Document:

exv4w1

Exhibit 4.1

RAVEN INDUSTRIES, INC.

2010 STOCK INCENTIVE PLAN

     1. Purpose. The purpose of the 2010 Stock Incentive Plan (the “Plan”) of Raven
Industries, Inc. (the “Company”) is to increase shareholder value and to advance the interests of
the Company by furnishing a variety of economic incentives (“Incentives”) designed to attract,
retain and motivate employees, certain key consultants and directors of the Company. Incentives
may consist of opportunities to purchase or receive shares of Common Stock, $1.00 par value, of the
Company (“Common Stock”) or other incentive awards on terms determined under this Plan.

     2. Administration. The Plan shall be administered by the board of directors of the
Company (the “Board of Directors”) or by a stock option or compensation committee (the “Committee”)
of the Board of Directors. The Committee shall consist of not less than two directors of the
Company and shall be appointed from time to time by the Board of Directors. Each member of the
Committee shall be (a) a “non-employee director” within the meaning of Rule 16b-3 of the Securities
Exchange Act of 1934 (including the regulations promulgated thereunder, the “1934 Act”) (a
“Non-Employee Director”), and (b) shall be an “outside director” within the meaning of Section
162(m) under the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations
promulgated thereunder. The Committee shall have complete authority to award Incentives under the
Plan, to interpret the Plan, and to make any other determination which it believes necessary and
advisable for the proper administration of the Plan. The Committee’s decisions and matters
relating to the Plan shall be final and conclusive on the Company and its participants. If at any
time there is no stock option or compensation committee, the term “Committee”, as used in the Plan,
shall refer to the Board of Directors.

     3. Eligible Participants. Officers of the Company, employees of the Company or its
subsidiaries, members of the Board of Directors, and consultants or other independent contractors
who provide services to the Company or its subsidiaries shall be eligible to receive Incentives
under the Plan when designated by the Committee. Participants may be designated individually or by
groups or categories (for example, by pay grade) as the Committee deems appropriate. Participation
by officers of the Company or its subsidiaries and any performance objectives relating to such
officers must be approved by the Committee. Participation by others and any performance objectives
relating to others may be approved by groups or categories (for example, by pay grade) and
authority to designate participants who are not officers and to set or modify such targets may be
delegated.

     4. Types of Incentives. Incentives under the Plan may be granted in any one or a
combination of the following forms: (a) incentive stock options and non-statutory stock options
(Section 6); (b) stock appreciation rights (“SARs”) (Section 7); (c) stock awards (Section 8); and
(d) restricted stock (Section 8). Subject to the specific limitations provided in this Plan,
payment of Incentives may be in the form of cash, Common Stock or combinations thereof as the
Committee shall determine, and with such other restrictions as it may impose.

     5. Shares Subject to the Plan.

          5.1 Number of Shares. Subject to adjustment as provided in Section 9.6, the
number of shares of Common Stock which may be issued under the Plan shall not exceed 500,000

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shares of Common Stock. Shares of Common Stock that are issued under the Plan or are subject
to outstanding Incentives will be applied to reduce the maximum number of shares of Common
Stock remaining available for issuance under the Plan.

          5.2 Cancellation. If an Incentive granted hereunder expires or is terminated or
canceled unexercised as to any shares of Common Stock or forfeited or reacquired by the Company
pursuant to rights reserved upon issuance thereof, such forfeited and reacquired shares may
again be issued under the Plan pursuant to another Incentive. If any Shares subject to an
Incentive granted hereunder are withheld or applied as payment in connection with the exercise
of an Incentive (including the withholding of Shares on the exercise of a stock option or the
exercise of an SAR that is settled in Shares) or the withholding or payment of taxes related
thereto, such Shares shall not again be available for grant under the Plan.

          5.3 Type of Common Stock. Common Stock issued under the Plan in connection with
Incentives will be authorized and unissued shares.

          5.4 Limitation on Certain Grants. No person shall receive grants of stock options
and SARs under the Plan that exceed, in the aggregate, 100,000 shares during any one fiscal
year of the Company.

     6. Stock Options. A stock option is a right to purchase shares of Common Stock from
the Company. Each stock option granted by the Committee under this Plan shall be subject to the
following terms and conditions:

          6.1 Price. The option price per share shall be determined by the Committee,
subject to adjustment under Section 9.6. Notwithstanding the foregoing sentence, the option
price per share shall not be less than the Fair Market Value (as defined in Section 9.15) of
the Common Stock on the Grant Date (as defined in Section 9.16).

          6.2 Number. The number of shares of Common Stock subject to a stock option shall
be determined by the Committee, subject to adjustment as provided in Section 9.6. The number
of shares of Common Stock subject to a stock option shall be reduced in the same proportion
that the holder thereof exercises an SAR if any SAR is granted in conjunction with or related
to the stock option. If the number of shares subject to a stock option is reduced pursuant to
the preceding sentence, the number of shares subject to the original grant will continue to
count against the limitation on grants under Section 5.4.

          6.3 Duration and Time for Exercise. Subject to earlier termination as provided in
Section 9.4, the term of each stock option shall be determined by the Committee but shall not
exceed ten years and one day from the Grant Date. Each stock option shall become exercisable
at such time or times during its term as shall be determined by the Committee at the time of
grant. The Committee may accelerate the exercisability of any stock option. Subject to the
first sentence of this paragraph, the Committee may extend the term of any stock option to the
extent provided in Section 9.4.

          6.4 Manner of Exercise. A stock option may be exercised, in whole or in part, by
giving written notice to the Company, specifying the number of shares of Common Stock to be
purchased and accompanied by the full purchase price for such shares. The option price shall
be payable (a) in United States dollars upon exercise of the option and may be paid by cash,
uncertified or certified check or bank draft; (b) unless otherwise provided in the option
agreement, by delivery of shares of Common Stock in payment of all or any part of the option
price, which shares shall be valued for this purpose at the Fair Market Value on the date such
option is exercised; or (c) unless otherwise provided in the option agreement, by instructing
the Company to withhold from the shares of Common Stock issuable upon exercise of the stock
option shares of Common Stock in payment of all or any part of the exercise price and/or any
related withholding tax obligations consistent with Section 9.8, which shares shall be valued
for this purpose at the Fair Market Value or in such other manner as may be authorized from
time to time by the Committee. Before the issuance of shares of 

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Common Stock upon the exercise
of a stock option, a participant shall have no rights as a shareholder.

          6.5 Incentive Stock Options. Notwithstanding anything in the Plan to the
contrary, the following additional provisions shall apply to the grant of stock options which
are intended to qualify as Incentive Stock Options (as such term is defined in Code Section
422):

               (a) The aggregate Fair Market Value (determined as of the time the option is granted)
of the shares of Common Stock with respect to which Incentive Stock Options are exercisable
for the first time by any participant during any calendar year (under all of the Company’s
plans) shall not exceed $100,000. The determination will be made by taking Incentive Stock
Options into account in the order in which they were granted. If such excess only applies
to a portion of an Incentive Stock Option, the Committee, in its discretion, will designate
which shares will be treated as shares to be acquired upon exercise of an Incentive Stock
Option.

                (b) Any option agreement for an Incentive Stock Option under the Plan shall contain
such other provisions as the Committee shall deem advisable, but shall in all events be
consistent with and contain all provisions required in order to qualify the options as
Incentive Stock Options.

               (c) All Incentive Stock Options must be granted within ten years from the earlier of
the date on which this Plan was adopted by Board of Directors or the date this Plan was
approved by the shareholders.

               (d) Unless sooner exercised, all Incentive Stock Options shall expire no later than
ten years after the Grant Date.

               (e) The option price for Incentive Stock Options shall be not less than the Fair
Market Value of the Common Stock subject to the option on the Grant Date.

               (f) If Incentive Stock Options are granted to any participant who, at the time such
option is granted, would own (within the meaning of Code Section 422) stock possessing more
than 10% of the total combined voting power of all classes of stock of the employer
corporation or of its parent or subsidiary corporation, (i) the option price for such
Incentive Stock Options shall be not less than 110% of the Fair Market Value of the Common
Stock subject to the option on the Grant Date and (ii) such Incentive Stock Options shall
expire no later than five years after the Grant Date.

          7. Stock Appreciation Rights. An SAR is a right to receive, without payment to the
Company, a number of shares of Common Stock, the amount of which is determined pursuant to the
formula set forth in Section 7.5. An SAR may be granted (a) with respect to any stock option
granted under this Plan, either concurrently with the grant of such stock option or at such later
time as determined by the Committee (as to all or any portion of the shares of Common Stock subject
to the stock option), or (b) alone, without reference to any related stock option. Each SAR
granted by the Committee under this Plan shall be subject to the following terms and conditions:

          7.1 Price. The exercise price per share of any SAR granted without reference to a
stock option shall be determined by the Committee, subject to adjustment under Section 9.6.
Notwithstanding the foregoing sentence, the exercise price per share shall not be less than the
Fair Market Value of the Common Stock on the Grant Date.

          7.2 Number. Each SAR granted to any participant shall relate to such number of
shares of Common Stock as shall be determined by the Committee, subject to adjustment as
provided in Section 9.6. In the case of an SAR granted with respect to a stock option, the
number of shares of Common Stock to which the SAR relates shall be reduced in the same
proportion that the holder of the option exercises the related stock option. If the number of
shares subject to an SAR is reduced

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pursuant to the preceding sentence, the number of shares
subject to the original grant will continue to count against the limitation on grants under
Section 5.4.

          7.3 Duration. Subject to earlier termination as provided in Section 9.4, the term
of each SAR shall be determined by the Committee but shall not exceed ten years and one day
from the Grant Date. Unless otherwise provided by the Committee, each SAR shall become
exercisable at such time or times, to such extent and upon such conditions as the stock option,
if any, to which it relates is exercisable. The Committee may in its discretion accelerate the
exercisability of any SAR. Subject to the first sentence of this paragraph, the Committee may
extend the term of any SAR to the extent provided in Section 9.4.

          7.4 Exercise. An SAR may be exercised, in whole or in part, by giving written
notice to the Company, specifying the number of SARs which the holder wishes to exercise. Upon
receipt of such written notice, the Company shall, within 90 days thereafter, deliver to the
exercising holder certificates for the shares of Common Stock or cash or both, as determined by
the Committee, to which the holder is entitled pursuant to Section 7.5.

          7.5 Issuance of Shares Upon Exercise. The number of shares of Common Stock which
shall be issuable upon the exercise of an SAR shall be determined by dividing:

               (a) the number of shares of Common Stock as to which the SAR is exercised multiplied
by the amount of the appreciation in such shares (for this purpose, the “appreciation”
shall be the amount by which the Fair Market Value of the shares of Common Stock subject to
the SAR on the exercise date exceeds (1) in the case of an SAR related to a stock option,
the purchase price of the shares of Common Stock under the stock option or (2) in the case
of an SAR granted alone, without reference to a related stock option, an amount which shall
be determined by the Committee at the time of grant, subject to adjustment under Section
9.6); by

               (b) the Fair Market Value of a share of Common Stock on the exercise date.

     No fractional shares of Common Stock shall be issued upon the exercise of an SAR; instead, the
holder of the SAR shall be entitled to receive a cash adjustment equal to the same fraction of the
Fair Market Value of a share of Common Stock on the exercise date or to purchase the portion
necessary to make a whole share at its Fair Market Value on the date of exercise.

     8. Stock Awards and Restricted Stock. A stock award consists of the
transfer by the Company to a participant of shares of Common Stock, without other payment therefor,
as additional compensation for services to the Company. A share of restricted stock consists of
shares of Common Stock which are sold or transferred by the Company to a participant at a price, if
any, determined by the Committee and subject to restrictions on their sale or other transfer by the
participant. The transfer of Common Stock pursuant to stock awards and the transfer and sale of
restricted stock shall be subject to the following terms and conditions:

          8.1 Number of Shares. The number of shares to be transferred or sold by
the Company to a participant pursuant to a stock award or as restricted stock shall be
determined by the Committee.

          8.2 Sale Price. The Committee shall determine the price, if any, at
which shares of restricted stock shall be sold to a participant, which may vary from time to
time and among participants and which may be below the Fair Market Value of such shares of
Common Stock at the date of sale.

          8.3 Restrictions. All shares of restricted stock transferred or sold by the
Company hereunder shall be subject to such restrictions as the Committee may determine,
including, without limitation any or all of the following:

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               (a) a prohibition against the sale, transfer, pledge or other encumbrance of the
shares of restricted stock, such prohibition to lapse at such time or times as the
Committee shall determine (whether in annual or more frequent installments, at the time of
the death, disability or retirement of the holder of such shares, or otherwise);

               (b) a requirement that the holder of shares of restricted stock forfeit, or (in the
case of shares sold to a participant) re-sell back to the Company at his or her cost, all
or a part of such shares in the event of termination of his or her employment or consulting
engagement during any period in which such shares are subject to restrictions;

               (c) such other conditions or restrictions as the Committee may deem advisable.

          8.4 Enforcement of Restrictions. In order to enforce the restrictions imposed by
the Committee pursuant to Section 8.3, the participant receiving restricted stock shall enter
into an agreement with the Company setting forth the conditions of the grant. Shares of
restricted stock shall be registered in the name of the participant and deposited, together
with a stock power endorsed in blank, with the Company. Each such certificate shall bear a
legend that refers to the Plan and the restrictions imposed under the applicable agreement. At
the Committee’s election, shares of restricted stock may be held in book entry form subject to
the Company’s instructions until any restrictions relating to the restricted stock grant lapse.

          8.5 End of Restrictions. Subject to Section 9.5,
at the end of any time period
during which the shares of restricted stock are subject to forfeiture and restrictions on
transfer, such shares will be delivered free of all restrictions to the participant or to the
participant’s legal representative, beneficiary or heir.

          8.6 Rights of Holders of Restricted Stock. Subject to the terms and conditions of
the Plan, each participant receiving restricted stock shall have all the rights of a
shareholder with respect to shares of stock during any period in which such shares are subject
to forfeiture and restrictions on transfer, including without limitation, the right to vote
such shares.

          9. General.

          9.1 Effective Date. The Plan will become effective upon the date of approval by
the Company’s Board of Directors (the “Effective Date”), subject to approval by the Company’s
shareholders.

          9.2 Duration. The Plan shall remain in effect until all Incentives granted under
the Plan have either been satisfied by the issuance of shares of Common Stock or the payment of
cash or been terminated under the terms of the Plan and all restrictions imposed on shares of
Common Stock in connection with their issuance under the Plan have lapsed. No Incentives may
be granted under the Plan after the tenth anniversary of the Effective Date of the Plan.

          9.3 Non-transferability of Incentives. No stock option, SAR, restricted stock or
stock award may be transferred, pledged or assigned by the holder thereof (except, in the event
of the holder’s death, by will or the laws of descent and distribution to the limited extent
provided in the Plan or the Incentive, or pursuant to a qualified domestic relations order as
defined by the Code or Title I of the Employee Retirement Income Security Act, or the rules
thereunder), and the Company shall not be required to recognize any attempted assignment of
such rights by any participant. Notwithstanding the preceding sentence, stock options may be
transferred by the holder thereof to the holder’s spouse, children, grandchildren or parents
(collectively, the “Family Members”), to trusts for the benefit of Family Members, to
partnerships or limited liability companies in which Family Members are the only partners or
shareholders, or to entities exempt from federal income taxation pursuant to Code Section
501(c)(3). During a participant’s lifetime, a stock option may be exercised only by him or
her, by his or her guardian or legal representative or by the transferees permitted by this
Section 9.3.

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          9.4 Effect of Termination or Death. If a participant ceases to be an employee of
or consultant to the Company for any reason, including death or disability, any Incentives may
be exercised or shall expire at such times as may be set forth in the agreement, if any,
applicable to the Incentive, or otherwise as determined by the Committee; provided, however,
the term of an Incentive may not be extended beyond the term originally prescribed when the Incentive was granted,
unless the Incentive satisfies (or is amended to satisfy) the requirements of Code Section
409A, including the rules and regulations thereunder (together, “Code Section 409A”); and
provided further that the term of an Incentive may not be extended beyond the maximum term
permitted under this Plan.

          9.5 Restrictions under Securities Laws. Notwithstanding anything in this Plan to
the contrary: (a) the Company may, if it shall determine it necessary or desirable for any
reason, at the time of award of any Incentive or the issuance of any shares of Common Stock
pursuant to any Incentive, require the recipient of the Incentive, as a condition to the
receipt thereof or to the receipt of shares of Common Stock issued pursuant thereto, to deliver
to the Company a written representation of present intention to acquire the Incentive or the
shares of Common Stock issued pursuant thereto for his or her own account for investment and
not for distribution; and (b) if at any time the Company further determines, in its sole
discretion, that the listing, registration or qualification (or any updating of any such
document) of any Incentive or the shares of Common Stock issuable pursuant thereto is necessary
on any securities exchange or under any federal or state securities or blue sky law, or that
the consent or approval of any governmental regulatory body is necessary or desirable as a
condition of, or in connection with the award of any Incentive, the issuance of shares of
Common Stock pursuant thereto, or the removal of any restrictions imposed on such shares, such
Incentive shall not be awarded or such shares of Common Stock shall not be issued or such
restrictions shall not be removed, as the case may be, in whole or in part, unless such
listing, registration, qualification, consent or approval shall have been effected or obtained
free of any conditions not acceptable to the Company.

          9.6 Adjustment. In the event of any recapitalization, stock dividend, stock
split, combination of shares or other change in the Common Stock, the number of shares of
Common Stock then subject to the Plan, including shares subject to outstanding Incentives, and
the other numbers of shares of Common Stock provided in the Plan, shall be adjusted in
proportion to the change in outstanding shares of Common Stock. In the event of any such
adjustments, the purchase price of any option, the performance objectives of any Incentive, and
the shares of Common Stock issuable pursuant to any Incentive shall be adjusted as and to the
extent appropriate, in the discretion of the Committee, to provide participants with the same
relative rights before and after such adjustment.

               9.7 Incentive Plans and Agreements. Except in the case of stock awards, the terms of
each Incentive shall be stated in a plan or agreement approved by the Committee. The Committee may
also determine to enter into agreements with holders of options to reclassify or convert certain
outstanding options, within the terms of the Plan, as Incentive Stock Options or as non-statutory
stock options and in order to eliminate SARs with respect to all or part of such options and any
other previously issued options. The Committee shall communicate the key terms of each award to the
participant promptly after the Committee approves the grant of such award.

               9.8 Withholding.

               (a) The Company shall have the right to withhold from any payments made under the Plan
or to collect as a condition of payment, any taxes required by law to be withheld. At any
time when a participant is required to pay to the Company an amount required to be withheld
under applicable income tax laws in connection with a distribution of Common Stock or upon
exercise of an option or SAR or upon vesting of restricted stock, the participant may
satisfy this obligation in whole or in part by electing (the “Election”) to have the
Company withhold, from the distribution or from such shares of restricted stock, shares of
Common Stock having a value up to the minimum amount of withholding taxes required to be
collected on the transaction. The value of the shares to be withheld shall be based on the
Fair Market Value of

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the Common Stock on the date that the amount of tax to be withheld
shall be determined (“Tax Date”).

               (b) Each Election must be made before the Tax Date. The Committee may disapprove of
any Election, may suspend or terminate the right to make Elections, or may provide with
respect to any Incentive that the right to make Elections shall not apply to such
Incentive. An Election is irrevocable.

          9.9 No Continued Employment, Engagement or Right to Corporate Assets. No
participant under the Plan shall have any right, because of his or her participation, to
continue in the employ of the Company for any period of time or to any right to continue his or
her present or any other rate of compensation. Nothing contained in the Plan shall be construed as giving an
employee, a consultant, such persons’ beneficiaries or any other person any equity or interests
of any kind in the assets of the Company or creating a trust of any kind or a fiduciary
relationship of any kind between the Company and any such person.

          9.10 Payments Under Incentives.
Payment of cash or distribution of any shares of
Common Stock to which a participant is entitled under any Incentive shall be made as provided
in the Incentive. Except as permitted under Section 9.17, payments and distributions may not be
deferred under any Incentive unless the deferral complies with the requirements of Code Section
409A.

          9.11 Amendment of the Plan.
The Board of Directors may amend or discontinue the
Plan at any time. However, no such amendment or discontinuance shall adversely change or
impair, without the consent of the recipient, an Incentive previously granted. Further, no such
amendment shall, without approval of the shareholders of the Company, (a) increase the maximum
number of shares of Common Stock which may be issued to all participants under the Plan, (b)
change or expand the types of Incentives that may be granted under the Plan, (c) change the
class of persons eligible to receive Incentives under the Plan, or (d) materially increase the
benefits accruing to participants under the Plan.

          9.12 Amendment of Agreements for Incentives.
Except as otherwise provided in this
Section 9.12, the terms of an existing Incentive may be amended by agreement between the
Committee and the participant. Notwithstanding the foregoing sentence, in the case of a stock
option or SAR, no such amendment shall (a) without shareholder approval, lower the exercise
price of a previously granted stock option or SAR, or (b) extend the term of the Incentive,
except as provided in Sections 9.4 and 9.17.

          9.13
Vesting Upon Change In Control. Upon the occurrence of an event satisfying
the definition of “Change in Control” with respect to a particular Incentive, unless otherwise
provided in the agreement for the Incentive, such Incentive shall become vested and all
restrictions shall lapse. The Committee may, in its discretion, include such further provisions
and limitations in any agreement for an Incentive as it may deem desirable. For purposes of
this Section 9.13, “Change in Control” means the occurrence of any one or more of the
following:

               (a) the acquisition by any individual, entity or group of beneficial ownership (within
the meaning of Rule 13d-3 under the Exchange Act) of more than thirty percent (30%) of the
outstanding voting power of the Company entitled to vote in the election of directors;
provided that a Change in Control shall not be deemed to occur solely because more than
thirty percent (30%) of the outstanding voting shares is acquired by a trustee or other
fiduciary holding securities under one or more employee benefit plans maintained by the
Company or any of its subsidiaries;

               (b) a merger, consolidation or other reorganization involving the Company if the
shareholders of the Company and their affiliates, immediately before such merger,
consolidation or other reorganization, do not, as a result of such merger, consolidation,
or other

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reorganization, own directly or indirectly, more than fifty percent (50%) of the
voting equity securities of the successor entity;

               (c) a majority of the members of the Board of Directors is replaced within a period
of less than two years by directors not nominated and approved by the Board of Directors;
or

               (d) the sale or other disposition of all or substantially all of the assets of the
Company and its subsidiaries determined on a consolidated basis, or a complete liquidation
or dissolution of the Company.

          9.14 Sale, Merger, Exchange or Liquidation. Unless otherwise provided in the
agreement for an Incentive, in the event of an acquisition of the Company through the sale of
substantially all of the Company’s assets or through a merger, exchange, reorganization or
liquidation of the Company or a similar event as determined by the Committee (collectively a
“transaction”), the Committee shall be authorized, in its sole discretion, to take any and all
action it deems equitable under the circumstances, including but not limited to any one or more
of the following:

               (a) providing that the Plan and all Incentives shall terminate and the holders of (i)
all outstanding vested options shall receive, in lieu of any shares of Common Stock they
would be entitled to receive under such options, such stock, securities or assets,
including cash, as would have been paid to such participants if their options had been
exercised and such participant had received Common Stock immediately before such
transaction (with appropriate adjustment for the exercise price, if any), (ii) SARs that
entitle the participant to receive Common Stock shall receive, in lieu of any shares of
Common Stock each participant was entitled to receive as of the date of the transaction
pursuant to the terms of such Incentive, if any, such stock, securities or assets,
including cash, as would have been paid to such participant if such Common Stock had been
issued to and held by the participant immediately before such transaction, and (iii) any
Incentive under this Agreement which does not entitle the participant to receive Common
Stock shall be equitably treated as determined by the Committee.

               (b) providing that participants holding outstanding vested Common Stock based
Incentives shall receive, with respect to each share of Common Stock issuable pursuant to
such Incentives as of the effective date of any such transaction, at the determination of
the Committee, cash, securities or other property, or any combination thereof, in an amount
equal to the excess, if any, of the Fair Market Value of such Common Stock on a date within
ten days before the effective date of such transaction over the option price or other
amount owed by a participant, if any, and that such Incentives shall be cancelled,
including the cancellation without consideration of all options that have an exercise price
below the per share value of the consideration received by the Company in the transaction.

               (c) providing that the Plan (or replacement plan) shall continue with respect to
Incentives not cancelled or terminated as of the effective date of such transaction and
provide to participants holding such Incentives the right to earn their respective
Incentives on a substantially equivalent basis (taking into account the transaction and the
number of shares or other equity issued by such successor entity) with respect to the
equity of the entity succeeding the Company by reason of such transaction.

               (d) to the extent that the vesting of any Incentives is not accelerated pursuant to
Section 9.13, providing that all unvested, unearned or restricted Incentives, including but
not limited to restricted stock for which restrictions have not lapsed as of the effective
date of such transaction, shall be void and deemed terminated, or, in the alternative, for
the acceleration or waiver of any vesting, earning or restrictions on any Incentive.

      The Board of Directors may restrict the rights of participants or the applicability of
this Section 9.14 to the extent necessary to comply with Section 16(b) of the 1934 Act, the
Code or any other

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applicable law or regulation. The grant of an Incentive award pursuant to the
Plan shall not limit in any way the right or power of the Company to make adjustments,
reclassifications, reorganizations or changes of its capital or business structure or to merge,
exchange or consolidate or to dissolve, liquidate, sell or transfer all or any part of its
business or assets.

            9.15 Definition of Fair Market Value. For purposes of this Plan, the “Fair Market
Value” of a share of Common Stock at a specified date shall, unless otherwise expressly
provided in this Plan, be the amount which the Committee determines in good faith to be 100% of
the fair market value of such a share as of the date in question. Notwithstanding the
foregoing:

               (a) If such shares are listed on a U.S. securities exchange, then Fair Market Value
shall be determined by reference to the last sale price of a share of Common Stock on such
U.S. securities exchange on the applicable date. If such U.S. securities exchange is
closed for trading on such date, or if the Common Stock does not trade on such date, then the
last sale price used shall be the one on the date the Common Stock last traded on such U.S.
securities exchange.

               (b) If such shares are publicly traded but are not listed on a U.S. securities
exchange, then Fair Market Value shall be determined by reference to the trading price of a
share of Common Stock on such date (or, if the applicable market is closed on such date,
the last date on which the Common Stock was publicly traded), by a method consistently
applied by the Committee.

               (c) If such shares are not publicly traded, then the Committee’s determination will be
based upon a good faith valuation of the Company’s Common Stock as of such date, which
shall be based upon such factors as the Committee deems appropriate. The valuation shall
be accomplished in a manner that complies with Code Section 409A and shall be consistently
applied to Incentives under the Plan.

          9.16 Definition of Grant Date. For purposes of this Plan, the “Grant Date” of an
Incentive shall be the date on which the Committee approved the award or, if later, the date
established by the Committee as the date of grant of the Incentive.

          9.17 Compliance with Code Section 409A. The Plan and the agreement for each
Incentive shall be interpreted and administered so as to be exempt from the requirements of
Code Section 409A or to comply with such requirements. Notwithstanding the foregoing,
Incentives may be awarded or amended in a manner that does not comply with Code Section 409A,
but only if and to the extent that the Committee specifically provides in written resolutions
that the Incentive or amendment is not intended to comply with Code Section 409A.

          9.18 Prior Plan. Notwithstanding the adoption of this Plan by the Board of
Directors and its approval by the shareholders, the Company’s 2000 Stock Option and
Compensation Plan, as it has been amended from time to time (the “Prior Plan”), shall remain
in effect, and all grants and awards made under the Prior Plan shall be governed by the terms
of the Prior Plan. From and after the date of shareholder approval of this Plan, no further
grants and awards shall be made under the Prior Plan.

9exv10w1

Exhibit 10.1

IXIA

2010 EMPLOYEE STOCK PURCHASE PLAN

          The following constitutes the provisions of the 2010 Employee Stock Purchase Plan (the “Plan”)
of Ixia (the “Company”).

          1.          Purpose. The purpose of the Plan is to provide employees of the Company and its
subsidiaries with an opportunity to purchase Common Stock of the Company through payroll
deductions. It is the intention of the Company that the Plan qualify as an “Employee Stock
Purchase Plan” under Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”).
The provisions of the Plan shall, accordingly, be construed so as to extend and limit participation
in a manner consistent with the requirements of that section of the Code, as amended from time to
time.

          2.          Certain Definitions.

                       (a)          “Board” shall mean the Board of Directors of the Company or any committee thereof
designated by the Board of Directors of the Company in accordance with Section 13 of the Plan.

                       (b)          “Code” shall mean the Internal Revenue Code of 1986, as amended, and any applicable
regulations promulgated thereunder.

                       (c)          “Common Stock” shall mean the common stock of the Company.

                       (d)          “Compensation,” unless otherwise determined by the Board of Directors of the Company,
means total cash compensation from employment reportable on Form W-2 including, without limitation,
regular straight-time gross earnings, overtime pay, shift premium, incentive compensation, bonuses,
commissions and automobile allowances, plus any amounts contributed by the Employee to the
Company’s 401(k) Plan or 125 Plan from compensation paid to the Employee by the Company, but
expressly excluding relocation benefits, expense reimbursements, gains realized in connection with
the exercise of stock options or participation in a stock option or purchase program and
contributions by the Company to qualified deferred compensation plans.

                       (e)          “Employee” means any person, including an officer, who is customarily employed by the
Company or a Subsidiary designated by the Board on Attachment A, as Attachment A may from time to
time be amended by the Board, (i) for more than 20 hours per week and (ii) for more than five
months in any calendar year. For purposes of the Plan, the employment relationship shall be
treated as continuing intact while the individual is on sick leave or other leave of absence
approved by the Company. Where the period of leave exceeds 90 days and the individual’s right to
reemployment is not guaranteed either by statute or by contract, the employment relationship shall
be deemed to have terminated on the 91st day of such leave. “Employee” shall not include any
person who is a citizen or resident of a foreign jurisdiction if

 

 

granting them an option under the Plan would violate the law of such jurisdiction, or if
compliance with the laws of the jurisdiction would cause the Plan to violate Code Section 423.

                       (f)          “Enrollment Date” means the first Trading Day of each Offering Period.

                       (g)          “Enrollment Period” means the period designated by the Board ending no fewer than three
days prior to the Offering Period or Purchase Period, as applicable.

                       (h)          “Exercise Date” means the last Trading Day of each Purchase Period.

                       (i)          “Fair Market Value” means, as of any date, the fair market
value of one share of Common Stock, determined as follows:

                              (i)          If the Common Stock is listed on a national or regional securities exchange or
market system, including without limitation the Nasdaq Global Select Market or The Nasdaq
SmallCap Market of The Nasdaq Stock Market LLC, its fair market value shall be the closing
sales price for such stock (or the mean of the closing bid and asked prices, if no sales
were reported) as reported on such date (or, if such day is not a Trading Day, on the last
Trading Day prior to such date) 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, its fair market value shall be the mean of the closing bid
and asked prices for the Common Stock on such date (or, if such day is not a Trading Day, on
the last Trading Day prior to such date), as reported in The Wall Street Journal or
such other source as the Board deems reliable; or

                              (iii)       In the absence of an established market for the Common Stock, the fair market
value thereof shall be determined in good faith by the Board.

                       (j)          “Offering Periods” shall mean the periods of approximately 24 months during which an
option granted pursuant to the Plan may be exercised, commencing on the first Trading Day on or
after May 1 and November 1 of each year and terminating on the last Trading Day in the periods
ending 24 months later. The first Offering Period under the Plan shall commence on November 1,
2010. The duration and timing of Offering Periods may be changed pursuant to Section 4 of this
Plan.

                       (k)          “Payroll Deduction Authorization Change or Withdrawal Form” shall mean the form attached
hereto as Attachment B, as may be revised from time to time.

                       (l)          “Participant” shall mean an Employee who has filed a Subscription Agreement under the
terms of the Plan.

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                       (m)          “Purchase Period” shall mean the approximately six-month period commencing after one
Exercise Date and ending with the next Exercise Date, except that the first Purchase Period of any
Offering Period shall commence on the Enrollment Date and end with the next Exercise Date and
provided that the duration of a Purchase Period may be changed by the Board with respect to future
Offering Periods without shareholder approval if such change is announced at least five days prior
to the scheduled beginning of the first Offering Period to be affected thereafter

                       (n)          “Purchase Price” shall mean 85% of the Fair Market Value of a share of Common Stock on the
Enrollment Date or on the Exercise Date, whichever is lower; provided, however,
that the Purchase Price may be adjusted by the Board pursuant to Section 19.

                       (o)          “Subscription Agreement” shall mean the form authorizing payroll deductions and attached
hereto as Attachment C, as may be revised from time to time.

                       (p)          “Subsidiary” means any corporation described in Section 424 of the Code in which the
Company owns, directly or indirectly, 50% or more of the voting shares.

                       (q)          “Trading Day” shall mean a day on which national stock exchanges and The Nasdaq Stock
Market are open for trading.

          3.          Eligibility.

                       (a)          General Rule. Any Employee, as defined in Section 2, who shall have completed at
least 30 days of continuous employment with the Company or its Subsidiaries shall be eligible to
participate in the Plan, subject to the limitations imposed by Section 423(b) of the Code.

                       (b)          Exceptions. Any provisions of the Plan to the contrary notwithstanding, no
Employee shall be granted an option under the Plan if:

                              (i)          immediately after the grant, such Employee (or any other person whose stock
ownership would be attributed to such Employee pursuant to Section 424(d) of the Code) would
own shares and/or hold outstanding options to purchase shares possessing five percent or
more of the total combined voting power or value of all classes of shares of the Company or
of any Subsidiary; or

                              (ii)          such option would permit the Employee’s rights to purchase shares under all
employee stock purchase plans of the Company and its Subsidiaries to accrue (i.e., become
exercisable) at a rate which exceeds $25,000 of fair market value of such shares (determined
at the time such option is granted) for any calendar year in which such option is
outstanding at any time.

        4.          Offering Periods. The Plan shall be implemented by consecutive, overlapping
Offering Periods with a new Offering Period commencing on the first Trading Day on or after May 1
and November 1 of each year, or on such other date as the Board shall determine, and

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continuing thereafter until terminated in accordance with Section 20 hereof. The first
Offering Period under the Plan shall commence on November 1, 2010. The Board shall have the power
to change the duration of Offering Periods (including the commencement dates thereof) with respect
to future offerings without shareholder approval if such change is announced at least five days
prior to the scheduled beginning of the first Offering Period to be affected thereafter.
Participation in one offering under the Plan shall neither limit nor require participation in any
other offering.

          5.          Participation.

                       (a)          An eligible Employee may become a Participant in the Plan by completing and submitting
during the applicable Enrollment Period a signed Subscription Agreement. An Employee who becomes
eligible to participate in the Plan after the commencement of an Offering Period may not become a
Participant in the Plan until the commencement of the next Offering Period.

                       (b)          An Employee’s authorization and participation in the Plan shall become effective on the
first Enrollment Date following the timely filing of his or her Subscription Agreement and shall
remain effective until revoked by the Participant by completing and submitting a signed Payroll
Deduction Authorization Change or Withdrawal Form to either withdraw from the Plan as described in
Section 10(a) hereof or change his or her payroll deduction rate as described in Section 6(e)
hereof.

                       (c)          A Participant may not submit a Subscription Agreement for enrollment in a new Offering
Period until the termination of his or her participation in an existing Offering Period has become
effective. The foregoing limitation shall not affect a Participant’s automatic reenrollment
(without the submission of a new Subscription Agreement) in a new Offering Period following the
expiration of an existing Offering Period.

                       (d)          Participants in an Offering Period (an “Original Offering Period”) will not prior
to the expiration of the Original Offering Period be automatically withdrawn from the Original
Offering Period and automatically re-enrolled in the immediately following Offering Period (a
“Lower Price Offering Period”) if the Fair Market Value of the Common Stock on an Exercise Date in
the Original Offering Period is lower than the Fair Market Value of the Common Stock on the
Enrollment Date of the Original Offering Period. A Participant may enroll in such an anticipated
Lower Price Offering Period only by, on or before the specified administrative deadline prior to
the commencement of the anticipated Lower Price Offering Period: (i) terminating his or her
participation in the Original Offering Period by completing and submitting a signed Payroll
Deduction Authorization Change or Withdrawal Form and without purchasing shares at the end
of the Purchase Period then in effect and (ii) timely completing and submitting for the anticipated
Lower Price Offering Period a new Subscription Agreement.

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          6.          Payroll Deductions.

                       (a)          Payroll deductions for a Participant shall commence on the first payroll following the
Enrollment Date and shall end on the last payroll in the Offering Period as to which such
authorization is applicable, unless sooner terminated by the Participant as provided in Section 10
hereof.

                       (b)          At the time a Participant files his or her Subscription Agreement with the Company, he or
she shall elect to have payroll deductions made on each payday during the next Offering Period at a
percentage rate equal to a positive whole number not exceeding 15%, or such other maximum rate as
may be determined from time to time by the Board subject to the provisions of Section 19 hereof, of
the Compensation which would otherwise be payable to such Participant on each such payday.

                       (c)          Payroll deductions for a Participant shall commence on the first payday following the date
on which a Participant’s payroll deduction authorization becomes effective and shall automatically
continue from Offering Period to Offering Period until changed or terminated by the Participant in
accordance with the terms hereof.

                       (d)          All payroll deductions authorized by a Participant pursuant to a Subscription Agreement,
as modified pursuant to Section 5, shall be credited to the Participant’s individual account under
the Plan. A Participant may not make any additional payments into such account.

                       (e)          A Participant may change the rate of his or her payroll deduction during an Offering
Period only as follows:

          
             
    
       (i)          
A Participant may decrease the rate of payroll deductions for a future Purchase Period
within an existing Offering Period or for a future Offering Period only by completing and
submitting, by the specified administrative deadline prior to the commencement of such future
Purchase Period or Offering Period, a signed Payroll Deduction Authorization Change or Withdrawal
Form.

                                     (ii)          
A Participant may increase the rate of payroll deductions for a future Offering Period
only by completing and submitting, by the specified administrative deadline prior to the
commencement of such Offering Period, a signed Payroll Deduction Authorization Change or Withdrawal
Form. An election to increase the rate of payroll deductions may be made for new Offering Periods
that will begin for any reason, including new Offering Periods that will begin as a result of
(i) enrollment in a new Offering Period following the end of the final Purchase Period in an
existing Offering Period or (ii) an employee’s voluntary election to withdraw from a current
Offering Period and to enroll in a new Offering Period.

                                     (iii)      
 A Participant may not increase the rate of payroll deductions for a future Purchase
Period within an existing Offering Period. In order for such a Participant to increase the rate of
payroll deductions prior to a future Offering Period that follows the

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expiration of his or her existing Offering Period, the Participant must terminate his or her
participation in the existing Offering Period and then enroll in a new Offering Period, subject to
the limitations set forth in Section 5 above. In no event may a Participant increase the rate of
payroll deductions for a future Purchase Period by completing a Purchase Period within an existing
Offering Period that is not otherwise expiring and then immediately participating in a new Offering
Period.

          7.          Grant of Option. On the Enrollment Date of each Offering Period, each Participant
in such Offering Period shall automatically be granted an option to purchase on each Exercise Date
during such Offering Period (at the applicable Purchase Price) up to a number of shares of the
Company’s Common Stock determined by dividing such Employee’s payroll deductions accumulated prior
to such Exercise Date and retained in the Participant’s account as of the Exercise Date by the
applicable Purchase Price; provided, however, that in no event shall an Employee be
permitted to purchase during each Purchase Period more than a number of shares determined by
dividing $12,500 by the Fair Market Value of a share of the Company’s Common Stock (subject to any
adjustment pursuant to Section 19) on the Enrollment Date; and provided further
that such grant of options and purchase shall be subject to the limitations set forth in
Sections 3(b) and 12 hereof. The preceding limitation (multiplied by four) shall also apply with
respect to each Offering Period. The Board may, for future Offering Periods, increase or decrease,
in its absolute discretion, the maximum number of shares of the Company’s Common Stock an Employee
may purchase during each Purchase Period of an Offering Period. Exercise of the option shall occur
as provided in Section 8 hereof, unless the Participant has withdrawn pursuant to Section 10
hereof. The option shall expire on the last day of the Offering Period.

          8.          Exercise of Option.

                       (a)          Unless a Participant withdraws from the Plan as provided in Section 10, his or her option
for the purchase of shares shall be exercised automatically on each Exercise Date of the Offering
Period, and the accumulated payroll deductions credited to a Participant’s account on the Exercise
Date will be applied to purchase whole shares of the Company’s Common Stock (up to the maximum
number subject to option as determined in Section 7(a) hereof) at the Purchase Price. Any amount
credited to a Participant’s account and not applied to the purchase of Common Stock by reason of
the limitation on the number of shares subject to option shall be refunded promptly to such
Participant after the Exercise Date, provided that any amount remaining in a Participant’s account
and representing a fractional share shall be carried over and applied to the purchase of shares in
the subsequent Purchase Period or Offering Period if the Participant participates in the subsequent
offering. During his or her lifetime, a Participant’s option to purchase shares hereunder is
exercisable only by the Participant.

                       (b)          If the Board determines that, on a given Exercise Date, the number of shares with respect
to which options are to be exercised may exceed (i) the number of shares of Common Stock that were
available for sale under the Plan on the Enrollment Date of the applicable Offering Period, or
(ii) the number of shares available for sale under the Plan on such

-6-

 

Exercise Date, the Board may in its sole discretion (x) provide that the Company shall make a
pro rata allocation of the shares of Common Stock available for purchase on such Enrollment Date or
Exercise Date, as applicable, in as uniform a manner as shall be practicable and as it shall
determine in its sole discretion to be equitable among all Participants exercising options to
purchase Common Stock on such Exercise Date, and continue all Offering Periods then in effect, or
(y) provide that the Company shall make a pro rata allocation of the shares available for purchase
on such Enrollment Date or Exercise Date, as applicable, in as uniform a manner as shall be
practicable and as it shall determine in its sole discretion to be equitable among all Participants
exercising options to purchase Common Stock on such Exercise Date, and terminate any or all
Offering Periods then in effect pursuant to Section 19 hereof. The Company may make a pro rata
allocation of the shares available on the Enrollment Date of any applicable Offering Period
pursuant to the preceding sentence, notwithstanding any authorization of additional shares for
issuance under the Plan by the Company’s shareholders subsequent to such Enrollment Date. In the
event of any pro rata allocation of shares, the Company shall give written notice of such
allocation to each Participant affected thereby and shall reduce the rate of payroll deductions, if
necessary.

          9.          Delivery. As promptly as practicable after each Exercise Date on which a purchase
of shares occurs, the Company shall arrange for the issuance and delivery to, or credit to the
account of, each Participant, as appropriate, of the shares purchased upon exercise of his or her
option. At the election of the Company, the issuance and delivery of the shares purchased upon
exercise of a Participant’s option may be effected by transfer (electronic or otherwise in the
discretion of the Company) of such shares to a securities account maintained in the Participant’s
name.

          10.         Withdrawal; Termination of Employment.

                       (a)          A Participant may terminate his or her participation in the Plan and withdraw from an
Offering by completing and submitting, by the specified administrative deadline prior to the end of
a Purchase Period, a signed Payroll Deduction Authorization Change or Withdrawal Form. Any such
termination and withdrawal may be made effective (i) immediately, in which case all withheld
amounts will be refunded to the Participant, or (ii) as of the first day of the next Purchase
Period, in which case withheld amounts will be applied to the purchase of shares at the end of the
Purchase Period in which the election is made and any excess funds not so applied will be refunded
to the Participant following the purchase. If a Participant terminates his or her participation in
the Plan pursuant to this Section 10(a), payroll deductions shall not resume at the beginning of a
succeeding Offering Period unless the Participant delivers a new Subscription Agreement in
accordance with Section 5 hereof.

                       (b)          Upon termination of a Participant’s employment for any reason, including retirement or
death, as soon as practicable after such termination, the payroll deductions credited to his or her
account shall be returned to him or her or, in the case of his or her death, to the person or
persons entitled thereto under Section 14, and his or her option shall be automatically canceled.

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                       (c)          In the event an Employee fails to remain in the continuous employ of the Company or its
Subsidiaries for more than 20 hours per week during the Offering Period in which the Employee is a
Participant, he or she will be deemed to have elected to withdraw from the Plan and the payroll
deductions credited to his or her account will be returned to him or her and his or her option will
be canceled.

                       (d)          A Participant’s withdrawal from an offering shall not have any effect upon his or her
eligibility to participate in a subsequent offering or in any similar plan which may hereafter be
adopted by the Company.

          11.        Interest. No interest shall accrue on the payroll deductions of a Participant in
the Plan.

          12.        Stock.

                       (a)          The maximum number of shares of the Company’s Common Stock which shall be made available
for sale under the Plan shall be 500,000 shares, subject to adjustment upon changes in
capitalization of the Company as provided in Section 18(a) hereof, together with a cumulative
annual increase to the number of shares reserved for issuance thereunder on May 1, 2010 and each
May 1 thereafter equal to the lesser of (i) 500,000 shares, (ii) 1% of the outstanding shares of
the Company on the last day of the prior fiscal year or (iii) such amount as may be determined by
the Board. The shares to be sold to Participants in the Plan will be authorized but unissued
shares. Upon the cancellation of any option granted under the Plan, the shares subject thereto
shall return to the Plan and become available for options thereafter granted under the Plan.

                       (b)          A Participant will have no interest or voting right in shares covered by his or her option
until such option has been exercised.

                       (c)          Shares to be delivered to a Participant under the Plan shall, as specified in the
Participant’s Subscription Agreement, be registered in the name of the Participant or in the name
of the Participant and his or her spouse.

          13.        Administration. The Plan shall be administered by the Board or a committee of
members of the Board appointed by the Board. The Board or its committee shall have full and
exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to
determine eligibility and to adjudicate all disputed claims filed under the Plan. Every finding,
decision and determination made by the Board or its committee shall, to the fullest extent
permitted by law, be final and binding upon all parties.

          14.        Designation of Beneficiary.

                       (a)          A Participant may file a written designation of a beneficiary who is to receive any shares
and cash, if any, from the Participant’s account under the Plan in the event of such Participant’s
death subsequent to the Exercise Date on which an option is exercised but prior to delivery to him
or her of such shares and cash. In addition, a Participant may file a

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written designation of a beneficiary who is to receive any cash from the Participant’s account
under the Plan in the event of such Participant’s death prior to exercise of the option. If a
Participant is married and the designated beneficiary is not the spouse, spousal consent shall be
required for such designation to be effective.

                       (b)          Such designation of beneficiary may be changed by the Participant at any time by written
notice. In the event of the death of a Participant and in the absence of a valid designation of a
beneficiary who is living at the time of such Participant’s death, the Company shall deliver such
shares and/or cash to the executor or administrator of the estate of the Participant; or if no such
executor or administrator has been appointed (to the knowledge of the Company), the Company, in its
discretion, may deliver such shares and/or cash to the spouse or to any one or more dependents or
relatives of the Participant; or if no spouse, dependent or relative is known to the Company, then
to such other person as the Company may designate.

          15.        Transferability. Neither payroll deductions credited to a Participant’s account
nor any rights with regard to the exercise of an option or to receive shares under the Plan may be
assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of
descent and distribution, pursuant to a qualified domestic relations order as defined by the Code
or Title I of the Employee Retirement Income Security Act, or the rules thereunder, or as provided
in Section 14 hereof) by the Participant. Any such attempt at assignment, transfer, pledge or
other disposition shall be without effect, except that the Company may treat such act as an
election to withdraw funds from an Offering Period in accordance with Section 10 hereof.

          16.        Use of Funds. All payroll deductions received or held by the Company on behalf of
a Participant under the Plan may be used by the Company for any corporate purpose, and the Company
shall not be obligated to segregate such payroll deductions.

          17.        Reports. Individual accounts will be maintained for each Participant in the Plan.
Individual statements of account will be given to participating Employees at least annually, which
statements shall set forth the amounts of payroll deductions, the Purchase Price, the number of
shares purchased and the remaining cash balance, if any, in a Participant’s account.

          18.        Adjustments upon Changes in Capitalization or Control.

                       (a)          Changes in Capitalization. Subject to any required action by the shareholders of
the Company, the number of shares of Common Stock covered by each option under the Plan which has
not yet been exercised and the number of shares of Common Stock which has been authorized for
issuance under the Plan but has not yet been placed under option or which has been returned to the
Plan upon the cancellation of an option, as well as the option price per share of Common Stock
covered by each option under the Plan which has not yet been exercised, 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, stock dividend, combination of the Common Stock, or any other
increase or decrease in the number of shares of Common Stock effected without receipt of
consideration by the Company; provided, however, that conversion of any convertible
securities of the Company shall not be deemed to have been

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“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 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 of Common Stock subject to option.

                       (b)          Dissolution or Liquidation. In the event of the proposed dissolution or
liquidation of the Company, the Offering Period then in progress shall be shortened by setting a
new Exercise Date (the “New Exercise Date”), and shall terminate immediately prior to the
consummation of such proposed dissolution or liquidation, unless provided otherwise by the Board.
The New Exercise Date shall be before the date of the Company’s proposed dissolution or
liquidation. The Board shall notify each Participant in writing, at least ten business days prior
to the New Exercise Date, that the Exercise Date for the Participant’s option has been changed to
the New Exercise Date and that the Participant’s option shall be exercised automatically on the New
Exercise Date, unless prior to such date the Participant has withdrawn from the Offering Period as
provided in Section 10 hereof.

                       (c)          Merger or Asset Sale. In the event of a proposed sale of all or substantially all
of the assets of the Company, or the merger of the Company with or into another corporation, each
outstanding option shall be assumed or an equivalent option substituted by the successor
corporation or a parent or subsidiary of the successor corporation. In the event that the
successor corporation refuses to assume or substitute for the option, any Purchase Periods then in
progress shall be shortened by setting a new Exercise Date (the “New Exercise Date”) and any
Offering Periods then in progress shall end on the New Exercise Date. The New Exercise Date shall
be before the date of the Company’s proposed sale or merger. The Board shall notify each
Participant in writing, at least ten business days prior to the New Exercise Date, that the
Exercise Date for the Participant’s option has been changed to the New Exercise Date and that the
Participant’s option shall be exercised automatically on the New Exercise Date, unless prior to
such date the Participant has withdrawn from the Offering Period as provided in Section 10 hereof.

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

          19.        Amendment or Termination. The Board of Directors of the Company may at any time
and for any reason terminate or amend the Plan. Except as provided in Section 18 hereof, no such
termination can affect options previously granted, provided that an Offering Period may be
terminated by the Board of Directors on any Exercise Date if the Board determines that the
termination of the Offering Period or the Plan is in the best interests of the Company and its
shareholders. Except as provided in Section 18 and this Section 19, no amendment may make

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any change in any option theretofore granted which adversely affects the rights of any
Participant without the prior written consent of such Participant:

                       (a)          To the extent necessary to comply with Section 423 of the Code (or any successor rule or
provision or any other applicable law, regulation or stock exchange rule), the Company shall obtain
shareholder approval of any amendment to the Plan in such a manner and to such a degree as is
required.

                       (b)          Without shareholder approval and without regard to whether any Participant rights may be
considered to have been “adversely affected,” the Board (or its committee) shall be entitled to
change the Offering Periods, limit the frequency and/or number of changes in the amount withheld
during an Offering Period, establish the exchange ratio applicable to amounts withheld in a
currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by
a Participant in order to adjust for delays or mistakes in the Company’s processing of properly
completed withholding elections, establish reasonable waiting and adjustment periods and/or
accounting and crediting procedures to ensure that amounts applied toward the purchase of Common
Stock for each Participant properly correspond with amounts withheld from the Participant’s
Compensation, and establish such other limitations or procedures as the Board (or its committee)
determines in its sole discretion advisable which are consistent with the Plan.

                       (c)          In the event the Board determines that the ongoing operation of the Plan may result in
unfavorable financial accounting consequences, the Board may, in its discretion and to the extent
necessary or desirable, modify or amend the Plan to reduce or eliminate such accounting consequence
including, but not limited to:

                              (i)          altering the Purchase Price for any Offering Period including an Offering Period
underway at the time of the change in Purchase Price;

                              (ii)          shortening any Offering Period so that Offering Period ends on a new Exercise
Date, including an Offering Period underway at the time of the Board action; and

                              (iii)        allocating shares.

                       Such modifications or amendments shall not require shareholder approval or the consent of any
Plan Participants.

          20.        Term of Plan. The Plan shall become effective upon the earlier to occur of its
adoption by the Board or its approval by vote of a majority of the outstanding shares of the
Company entitled to vote on the adoption of the Plan. The Plan shall continue in effect for a term
of ten years unless sooner terminated under Sections 19 or 22 hereof.

          21.        Notices. All notices or other communications (i) by a Participant to the Company
in connection with the Plan shall be deemed to have been duly given when received in the form
specified by the Company at the location, or by the person, designated by the Company for the

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receipt thereof and (ii) by the Company to a Participant in connection with the Plan shall be
deemed to have been duly given when received by the Participant or, if earlier, five days after
deposit in the United States mail by certified or registered mail, return receipt requested, first
class postage prepaid, addressed to the Participant at his or her address as shown on the records
of the Company or as such Participant may request by written notice to the Company hereunder.

          22.        Shareholder Approval. Notwithstanding anything to the contrary herein, the
effectiveness of the Plan shall be expressly subject to approval by the Company’s shareholders
prior to November 1, 2010 by the affirmative vote of the holders of a majority of the outstanding
shares of stock of the Company present or represented and entitled to vote thereon at a shareholder
meeting duly held or by written consent in accordance with applicable law.

          23.        No Enlargement of Employee Rights. The Plan is purely voluntary on the part of
the Company, and the continuance of the Plan shall not be deemed to constitute a contract between
the Company and any Employee, or to be consideration for or a condition of the employment of any
Employee. Nothing contained in this Plan shall be deemed to give any Employee the right to be
retained in the employ of the Company, its parent, Subsidiary or a successor corporation, or to
interfere with the right of the Company or any such corporations to discharge or retire any
Employee thereof at any time. No Employee shall have any right to or interest in options
authorized hereunder prior to the grant of an option to such Employee, and upon such grant he or
she shall have only such rights and interests as are expressly provided herein, subject, however,
to all applicable provisions of the Company’s Articles of Incorporation, as the same may be amended
from time to time.

          24.        Information to Participants. The Company shall provide without charge to each
Participant in the Plan copies of such annual and periodic reports as are provided by the Company
to its shareholders generally.

          25.        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 conflicts of laws rules thereof.

          26.        Tax Withholding. If at any time the Company or any Subsidiary is required, under
applicable laws and regulations, to withhold, or to make any deduction of, any taxes or take any
other action in connection with any exercise of an option granted hereunder or any disposition of
shares of Common Stock issued hereunder, the Participant must make adequate provision for the
Company’s federal, state or other tax withholding obligations which arise from such exercise or
disposition. The Company or such Subsidiary shall have the right to deduct or withhold from the
Participant’s compensation the amount necessary for the Company to meet applicable withholding
obligations.

          27.        Securities Law Compliance. No shares of Common Stock may be issued upon the
exercise of any option under the Plan until all requirements of applicable Federal, state, foreign
or other securities laws with respect to the purchase, sale and issuance of shares of Common Stock
shall have been satisfied. If any action must be taken because of such requirements, then

-12-

 

the purchase, sale and issuance of shares shall be postponed until such action can reasonably be
taken. Upon request by the Company, an Employee shall deliver to the Company such information,
representations or undertakings as the Company may reasonably request in order to comply with any
registration requirements or exemptions therefrom of applicable securities laws. The Company may
require any securities so issued to bear a legend, may give its transfer agent instructions, and
may take such other steps as in its judgment are reasonably required to prevent any violation of
applicable securities laws.

-13-

 

ATTACHMENT A

IXIA

2010 EMPLOYEE STOCK PURCHASE PLAN

DESIGNATED SUBSIDIARIES

 

 

ATTACHMENT B

IXIA

2010 EMPLOYEE STOCK PURCHASE PLAN

PAYROLL DEDUCTION AUTHORIZATION CHANGE OR WITHDRAWAL FORM

          I am now a Participant in the Ixia 2010 Employee Stock Purchase Plan (the “Plan”) and I
wish to make the change indicated below (check one):

	o	 	A.	 	Decrease in Payroll Deduction Rate for Next Purchase Period
or New Offering Period: I hereby authorize the following new rate of payroll
deduction, effective as of the first payday of the next Purchase Period (such change
must be filed with the Company during the Enrollment Period prior to the start of the
Purchase Period or Offering Period with respect to which it is to be effective):

			
	     (circle one)	 	      1%      2%      3%       4%      5%      6%      7%      8%      9%     

      10%      11%      12%      13%      14%      15% of Compensation

	o	 	B.	 	Increase in Payroll Deduction Rate for New Offering Period:
I hereby authorize the following new rate of payroll deduction, effective as of the
first payday of the next Offering Period (such change must be filed with the Company
during the Enrollment Period prior to the start of the Offering Period with respect
to which it is to be effective). IMPORTANT: Increases (but not decreases) in payroll
deduction rates may only become effective upon enrollment in a new Offering
Period.

			
	     (circle one)	 	      1%      2%      3%       4%      5%      6%      7%      8%      9%     

      10%      11%      12%      13%      14%      15% of Compensation

	o	 	C.	 	Withdrawal from Plan and Immediate Cancellation of Option: I hereby
elect to cancel my participation in the Plan effective immediately and to cancel my
option to purchase Ixia Common Stock under the Plan and request that all amounts
withheld from me through payroll deductions relating to the canceled option be
refunded to me. I understand that cancellation of my option will be effective only
if this form is filed with the Company by the specified administrative deadline prior
to the close of the current Purchase Period. I understand that if I wish to
participate in the Plan following my cancellation and withdrawal from the Plan, I
must re-enroll by filing a new Subscription Agreement with the Company during the
open Enrollment Period prior to the start of the Offering Period with respect to
which it is to be effective (including, if I so elect, the Offering Period that will
commence immediately following the end of the current Purchase Period from which I am
withdrawing).

	 
	o	 	D.	 	Withdrawal from Plan without Cancellation of Option in Current
Purchase Period. I hereby elect to cancel my participation in the Plan effective as
of the first day of the next Purchase Period. However, I request that my previously
authorized payroll deductions continue through the end of the current Purchase Period
and that all amounts deducted from my Compensation during the current Purchase Period
be applied to the purchase of Ixia Common Stock at the end of the Purchase Period
pursuant to the Plan. I understand that if I wish to participate in the Plan
following my cancellation and withdrawal from the Plan, I must re-enroll by filing a
new Subscription Agreement with the Company during the open Enrollment Period prior
to the start of the Offering Period with respect to which it

 

 

	 	 	 	is to be effective. I understand that I may not submit a new Subscription
Agreement for re-enrollment in the Plan until the first open Enrollment Period that
occurs after the end of the current Purchase Period.

	 	 	 	 	 	 	 

	Date:
	 	 	 	 	 	 
	 

	 
	 	 	 	 
	 

	 	 	 	 	 	Signature of Employee
	 
	 	 	 	 	 	 
	 

	 	 	 	Print Name:	 	 
	 

	 	 	 	 	 	 

 

(To be completed by Ixia)

	 	 	 	 	 	 	 	 	 

	Date Received:

	 	 	 	 	 	Approved by:	 	 
	 

	 
	 	 	 	 	 

 

 

ATTACHMENT C

IXIA

2010 EMPLOYEE STOCK PURCHASE PLAN

SUBSCRIPTION AGREEMENT

Instructions: Please print or type all information except your signature.

	 	 	 

	Name:
	 	 
	 

	 	 
	 

	 	     
     First     
          
          

            
    Middle     
          
          
                Last
	 
	 	 
	Address:
	 	 
	 

	 	 

Social Security No.: ____  ____  ____  -  ____  ____  -  ____  ____  ____  ____

 

ORIGINAL APPLICATION

	1.	 	I hereby elect to participate in the Ixia 2010 Employee Stock Purchase Plan (the “Plan”),
in accordance with this Subscription Agreement and subject to the terms and conditions of
the Plan.

	 
	2.	 	I hereby authorize Ixia to make regular payroll deductions, at the rate indicated below
and in accordance with the terms of the Plan, from the total Compensation (as defined in
the Plan) including overtime, bonuses, commissions and other earnings, if any, paid to me
during each Offering Period during which I remain a Participant in the Plan:

				
		 (circle one)	 	      1%      2%      3%       4%      5%      6%      7%      8%      9%     

       10%      11%      12%      13%      14%      15% of Compensation

	3.	 	I understand that payroll deductions at the indicated rate will continue from Offering
Period to Offering Period (and from Purchase Period to Purchase Period within an Offering
Period) unless I become ineligible to participate in the Plan or unless I file a Payroll
Deduction Authorization Change or Withdrawal Form.

	 
	4.	 	I understand that the deducted amounts will be applied automatically to the purchase of
shares of Ixia Common Stock at the end of each Purchase Period during an Offering Period
unless I elect to cancel my option and withdraw from the Plan by filing a Payroll Deduction
Authorization Change or Withdrawal Form by the specified administrative deadline prior to
the end of a Purchase Period.

	 
	5.	 	I hereby acknowledge that I have received and read a copy of Ixia’s most recent
Prospectus describing the terms and provisions of the Plan and understand the information
therein and the risks of participating in the Plan.

	 
	6.	 	Shares purchased for me under the Plan should be issued in the name(s) of:      
        
             
          
  

	 
	 	 	 

	 
	7.	 	I hereby agree to be bound by the terms of the Plan. The effectiveness of this
Subscription Agreement is dependent upon my eligibility to participate in the Plan.

 

 

	8.	 	I will promptly (a) notify Ixia if I have sold, transferred, gifted or otherwise disposed
of any shares purchased for me under the Plan at any time within two years after the
beginning of the Offering Period in which such shares were purchased or within one year
after the end of the Purchase Period in which such shares were purchased and (b) provide
Ixia with all requested information regarding such transaction.

	 
	9.	 	In the event of my death before the end of an Offering Period, I hereby designate as my
beneficiary(ies) to receive all payments and shares due me under the Plan (if more than one
beneficiary is named, then all beneficiaries shall share equally):

	 	 	 	 	 	 	 

	Name: (Please print)
	 	 	 	 	 	 
	 	 	 
	 

	 	     First
	 	Middle
	 	Last
	 
	 	 	 	 	 	 
	 	 	 
	Relationship

	 	     Address	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 

	 	     City
	 	State
	 	Zip Code
	Name: (Please print)
	 	 	 	 	 	 
	 	 	 
	 

	 	     First
	 	Middle
	 	  Last
	 
	 	 	 	 	 	 
	 	 	 
	Relationship

	 	     Address	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 

	 	     City
	 	State
	 	Zip Code

	 	 	 

	Date:  
              
              
          
                

	 	 
	 

	 	Signature of Employee

 

ELECTION NOT TO PARTICIPATE

          I hereby acknowledge receipt of a copy of Ixia’s most recent Prospectus which describes the
Ixia Employee Stock Purchase Plan and elect not to participate in the Plan. I understand that
my decision not to participate in the next offering under the Plan will not affect my
eligibility to participate in subsequent offerings under the Plan.

	 	 	 

	Date:  
              
              
          
                

	 	 
	 

	 	Signature of Employee

 

(To be completed by Ixia)

	 	 	 	 	 

	Date Received:      
     
   
         
                  

	 	Approved by:

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