<PAGE>


                                                                    EXHIBIT 10.2


                             FAIR ISAAC CORPORATION

                      2003 EMPLOYMENT INDUCEMENT AWARD PLAN

                       AS AMENDED EFFECTIVE MAY 15, 2005


<PAGE>


                                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...........................     2

           3.1      Basic Limitation....................................     2
           3.2      Additional Shares...................................     2
           3.3      Dividend Equivalents................................     2

ARTICLE      4.   ELIGIBILITY...........................................     2

ARTICLE      5.     OPTIONS.............................................     2

           5.1      Stock Option Agreement..............................     2
           5.2      Awards Nontransferable..............................     2
           5.3      Number of Shares....................................     2
           5.4      Exercise Price......................................     3
           5.5      Exercisability and Term.............................     3
           5.6      Effect of Change in Control.........................     3
           5.7      Modification or Assumption of Options...............     3

ARTICLE      6.   PAYMENT FOR OPTION SHARES.............................     3

           6.1      General Rule........................................     3
           6.2      Surrender of Stock..................................     3
           6.3      Exercise/Sale.......................................     3
           6.4      Exercise/Pledge.....................................     4
           6.5      Other Forms of Payment..............................     4

ARTICLE      7.   STOCK APPRECIATION RIGHTS.............................     4

           7.1      Grant of SARs.......................................     4
           7.2      Exercise of SARs....................................     4
</Table>


<PAGE>


<Table>
<S>          <C>                                                            <C>
ARTICLE      8.   RESTRICTED SHARES AND STOCK UNITS.....................     4

           8.1      Time, Amount and Form of Awards.....................     4
           8.2      Payment for Awards..................................     5
           8.3      Vesting Conditions..................................     5
           8.4      Form and Time of Settlement of Stock Units..........     5
           8.5      Death of Recipient..................................     5
           8.6      Creditors' Rights...................................     5

ARTICLE      9.   VOTING AND DIVIDEND RIGHTS............................     5

           9.1      Restricted Shares...................................     5
           9.2      Stock Units.........................................     6

ARTICLE     10.   PROTECTION AGAINST DILUTION...........................     6

          10.1      Adjustments.........................................     6
          10.2      Reorganizations.....................................     6

ARTICLE     11.   LIMITATION ON RIGHTS..................................     6

          11.1      Retention Rights....................................     6
          11.2      Stockholders' Rights................................     6
          11.3      Regulatory Requirements.............................     7

ARTICLE     12.   LIMITATION ON PAYMENTS................................     7

          12.1      Basic Rule..........................................     7
          12.2      Reduction of Payments...............................     7
          12.3      Overpayments and Underpayments......................     7
          12.4      Related Corporations................................     8

ARTICLE     13.   WITHHOLDING TAXES.....................................     8

          13.1      General.............................................     8
          13.2      Share Withholding...................................     8


ARTICLE     14.   ASSIGNMENT OR TRANSFER OF AWARDS......................     8

ARTICLE     15.   FUTURE OF PLAN........................................     9

          15.1      Term of the Plan....................................     9
</Table>


<PAGE>


<Table>
<S>       <C>                                                               <C>
          15.2      Amendment or Termination............................     9

ARTICLE     16.   DEFINITIONS...........................................     9

ARTICLE     17.   EXECUTION.............................................    12
</Table>


<PAGE>


                             FAIR ISAAC CORPORATION
                      2003 EMPLOYMENT INDUCEMENT AWARD PLAN
                        AS AMENDED EFFECTIVE MAY 15, 2005


ARTICLE 1. INTRODUCTION.

The Plan was adopted by the Board on November 14, 2003 and is effective as of
such date. The Board approved an amendment to the Plan on May 15, 2005. All
share amounts in this amendment have been adjusted to reflect a stock split on
March 10, 2004. The purpose of the Plan is to promote the long-term success of
the Company and the creation of stockholder value by providing new Key Employees
(including Key Employees who join the Company as a result of a corporate
transaction) with an appropriate and material inducement to accept employment.
The Plan seeks to achieve this purpose by providing for Awards in the form of
Restricted Shares, Stock Units, Options (which may constitute incentive stock
options or nonstatutory stock options) or stock appreciation rights. All Awards
under the Plan are intended to qualify as "employment inducement awards" within
the meaning of Section 303A.08 of the New York Stock Exchange's Listed Company
Manual or any successor provision.

The Plan shall be governed by, and construed in accordance with, the laws of the
State of Delaware.

ARTICLE 2. ADMINISTRATION.


         2.1 COMMITTEE COMPOSITION. The Plan shall be administered by the
Committee. The Committee shall consist of three or more members who are not
common-law employees of the Company or any Subsidiary and who shall be appointed
by the Board. The Committee shall meet all of the applicable independence
requirements promulgated by the New York Stock Exchange.

         2.2 COMMITTEE RESPONSIBILITIES. The Committee shall (a) select the Key
Employees who are to receive Awards under the Plan and determine the type,
number, vesting requirements and other conditions of such Awards, (b) interpret
the Plan and (c) make all other 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.


<PAGE>


ARTICLE 3. SHARES AVAILABLE FOR GRANTS.

         3.1 BASIC LIMITATION. Any Common Shares issued pursuant to the Plan may
be authorized but unissued shares or treasury shares. The aggregate number of
Restricted Shares, Stock Units and Options awarded under the Plan shall not
exceed 2,250,000. The aggregate number of Common Shares which may be issued
under the Plan shall at all times be subject to adjustment pursuant to Article
10.

         3.2 ADDITIONAL SHARES. If any Stock Units or Options are forfeited or
if any Options terminate for any other reason before being exercised, then such
Stock Units or Options shall again become available for Awards under the Plan.
However, if Options are surrendered upon the exercise of related SARs, then such
Options shall not be restored to the pool available for Awards.

         3.3 DIVIDEND EQUIVALENTS. Any dividend equivalents distributed under
the Plan shall not be applied against the number of Restricted Shares, Stock
Units or Options available for Awards, whether or not such dividend equivalents
are converted into Stock Units.

ARTICLE 4. ELIGIBILITY. Only Key Employees shall be eligible for designation as
Participants by the Committee. Awards may only be granted to a Key Employee as a
material inducement to such Key Employee being hired (including in connection
with a corporate transaction) by the Company or one of its Subsidiaries or being
rehired following a bona fide interruption of employment. Any grant of an Award
shall not become effective unless and until the Key Employees actually commences
employment with the Company or one of its Subsidiaries.

ARTICLE 5. OPTIONS.

         5.1 STOCK OPTION AGREEMENT. Each grant of an Option under the Plan
shall be an NSO and 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. The provisions of the various Stock Option Agreements entered into
under the Plan need not be identical.

         5.2 AWARDS NONTRANSFERABLE. Except as provided in Article 14(ii), no
Option granted under the Plan shall be transferable by the Optionee other than
by will, by a beneficiary designation executed by the Optionee and delivered to
the Company or by the laws of descent and distribution. An Option may be
exercised during the lifetime of the Optionee only by him or her or by his or
her guardian or legal representative. No Option or interest therein may be
transferred, assigned, pledged or hypothecated by the Optionee during his or her
lifetime, whether by operation of law or otherwise, or be made subject to
execution, attachment or similar process.

         5.3 NUMBER OF SHARES. Each Stock Option Agreement shall specify the
number of Shares subject to the Option and shall provide for the adjustment of
such number in accordance with Article 10.


                                       2
<PAGE>


         5.4 EXERCISE PRICE. Each Stock Option Agreement shall specify the
Exercise Price. The Exercise Price shall not be less than 100% of the Fair
Market Value of a Common Share on the date of grant.

         5.5 EXERCISABILITY AND TERM. Each Stock Option Agreement shall specify
the date when all or any installment of the Option is to become exercisable. The
Stock Option Agreement shall also specify the term of the Option. A Stock Option
Agreement may provide for accelerated exercisability in the event of the
Optionee's death, disability or retirement or other events and may provide for
expiration prior to the end of its term in the event of the termination of the
Optionee's service. Options under the Plan may also be awarded in combination
with Restricted Shares or Stock Units, and such an Award may provide that the
Options will not be exercisable unless the related Restricted Shares or Stock
Units are forfeited.

         5.6 EFFECT OF CHANGE IN CONTROL. The Committee may determine, at the
time of granting an Option or thereafter, that such Option (and any SARs
included therein) shall become fully exercisable as to all Common Shares subject
to such Option in the event that a Change in Control occurs with respect to the
Company. If the Committee finds that there is a reasonable possibility that,
within the succeeding six months, a Change in Control will occur with respect to
the Company, then the Committee may determine that any or all outstanding
Options (and any SARs included therein) shall become fully exercisable as to all
Common Shares subject to such Options.

         5.7 MODIFICATION OR ASSUMPTION OF OPTIONS. Within the limitations of
the Plan, the Committee may modify, extend or assume outstanding options or may
accept the cancellation of outstanding options (whether granted by the Company
or by another issuer) in return for the grant of new options for the same or a
different number of shares and at the same or a different exercise price. The
foregoing notwithstanding, no modification of an Option shall, without the
consent of the Optionee, alter or impair his or her rights or obligations under
such Option.

ARTICLE 6. PAYMENT FOR OPTION SHARES.

         6.1 GENERAL RULE. The entire Exercise Price of Common Shares issued
upon exercise of Options shall be payable in cash at the time when such Common
Shares are purchased, except that the Committee may at any time accept payment
in any form(s) described in this Article 6. Notwithstanding any provision in
this Article 6 or in an Optionee's Stock Option Agreement, an Optionee, shall
not be permitted to exercise an Option in any manner which would violate
applicable state and federal laws, including, without limitation, the
Sarbanes-Oxley Act of 2002.

         6.2 SURRENDER OF STOCK. To the extent that this Section 6.2 is
applicable, payment for all or any part of the Exercise Price may be made with
Common Shares which have already been owned by the Optionee for more than twelve
months. Such Common Shares shall be valued at their Fair Market Value on the
date when the new Common Shares are purchased under the Plan.

         6.3 EXERCISE/SALE. To the extent that this Section 6.3 is applicable,
payment may be made by the delivery (on a form prescribed by the Company) of an
irrevocable


                                       3
<PAGE>


direction to a securities broker or other party approved by the Company to sell
Common Shares and to deliver all or part of the sales proceeds to the Company in
payment of all or part of the Exercise Price and any withholding taxes.

         6.4 EXERCISE/PLEDGE. To the extent that this Section 6.4 is applicable,
payment may be made by the delivery (on a form prescribed by the Company) of an
irrevocable direction to pledge Common Shares to a securities broker or lender
approved by the Company, as security for a loan, and to deliver all or part of
the loan proceeds to the Company in payment of all or part of the Exercise Price
and any withholding taxes.

         6.5 OTHER FORMS OF PAYMENT. To the extent that this Section 6.5 is
applicable, payment may be made in any other form that is consistent with
applicable laws, regulations and rules.

ARTICLE 7. STOCK APPRECIATION RIGHTS.

         7.1 GRANT OF SARS. At the discretion of the Committee, an SAR may be
included in each Option granted under the Plan. Such SAR shall entitle the
Optionee (or any person having the right to exercise the Option after his or her
death) to surrender to the Company, unexercised, all or any part of that portion
of the Option which then is exercisable and to receive from the Company Common
Shares or cash, or a combination of Common Shares and cash, as the Committee
shall determine. If an SAR is exercised, the number of Common Shares remaining
subject to the related Option shall be reduced accordingly, and vice versa. The
amount of cash and/or the Fair Market Value of Common Shares received upon
exercise of an SAR shall, in the aggregate, be equal to the amount by which the
Fair Market value (on the date of surrender) of the Common Shares subject to the
surrendered portion of the Option exceeds the Exercise Price. In no event shall
any SAR be exercised if such Fair Market Value does not exceed the Exercise
Price. An SAR may be included in an Option at the time of grant or at any
subsequent time, but not later than six months before the expiration of such
Option.

         7.2 EXERCISE OF SARS. An SAR may be exercised to the extent that the
Option in which it is included is exercisable, subject to the restrictions
imposed by Rule 16b-3 (or its successor) under the Exchange Act, if applicable.
If, on the date when an Option expires, the Exercise Price under such Option is
less than the Fair Market Value on such date but any portion of such Option has
not been exercised or surrendered, then any SAR included in such Option shall
automatically be deemed to be exercised as of such date with respect to such
portion. An Option granted under the Plan may provide that it will be
exercisable as an SAR only in the event of a Change in Control.

ARTICLE 8. RESTRICTED SHARES AND STOCK UNITS.

         8.1 TIME, AMOUNT AND FORM OF AWARDS. Restricted Shares or Stock Units
with respect to an Award Year may be granted during such Award Year or at any
time thereafter. Awards under the Plan may be granted in the form of Restricted
Shares, in the form of Stock Units, or in any combination of both. Restricted
Shares or Stock Units may also be awarded in combination with Options, and such
an Award may provide that the Restricted Shares or Stock Units will be forfeited
in the event that the related Options are exercised.


                                       4
<PAGE>


         8.2 PAYMENT FOR AWARDS. To the extent that an Award is granted in the
form of newly issued Restricted Shares, the Award recipient shall be required to
pay the Company in lawful money of the U.S. an amount equal to the par value of
such Restricted Shares. To the extent that an Award is granted in the form of
Stock Units or treasury shares, no cash consideration shall be required of Award
recipients.

         8.3 VESTING CONDITIONS. Each Award of Restricted Shares or Stock Units
shall become vested, in full or in installments, upon satisfaction of the
conditions specified in the Stock Award Agreement. A Stock Award Agreement may
provide for accelerated vesting in the event of the Participant's death,
disability or retirement or other events. The Committee may determine, at the
time of making an Award or thereafter, that such Award shall become fully vested
in the event that a Change in Control occurs with respect to the Company.

         8.4 FORM AND TIME OF SETTLEMENT OF STOCK UNITS. Settlement of vested
Stock Units may be made in the form of cash, in the form of Common Shares, or in
any combination of both. Methods of converting Stock Units into cash may include
(without limitation) a method based on the average Fair Market Value of Common
Shares over a series of trading days. Vested Stock Units may be settled in a
lump sum or in installments. The distribution may occur or commence when all
vesting conditions applicable to the Stock Units have been satisfied or have
lapsed, or it may be deferred to any later date. The amount of a deferred
distribution may be increased by an interest factor or by dividend equivalents.
Until an Award of Stock Units is settled, the number of such Stock Units shall
be subject to adjustment pursuant to Article 10.

         8.5 DEATH OF RECIPIENT. Any Stock Units Award that becomes payable
after the recipient's death shall be distributed to the recipient's beneficiary
or beneficiaries. Each recipient of a Stock Units Award under the Plan shall
designate one or more beneficiaries for this purpose by filing the prescribed
form with the Company. A beneficiary designation may be changed by filing the
prescribed form with the Company at any time before the Award recipient's death.
If no beneficiary was designated or if no designated beneficiary survives the
Award recipient, then any Stock Units Award that becomes payable after the
recipient's death shall be distributed to the recipient's estate.

         8.6 CREDITORS' RIGHTS. A holder of Stock Units shall have no rights
other than those of a general creditor of the Company. Stock Units represent an
unfunded and unsecured obligation of the Company, subject to the terms and
conditions of the applicable Stock Award Agreement.

ARTICLE 9. VOTING AND DIVIDEND RIGHTS.

         9.1 RESTRICTED SHARES. The holders of Restricted Shares awarded under
the Plan shall have the same voting, dividend and other rights as the Company's
other stockholders. A Stock Award Agreement, however, may require that the
holders of Restricted Shares invest any cash dividends received in additional
Restricted Shares. Such additional Restricted Shares shall be subject to the
same conditions and restrictions as the Award with respect to which the
dividends were paid. Such additional Restricted Shares shall not reduce the
number of Common Shares available under Article 3.


                                       5
<PAGE>


         9.2 STOCK UNITS. The holders of Stock Units shall have no voting
rights. Prior to settlement or forfeiture, any Stock Unit awarded under the Plan
shall carry with it a right to dividend equivalents. Such right entitles the
holder to be credited with an amount equal to all cash dividends paid on one
Common Share while the Stock Unit is outstanding. Dividend equivalents may be
converted into additional Stock Units. Settlement of dividend equivalents may be
made in the form of cash, in the form of Common Shares, or in a combination of
both. Prior to distribution, any dividend equivalents which are not paid shall
be subject to the same conditions and restrictions as the Stock Units to which
they attach.

ARTICLE 10. PROTECTION AGAINST DILUTION.

         10.1 ADJUSTMENTS. In the event of a subdivision of the outstanding
Common Shares, a declaration of a dividend payable in Common Shares, a
declaration of a dividend payable in a form other than Common Shares in an
amount that has a material effect on the price of Common Shares, a combination
or consolidation of the outstanding Common Shares (by reclassification or
otherwise) into a lesser number of Common Shares, a recapitalization, a spinoff
or a similar occurrence, the Committee shall make appropriate adjustments in one
or more of (a) the number of Options, Restricted Shares and Stock Units
available for future Awards under Article 3, (b) the number of Stock Units
included in any prior Award which has not yet been settled, (c) the number of
Common Shares covered by each outstanding Option or (d) the Exercise Price under
each outstanding Option. Except as provided in this Article 10, a Participant
shall have no rights by reason of any issue 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.

         10.2 REORGANIZATIONS. In the event that the Company is a party to a
merger or other reorganization, outstanding Options, Restricted Shares and Stock
Units shall be subject to the agreement of merger or reorganization. Such
agreement may provide, without limitation, for the assumption of outstanding
Awards by the surviving corporation or its parent, for their continuation by the
Company (if the Company is a surviving corporation), for accelerated vesting or
for settlement in cash.

ARTICLE 11. LIMITATION ON RIGHTS.

         11.1 RETENTION RIGHTS. Neither the Plan nor any award granted under the
Plan shall be deemed to give any individual a right to remain an employee or
director of the Company or a Subsidiary. The Company and its Subsidiaries
reserve the right to terminate the service of any employee or director at any
time, with or without cause, subject to applicable laws, the Company's
certificate of incorporation and by-laws and a written employment agreement (if
any).

         11.2 STOCKHOLDERS' RIGHTS. A Participant shall have no dividend rights,
voting rights or other rights as a stockholder with respect to any Common Shares
covered by his or her Award prior to the issuance of a stock certificate for
such Common Shares. No adjustment shall be made for cash dividends or other
rights for which the record date is prior to the date when such certificate is
issued, except as expressly provided in Articles 8, 9 and 10.


                                       6
<PAGE>


         11.3 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 Award 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.

ARTICLE 12. LIMITATION ON PAYMENTS.

         12.1 BASIC RULE. Any provision of the Plan to the contrary
notwithstanding, in the event that independent advisors selected by the Audit
Committee of the Board or the Board (the "Independent Advisors") determine that
any payment or transfer by the Company to or for the benefit of a Key Employee,
whether paid or payable (or transferred or transferable) pursuant to the terms
of this Plan or otherwise (a "Payment"), would be non-deductible by the Company
for federal income tax purposes because of the provisions concerning "excess
parachute payments" in section 280G of the Code, then the aggregate present
value of all Payments shall be reduced (but not below zero) to the Reduced
Amount; provided that the Committee, at the time of making an Award under this
Plan or at any time thereafter, may specify in writing that such Award shall not
be so reduced and shall not be subject to this Article 12. For purposes of this
Article 12, the "Reduced Amount" shall be the amount, expressed as a present
value, which maximizes the aggregate present value of the Payments without
causing any Payment to be nondeductible by the Company because of section 280G
of the Code.

         12.2 REDUCTION OF PAYMENTS. If the Independent Advisors determine that
any Payment would be nondeductible by the Company because of section 280G of the
Code, then the Company shall promptly give the Key Employee notice to that
effect and a copy of the detailed calculation thereof and of the Reduced Amount,
and the Key Employee may then elect, in his or her sole discretion, which and
how much of the Payments shall be eliminated or reduced (as long as after such
election the aggregate present value of the Payments equals the Reduced Amount)
and shall advise the Company in writing of his or her election within 10 days of
receipt of notice. If no such election is made by the Key Employee within such
10-day period, then the Company may elect which and how much of the Payments
shall be eliminated or reduced (as long as after such election the aggregate
present value of the Payments equals the Reduced Amount) and shall notify the
Key Employee promptly of such election. For purposes of this Article 12, present
value shall be determined in accordance with section 280G(d)(4) of the Code. All
determinations made by the Independent Advisors under this Article 12 shall be
binding upon the Company and the Key Employee and shall be made within 60 days
of the date when a payment becomes payable or transferable. As promptly as
practicable following such determination and the elections hereunder, the
Company shall pay or transfer to or for the benefit of the Key Employee such
amounts as are then due to him or her under the Plan and shall promptly pay or
transfer to or for the benefit of the Key Employee in the future such amounts as
become due to him or her under the Plan.

         12.3 OVERPAYMENTS AND UNDERPAYMENTS. As a result of uncertainty in the
application of section 280G of the Code at the time of an initial determination
by the Independent Advisors hereunder, it is possible that Payments will have
been made by the Company which should not have been made (an "Overpayment") or
that additional Payments


                                       7
<PAGE>


which will not have been made by the Company could have been made (an
"Underpayment"), consistent in each case with the calculation of the Reduced
Amount hereunder. In the event that the Independent Advisors, based upon the
assertion of a deficiency by the Internal Revenue Service against the Company or
the Key Employee which the Independent Advisors believe has a high probability
of success, determine that an Overpayment has been made, such Overpayment shall
be treated for all purposes as a loan to the Key Employee which he or she shall
repay to the Company, together with interest at the applicable federal rate
provided in section 7872(f)(2) of the Code; provided, however, that no amount
shall be payable by the Key Employee to the Company if and to the extent that
such payment would not reduce the amount which is subject to taxation under
section 4999 of the Code. In the event that the Independent Advisors determine
that an Underpayment has occurred, such Underpayment shall promptly be paid or
transferred by the Company to or for the benefit of the Key Employee, together
with interest at the applicable federal rate provided in section 7872(f)(2) of
the Code.

         12.4 RELATED CORPORATIONS. For purposes of this Article 12, the term
"Company" shall include affiliated corporations to the extent determined by the
Independent Advisors in accordance with section 280G(d)(5) of the Code.

ARTICLE 13. WITHHOLDING TAXES.

         13.1 GENERAL. To the extent required by applicable federal, state,
local or foreign law, the recipient of any payment or distribution under the
Plan shall make arrangements satisfactory to the Company for the satisfaction of
any withholding tax obligations that arise by reason of the receipt or vesting
of such payment or distribution. The Company shall not be required to issue any
Common Shares or make any cash payment under the Plan until such obligations are
satisfied.

         13.2 SHARE WITHHOLDING. The Committee may permit a Participant to
satisfy all or part of his or her withholding or income tax obligations by
having the Company withhold a portion of any Common Shares that otherwise would
be issued to him or her or by surrendering a portion of any Common Shares that
previously were issued to him or her. Such Common Shares shall be valued at
their Fair Market Value on the date when taxes otherwise would be withheld in
cash. Any payment of taxes by assigning Common Shares to the Company may be
subject to restrictions, including any restrictions required by rules of the
Securities and Exchange Commission.

ARTICLE 14. ASSIGNMENT OR TRANSFER OF AWARDS.

         (i) Except as provided in Article 13, any Award granted under the Plan
shall not be anticipated, assigned, attached, garnished, optioned, transferred
or made subject to any creditor's process, whether voluntarily, involuntarily or
by operation of law. Any act in violation of this Article 14 shall be void.
However, this Article 14 shall not preclude a Participant from designating a
beneficiary who will receive any undistributed Awards in the event of the
Participant's death, nor shall it preclude a transfer by will or by the laws of
descent and distribution. In addition, neither this Article 14 nor any other
provision of the Plan shall preclude a Participant from transferring or
assigning Restricted Shares or Stock Units to (a) the trustee of a trust that is
revocable by such Participant alone, both at the time of the transfer or
assignment and at all times thereafter prior to such Participant's death, or


                                       8
<PAGE>


(b) the trustee of any other trust to the extent approved in advance by the
Committee in writing. A transfer or assignment of Restricted Shares or Stock
Units from such trustee to any person other than such Participant shall be
permitted only to the extent approved in advance by the Committee in writing,
and Restricted Shares or Stock Units held by such trustee shall be subject to
all of the conditions and restrictions set forth in the Plan and in the
applicable Stock Award Agreement, as if such trustee were a party to such
Agreement.

         (ii) Notwithstanding paragraph (i) above, an Option or portion thereof
may be transferred by the Optionee by gift to (a) the Optionee's immediate
family, (b) a partnership or limited liability company consisting solely of the
Optionee and/or immediate family, or (c) to a trust established for the benefit
of the Optionee and/or one or more members of the immediate family of the
Optionee (including a charitable remainder trust whose income beneficiaries
consist solely of such persons), or (d) as provided in the Optionee's Stock
Option Agreement or with consent of the Board or Committee to any other person
or entity to which a transfer of compensatory securities is permitted under the
applicable rules for a Form S-8 registration statement, provided that such
transfer will not be effective until notice of such transfer is delivered to the
Corporation. For purposes of this paragraph (ii) "immediate family" means
spouse, children and grandchildren. An Option or portion thereof may also be
transferred pursuant to a domestic relations order of a court of competent
jurisdiction.

ARTICLE 15. FUTURE OF THE PLAN.

         15.1 TERM OF THE PLAN. The Plan, as set forth herein, is effective as
of November 14, 2003. The Plan shall remain in effect until terminated pursuant
to Section 15.2.

         15.2 AMENDMENT OR TERMINATION. The Board or the Committee 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 Awards shall be
granted under the Plan after the termination thereof. The termination of the
Plan, or any amendment thereof, shall not affect any Option, SAR, Restricted
Share or Stock Unit previously granted under the Plan.

ARTICLE 16. DEFINITIONS.

         16.1 "Award" means any award of an Option (with or without a related
SAR), a Restricted Share or a Stock Unit under the Plan.

         16.2 "Award Year" means a fiscal year with respect to which an Award
may be granted.

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

         16.4 "Change in Control" means the occurrence of either of the
following events:

                  (a) A change in the composition of the Board, as a result of
         which fewer than one-half of the incumbent directors are directors who
         either:


                                       9
<PAGE>


                           (i) Had been directors of the Company 24 months prior
                  to such change; or

                           (ii) Were elected, or nominated for election, to the
                  Board with the affirmative votes of at least a majority of the
                  directors who had been directors of the Company 24 months
                  prior to such change and who were still in office at the time
                  of the election or nomination; or

                  (b) Any "person" (as such term is used in sections 13(d) and
         14(d) of the Exchange Act) by the acquisition or aggregation of
         securities is or becomes the beneficial owner, directly or indirectly,
         of securities of the Company representing 50% or more of the combined
         voting power of the Company's then outstanding securities ordinarily
         (and apart from rights accruing under special circumstances) having the
         right to vote at elections of directors (the "Base Capital Stock");
         except that any change in the relative beneficial ownership of the
         Company's securities by any person resulting solely from a reduction in
         the aggregate number of outstanding shares of Base Capital Stock, and
         any decrease thereafter in such person's ownership of securities, shall
         be disregarded until such person increases in any manner, directly or
         indirectly, such person's beneficial ownership of any securities of the
         Company.

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

         16.6 "Committee" means the Compensation Committee of the Board, as
described in Article 2.

         16.7 "Common Share" means one share of the Common Stock of the Company.

         16.8 "Company" means Fair Isaac Corporation, a Delaware corporation.

         16.9 "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

         16.10 "Exercise Price" means the amount for which one Common Share may
be purchased upon exercise of an Option, as specified in the applicable Stock
Option Agreement.

         16.11 "Fair Market Value" means the market price of Common Shares,
determined by the Committee as follows:

                  (a) If the Common Shares were traded over-the-counter on the
         date in question, whether or not classified as a national market issue,
         then the Fair Market Value shall be equal to the mean between the last
         reported bid and asked prices quoted by the NASDAQ system for such
         date;

                  (b) If the Common Shares were 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; and


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<PAGE>


                  (c) If none of the foregoing provisions is applicable, then
         the Fair Market Value shall be 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 by the Research Section of the National
Association of Securities Dealers or in the Western Edition of The Wall Street
Journal. Such determination shall be conclusive and binding on all persons.

         16.12 "Key Employee" means a key common-law employee of the Company or
of a Subsidiary, as determined by the Committee.

         16.13 "NSO" means an employee stock option not described in sections
422 or 423 of the Code.

         16.14 "Option" means an NSO granted under the Plan and entitling the
holder to purchase one Common Share.

         16.15 "Optionee" means an individual or estate who holds an Option.

         16.16 "Participant" means an individual or estate who holds an Award.

         16.17 "Plan" means this Fair Isaac Corporation 2003 Employment
Inducement Award Plan, as it may be amended from time to time.

         16.18 "Restricted Share" means a Common Share awarded under the Plan.

         16.19 "SAR" means a stock appreciation right granted under the Plan.

         16.20 "Stock Award Agreement" means the agreement between the Company
and the recipient of a Restricted Share or Stock Unit which contains the terms,
conditions and restrictions pertaining to such Restricted Share or Stock Unit.

         16.21 "Stock Option Agreement" means the agreement between the Company
and an Optionee which contains the terms, conditions and restrictions pertaining
to his or her Option.

         16.22 "Stock Unit" means a bookkeeping entry representing the
equivalent of one Common Share and awarded under the Plan.

         16.23 "Subsidiary" means any corporation, if the Company and/or one or
more other Subsidiaries own not less than 50% of the total combined voting power
of all classes of outstanding stock of such corporation. A 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.


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<PAGE>


ARTICLE 17. EXECUTION.

To verify that this is the Plan, the Company has caused its duly authorized
officer to affix the corporate name and seal hereto.



                                FAIR ISAAC CORPORATION


                                By /s/ Andrea M. Fike
                                   ---------------------------------------------
                                                  Andrea M. Fike
                                   Vice President, General Counsel and Secretary


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