Document:

<PAGE>

                                                                     EXHIBIT 4.1

                                      IXIA

                              AMENDED AND RESTATED
                           1997 EQUITY INCENTIVE PLAN

<PAGE>

                                      IXIA
                 AMENDED AND RESTATED 1997 EQUITY INCENTIVE PLAN

1.    ESTABLISHMENT AND PURPOSES OF THE PLAN.

      Ixia hereby establishes this Amended and Restated 1997 Equity Incentive
Plan to promote the interests of the Company and its shareholders by (i) helping
to attract and retain the services of selected key employees of the Company who
are in a position to make material contributions to the successful operation of
the Company's business, (ii) motivating such persons, by means of
performance-related incentives, to achieve the Company's business goals and
(iii) enabling such persons to participate in the long-term growth and financial
success of the Company by providing them with an opportunity to purchase stock
of the Company.

2.    DEFINITIONS.

      The following definitions shall apply throughout the Plan:

      A. "AFFILIATE" shall mean any entity that directly or indirectly through
one or more intermediaries controls or is controlled by, or is under common
control with, the Company.

      B. "AWARD" shall mean any Option, Restricted Stock Award or Restricted
Stock Unit granted pursuant to the provisions of the Plan.

      C. "AWARD AGREEMENT" shall mean any written agreement, contract or other
instrument or document, including without limitation an Option Agreement,
evidencing and reflecting the terms of any Award granted by the Committee
hereunder in such form or forms as the Committee (subject to the terms and
conditions of the Plan) may from time to time approve.

      D. "BOARD" shall mean the Board of Directors of the Company.

      E. "CODE" shall mean the Internal Revenue Code of 1986, as amended from
time to time. References in the Plan to any section of the Code shall be deemed
to include any amendment or successor provisions to such section and any
regulations issued under such section.

      F. "COMMON STOCK" shall mean the common stock, without par value, of the
Company.

      G. "COMPANY" shall mean Ixia, a California corporation, any "subsidiary"
corporation, whether now or hereafter existing, as defined in Sections 424(f)
and (g) of the Code, and any Affiliate, whether now or hereafter existing.

      H. "COMMITTEE" shall mean the committee of the Board appointed in
accordance with Section 4(a) of the Plan or, if no such committee shall be
appointed or in office, the Board, provided that any Award approved by the Board
shall also have been approved by a majority of the Company's "independent
directors" within the meaning of the Marketplace Rules of The Nasdaq Stock
Market, Inc.
<PAGE>
      I. "CONTINUOUS STATUS AS AN EMPLOYEE" shall mean the absence of any
interruption or termination of employment by the Company. Continuous Status as
an Employee shall not be considered interrupted in the case of sick leave,
military leave or any other leave of absence approved by the Committee or in the
case of transfers between locations of the Company.

      J. "DIVIDEND EQUIVALENT" shall mean any right granted under Section 9(b)
of this Plan.

      K. "EMPLOYEE" shall mean any employee of the Company, including officers
and directors who are also employees and, for purposes of eligibility for Awards
other than Incentive Stock Options, shall mean any consultant to the Company,
whether or not employed by the Company.

      L. "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended.

      M. "FAIR MARKET VALUE" shall mean, with respect to Shares, the fair market
value per Share on the date an award is granted (or in connection with the
Company's right to repurchase the Shares, the date of termination) as determined
by the Board in its sole discretion, exercised in good faith; provided, however,
that where there is a public market for the Common Stock, 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 first preceding day on which there were such reported prices) as reported in
The Wall Street Journal (or, if not so reported, as otherwise reported by the
National Association of Securities Dealers Automated Quotations System) or, in
the event the Common Stock is listed on a stock exchange or quoted on the Nasdaq
National Market System ("Nasdaq"), the fair market value per Share shall be the
closing price on the exchange or on the Nasdaq National Market System on the
date of grant of the Award (or, if there are no sales on such date, on the first
preceding day on which there were reported sales), as reported in The Wall
Street Journal.

      N. "INCENTIVE STOCK OPTION" shall mean an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code.

      O. "NONSTATUTORY STOCK OPTION" shall mean an Option which is not an
Incentive Stock Option.

      P. "OPTION" shall mean a stock option to purchase Common Stock granted to
a Participant pursuant to the Plan.

      Q. "OPTION AGREEMENT" means a written agreement substantially in such form
or forms as the Committee (subject to the terms and conditions of the Plan) may
from time to time approve, evidencing and reflecting the terms of an Option.

      R. "OPTIONED STOCK" shall mean the Common Stock subject to an Option
granted pursuant to the Plan.

      S. "ORIGINAL PLAN" shall mean the Ixia 1997 Stock Option Plan, as amended
prior to the amendment and restatement provided for herein.

                                       2
<PAGE>
      T. "PARTICIPANT" shall mean any Employee who is granted an Award.

      U. "PERMITTED TRANSFEREE" shall have the meaning set forth in Section 10.

      V. "PLAN" shall mean this Ixia Amended and Restated 1997 Equity Incentive
Plan.

      W. "RESTRICTED STOCK AWARD" shall mean any Shares granted under Section 8
of this Plan and issued with the restriction that the holder may not sell,
transfer, pledge or assign such Shares and with such other vesting and other
restrictions as the Committee, in its sole discretion, may impose, which
restrictions may lapse separately or in combination at such time or times, in
installments or otherwise, as the Committee may deem appropriate.

      X. "RESTRICTED STOCK UNIT" shall mean any unit granted under Section 9 of
this Plan evidencing the right to receive one Share at some future date.

      Y. "SECURITIES ACT" shall mean the Securities Act of 1933, as amended.

      Z. "SHARES" shall mean shares of the Common Stock, any shares into which
such Shares may be converted in accordance with Section 11 of the Plan and such
other securities or property as may become subject to Awards pursuant to this
Plan.

      AA. "TERMINATION FOR CAUSE" shall mean termination of employment as a
result of (i) any act or acts by the Optionee constituting a felony under any
federal, state or local law; (ii) the Optionee's willful and continued failure
to perform the duties assigned to him or her as an Employee or consultant; (iii)
any material breach by the Optionee of any agreement with the Company concerning
his or her employment or other understanding concerning the terms and conditions
of employment by the Company; (iv) dishonesty, gross negligence or malfeasance
by the Optionee in the performance of his or her duties as an Employee or
consultant or any conduct by the Optionee which involves a material conflict of
interest with any business of the Company or Affiliate; or (v) the Optionee's
taking or knowingly omitting to take any other action or actions in the
performance of Optionee's duties as an Employee or consultant without informing
appropriate members of management to whom such Optionee reports, which action or
actions, in the determination of the Committee, have caused or substantially
contributed to the material deterioration in the business of the Company or any
Affiliate, taken as a whole.

3.    SHARES RESERVED.

      The maximum aggregate number of Shares reserved for issuance pursuant to
the Plan shall be 28,500,000 Shares or the number of shares of stock to which
such Shares shall be adjusted as provided in Section 11 of the Plan. 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 Award terminating,
expiring, forfeited or canceled for any reason prior to issuance of such Shares
shall again become available for Awards

                                       3
<PAGE>
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.

4.    ADMINISTRATION OF THE PLAN.

      a. The Plan shall be administered by the Compensation Committee of the
Board, which Committee shall consist of not less than three directors and shall
administer the Plan subject to such terms and conditions as the Board may
prescribe. Members of the Committee who are eligible for Awards or have been
granted Awards may vote on any matters affecting the administration of the Plan
or the grant of any Awards pursuant to the Plan, except that no such member
shall act upon the granting of an Award to himself or herself, but any such
member may be counted in determining the existence of a quorum at any meeting of
the Committee during which action is taken with respect to the granting of
Awards to him or her. Each member of the Committee shall be (i) an "outside
director" as defined in the Treasury regulations issued pursuant to Section
162(m) of the Code, (ii) a "non-employee director" as defined in Rule 16b-3
promulgated under the Exchange Act and (iii) an "independent director" as
defined in the Marketplace Rules of The Nasdaq Stock Market, Inc. Members of the
Committee shall serve for such period of time as the Board may determine. From
time to time the Board may increase the size of the Committee and appoint
additional members thereto, remove members (with or without cause) and appoint
new members in substitution therefor, fill vacancies however caused or remove
all members of the Committee and thereafter provide for members of the Board who
are meet the foregoing requirements of the Code, Rule 16b-3 and the Marketplace
Rules to directly administer the Plan. Members of the Committee shall serve for
such period of time as the Board may determine.

      b. Subject to the provisions of the Plan, the Committee shall have the
authority in its sole discretion to: (i) determine the type or types of Awards
(i.e., Incentive Stock Options, Nonstatutory Stock Options, Restricted Stock
Awards or Restricted Stock Units) to be granted to each Participant in the Plan,
(ii) determine the Fair Market Value per Share in accordance with the terms of
the Plan, (iii) determine the exercise price of Options to be granted to
Employees in accordance with the terms of the Plan, (iv) determine the Employees
to whom, and the time or times at which, Awards shall be granted and the number
of Shares subject to each Award, (v) prescribe, amend and rescind rules and
regulations relating to the Plan, subject to the limitations set forth in
Section 13 of the Plan, (vi) determine the terms and provisions of each Award
granted to Participants under the Plan and each Award Agreement (which need not
be identical with the terms of other Awards and Award Agreements) and, with the
consent of the Participant, to modify or amend an outstanding Award Agreement;
provided, however, that the Committee shall not have the authority to amend or
adjust the exercise price of any Options previously granted to a Participant
under the Plan, whether through amendment, cancellation, replacement grant or
otherwise, without the approval of the shareholders of the Company obtained in
the manner provided in Section 12 of the Plan, (vii) accelerate the exercise
date of any Option or the vesting of any Restricted Stock Award or Restricted
Stock Unit, (viii) determine whether any Participant will be required to execute
a stock purchase agreement or other agreement as a condition to the issuance of
Shares pursuant to an Award, and to determine the terms and provisions of any
such agreement (which need not be identical with the terms of any other such
agreement) and, with the consent of the Participant, to amend any such
agreement, (ix) interpret the Plan or any agreement entered into with respect to
the grant of Awards and the issuance of Shares upon exercise of Options or the
vesting of Restricted

                                       4
<PAGE>
Stock Units, (x) determine the eligibility of an Employee for benefits hereunder
and the amount thereof, (xi) authorize any person to execute on behalf of the
Company any instrument required to effectuate the grant of an Award previously
granted or to take such other actions as may be necessary or appropriate with
respect to the Company's rights pursuant to Awards or agreements relating to the
grant or exercise thereof and (xii) make such other determinations and establish
such other procedures as it deems necessary or advisable for the administration
of the Plan.

      c. All decisions, determinations and interpretations of the Committee
shall be final and binding on all Participants and any other holders of any
Awards granted under the Plan.

      d. The Committee shall keep minutes of its meetings and of the actions
taken by it without a meeting. A majority of the Committee shall constitute a
quorum and the actions of a majority at a meeting, including a telephone
meeting, at which a quorum is present or acts approved in writing by a majority
of the members of the Committee without a meeting shall constitute acts of the
Committee.

      e. The Company shall pay all original issue and transfer taxes with
respect to the grant of Awards and/or the issue and transfer of Shares pursuant
to the exercise of Options or the vesting of Restricted Stock Awards or
Restricted Stock Units and all other fees and expenses necessarily incurred by
the Company in connection therewith; provided, however, that the person
exercising an Option or to whom an Award is granted or to whom Shares are
otherwise issued pursuant to the Plan shall be responsible for all payroll,
withholding, income and other taxes incurred by such person on the date of
exercise of the Option or of issuance or vesting of Shares, as applicable.

5.    ELIGIBILITY.

      Awards may be granted under the Plan only to Employees; provided, however,
that consultants shall not be eligible to receive Incentive Stock Options. An
Employee who has been granted Awards may, if he or she is otherwise eligible, be
granted additional Awards.

6.    TERMS AND CONDITIONS OF OPTIONS.

      Options granted pursuant to the Plan by the Committee shall be either
Incentive Stock Options or Nonstatutory Stock Options and shall be evidenced by
an Option Agreement providing, in addition to such other terms as the Board may
deem advisable, the following terms and conditions:

      a. Time of Granting Options. The date of grant of an Option shall for all
purposes be the date on which the Committee makes the determination granting
such Option; provided, however, that if the Committee determines that such grant
shall be made as of some future date, the date of grant shall be such future
date. Notice of the determination shall be given to each Optionee within a
reasonable time after the date of such grant.

      b. Number of Shares. Each Option Agreement shall state the number of
Shares to which it pertains and whether such Option is intended to constitute an
Incentive Stock Option or a Nonstatutory Stock Option. The maximum number of
Shares which may be awarded as Options under the Plan during any calendar year
to any Optionee is 1,000,000 (as may be adjusted pursuant

                                       5
<PAGE>
to Section 11 herein) Shares. If an Option held by an Employee or consultant of
the Company is canceled, the canceled Option shall continue to be counted
against the maximum number of Shares for which Options may be granted to such
Employee or consultant and any replacement Option granted to such Employee or
consultant shall also count against such limit.

      c. Exercise Price. The exercise price per Share for the Shares to be
issued pursuant to the exercise of an Option shall be such price as is
determined by the Board; provided, however, that such price shall in no event be
less than 100% of the Fair Market Value per Share on the date of grant of an
Option.

            In the case of any Option granted to an Employee who at the time of
grant owns or is deemed to own (by reason of the attribution rules applicable
under Section 424(d) of the Code or otherwise) stock possessing more than ten
percent of the total combined voting power of all classes of stock of the
Company or any parent or subsidiary corporations of the Company, the exercise
price per Share shall be no less than 110% of the Fair Market Value per Share on
the date of grant.

      d. Medium and Time of Payment. The consideration to be paid for the Shares
to be issued upon exercise of an Option shall consist entirely of cash or check
payable to the Company or such other consideration and method of payment
permitted under any laws to which the Company is subject and which is approved
by the Committee, including without limitation (i) by delivery of a promissory
note, (ii) by tendering previously acquired Shares (valued at Fair Market Value
as of the date of tender) that have been owned for a period of at least six
months (or such other period as is necessary to avoid accounting charges against
the Company's earnings), (iii) if Shares are traded on a national securities
exchange or Nasdaq, through the delivery of irrevocable instructions to a broker
to deliver promptly to the Company an amount equal to the exercise price, or
(iv) any combination of (i), (ii) and (iii). In connection with all exercises of
Options and regardless of the medium of payment, the Optionee shall pay in cash
any amount necessary to satisfy the Company's withholding obligations.

      e. Term of Options. The term of each Option may be up to ten years from
the date of grant thereof; provided, however, that the term of an Incentive
Stock Option granted to an Employee who, at the time the Incentive Stock Option
is granted, owns or is deemed to own (by reason of the attribution rules of
Section 424(d) of the Code) stock possessing more than ten percent of the total
combined voting power of all classes of stock of the Company, shall be five
years from the date of grant thereof or such shorter term as may be provided in
the Option Agreement.

            The term of any Option may be less than the maximum term provided
for herein as specified by the Committee upon grant of the Option and as set
forth in the Option Agreement.

      f. Maximum Amount of Incentive Stock Options. To the extent that the
aggregate Fair Market Value (determined at the time an Incentive Stock Option is
granted) of the Shares with respect to which Incentive Stock Options are
exercisable for the first time by an Optionee during any calendar year under all
incentive stock option plans of the Company exceeds $100,000, the Options in
excess of such limit shall be treated as Nonstatutory Stock Options.

                                       6
<PAGE>
7.    EXERCISE OF OPTION.

      a. In General. Any Option granted hereunder to an Employee shall be
exercisable at such times and under such conditions as may be determined by the
Committee and as shall be permissible under the terms of the Plan, including any
performance criteria with respect to the Company and/or the Optionee as may be
determined by the Committee.

            An Option may be exercised in accordance with the provisions of the
Plan as to all or any portion of the Shares then exercisable thereunder from
time to time during the term of the Option. However, an Option may not be
exercised for a fraction of a Share.

      b. Procedure. An Option shall be deemed to be exercised when written
notice of such exercise has been given to the Company at its principal business
office in accordance with the terms of the Option Agreement 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, together with
(i) any other agreements required by the terms of the Plan and/or Option
Agreement or as required by the Committee and (ii) payment by the Optionee of
all payroll, withholding or income taxes incurred in connection with such Option
exercise (or arrangements for the collection or payment of such tax satisfactory
to the Board are made).

      c. Decrease in Available Shares. 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, except if the Option is exercised by
tendering Shares, either actually or by attestation.

      d. Exercise of Shareholder Rights. Until the Option is properly exercised
in accordance with the terms of this Section 7, no right to vote or receive
dividends or any other rights as a shareholder shall exist with respect to the
Optioned Stock. No adjustment shall be made for a dividend or other right for
which the record date is prior to the date the Option is exercised except as
provided in Section 11 of the Plan.

      e. Termination of Eligibility. If an Optionee ceases to serve as an
Employee for any reason other than death or permanent and total disability
(within the meaning of Section 22(e)(3) of the Code) or Termination for Cause
and thereby terminates his or her Continuous Status as an Employee, he or she
may, but only within 90 days following the date he or she ceases his or her
Continuous Status as an Employee (subject to any earlier termination of the
Option as provided by its terms), exercise his or her Option to the extent that
he or she was entitled to exercise it at the date of such termination. To the
extent that he or she was not entitled to exercise the Option at the date of
such termination, or if he or she does not exercise such Option (which he or she
was entitled to exercise) within the time specified herein, the Option shall
terminate. Notwithstanding anything to the contrary herein, the Committee may at
any time and from time to time prior to the termination of a Nonstatutory Stock
Option, with the consent of the Optionee, extend the period of time during which
the Optionee may exercise his or her Nonstatutory Stock Option following the
date he or she ceases his or her Continuous Status as an Employee; provided,
however, that the maximum period of time during which a Nonstatutory Stock
Option shall be exercisable following the date on which an Optionee terminates
his or her Continuous Status as an Employee shall not exceed the original term
of such Option as set forth in the Option Agreement and that

                                       7
<PAGE>
notwithstanding any extension of time during which a Nonstatutory Stock Option
may be exercised, such Option, unless otherwise amended by the Committee, shall
only be exercisable to the extent the Optionee was entitled to exercise the
Option on the date he or she ceased his or her Continuous Status as an Employee.

      f. Death or Disability of Optionee. If an Optionee's Continuous Status as
an Employee ceases due to death or permanent and total disability (within the
meaning of Section 22(e)(3) of the Code) of the Optionee, the Option may be
exercised within 180 days (or such other period of time not exceeding one year
as is determined by the Committee at the time of granting the Option) following
the date of death or termination of employment due to permanent or total
disability (subject to any earlier termination of the Option as provided by its
terms), by the Optionee in the case of permanent or total disability, or in the
case of death by the Optionee's estate or by a person who acquired the right to
exercise the Option by bequest or inheritance, but in any case (unless otherwise
determined by the Committee at the time of granting the Option) only to the
extent the Optionee was entitled to exercise the Option at the date of his or
her termination of employment by death or permanent and total disability. To the
extent that he or she was not entitled to exercise such Option at the date of
his or her termination of employment by death or permanent and total disability,
or if he or she does not exercise such Option (which he or she was entitled to
exercise) within the time specified herein, the Option shall terminate.
Notwithstanding anything to the contrary herein, the Committee may at any time
and from time to time prior to the termination of a Nonstatutory Stock Option,
with the consent of the Optionee, extend the period of time during which the
Optionee may exercise his or her Nonstatutory Stock Option following the date he
or she ceases his or her Continuous Status as an Employee; provided, however,
that the maximum period of time during which a Nonstatutory Stock Option shall
be exercisable following the date on which an Optionee terminates his or her
Continuous Status as an Employee shall not exceed the original term of such
Option as set forth in the Option Agreement and that notwithstanding any
extension of time during which a Nonstatutory Stock Option may be exercised,
such Option, unless otherwise amended by the Committee, shall only be
exercisable to the extent the Optionee was entitled to exercise the Option on
the date he or she ceased his or her Continuous Status as an Employee.

      g. Termination for Cause. If an Optionee's Continuous Status as an
Employee with the Company terminates due to his or her Termination for Cause, he
or she may exercise his or her Option to the extent such Option was exercisable
as of the date of such termination, but only within 30 days following the date
of such Termination for Cause (subject to any earlier termination of the Option
as provided by its terms). To the extent that he or she was not entitled to
exercise such Option at the date of his or her Termination for Cause, or if he
or she does not exercise such Option (which he or she was entitled to exercise)
within the time specified herein, the Option shall terminate.

      h. Expiration of Option. Notwithstanding any provision in the Plan,
including but not limited to the provisions set forth in Sections 7(e), 7(f) and
7(g), an Option may not be exercised, under any circumstances, after the
expiration of its term.

      i. Conditions on Exercise and Issuance. As soon as practicable after any
proper exercise of an Option in accordance with the provisions of the Plan, the
Company shall (i) deliver to the Optionee at the principal executive office of
the Company or such other place as shall be

                                       8
<PAGE>
mutually agreed upon between the Company and the Optionee, a certificate or
certificates representing the Shares for which the Option shall have been
exercised or (ii) otherwise arrange for such Shares to be issued to the
Optionee. The time of issuance and, if applicable, delivery of the certificate
or certificates representing the Shares for which the Option shall have been
exercised may be postponed by the Company for such period as may be required by
the Company, with reasonable diligence, to comply with any law or regulation
applicable to the issuance or delivery of such Shares.

            Options granted under the Plan are conditioned upon the Company
obtaining any required permit or order from the appropriate governmental
agencies authorizing the Company to issue such Options and Shares issuable upon
exercise thereof. Shares shall not be issued pursuant to the exercise of an
Option unless the exercise of such Option and the issuance and delivery of such
Shares pursuant thereto shall comply with all relevant provisions of law,
including, without limitation, the Securities Act, the Exchange Act, applicable
state law, the rules and regulations promulgated thereunder and the requirements
of the Marketplace Rules of The Nasdaq Marketplace, Inc. and any stock exchange
upon which the Shares may then be listed. Any such issuance may be further
subject to the approval of counsel for the Company with respect to such
compliance.

8.    TERMS AND CONDITIONS OF RESTRICTED STOCK AWARDS.

      a. Grant. Restricted Stock Awards may be granted hereunder by the
Committee to Employees either alone or in addition to other Awards granted under
the Plan. A Restricted Stock Award shall be subject to such terms and conditions
as may be determined by the Committee and may be subject to vesting conditioned
upon the satisfaction of such requirements, conditions (such as a condition that
the Participant's right to the Shares shall vest in installments over a period
of time during which services are to be provided to the Company by the
Employee), restrictions or performance criteria as shall be established by the
Committee and set forth in the Award Agreement. During any period during which
Shares acquired pursuant to a Restricted Stock Award are subject to vesting
conditions, such Shares may not be sold, exchanged, transferred, pledged,
assigned or otherwise disposed of by the Participant. The provisions of
Restricted Stock Awards need not be the same with respect to each Participant
receiving such awards. The Committee has absolute discretion to determine
whether any consideration is to be received by the Company as a condition
precedent to the issuance of Restricted Stock Awards. The terms of any
Restricted Stock Award granted under this Plan shall be set forth in a written
Award Agreement which shall contain provisions determined by the Committee which
are not inconsistent with the Plan.

      b. Rights of Holders of Restricted Stock. Beginning on the date of grant
of a Restricted Stock Award and subject to execution of the Award Agreement, the
Participant shall become a shareholder of the Company with respect to all Shares
subject to the Restricted Stock Award and shall have all of the rights of a
shareholder, including the right to vote the Shares subject to the Restricted
Stock Award and the right to receive distributions made with respect to such
Shares; provided, however, that any Shares or any other property (other than
cash) distributed as a dividend or otherwise with respect to any such Shares as
to which the restrictions have not yet lapsed shall be subject to the same
restrictions as the Shares subject to the Restricted Stock Award.

      c. Delivery of Shares. Shares issued upon the grant of Restricted Stock
Awards shall, unless otherwise determined by the Committee, be maintained in the
custody of or on behalf of the Company until all applicable vesting conditions
have been satisfied. Shares subject to Restricted

                                       9
<PAGE>
Stock Awards that are no longer subject to restrictions shall be delivered to
the Participant promptly after the applicable restrictions lapse or are waived.

      d. Termination of Continuous Status as an Employee. Unless otherwise
determined by the Committee or unless otherwise provided in the Award Agreement
evidencing the Award, in the event of the termination of a Participant's
Continuous Status as an Employee, Shares which are subject to a Participant's
Restricted Stock Award which are not vested as of the date of such termination
shall be automatically forfeited by the Participant and cancelled by the Company
for no value.

      e. Waiver of Forfeiture. The Committee may, when it finds that a waiver
would be in the best interests of the Company and subject to such terms and
conditions as the Committee shall deem appropriate, waive in whole or in part
any remaining vesting restrictions with respect to any Restricted Stock Award or
any other conditions set forth in any Award Agreement.

9.    TERMS AND CONDITIONS OF RESTRICTED STOCK UNITS.

      a. Grant. Restricted Stock Units may be issued hereunder to Employees
either alone or in addition to other Awards granted under the Plan. A Restricted
Stock Unit is a bookkeeping entry that represents the right to receive one Share
to be issued and delivered at the end of the applicable vesting period, subject
to a risk of cancellation and to the other terms and conditions set forth in the
Plan and in any Award Agreement evidencing the Restricted Stock Unit and subject
to any additional terms and conditions established by the Committee. The Company
shall establish and maintain accounts for Participants in which the Company
shall record Restricted Stock Units and the transactions and events affecting
such units. Restricted Stock Units and other items reflected in the account will
represent only bookkeeping entries by the Company to evidence the Company's
unfunded obligations. The provisions of Restricted Stock Units need not be the
same with respect to each Participant receiving such Awards. The Committee has
absolute discretion to determine whether any consideration is to be received by
the Company as a condition precedent to the grant of a Restricted Stock Unit.
The terms of any Restricted Stock Unit granted under this Plan shall be set
forth in a written Award Agreement which shall contain provisions determined by
the Committee which are not inconsistent with the Plan.

      b. Rights of Holders of Restricted Stock Units; Dividend Equivalents.
Unless the Committee otherwise provides in an Award Agreement for Restricted
Stock Units, any Participant holding Restricted Stock Units shall have no rights
as a shareholder of the Company with respect to such Restricted Stock Units. The
Committee shall be authorized to establish procedures pursuant to which the
Company's payment of any Restricted Stock Unit may be deferred. Subject to the
provisions of the Plan and any Award Agreement, the recipient of a Restricted
Stock Unit may, if so determined by the Committee, be entitled to receive,
currently or on a deferred basis and with respect to the number of Shares
covered by the Award, payments ("Dividend Equivalents") in amounts equivalent to
cash, stock or other property paid by the Company as dividends on the Company's
Common Stock prior to the vesting of the Restricted Stock Units.

      c. Delivery of Shares in Settlement of Restricted Stock Units. Restricted
Stock Units (if not previously cancelled) will be automatically settled on or
about the vesting date or dates set forth in the Award Agreement evidencing the
Award. The Company may make delivery of Shares in

                                       10
<PAGE>
settlement of Restricted Stock Units by either delivering one or more stock
certificates representing such Shares to the Participant, registered in the name
of the Participant, or by depositing such Shares into an account maintained for
the Participant and established in connection with any Company plan or
arrangement providing for investment in Common Stock of the Company.

      d. Termination of Continuous Status as an Employee. Unless otherwise
determined by the Committee or unless otherwise provided in the Award Agreement
evidencing the Award, in the event of the termination of a Participant's
Continuous Status as an Employee, the Participant's Restricted Stock Units which
are not vested as of the date of such termination shall not vest and shall
automatically be cancelled for no value and without issuance of any Shares.

      e. Waiver of Forfeiture. The Committee may, when it finds that a waiver
would be in the best interests of the Company and subject to such terms and
conditions as the Committee shall deem appropriate, waive in whole or in part
any remaining vesting restrictions with respect to any Restricted Stock Units or
any other conditions set forth in any Award Agreement.

10.   NONTRANSFERABILITY OF AWARDS.

      No Awards granted under the Plan, and no Shares subject to any such
Awards, that have not been issued or as to which any applicable vesting
restriction, performance or deferral period has not lapsed, may be sold,
pledged, assigned, hypothecated, gifted, transferred or disposed of in any
manner, either voluntarily or involuntarily by operation of law, other than by
will or by the laws of descent or distribution or transfers between spouses
incident to a divorce. Options may be exercised during the life of the Optionee
only by the Optionee or the Optionee's guardian or legal representative.
Notwithstanding the foregoing, a Participant may assign or transfer an Award
with the consent of the Committee (each transferee thereof, a "Permitted
Transferee"), which consent may be granted or withheld in the Committee's sole
discretion, provided that such Permitted Transferee shall be bound by and
subject to all of the terms and conditions of the Plan and the Award Agreement
relating to the transferred Award and shall execute an agreement satisfactory to
the Company evidencing such obligations; and, provided further, that such
Participant shall remain bound by the terms and conditions of the Plan. The
Company shall cooperate with any Permitted Transferee and the Company's transfer
agent in effectuating any transfer permitted under this Section 10.

11.   ADJUSTMENT UPON CHANGE IN CORPORATE STRUCTURE.

      a. Subject to any required action by the shareholders of the Company, the
number and type of Shares covered by each outstanding Award, and the number and
type of Shares which have been authorized for issuance under the Plan but as to
which no Awards have yet been granted or which have been returned to the Plan
upon cancellation, expiration or forfeiture of an Award, as well as the exercise
or purchase price per Share, as applicable, covered by outstanding Awards, shall
be proportionately adjusted for any increase or decrease in the number of issued
Shares resulting from a stock split, reverse stock split or combination or the
payment of a stock dividend (but only on the Common Stock) or reclassification
of the Common Stock or any other increase or decrease in the number of issued
Shares effected without receipt of consideration by the Company (other than
stock awards to Employees); provided, however, that the conversion of any
convertible securities of the Company shall not be deemed to have been effected
without the receipt of

                                       11
<PAGE>
consideration. Any such adjustment shall be determined in good faith by the
Committee to be appropriate in order to prevent dilution or enlargement of the
benefits or potential benefits intended to be made available under the Plan, and
the Committee's determination in that respect shall be final, binding and
conclusive. Except as expressly provided herein, no issue by the Company of
shares of stock of any class, or securities convertible into 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 the Plan or an Award.

      b. In the event of the proposed dissolution or liquidation of the Company,
or in the event of a proposed sale of all or substantially all of the assets of
the Company (other than in the ordinary course of business), or the merger or
consolidation of the Company with or into another corporation, as a result of
which the Company is not the surviving and controlling corporation, the Board
shall (i) make provision for the assumption of outstanding Awards by the
successor corporation, (ii) declare that any Option shall terminate as of a date
fixed by the Board which is at least 30 days after the notice thereof to the
Optionee and shall give each Optionee the right to exercise his or her Option as
to all or any part of the Optioned Stock, including Shares as to which the
Option would not otherwise be exercisable provided such exercise does not
violate Section 7(h) of the Plan, (iii) accelerate the vesting of Restricted
Stock Awards and Restricted Stock Units, or (iv) cause any Award outstanding as
of the effective date of any such event to be cancelled in consideration of a
cash payment or grant of an alternative option or award (whether by the Company
or any entity that is a party to the transaction), or a combination thereof, to
the holder of the cancelled Award, provided that such payment and/or grant are
substantially equivalent in value to the fair market value of the cancelled
Award as determined by the Committee.

      c. No fractional shares of Common Stock shall be issuable on account of
any action aforesaid, and the aggregate number of shares into which Shares then
covered by an Award, when changed as the result of such action, shall be reduced
to the largest number of whole shares resulting from such action, unless the
Board, in its sole discretion, shall determine to issue scrip certificates in
respect to any fractional shares, which scrip certificates shall be in a form
and have such terms and conditions as the Board in its discretion shall
prescribe.

12.   SHAREHOLDER APPROVAL.

      Effectiveness of the Original Plan was subject to approval by the
shareholders of the Company within 12 months before or after the date the Plan
was adopted by the Board; provided, however, that Options could be granted
pursuant to the Plan subject to subsequent approval of the Plan by such
shareholders. Any Option exercised before shareholder approval was obtained
could be rescinded if shareholder approval was not obtained within 12 months
before or after the Original Plan was adopted. Such could shall not be counted
in determining whether such approval was obtained. Shareholder approval of the
Original Plan or any amendment thereto required to be approved by the
shareholders of the Company shall be obtained (i) by the affirmative vote of the
holders of a majority of the Shares present or represented and entitled to vote
thereon at a meeting of shareholders duly held in accordance with the laws of
the State of California or (ii) by written consent of the holders of the
outstanding Shares having not less than the minimum number of votes that would
be necessary to authorize the approval at a meeting of the shareholders duly
held in accordance with the laws of the State of California.

                                       12
<PAGE>
13.   AMENDMENT AND TERMINATION OF THE PLAN.

      a. Amendment and Termination. The Board may amend or terminate the Plan
from time to time in such respects as the Board may deem advisable, subject to
any requirement for shareholder approval imposed by applicable law, including
the rules and regulations of The Nasdaq Stock Market, Inc. or any stock exchange
on which Shares are listed or quoted, and shall make any amendments which may be
required so that Options intended to be Incentive Stock Options shall at all
times continue to be Incentive Stock Options for the purpose of Section 422 of
the Code; provided, however, that without approval of the Company's
shareholders, no such revision or amendment shall (i) materially increase the
benefits accruing to participants under the Plan; (ii) increase the number of
Shares which may be issued under the Plan, other than in connection with an
adjustment under Section 11 of the Plan; (iii) materially modify the
requirements as to eligibility for participation in the Plan; (iv) materially
change the designation of the class of Employees eligible to be granted Awards;
(v) remove the administration of the Plan from the Board or its Committee; or
(vi) extend the term of the Plan beyond the maximum term set forth in Section 16
hereunder.

      b. Effect of Amendment or Termination. Except as otherwise provided in
Section 11 of the Plan, any amendment or termination of the Plan shall not
affect Awards already granted, and such Awards shall remain in full force and
effect as if the Plan had not been amended or terminated, unless mutually agreed
otherwise between the Participant and the Company, which agreement must be in
writing and signed by the Participant and the Company. Notwithstanding anything
to the contrary herein, this Plan shall not adversely affect, unless mutually
agreed in writing by the Company and a Participant, the terms and provisions of
any Award granted prior to the date the Plan was approved by shareholders as
provided in Section 12 of the Plan.

14.   INDEMNIFICATION.

      No member of the Board or its Committee shall be liable for any act or
action taken, whether of commission or omission, except in circumstances
involving willful misconduct, or for any act or action taken, whether of
commission or omission, by any other member or by any officer, agent or
Employee. In addition to such other rights of indemnification they may have as
members of the Board, or as members of the Committee, the Board and the
Committee shall be indemnified by the Company against reasonable expenses,
including attorneys' fees actually and necessarily incurred in connection with
the defense of any action, suit or proceeding, or in connection with any appeal
therein, to which they or any of them may be a party by reason of any action
taken, by commission or omission, in connection with the Plan or any Award
granted thereunder, and against all amounts paid by them in settlement thereof
(provided such settlement is approved by independent legal counsel selected by
the Company) or paid by them in satisfaction of a judgment in any action, suit
or proceeding, except in relation to matters as to which it shall be adjudged in
such action, suit or proceeding that a Board or Committee member is liable for
willful misconduct in the performance of his or her duties; provided that within
60 days after institution of any such action, suit or proceeding, such Board or
Committee member shall in writing have offered the Company the opportunity, at
its own expense, to handle and defend the same.

                                       13
<PAGE>
15.   GENERAL PROVISIONS.

      a. Withholding or Deduction for Taxes. The grant of Awards hereunder and
the issuance of Shares and all payments and distributions pursuant to this Plan
are conditioned upon the Company's reservation of the right to withhold, in
accordance with any applicable law, from any compensation or other amounts
payable to the Participant, any taxes required to be withheld under Federal,
state or local law as a result of the: (i) grant of any Award, (ii) exercise of
any Option, (iii) sale of Shares issued upon exercise of Options, (iv) delivery
of Shares, cash or other property, (v) lapse of restrictions in connection with
any Award, or (vi) any other event occurring pursuant to the Plan. To the extent
that compensation and other amounts, if any, payable to the Participant are
insufficient to pay any taxes required to be so withheld, the Company may, in
its sole discretion, require the Participant, including without limitation, as a
condition of the exercise of any Option, to pay in cash to the Company an amount
sufficient to cover such tax liability or otherwise to make adequate provision
for the delivery to the Company of cash necessary to satisfy the Company's
withholding obligations under Federal and state law. The Committee shall be
authorized to establish procedures for election by Participants to satisfy such
obligations for the payment of such taxes by tendering previously acquired
Shares (either actually or by attestation, valued at their then Fair Market
Value) that have been owned for a period of at least six months (or such other
period as may be necessary to avoid accounting charges against the Company's
earnings), or by directing the Company to retain Shares (up to the Participant's
minimum required tax withholding rate) otherwise deliverable in connection with
the Award.

      b. Other Plans. Nothing contained in the Plan shall prohibit the Company
from establishing additional incentive compensation arrangements.

      c. No Enlargement of Rights. Neither the Plan, nor the granting of Awards,
nor any other action taken pursuant to the Plan shall constitute or be evidence
of any agreement or understanding, express or implied, that the Company will
retain an Employee for any period of time, or at any particular rate of
compensation. Nothing in the Plan shall be deemed to limit or affect the right
of the Company to discharge any Employee at any time for any reason or no
reason.

            No Employee shall have any right to or interest in Awards authorized
hereunder prior to the grant thereof to such eligible person, and upon such
grant he or she shall have only such rights and interests as are expressly
provided herein and in the related Award Agreement, subject, however, to all
applicable provisions of the Company's Articles of Incorporation, as the same
may be amended from time to time.

      d. Notice. Any notice to be given to the Company pursuant to the
provisions of the Plan shall be addressed to the Company in care of its
Secretary (or such other person as the Company may designate from time to time)
at its principal office, and any notice to be given to a Participant to whom an
Award is granted hereunder shall be delivered personally or addressed to him or
her at the address given beneath his or her signature on his or her Award
Agreement, or at such other address as such Participant or his or her transferee
(upon any permitted transfer) may hereafter designate in writing to the Company.
Any such notice shall be deemed duly given when enclosed in a properly sealed
envelope or wrapper addressed as aforesaid, registered or certified, and
deposited, postage and registry or certification fee prepaid, in a post office
or branch post office regularly maintained by the United States Postal Service.
It shall be the obligation of each

                                       14
<PAGE>
Participant holding Shares purchased upon exercise of an Option or otherwise
issued pursuant to Awards hereunder to provide the Secretary of the Company, by
letter mailed as provided hereinabove, with written notice of his or her direct
mailing address.

      e. Applicable Law. To the extent that Federal laws do not otherwise
control, the Plan shall be governed by and construed in accordance with the laws
of the State of California, without regard to the conflict of laws rules
thereof.

      f. Incentive Stock Options. The Company shall not be liable to an Optionee
or other person if it is determined for any reason by the Internal Revenue
Service or any court having jurisdiction that any Incentive Stock Options are
not incentive stock options as defined in Section 422 of the Code.

      g. Information to Participants. The Company shall provide without charge
to each Participant copies of its annual financial statements (which need not be
audited), which may be included within such annual and periodic reports as are
provided by the Company to its shareholders generally.

      h. Availability of Plan. A copy of the Plan shall be delivered to the
Secretary of the Company and shall be shown by him or her to any eligible person
making reasonable inquiry concerning it.

      i. Severability. In the event that any provision of the Plan is found to
be invalid or otherwise unenforceable under any applicable law, such invalidity
or unenforceability shall not be construed as rendering any other provisions
contained herein as invalid or unenforceable, and all such other provisions
shall be given full force and effect to the same extent as though the invalid or
unenforceable provision was not contained herein.

      j. Form of Shares and Restricted Stock Awards; Stop Transfer Orders.
Shares issued or delivered under the Plan, including Shares subject to any
Restricted Stock Award, may be evidenced in such manner as the Committee in its
sole discretion shall deem appropriate, including, without limitation,
book-entry registration or issuance of a stock certificate or certificates. In
the event any stock certificate is issued in respect of a Restricted Stock
Award, such certificate shall bear an appropriate legend referring to the terms,
conditions and restrictions applicable to such Award. All certificates for
Shares delivered under the Plan pursuant to any Award shall be subject to such
stop transfer orders and other restrictions as the Committee may deem advisable
under the rules, regulations and other requirements of the Securities and
Exchange Commission, any stock exchange or quotation system upon which the
Shares are then listed or quoted, and any applicable federal or state securities
law, and the Committee may cause a legend or legends to be put on any such
certificates to make appropriate reference to such restrictions.

      k. Unfunded Status of the Plan. The Plan is intended to constitute an
"unfunded" plan for incentive compensation. With respect to any payments not yet
made to a Participant by the Company, nothing contained herein shall give any
such Participant any rights that are greater than those of a general creditor of
the Company. In its sole discretion, the Committee may authorize the creation of
trusts or other arrangements to meet the obligations created under the Plan to
deliver the

                                       15
<PAGE>
Shares or payments in lieu of or with respect to Awards hereunder; provided,
however, that the existence of such trusts or other arrangements is consistent
with the unfunded status of the Plan.

16.   EFFECTIVE DATE AND TERM OF PLAN.

      The Original Plan became effective upon shareholder approval as provided
in Section 12 of the Plan, and this Plan shall become effective upon shareholder
approval at the 2004 Annual Meeting of Shareholders of the Company in accordance
with the shareholder approval provisions of Section 12. This Plan shall continue
in effect for a term of ten years following the date of shareholder approval of
the Original Plan unless sooner terminated under Section 13 of the Plan. This
Plan shall not become effective if not approved by the shareholders of the
Company at the Company's 2004 Annual Meeting of Shareholders and, in such case,
the Original Plan shall continue in full force and effect.

                                       16
<PAGE>
                            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 Amended and Restated 1997 Equity Incentive Plan.

      IN WITNESS WHEREOF, the undersigned has executed this document as of the
date set forth below.

Date: ______________________, 2004        ______________________________________
                                          Ronald W. Buckly, Secretary

<PAGE>

                                      IXIA
                 AMENDED AND RESTATED 1997 EQUITY INCENTIVE PLAN
                             STOCK OPTION AGREEMENT

Ixia hereby grants to you an Option under the Ixia Amended and Restated 1997
Equity Incentive Plan (the "Plan") to purchase the number of shares of Ixia
Common Stock set forth below.

NAME:

EMPLOYEE ID #:

DATE OF GRANT:

TYPE OF OPTION:            [NSO/ISO]

NUMBER OF SHARES:

EXERCISE PRICE:

PAYMENT:                   Payment of the exercise price and applicable taxes
                           may be made (i) by cash or check and/or (ii) pursuant
                           to a "Cashless" exercise (see Option Terms and
                           Conditions attached hereto).

VESTING SCHEDULE:          ______________ shares on M/D/Y shall vest as the
                           remaining _________ shares in 12 equal quarterly
                           installments, with the first such installment vesting
                           on M/D/Y, and one additional installment vesting on
                           the last day of each calendar quarter thereafter, as
                           long as you remain an employee of the Company

the________ equal quarterly installments; the first installment will vest on
                           M/D/Y, and one additional installment will vest on
                           the last day of each calendar quarter thereafter, as
                           long as you remain an employee of the Company.

EXPIRATION DATE:           Each installment will expire on the four-year
                           anniversary of its vesting (e.g., the installment
                           vesting on _________ will expire at the close of
                           business on _________); provided, however, that in
                           the event of your termination of employment with the
                           Company or your disability or death, the provisions
                           of Sections 6 and 7 of the Option Terms and
                           Conditions attached hereto shall apply to your right
                           to exercise the Option.

This Stock Option Agreement consists of this page and of the Option Terms and
Conditions attached hereto. By signing below, you accept the grant of this
Option and agree that this Option is subject in all respects to the terms and
conditions of the Plan. Copies of the Plan and Prospectus containing information
concerning the Plan are available at _________________ upon request to Renee
Buckly at (818) 444-3207 or renee@ixiacom.com.

You further acknowledge and agree that (i) you have carefully reviewed this
Stock Option Agreement (including the Option Terms and Conditions attached
hereto) and the Plan and (ii) this Stock Option Agreement and the Plan set forth
the entire understanding between you and the Company regarding this Option and
supersede all prior oral and written agreements with respect thereto.
<PAGE>
      IXIA

BY:_____________________________________________      __________________________
                                                      DATE
PRINT NAME: ____________________________________

TITLE: _________________________________________

________________________________________________      __________________________
                OPTIONEE SIGNATURE                    DATE
<PAGE>
              IXIA AMENDED AND RESTATED 1997 EQUITY INCENTIVE PLAN
              STOCK OPTION AGREEMENT - OPTION TERMS AND CONDITIONS

The following Terms and Conditions apply to the nonstatutory stock option
granted by Ixia to the Optionee whose name appears on the Stock Option Agreement
to which these Terms and Conditions are attached.

1.    IXIA AMENDED AND RESTATED 1997 EQUITY INCENTIVE PLAN. This Option is in
      all respects subject to the terms, definitions and provisions of the Ixia
      Amended and Restated 1997 Equity Incentive Plan (the "Plan") adopted by
      Ixia ("Ixia" or the "Company") and incorporated herein by reference. The
      terms defined in the Plan shall have the same meanings herein.

2.    NATURE OF THE OPTION. This Option is intended to be an [INCENTIVE STOCK
      OPTION/NONSTATUTORY STOCK OPTION] within the meaning of Section 422 of the
      Internal Revenue Code of 1986, as amended (the "Code").

3.    METHOD OF PAYMENT. The aggregate exercise price of the Shares purchased
      upon an exercise, in whole or in part, of the Option may be paid:

      (a)   in the form of cash from funds deposited in the "OptionsLink" online
            securities account maintained by an Optionee with E*Trade Securities
            LLC ("E*Trade") as an employee of Ixia; or

      (b)   through a special sale and remittance procedure commonly referred to
            as a "cashless exercise" or "sell to cover" transaction pursuant to
            which the Optionee (or any other person(s) entitled to exercise the
            Option) shall concurrently provide irrevocable written instructions:

            (i)   to E*Trade (through your on-line account) to effect the
                  immediate sale of a sufficient number of the Shares purchased
                  upon the exercise of the Option to enable E*Trade to remit,
                  out of the sales proceeds available upon the settlement date,
                  sufficient funds to Ixia to cover the aggregate exercise price
                  payable for the purchased Shares plus all applicable federal,
                  state and local income and employment taxes required to be
                  withheld by Ixia by reason of such exercise and/or sale; and

            (ii)  to Ixia to deliver any certificate(s) or other evidence of
                  ownership for the purchased Shares directly to E*Trade in
                  order to complete the sale transaction.

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)   This Option shall vest and be exercisable cumulatively as set forth
            on the first page of the Stock Option Agreement. An Optionee who has
            been in continuous employment with the Company since the grant of
            this Option may exercise the exercisable portion of his or her
            Option in whole or in part at any time during his or her employment;
            provided, however, that an Option may not be exercised for a
            fraction of a Share. In the event of the Optionee's termination of
            employment with the Company or Optionee's disability or death, the
            provisions of Sections 6 or 7 below shall apply to the right of the
            Optionee to exercise the Option.

      (b)   This Option shall be exercisable by following such procedures as may
            from time to time be prescribed by Ixia or E*Trade in connection
            with the OptionsLink online securities account maintained by you
            with E*Trade as an employee of Ixia.

      (c)   No rights of a shareholder shall exist with respect to the Shares
            under this Option as a result of the mere grant of this Option or
            the exercise of this Option. Such rights shall exist only after
            issuance of a stock certificate or electronic transfer of the shares
            to your E*Trade account in accordance with the Plan.

5.    RESTRICTIONS ON EXERCISE. This Option may not be exercised if the issuance
      of Shares upon Optionee's exercise or the method of payment of
      consideration for such Shares would constitute a violation of any
      applicable Federal or state
<PAGE>
      securities law or other applicable law or regulation. 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.

6.    TERMINATION OF EMPLOYMENT. If the Optionee ceases to serve as an Employee
      for any reason other than death or permanent and total disability (within
      the meaning of Section 22(e)(3) of the Code) and thereby terminates his or
      her Continuous Employment, the Optionee shall have the right to exercise
      this Option at any time within 90 days 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 this Option at the date of termination, or to the
      extent this Option is not exercised within the time specified herein, this
      Option shall terminate. Notwithstanding the foregoing, this Option shall
      not be exercisable as to any vested installment after the expiration of
      the four-year "term" for such installment as described in Section 8
      hereof.

7.    DEATH OR DISABILITY. If the Optionee ceases to serve as an Employee due to
      death or permanent and total disability (within the meaning of Section
      22(e)(3) of the Code), this Option may be exercised at any time within 180
      days after the date of death or termination of employment due to
      disability, in the case of death, by the Optionee's estate or by a person
      who acquired the right to exercise this Option by bequest or inheritance,
      or, in the case of disability, by the Optionee, but in any case only to
      the extent 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 this Option at the date of termination, or to the extent this
      Option is not exercised within the time specified herein, this Option
      shall terminate. Notwithstanding the foregoing, this Option shall not be
      exercisable as to any vested installment after the expiration of the
      four-year "term" for such installment as described in Section 8 hereof.

8.    TERM OF OPTION. To the extent that any vested installment of this Option
      is not exercised within the four-year period following the date on which
      such installment becomes vested and exercisable, this Option shall expire
      and terminate with respect to such installment. Such four-year exercise
      period as to any vested installment shall be subject to earlier
      termination as provided in Sections 6 and 7 above. This Option may be
      exercised only in accordance with the Plan and these Terms and Conditions.
      Notwithstanding any provision in the Plan or in these Terms and Conditions
      with respect to the post-employment exercise of this Option, this Option
      may not be exercised with respect to any Shares subject to any vested
      installment after expiration of the four-year period following the date on
      which this Option became vested and exercisable with respect to such
      Shares.

9.    WITHHOLDING UPON EXERCISE OF OPTION. The Company reserves the right to
      withhold, in accordance with any applicable laws, from any consideration
      payable to 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 in cash 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.

10.   NONTRANSFERABILITY OF OPTION. This Option may not be sold, pledged,
      assigned, hypothecated, gifted, transferred or disposed of in any manner
      either voluntarily or involuntarily by operation of law, other than by
      will or by the laws of descent or distribution. 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.

11.   NO RIGHT OF EMPLOYMENT. Neither the Plan nor this Option shall confer upon
      the Optionee any right to continue in the employment of the Company or
      limit in any respect the right of the Company to discharge the Optionee at
      any time, with or without cause and with or without notice.

12.   MISCELLANEOUS.

      (a)   Successors and Assigns. This Option Agreement shall bind and inure
            only to the benefit of the parties to this Option Agreement (the
            "Parties") and their respective successors and assigns.

                                       2
<PAGE>
      (b)   No Third-Party Beneficiaries. Nothing in this Option Agreement is
            intended to confer any rights or remedies on any persons other than
            the Company and the Optionee and their respective successors or
            assigns. Nothing in this Option Agreement is intended to relieve or
            discharge the obligation or liability of third persons to either
            Party. No provision of this Option Agreement shall give any third
            person any right of subrogation or action over or against either
            Party.

      (c)   Amendments.

            (i)   The Committee reserves the right to amend the terms and
                  provisions of this Option without the Optionee's consent to
                  comply with any Federal or state securities law.

            (ii)  Except as specifically provided in subsection 12(c)(i) above,
                  this Option Agreement and these Terms and Conditions shall not
                  be changed or modified, in whole or in part, except by
                  supplemental agreement signed by the Parties. Either Party may
                  waive compliance by the other Party with any of the covenants
                  or conditions of this Option Agreement, but no waiver shall be
                  binding unless executed in writing by the Party making the
                  waiver. No waiver or any provision of this Option Agreement
                  shall be deemed, or shall constitute, a waiver of any other
                  provision, whether or not similar, nor shall any waiver
                  constitute a continuing waiver. Any consent under this Option
                  Agreement shall be in writing and shall be effective only to
                  the extent specifically set forth in such writing.

      (d)   Governing Law. To the extent that Federal laws do not otherwise
            control, the Plan and all determinations made or actions taken
            pursuant hereto shall be governed by the laws of the State of
            California, without regard to the conflict of laws rules thereof.

      (e)   Severability. If any provision of this Option Agreement or the
            application of such provision to any person or circumstances is held
            invalid or unenforceable, the remainder of this Option Agreement, or
            the application of such provision to persons or circumstances other
            than those as to which it is held invalid or unenforceable, shall
            not be affected thereby.

                                     * * * *

                                       3<PAGE>

                                                                     EXHIBIT 4.2

                                      IXIA

                              AMENDED AND RESTATED
                              NON-EMPLOYEE DIRECTOR
                                STOCK OPTION PLAN

<PAGE>

                                      IXIA

                              AMENDED AND RESTATED
                     NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

                               SECTION I. PURPOSE

      The purpose of this Ixia Amended and Restated Non-Employee Director Stock
Option Plan (this "Plan") is to provide an incentive which will motivate and
reward "Non-Employee 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 "Non-Employee Directors." None of the options granted
pursuant to this Plan will qualify as an Incentive Stock Option, 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. "Amendment Effective Date" means May 13, 2004, provided that this Plan
is approved by the shareholders of the Company at the 2004 Annual Meeting of
Shareholders of the Company on such date. If this Plan is not so approved by the
shareholders of the Company, then this Plan will not become effective, the
Original Plan shall remain in full force and effect and the Company may continue
to make grants pursuant to the terms of the Original Plan.

      C. "Annual Meeting of Shareholders" shall mean an Annual Meeting of
Shareholders of the Company.

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

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

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

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

      H. "Effective Date" means September 1, 2000.

      I. "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
<PAGE>
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;

            (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.

      J. "Non-Employee 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.

      K. "Original Plan" means the Ixia Director Stock Option Plan as adopted by
the Board on September 1, 2000 in effect prior to the amendment and restatement
of such plan as evidenced by this Plan.

      L. "Participant" means a Non-Employee Director who is granted a stock
option hereunder.

      M. "Plan" means this Ixia Amended and Restated Non-Employee Director Stock
Option Plan.

                       SECTION III. EFFECTIVENESS OF PLAN

      This Plan shall become effective as of May 13, 2004, subject to the
approval of the shareholders of the Company at the Annual Meeting of
Shareholders scheduled to be held on May 13, 2004 (the "2004 Annual Meeting").
No options will be granted under this Plan prior to obtaining approval of the
shareholders of the Company at the 2004 Annual Meeting. If this Plan is not so
approved by the shareholders of the Company at the 2004 Annual Meeting, then (i)
this Plan will not become effective for any purpose, and (ii) the Original Plan
shall remain in full force and effect and the Company may continue to make
grants pursuant to the terms and conditions of the Original Plan.

                               SECTION IV. STOCK

      The maximum aggregate number of shares of Common Stock which may be sold
under this Plan is 400,000. 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 V. ELIGIBILITY

      Stock options may be granted under the Plan only to Non-Employee
Directors. All options shall be automatically granted in accordance with the
terms set forth in Section VI hereof.

                                       2
<PAGE>
                   SECTION VI. INITIAL GRANTS; ANNUAL GRANTS

      A. Initial Grants of Stock Options upon Election for the First Time as a
Non-Employee Director. On and after the Effective Date, each Non-Employee
Director who is elected or appointed for the first time to the Board, whether
through election by the shareholders of the Company or through appointment by
the Board, shall automatically be granted, effective as of the date of such
election or appointment, an option to purchase that number of shares of Common
Stock as is determined in accordance with this Section VI.A.; 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 any such options upon such
change in status. The number of shares subject to the options granted to a
Non-Employee Director pursuant to this Section VI.A. who is elected prior to the
Amendment Effective Date shall be 10,000 shares. The number of shares subject to
the options granted to a Non-Employee Director pursuant to this Section VI.A.
who is elected on or after the Amendment Effective Date shall be equal to the
sum of 25,000 plus (1) 10,000, if the Non-Employee Director is elected or
appointed for the first time on the date of an Annual Meeting of Shareholders of
the Company, or (2) if the Non-Employee Director is elected or appointed for the
first time on a date other than the date of an Annual Meeting of Shareholders,
the product obtained by multiplying 10,000 by a fraction, the numerator of which
is equal to 12 minus the number of full months that have elapsed since the most
recent Annual Meeting of Shareholders and the denominator of which is 12.

      B. Annual Grant of Options upon Re-Election as a Non-Employee Director. On
and after the Effective Date, each Non-Employee Director shall automatically be
granted an option to purchase that number of shares of Common Stock as is
determined in accordance with this Section VI.B. on the date of each Annual
Meeting of Shareholders at which the Non-Employee Director is re-elected to the
Board of Directors; provided, however, that prior to the Amendment Effective
Date, a Non-Employee Director shall be entitled to receive a re-election grant
under this Section VI.B. only if he or she has been a director of the Company
for at least six months preceding the grant date. The number of shares subject
to the options granted to a Non-Employee Director pursuant to this Section VI.B.
who is elected prior to the Amendment Effective Date shall be 5,000 shares. The
number of shares subject to the options granted to a Non-Employee Director
pursuant to this Section VI.B. who is elected after the Amendment Effective Date
shall be 10,000 shares.

      C. Option Exercise Price. The exercise price of the Common Stock subject
to all options granted hereunder shall be 100% of the Fair Market Value of the
Common Stock on the date of the grant of such Options.

      D. Term and Vesting of Options.

            (i) Each option granted prior to the Amendment Effective Date
pursuant to Subsections A or B of this Section VI shall have a term of seven
years, subject to earlier termination pursuant to Section VII.B. of this Plan.

            (ii) Each option granted on or after the Effective Date but prior to
the Amendment Effective Date pursuant to Subsection A of this Section VI will
vest and become exercisable in eight 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 seven calendar quarters

                                       3
<PAGE>
thereafter, as long as the optionee continues to serve as a Non-Employee
Director on such vesting dates. An option may not be exercised for a fraction of
a share.

            (iii) Each option granted pursuant to Subsection B of this Section
VI 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 a Non-Employee
Director on such vesting dates; provided, however, that with respect to options
granted prior to the Amendment Effective Date and except as provided in
Subsection F(i) of this Section VI, no option may be exercised at any time
unless the Participant is then a Non-Employee Director and has been so
continuously since the granting of the option. An option may not be exercised
for a fraction of a share.

            (iv) For options granted on or after the

            (v) Effective Date pursuant to Subsections A or B of this Section
VI, each vested installment of options will expire four years after vesting,
subject to earlier termination pursuant to Section VII.B. of this Plan.

      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 or pursuant to a transfer between spouses
incident to a divorce. An option may be exercised, during the lifetime of the
Participant, only by the Participant.

      F. Termination of Service.

            (i) For options granted prior to the Amendment Effective Date, if a
Participant voluntarily or involuntarily terminates his or her service as a
Non-Employee Director for any reason other than death or Disability, the
Participant may exercise the options at any time within 90 days after the date
of such termination, but only to the extent that the Participant was entitled to
exercise the options on the date of termination. In no event shall such options
be exercisable after the expiration of the term of the options, and any options
not so exercised shall expire. For options granted prior to the Amendment
Effective Date, if a Participant's service as a Non-Employee 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 options which are vested on the date
of termination, 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 options.

            (ii) Options granted on or after the Amendment Effective Date shall
not terminate or expire as to unexercised vested installments as a result of a
Participant's voluntary or involuntary termination of service as a Non-Employee
Director, including as a result of his or her death or Disability. In the event
of any such termination, the Participant (or his or her personal representative
if the Participant has died) may, at any time through the expiration of the
four-year exercise period for any installment vested on the date of such
termination, exercise the options as to all or part of such vested installment.
To the extent that the Participant is not entitled to exercise the options at
the date of such termination, or to the extent that vested installments of
options at

                                       4
<PAGE>
the time of termination of service are not exercised prior to the four-year
anniversary of the date on which such installments vested, the options shall
terminate. In no event shall any such options be exercisable as to any vested
installment after the expiration of the four-year exercise period applicable to
such installment.

      G. Payment of Option Exercise Price. The exercise 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) by
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), (iii) and
(iv); provided, however, that shares of Common Stock tendered in payment must be
shares owned by the Non-Employee Director and registered in the Non-Employee
Director's name and may not include shares of Common Stock acquired by the
Non-Employee Director 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 granted prior to the Amendment Effective
Date shall be evidenced by written option agreements in the form of such
agreement attached hereto as Attachment I. Options granted on or after the
Amendment Effective Date shall be evidenced by a written option agreement in
substantially the form of the agreement attached hereto as Attachment II.

      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 Non-Employee 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 agreement 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 Subsection G of this Section VI. 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 as soon as administratively practicable 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 VII 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.

                                       5
<PAGE>
                         SECTION VII. 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 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 or the number of shares subject to the
Plan. Without limiting the generality of the foregoing, no adjustment shall be
made to the number of shares subject to the automatic grant provisions of
Section VI of the Plan as a result of any changes in capitalization as described
in this Section VII.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, provided, however, that no options may be exercised after their
expiration.

      C. No Fractional Shares. No fractional shares of Common Stock shall be
issuable on account of any action described in this Section VII, 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 VIII. 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

                                       6
<PAGE>
years from the date of adoption of the Original Plan by the Board (i.e., on
September 1, 2000). The Board of Directors may, at any time prior to the date
that is ten years after the adoption of the Original 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 no amendment authorized
by the Board will be effective unless approved by the shareholders of the
Company if the amendment would (i) increase the number of shares reserved for
issuance under the Plan other than an adjustment under Section VII of the Plan;
or (ii) amend or modify the Plan in any other way if such amendment or
modification requires approval by the shareholders of the Company in order to
comply with the requirements of Rule 16b-3 promulgated under the Securities
Exchange Act of 1934, as amended, or any other applicable law, regulation or
stock exchange or market system rule or requirement.

      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.

                            SECTION IX. 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 a
Non-Employee 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 a Non-Employee Director, as a condition to
the 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 the Company to satisfy its withholding obligations under
federal, state and local law.

                            SECTION X. 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 a Non-Employee 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 legends 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

                                       7
<PAGE>
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 or the number of shares subject to
option grants (except in accordance with Section VI.I. hereof), the exercise
prices of options, or any other material terms of the options. All decisions and
determinations of the Board or its Committee with respect to the Plan shall be
final and binding.

      D. Reservation of Shares. The Company, during the term of this Plan, shall
at all times reserve and keep available, such number of shares as shall be
sufficient to satisfy the requirements of this Plan.

                 SECTION XI. EFFECTIVENESS OF THE ORIGINAL PLAN

      Effectiveness of the Original Plan was subject to approval by the
shareholders of the Company within 12 months after the date on which the
Original Plan was adopted by the Board of Directors; provided, however, that
options could be granted pursuant to the Original Plan subject to subsequent
approval of the Original Plan by the Company's shareholders. Such approval was
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, if any, made prior to shareholder approval of the Original Plan were
made subject to the obtaining of such approval and, if such approval had not
been obtained as aforesaid, any such grants would not have been effective for
any purpose.

                                      * * *

                                       8
<PAGE>
                            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 Amended and Restated Non-Employee Director Stock Option Plan as
adopted by the Board of Directors of the Company on March 25, 2004 and as
approved by the shareholders of the Company on May 13, 2004.

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

Date: __________________________, 2004     _____________________________________
                                           Ronald W. Buckly, Secretary
<PAGE>
                                  ATTACHMENT I

                                      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 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

                                      I-1
<PAGE>
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.

                                      I-2
<PAGE>
      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:_________________________________

                                      I-3
<PAGE>
      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

                                      I-4
<PAGE>
                                  ATTACHMENT II

                                      IXIA

                              AMENDED AND RESTATED
                     NON-EMPLOYEE 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 Amended and Restated Non-Employee 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 March 31, 2009. Each
vested installment of this Option will expire on the four-year anniversary of
its vesting date.

      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 equal installments of
________________________________________ (____________) Shares each 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
calendar quarters thereafter as long as the Optionee remains a Non-Employee
Director. The Optionee may exercise this Option, in whole or in part, to acquire
Shares as to which this Option has vested at any time during the period
beginning on and including the applicable vesting date and ending on and
including the four-year anniversary of such vesting date (e.g., this Option
shall be exercisable as to the installment vesting on ____________________ from
and including ____________________ through the close of business on
____________________).

            (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

                                      II-1
<PAGE>
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 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 A NON-EMPLOYEE DIRECTOR. If the Optionee
ceases to serve as a Non-Employee Director for any reason, the Optionee shall
have the right to exercise any vested installments of this Option prior to the
close of business on the four-year anniversary of the date on which such
installment vested. To the extent that the Optionee was not entitled to exercise
the Option at the date of termination, or to the extent any vested installment
of this Option is not exercised prior to the close of business on the four-year
anniversary of the date on which such installment vested, this Option shall
terminate.

      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. This Option 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.

      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

                                      II-2
<PAGE>
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
agree to be bound by, all of the terms and conditions of the Company's Amended
and Restated Non-Employee 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:_________________________________

                                      II-3
<PAGE>
      The Optionee acknowledges receipt of a copy of the Ixia Amended and
Restated Non-Employee 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

                                      II-4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]