Document:

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                                                                    EXHIBIT 10.3

                               ANDA NETWORKS, INC.

                        2000 EMPLOYEE STOCK PURCHASE PLAN

                     (AS ADOPTED EFFECTIVE ______ __, 2000)

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
<S>         <C>                                                              <C>
SECTION 1.  PURPOSE OF THE PLAN................................................1

SECTION 2.  ADMINISTRATION OF THE PLAN.........................................1
        (a)  Committee Composition.............................................1
        (b)  Committee Responsibilities........................................1

SECTION 3.  ENROLLMENT AND PARTICIPATION.......................................1
        (a)  Offering Periods..................................................1
        (b)  Accumulation Periods..............................................1
        (c)  Enrollment........................................................1
        (d)  Duration of Participation.........................................2
        (e)  Applicable Offering Period........................................2

SECTION 4.  EMPLOYEE CONTRIBUTIONS.............................................2
        (a)  Frequency of Payroll Deductions...................................2
        (b)  Amount of Payroll Deductions......................................2
        (c)  Changing Withholding Rate.........................................3
        (d)  Discontinuing Payroll Deductions..................................3
        (e)  Limit on Number of Elections......................................3

SECTION 5.  WITHDRAWAL FROM THE PLAN...........................................3
        (a)  Withdrawal........................................................3
        (b)  Re-Enrollment After Withdrawal....................................3

SECTION 6.  CHANGE IN EMPLOYMENT STATUS........................................3
        (a)  Termination of Employment.........................................3
        (b)  Leave of Absence..................................................3
        (c)  Death.............................................................4

SECTION 7.  PLAN ACCOUNTS AND PURCHASE OF SHARES...............................4
        (a)  Plan Accounts.....................................................4
        (b)  Purchase Price....................................................4
        (c)  Number of Shares Purchased........................................4
        (d)  Available Shares Insufficient.....................................4
        (e)  Issuance of Stock.................................................4
        (f)  Tax Withholding...................................................5
        (g)  Unused Cash Balances..............................................5
        (h)  Stockholder Approval..............................................5

SECTION 8.  LIMITATIONS ON STOCK OWNERSHIP.....................................5
        (a)  Five Percent Limit................................................5
        (b)  Dollar Limit......................................................5
</TABLE>

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<TABLE>
<S>         <C>                                                              <C>
SECTION 9.  RIGHTS NOT TRANSFERABLE............................................6

SECTION 10.  NO RIGHTS AS AN EMPLOYEE..........................................6

SECTION 11.  NO RIGHTS AS A STOCKHOLDER........................................7

SECTION 12.  SECURITIES LAW REQUIREMENTS.......................................7

SECTION 13.  STOCK OFFERED UNDER THE PLAN......................................7
        (a)  Authorized Shares.................................................7
        (b)  Anti-Dilution Adjustments.........................................7
        (c)  Reorganizations...................................................7

SECTION 14.  AMENDMENT OR DISCONTINUANCE.......................................7

SECTION 15.  DEFINITIONS.......................................................8
        (a)  Accumulation Period...............................................8
        (b)  Board.............................................................8
        (c)  Code..............................................................8
        (d)  Committee.........................................................8
        (e)  Company...........................................................8
        (f)  Compensation......................................................8
        (g)  Corporate Reorganization..........................................8
        (h)  Eligible Employee.................................................8
        (i)  Exchange Act......................................................8
        (j)  Fair Market Value.................................................8
        (k)  IPO...............................................................9
        (l)  Offering Period...................................................9
        (m)  Participant.......................................................9
        (n)  Participating Company.............................................9
        (o)  Plan..............................................................9
        (p)  Plan Account......................................................9
        (q)  Purchase Price....................................................9
        (r)  Stock.............................................................9
        (s)  Subsidiary........................................................9

SECTION 15.  EXECUTION........................................................10
</TABLE>

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                               ANDA NETWORKS, INC.

                        2000 EMPLOYEE STOCK PURCHASE PLAN

SECTION 1. PURPOSE OF THE PLAN.

            The Board adopted the Plan effective as of the date of the IPO. The
purpose of the Plan is to provide Eligible Employees with an opportunity to
increase their proprietary interest in the success of the Company by purchasing
Stock from the Company on favorable terms and to pay for such purchases through
payroll deductions. The Plan is intended to qualify under section 423 of the
Code.

SECTION 2. ADMINISTRATION OF THE PLAN.

            (a) COMMITTEE COMPOSITION. The Committee shall administer the Plan.
The Committee shall consist exclusively of one or more directors of the Company,
who shall be appointed by the Board.

            (b) COMMITTEE RESPONSIBILITIES. The Committee shall interpret the
Plan and make all other policy decisions relating to the operation of the Plan.
The Committee may adopt such rules, guidelines and forms as it deems appropriate
to implement the Plan. The Committee's determinations under the Plan shall be
final and binding on all persons.

SECTION 3. ENROLLMENT AND PARTICIPATION.

            (a) OFFERING PERIODS. While the Plan is in effect, four overlapping
Offering Periods shall commence in each calendar year. The Offering Periods
shall consist of the 24-month periods commencing on each February 1, May 1,
August 1 and November 1, except that the first Offering Period shall commence on
the date of the IPO and end on July 31, 2002.

            (b) ACCUMULATION PERIODS. While the Plan is in effect, four
Accumulation Periods shall commence in each calendar year. The Accumulation
Periods shall consist of the three-month periods commencing on each February 1,
May 1, August 1 and November 1, except that the first Accumulation Period shall
commence on the date of the IPO and end on October 31, 2000.

            (c) ENROLLMENT. Any individual who, on the day preceding the first
day of an Offering Period, qualifies as an Eligible Employee may elect to become
a Participant in the Plan for such Offering Period by executing the enrollment
form prescribed for this purpose by the Committee. The enrollment form shall be
filed with the Company at the prescribed location not later than 10 business
days prior to the commencement of such Offering Period, except that the Company
may announce a deadline that is less than 10 business days prior to the
commencement of the first Offering Period.

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            (d) DURATION OF PARTICIPATION. Once enrolled in the Plan, a
Participant shall continue to participate in the Plan until he or she ceases to
be an Eligible Employee, withdraws from the Plan under Section 5(a) or reaches
the end of the Accumulation Period in which his or her employee contributions
were discontinued under Section 4(d) or 8(b). A Participant who discontinued
employee contributions under Section 4(d) or withdrew from the Plan under
Section 5(a) may again become a Participant, if he or she then is an Eligible
Employee, by following the procedure described in Subsection (c) above. A
Participant whose employee contributions were discontinued automatically under
Section 8(b) shall automatically resume participation at the beginning of the
earliest Accumulation Period ending in the next calendar year, if he or she then
is an Eligible Employee.

            (e) APPLICABLE OFFERING PERIOD. For purposes of calculating the
Purchase Price under Section 7(b), the applicable Offering Period shall be
determined as follows:

            (i) Once a Participant is enrolled in the Plan for an Offering
        Period, such Offering Period shall continue to apply to him or her until
        the earliest of (A) the end of such Offering Period, (B) the end of his
        or her participation under Subsection (d) above or (C) re-enrollment for
        a subsequent Offering Period under Paragraph (ii) or (iii) below.

            (ii) In the event that the Fair Market Value of Stock on the last
        trading day before the commencement of the Offering Period for which the
        Participant is enrolled is higher than on the last trading day before
        the commencement of any subsequent Offering Period, the Participant
        shall automatically be re-enrolled for such subsequent Offering Period.

            (iii) Any other provision of the Plan notwithstanding, the Company
        (at its sole discretion) may determine prior to the commencement of any
        new Offering Period that all Participants shall be re-enrolled for such
        new Offering Period.

            (iv) When a Participant reaches the end of an Offering Period but
        his or her participation is to continue, then such Participant shall
        automatically be re-enrolled for the Offering Period that commences
        immediately after the end of the prior Offering Period.

SECTION 4. EMPLOYEE CONTRIBUTIONS.

            (a) FREQUENCY OF PAYROLL DEDUCTIONS. A Participant may purchase
shares of Stock under the Plan solely by means of payroll deductions. Payroll
deductions, as designated by the Participant pursuant to Subsection (b) below,
shall occur on each payday during participation in the Plan.

            (b) AMOUNT OF PAYROLL DEDUCTIONS. An Eligible Employee shall
designate on the enrollment form the portion of his or her Compensation that he
or she elects to have withheld for the purchase of Stock. Such portion shall be
a whole percentage of the Eligible Employee's Compensation, but not less than 1%
nor more than 20%.

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            (c) CHANGING WITHHOLDING RATE. If a Participant wishes to change the
rate of payroll withholding, he or she may do so by filing a new enrollment form
with the Company at the prescribed location at any time. The new withholding
rate shall be effective as soon as reasonably practicable after the Company has
received such form. The new withholding rate shall be a whole percentage of the
Eligible Employee's Compensation, but not less than 1% nor more than 20%.

            (d) DISCONTINUING PAYROLL DEDUCTIONS. If a Participant wishes to
discontinue employee contributions entirely, he or she may do so by filing a new
enrollment form with the Company at the prescribed location at any time. Payroll
withholding shall cease as soon as reasonably practicable after the Company has
received such form. (In addition, employee contributions may be discontinued
automatically pursuant to Section 8(b).) A Participant who has discontinued
employee contributions may resume such contributions by filing a new enrollment
form with the Company at the prescribed location. Payroll withholding shall
resume as soon as reasonably practicable after the Company has received such
form.

            (e) LIMIT ON NUMBER OF ELECTIONS. No Participant shall make more
than one election under Subsection (c) or (d) above during any Accumulation
Period.

SECTION 5. WITHDRAWAL FROM THE PLAN.

            (a) WITHDRAWAL. A Participant may elect to withdraw from the Plan by
filing the prescribed form with the Company at the prescribed location at any
time before the last day of an Accumulation Period. As soon as reasonably
practicable thereafter, payroll deductions shall cease and the entire amount
credited to the Participant's Plan Account shall be refunded to him or her in
cash, without interest. No partial withdrawals shall be permitted.

            (b) RE-ENROLLMENT AFTER WITHDRAWAL. A former Participant who has
withdrawn from the Plan shall not be a Participant until he or she re-enrolls in
the Plan under Section 3(c). Re-enrollment may be effective only at the
commencement of an Offering Period.

SECTION 6. CHANGE IN EMPLOYMENT STATUS.

            (a) TERMINATION OF EMPLOYMENT. Termination of employment as an
Eligible Employee for any reason, including death, shall be treated as an
automatic withdrawal from the Plan under Section 5(a). (A transfer from one
Participating Company to another shall not be treated as a termination of
employment.)

            (b) LEAVE OF ABSENCE. For purposes of the Plan, employment shall not
be deemed to terminate when the Participant goes on a military leave, a sick
leave or another bona fide leave of absence, if the leave was approved by the
Company in writing. Employment, however, shall be deemed to terminate 90 days
after the Participant goes on a leave, unless a contract or statute guarantees
his or her right to return to work. Employment shall be deemed to terminate in
any event when the approved leave ends, unless the Participant immediately
returns to work.

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            (c) DEATH. In the event of the Participant's death, the amount
credited to his or her Plan Account shall be paid to a beneficiary designated by
him or her for this purpose on the prescribed form or, if none, to the
Participant's estate. Such form shall be valid only if it was filed with the
Company at the prescribed location before the Participant's death.

SECTION 7. PLAN ACCOUNTS AND PURCHASE OF SHARES.

            (a) PLAN ACCOUNTS. The Company shall maintain a Plan Account on its
books in the name of each Participant. Whenever an amount is deducted from the
Participant's Compensation under the Plan, such amount shall be credited to the
Participant's Plan Account. Amounts credited to Plan Accounts shall not be trust
funds and may be commingled with the Company's general assets and applied to
general corporate purposes. No interest shall be credited to Plan Accounts.

            (b) PURCHASE PRICE. The Purchase Price for each share of Stock
purchased at the close of an Accumulation Period shall be the lower of:

               (i) 85% of the Fair Market Value of such share on the last
        trading day in such Accumulation Period; or

               (ii) 85% of the Fair Market Value of such share on the last
        trading day before the commencement of the applicable Offering Period
        (as determined under Section 3(e)) or, in the case of the first Offering
        Period under the Plan, 85% of the price at which one share of Stock is
        offered to the public in the IPO.

            (c) NUMBER OF SHARES PURCHASED. As of the last day of each
Accumulation Period, each Participant shall be deemed to have elected to
purchase the number of shares of Stock calculated in accordance with this
Subsection (c), unless the Participant has previously elected to withdraw from
the Plan in accordance with Section 5(a). The amount then in the Participant's
Plan Account shall be divided by the Purchase Price, and the number of shares
that results shall be purchased from the Company with the funds in the
Participant's Plan Account. The foregoing notwithstanding, no Participant shall
purchase more than 1,500 shares of Stock with respect to any Accumulation Period
nor more than the amounts of Stock set forth in Sections 8(b) and 13(a). The
Committee may determine with respect to all Participants that any fractional
share, as calculated under this Subsection (c), shall be (i) rounded down to the
next lower whole share or (ii) credited as a fractional share.

            (d) AVAILABLE SHARES INSUFFICIENT. In the event that the aggregate
number of shares that all Participants elect to purchase during an Accumulation
Period exceeds the maximum number of shares remaining available for issuance
under Section 13(a), then the number of shares to which each Participant is
entitled shall be determined by multiplying the number of shares available for
issuance by a fraction. The numerator of such fraction is the number of shares
that such Participant has elected to purchase, and the denominator of such
fraction is the number of shares that all Participants have elected to purchase.

            (e) ISSUANCE OF STOCK. Certificates representing the shares of Stock
purchased by a Participant under the Plan shall be issued to him or her as soon
as reasonably

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practicable after the close of the applicable Accumulation Period, except that
the Committee may determine that such shares shall be held for each
Participant's benefit by a broker designated by the Committee (unless the
Participant has elected that certificates be issued to him or her). Shares may
be registered in the name of the Participant or jointly in the name of the
Participant and his or her spouse as joint tenants with right of survivorship or
as community property.

            (f) TAX WITHHOLDING. To the extent required by applicable federal,
state, local or foreign law, a Participant shall make arrangements satisfactory
to the Company for the satisfaction of any withholding tax obligations that
arise in connection with the Plan. The Company shall not be required to issue
any shares of Stock under the Plan until such obligations are satisfied.

            (g) UNUSED CASH BALANCES. An amount remaining in the Participant's
Plan Account that represents the Purchase Price for any fractional share shall
be carried over in the Participant's Plan Account to the next Accumulation
Period. Any amount remaining in the Participant's Plan Account that represents
the Purchase Price for whole shares that could not be purchased by reason of
Subsection (c) above, Section 8(b) or Section 13(a) shall be refunded to the
Participant in cash, without interest.

            (h) STOCKHOLDER APPROVAL. Any other provision of the Plan
notwithstanding, no shares of Stock shall be purchased under the Plan unless and
until the Company's stockholders have approved the adoption of the Plan.

SECTION 8. LIMITATIONS ON STOCK OWNERSHIP.

            (a) FIVE PERCENT LIMIT. Any other provision of the Plan
notwithstanding, no Participant shall be granted a right to purchase Stock under
the Plan if such Participant, immediately after his or her election to purchase
such Stock, would own stock possessing more than 5% of the total combined voting
power or value of all classes of stock of the Company or any parent or
Subsidiary of the Company. For purposes of this Subsection (a), the following
rules shall apply:

            (i) Ownership of stock shall be determined after applying the
        attribution rules of section 424(d) of the Code;

            (ii) Each Participant shall be deemed to own any stock that he or
        she has a right or option to purchase under this or any other plan; and

            (iii) Each Participant shall be deemed to have the right to purchase
        1,500 shares of Stock under this Plan with respect to each Accumulation
        Period.

            (b) DOLLAR LIMIT. Any other provision of the Plan notwithstanding,
no Participant shall purchase Stock with a Fair Market Value in excess of the
following limit:

            (i) In the case of Stock purchased during an Offering Period that
        commenced in the current calendar year, the limit shall be equal to (A)
        $25,000 minus (B) the Fair Market Value of the Stock that the
        Participant previously

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        purchased in the current calendar year (under this Plan and all other
        employee stock purchase plans of the Company or any parent or Subsidiary
        of the Company).

            (ii) In the case of Stock purchased during an Offering Period that
        commenced in the immediately preceding calendar year, the limit shall be
        equal to (A) $50,000 minus (B) the Fair Market Value of the Stock that
        the Participant previously purchased (under this Plan and all other
        employee stock purchase plans of the Company or any parent or Subsidiary
        of the Company) in the current calendar year and in the immediately
        preceding calendar year.

            (iii) In the case of Stock purchased during an Offering Period that
        commenced in the second preceding calendar year, the limit shall be
        equal to (A) $75,000 minus (B) the Fair Market Value of the Stock that
        the Participant previously purchased (under this Plan and all other
        employee stock purchase plans of the Company or any parent or Subsidiary
        of the Company) in the current calendar year and in the two preceding
        calendar years.

For purposes of this Subsection (b), the Fair Market Value of Stock shall be
determined in each case as of the beginning of the Offering Period in which such
Stock is purchased. Employee stock purchase plans not described in section 423
of the Code shall be disregarded. If a Participant is precluded by this
Subsection (b) from purchasing additional Stock under the Plan, then his or her
employee contributions shall automatically be discontinued and shall resume at
the beginning of the earliest Accumulation Period ending in the next calendar
year (if he or she then is an Eligible Employee).

SECTION 9. RIGHTS NOT TRANSFERABLE.

            The rights of any Participant under the Plan, or any Participant's
interest in any Stock or moneys to which he or she may be entitled under the
Plan, shall not be transferable by voluntary or involuntary assignment or by
operation of law, or in any other manner other than by beneficiary designation
or the laws of descent and distribution. If a Participant in any manner attempts
to transfer, assign or otherwise encumber his or her rights or interest under
the Plan, other than by beneficiary designation or the laws of descent and
distribution, then such act shall be treated as an election by the Participant
to withdraw from the Plan under Section 5(a).

SECTION 10. NO RIGHTS AS AN EMPLOYEE.

            Nothing in the Plan or in any right granted under the Plan shall
confer upon the Participant any right to continue in the employ of a
Participating Company for any period of specific duration or interfere with or
otherwise restrict in any way the rights of the Participating Companies or of
the Participant, which rights are hereby expressly reserved by each, to
terminate his or her employment at any time and for any reason, with or without
cause.

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SECTION 11. NO RIGHTS AS A STOCKHOLDER.

            A Participant shall have no rights as a stockholder with respect to
any shares of Stock that he or she may have a right to purchase under the Plan
until such shares have been purchased on the last day of the applicable
Accumulation Period.

SECTION 12. SECURITIES LAW REQUIREMENTS.

            Shares of Stock shall not be issued under the Plan unless the
issuance and delivery of such shares comply with (or are exempt from) all
applicable requirements of law, including (without limitation) the Securities
Act of 1933, as amended, the rules and regulations promulgated thereunder, state
securities laws and regulations, and the regulations of any stock exchange or
other securities market on which the Company's securities may then be traded.

SECTION 13. STOCK OFFERED UNDER THE PLAN.

            (a) AUTHORIZED SHARES. The number of shares of Stock available for
purchase under the Plan shall be 1,000,000 (subject to adjustment pursuant to
this Section 13). On February 1 of each year, commencing with February 1, 2001,
the aggregate number of shares of Stock available for purchase during the life
of the Plan shall automatically be increased by the number of shares necessary
to cause the number of shares then available for purchase to be restored to
1,000,000 (subject to adjustment pursuant to this Section 13).

            (b) ANTI-DILUTION ADJUSTMENTS. The aggregate number of shares of
Stock offered under the Plan, the 1,500-share limitation described in Section
7(c) and the price of shares that any Participant has elected to purchase shall
be adjusted proportionately by the Committee for any increase or decrease in the
number of outstanding shares of Stock resulting from a subdivision or
consolidation of shares or the payment of a stock dividend, any other increase
or decrease in such shares effected without receipt or payment of consideration
by the Company, the distribution of the shares of a Subsidiary to the Company's
stockholders or a similar event.

            (c) REORGANIZATIONS. Any other provision of the Plan
notwithstanding, immediately prior to the effective time of a Corporate
Reorganization, the Offering Period and Accumulation Period then in progress
shall terminate and shares shall be purchased pursuant to Section 7, unless the
Plan is continued or assumed by the surviving corporation or its parent
corporation. The Plan shall in no event be construed to restrict in any way the
Company's right to undertake a dissolution, liquidation, merger, consolidation
or other reorganization.

SECTION 14. AMENDMENT OR DISCONTINUANCE.

            The Board shall have the right to amend, suspend or terminate the
Plan at any time and without notice. Except as provided in Section 13, any
increase in the aggregate number of shares of Stock to be issued under the Plan
shall be subject to approval by a vote of the stockholders of the Company. In
addition, any other amendment of the Plan shall be subject to approval by a vote
of the stockholders of the Company to the extent required by an applicable

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law or regulation. The Plan shall terminate automatically 20 years after its
adoption by the Board, unless (a) the Plan is extended by the Board and (b) the
extension is approved within 12 months by a vote of the stockholders of the
Company.

SECTION 15. DEFINITIONS.

            (a) "ACCUMULATION PERIOD" means a three-month period during which
contributions may be made toward the purchase of Stock under the Plan, as
determined pursuant to Section 3(b).

            (b) "BOARD" means the Board of Directors of the Company, as
constituted from time to time.

            (c) "CODE" means the Internal Revenue Code of 1986, as amended.

            (d) "COMMITTEE" means a committee of the Board, as described in
Section 2.

            (e) "COMPANY" means Anda Networks, Inc., a Delaware corporation.

            (f) "COMPENSATION" means (i) the total compensation paid in cash to
a Participant by a Participating Company, including salaries, wages, bonuses,
incentive compensation, commissions, overtime pay and shift premiums, plus (ii)
any pre-tax contributions made by the Participant under section 401(k) or 125 of
the Code. "Compensation" shall exclude all non-cash items, moving or relocation
allowances, cost-of-living equalization payments, car allowances, tuition
reimbursements, imputed income attributable to cars or life insurance, severance
pay, fringe benefits, contributions or benefits received under employee benefit
plans, income attributable to the exercise of stock options, and similar items.
The Committee shall determine whether a particular item is included in
Compensation.

            (g) "CORPORATE REORGANIZATION" means:

            (i) The consummation of a merger or consolidation of the Company
        with or into another entity or any other corporate reorganization; or

            (ii) The sale, transfer or other disposition of all or substantially
        all of the Company's assets or the complete liquidation or dissolution
        of the Company.

            (h) "ELIGIBLE EMPLOYEE" means any employee of a Participating
Company whose customary employment is for more than five months per calendar
year and for more than 20 hours per week. The foregoing notwithstanding, an
individual shall not be considered an Eligible Employee if his or her
participation in the Plan is prohibited by the law of any country which has
jurisdiction over him or her or if he or she is subject to a collective
bargaining agreement that does not provide for participation in the Plan.

            (i) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

            (j) "FAIR MARKET VALUE" means the market price of Stock, determined
by the Committee as follows:

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            (i) If the Stock was traded on The Nasdaq National Market on the
        date in question, then the Fair Market Value shall be equal to the
        last-transaction price quoted for such date by The Nasdaq National
        Market;

            (ii) If the Stock was traded on a stock exchange on the date in
        question, then the Fair Market Value shall be equal to the closing price
        reported by the applicable composite transactions report for such date;
        or

            (iii) If none of the foregoing provisions is applicable, then the
        Committee shall determine the Fair Market Value in good faith on such
        basis as it deems appropriate.

Whenever possible, the determination of Fair Market Value by the Committee shall
be based on the prices reported in The Wall Street Journal or as reported
directly to the Company by Nasdaq or a stock exchange. Such determination shall
be conclusive and binding on all persons.

            (k) "IPO" means the initial offering of Stock to the public pursuant
to a registration statement filed by the Company with the Securities and
Exchange Commission.

            (l) "OFFERING PERIOD" means a 24-month period with respect to which
the right to purchase Stock may be granted under the Plan, as determined
pursuant to Section 3(a).

            (m) "PARTICIPANT" means an Eligible Employee who elects to
participate in the Plan, as provided in Section 3(c).

            (n) "PARTICIPATING COMPANY" means (i) the Company and (ii) each
present or future Subsidiary designated by the Committee as a Participating
Company.

            (o) "PLAN" means this Anda Networks, Inc. 2000 Employee Stock
Purchase Plan, as it may be amended from time to time.

            (p) "PLAN ACCOUNT" means the account established for each
Participant pursuant to Section 7(a).

            (q) "PURCHASE PRICE" means the price at which Participants may
purchase Stock under the Plan, as determined pursuant to Section 7(b).

            (r) "STOCK" means the Common Stock of the Company.

            (s) "SUBSIDIARY" means any corporation (other than the Company) in
an unbroken chain of corporations beginning with the Company, if each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain.

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SECTION 16. EXECUTION.

            To record the adoption of the Plan by the Board on June 15, 2000,
the Company has caused its duly authorized officer to execute this document in
the name of the Company.

                                               ANDA NETWORKS, INC.

                                               By: _____________________________

                                               Title: __________________________

                                       10<PAGE>   1
                                                                    EXHIBIT 10.4

                               ANDA NETWORKS, INC.

                        2000 DIRECTORS' STOCK OPTION PLAN

                      (AS ADOPTED EFFECTIVE APRIL 28, 2000)

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
<S>         <C>                                                              <C>
ARTICLE 1.  INTRODUCTION.......................................................1

ARTICLE 2.  ADMINISTRATION.....................................................1
        2.1  Committee Composition.............................................1
        2.2  Committee Responsibilities........................................1

ARTICLE 3.  SHARES AVAILABLE FOR GRANTS........................................1
        3.1  Basic Limitation..................................................1
        3.2  Annual Increase in Shares.........................................1
        3.3  Additional Shares.................................................2

ARTICLE 4.  AUTOMATIC OPTION GRANTS TO NON-EMPLOYEE DIRECTORS..................2
        4.1  Eligibility.......................................................2
        4.2  Initial Grants....................................................2
        4.3  Annual Grants.....................................................2
        4.4  Exercisability....................................................2
        4.4  Accelerated Exercisability........................................3
        4.5  Exercise Price....................................................3
        4.6  Term..............................................................3
        4.7  Affiliates of Non-Employee Directors..............................3
        4.8  Stock Option Agreement............................................3

ARTICLE 5.  PAYMENT FOR OPTION SHARES..........................................4
        5.1  Cash..............................................................4
        5.2  Surrender of Stock................................................4
        5.3  Exercise/Sale.....................................................4
        5.4  Other Forms of Payment............................................4

ARTICLE 6.  PROTECTION AGAINST DILUTION........................................4
        6.1  Adjustments.......................................................4
        6.2  Dissolution or Liquidation........................................5
        9.3  Reorganizations...................................................5

ARTICLE 7.  LIMITATION ON RIGHTS...............................................5
        7.1  Stockholders' Rights..............................................5
        7.2  Regulatory Requirements...........................................5
        7.3  Withholding Taxes.................................................5

ARTICLE 8.  FUTURE OF THE PLAN.................................................5
        8.1  Term of the Plan..................................................5
        8.2  Amendment or Termination..........................................5
</TABLE>

                                       i

<PAGE>   3

<TABLE>
<S>         <C>                                                              <C>
ARTICLE 9.  DEFINITIONS........................................................6

ARTICLE 10.  EXECUTION.........................................................8
</TABLE>

                                       ii

<PAGE>   4

                               ANDA NETWORKS, INC.

                        2000 DIRECTORS' STOCK OPTION PLAN

        ARTICLE 1. INTRODUCTION.

            The Board adopted the Plan effective as of the date of the Company's
initial public offering. The purpose of the Plan is to promote the long-term
success of the Company and the creation of stockholder value by (a) encouraging
Non-Employee Directors to focus on critical long-range objectives, (b)
encouraging the attraction and retention of Non-Employee Directors with
exceptional qualifications and (c) linking Non-Employee Directors directly to
stockholder interests through increased stock ownership. The Plan seeks to
achieve this purpose by providing for automatic and non-discretionary grants of
Options to Non-Employee Directors.

            The Plan shall be governed by, and construed in accordance with, the
laws of the State of Delaware (except their choice-of-law provisions).

        ARTICLE 2. ADMINISTRATION.

            2.1 COMMITTEE COMPOSITION. The Committee shall administer the Plan.
The Committee shall consist exclusively of two or more directors of the Company,
who shall be appointed by the Board. In addition, the composition of the
Committee shall satisfy such requirements as the Securities and Exchange
Commission may establish for administrators acting under plans intended to
qualify for exemption under Rule 16b-3 (or its successor) under the Exchange
Act.

            2.2 COMMITTEE RESPONSIBILITIES. The Committee shall interpret the
Plan and make all decisions relating to the operation of the Plan. The Committee
may adopt such rules or guidelines as it deems appropriate to implement the
Plan. The Committee's determinations under the Plan shall be final and binding
on all persons.

        ARTICLE 3. SHARES AVAILABLE FOR GRANTS.

            3.1 BASIC LIMITATION. Common Shares issued pursuant to the Plan may
be authorized but unissued shares or treasury shares. The aggregate number of
Common Shares subject to Options granted under the Plan shall not exceed (a)
500,000 plus (b) the additional Common Shares described in Sections 3.2 and 3.3.
The limitations of this Section 3.1 and Section 3.2 shall be subject to
adjustment pursuant to Article 6.

            3.2 ANNUAL INCREASE IN SHARES. As of January 1 of each year,
commencing with the year 2001, the aggregate number of Common Shares available
for the grant of Options under the Plan shall automatically be increased by the
number necessary to cause the total number of Common Shares then available to be
restored to 500,000.

<PAGE>   5

            3.3 ADDITIONAL SHARES. If Options are forfeited or terminate for any
other reason before being exercised, then the Common Shares subject to such
Options shall again become available for the grant of Options under the Plan.

        ARTICLE 4. AUTOMATIC OPTION GRANTS TO NON-EMPLOYEE DIRECTORS.

            4.1 ELIGIBILITY. Only Non-Employee Directors shall be eligible for
the grant of Options under the Plan.

            4.2 INITIAL GRANTS. Each Non-Employee Director who first becomes a
member of the Board after the date of the Company's initial public offering
shall receive a one-time grant of an Option covering 50,000 Common Shares. Such
Option shall be granted on the date when such Non-Employee Director first joins
the Board. Each Non-Employee Director who first becomes a member of one or more
committees of the Board after the date of the Company's initial public offering
shall receive a one-time grant of an Option covering 25,000 Common Shares. Such
Option shall be granted on the date when such Non-Employee Director first joins
a committee of the Board. No Non-Employee Director shall receive more than one
Option covering 25,000 Common Shares. A Non-Employee Director who previously was
an Employee shall not receive a grant under this Section 4.2.

            4.3 ANNUAL GRANTS. Upon the conclusion of each regular annual
meeting of the Company's stockholders held in the year 2001 or thereafter, each
Non-Employee Director who will serve as a member of the Board after such meeting
shall receive an Option covering 10,000 Common Shares, except that such Option
shall not be granted in the calendar year in which the same Non-Employee
Director received an Option covering 50,000 Common Shares under Section 4.2.
Upon the conclusion of each regular annual meeting of the Company's stockholders
held in the year 2001 or thereafter, each Non-Employee Director who will serve
as the Chairman of the Board after such meeting shall receive an Option covering
5,000 Common Shares. Upon the conclusion of each regular annual meeting of the
Company's stockholders held in the year 2001 or thereafter, each Non-Employee
Director who will serve as a member of one or more committees of the Board after
such meeting shall receive an Option covering 5,000 Common Shares, except that
such Option shall not be granted in the calendar year in which the same
Non-Employee Director received an Option covering 25,000 Common Shares under
Section 4.2. A Non-Employee Director who previously was an Employee shall be
eligible to receive grants under this Section 4.3.

            4.4 EXERCISABILITY. Subject to the Non-Employee Director's
continuing service, Options granted under Section 4.2 or 4.3 shall become
exercisable in equal monthly installments over the 48-month period commencing on
the date of grant, except that all of the first 12 installments shall become
exercisable on the first anniversary of the date of grant. For purposes of this
Section 4.4, service as a non-voting member or observer of the Board shall be
credited to the same extent as service as a Non-Employee Director. No service
shall be credited for a year unless the Non-Employee Director during such year
attends at least 75% of the meetings of the Board (in the case of an Option
granted for service on the Board) or 75% of the meetings of the committee(s) of
the Board on which the Non-Employee Director serves (in the

                                       2
<PAGE>   6

case of an Option granted for service on committee(s) of the Board).
Participation in a meeting by telephone or video conferencing equipment shall be
considered attendance.

            4.5 ACCELERATED EXERCISABILITY. An Option granted to a Non-Employee
Director under this Article 4 may become exercisable on an accelerated basis as
follows:

               (a) The Option shall become exercisable in full if the
        Non-Employee Director's service terminates because of his or her death.

               (b) The Option shall become exercisable in full if (i) the
        Company is subject to a Change in Control before the Non-Employee
        Director's service terminates, (ii) the Company does not continue the
        Option and (iii) the surviving corporation or its parent or subsidiary
        does not assume the Option or substitute its own option for the Option.

               (c) The Option shall become exercisable with respect to 25% of
        the Common Shares subject to the Option if the Company is subject to a
        Change in Control before the Non-Employee Director has completed 12
        months of service following the date of grant.

               (d) The Option shall become exercisable in full if (i) the
        Company is subject to a Change in Control and (ii) the Non-Employee
        Director's service terminates for any reason at the time of the Change
        in Control or within 12 months after the Change in Control.

            4.6 EXERCISE PRICE. The Exercise Price under all Options granted to
a Non-Employee Director under this Article 4 shall be equal to 100% of the Fair
Market Value of a Common Share on the date of grant, payable in one of the forms
described in Article 5.

            4.7 TERM. All Options granted to a Non-Employee Director under this
Article 4 shall terminate on the earliest of (a) the 10th anniversary of the
date of grant, (b) the date three months after the termination of such
Non-Employee Director's service for any reason other than death or total and
permanent disability, (c) the date six months after the termination of such
Non-Employee Director's service because of total and permanent disability or (d)
the date 12 months after the termination of such Non-Employee Director's service
because of death.

            4.8 AFFILIATES OF NON-EMPLOYEE DIRECTORS. The Committee may provide
that the Options that otherwise would be granted to a Non-Employee Director
under this Article 4 shall instead be granted to an affiliate of such
Non-Employee Director. Such affiliate shall then be deemed to be a Non-Employee
Director for purposes of the Plan, provided that the service-related vesting and
termination provisions pertaining to the Options shall be applied with regard to
the service of the Non-Employee Director.

            4.9 STOCK OPTION AGREEMENT. Each grant of an Option under the Plan
shall be evidenced by a Stock Option Agreement between the Optionee and the
Company. Such Option shall be subject to all applicable terms of the Plan and
may be subject to any other terms that are not inconsistent with the Plan.

                                       3
<PAGE>   7

        ARTICLE 5. PAYMENT FOR OPTION SHARES.

            5.1 CASH. All or any part of the Exercise Price may be paid in cash
or cash equivalents.

            5.2 SURRENDER OF STOCK. All or any part of the Exercise Price may be
paid by surrendering, or attesting to the ownership of, Common Shares that are
already owned by the Optionee. Such Common Shares shall be valued at their Fair
Market Value on the date when the new Common Shares are purchased under the
Plan. The Optionee shall not surrender, or attest to the ownership of, Common
Shares in payment of the Exercise Price if such action would cause the Company
to recognize compensation expense (or additional compensation expense) with
respect to the Option for financial reporting purposes.

            5.3 EXERCISE/SALE. All or any part of the Exercise Price and any
withholding taxes may be paid by delivering (on a form prescribed by the
Company) an irrevocable direction to a securities broker approved by the Company
to sell all or part of the Common Shares being purchased under the Plan and to
deliver all or part of the sales proceeds to the Company.

            5.4 OTHER FORMS OF PAYMENT. At the sole discretion of the Committee,
all or any part of the Exercise Price and any withholding taxes may be paid in
any other form that is consistent with applicable laws, regulations and rules.

        ARTICLE 6. PROTECTION AGAINST DILUTION.

            6.1 ADJUSTMENTS. In the event of a subdivision of the outstanding
Common Shares, a declaration of a dividend payable in Common Shares or a
combination or consolidation of the outstanding Common Shares (by
reclassification or otherwise) into a lesser number of Common Shares,
corresponding adjustments shall automatically be made in each of the following:

               (a) The number of Options available for future grants under
        Article 3;

               (b) The number of Common Shares covered by each outstanding
        Option; or

               (c) The Exercise Price under each outstanding Option.

In the event of a declaration of an extraordinary dividend payable in a form
other than Common Shares in an amount that has a material effect on the price of
Common Shares, a recapitalization, a spin-off or a similar occurrence, the
Committee shall make such adjustments as it, in its sole discretion, deems
appropriate in one or more of the foregoing. Except as provided in this Article
6, an Optionee shall have no rights by reason of any issuance by the Company of
stock of any class or securities convertible into stock of any class, any
subdivision or consolidation of shares of stock of any class, the payment of any
stock dividend or any other increase or decrease in the number of shares of
stock of any class.

                                       4
<PAGE>   8

            6.2 DISSOLUTION OR LIQUIDATION. To the extent not previously
exercised, Options shall terminate immediately prior to the dissolution or
liquidation of the Company.

            6.3 REORGANIZATIONS. In the event that the Company is a party to a
merger or other reorganization, outstanding Options shall be subject to the
agreement of merger or reorganization. Such agreement shall provide for (a) the
continuation of the outstanding Options by the Company, if the Company is a
surviving corporation, (b) the assumption of the outstanding Options by the
surviving corporation or its parent or subsidiary, (c) the substitution by the
surviving corporation or its parent or subsidiary of its own options for the
outstanding Options, (d) full exercisability and accelerated expiration of the
outstanding Options or (e) settlement of the full value of the outstanding
Options in cash or cash equivalents followed by cancellation of such Options.

        ARTICLE 7. LIMITATION ON RIGHTS.

            7.1 STOCKHOLDERS' RIGHTS. A Optionee shall have no dividend rights,
voting rights or other rights as a stockholder with respect to any Common Shares
covered by his or her Option prior to the time when he or she becomes entitled
to receive such Common Shares by filing a notice of exercise and paying the
Exercise Price. No adjustment shall be made for cash dividends or other rights
for which the record date is prior to such time, except as expressly provided in
the Plan.

            7.2 REGULATORY REQUIREMENTS. Any other provision of the Plan
notwithstanding, the obligation of the Company to issue Common Shares under the
Plan shall be subject to all applicable laws, rules and regulations and such
approval by any regulatory body as may be required. The Company reserves the
right to restrict, in whole or in part, the delivery of Common Shares pursuant
to any Option prior to the satisfaction of all legal requirements relating to
the issuance of such Common Shares, to their registration, qualification or
listing or to an exemption from registration, qualification or listing.

            7.3 WITHHOLDING TAXES. To the extent required by applicable federal,
state, local or foreign law, an Optionee or his or her successor shall make
arrangements satisfactory to the Company for the satisfaction of any withholding
tax obligations that arise in connection with the Plan. The Company shall not be
required to issue any Common Shares or make any cash payment under the Plan
until such obligations are satisfied.

        ARTICLE 8. FUTURE OF THE PLAN.

            8.1 TERM OF THE PLAN. The Plan, as set forth herein, shall become
effective on the date of the Company's initial public offering. The Plan shall
remain in effect until it is terminated under Section 8.2.

            8.2 AMENDMENT OR TERMINATION. The Board may, at any time and for any
reason, amend or terminate the Plan. An amendment of the Plan shall be subject
to the approval of the Company's stockholders only to the extent required by
applicable laws, regulations or rules. No Options shall be granted under the
Plan after the termination thereof. The termination

                                       5
<PAGE>   9

of the Plan, or any amendment thereof, shall not affect any Option previously
granted under the Plan.

        ARTICLE 9. DEFINITIONS.

            9.1 "BOARD" means the Company's Board of Directors, as constituted
from time to time.

            9.2 "CHANGE IN CONTROL" means:

               (a) The consummation of a merger or consolidation of the Company
        with or into another entity or any other corporate reorganization, if
        persons who were not stockholders of the Company immediately prior to
        such merger, consolidation or other reorganization own immediately after
        such merger, consolidation or other reorganization 50% or more of the
        voting power of the outstanding securities of each of (i) the continuing
        or surviving entity and (ii) any direct or indirect parent corporation
        of such continuing or surviving entity;

               (b) The sale, transfer or other disposition of all or
        substantially all of the Company's assets;

               (c) A change in the composition of the Board, as a result of
        which less than a majority of the incumbent directors are directors who
        either (i) had been directors of the Company on the date 24 months prior
        to the date of the event that may constitute a Change in Control (the
        "original directors") or (ii) were elected, or nominated for election,
        to the Board with the affirmative votes of at least a majority of the
        aggregate of the original directors who were still in office at the time
        of the election or nomination and the directors whose election or
        nomination was previously so approved; or

               (d) Any transaction as a result of which any person is the
        "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act),
        directly or indirectly, of securities of the Company representing at
        least 50% of the total voting power represented by the Company's then
        outstanding voting securities. For purposes of this Subsection (d), the
        term "person" shall have the same meaning as when used in sections 13(d)
        and 14(d) of the Exchange Act but shall exclude (i) a trustee or other
        fiduciary holding securities under an employee benefit plan of the
        Company or of a Parent or Subsidiary and (ii) a corporation owned
        directly or indirectly by the stockholders of the Company in
        substantially the same proportions as their ownership of the common
        stock of the Company.

A transaction shall not constitute a Change in Control if its sole purpose is to
change the state of the Company's incorporation or to create a holding company
that will be owned in substantially the same proportions by the persons who held
the Company's securities immediately before such transaction.

            9.3 "CODE" means the Internal Revenue Code of 1986, as amended.

                                       6
<PAGE>   10

            9.4 "COMMITTEE" means a committee of the Board, as described in
Article 2.

            9.5 "COMMON SHARE" means one share of the common stock of the
Company.

            9.6 "COMPANY" means Anda Networks, Inc., a Delaware corporation.

            9.7 "EMPLOYEE" means a common-law employee of the Company, a Parent
or a Subsidiary.

            9.8 "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

            9.9 "EXERCISE PRICE" means the amount for which one Common Share may
be purchased upon exercise of such Option, as specified in the applicable Stock
Option Agreement.

            9.10 "FAIR MARKET VALUE" means the market price of Common Shares,
determined by the Committee in good faith on such basis as it deems appropriate.
Whenever possible, the determination of Fair Market Value by the Committee shall
be based on the prices reported in The Wall Street Journal. Such determination
shall be conclusive and binding on all persons.

            9.11 "NON-EMPLOYEE DIRECTOR" means a member of the Board who is not
an Employee.

            9.12 "OPTION" means an option granted under the Plan and entitling
the holder to purchase Common Shares. Options do not qualify as incentive stock
options described in section 422(b) of the Code.

            9.13 "OPTIONEE" means an individual or estate who holds an Option.

            9.14 "PARENT" means any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company, if each of the
corporations other than the Company owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain. A corporation that attains the status of a Parent on
a date after the adoption of the Plan shall be considered a Parent commencing as
of such date.

            9.15 "PLAN" means this Anda Networks, Inc. 2000 Directors' Stock
Option Plan, as amended from time to time.

            9.16 "STOCK OPTION AGREEMENT" means the agreement between the
Company and an Optionee that contains the terms, conditions and restrictions
pertaining to his or her Option.

            9.17 "SUBSIDIARY" means any corporation (other than the Company) in
an unbroken chain of corporations beginning with the Company, if each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain. A

                                       7
<PAGE>   11

corporation that attains the status of a Subsidiary on a date after the adoption
of the Plan shall be considered a Subsidiary commencing as of such date.

        ARTICLE 10. EXECUTION.

            To record the adoption of the Plan by the Board on April 28, 2000,
the Company has caused its duly authorized officer to execute this document in
the name of the Company.

                                               ANDA NETWORKS, INC.

                                               By: _____________________________

                                               Title: __________________________

                                       8

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