Document:

EX-10.18

Exhibit 10.18.1

AMENDED AND RESTATED MANAGEMENT AGREEMENT

          This Amended and Restated Management Agreement (this “Agreement”) is entered into as of
                    , 2008, by and between Fair Isaac Corporation, a Delaware corporation (the “Company”),
and                                          (“Executive”).

          WHEREAS, Executive is currently employed by the Company and the Company desires to continue to
employ Executive under the terms and conditions set forth in this Agreement;

          WHEREAS, the Company and Executive are parties to a Management Agreement dated                     ,
                     (the “Prior Agreement”) which the parties desire to amend and restate in its entirety as
set forth in this Agreement;

          WHEREAS, in October 2004, the American Jobs Creation Act of 2004 (the “Act”) was enacted,
Section 885 of which Act added new provisions to the Internal Revenue Code of 1986, as amended
(the “Code”) pertaining to deferred compensation. The Treasury Department has issued final
regulations and guidance regarding the deferred compensation provisions of the Act, which permit
service providers and service recipients a transition period to modify existing deferred
compensation arrangements to bring them into compliance with the Act;

          WHEREAS, the parties agree that it is in their mutual best interests to modify, amend and
clarify the terms and conditions of the Prior Agreement, as set forth in this Agreement, with the
full intention of complying with the Act so as to avoid the additional taxes and penalties that may
be imposed under the Act;

          WHEREAS, Executive is a key member of the management of the Company and has heretofore devoted
substantial skill and effort to the affairs of the Company; and

          WHEREAS, it is desirable and in the best interests of the Company and its shareholders to
continue to obtain the benefits of Executive’s services and attention to the affairs of the
Company; and

          WHEREAS, it is desirable and in the best interests of the Company and its shareholders to
provide inducement for Executive (A) to remain in the service of the Company in the event of any
proposed or anticipated change in control of the Company and (B) to remain in the service of the
Company in order to facilitate an orderly transition in the event of a change in control of the
Company, without regard to the effect such change in control may have on Executive’s employment
with the Company; and

          WHEREAS, it is desirable and in the best interests of the Company and its shareholders that
Executive be in a position to make judgments and advise the Company with respect to proposed
changes in control of the Company; and

 

 

          WHEREAS, the Executive desires to be protected in the event of certain changes in control of
the Company; and

          WHEREAS, for the reasons set forth above, the Company and Executive desire to enter into this
Agreement.

          NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements
contained herein, the Company and Executive agree as follows:

     1. Events. No amounts or benefits shall be payable or provided for pursuant to this
Agreement unless an Event shall occur during the Term of this Agreement.

          (a) For purposes of this Agreement, an “Event” shall be deemed to have occurred if any of the
following occur:

	 	(i)	 	Any “person” (as defined in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended, or any
successor statute thereto (the “Exchange Act”)) acquires or becomes a
“beneficial owner” (as defined in Rule 13d-3 or any successor rule
under the Exchange Act), directly or indirectly, of securities of the
Company representing 30% or more of the combined voting power of the
Company’s securities entitled to vote generally in the election of
directors (“Voting Securities”) then outstanding or 30% or more of the
 shares of common stock of the Company (“Common Stock”) outstanding,
provided, however, that the following shall not constitute an Event
pursuant to this Section 1(a)(i):

	 	(A)	 	any acquisition or beneficial
ownership by the Company or a subsidiary of the Company;
	 
	 	(B)	 	any acquisition or beneficial
ownership by any employee benefit plan (or related trust)
sponsored or maintained by the Company or one or more of its
subsidiaries;
	 
	 	(C)	 	any acquisition or beneficial
ownership by any corporation (including without limitation an
acquisition in a transaction of the nature described in Section
1(a)(ii)) with respect to which, immediately following such
acquisition, more than 70%, respectively, of (x) the combined
voting power of the Company’s then outstanding Voting Securities
and (y) the Common Stock is then beneficially owned, directly or
indirectly, by all or substantially all of the persons who beneficially owned Voting Securities and Common Stock,

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	 	 	 	respectively, of the Company immediately prior to such
acquisition in substantially the same proportions as their
ownership of such Voting Securities and Common Stock, as the
case may be, immediately prior to such acquisition; or
	 
	 	(D)	 	any acquisition of Voting
Securities or Common Stock directly from the Company; and

	 	 	 	Continuing Directors shall not constitute a majority of the members
of the Board of Directors of the Company. For purposes of this
Section 1(a)(i), “Continuing Directors” shall mean: (A) individuals
who, on the date hereof, are directors of the Company, (B)
individuals elected as directors of the Company subsequent to the
date hereof for whose election proxies shall have been solicited by
the Board of Directors of the Company or (C) any individual elected
or appointed by the Board of Directors of the Company to fill
vacancies on the Board of Directors of the Company caused by death or
resignation (but not by removal) or to fill newly-created
directorships, provided that a “Continuing Director” shall not
include an individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to
the threatened election or removal of directors (or other actual or
threatened solicitation of proxies or consents) by or on behalf of
any person other than the Board of Directors of the Company; or
	 
	 	(ii)	 	Consummation of a reorganization, merger or
consolidation of the Company or a statutory exchange of outstanding
Voting Securities of the Company (other than a merger or consolidation
with a subsidiary of the Company), unless immediately following such
reorganization, merger, consolidation or exchange, all or substantially
all of the persons who were the beneficial owners, respectively, of
Voting Securities and Common Stock immediately prior to such
reorganization, merger, consolidation or exchange beneficially own,
directly or indirectly, more than 70% of, respectively, (x) the
combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors of the
corporation resulting from such reorganization, merger, consolidation
or exchange and (y) the then outstanding shares of common stock of the
corporation resulting from such reorganization, merger, consolidation
or exchange in substantially the same proportions as their ownership,
immediately
prior to such reorganization, merger, consolidation or exchange, of
the Voting Securities and Common Stock, as the case may be; or

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	 	(iii)	 	(x) Approval by the shareholders of the
Company of a complete liquidation or dissolution of the Company or (y)
the sale or other disposition of all or substantially all of the assets
of the Company (in one or a series of transactions), other than to a
corporation with respect to which, immediately following such sale or
other disposition, more than 70% of, respectively, (1) the combined
voting power of the then outstanding voting securities of such
corporation entitled to vote generally in the election of directors and
(2) the then outstanding shares of common stock of such corporation is
then beneficially owned, directly or indirectly, by all or
substantially all of the persons who were the beneficial owners,
respectively, of the Voting Securities and Common Stock immediately
prior to such sale or other disposition in substantially the same
proportions as their ownership, immediately prior to such sale or other
disposition, of the Voting Securities and Common Stock, as the case may
be; or
	 
	 	(iv)	 	A majority of the members of the Board of
Directors of the Company shall have declared that an Event has occurred
or, if a majority of the members of the Board of Directors has
previously declared that an Event will occur upon satisfaction of
specified conditions, such specified conditions have been satisfied.

     Notwithstanding anything stated in this Section 1(a), an Event shall not be deemed to occur
with respect to Executive if (x) the acquisition or beneficial ownership of the 30% or greater
interest referred to in Section 1(a)(i) is by Executive or by a group, acting in concert, that
includes Executive or (y) a majority of the then combined voting power of the then outstanding
voting securities (or voting equity interests) of the surviving corporation or of any corporation
(or other entity) acquiring all or substantially all of the assets of the Company shall,
immediately after a reorganization, merger, exchange, consolidation or disposition of assets
referred to in Section 1(a)(ii) or 1(a)(iii), be beneficially owned, directly or indirectly, by
Executive or by a group, acting in concert, that includes Executive.

          (b) For purposes of this Agreement, a “subsidiary” of the Company shall mean any entity of
which securities or other ownership interests having general voting power to elect a majority of
the board of directors or other persons performing similar functions are at the time directly or
indirectly owned by the Company.

     2. Payments and Benefits. If any Event shall occur during the Term of this Agreement
and the employment of Executive with the Company is voluntarily or involuntarily terminated under
circumstances specified in Section 2(a), then Executive shall be entitled to
receive from the Company or its successor (which term as used herein shall include any person

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acquiring all or substantially all of the assets of the Company) a cash payment and other benefits
on the following basis:

          (a) If at any time within 90 days before, or at any time upon or after the occurrence of, the
first Event to occur (the “First Event”) and prior to the end of the Transition Period, the
employment of Executive with the Company is voluntarily or involuntarily terminated for any reason
(unless such termination is a voluntary termination by Executive other than for Good Reason, is on
account of the death or Disability of the Executive or is a termination by the Company for Cause),
subject to the limitations set forth in Sections 2(d), 2(e), and 2(f), Executive shall be entitled
to the following:

	 	(i)	 	The Company shall pay Executive’s full base
salary through the Termination Date at the rate then in effect in
accordance with the normal payroll practices of the Company.
	 
	 	(ii)	 	The Company or its successor shall make a cash
payment to Executive in an amount equal to one (1) times *[for CEO: two
(2) times] the sum of (A) the annual base salary of Executive in effect
immediately prior to the First Event plus (B) the cash bonus or cash
incentive compensation received by the Executive from the Company for
the fiscal year preceding the First Event. Any amount payable under
this Section 2(a)(ii) will be paid to Executive in a lump sum on the
first regular payroll date of the Company or its successor to occur
after the first day of the seventh month following the Termination
Date.
	 
	 	(iii)	 	For a 12-month *[for CEO: 24-month] period
after the Termination Date, the Company shall allow Executive to
participate in any insured group health and group life insurance plan
or program (but not a self-insured medical expense reimbursement plan
within the meaning of Section 105(h) of the Code) in which the
Executive was entitled to participate immediately prior to the First
Event as if Executive were an employee of the Company during such
12-month *[for CEO: 24-month] period; provided,
however, that in the event that Executive’s participation in
any such health or life insurance plan or program of the Company is
barred, the Company, at its sole cost and expense, shall arrange to
provide Executive with insured benefits substantially similar to those
which Executive would be entitled to receive under such plan or program
if Executive were not barred from participation. Benefits otherwise
receivable by Executive pursuant to this Section 2(a)(iii) shall be
reduced to the extent comparable benefits are received by Executive
from another
employer or other third party during such 12-month *[for CEO:

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	 	 	 	24-month] period, and Executive shall promptly report receipt of any
such benefits to the Company.
	 
	 	(iv)	 	Any outstanding and unvested stock options
granted to Executive shall be accelerated and become immediately
exercisable by Executive (and shall remain exercisable for the
applicable post-termination exercise periods specified in the
applicable stock option agreements), any unvested restricted stock
units granted to Executive shall be accelerated and shares of Company
stock shall be issued to Executive or cash shall be paid to Executive,
as specified in the applicable restricted stock unit agreement, and any
restricted stock awarded to Executive and subject to forfeiture shall
be fully vested and shall no longer be subject to forfeiture.

     (b) The Company shall also pay to Executive reimbursement for all legal fees and
expenses incurred by Executive in his lifetime as a result of such termination and relating
to claims not barred by the applicable statutes of limitations, including, but not limited
to, all such fees and expenses, if any, incurred in contesting or disputing any such
termination or in seeking to obtain or enforce any right or benefit provided by this
Agreement. The amount of expenses eligible for reimbursement hereunder during any given
calendar year shall not affect the expenses eligible for reimbursement in any other calendar
year. Executive shall submit verification of expenses to the Company within 60 days from
the date the expense was incurred, and the Company shall reimburse eligible expenses within
30 days thereafter, but in any case no later than the last day of the calendar year
following the calendar year in which the expense was incurred. The right to reimbursement
of legal fees and expenses hereunder may not be exchanged for cash or any other benefit.

     (c) In addition to all other amounts payable to Executive under this Section 2,
Executive shall be entitled to receive all benefits payable to Executive under any other
plan or agreement relating to retirement benefits, pursuant to the terms and conditions of
such plan or agreement.

     (d) Executive shall not be required to mitigate the amount of any payment or other
benefit provided for in Section 2 by seeking other employment or otherwise, nor shall the
amount of any payment or other benefit provided for in Section 2 be reduced by any
compensation earned by Executive as the result of employment by another employer after the
Termination Date or otherwise, except as specifically provided in this Agreement.

     (e) Notwithstanding any other provision of this Agreement, the Company will not pay to
Executive, and Executive will not be entitled to receive, any payment pursuant to Section
2(a)(ii) unless and until:

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	 	(i)	 	Executive executes, and there shall be
effective following any statutory period for revocation or rescission,
a release that irrevocably and unconditionally releases the Company,
any company acquiring the Company or its assets, and their past and
current shareholders, directors, officers, employees and agents from
and against any and all claims, liabilities, obligations, covenants,
rights and damages of any nature whatsoever, whether known or unknown,
anticipated or unanticipated; provided, however, that
the release shall not adversely affect Executive’s rights to receive
benefits to which he is entitled under this Agreement or Executive’s
rights to indemnification under applicable law, the charter documents
of the Company, any insurance policy maintained by the Company or any
written agreement between the Company and Executive; and
	 
	 	ii)	 	Executive executes an agreement prohibiting
Executive for a period of one (1) year following the Termination Date
from soliciting, recruiting or inducing, or attempting to solicit,
recruit or induce, any employee of the Company or of any company
acquiring the Company or its assets to terminate the employee’s
employment.

     (f) If the termination of Executive’s employment with the Company occurs at any time
within 90 days before the occurrence of the First Event, Executive shall be entitled to no
payments or benefits under this Section 2 unless, in addition to satisfying all other
requirements and conditions of this Section 2, Executive also reasonably demonstrates within
30 days of the First Event that such termination of employment (x) was requested by a party
other than the Board of Directors of the Company that had previously taken other steps
reasonably calculated to result in, and which ultimately results in, the First Event, or (y)
otherwise arose in connection with or in anticipation of the First Event that ultimately
occurs.

     (g) The obligations of the Company under this Section 2 shall survive the termination
of this Agreement.

3. Certain Reduction of Payments by the Company.

     (a) Notwithstanding anything contained herein to the contrary, prior to the payment of
any amounts pursuant to Section 2(a) hereof, an independent national accounting firm
designated by the Company (the “Accounting Firm”) shall compute whether there would be any
“excess parachute payments” payable to Executive, within the meaning of Section 280G of the
Internal Revenue Code of 1986, as amended (the “Code”), taking into account the total
“parachute payments,” within the meaning of
Section 280G of the Code, payable to Executive by the Company or any successor

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thereto under
this Agreement and any other plan, agreement or otherwise. If there would be any excess
parachute payments, the Accounting Firm will compute the net after-tax proceeds to
Executive, taking into account the excise tax imposed by Section 4999 of the Code, if (i)
the payments hereunder were reduced, but not below zero, such that the total parachute
payments payable to Executive would not exceed three (3) times the “base amount” as defined
in Section 280G of the Code, less One Dollar ($1.00), or (ii) the payments hereunder were
not reduced. If reducing the payments hereunder would result in a greater after-tax amount
to Executive, such lesser amount shall be paid to Executive. If not reducing the payments
hereunder would result in a greater after-tax amount to Executive, such payments shall not
be reduced. The determination by the Accounting Firm shall be binding upon the Company and
Executive subject to the application of Section 3(b) hereof.

     (b) If as a result of uncertainty in the application of Sections 280G of the Code, it
is possible that excess parachute payments will be paid when such payment would result in a
lesser after-tax amount to Executive, such a payment will be void ab initio as
regards any such excess. Any excess will be treated as an overpayment by the Company to
Executive. Executive will return the overpayment to the Company within fifteen (15) business
days of any determination by the Accounting Firm that excess parachute payments have been
paid when not so intended, with interest at an annual rate equal to the rate provided in
Section 1274(d) of the Code (or 120% of such rate if the Accounting Firm determines that
such rate is necessary to avoid an excise tax under Section 4999 of the Code) from the date
Executive received such excess until it is repaid to the Company.

     (c) All fees, costs and expenses (including, but not limited to, the cost of retaining
experts) of the Accounting Firm shall be borne by the Company and the Company shall pay such
fees, costs, and expenses as they become due. In performing the computations required
hereunder, the Accounting Firm shall assume that taxes will be paid for state and federal
purposes at the highest possible marginal tax rates which could be applicable to Executive
in the year of receipt of the payments, unless Executive agrees otherwise.

4. Definition of Certain Additional Terms.

          (a) “Cause” shall mean, and be limited to, (i) willful and gross neglect of
duties by the Executive or (ii) an act or acts committed by the Executive constituting a
felony and substantially detrimental to the Company or its reputation.

          (b) “Disability” shall mean Executive’s absence from his duties with the
Company on a full time basis for 180 consecutive business days, as a result of Executive’s
incapacity due to physical or mental illness, unless within 30 days after
written notice of intent to terminate is given by the Company following such absence
Executive shall have returned to the full time performance of Executive’s duties.

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          (c) “Good Reason” shall mean if, without Executive’s express written consent,
any of the following shall occur:

	 	(i)	 	a material reduction of Executive’s authority,
duties, or responsibilities in the Company or its successor, including:
(A) a material reduction in Executive’s budget authority, or (B) a
material reduction in the authority, duties, or responsibilities of the
person to whom Executive reports, but excluding any isolated,
insubstantial, or inadvertent action not taken in bad faith and which
is remedied by the Company within five (5) days after receipt of notice
thereof from Executive;
	 
	 	(ii)	 	a material reduction by the Company in
Executive’s annual base salary or target incentive in effect
immediately prior to the First Event;
	 
	 	(iii)	 	the taking of any action by the Company that
would result in a material reduction of the aggregate benefits enjoyed
by Executive under the Company’s pension, life insurance, medical,
health and accident, disability, deferred compensation, incentive
awards, employee stock options, restricted stock or stock unit awards,
or savings plans in which Executive was participating at the time of
the First Event;
	 
	 	(iv)	 	the Company requiring Executive to relocate to
any place other than a location within fifty miles of the location at
which Executive performed his primary duties immediately prior to the
First Event or, if Executive is based at the Company’s principal
executive offices, the relocation of the Company’s principal executive
offices to a location more than fifty miles from its location
immediately prior to the First Event, except for required travel on the
Company’s business to an extent substantially consistent with
Executive’s prior business travel obligations; or
	 
	 	(v)	 	the failure of the Company to obtain agreement
from any successor to assume and agree to perform this Agreement, as
contemplated in Section 5(b).

          (d) As used herein, other than in Section 1(a) hereof, the term “person” shall mean an
individual, partnership, corporation, estate, trust or other entity.

          (e) “Termination Date” shall mean the date of termination of Executive’s employment,
which in the case of termination for Disability shall be the 30th day after notice is

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given as required in Section 4(b); provided, however, that for purposes of Section 2(a)(ii) of this
Agreement only, the Termination Date shall mean the date on which a “separation from service” has
occurred for purposes of Section 409A of the Code and the regulations and guidance thereunder.

          (f) “Transition Period” shall mean the one-year period commencing on the date of the
First Event and ending on the first anniversary of the First Event.

     5. Successors and Assigns.

          (a) This Agreement shall be binding upon and inure to the benefit of the successors, legal
representatives and assigns of the parties hereto; provided, however, that the Executive shall not
have any right to assign, pledge or otherwise dispose of or transfer any interest in this Agreement
or any payments hereunder, whether directly or indirectly or in whole or in part, without the
written consent of the Company or its successor.

          (b) The Company will require any successor (whether direct or indirect, by purchase of a
majority of the outstanding voting stock of the Company or all or substantially all of the assets
of the Company, or by merger, consolidation or otherwise), by agreement in form and substance
satisfactory to Executive, to assume expressly and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform it if no such
succession had taken place. Failure of the Company to obtain such agreement prior to the
effectiveness of any such succession (other than in the case of a merger or consolidation) shall be
a breach of this Agreement. As used in this Agreement, “Company” shall mean the Company as
hereinbefore defined and any successor to its business and/or assets as aforesaid that is required
to execute and deliver the agreement as provided for in this Section 5(b) or that otherwise becomes
bound by all the terms and provisions of this Agreement by operation of law.

     6. Governing Law. This Agreement shall be construed in accordance with the laws of
the State of Minnesota.

     7. Notices. All notices, requests and demands given to or made pursuant to this
Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed
by United States registered or certified mail, return receipt requested, postage pre-paid,
addressed to the last known residence address of Executive or in the case of the Company, to its
principal executive office to the attention of each of the then directors of the Company with a
copy to its Secretary, or to such other address as either party may have furnished to the other in
writing in accordance herewith, except that notice of change of address shall be effective only
upon receipt.

     8. Remedies and Claim Process. If Executive disputes any determination made by the
Company regarding Executive’s eligibility for any benefits under this Agreement, the amount or
terms of payment of any benefits under this Agreement, or the Company’s application of any

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provision of this Agreement, then Executive shall, before pursuing any other remedies that may be
available to Executive, seek to resolve such dispute by submitting a written claim notice to the
Company. The notice by Executive shall explain the specific reasons for Executive’s claim and
basis therefore. The Board of Directors shall review such claim and the Company will notify
Executive in writing of its response within 60 days of the date on which Executive’s notice of
claim was given. The notice responding to Executive’s claim will explain the specific reasons for
the decision. Executive shall submit a written claim hereunder before pursuing any other process
for resolution of such claim. This Section 8 does not otherwise affect any rights that Executive
or the Company may have in law or equity to seek any right or benefit under this Agreement.

     9. Severability. In the event that any portion of this Agreement is held to be
invalid or unenforceable for any reason, it is hereby agreed that such invalidity or
unenforceability shall not affect the other portions of this Agreement and that the remaining
covenants, terms and conditions or portions hereof shall remain in full force and effect.

     10. Integration. The benefits provided to Executive under this Agreement shall be in
lieu of any other severance pay or benefits available to Executive under any other agreement, plan
or program of the Company to the extent such other severance pay or benefits do not constitute
deferred compensation within the meaning of Section 409A of the Code. In the event that any
payments or benefits become payable to Executive pursuant to Section 2 of this Agreement, then this
Agreement will supersede and replace any other agreement, plan or program applicable to Executive
to the extent that such other agreement, plan or program provides for payments or benefits to
Executive that do not constitute deferred compensation within the meaning of Section 409A of the
Code and that arise out of the involuntary termination of Executive’s employment or termination by
Executive for Good Reason. In addition, the acceleration of stock options and lapsing of
forfeiture provisions of restricted stock units or other equity awards provided pursuant to Section
2(a)(iv) of this Agreement shall not be subject to the provisions of Article 13 of the Company’s
1992 Long-Term Incentive Plan (or similar successor provision or plan).

     11. Miscellaneous. No provision of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing and signed by the
parties. No waiver by either party hereto at any time of any breach by the other party to this
Agreement of, or compliance with, any condition or provision of this Agreement to be performed by
such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the
same or at any prior to similar time.

     12. Term. This Agreement shall commence on the date of this Agreement and shall
terminate, and the Term of this Agreement shall end, on the later of (A) December 31, 20[___],
provided that such period shall be automatically extended for one year and from year to year
thereafter until notice of termination is given by the Company or Executive to the other party
hereto at least 60 days prior to December 31, 20[___] or the one-year extension period then in
effect, as the case may be, or (B) if the First Event occurs on
or  prior to December 31, 20[     ] (or

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prior to the end of the extension year then in effect as provided for in clause (A) hereof), the
first anniversary of the First Event.

     13. Section 409A. This Agreement is intended to satisfy the requirements of Section
409A(a)(2), (3) and (4) of the Code, including current and future guidance and regulations
interpreting such provisions, and should be interpreted accordingly.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.

	 	 	 	 	 	 	 
	 	 	Fair Isaac Corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 
	 	 	**[Insert name of Executive]**	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 

12EX-10.39

Exhibit 10.39

FAIR ISAAC CORPORATION

1992 LONG-TERM INCENTIVE PLAN

As amended effective August 26, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	ARTICLE
	 	 	1.	 	 	INTRODUCTION 	 	5
	 
	 	 	 	 	 	 	 	 
	ARTICLE
	 	 	2.	 	 	ADMINISTRATION 	 	5
	 
	 	 	 	 	 	 	 	 
	 
	 	 	2.1	 	 	Committee Composition 	 	5
	 
	 	 	2.2	 	 	Committee Responsibilities 	 	5
	 
	 	 	 	 	 	 	 	 
	ARTICLE
	 	 	3.	 	 	SHARES AVAILABLE FOR GRANTS 	 	6
	 
	 	 	 	 	 	 	 	 
	 
	 	 	3.1	 	 	Basic Limitation 	 	6
	 
	 	 	3.2	 	 	Additional Shares 	 	6
	 
	 	 	3.3	 	 	Dividend Equivalents 	 	6
	 
	 	 	3.4	 	 	Outside Director Option Limitations 	 	6
	 
	 	 	 	 	 	 	 	 
	ARTICLE
	 	 	4.	 	 	ELIGIBILITY 	 	6
	 
	 	 	 	 	 	 	 	 
	 
	 	 	4.1	 	 	General Rules 	 	6
	 
	 	 	4.2	 	 	Outside Directors 	 	6
	 
	 	 	4.3	 	 	Ten-Percent Stockholders 	 	8
	 
	 	 	4.4	 	 	Limitation on Option Grants 	 	8
	 
	 	 	 	 	 	 	 	 
	ARTICLE
	 	 	5.	 	 	OPTIONS 	 	8
	 
	 	 	 	 	 	 	 	 
	 
	 	 	5.1	 	 	Stock Option Agreement 	 	8
	 
	 	 	5.2	 	 	Awards Nontransferable 	 	8
	 
	 	 	5.3	 	 	Number of Shares 	 	8
	 
	 	 	5.4	 	 	Exercise Price 	 	8
	 
	 	 	5.5	 	 	Exercisability and Term 	 	8
	 
	 	 	5.6	 	 	Effect of Change in Control 	 	8
	 
	 	 	5.7	 	 	Modification or Assumption of Options 	 	9
	 
	 	 	 	 	 	 	 	 
	ARTICLE
	 	 	6.	 	 	PAYMENT FOR OPTION SHARES 	 	9
	 
	 	 	 	 	 	 	 	 
	 
	 	 	6.1	 	 	General Rule 	 	9
	 
	 	 	6.2	 	 	Surrender of Stock 	 	9
	 
	 	 	6.3	 	 	Exercise/Sale 	 	9
	 
	 	 	6.4	 	 	Exercise/Pledge 	 	9

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	 	 	 	 	 	 	 	 	Page
	 
	 	 	6.5	 	 	Other Forms of Payment 	 	10
	 
	 	 	 	 	 	 	 	 
	ARTICLE
	 	 	7.	 	 	STOCK APPRECIATION RIGHTS 	 	10
	 
	 	 	 	 	 	 	 	 
	 
	 	 	7.1	 	 	Grant of SARs 	 	10
	 
	 	 	7.2	 	 	Exercise of SARs 	 	10
	 
	 	 	 	 	 	 	 	 
	ARTICLE
	 	 	8.	 	 	RESTRICTED SHARES AND STOCK UNITS 	 	10
	 
	 	 	 	 	 	 	 	 
	 
	 	 	8.1	 	 	Time, Amount and Form of Awards 	 	10
	 
	 	 	8.2	 	 	Payment for Awards 	 	10
	 
	 	 	8.3	 	 	Vesting Conditions 	 	10
	 
	 	 	8.4	 	 	Form and Time of Settlement of Stock Units 	 	11
	 
	 	 	8.5	 	 	Death of Recipient 	 	11
	 
	 	 	8.6	 	 	Creditors’ Rights 	 	11
	 
	 	 	 	 	 	 	 	 
	ARTICLE
	 	 	9.	 	 	VOTING AND DIVIDEND RIGHTS 	 	11
	 
	 	 	 	 	 	 	 	 
	 
	 	 	9.1	 	 	Restricted Shares 	 	11
	 
	 	 	9.2	 	 	Stock Units 	 	11
	 
	 	 	 	 	 	 	 	 
	ARTICLE
	 	 	10.	 	 	PROTECTION AGAINST DILUTION 	 	11
	 
	 	 	 	 	 	 	 	 
	 
	 	 	10.1	 	 	Adjustments 	 	12
	 
	 	 	10.2	 	 	Reorganizations 	 	12
	 
	 	 	 	 	 	 	 	 
	ARTICLE
	 	 	11.	 	 	LONG-TERM PERFORMANCE AWARDS 	 	12
	 
	 	 	 	 	 	 	 	 
	ARTICLE
	 	 	12.	 	 	LIMITATION ON RIGHTS 	 	12
	 
	 	 	 	 	 	 	 	 
	 
	 	 	12.1	 	 	Retention Rights 	 	12
	 
	 	 	12.2	 	 	Stockholders’ Rights 	 	12
	 
	 	 	12.3	 	 	Regulatory Requirements 	 	12
	 
	 	 	 	 	 	 	 	 
	ARTICLE
	 	 	13.	 	 	LIMITATION ON PAYMENTS 	 	13
	 
	 	 	 	 	 	 	 	 
	 
	 	 	13.1	 	 	Basic Rule 	 	13
	 
	 	 	13.2	 	 	Reduction of Payments 	 	13
	 
	 	 	13.3	 	 	Overpayments and Underpayments 	 	13
	 
	 	 	13.4	 	 	Related Corporations 	 	14

3

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	ARTICLE
	 	 	14.	 	 	WITHHOLDING TAXES 	 	14
	 
	 	 	 	 	 	 	 	 
	 
	 	 	14.1	 	 	General 	 	14
	 
	 	 	14.2	 	 	Share Withholding 	 	14
	 
	 	 	 	 	 	 	 	 
	ARTICLE
	 	 	15.	 	 	ASSIGNMENT OR TRANSFER OF AWARDS 	 	14
	 
	 	 	 	 	 	 	 	 
	ARTICLE
	 	 	16.	 	 	FUTURE OF PLAN 	 	15
	 
	 	 	 	 	 	 	 	 
	 
	 	 	16.1	 	 	Term of the Plan 	 	15
	 
	 	 	16.2	 	 	Amendment or Termination 	 	15
	 
	 	 	 	 	 	 	 	 
	ARTICLE
	 	 	17.	 	 	DEFINITIONS 	 	15
	 
	 	 	 	 	 	 	 	 
	ARTICLE
	 	 	18.	 	 	EXECUTION 	 	18

4

 

FAIR ISAAC CORPORATION 1992 LONG-TERM INCENTIVE PLAN

As amended Effective August 26, 2008

ARTICLE 1. INTRODUCTION.

The Plan was adopted by the Board on November 23, 1992, subject to approval by the
Company’s stockholders. The Board approved amendments to the Plan on November 21, 1995 and
on November 16, 2001, subject to approval by the Company’s stockholders. The Plan was also
amended by either the Board or the Committee on December 23, 1996, on November 25, 1997, on
November 19, 1999, on November 21, 2000, on April 1, 2003, on August 26, 2003, on May 15,
2005, on December 8, 2006 and on August 26, 2008. All share amounts in this restatement
have been adjusted to reflect stock splits on June 26, 1995, on June 4, 2001, on June 5,
2002, and 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 (a) encouraging Key Employees to
focus on critical long-range objectives, (b) encouraging the attraction and retention of
Key Employees with exceptional qualifications and (c) linking Key Employees directly to
stockholder interests through increased stock ownership. 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.

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

ARTICLE 2. ADMINISTRATION.

          2.1 Committee Composition. The Plan shall be administered by the Committee.
The Committee shall consist of two or more Outside Directors who shall be appointed by the
Board (although Committee functions may be delegated by the Committee to an officer or
officers to the extent that the Awards relate to persons who are not subject to the
reporting requirements of Section 16 of the Exchange Act).”

          2.2 Committee Responsibilities. The Committee shall (a) unless delegated to an
officer or officers in accordance with Section 2.1, 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.”

5

 

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 4,725,000 plus the number of
Common Shares remaining available for awards under the Company’s 1987 Stock Option Plan and
Stock Option Plan for Non-employee Directors (the “Prior Plans”) at the time this Plan is first
approved by the stockholders. (No additional grants shall be made under the Prior Plans after
this Plan has been approved by the stockholders.) Effective October 1, 1997, and on each
October 1 thereafter until and including October 1, 2007, the aggregate number of Shares which
may be issued under the Plan to individuals shall be increased by a number of Common Shares
equal to 4 percent of the total number of Common Shares outstanding at the end of the most
recently concluded fiscal year. Any Common Shares that have been reserved but not issued as
Restricted Shares, Stock Units or Options during any fiscal year shall remain available for
grant during any subsequent fiscal year. Notwithstanding the foregoing, no more than 5,062,500
Common Shares shall be available for the grant of ISOs for the remaining term of the Plan. 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. If any options under the Prior Plans
are forfeited or terminate for any other reason before being exercised, then such options shall
become available for additional Awards under this 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.

          3.4 Outside Director Option Limitations. Notwithstanding the limitations set
forth in Section 3.1 above, effective February 1, 2000, there shall be an additional 506,250
aggregate number of Options available for awards under the Plan to Outside Directors as further
described in Section 4.2 below.

ARTICLE 4. ELIGIBILITY.

          4.1 General Rules. Only Key Employees shall be eligible for designation as
Participants by the Committee. Key Employees who are Outside Directors shall only be
eligible for the grant of the NSOs described in Section 4.2.

          4.2 Outside Directors. Any other provision of the Plan notwithstanding, the
participation of Outside Directors in the Plan shall be subject to the following restrictions:

     (a) Outside Directors shall receive no Awards other than the NSOs described in this
Section 4.2.

     (b)(i) Each person who first becomes an Outside Director on or after the date of the
Company’s 2000 annual meeting of stockholders shall, upon becoming an Outside Director,

6

 

receive an NSO covering 30,000 Common Shares (subject to adjustment under Article 10),
hereinafter referred to as an “Initial Grant”. Such Initial Grant shall become exercisable
in increments of 6,000 shares (subject to adjustment under Article 10) on each of the first
through fifth anniversaries of the date of grant.

     (ii) Each Outside Director who was acting as an Outside Director prior to the
Company’s 2000 annual meeting of stockholders shall be entitled to receive an NSO grant of
Common Shares in an amount sufficient to increase his or her Initial Grant to 30,000 Common
Shares effective as of the date of such annual meeting.

     (iii) On the date of each annual meeting of stockholders of the Company held on or
after January 1, 2000, each Outside Director who has been an Outside Director at least
since the prior annual meeting shall receive an NSO covering 11,250 Common Shares (subject
to adjustment under Article 10), hereinafter referred to as an “Annual Grant.” Such Annual
Grants shall be exercisable in full on the date of grant.

     (iv) On the date of each annual meeting of stockholders of the Company held on or
after January 1, 2000, each Outside Director who chairs a standing committee at the
direction of the Chairman of the Board shall receive an NSO covering an additional 1,500
Common Shares (subject to Adjustment under Article 10) hereinafter referred to as a
“Committee Grant”. Such Committee Grant shall be exercisable in full on the date of grant.

     (v) On the date of each annual meeting of the stockholders of the Company held on or
after January 1, 2002, each Outsider Director who has, prior to the date of such annual
meeting, elected to receive an NSO in lieu of any cash paid to such Outside Director by
virtue of such Outside Director serving as a member of the Company’s Board of Directors
(the “Annual Cash Retainer”), shall receive an NSO covering the number of Common Shares
equal to the Annual Cash Retainer paid to Outside Directors, multiplied by two, divided by
the Fair Market Value of a Common Share on the date of grant, such grant shall be
hereinafter referred to as a “Retainer Grant.” If the Annual Cash Retainer payable to an
Outside Director is increased during the term for which such Outside Director has made an
election to receive the Retainer Grant and such Outside Director continues to serve as a
director of the Company on the date such Annual Cash Retainer is increased, an additional
NSO shall be granted, calculated using the same formula as the Retainer Grant based on the
increase in the Annual Cash Retainer with the date of grant being the date of the increase
in the Annual Cash Retainer. Retainer Grants shall be exercisable in full on the date of
grant.

     (c) All NSOs granted to an Outside Director under this Section 4.2 shall also become
exercisable in full in the event of the termination of such Outside Director’s service for
any reason.

     (d) The Exercise Price under all NSOs granted to an Outside Director under this
Section 4.2 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 Sections 6.1, 6.2, 6.3 and 6.4.

     (e) All NSOs granted to an Outside Director under this Section 4.2 shall
terminate on the earliest of (i) the 10th anniversary of the date of grant or (ii)
the date 12 months after the termination of such Outside Director’s service for any
reason.

7

 

          4.3 Ten-Percent Stockholders. A Key Employee who owns more than 10% of the
total combined voting power of all classes of outstanding stock of the Company or any of
its Subsidiaries shall not be eligible for the grant of an ISO unless the requirements set
forth in section 422(c)(6) of the Code are satisfied.

          4.4 Limitation on Option Grants. No person shall receive Options for more
than 562,500 Common Shares (subject to adjustment under Article 10) in any single fiscal
year of the Company.

ARTICLE 5. OPTIONS.

          5.1 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. The Stock Option Agreement shall specify whether
the Option is an ISO or an NSO. 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 15(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.

          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; provided that the term of an ISO shall
in no event exceed 10 years from the date of grant. 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. NSOs may also be awarded in
combination with Restricted Shares or Stock Units, and such an Award may provide that the
NSOs 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

8

 

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 as follows:

     (a) In the case of an ISO granted under the Plan, payment shall be made
only pursuant to the express provisions of the applicable Stock Option
Agreement. The Stock Option Agreement may specify that payment may be made in
any form(s) described in this Article 6.

     (b) In the case of an NSO, 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
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.

9

 

          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, other than the NSOs granted to Outside
Directors under Section 4.2. 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 ISO only at the
time of grant but may be included in an NSO at the time of grant or at any subsequent time,
but not later than six months before the expiration of such NSO.

          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 NSOs, and such an Award may provide that the Restricted Shares or Stock
Units will be forfeited in the event that the related NSOs are exercised.

          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

10

 

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.

          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 may, to the extent
determined by the Committee, carry with it a right to dividend equivalents. Any such right
would entitle 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.

11

 

          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 NSOs to be granted to Outside Directors under
Section 4.2, (c) the number of Stock Units included in any prior Award which has not yet
been settled, (d) the number of Common Shares covered by each outstanding Option or (e) 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. LONG-TERM PERFORMANCE AWARDS.

The Company may grant long-term performance awards under other plans or programs. Such
awards may be settled in the form of Common Shares issued under this Plan. Such Common
Shares shall be treated for all purposes under the Plan like Common Shares issued in
settlement of Stock Units and shall reduce the number of Common Shares available under
Article 3.

ARTICLE 12. LIMITATION ON RIGHTS.

          12.1 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).

          12.2 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.

          12.3 Regulatory Requirements. Any other provision of the Plan
notwithstanding, the obligation of the Company to issue Common Shares under the Plan shall
be subject

12

 

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 13. LIMITATION ON PAYMENTS.

          13.1 Basic Rule. Any provision of the Plan to the contrary notwithstanding, in
the event that the independent auditors most recently selected by the Board (the “Auditors”)
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 13. For purposes of
this Article 13, 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.

          13.2 Reduction of Payments. If the Auditors 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 13, present value shall be determined in accordance with section 280G(d)(4) of the
Code. All determinations made by the Auditors under this Article 13 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.

          13.3 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
Auditors 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 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 Auditors,
based upon the assertion of a deficiency by the Internal Revenue Service against the
Company or the Key Employee which the Auditors believe has a high probability of

13

 

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 Auditors 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.

          13.4 Related Corporations. For purposes of this Article 13, the term
“Company” shall include affiliated corporations to the extent determined by the Auditors in
accordance with section 280G(d)(5) of the Code.

ARTICLE 14. WITHHOLDING TAXES.

          14.1 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.

          14.2 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 15. ASSIGNMENT OR TRANSFER OF AWARDS.

          (i) Except as provided in Article 14, 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 15 shall be void. However, this Article 15 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 15 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 (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.

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          (ii) Notwithstanding paragraph (i) above, an NSO 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 16. FUTURE OF THE PLAN.

          16.1 Term of the Plan. The Plan, as set forth herein, shall become effective
upon approval by the Stockholders of the Company. The Plan shall remain in effect until
February 4, 2012, unless terminated earlier pursuant to Section 16.2, except that no ISOs
shall be granted after November 15, 2011.

          16.2 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
previously granted under the Plan.

ARTICLE 17. DEFINITIONS.

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

          17.2 “Award Year” means a fiscal year with respect to which an Award may be
granted.

          17.3 “Board” means the Company’s Board of Directors, as constituted from time
to time.

          17.4 “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:

     (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

15

 

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.

          17.5 “Code” means the Internal Revenue Code of 1986, as amended.

          17.6 “Committee” means a committee of the Board, as described in Article 2.

          17.7 “Common Share” means one share of the Common Stock of the Company.

          17.8 “Company” means Fair Isaac Corporation, a Delaware corporation.

          17.9 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          17.10 “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.

          17.11 “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

     (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

 

          17.12 “ISO” means an incentive stock option described in section 422(b) of
the Code.

          17.13 “Key Employee” means (a) a key common-law employee of the Company or of
a Subsidiary, as determined by the Committee, or (b) an Outside Director. Service as an
Outside Director shall be considered employment for all purposes of the Plan, except as
provided in Sections 4.1 and 4.2.

          17.14 “NSO” means an employee stock option not described in sections 422 or
423 of the Code.

          17.15 “Option” means an ISO or NSO granted under the Plan and entitling the
holder to purchase one Common Share.

          17.16 “Optionee” means an individual or estate who holds an Option.

          17.17 “Outside Director” shall mean a member of the Board who is not a
common-law employee of the Company or of a Subsidiary.

          17.18 “Participant” means an individual or estate who holds an Award.

          17.19 “Plan” means this Fair Isaac Corporation 1992 Long-Term Incentive Plan,
as it may be amended from time to time.

          17.20 “Restricted Share” means a Common Share awarded under the Plan.

          17.21 “SAR” means a stock appreciation right granted under the Plan.

          17.22 “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.

          17.23 “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.

          17.24 “Stock Unit” means a bookkeeping entry representing the equivalent of
one Common Share and awarded under the Plan.

          17.25 “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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ARTICLE 18. EXECUTION.

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

	 	 	 	 	 	 	 
	 	 	FAIR ISAAC CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Mark R. Scadina
	 	 
	 

	 	 	 	Senior Vice President, General Counsel	 	 
	 

	 	 	 	and Corporate Secretary	 	 

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