MOUNTAIN NATIONAL BANCSHARES INC
EX-10.3 SUMMARY OF COMPENSATION AGREEMENTS
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<TYPE>EX-10.3
<SEQUENCE>2
<FILENAME>g12525exv10w3.htm
<DESCRIPTION>EX-10.3 SUMMARY OF COMPENSATION AGREEMENTS
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<TITLE>EX-10.3 SUMMARY OF COMPENSATION AGREEMENTS</TITLE>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.3</B>
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Director* Compensation Summary</B>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Meeting Fees</B>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors of Mountain National Bancshares, Inc. (the &#147;Company&#148;) are paid $650 for each Board
meeting attended. The Chairman of the Board receives a fee of $1,500 for each Board meeting
attended.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors are reimbursed for their expenses incurred in connection with their activities as
the Company&#146;s directors.
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Committee Meeting Fees</B>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each director receives $225 for each Executive Loan Committee meeting attended and $180 for
each other Board committee meeting attended.
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Equity Compensation</B>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each director is eligible to participate in the Company&#146;s Stock Option Plan.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing information is summary in nature. Additional information regarding director
compensation will be provided in the Company&#146;s proxy statement to be filed in connection with the
2008 annual meeting of the Company&#146;s shareholders.
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    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Includes directors that are also employees of the Company.</TD>
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Named Executive Officer Compensation Summary</B>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the current base salary paid to Dwight Grizzell, the Company&#146;s
President and Chief Executive Officer, Grace D. McKinzie, the Company&#146;s Executive Vice
President-Chief Lending Officer, and Michael Brown, the Company&#146;s Executive Vice President-Chief
Operating Officer, during the year ended December&nbsp;31, 2007.
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    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Executive Officer</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-bottom: 1px solid #000000">Current Salary</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-bottom: 1px solid #000000">2007 Cash</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">Dwight B. Grizzell, President</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">187,000</TD>
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    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">Grace D. McKinzie</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">150,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael Brown</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">150,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to their base salary, Mr.&nbsp;Grizzell and Ms.&nbsp;McKinzie are also eligible to:
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    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
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    <TD>Participate in the Company&#146;s cash bonus plan;</TD>
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    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
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    <TD>Participate in the Company&#146;s equity incentive programs, which currently
involves the award of stock options pursuant to the Company&#146;s Stock Option Plan; and</TD>
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<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Participate in the Company&#146;s broad-based benefit programs generally available
to its employees, including health, disability and life insurance programs and the
Company&#146;s 401(k) Plan.</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The foregoing information in summary in nature. Additional information regarding the named
executive officer compensation will be provided in the Company&#146;s proxy statement to be filed
in connection with the 2008 annual meeting of the Company&#146;s shareholders.
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