Document:

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                                                                   EXHIBIT 10.47

                              EMPLOYMENT AGREEMENT

        THIS EMPLOYMENT AGREEMENT (this "Agreement") is entered into as of
August 5, 2002 by and between FAIR, ISAAC AND COMPANY, INCORPORATED, a Delaware
corporation ("FIC") located at 200 Smith Ranch Road, San Rafael, California
94903, and KENNETH J. SAUNDERS ("Employee").

                              W I T N E S S E T H:

        WHEREAS, Employee is currently employed by HNC Software, Inc. ("HNC") as
Chief Financial Officer and Secretary; and

        WHEREAS, pursuant to an Agreement and Plan of Merger dated as of April
28, 2002, among FIC, HNC and Northstar Acquisition Inc. (the "Merger
Agreement"), FIC is acquiring all of the outstanding shares of HNC by way of the
merger of HNC with a wholly owned subsidiary of FIC (the "Merger"), with HNC as
the surviving entity; and

        WHEREAS, FIC intends to maintain and operate the business of HNC after
the Merger; and

        WHEREAS, FIC desires to have the benefits of Employee's knowledge and
experience as a full-time employee of FIC without distraction by
employment-related uncertainties and considers such employment a vital element
to protecting and enhancing the best interests of FIC and its stockholders, and
Employee desires to be employed full-time with FIC; and

        WHEREAS, FIC and Employee desire to enter into an agreement reflecting
the terms under which Employee will be employed by FIC after the Merger;

        NOW, THEREFORE, in consideration of the mutual covenants set forth in
the Merger Agreement and this Agreement, the parties hereto agree as follows:

        1. Effectiveness.

        This Agreement shall become effective only upon the later of (i) the
Closing of the Merger as defined in the Merger Agreement (the "Closing") or (ii)
approval by FIC Board of Directors (the "Board") of Employee's employment as
Chief Financial Officer of FIC, which date shall be the "Effective Date."

        2. Term.

        FIC hereby agrees to employ Employee and Employee hereby agrees to be
employed by FIC on a full-time basis for a four-year period commencing on the
Effective Date and ending on the fourth anniversary of the Effective Date,
provided that such period shall be automatically extended for one year and from
year to year thereafter until notice of termination is given by FIC or Employee
to the other party hereto at least 60 days prior to the fourth anniversary of
the Effective Date or the one-year extension period then in effect, as the case
may be, unless sooner terminated as provided in Section 9(a) hereof (the
"Term"). Employee's employment is

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contingent on his ability to prove his identity and authorization to work in the
United States for FIC and his compliance with the Immigration and Naturalization
Service's employment verification requirements.

        3. Duties.

        Employee shall serve as Chief Financial Officer of FIC upon the terms
and conditions set forth in this Agreement, and shall have the duties and
responsibilities that are customarily associated with such position. Employee
shall report directly to the Chief Executive Officer of FIC. Employee will also
have such other powers and duties as may be prescribed by the Chief Executive
Officer of FIC, the Board or by FIC's bylaws.

        Employee is required to exercise his specialized expertise, independent
judgment and discretion to provide high-quality services, and to devote his full
business time, energies, efforts and abilities exclusively to his employment,
and shall use his best efforts and abilities to promote FIC's interests;
provided, however, that Employee may serve in any capacity with any civic,
educational or charitable organization, so long as such activities do not
interfere with his duties or obligations under this Agreement or arising out of
his position as an employee or an officer of FIC.

        Employee shall follow Employer's written policies, including any
policies published on FIC's internal or external websites, and procedures
adopted from time to time by Employer and to which Employee has had access,
which the Employer may change at any time. During the Term, Employee may not
engage, directly or indirectly, in any business activity that competes with or
is adverse to FIC's business, whether alone or as a partner, officer, director,
employee, consultant or investor in such business activity, including but not
limited to soliciting or assisting or causing others to solicit employees of FIC
or its subsidiaries for competitive employment. Notwithstanding the foregoing,
Employee may own, as a passive investor, securities of any competitor
corporation, provided that Employee's direct holdings in any one such
corporation shall not in the aggregate constitute more than three percent (3%)
of the voting stock of such corporation and further provided that such
investment does not violate Employee's fiduciary duties owed to FIC.

        4. Compensation.

        FIC shall compensate Employee for the services rendered under this
Agreement as follows:

               (a) A base salary at the annual rate of $341,000, less regular
payroll deductions, which covers all hours worked (the "Base Salary"), payable
at such other intervals and in such amounts in accordance with the
then-customary payroll practices of Employer for the payment of its employees.
Employee acknowledges that Employer's current payroll practices provide for
payment of annual base salaries on a bi-weekly basis in arrears. Employer will
review the Base Salary annually and may, in its sole discretion, increase the
Base Salary. Decreases in the Base Salary may be made if such is made generally
with respect to all other similarly situated employees and does not single out
Employee.

               (b) Employee shall be reimbursed for all reasonable business
expenses incurred on behalf of FIC while on business, upon submission of
appropriate documentation in

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accordance with FIC's general policies, as they may be amended from time to time
during the Term.

               (c) Employee shall also be eligible for an annual incentive bonus
under FIC's management incentive plan, as it may be changed or replaced from
time to time, on the same basis that such participation is normally granted to
vice presidents of FIC of similar levels of authority and base compensation.
Under FIC's current management incentive plan Employee shall be eligible for an
annual incentive bonus based on FIC's performance and Employee's achievement of
specific mutually agreed goals and objectives incorporating subjective and
objective measurable outcomes, with an annual payout opportunity from zero to
100% of the Base Salary, which bonus currently is calculated and paid on a
fiscal quarterly basis. Under the current plan, quarterly and year to date
performance will be considered in paying bonuses. Employee's participation will
begin on the first day of the first quarter that commences following the
Effective Date; provided, however, that Employee shall be eligible to receive a
pro-rated bonus for the partial quarter following the Effective Date on similar
terms.

               (d) All payments of compensation made by FIC under this Agreement
to Employee will be subject to tax withholding as required pursuant to
applicable laws and regulations.

        5. Employee Benefits and Expenses.

        In addition to the compensation specified in Section 4 above, Employee
shall be entitled to participate in any benefit plan or arrangement for, or to
receive employment benefits, such as medical, dental, vision care insurance and
life insurance, which are normally available to employees of Employer, on the
same basis that such participation or such benefits are normally granted to such
employees and to perquisites and fringe benefits no less favorable than those
generally received by any other vice-president of FIC of similar levels of
authority (the "Benefit Plans"). Employee shall also be entitled to holidays and
paid time off ("PTO") in accordance with FIC's policies as they may be in effect
from time to time. Employer reserves the right to modify, suspend or discontinue
any and all Benefit Plans and benefits, holidays and PTO policies and practices
at any time without notice to or recourse by Employee, so long as such action is
taken generally with respect to other similarly situated persons and does not
single out Employee. Employee, to the extent not prohibited by law, shall
receive service credit that includes his employment by HNC and Risk Data
Corporation prior to the Closing under all Benefit Plans and paid time off
("PTO") policies. A list and description of the foregoing benefits and policies
has been provided to Employee. These benefits and policies may change from time
to time.

        All expenses reasonably incurred by Employee, including but not limited
to, relocation expenses (if Employer relocates Employee to a work location other
than the San Diego, California metropolitan area after employment hereunder
commences), travel, telephone, entertainment and miscellaneous expenses in
connection with the proper discharge of his duties of employment will be paid by
Employer in accordance with Employer's relocation and/or reimbursement policy as
established and amended from time to time and generally distributed to employees
of Employer.

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        6. Place of Employment.

        During the Term, Employee shall perform the services he is required to
perform at Employer's office in San Diego, California. Employer may from time to
time require Employee to travel temporarily to other locations on Employer's
business; provided, however, that Employee will perform the substantial majority
of his services at the Employer's San Diego, California offices. Subject to
Employee's consent, and subject to Sections 9(b) and 12(c) hereof, Employer
reserves the right to transfer Employee to any other place or places determined
by Employer at any time in good faith deemed necessary or advisable by Employer
for business purposes and in such case, shall pay such relocation expenses as
provided for in Employer's then current written relocation policy.

        7. Stock Options.

               (a) On the first business day following the Closing, Employee
shall be granted options to purchase two hundred thousand (200,000)
non-qualified shares of FIC common stock, at an exercise price equal to the
closing sale price of FIC common stock on the New York Stock Exchange on August
6, 2002, pursuant to the Nonstatutory Stock Option Agreement (attached as
Exhibit A) and the Notice of Grant of Stock Options and Options Agreement to be
entered into as of the Effective Date between FIC and Employee. Such agreement
shall provide that 25% of such options shall be subject to vesting on each of
the first four anniversaries of the grant date, conditioned upon Employee's
continued employment by FIC. The option shall have a term of ten years from the
date of grant.

               (b) Approximately six (6) months after the Effective Date
Employee shall be eligible for additional options to purchase up to sixty
thousand (60,000) non-qualified shares of FIC common stock, at an exercise price
equal to the closing sale price of FIC common stock on the New York Stock
Exchange on the date of grant, pursuant to the Fair, Isaac and Company,
Incorporated 1992 Long-term Incentive Plan (attached as Exhibit B) and the Stock
Option Agreement to be entered into between FIC and Employee for such grant.
Such agreement shall provide that 25% of such options shall be subject to
vesting on each of the first four anniversaries of the grant date, conditioned
upon Employee's continued employment by FIC. The option shall have a term of ten
years from the date of grant. This grant is entirely contingent upon the sole
good faith assessment by the Chief Executive Officer that the following broad
objectives have been satisfactorily achieved by Employee, as solely determined
by the Chief Executive Officer:

                      (i) Significant improvement of core accounting and
reporting function to build process rigor, data reliability, regulatory
compliance and timeliness, including but not limited to staff integration.

                      (ii) Building an effective investor relations strategy and
taking appropriate steps to implement it;

                      (iii) Playing a central role on leading and facilitating
merger integration activities. In this capacity Employee will serve as a
critical regional Employee (San Diego) charged with ensuring real-time
resolution of issues that arise.

               (c) Employee shall be eligible to receive options based on FIC's
annual key manager grant cycle starting with the November, 2003 cycle.

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        8.     Waiver of Certain Rights; Non-Waiver of April 1, 2002 HNC
               Software Letter Agreement.

        Except as specified in the proviso below, Employee agrees to irrevocably
relinquish and waive any rights he has pursuant to any employment or other
service arrangements and agreements he has with HNC, and all such arrangements
and agreements shall be deemed terminated as of the Closing; provided, however,
that the letter agreement by and between Employee and HNC Software effective
April 1, 2002 (the "Letter Agreement") shall remain in full force and effect.

        9.     Termination.

               (a) Employee may terminate his employment hereunder for any
reason upon thirty (30) days' prior written notice to FIC. Employee's employment
hereunder will terminate automatically upon the death or Disability (as defined
below) of Employee or upon expiration of the Term after notice as provided in
Section 2 above. FIC may terminate Employee's employment hereunder, with or
without "Cause" (as defined below), upon thirty (30) days' prior written notice
to Employee; provided, however, that, immediately upon receipt of such notice,
Employee shall cease to hold himself out to any third party as an officer of
FIC, shall refrain from acting as an officer of FIC (including but not limited
to refraining from executing contracts and instruments in the name or on behalf
of FIC) and shall refrain from taking any action which may lead any third party
to believe that he is authorized to act on behalf of FIC.

               (b) In the event that Employee's employment hereunder is
terminated by FIC without "Cause" or by Employee for "Pre-Change of Control Good
Reason" (as defined below) then, if (and only if) Employee has not materially
breached this Agreement and Employee has executed and delivered to FIC a full
and unconditional release and non-solicit agreements in accordance with Section
11 in form satisfactory to FIC, Employee shall be entitled to the following
payments:

                      (i) 200% of the Base Salary, in accordance with the
payroll practices described in Section 4(a) (the "Base Salary Severance");

                      (ii) a bonus equal to 100% of the Base Salary (the
"Severance Bonus"), it being understood that no bonus with respect to any
succeeding anniversary or anniversaries would thereafter be payable; and

                      (iii) any accrued but unused paid time off (PTO) through
the date of termination.

        In addition, Employee's options that would otherwise vest within the
twelve-month period following the termination date shall immediately vest on the
date of termination.

        In the event Employee is in material breach of this Agreement at the
time of termination by FIC without "Cause" or by Employee for "Pre-Change of
Control Good Reason", FIC shall provide Employee written notice of the specific
grounds for such breach within one week of such termination. If Employee cures
such breach within 30 days of receipt of such notice and is not otherwise in
material breach (which breach shall also be subject to 30 days' written notice
and

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opportunity to cure), then Employee shall be entitled to the payments and other
benefits outlined in this Section 9(b).

               (c) In the event that Employee's employment hereunder is
terminated voluntarily by Employee, by FIC with "Cause", by reason of Employee's
death or Disability, or upon expiration of the Term after notice as provided in
Section 2, then Employee shall be entitled to receive his Base Salary and
benefits earned through the Termination Date, in accordance with the practices,
policies and plans of FIC then in effect.

               (d) Termination due to a Change in Control Event shall be
governed by Section 10 below. If Employee is eligible for benefits under Section
10, Employee shall not be entitled to receive any benefits under Section 9(b).

               (e) Regardless of the reason for the termination of this
Agreement or of Employee's employment hereunder, Employee shall continue to be
subject to and bound by the provisions of Sections 14 through 20, inclusive,
after any termination of employment or termination of this Agreement.

               (f) In the event of a termination of employment of Employee for
any reason, possession of each corporate record and file shall be retained by
FIC, and Employee or his heirs, assigns and legal representatives shall have no
right whatsoever in any such material, information or property. Employee agrees
to deliver to FIC at termination of employment or at any time upon written
request by FIC, all memoranda, notes, plans, records, records, reports and other
documents relating to the business of FIC and its subsidiaries which he may have
within his possession or control.

        10. Change in Control Events.

        No amounts or benefits shall be payable or provided for pursuant to this
Section 10 unless a Change in Control Event shall occur during the Term.

               (a) For purposes of this Agreement, a "Change in Control Event"
shall be deemed to have occurred if any of the following occur in one or a
series of related transactions:

                      (i) Any "person" (as defined in Sections 13(d) and 14(d)
of the Securities Exchange Act of 1934, as amended, or any successor statute
thereto (the "Exchange Act")) acquires or becomes a "beneficial owner" (as
defined in Rule 13d-3 or any successor rule under the Exchange Act), directly or
indirectly, of securities of FIC representing 30% or more of the combined voting
power of FIC's securities entitled to vote generally in the election of
directors ("Voting Securities") then outstanding or 30% or more of the shares of
common stock of FIC ("Common Stock") outstanding, provided, however, that the
following shall not constitute an Event pursuant to this Section 10(a)(i):

                             (A) any acquisition or beneficial ownership by FIC
or a subsidiary of FIC;

                             (B) any acquisition or beneficial ownership by any
employee benefit plan (or related trust) sponsored or maintained by FIC or one
or more of its subsidiaries;

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                             (C) any acquisition or beneficial ownership by any
corporation (including without limitation an acquisition in a transaction of the
nature described in Section 10 (a)(iii)) with respect to which, immediately
following such acquisition, more than 70%, respectively, of (x) the combined
voting power of FIC's then outstanding Voting Securities and (y) the Common
Stock is then beneficially owned, directly or indirectly, by all or
substantially all of the persons who beneficially owned Voting Securities and
Common Stock, respectively, of FIC immediately prior to such acquisition in
substantially the same proportions as their ownership of such Voting Securities
and Common Stock, as the case may be, immediately prior to such acquisition; or

                             (D) any acquisition of Voting Securities or Common
Stock directly from FIC; and;

               Continuing Directors shall not constitute a majority of the
members of the Board of Directors of FIC. For purposes of this Section 10(a)(i),
"Continuing Directors" shall mean: (A) individuals who, on the date hereof, are
directors of FIC, (B) individuals elected as directors of FIC subsequent to the
date hereof for whose election proxies shall have been solicited by the Board of
Directors of FIC or (C) any individual elected or appointed by the Board of
Directors of FIC to fill vacancies on the Board of Directors of FIC caused by
death or resignation (but not by removal) or to fill newly-created
directorships, provided that a "Continuing Director" shall not include an
individual whose initial assumption of office occurs as a result of an actual or
threatened election contest with respect to the threatened election or removal
of directors (or other actual or threatened solicitation of proxies or consents)
by or on behalf of any person other than the Board of Directors of FIC; or,

                      (ii) Consummation of a reorganization, merger or
consolidation of FIC or a statutory exchange of outstanding Voting Securities of
FIC (other than a merger or consolidation with a subsidiary of FIC), unless
immediately following such reorganization, merger, consolidation or exchange,
all or substantially all of the persons who were the beneficial owners,
respectively, of Voting Securities and Common Stock immediately prior to such
reorganization, merger, consolidation or exchange beneficially own, directly or
indirectly, more than 70% of, respectively, (x) the combined voting power of the
then outstanding voting securities entitled to vote generally in the election of
directors of the corporation resulting from such reorganization, merger,
consolidation or exchange and (y) the then outstanding shares of common stock of
the corporation resulting from such reorganization, merger, consolidation or
exchange in substantially the same proportions as their ownership, immediately
prior to such reorganization, merger, consolidation or exchange, of the Voting
Securities and Common Stock, as the case may be; or.

                      (iii)(x) Approval by the shareholders of FIC of a complete
liquidation or dissolution of FIC or (y) the sale or other disposition of all or
substantially all of the assets of FIC (in one or a series of transactions),
other than to a corporation with respect to which, immediately following such
sale or other disposition, more than 70% of, respectively, (1) the combined
voting power of the then outstanding voting securities of such corporation
entitled to vote generally in the election of directors and (2) the then
outstanding shares of common stock of such corporation is then beneficially
owned, directly or indirectly, by all or substantially all of the persons who
were the beneficial owners, respectively, of the Voting Securities and Common
Stock immediately prior to such sale or other disposition in substantially the
same proportions as their ownership, immediately prior to such sale or other
disposition, of the Voting Securities and Common Stock, as the case may be; or

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                      (iv) A majority of the members of the Board of Directors
of the Company shall have declared that a Change in Control Event has occurred
or that a Change of Control Event will occur upon satisfaction of specified
conditions, in which case the Change in Control Event shall be deemed to occur
upon satisfaction of such specified conditions; or

                      (v) FIC enters into a letter of intent, an agreement in
principle or a definitive agreement relating to a Change in Control Event
described in Section 10(a)(i), 10(a)(ii), 10(a)(iii) or 10(a)(iv) hereof that
ultimately results in such a Change in Control Event, or a tender or exchange
offer or proxy contest is commenced which ultimately results in a Change in
Control Event described in Section 10(a)(i) hereof; or

                      (v) There shall be an involuntary termination of
employment of the Employee or Termination for Good Reason (as defined below),
and the Employee reasonably demonstrates that such event (x) was requested by a
party other than the Board of Directors of FIC that had previously taken other
steps reasonably calculated to result in a Change in Control Event described in
Section 10(a)(i), 10(a)(ii), 10(a)(iii) or 10(a)(iv) hereof and which ultimately
results in a Change in Control Event described in Section 10(a)(i), 10(a)(ii),
10(a)(iii) or 10(a)(iv) hereof, or (y) otherwise arose in connection with or in
anticipation of a Change in Control Event described in Section 10(a)(i),
10(a)(ii), 10(a)(iii) or 10(a)(iv) hereof that ultimately occurs.

        Notwithstanding anything stated in this Section 10(a), a Change in
Control Event shall not be deemed to occur with respect to Employee if (x) the
acquisition or beneficial ownership of the 30% or greater interest referred to
in Section 10(a)(i) is by Employee or by a group, acting in concert, that
includes Employee or (y) a majority of the then combined voting power of the
then outstanding voting securities (or voting equity interests) of the surviving
corporation or of any corporation (or other entity) acquiring all or
substantially all of the assets of FIC shall, immediately after a
reorganization, merger, exchange, consolidation or disposition of assets
referred to in Section 10(a)(ii) or 10(a)(iii), be beneficially owned, directly
or indirectly, by Employee or by a group, acting in concert, that includes
Employee.

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

        (c) If any Change in Control Event shall occur during the Term, then the
Employee shall be entitled to receive from FIC or its successor (which term as
used herein shall include any person acquiring all or substantially all of the
assets of FIC) a cash payment and other benefits on the following basis (unless
the Employee's employment by FIC is terminated voluntarily or involuntarily
prior to the occurrence of the earliest Change in Control Event to occur (the
"First Change in Control Event"), in which case Employee shall be entitled to no
payment or benefits under this Section 10):

               (i) If at the time of, or at any time after, the occurrence of
the First Change in Control Event and prior to the end of the Transition Period,
the employment of Employee with FIC is voluntarily or involuntarily terminated
for any reason (unless such termination is a voluntary termination by Employee
other than for Post-Change of Control Good Reason, is on account of the death or
Disability of the Employee or is a termination by FIC for Cause), subject to the
limitations set forth in Section 11, Employee shall be entitled to the
following:

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                      (A) FIC shall pay Employee's full base salary through the
Termination Date at the rate then in effect.

                      (B) FIC or its successor, within 90 days after the
Termination Date, shall make a cash payment to Employee in an amount equal to
two times the sum of (A) the Base Salary of Employee in effect immediately prior
to the First Change in Control Event plus (B) a cash bonus equal to 100% of the
Base Salary.

                      (C) For a 24-month period after the Termination Date, FIC
shall allow Employee to participate in any health, disability and life insurance
plan or program in which the Employee was entitled to participate immediately
prior to the First Event as if Employee were an employee of FIC during such
24-month period; provided, however, that in the event that Employee's
participation in any such health, disability or life insurance plan or program
of FIC is barred, FIC, at its sole cost and expense, shall arrange to provide
Employee with benefits substantially similar to those which Employee would be
entitled to receive under such plan or program if Employee were not barred from
participation. Benefits otherwise receivable by Employee pursuant to this
section 10(a)(iii) shall be reduced to the extent comparable benefits are
received by Employee from another employer or other third party during such
24-month period, and Employee shall promptly report receipt of any such benefits
to FIC.

                      (D) Any outstanding and unvested stock options granted to
Employee shall be accelerated and become immediately exercisable by Employee and
shall remain exercisable for the lesser of one year from the date of termination
or the original ten-year term of the option and any restricted stock awarded to
Employee and subject to forfeiture shall be fully vested and shall no longer be
subject to forfeiture.

               (ii) FIC shall also pay to Employee all legal fees and expenses
incurred by the Employee as a result of such termination, including, but not
limited to, all such fees and expenses, if any, incurred in contesting or
disputing any such termination or in seeking to obtain or enforce any right or
benefit provided by this Section 10.

               (iii) In addition to all other amounts payable to Employee under
this Section 10(c), Employee shall be entitled to receive all benefits payable
to Employee under any other plan or agreement relating to retirement benefits.

               (iv) Employee shall not be required to mitigate the amount of any
payment or other benefit provided for in this Section 10 by seeking other
employment or otherwise, nor shall the amount of any payment or other benefit
provided for in this Section 10(c) be reduced by any compensation earned by
Employee as the result of employment by another employer after the Termination
Date or otherwise, except as specifically provided in this Agreement.

        11. Conditions to Receipt of Termination Benefits.

        Notwithstanding any other provision of this Agreement, FIC will not pay
to Employee, and Employee will not be entitled to receive, any payment pursuant
to Sections 9(b) or 10(c) unless and until:

               (a) Employee executes, and there shall be effective following any
statutory period for revocation or rescission, a release that irrevocably and
unconditionally releases FIC,

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any person acquiring FIC or its assets, and their past and current shareholders,
directors, officers, employees and agents from and against any and all claims,
liabilities, obligations, covenants, rights and damages of any nature
whatsoever, whether known or unknown, anticipated or unanticipated; provided,
however, that the release shall not adversely affect Employee's rights to
receive benefits to which he is entitled under this Agreement or Employee's
rights to indemnification under applicable law, the charter documents of FIC,
any insurance policy maintained by FIC or any written agreement between FIC and
Employee; and

               (b) Employee executes an agreement prohibiting Employee for a
period of one (1) year following the Termination Date from soliciting,
recruiting or inducing, or attempting to solicit, recruit or induce, any
employee of FIC or of any FIC acquiring FIC or its assets to terminate the
employee's employment.

        12. Definitions.

        As used herein, the following terms shall have the meaning set forth in
below for purposes of this Agreement:

            (a) "Cause" shall mean: (i) an act or acts of personal dishonesty
taken by Employee and intended to result in substantial personal enrichment of
Employee at the expense of the Company, (ii) Employee's willful breach of
Employee's material obligations under this Agreement or Employee's willful
failure or repeated refusal to perform or observe Employee's duties,
responsibilities and obligations as an Employee of the Company for reasons other
than disability or incapacity, (iii) the existence of any court order or
settlement agreement prohibiting Employee's continued employment with the
Company; (iv) if Employee has signed and/or entered into a written or oral
non-competition agreement, confidentiality agreement, proprietary information
agreement, trade secret agreement or any other agreement which would prevent
Employee from working for the Company and/or from performing Employee's duties
at the Company; or (v) the willful engaging by Employee in illegal conduct that
is materially and demonstrably injurious to the Company. For the purposes of
this definition, no act or failure to act on Employee's part shall be considered
"dishonest," "willful" or "deliberate" unless done or omitted to be done by
Employee in bad faith and without reasonable belief that Employee's action or
omission was in, or not opposed, to the best interests of the Company. Any act,
or failure to act, based upon authority given pursuant to a resolution duly
adopted by the Board or based upon the advice of counsel for the Company shall
be conclusively presumed to be done, or omitted to be done, by Employee in good
faith and in the best interests of the Company.

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

               (c) "Pre-Change of Control Good Reason" shall mean, if, prior to
a Change of Control, without the Employee's express written consent, any of the
following shall occur:

                      (i) The assignment to Employee of any material duties
inconsistent with Employee's status or position with FIC, or any other action by
FIC that results in a substantial diminution in such status or position,
excluding any isolated, insubstantial, or

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inadvertent action not taken in bad faith and which is remedied by FIC promptly
after receipt of notice thereof from Employee.

                      (ii) A material reduction by FIC in Employee's annual Base
Salary or target incentive (other than consistently with a reduction instituted
for all senior executives of FIC);

                      (iii) FIC requiring Employee to relocate to any place
other than a location within forty miles of FIC's San Diego location, except for
required travel on FIC business consistent with Section 6 hereof.

               (d) "Post-Change of Control Good Reason" shall mean, if, on or
following a Change of Control, without the Employee's express written consent,
any of the following shall occur:

                      (i) The Assignment to Employee of any material duties
inconsistent with Employee's status or position with FIC, or any other action by
FIC that results in a substantial diminution in such status or position,
excluding any isolated, insubstantial, or inadvertent action not taken in bad
faith and which is remedied by FIC promptly after receipt of notice thereof from
Employee.

                      (ii) A material reduction by FIC in Employee's annual Base
Salary or target incentive in effect immediately prior to the First Change in
Control Event or Termination;

                      (iii) The failure by FIC to continue to provide Employee
with benefits at least as favorable in the aggregate to those enjoyed by
Employee under FIC's pension, life insurance, medical, health and accident,
disability, deferred compensation, incentive awards, employee stock options or
savings plans in which Employee was participating at the time of the First
Change in Control Event, the taking of any action by FIC that would directly or
indirectly materially reduce any of such benefits or deprive Employee of any
material fringe benefit enjoyed at the time of the First Change in Control
Event, or the failure by FIC to provide Employee with the number of paid
vacation days to which Executive is entitled at the time of the First Change in
Control Event, but excluding any failure or action by FIC that is not taken in
bad faith and which is remedied by FIC promptly after receipt of notice thereof
from Employee;

                      (iv) FIC requiring Employee to relocate to any place other
than a location within forty miles of the location at which Employee performed
his primary duties immediately prior to the First Change in Control Event, or if
Employee is based at FIC's principal executive offices to a location more than
forty miles from its location immediately prior to the First Change in Control
Event, except for required travel on FIC business to an extent substantially
consistent with Employee's prior business travel obligations; or

                      (v) The failure of the Company to obtain agreement form
any successor to assume and agree to perform this Agreement, as contemplated in
Section 22(b).

               (e) Other than in Section 10(a) hereof, the term "person" shall
mean an individual, partnership, corporation, estate, trust or other entity.

                                      -11-
<PAGE>

               (f) "Termination Date" shall mean the date of termination of
Employee's employment, which in the case of termination for Disability shall be
the 30th day after notice is given as required in Section 12(b).

               (g) "Transition Period" shall mean the one-year period commencing
on the date of the earliest to occur of an Event described in Section 10(a)(i),
10(a)(ii), 10(a)(iii) or 10(a)(iv) hereof (the "Commencement Date") and ending
on the first anniversary of the Commencement Date.

        13. Excise Tax.

               (a) Notwithstanding anything contained herein to the contrary,
prior to the payment of any amounts pursuant to Section 10(c) hereof, an
independent national accounting firm designated by FIC (the "Accounting Firm")
shall compute whether there would be any "excess parachute payments" payable to
Employee, within the meaning of Section 280G of the Internal Revenue Code of
1986, as amended (the "Code"), taking into account the total "parachute
payments," within the meaning of Section 280G of the Code, payable to Employee
by FIC or any successor thereto under this Agreement and any other plan,
agreement or otherwise. If there would be any excess parachute payments, the
Accounting Firm will compute the net after-tax proceeds to Employee, taking into
account the excise tax imposed by Section 4999 of the Code, if (i) the payments
hereunder were reduced, but not below zero, such that the total parachute
payments payable to Employee would not exceed three (3) times the "base amount"
as defined in Section 280G of the Code, less One Dollar ($1.00), or (ii) the
payments hereunder were not reduced. If reducing the payments hereunder would
result in a greater after-tax amount to Employee, such lesser amount shall be
paid to Employee. If not reducing the payments hereunder would result in a
greater after-tax amount to Employee, such payments shall not be reduced. The
determination by the Accounting Firm shall be binding upon FIC and Employee
subject to the application of Section 13(b) hereof.

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

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

        14. Proprietary Information.

                                      -12-
<PAGE>

        Employee is required to, and agrees to sign and abide by the terms of
Employer's Non-Disclosure Agreement (Exhibit C) and Customer Information
Confidentiality Agreement (Exhibit D) (collectively the "Proprietary Information
Agreements") attached hereto as Exhibits C and D. Employee agrees that the
Non-Disclosure Agreement and Customer Information Confidentiality Agreements are
separate agreements independently supported by good and adequate consideration
and, notwithstanding anything in this Agreement to the contrary, shall be
severable from the other provisions of, and shall survive, this Agreement.

        15. Dispute Resolution Procedure.

        If Employee disputes any determination made by FIC regarding Employee's
eligibility for any Change of Control Events benefits under Section 10, the
amount or terms of payment of any benefits under Section 10, or FIC's
application of any provision of Section 10, then Employee shall, before pursuing
any other remedies that may be available to Employee, seek to resolve such
dispute by submitting a written claim notice to FIC. The notice by Employee
shall explain the specific reasons for Employee's claim and basis therefor. The
Board of Directors shall review such claim and FIC will notify Employee in
writing of its response within sixty (60) days of the date on which Employee's
notice of claim was given. The notice responding to Employee's claim will
explain the specific reasons for the decision. Employee shall submit a written
claim hereunder before pursuing any other process for resolution of such claim.
This Section 15 does not otherwise affect any rights that Employee or FIC may
have in law or equity to seek any right or benefit under this Agreement.

        Nothing herein shall limit any remedy available under the Proprietary
Information Agreements with respect to violations or threatened violations
thereof, including the pursuit of injunctive relief in court.

        16. Representations and Warranty of Employee.

        Employee represents and warrants to FIC that the performance of his
duties hereunder will not violate any agreement with or any trade secret of any
other person or entity.

        17. Notices.

        All notices, requests, demands and other communication called for or
contemplated hereunder shall be in writing and shall be deemed to have been duly
given when delivered personally or when mailed by United States certified or
registered mail, postage prepaid, addressed to the parties or their successors
in interest at the following addresses or such other addresses as the parties
may designate by notice in the manner aforesaid:

        If to FIC:                   Fair, Isaac and Company, Incorporated.
                                     4295 Lexington Avenue North
                                     St. Paul, MN 55126 USA
                                     Attn:  Chief Executive Officer

                                      -13-
<PAGE>

        With a copy to:              Fair, Isaac and Company, Incorporated
                                     4295 Lexington Avenue North
                                     St. Paul, MN 55126 USA
                                     Attn: General Counsel

        If to Employee:

        18. Governing Law.

        This Agreement and the resolution of any disputes hereunder shall be
governed by and construed in accordance with the laws of the State of
California.

        19. Entire Agreement.

        The terms of this Agreement are intended by the parties to be the final
expression of their agreement with respect to the subject matter hereof and may
not be contradicted by evidence of any prior or contemporaneous agreements,
representations or promises of any kind, whether written, oral, express or
implied, between HNC or FIC and Employee with respect to the subject matters
herein, including any former employment agreements. This Agreement is intended
as the complete and exclusive agreement between the parties with respect to
Employee's employment by FIC, and no extrinsic evidence whatsoever may be
introduced in any judicial, administrative, or other legal proceeding involving
this Agreement

        20. Validity.

        If any provision of this Agreement, or the application thereof to any
person, place or circumstance, shall be held to be invalid, unenforceable or
void, the remainder of this Agreement and such provision as applied to other
persons, places and circumstances shall remain in full force and effect.

        21. Employee Acknowledgment.

        Employee acknowledges that he has had an opportunity to consult with his
own separate counsel regarding the terms of this Agreement.

        22. Successors and Assigns.

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

               (b) FIC will require any successor (whether direct or indirect,
by purchase of a majority of the outstanding voting stock of FIC or all or
substantially all of the assets of FIC, or by merger, consolidation or
otherwise), by agreement in form and substance satisfactory to Employee, to
assume expressly and agree to perform this Agreement in the same manner and to

                                      -14-
<PAGE>

the same extent that FIC would be required to perform it if no such succession
had taken place. Failure of FIC to obtain such agreement prior to the
effectiveness of any such succession (other than in the case of a merger or
consolidation) shall be a breach of this Agreement and shall entitle Employee to
compensation from FIC in the same amount and on the same terms as Employee would
be entitled hereunder in the event of termination by FIC without Cause. As used
in this Agreement, "FIC" shall mean FIC as hereinbefore defined and any
successor to its business and/or assets as aforesaid that is required to execute
and deliver the agreement as provided for in this Section 22(b) or that
otherwise becomes bound by all the terms and provisions of this Agreement by
operation of law.

        23. Integration.

        In the event that any payments or benefits become payable to Employee
pursuant to Section 9 or 10 of this Agreement, then this Agreement will
supersede and replace any other agreement, plan or program applicable to
Employee to the extent that such other agreement, plan or program provides for
payments or benefits to Employee arising out of the involuntary termination of
Employee's employment or termination by Employee for Good Reason. In addition,
the acceleration of stock options and lapsing of forfeiture provisions of
restricted stock provided pursuant to Section 10(c)(i)(D) of this Agreement
shall not be subject to the provisions of Article 13 of FIC's 1992 Long-Term
Incentive Plan (or similar successor provision or plan).

        24. No Offsets. No amount payable to Employee pursuant to this Agreement
shall be reduced for purposes of offsetting either directly or indirectly any
indebtedness or liability of Employee to FIC, unless FIC claims in good faith
that an indebtedness or liability of Employee to FIC exists as a result of acts
by Employee that are illegal or constitute a violation of Employee's fiduciary
duties to FIC.

        25. Attorney Fee Reimbursement.

Employee shall be entitled to reimbursement of reasonable attorneys' fees for
reviewing this Agreement and related documentation, not to exceed $10,000.

        26. Miscellaneous.

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

                                      -15-
<PAGE>

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

                                        FAIR, ISAAC AND COMPANY, INCORPORATED

                                        By
                                           -------------------------------------

                                        Title
                                             -----------------------------------

                                        EMPLOYEE

                                        /s/ Kenneth J. Saunders
                                        ----------------------------------------
                                        KENNETH J. SAUNDERS

Exhibits attached:

Exhibit A      Nonstatutory Stock Option Agreement
Exhibit B      1992 Long-Term Incentive Plan
Exhibit C      Employer's Non-Disclosure Agreement
Exhibit D      Customer Information Confidentiality Agreement

                                      -16-
<PAGE>

--------------------------------------------------------------------------------
                                    EXHIBIT A
--------------------------------------------------------------------------------

                         NOTICE OF GRANT OF STOCK OPTION

                      Fair, Isaac and Company, Incorporated
                                 Id: 94:1499887
                              200 Smith Ranch Road
                              San Rafael, CA 94903

--------------------------------------------------------------------------------

Kenneth J. Saunders                          OPTION NUMBER: _________________
                                             PLAN:               None
                                             ID:            _________________

--------------------------------------------------------------------------------

Effective 8/6/2002, you have been granted a Non-Qualified Stock Option to buy
200,000 shares of common stock of Fair, Isaac and Company, Incorporated ("Fair,
Isaac") at $31.2600 per share (the "Option"). The Option will expire on August
5, 2012 (the "Expiration Date"). This Option is not granted pursuant to the
terms of the Fair, Isaac 1992 Long-Term Incentive Plan.

The total option price of the shares granted is $6,252,000.00.

Subject to the Terms and Conditions of Nonstatutory Stock Option Agreement
attached to this Notice, the Option shall become exercisable as to the number of
shares of common stock on the dates specified below.

<TABLE>
<CAPTION>
               SHARES                        VESTING DATE
               ------                        ------------
               <S>                           <C>
               50,000                        8/6/2003
               50,000                        8/6/2004
               50,000                        8/6/2005
               50,000                        8/6/2006
</TABLE>

By your signature and Fair, Isaac's signature below, you and Fair, Isaac agree
that this Notice of Grant of Stock Option and the Terms and Conditions of
Nonstatutory Stock Option Agreement, which is attached hereto constitute the
Nonstatutory Stock Option Agreement governing this Option.

--------------------------------------------------------------------------------

----------------------------------------               -------------------------
Andrea M. Fike, Vice President                         Date:
Fair, Isaac and Company, Incorporated

----------------------------------------               -------------------------
Kenneth J. Saunders                                    Date:

                                      -17-
<PAGE>

                      FAIR, ISAAC AND COMPANY, INCORPORATED

           TERMS AND CONDITIONS OF NONSTATUTORY STOCK OPTION AGREEMENT

                             FOR EXECUTIVE OFFICERS

               These are the terms and conditions applicable to the NONSTATUTORY
STOCK OPTION granted by Fair, Isaac and Company, Incorporated, a Delaware
corporation ("Fair, Isaac"), to you, the optionee listed on the Notice of Grant
of Stock Option attached hereto as the cover page (the "Cover Page"), effective
as of the date of grant. The Cover Page together with these Terms and Conditions
of Nonstatutory Stock Option Agreement constitute the Nonstatutory Stock Option
Agreement (the "Option Agreement").

NONSTATUTORY          This Option is not intended to qualify as an incentive
                      stock option under Section 422 of the Internal Revenue
                      Code.

VESTING               Your Option vests and will be exercisable on the Vesting
                      Dates, as shown on the Cover Page. In addition, your
                      entire Option vests and will be exercisable in full in the
                      event that:

                      -   your service as an employee or director of Fair, Isaac
                          (or any subsidiary) terminates because of your
                          Disability or death, or

                      -   any written employment agreement (other than an option
                          agreement) between you and Fair, Isaac provides for
                          acceleration of this Option in connection with a
                          change in control of Fair, Isaac or upon any other
                          specified event or combination of events.

                      No additional shares become exercisable after your
                      employment or service with Fair, Isaac has terminated for
                      any reason.

EXERCISE PERIOD       The right to purchase shares under this Option Agreement
                      terminates at 3:00 p.m. Pacific Time on the earliest of

                      -   the Expiration Date shown on the Cover Page; or

                      -   the 90th day after the termination date of your
                          service as an employee or director of Fair, Isaac (or
                          any subsidiary), except if your termination results
                          from Retirement, Disability or death or if your
                          termination was in connection with a change in control
                          of Fair, Isaac and any employment agreement or other
                          written agreement between you and Fair, Isaac requires
                          that any payments be made to you as a result of such
                          termination; or

                      -   the anniversary date of your Retirement as an employee
                          or director of Fair, Isaac (or any subsidiary); or

                      -   the anniversary date of the commencement of your
                          Disability, if you become disabled while an employee,
                          director, consultant or advisor of Fair, Isaac (or any
                          subsidiary); or

                      -   the anniversary date of your death, if you die while
                          an employee or director of Fair, Isaac (or any
                          subsidiary); or

                      -   the anniversary date of your termination, if your
                          termination was in connection with a change in control
                          of Fair, Isaac and any employment agreement or other
                          written agreement between you and Fair, Isaac requires
                          that any payments be made to you as a result of such
                          termination.

LEAVES OF             For purposes of this Option, your service does not
ABSENCE               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.

<PAGE>

RESTRICTIONS          You may not exercise this Option if the issuance of shares
ON EXERCISE           at that time would violate any law or regulation, as
                      determined by Fair, Isaac. Moreover, you cannot exercise
                      this Option unless you have returned a signed copy of the
                      Option Agreement to Fair, Isaac.

NOTICE OF             If you do not exercise this Option through an automated
EXERCISE              electronic exercise vehicle approved by Fair, Isaac, then
                      you must notify Fair, Isaac of your intent to exercise
                      this Option by completing the appropriate Notice of
                      Exercise form and delivering it to the address provided on
                      the Notice of Exercise before your right to purchase
                      shares under this Option Agreement terminates. If you send
                      your Notice of Exercise by facsimile transmission, it will
                      be effective only if it is promptly confirmed by filing a
                      form with an original signature.

                      The Notice of Exercise must specify how many shares you
                      wish to purchase and must specify how your shares should
                      be registered (in your name only or in your and your
                      spouse's names as community property or as joint tenants
                      with right of survivorship).

                      If someone else wants to exercise this Option after your
                      death, that person must prove to Fair, Isaac's
                      satisfaction that he or she is entitled to do so.

FORM OF PAYMENT       When you submit your Notice of Exercise, you must include
                      payment of the exercise price shown on the Cover Page for
                      the shares you are purchasing. Payment may be made in one
                      (or a combination of two or more) of the following forms
                      as approved by Fair, Isaac in its sole discretion:

                      -   Your personal check, a cashier's check or a money
                          order;

                      -   Irrevocable directions to a securities broker approved
                          by Fair, Isaac to sell shares underlying this Option
                          and to deliver all or a portion of the sale proceeds
                          to Fair, Isaac in payment of the exercise price and
                          the balance of the sale proceeds to you; all pursuant
                          to a special "Notice of Exercise" form provided by
                          Fair, Isaac; or

                      -   Certificates for shares of Fair, Isaac common stock
                          that you have owned for at least 12 months, along with
                          any forms needed to effect a transfer of those shares
                          to Fair, Isaac with the value of the shares,
                          determined as of the effective date of the exercise of
                          this Option, applied to the exercise price.

WITHHOLDING           You will not be allowed to exercise this Option unless you
TAXES                 make acceptable arrangements to pay any withholding taxes
                      that may be due as a result of the exercise of this
                      Option. These arrangements must be satisfactory to Fair,
                      Isaac. You may direct Fair, Isaac to withhold shares with
                      a market value equal to the withholding taxes due from the
                      shares to be issued as a result of your exercise of this
                      Option.

RESTRICTIONS          By signing the Option Agreement, you agree not to sell any
ON RESALE             shares at a time when applicable laws or Fair, Isaac
                      policies prohibit a sale.

TRANSFER OF           Prior to your death, only you or a permitted assignee as
OPTION                defined herein may exercise this Option (unless this
                      Option or a portion thereof has been transferred to your
                      former spouse by a domestic relations order by a court of
                      competent jurisdiction). You may transfer this Option or a
                      portion of this Option by gift to members of your
                      immediate family, a partnership consisting solely of you
                      and/or members of your immediate family, or to a trust
                      established for the benefit of you and/or members of your
                      immediate family (including a charitable remainder trust
                      whose income beneficiaries consist solely of such
                      persons). For purposes of the foregoing, "immediate
                      family" means your spouse, children or grandchildren,
                      including step-children or step-grandchildren. Any of
                      these persons is a "permitted assignee." However, such
                      transfer shall not be effective until you have delivered
                      to Fair, Isaac notice of such transfer. You cannot
                      transfer, pledge, hypothecate, assign or otherwise dispose
                      of this Option, including using this Option as security
                      for a loan. Any attempts to do any of these things
                      contrary to the provisions of this Option, and the levy of
                      any attachment or similar process upon this Option, shall
                      be null and void. You may, however, dispose of this Option
                      in your will or by a written beneficiary designation. Such
                      a designation must be filed with Fair, Isaac on the proper
                      form.

                                      -2-
<PAGE>

RETENTION             Neither your Option nor the terms of this Option Agreement
RIGHTS                give you the right to continue as an employee or director
                      of Fair, Isaac (or any subsidiaries) in any capacity.
                      Fair, Isaac (and any subsidiaries) reserve the right to
                      terminate your service at any time, with or without cause,
                      subject to the terms of any written employment agreement
                      signed by you and Fair, Isaac.

STOCKHOLDER           You, or your assignees, estate, beneficiaries or heirs,
RIGHTS                have no rights as a stockholder of Fair, Isaac until a
                      certificate for any portion of the shares underlying this
                      Option has been issued. No adjustments are made for
                      dividends or other rights if the applicable record date
                      occurs before your stock certificate is issued.

ADJUSTMENTS           In the event of a subdivision of the common stock of Fair,
                      Isaac ("Common Stock") outstanding, a declaration of a
                      divided payable in Common Stock, a declaration of a
                      dividend payable in a form other than Common Stock in an
                      amount that has a material effect on the price of the
                      Common Stock, a combination or consolidation of the
                      outstanding Common Stock (by reclassification or
                      otherwise) into a lesser number of shares, a
                      recapitalization, a spinoff or a similar occurrence, the
                      Compensation Committee of the Board of Directors of Fair,
                      Isaac shall make appropriate adjustments in one or more of
                      (a) the number of shares underlying this Option, or (b)
                      the exercise price of this Option. Except as provided
                      herein, you shall have no rights by reason of any issue by
                      Fair, Isaac 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. In the event
                      that Fair, Isaac is a party to a merger or other
                      reorganization, this Option shall be subject to the
                      agreement of merger or reorganization. Such agreement may
                      provide, without limitation, for the assumption of this
                      Option by the surviving corporation or its parent, for its
                      continuation by Fair, Isaac (if Fair, Isaac is a surviving
                      corporation), for accelerated vesting or for settlement in
                      cash.

APPLICABLE LAW        This Agreement will be interpreted and enforced under the
                      laws of the State of Delaware (without regard to its rules
                      on choice of law).

OTHER                 This Option Agreement and any written agreement between
AGREEMENTS            you and Fair, Isaac (or any subsidiaries) providing for
                      acceleration of options 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
                      Option. Any other prior agreements, commitments or
                      negotiations concerning this Option are superseded. This
                      Agreement may be amended only in writing.

DEFINITIONS           "Retirement" means that you are eligible for normal
                      retirement or early retirement, as defined as follows:

                      -   "Normal Retirement Age" means age 65

                      -   "Early Retirement" means age 55 and completed 10 Years
                          of Service. One Year of Service is the completion of
                          at least 1,000 hours of service during the year.

                      "Disability" means that you are unable 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.

BY SIGNING THE COVER PAGE, YOU AGREE TO ALL OF THE TERMS AND CONDITIONS
DESCRIBED ABOVE.

                                      -3-<PAGE>
                                                                   Exhibit 10.49

                           INDEMNIFICATION AGREEMENT

        This Indemnification Agreement (this "Agreement"), dated as of _________
___, 2002, between Fair, Isaac and Company, Incorporated, a Delaware corporation
(the "Corporation"), and _____________ ("Indemnitee"),

                              W I T N E S S E T H:

        WHEREAS, Indemnitee is either a member of the board of directors of the
Corporation (the "Board of Directors") or an officer of the Corporation, or
both, and in such capacity or capacities, or otherwise as an Agent (as
hereinafter defined) of the Corporation, is performing a valuable service for
the Corporation; and

        WHEREAS, Indemnitee is willing to serve, continue to serve and to take
on additional service for or on behalf of the Corporation on the condition that
he or she be indemnified as herein provided; and

        WHEREAS, it is intended that Indemnitee shall be paid promptly by the
Corporation all amounts necessary to effectuate in full the indemnity and
advancement of expenses provided for herein:

        NOW, THEREFORE, in consideration of the premises and the covenants in
this Agreement, and of Indemnitee continuing to serve the Corporation as an
Agent and intending to be legally bound hereby, the parties hereto agree as
follows:

        1. Services by Indemnitee. Indemnitee agrees to serve (a) as a director
or an officer of the Corporation, or both, so long as Indemnitee is duly
appointed or elected and qualified in accordance with the applicable provisions
of the Restated Certificate of Incorporation and By-Laws of the Corporation, and
until such time as Indemnitee resigns or fails to stand for election or is
removed from Indemnitee's position, or (b) otherwise as an Agent of the
Corporation. Indemnitee may from time to time also perform other services at the
request or for the convenience of, or otherwise benefiting the Corporation.
Indemnitee may at any time and for any reason resign from such position (subject
to any other contractual obligation or other obligation imposed by operation of
law), in which event the Indemnitee shall have no obligation under this
Agreement to continue to serve in any such position and the Corporation shall
have no obligation under this Agreement to continue Indemnitee in any such
position. The Corporation acknowledges that the execution of this Agreement by
Indemnitee represents Indemnitee's written demand for an indemnification
contract as contemplated by Section 6(b) of Article Third of this Corporation's
Restated Certificate of Incorporation.

        2. Indemnification. Subject to the terms and conditions of this
Agreement, the Corporation hereby agrees to indemnify Indemnitee as follows:

        The Corporation shall, with respect to any Proceeding (as hereinafter
defined) associated with Indemnitee's being an Agent (as hereinafter defined),
indemnify Indemnitee to the fullest extent permitted by applicable law and the
Restated Certificate of Incorporation of the Corporation in effect on the date
hereof or as such law or Restated Certificate of Incorporation may from time

<PAGE>
to time be amended (but, in the case of any such amendment, only to the extent
such amendment permits the Corporation to provide broader indemnification rights
than the law or Restated Certificate of Incorporation permitted the Corporation
to provide before such amendment). The right to indemnification conferred herein
and in the Restated Certificate of Incorporation shall be presumed to have been
relied upon by Indemnitee in serving or continuing to serve the Corporation as
an Agent and shall be enforceable as a contract right. Without in any way
limiting or diminishing the scope of the indemnification provided by this
Section 2, the Corporation agrees to indemnify Indemnitee to the fullest extent
permitted by law if and wherever Indemnitee is or was a party to, or is
threatened to be made a party to, any Proceeding, including without limitation
any Proceeding brought by or in the right of the Corporation, by reason of the
fact that Indemnitee is or was an Agent or by reason of anything done or not
done by Indemnitee in such capacity as an Agent, against all Expenses (as
hereinafter defined) and Liabilities (as hereinafter defined) actually and
reasonably incurred by Indemnitee or on his or her behalf in connection with the
investigation, defense, settlement or appeal of such Proceeding. In addition to,
and not as a limitation of, the foregoing, the rights of indemnification of
Indemnitee provided under this Agreement shall include those rights set forth in
Sections 3 and 8 below. Notwithstanding the foregoing, the Corporation shall not
be required to indemnify Indemnitee in connection with a Proceeding commenced by
Indemnitee unless (i) such Proceeding was commenced by Indemnitee to enforce
Indemnitee's rights under this Agreement or (ii) the commencement of such
Proceeding was authorized by the Board of Directors.

        3. Advancement of Expenses; Letter of Credit.

        (a) Advancement of Expenses. The Corporation agrees with Indemnitee that
all reasonable Expenses incurred by or on behalf of Indemnitee (including costs
of enforcement of this Agreement) in connection with a Proceeding shall be
advanced from time to time by the Corporation to Indemnitee within thirty (30)
days after the receipt by the Corporation of a written request by or on behalf
of Indemnitee for an advance of such Expenses, whether prior to, during or after
final disposition of a Proceeding (including without limitation any Proceeding
brought by or in the right of the Corporation), except to the extent that there
has been a Final Adverse Determination (as hereinafter defined) that Indemnitee
is not entitled to be indemnified for such Expenses. A written request by an
Indemnitee for an advancement of any and all Expenses under this paragraph shall
contain reasonable detail of the Expenses incurred by Indemnitee for which the
Indemnitee is seeking an advance. In the event that such written request shall
be accompanied by an affidavit of counsel to Indemnitee to the effect that such
counsel has reviewed such Expenses and that such Expenses are reasonable in such
counsel's view, then such expenses shall be deemed reasonable in the absence of
clear and convincing evidence to the contrary. By execution of this Agreement,
Indemnitee shall be deemed to have made whatever undertaking as may be required
by law at the time of any advancement of Expenses with respect to repayment to
the Corporation of such advanced Expenses. In the event that the Corporation
shall breach its obligation to advance Expenses under this Section 3, the
parties hereto agree that Indemnitee's remedies available at law would not be
adequate and that Indemnitee would be entitled to the remedies of specific
performance and injunctive relief to enforce such obligation of the Corporation.
The Corporation acknowledges that it has agreed to advance Expenses hereunder in
order to promote the business interests of the Corporation and the Corporation
agrees with Indemnitee that it will not fail to comply with its obligation to
advance Expenses to Indemnitee as required under this Agreement on the ground
that such advancement violates or would violate Section 13(k) of the

                                      -2-

<PAGE>
Securities Exchange Act of 1934, as amended, unless the Corporation has received
an affirmative and unqualified written opinion of Independent Legal Counsel to
the effect that such an advance of Expenses would result in a violation of said
Section 13(k).

        (b) Witness Expenses in Certain Proceedings. Notwithstanding any other
provision of this Agreement to the contrary, to the extent that Indemnitee was
or is, by reason of the fact that the Indemnitee is or was an Agent, a witness
or other non-party participant in any Proceeding to which the Indemnitee is not
made a party, the Corporation shall indemnify the Indemnitee against all
Expenses actually and reasonably incurred by the Indemnitee or on the
Indemnitee's behalf solely in connection with the Indemnitee's being a witness
or other non-party participant in such Proceeding, and in preparing to be a
witness or such other non-party participant in such Proceeding without the need
for any determination with respect to the Indemnitee's conduct pursuant to
Section 5 of this Agreement.

        (c) Letter of Credit. In order to secure the obligations of the
Corporation to indemnify and advance Expenses to Indemnitee pursuant to this
Agreement, the Corporation agrees that it shall obtain and have in force at the
time of any Change in Control (as hereinafter defined) an irrevocable standby
letter of credit naming Indemnitee as the sole beneficiary (the "Letter of
Credit"). The Letter of Credit shall be in an appropriate amount not less than
one million dollars ($1,000,000), shall be issued by a commercial bank
headquartered in the United States having assets in excess of $20 billion and
capital according to its most recent published reports equal to or greater than
the then applicable minimum capital standards promulgated by such bank's primary
federal regulator and shall contain terms and conditions reasonably acceptable
to Indemnitee. The Letter of Credit shall provide that Indemnitee may from time
to time draw certain amounts thereunder, upon written certification by
Indemnitee to the issuer of the Letter of Credit that (i) Indemnitee has made
written request upon the Corporation for an amount not less than the amount
Indemnitee is drawing under the Letter of Credit and that the Corporation has
failed or refused to provide Indemnitee with such amount in full within thirty
(30) days after receipt of the request, and (ii) Indemnitee believes that he or
she is entitled under the terms of this Agreement to the amount that Indemnitee
is drawing upon under the Letter of Credit. The issuance of the Letter of Credit
shall not be an exclusive remedy, nor shall it in any way diminish the
Corporation's obligations to advance Expenses and to indemnify Indemnitee
against Expenses and Liabilities to the full extent required by this Agreement.

        (d) Term of Letter of Credit. Once the Corporation has obtained the
Letter of Credit, the Corporation (or its successor) shall maintain in effect
and renew the Letter of Credit or a substitute letter of credit meeting the
criteria of Section 3(c) during the term of this Agreement. The Letter of Credit
shall have an initial term of five (5) years, be renewed for successive
five-year terms, and always have at least one (1) year of its term remaining.

        4. Presumptions and Effect of Certain Proceedings. Upon making a request
for indemnification, Indemnitee shall be presumed to be entitled to
indemnification under this Agreement and the Corporation shall have the burden
of proof to overcome that presumption in reaching any contrary determination.
The termination of any Proceeding by judgment, order, settlement (whether with
or without court approval), arbitration award or conviction, or upon a plea of
nolo contendere or its equivalent shall not affect this presumption or, except
as determined by a judgment or other final adjudication adverse to Indemnitee,
establish a presumption with

                                      -3-

<PAGE>
regard to any factual matter relevant to determining Indemnitee's rights to
indemnification hereunder. If the forum so empowered to make a determination of
Indemnitee's entitlement to indemnification pursuant to Section 5 hereof shall
have failed to make the requested determination within sixty (60) days after any
judgment, order, settlement, dismissal, arbitration award, conviction,
acceptance of a plea of nolo contendere or its equivalent, or other disposition
or partial disposition of any Proceeding or any other event that could enable
the Corporation to determine Indemnitee's entitlement to indemnification, the
requisite determination that Indemnitee is entitled to indemnification shall be
deemed to have been made.

        5. Procedure for Determination of Entitlement to Indemnification.

        (a) Whenever Indemnitee believes that Indemnitee is entitled to
indemnification pursuant to this Agreement, Indemnitee shall submit a written
request for indemnification to the Corporation. The Corporation's obligation to
comply with such request for indemnification is subject to the condition that
the matter of the Indemnitee's entitlement to such indemnification under
applicable law has been heard before a forum referred to in Section 5(b) below
and such forum shall not have determined that the Indemnitee did not meet the
required standard of conduct under applicable law; provided, however, that such
condition shall not be applicable (and no such hearing or determination shall be
required) (i) where indemnification is mandatory under applicable law, (ii) with
respect to any request for indemnification by an Indemnitee under Section 3(b)
or (iii) in any case in which such determination is, by the express terms of
this Agreement (including but not limited to Section 4 hereof), deemed to have
been made or is otherwise not required to be made under this Agreement, and in
each such case payment of indemnification to which an Indemnitee is entitled
under this Agreement shall be made within thirty (30) days after such request is
received by the Corporation. Any request for indemnification shall include
sufficient documentation or information reasonably available to Indemnitee for
the determination of entitlement to indemnification. In any event, Indemnitee
shall submit Indemnitee's claim for indemnification within a reasonable time,
not to exceed five (5) years after any judgment, order, settlement, dismissal,
arbitration award, conviction, acceptance of a plea of nolo contendere or its
equivalent, or final determination, whichever is the later date for which
Indemnitee requests indemnification. The Secretary or other appropriate officer
of the Corporation shall, promptly upon receipt of Indemnitee's request for
indemnification, advise the Board of Directors in writing that Indemnitee has
made such request. Determination of Indemnitee's entitlement to indemnification
shall be made not later than sixty (60) days after the Corporation's receipt of
Indemnitee's written request for such indemnification, provided that any request
for indemnification for Liabilities, other than amounts paid in settlement,
shall have been made after a determination thereof in a Proceeding.

        (b) The Indemnitee shall be entitled to select the forum in which the
Indemnitee's entitlement to indemnification will be heard, which selection shall
be included in the written request for indemnification referred to in Section
5(a), except that the Indemnitee may not choose to have the stockholders of the
Corporation make such determination without the consent of the Board of
Directors. Subject to the foregoing, the forum shall be any one of the
following:

               (i) the stockholders of the Corporation (with such approval being
        sufficient if it is given by stockholders holding a majority of the
        shares present at a meeting of the stockholders at which a quorum is
        present);

                                      -4-

<PAGE>
               (ii) a majority vote of Disinterested Directors (as hereinafter
        defined), even though less than a quorum;

               (iii) Independent Legal Counsel, whose determination shall be
        made in a written opinion; or

               (iv) a panel of three arbitrators, one selected by the
        Corporation, another by Indemnitee and the third by the first two
        arbitrators; or if for any reason three arbitrators are not selected
        within thirty (30) days after the appointment of the first arbitrator,
        then selection of additional arbitrators shall be made by the American
        Arbitration Association. If any arbitrator resigns or is unable to serve
        in such capacity for any reason, the American Arbitration Association
        shall select such arbitrator's replacement. The arbitration shall be
        conducted pursuant to the commercial arbitration rules of the American
        Arbitration Association now in effect.

        (c) Payment of indemnification for Liabilities and Expenses as to which
Indemnitee is entitled determined pursuant to Section 5 or deemed determined
pursuant to Section 4 shall be made as promptly as practicable after such
determination or deemed determination and in any event within thirty (30) days
thereafter.

        6. Specific Limitations on Indemnification. Notwithstanding anything in
this Agreement to the contrary, the Corporation shall not be obligated under
this Agreement to make any payment to Indemnitee with respect to any Proceeding:

        (a) To the extent that such payment is actually made to Indemnitee under
any insurance policy, or is made to Indemnitee by the Corporation or an
affiliate otherwise than pursuant to this Agreement. Notwithstanding the
availability of such insurance, Indemnitee also may claim indemnification from
the Corporation pursuant to this Agreement by assigning to the Corporation any
claims under such insurance to the extent Indemnitee is paid by the Corporation;

        (b) Provided there has been no Change in Control, for Liabilities in
connection with Proceedings settled by the Indemnitee without the Corporation's
consent, which consent, however, shall not be unreasonably withheld or delayed;

        (c) For an accounting of profits made from the purchase or sale by
Indemnitee of securities of the Corporation within the meaning of Section 16(b)
of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or
similar provisions of any state statutory or common law; or

        (d) To the extent it would be otherwise prohibited by law, if so
established by a judgment or other final adjudication adverse to Indemnitee.

        7. Fees and Expenses of Forum. The Corporation agrees to pay all
reasonable fees and expenses associated with the determination of the
Indemnitee's entitlement to indemnification in accordance with Section 5(b),
including, without limitation, fees and expenses in connection with a meeting of
the stockholders of the Corporation and the reasonable fees and expenses of
Disinterested Directors, Independent Legal Counsel or a panel of three
arbitrators should such Disinterested Directors, Independent Legal Counsel or
such arbitrators be retained to make a

                                      -5-

<PAGE>
determination of Indemnitee's entitlement to indemnification pursuant to Section
5(b) of this Agreement, and the Corporation shall fully indemnify such
Disinterested Directors, Independent Legal Counsel or arbitrators against any
and all expenses and losses incurred by any of them arising out of or relating
to this Agreement or their engagement pursuant hereto.

        8. Remedies of Indemnitee.

        (a) In the event that (i) a determination pursuant to Section 5 hereof
is made that Indemnitee is not entitled to indemnification, (ii) advances of
Expenses are not timely made pursuant to this Agreement, (iii) payment of
indemnification to the Indemnitee has not been timely made pursuant to this
Agreement, or (iv) Indemnitee otherwise seeks enforcement of this Agreement,
then Indemnitee shall be entitled to a final adjudication in the Court of
Chancery of the State of Delaware of the Indemnitee's rights and remedies under
this Agreement (which remedies may include, without limitation, an order
compelling enforcement of the Corporation's obligations under this Agreement
through the remedy of specific performance or injunctive relief). Alternatively,
unless (i) the determination of the Indemnitee's entitlement to indemnification
was made by a panel of arbitrators pursuant to Section 5(b)(iv) hereof, or (ii)
court approval is required by law for the indemnification sought by Indemnitee,
Indemnitee at Indemnitee's option may seek an award in arbitration to be
conducted by a single arbitrator pursuant to the commercial arbitration rules of
the American Arbitration Association now in effect, which award is to be made
within ninety (90) days following the filing of the demand for arbitration. The
Corporation shall not oppose Indemnitee's right to seek any such adjudication or
arbitration award. In any such proceeding or arbitration Indemnitee shall be
presumed to be entitled to indemnification and advancement of Expenses under
this Agreement and the Corporation shall have the burden of proof to overcome
that presumption.

        (b) In the event that a determination that Indemnitee is not entitled to
indemnification, in whole or in part, has been made pursuant to Section 5
hereof, the decision in the judicial proceeding or arbitration provided in
paragraph (a) of this Section 8 shall be made de novo on the merits and
Indemnitee shall not be prejudiced by reason of such prior determination that
Indemnitee is not entitled to indemnification.

        (c) If a determination that Indemnitee is entitled to indemnification
has been made pursuant to Section 5 hereof, or is deemed to have been made
pursuant to Section 4 hereof or otherwise pursuant to the terms of this
Agreement, then the Corporation shall be bound by such determination or deemed
determination in the absence of an intentional misrepresentation or omission of
a material fact by Indemnitee in connection with such determination.

        (d) The Corporation shall be precluded from asserting that the
procedures and presumptions of this Agreement are not valid, binding and
enforceable. The Corporation shall stipulate in any such court or before any
such arbitrator that the Corporation is bound by all the provisions of this
Agreement and is precluded from making any assertion to the contrary.

        (e) Expenses reasonably incurred by Indemnitee in connection with
Indemnitee's request for indemnification under this Agreement, seeking
enforcement of this Agreement or to recover damages for breach of this Agreement
shall be borne by the Corporation when and as

                                      -6-

<PAGE>
incurred by Indemnitee irrespective of any Final Adverse Determination that
Indemnitee is not entitled to indemnification.

        9. Contribution. If the Indemnitee is not entitled to the
indemnification provided in Section 2 for any reason other than the statutory
limitations set forth in the Delaware General Corporation Law, then the
Corporation, in lieu of indemnifying Indemnitee, shall contribute to the amount
of Expenses and Liabilities actually and reasonably incurred and paid or to be
paid by the Indemnitee in such proportion as is deemed fair and reasonable in
light of all the circumstances of the relevant Proceeding to reflect (i) the
relative benefits received by the Corporation on the one hand and the Indemnitee
on the other hand from the transaction from which such Proceeding arose and (ii)
the relative fault of the Corporation on the one hand and of the Indemnitee on
the other hand in connection with the events which resulted in such Expenses and
Liabilities, as well as any other relevant equitable considerations. The
relative fault of the Corporation on the one hand and of the Indemnitee on the
other hand shall be determined by reference to, among other things, the parties'
relative intent, knowledge, access to information, and opportunity to correct or
prevent the circumstances resulting in such Expenses and Liabilities. The
Corporation agrees that it would not be just and equitable if contribution
pursuant to this Section 9 were determined by pro rata allocation or any other
method of allocation which does not take account of the foregoing equitable
considerations.

        10. Partial Indemnification. If the Indemnitee is entitled under any
provision of this Agreement to indemnification by the Corporation for some or a
portion of any Expenses or Liabilities of any type whatsoever, but the
Indemnitee is not entitled, however, to indemnification for the total amount
thereof, then the Corporation shall nevertheless indemnify the Indemnitee for
the portion thereof to which the Indemnitee is entitled.

        11. Maintenance of Insurance; Notice.

        (a) The Corporation represents that it presently has in place certain
directors' and officers' liability insurance policies covering its directors and
officers. Subject only to the provisions within this Section 11, the Corporation
agrees that so long as Indemnitee shall have consented to serve or shall
continue to serve as a director or officer of the Corporation, or both, or as an
Agent of the Corporation, and thereafter so long as Indemnitee shall be subject
to any possible Proceeding (such periods being hereinafter sometimes referred to
as the "Indemnification Period"), the Corporation will use all reasonable
efforts to maintain in effect for the benefit of Indemnitee one or more valid,
binding and enforceable policies of directors' and officers' liability insurance
from established and reputable insurers, providing, in all respects, coverage
both in scope and amount which is no less favorable than that presently
provided. Notwithstanding the foregoing, the Corporation shall not be required
to maintain said policies of directors' and officers' liability insurance during
any time period if during such period such insurance is not reasonably available
or if it is determined in good faith by the then Board of Directors either that:

               (i) The premium cost of maintaining such insurance is
        substantially disproportionate to the amount of coverage provided
        thereunder; or

                                      -7-

<PAGE>
               (ii) The protection provided by such insurance is so limited by
        exclusions, deductions or otherwise that there is insufficient benefit
        to warrant the cost of maintaining such insurance.

        Anything in this Agreement to the contrary notwithstanding, to the
extent that and for so long as the Corporation shall choose to continue to
maintain any policies of directors' and officers' liability insurance during the
Indemnification Period, the Corporation shall maintain similar and equivalent
insurance for the benefit of Indemnitee during the Indemnification Period
(unless such insurance shall be less favorable to Indemnitee than the
Corporation's existing policies).

        (b) If, at the time of the receipt of a written request for
indemnification pursuant to Section 5(a), the Corporation has directors' and
officers' liability insurance in effect, the Corporation shall give prompt
notice of the commencement of the Proceeding to which such indemnification
request relates to the insurer or insurers providing such directors' and
officers' liability insurance in accordance with the procedures set forth in the
respective directors' and officers' liability insurance policies. The
Corporation shall thereafter take all necessary or desirable action to cause
such insurers to pay, on behalf of the Indemnitee, all amounts payable by such
insurers as a result of such proceeding in accordance with the terms of such
directors' and officers' liability insurance policies.

        12. Modification, Waiver, Termination and Cancellation. No supplement,
modification, termination, cancellation or amendment of this Agreement shall be
binding unless executed in writing by both of the parties hereto. No waiver of
any of the provisions of this Agreement shall be deemed or shall constitute a
waiver of any other provisions hereof (whether or not similar), nor shall such
waiver constitute a continuing waiver.

        13. Subrogation. In the event of a payment to the Indemnitee under this
Agreement, the Corporation shall be subrogated to the extent of such payment to
all of the rights of recovery of Indemnitee with respect to the circumstances
giving rise to such payment, and such Indemnitee shall execute all papers
reasonably required and shall do everything that may be necessary to secure any
such subrogation rights, including the execution of such documents reasonably
necessary to enable the Corporation effectively to bring suit to enforce such
rights.

        14. Notice by Indemnitee and Defense of Claim. Indemnitee shall promptly
notify the Corporation in writing upon being served with any summons, citation,
subpoena, complaint, indictment, information or other document relating to any
matter, whether civil, criminal, administrative or investigative, but the
omission so to notify the Corporation will not relieve it from any liability
that it may have to Indemnitee if such omission does not prejudice the
Corporation's rights. If such omission does prejudice the Corporation's rights,
the Corporation will be relieved from liability only to the extent of such
prejudice. Notwithstanding the foregoing, such omission will not relieve the
Corporation from any liability that it may have to Indemnitee otherwise than
under this Agreement. With respect to any Proceeding as to which Indemnitee
notifies the Corporation of the commencement thereof:

        (a) The Corporation will be entitled to participate therein at its own
expense; and

                                      -8-

<PAGE>
        (b) The Corporation jointly with any other indemnifying party similarly
notified will be entitled to assume the defense thereof, with counsel reasonably
satisfactory to Indemnitee; provided, however, that the Corporation shall not be
entitled to assume the defense of any Proceeding without the Indemnitee's
written consent if there has been a Change in Control or if Indemnitee shall
have reasonably concluded that there may be a conflict of interest between the
Corporation and Indemnitee with respect to such Proceeding. After notice from
the Corporation to Indemnitee of the Corporation's election to assume the
defense thereof, the Corporation will not be liable to Indemnitee under this
Agreement for any Expenses subsequently incurred by Indemnitee in connection
with the defense thereof, other than reasonable costs of investigation or as
otherwise provided below. Indemnitee shall have the right to employ Indemnitee's
own counsel in such Proceeding, but the fees and expenses of such counsel
incurred after notice from the Corporation of its assumption of the defense
thereof shall be at the expense of Indemnitee unless:

               (i) the employment of counsel by Indemnitee has been authorized
        by the Corporation;

               (ii) Indemnitee shall have reasonably concluded that counsel
        engaged by the Corporation may not adequately represent Indemnitee due
        to, among other things, actual or potential differing interests; or

               (iii) the Corporation shall not in fact have employed counsel to
        assume the defense in such Proceeding or shall not in fact have assumed
        such defense and be acting in connection therewith with reasonable
        diligence; in each of which cases the fees and expenses of such counsel
        shall be at the expense of the Corporation.

        (c) The Corporation shall not settle any Proceeding in any manner that
would impose any penalty or limitation on Indemnitee without Indemnitee's
written consent; provided, however, that Indemnitee will not unreasonably
withhold his or her consent to any proposed settlement.

        15. Notices. All notices, requests, demands and other communications
hereunder shall be in writing and shall be deemed to have been duly given if (i)
delivered by hand and receipted for by the party to whom said notice or other
communication shall have been directed, or (ii) mailed by certified or
registered mail with postage prepaid, on the third business day after the date
on which it is so mailed:

        (a)    If to Indemnitee, to:

               --------------------------------

               --------------------------------

               --------------------------------

        (b)    If to the Corporation, to:
               Fair, Isaac and Company, Incorporated
               200 Smith Ranch Road
               San Rafael, California 94903
               Attn:  General Counsel

                                      -9-

<PAGE>
or to such other address as may have been furnished to Indemnitee by the
Corporation or to the Corporation by Indemnitee, as the case may be.

        16. Nonexclusivity. The rights of Indemnitee hereunder shall not be
deemed exclusive of any other rights to which Indemnitee may be entitled under
applicable law, the Corporation's Restated Certificate of Incorporation or
By-laws, or any agreements, vote of stockholders, resolution of the Board of
Directors or otherwise, and to the extent that during the Indemnification Period
the rights of the then existing directors and officers are more favorable to
such directors or officers than the rights currently provided to Indemnitee
thereunder or under this Agreement, Indemnitee shall be entitled to the full
benefits of such more favorable rights.

        17. Certain Definitions.

        (a) "Agent" shall mean any person who: (i) is or was a director or
officer of the Corporation or a Subsidiary (as defined below) of the Corporation
or serves or served as a member of any committee of the board of directors of
the Corporation of any Subsidiary; (ii) is or was serving at the request of, for
the convenience of, or to represent the interest of, the Corporation or a
Subsidiary of the Corporation as a director or officer of, or member of a
committee of the board of directors of (or comparable management body of),
another foreign or domestic corporation, partnership, joint venture, limited
liability company, trust or other enterprise or an affiliate of the Corporation;
or (iii) is or was a director or officer (or member of a committee of the board
of directors) of a foreign or domestic corporation which was a predecessor
corporation of the Corporation or a Subsidiary of the Corporation, or is or was
a director or officer (or member of a committee of the board of directors) of
another enterprise or affiliate of the Corporation at the request of, for the
convenience of, or to represent the interests of, such predecessor corporation.
The term "ENTERPRISE" includes, without limitation, any employee benefit plan of
the Corporation, its Subsidiaries, affiliates and predecessor corporations. The
term "SUBSIDIARY" means any corporation of which more than fifty percent (50%)
of the outstanding voting securities is owned directly or indirectly by (i) the
Corporation, (ii) the Corporation and one or more of its Subsidiaries or (iii)
one or more of the Corporation's Subsidiaries.

        (b) "Change in Control" shall mean the occurrence after the date of this
Agreement of any of the following:

               (i) Both (A) any "person" (as defined below) is or becomes the
        "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act),
        directly or indirectly, of securities of the Corporation representing at
        least 15% of the total voting power represented by the Corporation's
        then outstanding voting securities; and (B) the beneficial ownership by
        such person of securities representing such percentage has not been
        approved by a majority of the "continuing directors" (as defined below);

               (ii) Any "person" is or becomes the "beneficial owner" (as
        defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
        of securities of the Corporation representing at least 50% of the total
        voting power represented by the Corporation's then outstanding voting
        securities;

                                      -10-

<PAGE>
               (iii) A change in the composition of the Board of Directors
        occurs, as a result of which fewer than two-thirds of the incumbent
        directors are directors who either (A) had been directors of the
        Corporation on the "look-back date" (as defined below) (the "Original
        Directors") or (B) were elected, or nominated for election, to the Board
        of Directors with the affirmative votes of at least a majority in the
        aggregate of the Original Directors who were still in office at the time
        of the election or nomination and directors whose election or nomination
        was previously so approved (the "continuing directors");

               (iv) The stockholders of the Corporation approve a merger or
        consolidation of the Corporation with any other corporation, if such
        merger or consolidation would result in the voting securities of the
        Corporation outstanding immediately prior thereto representing (either
        by remaining outstanding or by being converted into voting securities of
        the surviving entity) 50% or less of the total voting power represented
        by the voting securities of the Corporation or such surviving entity
        outstanding immediately after such merger or consolidation; or

               (v) The stockholders of the Corporation approve (A) a plan of
        complete liquidation of the Corporation or (B) an agreement for the sale
        or disposition by the Corporation of all or substantially all of the
        Corporation's assets.

        For purposes of Subsection (i) above, the term "person" shall have the
same meaning as when used in Sections 13(d) and 14(d) of the Exchange Act, but
shall exclude (x) a trustee or other fiduciary holding securities under an
employee benefit plan of the Corporation or of a parent or subsidiary of the
Corporation or (y) a corporation owned directly or indirectly by the
stockholders of the Corporation in substantially the same proportions as their
ownership of the common stock of the Corporation.

        For purposes of Subsection (iii) above, the term "look-back date" shall
mean the later of (x) the date hereof or (y) the date 24 months prior to the
date of the event that may constitute a "Change in Control."

        Any other provision of this Section 17(b) notwithstanding, the term
"Change in Control" shall not include a transaction, if undertaken at the
election of the Corporation, the result of which is to sell all or substantially
all of the assets of the Corporation to another corporation (the "surviving
corporation"); provided that the surviving corporation is owned directly or
indirectly by the stockholders of the Corporation immediately following such
transaction in substantially the same proportions as their ownership of the
Corporation's common stock immediately preceding such transaction; and provided,
further, that the surviving corporation expressly assumes this Agreement.

        (c) "Disinterested Director" shall mean a director of the Corporation
who is not or was not a party to or otherwise involved in the Proceeding in
respect of which indemnification is being sought by Indemnitee.

        (d) "Expenses" shall include all direct and indirect costs (including,
without limitation, attorneys' fees, retainers, court costs, transcripts, fees
of experts, witness fees, travel expenses, duplicating costs, printing and
binding costs, telephone charges, postage, delivery service fees, all

                                      -11-

<PAGE>
other disbursements or out-of-pocket expenses and reasonable compensation for
time spent by Indemnitee for which Indemnitee is otherwise not compensated by
the Corporation or any third party) actually and reasonably incurred in
connection with either the investigation, defense, settlement or appeal of a
Proceeding or establishing or enforcing a right to indemnification under this
Agreement, any similar agreement, the Restated Certificate of Incorporation or
By-laws of the Corporation or any Subsidiary, applicable law or otherwise;
provided, however, that "Expenses" shall not include any Liabilities.

        (e) "Final Adverse Determination" shall mean that a determination that
Indemnitee is not entitled to indemnification shall have been made pursuant to
Section 5 hereof and either (i) a final adjudication in the Court of Chancery of
the State of Delaware or decision of an arbitrator pursuant to Section 8(a)
hereof shall have denied Indemnitee's right to indemnification hereunder, or
(ii) Indemnitee shall have failed to file a complaint in a Delaware court or
seek an arbitrator's award pursuant to Section 8(a) for a period of one hundred
eighty (180) days after the determination made pursuant to Section 5 hereof.

        (f) "Independent Legal Counsel" shall mean a law firm or a member of a
firm selected by the Corporation and approved by Indemnitee (which approval
shall not be unreasonably withheld) or, if there has been a Change in Control,
selected by Indemnitee and approved by the Corporation (which approval shall not
be unreasonably withheld), that neither is presently nor in the past five (5)
years has been retained to represent: (i) the Corporation or any of its
Subsidiaries or affiliates, or Indemnitee or any corporation of which Indemnitee
was or is a director, officer, employee or agent, or any subsidiary or affiliate
of such a corporation, in any material matter, or (ii) any other party to the
Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding
the foregoing, the term "Independent Legal Counsel" shall not include any person
who, under the applicable standards of professional conduct then prevailing,
would have a conflict of interest in representing either the Corporation or
Indemnitee in an action to determine Indemnitee's right to indemnification under
this Agreement.

        (g) "Liabilities" shall mean liabilities of any type whatsoever
including, but not limited to, any judgments, fines, ERISA excise taxes and
penalties, penalties and amounts paid in settlement (including all interest
assessments and other charges paid or payable in connection with or in respect
of such judgments, fines, penalties or amounts paid in settlement) of any
Proceeding.

        (h) "Proceeding" shall mean any threatened, pending or completed action,
claim, suit, arbitration, alternate dispute resolution mechanism, investigation,
administrative hearing or any other proceeding whether civil, criminal,
administrative or investigative, including any appeal therefrom, that is
associated with Indemnitee's being an Agent of the Corporation.

        18. Binding Effect; Duration and Scope of Agreement. This Agreement
shall be binding upon and inure to the benefit of and be enforceable by the
parties hereto and their respective successors and assigns (including any direct
or indirect successor by purchase, merger, consolidation or otherwise to all or
substantially all of the business or assets of the Corporation), spouses, heirs
and personal and legal representatives. This Agreement shall continue in effect
during the Indemnification Period, regardless of whether Indemnitee continues to
serve as an Agent.

                                      -12-

<PAGE>
        19. Severability. If any provision or provisions of this Agreement (or
any portion thereof) shall be held to be invalid, illegal or unenforceable for
any reason whatsoever:

        (a) the validity, legality and enforceability of the remaining
provisions of this Agreement shall not in any way be affected or impaired
thereby; and

        (b) to the fullest extent legally possible, the provisions of this
Agreement shall be construed so as to give effect to the intent of any provision
held invalid, illegal or unenforceable.

        20. Governing Law. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Delaware, as applied to
contracts between Delaware residents entered into and to be performed entirely
within the State of Delaware, without regard to conflict of laws rules.

        21. Consent to Jurisdiction. The Corporation and Indemnitee each
irrevocably consent to the jurisdiction of the courts of the State of Delaware
for all purposes in connection with any action or proceeding that arises out of
or relates to this Agreement and agree that any action instituted under this
Agreement shall be brought only in the state courts of the State of Delaware.

        22. Entire Agreement. This Agreement represents the entire agreement
between the parties hereto, and there are no other agreements, contracts or
understandings between the parties hereto with respect to the subject matter of
this Agreement, except (a) as specifically referred to in Section 16 hereof or
(b) [identify any applicable agreements].

        23. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original
but all of which together shall constitute one and the same Agreement.

        IN WITNESS WHEREOF, the Corporation has caused this Agreement to be
executed by a duly authorized officer and Indemnitee has executed this Agreement
as of the date first above written.

                                       FAIR, ISAAC AND COMPANY, INCORPORATED

                                       By
                                          --------------------------------
                                       INDEMNITEE

                                      -13-

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