EXHIBIT 10.2
 
Micromuse Inc
ID: 94-3288385
 
139 Townsend Street
San Francisco, CA 94107
 
Notice of Grant of Stock Options
and Option Agreement
 
Optionee
  
Option Number:    00003005
    
Plan:                        1997
    
ID:                           999-99-9999

 
Effective 01/01/1997, you have been granted a(n) Non-Qualified Stock Option to
buy 100.00 shares of Micromuse Inc. (the Company) stock at $0.010000 per share.
 
The total option price of the shares granted is $1.00.
 
Shares in each period will become fully vested on the date shown.
 
Shares

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Vest Type

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Full Vest

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Expiration

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17.00
 
On Vest Date
 
07/01/1997
 
01/01/2007
83.00
 
Monthly
 
01/01/2000
 
01/01/2007

 
Exercise Schedule: The Option shall become exercisable with respect to (i)
one-sixth (1/6) of the Option Shares upon Optionee’s completion of six (6)
months of Service measured from January 1, 1997 and (ii) the balance of the
Option Shares in a series of thirty (30) successive equal monthly installments
upon Optionee’s completion of each additional month of Service over the thirty
(30)-month period measured from the six (6) month anniversary of January 1,1997.
In no event shall the Option become exercisable for any additional Option Shares
after Optionee’s cessation of Service.
 
Please review the Stock Option Agreement on the reverse of this Notice of Grant
of Stock Option.
 
By your signature and the Company’s signature below, you and the Company agree
that these options are granted under and governed by the terms and conditions of
the Company’s Stock Option Plan as amended and the Option Agreement, all of
which are attached and made a part of this document.
 
Micromuse Inc.
 
Date
Optionee
 
Date

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Additional Terms of Stock Option Agreement
 
Optionee understands and agrees that the Option is granted subject to and in
accordance with the terms of the Micromuse Inc. 1997 Stock Option Plan (the
“Plan”). Optionee further agrees to be bound by the terms of the Plan and the
terms of the Option as set forth in the Stock Option Agreement.
 
Optionee hereby acknowledges of a copy of the official prospectus for the Plan,
which is available on the Company Intranet at
http://intranet.micromuse.com/hrinfo/optiondocs/1997planprospectus.doc. A copy
of the Plan is also available at
http://intranet.micromuse.com/hrinfo/optiondocs/1997plandoc.
 
No Employment or Service Contract – Nothing in this Notice or in the attached
Stock Option Agreement or Plan shall confer upon Optionee any right to continue
in Service for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the Corporation (or any Parent or Subsidiary
employing or retaining Optionee) or of Optionee, which rights are hereby
expressly reserved by each, to terminate Optionee’s Service or any time for any
reason, with or without cause. In no event shall the Option become exercisable
for any additional Option Shares after Optionee’s cessation of Service.
 
Definitions – All capitalized terms in this Notice shall have the meaning
assigned to them in this Notice or in the Stock Option Agreement.

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Additional Terms of Stock Option Agreement
 
By your signature and the Company’s signature on the Notice of Grant of Stock
Options and Option Agreement (“Agreement”), Optionee understands and agrees that
these options are granted under and governed by the terms and conditions of the
Micromuse Inc. 1997 Stock Option Plan (the “Plan”). Optionee further agrees to
be bound by the terms of the Plan and the terms of the Option as set forth in
the Agreement.
 
Optionee hereby acknowledges receipt of a copy of the official prospectus for
the Plan, which is available on the Company Intranet at:
http://intranet.micromuse.com/hrinfo/optiondocs/1997planprospectus.doc. A copy
of the Plan is also available at
http://intranet.micromuse.com/hrinfo/optiondocs/1997plandoc. A copy of the Plan
is also available by request from the company.
 
No Employment or Service Contract – Nothing in this Notice or Stock Option
Agreement or Plan shall confer upon Optionee any right to continue in Service
for any period of specific duration or interfere with or otherwise restrict in
any way the rights of the Corporation (or any Parent or Subsidiary employing or
retaining Optionee) or of Optionee, which rights are hereby expressly reserved
by each, to terminate Optionee’s Service or any time for any reason, with or
without cause. In no event shall the Option become exercisable for any
additional Option Shares after Optionee’s cessation of Service.
 
Definitions – All capitalized terms in this Notice shall have the meaning
assigned to them in this Notice or Stock Option Agreement.
 
Acceleration following Change in Control/Hostile Take-Over or Corporate
Transaction
 
Immediately prior to a Change in Control or Corporate Transaction, the Option,
to the extent outstanding at the time but not otherwise fully exercisable, shall
automatically accelerate so that the Option shall become immediately exercisable
for all the Option Shares at the time subject to the Option and may be exercised
for any or all of those Option Shares as fully vested shares.
 
The Option, as accelerated pursuant to this Addendum, shall remain so
exercisable until the earlier of (i) the Expiration Date or (ii) the expiration
of the [one (1)-year] period measured from the date of the Optionee’s
Involuntary Termination.
 
The provisions of this Addendum shall govern the treatment of the Option upon a
Change in Control or Corporate Transaction and the period for which the Option
is to remain exercisable following a Change in Control or Corporate Transaction
and shall supersede any provisions to the contrary in the Option Agreement.