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                                                                   EXHIBIT 10.12
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                          PLAN AND AGREEMENT OF MERGER
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         THIS PLAN AND AGREEMENT OF MERGER (the "Agreement") dated as of
February 22, 2000 among TELXON CORPORATION, a Delaware corporation ("Telxon"),
META TECHNOLOGIES CORPORATION, a Delaware corporation and a wholly-owned
subsidiary of Telxon ("MetaTechnologies"), and METANETICS CORPORATION, a
Delaware corporation ("Metanetics").

         WHEREAS, Telxon is party to a Stock Purchase Agreement (the "Stock
Purchase Agreement"), dated as of January 19, 2000, with Accipiter Corporation
and Accipiter II, Inc. (together, the "Minority Stockholders") providing for the
acquisition by Telxon, directly or through its subsidiaries, of all of the stock
held by the Minority Shareholders in Metanetics based upon an agreed value for
Metanetics' Common Stock of $6.73 per share (the "Agreed Value") and effected
either as an outright purchase of such shares by Telxon or in such manner
intended to qualify as a tax-free reorganization under Section 368 of the
Internal Revenue Code of 1986, as amended, upon which the parties may agree;

         WHEREAS, as contemplated by the Stock Purchase Agreement, Telxon is
entering into a stock purchase agreement (the "Stock Acquisition Agreement")
with the persons listed on the attached Schedule I (the "Other Shareholders")
providing for the cash purchase by Telxon of all of the Metanetics stock held by
such other persons at the Agreed Value, less any indebtedness owed by such
persons in respect of such stock;

         WHEREAS, Telxon has retained and received an opinion from a financial
advisor to the effect that the Agreed Value at which Telxon is acquiring
Metanetics' Common Stock is fair, from a financial point of view, to Telxon;

         WHEREAS, as contemplated by the Stock Purchase Agreement, the merger of
Metanetics with and into MetaTechnologies in accordance with the laws of the
State of Delaware (the "Merger") provided for in this Agreement is being
undertaken as the agreed alternative structure for effecting Telxon's
acquisition of the Metanetics Common Stock of the Minority Shareholders; and

         WHEREAS, the respective Boards of Directors of Telxon, MetaTechnologies
and Metanetics, and the shareholders of Metanetics have approved the Merger upon
the terms and subject to the conditions set forth in this Agreement.

         NOW, THEREFORE, in consideration of the premises and of the mutual
covenants, representation, warranties and agreements herein contained, the
parties hereto agree as follows:

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         1. THE MERGER

                  1.1 THE MERGER. At the Effective Time, as defined below,
subject to the terms and conditions of this Agreement, Metanetics shall be
merged with and into MetaTechnologies in accordance with the laws of the State
of Delaware with MetaTechnologies being the surviving corporation (the
"Surviving Corporation") and the separate existence of Metanetics shall cease.
At the Closing on the Closing Date, both as defined in Section 8.1, Metanetics
and MetaTechnologies shall execute and deliver a certificate of merger
substantially in the form attached hereto as Exhibit 1.1 (the "Certificate of
Merger"). The merger shall be effective when the Certificate of Merger shall
have been accepted for filing by the Secretary of State of the State of
Delaware, which filing shall be made as promptly as practicable following the
Closing (as defined below). When used in this Agreement, the term "Effective
Time" shall mean the time on the date as of which the Certificate of Merger
shall have been so accepted for filing in the State of Delaware.

                  1.2 THE SURVIVING CORPORATION. At the Effective Time, the name
of MetaTechnologies shall, as provided in the Certificate of Merger, be changed
to and become "Metanetics Corporation", and its corporate existence shall
thereafter continue under the laws of the State of Delaware. By virtue of the
Merger, at the Effective Time, all the rights, privileges, powers, immunities
and franchises, public or private, of Metanetics and MetaTechnologies, and all
the property, real, personal and mixed, and all debts due on whatever account to
either of them, including subscriptions to shares, and all other choses in
action of Metanetics and MetaTechnologies, shall vest in and become the property
of the Surviving Corporation without further act or deed, and the Surviving
Corporation shall be deemed to have assumed and shall be responsible and liable
for all the liabilities and obligations of Metanetics and MetaTechnologies in
the same manner and to the same extent as if the Surviving Corporation had
itself incurred such liabilities and obligations. A claim existing or action or
proceeding pending by or against Metanetics or MetaTechnologies may be
prosecuted as if the Merger had not taken place, or the Surviving Corporation
may be substituted in its place; and the rights of creditors and liens upon the
property of Metanetics or MetaTechnologies shall not be impaired by the Merger.

                  1.3 CONTINUATION OF BUSINESS. The Surviving Corporation shall,
after the Effective Time, continue the businesses of Metanetics and
MetaTechnologies with the assets of both of such constituent corporations.

                  1.4 CERTIFICATE OF INCORPORATION OF THE SURVIVING CORPORATION.
The Certificate of Incorporation of MetaTechnologies in effect immediately prior
to the Effective Time shall, from and after

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the Effective Time be the Certificate of Incorporation of the Surviving
Corporation until thereafter altered, amended or repealed in accordance with
law.

                  1.5 BY-LAWS OF THE SURVIVING CORPORATION. The By-Laws of
MetaTechnologies in effect immediately prior to the Effective Time shall be the
By-Laws of the Surviving Corporation until thereafter altered, amended or
repealed in accordance with law.

                  1.6 DIRECTORS AND OFFICERS OF SURVIVING CORPORATION. The
directors of MetaTechnologies immediately prior to the Effective Time shall be
the directors of the Surviving Corporation. As of and from and after the
Effective Time the officers of the Surviving Corporation shall be the persons
set forth on Exhibit 1.6 attached hereto. Each of such directors and officers
shall hold office until their respective successors are duly elected or
appointed and qualified in the manner provided in the Certificate of
Incorporation and By-Laws of the Surviving Corporation, or as otherwise provided
by law.

                  1.7 CONSIDERATION FOR OR CANCELLATION OF METANETICS STOCK. As
of the Effective Time, by virtue of the Merger and without any action on the
part of the holder thereof:

                           (a) All of the shares of the Voting Common Stock, par
value $.01 per share, of Metanetics (the "Metanetics Common Stock"), other than
the Pre-Existing Parent Investment and any shares of Metanetics Common Stock
held in the treasury of Metanetics (the holders of Metanetics Common Stock other
than Metanetics (as to the shares held in its treasury) and the holder(s) of the
Pre-Existing Parent Investment being collectively referred to as the "Minority
Shareholders"), shall be converted into the right to receive the following
consideration, based upon the Agreed Value of the Metanetics Common Stock: (i)
the forgiveness and cancellation of the indebtedness owed by the respective
Minority Shareholders as set forth on Schedule 1.7 hereto (the "Cancelled
Indebtedness"); and (ii) an aggregate of Four Hundred Seventy-Seven Thousand
Seven Hundred Ninety (477,790) shares of restricted Common Stock, par value $.01
per share, of Telxon ("Telxon Common Stock" or the "Merger Consideration"),
which shall be allocated among the Minority Shareholders based upon the Agreed
Value of their respective holdings of Metanetics Common Stock prior to the
Merger, less their respective amounts of Cancelled Indebtedness, as set forth on
Schedule 1.7. The shares of Telxon Common Stock issued to the Minority
Stockholders shall bear the following restrictive legend:

         The Shares of Common Stock represented by this Certificate have not
         been registered under the Securities Act of 1933 and may not be sold,
         assigned, transferred, pledged or hypothecated unless (A) the same
         shall first have been registered or received such other regulatory
         approval or been described in any such regulatory filing as may be
         required

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         under applicable law or (B) the issuer shall have received an opinion
         of counsel that an exemption from such registration or other regulatory
         requirement is available with respect to such transaction.

                           (b) Each of the shares of Metanetics Common Stock
evidencing the Pre-Existing Parent Investment shall be cancelled as of the
Effective Time without the payment of any consideration therefor.

                           (c) Each share of capital stock of MetaTechnologies
issued and outstanding immediately prior to the Effective Time shall remain
outstanding after the Effective Time and continue to constitute one (1) fully
paid and nonassessable share of Common Stock, no par value, of the Surviving
Corporation.

                  1.8 NO FURTHER RIGHTS OR TRANSFERS. At and after the Effective
Time, each holder of Metanetics Common Stock outstanding immediately prior to
the Effective Time entitled to receive Merger Consideration pursuant to Section
1.7 (the "Minority Shareholders", which terms does not include the holder(s) of
the Pre-Existing Parent Investment) shall cease to have any rights as a
shareholder of Metanetics, except for the right to receive its allocable portion
of the Merger Consideration in exchange for its certificate or certificates for
and in cancellation of such Metanetics Common Stock. The stock transfer books of
Metanetics shall be closed as of the Effective Time, and there shall be no
further registration of transfers on the stock transfer books of Metanetics
Common Stock thereafter.

                  1.9 INVESTMENT PURPOSE; REGISTRATION OF TELXON COMMON STOCK.
As a condition to its right to receive the Merger Consideration and the
cancellation and forgiveness of its Cancelled Indebtedness, each Minority
Shareholder to receive Telxon Common Stock in exchange for its Metanetics Common
Stock pursuant to Section 1.7 will be required to execute and deliver at or
prior to the Closing an agreement ("Investment and Registration Rights
Agreement"), substantially in the form attached as Exhibit 1.9, representing to
Telxon that, inter alia, such shareholder is acquiring the Telxon Common Stock
to be issued to it for its own account for investment purposes and not with a
view to a distribution thereof. The Investment and Registration Rights Agreement
will also contain certain representations of the Minority Shareholders
confirming their good and unencumbered title to their Metanetics Common Stock
being surrendered in the Merger, the certificates for which shall be delivered
to Telxon at the Closing, as well as certain covenants and agreements on behalf
of the Minority Stockholder with respect to the registration of the Telxon
Common Stock with the United States Securities and Exchange Commission which, as
a signatory to the Investment and Registration Rights Agreement, Telxon agrees,
as more fully set forth in the Investment and Registration Rights Agreement, to
use its best efforts to effect. Telxon hereby

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confirms that it will enter into the Investment and Registration Rights
Agreement in the form attached hereto for purposes of agreeing to the
undertakings set forth therein with respect to its registration of the Telxon
Common Stock as well as to make certain representations set forth therein.
MetaTechnologies and Metanetics also agree to enter into the Investment and
Registration Rights Agreement for purposes of making certain representations set
forth therein.

                  1.10 PAYMENTS IN RESPECT OF STOCK OPTIONS. Each of the
Metanetics directors, officers and employees listed on the attached Schedule
1.10 (collectively, the "Optionees") as holding currently outstanding options
for the purchase of Metanetics Common Stock currently outstanding under the
Metanetics 1996 Stock Option Plan, as amended (the "Stock Option Plan"), or as
having been previously granted options for the purchase of Metanetics Common
Stock which have subsequently been cancelled and rescinded (all of the
outstanding or cancelled and rescinded grants listed on Schedule 1.10 being
collectively referred to as "Stock Options"), at the respective exercise prices
indicated on Schedule 1.10 shall be entitled to receive from the Surviving
Corporation a cash payment (less applicable withholding taxes, if any) equal to
the product obtained by multiplying (i) the excess of the Agreed Value over the
exercise price per share shown opposite his of her name on Schedule 1.10 by (ii)
the number of shares shown opposite his or her name on Schedule 1.10. Such
payments shall be made by the Surviving Corporation, and Telxon hereby agrees to
cause the same to be so made, within five (5) business days after the
consummation of the merger whereby Cisco Systems, Inc. is acquiring Telxon's
former Aironet Wireless Communications, Inc. subsidiary and through which
Telxon's continuing substantial minority interest will be taken out along with
the rest of the Aironet stockholders (the "Aironet/Cisco Transaction").

                           (a) The right of each Optionee to receive the cash
payment to which he or she is entitled shall not be affected by the termination
or expiration of the Optionee's employment or directorship with Metanetics or,
as the successor to Metanetics' business, the Surviving Corporation prior to the
date for payment thereof to him or her, except that an Optionee who, as
reasonably determined by the Board of Metanetics (or after the Merger, of the
Surviving Corporation) or an appropriate committee of such Board, commits an act
of Misconduct or Prohibited Conduct (as such terms are defined in the Stock
Option Plan) shall by reason of such conduct forfeit, and shall not be entitled
to receive, such cash payment, and the provisions of Section 16 of the Stock
Option Plan shall apply to each Optionee receiving such cash payment with the
same force and effect as if he or she had received and exercised an option under
the Stock Option Plan and disposed of the stock acquired through such exercise.

                           (b) As a condition to his or her right to receive the
cash payment described above in this Section 1.10, each Optionee shall be
required to sign and deliver at or prior to the Closing an

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agreement ("Option Settlement Agreement"), substantially in the form attached as
Exhibit 1.10, acknowledging and agreeing that, inter alia, such cash payment
shall constitute payment in full for any and all rights which he or she may have
with respect to the Optionee's Stock Option(s) and that from and after the
consummation of the Merger the Optionee shall have no rights with respect to his
or her Stock Option(s) except for the right to receive such cash payment. Telxon
and MetaTechnologies agree to join as signatories to the Option Settlement
Agreement for purposes of confirming their promise to pay or cause to be paid
the cash settlement payments provided for in this Section 1.10.

         2. REPRESENTATIONS AND WARRANTIES OF METANETICS.

         Metanetics represents and warrants to Telxon and MetaTechnologies as
follows:

                  2.1 DUE INCORPORATION AND AUTHORITY. Metanetics is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Delaware and has the corporate power and lawful authority to
own, lease and operate its assets and properties and to carry on its business as
now being conducted.
                  2.2 TITLE TO OUTSTANDING STOCK. The Minority Shareholders
named in Schedule 1.7 constitute all of the record and beneficial owners of
Metanetics Common Stock (other than the Pre-Existing Parent Investment, the
shares being acquired by Telxon pursuant to the Stock Acquisition Agreement and
shares held in Metanetics treasury) as of the date hereof, and, to the best
knowledge of Metanetics, each such shareholder has good, valid and marketable
title to its holdings of Metanetics Common Stock, free and clear of any lien,
pledge, security interest, adverse claim or right, charge, covenant,
restriction, voting trust or similar arrangement, equity or other encumbrance of
any nature whatsoever, except such restrictions on transfer as may be imposed by
the securities laws of the United States or of any State. All of the outstanding
shares of Metanetics Common Stock are duly authorized and are validly issued,
fully paid and nonassessable, except to the extent of the indebtedness
originally owed to Metanetics as listed on Schedule 1 or Schedule 1.7. No shares
of any other class of Metanetics capital stock is issued or outstanding.

                  2.3 OPTIONS OR OTHER RIGHTS. Except as disclosed on Schedule
1.7 and 1.10, there are no outstanding rights, subscriptions, warrants, calls,
unsatisfied preemptive rights, options or other agreements of any kind entitling
any person or entity to purchase or otherwise to receive from Metanetics any of
the outstanding, authorized but unissued, unauthorized or treasury shares of the
capital stock or any other security of Metanetics, and there is no outstanding
security of any kind convertible into such capital stock.

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                  2.4 AUTHORITY TO EXECUTE AND PERFORM AGREEMENT. Metanetics has
the full legal right and power and all authority and approvals required to enter
into, execute and deliver this Agreement and the Certificate of Merger and to
perform fully Metanetics obligations thereunder, except for the approval and
adoption of this Agreement and the Merger by the Shareholders of Metanetics in
accordance with applicable provisions of Delaware law. This Agreement has been
duly executed and delivered by Metanetics and is the valid binding obligation of
Metanetics enforceable in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency or similar
laws affecting the enforcement of creditors' rights, or by limitations or the
availability of the remedy of specific performance or injunctive relief. The
execution and delivery by Metanetics of this Agreement and the Certificate of
Merger, the consummation of the transactions contemplated hereby and thereby,
and the performance by Metanetics of this Agreement and the Certificate of
Merger in accordance with their respective terms and conditions thereof, will
not (i) require the approval or consent of any governmental or regulatory body
or the approval or consent of any other person, except for the approval and
adoption of this Agreement and the Merger by the Shareholders of Metanetics in
accordance with applicable provisions of Delaware law (the approval of the
foregoing by the Board of Directors of Metanetics having been obtained); or (ii)
result in the creation of any lien or other encumbrance on any Metanetics Common
Stock or on any assets or properties of Metanetics.

                  2.5 NO AGREEMENTS AFFECTED BY THE MERGER. Neither the
execution and delivery of this Agreement nor the consummation of the
transactions contemplated hereby will, except as expressly contemplated by this
Agreement, (i) result in any payment (including, without limitation, severance,
unemployment compensation, golden parachute, bonus or otherwise) becoming due to
any director or employee of Metanetics, (ii) materially increase any benefits
otherwise payable by Metanetics or (iii) result in the acceleration of the time
of payment or vesting of any such benefits.

                  2.6 NO BREACH. The execution, delivery and performance of this
Agreement and the consummation of the transactions contemplated hereby will not
(i) violate, conflict with or result in the breach of any provision of the
Certificate of Incorporation or Bylaws of Metanetics; (ii) violate or result in
the breach of any of the terms of, result in a material modification of, or
otherwise give any other contracting party the right to terminate, or constitute
(or with notice or lapse of time or both constitute) a default under, any
material contract or other agreement to which Metanetics is a party or by or to
which it or any of its assets or properties may be bound or subject; (iii)
violate any order, writ, judgment, injunction, award or decree of any court,
arbitrator or governmental or regulatory body against, or binding upon,
Metanetics or any of its assets or properties; (iv) violate any statute, law or
regulation of any jurisdiction, which violation could have a material adverse
effect on the condition of Metanetics; or (v) violate or result in the
revocation or suspension of any governmental license, permit, order or approval
of, or registration

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with, any governmental or regulatory body that is material to the conduct of
Metanetics business as presently conducted.

                  2.7 ACTIONS AND PROCEEDINGS. There are no outstanding orders,
judgments, injunctions, awards or decrees of any court, arbitrator or
governmental or regulatory body against Metanetics, or actions, suits or claims
or legal, administrative or arbitral proceedings or investigations pending or,
to the best knowledge of Metanetics, threatened, against or involving Metanetics
or any of its properties or assets or, to the best knowledge of Metanetics and
its subsidiaries, any of their respective directors or officers (in their
capacities as such), that would prevent, enjoin, alter or materially delay any
of the transactions contemplated by this Agreement.

                  2.8 RECORDS COMPLETE. The corporate records of Metanetics
contain and at the Closing Date will contain, in all material respects, a true
and complete record of all meetings and actions of its shareholders and
directors and of all share transfers that have occurred since the formation of
Metanetics.

                  2.9 BROKERS' AND FINDERS' FEES. Metanetics has not incurred,
nor will it incur, directly or indirectly, any liability for brokerage or
finders' fees or agents' commissions or investment bankers' fees or any similar
charges in connection with this Agreement or any transaction contemplated
hereby.

                  2.10 REPRESENTATIONS AND WARRANTIES ON CLOSING DATE. The
representations and warranties contained in this Article 2 shall be true in all
material respects on and as of the Closing Date with the same force and effect
as though such representations and warranties had been made on and as of the
Closing Date.

         3.0 REPRESENTATIONS AND WARRANTIES OF TELXON AND METATECHNOLOGIES.
Telxon and MetaTechnologies represent and warrant to Metanetics as follows:

                  3.1 DUE INCORPORATION. Each of Telxon and MetaTechnologies is
a corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware, and has the corporate power and authority to own,
lease and operate its assets and business and to carry on its business as now
being and as heretofore conducted.

                  3.2 AUTHORITY TO EXECUTE AND PERFORM AGREEMENT. Each of Telxon
and MetaTechnologies has the full legal right and power and all authority and
approvals required to enter into,

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execute and deliver this Agreement and the Certificate of Merger, and to perform
fully its obligations hereunder and thereunder. This Agreement has been duly
executed and delivered by each of Telxon and MetaTechnologies. This Agreement is
the valid and binding obligation of each of Telxon and MetaTechnologies
enforceable in accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency or similar laws affecting the
enforcement of creditors' rights, or by limitations on the availability of the
remedy of specific performance or injunctive relief. The execution and delivery
by each of Telxon and MetaTechnologies of this Agreement (and the Certificate of
Merger by MetaTechnologies), the consummation of the transactions contemplated
hereby, and the performance by Telxon and MetaTechnologies of this Agreement
(and the Certificate of Merger by MetaTechnologies) in accordance with the terms
and conditions hereof, will not (i) require the approval or consent of any
governmental or regulatory body or the approval or consent of any other person,
except the Boards of Directors of Telxon and MetaTechnologies, which approvals
have been obtained; or (ii) conflict with or result in any breach or violation
of any of the terms and conditions of, or constitute (or with notice or lapse of
time or both constitute) a default under, any certificate of incorporation,
by-law, statute, regulation, order, judgment or decree of or applicable to
Telxon and MetaTechnologies or any instrument, contract or other agreement to
which Telxon or MetaTechnologies is a party or by or to which Telxon or
MetaTechnologies or any of their respective properties is bound or subject.

                  3.3 TELXON COMMON STOCK. The shares of Telxon Common Stock to
be issued to the Minority Shareholders as provided in Section 1.7 have been duly
and validly authorized; have been duly reserved for issuance; and, when issued
in accordance with the terms of this Agreement, will be duly and validly issued,
fully paid and non-assessable. No further approval or authority of the
stockholders or the Board of Directors of either Telxon or MetaTechnologies will
be required for the issuance of the Telxon Common Stock as contemplated by this
Agreement.

                  3.4 REPRESENTATIONS AND WARRANTIES ON CLOSING DATE. The
representations and warranties contained in this Article 3 shall be true in all
material respects on and as of the Closing Date with the same force and effect
as though such representations and warranties had been made on and as of the
Closing Date.

         4.0 COVENANTS. Telxon, MetaTechnologies and Metanetics covenant with
one another as follows:

                  4.1 CONDUCT OF BUSINESS. From the date hereof through the
Closing Date, Metanetics shall conduct its business solely in the ordinary
course.

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                  4.2 CONTINUED EFFECTIVENESS OF REPRESENTATIONS AND WARRANTIES
OF METANETICS. From the date hereof through the Closing Date, Metanetics shall
conduct its business in such manner so that the representations and warranties
contained in Section 2 shall continue to be true and correct on and as of the
Closing Date as if made on and as of the Closing Date; and Telxon and
MetaTechnologies shall conduct their respective affairs in such manner so that
the representations and warranties on their respective parts contained in
Section 3 shall continue to be true and correct on and as of the Closing Date as
if made on and as of the Closing Date. Each party shall give prompt notice to
the others of (i) any event, condition or circumstance occurring from the date
hereof through the Closing Date that would constitute a violation or breach of
any representation, warranty or covenant on its part contained in this
Agreement, or (ii) any event, occurrence, transaction or other item which would
have been required to have been disclosed on any attachment hereto or document
or other statement delivered hereunder, had such event, occurrence, transaction
or item existed on the date hereof.

                  4.3 SHAREHOLDER APPROVAL. Metanetics shall use its best
efforts to promptly convene a special meeting of its shareholders, or obtain
unanimous written consent resolutions of its shareholders, pursuant to which
special meeting or unanimous written consent resolutions the shareholders of
Metanetics shall approve this Agreement.

                  4.4 EXPENSES. The parties to this Agreement shall, except as
otherwise specifically provided herein, bear their respective expenses incurred
in connection with the preparation, execution and performance of this Agreement
and the transactions contemplated hereby, including, without limitation, all
fees and expenses of agents, representatives, counsel and accountants.

                  4.5 FURTHER ASSURANCES. Before and after the Closing, each of
the parties shall execute such documents and other papers and take such further
actions as may be reasonably required or desirable to carry out the provisions
of this Agreement and the transactions contemplated hereby. Each such party
shall use its best efforts to fulfill or obtain the fulfillment of the
conditions to the Closing.

         5.0 CONDITIONS PRECEDENT TO THE OBLIGATION OF TELXON AND
METATECHNOLOGIES TO CLOSE. The obligation of each of Telxon and MetaTechnologies
to enter into and complete the Closing and consummate the transactions
contemplated hereby is subject to the fulfillment on or prior to the Closing
Date of the following conditions, any one or more of which may be waived by it:

                  5.1 REPRESENTATIONS, WARRANTIES AND COVENANTS. The
representations and warranties of Metanetics contained in this Agreement shall
be true in all material respects on and as of the

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Closing Date with the same force and effect as though made on and as of the
Closing Date. Metanetics shall have performed and complied in all material
respects with all covenants and agreements required by this Agreement to be
performed or complied with by Metanetics on or prior to the Closing Date.

                  5.2 ACQUISITION OF METANETICS COMMON SHARES OF OTHER
SHAREHOLDERS. Prior to the Closing, Telxon shall have consummated its
acquisition pursuant to the Stock Acquisition Agreement of all Metanetics Common
Shares held by the Other Shareholders and, under the terms of the Stock
Acquisition Agreement or otherwise, such Other Shareholders shall have waived in
writing any and all rights they may have under the Amended and Restated
Shareholder Agreement, dated as of March 28, 1996 by and among Metanetics and
its stockholders, as amended, with respect to the disposition by the Minority
Shareholders of their Metanetics Common Shares as provided in the Stock Purchase
Agreement as implemented by this Agreement.

                  5.3 UNDERTAKINGS BY MINORITY SHAREHOLDERS. Prior to or
simultaneously with the Closing, each of the Minority Shareholders who are to
receive Telxon Common Stock by virtue of the Merger as provided in Section 1.7
and Metanetics shall have executed and delivered the Investment and Registration
Rights Agreement substantially in the form attached as Exhibit 1.9.

                  5.4 UNDERTAKINGS BY OPTIONEES. Prior to or simultaneously with
the Closing, each of the Optionees who are to receive a cash payment in
settlement of their Stock Options as provided in Section 1.10 shall have
executed and delivered an Option Settlement Agreement substantially in the form
attached as Exhibit 1.10.

                  5.5 SHAREHOLDER APPROVAL; DISSENTERS' RIGHTS. Prior to or
simultaneously with the Closing, Metanetics shall have obtained the unanimous
approval or consent of its shareholders approving and adopting this Agreement,
and no such shareholder shall have exercised or threatened to exercise
dissenters' rights.

                  5.6 NO INJUNCTIONS OR OTHER LEGAL PROCEEDINGS. No order,
judgment, injunction, award or decree shall have been entered by any court,
arbitrator or governmental or regulatory body, and no action, suit or claim or
legal, administrative or arbitral proceeding or investigation shall be pending,
that would or seeks to prevent, enjoin, alter or materially delay the Merger or
any other transaction contemplated by this Agreement or the continuation of the
ordinary course of Metanetics' business by the Surviving Corporation following
the consummation of the Merger .

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         6.0 CONDITIONS PRECEDENT TO THE OBLIGATION OF METANETICS TO CLOSE.

                  6.1 REPRESENTATIONS AND COVENANTS. The representations and
warranties of Telxon and MetaTechnologies contained in this Agreement shall be
true in all material respects on and as of the Closing Date with the same force
and effect as though made on and as of the Closing Date. Telxon and
MetaTechnologies shall have performed and complied in all material respects with
all covenants and agreements required by this Agreement to be performed or
complied with by it on or prior to the Closing Date.

                  6.2 SHAREHOLDER APPROVAL. The unanimous approval of the
shareholders of Metanetics referred to in Sections 2.4, 4.3 and 5.5 hereof shall
have been obtained.

                  6.3 ACQUISITION OF OTHER MINORITY SHARES. Prior to the
Closing, Telxon shall have consummated its acquisition of all Metanetics Common
Shares held by persons or entities other than the Minority Shareholders or
Telxon or any of its subsidiaries pursuant to the Stock Acquisition Agreement.

                  6.4 UNDERTAKINGS BY TELXON AND METATECHNOLOGIES. Prior to or
simultaneously with the Closing, Telxon and MetaTechnologies shall each have
executed and delivered the Investment and Registration Rights Agreement
substantially in the form attached as Exhibit 1.9 and an Option Settlement
Agreement substantially in the form attached as Exhibit 1.10 with each of the
Optionees who are to receive a cash payment in settlement of their Stock Options
as provided in Section 1.10.

                  6.5 NO INJUNCTIONS. No order, judgment, injunction, award or
decree shall have been entered by any court, arbitrator or governmental or
regulatory body which would enjoin or otherwise prevent the consummation by
Metanetics of the Merger or any other transaction contemplated by this Agreement
on its part to be performed.

         7.0 CLOSING, TERMINATION, AMENDMENT AND WAIVER.

                  7.1 CLOSING. The closing of the Merger (the "Closing") shall
be held on or about February 22, 2000 at such time ("Closing Date") and place as
the parties may agree.

                  7.2 TERMINATION. This Agreement may be terminated at any time
prior to the Effective Time, whether before or after approval by the
shareholders of Metanetics:

                                      -12-
<PAGE>   13

                           (a) By the mutual consent of Telxon, MetaTechnologies
and Metanetics as authorized by their respective Boards of Directors;

                           (b) By the Board of Directors of any of Telxon,
MetaTechnologies or Metanetics if the Closing does not occur within the period
permitted for the consummation of the Merger by the terms of Section 5 of the
Stock Acquisition Agreement;

                           (c) By the Board of Directors of either Telxon or
MetaTechnologies if the shareholders of Metanetics (other than Telxon or any
Telxon subsidiary) fail to adopt and approve this Agreement and the Merger as of
the time scheduled for the Closing;

                           (d) By the Board of Directors of Metanetics if the
shareholders of Metanetics fail to adopt and approve this Agreement and the
Merger as of the time scheduled for the Closing;

                           (e) By the Board of Directors of either Telxon or
MetaTechnologies if Metanetics fails to perform in any material respect any of
its obligations under Sections 4.1 and 4.3 of this Agreement;

                           (f) By the Board of Directors of any of Telxon,
MetaTechnologies or Metanetics if a court of competent jurisdiction or a
governmental regulatory or administrative agency or commission shall have issued
an order, decree or ruling or taken any other action permanently restraining,
enjoining or otherwise prohibiting the consummation of the Merger or any of the
other transactions contemplated by this Agreement;

                  7.3 EFFECT OF TERMINATION. In the event of termination of this
Agreement as provided in 7.2 above, this Agreement shall forthwith become void
and have no effect, and there shall be no liability on the part of Telxon,
MetaTechnologies or Metanetics or their respective officers, directors,
shareholders or advisors, except to the extent of any obligation the parties
have to pay their respective expenses incurred in connection with this Agreement
and except in respect of any liability for breach of this Agreement.

                  7.4 AMENDMENT. This Agreement may be amended by the parties
hereto by action taken by all of their respective Boards of Directors at any
time before or after approval hereof by the shareholders of Metanetics but,
after any such approval, no amendment shall be made which reduces the amount of
Merger Consideration or Cancelled Indebtedness or in any way materially
adversely affects the rights of the Minority Shareholders without the further
approval of the Minority Shareholders. This Agreement may not be amended except
by an instrument in writing, signed on behalf of each of the parties hereto.

                                      -13-
<PAGE>   14

                  7.5 WAIVER. Any term or provision of this Agreement (other
than the requirement for shareholder approval of the Merger by Metanetics'
Shareholders) may be waived in writing at any time by the party that is entitled
to the benefits of the waived term or provision.

         8. NOTICES. Any notice required hereunder shall be in writing and shall
be deemed to have been given upon receipt, or if sent by facsimile transmission,
upon confirmation of transmission, or if sent by overnight courier, the first
business day after timely deposit with the courier for next business day
delivery as follows:

         To Telxon:                         Telxon Corporation
         ----------                         3330 West Market Street
                                            Akron, OH 44333
                                            Attn:  Legal Department
                                            Fax Number:  330-664-2009

         To MetaTechnologies:               Meta Technologies Corporation
         --------------------               c/o Telxon Corporation
                                            3330 West Market Street
                                            Akron, OH 44333
                                            Attn:  Legal Department
                                            Fax Number:  330-664-2009

         To Metanetics:                     Metanetics Corporation
         --------------                     22310 20th Ave., S.E.
                                            Suite 100
                                            Bothell, WA 98021
                                            Attn:  President
                                            Fax Number:  425-806-7560

or to such other address of which any party may notify the other parties
provided in accordance with this Section 8.

         9. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
between the parties with respect to the subject matter hereof, and no
representations or promises except those set forth herein have been made to
induce any party to enter into this Agreement.

                                      -14-
<PAGE>   15

         10. CONSTRUCTION. Except to the extent that the Merger is governed by
the laws of the State of Delaware, this Agreement shall be governed by and
construed in accordance with the laws of the state of Ohio, without regard to
its conflict of laws principles, except that the terms of this Agreement shall
be interpreted according to their plain meaning and not strictly for or against
any party.

         11. DISPUTES. The parties will attempt in good faith to resolve any
controversy arising out of or relating to this Agreement. Any litigation
relating to this Agreement shall be brought by the parties in the courts, state
or federal, sitting in Summit County, Ohio, and in no other forum.

         12. EXECUTION IN COUNTERPARTS.This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

         13. SUCCESSORS AND ASSIGNS. This Agreement and the parties' respective
rights and obligations hereunder shall be binding upon and inure to the benefit
of the respective successors and assigns, provided, however, that no party shall
assign any of its rights or obligations hereunder to any third party without the
prior written consent of the other parties. The provisions of this Agreement are
intended for the benefit of the parties hereto, and no third party shall be
entitled to enforce or rely upon the provisions of this Agreement except as
provided by applicable law.

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

                                   TELXON CORPORATION

                                   By: /s/ John W. Paxton, Sr.
                                      ------------------------------------------

                                   Title:  CEO
                                         ---------------------------------------

                                   META TECHNOLOGIES CORPORATION

                                   By:  /s/ W.M. McGee
                                      ------------------------------------------
                                   Title: VP/CFO
                                         ---------------------------------------

                                   METANETICS CORPORATION

                                   By: /s/ Andrew Meyerson
                                      ------------------------------------------
                                   Title: Pres.
                                         ---------------------------------------

                                      -15-<PAGE>   1
                                                                 EXHIBIT 10.12.1
                                                                 ---------------

                  INVESTMENT AND REGISTRATION RIGHTS AGREEMENT
                  --------------------------------------------

         THIS INVESTMENT AND REGISTRATION RIGHTS AGREEMENT (this "Agreement")
made as of this 22nd day of February, 2000, by and between ACCIPITER
CORPORATION, ACCIPITER II, INC. (together, the "Minority Shareholders"), TELXON
CORPORATION ("Telxon"), META TECHNOLOGIES CORPORATION ("MetaTechnologies") and
METANETICS CORPORATION ("Metanetics") in fulfillment of certain conditions of
the Plan and Agreement of Merger (the "Merger Agreement"), dated as of even date
herewith, among Telxon, MetaTechnologies and Metanetics . Capitalized terms used
but not otherwise defined in this Agreement shall have the meanings given them
in the Merger Agreement.

         WHEREAS, Telxon and the Minority Shareholders are parties to a Stock
Purchase Agreement (the "Stock Purchase Agreement"), dated as of January 19,
2000, providing for the acquisition by Telxon, directly or through its
subsidiaries, of all of the stock held by the Minority Shareholders in
Metanetics effected either as an outright purchase of such shares by Telxon or
in such manner intended to qualify as a tax-free reorganization under Section
368 ("Tax-Free Reorganization") of the Internal Revenue Code of 1986, as amended
(the "Code"), upon which the parties may agree;

         WHEREAS, pursuant to the terms of the Merger Agreement, which is being
undertaken as the agreed alternative structure contemplated by the Stock
Purchase Agreement for effecting Telxon's acquisition of the Metanetics Common
Stock of the Minority Shareholders, the Minority Shareholders will be receiving
unregistered, and hence subject to certain transferability restrictions under
the federal securities laws, shares of Telxon Common Stock in exchange for their
Metanetics Common Stock and the cancellation of certain indebtedness owed with
respect thereto; and

         WHEREAS, the parties desire to enter into this Agreement to address as
between them certain collateral matters relating to the transactions
contemplated by the Merger Agreement.

         NOW, THEREFORE, for good and valuable consideration, the sufficiency of
which is hereby acknowledged, the parties hereby agree as follows:

         1. REPRESENTATIONS AND WARRANTIES.

                  (a) Telxon represents and warrants to each of the Minority
Shareholders, and each of the Minority Shareholders represents and warrants to
Telxon, that its execution and delivery of this Agreement and its consummation
of the transactions contemplated hereby have been duly authorized by

<PAGE>   2

all required action of its Board of Directors and any and all other necessary
corporate action and that this Agreement has been duly executed and delivered
for and on its behalf by the duly authorized officer signing this Agreement for
it below.

                  (b) Telxon further represents and warrants to each of the
Minority Shareholders that the execution and delivery of the Merger Agreement by
Telxon and MetaTechnologies and the consummation on their respective parts of
the transactions contemplated thereby have been duly authorized by all required
action of their respective Boards of Directors and any and all other corporate
action necessary on their respective parts and that the Merger Agreement has
been duly executed and delivered for and on behalf of each of them by their
respective duly authorized officers signing the same.

                   (c) Each of the Minority Shareholders further represents and
warrants to Telxon that (except for the debt arrangements owed Telxon or its
affiliates to be cancelled as provided in the Merger Agreement and the
procedures required by the Amended and Restated Shareholder Agreement, dated as
of March 28, 1996 by and among Metanetics and its stockholders, as amended (the
"Shareholder Agreement"), written waivers of which procedures by all of the
other Metanetics stockholders having rights under such Shareholder Agreement
with respect to the transactions contemplated by this Agreement shall be
delivered to Telxon and MetaTechnologies as a condition of the closing under the
Merger Agreement), it currently has, and will at the time of the consummation of
the Merger under the Merger Agreement have, full, valid and complete title to
and ownership (beneficially and of record) of its Metanetics Common Stock, free
and clear of any lien or other encumbrance.

                  (d) Each of Telxon and MetaTechnologies, as to itself, makes
the following representations to each of the Minority Shareholders at their
request with respect to the following matters of fact or intention which may
affect the tax treatment of the Merger under the Code:

                  (i) The fair market value of the Telxon stock received by each
         Minority Shareholder, plus the other consideration to be received by
         such shareholder, will be approximately equal to the fair market value
         of the Metanetics stock surrendered therefor.

                  (ii) Nothing has come to the attention of the management of
         Telxon and MetaTechnologies in the course of the negotiation and entry
         into the Merger Agreement to the effect that there is any plan or
         intention by the Minority Shareholders to sell, exchange, or otherwise
         dispose (to Telxon or any corporation or partnership related to Telxon)
         of a number of shares of Telxon stock received in the Merger that would
         reduce the Minority Shareholders' ownership of Telxon stock to a number
         of shares having a value, as of the date of the Merger, of less than 50
         percent of the value of the formerly outstanding stock of Metanetics
         owned by such shareholders as of the same date. For purposes of this
         representation, shares of Metanetics stock surrendered by dissenters,
         or exchanged for cash in lieu of fractional shares of Telxon stock, if
         any, will be considered to be outstanding Metanetics stock on the date
         of the Merger. Moreover, shares of

                                       2
<PAGE>   3

         Metanetics stock and shares of Telxon stock held by the Minority
         Shareholders and otherwise sold, redeemed, or disposed of prior or
         subsequent to the Merger will be considered in making this
         representation.

                  (iii) MetaTechnologies will acquire at least 90 percent of the
         fair market value of the net assets and at least 70 percent of the fair
         market value of the gross assets held by Metanetics immediately prior
         to the Merger. For purposes of this representation, amounts paid by
         Metanetics to dissenters, amounts used by Metanetics to pay its
         reorganization expenses, amounts paid by Metanetics to shareholders who
         receive cash or other property, and all redemptions and distributions
         (except for regular normal dividends) made by Metanetics immediately
         preceding the Merger, if any, will be included as assets of Metanetics
         held immediately prior to the Merger.

                  (iv) Prior to the Merger, Telxon will be in control of
         MetaTechnologies within the meaning of Section 368(c) of the Code.

                  (v) Following the Merger, MetaTechnologies will not issue
         additional shares of its stock that would result in Telxon losing
         control of MetaTechnologies within the meaning of Section 368(c) of the
         Code.

                  (vi) Telxon has no plan or intention to reacquire any of its
         stock issued in the Merger.

                  (vii) Telxon has no plan or intention to liquidate
         MetaTechnologies; to merge MetaTechnologies with and into another
         corporation; or to sell or otherwise dispose of the stock of
         MetaTechnologies. MetaTechnologies has no plan or intention, and Telxon
         has no plan or intention to cause MetaTechnologies, to sell or
         otherwise dispose of any of the assets of Metanetics acquired in the
         Merger, except for dispositions made in the ordinary course of business
         or transfers described in Section 368(a)(2)(C) of the Code.

                  (viii) To the best of the actual knowledge of the management
         of Telxon and MetaTechnologies (having made no investigation for the
         purposes of making this representation), the liabilities of Metanetics
         assumed by MetaTechnologies and the liabilities to which the
         transferred assets of Metanetics are subject were incurred by
         Metanetics in the ordinary course of its business.

                  (ix) Following the Merger, MetaTechnologies will continue the
         historic business of Metanetics or use a significant portion of the
         historic business assets of Metanetics in a business.

                  (x) Telxon and MetaTechnologies will pay their respective
         expenses, if any, incurred in connection with the Merger.

                                       3
<PAGE>   4

                  (xi) There is no intercorporate indebtedness existing between
         Telxon, MetaTechnologies, and Metanetics that was issued, acquired, or
         will be settled at a discount.

                  (xii) Neither Telxon nor MetaTechnologies is an investment
         company as defined in Section 368(a)(2)(F)(iii) and (iv) of the Code.

                  (xiii) The fair market value of the assets of Metanetics
         transferred to MetaTechnologies will equal or exceed the sum of the
         liabilities assumed by MetaTechnologies, plus the amount of
         liabilities, if any, to which the transferred assets are subject.

                  (xiv) No stock of MetaTechnologies will be issued in the
         Merger.

                  (e) Metanetics makes the following representations to each of
the Minority Shareholders at their request with respect to the following matters
of fact or intention which may affect the tax treatment of the Merger under the
Code:

                  (i) The fair market value of the Telxon stock received by the
         Minority Shareholders plus the other consideration to be received by
         such shareholders, will be approximately equal to the fair market value
         of the Metanetics stock surrendered therefor.

                  (ii) Nothing has come to the attention of Metanetics'
         management in the course of the negotiation and entry into the Merger
         Agreement to the effect that there is any plan or intention by the
         shareholders of Metanetics to sell, exchange, or otherwise dispose (to
         Telxon or any corporation or partnership related to Telxon) of a number
         of shares of Telxon stock received in the Merger that would reduce the
         Metanetics shareholders' ownership of Telxon stock to a number of
         shares having a value, as of the date of the Merger, of less than 50
         percent of the value of the formerly outstanding stock of Metanetics
         owned by such shareholders as of the same date. For purposes of this
         representation, shares of Metanetics stock surrendered by dissenters,
         or exchanged for cash in lieu of fractional shares of Telxon stock, if
         any, will be considered to be outstanding Metanetics stock on the date
         of the Merger. Moreover, shares of Metanetics stock and shares of
         Telxon stock held by Metanetics shareholders and otherwise sold,
         redeemed, or disposed of prior or subsequent to the Merger will be
         considered in making this representation.

                  (iii) MetaTechnologies will acquire at least 90 percent of the
         fair market value of the net assets, and at least 70 percent of the
         fair market value of the gross assets, held by Metanetics immediately
         prior to the Merger. For purposes of this representation, amounts paid
         by Metanetics to dissenters, amounts used by Metanetics to pay its
         reorganization expenses, amounts paid by Metanetics to shareholders who
         receive cash or other property, and all redemptions and distributions
         (except for regular normal

                                       4
<PAGE>   5

         dividends) made by Metanetics immediately preceding the Merger, if any,
         will be included as assets of Metanetics held immediately prior to the
         Merger.

                  (iv) The liabilities of Metanetics assumed by MetaTechnologies
         and the liabilities to which the transferred assets of Metanetics are
         subject were incurred by Metanetics in the ordinary course of its
         business.

                  (v) Metanetics will pay its expenses, if any, incurred in
         connection with the Merger.

                  (vi) There is no intercorporate indebtedness existing between
         Telxon, MetaTechnologies, and Metanetics that was issued, acquired, or
         will be settled at a discount.

                  (vii) Metanetics is not an investment company as defined in
         Section 368(a)(2)(F)(iii) and (iv) of the Code.

                  (viii) Metanetics is not under the jurisdiction of a court in
         a Title 11 or similar case within the meaning of Section 368(a)(3)(A)
         of the Code.

                  (ix) The fair market value of the assets of Metanetics
         transferred to MetaTechnologies will equal or exceed the sum of the
         liabilities assumed by MetaTechnologies, plus the amount of
         liabilities, if any, to which the transferred assets are subject.

                  (f) The representations and warranties contained in this
Section 1 shall be true in all material respects on and as of the Closing Date
with the same force and effect as though such representations and warranties had
been made on and as of the Closing Date. Each party shall give prompt notice to
the others of any event, condition or circumstance occurring from the date
hereof through the Closing Date that would constitute a violation or breach of
any representation, warranty or covenant on its part contained in this
Agreement.

         2. INVESTMENT INTENT. Each of the Minority Shareholders makes the
following representations, warranties, acknowledgements and agreements to Telxon
with respect to the issuance of the Telxon Common Stock to be issued to it
pursuant to the Merger Agreement:

                  (a) Each Minority Shareholder understands that the Telxon
Common Stock will not, at the time of the issuance thereof under the Merger
Agreement, have been registered under the Securities Act of 1933, as amended
(the "Securities Act"), or any state securities laws;

                  (b) The Telxon Common Stock to be issued to it pursuant to the
Merger Agreement is so being offered and sold pursuant to exemptions from
registration contained in the Securities Act and applicable state securities
laws based in part upon the Minority Shareholder's representations contained in
this Section 2;

                                       5
<PAGE>   6

                  (c) The Minority Shareholder has had the opportunity to its
satisfaction to review Telxon's quarterly and annual reports to and other
filings with the United States Securities and Exchange Commission (the "SEC")
and to ask questions of and receive answers from Telxon management regarding the
business, assets, financial condition, prospects and affairs of Telxon;

                  (d) Each Minority Shareholder is an "accredited investor" (as
such term is defined in Rule 501 under the Securities Act of 1933, as amended
(the "Securities Act")) and has such knowledge and experience in financial and
business matters that it is capable of evaluating the merits and risks of its
investment in the Telxon Common Stock and of protecting its interests in
connection with such investment;

                  (e) The Minority Shareholder is not aware of the publication
of any advertisement in connection with the Telxon Common Stock to be issued as
contemplated by this Agreement or the Stock Purchase Agreement superseded by
this Agreement;

                  (f) Each Minority Shareholder is acquiring the Telxon Common
Stock for its own account for investment only, and not with a view toward the
distribution thereof, can bear a total loss of the investment without materially
impairing its financial condition, and can bear the economic risk of the
investment indefinitely; and

                  (g) Each Minority Shareholder understands that it cannot
resell the Telxon Common Stock to be issued to it pursuant to the Merger
Agreement unless and until such securities are registered under the Securities
Act and/or applicable state securities laws or an exemption from such
registration is available, that the certificate(s) evidencing the Telxon Common
Stock to be issued to it pursuant to the Merger Agreement will be legended
regarding the absence of and necessity for such registration, and that there is
no assurance that any registration exemption will be available or that, if
available, such exemption will allow the Minority Shareholder to transfer all or
any portion of such Telxon Common Stock it may subsequently desire to transfer
when and in the amounts desired to be transferred.

The representations and warranties contained in this Section 2 shall be true in
all material respects on and as of the Closing Date with the same force and
effect as though such representations and warranties had been made on and as of
the Closing Date. Each Minority Shareholder shall give prompt notice to Telxon
of any event, condition or circumstance occurring from the date hereof through
the Closing Date that would constitute a violation or breach of any
representation, warranty or covenant on its part contained in this Agreement.

         3. REGISTRATION OF TELXON COMMON STOCK.

                  (a) Telxon agrees that, as soon as reasonably practicable
following Telxon becoming eligible to do so, it will use its reasonable best
efforts to (i) file a registration statement on Form S-3 (or similar successor
form) to register the Telxon Common Stock issued to the Minority Shareholders

                                       6
<PAGE>   7

pursuant to the Merger Agreement (the "Registrable Securities") with the SEC
under the Securities Act for resale by the Minority Shareholders as selling
stockholders and (ii) cause the same to become effective. In connection with the
effecting of such registration, Telxon shall afford the Minority Shareholders
reasonable opportunity to review and comment upon any preliminary or final
prospectus forming a part of the registration statement, and each of the
Minority Shareholders agrees to promptly and fully provide to Telxon such
cooperation in the effecting of such registration as Telxon may from time to
time reasonably request. Notwithstanding the foregoing, Telxon may postpone for
a reasonable time registration of the Registrable Securities if such
registration would materially adversely affect (including, without limitation,
through the premature disclosure thereof) a proposed financing, reorganization,
recapitalization, merger, consolidation, or similar transaction or if Telxon is
conducting a public offering of capital stock or other securities and the
managing underwriter concludes, in its reasonable judgment, that registration of
the Registrable Securities would materially adversely affect such offering.

                  (b) Telxon will use its best efforts to cause any registration
effected pursuant to Section 3(a) (the "Registration Statement") to remain
effective (with a prospectus at all times meeting the requirements of the
Securities Act) until such time as the Registrable Securities become eligible to
be re-sold by the Minority Shareholders in reliance upon SEC Rule 144. Telxon
will use its best efforts to effect such qualifications under applicable state
securities laws, and maintain the effectiveness of such qualifications for the
period that the Registration Statement is required to remain effective, as may
reasonably be requested by the Minority Shareholders (provided that Telxon shall
not be obligated to file a general consent to service of process or qualify to
do business as a foreign corporation or otherwise subject itself to taxation in
any jurisdiction solely for the purpose of any such qualification) to permit or
facilitate such sale. Telxon shall not be required to register the Registrable
Securities under any provision of foreign law.

                  (c) Telxon agrees to furnish to each Minority Shareholder a
sufficient number of prospectuses or similar documents incident to any
registration, qualification or compliance referred to in this Section 3, as such
Minority Shareholder may from time to time reasonably request.

                  (d) Promptly upon each request therefor in connection with any
registration, qualification or compliance referred to in this Section 3, each
Minority Shareholder shall furnish to Telxon information concerning its holdings
of Telxon Common Stock and the proposed manner of sale or other distribution
thereof, which information shall be correct and complete in all material
respects and shall not omit to state any material fact necessary to make such
information, in light of the circumstances, not misleading. Moreover, if, at any
time during the period that the Registration Statement is required to remain
effective, any event relating to a Minority Shareholder, its holdings of Telxon
Common Stock or its manner of sale or other distribution thereof shall occur
which would cause any information theretofore provided by the Minority
Shareholder to Telxon for use in connection with any registration, qualification
or compliance referred to in this Section 3 to constitute an untrue statement of
a material fact, or to omit to

                                       7
<PAGE>   8

state any material fact necessary to make such information, in light of the
circumstances, not misleading, the Minority Shareholder agrees promptly to
notify Telxon thereof and to promptly and fully cooperate with Telxon with
respect to any amendment or other corrective action which may be required as a
result in connection with any such registration, qualification or compliance.

                  (e) Telxon shall bear all securities registration fees, fees
and expenses of its counsel and accountants, and financial printers' and similar
out-of-pocket costs incident to the preparation, filing and maintaining of the
effectiveness of the registration, qualification and compliance referred to in
this Section 3, but shall not be responsible for any brokerage, attorneys or
other fees or expenses incurred by the selling stockholders in connection with
their re-sale the Registrable Securities.

         4. INDEMNIFICATION.

                  (a) Telxon shall defend, indemnify and hold harmless each
Minority Shareholder, each of its officers, directors and partners, and each
person, if any, who controls such Minority Shareholder, and each underwriter (if
any) acting for or on behalf of such Minority Shareholder from and against any
and all loss, damage, liability, cost and expense to which any such indemnified
person or entity may become subject under the Securities Act or otherwise, to
the extent arising out of or based on any untrue statement (or alleged untrue
statement) of any material fact contained in a Registration Statement, any
prospectus contained therein or any amendment or supplement thereto, or any
other registration, qualification or compliance effected pursuant to Section 3,
or arising out of or are based upon the omission (or alleged omission) to state
therein a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances in which they were made, not
misleading; provided, however, that Telxon will not be liable in any such case
to the extent that any such loss, damage, liability, cost or expense arises out
of or is based upon an untrue statement or omission so made in conformity with
information furnished to the Company by such selling Holder, such a controlling
person, or such underwriter, and stated to be specifically for use therein.

                  (b) Each Minority Shareholder shall defend, indemnify and hold
harmless Telxon, each other Minority Shareholder and each person, if any, who
controls Telxon or such other Minority Shareholder, and each underwriter (if
any) acting for or on behalf of such other Minority Shareholder from and against
any and all loss, damage, liability, cost and expense to which any such
indemnified person or entity may become subject under the Securities Act or
otherwise, to the extent arising out of or based on any breach by the Minority
Shareholder of its obligations under Section 3(d) or any untrue statement (or
alleged untrue statement) of any material fact contained in a Registration
Statement, any prospectus contained therein or any amendment or supplement
thereto, or any other registration, qualification or compliance effected
pursuant to Section 3, or arise out of or are based upon the omission (or
alleged

                                       8
<PAGE>   9

omission) to state therein a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances in which
they were made, not misleading, to the extent, but only to the extent, that any
such loss, damage, liability, cost or expense arises out of or is based upon an
untrue statement or omission made in reliance upon and in conformity with
information furnished to Telxon by or at the direction of the Minority
Shareholder. The Minority Shareholder's indemnification obligation under this
Section 4(b) shall be limited to such Minority Shareholder's holdings of
Registrable Securities and the proceeds from the sale thereof.

                  (c) Promptly after receipt by an indemnified party of notice
of any claim, liability or expense to which the indemnification obligations set
forth in Sections 4(a) or 4(b) would apply, the indemnified party shall give
notice thereof in writing to the indemnifying party. Such notice shall state the
information then available regarding the amount and nature of such claim,
liability or expense. If, within twenty (20) days after receiving such notice,
the indemnifying party gives written notice to the indemnified party stating
that (i) it would be liable under the provisions hereof for indemnity in the
amount of such claim if such claim were successful and (ii) that it disputes and
intends to defend against such claim, liability or expense at its own cost and
expense, then counsel for the defense shall be selected by the indemnifying
party (subject to the consent of the indemnified party, which consent shall not
be unreasonably withheld or delayed), and the indemnified party shall not be
required to make any payment with respect to such claim, liability or expense as
long as the indemnifying party is conducting a good faith and diligent defense
at its own expense. The indemnifying party shall have the right, with the
consent of the indemnified party, which consent shall not be unreasonably
withheld or delayed, to settle all indemnifiable matters related to claims by
third parties which are susceptible to being settled, provided its obligation to
indemnify the indemnifying party therefor will be fully satisfied. The
indemnifying party shall keep the indemnified party appraised of the status of
the claim, liability or expense and any resulting suit, proceeding or
enforcement action, shall furnish the indemnified party with all documents and
information that the indemnified party shall reasonably request and shall
consult with the indemnified party prior to acting on major matters, including
settlement discussions. The indemnified party shall make available to the
indemnifying party all information and assistance that the indemnifying party
may reasonably request and shall cooperate with the indemnifying party in any
defense undertaken by it pursuant to this Section 4. Notwithstanding anything
herein to the contrary, the indemnified party shall at all times have the right
to fully participate in such defense at its own expense directly or through
counsel; provided, however, if the named parties to the action or proceeding
include both the indemnifying party and the indemnified party and representation
of both parties by the same counsel would be inappropriate under applicable
standards of professional conduct, the expense of separate counsel for the
indemnified party shall be paid by the indemnifying party. If no such notice of
intent to dispute and defend is given by the indemnifying party, or if such
diligent good faith defense is not being or ceases to be conducted, the
indemnified party may, at the

                                       9
<PAGE>   10

expense of the indemnifying party, undertake the defense of (with counsel
selected by the indemnified party), and shall have the right to compromise or
settle (exercising reasonable business judgment), such claim, liability or
expense.

         5. TAXES AND EXPENSES. While the parties intend that the Merger qualify
as a Tax-Free Reorganization and hereby agree that they shall not take any
position. on a tax return or in any proceeding before a taxing authority, with
respect to the transactions being effected under or as contemplated by this
Agreement at or about the Effective Time or any of the matters relating to the
tax treatment of the Merger covered by the representations with respect thereto
set forth in Section 1 hereof which is contrary to such intended treatment,
unless, and then only in the respect(s), otherwise required by law or judicial
or administrative process, no party to this Agreement or to the Merger Agreement
is making or shall be deemed (i) to make any representation to any other party
hereto regarding any matter relating to the tax treatment of the Merger or any
of the transactions contemplated hereby or thereby other than those expressly
set forth in Section 1 hereof, nor (ii) to make any warranty or guaranty to any
other party hereto or thereto that the tax treatment of the Merger and the
transactions contemplated hereby and by the Merger Agreement will be consistent
with such intended treatment. Except as otherwise provided in Section 8 of the
Stock Purchase Agreement, each party shall bear its own expenses in connection
with, and all taxes that may result from, the Merger and the other transactions
contemplated by this Agreement.

         6. NOTICES. Any notice required hereunder shall be in writing and shall
be deemed to have been given upon receipt, or if sent by facsimile transmission,
upon confirmation of transmission, or if sent by overnight courier, the first
business day after timely deposit with the courier for next business day
delivery as follows:

         To a Minority Shareholder:         c/o Hartley Management
         --------------------------         791 Wye Road
                                            Akron, OH 44333
                                            Fax Number:  330-664-3332

         To Telxon, Metanetics              Telxon Corporation
         ---------------------              3330 West Market Street
           or MetaTechnologies:             Akron, OH 44333
           --------------------             Attn:  Legal Department
                                            Fax Number:  330-664-2009

                                       10
<PAGE>   11

or to such other address of which any party may notify the other parties
provided in accordance with this Section 6.

         7. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
between the parties with respect to the subject matter hereof, and together with
the Merger Agreement, supersedes and replaces all of the provisions of the Stock
Purchase Agreement other than Telxon's obligation under Section 8 thereof to
reimburse certain expenses of the Minority Shareholders, which provisions (other
than said reimbursement obligation) shall be of no further force and effect,
except that, if for any reason the Merger Agreement is terminated without
consummation of the Merger, (i) this Agreement shall be null and void, and (ii)
the Stock Purchase Agreement shall be reinstated in full force and effect. No
representations or promises except those set forth herein or in the Merger
Agreement have been made to induce any party to enter into this Agreement.

         8. AMENDMENTS. This Agreement may be amended, modified or superseded
and any of its terms or covenants may be waived only by an instrument in writing
signed by each of the parties hereto or, in the case of a waiver, by or on
behalf of the party waiving compliance.

         9. CONSTRUCTION. This Agreement shall be governed by and construed in
accordance with the laws of the state of Ohio, without regard to its conflict of
laws principles, except that the terms of this Agreement shall be interpreted
according to their plain meaning and not strictly for or against any party.

         10. DISPUTES. The parties will attempt in good faith to resolve any
controversy arising out of or relating to this Agreement. Any litigation
relating to this Agreement shall be brought by the parties in the courts, state
or federal, sitting in Summit County, Ohio, and in no other forum.

         11. EXECUTION IN COUNTERPARTS.This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

         12. SUCCESSORS AND ASSIGNS. This Agreement and the parties' respective
rights and obligations hereunder shall be binding upon and inure to the benefit
of the respective successors and assigns, provided, however, that neither shall
Telxon assign any of its rights or obligations hereunder to any third party
without the prior written consent of both of the Minority Shareholders, nor
shall either of the Minority Shareholders assign any of their respective rights
or obligations hereunder to any third party without the prior written consent of
Telxon, except that any transferee of not less than five thousand (5,000) shares
of Registrable Securities from either Minority Shareholder (other than in a
transaction

                                       11
<PAGE>   12

effected pursuant to the Registration Statement or any other registration,
qualification or compliance under Section 3) shall, without the necessity of
obtaining prior consent from Telxon, be entitled to the benefit of the
registration provisions of Section 3 with respect to the Registrable Securities
so acquired as if it were an additional Minority Shareholder originally
signatory to this Agreement, but only if such transferee shall have executed a
written agreement in favor of Telxon agreeing to be bound by all of the terms,
conditions and obligations applicable to a Minority Shareholder under Sections 3
and 4 hereof. The provisions of this Agreement are intended for the benefit of
the parties hereto, and no third party shall be entitled to enforce or rely upon
the provisions of this Agreement.

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

                                      TELXON CORPORATION

                                      By: /s/ JOHN W. PAXTON, SR.
                                        ------------------------------
                                      Title: Chairman & CEO

                                      ACCIPITER CORPORATION

                                      By: /s/ RICHARD W. DYER
                                        ------------------------------
                                      Title: Treasurer & CFO

                                      ACCIPITER II, INC.

                                      By: /s/ RICHARD W. DYER
                                         ------------------------------
                                      Title: Treasurer & CFO

<PAGE>   13

The undersigned hereby join as signatories to the foregoing Investment and
Registration Rights Agreement as of the date first above written for the sole
and limited purpose of making the representations on their respective parts set
forth in, in the case of MetaTechnologies, Section 1(d) above, and in the case
of Metanetics, Section1(e) above.

                                         META TECHNOLOGIES CORPORATION

                                         By: /s/ W.M. McGEE
                                            ----------------------------------
                                         Title: VP/CFO
                                              --------------------------------

                                         METANETICS CORPORATION

                                         By: /s/ ANDREW MEYERSON
                                           ------------------------------------
                                         Title: Pres.

                                       13

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