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  <TITLE>UNITED STATES</TITLE>
  <META NAME="author" CONTENT="Gayle Forcione">
  <META NAME="date" CONTENT="07/30/2012">
  </HEAD>
  <BODY style="margin-top:0;font-family:Times New Roman; font-size:10pt; color:#000000">
  <DIV style="width:960px"><P style="margin:0px"><BR>
  <BR>
  <BR></P>
  </DIV><TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=111.067 /><TD width=119.867 /><TD width=80.267 /><TD width=47.667 /><TD width=24.4 /><TD width=55.933 /><TD width=111.533 /><TD width=24.2 /><TD width=16.267 /><TD width=15.533 /><TD width=80.467 /><TD width=31.467 /><TD width=16.533 /><TD width=24 /><TD width=64 /><TD width=15.467 /><TD width=24.333 /><TD width=11.4 /><TD width=12.8 /><TD width=31.6 /><TD width=56.4 /></TR>
  <TR><TD style="margin-top:0px" valign=top width=718.667 colspan=12><P style="margin:0px" align=center><B>UNITED STATES</B></P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=16.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=240 colspan=8><P style="margin:0px" align=center>OMB APPROVAL</P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=718.667 colspan=12><P style="margin:0px" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=16.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=139.2 colspan=5><P style="margin:0px">OMB Number: </P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=100.8 colspan=3><P style="margin:0px" align=right>3235-0101</P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=718.667 colspan=12><P style="margin:0px" align=center><B>Washington, D.C. 20549</B></P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=16.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=103.467 colspan=3><P style="margin:0px">Expires: </P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=136.533 colspan=5><P style="margin:0px" align=right>February 28, 2014</P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=718.667 colspan=12><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=16.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=240 colspan=8><P style="margin:0px">Estimated average burden</P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=718.667 colspan=12><P style="margin:0px; font-size:12pt" align=center><B>FORM 144</B></P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=16.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=183.6 colspan=7><P style="margin:0px">hours per response . . . . .</P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=56.4><P style="margin:0px" align=right>1.00</P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=718.667 colspan=12><P style="margin:0px" align=center><B>NOTICE OF PROPOSED SALE OF SECURITIES</B></P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=16.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=240 colspan=8><P style="margin:0px" align=center>SEC USE ONLY</P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=718.667 colspan=12><P style="margin:0px" align=center><B>PURSUANT TO RULE 144 UNDER THE SECURITIES ACT OF 1933</B></P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=16.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=240 colspan=8><P style="margin:0px">DOCUMENT SEQUENCE NO.</P>
  </TD></TR>
  <TR><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=735.2 colspan=13><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=240 colspan=8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=111.067 rowspan=2><P style="margin:0px"><B>ATTENTION:</B></P>
  </TD><TD style="margin-top:0px" valign=top width=607.6 colspan=11 rowspan=2><P style="margin:0px"><I>Transmit for filing 3 copies of this form concurrently with either placing an order with a broker to execute sale or executing a sale directly with a market maker.</I></P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=16.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=240 colspan=8><P style="margin:0px">CUSIP NUMBER</P>
  </TD></TR>
  <TR><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=16.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=240 colspan=8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
  <TR><TD style="margin-top:0px; border-left:1px solid #000000; border-top:1px solid #000000; border-right:1px solid #000000" valign=top width=383.267 colspan=5><P style="margin:0px">1 (a) NAME OF ISSUER (Please type or print)</P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000" valign=top width=191.667 colspan=3><P style="margin:0px">(b) IRS IDENT. NO.</P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000" valign=top width=143.733 colspan=4><P style="margin:0px">(c) S.E.C. FILE NO.</P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=16.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=240 colspan=8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
  <TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000" valign=top width=383.267 colspan=5><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=191.667 colspan=3><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=143.733 colspan=4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=16.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=240 colspan=8><P style="margin:0px">WORK LOCATION</P>
  </TD></TR>
  <TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000" valign=top width=383.267 colspan=5><P style="margin:0px"><B>Merchants Bancshares, Inc.</B></P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=191.667 colspan=3><P style="margin:0px"><B>03-0287342</B></P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=143.733 colspan=4><P style="margin:0px"><B>000-11595</B></P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=16.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=240 colspan=8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
  <TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=383.267 colspan=5><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=191.667 colspan=3><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=143.733 colspan=4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=16.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=240 colspan=8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
  <TR><TD style="margin-top:0px; border-left:1px solid #000000" valign=top width=230.933 colspan=2><P style="margin:0px" align=justify>1 (d) ADDRESS OF ISSUER</P>
  </TD><TD style="margin-top:0px" valign=top width=127.933 colspan=2><P style="margin:0px" align=justify>STREET</P>
  </TD><TD style="margin-top:0px" valign=top width=191.867 colspan=3><P style="margin:0px">CITY</P>
  </TD><TD style="margin-top:0px" valign=top width=56 colspan=3><P style="margin:0px" align=center>STATE</P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=111.933 colspan=2><P style="margin:0px" align=right>ZIP CODE</P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=16.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=240 colspan=8><P style="margin:0px">(e) TELEPHONE NO.</P>
  </TD></TR>
  <TR><TD style="margin-top:0px; border-left:1px solid #000000" valign=top width=230.933 colspan=2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=127.933 colspan=2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=191.867 colspan=3><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=56 colspan=3><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=111.933 colspan=2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=16.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000" valign=top width=127.8 colspan=4><P style="margin:0px" align=center>AREA CODE</P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=112.2 colspan=4><P style="margin:0px" align=center>NUMBER</P>
  </TD></TR>
  <TR><TD style="margin-top:0px; border-left:1px solid #000000" valign=top width=230.933 colspan=2><P style="margin:0px" align=justify><B>275 Kennedy Drive</B></P>
  </TD><TD style="margin-top:0px" valign=top width=127.933 colspan=2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=191.867 colspan=3><P style="margin:0px"><B>South Burlington</B></P>
  </TD><TD style="margin-top:0px" valign=top width=56 colspan=3><P style="margin:0px" align=center><B>VT</B></P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=111.933 colspan=2><P style="margin:0px" align=right><B>05403</B></P>
  </TD><TD style="margin-top:0px" valign=top width=16.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000" valign=top width=127.8 colspan=4><P style="margin:0px" align=center><B>(802)</B></P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=112.2 colspan=4><P style="margin:0px" align=center><B>658-3400</B></P>
  </TD></TR>
  <TR><TD style="margin-top:0px; border-left:1px solid #000000; border-top:1px solid #000000; border-right:1px solid #000000" valign=top width=311.2 colspan=3><P style="margin:0px">2 (a) NAME OF PERSON FOR WHOSE ACCOUNT THE SECURITIES ARE TO BE SOLD</P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000" valign=top width=128 colspan=3><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000" valign=top width=152 colspan=3><P style="margin:0px">(b) RELATIONSHIP TO ISSUER</P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000" valign=top width=96 colspan=2><P style="margin:0px">(c) ADDRESS</P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000" valign=top width=72 colspan=3><P style="margin:0px">STREET</P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000" valign=top width=64><P style="margin:0px">CITY</P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000" valign=top width=64 colspan=4><P style="margin:0px">STATE</P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000" valign=top width=88 colspan=2><P style="margin:0px" align=right>ZIP CODE</P>
  </TD></TR>
  <TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000" valign=top width=311.2 colspan=3><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=128 colspan=3><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=152 colspan=3><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=384 colspan=12><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
  <TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000" valign=top width=311.2 colspan=3><P style="margin:0px"><B>Thomas S. Leavitt</B></P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=128 colspan=3><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=152 colspan=3><P style="margin:0px"><B>EVP</B></P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000" valign=top width=384 colspan=12><P style="margin:0px"><B>c/o Merchants Bank, 275 Kennedy Drive</B></P>
  </TD></TR>
  <TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=311.2 colspan=3><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=128 colspan=3><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=152 colspan=3><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=384 colspan=12><P style="margin:0px"><B>South Burlington, VT 05403</B></P>
  </TD></TR>
  </TABLE>
  <DIV style="width:960px"><P style="margin:0px"><BR></P>
  <P style="margin:0px" align=center><I>INSTRUCTION: The person filing this notice should contact the issuer to obtain the I.R.S. Identification Number and the S.E.C. File Number.</I></P>
  <P style="margin:0px"><BR></P>
  </DIV><TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=87.2 /><TD width=272 /><TD width=104 /><TD width=112 /><TD width=104 /><TD width=104 /><TD width=96 /><TD width=96 /></TR>
  <TR><TD style="margin-top:0px; border:1px solid #000000" valign=bottom width=87.2><P style="margin:0px; font-size:8pt"><B>3 (a)<BR>
  </B></P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=272><P style="margin:0px; font-size:8pt"><B>(b)</B></P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=104><P style="margin:0px; font-size:8pt" align=center><B>SEC USE ONLY</B></P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=112><P style="margin:0px; font-size:8pt"><B>(c)</B></P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=104><P style="margin:0px; font-size:8pt"><B>(d)</B></P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=104><P style="margin:0px; font-size:8pt"><B>(e)</B></P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=96><P style="margin:0px; font-size:8pt"><B>(f)</B></P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=96><P style="margin:0px; font-size:8pt"><B>(g)</B></P>
  </TD></TR>
  <TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=87.2><P style="margin:0px; font-size:8pt" align=center><B>Title of the<BR>
  Class of<BR>
  Securities<BR>
  To Be Sold</B></P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=272><P style="margin:0px; font-size:8pt" align=center><B>Name and Address of Each Broker Through Whom the Securities are to be Offered or Each Market Maker who is Acquiring the Securities</B></P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=104><P style="margin:0px; font-size:8pt" align=center><B>Broker-Dealer<BR>
  File Number</B></P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=112><P style="margin:0px; font-size:8pt" align=center><B>Number of Shares<BR>
  or Other Units<BR>
  To Be Sold<BR>
  </B>(See instr. 3(c))</P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=104><P style="margin:0px; font-size:8pt" align=center><B>Aggregate<BR>
  Market<BR>
  Value<BR>
  </B>(See instr. 3(d))</P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=104><P style="margin:0px; font-size:8pt" align=center><B>Number of Shares<BR>
  or Other Units<BR>
  Outstanding<BR>
  </B>(See instr. 3(e))</P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=96><P style="margin:0px; font-size:8pt" align=center><B>Approximate<BR>
  Date of Sale<BR>
  </B>(See instr. 3(f))<BR>
  (MO. DAY YR.)</P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=96><P style="margin:0px; font-size:8pt" align=center><B>Name of Each<BR>
  Securities<BR>
  Exchange<BR>
  </B>(See instr. 3(g))</P>
  </TD></TR>
  <TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="margin:0px">Common<BR>
  Stock</P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=272><P style="margin:0px">Raymond James<BR>
  222 S. Riverside Plaza<BR>
  7th Floor<BR>
  Chicago, IL 60606</P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=104><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=112><P style="margin:0px" align=center>12,250</P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=104><P style="margin:0px" align=center>$333,200</P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=104><P style="margin:0px" align=center>6,258,361</P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=96><P style="margin:0px" align=center>7/30/2012 to<BR>
  8/3/2012</P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=96><P style="margin:0px" align=center>NASDAQ</P>
  </TD></TR>
  <TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=272><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=104><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=112><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=104><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=104><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=96><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=96><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
  <TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=272><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=104><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=112><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=104><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=104><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=96><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=96><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
  </TABLE>
  <DIV style="width:960px"><P style="margin:0px"><BR>
  <BR></P>
  <P style="margin:0px; page-break-before:always"><BR></P>
  <TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=26.4 /><TD width=32 /><TD width=352.8 /><TD width=26.4 /><TD width=32 /><TD width=472 /></TR>
  <TR><TD style="margin-top:0px" valign=top width=411.2 colspan=3><P style="margin:0px"><B>INSTRUCTIONS:</B></P>
  </TD><TD style="margin-top:0px" valign=top width=26.4><P style="margin:0px">3.</P>
  </TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px">(a)</P>
  </TD><TD style="margin-top:0px" valign=top width=472><P style="margin:0px">Title of the class of securities to be sold</P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=26.4><P style="margin:0px">1.</P>
  </TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px">(a)</P>
  </TD><TD style="margin-top:0px" valign=top width=352.8><P style="margin:0px">Name of issuer</P>
  </TD><TD style="margin-top:0px" valign=top width=26.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px">(b)</P>
  </TD><TD style="margin-top:0px" valign=top width=472><P style="margin:0px">Name and address of each broker through whom the securities are intended</P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=26.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px">(b)</P>
  </TD><TD style="margin-top:0px" valign=top width=352.8><P style="margin:0px">Issuer's I.R.S. Identification Number</P>
  </TD><TD style="margin-top:0px" valign=top width=26.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=472><P style="margin:0px">to be sold</P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=26.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px">(c)</P>
  </TD><TD style="margin-top:0px" valign=top width=352.8><P style="margin:0px">Issuer's S.E.C. file number, if any</P>
  </TD><TD style="margin-top:0px" valign=top width=26.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px">(c)</P>
  </TD><TD style="margin-top:0px" valign=top width=472><P style="margin:0px">Number of shares or other units to be sold (if debt securities, give the aggregate</P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=26.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px">(d)</P>
  </TD><TD style="margin-top:0px" valign=top width=352.8><P style="margin:0px">Issuer's address, including zip code</P>
  </TD><TD style="margin-top:0px" valign=top width=26.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=472><P style="margin:0px">face amount)</P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=26.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px">(e)</P>
  </TD><TD style="margin-top:0px" valign=top width=352.8><P style="margin:0px">Issuer's telephone number, including area code</P>
  </TD><TD style="margin-top:0px" valign=top width=26.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px">(d)</P>
  </TD><TD style="margin-top:0px" valign=top width=472><P style="margin:0px">Aggregate market value of the securities to be sold as of a specified date within 10</P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=26.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=352.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=26.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=472><P style="margin:0px">days prior to the filing of this notice</P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=26.4><P style="margin:0px">2.</P>
  </TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px">(a)</P>
  </TD><TD style="margin-top:0px" valign=top width=352.8><P style="margin:0px">Name of person for whose account the securities are to be sold</P>
  </TD><TD style="margin-top:0px" valign=top width=26.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px">(e)</P>
  </TD><TD style="margin-top:0px" valign=top width=472><P style="margin:0px">Number of shares or other units of the class outstanding, or if debt securities the face</P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=26.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px">(b)</P>
  </TD><TD style="margin-top:0px" valign=top width=352.8><P style="margin:0px">Such person's relationship to the issuer (e.g., officer, director,</P>
  </TD><TD style="margin-top:0px" valign=top width=26.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=472><P style="margin:0px">amount thereof outstanding, as shown by the most recent report or statement</P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=26.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=352.8><P style="margin:0px">10% stockholder, or member of immediate family of any of the</P>
  </TD><TD style="margin-top:0px" valign=top width=26.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=472><P style="margin:0px">published by the issuer</P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=26.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=352.8><P style="margin:0px">foregoing)</P>
  </TD><TD style="margin-top:0px" valign=top width=26.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px">(f)</P>
  </TD><TD style="margin-top:0px" valign=top width=472><P style="margin:0px">Approximate date on which the securities are to be sold</P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=26.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px">(c)</P>
  </TD><TD style="margin-top:0px" valign=top width=352.8><P style="margin:0px">Such person's address, including zip code</P>
  </TD><TD style="margin-top:0px" valign=top width=26.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px">(g)</P>
  </TD><TD style="margin-top:0px" valign=top width=472><P style="margin:0px">Name of each securities exchange, if any, on which the securities are intended to be sold</P>
  </TD></TR>
  </TABLE>
  <P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><B>Potential persons who are to respond to the collection of information contained in this form are not<BR>
  required to respond unless the form displays a currently valid OMB control number.</B></P>
  <P style="margin:0px" align=right>SEC 1147 (02-08)</P>
  <P style="margin:0px"><BR></P>
  </DIV><TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=967.2 /></TR>
  <TR><TD style="margin-top:0px" valign=top width=967.2><P style="margin:0px" align=center><B>TABLE I -- SECURITIES TO BE SOLD</B></P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=967.2><P style="margin:0px" align=center><I>Furnish the following information with respect to the acquisition of the securities to be sold<BR>
  and with respect to the payment of all or any part of the purchase price or other consideration therefor:</I></P>
  </TD></TR>
  </TABLE>
  <DIV style="width:960px"><P style="margin:0px"><BR></P>
  </DIV><TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=95.2 /><TD width=40 /><TD width=48 /><TD width=208 /><TD width=208 /><TD width=144 /><TD width=80 /><TD width=151.2 /><TD width=0.8 /></TR>
  <TR><TD style="margin-top:0px; border-left:1px solid #000000; border-top:1px solid #000000; border-right:1px solid #000000" valign=bottom width=95.2><P style="margin:0px; font-size:8pt" align=center><B>Title of<BR>
  the Class</B></P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000" valign=bottom width=88 colspan=2><P style="margin:0px; font-size:8pt" align=center><B>Date you<BR>
  Acquired</B></P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000" valign=bottom width=208><P style="margin:0px; font-size:8pt" align=center><BR>
  <B>Nature of Acquisition Transaction</B></P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000" valign=bottom width=208><P style="margin:0px; font-size:8pt" align=center><B>Name of Person from Whom Acquired (If gift, also give date donor acquired)</B></P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000" valign=bottom width=144><P style="margin:0px; font-size:8pt" align=center><B>Amount of <BR>
  Securities Acquired</B></P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000" valign=bottom width=80><P style="margin:0px; font-size:8pt" align=center><B>Date of<BR>
  Payment</B></P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000" valign=bottom width=152 colspan=2><P style="margin:0px; font-size:8pt" align=center><BR>
  <B>Nature of Payment</B></P>
  </TD></TR>
  <TR><TD style="margin-top:0px; border:1px solid #000000" valign=top width=95.2><P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center>Common Stock</P>
  <P style="margin:0px" align=center><BR></P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=88 colspan=2><P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center>7/30/12</P>
  <P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=208><P style="margin:0px"><BR></P>
  <P style="margin:0px">Stock Option Exercise</P>
  <P style="margin:0px"><BR></P>
  <P style="margin:0px"><BR></P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=208><P style="margin:0px"><BR></P>
  <P style="margin:0px">2008 Stock Incentive Plan</P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=144><P style="margin:0px"><BR></P>
  <P style="margin:0px" align=center>12,250 shares</P>
  <P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=80><P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center>7/30/2012</P>
  <P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=152 colspan=2><P style="margin:0px"><BR></P>
  <P style="margin:0px">Cash</P>
  <P style="margin:0px"><BR></P>
  <P style="margin:0px"><BR></P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=135.2 colspan=2><P style="margin:0px"><B>INSTRUCTIONS:</B></P>
  </TD><TD style="margin-top:0px" valign=top width=840 colspan=7><P style="margin:0px">If the securities were purchased and full payment therefore was not made in cash<BR>
  at the time of purchase, explain in the table or in a note thereto the nature of the<BR>
  consideration given. If the consideration consisted of any note or other obligation, <BR>
  or if payment was made in installments describe the arrangement and state when<BR>
  the note or other obligation was discharged in full or the last installment paid.</P>
  </TD></TR>
  </TABLE>
  <DIV style="width:960px"><P style="margin:0px"><BR>
  <BR></P>
  <P style="margin:0px; page-break-before:always"><BR></P>
  </DIV><TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=375.2 /><TD width=112 /><TD width=32 /><TD width=96 /><TD width=104 /><TD width=136 /><TD width=119.2 /></TR>
  <TR><TD style="margin-top:0px; border-top:4px solid #000000" valign=top width=974.4 colspan=7><P style="margin:0px" align=center><B>TABLE II -- SECURITIES SOLD DURING THE PAST 3 MONTHS</B></P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=974.4 colspan=7><P style="margin:0px" align=center><I>Furnish the following information as to all securities of the issuer sold during the past 3 months by the person for whose account the securities are to be sold.</I></P>
  </TD></TR>
  <TR><TD style="margin-top:0px; border:1px solid #000000" valign=top width=375.2><P style="margin:0px" align=center><BR>
  <B>Name and Address of Seller</B></P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=240 colspan=3><P style="margin:0px" align=center><BR>
  <B>Title of Securities Sold</B></P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=104><P style="margin:0px" align=center><BR>
  <B>Date of Sale</B></P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=136><P style="margin:0px" align=center><B>Amount of<BR>
  Securities Sold</B></P>
  </TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=119.2><P style="margin:0px" align=center><BR>
  <B>Gross Proceeds</B></P>
  </TD></TR>
  <TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=375.2><P style="margin:0px"><BR></P>
  <P style="margin:0px"><BR></P>
  <P style="margin:0px"><BR></P>
  <P style="margin:0px"><BR></P>
  <P style="margin:0px"><BR></P>
  <P style="margin:0px"><BR></P>
  <P style="margin:0px"><BR></P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=240 colspan=3><P style="margin:0px"><BR></P>
  <P style="margin:0px"><BR></P>
  <P style="margin:0px"><BR></P>
  <P style="margin:0px"><BR></P>
  <P style="margin:0px"><BR></P>
  <P style="margin:0px"><BR></P>
  <P style="margin:0px"><BR></P>
  <P style="margin:0px"><BR></P>
  <P style="margin:0px"><BR></P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=104><P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=136><P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  </TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=119.2><P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  <P style="margin:0px" align=center><BR></P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=974.4 colspan=7><P style="margin:0px">REMARKS:</P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=974.4 colspan=7><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=487.2 colspan=2><P style="margin:0px"><B>INSTRUCTIONS: </B></P>
  </TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=455.2 colspan=4><P style="margin:0px"><B>ATTENTION:</B></P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=487.2 colspan=2><P style="margin:0px">See the definition of &quot;person&quot; in paragraph (a) of Rule 144. Information is to be given not only as to the person for whose account the securities are to be sold but also as to all other persons included in that definition. In addition, information shall be given as to sales by all personswhose sales are required by paragraph (e) of Rule 144 to be aggregated with sales for the account of the person filing this notice.</P>
  </TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=455.2 colspan=4><P style="margin:0px"><I>The person for whose account the securities to which this notice relates are to be sold hereby represents by signing this notice that he does not know any material adverse information in regard to the current and prospective operations of the Issuer of the securities to be sold which has not been publicly disclosed.</I></P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=487.2 colspan=2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=455.2 colspan=4><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
  <TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=487.2 colspan=2><P style="margin:0px" align=center>July 30, 2012</P>
  </TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=455.2 colspan=4><P style="margin:0px" align=center>/s/ Lisa A. Razo, P.O.A. for Thomas S. Leavitt</P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=487.2 colspan=2><P style="margin:0px" align=center>DATE OF NOTICE</P>
  </TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=455.2 colspan=4><P style="margin:0px" align=center>(SIGNATURE)</P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=487.2 colspan=2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=455.2 colspan=4><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
  <TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=487.2 colspan=2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=455.2 colspan=4><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=487.2 colspan=2><P style="margin:0px" align=center>DATE OF PLAN ADOPTION OR GIVING OF INSTRUCTION<BR>
  IF RELYING IB RULE 10B5-1</P>
  </TD><TD style="margin-top:0px" valign=top width=32><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=455.2 colspan=4><P style="margin:0px" align=center><I>The notice shall be signed by the person for whose account the securities are to be sold. At least one copy of the notice shall be manually signed. Any copies not manually signed shall bear typed or printed signatures.</I></P>
  </TD></TR>
  <TR><TD style="margin-top:0px" valign=top width=974.4 colspan=7><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
  </TABLE>
  <DIV style="width:960px"><P style="margin:0px"><BR></P>
  </DIV><TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=974.4 /></TR>
  <TR><TD style="margin-top:0px; border:1px solid #000000" valign=top width=974.4><P style="margin:0px" align=center><B>ATTENTION: Intentional misstatements or omission of facts constitute Federal Criminal Violations (See 18 U.S.C. 1001)</B></P>
  </TD></TR>
  </TABLE>
  <DIV style="width:960px"><P style="margin:0px"><BR></P>
  </DIV><TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=974.4 /></TR>
  <TR><TD style="margin-top:0px" valign=top width=974.4><P style="margin:0px" align=right>SEC 1147 (02-08)</P>
  </TD></TR>
  </TABLE>
  <DIV style="width:960px"><P style="margin:0px"><BR></P>
  <P style="margin:0px"><BR>
  <BR></P>
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metadata_documents: [{"type": "144", "sequence": "1", "filename": "merc144_tl.htm", "description": "BODY OF FORM 144", "secsgml_size_bytes": 46119}]
text: UNITED STATES
  UNITED STATES
  OMB APPROVAL
  SECURITIES AND EXCHANGE COMMISSION
  OMB Number:
  3235-0101
  Washington, D.C. 20549
  Expires:
  February 28, 2014
  Estimated average burden
  FORM 144
  hours per response . . . . .
  1.00
  NOTICE OF PROPOSED SALE OF SECURITIES
  SEC USE ONLY
  PURSUANT TO RULE 144 UNDER THE SECURITIES ACT OF 1933
  DOCUMENT SEQUENCE NO.
  ATTENTION:
  Transmit for filing 3 copies of this form concurrently with either placing an order with a broker to execute sale or executing a sale directly with a market maker.
  CUSIP NUMBER
  1 (a) NAME OF ISSUER (Please type or print)
  (b) IRS IDENT. NO.
  (c) S.E.C. FILE NO.
  WORK LOCATION
  Merchants Bancshares, Inc.
  03-0287342
  000-11595
  1 (d) ADDRESS OF ISSUER
  STREET
  CITY
  STATE
  ZIP CODE
  (e) TELEPHONE NO.
  AREA CODE
  NUMBER
  275 Kennedy Drive
  South Burlington
  VT
  05403
  (802)
  658-3400
  2 (a) NAME OF PERSON FOR WHOSE ACCOUNT THE SECURITIES ARE TO BE SOLD
  (b) RELATIONSHIP TO ISSUER
  (c) ADDRESS
  STREET
  CITY
  STATE
  ZIP CODE
  Thomas S. Leavitt
  EVP
  c/o Merchants Bank, 275 Kennedy Drive
  South Burlington, VT 05403
  INSTRUCTION: The person filing this notice should contact the issuer to obtain the I.R.S. Identification Number and the S.E.C. File Number.
  3 (a)
  (b)
  SEC USE ONLY
  (c)
  (d)
  (e)
  (f)
  (g)
  Title of the
  Class of
  Securities
  To Be Sold
  Name and Address of Each Broker Through Whom the Securities are to be Offered or Each Market Maker who is Acquiring the Securities
  Broker-Dealer
  File Number
  Number of Shares
  or Other Units
  To Be Sold
  (See instr. 3(c))
  Aggregate
  Market
  Value
  (See instr. 3(d))
  Number of Shares
  or Other Units
  Outstanding
  (See instr. 3(e))
  Approximate
  Date of Sale
  (See instr. 3(f))
  (MO. DAY YR.)
  Name of Each
  Securities
  Exchange
  (See instr. 3(g))
  Common
  Stock
  Raymond James
  222 S. Riverside Plaza
  7th Floor
  Chicago, IL 60606
  12,250
  $333,200
  6,258,361
  7/30/2012 to
  8/3/2012
  NASDAQ
  INSTRUCTIONS:
  3.
  (a)
  Title of the class of securities to be sold
  1.
  (a)
  Name of issuer
  (b)
  Name and address of each broker through whom the securities are intended
  (b)
  Issuer's I.R.S. Identification Number
  to be sold
  (c)
  Issuer's S.E.C. file number, if any
  (c)
  Number of shares or other units to be sold (if debt securities, give the aggregate
  (d)
  Issuer's address, including zip code
  face amount)
  (e)
  Issuer's telephone number, including area code
  (d)
  Aggregate market value of the securities to be sold as of a specified date within 10
  days prior to the filing of this notice
  2.
  (a)
  Name of person for whose account the securities are to be sold
  (e)
  Number of shares or other units of the class outstanding, or if debt securities the face
  (b)
  Such person's relationship to the issuer (e.g., officer, director,
  amount thereof outstanding, as shown by the most recent report or statement
  10% stockholder, or member of immediate family of any of the
  published by the issuer
  foregoing)
  (f)
  Approximate date on which the securities are to be sold
  (c)
  Such person's address, including zip code
  (g)
  Name of each securities exchange, if any, on which the securities are intended to be sold
  Potential persons who are to respond to the collection of information contained in this form are not
  required to respond unless the form displays a currently valid OMB control number.
  SEC 1147 (02-08)
  TABLE I -- SECURITIES TO BE SOLD
  Furnish the following information with respect to the acquisition of the securities to be sold
  and with respect to the payment of all or any part of the purchase price or other consideration therefor:
  Title of
  the Class
  Date you
  Acquired
  Nature of Acquisition Transaction
  Name of Person from Whom Acquired (If gift, also give date donor acquired)
  Amount of
  Securities Acquired
  Date of
  Payment
  Nature of Payment
  Common Stock
  7/30/12
  Stock Option Exercise
  2008 Stock Incentive Plan
  12,250 shares
  7/30/2012
  Cash
  INSTRUCTIONS:
  If the securities were purchased and full payment therefore was not made in cash
  at the time of purchase, explain in the table or in a note thereto the nature of the
  consideration given. If the consideration consisted of any note or other obligation,
  or if payment was made in installments describe the arrangement and state when
  the note or other obligation was discharged in full or the last installment paid.
  TABLE II -- SECURITIES SOLD DURING THE PAST 3 MONTHS
  Furnish the following information as to all securities of the issuer sold during the past 3 months by the person for whose account the securities are to be sold.
  Name and Address of Seller
  Title of Securities Sold
  Date of Sale
  Amount of
  Securities Sold
  Gross Proceeds
  REMARKS:
  INSTRUCTIONS:
  ATTENTION:
  See the definition of "person" in paragraph (a) of Rule 144. Information is to be given not only as to the person for whose account the securities are to be sold but also as to all other persons included in that definition. In addition, information shall be given as to sales by all personswhose sales are required by paragraph (e) of Rule 144 to be aggregated with sales for the account of the person filing this notice.
  The person for whose account the securities to which this notice relates are to be sold hereby represents by signing this notice that he does not know any material adverse information in regard to the current and prospective operations of the Issuer of the securities to be sold which has not been publicly disclosed.
  July 30, 2012
  /s/ Lisa A. Razo, P.O.A. for Thomas S. Leavitt
  DATE OF NOTICE
  (SIGNATURE)
  DATE OF PLAN ADOPTION OR GIVING OF INSTRUCTION
  IF RELYING IB RULE 10B5-1
  The notice shall be signed by the person for whose account the securities are to be sold. At least one copy of the notice shall be manually signed. Any copies not manually signed shall bear typed or printed signatures.
  ATTENTION: Intentional misstatements or omission of facts constitute Federal Criminal Violations (See 18 U.S.C. 1001)
  SEC 1147 (02-08)