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        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman;"><strong>UNITED
          STATES</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman;"><strong>SECURITIES
          AND EXCHANGE COMMISSION</strong></font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>WASHINGTON,
          D.C.&#160;&#160;20549</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div><br></div>
        </div>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman;"><strong>FORM
          8-K</strong></font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>CURRENT
          REPORT</strong></font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Pursuant
          to Section 13 or 15(d) of the</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Securities
          Exchange Act of 1934</font></div>
        <div><br></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Date
          of
          Report (Date of earliest event reported): June 8, 2007</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div><br></div>
        </div>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman;"><strong>NESTOR,
          INC.</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div><br></div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(Exact
          name of registrant as specified in its charter)</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Delaware</strong></font></div>
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          <div><br></div>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(State
          or
          other jurisdiction of incorporation)</font></div>
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                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><strong>0-12965</strong></font></div>
                </td>
                <td valign="top" width="37%" style="BORDER-BOTTOM: black 2px solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><strong>13-3163744</strong></font></div>
                </td>
              </tr>
              <tr>
                <td valign="top" width="37%" style="BORDER-BOTTOM: black">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">(Commission
                    File Number)</font></div>
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                <td valign="top" width="37%" style="BORDER-BOTTOM: black">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">(IRS
                    Employer Identification Number)</font></div>
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        </div>
        <div><br></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>42
          Oriental Street; Third Floor, Providence, Rhode Island</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div><br></div>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(Address
          of principal executive offices)</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>(401)
          274-5658</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div><br></div>
        </div>
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          telephone number, including area code)</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Not
          Applicable</strong></font></div>
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          name or former address, if changed since last report)</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Check
          the
          appropriate box below if the Form 8-K filing is intended to simultaneously
          satisfy the filing obligation of the registrant under any of the following
          provisions:</font></div>
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                </td>
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                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Written
                    communications pursuant to Rule 425 under the Securities Act (17
                    CFR
                    230.425)</font></div>
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                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Soliciting
                    material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                    240.14a-12)</font></div>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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                </td>
                <td>
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Pre-commencement
                    communications pursuant to Rule 14d-2(b) under the Exchange Act
                    (17 CFR
                    240.14d-2(b))</font></div>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font style="DISPLAY: inline;" face="Wingdings">&#168;</font></font></div>
                </td>
                <td>
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Pre-commencement
                    communications pursuant to Rule 13e-4(c) under the Exchange Act
                    (17 CFR
                    240.13e-4(c))</font></div>
                </td>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
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            <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman;">-1-</font></div>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>ITEM
                    8.01.</strong></font></div>
                </td>
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                  <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>OTHER
                    EVENTS</strong></font></div>
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        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>MEETING
          OF THE BOARD OF DIRECTORS ON JUNE 8, 2007</strong></font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>On
          Friday, June 8, 2007, the Board of
          Directors (the &#8220;<strong>Board</strong>&#8221;) of Nestor, Inc. (the
  &#8220;<strong>Company</strong>&#8221;) held a meeting at which all members
          of the Board
          were present except Theodore Petroulas (the &#8220;<strong>June 8
          Meeting</strong>&#8221;).&#160;&#160;Mr. Danzell was represented by counsel at the
          June 8 Meeting.&#160;&#160;The purpose of the June 8 Meeting was to discuss a
          potential violation of the Company's Code of Ethics (the
  &#8220;<strong>Code</strong>&#8221;) by William B. Danzell as it relates to trading in the
          Company&#8217;s securities to determine what course of action, if any, the Board would
          take.&#160;&#160;At the June 8 Meeting, Mr. Danzell was given an opportunity to
          explain the nature of purchases by entities or individuals controlled by
          him of
          160,000 shares of the Company&#8217;s Common Stock occurring on June 4, 2007 (the
  &#8220;<strong>Transactions</strong>&#8221;) and to provide reasons why the Transactions did
          not constitute a violation of the Code.</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>During
          the June 8 Meeting, the Board
          notified Mr. Danzell that it considered the Transactions to have violated
          the
          Code based on his possession of material non-public information
          (&#8220;<strong>MNPI</strong>&#8221;) and his failure to first obtain preclearance of the
          Transactions from the Company&#8217;s Ethics Compliance Officer as required by the
          Code.&#160;&#160;The Board determined that on June 4, 2007, when the
          Transactions occurred, Mr. Danzell was in possession of MNPI.</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Mr.
          Danzell asserted that the
          Transactions did not constitute a violation of the Code of Ethics, claiming
          that
          he did not believe that the information he was in possession of was &#8220;material&#8221;
  or &#8220;non-public.&#8221;</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>With
          respect to the Board&#8217;s concern
          that Mr. Danzell had not sought preclearance of the Transactions, Mr. Danzell
          pointed out language in a Schedule 13-D/A (Amendment No. 9) filed by Silver
          Star
          Partners I, L.L.P. on May 23, 2007 (the &#8220;<strong>13-D/A</strong>&#8221;) which he
          contended put the Company on notice that Mr. Danzell intended a transaction
          in
          the Company&#8217;s Common Stock.&#160;&#160;Specifically, Mr. Danzell pointed to the
          following:</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(Item
          4)</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#8220;Although
          it reserves the right to review and change its plans and proposals for Nestor,
          Silver Star is considering acquiring additional shares of Nestor's common
          stock
          through open market purchases . . . .&#8221;</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Mr.
          Danzell asserted that this language
          in the 13-D/A was a <em>de facto</em> request for preclearance from the Company
          and that it was the duty of the Company&#8217;s Ethics Compliance Officer (Mr. Nigel
          Hebborn) or the Company&#8217;s General Counsel (Brian Haskell, Esq.) to notify him
          that the Company had approved or disapproved of a transaction.&#160;&#160;Mr.
          Danzell further stated that he had been unable to communicate effectively
          with
          the Company General Counsel and accordingly, that he was unable to request
          preclearance of the Transactions in the ordinary manner as provided in the
          Code.</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>The
          Board rejected Mr. Danzell&#8217;s
          assertions that the Transactions did not constitute a violation of the
          Code.&#160;&#160;The Board determined that Mr. Danzell was in possession of MNPI
          and that he had failed to obtain preclearance of the Transactions in accordance
          with the express procedures as specified by the Code.</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>The
          Board specifically determined that
          the language in the 13-D/A that &#8220;Silver Star is considering acquiring additional
          shares of Nestor's common stock through open market purchases&#8221; was (a)
          substantially identical to language contained in previous amendments to Silver
          Star&#8217;s 13-D, (b) insufficiently specific to put the Company on notice that the
          Transactions were imminent, and (c) had never previously been deemed a request
          for preclearance of a transaction involving the Company&#8217;s securities by either
          Mr. Danzell or the Company.&#160;&#160;Accordingly, the Board concluded that the
          13-D/A did not constitute a <em>de facto</em> request for preclearance of the
          Transactions and that the Company&#8217;s failure to respond did not constitute <em>de
          facto</em> clearance of the Transactions.</font></div><br>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>The
          Board (without Mr. Danzell present)
          determined to sanction Mr. Danzell for his violations of the Code and to
          fine
          him $86,400.00, which amount equals the aggregate purchase price for the
          shares
          acquired in the Transactions, to be paid to the Company within 30 days after
          the
          date that Mr. Danzell is notified of the fine.&#160;&#160;The Board further
          determined that if Mr. Danzell failed or refused to pay such fine in the
          time
          specified, such failure or refusal would be deemed misconduct on his part
          and
          would constitute Cause (as defined in his Employment Agreement) for immediate
          termination of his employment with the Company.&#160;&#160;In determining the
          appropriate sanction, the Board took into consideration the fact that Mr.
          Danzell had previously violated the Code in connection with a purchase of
          shares
          of the Company&#8217;s common stock in September 2006 outside of the &#8220;window period&#8221;
  for such purchase then provided by the Code and had been admonished by the
          Board
          for this violation.&#160;&#160;The Board directed the Chairman of the Board to
          notify Mr. Danzell of this action at a meeting of the Board scheduled for
          Monday, June 11, 2007.</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>MEETING
          OF THE BOARD OF DIRECTORS ON JUNE 11, 2007</strong></font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>At
          the conclusion of the June 8
          Meeting, the Board noticed a meeting of the Board to be held on June 11,
          2007
          (the &#8220;<strong>June 11 Meeting</strong>&#8221;) at 4:00 PM (Eastern
          Time).&#160;&#160;The purpose of the meeting was to inform Mr. Danzell of the
          action approved by the Board at the June 8 Meeting.&#160;&#160;All members of
          the Board except Nina Mitchell attended this meeting
          telephonically.&#160;&#160;Mr. Danzell and his counsel participated by
          telephone.</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>On
          June 11, 2007, at approximately 3:50
          PM (Eastern Time), the Company received a facsimile copy of a document
          purporting to elect by written consent (the &#8220;<strong>June 11 Consent</strong>&#8221;)
          the following Board members:&#160;&#160;William B. Danzell, Tim Hutchinson,
          Michael C. James, David N. Jordan, Nickey Maxey, Nina R. Mitchell, Theodore
          Petroulas and Daryl Silzer.&#160;&#160;&#160;(A copy of the June 11 Consent is
          appended to this Form 8-K as <strong><em>Exhibit
          99.1</em></strong>).</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>This
          written consent was substantially
          identical to a written consent delivered to the Company on June 5, 2007 (the
          &#8220;<strong>June 5 Consent</strong>&#8221;) except that the June 11 Consent included the
          signatures of Mr. Martin L. Solomon (representing 56,561 shares of the Company&#8217;s
          Common Stock), Ms. Kim Davis (representing 30,000 shares of Common Stock)
          and
          Mr. Craig J. Kessler (representing 3,500 shares of Common Stock) as well
          as Mr.
          Danzell&#8217;s signature on behalf of Silver Star Partners I, LLC (representing
          9,936,430 shares of Common Stock), Danzell Investment Management, Ltd.
          (representing 238,366 shares of Common Stock) and individually (representing
          10,400 shares of Common Stock).</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>The
          Company deemed the June 5 Consent
          ineffective because the number of shares of stock purportedly held by the
          signatories of the June 5 Consent did not represent a majority of the Company&#8217;s
          issued and outstanding shares entitled to vote under Delaware
          law.&#160;&#160;The June 11 Consent apparently was intended to cure this
          defect.</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Because
          the June 11 Consent was
          delivered to the Company only 10 minutes prior to the commencement of the
          June
          11 Meeting, the Board determined to defer notifying Mr. Danzell of the action
          taken at the June 8 Meeting until it could determine whether the Board was
          properly constituted in light of the June 11 Consent.</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Thereafter,
          a discussion ensued
          regarding the effectiveness of the June 11 Consent and the consequences of
          its
          effectiveness, if any.&#160;&#160;The Company&#8217;s General Counsel advised the
          Board that he had not had sufficient time to analyze the June 11 Consent
          to
          determine its effectiveness and that additional time would be
          necessary.</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Members
          of the Board then asked the
          Company&#8217;s General Counsel what the consequences of the June 11 Consent would be
          if it were effective and several of the continuing members of the Board were
          to
          resign.&#160;&#160;The Company&#8217;s General Counsel advised that such an event
          would constitute a Change of Control under the Company&#8217;s existing senior debt
          agreements and would trigger a right on the part of the holders of the Company&#8217;s
          senior debt to redeem their notes at a premium over existing outstanding
          principal plus accumulated interest.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>The
          Board then asked Mr. Danzell if he
          would be willing to withdraw the June 11 Consent temporarily while the Board
          and
          the Company determined the full implications of the June 11
          Consent.&#160;&#160;Mr. Danzell refused, stating that &#8220;it is already
          done.&#8221;</font></div><br>
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            <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman;">-3-</font></div>
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              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">
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            </div>
          </div>
        </div><br>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Thereafter,
          the Board requested that
          the Company&#8217;s General Counsel, in consultation with outside counsel, analyze the
          June 11 Consent to determine its effectiveness and adjourned the meeting
          until
          June 14, 2007 at which time the Board would take the General Counsel&#8217;s report on
          the effectiveness of the June 11 Consent and act in accordance with his
          analysis.</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>A
          majority of the current directors who
          the June 11 Consent purports to re-elect have indicated that they would likely
          resign from the Board if Mr. Danzell succeeds in his efforts to reconstitute
          the
          Board in the manner contemplated by the June 11 Consent.&#160;&#160;It would
          constitute a Change of Control if, as a result of such resignations, existing
          Board members cease to constitute at least a majority of the Board, and the
          Company would be required to notify the holders of the senior debt that they
          had
          a redemption right.</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>In
          accordance with the Board&#8217;s
          directive, the Company&#8217;s General Counsel has determined, in consultation with
          outside counsel, that the June 11 Consent is
          ineffective.&#160;&#160;Accordingly, the Company has no plan to effect any
          changes in the Board based on the purported written consent.</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Mr.
          Danzell has been advised by letter
          to his counsel of the actions taken by the Board of Directors at the June
          8
          Meeting.</font></div>
        <div><br></div>
        <div><br></div>
        <div><br></div>
        <div>&#160;</div>
        <div><br></div>
        <div><br></div>
        <div><br></div>
        <div>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>ITEM
                    9.01.</strong></font></div>
                </td>
                <td>
                  <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>FINANCIAL
                    STATEMENTS AND EXHIBITS</strong></font></div>
                </td>
              </tr>
  
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        </div>
        <div><br></div>
        <div>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(c)</font></div>
                </td>
                <td>
                  <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Exhibits</font></div>
                </td>
              </tr>
  
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        <div><br></div>
        <div>
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                <td style="WIDTH: 108pt">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>Exhibit
                    No.</u></font></div>
                </td>
                <td>
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>Exhibit</u></font></div>
                </td>
              </tr>
  
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        <div><br></div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
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                <td style="WIDTH: 18pt">
                  <div>&#160;</div>
                </td>
                <td style="WIDTH: 90pt">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">99.1</font></div>
                </td>
                <td>
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Written
                    Consent of Stockholders</font></div>
                </td>
              </tr>
  
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        </div>
        <div><br></div>
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        <div><br></div>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>SIGNATURES</strong></font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Pursuant
          to the requirements of the Securities Exchange Act of 1934, as amended, the
          Registrant has duly caused this report to be signed on its behalf by the
          undersigned hereunto duly authorized.</font></div>
        <div><br></div>
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                <td valign="top" width="9%" style="BORDER-BOTTOM: black"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
                <td align="left" valign="top" width="40%" style="BORDER-BOTTOM: black">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">NESTOR,
                    INC.</font></div>
                </td>
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                <td valign="top" width="25%" style="BORDER-BOTTOM: black"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
                <td valign="top" width="9%" style="BORDER-BOTTOM: black"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
                <td valign="top" width="40%" style="BORDER-BOTTOM: black"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
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                <td valign="top" width="25%" style="BORDER-BOTTOM: black"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
                <td valign="top" width="9%" style="BORDER-BOTTOM: black"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
                <td valign="top" width="40%" style="BORDER-BOTTOM: black"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
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                <td valign="top" width="25%" style="BORDER-BOTTOM: black"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
                <td align="right" valign="top" width="9%" style="BORDER-BOTTOM: black">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">By:</font></div>
                </td>
                <td align="left" valign="top" width="40%" style="BORDER-BOTTOM: black 2px solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">/s/
                    Nigel P. Hebborn</font></div>
                </td>
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                <td valign="top" width="25%" style="BORDER-BOTTOM: black"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
                <td valign="top" width="9%" style="BORDER-BOTTOM: black"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
                <td align="left" valign="top" width="40%" style="BORDER-BOTTOM: black">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Nigel
                    P. Hebborn</font></div>
                </td>
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                <td valign="top" width="25%" style="BORDER-BOTTOM: black"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
                <td valign="top" width="9%" style="BORDER-BOTTOM: black"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
                <td align="left" valign="top" width="40%" style="BORDER-BOTTOM: black">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Executive
                    Vice President, Treasurer and CFO</font></div>
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                <td valign="top" width="40%" style="BORDER-BOTTOM: black"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
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                <td valign="top" width="9%" style="BORDER-BOTTOM: black"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
                <td valign="top" width="40%" style="BORDER-BOTTOM: black"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
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                <td valign="top" width="9%" style="BORDER-BOTTOM: black"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
                <td valign="top" width="40%" style="BORDER-BOTTOM: black"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
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                <td valign="top" width="9%" style="BORDER-BOTTOM: black"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
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                  <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Date:June
                    13, 2007</font></div>
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text: form8k.htm
  UNITED
          STATES
  SECURITIES
          AND EXCHANGE COMMISSION
  WASHINGTON,
          D.C.  20549
  FORM
          8-K
  CURRENT
          REPORT
  Pursuant
          to Section 13 or 15(d) of the
  Securities
          Exchange Act of 1934
  Date
          of
          Report (Date of earliest event reported): June 8, 2007
  NESTOR,
          INC.
  (Exact
          name of registrant as specified in its charter)
  Delaware
  (State
          or
          other jurisdiction of incorporation)
  0-12965
  13-3163744
  (Commission
                    File Number)
  (IRS
                    Employer Identification Number)
  42
          Oriental Street; Third Floor, Providence, Rhode Island
  (Address
          of principal executive offices)
  (401)
          274-5658
  (Registrant's
          telephone number, including area code)
  Not
          Applicable
  (Former
          name or former address, if changed since last report)
  Check
          the
          appropriate box below if the Form 8-K filing is intended to simultaneously
          satisfy the filing obligation of the registrant under any of the following
          provisions:
  ¨
  Written
                    communications pursuant to Rule 425 under the Securities Act (17
                    CFR
                    230.425)
  ¨
  Soliciting
                    material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                    240.14a-12)
  ¨
  Pre-commencement
                    communications pursuant to Rule 14d-2(b) under the Exchange Act
                    (17 CFR
                    240.14d-2(b))
  ¨
  Pre-commencement
                    communications pursuant to Rule 13e-4(c) under the Exchange Act
                    (17 CFR
                    240.13e-4(c))
  -1-
  ITEM
                    8.01.
  OTHER
                    EVENTS
  MEETING
          OF THE BOARD OF DIRECTORS ON JUNE 8, 2007
  On
          Friday, June 8, 2007, the Board of
          Directors (the "
  Board
  ") of Nestor, Inc. (the
  "
  Company
  ") held a meeting at which all members
          of the Board
          were present except Theodore Petroulas (the "
  June 8
          Meeting
  ").  Mr. Danzell was represented by counsel at the
          June 8 Meeting.  The purpose of the June 8 Meeting was to discuss a
          potential violation of the Company's Code of Ethics (the
  "
  Code
  ") by William B. Danzell as it relates to trading in the
          Company's securities to determine what course of action, if any, the Board would
          take.  At the June 8 Meeting, Mr. Danzell was given an opportunity to
          explain the nature of purchases by entities or individuals controlled by
          him of
          160,000 shares of the Company's Common Stock occurring on June 4, 2007 (the
  "
  Transactions
  ") and to provide reasons why the Transactions did
          not constitute a violation of the Code.
  During
          the June 8 Meeting, the Board
          notified Mr. Danzell that it considered the Transactions to have violated
          the
          Code based on his possession of material non-public information
          ("
  MNPI
  ") and his failure to first obtain preclearance of the
          Transactions from the Company's Ethics Compliance Officer as required by the
          Code.  The Board determined that on June 4, 2007, when the
          Transactions occurred, Mr. Danzell was in possession of MNPI.
  Mr.
          Danzell asserted that the
          Transactions did not constitute a violation of the Code of Ethics, claiming
          that
          he did not believe that the information he was in possession of was "material"
  or "non-public."
  With
          respect to the Board's concern
          that Mr. Danzell had not sought preclearance of the Transactions, Mr. Danzell
          pointed out language in a Schedule 13-D/A (Amendment No. 9) filed by Silver
          Star
          Partners I, L.L.P. on May 23, 2007 (the "
  13-D/A
  ") which he
          contended put the Company on notice that Mr. Danzell intended a transaction
          in
          the Company's Common Stock.  Specifically, Mr. Danzell pointed to the
          following:
  (Item
          4)
  "Although
          it reserves the right to review and change its plans and proposals for Nestor,
          Silver Star is considering acquiring additional shares of Nestor's common
          stock
          through open market purchases . . . ."
  Mr.
          Danzell asserted that this language
          in the 13-D/A was a
  de facto
  request for preclearance from the Company
          and that it was the duty of the Company's Ethics Compliance Officer (Mr. Nigel
          Hebborn) or the Company's General Counsel (Brian Haskell, Esq.) to notify him
          that the Company had approved or disapproved of a transaction.  Mr.
          Danzell further stated that he had been unable to communicate effectively
          with
          the Company General Counsel and accordingly, that he was unable to request
          preclearance of the Transactions in the ordinary manner as provided in the
          Code.
  The
          Board rejected Mr. Danzell's
          assertions that the Transactions did not constitute a violation of the
          Code.  The Board determined that Mr. Danzell was in possession of MNPI
          and that he had failed to obtain preclearance of the Transactions in accordance
          with the express procedures as specified by the Code.
  The
          Board specifically determined that
          the language in the 13-D/A that "Silver Star is considering acquiring additional
          shares of Nestor's common stock through open market purchases" was (a)
          substantially identical to language contained in previous amendments to Silver
          Star's 13-D, (b) insufficiently specific to put the Company on notice that the
          Transactions were imminent, and (c) had never previously been deemed a request
          for preclearance of a transaction involving the Company's securities by either
          Mr. Danzell or the Company.  Accordingly, the Board concluded that the
          13-D/A did not constitute a
  de facto
  request for preclearance of the
          Transactions and that the Company's failure to respond did not constitute
  de
          facto
  clearance of the Transactions.
  -2-
  The
          Board (without Mr. Danzell present)
          determined to sanction Mr. Danzell for his violations of the Code and to
          fine
          him $86,400.00, which amount equals the aggregate purchase price for the
          shares
          acquired in the Transactions, to be paid to the Company within 30 days after
          the
          date that Mr. Danzell is notified of the fine.  The Board further
          determined that if Mr. Danzell failed or refused to pay such fine in the
          time
          specified, such failure or refusal would be deemed misconduct on his part
          and
          would constitute Cause (as defined in his Employment Agreement) for immediate
          termination of his employment with the Company.  In determining the
          appropriate sanction, the Board took into consideration the fact that Mr.
          Danzell had previously violated the Code in connection with a purchase of
          shares
          of the Company's common stock in September 2006 outside of the "window period"
  for such purchase then provided by the Code and had been admonished by the
          Board
          for this violation.  The Board directed the Chairman of the Board to
          notify Mr. Danzell of this action at a meeting of the Board scheduled for
          Monday, June 11, 2007.
  MEETING
          OF THE BOARD OF DIRECTORS ON JUNE 11, 2007
  At
          the conclusion of the June 8
          Meeting, the Board noticed a meeting of the Board to be held on June 11,
          2007
          (the "
  June 11 Meeting
  ") at 4:00 PM (Eastern
          Time).  The purpose of the meeting was to inform Mr. Danzell of the
          action approved by the Board at the June 8 Meeting.  All members of
          the Board except Nina Mitchell attended this meeting
          telephonically.  Mr. Danzell and his counsel participated by
          telephone.
  On
          June 11, 2007, at approximately 3:50
          PM (Eastern Time), the Company received a facsimile copy of a document
          purporting to elect by written consent (the "
  June 11 Consent
  ")
          the following Board members:  William B. Danzell, Tim Hutchinson,
          Michael C. James, David N. Jordan, Nickey Maxey, Nina R. Mitchell, Theodore
          Petroulas and Daryl Silzer.   (A copy of the June 11 Consent is
          appended to this Form 8-K as
  Exhibit
          99.1
  ).
  This
          written consent was substantially
          identical to a written consent delivered to the Company on June 5, 2007 (the
          "
  June 5 Consent
  ") except that the June 11 Consent included the
          signatures of Mr. Martin L. Solomon (representing 56,561 shares of the Company's
          Common Stock), Ms. Kim Davis (representing 30,000 shares of Common Stock)
          and
          Mr. Craig J. Kessler (representing 3,500 shares of Common Stock) as well
          as Mr.
          Danzell's signature on behalf of Silver Star Partners I, LLC (representing
          9,936,430 shares of Common Stock), Danzell Investment Management, Ltd.
          (representing 238,366 shares of Common Stock) and individually (representing
          10,400 shares of Common Stock).
  The
          Company deemed the June 5 Consent
          ineffective because the number of shares of stock purportedly held by the
          signatories of the June 5 Consent did not represent a majority of the Company's
          issued and outstanding shares entitled to vote under Delaware
          law.  The June 11 Consent apparently was intended to cure this
          defect.
  Because
          the June 11 Consent was
          delivered to the Company only 10 minutes prior to the commencement of the
          June
          11 Meeting, the Board determined to defer notifying Mr. Danzell of the action
          taken at the June 8 Meeting until it could determine whether the Board was
          properly constituted in light of the June 11 Consent.
  Thereafter,
          a discussion ensued
          regarding the effectiveness of the June 11 Consent and the consequences of
          its
          effectiveness, if any.  The Company's General Counsel advised the
          Board that he had not had sufficient time to analyze the June 11 Consent
          to
          determine its effectiveness and that additional time would be
          necessary.
  Members
          of the Board then asked the
          Company's General Counsel what the consequences of the June 11 Consent would be
          if it were effective and several of the continuing members of the Board were
          to
          resign.  The Company's General Counsel advised that such an event
          would constitute a Change of Control under the Company's existing senior debt
          agreements and would trigger a right on the part of the holders of the Company's
          senior debt to redeem their notes at a premium over existing outstanding
          principal plus accumulated interest.
  The
          Board then asked Mr. Danzell if he
          would be willing to withdraw the June 11 Consent temporarily while the Board
          and
          the Company determined the full implications of the June 11
          Consent.  Mr. Danzell refused, stating that "it is already
          done."
  -3-
  Thereafter,
          the Board requested that
          the Company's General Counsel, in consultation with outside counsel, analyze the
          June 11 Consent to determine its effectiveness and adjourned the meeting
          until
          June 14, 2007 at which time the Board would take the General Counsel's report on
          the effectiveness of the June 11 Consent and act in accordance with his
          analysis.
  A
          majority of the current directors who
          the June 11 Consent purports to re-elect have indicated that they would likely
          resign from the Board if Mr. Danzell succeeds in his efforts to reconstitute
          the
          Board in the manner contemplated by the June 11 Consent.  It would
          constitute a Change of Control if, as a result of such resignations, existing
          Board members cease to constitute at least a majority of the Board, and the
          Company would be required to notify the holders of the senior debt that they
          had
          a redemption right.
  In
          accordance with the Board's
          directive, the Company's General Counsel has determined, in consultation with
          outside counsel, that the June 11 Consent is
          ineffective.  Accordingly, the Company has no plan to effect any
          changes in the Board based on the purported written consent.
  Mr.
          Danzell has been advised by letter
          to his counsel of the actions taken by the Board of Directors at the June
          8
          Meeting.
  ITEM
                    9.01.
  FINANCIAL
                    STATEMENTS AND EXHIBITS
  (c)
  Exhibits
  Exhibit
                    No.
  Exhibit
  99.1
  Written
                    Consent of Stockholders
  -4-
  SIGNATURES
  Pursuant
          to the requirements of the Securities Exchange Act of 1934, as amended, the
          Registrant has duly caused this report to be signed on its behalf by the
          undersigned hereunto duly authorized.
  NESTOR,
                    INC.
  By:
  /s/
                    Nigel P. Hebborn
  Nigel
                    P. Hebborn
  Executive
                    Vice President, Treasurer and CFO
  Date:June
                    13, 2007
  -5-