Document:

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                                                                  EXHIBIT 10.1.1

                               AMENDMENT NO. 4 TO
                               IXIA COMMUNICATIONS
                             1997 STOCK OPTION PLAN*

               Section 3 of the Ixia Communications 1997 Stock Option Plan is
hereby amended to read in its entirety as follows:

               "3.    SHARES RESERVED.

                      The maximum aggregate number of Shares reserved for
               issuance pursuant to the Plan shall be 17,000,000 Shares or the
               number of shares of stock to which such Shares shall be adjusted
               as provided in Section 12 of the Plan; provided, however, that at
               no time shall the total number of shares issuable upon exercise
               of all outstanding options and the total number of shares
               provided for under any stock bonus or similar plan of the Company
               exceed the applicable percentage as calculated in accordance with
               the conditions and exclusions set forth in Section 260.140.45 of
               the California Code of Regulations, based on the shares of the
               Company which are outstanding at the time the calculation is
               made. Such number of Shares may be set aside out of authorized
               but unissued Shares not reserved for any other purpose, or out of
               issued Shares acquired for and held in the treasury of the
               Company from time to time.

                      Shares subject to, but not sold or issued under, any
               Option terminating, expiring or canceled for any reason prior to
               its exercise in full shall again become available for Options
               thereafter granted under the Plan and the same shall not be
               deemed an increase in the number of Shares reserved for issuance
               under the Plan."

Dated:  September 1, 2000

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* Subject to shareholder approval<PAGE>   1
                                                                    EXHIBIT 10.2

                                      IXIA

                           DIRECTOR STOCK OPTION PLAN

                               SECTION I. PURPOSE

        The purpose of this Ixia Director Stock Option Plan (this "Plan") is to
provide an incentive which will motivate and reward "Outside Directors" of the
Company and promote the best interests and long-term performance of the Company
by encouraging the ownership of the Company's stock by such "Outside Directors."
None of the options granted pursuant to this Plan will qualify as an Incentive
Stock Option ("ISO"), as defined in Section 422 of the Internal Revenue Code of
1986, as amended (the "Code").

                         SECTION II. CERTAIN DEFINITIONS

        A. "1933 Act" shall mean the Securities Act of 1933, as amended from
time to time.

        B. "Board" or "Board of Directors" means the Board of Directors of the
Company.

        C. "Common Stock" means the shares of the Common Stock, without par
value, of the Company.

        D. "Committee" means the Committee appointed by the Board in accordance
with Section IX.C. of the Plan, if one is appointed.

        E. "Company" means Ixia, a California corporation, or any successor
thereto.

        F. "Disability" means the inability of a Participant to perform his or
her duties as an Outside Director by reason of any medically determinable
physical or mental impairment which can be expected to result in death or which
has lasted or can be expected to last for a continuous period of not less than
12 months.

        G. "Fair Market Value," as of a given date, means the fair market value
of one share of Common Stock, determined as follows:

               (i) If the Common Stock is listed on any established stock
exchange or on a national market system, including without limitation The Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, the
fair market value per share shall be the closing sales price (or the closing bid
price, if no sales were reported) on such exchange or system on the date of
grant of the Option (or, if the date of grant is not a trading day, on the last
trading day preceding the date of grant), as such closing sales price (or
closing bid price) is reported in THE WALL STREET JOURNAL or such other source
as the Board deems reliable;

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               (ii) If the Common Stock is regularly quoted by a recognized
securities dealer but sales prices are not reported, the fair market value per
share shall be the average of the closing bid and asked prices of the Common
Stock on the date of grant (or, if there are no such prices for such date, on
the last trading day preceding the date of grant on which there were such
reported prices) as reported in THE WALL STREET JOURNAL or such other source as
the Board deems reliable; or

               (iii) If there is no public market for the Common Stock, the fair
market value per share shall be determined by the Board in good faith.

        H. "Outside Director" means a person who is a member of the Board of
Directors but who is not an employee of the Company or any subsidiary of the
Company.

        I. "Participant" means an Outside Director who is granted a stock option
hereunder.

        J. " Plan" means this Ixia Director Stock Option Plan.

                               SECTION III. STOCK

        The maximum aggregate number of shares of Common Stock which may be sold
under this Plan is 200,000. If an option expires or is terminated or surrendered
without having been fully exercised, the unpurchased shares of Common Stock
subject to the option shall again be available for the purposes of this Plan.

                             SECTION IV. ELIGIBILITY

        Stock options may be granted under the Plan only to Outside Directors.
All options shall be automatically granted in accordance with the terms set
forth in Section V hereof.

                            SECTION V. STOCK OPTIONS

        A. GRANT OF STOCK OPTIONS UPON INITIAL ELECTION AS AN OUTSIDE DIRECTOR.
Each Outside Director shall automatically be granted an option to purchase
10,000 shares of Common Stock on the date on which such person first becomes an
Outside Director, whether through election by the shareholders of the Company or
through appointment by the Board; PROVIDED, HOWEVER, that a director who is an
employee of the Company and who ceases to be an employee but remains a director
shall not be granted such an option.

        B. GRANT OF STOCK OPTIONS UPON RE-ELECTION AS AN OUTSIDE DIRECTOR. Each
Outside Director shall automatically be granted an option to purchase 5,000
shares of Common Stock on the date of each annual meeting of the shareholders of
the Company, commencing with the Company's 2001 annual meeting of shareholders,
at which the Outside Director is re-elected as a director of the Company,
provided that such Outside Director has been a director of the Company for at
least six months preceding the date of the annual meeting.

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        C. OPTION PRICE. The purchase price of the Common Stock under each
option granted hereunder shall be 100% of the Fair Market Value of the Common
Stock on the date of the grant of the option.

        D. TERM AND EXERCISE OF OPTIONS. The term of each option shall be seven
years from the date of grant thereof. Each option will vest and become
exercisable in four equal quarterly installments commencing on the last day of
the calendar quarter in which the option is granted and continuing on the last
day of each of the three calendar quarters thereafter as long as the optionee
continues to serve as an Outside Director on such dates; PROVIDED, HOWEVER, that
except as provided in Subsection V.F. of this Section, no option may be
exercised at any time unless the Participant is then an Outside Director and has
been so continuously since the granting of the option. An option may not be
exercised for a fraction of a share.

        E. NON-TRANSFERABILITY OF OPTIONS. Each option granted under the Plan
shall by its terms be non-transferable by the Participant other than by will or
the laws of descent and distribution. An option may be exercised, during the
lifetime of the Participant, only by the Participant.

        F. TERMINATION OF SERVICE. If a Participant voluntarily or involuntarily
terminates his or her service as an Outside Director for any reason other than
death or Disability, the Participant may exercise any option held by such
Participant at any time within three months after the date of such termination,
but only to the extent that the Participant was entitled to exercise the option
on the date of termination. In no event shall an option be exercisable after the
expiration of the term of the option. Any option not so exercised shall expire.
If a Participant's service as an Outside Director is terminated by reason of
death or Disability, the Participant, or the Participant's personal
representative if the Participant has died, may exercise any or all of the
Participant's unexercised unexpired options, provided such exercise occurs
within 12 months after the date of the Participant's death or termination of
service as a result of Disability but not after the expiration of the term of
the option.

        G. PAYMENT OF OPTION EXERCISE PRICE. The purchase price is to be paid in
full upon exercise of an option, either (i) in cash, (ii) by check, (iii) in
shares of Common Stock having a Fair Market Value on the date of surrender equal
to the aggregate cash exercise price of the option being exercised, (iv)
consideration received by the Company under a cashless exercise program
acceptable to the Company in connection with the Plan, or (v) by any combination
of the payment methods specified in the foregoing clauses (i), (ii) and (iii);
PROVIDED, HOWEVER, that shares of Common Stock tendered in payment must be
shares owned by the Participant and registered in the Participant's name and may
not include shares of Common Stock acquired by the Participant through the
exercise of an option granted less than six months prior to the date of exercise
of the option being exercised.

        H. OPTION AGREEMENTS. Options shall be evidenced by written option
agreements in such form as the Board shall approve.

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        I. PRO RATA ALLOCATION. In the event that the options to be granted
under the Plan on a specific grant date would exceed the number of shares then
available for grant hereunder, the shares available for grant shall be allocated
on a pro rata basis among the Outside Directors who are entitled to be granted
options on such grant date.

        J. PROCEDURE FOR EXERCISE. An option shall be deemed to be exercised
when written notice of such exercise has been given to the Company in accordance
with the terms of the option by the person entitled to exercise the option and
full payment for the shares with respect to which the option is exercised has
been received by the Company. Full payment may consist of any consideration and
method of payment allowable under Section V.G. of the Plan. Until the issuance
(as evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company) of the stock certificate evidencing
such shares, no right to vote or receive dividends or any other rights as a
shareholder shall exist with respect to the shares to be issued upon exercise of
the option, notwithstanding the exercise of the option. A share certificate for
the number of shares acquired upon exercise of an option shall be issued
promptly after such exercise; PROVIDED, HOWEVER, that if the shares are covered
by a registration statement under the 1933 Act or can otherwise be issued
without a legend restricting their transfer, the Participant may direct that the
shares be issued and delivered by electronic transfer to a securities account
maintained in the Participant's name. No adjustment will be made for a dividend
or other right for which the record date is prior to the date the stock
certificate is issued, except as provided in Section VI of the Plan.

               Exercise of an option in any manner shall result in a decrease in
the number of shares which thereafter may be available, both for purposes of the
Plan and for sale under the option, by the number of shares as to which the
option is exercised.

                          SECTION VI. ADJUSTMENTS UPON
                     CHANGES IN CAPITALIZATION, DISSOLUTION,
                        LIQUIDATION, MERGER OR ASSET SALE

        A. CHANGES IN CAPITALIZATION. Subject to any required action by the
shareholders of the Company, the number of shares covered by each outstanding
option, or which have been authorized for issuance under the Plan but as to
which no options have yet been granted or which have been returned to the Plan
upon cancellation or expiration of an option, as well as the exercise price per
share of each such outstanding option, shall be proportionately adjusted for any
increase or decrease in the number of issued shares of Common Stock resulting
from a stock split, reverse stock split, combination or reclassification or the
payment of a stock dividend (but only on the Common Stock) or any other increase
or decrease in the number of shares of Common Stock issued without receipt of
consideration by the Company; PROVIDED, HOWEVER, that the conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration." Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and conclusive.
Except as expressly provided herein, no issuance by the Company of shares of
stock of any class, or securities convertible into

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or exchangeable for shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price
of shares subject to an option. Without limiting the generality of the
foregoing, no adjustment shall be made to the number of shares subject to the
automatic grant provisions of Sections V.A. and V.B. of the Plan as a result of
any changes in capitalization as described in this Section VI.A.

        B. DISSOLUTION, LIQUIDATION, MERGER OR ASSET SALE. In the event of the
proposed dissolution or liquidation of the Company, the proposed sale of all or
substantially all of the assets of the Company, or the merger, consolidation or
reorganization of the Company with or into another corporation as a result of
which the Company is not the surviving corporation or as a result of which the
outstanding shares of Common Stock are exchanged for or converted into cash or
property or securities not of the Company, the Board shall declare that all
options outstanding under the Plan shall terminate as of a date fixed by the
Board which is at least 30 days after notice thereof is given by the Company to
all Participants, unless such 30-day period is waived by all Participants, and
shall give each Participant the right to exercise his or her option or options
granted hereunder as to all or any part of the shares subject thereto, including
shares which have not vested at such time, until the date of termination of the
options.

        C. NO FRACTIONAL SHARES. No fractional shares of Common Stock shall be
issuable on account of any action described in this Section VI, and the
aggregate number of shares covered by an option, when changed as the result of
such action, shall be reduced to the largest number of whole shares resulting
from such action.

                      SECTION VII. AMENDMENT OR TERMINATION

        A. AMENDMENT OR TERMINATION. Unless this Plan shall have been earlier
terminated as hereinafter provided, this Plan shall terminate, and no stock
option shall be granted hereunder, ten years from the date of adoption of the
Plan by the Board. The Board of Directors may, at any time prior to the date
that is ten years after the adoption of the Plan by the Board, (i) terminate
this Plan or (ii) make such amendments to or modifications of the Plan as the
Board may deem advisable; PROVIDED, HOWEVER, that, if approval by the
shareholders of the Company of any amendment is required to comply with the
requirements of Rule 16b-3 promulgated under the 1933 Act or any other
applicable law, regulation or stock exchange or market system rule or
requirement, such amendment shall be subject to shareholder approval in such
manner and to such a degree as may be so required.

        B. EFFECT OF AMENDMENT OR TERMINATION. Any amendment or termination of
the Plan shall not affect any options already granted under the Plan. Such
options shall remain in full force and effect as if the Plan had not been so
amended or terminated.

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                            SECTION VIII. WITHHOLDING

               The grant of options hereunder and the issuance of shares
pursuant thereto is conditioned upon the Company's reservation of the right to
withhold, in accordance with any applicable law and from any compensation
payable to an Outside Director, any taxes the Company determines that it is
required to withhold under federal, state or local law as a result of such
grants or the issuance of shares pursuant thereto. To the extent that such
compensation, if any, is insufficient to pay any taxes required to be so
withheld, the Company may, in its sole discretion, require an Outside Director,
as a condition to issuance of such Shares, to pay in cash to the Company an
amount sufficient to cover such tax liability or otherwise to make arrangements
satisfactory to the Company to enable it to satisfy its withholding obligations
under federal, state and local law.

                            SECTION IX. MISCELLANEOUS

        A. RIGHTS TO CONTINUED SERVICE. Nothing in this Plan or in any option
granted pursuant to this Plan shall confer on any individual any right to
continue as an Outside Director.

        B. INVESTMENT UNDERTAKINGS. Until and unless the issuance of shares of
Common Stock pursuant to this Plan shall have been registered pursuant to the
1933 Act and applicable state securities laws, each Participant acquiring shares
of Common Stock under this Plan may be required, as a condition precedent to
such issuance, to execute and deliver to the Company a letter or certificate
containing such investment representations, agreements restricting sale
(including, without limitation, provision for stop transfer orders and
restrictive legend on stock certificates) and confirmation of other relevant
facts to support any exemption from the registration requirements under the 1933
Act and such state securities laws on which the Company intends to rely, all as
shall be deemed reasonably necessary by counsel for the Company and in such form
as such counsel shall determine.

        C. ADMINISTRATION OF THE PLAN. The Plan shall be administered by the
Board. The Board may at any time appoint a Committee consisting of not less than
two persons to administer the Plan on behalf of the Board, subject to such terms
and conditions as the Board may prescribe. The Board or its Committee shall have
the authority to make all determinations deemed necessary or advisable for the
administration of the Plan; PROVIDED, HOWEVER, that the Board or its Committee
shall have no discretion to determine the selection of persons to whom options
will be granted, the frequency of option grants, the number of shares subject to
option grants (except in accordance with Section V.I. hereof), the exercise
prices of options or any other material terms of options. All decisions and
determinations of the Board or its Committee with respect to the Plan shall be
final and binding.

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                     SECTION VIII. EFFECTIVENESS OF THE PLAN

        This Plan will be effective upon its adoption by the Board of Directors,
subject, however, to its approval by the shareholders of the Company within 12
months after the date on which the Plan is adopted by the Board of Directors.
Such approval shall be given at a regular meeting of the shareholders of the
Company or at a special meeting of the shareholders duly called and held for
such purpose, or by written consent of the shareholders in accordance with
applicable law. Grants of options made prior to shareholder approval of the Plan
shall be subject to the obtaining of such approval and, if such approval is not
obtained as aforesaid, such grants shall not be effective for any purpose.

                                      * * *

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                            CERTIFICATE OF SECRETARY

        The undersigned Secretary of Ixia, a California corporation (the
"Company"), hereby certifies that the foregoing is a true and correct copy of
the Company's Director Stock Option Plan as adopted by the Board of Directors of
the Company on September 1, 2000 and as approved by the shareholders of the
Company on September 1, 2000.

        IN WITNESS WHEREOF, the undersigned has executed this Certificate of
Secretary on the date set forth below.

        Date:  September 1, 2000                   /S/ RONALD W. BUCKLY
                                            ----------------------------------
                                            Ronald W. Buckly, Secretary

<PAGE>   9

                                      IXIA

                           DIRECTOR STOCK OPTION PLAN

                             STOCK OPTION AGREEMENT

        Ixia, a California corporation (the "Company"), hereby grants to
_______________ ______________________ (the "Optionee") an option (the "Option")
to purchase a total of ____________________________________ (_________) shares
of Common Stock (the "Shares") of the Company, at the price set forth herein,
and in all respects subject to the terms and provisions of the Company's
Director Stock Option Plan (the "Plan"), which terms and provisions are hereby
incorporated by reference herein. Unless the context herein otherwise requires,
the terms defined in the Plan shall have the same meanings herein.

        1. NATURE OF THE OPTION. This Option is intended to be a nonstatutory
stock option and is NOT intended to be an incentive stock option within the
meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the
"Code"), or to otherwise qualify for any special tax benefits to the Optionee.

        2. DATE OF GRANT; TERM OF OPTION. This Option is granted as of
______________, and it may not be exercised later than ______________.

        3. OPTION EXERCISE PRICE. The Option exercise price is $_________ per
Share, which price is not less than one hundred percent (100%) of the fair
market value thereof on the date this Option is granted.

        4. EXERCISE OF OPTION. This Option shall be exercisable during its term
only in accordance with the terms and provisions of the Plan and this Option as
follows:

               (a) RIGHT TO EXERCISE. This Option shall vest and become
exercisable, cumulatively, in four (4) equal installments of
_______________________ (______) Shares commencing on the last day of the
calendar quarter during which this Option is granted, with an additional
installment vesting on the last day of each of the three (3) calendar quarters
thereafter as long as the Optionee remains an Outside Director.

               (b) METHOD OF EXERCISE. This Option shall be exercisable by
written notice which shall state the election to exercise this Option, the
number of Shares in respect to which this Option is being exercised, and such
other representations and agreements as to the Optionee's investment intent with
respect to such Shares as may be required by the Company hereunder or pursuant
to the provisions of the Plan. Such written notice shall be signed by the
Optionee and shall be delivered in person or by certified mail to the Secretary
of the Company or such other person as may be designated by the Company. The
written notice shall be accompanied by payment of the purchase price and an
executed Stock Purchase Agreement if

<PAGE>   10

required by the Company. Payment of the purchase price shall be by cash, check,
the delivery of Shares owned by the Optionee having a fair market value equal to
the aggregate purchase price of the Shares being purchased, or any combination
of such consideration and methods of payment. The purchase price may also be
paid by consideration received by the Company under any cashless exercise
program acceptable to the Company in connection with the Plan. The certificate
or certificates for the Shares as to which the Option shall be exercised shall
be registered in the name of the Optionee and shall be legended as set forth in
the Plan, the Stock Purchase Agreement, and/or as required under applicable law.

               (c) RESTRICTIONS ON EXERCISE. This Option may not be exercised if
the issuance of the Shares upon such exercise would constitute a violation of
any applicable federal or state securities laws or other laws or regulations. As
a condition to the exercise of this Option, the Company may require the Optionee
to make any representation and warranty to the Company as may be required by any
applicable law or regulation.

        5. TERMINATION OF STATUS AS AN OUTSIDE DIRECTOR.

               (a) If the Optionee ceases to serve as an Outside Director for
any reason other than death or Disability, the Optionee shall have the right to
exercise this Option at any time within three months after the date of such
termination to the extent that the Optionee was entitled to exercise this Option
at the date of such termination. To the extent that the Optionee was not
entitled to exercise the Option at the date of termination, or to the extent
this Option is not exercised within such three-month period, this Option shall
terminate. Notwithstanding the foregoing, this Option shall not be exercisable
after the expiration of the term set forth in Section 2 hereof.

               (b) If the Optionee ceases to serve as an Outside Director due to
death or Disability, the Optionee (or the personal representative of the
Optionee if the Optionee has died) shall have the right to exercise this Option
at any time within 12 months after the date of such termination to the extent
that the Optionee was entitled to exercise the Option at the date of such
termination. To the extent that the Optionee was not entitled to exercise this
Option at the date of termination, or to the extent this Option is not exercised
within such 12-month period, this Option shall terminate. Notwithstanding the
foregoing, this Option shall not be exercisable after the expiration of the term
set forth in Section 2 hereof.

        6. NONTRANSFERABILITY OF OPTION. This Option may not be sold, pledged,
assigned, hypothecated, gifted, transferred or disposed of in any manner, other
than by will or by the laws of descent or distribution and may be exercised
during the lifetime of the Optionee only by the Optionee. Subject to the
foregoing and the terms of the Plan, the terms of this Option shall be binding
upon the executors, administrators, heirs, successors and assigns of the
Optionee.

        7. CONTINUATION AS A DIRECTOR. This Option shall not confer upon the
Optionee any right to continue or be nominated as a director of the Company or
any of its subsidiaries or limit in any respect the right of the Company to
remove the Optionee as a director of the Company at any time.

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<PAGE>   11

        8. WITHHOLDING. The Company reserves the right to withhold, in
accordance with any applicable laws, from any consideration payable to the
Optionee any taxes required to be withheld by federal, state or local law as a
result of the grant or exercise of this Option or the sale or other disposition
of the Shares issued upon exercise of this Option. If the amount of any
consideration payable to the Optionee is insufficient to pay such taxes or if no
consideration is payable to the Optionee, upon the request of the Company, the
Optionee shall pay to the Company an amount sufficient for the Company to
satisfy any federal, state or local tax withholding requirements it may incur,
as a result of the grant or exercise of this Option or the sale or other
disposition of the Shares issued upon the exercise of this Option.

        9. THE PLAN. This Option is subject to, and the Company and the Optionee
agrees to be bound by, all of the terms and conditions of the Company's Director
Stock Option Plan as such Plan may be amended from time to time in accordance
with the terms thereof, provided that no such amendment shall deprive the
Optionee, without his consent, of this Option or any rights hereunder.

Date:                                   Ixia, a California corporation
     ----------------------------

                                        By:
                                           -------------------------------------

                                        Title:
                                              ----------------------------------

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        The Optionee acknowledges receipt of a copy of the Ixia Director Stock
Option Plan, a copy of which is attached hereto, and represents that he or she
has read and is familiar with the terms and provisions thereof, and hereby
accepts this Option subject to all of the terms and provisions thereof. The
Optionee hereby agrees to accept as binding, conclusive and final all decisions
or interpretations of the Board of Directors or its committee upon any questions
arising under the Plan.

Date:
     ----------------------------       ----------------------------------------
                                        Signature of Optionee

                                        ----------------------------------------
                                        Address

                                        ----------------------------------------
                                        City             State          Zip Code

                                       4

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