content: <HTML>
  <BODY>
  
  <TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=975>
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  <B><FONT SIZE=2><P ALIGN="CENTER">UNITED STATES</B></FONT></TD>
  <TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="25%" VALIGN="TOP" COLSPAN=6>
  <FONT SIZE=2><P ALIGN="CENTER">OMB APPROVAL</FONT></TD>
  </TR>
  <TR><TD WIDTH="74%" VALIGN="TOP" COLSPAN=8>
  <B><FONT SIZE=2><P ALIGN="CENTER">SECURITIES AND EXCHANGE COMMISSION</B></FONT></TD>
  <TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="14%" VALIGN="TOP" COLSPAN=4>
  <FONT SIZE=2><P>OMB Number: </FONT></TD>
  <TD WIDTH="10%" VALIGN="TOP" COLSPAN=2>
  <FONT SIZE=2><P ALIGN="RIGHT">3235-0101</FONT></TD>
  </TR>
  <TR><TD WIDTH="74%" VALIGN="TOP" COLSPAN=8>
  <B><FONT SIZE=2><P ALIGN="CENTER">Washington, D.C. 20549</B></FONT></TD>
  <TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="11%" VALIGN="TOP">
  <FONT SIZE=2><P>Expires: </FONT></TD>
  <TD WIDTH="14%" VALIGN="TOP" COLSPAN=5>
  <FONT SIZE=2><P ALIGN="RIGHT">December 31, 2009</FONT></TD>
  </TR>
  <TR><TD WIDTH="74%" VALIGN="TOP" COLSPAN=8>&nbsp;</TD>
  <TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="25%" VALIGN="TOP" COLSPAN=6>
  <FONT SIZE=2><P>Estimated average burden</FONT></TD>
  </TR>
  <TR><TD WIDTH="74%" VALIGN="TOP" COLSPAN=8>
  <B><P ALIGN="CENTER">FORM 144</B></TD>
  <TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="19%" VALIGN="TOP" COLSPAN=5>
  <FONT SIZE=2><P>hours per response . . . . .</FONT></TD>
  <TD WIDTH="6%" VALIGN="TOP">
  <FONT SIZE=2><P ALIGN="RIGHT">2.00</FONT></TD>
  </TR>
  <TR><TD WIDTH="74%" VALIGN="TOP" COLSPAN=8>&nbsp;</TD>
  <TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="25%" VALIGN="TOP" COLSPAN=6>&nbsp;</TD>
  </TR>
  <TR><TD WIDTH="74%" VALIGN="TOP" COLSPAN=8>
  <B><FONT SIZE=2><P ALIGN="CENTER">NOTICE OF PROPOSED SALE OF SECURITIES</B></FONT></TD>
  <TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="25%" VALIGN="TOP" COLSPAN=6>
  <FONT SIZE=2><P ALIGN="CENTER">SEC USE ONLY</FONT></TD>
  </TR>
  <TR><TD WIDTH="74%" VALIGN="TOP" COLSPAN=8>
  <B><FONT SIZE=2><P ALIGN="CENTER">PURSUANT TO RULE 144 UNDER THE SECURITIES ACT OF 1933</B></FONT></TD>
  <TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="25%" VALIGN="TOP" COLSPAN=6>
  <FONT SIZE=2><P>DOCUMENT SEQUENCE NO.</FONT></TD>
  </TR>
  <TR><TD WIDTH="75%" VALIGN="TOP" COLSPAN=9>&nbsp;</TD>
  <TD WIDTH="25%" VALIGN="TOP" COLSPAN=6>&nbsp;</TD>
  </TR>
  <TR><TD WIDTH="11%" VALIGN="TOP" ROWSPAN=2>
  <B><FONT SIZE=2><P>ATTENTION:</B></FONT></TD>
  <TD WIDTH="62%" VALIGN="TOP" COLSPAN=7 ROWSPAN=2>
  <I><FONT SIZE=2><P>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></FONT></TD>
  <TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="25%" VALIGN="TOP" COLSPAN=6>&nbsp;</TD>
  </TR>
  <TR><TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="25%" VALIGN="TOP" COLSPAN=6>
  <FONT SIZE=2><P>CUSIP NUMBER</FONT></TD>
  </TR>
  <TR><TD WIDTH="39%" VALIGN="TOP" COLSPAN=4>
  <FONT SIZE=2><P>1 (a) NAME OF ISSUER (Please type or print)</FONT></TD>
  <TD WIDTH="20%" VALIGN="TOP" COLSPAN=2>
  <FONT SIZE=2><P>(b) IRS IDENT. NO.</FONT></TD>
  <TD WIDTH="15%" VALIGN="TOP" COLSPAN=2>
  <FONT SIZE=2><P>(c) S.E.C. FILE NO.</FONT></TD>
  <TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="25%" VALIGN="TOP" COLSPAN=6>&nbsp;</TD>
  </TR>
  <TR><TD WIDTH="39%" VALIGN="TOP" COLSPAN=4>&nbsp;</TD>
  <TD WIDTH="20%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
  <TD WIDTH="15%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
  <TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="25%" VALIGN="TOP" COLSPAN=6>
  <FONT SIZE=2><P>WORK LOCATION</FONT></TD>
  </TR>
  <TR><TD WIDTH="39%" VALIGN="TOP" COLSPAN=4>
  <B><FONT SIZE=2><P>Merchants Bancshares, Inc.</B></FONT></TD>
  <TD WIDTH="20%" VALIGN="TOP" COLSPAN=2>
  <B><FONT SIZE=2><P>03-0287342</B></FONT></TD>
  <TD WIDTH="15%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
  <TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="25%" VALIGN="TOP" COLSPAN=6>&nbsp;</TD>
  </TR>
  <TR><TD WIDTH="39%" VALIGN="TOP" COLSPAN=4>&nbsp;</TD>
  <TD WIDTH="20%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
  <TD WIDTH="15%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
  <TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="25%" VALIGN="TOP" COLSPAN=6>&nbsp;</TD>
  </TR>
  <TR><TD WIDTH="24%" VALIGN="TOP" COLSPAN=2>
  <FONT SIZE=2><P ALIGN="JUSTIFY">1 (d) ADDRESS OF ISSUER</FONT></TD>
  <TD WIDTH="13%" VALIGN="TOP">
  <FONT SIZE=2><P ALIGN="JUSTIFY">STREET</FONT></TD>
  <TD WIDTH="20%" VALIGN="TOP" COLSPAN=2>
  <FONT SIZE=2><P>CITY</FONT></TD>
  <TD WIDTH="6%" VALIGN="TOP" COLSPAN=2>
  <FONT SIZE=2><P ALIGN="CENTER">STATE</FONT></TD>
  <TD WIDTH="11%" VALIGN="TOP">
  <FONT SIZE=2><P ALIGN="RIGHT">ZIP CODE</FONT></TD>
  <TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="25%" VALIGN="TOP" COLSPAN=6>
  <FONT SIZE=2><P>(e) TELEPHONE NO.</FONT></TD>
  </TR>
  <TR><TD WIDTH="24%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
  <TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="20%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
  <TD WIDTH="6%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
  <TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="15%" VALIGN="TOP" COLSPAN=4>
  <FONT SIZE=2><P ALIGN="CENTER">AREA CODE</FONT></TD>
  <TD WIDTH="11%" VALIGN="TOP" COLSPAN=3>
  <FONT SIZE=2><P ALIGN="CENTER">NUMBER</FONT></TD>
  </TR>
  <TR><TD WIDTH="24%" VALIGN="TOP" COLSPAN=2>
  <B><FONT SIZE=2><P ALIGN="JUSTIFY">275 Kennedy Drive</B></FONT></TD>
  <TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="20%" VALIGN="TOP" COLSPAN=2>
  <B><FONT SIZE=2><P>South Burlington</B></FONT></TD>
  <TD WIDTH="6%" VALIGN="TOP" COLSPAN=2>
  <B><FONT SIZE=2><P ALIGN="CENTER">VT</B></FONT></TD>
  <TD WIDTH="11%" VALIGN="TOP">
  <B><FONT SIZE=2><P ALIGN="RIGHT">05403</B></FONT></TD>
  <TD WIDTH="15%" VALIGN="TOP" COLSPAN=4>
  <B><FONT SIZE=2><P ALIGN="CENTER">(802)</B></FONT></TD>
  <TD WIDTH="11%" VALIGN="TOP" COLSPAN=3>
  <B><FONT SIZE=2><P ALIGN="CENTER">865-1838</B></FONT></TD>
  </TR>
  <TR><TD WIDTH="74%" VALIGN="TOP" COLSPAN=8>&nbsp;</TD>
  <TD WIDTH="15%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
  <TD WIDTH="12%" VALIGN="TOP" COLSPAN=4>&nbsp;</TD>
  </TR>
  </TABLE>
  
  <FONT SIZE=2></FONT>
  <TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=975>
  <TR><TD WIDTH="32%" VALIGN="TOP">
  <FONT SIZE=2><P>2 (a) NAME OF PERSON FOR WHOSE ACCOUNT<BR>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THE SECURITIES ARE TO BE SOLD</FONT></TD>
  <TD WIDTH="13%" VALIGN="TOP">
  <FONT SIZE=2><P>(b) IRS IDENT. NO.</FONT></TD>
  <TD WIDTH="16%" VALIGN="TOP">
  <FONT SIZE=2><P>(c) RELATIONSHIP TO<BR>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ISSUER</FONT></TD>
  <TD WIDTH="10%" VALIGN="TOP">
  <FONT SIZE=2><P>(d) ADDRESS</FONT></TD>
  <TD WIDTH="7%" VALIGN="TOP">
  <FONT SIZE=2><P>STREET</FONT></TD>
  <TD WIDTH="7%" VALIGN="TOP">
  <FONT SIZE=2><P>CITY</FONT></TD>
  <TD WIDTH="7%" VALIGN="TOP">
  <FONT SIZE=2><P>STATE</FONT></TD>
  <TD WIDTH="9%" VALIGN="TOP">
  <FONT SIZE=2><P ALIGN="RIGHT">ZIP CODE</FONT></TD>
  </TR>
  <TR><TD WIDTH="32%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="39%" VALIGN="TOP" COLSPAN=5>&nbsp;</TD>
  </TR>
  <TR><TD WIDTH="32%" VALIGN="TOP">
  <B><FONT SIZE=2><P>Thomas S. Leavitt</B></FONT></TD>
  <TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="16%" VALIGN="TOP">
  <B><FONT SIZE=2><P>Exec. VP</B></FONT></TD>
  <TD WIDTH="39%" VALIGN="TOP" COLSPAN=5>
  <B><FONT SIZE=2><P>c/o Merchants Bank</B></FONT></TD>
  </TR>
  <TR><TD WIDTH="32%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="39%" VALIGN="TOP" COLSPAN=5>
  <B><FONT SIZE=2><P>275 Kennedy Drive</B></FONT></TD>
  </TR>
  <TR><TD WIDTH="32%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="39%" VALIGN="TOP" COLSPAN=5>
  <B><FONT SIZE=2><P>South Burlington, VT 05403</B></FONT></TD>
  </TR>
  <TR><TD VALIGN="TOP" COLSPAN=8>&nbsp;</TD>
  </TR>
  <TR><TD VALIGN="TOP" COLSPAN=8>
  <I><FONT SIZE=2><P ALIGN="CENTER">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></FONT></TD>
  </TR>
  <TR><TD VALIGN="TOP" COLSPAN=8>&nbsp;</TD>
  </TR>
  </TABLE>
  
  <I><FONT SIZE=2></I></FONT>
  <TABLE BORDER CELLSPACING=1 CELLPADDING=0 WIDTH=975>
  <TR><TD WIDTH="9%" VALIGN="TOP">
  <B><FONT SIZE=1><P>3 (a)<BR>
  </B></FONT></TD>
  <TD WIDTH="28%" VALIGN="TOP">
  <B><FONT SIZE=1><P>(b)</B></FONT></TD>
  <TD WIDTH="11%" VALIGN="TOP">
  <B><FONT SIZE=1><P ALIGN="CENTER">SEC USE ONLY</B></FONT></TD>
  <TD WIDTH="11%" VALIGN="TOP">
  <B><FONT SIZE=1><P>(c)</B></FONT></TD>
  <TD WIDTH="11%" VALIGN="TOP">
  <B><FONT SIZE=1><P>(d)</B></FONT></TD>
  <TD WIDTH="11%" VALIGN="TOP">
  <B><FONT SIZE=1><P>(e)</B></FONT></TD>
  <TD WIDTH="10%" VALIGN="TOP">
  <B><FONT SIZE=1><P>(f)</B></FONT></TD>
  <TD WIDTH="10%" VALIGN="TOP">
  <B><FONT SIZE=1><P>(g)</B></FONT></TD>
  </TR>
  <TR><TD WIDTH="9%" VALIGN="TOP">
  <B><FONT SIZE=1><P ALIGN="CENTER">Title of the<BR>
  Class of<BR>
  Securities<BR>
  To Be Sold</B></FONT></TD>
  <TD WIDTH="28%" VALIGN="TOP">
  <B><FONT SIZE=1><P ALIGN="CENTER"><BR>
  Name and Address of Each Broker Through Whom the<BR>
  Securities are to be Offered or Each Market Maker<BR>
  who is Acquiring the Securities</B></FONT></TD>
  <TD WIDTH="11%" VALIGN="MIDDLE">
  <B><FONT SIZE=1><P ALIGN="CENTER">Broker-Dealer<BR>
  File Number</B></FONT></TD>
  <TD WIDTH="11%" VALIGN="TOP">
  <B><FONT SIZE=1><P ALIGN="CENTER">Number of Shares<BR>
  or Other Units<BR>
  To Be Sold<BR>
  </B>(See instr. 3(c))</FONT></TD>
  <TD WIDTH="11%" VALIGN="TOP">
  <B><FONT SIZE=1><P ALIGN="CENTER">Aggregate<BR>
  Market<BR>
  Value<BR>
  </B>(See instr. 3(d))</FONT></TD>
  <TD WIDTH="11%" VALIGN="TOP">
  <B><FONT SIZE=1><P ALIGN="CENTER">Number of Shares<BR>
  or Other Units<BR>
  Outstanding<BR>
  </B>(See instr. 3(e))</FONT></TD>
  <TD WIDTH="10%" VALIGN="TOP">
  <B><FONT SIZE=1><P ALIGN="CENTER">Approximate<BR>
  Date of Sale<BR>
  </B>(See instr. 3(f))<BR>
  (MO. DAY YR.)</FONT></TD>
  <TD WIDTH="10%" VALIGN="TOP">
  <B><FONT SIZE=1><P ALIGN="CENTER">Name of Each<BR>
  Securities<BR>
  Exchange<BR>
  </B>(See instr. 3(g))</FONT></TD>
  </TR>
  <TR><TD WIDTH="9%" VALIGN="TOP">
  <FONT SIZE=2><P>Common<BR>
  Stock</FONT></TD>
  <TD WIDTH="28%" VALIGN="TOP">
  <FONT SIZE=2><P>Smith Barney<BR>
  69 Swift Street<BR>
  South Burlington, VT 05403</FONT></TD>
  <TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="11%" VALIGN="TOP">
  <FONT SIZE=2><P ALIGN="CENTER">11,655</FONT></TD>
  <TD WIDTH="11%" VALIGN="TOP">
  <FONT SIZE=2><P ALIGN="CENTER">$266,317</FONT></TD>
  <TD WIDTH="11%" VALIGN="TOP">
  <FONT SIZE=2><P ALIGN="CENTER">6,099,037</FONT></TD>
  <TD WIDTH="10%" VALIGN="TOP">
  <FONT SIZE=2><P ALIGN="CENTER">8/28/07</FONT></TD>
  <TD WIDTH="10%" VALIGN="TOP">
  <FONT SIZE=2><P ALIGN="CENTER">NASDAQ</FONT></TD>
  </TR>
  <TR><TD WIDTH="9%" VALIGN="TOP">
  <B><FONT SIZE=1><P ALIGN="CENTER"></P>
  <P ALIGN="CENTER">&nbsp;</P>
  <P ALIGN="CENTER">&nbsp;</B></FONT></TD>
  <TD WIDTH="28%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
  </TR>
  <TR><TD WIDTH="9%" VALIGN="TOP">
  <B><FONT SIZE=1><P ALIGN="CENTER">&nbsp;</P>
  <P ALIGN="CENTER">&nbsp;</B></FONT></TD>
  <TD WIDTH="28%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
  </TR>
  </TABLE>
  
  <FONT SIZE=2><P><BR>
  </P></FONT>
  <TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=975>
  <TR><TD WIDTH="43%" VALIGN="TOP" COLSPAN=3>
  <B><FONT SIZE=2><P>INSTRUCTIONS:</B></FONT></TD>
  <TD WIDTH="57%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
  </TR>
  <TR><TD WIDTH="3%" VALIGN="TOP">
  <FONT SIZE=2><P>1.</FONT></TD>
  <TD WIDTH="3%" VALIGN="TOP">
  <FONT SIZE=2><P>(a)</FONT></TD>
  <TD WIDTH="37%" VALIGN="TOP">
  <FONT SIZE=2><P>Name of issuer</FONT></TD>
  <TD WIDTH="3%" VALIGN="TOP">
  <FONT SIZE=2><P>3. </FONT></TD>
  <TD WIDTH="3%" VALIGN="TOP">
  <FONT SIZE=2><P>(a)</FONT></TD>
  <TD WIDTH="50%" VALIGN="TOP">
  <FONT SIZE=2><P>Title of the class of securities to be sold</FONT></TD>
  </TR>
  <TR><TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">
  <FONT SIZE=2><P>(b)</FONT></TD>
  <TD WIDTH="37%" VALIGN="TOP">
  <FONT SIZE=2><P>Issuer's I.R.S. Identification Number</FONT></TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">
  <FONT SIZE=2><P>(b)</FONT></TD>
  <TD WIDTH="50%" VALIGN="TOP">
  <FONT SIZE=2><P>Name and address of each broker through whom the securities are intended</FONT></TD>
  </TR>
  <TR><TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">
  <FONT SIZE=2><P>(c)</FONT></TD>
  <TD WIDTH="37%" VALIGN="TOP">
  <FONT SIZE=2><P>Issuer's S.E.C. file number, if any</FONT></TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="50%" VALIGN="TOP">
  <FONT SIZE=2><P>to be sold</FONT></TD>
  </TR>
  <TR><TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">
  <FONT SIZE=2><P>(d)</FONT></TD>
  <TD WIDTH="37%" VALIGN="TOP">
  <FONT SIZE=2><P>Issuer's address, including zip code</FONT></TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">
  <FONT SIZE=2><P>(c)</FONT></TD>
  <TD WIDTH="50%" VALIGN="TOP">
  <FONT SIZE=2><P>Number of shares or other units to be sold (if debt securities, give the aggregate</FONT></TD>
  </TR>
  <TR><TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">
  <FONT SIZE=2><P>(e)</FONT></TD>
  <TD WIDTH="37%" VALIGN="TOP">
  <FONT SIZE=2><P>Issuer's telephone number, including area code</FONT></TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="50%" VALIGN="TOP">
  <FONT SIZE=2><P>face amount)</FONT></TD>
  </TR>
  <TR><TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="37%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">
  <FONT SIZE=2><P>(d)</FONT></TD>
  <TD WIDTH="50%" VALIGN="TOP">
  <FONT SIZE=2><P>Aggregate market value of the securities to be sold as of a specified date within 10</FONT></TD>
  </TR>
  <TR><TD WIDTH="3%" VALIGN="TOP">
  <FONT SIZE=2><P>2.</FONT></TD>
  <TD WIDTH="3%" VALIGN="TOP">
  <FONT SIZE=2><P>(a)</FONT></TD>
  <TD WIDTH="37%" VALIGN="TOP">
  <FONT SIZE=2><P>Name of person for whose account the securities are to be sold</FONT></TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="50%" VALIGN="TOP">
  <FONT SIZE=2><P>days prior to the filing of this notice</FONT></TD>
  </TR>
  <TR><TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">
  <FONT SIZE=2><P>(b)</FONT></TD>
  <TD WIDTH="37%" VALIGN="TOP">
  <FONT SIZE=2><P>Such person's I.R.S. identification number, if such person is an</FONT></TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">
  <FONT SIZE=2><P>(e)</FONT></TD>
  <TD WIDTH="50%" VALIGN="TOP">
  <FONT SIZE=2><P>Number of shares or other units of the class outstanding, or if debt securities the face</FONT></TD>
  </TR>
  <TR><TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="37%" VALIGN="TOP">
  <FONT SIZE=2><P>entity</FONT></TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="50%" VALIGN="TOP">
  <FONT SIZE=2><P>amount thereof outstanding, as shown by the most recent report or statement</FONT></TD>
  </TR>
  <TR><TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">
  <FONT SIZE=2><P>(c)</FONT></TD>
  <TD WIDTH="37%" VALIGN="TOP">
  <FONT SIZE=2><P>Such person's relationship to the issuer (e.g., officer, director,</FONT></TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="50%" VALIGN="TOP">
  <FONT SIZE=2><P>published by the issuer</FONT></TD>
  </TR>
  <TR><TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="37%" VALIGN="TOP">
  <FONT SIZE=2><P>10% stockholder, or member of immediate family of any of the</FONT></TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">
  <FONT SIZE=2><P>(f)</FONT></TD>
  <TD WIDTH="50%" VALIGN="TOP">
  <FONT SIZE=2><P>Approximate date on which the securities are to be sold</FONT></TD>
  </TR>
  <TR><TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="37%" VALIGN="TOP">
  <FONT SIZE=2><P>foregoing)</FONT></TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">
  <FONT SIZE=2><P>(g)</FONT></TD>
  <TD WIDTH="50%" VALIGN="TOP">
  <FONT SIZE=2><P>Name of each securities exchange, if any, on which the securities are intended to be sold</FONT></TD>
  </TR>
  <TR><TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">
  <FONT SIZE=2><P>(d)</FONT></TD>
  <TD WIDTH="37%" VALIGN="TOP">
  <FONT SIZE=2><P>Such person's address, including zip code</FONT></TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="50%" VALIGN="TOP">&nbsp;</TD>
  </TR>
  </TABLE>
  
  <B><FONT SIZE=2><P ALIGN="CENTER"></P></B></FONT>
  <TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=975>
  <TR><TD VALIGN="TOP" COLSPAN=2>
  <B><FONT SIZE=2><P ALIGN="CENTER">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></FONT></TD>
  </TR>
  <TR><TD WIDTH="51%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="49%" VALIGN="TOP">
  <FONT SIZE=2><P ALIGN="RIGHT">SEC 1147 (01-04)</FONT></TD>
  </TR>
  </TABLE>
  
  <FONT SIZE=2></FONT>
  <TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=967>
  <TR><TD VALIGN="TOP">
  <B><FONT SIZE=2><P ALIGN="CENTER">TABLE I -- SECURITIES TO BE SOLD</B></FONT></TD>
  </TR>
  <TR><TD VALIGN="TOP">
  <I><FONT SIZE=2><P ALIGN="CENTER">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></FONT></TD>
  </TR>
  </TABLE>
  
  <B><FONT SIZE=1></B></FONT>
  <TABLE BORDER CELLSPACING=1 CELLPADDING=0 WIDTH=975>
  <TR><TD WIDTH="10%" VALIGN="TOP">
  <B><FONT SIZE=1><P ALIGN="CENTER">Title of<BR>
  the Class</B></FONT></TD>
  <TD WIDTH="9%" VALIGN="TOP">
  <B><FONT SIZE=1><P ALIGN="CENTER">Date you<BR>
  Acquired</B></FONT></TD>
  <TD WIDTH="21%" VALIGN="TOP">
  <B><FONT SIZE=1><P ALIGN="CENTER"><BR>
  Nature of Acquisition Transaction</B></FONT></TD>
  <TD WIDTH="21%" VALIGN="TOP">
  <B><FONT SIZE=1><P ALIGN="CENTER">Name of Person from Whom Acquired<BR>
  (If gift, also give date donor acquired)</B></FONT></TD>
  <TD WIDTH="15%" VALIGN="TOP">
  <B><FONT SIZE=1><P ALIGN="CENTER">Amount of <BR>
  Securities Acquired</B></FONT></TD>
  <TD WIDTH="8%" VALIGN="TOP">
  <B><FONT SIZE=1><P ALIGN="CENTER">Date of<BR>
  Payment</B></FONT></TD>
  <TD WIDTH="16%" VALIGN="TOP">
  <B><FONT SIZE=1><P ALIGN="CENTER"><BR>
  Nature of Payment</B></FONT></TD>
  </TR>
  <TR><TD WIDTH="10%" VALIGN="TOP" HEIGHT=75>
  <FONT SIZE=2><P ALIGN="CENTER"></P>
  <P ALIGN="CENTER">Common Stock</FONT></TD>
  <TD WIDTH="9%" VALIGN="TOP" HEIGHT=75>
  <FONT SIZE=2><P ALIGN="CENTER"></P>
  <P ALIGN="CENTER">8/28/07</FONT></TD>
  <TD WIDTH="21%" VALIGN="TOP" HEIGHT=75>
  <FONT SIZE=2>
  <P>Stock Option Exercise</FONT></TD>
  <TD WIDTH="21%" VALIGN="TOP" HEIGHT=75>
  <FONT SIZE=2>
  <P>Merchants Bancshares, Inc.</FONT></TD>
  <TD WIDTH="15%" VALIGN="TOP" HEIGHT=75>
  <FONT SIZE=2>
  <P ALIGN="CENTER">11,655</FONT></TD>
  <TD WIDTH="8%" VALIGN="TOP" HEIGHT=75>
  <FONT SIZE=2><P ALIGN="CENTER"></P>
  <P ALIGN="CENTER">8/28/07</FONT></TD>
  <TD WIDTH="16%" VALIGN="TOP" HEIGHT=75>
  <FONT SIZE=2>
  <P ALIGN="CENTER">Cash</FONT></TD>
  </TR>
  </TABLE>
  
  <FONT SIZE=2><P><BR>
  </P></FONT>
  <TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=974>
  <TR><TD WIDTH="14%" VALIGN="TOP">
  <B><FONT SIZE=2><P>INSTRUCTIONS:</B></FONT></TD>
  <TD WIDTH="86%" VALIGN="TOP">
  <FONT SIZE=2><P>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.</FONT></TD>
  </TR>
  <TR><TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="86%" VALIGN="TOP">&nbsp;</TD>
  </TR>
  <TR><TD VALIGN="TOP" COLSPAN=2>
  <FONT SIZE=2><P><hr size=6 color=2 noshade></FONT></TD>
  </TR>
  <TR><TD VALIGN="TOP" COLSPAN=2>
  <B><FONT SIZE=2><P ALIGN="CENTER">TABLE II -- SECURITIES SOLD DURING THE PAST 3 MONTHS</B></FONT></TD>
  </TR>
  <TR><TD VALIGN="TOP" COLSPAN=2>
  <I><FONT SIZE=2><P ALIGN="CENTER">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></FONT></TD>
  </TR>
  </TABLE>
  
  <B><FONT SIZE=2></B></FONT>
  <TABLE BORDER CELLSPACING=1 CELLPADDING=0 WIDTH=974>
  <TR><TD WIDTH="39%" VALIGN="TOP">
  <B><FONT SIZE=2><P ALIGN="CENTER"><BR>
  Name and Address of Seller</B></FONT></TD>
  <TD WIDTH="25%" VALIGN="TOP">
  <B><FONT SIZE=2><P ALIGN="CENTER"><BR>
  Title of Securities Sold</B></FONT></TD>
  <TD WIDTH="11%" VALIGN="TOP">
  <B><FONT SIZE=2><P ALIGN="CENTER"><BR>
  Date of Sale</B></FONT></TD>
  <TD WIDTH="14%" VALIGN="TOP">
  <B><FONT SIZE=2><P ALIGN="CENTER">Amount of<BR>
  Securities Sold</B></FONT></TD>
  <TD WIDTH="12%" VALIGN="TOP">
  <B><FONT SIZE=2><P ALIGN="CENTER"><BR>
  Gross Proceeds</B></FONT></TD>
  </TR>
  <TR><TD WIDTH="39%" VALIGN="TOP">
  <B><FONT SIZE=2><P ALIGN="CENTER"><BR>
  </B>N/A</P>
  <B><P ALIGN="CENTER"></B></FONT></TD>
  <TD WIDTH="25%" VALIGN="TOP">
  <FONT SIZE=2><P ALIGN="CENTER"><BR>
  N/A</P>
  <P ALIGN="CENTER"></FONT></TD>
  <TD WIDTH="11%" VALIGN="TOP">
  <FONT SIZE=2><P ALIGN="CENTER"><BR>
  N/A</P>
  <P ALIGN="CENTER"></FONT></TD>
  <TD WIDTH="14%" VALIGN="TOP">
  <FONT SIZE=2><P ALIGN="CENTER"><BR>
  N/A</P>
  <P ALIGN="CENTER"></FONT></TD>
  <TD WIDTH="12%" VALIGN="TOP">
  <FONT SIZE=2><P ALIGN="CENTER"><BR>
  N/A</P>
  <P ALIGN="CENTER"></FONT></TD>
  </TR>
  </TABLE>
  
  <FONT SIZE=2><P><BR>
  </P></FONT>
  <TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=974>
  <TR><TD VALIGN="TOP" COLSPAN=4>
  <FONT SIZE=2><P>REMARKS:</FONT></TD>
  </TR>
  <TR><TD WIDTH="3%" VALIGN="TOP">
  <FONT SIZE=2><P>(1)</FONT></TD>
  <TD WIDTH="97%" VALIGN="TOP" COLSPAN=3>
  <FONT SIZE=2><P>These shares were acquired between 1980 and 2005 through the Company's 401(K) plan (including the Company's former ESOP plan, which merged with and into the Company's 401(K) plan).</FONT></TD>
  </TR>
  <TR><TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="97%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
  </TR>
  <TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2>
  <B><FONT SIZE=2><P>INSTRUCTIONS: </B></FONT></TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="47%" VALIGN="TOP">
  <B><FONT SIZE=2><P>ATTENTION:</B></FONT></TD>
  </TR>
  <TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2>
  <FONT SIZE=2><P>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.</FONT></TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="47%" VALIGN="TOP">
  <I><FONT SIZE=2><P>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></FONT></TD>
  </TR>
  <TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="47%" VALIGN="TOP">&nbsp;</TD>
  </TR>
  <TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2>
  <FONT SIZE=2><P ALIGN="CENTER">August 22, 2007</FONT></TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="47%" VALIGN="TOP">
  <FONT SIZE=2><P ALIGN="CENTER">/s/ Lisa A. Razo, P.O.A. for Thomas S. Leavitt</FONT></TD>
  </TR>
  <TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2>
  <FONT SIZE=2><P><hr color=2 noshade></FONT></TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="47%" VALIGN="TOP">
  <I><FONT SIZE=2><P><hr color=2 noshade></I></FONT></TD>
  </TR>
  <TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2>
  <FONT SIZE=2><P ALIGN="CENTER">DATE OF NOTICE</FONT></TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="47%" VALIGN="TOP">
  <FONT SIZE=2><P ALIGN="CENTER">(SIGNATURE)</FONT></TD>
  </TR>
  <TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
  <TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
  <TD WIDTH="47%" VALIGN="TOP">&nbsp;</TD>
  </TR>
  <TR><TD VALIGN="TOP" COLSPAN=4>
  <I><FONT SIZE=2><P ALIGN="CENTER">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.<BR>
  Any copies not manually signed shall bear typed or printed signatures.</I></FONT></TD>
  </TR>
  </TABLE>
  
  <I><FONT SIZE=2></I></FONT>
  <TABLE BORDER CELLSPACING=1 CELLPADDING=0 WIDTH=974>
  <TR><TD VALIGN="TOP">
  <B><FONT SIZE=2><P ALIGN="CENTER">ATTENTION: Intentional misstatements or omission of facts constitute Federal Criminal Violations (See 18 U.S.C. 1001)</B></FONT></TD>
  </TR>
  </TABLE>
  
  <FONT SIZE=2></FONT>
  <TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=974>
  <TR><TD VALIGN="TOP">
  <FONT SIZE=2><P ALIGN="RIGHT">SEC 1147 (01-04)</FONT></TD>
  </TR>
  </TABLE>
  
  <FONT SIZE=2>
  <P>&nbsp;</P></FONT></BODY>
  </HTML>
metadata_documents: [{"type": "144", "sequence": "1", "filename": "merc-144_tl.htm", "description": "BODY OF FORM 144", "secsgml_size_bytes": 25558}]
text: UNITED STATES
  OMB APPROVAL
  SECURITIES AND EXCHANGE COMMISSION
  OMB Number:
  3235-0101
  Washington, D.C. 20549
  Expires:
  December 31, 2009
  Estimated average burden
  FORM 144
  hours per response . . . . .
  2.00
  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
  1 (d) ADDRESS OF ISSUER
  STREET
  CITY
  STATE
  ZIP CODE
  (e) TELEPHONE NO.
  AREA CODE
  NUMBER
  275 Kennedy Drive
  South Burlington
  VT
  05403
  (802)
  865-1838
  2 (a) NAME OF PERSON FOR WHOSE ACCOUNT
  THE SECURITIES ARE TO BE SOLD
  (b) IRS IDENT. NO.
  (c) RELATIONSHIP TO
  ISSUER
  (d) ADDRESS
  STREET
  CITY
  STATE
  ZIP CODE
  Thomas S. Leavitt
  Exec. VP
  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
  Smith Barney
  69 Swift Street
  South Burlington, VT 05403
  11,655
  $266,317
  6,099,037
  8/28/07
  NASDAQ
  INSTRUCTIONS:
  1.
  (a)
  Name of issuer
  3.
  (a)
  Title of the class of securities to be sold
  (b)
  Issuer's I.R.S. Identification Number
  (b)
  Name and address of each broker through whom the securities are intended
  (c)
  Issuer's S.E.C. file number, if any
  to be sold
  (d)
  Issuer's address, including zip code
  (c)
  Number of shares or other units to be sold (if debt securities, give the aggregate
  (e)
  Issuer's telephone number, including area code
  face amount)
  (d)
  Aggregate market value of the securities to be sold as of a specified date within 10
  2.
  (a)
  Name of person for whose account the securities are to be sold
  days prior to the filing of this notice
  (b)
  Such person's I.R.S. identification number, if such person is an
  (e)
  Number of shares or other units of the class outstanding, or if debt securities the face
  entity
  amount thereof outstanding, as shown by the most recent report or statement
  (c)
  Such person's relationship to the issuer (e.g., officer, director,
  published by the issuer
  10% stockholder, or member of immediate family of any of the
  (f)
  Approximate date on which the securities are to be sold
  foregoing)
  (g)
  Name of each securities exchange, if any, on which the securities are intended to be sold
  (d)
  Such person's address, including zip code
  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 (01-04)
  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
  8/28/07
  Stock Option Exercise
  Merchants Bancshares, Inc.
  11,655
  8/28/07
  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
  N/A
  N/A
  N/A
  N/A
  N/A
  REMARKS:
  (1)
  These shares were acquired between 1980 and 2005 through the Company's 401(K) plan (including the Company's former ESOP plan, which merged with and into the Company's 401(K) plan).
  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.
  August 22, 2007
  /s/ Lisa A. Razo, P.O.A. for Thomas S. Leavitt
  DATE OF NOTICE
  (SIGNATURE)
  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 (01-04)