EXHIBIT 10.17

 

SUMMARY OF DIRECTOR COMPENSATION

(As of December 7, 2004)

 

The following is a summary of the director compensation arrangements adopted by
resolution of the Micromuse Board of Directors on June 23, 2004.

 

On the recommendation of outside experts and the Compensation Committee, the
Board agreed to pay independent directors a $20,000 annual retainer and the
chair of the Audit Committee an additional $5,000 annual retainer and to provide
per meeting compensation of $1,000 for each meeting of the Board of Directors
that is personally attended beginning with the fourth quarter of fiscal year
2004 (all such fees are payable quarterly in arrears).

 

In fiscal year 2004, the following option grants were approved for the
independent directors as follows:

 

Name

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No. of Shares
Underlying

Option Grants

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John C. Bolger

  40,000            

Michael E.W. Jackson

  35,000            

David C. Schwab

  30,000            

Kathleen M.H. Wallman

  30,000            

 

The Compensation Committee also undertook to review future equity awards to the
independent directors, which review has not been completed.