<PAGE>
 
                                                                 EXHIBIT 3(ii).1


                          AMENDED AND RESTATED BY-LAWS
                                        
                                       of
                                        
                             CHITTENDEN CORPORATION
                                        

                                   ARTICLE I
                                   ---------
                           Articles of Incorporation
                           -------------------------

     The name, location of the registered office, the registered agent, and the
purposes and powers of the Corporation shall be as set forth in the Amended and
Restated Articles of Incorporation (the "Articles of Incorporation") and these
By-Laws; the purposes and powers of the Corporation and of 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 Incorporation; and the
Articles of Incorporation are hereby made a part of these By-Laws.

     All references in these By-Laws to the Articles of Incorporation shall be
construed to mean the Articles of Incorporation of the Corporation as from time
to time amended.


                                   ARTICLE II
                                   ----------
                                  Stockholders
                                  ------------

     SECTION 1.  Annual Meeting.  The annual meeting of stockholders shall be
                 --------------                                              
held at the hour, date and place within or without the United States which is
fixed by the majority of the Board of Directors, the Chairman of the Board, if
one is elected, or the President, which time, date and place may subsequently be
changed at any time by a vote of the Board of Directors.  If no annual meeting
has been held within the earlier of six months after the end of the
Corporation's fiscal year or fifteen months after its last annual meeting of
stockholders, a special meeting in lieu thereof may be held, and such special
meeting shall have, for the purposes of these By-laws or otherwise, all the
force and effect of an annual meeting.  Any and all references hereafter in
these By-laws to an annual meeting or annual meetings also shall be deemed to
refer to any special meeting(s) in lieu thereof.

     SECTION 2.  Matters to be Considered at Annual Meetings.  At any annual
                 -------------------------------------------                
meeting of stockholders or any special meeting in lieu of an annual meeting of
stockholders (the "Annual Meeting"), only such business shall be conducted, and
only such proposals shall be acted upon, as shall have been properly brought
before such Annual Meeting.  To be considered as properly brought before an
Annual Meeting, business must be: (a) specified in the notice of meeting,

(b) otherwise properly brought before the meeting by, or at the direction of,
the Board of Directors, or (c) otherwise properly brought before the meeting by
any holder of record (both as of the time notice of such proposal is given by
the stockholder as set forth below and as of the record date for the Annual
Meeting in question) of any shares of capital stock of the Corporation 
<PAGE>
 
entitled to vote at such Annual Meeting who complies with the requirements set
forth in this Section 2.

     In addition to any other applicable requirements, for business to be
properly brought before an Annual Meeting by a stockholder of record of any
shares of capital stock entitled to vote at such Annual Meeting, such
stockholder shall: (i) give timely notice as required by this Section 2 to the
Secretary of the Corporation and (ii) be present at such meeting, either in
person or by a representative.  To be timely, a stockholder's notice must be
delivered to, or mailed to and received by, the Corporation at its principal
executive office not less than 75 days nor more than 120 days prior to the
anniversary date of the immediately preceding Annual Meeting (the "Anniversary
Date"); provided, however, that in the event the Annual Meeting is scheduled to
be held on a date more than 30 days before the Anniversary Date or more than 60
days after the Anniversary Date, a stockholder's notice shall be timely if
delivered to, or mailed to and received by, the Corporation at its principal
executive office not later than the close of business on the later of (1) the
75th day prior to the scheduled date of such Annual Meeting or (2) the 15th day
following the day on which public announcement of the date of such Annual
Meeting is first made by the Corporation.

     For purposes of these By-laws, "public announcement" shall mean: (a)
disclosure in a press release reported by the Dow Jones News Service, Associated
Press or comparable national news service, (b) a report or other document filed
publicly with the Securities and Exchange Commission (including, without
limitation, a Form 8-K), or (c) a letter or report sent to stockholders of
record of the Corporation at the time of the mailing of such letter or report.

     A stockholder's notice to the Secretary shall set forth as to each matter
proposed to be brought before an Annual Meeting: (i) a brief description of the
business the stockholder desires to bring before such Annual Meeting and the
reasons for conducting such business at such Annual Meeting, (ii) the name and
address, as they appear on the Corporation's stock transfer books, of the
stockholder proposing such business, (iii) the class and number of shares of the
Corporation's capital stock beneficially owned by the stockholder proposing such
business, (iv) the names and addresses of the beneficial owners, if any, of any
capital stock of the Corporation registered in such stockholder's name on such
books, and the class and number of shares of the Corporation's capital stock
beneficially owned by such beneficial owners, (v) the names and addresses of
other stockholders known by the stockholder proposing such business to support
such proposal, and the class and number of shares of the Corporation's capital
stock beneficially owned by such other stockholders, and (vi) any material
interest of the stockholder proposing to bring such business before such meeting
(or any other stockholders known to be supporting such proposal) in such
proposal.

     If the Board of Directors or a designated committee thereof determines that
any stockholder proposal was not made in a timely fashion in accordance with the
provisions of this Section 2 or that the information provided in a stockholder's
notice does not satisfy the information requirements of this Section 2 in any
material respect, such proposal shall not be presented for action at the Annual
Meeting in question.  If neither the Board of Directors nor such committee makes
a determination as to the validity of any stockholder proposal in the manner set
forth above, the presiding officer of the Annual Meeting shall determine whether
the stockholder proposal was 

                                       2
<PAGE>
 
made in accordance with the terms of this Section 2. If the presiding officer
determines that any stockholder proposal was not made in a timely fashion in
accordance with the provisions of this Section 2 or that the information
provided in a stockholder's notice does not satisfy the information requirements
of this Section 2 in any material respect, such proposal shall not be presented
for action at the Annual Meeting in question. If the Board of Directors, a
designated committee thereof or the presiding officer determines that a
stockholder proposal was made in accordance with the requirements of this
Section 2, the presiding officer shall so declare at the Annual Meeting and
ballots shall be provided for use at the meeting with respect to such proposal.

     Notwithstanding the foregoing provisions of this By-law, a stockholder
shall also comply with all applicable requirements of the Securities Exchange
Act of 1934, as amended (the "Exchange Act"), and the rules and regulations
thereunder with respect to the matters set forth in this Section 2, and nothing
in this Section 2 shall be deemed to affect any rights of stockholders to
request inclusion of proposals in the Corporation's proxy statement pursuant to
Rule 14a-8 under the Exchange Act.

     SECTION 3.  Special Meetings.  Special meetings of the stockholders may be
                 ----------------                                              
called by the President, the Board of Directors or the Secretary upon the
written request of the holders of not less than one-tenth of all the shares
entitled to vote at the meeting for any purpose.  Special meetings shall be held
at the registered office of the Corporation in Vermont, or at such other place
either within or without the State of Vermont, and on such date and hour as
shall be fixed by the President, the Board of Directors or the Secretary upon
written request of the holders of not less than one-tenth of all the shares
entitled to vote at the meeting and stated in the notice of the meeting, or in a
duly executed waiver therefor.  Only those matters set forth in the notice of
the special meeting may be considered or acted upon at a special meeting of
stockholders of the Corporation, unless otherwise provided by law.

     SECTION 4.  Notice of Meeting; Waiver; Adjournments.  Written notice of the
                 ---------------------------------------                        
place, date and hour at which an annual or special meeting is to be held shall
be given personally or put in the regular mails to each stockholder entitled to
vote thereat not less than ten (10) nor more than sixty (60) days prior to the
meeting by or at the direction of the President, the Secretary, or the other
persons calling the meeting. Notice of a special meeting shall state, in
addition to the foregoing information, the purpose for which it is called. A
written Waiver of Notice of a meeting, signed before or after the meeting by the
person or persons entitled to notice, shall be deemed equivalent to notice,
provided that such Waiver of Notice is inserted in the corporate minute book.
Such a writing need not state the purpose of the meeting for which it waives
notice. A stockholder's attendance at a meeting shall be a Waiver of Notice
unless the stockholder makes timely objection to holding the meeting or
transacting business at the meeting.

     The Board of Directors may postpone and reschedule any previously scheduled
Annual Meeting or special meeting of stockholders and any record date with
respect thereto, regardless of whether any notice or public disclosure with
respect to any such meeting has been sent or made pursuant to Section 2 of this
Article II or Section 3 of Article III hereof or otherwise.  In no event shall
the public announcement of an adjournment, postponement or rescheduling of any
previously scheduled meeting of stockholders commence a new time period for the
giving of a stockholder's notice under Section 2 of this Article II or Section 3
of Article III hereof or otherwise.

                                       3
<PAGE>
 
     When any meeting is convened, the presiding officer may adjourn the meeting
if (a) no quorum is present for the transaction of business, (b) the Board of
Directors determines that adjournment is necessary or appropriate to enable the
stockholders to consider fully information which the Board of Directors
determines has not been made sufficiently or timely available to stockholders,
or (c) the Board of Directors determines that adjournment is otherwise in the
best interests of the Corporation.

     SECTION 5.  Quorum.  Except as otherwise provided by law, the Articles of
                 ------                                                       
Incorporation or these By-Laws, at any meeting of the stockholders a quorum as
to any matter shall consist of a majority of the votes entitled to be cast on
the matter, except that where a separate vote by a class or classes (or series
thereof) or separate voting group is required by law, the Articles of
Incorporation or these By-Laws, a majority of the votes entitled to be cast by
such class or classes (or a series thereof) or a separate voting group shall
constitute a quorum with respect to that matter.  When a quorum is once present,
it shall not be broken by the subsequent withdrawal of any stockholders.  If the
required quorum shall not be present or represented at any meeting of the
stockholders, the stockholders present in person or represented by proxy and
entitled to vote thereat shall have the power to adjourn the meeting from time
to time, until a quorum shall be present or represented and the meeting may be
held as adjourned without further notice, except as provided in Section 4 of
this Article II.  At any 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 noticed.

     SECTION 6.  Voting and Proxies.  At any meeting of the stockholders every
                 ------------------                                           
stockholder having the right to vote shall be entitled to vote in person or by
proxy executed in writing by the stockholder or by his duly authorized attorney-
in-fact.  Proxies shall be filed with the Secretary of the meeting, or any
adjournment thereof, before being voted.  Unless otherwise provided therein, no
proxy shall be valid after eleven months from the date of its execution.  A
proxy with respect to shares held in the name of two or more persons shall be
valid if executed by 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 of
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.  Except as
otherwise provided by law, or by the Articles of Incorporation, each stockholder
of record on the record date for the meeting shall be entitled to one vote for
every share standing in his name on the books of the Corporation.  When a quorum
is present at any meeting, a plurality of the votes properly cast for election
of a person to any office shall elect such person to such office, and a majority
of the votes properly cast 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 Incorporation or by these By-Laws, and except that, where a separate
vote by a class or classes (or series thereof) or separate voting group is
required by law, the Articles of Incorporation or these By-Laws for any
question, a majority of the votes properly cast by such class or classes (or
series thereof) or separate voting group shall decide the question (except when
a larger vote is required by law, by the Articles of Incorporation or by these
By-Laws).

     SECTION 7.  Notice and Record Date of Adjourned Meetings.  When a meeting
                 --------------------------------------------                 
is adjourned to another time or place, notice need not be given of the adjourned
meeting if the time and place thereof are announced at the meeting at which the
adjournment is 

                                       4
<PAGE>
 
taken, except that if the adjournment is for more than 120 days from the date
fixed for the original meeting, or if after the adjournment a new record date is
fixed by the Board of Directors for the adjourned meeting, a notice in the
standard form shall be given to each stockholder of record entitled to vote at
the adjourned meeting. A determination of stockholders of record entitled to
notice of or to vote at a meeting of stockholders shall apply to any adjournment
of the meeting, unless the Board of Directors fixes a new record date for the
adjourned meeting.

     SECTION 8.  Record of Stockholders; Lists.  In order that the Corporation
                 -----------------------------                                
may determine the stockholders entitled to notice of or to vote at any meeting
of stockholders or any adjournment thereof, or entitled to receive payment of
any dividend, or in order to make a determination of stockholders for any other
proper purpose, the Board of Directors may fix a record date, which shall be not
more than seventy (70) nor less than ten (10) days before the date of such
meeting.  If no record date is fixed: (i) the record date for determining
stockholders entitled 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, or, if notice is waived, at the close of business on the day next
preceding the day on which the meeting is held and (ii) 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 adopts the resolution relating
thereto. After fixing a record date for a meeting, the Secretary of the
Corporation or his/her delegate shall prepare an alphabetical list of the names
of all of the Corporation's stockholders who are entitled to notice of a
stockholders' meeting. The list must be arranged by voting group (and within
each voting group by class or series of shares) and show the address of and the
number of shares held by each stockholder. Such stockholders' list must be made
available for inspection by any stockholder, beginning two business days after
notice of the meeting is given for which the list was prepared and continuing
through the meeting, at the Corporation's principal office or at a place
identified in the meeting notice in a city where the meeting will be held. A
stockholder of record entitled to vote at the meeting, his or her agent, or
attorney is entitled on written demand to inspect and, subject to applicable
law, to copy the list during regular business hours at his or her expense during
the period it is available for inspection. The Corporation shall make the
stockholders' list available at the meeting, and any stockholder of record
entitled to vote at the meeting, his or her agent, or attorney is entitled to
inspect the list at any time during the meeting or at any adjournment.

     SECTION 9.  Stock Ledger.  The stock ledger of the Corporation shall be the
                 ------------                                                   
only evidence as to who are the stockholders entitled to examine the stock
ledger, the list required by Section 8 of Article II of these By-Laws, the books
of the Corporation, or to vote in person or by proxy at any meeting of
stockholders.

     SECTION 10.  Stockholders' Right of Inspection.  Any stockholder is
                  ---------------------------------                     
entitled to inspect and copy, during regular business hours, at the
Corporation's principal office, or, if the Corporation's principal office is not
located in Vermont, the registered office, if the stockholder gives the
Corporation written notice of the stockholder's demand at least five business
days before the date on which the stockholder wishes to inspect and copy, the
following records: (1) the Articles or Restated Articles of Incorporation and
all 

                                       5
<PAGE>
 
amendments to them currently in effect, (2) the By-laws or Restated By-laws
and all amendments to them currently in effect, (3) resolutions adopted by the
Board of Directors creating one or more classes or series of shares, and fixing
their relative rights, preferences and limitations, if shares issued pursuant to
those resolutions are outstanding, (4) for the prior three calendar years, the
minutes of all stockholders' meetings and records of all action taken by
stockholders without a meeting, (5) all written communications to stockholders
generally within the previous three years, including the financial statements
furnished for the previous three years pursuant to applicable law, (6) a list of
the names and business addresses of the current directors and officers and (7)
the most recent annual report delivered to the Secretary of State under
applicable law. A stockholder of a corporation is entitled to inspect and copy,
during regular business hours at a reasonable location specified by the
Corporation, the accounting records of the Corporation for the prior three
calendar years and the record of stockholders if the stockholder provides the
Corporation written notice of his or her demand at least five business days
before the day on which he or she wishes to inspect and copy and (1) establishes
that his or her demand is made in good faith and for proper purpose, (2)
describes with reasonable particularity his or her purpose and the records he or
she desires to inspect and (3) the records are directly connected with his or
her purpose. A proper purpose shall mean a purpose reasonably related to such
person's interests as a stockholder. In every instance where an attorney or
other agent shall be the person who seeks to exercise the right to inspection,
the demand notice shall be accompanied by a power of attorney or such other
writing which authorizes the attorney or other agent to so act on behalf of the
stockholder. The demand notice shall be directed to the Corporation at its
registered office.

     SECTION 11.  Action Without a Meeting.  Any action required or permitted to
                  ------------------------                                      
be taken at a meeting of the stockholders of the Corporation may be taken
without a meeting, if a consent in writing setting forth the action so taken
shall be signed by all of the stockholders entitled to vote with respect to the
subject matter thereof, provided that such waiver of notice is inserted in the
corporate minute book.  Such consent shall have the same force and effect as a
unanimous vote of stockholders and may be stated as such in any articles or
documents filed with the Secretary of State.

     SECTION 12.  Presiding Officer.  The Chairman of the Board, if one is
                  -----------------                                       
elected, or if not elected or in his or her absence, the President, or the
President's delegate, shall preside at all Annual Meetings or special meetings
of stockholders and shall have the power, among other things, to adjourn such
meeting at any time and from time to time, subject to Sections 4 and 5 of this
Article II.  The order of business and all other matters of procedure at any
meeting of the stockholders shall be determined by the presiding officer.

                                  ARTICLE III
                                  -----------
                                   Directors
                                   ---------

     SECTION 1.  Powers.  The business and affairs of the Corporation shall be
                 ------                                                       
managed by or under the direction of the Board of Directors except as otherwise
provided by the Articles of Incorporation or required by law.

                                       6
<PAGE>
 
     SECTION 2.  Board of Directors; Number; and Terms. The authorized number of
                 -------------------------------------                          
directors of this Corporation (exclusive of directors, if any, to be elected by
holders of preferred stock of the Corporation) shall be determined by resolution
duly adopted by the Board of Directors, and may be increased or decreased,
within the limitations specified herein, from time to time by resolution duly
adopted by the Board of Directors; provided, however, that no decrease in the
number of directors shall have the effect of shortening the term of any 
incumbent director.  The President of the Corporation shall serve ex officio 
                                                                  -- -------
as a director.

     The Board of Directors shall be divided into three categories, designated
category I, category II, and category III, as nearly equal in number as
possible, and the term of office of directors of one category shall expire at
each annual meeting of the stockholders, and in all cases, as to each director
until a successor shall be elected and shall qualify, or until an earlier
resignation, removal from office, death or incapacity.  Notwithstanding the
foregoing, the President shall serve as a director during his term of office as
President and shall not be assigned to any category of directors.  Additional
directors resulting from an increase in the number of directors shall be
apportioned among the categories as equally as possible.  The initial term of
office of directors of category I shall expire at the first annual meeting of
stockholders following the adoption of this provision, that of category II shall
expire at the second annual meeting following adoption of this provision, that
of category III at the third annual meeting of stockholders following adoption
of this provision, and in all cases as to each director until a successor shall
be elected and shall qualify, or until an earlier resignation, removal from
office, death or incapacity.  At each annual meeting of stockholders following
the adoption of this provision, the number of directors equal to the number of
directors of the category whose terms expire at the time of such meeting (or, if
less, the number of directors properly nominated and qualified for election)
shall be elected to hold office until the third succeeding annual meeting of
stockholders after their election.

     SECTION 3.  Director Nominations.  Nominations of candidates for election
                 --------------------                                         
as directors of the Corporation at any Annual Meeting may be made only by, or at
the direction of, a majority of the Board of Directors.  Any holder of record
(both as of the time notice of such suggestion for nomination is given by the
stockholder as set forth below and as of the record date for the Annual Meeting
in question) of any shares of the capital stock of the Corporation entitled to
vote at such Annual Meeting may make suggestions for nominees by submitting the
nominee's name in writing to the Corporation and complying with the timing,
informational and other requirements set forth in this Section 3.  If there is
an Executive Committee, the Executive Committee shall consider the suggested
nominee and make a recommendation to the Board of Directors as to whether the
nomination is appropriate.  Any stockholder who has complied with the timing,
informational and other requirements set forth in this Section 3 and who seeks
to make such a suggestion for nomination, or his, her or its representative,
must be present in person at the Annual Meeting. Only persons nominated in
accordance with the procedures set forth in this Section 3 shall be eligible for
election as directors at an Annual Meeting.

     A stockholder's notice of a suggested nominee shall be timely if delivered
to, or mailed to and received by, the Secretary of the Corporation at the
Corporation's principal 

                                       7
<PAGE>
 
executive office not less than 75 days nor more than 120 days prior to the
Anniversary Date; provided, however, that in the event the Annual Meeting is
scheduled to be held on a date more than 30 days before the Anniversary Date or
more than 60 days after the Anniversary Date, a stockholder's notice shall be
timely if delivered to, or mailed and received by, the Secretary of the
Corporation at the Corporation's principal executive office not later than the
close of business on the later of (x) the 75th day prior to the scheduled date
of such Annual Meeting or (y) the 15th day following the day on which public
announcement of the date of such Annual Meeting is first made by the
Corporation.

     A stockholder's notice to the Secretary shall set forth as to each person
whom the stockholder suggests for nomination for election or re-election as a
director:  (1) the name, age, business address and residence address of such
person, (2) the principal occupation or employment of such person, (3) the class
and number of shares of the Corporation's capital stock which are beneficially
owned by such person on the date of such stockholder notice, and (4) the consent
of each suggested nominee to serve as a director if nominated and elected.  A
stockholder's notice to the Secretary shall further set forth as to the
stockholder giving such notice: (a) the name and address, as they appear on the
Corporation's stock transfer books, of such stockholder and of the beneficial
owners (if any) of the Corporation's capital stock registered in such
stockholder's name and the name and address of other stockholders known by such
stockholder to be supporting such suggested nominee(s), (b) the class and number
of shares of the Corporation's capital stock which are held of record,
beneficially owned or represented by proxy by such stockholder and by any other
stockholders known by such stockholder to be supporting such suggested
nominee(s) on the record date for the Annual Meeting in question (if such date
shall then have been made publicly available) and on the date of such
stockholder's notice, and (c) a description of all arrangements or
understandings between such stockholder and each suggested nominee and any other
person or persons (naming such person or persons) pursuant to which the
suggested nomination or nominations are to be made by such stockholder.

     If the Board of Directors or the Executive Committee determines that any
suggestion for nomination was not made in accordance with the terms of this
Section 3 in any material respect, then such suggestion shall not be considered
by the Board of Directors or the Executive Committee.  If the Board of Directors
or the Executive Committee determines that a suggestion for nomination was
made in accordance with the terms of this Section 3, such suggestion shall be
considered by the Board of Directors or the Executive Committee.

     Notwithstanding anything to the contrary in the second paragraph of this
Section 3, in the event that the number of directors to be elected to the Board
of Directors of the Corporation is increased and there is no public announcement
by the Corporation naming all of the nominees for director or specifying the
size of the increased Board of Directors at least 75 days prior to the
Anniversary Date, a stockholder's notice required by this Section 3 shall also
be considered timely, but only with respect to suggested nominees for any new
positions created by such increase, if such notice shall be delivered to, or
mailed to and received by, the Secretary of the Corporation at the Corporation's
principal executive office not later than the close of business on the 15th day
following the day on which such public announcement is first made by the
Corporation.

                                       8
<PAGE>
 
     No person shall be elected by the stockholders as a director of the
Corporation unless nominated in accordance with the procedures set forth in this
Section.  Election of directors at an Annual Meeting need not be by written
ballot, unless otherwise provided by the Board of Directors or presiding officer
at such Annual Meeting.  If written ballots are to be used, ballots bearing the
names of all the persons who have been nominated for election as directors at
the Annual Meeting in accordance with the procedures set forth in this Section
shall be provided for use at the Annual Meeting.

     SECTION 4.  Quorum and Voting.  A majority of the total number of directors
                 -----------------                                              
shall constitute a quorum for the transaction of business, but if less than a
quorum is present at a meeting, a majority of the directors present may adjourn
the meeting from time to time, and a meeting may be held as adjourned without
further notice, except as provided in Section 9 of this Article III.  Any
business which might have been transacted at the meeting as originally noticed
may be transacted at such adjourned meeting at which a quorum is present.  The
vote of the majority of the directors present at a meeting at which a quorum is
present shall be the act of the Board of Directors except as these By-Laws shall
otherwise require.

     SECTION 5.  Resignation.  Any director may resign at any time upon delivery
                 -----------                                                    
of his resignation in writing to the Chairman, President, Secretary or Board of
Directors.  Such resignation shall be effective upon receipt unless specified to
be effective at some other time.

     SECTION 6.  Committees.  The Board of Directors may, by resolution passed
                 ----------                                                   
by a  majority of the whole board, designate one or more committees, including
an Executive Committee, and appoint members of the Board of Directors to serve
on them.  Each committee must have two or more members, who serve at the
pleasure of the Board of Directors. The Board of Directors may designate one or
more directors as alternate members of any such committee who may replace any
absent or disqualified member at any meeting of the committee. If no such
alternate members have been designated for such a committee, the members thereof
present at any meeting and not disqualified from voting whether or not he/she or
they constitute a quorum, may unanimously appoint another member of the Board of
Directors to act at the meeting in the place of any absent or disqualified
member. Any such committee, to the extent provided in the resolution of the
whole Board of Directors which establishes it and permitted by Vermont law,
shall have and may exercise the powers of the Board of Directors in the
management of the business and affairs of the Corporation and may authorize the
seal of the Corporation to be affixed to any papers which may require it. Any
director may be a member of more than one committee. The procedures to be
followed by such committees with respect to quorum, voting and other such
matters shall be the same as those specified for meetings 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 report its action to the Board of Directors.
The Board of Directors shall have power to rescind any action of any committee,
to the extent permitted by law, but no such rescission shall have retroactive
effect.

     SECTION 7.  Telephone Meetings and Written Consents.  Any action required
                 ---------------------------------------                      
or permitted to be taken at any meeting of the Board of Directors or committees
thereof may be taken by telephone conference call, between at least a majority
of the directors, or may also 

                                       9
<PAGE>
 
be taken without a meeting if all members of the board or committee, as the case
may be, consent to such action in writing and the writing or writings are filed
in the minute book of the board or committee.

     SECTION 8.  Vacancies and Newly-Created Directorships.  Subject to the
                 -----------------------------------------                 
rights, if any, of the holders of any series of preferred stock to elect
directors and to fill vacancies in the Board of Directors relating thereto, if
any vacancies occur on the Board of Directors by reason of the death,
immediately effective resignation, retirement or removal from office of any
director or resulting from any increase in the number of directors, all the
directors then in office, although less than a quorum, may by a majority vote
choose a successor or successors or the stockholders, with a quorum, may by a
majority vote choose a successor or successors.  If the vacancy was held by a
director elected by a voting group of stockholders, only holders of shares of
that voting group are entitled to vote to fill a vacancy if it is filled by the
stockholders.  Any director appointed in accordance with this Section shall hold
office for the remainder of the full term of the class of directors in which the
new directorship was created or the vacancy occurred and until such director's
successor shall have been duly elected and qualified or until his or her earlier
resignation or removal.  Subject to the rights, if any, of the holders of any
series of preferred stock to elect directors, when the number of directors is
increased or decreased, the Board of Directors shall determine the class or
classes to which the increased or decreased number of directors shall be
apportioned; provided, however, that no decrease in the number of directors
shall shorten the term of any incumbent director. In the event of a vacancy in
the Board of Directors, the remaining directors, except as otherwise provided by
law, may exercise the powers of the full Board of Directors until the vacancy is
filled. In the event that one or more directors tenders a resignation from the
board effective at a future date, the prospective vacancy or vacancies may be
filled before the vacancy occurs but the new director may not take office until
the vacancy occurs.

     SECTION 9.  Place, Time and Notice of Meetings.  The directors may hold
                 ----------------------------------                         
their meeting in such place or places, within and without the State of Vermont,
as the Board of Directors may determine from time to time.  The Board of
Directors shall meet each year either immediately before or after the Annual
Meeting, for the purpose of organization, election of officers, and
consideration of any other business that may properly come before the meeting.
No notice of any kind to either old or new members of the Board of Directors for
this annual meeting shall be necessary.  Other regular meetings of the Board of
Directors may be held at such time, date and place as the Board of Directors may
by resolution from time to time determine without notice other than such
resolution.  Special meetings of the Board of Directors may be called, orally or
in writing, by or at the request of a majority of the directors, the Chairman of
the Board, if one is elected, or the President.  The person calling any such
special meeting of the Board of Directors may fix the time, date and place
thereof.  Notice of the time, date and place of all special meetings of the
Board of Directors shall be given to each director by the Secretary or an
Assistant Secretary, or in the case of the death, absence, incapacity or refusal
of such persons, by the Chairman of the Board, if one is elected, or the
President or such other officers as designated by the Chairman of the Board, if
one is elected, or the President.  Notice of any special meeting of the Board of
Directors shall be given to each director in person or by telephone, telex,
telecopy or other written form 

                                       10
<PAGE>
 
of electronic communication, or by telegram sent to his/her business or home
address at least 48 hours in advance of the meeting, or by written notice mailed
to his/her business or home address at least 72 hours in advance of the meeting.
Such notice shall be deemed to be delivered when hand delivered to such address,
read to such director by telephone, dispatched or transmitted if telexed or
telecopied, when delivered to the telegraph company if sent by telegram, or
deposited in the mail so addressed, with postage thereon prepaid if mailed.

     When any Board of Directors meeting, either regular or special, is
adjourned for thirty (30) days or more, notice of the adjourned meeting shall be
given as in the case of an original meeting.  It shall not be necessary to give
any notice to the date, time or place of any meeting adjourned for less than
thirty (30) days or of the business to be transacted thereof, other than an
announcement at the meeting at which such adjournment is taken of the date, time
and place to which the meeting is adjourned.

     A written waiver of notice signed either before or after a meeting by a
director and filed with the minutes or corporate records shall be deemed to be
equivalent to notice of the meeting.  The attendance of a director at a meeting
shall constitute a waiver of notice for such meeting, except where a director
attends a meeting for the express purpose of objecting at the beginning of the
meeting to the transaction of any business because such meeting is not lawfully
called or convened.  Except as otherwise required by law, by the Articles of
Incorporation or by these By-laws, neither the business to be transacted at, nor
the purpose of, any meeting of the Board of Directors need be specified in a
notice or waiver of notice of such meeting.

     SECTION 10.  Chairman of the Meeting.  The President of the Corporation, if
                  -----------------------                                       
present and acting, shall preside at all meetings of the Board of Directors
unless the Chairman of the Board is present; otherwise, a director chosen by a
majority of the Board of Directors at the meeting shall preside.

     SECTION 11.  Compensation of Directors.  Directors shall receive such
                  -------------------------                               
compensation for their services as shall be determined by a majority of the
Board of Directors; provided, directors who are serving the Corporation as
employees and who receive compensation for their services as such, shall not
receive any salary or other compensation for their services as directors of the
Corporation.

     SECTION 12.  Retirement.  No person shall be eligible for election as a
                  ----------                                                
director after he or she has reached the age of 70 years.  When a director
reaches the age of 70 years, he or she shall be entitled to serve until the date
of the Annual Meeting of the Corporation next following his or her 70th
birthday, but shall not thereafter be eligible for re-election.

                                   ARTICLE IV
                                   ----------
                                    Officers
                                    --------

     SECTION 1.  Enumeration.  The officers of the Corporation shall consist of
                 -----------                                                   
a President, a Secretary and such other officers, including, without limitation,
a Chairman of the Board of Directors, a Chief Executive Officer, a Chief
Financial Officer, a Treasurer and 

                                       11
<PAGE>
 
one or more Vice Presidents (including Executive Vice Presidents or Senior Vice
Presidents), Assistant Vice Presidents, Assistant Treasurers and Assistant
Secretaries, as the Board of Directors may determine.

     SECTION 2.  Election.  At the regular annual meeting of the Board of
                 --------                                                
Directors preceding or following the Annual Meeting, the Board of Directors
shall elect the President and the Secretary.  Other officers may be elected by
the Board of Directors at such regular annual meeting of the Board of Directors
or at any other regular or special meeting.

     SECTION 3.  Qualification.  No officer need be a stockholder or a director.
                 -------------       
Any person may occupy more than one office of the Corporation at any time,
except the offices of President and Secretary must be held by different people.
Any officer may be required by the Board of Directors to give bond for the
faithful performance of his or her duties in such amount and with such sureties
as the Board of Directors may determine.

     SECTION 4.  Tenure.  Except as otherwise provided by the Articles of
                 ------                                                  
Incorporation or by these By-laws, each of the officers of the Corporation shall
hold office until the regular annual meeting of the Board of Directors preceding
or following the next Annual Meeting and until his or her successor is elected
and qualified or until his or her earlier resignation or removal.

     SECTION 5.  Resignation.  Any officer may resign by delivering his or her
                 -----------                                                  
written resignation to the Corporation addressed to the President or the
Secretary, and such resignation shall be effective upon delivery unless it is
specified to be effective at some other time or upon the happening of some other
event.

     SECTION 6.  Removal.  Except as otherwise provided by law, the President or
                 -------                                                        
the Board of Directors may remove any officer with or without cause.  Neither
notice nor a hearing need be given to any officer proposed to be so removed.

     SECTION 7.  Absence or Disability.  In the event of the absence or
                 ---------------------                                 
disability of any officer, the Board of Directors may designate another officer
to act temporarily in place of such absent or disabled officer.

     SECTION 8.  Vacancies.  Any vacancy in any office may be filled for the
                 ---------                                                  
unexpired portion of the term by the Board of Directors.

     SECTION 9.  President.  The President shall, subject to the direction of
                 ---------                                                   
the Board of Directors, have general supervision and control of the
Corporation's business.  If there is no Chairman of the Board or if he or she is
absent, the President or the President's delegate shall preside, when present,
at all meetings of stockholders and of the Board of Directors.  The President
shall have such other powers and perform such other duties as the Board of
Directors may from time to time designate.

     SECTION 10.  Chairman of the Board.  The Chairman of the Board, if one is
                  ---------------------                                       
elected, shall preside, when present, at all meetings of the stockholders and of
the Board of Directors.  

                                       12
<PAGE>
 
The Chairman of the Board shall have such other powers and shall perform such
other duties as the Board of Directors may from time to time designate.

     SECTION 11.  Chief Executive Officer.  The Chief Executive Officer, if one
                  -----------------------                                      
is elected, shall have such powers and shall perform such duties as the Board of
Directors may from time to time designate.

     SECTION 12.  Chief Financial Officer.  The Chief Financial Officer, if one
                  -----------------------                                      
is elected, shall have such powers and shall perform such duties as the
President may from time to time designate.

     SECTION 13.  Treasurer and Assistant Treasurers.  The Treasurer shall,
                  ----------------------------------                       
subject to the direction of the President and except as the President may
otherwise provide, have general charge of the financial affairs of the
Corporation and shall cause to be kept accurate books of account.  The Treasurer
shall have custody of all funds, securities, and valuable documents of the
Corporation.  He or she shall have such other duties and powers as may be
designated from time to time by the Board of Directors or the President.

     Any Assistant Treasurer shall have such powers and perform such duties as
the Board of Directors or the President may from time to time designate.

     SECTION 14.  Vice Presidents and Assistant Vice Presidents.  Any Vice
                  ---------------------------------------------           
President (including any Executive Vice President or Senior Vice President) and
any Assistant Vice President shall have such powers and shall perform such
duties as the Board of Directors or the President may from time to time
designate.

     SECTION 15.  Secretary and Assistant Secretaries.  The Secretary shall
                  -----------------------------------                      
record all the proceedings of the meetings of the stockholders and the Board of
Directors (including the Executive Committee and other committees designated
from time to time by the Board of Directors) in books kept for that purpose.  In
his or her absence from any such meeting, a temporary secretary chosen at the
meeting or someone who has routinely recorded the minutes of such meeting shall
record the proceedings thereof.  The Secretary shall have responsibility for
authenticating records of the Corporation.  The Secretary shall have charge of
the stock ledger (which may, however, be kept by any transfer or other agent of
the Corporation).  The Secretary shall have custody of the seal of the
Corporation, and the Secretary, or an Assistant Secretary, shall have authority
to affix it to any instrument requiring it, and, when so affixed, the seal may
be attested by his or her signature or that of an Assistant Secretary.  The
Secretary shall have such other duties and powers as may be designated from time
to time by the Board of Directors or the President.  In the absence of the
Secretary, any Assistant Secretary may perform his or her duties and
responsibilities.

     Any Assistant Secretary shall have such powers and perform such duties as
the Board of Directors or the President may from time to time designate.

     SECTION 16.  Other Powers and Duties.  Subject to these By-laws and to such
                  -----------------------                                       
limitations as the Board of Directors may from time to time prescribe, the
officers of the 

                                       13
<PAGE>
 
Corporation shall each have such powers and duties as generally pertain to their
respective offices, as well as such powers and duties as from time to time may
be conferred by the Board of Directors or the President.


                                   ARTICLE V
                                   ---------
                                 Capital Stock
                                 -------------

     SECTION 1.  Amount Authorized.  The amount of the authorized capital stock
                 -----------------                                             
and the par value, if any, of the shares authorized shall be fixed in the
Articles of Incorporation, as amended from time to time.

     SECTION 2.  Stock Certificates.  Each stockholder shall be entitled to a
                 ------------------                                          
certificate representing the shares of the Corporation owned by him or her,
under the corporate seal or a facsimile thereof, in such form as may be
prescribed from time to time by the directors.  The certificate shall be signed
(either manually or by facsimile) by the President or a Vice-President, and by
the Treasurer or the Secretary.  In case any officer who has signed or whose
facsimile signature has been placed on such certificate shall have ceased to be
such officer before such certificate is issued, it may be issued by the
Corporation with the same effect as if he or she were such officer at the time
of its issue.

     Every certificate representing the Corporation's shares which are subject
to any restriction on transfer pursuant to the Articles of Incorporation, the
By-Laws or any agreement to which the Corporation is a party, shall have the
restriction noted conspicuously on the certificate and shall also set forth on
the face or back thereof 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 thereof to the holder of such certificate upon written request
and without charge.  Every certificate representing the Corporation's shares
issued when the Corporation is authorized to issue more than one class or series
of shares 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, voting powers, qualifications, and special
and relative rights, and a statement that the Corporation will furnish a copy
thereof to the holder of such certificate upon written request and without
charge.

     SECTION 3.  Transfer.  Subject to the restrictions, if any, stated or noted
                 --------                                                       
on the certificates, shares may be transferred on the books of the Corporation
by the surrender to the Corporation or its transfer agent of the certificate
therefor properly endorsed by the registered holder or by his duly authorized
attorney pursuant to a written power of attorney properly executed, and with
such proof of the authenticity of signature as the Secretary of the Corporation
or its transfer agent may reasonably require, if the Corporation has no notice
of any adverse claim.  Except as may be otherwise required by law, by the
Articles of Incorporation or by these By-Laws, the Corporation shall be entitled
to treat the record holder of shares as shown on its books as the owner of such
shares for all purposes, including the payment of dividends and the right to
vote with respect thereto, regardless of any transfer, pledge, or other
disposition of such shares, until the shares have been transferred on the 

                                       14
<PAGE>
 
books of the Corporation in accordance with the requirements of these By-Laws.
It shall be the duty of each stockholder to notify the Corporation of his or her
mailing address.

     SECTION 4.  Lost or Destroyed Certificates.  In case of the alleged loss,
                 ------------------------------                               
destruction or mutilation of a certificate of stock, a duplicate certificate may
be issued in place thereof, upon such terms as the Board of Directors may
prescribe.

     SECTION 5.  Fractional Shares.  Certificates representing fractional shares
                 -----------------                                              
may be issued by the Corporation.  No holder of any fractional share shall be
entitled to any vote with respect thereto unless, and to the extent that, the
holder or holders of fractional shares aggregating one or more full shares unite
for the purpose of voting at any such meeting, in which case such holder or
holders shall be entitled to one vote at such meeting for each full share
represented by the aggregate of such fractional shares held by such holder or
holders.

     SECTION 6.  Payment for Shares.  The consideration for the issuance of
                 ------------------                                        
shares may be paid, in whole or in part, in money, in other property, tangible
or intangible, or in labor or services actually performed for the Corporation.
When payment of the consideration for which shares are to be issued shall have
been received by the Corporation such shares shall be deemed to be fully paid
and nonassessable.  Future services shall not constitute payment or part payment
for the issuance of shares of the Corporation.  In the absence of fraud in the
transaction, the judgment of the Board of Directors as to the value of the
consideration received for shares shall be conclusive.  No certificate shall be
issued for any shares until the share is fully paid.


                                   ARTICLE VI
                                   ----------
                         Indemnification and Insurance
                         -----------------------------

     SECTION 1.  Definitions.  For purposes of this Article VI, the following
                 -----------                                                 
definitions shall apply:


     (1)  "Corporation" includes any domestic or foreign predecessor entity of a
          corporation in a merger or other transaction in which the
          predecessor's existence ceased upon the consummation of the
          transaction.

     (2)  "Director" means an individual who is or was a director of the
          Corporation or an individual who, while a director of the Corporation,
          is or was serving at the Corporation's request as a director, officer,
          partner, trustee, employee, or agent of another foreign or domestic
          corporation, partnership, joint venture, trust, employee benefit plan
          or other enterprise.  A director is considered to be serving an
          employee benefit plan at the Corporation's request if the director's
          duties to the Corporation also impose duties on, or otherwise involve
          services by, the director to the plan or to participants in or
          beneficiaries of the plan.  "Director" includes, unless the context
          requires otherwise, the estate or personal representative of a
          director.

                                       15
<PAGE>
 
     (3)  "Expenses" means the reasonable costs incurred in connection with a
          proceeding, including reasonable attorneys' fees.

     (4)  "Liability" means the obligation to pay a judgment, settlement,
          penalty, fine (including an excise tax assessed with respect to an
          employee benefit plan), or reasonable expenses incurred with respect
          to a proceeding.

     (5)  "Official capacity" means:

          (a)  when used with respect to a director, the office of director in a
               corporation; and

          (b)  when used with respect to an individual other than a director, as
               contemplated in Section 6 of this Article VI, the office in the
               Corporation held by the officer or the employment or agency
               relationship undertaken by the employee or agent on behalf of the
               Corporation.  "Official capacity" does not include service for
               any other foreign or domestic corporation or any partnership,
               joint venture, trust employee benefit plan, or other enterprise.

     (6)  "Party" includes an individual who was, is, or is threatened to be
          made a named defendant or respondent in a proceeding.

     (7)  "Proceeding" means any threatened, pending, or completed action, suit
          or proceeding, whether civil, criminal, administrative, or
          investigative and whether formal or informal.

     (8) "Special legal counsel" means counsel that has never been an employee
of the Corporation and who has not, and whose firm has not, performed legal
services for the Corporation pertaining to the matter for which indemnification
is sought for a period of at least two years before retention as special
counsel.

     SECTION 2.   Authority to Indemnify.
                  ---------------------- 

     (A) Except as provided in Subsection (D) of this Section 2,   the
Corporation shall indemnify an individual made a party to a proceeding because
the individual is or was a   director against liability incurred in the
proceeding if:

     (1)  the director conducted himself or herself in good faith; and
     (2)  the director reasonably believed:


          (a)  in the case of conduct in the director's official capacity with
               the Corporation, that the director's conduct was in its best
               interests; and
          (b)  in all other cases, that the director's conduct was at least not
               opposed to its best interests; and

                                       16
<PAGE>
 
     (3)  in the case of any proceeding brought by a governmental entity, the
          director had no reasonable cause to believe his or her conduct was
          unlawful, and the director is not finally found to have engaged in a
          reckless or intentional unlawful act.

     (B) A director's conduct with respect to an employee benefit plan for a
purpose the director reasonably believed to be in the interests of the
participants in and beneficiaries of the plan is conduct that satisfies the
requirement of subsection (A)(2)(b) of this Section.

     (C) The termination of a proceeding by judgment, order, settlement,
conviction, or upon a plea of nolo contendere or its equivalent is not, of
itself, determinative that the director did not meet the standard of conduct
described in this Section.

     (D) The Corporation may not indemnify a director under this Section:

     (1)  in connection with a proceeding by or in the right of the Corporation
          in which the director was adjudged liable to the Corporation; or

     (2)  in connection with any other proceeding charging improper personal
          benefit to the director, whether or not involving action in
          the director's official capacity in which the director was adjudged
          liable on the basis that personal benefit was improperly received by
          the director.

     (E) Indemnification permitted under this Section 2 in connection with a
proceeding by or in the right of the Corporation is limited to reasonable
expenses incurred in connection with the proceeding.

     SECTION 3.  Mandatory Indemnification.  The Corporation shall indemnify a
                 -------------------------                                    
director who was wholly successful, on the merits or otherwise, in the defense
of any proceeding to which the director was a party because the director is or
was a director of the Corporation against reasonable expenses incurred by the
director in connection with the proceeding.

     SECTION 4.  Advance for Expenses.
                 -------------------- 

     (A) The Corporation shall pay for or reimburse the reasonable expenses
incurred by a director who is a party to a proceeding in advance of final
disposition of the proceeding if:

     (1)  the director furnished the Corporation a written affirmation of his or
          her good faith belief that the director has met the standard of
          conduct described in Section 2 above;

     (2)  the director furnishes the Corporation a written undertaking, executed
          personally or on the director's behalf, to repay the advance if it is
          ultimately determined that the director did not meet the standard of
          conduct; and

                                       17
<PAGE>
 
     (3)  a determination is made that the facts then known to those making the
          determination would not preclude indemnification under this Article
          VI.

     (B) The undertaking required by Subsection (A)(2) of this Section 4 must be
an unlimited general obligation of the director, but need not be secured and may
be accepted by the Corporation without reference to financial ability to make
repayment.

     (C) Determinations and authorizations of payments under this Section shall
be made in the manner specified in Section 5 of this Article VI.

     SECTION 5.  Determination and Authorization of Indemnification.
                 -------------------------------------------------- 

     (A) Except as provided in Section 4 of this Article VI, the Corporation may
not indemnify a director under Article VI of these By-Laws prior to the final
resolution of a proceeding, whether by judgment, order, settlement, conviction,
plea or otherwise, and unless authorized in the specific case after a
determination has been made that indemnification of the director is permissible
in the circumstances because the director has met the standard of conduct set
forth in Section 2 of this Article VI.

     (B) The determination required by Subsection (A) of this Section 5, in
accordance with the terms of Section 2 of this Article VI shall be made:

     (1)  by the Board of Directors by majority vote of a quorum consisting of
          directors not at the time parties to the proceeding;

     (2)  if a quorum cannot be obtained under subdivision (1) of this
          Subsection, by majority vote of a committee duly designated by the
          Board of Directors (in which designation directors who are parties may
          participate), consisting solely of two or more directors not at the
          time parties to the proceeding;

     (3)  by written opinion of special legal counsel;

          (a)  selected by the Board of Directors or its committee in the manner
               prescribed in subdivision (1) or (2); or

          (b)  if a quorum of the Board of Directors cannot be obtained under
               subdivision (1) and a committee cannot be designated under
               subdivision (2), selected by majority vote of the full Board of
               Directors (in which selection directors who are parties may
               participate); or

     (4)  by the stockholders, but shares owned by or voted under the control of
          directors who are at the time parties to the proceeding may not be
          voted on the determination.

     (C) Authorization of indemnification and evaluation as to reasonableness of
expenses shall be made in the same manner as the determination that
indemnification is 

                                       18
<PAGE>
 
permissible, except that if the determination is made by special legal counsel,
authorization of indemnification and evaluation as to reasonableness of expenses
shall be made by those entitled under Subsection (B)(3) of this Section 5 to
select counsel.

     SECTION 6.  Indemnification of Officers, Employees and Agents.
                 ------------------------------------------------- 

     (A) An officer of the Corporation who is not a director, and including as
officers those persons described in Section 1 of Article IV of the By-Laws, is
entitled to mandatory indemnification under Section 3 of this Article VI and is
entitled to apply for court-ordered indemnification under the Vermont Business
Corporation Law, in each case to the same extent as a director;

     (B) The Corporation shall indemnify and advance expenses under this Article
VI to an officer of the Corporation who is not a director to the same extent as
a director and may indemnify and advance expenses under this Article VI to an
agent of the Corporation who is not a director or an officer (as provided in
Subsection (A) of this Section 6) to the same extent as a director.

     SECTION 7.  Non-Exclusivity.  The indemnification provided by this Article
                 ---------------                                               
VI shall not be deemed exclusive of any other rights to which those seeking
indemnification may be entitled under any agreement, vote of stockholders or
disinterested directors or otherwise, both as to action in his or her official
capacity and as to action in another capacity while holding such office, and
shall continue as to a person who has ceased to be a director, officer, employee
or agent and shall inure to the benefit of the heirs, executors and
administrators of such person.

     SECTION 8.  Insurance.  The Corporation shall have the power to purchase
                 ---------                                                   
and maintain insurance on behalf of any person who is or was a director,
officer, employee or agent of the Corporation, or who, while a director,
officer, employee or agent of the Corporation, is or was serving at the request
of the Corporation as a director, officer, partner, trustee, employee or agent
of another foreign or domestic corporation, partnership, joint venture, trust,
employee benefit plan or other enterprise, against liability asserted against or
incurred by him or her in that capacity or arising out of his or her status as
such director, officer, employee or agent, whether or not the Corporation would
have the power to indemnify him or her against such liability under the
provisions of Sections 2 and 3 of this Article VI or otherwise under the
provisions of the Vermont Business Corporation Act.

                                  ARTICLE VII
                                  -----------
                            Miscellaneous Provisions
                            ------------------------

     SECTION 1.  Fiscal Year.  Except as from time to time determined by the
                 -----------                                                
directors, the fiscal year of the Corporation shall end on the last day of
December in each year.

     SECTION 2.  Seal.  The Board of Directors shall have power to adopt and
                 ----                                                       
alter the seal of the Corporation.

                                       19
<PAGE>
 
     SECTION 3.  Execution of Instruments.  All deeds, leases, transfers,
                 ------------------------                                
contracts, bonds, notes and other obligations to be entered into by the
Corporation in the ordinary course of its business without director action may
be executed on behalf of the Corporation by the Chairman of the Board, if one is
elected, the President, the Secretary or the Treasurer or any other officer,
employee or agent of the Corporation as the Board of Directors or Executive
Committee may authorize.

     SECTION 4.  Voting of Securities.  Unless the Board of Directors otherwise
                 --------------------                                          
provides, the Chairman of the Board, if one is elected, the President, the
Secretary or the Treasurer may waive notice of and act on behalf of the
Corporation, or appoint another person or persons to act as proxy or attorney in
fact for the Corporation with or without discretionary power and/or power of
substitution, at any meeting of stockholders or stockholders of any other
corporation or organization, any of whose securities are held by the
Corporation.

     SECTION 5.  Registered Office and Registered Agent.  The address of the
                 --------------------------------------                     
registered agent shall be as set forth in the Articles of Incorporation.  The
books of the Corporation, including its stock ledger, books of account, and
minute books, shall be kept at the registered office of the Corporation or its
Secretary.

     SECTION 6.  Agents.  The Board of Directors may appoint agents of the
                 ------                                                   
Corporation possessing authority as broad as is not inconsistent with these By-
laws or applicable law.

     SECTION 7.  Amendment of By-laws.
                 -------------------- 

       (a)  Amendment by Directors.  Except as provided otherwise by law, these
            ----------------------                                             
By-laws may be amended or repealed by the Board of Directors by the affirmative
vote of a majority of the directors then in office.

       (b)  Amendment by Stockholders.  These By-laws may be amended or repealed
            -------------------------                                           
at any Annual Meeting or special meeting of stockholders called for such
purpose, by the affirmative vote of a majority of the shares present in person
or represented by proxy at such meeting and entitled to vote on such amendment
or repeal, voting together as a single class.

                                       20