Document:

exv10w1

 

Exhibit 10.1

CONFIDENTIAL

TRANSITION AGREEMENT

     THIS TRANSITION AGREEMENT (this “Agreement”) is made and entered into by and between Gresham
T. Brebach, Jr. (“Brebach”), a resident of Massachusetts, and Fair Isaac Corporation (the
“Company”), a Delaware corporation.

BACKGROUND

     A. On November 2, 2006 the Company and Brebach agreed it was in their mutual best interests
for Brebach to resign his employment with the Company as a Business Strategy Vice President,
effective November 2, 2006. By virtue of his resignation, Brebach no longer has a role as an
executive officer or an officer of the Company as set forth in Section 16 of the Securities
Exchange Act of 1934.

     B. Notwithstanding Brebach’s resignation as an officer of the Company effective November 2,
2006, Brebach has agreed to remain employed with the Company in a transitional role through January
1, 2007.

     C. The parties are mutually concluding their employment relationship amicably, but mutually
recognize that such a relationship may give rise to potential claims or liabilities.

     D. The parties expressly deny that they may be liable to each other on any basis or that they
have engaged in any unlawful or improper conduct toward each other or treated each other unfairly.

     E. The parties desire to resolve all issues now in dispute between them and have agreed to a
full settlement of such issues.

     NOW THEREFORE, in consideration of the mutual promises and provisions contained in this
Agreement, the Release and the Second Release referred to below, the parties, intending to be
legally bound, agree as follows:

AGREEMENTS

1.  Employment Termination. The parties hereby confirm that Brebach‘s employment with the
Company will automatically terminate effective January 1, 2007, unless earlier terminated in
accordance with paragraph 4 below (Brebach’s last day of employment referred to as the “Separation
Date”).

 

 

2. Release and Second Release by Brebach. At the same time that Brebach executes this
Agreement, he shall also execute a Release in the form attached to this Agreement as Exhibit A (the
“Release”), in favor of the Company and its affiliates, divisions, committees, directors, officers,
employees, agents, predecessors, successors and assigns. If on or within 21 days after the
Separation Date Brebach executes a second release in the form of Exhibit B (the “Second Release”),
then Brebach will be eligible for additional consideration as set out in paragraph 4 below. This
Agreement will not be interpreted or construed to limit the Release or the Second Release in any
manner. The existence of any dispute respecting the interpretation of this Agreement or the
alleged breach of this Agreement will not nullify or otherwise affect the validity or
enforceability of the Release or the Second Release.

3. Transition Period. For the period beginning November 2, 2006 and ending on the
Separation Date (the “Transition Period”), Brebach has served as and will continue to be a full
time employee of the Company. During the Transition Period, Brebach will continue to receive his
regular base salary at the annual rate of $350,000.00, paid in accordance with the Company’s
regular payroll cycle, and will participate in other employee benefits programs and plans in
accordance with the terms of such programs and plans; provided, however that Brebach will not be
eligible for payment under any bonus or incentive plans or programs of the Company, including, but
not limited to, the Management Incentive Plan. During the Transition Period Brebach will facilitate
a smooth transition of his prior responsibilities, assist with ongoing matters on which he worked
prior to the Transition Period, and will assist on other matters as requested by the Company.
Brebach will not be required to maintain regular office hours during the Transition Period, but
must devote such time as is necessary to complete his responsibilities during the Transition Period
and be generally available to the Company by phone or personal computer. As of November 2, 2006,
Brebach ceased to be a Section 16 officer of the Company. Brebach shall not act as an
employee, contractor, consultant or in any other capacity for any other entity other than the
Company during the Transition Period.

4. Early Termination of Employment. Brebach and the Company agree that Brebach’s
employment with the Company will automatically end on January 1, 2007 without further action by
either party,

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except that his employment will end (and the Separation Date will be) earlier if (i)
Brebach rescinds or attempts to rescind this Agreement or the Release, (ii) Brebach terminates his
employment during the Transition Period, (iii) Brebach dies, or (iv) the Company notifies Brebach
of his material breach of the terms of this Agreement, the Release, or his Non-Disclosure Agreement
and, if curable, such breach is not cured by Brebach within 10 days of receipt of the Company’s
notification to Brebach of the breach, provided however, should any cure reasonably require more
than 10 days to cure after receipt of a notice of breach, Brebach shall not be in breach of this
Agreement if within 10 days after his receipt of notice he commences the cure and diligently
pursues it thereafter.

5. Payment. Subject to the conditions described in this paragraph 5 below, the
Company will make a lump-sum payment to Brebach in the amount of $25,000.00, less regular payroll
withholdings. In addition, if Brebach signs the Second Release in accordance with paragraph 2
above, subject to the other conditions described in this paragraph 5 below, (x) the Company will
make a lump-sum payment to Brebach in the amount of $120,000.00, less regular payroll withholdings,
and (y) if Brebach elects available continued coverage of benefits (COBRA) in accordance with
applicable laws and plans, the Company will pay the COBRA premiums for four months following the
Separation Date (or until COBRA benefits are no longer available to Brebach, if earlier).
Thereafter, COBRA continuation shall be at the sole expense of Brebach. Any lump-sum payments
payable hereunder will be paid to Brebach as soon as practical after expiration of the applicable
rescission period, consistent with the Company’s regular payroll cycle. The Company will make such
payments and pay such premiums under this paragraph 4 only if: (i) Brebach has not rescinded this
Agreement, the Release or the Second Release, as applicable, within the applicable rescission
period, and (ii) Brebach has not breached his obligations under this Agreement, the Release, the Second Release or the Non-Disclosure Agreement dated
December 31, 2003, between Brebach and the Company (“the Non-Disclosure Agreement”).

6. Retirement Plans. To the extent that Brebach is currently a participant in a
pension, profit-sharing, or other retirement savings plan sponsored by the Company, Brebach will be
entitled to withdraw from such plan and/or receive benefits at the times and under the terms and
conditions set forth in the plan.

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Following the Separation Date, the Company will make no further
contributions to any pension, profit-sharing, or retirement plan or any other benefits plans, on
behalf of Brebach.

7. Future References. It is Brebach’s responsibility to direct or cause to be directed
all future official requests for references concerning him to the Vice President, Human Resources,
of the Company, who will respond to such requests by confirming the dates of Brebach’s employment,
identifying the position he held, and at his request, confirming his base salary.

8. Stock Options. Brebach agrees and acknowledges that the options listed in this
paragraph below are his only options to purchase shares of the Company’s Common Stock and that such
options are exercisable only to the extent reflected in his applicable stock option agreement.
Brebach further agrees and acknowledges that his options to purchase the Company’s Common Stock
will lapse and cease to be outstanding as of 90 days after the Separation Date, unless previously
exercised in accordance with the terms of the Company’s 1992 Long-Term Incentive Plan and the
applicable option agreement.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Plan	 	Date of Grant	 	Exercise Price	 	Number of Shares
	1992
	 	 	12/31/03	 	 	$	32.7733	 	 	 	45,000	 
	1992
	 	 	8/2/04	 	 	$	28.7500	 	 	 	20,000	 
	1992
	 	 	11/15/04	 	 	$	32.0100	 	 	 	20,000	 
	1992
	 	 	11/21/05	 	 	$	47.4500	 	 	 	30,000	 

9. Non-Disclosure and Non-Solicitation Agreements.

     a. Confidential Information. Brebach acknowledges and affirms his continuing
obligation to comply with the terms and conditions of the Non-Disclosure Agreement.

     b. Agreement Not to Hire. During the Transition Period and for a period of 12
consecutive months after the Separation Date, Brebach shall not, directly or indirectly (including
without limitation as a proprietor, principal, agent, partner, officer, director, stockholder,
employee, member of any

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association, consultant or otherwise), hire, engage or solicit any employee
of the Company or induce or attempt to induce any employee of the Company to cease working for the
Company.

     c. Acknowledgment. Brebach hereby acknowledges that the provisions of this paragraph
9 are reasonable and necessary to protect the legitimate interests of the Company and that any
violation of this paragraph 9 by Brebach shall cause substantial and irreparable harm to the
Company that would not be quantifiable and for which no adequate remedy would exist at law and
accordingly injunctive relief will be available for any violation of this paragraph 9.

     d. Blue Pencil Doctrine. If the duration of or the scope of any business activity
covered by any provision of this paragraph 9 is in excess of what is determined to be valid and
enforceable under applicable law, such provision shall be construed to cover only that duration,
scope or activity that is determined to be valid and enforceable. Brebach hereby acknowledges that
this paragraph 9 shall be given the construction that renders its provisions valid and enforceable
to the maximum extent (not exceeding its express terms) possible under applicable law.

10. Confidentiality.

     a. General Standard. The provisions of this Agreement, the Release and the Second
Release (collectively “Confidential Separation Information”) will be treated by Brebach as
confidential. Accordingly, Brebach will not disclose Confidential Separation Information to anyone
at any time, except as provided in subparagraph 10(b) below.

     b. Exceptions.

(i) It will not be a violation of this Agreement for Brebach to disclose
Confidential Separation Information to his immediate family, his attorneys,
his accountants or tax advisors, or his financial planners.

(ii) It will not be a violation of this Agreement for Brebach to disclose to
employers and/or prospective employers that he is constrained from certain
activities as a result of the terms of paragraph 9 above. Nor will it be a
violation of this Agreement for Brebach to inform Company employees who ask
him about employment opportunities outside the Company that the terms of
paragraph 9 of this Agreement preclude him from engaging in certain
activities that could interfere with their employment with the Company.

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11. Records, Documents, and Property. Brebach acknowledges and represents that he has
delivered to the Company any and all Company records and any and all Company property in his
possession or under his control, including without limitation, manuals, books, blank forms,
documents, letters, memoranda, notes, notebooks, reports, printouts, computer disks, computer
tapes, data, tables, or calculations and all copies thereof, documents that in whole or in part
contain any trade secrets or confidential, proprietary, or other secret information of the Company
and all copies thereof, and keys, access cards, access codes, source codes, passwords, credit
cards, personal computers, telephones, and other electronic equipment belonging to the Company.

12. Non-disparagement. For a period of one year after the Separation Date, Brebach will
not defame or disparage the reputation, character, image, products, or services of the Company, or
the reputation or character of the Company’s directors or officers. The Company will instruct its
current directors and officers not to defame or disparage Brebach’s reputation and, for a period of
one year after the Separation Date, the Company will not authorize, encourage or permit any
director or officer of the Company to defame or disparage Brebach’s reputation.

13. Claims Against the Company.

     a. Non-recommendation. Brebach will not recommend or suggest to any potential
claimants or plaintiffs or their attorneys or agents that they initiate claims or lawsuits against
the Company, any of its affiliates or divisions, or any of its or their directors, officers,
employees, or agents, nor will Brebach voluntarily aid, assist or cooperate with any claimants or
plaintiffs or their attorneys or agents in any claims or lawsuits now pending or commenced in the future against the Company, any of
its affiliates or divisions, or any of its or their directors, officers, employees, or agents;
provided, however that this Agreement will not be interpreted or construed to prevent Brebach from
giving testimony in response to questions asked pursuant to a legally enforceable subpoena,
deposition notice, or other legal process, or during any legal proceeding or arbitrations involving
the Company, any of its affiliates or divisions, or any of its or their directors, officers,
employees, or agents, or from participating in any investigation by a governmental or law
enforcement agency.

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     b. Agreement to Assist and Cooperate. At the Company’s reasonable request and upon
reasonable notice, Brebach agrees that he will, at any future time, be available, with or without
subpoena, to assist the Company with respect to matters concerning which Brebach has or may have
knowledge as a result of or in connection with his employment by the Company. Such assistance may
include, without limitation, participating in interviews, reviewing documents or things, giving
depositions, testifying, or engaging in other reasonable activities in connection with any
litigation or investigation, with respect to matters that Brebach has or may have knowledge of by
virtue of his employment by or service to the Company or any related entity. In performing his
obligations under this paragraph 13(b) to testify or otherwise provide information, Brebach will
honestly, truthfully, forthrightly, and completely provide the information requested. Brebach will
comply with this Agreement upon notice from the Company that the Company or its attorneys believe
that his compliance would be helpful in the resolution of an investigation or the prosecution or
defense of claims.

14. Full Compensation. Brebach understands that the payments and other consideration
provided by the Company under this Agreement will fully compensate Brebach for and extinguish any
and all of the potential claims Brebach is releasing in the Release and the Second Release,
including without limitation, his claims for attorneys’ fees and costs and any and all claims for
any type of legal or equitable relief. The payments and other consideration provided hereunder
will be made in lieu of any further payments or compensation that Brebach would otherwise be
entitled to receive as an employee of the Company.

15. No Admission of Wrongdoing. Brebach understands that this Agreement does not
constitute an admission that the Company has violated any local ordinance, state or federal
statute, or principle of common law, or that the Company has engaged in any unlawful or improper
conduct toward Brebach. Brebach will not characterize this Agreement or the payment of any money
or other consideration in accordance with this Agreement as an admission that the Company has
engaged in any unlawful or improper conduct toward him or treated him unfairly.

16. Authority. Brebach represents and warrants that he has the authority to enter
into this Agreement, the Release and the Second Release, and that no causes of action, claims, or
demands released pursuant to

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this Agreement, the Release or the Second Release have been assigned
to any person or entity not a party to this Agreement, the Release or the Second Release.

17. Legal Representation. Brebach acknowledges that he has been advised by the
Company to consult with his own attorney before executing this Agreement, the Release and the
Second Release, that he has had a full opportunity to consider this Agreement, the Release and the
Second Release, that he has had a full opportunity to ask any questions that he may have concerning
this Agreement, the Release and the Second Release, or the settlement of his potential claims
against the Company, and that he has not relied upon any statements or representations made by the
Company or its attorneys, written or oral, other than the statements and representations that are
explicitly set forth in this Agreement, the Release, the Second Release, the stock option
agreements between Brebach and the Company and any qualified employee benefit plans sponsored by
the Company in which Brebach is a participant.

18. Assignment. This Agreement is binding on Brebach and on the Company and its
successors and assigns. The rights and obligations of the Company under this Agreement may be
assigned to a successor, including, but not limited to a purchaser of substantially all the
business or assets of the Company. No rights or obligations of Brebach hereunder may be assigned
by Brebach to any other person on entity.

19. Invalidity. In the event that any provision of this Agreement is determined by a
court of competent jurisdiction to be invalid, illegal, or unenforceable in any respect, such a
determination will not affect the validity, legality, or enforceability of the remaining provisions of this Agreement and the
remaining provisions of this Agreement will continue to be valid and enforceable, and any court of
competent jurisdiction may modify the objectionable provision so as to make it valid and
enforceable.

20. Entire Agreement. This Agreement, the Release, the Second Release, the
Non-Disclosure Agreement, the stock option agreements between Brebach and the Company, and any
qualified employee benefit plans sponsored by the Company in which Brebach is a participant are
intended to define the full extent of the legally enforceable undertakings of the parties, and no
promises or representations, written or oral, that are not set forth explicitly in this Agreement,
the Release, the Second Release, the Non-

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Disclosure Agreement, the stock option agreements between
Brebach and the Company, or any qualified employee benefit plans sponsored by the Company in which
Brebach is a participant are intended by either party to be legally binding. Except as provided
herein, this Agreement supercedes any and all prior agreements or understandings between the
parties.

21. Time to Consider Agreement. Brebach understands that he may take at least 21
calendar days to decide whether to sign this Agreement and the Release, which 21-day period will
start on the day after the date on which Brebach first received copies of this Agreement and, the
Release.. Brebach represents that if he signs this Agreement and the Release before the expiration
of the 21-day period, it is because he has decided that he does not need any additional time to
decide whether to sign them. Brebach understands that he may not sign the Second Release prior to
the Separation Date

22. Right to Rescind or Revoke. Brebach understands that he has the right to rescind
or revoke this Agreement or the Release for any reason within fifteen (15) calendar days after he
signs them. Brebach understands that this Agreement will not become effective or enforceable
unless and until he has not rescinded this Agreement or the Release and the rescission period has
expired. Brebach understands that if he wishes to rescind, the rescission must be in writing and
hand-delivered or mailed to the Company. If hand-delivered, the rescission must be (a) addressed
to Richard Deal, Fair Isaac Corporation, 901 Marquette Avenue, Suite 3200, Minneapolis, MN 55402
and (b) delivered to Richard Deal within the 15-day period. If mailed, the rescission must be (a) postmarked within the 15-day period and (b)
addressed to Richard Deal, Fair Isaac Corporation, 901 Marquette Avenue, Suite 3200, Minneapolis,
MN 55402.

23. Headings. The descriptive headings of the paragraphs and subparagraphs of this
Agreement are inserted for convenience only and do not constitute a part of this Agreement.

24. Counterparts. This Agreement may be executed simultaneously in two or more
counterparts, each of which will be deemed an original, but all of which together will constitute
one and the same instrument.

25. Governing Law. This Agreement, the Release and the Second Release will be
interpreted and construed in accordance with, and any dispute or controversy arising from any
breach or asserted breach

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of this Agreement, the Release or the Second Release, will be governed by
the laws of the State of Minnesota.

     IN WITNESS WHEREOF, the parties have executed this Transition Agreement on the date stated
below.

	 	 	 	 	 
	 	 	 
	Dated: November 24, 2006 	/s/  Gresham T. Brebach, Jr.
 	 
	 	Gresham T. Brebach, Jr. 	 
	 	 	 
	 

	 	 	 	 	 
	Dated: December 8, 2006 	FAIR ISAAC CORPORATION

 	 
	 	BY:  	

Charles M. Osborne
 	 
	 	Its:	 Interim Chief Executive Officer 	 
	 	 	and Chief Financial Officer 	 
	 

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CONFIDENTIAL

EXHIBIT A

RELEASE BY BREBACH

Definitions. I intend all words used in this Release to have their plain meanings in
ordinary English. Specific terms that I use in this Release have the following meanings:

	 	A.	 	I, me, and my include both me and anyone who has or
obtains any legal rights or claims through me.
	 
	 	B.	 	FIC means Fair Isaac Corporation, any company related to Fair Isaac
Corporation in the present or past (including without limitation, its predecessors,
parents, subsidiaries, affiliates, joint venture partners, and divisions), and any
successors of Fair Isaac Corporation.
	 
	 	C.	 	Company means FIC; the present and past officers, directors,
committees, shareholders, and employees of FIC; any company providing insurance to FIC
in the present or past; the present and past fiduciaries of any employee benefit plan
sponsored or maintained by FIC (other than multiemployer plans); the attorneys for FIC;
and anyone who acted on behalf of FIC or on instructions from FIC.
	 
	 	D.	 	Agreement means the Transition Agreement between FIC and me that I am
executing on the same day that I am executing this Release, including all of the
documents attached to the Agreement.
	 
	 	E.	 	My Claims mean all of my rights that I now have to any relief of any
kind from the Company, including without limitation:

	 	1.	 	all claims arising out of or relating to my employment with FIC
or the termination of that employment;
	 
	 	2.	 	all claims arising out of or relating to the statements,
actions, or omissions of the Company;
	 
	 	3.	 	all claims for any alleged unlawful discrimination, harassment,
retaliation or reprisal, or other alleged unlawful practices arising under any
federal, state, or local statute, ordinance, or regulation, including without
limitation, claims under Title VII of the Civil Rights Act of 1964, the Age
Discrimination in Employment Act, the Americans with Disabilities Act, 42
U.S.C. § 1981, the Employee Retirement Income Security Act, the Equal Pay Act,
the Worker Adjustment and Retraining Notification Act, the Sarbanes-Oxley Act,
the Family and Medical Leave Act, Massachusetts General Law chapter 151B, the
Minnesota Human Rights Act, the Fair Credit Reporting Act, the Minneapolis
Civil Rights Ordinance, and workers’ compensation non-interference or
non-retaliation statutes (such as Minn. Stat. § 176.82);
	 
	 	4.	 	all claims for alleged wrongful discharge; breach of contract;
breach of implied contract; failure to keep any promise; breach of a covenant
of good faith and fair dealing; breach of fiduciary duty; estoppel; my
activities, if any, as a “whistleblower”; defamation; infliction of emotional
distress; fraud; misrepresentation; negligence; harassment; retaliation or
reprisal; constructive discharge; assault; battery; false imprisonment;
invasion of privacy; interference

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with contractual or business relationships; any other wrongful employment
practices; and violation of any other principle of common law;

	 	5.	 	all claims for compensation of any kind, including without
limitation, bonuses, commissions, stock-based compensation or stock options,
vacation pay, perquisites, and expense reimbursements;
	 
	 	6.	 	all claims for back pay, front pay, reinstatement, other
equitable relief, compensatory damages, damages for alleged personal injury,
liquidated damages, and punitive damages; and
	 
	 	7.	 	all claims for attorneys’ fees, costs, and interest.

However, My Claims do not include any claims that the law does not allow to
be waived; any claims that may arise after the date on which I sign this Release; or
any claims for breach of the Agreement.

Agreement to Release My Claims. I will receive consideration from FIC as set forth in the
Agreement if I sign and do not rescind this Release as provided below. I understand and
acknowledge that that consideration is in addition to anything of value that I would be entitled to
receive from FIC if I did not sign this Release or if I rescinded this Release. In exchange for
that consideration I give up and release all of My Claims. I will not make any demands or claims
against the Company for compensation or damages relating to My Claims. The consideration that I am
receiving is a fair compromise for the release of My Claims.

Additional Agreements and Understandings. Even though FIC will provide consideration for
me to settle and release My Claims, the Company does not admit that it is responsible or legally
obligated to me. In fact, the Company denies that it is responsible or legally obligated to me for
My Claims, denies that it engaged in any unlawful or improper conduct toward me, and denies that it
treated me unfairly.

Confidentiality. I understand that the terms of this Release are confidential and that I
may not disclose those terms to any person except under the circumstances described in the
Agreement.

Advice to Consult with an Attorney. I understand and acknowledge that I am hereby being
advised by the Company to consult with an attorney prior to signing this Release. My decision
whether to sign this Release is my own voluntary decision made with full knowledge that the Company
has advised me to consult with an attorney.

Period to Consider the Release. I understand that I have 21 days from the day that I
receive this Release, not counting the day upon which I receive it, to consider whether I wish to
sign this Release. If I sign this Release before the end of the 21-day period, it will be my
voluntary decision to do so because I have decided that I do not need any additional time to decide
whether to sign this Release. I also agree that any changes made to this Release or to the
Agreement before I sign it, whether material or immaterial, will not restart the 21-day period.

My Right to Rescind this Release. I understand that I may rescind this Release at any time
within 15 days after I sign it, not counting the day upon which I sign it. This Release will not
become effective or enforceable unless and until the 15-day rescission period has expired without
my rescinding it.

Procedure for Accepting or Rescinding the Release. To accept the terms of this Release, I
must deliver the Release, after I have signed and dated it, to FIC by hand or by mail within the
21-day period that I

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have to consider this Release. To rescind my acceptance, I must deliver a written, signed
statement that I rescind my acceptance to FIC by hand or by mail within the 15-day rescission
period. All deliveries must be made to FIC at the following address:

Richard Deal

Fair Isaac Corporation

901 Marquette Avenue

Suite 3200

Minneapolis, MN 55402

If I choose to deliver my acceptance or the rescission by mail, it must be postmarked within the
period stated above and properly addressed to FIC at the address stated above.

Interpretation of the Release. This Release should be interpreted as broadly as possible
to achieve my intention to resolve all of My Claims against the Company. If this Release is held
by a court to be inadequate to release a particular claim encompassed within My Claims, this
Release will remain in full force and effect with respect to all the rest of My Claims.

My Representations. I am legally able and entitled to receive the consideration being
provided to me in settlement of My Claims. I have not been involved in any personal bankruptcy or
other insolvency proceedings at any time since I began my employment with FIC. No child support
orders, garnishment orders, or other orders requiring that money owed to me by FIC be paid to any
other person are now in effect.

I have read this Release carefully. I understand all of its terms. In signing this Release, I
have not relied on any statements or explanations made by the Company except as specifically set
forth in the Agreement. I am voluntarily releasing My Claims against the Company. I intend this
Release and the Agreement to be legally binding.

	 	 	 	 	 
	 	 	 
	Dated: November 24, 2006 	/s/ Gresham T. Brebach, Jr.
 	 
	 	Gresham T. Brebach, Jr. 	 
	 	 	 

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CONFIDENTIAL

EXHIBIT B

SECOND RELEASE BY BREBACH

Definitions. I intend all words used in this Second Release to have their plain meanings
in ordinary English. Specific terms that I use in this Second Release have the following meanings:

	 	A.	 	I, me, and my include both me and anyone who has or
obtains any legal rights or claims through me.
	 
	 	B.	 	FIC means Fair Isaac Corporation, any company related to Fair Isaac
Corporation in the present or past (including without limitation, its predecessors,
parents, subsidiaries, affiliates, joint venture partners, and divisions), and any
successors of Fair Isaac Corporation.
	 
	 	C.	 	Company means FIC; the present and past officers, directors,
committees, shareholders, and employees of FIC; any company providing insurance to FIC
in the present or past; the present and past fiduciaries of any employee benefit plan
sponsored or maintained by FIC (other than multiemployer plans); the attorneys for FIC;
and anyone who acted on behalf of FIC or on instructions from FIC.
	 
	 	D.	 	Agreement means the Transition Agreement between FIC and me that I
executed on November 24, 2006, including all of the documents attached to the
Agreement.
	 
	 	E.	 	My Claims mean all of my rights that I now have to any relief of any
kind from the Company, including without limitation:

	 	1.	 	all claims arising out of or relating to my employment with FIC
or the termination of that employment;
	 
	 	2.	 	all claims arising out of or relating to the statements,
actions, or omissions of the Company;
	 
	 	3.	 	all claims for any alleged unlawful discrimination, harassment,
retaliation or reprisal, or other alleged unlawful practices arising under any
federal, state, or local statute, ordinance, or regulation, including without
limitation, claims under Title VII of the Civil Rights Act of 1964, the Age
Discrimination in Employment Act, the Americans with Disabilities Act, 42
U.S.C. § 1981, the Employee Retirement Income Security Act, the Equal Pay Act,
the Worker Adjustment and Retraining Notification Act, the Sarbanes-Oxley Act,
the Family and Medical Leave Act, Massachusetts General Law chapter 151B, the
Minnesota Human Rights Act, the Fair Credit Reporting Act, the Minneapolis
Civil Rights Ordinance, and workers’ compensation non-interference or
non-retaliation statutes (such as Minn. Stat. § 176.82);
	 
	 	4.	 	all claims for alleged wrongful discharge; breach of contract;
breach of implied contract; failure to keep any promise; breach of a covenant
of good faith and fair dealing; breach of fiduciary duty; estoppel; my
activities, if any, as a “whistleblower”; defamation; infliction of emotional
distress; fraud; misrepresentation; negligence; harassment; retaliation or
reprisal; constructive discharge; assault; battery; false imprisonment;
invasion of privacy; interference

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with contractual or business relationships; any other wrongful employment
practices; and violation of any other principle of common law;

	 	5.	 	all claims for compensation of any kind, including without
limitation, bonuses, commissions, stock-based compensation or stock options,
vacation pay, perquisites, and expense reimbursements;
	 
	 	6.	 	all claims for back pay, front pay, reinstatement, other
equitable relief, compensatory damages, damages for alleged personal injury,
liquidated damages, and punitive damages; and
	 
	 	7.	 	all claims for attorneys’ fees, costs, and interest.

However, My Claims do not include any claims that the law does not allow to
be waived; any claims that may arise after the date on which I sign this Second
Release; or any claims for breach of the Agreement.

Agreement to Release My Claims. I will receive consideration from FIC as set forth in the
Agreement if I sign and do not rescind this Second Release as provided below. I understand and
acknowledge that that consideration is in addition to anything of value that I would be entitled to
receive from FIC if I did not sign this Second Release or if I rescinded this Second Release. In
exchange for that consideration I give up and release all of My Claims. I will not make any
demands or claims against the Company for compensation or damages relating to My Claims. The
consideration that I am receiving is a fair compromise for the release of My Claims.

Additional Agreements and Understandings. Even though FIC will provide consideration for
me to settle and release My Claims, the Company does not admit that it is responsible or legally
obligated to me. In fact, the Company denies that it is responsible or legally obligated to me for
My Claims, denies that it engaged in any unlawful or improper conduct toward me, and denies that it
treated me unfairly.

Confidentiality. I understand that the terms of this Second Release are confidential and
that I may not disclose those terms to any person except under the circumstances described in the
Agreement.

Advice to Consult with an Attorney. I understand and acknowledge that I am hereby being
advised by the Company to consult with an attorney prior to signing this Second Release. My
decision whether to sign this Second Release is my own voluntary decision made with full knowledge
that the Company has advised me to consult with an attorney.

Period to Consider the Second Release. I understand that I have 21 days after the
Separation Date (as defined in the Agreement) to consider whether I wish to sign this Second
Release. If I sign this Second Release before the end of the 21-day period, it will be my
voluntary decision to do so because I have decided that I do not need any additional time to decide
whether to sign this Second Release. I understand and agree that I may not sign this Second
Release prior to the Separation Date. I also agree that any changes made to this Second Release
before I sign it, whether material or immaterial, will not restart the 21-day period.

My Right to Rescind this Second Release. I understand that I may rescind this Second
Release at any time within 15 days after I sign it, not counting the day upon which I sign it.
This Second Release will not become effective or enforceable unless and until the 15-day rescission
period has expired without my rescinding it.

15

 

Procedure for Accepting or Rescinding the Second Release. To accept the terms of this
Second Release, I must deliver the Second Release, after I have signed and dated it, to FIC by hand
or by mail within the 21-day period that I have to consider this Second Release. To rescind my
acceptance, I must deliver a written, signed statement that I rescind my acceptance to FIC by hand
or by mail within the 15-day rescission period. All deliveries must be made to FIC at the
following address:

Richard Deal

Fair Isaac Corporation

901 Marquette Avenue

Suite 3200

Minneapolis, MN 55402

If I choose to deliver my acceptance or the rescission by mail, it must be postmarked within the
period stated above and properly addressed to FIC at the address stated above.

Interpretation of the Second Release. This Second Release should be interpreted as broadly
as possible to achieve my intention to resolve all of My Claims against the Company. If this
Second Release is held by a court to be inadequate to release a particular claim encompassed within
My Claims, this Second Release will remain in full force and effect with respect to all the rest of
My Claims.

My Representations. I am legally able and entitled to receive the consideration being
provided to me in settlement of My Claims. I have not been involved in any personal bankruptcy or
other insolvency proceedings at any time since I began my employment with FIC. No child support
orders, garnishment orders, or other orders requiring that money owed to me by FIC be paid to any
other person are now in effect.

I have read this Second Release carefully. I understand all of its terms. In signing this Second
Release, I have not relied on any statements or explanations made by the Company except as
specifically set forth in the Agreement. I am voluntarily releasing My Claims against the Company.
I intend this Second Release, the Agreement and the Release to be legally binding.

	 	 	 	 	 
	 	 	 
	Dated: January 2, 2007 	/s/ Gresham T. Brebach, Jr.
 	 
	 	Gresham T. Brebach, Jr. 	 
	 	 	 
	 

16exv10w2

 

Exhibit 10.2

Exhibit D1

Fair Isaac Compensation Committee

Action by Written Consent

December 18, 2006

RSU Agreement — U.S.

FAIR ISAAC CORPORATION

Terms and Conditions of Restricted Stock Units Agreement

          These are the terms and conditions applicable to the restricted stock units (the “Award”)
granted by Fair Isaac Corporation, a Delaware corporation (“Fair Isaac”), to you, the participant,
listed on the Notice of Grant of Award attached hereto as the cover page (the “Cover Page”),
effective as of the date specified on the Cover Page. The Cover Page together with these Terms and
Conditions of Restricted Stock Units Agreement constitute the Restricted Stock Units Agreement (the
“Agreement”). The Award is granted pursuant to the terms of Fair Isaac’s 1992 Long-term Incentive
Plan (the “Plan”).

	 	 	 
	Vesting Schedule

	 	The shares subject to the Award (the “Shares”) will vest on the
vesting dates specified on the Cover Page. In addition, the Shares
will vest in full in the event that:
	 
	 	 
	 

	 	•    your employment with Fair Isaac (or any subsidiary)
terminates by reason of death or Disability, or

	 
	 	 
	 

	 	•    any written employment agreement between you and Fair Isaac
provides for acceleration of this Award upon a change in control of
Fair Isaac or upon any other specified event or combination of
events.

	 
	 	 
	Issuance Schedule

	 	The Shares in which you vest in accordance with the vesting
schedule specified on the Cover Page will be issued as soon as
practicable following the vesting date. The issuance of the Shares
will be subject to the collection of the applicable Withholding
Taxes. In no event will any fractional shares be issued.
	 
	 	 
	Cessation of Service

	 	Should you cease employment with Fair Isaac (or any subsidiary) for
any reason (other than death or Disability) prior to vesting in one
or more Shares, then except to the extent otherwise provided in any
written agreement between you and Fair Isaac, the Award will be
immediately forfeited with respect to those unvested Shares, and
the number of restricted stock units will be reduced accordingly.
You will thereupon cease to have any right or entitlement to
receive any Shares under those forfeited units.
	 
	 	 
	Leaves of Absence

	 	For purposes of this Award, your service does not terminate when
you go on a military leave, a sick leave or another bona fide leave
of absence, if the leave was approved by Fair Isaac in writing.
Unless you return to active work upon termination of your approved
leave, your service will be treated as terminating on the later of
90 days after you went on leave or the date that your right to
return to active work is guaranteed by law or by a contract. Fair
Isaac will determine which leaves count for this purpose.
	 
	 	 
	Collection of

	 	Until such time as Fair Isaac provides you with notice to the
contrary, Fair

 

 

	 	 	 
	Withholding Taxes

	 	Isaac will collect the Withholding Taxes required to
be withheld with respect to the issuance of the vested Shares
hereunder through an automatic Share withholding procedure (the
“Share Withholding Method”). Under such procedure, Fair Isaac will
withhold, at the time of such issuance, a portion of the Shares
with a Fair Market Value (measured as of the issuance date)
sufficient to cover the amount of such taxes; provided, however,
that the amount of any Shares so withheld shall not exceed the
amount necessary to satisfy Fair Isaac’s required tax withholding
obligations using the minimum statutory withholding rates for
federal and state tax purposes that are applicable to supplemental
taxable income. Fair Isaac will notify you in writing in the event
the Share Withholding Method is no longer available.
	 
	 	 
	 

	 	Should any Shares be issued at a time when the Share Withholding
Method is not available, then the Withholding Taxes required to be
withheld with respect to such Shares will be collected from you
through one of the following alternatives:
	 
	 	 
	 

	 	•    delivery of your authorization to E*Trade to transfer to
Fair Isaac from your account at E*Trade the amount of such
Withholding Taxes,

	 
	 	 
	 

	 	•    the use of the proceeds from a next-day sale of the Shares
issued to you, provided and only if (i) such a sale is permissible
under Fair Isaac’s trading policies governing the sale of Common
Stock, (ii) you make an irrevocable commitment, on or before the
vesting date for those Shares, to effect such sale of the Shares
and (iii) the transaction is not otherwise deemed to constitute a
prohibited loan under Section 402 of the Sarbanes-Oxley Act of
2002, or

	 
	 	 
	 

	 	•    any other method permitted by Fair Isaac.

	 
	 	 
	Limited 

Transferability

	 	Prior to actual receipt of the Shares which vest hereunder, you may
not transfer any interest in the Award or the underlying Shares.
Any Shares which vest hereunder but which otherwise remain unissued
at the time of your death may be transferred pursuant to the
provisions of your will or the laws of inheritance or to a
beneficiary designated by you pursuant to a written designation
filed with Fair Isaac on the proper form.
	 
	 	 
	Stockholder Rights

	 	You will not have any stockholder rights, including voting or
dividend rights, with respect to the Shares subject to the Award
until you become the record holder of those Shares following their
actual issuance upon Fair Isaac’s collection of the applicable
Withholding Taxes.
	 
	 	 
	Adjustment in Shares

	 	In the event of any adjustments to the Common Stock as described in
Section 10.1 of the Plan, equitable adjustments shall be made to
the total number and/or class of securities issuable pursuant to
this Award as the Committee shall deem appropriate.
	 
	 	 
	Compliance with
Laws and
Regulations

	 	The issuance of shares of Common Stock pursuant to the Award will
be subject to compliance by Fair Isaac and you with all applicable
requirements of law relating thereto and with all applicable
regulations of any stock exchange on which the Common Stock may be
listed for trading at the time of such issuance

-2-

 

	 	 	 
	Notices

	 	Any notice required to be given or delivered to Fair Isaac under
the terms of this Agreement will be delivered by e-mail to
stockadministration@fairisaac.com. Any notice required to be given
or delivered to you will be delivered by e-mail to your e-mail
address at Fair Isaac. All notices will be deemed effective upon
electronic delivery.
	 
	 	 
	Successors and
Assigns

	 	Except to the extent otherwise provided in this Agreement, the
provisions of this Agreement will inure to the benefit of, and be
binding upon, Fair Isaac and its successors and assigns and you,
your assigns, the legal representatives, heirs and legatees of your
estate and any beneficiaries of the Award designated by you.
	 
	 	 
	Construction

	 	This Agreement and the Award evidenced hereby are made and granted
pursuant to the Plan and are in all respects limited by and subject
to the terms of the Plan. If there is any discrepancy between the
provisions of this Agreement and the Plan, the provisions of the
Plan will govern. All decisions of the Committee with respect to
any question or issue arising under the Plan or this Agreement will
be conclusive and binding on all persons having an interest in the
Award.
	 
	 	 
	Other Agreements

	 	This Agreement, the Plan and any written agreement between you and
Fair Isaac (or any subsidiaries) providing for acceleration of
awards granted to you by Fair Isaac upon a change in control of
Fair Isaac constitute the entire understanding between you and Fair
Isaac regarding this Award. Any other prior agreements,
commitments or negotiations concerning this Award are superseded.
This Agreement may be amended only in writing.
	 
	 	 
	Governing Law

	 	The interpretation, performance and enforcement of this Agreement
will be governed by the laws of the State of Delaware without
resort to that State’s conflict-of-laws rules.
	 
	 	 
	Employment At Will

	 	Nothing in this Agreement or in the Plan will confer upon you any
right to continue in service for any period of specific duration or
interfere with or otherwise restrict in any way the rights of Fair
Isaac (or any subsidiary) or your rights, which rights are hereby
expressly reserved by each, to terminate your employment at any
time for any reason, with or without cause, subject to applicable
law and the terms of any written employment agreement signed by you
and Fair Isaac (or any subsidiary).
	 
	 	 
	Further Instruments

	 	The parties agree to execute such further instruments and to take
such further action as may be reasonably necessary to carry out the
purposes and intent of this Agreement.
	 
	 	 
	Electronic Delivery

	 	Fair Isaac may deliver any documents related to the Award, the Plan
or future awards that may be granted under the Plan by electronic
means. Such means of electronic delivery include, but do not
necessarily include, the delivery of a link to a Fair Isaac
intranet or the internet site of a third party involved in
administering the Plan, the delivery of the documents via e-mail or
such other means of electronic delivery specified by Fair Isaac.
You hereby acknowledge that you have read this provision and
consent to the electronic delivery of the documents. You
acknowledge that you may receive from Fair Isaac a paper copy of
any documents delivered electronically at no cost to you by
contacting Fair Isaac. You further

-3-

 

	 	 	 
	 

	 	acknowledge that you will be
provided with a paper copy of any documents if the attempted
electronic delivery of such documents fails. Similarly, you
understand that you must provide Fair Isaac with a paper copy of
any documents if the attempted electronic delivery of such
documents fails.
	 
	 	 
	Definitions

	 	“Committee” means the committee acting as administrator of the Plan.
“Common Stock” means shares of Fair Isaac’s common stock.

	 
	 	 
	 

	 	
“Disability” means your inability to engage in any substantial
gainful activity by reason of a medically determinable, physical or
mental impairment which can be expected to result in death or which
has lasted (or can be expected to last) for a continuous period of
not less than 12 months.

	 
	 	 
	 

	 	“Fair Market Value” per share of Common Stock on any relevant date
means the closing price per share of Common Stock on the New York
Stock Exchange as determined by the Committee.
	 
	 	 
	 

	 	“Withholding Taxes” means (i) the employee portion of the federal,
state and local employment taxes required to be withheld by Fair
Isaac in connection with the vesting of the shares of Common Stock
under the Award and (ii) the federal, state and local income taxes
required to be withheld by Fair Isaac in connection with the
issuance of those vested shares.

          By accepting this Award in the manner prescribed by Fair Isaac, you agree to all the terms and
conditions described in the Agreement and in the Plan.

-4-

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