##### 



Exhibit 2.4
 EXECUTION
COPY
 AGREEMENT AND PLAN OF MERGER
 by and among
 SYBASE, INC.
 ERNST ACQUISITION CORPORATION
 and
 EXTENDED SYSTEMS INCORPORATED




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TABLE OF CONTENTS
 PageARTICLE I THE MERGER
    
    
    21.1 The Merger
    
    
    21.2 Effective Time; Closing
    
    
    21.3 Effect of the Merger
    
    
    21.4 Certificate of Incorporation and Bylaws of Surviving
Corporation
    
    
    21.5 Directors and Officers of Surviving Corporation
    
    
    31.6 Effect on Capital Stock
    
    
    31.7 Dissenting Shares
    
    
    51.8 Surrender of Certificates
    
    
    51.9 No Further Ownership Rights in Shares
    
    
    71.10 Lost, Stolen or Destroyed Certificates
    
    
    71.11 Taking of Necessary Action; Further Action
    
    
    7ARTICLE II REPRESENTATIONS AND WARRANTIES OF COMPANY
    
    
    72.1 Organization and Qualification; Subsidiaries
    
    
    72.2 Certificate of Incorporation and Bylaws
    
    
    82.3 Capitalization
    
    
    82.4 Authority Relative to this Agreement
    
    
    112.5 No Conflict; Required Filings and Consents
    
    
    112.6 Compliance; Permits
    
    
    122.7 SEC Filings; Financial Statements
    
    
    122.8 No Undisclosed Liabilities
    
    
    142.9 Absence of Certain Changes or Events
    
    
    152.10 Absence of Litigation
    
    
    162.11 Employee Benefit Plans
    
    
    172.12 Restrictions on Business Activities
    
    
    222.13 Title to Property
    
    
    222.14 Taxes
    
    
    232.15 Environmental Matters
    
    
    252.16 Brokers; Third Party Expenses
    
    
    272.17 Intellectual Property
    
    
    27-ii-




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Page2.18 Contracts.
    
    
    342.19 Customers and Suppliers
    
    
    362.20 Insurance
    
    
    372.21 Opinion of Financial Advisor
    
    
    372.22 Board Approval
    
    
    372.23 State Takeover Statutes; Rights Agreement
    
    
    372.24 Interested Party Transactions
    
    
    372.25 Illegal Payments, Etc
    
    
    382.26 Privacy Policies; Third Party Privacy Obligations; Web Site
Terms and Conditions
    
    
    38ARTICLE III REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB
    
    
    403.1 Corporate Organization
    
    
    403.2 Authority Relative to this Agreement
    
    
    403.3 No Conflict; Required Filings and Consents
    
    
    413.4 Activities of Merger Sub
    
    
    413.5 Financing
    
    
    41ARTICLE IV CONDUCT PRIOR TO THE EFFECTIVE TIME
    
    
    414.1 Conduct of Business by Company
    
    
    41ARTICLE V ADDITIONAL AGREEMENTS
    
    
    465.1 Proxy Statement
    
    
    465.2 Meeting of Company Stockholders
    
    
    475.3 Confidentiality; Access to Information
    
    
    485.4 No Solicitation
    
    
    485.5 Public Disclosure
    
    
    525.6 Rights Agreement
    
    
    525.7 Reasonable Efforts; Notification
    
    
    525.8 Indemnification
    
    
    545.9 Termination of Certain Benefit Plans
    
    
    545.10 Employee Benefits
    
    
    555.11 FIRPTA Certificate
    
    
    55ARTICLE VI CONDITIONS TO THE MERGER
    
    
    556.1 Conditions to Obligations of Each Party to Effect the Merger
    
    
    55-iii-




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Page6.2 Additional Conditions to Obligations of Company
    
    
    566.3 Additional Conditions to the Obligations of Parent and Merger
Sub
    
    
    56ARTICLE VII TERMINATION, AMENDMENT AND WAIVER
    
    
    587.1 Termination
    
    
    587.2 Notice of Termination; Effect of Termination
    
    
    607.3 Fees and Expenses
    
    
    617.4 Amendment
    
    
    637.5 Extension; Waiver
    
    
    63ARTICLE VIII GENERAL PROVISIONS
    
    
    638.1 Non-Survival of Representations and Warranties
    
    
    638.2 Notices
    
    
    648.3 Interpretation; Knowledge
    
    
    658.4 Counterparts
    
    
    668.5 Entire Agreement; Third Party Beneficiaries
    
    
    668.6 Severability
    
    
    668.7 Other Remedies; Specific Performance
    
    
    668.8 Governing Law
    
    
    668.9 Rules of Construction
    
    
    668.10 Assignment
    
    
    668.11 Waiver of Jury Trial
    
    
    67INDEX OF SCHEDULESSchedule I   Key EmployeesSchedule II Change of Control PartiesINDEX OF EXHIBITSExhibit A-1 Form of D&O Voting AgreementExhibit A-2 Form of Founder Voting Agreement-iv-




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AGREEMENT AND PLAN OF MERGER
 Agreement Parent Merger Sub Company
 RECITALS
  Board Section 1.1 Transactions
 Exhibit A-1 Exhibit A-2 Company Voting Agreements
 Schedule I Key Employees Non-Competition Agreement Schedule II Change of Control Parties Amended Change
of Control Employment Agreement




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ARTICLE I
THE MERGER
 The Merger Section 1.2 Delaware Law Merger Surviving Corporation
 Effective Time; Closing Certificate of Merger Effective Time Agreement Closing Closing Date
 Effect of the Merger
 Certificate of Incorporation and Bylaws of Surviving Corporation
 Certificate of Incorporation Section 5.8 provided, however
 -2-




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Bylaws Section 5.8 provided, however
 Directors and Officers of Surviving Corporation
 Directors
 Officers
 Effect on Capital Stock
 Conversion of Shares Rights Series A Preferred Stock Rights Agreement Shares Section 1.6(b) Section 1.7 Section 1.8 Section 1.10 Merger Consideration Unvested
Shares
 Cancellation of Treasury and Parent-Owned Shares
 -3-




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Capital Stock of Merger Sub Merger Sub Common Stock
 Stock Options Company Stock Option Section 1.6(d) Section 1.8(e) Option
Consideration Section 1.6(d) Section
1.6(d)
 Company Warrants Company Warrant
 -4-




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Dissenting Shares
 Dissenting Shares Section 1.8
  Surrender of Certificates
 Paying Agent Paying Agent Section 1.6(a) Section
1.8
 Payment Procedures Certificates
 -5-




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Payments with respect to Unsurrendered Shares; No Liability th
 Transfers of Ownership
 Required Withholding .
 Adjustments
 -6-




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No Further Ownership Rights in Shares ARTICLE I
 Lost, Stolen or Destroyed Certificates provided, however
 Taking of Necessary Action; Further Action
 ARTICLE II
REPRESENTATIONS AND WARRANTIES OF COMPANY
 Company Schedule
 Organization and Qualification; Subsidiaries
 Approvals
 -7-




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Section 8.3(c)
 Section 2.1(b) Section 2.1(b) Contract
  Certificate of Incorporation and Bylaws Company Charter Documents
 Capitalization
 Company Common Stock Company Preferred Stock
 -8-




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Section 2.3(a) Section 2.3(a)
  -9-




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Legal Requirements Section 2.5(b)
 Liens
  ESPP
 -10-




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Authority Relative to this Agreement
 No Conflict; Required Filings and Consents
 Section 2.5(b)
  -11-




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Governmental
Entity Exchange Act Blue Sky Laws HSR Act Nasdaq
 Compliance; Permits
  Company Permit Company Permits Section
2.6(b)
 SEC Filings; Financial Statements
 SEC Company SEC Reports Securities Act SOX
 -12-




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GAAP
    -13-




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No Undisclosed Liabilities Liabilities Interim Balance Sheet Interim Balance Sheet Date Section 4.1
 -14-




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Absence of Certain Changes or Events
       -15-




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Absence of Litigation Action
 -16-




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Section 2.10
 Employee Benefit Plans
 Definitions Affiliate Section 2.11(a)(i) Section 2.11
 Affiliate
 COBRA
 Company Employee Plan
 DOL
 Employee
 -17-




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Employment Agreement
 ERISA
 FMLA
 International Employee Plan ,
 IRC
 IRS
 Multiemployer Plan
 Pension Plan
 Schedule Section 2.11(b)
 Documents
 -18-




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Employee Plan Compliance
 -19-




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Pension Plan
 Collectively Bargained, Multiemployer and Multiple Employer Plans
 No Post-Employment Obligations Section 2.11(g)
 Health Care Compliance
 Effect of Transaction
  -20-




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Employment Matters
 Labor
 International Employee Plan
 -21-




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WARN Act WARN Act
 Employee Information
 Section 2.11(n)(i)
 Section 2.11(n)(ii)
 Restrictions on Business Activities
 Title to Property
 Section 2.13(a)(i) Section 2.13(a)(ii)
 -22-




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Taxes
 Definition of Taxes Tax Taxes
 Tax Returns and Audits
 Returns
 -23-




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-24-




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Section 2.14(b)
 Environmental Matters
 Hazardous Material
 -25-




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Hazardous Material
 Hazardous Materials Activities Hazardous Materials Activities
 Permits Company Environmental
Permits
 Environmental Liabilities
 -26-




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Reports and Records
 Brokers; Third Party Expenses
 Intellectual Property
 Definitions
 Intellectual Property Software WWW
 Intellectual Property Rights Patents Copyrights Internet
Properties Trademarks
 -27-




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IP Licenses
 Company Intellectual Property
 Company Licensed Intellectual Property
 Company-Owned Intellectual Property
 Open Source Materials Code
 Registered Intellectual Property Rights
 Section 2.17(b) Company
Products
 -28-




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Section 2.17(c) Company Registered Intellectual Property Rights PTO
     -29-




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Distributors
 Section 2.17
 Section 2.17(k)
  -30-




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Section 2.17(n) Third Party Platform
   Section 2.17(q)
 -31-




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Section 2.17(u)(i)
 -32-




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Section
2.17(u)(ii) Section 2.17(u)(iii)
 Section 2.17(u)(ii) (iii)
 Section 2.17(w)
 -33-




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Section 2.17(z)
  Contracts
    -34-




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;
      -35-




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Section 2.18
   Company
Contract
 Customers and Suppliers
 Section 2.19(a) Significant Customers
 Section 2.19(b) Significant Suppliers
 -36-




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Insurance Insurance Policies Section 2.20
 Opinion of Financial Advisor
 Board Approval
 State Takeover Statutes; Rights Agreement
   Interested Party Transactions
 -37-




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Section
2.11(b) provided, however Section 2.24
 Illegal Payments, Etc Privacy Policies; Third Party Privacy
Obligations; Web Site Terms and Conditions
 Section 2.25
 Company Sites
 Privacy Statements Individuals
 Terms and Conditions
  -38-




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Section 2.25(e)
   -39-




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Third Party Privacy Obligations
  ARTICLE III
REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB
  Corporate Organization
 Authority Relative to this Agreement
 -40-




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No Conflict; Required Filings and Consents
 Section
3.3(b)
  Activities of Merger Sub
 Financing
 ARTICLE IV
CONDUCT PRIOR TO THE EFFECTIVE TIME
 Conduct of Business by Company
 -41-




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Section 4.1(a)
    Section 2.3
  -42-




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provided
 Section 4.1(e)
 Section 2.11
  Section 2.11
 Section 6.3(g)
 -43-




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provided Section 4.1(m)
  Section 4.1(l)
 -44-




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Section 4.1 Section
4.1 Section 2.18
        Section
4.1(a) 4.1(w)
 Section 7.5 Section 8.2 Section 4.1 Section 4.1
 -45-




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ARTICLE V
ADDITIONAL AGREEMENTS
 Proxy Statement
 Proxy
Statement Section 5.1
  -46-




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Meeting of Company Stockholders
 Stockholders Meeting Section 5.4(c) Section 5.2(a) Section 5.4(c) Section 7.1 Section 5.4(c)
 Section
2.21 Section 5.4(c)
 -47-




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Confidentiality; Access to Information
 Confidentiality Agreement
  Section 5.3
 No Solicitation
 Representatives Section 5.4(d)
 -48-




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Section 5.4(d) provided, however Section
5.4 Section 5.4 Section 5.4(a) Section 5.4(a) provided, however,
 -49-




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Section 5.4(a) Section 5.4(a)
 Section 5.4(a)
 Change
of Recommendation Section 7.1(e) Section 5.4(d) Section 5.2 Section 5.4(c) Change of Recommendation Notice
 -50-




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Acquisition Proposal Acquisition Transaction Superior Offer Section 5.4(a)
 provided Section 5.4(c)
 -51-




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Public Disclosure
 Section 5.4(c)
  Rights Agreement
 Reasonable Efforts; Notification
 Section 5.4 ARTICLE VI Section 5.7(a) Section 5.7 Section 5.7(a)
 -52-




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Section 5.7(a) FTC DOJ Action of
Divestiture Section 5.7 provided that Antitrust Law
 ARTICLE VI
 -53-




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provided, however
 Indemnification
 Indemnified
Parties Section 5.8
 provided, however
 Section 5.8 Section 5.8
 Termination of Certain Benefit Plans Section
5.9 Section 5.9 Company Benefit Plans
 -54-




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Section 5.9
 Employee Benefits
 Transferred Employee Transferred Employees Parent Employee Plan Parent Employee Plans Section 5.9 provided
  Section 5.9
 FIRPTA Certificate
 ARTICLE VI
CONDITIONS TO THE MERGER
 Conditions to Obligations of Each Party to Effect the Merger
 Company Stockholder Approval
 -55-




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No Order
 Proxy Statement
 HSR Act and Comparable Laws .
 Additional Conditions to Obligations of Company
 Representations and Warranties
 Agreements and Covenants
 Additional Conditions to the Obligations of Parent and Merger Sub
 Representations and Warranties
 -56-




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provided, however Section 2.3(a) Sections 2.3(d) 2.7(b) 2.16 2.21 2.22 2.23 Sections 2.10 2.17
 Agreements and Covenants
 Material Adverse Effect
 Consents Section 6.3(d)
 No Governmental Restriction Section 6.1(b)
 Non-Competition Agreements; Amended Change of Control Agreements
 -57-




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Founder Health Insurance Waivers Schedule 6.3(g) Schedule
6.3(g) Schedule 6.3(g)
 ARTICLE VII
TERMINATION, AMENDMENT AND WAIVER
 Termination
  End Date provided, however Section 7.1(b)
  provided,
however Section 7.1(d)
 -58-




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Section
5.4(c) Section 7.3
 Section
6.2(a) Section 6.2(b)) provided, however Section 7.1(f) Section 7.1(f)
 Section
6.3(a) Section 6.3(b) provided, however Section 7.1(g) Section 7.1(g);
 provided, however Section 7.1(h)
 -59-




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Section 5.4
 Triggering Event Section 5.1(a)
 Notice of Termination; Effect of Termination Section 7.1 provided Section 7.1 Section 7.1 Section 5.3(a) Section 7.2 Section 7.3 ARTICLE VIII
 -60-




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Fees and Expenses
 General Section 7.3 provided, however Section 5.7
 Company Payments
 Termination Fee Section 7.1(i)
 Section 7.1(e)
 Section 7.1(b) Section 7.1(d)
 Section 7.1(g) Section
6.3(b)
 -61-




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Section 7.3(b) Section 7.3(b) Section
7.3(b) Section 7.3(b) Section 7.3(b) Section 7.3(b)
 Section 7.1 Section 7.3(b) Section 7.1 Section 7.3(b) Section 7.3(b) Section 7.1 Section 7.3(b)
 -62-




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Section 7.3(b)
 Company Acquisition
 Amendment
 Extension; Waiver provided Section 6.1(a) Section 4.1
 ARTICLE VIII
GENERAL PROVISIONS
 Non-Survival of Representations and Warranties
 -63-




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Notices Section 4.1
 (a)
    
    if to Parent or Merger Sub, to:Sybase, Inc.
One, Sybase Drive
Dublin, California 94568
Attention: Daniel Carl, General Counsel
Telephone No.: (925) 236-5000
Telecopy No.: (925) 236-6823with a copy to:OMelveny & Myers LLP
Embarcadero Center West
275 Battery Street, Suite 2600
San Francisco, California 94111
Attention: Michael S. Dorf, Esq.
Telephone No.: (415) 984-8700
Telecopy No.: (415) 984-8701if to the Company, to:Extended Systems Incorporated
5777 North Meeker Avenue
Boise, Idaho 83713
Attention: Charles W. Jepson, President and Chief Executive Officer
Telephone No.: (208) 287-6087
Telecopy No.: (208) 327-5004with a copy to:Wilson Sonsini Goodrich & Rosati, Professional Corporation
650 Page Mill Road
Palo Alto, California 94304
Attention: Thomas C. DeFilipps
                  Martin W. Korman, Esq.
Telephone No.: (650) 493-9300
Telecopy No.: (650) 493-6811
 -64-




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Interpretation; Knowledge
  Knowledge
 Material Adverse Effect Effect provided, however
 person
 -65-




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Counterparts
 Entire Agreement; Third Party Beneficiaries Section 5.8
 Severability
 Other Remedies; Specific Performance
 Governing Law
 Rules of Construction
 Assignment
 -66-




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Waiver of Jury Trial
 Remainder of Page Intentionally Left Blank
 -67-




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SYBASE, INC.By:
    
    /s/ John ChenName:
    
    John ChenTitle:
    
    Chairman, President and Chief Executive
OfficerERNST ACQUISITION CORPORATIONBy:
    
    /s/ Marty BeardName:
    
    Marty BeardTitle:
    
    PresidentEXTENDED SYSTEMS INCORPORATEDBy:
    
    /s/ Charles W. JepsonName:
    
    Charles W. JepsonTitle:
    
    President & CEO
 [Signature Page to Agreement and Plan of Merger]
 -68-