Document:

exv10w3

Exhibit 10.3

MSD

SPECIAL SEPARATION PROGRAM

FOR

“SEPARATED” EMPLOYEES

Eligible Employees: Employees of Merck Sharp & Dohme Corp. (and certain of its
subsidiaries) who are not subject to a collective bargaining agreement and:

(1) who experience a Separation From Service (as defined in the Separation Benefits Plan) on or
between January 1, 2009 through December 31, 2011; and

(2) who, as of their Separation Date are

	 	•	 	Less than age 49; or
	 
	 	•	 	At least age 49 but not yet age 64 with less than 9 years of Credited
Service

Effective Date:      As of November 3, 2009

Separated Employees

Effective as of November 3, 2009

Revised March 15, 2010

 

 

This document summarizes the benefits for which a “Separated Employee” may be eligible under the
Special Separation Program and other employee benefit plans and programs of Merck Sharp &
Dohme,Corp. (“MSD”). Unless otherwise noted below, the terms and conditions of MSD’s employee
benefit plans and programs applicable on an employee’s termination of employment from the Employer
are as described in the applicable sections of the current MSD Benefits Book (and applicable
summaries of material modification) previously provided to you or provided to you with this
Brochure, as such plans and programs (and the applicable sections of the MSD Benefits Book) may be
amended from time to time. (A copy of the applicable sections of the MSD Benefits Book (and
applicable summaries of material modification) can be obtained on line at http://hr.merck.com or
www.merck.com/benefits or by calling the Merck Benefits Service Center at 1-800-666-3725).
However, to the extent that the terms below differ from those described in the applicable sections
of the current MSD Benefits Book (and applicable summaries of material modification), this
communication constitutes a summary of material modifications and should be kept with that book.

“Separated Employees” are certain nonunionized employees of the Employer

(1) who experience a Separation From Service (as that term is defined in the Separation
Benefits Plan) on or between January 1, 2009 through December 31, 2011; and

(2) who, as of their Separation Date, is:

	 	•	 	Less than age 49 or
	 
	 	•	 	At least age 49 but not yet age 64 with less than nine years of Credited
Service

Separated Employees are only those employees who are designated by MSD as “Separated Employees.”
“Separated Employees” do not include employees who terminate employment in any way that does not
constitute a Separation From Service as determined by MSD, including employees who resign for any
reason. Benefits described in this Brochure only apply to Separated Employees and do not apply to
any other employees of Merck or its subsidiaries or affiliates, including the Employer.

If you have been designated as a Separated Employee, MSD will provide you with a separation letter
(the “Separation Letter”) that will describe the Special Separation Program benefits for which you
are eligible and include a release of legal claims against Merck and its subsidiaries and
affiliates, including the Employer, and may also include other terms, such as non-solicitation and
non-competition provisions, as MSD in its sole discretion decides to include. In order to receive
the benefits under the Special Separation Program, you must sign and return the Separation Letter
by the date stated in the letter (the “Separation Letter Return Date”) and, if a revocation period
is applicable to you, not revoke the letter within the revocation period.

Separated Employees

Effective as of November 3, 2009

Revised March 15, 2010

2

 

Special Separation Program

All benefits under this Special Separation Program are contingent upon the Separated Employee
signing (and, if a revocation period is applicable, not revoking) the Separation Letter. They
consist of:

	 	•	 	Separation Pay
	 
	 	•	 	Outplacement Services
	 
	 	•	 	Eligibility for continued medical, dental and life insurance benefits
	 
	 	•	 	Eligibility for a special payment in lieu of an AIP/EIP bonus for the performance year
in which his or her Separation Date occurs if his or her Separation Date occurs after June
30 and on or before December 31 of that performance year
	 
	 	•	 	Eligibility for extended use of the day care center

Separation Pay, Outplacement Benefits and continued medical, dental and life insurance benefits are
described in the Separation Plan SPD distributed with this Brochure.

This Brochure describes the following:

	 	•	 	the eligibility for extended use of the day care center, if applicable, under the
Special Separation Program in exchange for signing and not revoking the Separation Letter;
	 
	 	•	 	the benefits for those Separated Employees who do not sign, or who sign and, if a
revocation period is applicable to them, later revoke, the Separation Letter; and
	 
	 	•	 	the terms and conditions of certain MSD benefit plans and programs as they apply to any
separated employee without regard to whether they sign the Separation Letter.

Medical (including Prescription Drug) and Dental

Medical (including Prescription Drug) and Dental — If You Do Not Sign the Separation Letter

If you do not sign the Separation Letter (or if a revocation period is applicable to you, you
revoke the Separation Letter), your medical and dental coverage options in effect on your
Separation Date will continue under MSD’s medical and dental plans (as they may be amended from
time to time) until the end of the month in which your Separation Date occurs; provided, however,
if your Separation Date occurs on or before December 31, 2009, such coverage will continue until
the end of the month following the month in which your Separation Date occurs. At the end of that
period, you will be eligible to elect to continue your coverage in accordance with COBRA for up to
18 months from your

 Separated Employees

Effective as of November 3, 2009

Revised March 15, 2010

3

 

Separation Date. If you have no medical and/or dental coverage under MSD’s medical and dental
plans on your Separation Date, you will not have medical and/or dental coverage, as applicable,
after your Separation Date nor will you be eligible to elect such coverage under COBRA.

Special Separation Program — Medical (including Prescription Drug) and Dental — If You Sign the
Separation Letter

Under the Special Separation Program, if you sign the Separation Letter (and if a revocation period
is applicable to you, do not revoke the Separation Letter), you will be eligible to continue
medical and dental coverage under MSD’s plans (as they may be amended from time to time) for the
Separation Pay Period as more fully described in the Separation Plan SPD. If the Separation Pay
Period is less than six months, you may continue medical and dental coverage for six months. Your
contributions to continue such coverage will be the same as the contributions for active employees,
as they may change from time to time and will be payable to MSD (or its designee) in the time and
manner specified by MSD from time to time. If you do not pay the required contributions to MSD (or
its designee) in the time and manner specified by MSD from time to time, your coverage will be
terminated and it will not be reinstated. Provided you have paid the required contributions to
continue coverage, at the end of the Separation Pay Period or, if the Separation Pay Period is less
than 6 months, at the end of the 6-month period during which medical and dental coverages are
provided, you may elect to continue your coverage in accordance with COBRA for up to an additional
18 months.

Continuation of medical and dental coverages under the Special Separation Program is subject to the
early forfeiture provisions described in the Separation Plan SPD.

Life Insurance

Life Insurance — If You Do Not Sign the Separation Letter

If you do not sign the Separation Letter (or if a revocation period is applicable to you, you
revoke the Separation Letter), your employee group term life, dependent life, and survivor income
protection will continue for 31 days after your Separation Date. After this 31-day period you may
elect to continue these coverages at the level in effect on your Separation Date under MSD’s Life
Insurance Plan (as it may be amended from time to time). You may continue these coverages at your
cost for up to the earlier of 30 months from your Separation Date or age 65. If you wish to
continue your survivor income protection and/or your dependent life coverage, you must continue
your employee group term life (basic and optional). To continue your life insurance coverage(s)
you must contact the Merck Benefits Service Center (1-800-666-3725) within 31 days after your
Separation Letter Return Date and you must pay

 Separated Employees

Effective as of November 3, 2009

Revised March 15, 2010

4

 

the applicable premium in the time and manner specified by MSD. If you fail to pay the premium in
the time and manner specified by MSD, your coverage(s) will be terminated and they will not be
reinstated. If you are interested in continuing your coverage(s), contact the Merck Benefits
Service Center (1-800-666-3725) for more information.

Your accidental death and dismemberment coverage ends on your Separation Date.

A full month’s premium may be deducted from your paycheck for the month in which your Separation
Date occurs.

Special Separation Program — Life Insurance — If You Sign the Separation Letter

Under the Special Separation Program, if you sign the Separation Letter (and if a revocation period
is applicable to you, do not revoke the Separation Letter), your basic employee group term life
insurance coverage will continue under MSD’s Life Insurance Plan (as it may be amended from time to
time) until the earlier of (i) last day of the month in which the Separation Pay Period ends, or,
if the Separation Pay Period is less than 6 months, then for 6 months beginning on the first of the
month coincident with or following your Separation Date as more fully described in the Separation
Plan SPD, or (ii) age 65. If your basic employee group term life coverage is under the “Old
Format” (that is, equal to 2x base pay), your contributions to continue such coverage will be the
same as the contributions for active employees, as they may change from time to time and will be
payable to MSD (or its designee) in the time and manner specified by MSD from time to time. If you
do not pay the required contributions to MSD (or its designee) in the time and manner specified by
MSD from time to time, your coverage will default to “New Format” (that is 1x base pay). No
contributions are required if your basic employee group term life coverage is under the “New
Format” (that is 1x base pay). Continuation of basic life insurance under the Special Separation
Program is subject to the early forfeiture provisions described in the Separation Plan SPD.

If you sign the Separation Letter (and if a revocation period is applicable to you, do not revoke
the Separation Letter) and your basic life insurance continues, you may also continue optional term
life, dependent life and survivor income protection at your cost for up to the earlier of 30 months
from your Separation Date or age 65. If you wish to continue your survivor income protection and/or
your dependent life coverage, you must continue your optional employee group term life. To continue
your optional life insurance coverage(s) you must contact the Merck Benefits Service Center
(1-800-666-3725) within 31 days after your Separation Letter Return Date and you must pay the
applicable premium in the time and manner specified by MSD. If you fail to pay the premium in the
time and manner specified by MSD, your optional coverage(s) will be terminated and

 Separated Employees

Effective as of November 3, 2009

Revised March 15, 2010

5

 

they will not be reinstated. If you are interested in continuing your optional coverage(s),
contact the Merck Benefits Service Center (1-800-666-3725) for more information. After the
Separation Pay Period, you may continue your basic employee group term life coverage at your cost
for the remainder of the period ending at the earlier of the expiration of the 30-month period from
your Separation Date or age 65. At that time, if you are interested in continuing your basic life
coverage, you must contact the Merck Benefits Service Center (1-800-666-3725).

If your basic life insurance ends as a result of the early forfeiture provisions of the Separation
Benefits Plan, you will not be allowed to continue your optional coverages under the 30-month
continuation provisions. See the life insurance section of the MSD Benefits Book (and applicable
summaries of material modification) for description of conversion rights.

The chart below is provided for your convenience to compare the medical, dental and life insurance
benefits offered under the Special Separation Program to the normal plan provisions.

	 	 	 	 	 
	 	 	Regular Plan Provisions	 	Special Separation Program (if sign letter)
	Medical, Dental, 

Prescription Drug

	 	If Separation Date
is on or after
1/1/2010: Benefits
continue to the end of
the month in which your
Separation Date occurs;
eligible for COBRA
afterward

If Separation Date is
on/before 12/31/2009:
Benefits continue to
the end of the month
following the month in
which your Separation
Date occurs; eligible
for COBRA afterward
	 	Benefits continue to
the end of the month
in which the
Separation Pay
Period ends (or a
minimum of 6
months), provided
you pay the
applicable employee
contributions in the
time and manner
specified by MSD (or
its designee);
eligible for COBRA
afterward
	 
	 	 	 	 
	Basic Employee
Term Life Insurance
(New Format-maximum
1x base pay; Old
Format -2x base pay)

	 	Coverage at level
in effect on Separation
Date continues for 31
days; you may elect to
continue coverage for
up to 30 months (but
not beyond age 65) from
your Separation Date at
your cost
	 	Coverage continues
to the end of the
month in which the
Separation Pay
Period ends (or a
minimum of 6 months)
(but not beyond age
65), provided you
pay the applicable
employee
contributions in the
time and manner
specified by MSD (or
its designee); you
may elect to
continue coverage
for the balance of
up to 30 months (but
not beyond age 65)
from your Separation
Date at your cost
	 
	 	 	 	 
	Optional Employee Group Term Life, Dependent Life, Survivor Income

	 	Coverage at level
in effect on your
Separation Date
continues for 31 days;
you may elect to
continue coverage for
up to 30 months (but
not beyond age 65) from
your Separation Date at
your cost
	 	Coverage at level in
effect on your
Separation Date
continues for 31
days; you may elect
to continue coverage
for up to 30 months
(but not beyond age
65) from your
Separation Date at
your cost
	 
	 	 	 	 
	AD&D

	 	No coverage
	 	No coverage

 Separated Employees

Effective as of November 3, 2009

Revised March 15, 2010

6

 

Annual Incentive Program/Executive Incentive Program (“AIP/EIP”)—

As described in more detail below, payment of bonuses, or a special payment in lieu of a bonus,
depends on when a Separated Employee’s Separation Date occurs during a performance year. Actual
AIP/EIP bonuses with respect to the performance year immediately preceding the Separated Employee’s
Separation Date may be paid to employees whose employment terminates between January 1 and the time
AIP/EIP bonuses are paid for that year to other employees . No AIP/EIP or special payment in lieu
of a bonus with respect to the performance year in which the Separation Date occurs is payable for
any employee separated January 1 through June 30, inclusive. A special payment in lieu of a bonus
is payable under this program with respect to the performance year in which the Separation Date
occurs only for employees whose Separation Dates occur on or after July 1 and on or before December
31 of that performance year. For executives who are listed in the Summary Compensation Table for
the most recent proxy materials issued by Merck in connection with the annual meeting of
shareholders, the amount of payment in lieu of EIP award, if any, will be guided by the following
principles, but Merck retains complete discretion to pay more, or less, than those amounts. The
Employer reserves the right to treat the payment of AIP/EIP bonuses and/or the special payments in
lieu of AIP/EIP bonuses as supplemental wages subject to flat-rate withholding (that is, not taking
into account any exemptions).

If Your Separation Date occurs between January 1 and prior to the time AIP/EIP bonuses are paid for
the prior performance year

If your Separation Date occurs on or after January 1 and prior to the day AIP/EIP bonuses for the
prior performance year are paid to other MSD employees, you will be eligible for consideration for
an AIP/EIP bonus with respect to the prior complete performance year on the same terms and
conditions as other MSD employees. Provided you are in a class of employees eligible for an
AIP/EIP, your AIP/EIP bonus, if any, will be paid to you at the same time AIP/EIP bonuses are paid
to other MSD employees or will be deferred in accordance with your applicable deferral election for
that AIP/EIP performance year, as applicable. Eligibility for consideration for AIP/EIP bonus is
not contingent upon your signing the Separation Letter. You will not be eligible for any AIP/EIP
or payment in lieu of an AIP/EIP for the performance year in which your Separation Date occurs.

If Your Separation Date occurs between the time AIP/EIP bonuses for the prior performance year are
paid and June 30

If your Separation Date occurs after AIP/EIP bonuses for the prior performance year are paid to
other MSD employees and on or before June 30, you will not be eligible for consideration for an
AIP/EIP bonus or the special in lieu of bonus payment described below whether or not you sign the
Separation Letter.

 Separated Employees

Effective as of November 3, 2009

Revised March 15, 2010

7

 

If Your Separation Date occurs after June 30 and on or before December 31

If your Separation Date occurs after June 30 and on or before December 31, a special payment in
lieu of an AIP/EIP with respect to the performance year in which your Separation Date occurs may be
paid only if you sign (and, if a revocation period is applicable to you, do not revoke) the
Separation Letter. The special payment, if any, will be calculated based on the target bonus
applicable to you under the Annual Incentive Program/Executive Incentive Program with respect to
the current performance year and the number of full and partial months you worked in the current
performance year and is subject to adjustment by Merck in its sole discretion based on a variety of
factors, including but not limited to your documented poor or extraordinary performance in the
current performance year. If you receive a special payment in lieu of an AIP/EIP bonus, it will be
paid to you (less applicable withholding) as soon as administratively feasible following your
Separation Date. However, if you elected to defer your AIP/EIP bonus, that election will apply to
payments made in lieu of AIP/EIP bonus.

OTHER BENEFITS AND PROGRAMS

Stock Options, Restricted Stock Units and Performance Stock Units

Only employees may receive incentives under Merck’s incentive stock plans, including stock options,
restricted stock units (“RSUs”) or performance stock units (“PSUs”); therefore, you will not be
eligible to receive any grants after your Separation Date.

Outstanding Stock Options, RSUs and PSUs

Whether you sign the Separation Letter or not, the separation provisions applicable to stock
options, RSUs and PSUs will apply to any outstanding incentives you hold on your Separation Date.
The separation provisions may differ based on the grants. IT IS YOUR REPSONSIBILITY TO FAMILIARIZE
YOURSELF WITH THE TERMS OF INDIVIDUAL GRANTS.

Stock Options (separation terms)

Generally, for outstanding annual and quarterly stock option grants made prior to 2001, the terms
are:

	 	 	Vested options will expire upon the earlier of (i) the day before the one-year anniversary
of your Separation Date or (ii) the original 10-year expiration date.

Separated Employees

Effective as of November 3, 2009

Revised March 15, 2010

8

 

Generally, for outstanding annual and quarterly stock option grants made in 2001 and thereafter
through 2009:

	 	 	Unvested options will vest on the Separation Date. You will then have two years to
exercise them and previously vested grants. All outstanding vested options—including those
previously vested—will expire on the day before the second anniversary of your Separation
Date (or their original expiration date, if earlier).

Generally, for outstanding annual and quarterly stock option grants made during 2010 and
thereafter, terms differ depending on whether your employment terminated due to the sale of your
division or otherwise in an involuntary termination:

	 	•	 	If your employment is terminated due to the sale of your subsidiary, division or
joint venture, options that would have become exercisable within one year of your
Separation Date will vest on your Separation Date and all others immediately expire.
All unexpired options will expire on the day before the first anniversary of your
Separation Date (or their original expiration date, if earlier).
	 
	 	•	 	If your employment terminates due to an other involuntary termination, options that
are unvested on your Separation date will expire on your Separation Date. Options
that are vested on your Separation Date will expire on the day before the first
anniversary of your Separation Date (or their original expiration date, if earlier).

Key R&D, MRL and MMD new hire stock option grants and other stock option grants may have different
terms. See the term sheets applicable to such stock option grants.

If your employment is terminated through either a sale or an other involuntary termination and you
later are rehired on or after 1/1/2010, stock options that are unexercised and outstanding on your
rehire date will continue to be treated as described above.

RSUs (separation terms)

For RSUs granted before 1/1/2010, under the separation provisions of the RSUs, a pro rata portion
of your annual grants of restricted stock units, if any, generally will vest and become
distributable at the same time as if your employment had continued; the remainder of the grant will
expire on your Separation Date. Different terms may apply to RSUs that were not granted as part of
the annual RSU grants. See the term sheets applicable to RSUs granted to you, if any.

Separated Employees

Effective as of November 3, 2009

Revised March 15, 2010

9

 

For each annual and quarterly RSU grant made on or after 1/1/2010, terms differ depending on
whether your employment terminated due to the sale of your division or otherwise in an involuntary
termination:

If your employment is terminated due to the sale of your subsidiary, division or joint venture, the
following portion of your RSU awards and accrued dividends will be distributed at the time
distributed to active employees: one-third if your Separation Date is on or after the grant date
but before the first anniversary of the grant date; two-thirds if your Separation Date is on or
after the first anniversary of the grant date but before the second anniversary of the grant date;
and all if your Separation Date is on or after the second anniversary of the grant date.

If your employment terminates in an other involuntary termination and your Separation Date occurs

	 	•	 	on or after the first anniversary of the RSU grant date, a pro rata portion of your RSU
grant generally will vest and become distributable to you (together with any applicable
accrued dividend equivalents) at the same time as if your employment had continued; the
remainder of the grant will expire on your Separation Date; or
	 
	 	•	 	before the first anniversary of the RSU grant date, the entire grant (together with any
applicable accrued dividend equivalents) will expire on your Separation Date.

See the term sheets applicable to RSUs granted to you, if any.

PSUs (separation terms)

For PSUs granted before 1/1/2010, under the separation provisions of the PSUs, a pro rata portion
of your annual grant of performance share units will be payable when the distribution, if at all,
with respect to the applicable performance year is made to active employees. See the term sheets
applicable to PSUs granted to you, if any.

For each PSU granted on or after 1/1/2010, terms differ depending on whether your employment
terminated due to the sale of your division or otherwise in an involuntary termination.

If your employment is terminated due to the sale of your subsidiary, division or joint venture, the
following portion of your PSU awards will be distributed at the time distributed to active
employees, based on actual performance: one-third if your Separation Date is on or after the grant
date but before the first anniversary of the grant date; two-thirds if your Separation Date is on
or after the first anniversary of the grant date but before the second anniversary of the grant
date; and all if your Separation Date is on or after the second anniversary of the grant date.

 Separated Employees

Effective as of November 3, 2009

Revised March 15, 2010

10

 

If your employment terminates in an other involuntary termination and your Separation Date occurs

	 	•	 	on or after the first anniversary of the PSU grant date, a pro rata portion of your PSU
grant generally will vest and become distributable to you at the same time as if your
employment had continued and based on actual performance; the remainder of the grant will
expire on your Separation Date; or
	 
	 	•	 	before the first anniversary of the PSU grant date, the entire grant will expire on
your Separation Date.

See the term sheets applicable to PSUs granted to you, if any.

If you have any question about your stock options, RSUs or PSUs, you can call the Support Center at
1-866-MERCK-HD (1-866-637-2543).

* * *

The following describes the terms and conditions of certain MSD benefit plans and programs as
they apply to employees whose employment with the Employer terminates for any reason. For
additional information, see the applicable sections of the current MSD Benefits Book (and
applicable summaries of material modification).

Separated Employees

Effective as of November 3, 2009

Revised March 15, 2010

11

 

Dependent Care Reimbursement Account

Your participation in the Dependent Care Reimbursement Account (“DCRA”) ends on your Separation
Date. Eligible expenses incurred throughout the calendar year in which your Separation Date occurs
(even after employment with the Employer ends) can be reimbursed but only up to the amount actually
contributed to the account. Claims for those expenses must be submitted to Horizon Blue Cross Blue
Shield by April 15th of the year following the year in which your Separation Date
occurs. Amounts remaining in the account after all eligible expenses have been paid will be
forfeited.

Financial Engines

Your eligibility to use the Financial Engines financial planning tool will end on your Separation
Date.

Financial Planning

If your Separation Date occurs on or before 12/31/2009: If you elected Financial Planning for the
2009 plan year, you will continue in this benefit through the remainder of the calendar year in
which your Separation Date occurs. Your remaining cost for this benefit will be deducted from your
final pay check, or, if necessary, from any Separation Pay paid pursuant to the Separation Benefits
Plan. Your Financial Planning election is irrevocable and cannot be changed. The Financial
Planning benefit has been eliminated from the Flexible Benefits Program as of 1/1/2010.

If your Separation Date occurs on or after 1/1/2010: Your company-paid financial planning benefit
will continue through the end of the calendar year in which your Separation Date occurs.

Flexible Benefits Program

The Flexible Benefits Program consists of the following MSD plans and programs: medical, dental,
vision, health care and dependent care reimbursement accounts,, life insurance (including basic and
optional term life, dependent term life, survivor income and accidental death and dismemberment),
long term care, long term disability and ending 12/31/09, financial planning. Your participation
in these plans ends as described elsewhere in this communication. However, a full month of
contribution/premium for your coverage under these plans in effect on your Separation Date may be
deducted from your paycheck for the month in which your Separation Date occurs.

 Separated Employees

Effective as of November 3, 2009

Revised March 15, 2010

12

 

Health Care Reimbursement Account

Your participation in the Health Care Reimbursement Account (“HCRA”) ends on your Separation Date,
unless you elect to continue to participate in accordance with COBRA for the remainder of the
calendar year in which your Separation Date occurs. If you elect to continue participation in HCRA
under COBRA, you must make your required contributions on an after-tax basis. Eligible expenses
incurred while you participate in HCRA during the calendar year in which your Separation Date
occurs can be reimbursed up to your entire elected amount. Claims incurred after your
participation in HCRA ends cannot be reimbursed, no matter how much money is left in the account.
Claims for expenses incurred during the calendar year in which your Separation Date occurs and
while you are a participant in HCRA must be submitted to Horizon Blue Cross Blue Shield by April 15
of the year following the year in which your Separation Date occurs. Amounts remaining in the
account after all eligible expenses have been paid will be forfeited.

Long Term Care

If you elected coverage under MSD’s Long Term Care Plan for you (or your spouse or same-sex
domestic partner), that coverage will end on your Separation Date. However, if you want to
continue coverage without interruption, you must contact CNA (the insurer) and pay your first
quarterly premium to CNA within 31 days after the last day of the month in which your Separation
Date occurs. For more information (and to request the necessary forms) contact CNA directly at
1-800-528-4582.

Long Term Disability

Your participation in the Long Term Disability Plan will end on the last day of the month in which
your Separation Date occurs. In other words, you must have satisfied the 26-week eligibility
period by the end of the month that includes your Separation Date to be eligible for LTD benefits.
If you are disabled and receiving income replacement benefits under the Long Term Disability Plan
on your Separation Date, those benefits will continue in accordance with the terms of the Long Term
Disability Plan. However, Separation Pay paid by the Employer under the Special Separation Program
will act as an offset from benefits payable under the Long Term Disability Plan (meaning the LTD
benefits will be reduced by Separation Pay).

Pension

If you have at least 5 years of Vesting Service (as that term is defined in the Retirement Plan) as
of your Separation Date, you will be a “terminated vested” participant in the Retirement Plan.
This means that your employment will have terminated before you were eligible to “retire” from
active service with the

 Separated Employees

Effective as of November 3, 2009

Revised March 15, 2010

13

 

Employer (generally, age 55 with at least 10 years of Credited Service (as that term is defined in
the Retirement Plan)) and that you have a “vested” pension under the Retirement Plan.

If you are a “terminated vested” participant, your benefits under the Retirement Plan must
begin no later than the first day of the month following age 65 after your employment terminates.
However, you can start receiving a reduced benefit on the first day of any month after you reach
age 55. The early payment reduction for a “terminated vested” participant is an “actuarial”
reduction. That is, your life expectancy and certain other actuarial assumptions are used in
calculating the reduction amount. You should expect this to reduce your benefits substantially
because by commencing your benefit early, you receive benefits earlier and for a longer period. A
table illustrating examples of actuarial reductions from the age 65 benefit and a more detailed
explanation of the benefits for “terminated vested” participants can be found in the Salaried
Retirement Plan section of the current MSD Benefits Book (and applicable summaries of material
modification). If you do not have at least 5 years of Vesting Service as of your Separation Date,
you will not be eligible for a benefit under the Retirement Plan.

After you leave the Employer, if you are entitled to a vested benefit from the Retirement Plan,
you’ll receive a statement that will tell you what your life income will be at age 65. This will
be sent to you within approximately one year from your Separation Date. If any portion of your
benefit is from a different plan, such as the Retirement Plan for Hourly Employees of MSD, there is
an offset which reduces the benefit from the Retirement Plan. The aggregate lump sum benefit
payable from two different plans generally differs slightly from a lump sum payable from only one
plan (especially if different interest rate methodologies apply).

Payments not Compensation for Retirement Plan. Separation Pay is not compensation for Retirement
Plan purposes. A bonus or the special payment, if any, in lieu of an AIP/EIP bonus paid after your
Separation Date is also not compensation for Retirement Plan purposes.

Sales Incentive Plan

If you are a participant in a sales incentive plan of Merck or its subsidiaries, including the
Employer, on your Separation Date, your eligibility to be paid a bonus, if any, will be determined
under the terms and conditions of the plan in which you are a participant.

Savings Plan

Any Separation Pay you receive under the Special Separation Program is not Base Pay and may not be
contributed to the Savings Plan. A pro-rata deduction

 Separated Employees

Effective as of November 3, 2009

Revised March 15, 2010

14

 

will be made to the Savings Plan based on the percentage of your monthly base pay you receive for
the month in which your Separation Date occurs. If you have a plan loan and do not repay it within
45 days of your Separation Date, the loan will be declared in default and reported as a taxable
distribution to the Internal Revenue Service.

You generally may receive a final distribution from the Savings Plan at any time after your
Separation Date. However, if your account balance is $5,000 or less, your account balance
automatically will be distributed to you soon after your Separation Date. If, upon reaching age
65, you have not previously elected to receive your benefits, your account balance will be
distributed to you without regard to its amount. Review the information in the Salaried Savings
Plan section of the current MSD Benefits Book (and applicable summaries of material modification)
for additional information on Receiving a Final Distribution.

Short Term Disability

Subject to applicable state law, your participation in the Short Term Disability Plan ends on your
Separation Date. If you are disabled and are receiving income replacement benefits under the Short
Term Disability Plan on your Separation Date, those benefits will continue in accordance with the
terms of the plan. However, subject to state law, Separation Pay paid by the Employer under the
Special Separation Program will act as an offset from benefits payable under the Short Term
Disability Plan (meaning the STD benefits will be reduced by Separation Pay). Where state law does
not permit such offsets to be made to STD benefits (or where MSD in its sole and absolute
discretion determines it is easier for the Employer to administer), STD benefits will instead act
as an offset from Separation Pay paid (or payable) by the Employer under the Special Separation
Program (meaning Separation Pay will be reduced by the STD benefits).

Travel Accident

Your coverage under the Travel Accident Insurance Plan ends on your Separation Date.

Vacation Pay

You will be paid for any amount of vacation that you have accrued but not used as of your
Separation Date. Conversely, you must reimburse MSD for any vacation you used prior to your
Separation Date that you had not earned as of your Separation Date. Any such amounts to be
reimbursed may be deducted from Separation Pay paid pursuant to the Separation Benefits Plan.

 Separated Employees

Effective as of November 3, 2009

Revised March 15, 2010

15

 

Vision

Coverage under the Vision Plan ends on the last day of the month in which your Separation Date
occurs. You will be given the opportunity to continue this benefit in accordance with COBRA for up
to 18 months from your Separation Date by paying the required premiums.

* * *

The Special Separation Program described here currently is scheduled to be in effect for
Separations From Service that occur from January 1, 2009 through December 31, 2011. MSD retains
the right (to the extent permitted by law) to amend or terminate the Special Separation Program and
any benefit or plan described in this brochure (or otherwise) at any time. However, following a
“change in control” of Merck (as defined in the Merck & Co., Inc. Change in Control Separation
Benefits Plan, as it may be amended from time to time), certain limitations apply to MSD’s ability
to amend or terminate this and other benefit plans. Notwithstanding the foregoing, through
November 3, 2010 a “change in control” shall include both a “Change in Control” with respect to
Merck and an “MSD Change in Control” with respect to MSD, as both terms are defined in the Merck &
Co., Inc. Separation Benefits Plan, as amended and restated as of November 3, 2009.

While it has no current intention to do so, MSD also may extend, decrease or enhance, the Special
Separation Program in the future. If you sign and return the Separation Letter by the Separation
Letter Return Date, any later amendment or termination will not decrease or increase the amount of
Separation Pay you are eligible to receive under the Special Separation Program.

Notwithstanding anything in the Special Separation Program to the contrary, benefits under the
Program that are subject to Section 409A of the Internal Revenue Code of 1986, as amended, will be
adjusted to avoid the excise tax under Section 409A. MSD will take any and all steps it determines
are necessary, in its sole and absolute discretion, to adjust benefits under the Special Separation
Program to avoid the excise tax under Section 409A, including but not limited to, reducing or
eliminating benefits, changing the time or form of payment of benefits, etc.

Payments made on account of separation from service are limited during the six months following the
termination of employment of a “Specified Employee” as defined in Treas. Reg. Sec. 1.409A-1(i) or
any successor thereto, which in general includes the top 50 employees of a company ranked by
compensation. Notwithstanding anything contained in the Special Separation Program to the
contrary, if a Covered Employee is a

 Separated Employees

Effective as of November 3, 2009

Revised March 15, 2010

16

 

“Specified Employee” on his or her Separation Date, to the extent required by Section 409A of the
Internal Revenue Code of 1986, as amended, no payments will be made during the six-month period
following termination of employment. Instead, amounts that would otherwise have been paid during
that six-month period will be accumulated and paid, without interest, as soon as administratively
feasible following the end of such six-month period after termination of employment.

 Separated Employees

Effective as of November 3, 2009

Revised March 15, 2010

17

 

Glossary of Definitions

As used in this document, the following terms have the following meanings.

“Basic Employee Group Term Life Coverage” is the lesser of the amount of the Separated Employee’s
group term life coverage in effect on the Separation Date or 1x base pay for those who are
considered New Format (2x base pay for those who are considered Old Format).

“Credited Service” is as defined in the Retirement Plan.

“Employer” means individually and collectively, Merck Sharp & Dohme Corp., Merck Holdings, Inc.,
Merck and Company Incorporated, KBI Enterprises, Inc., Rosetta Inpharmatics LLC, Merck HDAC
Research, LLC, Abmaxis, Inc., Glycofi, Inc. and Sirna Therapeutics, Inc.

“Merck” means Merck & Co., Inc., ultimate parent of Merck Sharp & Dohme Corp.

“MSD” means Merck Sharp & Dohme Corp.

“MSD Benefits Book” means summary plan descriptions of various employee benefit plans sponsored by
MSD (formerly known as the Merck Benefits Book).

“Retirement
Plan” means the Retirement Plan for Salaried Employees of MSD.

“Separation
Benefits Plan” means the MSD Separation Benefits Plan for Nonunion Employees.

“Separation Date” means a Separated Employee’s last day of employment with the Employer.

“Separated
Employees” are certain nonunionized employees of the Employer.

(1) who experience a Separation From Service (as that term is defined in the Separation
Benefits Plan) on or between January 1, 2009 through December 31, 2011; and

(2) who, as of their Separation Date, is:

	 	•	 	Less than age 49 or
	 
	 	•	 	At least age 49 but not yet age 64 with less than nine years of Credited
Service

Separated Employees are only those employees who are designated by MSD as “Separated Employees.”
“Separated Employees” do not include employees who terminate employment in any way that does not
constitute a Separation From Service as determined by MSD, including employees who resign for any
reason.

Separated Employees

Effective as of November 3, 2009

Revised March 15, 2010

18

 

“Separation Letter” means the MSD-provided letter that will describe the Special Separation Program
benefits and include a release of claims against Merck and its subsidiaries and affiliates,
including the Employer and may include such other terms such as non-solicitation and
non-competition provisions, as MSD determines.

“Separation Letter Return Date” is the date stated in the Separation Letter by which Separated
Employees must sign and return it to MSD.

“Separation Pay Period” is the number of full or partial workweeks for which a Separated Employee
is being paid Separation Pay.

“Special Separation Program” means the separation benefits that Separated Employees receive if they
sign (and, if a revocation period is applicable to them, do not revoke) the Separation Letter.

 Separated Employees

Effective as of November 3, 2009

Revised March 15, 2010

19exv10w1

Exhibit 10.1

FAIR ISAAC CORPORATION

1992 LONG-TERM INCENTIVE PLAN

As amended effective May 4, 2010

 

 

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 
	 	 	9	 
	5.6 Effect of Change in Control 
	 	 	9	 
	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 
	 	 	10	 
	6.4 Exercise/Pledge 
	 	 	10	 
	 
	 	 	 	 

-2-

 

	 	 	 	 	 
	 	 	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 
	 	 	11	 
	8.2 Payment for Awards 
	 	 	11	 
	8.3 Vesting Conditions 
	 	 	11	 
	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 
	 	 	12	 
	 
	 	 	 	 
	9.1 Restricted Shares 
	 	 	12	 
	9.2 Stock Units 
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 10. PROTECTION AGAINST DILUTION 
	 	 	12	 
	 
	 	 	 	 
	10.1 Adjustments 
	 	 	12	 
	10.2 Reorganizations 
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 11. LONG-TERM PERFORMANCE AWARDS 
	 	 	13	 
	 
	 	 	 	 
	ARTICLE 12. LIMITATION ON RIGHTS 
	 	 	13	 
	 
	 	 	 	 
	12.1 Retention Rights 
	 	 	13	 
	12.2 Stockholders’ Rights 
	 	 	13	 
	12.3 Regulatory Requirements 
	 	 	13	 
	 
	 	 	 	 
	ARTICLE 13. LIMITATION ON PAYMENTS 
	 	 	13	 
	 
	 	 	 	 
	13.1 Basic Rule 
	 	 	13	 
	13.2 Reduction of Payments 
	 	 	14	 
	13.3 Overpayments and Underpayments 
	 	 	14	 
	13.4 Related Corporations 
	 	 	14	 
	 
	 	 	 	 

-3-

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 14. WITHHOLDING TAXES 
	 	 	14	 
	 
	 	 	 	 
	14.1 General 
	 	 	14	 
	14.2 Share Withholding 
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 15. ASSIGNMENT OR TRANSFER OF AWARDS 
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 16. FUTURE OF PLAN 
	 	 	15	 
	 
	 	 	 	 
	16.1 Term of the Plan 
	 	 	15	 
	16.2 Amendment or Termination 
	 	 	16	 
	 
	 	 	 	 
	ARTICLE 17. DEFINITIONS 
	 	 	16	 
	 
	 	 	 	 
	ARTICLE 18. EXECUTION 
	 	 	19	 

-4-

 

FAIR ISAAC CORPORATION 1992 LONG-TERM INCENTIVE PLAN

As amended Effective May 4, 2010

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, on August 26, 2008, on December 22, 2008 and on May 4, 2010.
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.

-6-

 

     (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,
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, and prior to January 1, 2010, 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, divided by the Black-Scholes
value of an NSO to purchase a single 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. Black-Scholes value for purposes of this Section 4.2(b)(v) shall be determined by
the Company in a manner consistent with Black-Scholes valuations conducted for financial
reporting purposes and may involve the use of external consultants, advisors or auditors.

     (c) All NSOs granted to an Outside Director under this Section 4.2 prior to December
18, 2008 shall also become exercisable in full in the event of the termination of such
Outside Director’s service for any reason. For NSOs granted to an Outside Director under
this Section 4.2 from and following December 18, 2008, in the event of the termination of
such Outside Director’s service for any reason, such NSOs shall become exercisable to the
extent provided pursuant to the terms of the applicable Stock Option Agreement or as
otherwise provided by

-7-

 

the Committee. NSOs that are not exercisable, or do not either become exercisable or
continue to vest, as of the termination of an Outside Director’s service, shall terminate
as of such date.

     (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 earlier 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, except as otherwise
determined by the Committee, but in no event will any such NSO terminate later than the 10th
anniversary of the date of grant.

          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.

-8-

 

          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 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

-9-

 

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.

          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.

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          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
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.

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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.

          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.

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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 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.

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          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 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

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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.

          (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

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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
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.

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          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.

          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-

 

          17.17 “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  	/s/ Mark R. Scadina
 	 
	 	 	     Mark R. Scadina  	 
	 	 	Executive Vice President, General Counsel

and Corporate Secretary 	 
	 

-19-

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