8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report
(Date of Earliest Event Reported)
March 20, 2008
Merchants Bancshares, Inc.
(Exact Name of Registrant As Specified In Its Charter)
Delaware		0-11595	03-0287342
(State Or Other Jurisdiction Of Incorporation)		(Commission File No.)	(IRS Employer Identification No.)
275 Kennedy Drive			05403
So. Burlington, Vermont			(Zip Code)
(Address Of Principal Executive Offices)
		(802) 658-3400
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[ ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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Item 5.02. Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers; Compensatory Arrangements of Certain Officers.
On March 20, 2008, Merchants Bancshares, Inc. (the "Company") issued a press release, included as Exhibit 99.1 to this Current Report on Form 8-K, which is incorporated herein by reference, announcing that F. Sheldon Prentice would join the Company in the newly-created position of Senior Vice President and General Counsel, effective March 31, 2008.
Prior to joining the Company, Mr. Prentice will have served as Senior Vice President, General Counsel and Corporate Secretary of Chittenden Corporation and Chittenden Trust Company for over twenty-two years.
The Company intends to enter into an employment agreement with Mr. Prentice relative to his new position within the Company, the terms of which the Company expects to finalize on or before June 30, 2008.
Item 9.01. Financial Statements and Exhibits
(c).	The following exhibits are included with this Report:
	Exhibit No.	Description
	99.1	Press Release dated March 20, 2008
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
			MERCHANTS BANCSHARES, INC.

Date:	March 21, 2008	/s/ Michael R. Tuttle
		Michael R. Tuttle
		President & CEO
Exhibit 99.1

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EX-99

For Release March 20, 2008

Contact: Lisa Razo

(802) 865-1838

Merchants Bancshares, Inc. Announces New Executive Officer

SOUTH BURLINGTON, VT-Michael R. Tuttle, President and CEO of Merchants Bancshares, Inc. and its main operating subsidiary, Merchants Bank, announced that F. Sheldon Prentice, 57, of Montpelier, Vermont, will join Merchants as Senior Vice President and General Counsel on March 31, 2008 in a newly-created position. Mr. Prentice has been Senior Vice President, General Counsel and Corporate Secretary at Chittenden Corporation and Chittenden Trust Company for more than 22 years. He has been active in the Vermont Bankers Association, serving as Chair of the Government Relations Committee for a number of years and is currently on the Executive Committee. Mr. Prentice has also been active in the Vermont Bar Association, and is currently a member of the Board of Bar Managers. Prior to joining Chittenden in 1985, he was an Assistant Counsel for National Life Insurance Company in Montpelier. Preceding his position with National Life, Mr. Prentice was an associate in the large New York C ity firm of Davis Polk and Wardwell. He has also taught securities regulations as an adjunct professor at Vermont Law School.

Mr. Prentice grew up in Montpelier, graduating from Montpelier High in 1968. He attended Dartmouth College, graduating in 1972. Upon graduation from Dartmouth, Mr. Prentice taught U.S. history to American service personnel stationed in Bad Kreuznach, Germany. Returning in 1974, Mr. Prentice attended Fordham University Law School, graduating in 1977 with a Juris Doctor degree.

Mr. Prentice has been active in a number of civic organizations throughout the years. He currently is Chair of Green Up Vermont and a trustee of Vermont Legal Aid. Mr. Prentice is also a district enrollment officer for Dartmouth College, covering central Vermont. He has received the Dartmouth Alumni Award for distinguished service to Dartmouth and his professional career. Mr. Prentice was a long-time member of the Burlington Rotary Club and was a Paul Harris Fellow. A member of the Vermont and New York Bars, he also is a member of the Federal District Courts in Vermont, and the Eastern and Southern Districts of New York. Mr. Prentice resides in Montpelier with his wife, Barbara. The couple has three daughters.

Mr. Tuttle commented, "We are delighted to have Sheldon join the Merchants team. He is well qualified to serve in the role of General Counsel, given his extensive knowledge and experience with increasingly complex regulatory requirements, coupled with his unique understanding and appreciation of all things Vermont."

The continuing mission of Merchants Bank is to provide Vermonters with a state-wide community bank that blends a strong technology platform with a genuine appreciation for local markets. Merchants Bank fulfills this commitment through a branch-based system that includes

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36 community bank offices and 44 ATMs throughout Vermont, Personal Bankers dedicated to top-quality customer service and streamlined solutions, including: Personal Checking and Savings with Free Checking for Life^®, CashRewards Checking^sm , a low-cost Money Market Account, Free Online Banking and Bill Pay, Overdraft Coverage, Direct Deposit, Free Debit Card, and Free Automated Phone Banking; Business Banking with Business Online Banking and Bill Pay, Business Lines of Credit and Merchant Card Processing; Small Business Loans; Health Savings Accounts; Credit Cards; Flexible Certificates of Deposit; Vehicle Loans; Home Equity Credit; and Home Mortgages. Visit mbvt.com for more information. Merchants' stock is traded on the NASDAQ National Market system under the symbol MBVT. Member FDIC. Equal Housing Lender.

Some of the statements contained in this press release constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward-looking statements reflect Merchants' current views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause Merchants' actual results to differ significantly from those expressed in any forward-looking statement. Forward-looking statements should not be relied on since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond Merchants' control and which could materially affect actual results. The factors that could cause actual results to differ materially from current expectations include changes in general economic conditions in Vermont, changes in interest rates, changes in co mpetitive product and pricing pressures among financial institutions within Merchants' markets, and changes in the financial condition of Merchants' borrowers. The forward-looking statements contained herein represent Merchants' judgment as of the date of this report, and Merchants cautions readers not to place undue reliance on such statements. For further information, please refer to Merchants' reports filed with the Securities and Exchange Commission.

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