align: text-top">(2) </SUP>The offering price is estimated solely for the purpose of determining the
amount of the registration fee in accordance with Rules 457(c) and 457(h)(1) under the Securities
Act of 1933 and is based on the average of the bid and ask prices for the Common Stock on September
12, 2005.
</DIV>


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

<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">PART I</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">PART II</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">EXHIBIT INDEX</A></TD></TR>
<TR><TD colspan="9"><A HREF="g97348exv5w1.txt">EX-5.1 OPINION OF BASS, BERRY & SIMS PLC</A></TD></TR>
<TR><TD colspan="9"><A HREF="g97348exv23w1.txt">EX-23.1 CONSENT OF HAZLETT,LEWIS & BIETER, PLLC.</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>




<!-- link1 "PART I" -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PART I</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Information Required in the Section&nbsp;10(a) Prospectus</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mountain National Bancshares, Inc. (the &#147;Registrant&#148;) will send or give documents containing
the information specified by Part&nbsp;I of this Form S-8 Registration Statement (the &#147;Registration
Statement&#148;) to participants in the plan to which this Registration Statement relates, as specified
in Rule&nbsp;428(b)(1) promulgated by the Securities and Exchange Commission (the &#147;SEC&#148;) under the
Securities Act of 1933, as amended (the &#147;Securities Act&#148;). The Registrant is not filing such
documents with the SEC, but these documents constitute (along with the documents incorporated by
reference into the Registration Statement pursuant to Item&nbsp;3 of Part&nbsp;II hereof) a prospectus that
meets the requirements of Section 10(a) of the Securities Act. Unless this Registration Statement
indicates otherwise or the context otherwise requires, the terms &#147;we&#148;, &#147;our&#148;, &#147;us&#148; or Mountain
National, refer to Mountain National Bancshares, Inc. and its subsidiaries including Mountain
National Bank.
</DIV>

<P align="center" style="font-size: 10pt">I-1
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "PART II" -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PART II</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Information Required in the Registration Statement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;3. Incorporation of Documents by Reference.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following documents filed by us with the SEC, pursuant to the Securities Exchange Act of
1934, as amended (the &#147;Exchange Act&#148;), are hereby incorporated by reference and shall be deemed to
be a part hereof from the date of filing of such document:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our Annual Report on Form 10-KSB for the fiscal year ended December&nbsp;31, 2004, filed by us on
March&nbsp;31, 2005;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our Quarterly Report on Form 10-QSB for the quarterly period ended March&nbsp;31, 2005, filed by
us on May&nbsp;16, 2005, as amended by Form 10-QSB/A filed by us on May&nbsp;23, 2005 and Amendment No.
2 to Form 10-QSB filed by us on August&nbsp;24, 2005;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our Quarterly Report on Form 10-QSB for the quarterly period ended June&nbsp;30, 2005, filed by us
on August&nbsp;15, 2005, as amended by Amendment No.&nbsp;1 to Form 10-QSB filed by us on August&nbsp;24,
2005; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our Current Reports on Form 8-K filed January&nbsp;11, 2005, June&nbsp;6, 2005 and September&nbsp;1, 2005.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All documents filed by us pursuant to Section&nbsp;13(a), 13(c), 14 and 15(d) of the Exchange Act
after the date hereof and prior to the filing of a post-effective amendment to this Registration
Statement which indicates that all securities offered hereby have been sold or which deregisters
all securities then remaining unsold, shall be deemed to be incorporated by reference herein and to
be a part hereof from the date of filing of such documents. Any statements contained in a document
incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or
replaced for purposes hereof to the extent that a statement contained herein (or in any other
subsequently filed document which also is incorporated or deemed to be incorporated by reference
herein) modifies or replaces such statement. Any statement so modified or replaced shall not be
deemed, except as so modified or replaced, to constitute a part hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, information furnished under Items 2.02 and 7.01 of any Current
Report on Form 8-K, including the related exhibits, is not incorporated by reference in this
prospectus or the accompanying registration statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;4. Description of Securities.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have the authority to issue 2,400,000 shares of common stock. As of June&nbsp;30, 2005,
1,362,384 shares of our common stock were outstanding. Our common stock is the only class of
capital stock it we are authorized to issue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following summary descriptions of selected provisions of our charter, bylaws, common stock
and Tennessee Business Corporation Act are not complete. The summaries are subject to, and are
qualified entirely by, the provisions of our charter and bylaws, all of which are included or
incorporated by reference as exhibits to the registration statement of which this prospectus is a
part and the Tennessee Business Corporation Act. You are encouraged to read our charter and bylaws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The holders of our common stock are entitled to one vote per share on all matters to be voted
on by shareholders. Notwithstanding the foregoing, at any shareholder meeting where directors are
to be elected, each shareholder entitled to vote shall have the right to multiply the number of
votes he or she is entitled to cast by the number of vacancies being filled and cast the product
for a single candidate or distribute the product among two or more candidates. This feature is
referred to as cumulative voting. Holders of common stock have no preemptive
</DIV>

<P align="center" style="font-size: 10pt">II-1
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">rights, and there are no conversion rights or redemption or sinking fund provisions with respect to
shares of our common stock. All shares of our common stock being offered under this prospectus will
be fully paid and not liable for further calls or assessment by us.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Preemptive Rights</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No holder of our shares has any preemptive rights to purchase, subscribe for or otherwise
acquire any additional shares of our common stock or any securities exercisable for or convertible
into our shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Tennessee&#146;s Anti-takeover Provisions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provisions in Tennessee law could make it harder for someone to acquire us through a tender
offer, proxy contest or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Tennessee Business Combination Act. </I>The Tennessee Business Combination Act provides that a
party owning shares equal to 10% or more of the voting power of any class or series of the then
outstanding voting stock of a &#147;resident domestic corporation&#148; is an &#147;interested shareholder.&#148; An
interested shareholder also includes a party that is an affiliate or associate, as defined in the
Tennessee Business Combination Act, of a &#147;resident domestic corporation.&#148; We are currently a
resident domestic corporation within the meaning of this act. An interested shareholder cannot
engage in a business combination with the resident domestic corporation unless the combination:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>takes place at least five years after the interested shareholder first acquired
10% or more of the voting power of any class or series of the then outstanding
voting stock of the resident domestic corporation; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>either is approved by at least two-thirds of the non-interested voting shares of
the resident domestic corporation or satisfies fairness conditions specified in the
Tennessee Business Combination Act.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These provisions apply unless one of the following exemptions is available:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a business combination with an entity can proceed without delay when approved by the target
corporation&#146;s board of directors before that entity becomes an interested shareholder;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a business combination is exempt, if in its original charter or original bylaws, the
resident domestic corporation elects not to be governed by the Tennessee Business Combination Act;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>unless the charter of the resident domestic corporation provides otherwise, the Tennessee
Business Combination Act does not apply to a business combination of a resident domestic
corporation with, or proposed by or on behalf of, an interested shareholder if the resident
domestic corporation did not have, on such interested shareholder&#146;s share acquisition date, a class
of voting stock registered or traded on a national securities exchange or registered with the
securities and exchange commission pursuant to Section 12(g) of the Exchange Act; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the resident corporation may enact a charter or bylaw amendment to remove itself entirely
from the Tennessee Business Combination Act that must be approved by a majority of the shareholders
who have held shares for more than one year before the vote and which cannot become operative until
two years after the vote.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have not adopted a charter amendment or bylaw to remove ourselves from the Tennessee
Business Combination Act.
</DIV>

<P align="center" style="font-size: 10pt">II-2
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Tennessee Greenmail Act. </I>The Tennessee Greenmail Act prohibits us from purchasing or agreeing
to purchase any of our securities, at a price higher than fair market value, from a holder of 3% or
more of any class of its securities who has beneficially owned the securities for less than two
years. We can, however, make this purchase if the majority of the outstanding shares of each class
of voting stock issued by us approves the purchase or if we make an offer of at least equal value
per share to all holders of shares of the same class of securities as those held by the prospective
seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Tennessee Control Share Acquisition Act. </I>The Tennessee Control Share Acquisition Act strips a
purchaser&#146;s shares of voting rights any time an acquisition of shares in a Tennessee corporation
which has elected to be covered by the Tennessee Control Share Acquisition Act (which Mountain
National Bancshares at this time has not) brings the purchaser&#146;s voting power to one-fifth,
one-third or a majority of all voting power. The purchaser&#146;s voting rights can be restored only by
a majority vote of the other shareholders. The purchaser may demand a meeting of shareholders to
conduct such a vote. The purchaser can demand a meeting for this purpose before acquiring shares in
excess of the thresholds described above, which we refer to as a control share acquisition, only if
it holds at least 10% of the outstanding shares and announces a good faith intention to make the
acquisition of shares having voting power in excess of the thresholds stated above. If a target
corporation so elects prior to the date on which a purchaser makes a control share acquisition, a
target corporation may redeem the purchaser&#146;s shares if the shares are not granted voting rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The effect of these provisions may make a change of control of Mountain National Bancshares
harder by delaying, deferring or preventing a tender offer or takeover attempt that you might
consider to be in your best interest, including those attempts that might result in the payment of
a premium over the market price for our shares. They may also promote the continuity of our
management by making it harder for you to remove or change the incumbent members of the board of
directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Limitations on Liability and Indemnification of Directors and Officers.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Tennessee Business Corporation Act provides that a corporation may indemnify any of its
directors and officers against liability incurred in connection with a proceeding if:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the director or officer acted in good faith;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the case of conduct in his or her official capacity with the corporation, the director or
officer reasonably believed such conduct was in the corporation&#146;s best interest;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in all other cases, the director or officer reasonably believed that his or her conduct was
not opposed to the best interest of the corporation; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in connection with any criminal proceeding, the director or officer had no reasonable cause
to believe that his or her conduct was unlawful.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In actions brought by or in the right of the corporation, however, the Tennessee Business
Corporation Act provides that no indemnification may be made if the director or officer was
adjudged to be liable to the corporation. In cases where the director or officer is wholly
successful, on the merits or otherwise, in the defense of any proceeding instituted because of his
or her status as an officer or director of a corporation, the Tennessee Business Corporation Act
mandates that the corporation indemnify the director or officer against reasonable expenses
incurred in the proceeding. The Tennessee Business Corporation Act also provides that in connection
with any proceeding charging improper personal benefit to an officer or director, no
indemnification may be made if the officer or director is adjudged liable on the basis that
personal benefit was improperly received. Notwithstanding the foregoing, the Tennessee Business
Corporation Act provides that a court of competent jurisdiction, upon application, may order that
an officer or director be indemnified for reasonable expenses if, in consideration of all relevant
circumstances, the court determines that the individual is fairly and reasonably entitled to
indemnification, notwithstanding the fact that:
</DIV>

<P align="center" style="font-size: 10pt">II-3
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the officer or director was adjudged liable to the corporation in a proceeding by or in the
right of the corporation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the officer or director was adjudged liable on the basis that personal benefit was
improperly received by him or her; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the officer or director breached his or her duty of care to the corporation.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our charter and bylaws provide that to the extent permitted by the Tennessee Business
Corporation Act, we may indemnify, hold harmless and advance expenses to each person who was or is
made a party or is threatened to be made a party to or is otherwise involved in any action, suit or
proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he
or she is or was a director, officer or employee of ours or is or was serving at our request as a
director, officer or employee of another corporation or of a partnership, joint venture, trust or
other enterprise, including service with respect to employee benefit plans, whether the basis of
such proceeding is alleged action in an official capacity as a director, officer, or employee or in
any other capacity while serving as a director, officer or employed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our charter and bylaws also allow us to purchase and maintain insurance to protect our
directors, officers, agents and employees against any expense, liability or loss asserted against
them or incurred by them. The insuring of the directors, officers, agents and employees is
permitted whether or not we would have the power to indemnify that director, officer, agent or
employee under our charter or the terms of the Tennessee Business Corporation Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;5. Interests of Named Experts and Counsel.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;6. Indemnification of Directors and Officers.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Tennessee Business Corporation Act (&#147;TBCA&#148;) provides that a corporation may indemnify any
of its directors and officers against liability incurred in connection with a proceeding if (i)&nbsp;the
director or officer acted in good faith, (ii)&nbsp;in the case of conduct in his or her official
capacity with the corporation, the director or officer reasonably believed such conduct was in the
corporation&#146;s best interests, (iii)&nbsp;in all other cases, the director or officer reasonably believed
that his or her conduct was not opposed to the best interest of the corporation, and (iv)&nbsp;in
connection with any criminal proceeding, the director or officer had no reasonable cause to believe
that his or her conduct was unlawful. In actions brought by or in the right of the corporation,
however, the TBCA provides that no indemnification may be made if the director or officer was
adjudged to be liable to the corporation. In cases where the director or officer is wholly
successful, on the merits or otherwise, in the defense of any proceeding instigated because of his
or her status as an officer or director of a corporation, the TBCA mandates that the corporation
indemnify the director or officer against reasonable expenses incurred in the proceeding. The TBCA
also provides that in connection with any proceeding charging improper personal benefit to an
officer or director, no indemnification may be made if such officer or director is adjudged liable
on the basis that personal benefit was improperly received. Notwithstanding the foregoing, the TBCA
provides that a court of competent jurisdiction, upon application, may order that an officer or
director be indemnified for reasonable expenses if, in consideration of all relevant circumstances,
the court determines that such individual is fairly and reasonably entitled to indemnification,
whether or not the standard of conduct set forth above was met.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant&#146;s charter and bylaws provide that the Registrant shall to the fullest extent
allowed by the laws of the State of Tennessee, both as now in effect or hereafter adopted,
indemnify and advance expenses to each person who was or is made a party or is threatened to be
made a party to or is otherwise involved in any action, suit or proceeding, whether civil,
criminal, administrative or investigative, by reason of the fact that he or she is or was a
director, officer or employee of the corporation or is or was serving at the request of the
corporation as a director, officer or employee of another corporation or of a partnership, joint
venture, trust or other enterprise, including service with respect to employee benefit plans,
whether the basis of such proceeding is alleged action in an official capacity as a director,
officer, or employee or in any other capacity while serving as a director, officer or employed.
</DIV>

<P align="center" style="font-size: 10pt">II-4
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant&#146;s bylaws also provide that the indemnification rights contained in the bylaws
shall not be exclusive of any other right which any person may have or hereafter acquire under any
statute, bylaw, agreement, vote of shareholders, disinterested directors, or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant believes that its charter and bylaw provisions are necessary to attract and
retain qualified persons as directors and officers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant&#146;s charter and bylaws also allow it to purchase and maintain insurance to
protect its directors, officers, agents and employees against any liability asserted against them
or incurred by them. The insuring of the directors, officers, agents and employees is permitted
whether or not the Registrant would have the power to indemnify that director, officer, agent or
employee under its charter or the terms of the TBCA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;7. Exemption from Registration Claimed.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;8. Exhibits.</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Charter of Incorporation of the Registrant (included as Exhibit&nbsp;3.1 to the
Report on Form&nbsp;8-K12G3 of the Registrant, dated July&nbsp;12, 2003 (File No.&nbsp;000-49912),
previously filed with the Commission and incorporated herein by reference).</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Bylaws of the Registrant (included as Exhibit&nbsp;3.2 to the Report on Form&nbsp;8-K12G3
of the Registrant, dated July&nbsp;12, 2003 (File No.&nbsp;000-49912), previously filed with the
Commission and incorporated herein by reference).</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Opinion of Bass, Berry &#038; Sims PLC.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mountain National Bancshares, Inc. Stock Option Plan (included as Exhibit&nbsp;10.1 to
the Registrant&#146;s Annual Report on Form&nbsp;10-KSB for the fiscal year ended December&nbsp;31,
2002, and incorporated herein by reference).</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">23.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Consent of Hazlett, Lewis &#038; Bieter, PLLC.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">23.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Consent of Bass, Berry &#038; Sims PLC (included in Exhibit&nbsp;5.1).</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">24.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Power of Attorney (included on the signature page to the Registration Statement).</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9. Undertakings.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;The Registrant hereby undertakes:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;To file, during any period in which offers or sales are being made, a post-effective
amendment to this registration statement:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;To include any prospectus required by Section&nbsp;10(a)(3) of the Securities Act of 1933;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;To reflect in the prospectus any facts or events arising after the effective date of this
registration statement (or the most recent post-effective amendment thereof) which, individually or
in the aggregate, represent a fundamental change in the information set forth in this registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered
(if the total dollar value of securities offered would not exceed that which was registered) and
any deviation from the low or high end of the estimated maximum offering range may be reflected in
the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the
changes in volume and price represent no more than 20&nbsp;percent change in the
</DIV>

<P align="center" style="font-size: 10pt">II-5
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">maximum aggregate offering price set forth in the &#147;Calculation of Registration Fee&#148; table in
the effective registration statement; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;To include any material information with respect to the plan of distribution not
previously disclosed in this registration statement or any material change to such information in
this registration statement;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>provided, however</I>, that clauses (a)(1)(i) and (a)(1)(ii) do not apply if the registration statement
is on Form S-3, Form S-8 or Form F-3, and the information required to be included in a
post-effective amendment by those paragraphs is contained in periodic reports filed with or
furnished to the Commission by the registrant pursuant to Section&nbsp;13 or Section 15(d) of the
Securities Exchange Act of 1934 that are incorporated by reference into this registration
statement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;That, for the purpose of determining any liability under the Securities Act of 1933, each
such post-effective amendment shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time shall be deemed to be
the initial <I>bona fide </I>offering thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;To remove from registration by means of a post-effective amendment any of the securities
being registered which remain unsold at the termination of the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;The registrant hereby undertakes that, for purposes of determining any liability under the
Securities Act of 1933, each filing of the registrant&#146;s annual report pursuant to Section 13(a) or
15(d) of the Securities Exchange Act of 1934 (and where applicable, each filing of an employee
benefit plan&#146;s annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that
is incorporated by reference in this registration Statement shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial <I>bona fide </I>offering thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to directors, officers and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in
the Act and is, therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred or paid by a
director, officer or controlling person of the registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person in connection with
the securities being registered, the registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.
</DIV>

<P align="center" style="font-size: 10pt">II-6
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "SIGNATURES" -->
<DIV align="left"><A NAME="002"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it
has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and
has duly caused this registration statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Sevierville, State of
Tennessee, on this 16<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>
day of September, 2005.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>MOUNTAIN NATIONAL BANCSHARES, INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Dwight B. Grizzell
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Dwight B. Grizzell&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">President and Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>KNOW ALL MEN BY THESE PRESENTS, </B>each person whose signature appears below hereby constitutes
and appoints Dwight B. Grizzell and Rick Hubbs, and each of them, his or her true and lawful
attorneys-in-fact and agents, with full power of substitution and resubstitution, for him or her
and in his or her name, place, and stead, in any and all capacities, to sign any and all amendments
(including post-effective amendments) to this registration statement, and to file the same, with
the Securities Exchange Commission, granting unto said attorneys-in-fact and agents, and each of
them, full power and authority to do and perform each and every act and thing requisite and
necessary, as fully to all intents and purposes as he or she might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or his or her
substitute or substitutes, may lawfully do or cause to be done by virtue hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act, this registration statement has been
signed by the following persons in the capacities and on the date indicated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Signature</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Title</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR>
        <TD>&nbsp;<BR></TD>
</TR>


<TR valign="bottom">
    <TD align="center" nowrap valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Dwight B. Grizzell
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Dwight B. Grizzell</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
President, Chief Executive Officer
and Director (Principal Executive
Officer)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">September 16, 2005</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Rick Hubbs
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Rick Hubbs</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Senior Vice President and
Controller (Principal Accounting
and Financial Officer)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">September 16, 2005</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ James E. Bookstaff
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
James E. Bookstaff</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">September 16, 2005</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Gary A. Helton
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Gary A. Helton</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">September 16, 2005</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Charlie R. Johnson
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Charlie R. Johnson</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">September 16, 2005</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Sam L. Large
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Sam L. Large</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">September 16, 2005</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Jeffrey J. Monson
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Jeffrey J. Monson</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">September 16, 2005</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Linda N. Ogle
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Linda N. Ogle</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">September 16, 2005</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">II-7
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Signature</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Title</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Michael C. Ownby
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Michael C. Ownby</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">September 15, 2005</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ John M. Parker, Sr.
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
John M. Parker, Sr.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">September 15, 2005</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">&nbsp;
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Ruth A. Reams</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"></TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">&nbsp;
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Barbara S. Stevens</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">II-8
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- link1 "EXHIBIT INDEX" -->
<DIV align="left"><A NAME="003"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">Exhibit 4.1
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Charter of Incorporation of the Registrant (included as Exhibit&nbsp;3.1 to the
Report on Form&nbsp;8-K12G3 of the Registrant, dated July&nbsp;12, 2003 (File No.
000-49912), previously filed with the Commission and incorporated herein by
reference).</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Exhibit 4.2
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Bylaws of the Registrant (included as Exhibit&nbsp;3.2 to the Report on Form&nbsp;8-K12G3
of the Registrant, dated July&nbsp;12, 2003 (File No.&nbsp;000-49912), previously filed
with the Commission and incorporated herein by reference).</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Exhibit 5.1
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Opinion of Bass, Berry &#038; Sims PLC.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Exhibit&nbsp;10.1
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mountain National Bancshares, Inc. Stock Option Plan (included as Exhibit&nbsp;10.1
to the Registrant&#146;s Annual Report on Form&nbsp;10-KSB for the fiscal year ended
December&nbsp;31, 2002, and incorporated herein by reference).</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Exhibit&nbsp;23.1
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Consent of Hazlett, Lewis &#038; Bieter, PLLC.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Exhibit&nbsp;23.2
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Consent of Bass, Berry &#038; Sims PLC (included in Exhibit&nbsp;5.1).</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Exhibit&nbsp;24.1
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Power of Attorney (included on the signature page to the Registration Statement).</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">II-9
</DIV>


</BODY>
</HTML>
[{"type": "S-8", "sequence": "1", "filename": "g97348sv8.htm", "description": "MOUNTAIN NATIONAL BANCSHARES, INC. - FORM S-8", "secsgml_size_bytes": 63781}]
{"company-data": {"conformed-name": "MOUNTAIN NATIONAL BANCSHARES INC", "cik": "0001177070", "assigned-sic": "6021", "irs-number": "000000000", "state-of-incorporation": "TN"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-128370", "film-number": "051088634"}, "business-address": {"street1": "300 E. MAIN STREET", "city": "SEVIERVILLE", "state": "TN", "zip": "37864"}}
MOUNTAIN NATIONAL BANCSHARES, INC. - FORM S-8
Table of Contents
As Filed With the Securities and Exchange Commission
on September 16, 2005
Registration No. 333-________
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-8
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
MOUNTAIN NATIONAL BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
Tennessee
75-3036312
(State or other jurisdiction of
(I.R.S. Employer
incorporation or organization)
Identification No.)
300 East Main Street
37862
Sevierville, Tennessee
(Address of Principal Executive Offices)
(Zip Code)
MOUNTAIN NATIONAL BANCSHARES, INC. STOCK OPTION PLAN
(Full title of the plan)
Dwight Grizzell
300 East Main Street
Sevierville, Tennessee 37862
(Name and address of agent for service)
Copy to:
Bob F. Thompson, Esq.
Bass, Berry & Sims PLC
315 Deaderick Street, Suite 2700
Nashville, Tennessee 37238-0002
(615) 742-6200
(865) 428-7990
(Telephone number, including area code, of agent for service)
CALCULATION OF REGISTRATION FEE
Proposed
Title of securities
Amount to be
Proposed maximum
maximum aggregate
Amount of
to be registered
registered
(1)
offering price per share
offering price
(2)
registration fee
Common Stock,
$1.00 par value
275,625 shares
$29.63
$8,166,269
$962
(1)
Pursuant to Rule 416(a) under the Securities Act of 1933, as amended, includes an
indeterminate number of additional shares which may be offered and issued to prevent dilution
resulting from stock splits, stock dividends or similar transactions.
(2)
The offering price is estimated solely for the purpose of determining the
amount of the registration fee in accordance with Rules 457(c) and 457(h)(1) under the Securities
Act of 1933 and is based on the average of the bid and ask prices for the Common Stock on September
12, 2005.
TABLE OF CONTENTS
PART I
PART II
SIGNATURES
EXHIBIT INDEX
EX-5.1 OPINION OF BASS, BERRY & SIMS PLC
EX-23.1 CONSENT OF HAZLETT,LEWIS & BIETER, PLLC.
Table of Contents
PART I
Information Required in the Section 10(a) Prospectus
Mountain National Bancshares, Inc. (the "Registrant") will send or give documents containing
the information specified by Part I of this Form S-8 Registration Statement (the "Registration
Statement") to participants in the plan to which this Registration Statement relates, as specified
in Rule 428(b)(1) promulgated by the Securities and Exchange Commission (the "SEC") under the
Securities Act of 1933, as amended (the "Securities Act"). The Registrant is not filing such
documents with the SEC, but these documents constitute (along with the documents incorporated by
reference into the Registration Statement pursuant to Item 3 of Part II hereof) a prospectus that
meets the requirements of Section 10(a) of the Securities Act. Unless this Registration Statement
indicates otherwise or the context otherwise requires, the terms "we", "our", "us" or Mountain
National, refer to Mountain National Bancshares, Inc. and its subsidiaries including Mountain
National Bank.
I-1
Table of Contents
PART II
Information Required in the Registration Statement
Item 3. Incorporation of Documents by Reference.
The following documents filed by us with the SEC, pursuant to the Securities Exchange Act of
1934, as amended (the "Exchange Act"), are hereby incorporated by reference and shall be deemed to
be a part hereof from the date of filing of such document:
(1)
Our Annual Report on Form 10-KSB for the fiscal year ended December 31, 2004, filed by us on
March 31, 2005;
(2)
Our Quarterly Report on Form 10-QSB for the quarterly period ended March 31, 2005, filed by
us on May 16, 2005, as amended by Form 10-QSB/A filed by us on May 23, 2005 and Amendment No.
2 to Form 10-QSB filed by us on August 24, 2005;
(3)
Our Quarterly Report on Form 10-QSB for the quarterly period ended June 30, 2005, filed by us
on August 15, 2005, as amended by Amendment No. 1 to Form 10-QSB filed by us on August 24,
2005; and
(4)
Our Current Reports on Form 8-K filed January 11, 2005, June 6, 2005 and September 1, 2005.
All documents filed by us pursuant to Section 13(a), 13(c), 14 and 15(d) of the Exchange Act
after the date hereof and prior to the filing of a post-effective amendment to this Registration
Statement which indicates that all securities offered hereby have been sold or which deregisters
all securities then remaining unsold, shall be deemed to be incorporated by reference herein and to
be a part hereof from the date of filing of such documents. Any statements contained in a document
incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or
replaced for purposes hereof to the extent that a statement contained herein (or in any other
subsequently filed document which also is incorporated or deemed to be incorporated by reference
herein) modifies or replaces such statement. Any statement so modified or replaced shall not be
deemed, except as so modified or replaced, to constitute a part hereof.
Notwithstanding the foregoing, information furnished under Items 2.02 and 7.01 of any Current
Report on Form 8-K, including the related exhibits, is not incorporated by reference in this
prospectus or the accompanying registration statement.
Item 4. Description of Securities.
We have the authority to issue 2,400,000 shares of common stock. As of June 30, 2005,
1,362,384 shares of our common stock were outstanding. Our common stock is the only class of
capital stock it we are authorized to issue.
The following summary descriptions of selected provisions of our charter, bylaws, common stock
and Tennessee Business Corporation Act are not complete. The summaries are subject to, and are
qualified entirely by, the provisions of our charter and bylaws, all of which are included or
incorporated by reference as exhibits to the registration statement of which this prospectus is a
part and the Tennessee Business Corporation Act. You are encouraged to read our charter and bylaws.
Common Stock
The holders of our common stock are entitled to one vote per share on all matters to be voted
on by shareholders. Notwithstanding the foregoing, at any shareholder meeting where directors are
to be elected, each shareholder entitled to vote shall have the right to multiply the number of
votes he or she is entitled to cast by the number of vacancies being filled and cast the product
for a single candidate or distribute the product among two or more candidates. This feature is
referred to as cumulative voting. Holders of common stock have no preemptive
II-1
Table of Contents
rights, and there are no conversion rights or redemption or sinking fund provisions with respect to
shares of our common stock. All shares of our common stock being offered under this prospectus will
be fully paid and not liable for further calls or assessment by us.
Preemptive Rights
No holder of our shares has any preemptive rights to purchase, subscribe for or otherwise
acquire any additional shares of our common stock or any securities exercisable for or convertible
into our shares.
Tennessee's Anti-takeover Provisions
Provisions in Tennessee law could make it harder for someone to acquire us through a tender
offer, proxy contest or otherwise.
Tennessee Business Combination Act.
The Tennessee Business Combination Act provides that a
party owning shares equal to 10% or more of the voting power of any class or series of the then
outstanding voting stock of a "resident domestic corporation" is an "interested shareholder." An
interested shareholder also includes a party that is an affiliate or associate, as defined in the
Tennessee Business Combination Act, of a "resident domestic corporation." We are currently a
resident domestic corporation within the meaning of this act. An interested shareholder cannot
engage in a business combination with the resident domestic corporation unless the combination:
•
takes place at least five years after the interested shareholder first acquired
10% or more of the voting power of any class or series of the then outstanding
voting stock of the resident domestic corporation; and
•
either is approved by at least two-thirds of the non-interested voting shares of
the resident domestic corporation or satisfies fairness conditions specified in the
Tennessee Business Combination Act.
These provisions apply unless one of the following exemptions is available:
•
a business combination with an entity can proceed without delay when approved by the target
corporation's board of directors before that entity becomes an interested shareholder;
•
a business combination is exempt, if in its original charter or original bylaws, the
resident domestic corporation elects not to be governed by the Tennessee Business Combination Act;
•
unless the charter of the resident domestic corporation provides otherwise, the Tennessee
Business Combination Act does not apply to a business combination of a resident domestic
corporation with, or proposed by or on behalf of, an interested shareholder if the resident
domestic corporation did not have, on such interested shareholder's share acquisition date, a class
of voting stock registered or traded on a national securities exchange or registered with the
securities and exchange commission pursuant to Section 12(g) of the Exchange Act; or
•
the resident corporation may enact a charter or bylaw amendment to remove itself entirely
from the Tennessee Business Combination Act that must be approved by a majority of the shareholders
who have held shares for more than one year before the vote and which cannot become operative until
two years after the vote.
We have not adopted a charter amendment or bylaw to remove ourselves from the Tennessee
Business Combination Act.
II-2
Table of Contents
Tennessee Greenmail Act.
The Tennessee Greenmail Act prohibits us from purchasing or agreeing
to purchase any of our securities, at a price higher than fair market value, from a holder of 3% or
more of any class of its securities who has beneficially owned the securities for less than two
years. We can, however, make this purchase if the majority of the outstanding shares of each class
of voting stock issued by us approves the purchase or if we make an offer of at least equal value
per share to all holders of shares of the same class of securities as those held by the prospective
seller.
Tennessee Control Share Acquisition Act.
The Tennessee Control Share Acquisition Act strips a
purchaser's shares of voting rights any time an acquisition of shares in a Tennessee corporation
which has elected to be covered by the Tennessee Control Share Acquisition Act (which Mountain
National Bancshares at this time has not) brings the purchaser's voting power to one-fifth,
one-third or a majority of all voting power. The purchaser's voting rights can be restored only by
a majority vote of the other shareholders. The purchaser may demand a meeting of shareholders to
conduct such a vote. The purchaser can demand a meeting for this purpose before acquiring shares in
excess of the thresholds described above, which we refer to as a control share acquisition, only if
it holds at least 10% of the outstanding shares and announces a good faith intention to make the
acquisition of shares having voting power in excess of the thresholds stated above. If a target
corporation so elects prior to the date on which a purchaser makes a control share acquisition, a
target corporation may redeem the purchaser's shares if the shares are not granted voting rights.
The effect of these provisions may make a change of control of Mountain National Bancshares
harder by delaying, deferring or preventing a tender offer or takeover attempt that you might
consider to be in your best interest, including those attempts that might result in the payment of
a premium over the market price for our shares. They may also promote the continuity of our
management by making it harder for you to remove or change the incumbent members of the board of
directors.
Limitations on Liability and Indemnification of Directors and Officers.
The Tennessee Business Corporation Act provides that a corporation may indemnify any of its
directors and officers against liability incurred in connection with a proceeding if:
•
the director or officer acted in good faith;
•
in the case of conduct in his or her official capacity with the corporation, the director or
officer reasonably believed such conduct was in the corporation's best interest;
•
in all other cases, the director or officer reasonably believed that his or her conduct was
not opposed to the best interest of the corporation; and
•
in connection with any criminal proceeding, the director or officer had no reasonable cause
to believe that his or her conduct was unlawful.
In actions brought by or in the right of the corporation, however, the Tennessee Business
Corporation Act provides that no indemnification may be made if the director or officer was
adjudged to be liable to the corporation. In cases where the director or officer is wholly
successful, on the merits or otherwise, in the defense of any proceeding instituted because of his
or her status as an officer or director of a corporation, the Tennessee Business Corporation Act
mandates that the corporation indemnify the director or officer against reasonable expenses
incurred in the proceeding. The Tennessee Business Corporation Act also provides that in connection
with any proceeding charging improper personal benefit to an officer or director, no
indemnification may be made if the officer or director is adjudged liable on the basis that
personal benefit was improperly received. Notwithstanding the foregoing, the Tennessee Business
Corporation Act provides that a court of competent jurisdiction, upon application, may order that
an officer or director be indemnified for reasonable expenses if, in consideration of all relevant
circumstances, the court determines that the individual is fairly and reasonably entitled to
indemnification, notwithstanding the fact that:
II-3
Table of Contents
•
the officer or director was adjudged liable to the corporation in a proceeding by or in the
right of the corporation;
•
the officer or director was adjudged liable on the basis that personal benefit was
improperly received by him or her; or
•
the officer or director breached his or her duty of care to the corporation.
Our charter and bylaws provide that to the extent permitted by the Tennessee Business
Corporation Act, we may indemnify, hold harmless and advance expenses to each person who was or is
made a party or is threatened to be made a party to or is otherwise involved in any action, suit or
proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he
or she is or was a director, officer or employee of ours or is or was serving at our request as a
director, officer or employee of another corporation or of a partnership, joint venture, trust or
other enterprise, including service with respect to employee benefit plans, whether the basis of
such proceeding is alleged action in an official capacity as a director, officer, or employee or in
any other capacity while serving as a director, officer or employed.
Our charter and bylaws also allow us to purchase and maintain insurance to protect our
directors, officers, agents and employees against any expense, liability or loss asserted against
them or incurred by them. The insuring of the directors, officers, agents and employees is
permitted whether or not we would have the power to indemnify that director, officer, agent or
employee under our charter or the terms of the Tennessee Business Corporation Act.
Item 5. Interests of Named Experts and Counsel.
Not applicable.
Item 6. Indemnification of Directors and Officers.
The Tennessee Business Corporation Act ("TBCA") provides that a corporation may indemnify any
of its directors and officers against liability incurred in connection with a proceeding if (i) the
director or officer acted in good faith, (ii) in the case of conduct in his or her official
capacity with the corporation, the director or officer reasonably believed such conduct was in the
corporation's best interests, (iii) in all other cases, the director or officer reasonably believed
that his or her conduct was not opposed to the best interest of the corporation, and (iv) in
connection with any criminal proceeding, the director or officer had no reasonable cause to believe
that his or her conduct was unlawful. In actions brought by or in the right of the corporation,
however, the TBCA provides that no indemnification may be made if the director or officer was
adjudged to be liable to the corporation. In cases where the director or officer is wholly
successful, on the merits or otherwise, in the defense of any proceeding instigated because of his
or her status as an officer or director of a corporation, the TBCA mandates that the corporation
indemnify the director or officer against reasonable expenses incurred in the proceeding. The TBCA
also provides that in connection with any proceeding charging improper personal benefit to an
officer or director, no indemnification may be made if such officer or director is adjudged liable
on the basis that personal benefit was improperly received. Notwithstanding the foregoing, the TBCA
provides that a court of competent jurisdiction, upon application, may order that an officer or
director be indemnified for reasonable expenses if, in consideration of all relevant circumstances,
the court determines that such individual is fairly and reasonably entitled to indemnification,
whether or not the standard of conduct set forth above was met.
The Registrant's charter and bylaws provide that the Registrant shall to the fullest extent
allowed by the laws of the State of Tennessee, both as now in effect or hereafter adopted,
indemnify and advance expenses to each person who was or is made a party or is threatened to be
made a party to or is otherwise involved in any action, suit or proceeding, whether civil,
criminal, administrative or investigative, by reason of the fact that he or she is or was a
director, officer or employee of the corporation or is or was serving at the request of the
corporation as a director, officer or employee of another corporation or of a partnership, joint
venture, trust or other enterprise, including service with respect to employee benefit plans,
whether the basis of such proceeding is alleged action in an official capacity as a director,
officer, or employee or in any other capacity while serving as a director, officer or employed.
II-4
Table of Contents
The Registrant's bylaws also provide that the indemnification rights contained in the bylaws
shall not be exclusive of any other right which any person may have or hereafter acquire under any
statute, bylaw, agreement, vote of shareholders, disinterested directors, or otherwise.
The Registrant believes that its charter and bylaw provisions are necessary to attract and
retain qualified persons as directors and officers.
The Registrant's charter and bylaws also allow it to purchase and maintain insurance to
protect its directors, officers, agents and employees against any liability asserted against them
or incurred by them. The insuring of the directors, officers, agents and employees is permitted
whether or not the Registrant would have the power to indemnify that director, officer, agent or
employee under its charter or the terms of the TBCA.
Item 7. Exemption from Registration Claimed.
None.
Item 8. Exhibits.
4.1
Charter of Incorporation of the Registrant (included as Exhibit 3.1 to the
Report on Form 8-K12G3 of the Registrant, dated July 12, 2003 (File No. 000-49912),
previously filed with the Commission and incorporated herein by reference).
4.2
Bylaws of the Registrant (included as Exhibit 3.2 to the Report on Form 8-K12G3
of the Registrant, dated July 12, 2003 (File No. 000-49912), previously filed with the
Commission and incorporated herein by reference).
5.1
Opinion of Bass, Berry & Sims PLC.
10.1
Mountain National Bancshares, Inc. Stock Option Plan (included as Exhibit 10.1 to
the Registrant's Annual Report on Form 10-KSB for the fiscal year ended December 31,
2002, and incorporated herein by reference).
23.1
Consent of Hazlett, Lewis & Bieter, PLLC.
23.2
Consent of Bass, Berry & Sims PLC (included in Exhibit 5.1).
24.1
Power of Attorney (included on the signature page to the Registration Statement).
Item 9. Undertakings.
A. The Registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a post-effective
amendment to this registration statement:
(i) To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising after the effective date of this
registration statement (or the most recent post-effective amendment thereof) which, individually or
in the aggregate, represent a fundamental change in the information set forth in this registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered
(if the total dollar value of securities offered would not exceed that which was registered) and
any deviation from the low or high end of the estimated maximum offering range may be reflected in
the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the
changes in volume and price represent no more than 20 percent change in the
II-5
Table of Contents
maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in
the effective registration statement; and
(iii) To include any material information with respect to the plan of distribution not
previously disclosed in this registration statement or any material change to such information in
this registration statement;
provided, however
, that clauses (a)(1)(i) and (a)(1)(ii) do not apply if the registration statement
is on Form S-3, Form S-8 or Form F-3, and the information required to be included in a
post-effective amendment by those paragraphs is contained in periodic reports filed with or
furnished to the Commission by the registrant pursuant to Section 13 or Section 15(d) of the
Securities Exchange Act of 1934 that are incorporated by reference into this registration
statement.
(2) That, for the purpose of determining any liability under the Securities Act of 1933, each
such post-effective amendment shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time shall be deemed to be
the initial
bona fide
offering thereof.
(3) To remove from registration by means of a post-effective amendment any of the securities
being registered which remain unsold at the termination of the offering.
B. The registrant hereby undertakes that, for purposes of determining any liability under the
Securities Act of 1933, each filing of the registrant's annual report pursuant to Section 13(a) or
15(d) of the Securities Exchange Act of 1934 (and where applicable, each filing of an employee
benefit plan's annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that
is incorporated by reference in this registration Statement shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial
bona fide
offering thereof.
C. Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to directors, officers and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in
the Act and is, therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred or paid by a
director, officer or controlling person of the registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person in connection with
the securities being registered, the registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.
II-6
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it
has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and
has duly caused this registration statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Sevierville, State of
Tennessee, on this 16
th
day of September, 2005.
MOUNTAIN NATIONAL BANCSHARES, INC.
By:
/s/ Dwight B. Grizzell
Dwight B. Grizzell
President and Chief Executive Officer
KNOW ALL MEN BY THESE PRESENTS,
each person whose signature appears below hereby constitutes
and appoints Dwight B. Grizzell and Rick Hubbs, and each of them, his or her true and lawful
attorneys-in-fact and agents, with full power of substitution and resubstitution, for him or her
and in his or her name, place, and stead, in any and all capacities, to sign any and all amendments
(including post-effective amendments) to this registration statement, and to file the same, with
the Securities Exchange Commission, granting unto said attorneys-in-fact and agents, and each of
them, full power and authority to do and perform each and every act and thing requisite and
necessary, as fully to all intents and purposes as he or she might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or his or her
substitute or substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act, this registration statement has been
signed by the following persons in the capacities and on the date indicated.
Signature
Title
Date
/s/ Dwight B. Grizzell
Dwight B. Grizzell
President, Chief Executive Officer
and Director (Principal Executive
Officer)
September 16, 2005
/s/ Rick Hubbs
Rick Hubbs
Senior Vice President and
Controller (Principal Accounting
and Financial Officer)
September 16, 2005
/s/ James E. Bookstaff
James E. Bookstaff
Director
September 16, 2005
/s/ Gary A. Helton
Gary A. Helton
Director
September 16, 2005
/s/ Charlie R. Johnson
Charlie R. Johnson
Director
September 16, 2005
/s/ Sam L. Large
Sam L. Large
Director
September 16, 2005
/s/ Jeffrey J. Monson
Jeffrey J. Monson
Director
September 16, 2005
/s/ Linda N. Ogle
Linda N. Ogle
Director
September 16, 2005
II-7
Table of Contents
Signature
Title
Date
/s/ Michael C. Ownby
Michael C. Ownby
Director
September 15, 2005
/s/ John M. Parker, Sr.
John M. Parker, Sr.
Director
September 15, 2005
Ruth A. Reams
Director
Barbara S. Stevens
Director
II-8
Table of Contents
EXHIBIT INDEX
Exhibit 4.1
Charter of Incorporation of the Registrant (included as Exhibit 3.1 to the
Report on Form 8-K12G3 of the Registrant, dated July 12, 2003 (File No.
000-49912), previously filed with the Commission and incorporated herein by
reference).
Exhibit 4.2
Bylaws of the Registrant (included as Exhibit 3.2 to the Report on Form 8-K12G3
of the Registrant, dated July 12, 2003 (File No. 000-49912), previously filed
with the Commission and incorporated herein by reference).
Exhibit 5.1
Opinion of Bass, Berry & Sims PLC.
Exhibit 10.1
Mountain National Bancshares, Inc. Stock Option Plan (included as Exhibit 10.1
to the Registrant's Annual Report on Form 10-KSB for the fiscal year ended
December 31, 2002, and incorporated herein by reference).
Exhibit 23.1
Consent of Hazlett, Lewis & Bieter, PLLC.
Exhibit 23.2
Consent of Bass, Berry & Sims PLC (included in Exhibit 5.1).
Exhibit 24.1
Power of Attorney (included on the signature page to the Registration Statement).
II-9