SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D/A Under the Securities Exchange Act of 1934 (Amendment No. 3) VTEL CORPORATION (Name of Issuer) Common Stock (Title of Class of Securities) 92658-10-9 (CUSIP Number) F. Thomas Dunlap Vice President, General Counsel and Secretary Intel Corporation 2200 Mission College Boulevard Santa Clara, CA 95052 Telephone: (408) 765-8080 (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) May 19, 1997 (Date of Event which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1 (b)(3) or (4), check the following box [ ]. NOTE: Six copies of this statement, including all exhibits, should be filed with the Commission. See Rule 13d-1(a) for other parties to whom copies are to be sent. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act. (continued on following pages) Page 1 of 17 CUSIP No. 92658N 10 1 13D/A Page 2 of 17 1. NAME OF REPORTING PERSON Intel Corporation S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE 94-1672743 PERSON 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A (a) [ ] GROUP (b) [ ] 3. SEC USE ONLY 4. SOURCE OF FUNDS WC 5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS [ ] IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) 6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware NUMBER OF 7. SOLE VOTING POWER 1,604,799 SHARES BENEFICIALLY 8. SHARED VOTING POWER N/A OWNED BY EACH 9. SOLE DISPOSITIVE POWER 1,604,799 REPORTING PERSON WITH 10. SHARED DISPOSITIVE POWER N/A 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH 1,604,799 REPORTING PERSON 12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) [ ] EXCLUDES CERTAIN SHARES 13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11.29% (11) 14. TYPE OF REPORTING PERSON CO CUSIP No. 92658N 10 1 13D/A Page 3 of 17 Intel Corporation ("Intel" or the "Reporting Person") hereby amends its statement on Schedule 13D filed with the Securities and Exchange Commission on November 2, 1993 (the "13D"), as amended by Amendment No. 1 filed on September 22, 1995 and Amendment No. 2 filed on February 1, 1996, with respect to the common stock (the "Common Stock") of VTEL Corporation ("VTEL" or the "Issuer"). This Amendment No. 3 is made to report the purchase of additional shares of Common Stock. ITEM 2. Identity and Background. (a) Name of Person Filing: Intel Corporation (b) Address of Principal Business Office: 2200 Mission College Boulevard Santa Clara, CA 95052-8119 (c) Principal Business: Manufacturer of microcomputer components, modules and systems (d) Criminal Proceedings: During the last five years neither the Reporting Person nor any executive officer or director of the Reporting Person has been convicted in any criminal proceeding. (e) Civil Proceedings: During the last five years neither the Reporting Person nor any executive officer or director of the Reporting Person has been party to any civil proceeding of a judicial or administrative body of competent jurisdiction as a result of which such person was or is subject to any judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, Federal or State securities laws or finding any violation with respect to such laws. (f) Place of Organization: Delaware CUSIP No. 92658N 10 1 13D/A Page 4 of 17 Attached hereto as Appendix A is information required by this Item 2 with respect to the executive officers and directors of the Reporting Person. All such individuals are U.S. citizens. ITEM 3. Source and Amount of Funds or Other Consideration. Pursuant to a Development and License Agreement dated October 22, 1993, the Issuer was obligated to refund to the Reporting Person $901,170 in respect of unexpended funding for certain development activities undertaken by the Issuer. In lieu of repaying such amount in cash, the Issuer issued 155,040 shares of Common Stock to the Reporting Person. ITEM 4. Purpose of the Transaction. Intel acquired 155,040 additional shares of VTEL Common Stock as an investment in lieu of receiving a cash refund of unexpended funding for development activities as described above under Item 3. Intel presently holds its shares of Common Stock as an investment. Depending upon Intel's evaluation of market conditions, market price, alternative investment opportunities, liquidity needs and other factors, Intel will from time to time explore opportunities for liquidating all or a portion of its equity ownership in VTEL, through one or more sales pursuant to public or private offerings or otherwise. Intel may determine to retain some portion of such securities as an investment. ITEM 5. Interest in Securities of the Issuer. (a) Number of Shares 1,604,799 shares Beneficially Owned: Right to Acquire: 0 shares Percent of Class: 11.29% (based on 14,219,773 shares outstanding as reported in VTEL's Joint Proxy Statement/Prospect us filed with the Securities and Exchange Commission on 4/25/97 and taking into account the issuance of 155,040 shares to Intel) (b) Sole Power to vote, Direct the Vote of, CUSIP No. 92658N 10 1 13D/A Page 5 of 17 or Dispose of Shares: 1,604,799 shares (c) Recent Transactions: As described in Items 3 and 4 above, pursuant to an Agreement dated May 19, 1997 between VTEL and Intel (the "Agreement"), on May 19, 1997, Intel acquired an additional 155,040 shares of VTEL Common Stock at a price of $5.8125 per share in lieu of receiving a refund of unexpended funding for development activities. (d) Rights with Respect to Dividends or Sales N/A Proceeds: (e) Date of Cessation of Five Percent Beneficial N/A Ownership: ITEM 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer. Pursuant to the Agreement, VTEL agreed to register all of Intel's shares of Common Stock within 180 days after consummation of a pending merger with Compression Labs, Inc. and if such merger is not consummated prior to September 30, 1997, to register such shares prior to November 20, 1997. ITEM 7. Material to be Filed as Exhibits. *Exhibit 1 Common Stock and Warrant Purchase Agreement *Exhibit 2 Investor Rights Agreement *Exhibit 3 Warrant *Exhibit 4 Intel/VTEL Joint Press Release dated August 23, 1933 *Exhibit 5 Agreement dated September 15, 1995 Exhibit 6 Agreement dated May 19, 1997 --------------------- *Previously filed CUSIP No. 92658N 10 1 13D/A Page 6 of 17 SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Dated: May 23, 1997. INTEL CORPORATION By: /s/ F. Thomas Dunlap, Jr. F. Thomas Dunlap, Jr. Vice President, General Counsel and Secretary CUSIP No. 92658N 10 1 13D/A Page 7 of 17 APPENDIX A DIRECTORS The following is a list of all Directors of Intel Corporation and certain other information with respect to each Director: Name: Craig R. Barrett Business 2200 Mission College Boulevard, Santa Clara, Address: CA 95052 Principal President and Chief Operating Officer of Intel Occupation: Corporation Name, principal Intel Corporation, a manufacturer of business and microcomputer components, modules and systems. address of 2200 Mission College Boulevard corporation or Santa Clara, CA 95052 other organization in which employment is conducted: Name: John Browne Business The British Petroleum Company plc, Britannic Address: House, 1 Finsbury Circus, London EC2M 7BA Principal Group Chief Executive Occupation: Name, principal The British Petroleum Company plc, an business and integrated oil company. address of Britannic House, 1 Finsbury Circus corporation or London EC2M 7BA other organization in which employment is conducted: CUSIP No. 92658N 10 1 13D/A Page 8 of 17 Name: Winston H. Chen Business Paramitas Foundation, 3945 Freedom Circle, Address: Suite 760, Santa Clara, CA 95054 Principal Chairman of Paramitas Foundation Occupation: Name, principal Paramitas Foundation, a charitable foundation. business and 3945 Freedom Circle, Suite 760 address of Santa Clara, CA 95054 corporation or other organization in which employment is conducted: Name: Andrew S. Grove Business 2200 Mission College Boulevard, Santa Clara, Address: CA 95052 Principal Chairman of the Board of Directors and Chief Occupation: Executive Officer of Intel Corporation Name, principal Intel Corporation, a manufacturer of business and microcomputer components, modules and systems. address of 2200 Mission College Boulevard corporation or Santa Clara, CA 95052 other organization in which employment is conducted: Name: D. James Guzy Business 1340 Arbor Road, Menlo Park, CA 94025 Address: Principal Chairman of The Arbor Company Occupation: Name, principal The Arbor Company, a limited partnership business and engaged in the electronics and computer address of industry. corporation or 1340 Arbor Road other Menlo Park, CA 94025 organization in which employment is conducted: CUSIP No. 92658N 10 1 13D/A Page 9 of 17 Name: Gordon E. Moore Business 2200 Mission College Boulevard, Santa Clara, Address: CA 95052 Principal Chairman Emeritus of the Board of Intel Occupation: Corporation Name, principal Intel Corporation, a manufacturer of business and microcomputer components, modules and systems. address of 2200 Mission College Boulevard corporation or Santa Clara, CA 95052 other organization in which employment is conducted: Name: Max Palevsky Business 924 Westwood Boulevard, Suite 700, Los Angeles Address: CA 90024 Principal Industrialist Occupation: Name, principal Self-employed. business and address of corporation or other organization in which employment is conducted: Name: Arthur Rock Business One Maritime Plaza, Suite 1220, San Francisco, Address: CA 94111 Principal Venture Capitalist Occupation: Name, principal Arthur Rock and Company, a venture capital business and firm. address of One Maritime Plaza, Suite 1220 corporation or San Francisco, CA 94111 other organization in which employment is conducted: CUSIP No. 92658N 10 1 13D/A Page 10 of 17 Name: Jane E. Shaw Business c/o Intel Corporation, 2200 Mission College Address: Boulevard, Santa Clara, CA 95052 Principal Founder of The Stable Network, a Occupation: biopharmaceutical consulting company Name, principal c/o Intel Corporation business and 2200 Mission College Boulevard address of Santa Clara, CA 95052 corporation or other organization in which employment is conducted: Name: Leslie L. Vadasz Business 2200 Mission College Boulevard, Santa Clara, Address: CA 95052 Principal Senior Vice President, Director, Corporate Occupation: Business Development, Intel Corporation Name, principal Intel Corporation, a manufacturer of business and microcomputer components, modules and systems. address of 2200 Mission College Boulevard corporation or Santa Clara, CA 95052 other organization in which employment is conducted: Name: David B. Yoffie Business Harvard Business School, Soldiers Field Park 1- Address: 411, Boston, MA 92163 Principal Max and Doris Starr Professor of International Occupation: Business Administration Name, principal Harvard Business School, an educational business and institution. address of Harvard Business School corporation or Soldiers Field Park 1-411 other Boston, MA 92163 organization in which employment is conducted: CUSIP No. 92658N 10 1 13D/A Page 11 of 17 Name: Charles E. Young Business 405 Hilgard Avenue, Los Angeles, CA 90024 Address: Principal Chancellor Occupation: Name, principal University of California at Los Angeles, an business and educational institution. address of 405 Hilgard Avenue corporation or Los Angeles, CA 90024 other organization in which employment is conducted: CUSIP No. 92658N 10 1 13D/A Page 12 of 17 EXECUTIVE OFFICERS The following is a list of all executive officers of Intel Corporation excluding executive officers who are also directors. Unless otherwise indicated, each officer's business address is 2200 Mission College Boulevard, Santa Clara, California 95052- 8119, which address is Intel Corporation's business address. Name: Frank C. Gill Title: Executive Vice President, General Manager, Internet and Communications Group Address: 5200 N.E. Elam Young Parkway, Hillsboro, OR 97124- 6497 Name: Paul S. Otellini Title: Executive Vice President, Director, Sales and Marketing Group Name: Gerhard H. Parker Title: Executive Vice President, General Manager, Technology and Manufacturing Group Name: Ronald J. Whittier Title: Senior Vice President, General Manager, Content Group Name: Albert Y. C. Yu Title: Senior Vice President, General Manager, Microprocessor Products Group Name: Michael A. Aymar Title: Vice President, General Manager, Desktop Products Group Name: Andy D. Bryant Title: Vice President and Chief Financial Officer Name: Dennis L. Carter Title: Vice President, Director, Sales and Marketing Group Name: F. Thomas Dunlap, Jr. Title: Vice President, General Counsel and Secretary Name: Patrick P. Gelsinger Title: Vice President, General Manager, Desktop Products Group Address: 5200 N.E. Elam Young Parkway, Hillsboro, OR 97124- 6497 Name: John H. F. Miner Title: Vice President, General Manager, Enterprise Server Group Address: 5200 N.E. Elam Young Parkway, Hillsboro, OR 97124- 6497 CUSIP No. 92658N 10 1 13D/A Page 13 of 17 Name: Stephen P. Nachtsheim Title: Vice President, General Manager, Mobile/Handheld Products Group Name: Ronald J. Smith Title: Vice President, General Manager, Computing Enhancement Group Name: Arvind Sodhani Title: Vice President, Treasurer Name: Michael R. Splinter Title: Vice President, Assistant General Manager, Technology and Manufacturing Group CUSIP No. 92658N 10 1 13D/A Page 14 of 17 EXHIBIT 6 AGREEMENT DATED 5/19/97 AGREEMENT This Agreement ("Agreement") is made and entered into as of May 19, 1997 by and between INTEL CORPORATION, a Delaware corporation ("Intel"), and VTEL CORPORATION, a Delaware corporation ("VTEL"). A. Intel and VTEL have entered into a Development and License Agreement dated effective as of October 22, 1993 (the "Development and License Agreement"); B. Pursuant to Section 2.5 of the Development and License Agreement, upon execution thereof, Intel paid to VTEL the amount of $3,000,000 to be used for engineering expenses attributable to tasks undertaken under the Development and License Agreement; and C. Pursuant to Section 2.6 of the Development and License Agreement, on October 22, 1996, VTEL became obligated to refund to Intel $901,170 of the $3,000,000 previously advanced by Intel to VTEL but not earned by VTEL for NRE funding (as defined therein); and D. In lieu of the obligation of VTEL to refund to Intel the amount of $901,170 due and owing by VTEL to Intel under the Development and License Agreement in respect of unexpended NRE funding, VTEL and Intel have agreed that VTEL shall issue to Intel 155,040 shares of its common stock in full satisfaction of VTEL's obligation to refund $901,170 to Intel as aforesaid and the parties have reached the agreements herein contained. NOW, THEREFORE, in consideration of the forgoing recitals and mutual promises hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 1. Issuance of Stock in Satisfaction of Unfunded NRE Reimbursement. Within ten (10) business days of the execution of this Agreement, VTEL shall cause to be delivered to Intel a stock certificate representing 155,040 shares of VTEL common stock (the "Shares"). 2. Satisfaction and Discharge. Intel agrees that effective upon receipt of the stock certificate referred to in paragraph 1 above, the obligation of VTEL to refund to Intel any amounts previously advanced by Intel to VTEL under Section 2.5 of the Development and License Agreement shall be satisfied and discharged and shall be of no further effect, and shall be deemed satisfied in all respects by the delivery of the Shares in lieu of the cash amount otherwise due under Section 2.6 of the Development and License Agreement. Upon receipt of such stock certificate, Intel shall promptly return to VTEL the Letter of Credit (as defined in the Development and License Agreement), which as of the date hereof has CUSIP No. 92658N 10 1 13D/A Page 15 of 17 an undrawn face amount of $888,670, and VTEL's obligations to maintain such standby Letter of Credit under the terms of the Development and License Agreement shall terminate. Intel agrees to make no further draws on the Letter of Credit from and after the date hereof. Except as set forth herein, the Development and License Agreement shall continue in accordance with its terms and shall not otherwise be modified. 3. Securities Act Representations. Intel represents and warrants to VTEL as follows: (i) Intel acknowledges that it has had an opportunity to discuss the business, affairs and current prospects of VTEL with its officers. Intel further acknowledges having had access to information about VTEL that it has requested. (ii) The Shares that Intel is acquiring hereunder are being acquired for its own account, not as a nominee or agent and not with a view to or in connection with the sale or distribution of any part thereof. (iii)Intel understands that the Shares have not been registered under the Securities Act of 1933 (the "Securities Act") on the basis that the sale provided for herein is exempt from registration under the Securities Act and that the reliance of VTEL on such exemption is predicated in part on Intel's representation set forth in this Agreement. (iv) Intel acknowledges that it is able to fend for itself in the transactions contemplated by this Agreement and has the ability to bear the economic risk of its investment pursuant to this Agreement. (v) Intel understands that the Shares are restricted securities within the meaning of Rule 144 under the Securities Act; that the Shares are not registered and must be held indefinitely unless they are subsequently registered or an exemption from such registration is available; that in any event, the exemption from registration under Rule 144 will not be available for at least one year. (vi) It is understood that the certificates representing the Shares will be legended as follows: THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE AFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN EXEMPTION FROM SUCH REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED. 4. Representations by VTEL. VTEL represents and warrants to Intel as follows: (i) VTEL has filed all reports required to be filed with the Securities and Exchange Commission ("SEC") pursuant to the Securities Act and the Securities Exchange CUSIP No. 92658N 10 1 13D/A Page 16 of 17 Act of 1934, and all such filings comply as to form, in all material respects, with the rules and regulations promulgated by the SEC thereunder. No such filing contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements made therein, in light of the circumstances under which they are made, not misleading. (ii) Since the date of VTEL's most recent SEC filing on Form 10-K or Form 10-Q, there has been no material adverse change in the assets, liabilities, financial condition, business, operations or affairs of VTEL from that reflected in the financial statements contained in such filing, except changes in the ordinary course of business which have not been, in the aggregate, materially adverse to VTEL. (iii)There are no actions, suits, proceedings or investigations pending, or, to VTEL's best knowledge, threatened, against VTEL or any of its properties before any court or governmental agency which has not been disclosed in VTEL's SEC filings. VTEL is not a party to or subject to the provisions of any order, writ, injunction, judgment, or decree of any court or governmental agency or instrumentality which is not disclosed in VTEL's SEC filings. 5. Registration. VTEL agrees to file a Form S-3 Registration Statement registering for public sale the Shares of VTEL common stock issued by VTEL to Intel, including (without limitation) the shares issued to Intel by VTEL pursuant to the terms hereof and shares issued by VTEL to Intel pursuant to the Common Stock and Warrant Purchase Agreement dated October 25, 1993 between VTEL and Intel, and shares issued to Intel pursuant to the Warrant to Purchase 1,199,124 shares of Common Stock of VTEL issued to Intel pursuant to such aforesaid Common Stock and Warrant Purchase Agreement; provided, VTEL shall have no obligation to cause such Registration Statement to be filed until after the occurrence of the consummation of the pending acquisition of Compression Labs, Incorporated by VTEL (the "Merger") and the lapse of all restriction periods necessary in order for such Merger to be accounted for as a pooling of interests. Notwithstanding anything to the contrary contained herein, such Registration Statement shall be filed by VTEL no later than the 180th day following the consummation of the Merger or, in the event that the Merger shall not have been consummated by September 30, 1997, such Registration Statement shall be filed by VTEL no later than November 30, 1997. 6. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which shall constitute one instrument. 7. Governing Law. This Agreement shall be governed by the laws of Delaware. 8. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof. CUSIP No. 92658N 10 1 13D/A Page 17 of 17 9. Successors and Assigns. This Agreement shall be binding upon the parties and their successors and assigns. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. VTEL CORPORATION 108 Wild Basin Road Austin, Texas 78746 By: /s/Rodney S. Bond Rodney S. Bond Vice President-Finance INTEL CORPORATION 2200 Mission College Boulevard Santa Clara, California 95052 By: /s/Arvind Sodhani Arvind Sodhani Vice President and Treasurer