Document:

Summary of Executive Bonus Plan

 EXHIBIT 10.8 
  
 SUMMARY OF EXECUTIVE BONUS PLAN 
  
 The following is a summary of the executive bonus plan as adopted by the Compensation Committee of the Micromuse Board of Directors in October 2003 for the fiscal year
ending September 30, 2004. 
  
 In fiscal year 2004, Micromuse’s Chief
Executive Officer, Lloyd Carney, and Chief Financial Officer, Mike Luetkemeyer, were considered eligible for performance-based variable compensation based on their achievement of revenue and earnings-per-share targets established in advance by the
Compensation Committee of the Company’s Board of Directors. These executives were considered eligible for increases in the amounts of their bonuses for quarters in which revenue backlog increased to pre-determined levels. Actual payout of these
bonuses for the executives was processed in accordance with these parameters, with authorization from the Compensation Committee. 
  
 Other Micromuse executive officers were also eligible to receive variable compensation (bonus) awards based on their achievement of specific operational goals set each
quarter by Mr. Carney. Upon completion of each quarter, goal achievement was rated by Mr. Carney and subsequent bonus payout levels were calculated and paid.Forms of Stock Option Agreements

 Exhibit 10.13 
  
 Notice of Grant of Stock Options 
 and
Option Agreement 
  

					
	 	  	 139 Townsend Street

	 	  	 San Francisco, CA 94107

			
	 Optionee
	  	 Option Number:
	  	 00003788

	 	  	 Plan:
	  	 1997

	 	  	 ID:
	  	 BOARD

  
 Effective 11/3/2003, you have been
granted a(n) Non-Qualified Stock Option to buy XX,XXX.XX shares of Micromuse Inc. (the Company) stock at $X.XXXXX per share. 
  
 The total option price of the shares granted is $XXX,XXX.XX. 
  
 Shares in each period will become fully vested on the date shown. 
  

							
	 Shares

	  	Vest Type

	  	Full Vest

	  	Expiration

	 XX,XXX.XX
	  	Monthly	  	11/3/2006	  	11/3/2013

  
 Exercise Schedule: This option
shall become vested and exercisable in 36 equal monthly installments over the three years of service measured from the Effective Date. 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 that is included with
this Notice of Grant of Stock Option. 
  
 By your signature and the Company’s
signature on the Notice of Grant of Stock Options, and the Stock Option 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/Stock Issuance
Plan. Optionee further agrees to be bound by the terms of the Plan and the terms of the Option as set forth in this Agreement. 
  

			
	 Micromuse Inc.
	 	 Date

		
	 Director Signature
	 	 Date

  
 139 Townsend Street,
San Francisco, CA 94107 Phone 415.538.9090 Fax 415.365.2403 MUSE TID#94-3288385 

 Notice of Grant of Stock Options 
 and Option Agreement 
  

					
	 	  	 139 Townsend Street

	 	  	 San Francisco, CA 94107

			
	 Optionee
	  	 Option Number:
	  	 00003837

	 	  	 Plan:
	  	 1997

	 	  	 ID:
	  	 

  
 Effective 11/3/2003, you have been
granted a(n) Non-Qualified Stock Option to buy XX,XXX.XX shares of Micromuse Inc. (the Company) stock at $X.XXXXX per share. 
  
 The total option price of the shares granted is $XXX,XXX.XX 
  
 Shares in each period will become fully vested on the date shown. 
  

							
	 Shares

	  	Vest Type

	  	Full Vest

	  	Expiration

	 XX,XXX.XX
	  	On Vest Date	  	5/3/2004	  	11/3/2013
	 XX,XXX.XX
	  	Monthly	  	11/3/2006	  	11/3/2013

  
 Exercise Schedule: This 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 the Effective Date 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 the Effective Date. 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 that is included with this Notice of Grant of Stock Option. 
  
 By signing the Notice of Grant of Stock Options, Optionee acknowledges that he or she understands and agrees that this option is granted under and governed by the terms
and conditions of the Micromuse Inc. 1997 Stock Option/Stock Issuance Plan. Optionee further agrees to be bound by the terms of the Plan, the Notice, and the Stock Option Agreement. 
  

			
	 Micromuse Inc.
	 	 Date

		
	 Optionee
	 	 Date

  
 139 Townsend Street,
San Francisco, CA 94107 Phone 415.538.9090 Fax 415.365.2403 MUSE TID#94-3288385Amendment No. 1 to Employment Agreement

 Exhibit 10.16 
  
 Exhibit A 
  
 AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT 
  
 This Amendment No. 1 (“Amendment”) to the Employment Agreement between Arun Oberoi (“Executive”) and Micromuse Inc. (“Company”) dated
January 12, 2004 (“Employment Agreement”) is made as of September 30, 2004 (the “Amendment Effective Date”). 
  
 WHEREAS, the Company wishes to clarify certain aspects of Executive’s Employment Agreement regarding variable compensation; 
  
 WHEREAS, Executive has performed and continues to perform under the
Employment Agreement as of the date he commenced employment with the Company; 
  
 WHEREAS, the Company wishes to provide certain bonus incentives to Executive to continue his employment with the Company; and 
  
 WHEREAS, the Company has sought and obtained approval from the Compensation Committee of the Company’s Board of
Directors for this Amendment. 
  
 NOW THEREFORE, in consideration
of the promises, mutual covenants and conditions contained herein, the parties hereto agree as follows: 
  

	 	1.	Paragraph 2(b) of the Employment Agreement is deleted in its entirety and replaced with new Paragraph 2(b), a copy of which is attached hereto. 

  

	 	2.	Except as specifically set forth herein, the Employment Agreement remains unmodified and in full force and effect. 

  
 IN WITNESS WHEREOF, the parties have executed this Amendment as of the Amendment
Effective Date. 
  

							
	MICROMUSE INC. (“Company”)	 	ARUN OBEROI (“Executive”)
				
	 By:
	 	 /s/ James B. De Golia

	 	 By:
	 	 /s/ Arun Oberoi

	 Name:
	 	 James B. De Golia
	 	 Date:
	 	 October 22, 2004

	 Title:
	 	 Senior Vice President
	 	 	 	 
	 Date:
	 	 September 30, 2004

	 	 	 	 

  

 1 

 Paragraph 2 
  
 (b) On Target Bonuses. In addition to Base Compensation, the Executive shall be eligible to receive an incentive bonus with a target bonus amount
(the “On Target Bonus”) set forth in the tables below in this Section 2(b), payable quarterly (or otherwise in accordance with the Company’s payment of bonuses to other senior executives). The On Target Bonus (if any) shall be awarded
based on criteria of performance by the Executive and/or the Company (the “Target”) established in advance by the Compensation Committee of the Board that will include consideration of the recommendations of the Chief Executive Officer.
For the remainder of Fiscal Year 2004, the criteria of performance for the award of an On-Target Bonus to Executive will be the market consensus estimates of the Company’s quarterly (and annual) revenue. For Fiscal Year 2005 (commencing on
October 1, 2004), the criteria of performance will be established in advance by the Compensation Committee (together with the criteria of performance for the Company’s CEO and CFO), and will include revenue and earnings targets established by
the Compensation Committee or Board. The reasonable determinations of the Compensation Committee with respect to the On Target Bonus shall be final and binding, subject to Section 10(g). The On Target Bonus shall be up to the following amounts,
respectively payable on a “cliff” basis if and only if the percentages of the Target are achieved (and without interpolation or pro rata adjustments below or within or above the percentage thresholds set forth below): 
  

										
	% of Target
Achieved

	 	On Target Bonus
(Annual Amount)

	 	On Target Bonus
(Quarterly Amount)

	 	Maximum Base
Compensation and On
Target Bonus (Annual
Amount)

	75%	 	$	120,000	 	$	30,000	 	$	420,000
	80%	 	$	150,000	 	$	37,500	 	$	450,000
	90%	 	$	200,000	 	$	50,000	 	$	500,000
	100%	 	$	250,000	 	$	62,500	 	$	550,000
	110%	 	$	345,000	 	$	86,250	 	$	645,000
	120%	 	$	585,000	 	$	146,250	 	$	885,000
	130%	 	$	637,917	 	$	159,480	 	$	937,917
	140% or more	 	$	690,833	 	$	172,710	 	$	990,833

  

 2Summary of Director Compensation

 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

	 	 No. of Shares
Underlying
 Option Grants

	 	 	 	 	 	 
	 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.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00075-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00075-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00075-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00075-of-00352.parquet"}]]