-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Mbkm8iR+SOqVGKSOMf8mtBhuLHLmdNMfPyoKOfu4HvcXNkn773vXI7QEt3hcV2zJ PtsjHY4YhGp/WhEhGOnRvg== 0000868268-97-000008.txt : 19970813 0000868268-97-000008.hdr.sgml : 19970813 ACCESSION NUMBER: 0000868268-97-000008 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970812 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: PAMET SYSTEMS INC CENTRAL INDEX KEY: 0000868268 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 042985838 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 001-10623 FILM NUMBER: 97656413 BUSINESS ADDRESS: STREET 1: 1000 MAIN ST CITY: ACTON STATE: MA ZIP: 01720 BUSINESS PHONE: 5082632060 MAIL ADDRESS: STREET 1: 1000 MIN STREET STREET 2: 1000 MIN STREET CITY: ACTON STATE: MA ZIP: 01720 10QSB 1 PAMET SYSTEMS 10-QSB FOR Q2 1997 U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________ FORM 10-QSB Mark one [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1997 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition period from _________ to _________ Commission File No. 1-10623 Pamet Systems, Inc. ____________________________________________________________________ (exact name of small business issuer as specified in its charter) Massachusetts 04-2985838 ____________________________________________________________________ (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 1000 Main Street, Acton, Massachusetts 01720 ____________________________________________________________________ (Address of principal executive offices) (Zip Code) Registrant's telephone number including area code (508) 263-2060 ______________ Check whether the issurer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act during the past 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ----- ----- State the number of shares outstanding of each of the issuer's classes of common equity, as of the close of the period covered by this report: Title of each class Number of shares outstanding ------------------- ----------------------------- Common stock 2,320,050 ($.01 par value) Transitional Small Business Disclosure Format YES NO X ------ ------ PAMET SYSTEMS, INC. INDEX TO FORM 10-QSB PAGE Part I - Financial Information Item 1 - Financial Statements Condensed Balance Sheets 1 June 30, 1997 and December 31, 1996 Condensed Statements of Operations 2 for the quarter ended June 30, 1997 and 1996 and six month period ended June 30, 1997 and 1996 Condensed Statement of Cash Flows 3-4 for the six months ended June 30, 1997 and 1996 Item 2 - Management's Discussion and Analysis of 6-8 Financial Condition or Plan of Operations Part II - Other Information Item 1 - Legal Proceedings 8 Item 2 - Changes in Securities 8 Item 3 - Defaults Upon Senior Securities 8 Item 4 - Submission of Matters to a Vote of 8 Security Holders Item 5 - Other Information 8 Item 6 - Exhibits and Reports on Form 8-K 8 Signature(s) 9 PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements PAMET SYSTEMS, INC. Condensed Balance Sheets June 30, December 31, 1997 1996 --------- ------------ CURRENT ASSETS (unaudited) Cash $ 45,968 $ 55,353 Accounts receivable, net of allowance for doubtful accounts of $22,000 771,000 602,672 Inventory 48,531 85,915 Prepaid expenses and other current assets 19,403 20,252 Receivable from Insurance Settlement 83,965 -- TOTAL CURRENT ASSETS 968,867 764,192 PROPERTY AND EQUIPMENT, net 897,854 918,442 RESTRICTED CASH 27,498 27,146 TOTAL ASSETS $1,894,219 $1,709,780 ========== ========== LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable $ 368,807 $ 314,729 Accrued expenses 113,294 107,134 Notes payable-related party 72,439 173,099 Deferred software maintenance revenue 86,858 231,918 Current portion of long-term debt 16,422 15,605 TOTAL CURRENT LIABILITIES 657,820 842,485 LONG TERM DEBT, less current portion 486,919 494,725 UNEARNED SUPPORT REVENUE 54,123 54,123 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock, $.01 par value, 1,000,000 shares authorized, none issued Common Stock, $.01 par value, 7,500,000 shares authorized; 2,320,050 issued and outstanding 23,201 21,023 Additional paid-in Capital 4,661,283 4,107,605 Accumulated deficit (3,989,127) (3,810,181) TOTAL STOCKHOLDERS EQUITY 695,357 318,447 TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $1,894,219 $1,709,780 ========== ==========
See accompanying "Notes to Financial Statements (Unaudited)"
Item 1 - Financial Statements PAMET SYSTEMS, INC. Statements of Operations (Unaudited) Three Months Ended Six Months Ended June 30, June 30, --------- --------- 1997 1996 1997 1996 Net sales $432,105 $759,321 $1,039,611 $997,525 Cost of product 249,937 262,781 508,154 336,572 ---------- ---------- ----------- ---------- 182,168 496,540 531,457 660,953 Operating expenses: Personnel costs 220,979 165,748 427,794 336,588 Rent, utilities and telephone 16,143 14,549 35,611 29,783 Travel and entertainment 33,838 12,434 52,640 22,503 Professional fees 46,843 18,964 65,857 28,954 Depreciation 14,238 12,885 27,567 25,332 Other operating expenses 63,757 56,954 105,349 88,919 --------- --------- --------- --------- Total operating expenses 395,798 281,534 714,818 532,079 ---------- ---------- ---------- ---------- Income (loss) from operations (216,630) 215,006 (183,361) (128,874) Interest Income (expense), Net (17,544) (21,933) (35,585) (37,081) Gain on Insurance Settlement 40,000 -- 40,000 -- Net Income (loss) $(191,174) $193,073 $(178,946) $91,793 ======= ======= ======= ====== Net Income (loss) per share $(.08) $.08 $(.08) $.04 ===== ==== ===== ==== Shares used in Computing 2,320,050 2,401,742 2,320,050 2,372,742 Earnings per Share
See accompanying "Notes to Financial Statements (unaudited)"
Item 1 - Financial Statements PAMET SYSTEMS, INC. Statements of Cash Flows (Unaudited) Six Months Ended June 30, 1997 June 30, 1996 ------------------------------------- Cash flows provided by (used in) operating activities: Net income/(loss) $ (178,946) $ 91,793 Adjustments to reconcile net income to net cash provided by operating activities: 27,567 25,332 Depreciation and amortization Gain on insurance settlement (40,000) -- Change in assets and liabilities: (Increase) Decrease in accounts receivable (168,328) (399,388) (Increase) Decrease in inventory 19,884 (24,277) (Increase) in prepaids and other current assets 849 13,939 (Increase) in other assets (352) (146) Increase in accounts payable 54,078 99,898 (Decrease) in deferred software maintenance revenue (145,060) (122,254) Increase (Decrease) in accrued expenses and other current liabilities 6,160 67,606 --------- --------- Total adjustments (245,202) (339,290) Net cash provided by (used in) operating activities (424,148) (247,497) Cash flows from investing activities: Expenditures for property and equipment (33,444) (6,766) --------- --------- Net cash used in investing activities $ (33,444) $ (6,766)
(continued on following page)
Item 1 - Financial Statements PAMET SYSTEMS, INC. Statements of Cash Flows (Unaudited) Six Months Ended June 30, 1997 June 30, 1996 -------------- -------------- Cash flows from financing activities: Payment of mortgage (6,989) (5,839) Net Change Note payable related party (100,660) 223,440 Issuance of Capital Stock 555,856 17,339 --------- --------- Net cash provided by financing activities 448,207 234,940 Net increase (decrease) in cash (9,385) (19,323) Cash and cash equivalents at 55,353 28,264 beginning of period Cash and cash equivalents at end of period $ 45,968 $ 8,941 ====== ===== Supplemental disclosure of cash flow information: Cash paid for interest: 40,695 $35,775 Supplemental disclosure of non-cash operating activities: Inventory lost on insurance settlement 17,500 -- Net book value of fixed assets lost on insurance settlement 26,465 --
See accompanying "Notes to Financial Statements (Unaudited)" PAMET SYSTEMS, INC. Notes to Condensed Financial Statements (Unaudited) Note (1) Statement Presentation In the opinion of the Company, the accompanying unaudited financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the financial position as of June 30, 1997 and the results of operations for the three month periods and changes in cash flows for the period then ended. There were no material unusual charges or credits to operations during the recently completed fiscal quarter. The results reported for the three month and six month periods ended June 30, 1997 are not necessarily indicative of the results of operations which may be expected for the entire year. Note (2) Mortgage on Corporate Training, Development and Headquarters Facility On April 21, 1992 the Registrant consummated an agreement with the Lexington Savings Bank of Lexington, MA. to mortgage the Registrant's development, training and headquarters facility, located at 1000 Main Street, Acton, Massachusetts. The original principal amount of the mortgage was $560,000. On September 21, 1996 the note was extended for a one year term with monthly payments determined according to a twenty-year amortization period of $5,499, including interest at 10.25%, is payable monthly. The remaining balance at June 30, 1997 was $503,341.48. The bank has required an interest bearing compensating balance account. On June 30, 1997 this account equaled $27,497.69. Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Overview The Registrant's net sales consist primarily of sales of software and turnkey computer systems, and support and update service fees. Revenues for the 6 month period ended June 30, 1997 increased 4.2% to $1,039,611 from $997,525 for the six month period ended June 30, 1996. Revenues decreased 43.1% to $432,105 for the three month period ended June 30, 1997 (the 1997 period) from $759,321 for the three month period ended June 30, 1996 (the 1996 period). Management believes that the decrease in revenue for 1997 period was associated with the cyclical nature of the market. Most of the Registrant's customers operate with a fiscal year that ends on June 30. The Registrant believes that most capital projects such as the funding of purchases of equipment such as the Registrant's products, are typically completed prior to the last quarter of the fiscal year. During the 1996 period, however, a Massachusetts state grant program focused on imaging and the beginning of the "COP MORE 95" portion of the "Violent Crime Control and Law Enforcement Act of 1994" (the 1994 Crime Bill) infused funding into the end of the year. In addition, during the 1996 period, one department was able to utilize a portion of the department's new facility construction funding to acquire the Registrant's PoliceServer product. In the third quarter of fiscal 1996 the Registrant conducted twelve sessions of its grant preparation seminars that assisted police agencies in preparing grant proposals. The second round of grant proposals related to the 1994 crime bill, COPS MORE 96, were submitted in the October 1996. The Department of Justice has begun to inform some of the Registrant's prospective customers of their awards. This round of awards combined with the 25% local matching funds could infuse up to $266 million into the Registrant's market. The Registrant's level of sales will continue to be reflective of the awards granted under the 1994 Crime Bill. There can be no assurance, however, as to when, if at all, these awards will result in sales to the Registrant. Three Months Ended March 31, 1997 vs. Three Months Ended March 31, 1996 Net sales decreased $327,216 or 43.1% to $432,105 for the 1997 period from $759,321 for the 1996 period. The decrease in total revenues is due to general lack of funding for the Registrant's products in the last quarter of most of the Registrant's customers' fiscal years. As stated above the 1996 period included significant revenue from state and federal grant programs and construction capital funding. During the 1997 period there were three ImageServer systems and two MobileServer systems sold compared to five ImageServer, five PoliceServer systems and five FireServer systems during the 1996 period. Support revenues increased 14.7% to $117,855 for the 1997 period from $102,745 for the 1996 period reflecting the increase in the customer base from the 1996 period. Cost of product decreased 4.9% or $12,844 to $249,937 for the 1997 period from $262,781 for the 1996 period reflecting the lower sales volume and the low margin third party system costs for a wireless network, live-scan fingerprinting and a jail records software included in a large integration sale in the Southeast region. Gross margin decreased to 42.2% for the 1997 period from 65.4% for the 1996 period. The reduction in margin is due to the higher percentage of sales of the lower margin MobileServer systems and the third party systems described above. Operating expenses increased $114,264 or 40.6% to $395,798 for the 1997 period compared to $281,534 for the 1996 period. Personnel costs increased 33.3% to 220,979 for the 1997 period compared to $165,748 for the 1996 period. The increase is due to the addition of resources necessary to execute the increased level of annual business including personnel in the support, training and marketing areas. During the 1997 period the Registrant also hired a new President and Chief Executive Officer. Rent, utilities and telephone increased 11.0% to $16,143 for the 1997 period from $14,549 for the 1996 period due primarily to the increased phone expense associated with remote sales and installations. Travel and entertainment expenses increased 172.1% to $33,838 for the 1997 period from $12,434 for the 1996 period. This increase reflects the increase in travel associated with a major project in the southeast. Professional fees increased 147.0% to $46,843 for the 1997 period from $18,964 for the 1996 period, primarily due to the increased use of legal services associated with the working capital loan agreement, a private placement of the Registrant's Stock, the annual meeting and employment agreements for the officers. Depreciation expense increased 10.5% to $14,238 for the 1997 period from $12,885 for the 1996 period due to the upgrading of some of the Registrant's computer systems. Other operating expenses increased 11.9% to $63,757 for the 1997 period from $56,954 for the 1996 period primarily due to marketing expenses, in-house equipment purchases and the 1997 Annual meeting expenses. These increases were partially offset by the reduced tax penalties and bad debt expense. Net interest expense for the 1997 period was $17,544 compared to $21,933 for the 1996 period. This reflects the decreased interest associated with the working capital loan. A gain on insurance settlement of $40,000 for the 1997 period reflects the accrued portion of an insurance settlement. The net loss for the 1997 period was $(191,174) or $(.08) per share compared to net profit of $193,073 or $.08 per share for the 1996 period. The loss is due primarily to reduced sales, the low margins associated with resale of third party products and the increased operating expenses. Six Months Ended June 30, 1997 vs. Six Months Ended June 30, 1996 Net sales for the six month period ended June 30, 1997 (the 1997 period) increased $42,086 or 4.2% to $1,039,611 from $997,525 for the six month period ended June 30, 1996 (the 1996 period). The increase in sales reflects a significant increase in the sales of the Registrant's MobileServer product offset by a decrease in the sales of its' PoliceServer and FireServer products. Support revenues increased 14.0% to $221,724 for the 1997 period from $195,188 for the 1996 period reflecting the increase in the customer base from the 1996 period. Cost of product increased 51.0% to $508,154 for the 1997 period from the 336,572 for the 1996 period reflecting the lower margin MobileServer systems and the third party sales of the jail records software, a live-scan fingerprinting system and the wireless network. Gross margin decreased to 51.1% for the 1997 period from 66.3% for the 1996 period. The decrease is due primarily to the increased number of the lower margin MobileServer system sales and the resale of the third party systems described above. Operating expenses increased $182,739 or 34.3% to $714,818 for the 1997 period compared to $532,079 for the 1996 period. Personnel costs increased 27.1% to $427,794 for the 1997 period from $336,588 for the 1996 period. This reflects the staffing increases in the operations and marketing areas, as well as the hiring of a new President and Chief Executive Officer. Rent, utilities and telephone expenses increased $5,828 or 19.6% to $35,611 for the 1997 period from $29,783 for the 1996 period. This increase is almost entirely associated with the increased sales and support costs outside the New England area. Travel and entertainment expenses increased 133.9% to $52,640 for the 1997 period from $22,503 for the 1996 period, reflecting the increased travel associated with training and installations in the Southeast region. Professional fees increased 127.5% to $65,857 for the 1997 period from $28,954 for the 1996 period due to the increase in the Registrant's use of legal services associated with establishing a line of credit loan, work associated with a private placement of the Registrant's stock, and employment agreements for the officers. Depreciation expense increased 8.8% to $27,567 for the 1997 period from $25,332 for the 1996 period reflecting the depreciation associated with the upgrades of some of the Registrant's computer equipment. Other operating expenses increased 18.5% to $105,349 for the 1997 period from $88,819 for the 1996 period. These increases reflect increased purchases of internal use equipment and annual report expenses that were partially offset by reduced bad debt expense and tax penalties. Net interest expense was $35,585 for the 1997 period compared to $37,081 for the 1996 period. This reduction reflects the reduced interest associated with working capital loans from a director. The net loss for the 1997 period was $(191,174) or $(.08) per share compared to a net income of $91,793 or $.04 per share for the 1996 period. The loss for the period was due to the reduced revenue combined with the low gross margins associated with MobileServer sales and the resale of large systems integrated into an installation in the southeast. Liquidity and Capital Resources The Registrant's working capital improved to $311,047 from a deficit of $(78,293) at December 31, 1996 due to the private placement of 200,000 shares of common stock which increased the cash and stockholder's equity by $550,000. Cash decreased to $45,968 at June 30, 1997 from $55,353 at December 31, 1996. Accounts receivable increased to $771,000 at June 30, 1997 from $602,672 at December 31, 1996. The Registrant is experiencing an increase in accounts receivable level that normally averages 60 days sales outstanding. All outstanding balances have been investigated and the overall level should return to a level below 60 days outstanding The Registrant's backlog was approximately $103,000 at June 30, 1997. On July 31, 1997 the backlog is approximately $315,000. The Registrant is using the infusion of cash to begin a process to increase its operational infrastructure to enable it to execute increased volume. Future product growth is expected to be balanced between all four of the Registrant's primary products (PoliceServer, FireServer, ImageServer, MobileServer) which make up an integrated suite of public safety applications. During the 1997 period the Registrant began to be notified by potential customers who had participated in the Registrant's grant writing seminars that the Department of Justice had awarded them grants associated with the "COPS MORE 96" portion of the Crime Bill. Many of these prospective customers will still have to proceed with a competitive bidding process as required by their respective state laws, consequently, there can be no assurance as to when, if at all, these awards will result in sales to the Registrant. The Registrant is continuing to consider projects to increase its cash position through business combinations, as well as capital raising alternatives. The Registrant continues to receive short term working capital commitments of up to $300,000 from Directors and Officers to support operations, if needed. The Registrant believes its existing backlog and working capital combined with its current loan commitments from directors and shareholders and current sales activities will be sufficient to ensure the continued operations through the year. As of June 30, 1997, the Registrant had accumulated approximately $3,900,000 and $2,100,000 in net operating loss carryforwards for federal and state income tax purposes respectively. The loss carryforwards expire in the year 2009. Under the Internal Revenue Code of 1986, as amended, the rate at which a corporation may utilize its net operating losses to offset its income for federal tax purposes is subject to specified limitations during periods after the corporation has undergone an "ownership change". It has been determined that an ownership change did take place at the time of the Registrant's initial public offering. However, the limitations on the loss carryforward exceed the accumulated loss at the time of the "ownership change". Thus there is no restriction on its use. Inflation Inflation has not had a significant impact on the Registrant's operations to date. Forward Looking Statements This Management's Discussion and Analysis of Financial condition and Results of Operations may include forward-looking statements that may or may not materialize. Additional information of factors that could potentially affect the Company's financial results may be found in the Company's filings with the Securities and Exchange Commission. PART II - OTHER INFORMATION Item 1 - Legal Proceedings None Item 2 - Changes in Securities On April 14, 1997 the Issuer sold 200,000 shares of Pamet Systems Common stock at a price of $2.75 per share for a total of $550,000 to one entity, which is an accredited investor as defined in Rule 501(a) under the Securities Act of 1933, as amended (the "Act"). The issuance was exempt from registration requirements of the Act pursuant to Section 4(2) thereof. Item 3 - Defaults Upon Senior Securities Not applicable. Item 4 - Submission of Matters to a note of Security Holders The Registrant held it 1997 Annual Meeting of Stockholders on May 30, 1997. At the Annual Meeting, Richard C. Becker and Arthur V. Josephson, Jr. were elected directors. The number of shares of Common Stock voted in favor of the election of each person was not less than 1,800,982 shares and 0 shares against. In addition the following other directors continued as such after the meeting: Laurence B. Berger, Dr. Stanley J. Robboy, Dr. Joel B. Searcy and Lee Spelke. Item 5 - Other Information Not applicable. Item 6 - Exhibits and Reports on Form 8-K a. Exhibits 3(ii) Pamet Systems, Inc. BYLAWS, Amended 5/30/97 27 Financial Date Schedule b. Reports on form 8-K - none 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 thereunto duly authorized Pamet Systems, Inc. _____________________ (Registrant) August 5, 1997 Richard C. Becker _______________________________ ______________________ Date Richard C. Becker Vice President Principal Financial Officer EX-3.(II) 2 PAMET SYSTEMS, INC. BYLAWS, AMENDED 5/30/97 BYLAWS OF PAMET SYSTEMS, INC. Table of Contents Page ARTICLE I: Articles of Organization 1 ARTICLE II: Offices 1 ARTICLE III: Fiscal Year 1 ARTICLE IV: Stockholders 1 Section 1: Annual Meetings 1 Section 2: Special Meetings 1 Section 3: Place of Meetings 2 Section 4: Notice of Meetings 2 Section 5: Quorum 2 Section 6: Action by Vote 2 Section 7: Voting 3 Section 8: Action by Consent 3 Section 9: Proxies 3 ARTICLE V: Directors 4 Section 1: Enumeration, Election, and Term of Office 4 Section 2: Powers 4 Section 3: Regular Meetings 4 Section 4: Special Meetings 4 Section 5: Notices 4 Section 6: Quorum 5 Section 7: Action by Consent 5 Section 8: Committee 5 Section 9: Meetings by Telecommunications 5 Section 10: Compensation 5 ARTICLE VI: Officers and Agents 6 Section 1: Enumeration, Qualification, Term 6 Section 2: Powers 6 Section 3: President (Vice President) 6 Section 4: Treasurer (Assistant Treasurer) 7 Section 5: Clerk (Assistant Clerk) 7 Section 6: Secretary 8 Section 7: Salaries 8 ARTICLE VII: Resignations, Removals and Vacancies 8 Section 1: Resignations 8 Section 2: Removals 8 Section 3: Vacancies 9 ARTICLE VIII: Indemnification of Directors and Others 9 ARTICLE IX: Stock 10 Section 1: Authorized Stock 10 Section 2: Issue of Authorized Unissued Stock 10 Section 3: Certificates of Stock 10 Section 4: Transfers 11 Section 5: Lost/Mutilated/Destroyed Certificates 11 Section 6: Transfer Agent and Registrar 11 Section 7: Setting Record Date/Closing Transfer 11 Section 8: Voting Shares by Certain Holders 12 ARTICLE X: Miscellaneous Provisions 12 Section 1: Execution of Papers 12 Section 2: Voting of Securities 12 Section 3: Corporate Seal 12 Section 4: Corporate Records 13 Section 5: Evidence of Authority 13 ARTICLE XI: Dividends 13 ARTICLE XII: Amendments 13 PAMET SYSTEMS, INC. BYLAWS ARTICLE I: Articles of Organization The name and purposes of the corporation shall be as set forth in the Articles of Organization. These Bylaws, the powers of the corporation and its Directors and Stockholders, and all matters concerning the conduct and regulation of the business of the corporation, shall be subject to such provisions in regard thereto, if any, as are set forth in the Articles of Organization. All references in these Bylaws to the Articles of Organization shall be construed to mean the Articles of Organization of the corporation as from time to time amended or restated. ARTICLE II: Offices The principal office of the corporation within the Commonwealth of Massachusetts shall be at: 1000 Main Street, Acton, MA 01720 The corporation may have such other offices, either within or without the Commonwealth as the Board of Directors may designate or as the business of the corporation may from time to time require. ARTICLE III: Fiscal Year Except as from time to time otherwise determined by the Directors, the fiscal year of the corporation shall in each year-end on December 31. ARTICLE IV: Stockholders Section 1: Annual Meetings. The Annual Meeting of the Stockholders shall be held on the first Tuesday in May unless otherwise fixed by the Board of Directors or stated in the notice of the meeting. The purposes for which the Annual Meeting is to be held, in addition to those prescribed by law, by the Articles of Organization or these Bylaws, may be specified by the Board of Directors or the President. If no Annual Meeting has been held on the date fixed above, a special meeting in lieu thereof may be held and such special meeting shall have for the purposes of these Bylaws or otherwise, all the force and effect of an annual meeting. Section 2: Special Meetings. A special meeting of the Stockholders may be called at any time by the Chairman of the Board of the Director, the President, or by a majority of the Directors acting by vote or by written instrument or instruments signed by them, and a special meeting of the Stockholders shall be called by the Clerk, or in the case of the death, absence, incapacity or refusal of the Clerk, by any other Officer, upon written application of one or more stockholders who hold at least one-tenth (1/10) part in interest of the stock entitled to vote at the meeting. Such call shall state the time, place and purposes of the meeting, but no call of a special meeting of the Stockholders shall be required if such notice of the meeting shall have been waived in writing (including a telegram) by every Stockholder entitled to notice thereof, or by his or her attorney thereunto authorized. Section 3: Place of Meetings. All meetings of the Stockholders shall be held at the principal office of The corporation in Massachusetts unless a different place within Massachusetts or, if permitted by the articles of Organization, elsewhere within the United States, is designated by the President, or by a majority of the Directors acting by vote or by written instrument or instruments signed by them and stated in the notice of meeting. Any adjourned session of any meeting of the Stockholders shall be held at such place within Massachusetts or elsewhere if permitted in the Articles of Organization, as is designated in the vote of adjournment. Section 4: Notice of Meetings. A written notice of the place, date and hour of all meetings of Stockholders, stating the purposes of the meeting shall be given at least seven (7) days before the meeting to each Stockholder entitled to vote thereat and to each Stockholder who is otherwise entitled by law or by the Articles of Organization to such notice, by leaving such notice with him or her or at his or her residence or usual place of business, or by mailing it, postage prepaid, and addressed to such Stockholder at his or her address as it appears in the records of the corporation. Such notice shall be given by the Clerk, or in case of the death, absence, incapacity or refusal of the Clerk, by any other officer or by a person designated either by the Clerk, by the person or persons calling the meeting or by the Board of Directors. Whenever notice of a meeting is required to be given a Stockholder under any provision of law, of The Articles of Organization, or of these Bylaws, a written waiver thereof, executed before or after the meeting by such stockholder or his attorney thereunto authorized, and filed with the records of the meeting, shall be deemed equivalent to such notice. Section 5: Quorum. At any meeting of Stockholders, a majority of the outstanding shares of the corporation entitled to vote, represented in person or by proxy, shall constitute a quorum at a meeting of Stockholders, except that if two or more classes or series of stock are entitled to vote on any matter as separate classes or series then in the case of each such class or series, a quorum for that matter shall consist of a majority of all shares of that class or series, represented in person or by proxy. If less than such numbers of the outstanding shares are represented at a meeting, a majority of the shares so represented may adjourn the meeting from time to time without further notice. At such adjourned meeting at which a quorum shall be present or represented, any business may be transacted which might have been transacted at the meeting as originally notified. The Stockholders present at a duly organized meeting may continue to transact business until adjournment, notwithstanding the withdrawal of enough Stockholders to leave less than a quorum. Section 6: Action by Vote. When a quorum is present at any meeting, a plurality of the votes properly cast for election to any office shall elect to such office and, upon any question other than an election to an office, shall decide the question, except when a larger vote is required by law, by the Articles of Organization or by these Bylaws. No ballot shall be required for any election or vote unless requested by a Stockholder present or represented at the meeting and entitled to vote in the election. Section 7: Voting. Stockholders entitled to vote shall have one vote, in person or by proxy, for each share of stock entitled to vote held by them as of the record date fixed by the Board of Directors, according to the records of the corporation, and a proportionate vote for a fractional share, unless otherwise provided by the Articles of Organization. The corporation shall not directly or indirectly, vote any share of its own stock. Unless otherwise provided by law, at each election for Directors stating the number and the class and the designation of the series, if any, of the shares held by each stockholder. Such certificate shall be signed by the President and the Treasurer. Such signatures may be facsimiles if the certificate is signed by a transfer agent, or by a registrar, other than a Director, officer or employee of the corporation. Every certificate for shares of stock subject to any restriction on transfer pursuant to the Articles of Organization, these Bylaws, or any agreement to which the corporation is a party, shall have the restrictions noted conspicuously on the certificate and shall also set forth on the face or back either the full text of the restriction or a statement of the existence of such restriction and a statement that the corporation will furnish a copy to the holder of such certificate upon written request and without charge. Every certificate issued when the corporation is authorized to issue more than one class or series of stock shall set forth on its face or back either the full text of the preferences, voting powers, qualifications and special and relative rights of the shares of each class and series authorized to be issued or a statement of the existence of such preferences, powers, qualifications and rights, and a statement that the corporation will furnish a copy thereof to the holder of such certificate upon written request and without charge. If the Board of Directors authorize the issuance of uncertificated shares, it shall authorize and empower a transfer every Shareholder entitled to vote at such election shall have the right to vote, in person or by proxy, the number of shares owned by him or her for as many persons as there are Directors to be elected and for whose election he or she has a right to vote. There shall be no cumulative voting. Section 8: Action by Consent. Any action required or permitted to be taken at any meeting of the Stockholders may be taken without a meeting if all Stockholders entitled to vote on the matter consent to the action in writing and the written consents are filed with the records of the meetings of Stockholders. Such consents shall be treated for all purposes as a vote at a meeting. Section 9: Proxies. Stockholders entitled to vote may vote either in person or by proxy in writing dated not more than six (6) months before the meeting named therein, which proxies shall be filed with the Clerk or other person responsible to record the proceedings of the meeting before being voted. Unless otherwise specifically limited by their terms, such proxies shall entitle the holders thereof to vote at any adjournment of such meeting but shall not be valid after the final adjournment of such meeting. A proxy with respect to stock held in the name of two or more persons shall be valid if executed by any one of them unless at or prior to exercise of the proxy The corporation receives a specific written notice to the contrary from any one 0 f them. A proxy purporting to be executed by or on behalf of a Stockholder shall be deemed valid unless challenged at or prior to its exercise and the burden of proving invalidity shall rest on the challenger. ARTICLE V: Directors Section 1: Enumeration. Election and Term of Office. The Board of Directors shall consist of not fewer than three (3) Directors. Each Director elected shall hold office until a successor is elected and qualified. Section 2: Powers. The Board of Directors, subject to any action at any time taken by such Stockholders as then have the right to vote, shall have the entire charge, control and management of the corporation, its property and business and may exercise all or any of its powers. Section 3: Regular Meetings. Regular meetings of the Board of Directors shall be held without other notice than this Bylaw, immediately following and at the same place as the annual meeting of Shareholders; they otherwise may be held at such times and places within or without the Commonwealth of Massachusetts as the Board of Directors may fix from time to time and, when so fixed, no notice thereof need be given, provided that any Director who is absent when such times and places are fixed shall be given notice as provided in Section S of this Article V, of the fixing of such times and places and provided further that any resolution related to the holding of regular meetings shall remain in force only until the next annual meeting of Stockholders. If in any year a meeting of the Board of Directors is not held at such time and place, any action to be taken may be taken at any later meeting of the Board of Directors with the same force and effect as if held or transacted at such meeting. Section 4: Special Meetings. Special meetings of the Directors may be called by the Chairman of the Board of Directors, the President or by the Treasurer or by the Clerk or by any two (2) Directors, and shall be held at the place designated in the call thereof. Section 5: Notices. Notice of any special meeting of the Directors shall be given by the Clerk or Secretary to each Director, by mailing to such Director, postage prepaid, or by telefaxing to such Director, and addressed to him or her at his or her address as registered on the books of the corporation, or if not so registered, at his or her last-known home or business address, a written notice of such meeting at least forty-eight (48) hours before the meeting or by delivering such notice to him or her at least twenty-four (24) hours before the meeting or by sending to him or her at least twenty-four (24) hours before the meeting by telefax or by prepaid telegram addressed to him or her at such address, notice of such meeting. If the Clerk or Secretary refuses or neglects for more than twenty-four (24) hours after receipt of a call to give notice of such special meeting, or if the offices of Clerk and Secretary are vacant or the Clerk and Secretary are absent from the Commonwealth of Massachusetts, or incapacitated, such notice may be given by the officer or one of the Directors calling the meeting. Notice need not be given to any Director if a written waiver of notice, executed by such Director before or after the meeting, is filed with the records of the meeting, or to any Director who attends the meeting without protesting prior thereto or at its commencement the lack of notice. A notice or waiver of notice of a Directors' meeting need not specify the purposes of the meeting. Section 6: Quorum. At any meeting of the Directors, a quorum for any election or for tile consideration of any question shall consist of a majority of the Directors then in office. Whether or not a quorum is present, any meeting may be adjourned from time to time by a majority of the votes properly cast upon the question, and the meeting may be held as adjourned without further notice. When a quorum is present at any meeting, the votes of a majority of the Directors present shall be requisite and sufficient for election to any office and shall decide any question brought before such meeting, except in any case where a different vote is required by law, by the Articles of Organization or by these Bylaws. Section 7: Action by Consent. Any action required or permitted to be taken at any meeting of the Directors may be taken without a meeting if all the Directors consent to the action in writing and the written consents are filed with the records of the meetings of the Directors. Such consent shall be treated for all purposes as a vote of the Directors at a meeting. Section 8: Committee. The Board of Directors, by vote of a majority of the Directors then in office, may elect from its number an Executive Committee or other committees and may delegate thereto some or all of its powers except those which by law, by the Articles of Organization, or by these Bylaws may not be delegated. Except as the Board of Directors may otherwise determine, any such committee may make rules for conduct of its business, but unless otherwise provided by the Board of Directors or in such rules, its business shall be conducted so far as possible in the same manner as is provided by these Bylaws for the Board of Directors. The Board of Directors may abolish any such committee at any time. Any committee to which the Board of Directors delegates any of its powers or duties shall keep records of its meetings and shall upon request report its action to the Board of Directors. The Board of Directors shall have power to rescind any action of any committee. Section 9: Meetings by Telecommunications. Members of the Board of Directors or any committee elected thereby may participate in a meeting of such Board or committee by means of a conference telephone or similar communications equipment by means of which all persons participating in a meeting can bear each other at the same time and participation by such means shall constitute presence in person at the meeting. Section 10: Compensation. Compensation shall be paid to Directors as fixed from time to time by vote of the Board. Nothing herein contained shall be construed to preclude any Director from serving the corporation in any other capacity and receiving compensation thereof. ARTICLE VI: Officers and Agents Section 1: Enumeration, Qualification and Term of Office. The officers of the corporation shall be a Chairman of the Board of Directors, a President, a Treasurer, a Clerk and such other Officers, if any, as the incorporators at their initial meeting, or the Directors from time to time, may in their discretion elect or appoint. The corporation may also have such agents, if any, as the incorporators at their initial meeting, or the Directors from time to time may in their discretion appoint. Any officer may be but none need be a Director or Stockholder. The Clerk shall be a resident of Massachusetts unless the corporation has a resident agent appointed for the purpose of service of process. Any two or more offices may be held by time same person. Any officer may be required by the Directors to give bond for the faithful performance of his or her duties, to the corporation in said amount and with such sureties as the Directors may determine. The premiums for such bonds may be paid by the corporation. The Chairman of the Board of Directors, President, the Treasurer and the Clerk shall be selected annually by the Directors at their first meeting following the annual meeting of the Stockholders. Other officers, if any, may be elected or appointed by the Board of Directors at said meeting or at any other time. Except as otherwise provided by law or by the Articles of Organization or by these Bylaws, the Chairman of the Board of Directors, the President, the Treasurer and the Clerk shall hold office until the first meeting of the Directors following the next annual meeting of the Stockholders and until their respective successors are chosen and qualified, and each other officer shall hold office until the first meeting of the Directors following the next annual meeting of the Stockholders and until their respective successors are chosen and qualified, unless a different period shall have been specified by the terms of election or appointment, or in each case until he or she sooner dies, resigns, is removed or becomes disqualified. Each agent shall retain his authority at the pleasure of the Directors. Section 2: Powers. Subject to law, to the Articles of Organization, and to the other provisions of these Bylaws, each officer shall have, in addition to the duties and powers herein set forth, such duties and powers as are commonly incident to his office and such duties and powers as the Directors may from time to time designate. Section 3: Chairman of the Board of Directors. The Chairman of the Board of Directors, if there be one, shall preside at all meetings of the stockholders and of the Board of Directors. Except where by law the signature of the President is required, the Chairman of the Board of Directors shall possess the same power as the President to sign all contracts, certificates and other instruments of the Corporation, which may be authorized by the Board of Directors. During the absence or disability of the President, the Chairman of the Board of Directors shall exercise all the powers and discharge all the duties of President. The Chairman of the Board of Directors shall also perform such other duties and may exercise such other powers as from time to time may be assigned to him by these by-laws or by the Board of Directors. Section 3A: President (and Vice Presidents). The President shall be the chief executive officer of the corporation and shall, subject to the direction of the Board of Directors, have general supervision and control of its business. Unless otherwise provided by the Board of Directors, he or she shall preside, when present, at all meetings of stockholders and of the Board of Directors. He may sign, with the Treasurer of the corporation, certificates for shares of the corporation, any deeds, mortgages, bonds, contracts, or other instruments which the Directors have authorized to be executed, except in cases where the signing and execution thereof shall be expressly delegated by the Directors or by the Bylaws to some other officer or agent of the corporation, or shall be required by law to be otherwise signed or executed; and in general, shall perform all duties incident to the office of President and such other duties as may be prescribed by the Directors from time to time. In the absence or disability of the President, his powers or duties shall be performed by the Chairman of the Board of Directors, if there shall be one, or if there shall be none, by the Vice president, if only one, or, if more than one, by the one designated for the purpose by the Directors. Any Vice President shall have such other powers and shall perform such other duties as the Board of Directors may from time to time designate. Section 4: Treasurer (and Assistant Treasurer). The Treasurer shall, subject to the direction of the Board of- Directors, have general charge of the financial affairs of the corporation and shall cause to be kept accurate books of account. He or she shall have custody of all funds, securities, and valuable documents of the corporation, except as the Board of Directors may otherwise provide; shall receive and give receipts for moneys due and payable to the corporation from any source whatsoever, and deposit all such moneys in the name of the corporation in such banks, trust companies or other depositories as shall be selected in accordance with these Bylaws, and in general perform all of the duties incident to the office of Treasurer and such other duties as from time to time may be assigned to him by the President or by the Directors. In the absence or disability of the Treasurer, his powers and duties shall be performed by the Assistant Treasurer, if only one, or, if more than one, by the one designated for the purpose by the Directors. Any Assistant Treasurer shall have such other powers and perform such other duties as the Board of Directors may from time to time designate. Section 5: Clerk (and Assistant Clerks). The Clerk shall keep a record of the meetings of Stockholders. In the event there is no Secretary or he or she is absent, the Clerk or an Assistant Clerk shall keep a record of the meetings of the Board of Directors. He or she shall see that all notices are duly given in accordance with the provisions of these Bylaws or as required by law, shall be custodian of the corporate records and of the seal of the corporation, and shall keep a register of the post office address of each Stockholder which shall be furnished to the Clerk by such Stockholder. Unless the Directors shall appoint a transfer agent and/or registrar or other officer or officers for the purpose, the Clerk shall be charged with the duty of keeping, or causing to be kept, accurate records of all stock outstanding, stock certificates issued and stock transfers. In the absence of the Clerk from any meeting of the Stockholders an Assistant Clerk if one be elected, otherwise a Temporary Clerk designated by the person presiding at the meeting shall perform the duties of the Clerk. An Assistant Clerk shall have such other powers and perform such other duties as the Board of Directors may from time to time designate. Section 6: Secretary. The Secretary, if one be elected or appointed, shall keep a record of the meetings of the Board of Directors. In the absence of the Secretary, the Clerk and any Assistant Clerk, a Temporary Secretary shall be designated by the person presiding at such meeting, to perform the duties of the Secretary. Section 7: Salaries. The salaries of the officers shall be fixed from time to time by the Directors, and no officer shall be prevented from receiving such salary by reason of the fact that he or she is also a Director of the corporation. ARTICLE VII: Resignations, Removals and Vacancies Section 1: Resignations. Any Director or officer may resign at any time by delivering his or her resignation in writing to the President or the Clerk or to a meeting of the Board of Directors. Such resignation shall take effect at such time as is specified therein, or if no such time is so specified, then upon delivery thereof, and the acceptance of the resignation shall not be necessary to make it effective. Section 2: Removals. Directors, including Directors elected by the Directors to fill vacancies in the Board, may be removed with or without assignment of cause by vote of the holders of the majority of the shares entitled to vote in the election of Directors, provided that the Directors elected by a particular class of Stockholders, may be removed only by the vote of the holders of a majority of the shares of the particular class of Stockholders entitled to vote for the election of such Directors. The Directors may by vote of a majority of the Directors then in office remove any Director for cause. The Directors may remove any officer from office with or without assignment of cause by vote of a majority of the Directors then in office. If cause is assigned for removal of any Director or officer, such Director or officer may be removed only after reasonable notice and opportunity to be heard before the body proposing to remove him. The Directors may terminate or modify the authority of any agent or employee. Except as The Directors may otherwise determine, no Director or officer who resigns or is removed shall have any right to any compensation as such Director or officer for any period following his or her resignation or removal, or any right to damages on account of such removal, whether his or her compensation be by month or by the year or otherwise, provided, however, that the foregoing provisions shall not prevent such Director or officer from obtaining damages for breach of any contract of employment legally binding upon the corporation. Section 3: Vacancies. Any vacancy in the Board of Directors, including a vacancy resulting from an enlargement of the Board, may be filled by vote of a majority of the Directors then in office or, in the absence of such election by the Directors, by the Stockholders at a meeting called for the purpose; provided however, that any vacancy resulting from action by the Stockholders may be filled by the Stockholders at The same meeting at which such action was taken by them. If the office of any officer becomes vacant, the Directors may elect or appoint a successor by vote of a majority of the Directors present at the meeting at which such election or appointment is made. Each such successor shall hold office for the unexpired term of his or her predecessor and until a successor shall be elected or appointed and qualified, or until he or she sooner dies, resigns, is removed or becomes disqualified. ARTICLE VIII: Indemnification of Directors and others The corporation shall, to the extent legally permissible, indemnify any person serving or who has served as a Director or officer of the corporation or at its request as a director, officer, trustee, employee or other agent of any organization in which the corporation owns shares or of which it is a creditor, against all liabilities and expenses, including amounts paid in satisfaction of judgments, in compromise or as fines and penalties, and counsel fees, reasonably incurred by him or her in connection with the defense or disposition of any action, suit or other proceeding, whether civil or criminal, in which he or she may be involved or with which he or she may be threatened, while serving or thereafter, by reason of being or having been such a director, officer, trustee, employee or agent, except with respect to any matter as to which he or she shall have been adjudicated in any proceeding not to have acted in good faith in the reasonable belief that such action was in the best interests of the corporation; provided however, that as to any matter disposed of by a compromise payment by such director, officer, trustee, employee or agent, pursuant to a consent decree on otherwise, no indemnification either for said payment or for any other expenses shall be provided unless: a. Such compromise shall be approved as in the best interest of the corporation, after notice that it involves such indemnification: (1) By a disinterested majority of the Directors then in office; or (2) by the holders of a majority of the outstanding stock at the time entitled to vote for Directors, voting as a single class, exclusive of any stock owned by any interested Director or officer or b. In the absence of action by disinterested Directors or Stockholders, there has been obtained at the request of a majority of the Directors then in office, an opinion in writing, of independent legal counsel to the effect that such Director or Officer appears to have acted in good faith in the reasonable belief that his or her action was in the best interest of the corporation. Expenses including counsel fees, reasonably incurred by any such director, officer, trustee, employee or agent in connection with the defense or disposition of any such action, suit or other proceeding may be paid from time to time by the corporation in advance of the final disposition thereof upon receipt of a statement signed by such director, officer, trustee, employee or agent promising to repay the amounts so paid by the corporation if it is ultimately determined that indemnification for such expenses is not authorized under this section. The right of indemnification hereby provided shall not be exclusive of or affect any other rights to which any such director, officer, trustee, employee or agent may be entitled. Nothing contained in this Article shall affect any rights to indemnification to which corporate personnel other than such directors, officers, trustees, employees or agents may be entitled by contract or otherwise under law. As used in this Article the terms "director", "officer", and "trustee", "employee" and "agent" include their respective heirs, executors and administrators, and an "interested" director, officer, trustee, employee or agent is one against whom in such capacity the proceedings in question or other proceedings on the same or similar grounds is then pending. ARTICLE IX: Stock Section 1: Stock Authorized. The total number of shares and the par value, if any, of each class of stock which the corporation is authorized to issue, and if more than one class is authorized, a description of each class with the preferences, voting powers, qualifications and special and relative rights and privileges as to each class and any series thereof, shall be as stated in the Articles of Organization. Section 2: Issue of Authorized Unissued Capital Stock. Any unissued capital stock from time to time authorized under the Articles of Organization may be issued by vote of the Directors. No such stock shall be issued unless the cash, so far as due, or the property, services or expenses for which it was authorized to be issued, has been actually received or incurred by, or conveyed or rendered to, the corporation, or is in its possession as surplus. Section 3: Certificates of Stock. The corporation may issue its shares in certificated or uncertificated form, as shall be determined by the Board of Directors in accordance with Massachusetts law. Stock certificates shall be in the form selected by the Board of Directors Agent to maintain a record of stockholders and the shares held by them and the corporation shall furnish to the stockholder a statement setting forth such restrictions on transfer, preferences, voting powers, qualifications and special and relative rights of the shares of each class and series." Section 4: Transfers. Subject to the restrictions, if any, imposed by the Articles organization, these Bylaws or any agreement to which the corporation is a party, shares of stock shall be transferred or' the books of the corporation only by the surrender to the corporation or its transfer agent of the certificate representing such shares properly endorsed or accompanied by a written assignment of such shares or by a written power of attorney to sell, assign, or transfer such shares, properly executed, with necessary transfer stamps affixed, and with such proof that the endorsement, assignment or power of attorney is genuine and effective as the corporation or its transfer agent may reasonably require. Except as may be otherwise required by law, the corporation shall be entitled to treat the record holder of stock as shown on its books as the owner of such stock for all purposes, including the payment of dividends and the right to vote with respect thereto, regardless of any equitable or other claim of interest or of any transfer, pledge or other disposition of such stock, until the shares have been transferred on the books of the corporation in accordance with the requirements of these Bylaws. It shall be the duty of each Stockholder to notify the corporation of his or her post office address. Section 5: Lost, mutilated or Destroyed Certificates. Except as otherwise provided by law, the Board Directors may determine the conditions upon which a new certificate of stock may be issued in place of any certificate alleged to have been lost, mutilated or destroyed. It may, in its discretion, require the owner of a lost, mutilated or destroyed certificate, or his or her legal representative, to give a bond, sufficient in its opinion, with or without surety, to indemnify the corporation against any loss or claim which may arise BV reason of the issue of a certificate in place of such lost, mutilated or destroyed stock certificate. Section 6: Transfer Agent and Registrar. The Board of Directors may appoint a transfer agent or a registrar or both for its capital stock or any class or series thereof, and require all certificates for such stock to bear the signature or facsimile thereof of any such transfer agent or registrar. Section 7: Setting Record Date and Closing Transfer Records. The Board of Directors may fix in advance a time not more than sixty (60) days before (a) the date of any meeting of the Stockholders or (b) the date for the payment of any dividend or the making of any distribution to Stockholders or (c) the last day on which the consent or dissent of Stockholders may be effectively expressed for any purpose, as the record date for determining the Stockholders having the right to notice and to vote at such meeting, or the right to receive such dividend or distribution, or the right to give such consent or dissent. If a record date is set, only Stockholders of record on the date shall have such right notwithstanding any transfer of stock on the records of the corporation after the record date. Without fixing such record date, the Board of Directors may close the transfer records of the corporation for all or any part of such sixty-day (60) period. If no record date is fixed and the transfer books are not closed, then the record date for determining Stockholders having the right to notice of or to vote at a meeting of Stockholders shall be at the close of business on the day next preceding the day on which notice is given, and the record date for determining Stockholders for any other purpose shall be at the close of business on the day on which the Board of Directors acts with respect thereto. Section 8: Voting of Shares by Certain Holders. Shares standing in the name of another corporation may be voted by such officer, agent or proxy as the Bylaws of such corporation may prescribe, or, in the absence of such provision, as the board of directors of such corporation may determine. Shares held by an administrator, executor, guardian or conservator may be voted by him or her, either in person or by proxy, without a transfer of such shares into his or her name. Shares standing in the name of a trustee may be voted by such trustee, either in person or by proxy, but no trustee shall be entitled to vote shares so held without a transfer of such shares into his or her name. Shares standing in the name of a receiver may be voted by such receiver, and shares held by or under the control of a receiver may be voted by such receiver, without the transfer thereof into his or her name if authority so to do be contained in an appropriate order of the court by which such receiver was appointed. A Stockholder whose shares are pledged shall be entitled to vote such shares until the shares have been transferred into the name of the pledge, and thereafter the pledge shall be entitled to vote the shares so transferred. Shares of its own stock belonging to the corporation shall not be voted, directly or indirectly, at any meeting and shall not be counted in determining the total number of outstanding shares at any given time. ARTICLE X: Miscellaneous Provisions Section 1: Execution of Papers. All deeds, leases, transfers, contracts, bonds, notes, releases, checks, drafts and other obligations authorized to be executed on behalf of the corporation shall be signed by the Chairman of the Board of Directors, the President or the Treasurer except as the Directors may generally or in particular cases otherwise determine. Section 2: Voting of Securities. Except as the Directors may generally or in particular cases otherwise specifically, the Chairman of the board of Directors, the President or the Treasurer may on behalf of the corporation vote or take any other action with respect to shares of stock or beneficial interest of any other corporation, or of any association, trust or firm, of which any securities are held by this corporation, and may appoint any person or persons to act as proxy or attorney-in-fact for the corporation, with or without power of substitution, at any meeting thereof. Section 3: Corporate Seal. The seal of the corporation shall be a circular die with the name of the corporation, the word "Massachusetts" and the year of its incorporation cut or engraved thereon, or shall be in such other form as the Board of Directors may from time to time determine. Section 4: Corporate Records. The original, or attested copies, of the Articles of Organization, Bylaws and records of all meetings of the incorporators and Stockholders, and the stock and transfer records which shall contain the names of all Stockholders and the record address and the amount of stock held by each, shall be kept in Massachusetts at the principal office of the corporation, or at an office of its: transfer agent or of its Clerk or of its Resident Agent. Said copies and records need not all be kept in the same office. They shall be available at all reasonable times to the inspection of any Stockholder for any proper purpose but not to secure a list of Stockholders for the purpose of selling said list or copies thereof or of using the same for a purpose other than in the interest of the applicant, as a Stockholder, relative to the affairs of the corporation. Section 5: Evidence of Authority. A certificate by the Clerk or Secretary or an Assistant or Temporary Clerk or Secretary as to any matter relative to the Articles of Organization, Bylaws, records of the proceedings of the incorporators, Stockholders, Board of Directors, or any committee of the Board of Directors, or stock and transfer records or as to any action taken by any person or persons as an officer or agent of the corporation, shall as to all persons who rely thereon in good faith be conclusive evidence of the matters so certified. ARTICLE XI: Dividends. The Directors may from time to time declare, and the corporation may pay, dividends on its outstanding shares in the manner and upon the terms and conditions provided by law, by the Articles of Organization and by these Bylaws. ARTICLE XII: Amendments. These Bylaws may be amended or repealed in whole or in part by the affirmative vote of the holders of a majority of the shares of each class of the capital stock at the time outstanding and entitled to vote at any annual or special meeting of Stockholders, provided that notice of the substance of the proposed amendment is stated in the notice of such meetings If authorized by the Articles of Organization, the Directors may make, amend or repeal the Bylaws, in whole or in part, except with respect to any provisions thereof which by law, the Articles of Organization or the Bylaws requires action by the Stockholders. Not later than the time of giving notice of the meeting of Stockholders next following the making, amending or repealing by the Directors of any Bylaw, notice thereof stating the substance of such change shall be given to all Stockholders entitled to vote on amending the Bylaws, No change in the date fixed in these Bylaws for the annual meeting of Stockholders may be made within sixty (60) days before the date fixed in these Bylaws, and in case of any change in such date, notice thereof shall be given to each Stockholder in person or by mailing notice to his or her last-known post office address at least twenty (20) days before the new date fixed for such meeting. Any Bylaw adopted, amended or repealed by the Directors may be repealed, amended or reinstated by the Stockholders entitled to vote on amending the Bylaws. EX-27 3 PAMET SYSTEMS Q2 1997 10-QSB
5 1 6-MOS DEC-31-1997 JUN-30-1997 45,968 0 711,000 22,000 48,531 968,867 1,416,254 518,400 1,894,219 657,820 0 23,210 0 0 695,357 1,894,219 432,105 432,105 249,937 0 395,798 0 17,544 (191,174) 0 (191,174) 0 0 0 (191,174) (0.08) (0.08)
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