Document:

EX-10.16

 EXHIBIT 10.16 
 [COMPANY NAME]

 [FORM OF PERFORMANCE SHARE AWARD LETTER FOR THE AMENDED AND RESTATED 2001 MOODY’S CORPORATION KEY EMPLOYEES‘ STOCK INCENTIVE PLAN] 

Dear [Name]: 
 Congratulations! I am pleased to inform you that the
Board of Directors of Moody’s Corporation (“Moody’s”) awarded you [            ] performance shares (“Performance Shares”) on [DATE]. This letter outlines the
key terms and conditions of your Performance Shares grant. 
 Your Performance Shares grant is subject to the terms and conditions of the Amended and
Restated 2001 Moody’s Corporation Key Employees’ Stock Incentive Plan, as amended (the “Plan”). By accepting the grant, you agree to the terms and conditions as set forth in the Plan and in this grant letter, including the terms
and conditions applicable to you based on your country of residence as set forth in the attached Appendix. A copy of the Plan, as well as the prospectus relating to the offering of shares of Moody’s stock pursuant to the Plan, is
enclosed with this letter. You should read each of the Plan and the prospectus in their entirety for a better understanding of your grant. Capitalized terms not defined herein shall have the same meaning ascribed to them in the Plan. 

Moody’s has engaged Fidelity Investments as the Plan administrator. You will be provided with a Fidelity Investments on-line brokerage account, at
no cost to you, in which shares will be delivered when and to the extent that your Performance Shares vest. Once your Performance Shares are issued, you may transfer your shares to another brokerage account or leave them in your Fidelity account,
subject to applicable exchange controls and/or repatriation requirements which may apply based on the country in which you work and/or reside. 
 Your
Performance Shares grant provides you with a right to receive an equity stake in Moody’s and an opportunity for long-term capital appreciation if performance measures are achieved. 

Details of Your Performance Shares Grant 
 As a holder of
Performance Shares, you have an unfunded, unsecured promise of Moody’s to issue shares of Moody’s common stock, par value $0.01 per share, in the future if and to the extent that certain performance goals are achieved. The maximum number
of shares that can be issued to you shall equal two hundred and twenty five percent (225%) of the number of target Performance Shares granted to you. You shall not have the rights of a shareholder, including any right to vote shares or receive
dividends with respect to shares of Moody’s common stock, unless and until such shares are issued pursuant to the terms of this letter at the conclusion of the performance period, as hereinafter defined. In the event of a stock split, a stock
dividend or similar change in Moody’s common stock, the number of your Performance Shares will be adjusted as determined by the Governance and Compensation Committee (the “Committee”) under the Plan. 

Your Performance Shares will vest, subject to your continued employment through the Vesting Date as hereinafter defined, to the extent that Moody’s
or one or more of its Subsidiaries or Affiliates, as applicable, achieves certain performance objectives which will be measured cumulatively over the three calendar years 20[    ]-20[    ] (the
“Performance Period”); provided, however, that the number of Performance Shares treated as vested and the corresponding number of shares actually issued to you as a payout may be less than the number determined by the performance payment
percentages (including zero), at the discretion of the Committee. Consistent with prior years, in the event there is negative total shareholder return over the Performance Period for example, the Committee would consider whether it was appropriate
to exercise negative discretion and reduce the performance payment percentages. If, during the Performance Period, you transfer your employment to or from Moody’s or any Subsidiary or Affiliate, then your Performance Shares shall be divided pro
rata on the basis of the portion of the Performance Period during which you are employed by each employer entity, and the performance goals applicable to employees of your employer entity as of the date of grant of the Performance Shares and any
subsequent employer entities during the Performance Period shall apply to the applicable portion of the Performance Period. The vesting of Performance Shares on the Vesting Date will be determined by the Committee and shall be expressed as a
percentage of the total number of target Performance Shares granted to you as determined pursuant to the following tables, subject to the Committee’s discretion to reduce such percentage. 

  

							
	120	 	MOODY’S  2016 10K	 			

 The following table indicates the weight ascribed to the three performance measures based on the business entity segment for
which each participant performs services: 
  

													
	 	  	Performance Measures	 
	 Entity
	  	MCO Earnings Before
Interest, Taxes,
Depreciation &
Amortization
(“EBITDA”)	 	 	MA Sales	 	  	MIS
Ratings
Quality	 
	Moody’s Corporation and Shared Services	  	 	[__]	% 	 	 	[__]	% 	  	 	[__]	% 
	Moody’s Investors Service	  	 	[__]	% 	 	 	[__]	% 	  	 	[__]	% 
	Moody’s Analytics	  	 	[__]	% 	 	 	[__]	% 	  	 	[__]	% 

 The following table indicates the [YEAR] cumulative three-year targets: 

 

			                     
	 [YEAR] Performance Share Targets

	 Performance Measure
	  	Cumulative
3-Year Target
(millions)
	MCO Profitability (EBITDA)	  	[____]
	MIS Ratings Quality (Average Position)	  	[____]
	MA Sales	  	[__]__

 Payout attributable to the achievement of each performance measure will be determined as follows: 

 

			
		  	Payout Percentage ****
	MCO EBITDA Achievement *	  	
	 Less than [__]% of Target
 [__]% of Target

[__]% of Target
 [__]% of Target

[__]% or more of Target
	  	 [__]%
 [__]%

[__]%
 [__]%

[__]%

		
	MA Sales Achievement **	  	
	 Less than [__]% of Target
 [__]% of Target

[__]% of Target
 [__]% or more of Target
	  	 [__]%
 [__]% - [__]%

[__]% - [__]%
 [__]% - [__]%

		
	MIS Ratings Quality Achievement ***	  	
		
	 Less than [__]% of Target
 [__]% of Target

[__]% of Target
 [__]% of Target

[__]% of Target
 [__]% or more of Target
	  	 [__]%
 [__]%

[__]%
 [__]%

[__]%
 [__]%

  

	*	Moody’s Corporation EBITDA means cumulative EBITDA for the three-year Performance Period. 

	**	Moody’s Analytics Sales means cumulative net sales of Moody’s Analytics for the three-year Performance Period. Funding includes a modifier to increase the funding slope as sales from acquired businesses are
achieved. Funding can be further adjusted up or down depending upon whether the results of the acquisition are above or below the acquisition plan. 

	***	Moody’s Investors Service Ratings Accuracy is the three year Accuracy Ratio (AR) of MIS Ratings. 

	****	Subject to reduction in the Committee’s discretion. 

 Immediately following the conclusion of the Performance Period,
the Committee shall certify whether the performance measures were attained, the percentage of payout, if any, and the date on which your Performance Shares will vest and be issued (the “Vesting Date”). For purposes of this letter, the
Vesting Date shall be the date that the Committee determines the shares will be paid, which is expected to be the first trading day in March (but in no event after March 15th) following the
conclusion of the Performance Period. 

  

							
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 In the event of your Termination of Employment prior to the Vesting Date (for reasons other than your death, Disability or
Retirement after the first anniversary of the grant of the Performance Shares and provided your employment is not terminated involuntarily by Moody’s or its Subsidiary or Affiliate prior to or simultaneous with your Retirement), you will
forfeit all unvested Performance Shares. Moody’s shall have the exclusive discretion to determine when your Termination of Employment occurs for purposes of your Performance Shares grant (including whether you may still be considered to be
employed while on a leave of absence), subject to U.S. Internal Revenue Code Section 409A (“Code Section 409A”) in the event you are a U.S. taxpayer. 

In the event of your Termination of Employment by death, Disability or Retirement (provided your employment is not terminated involuntarily by
Moody’s or its Subsidiary or Affiliate, with or without cause, prior to or simultaneous with any such Retirement), in each case after the first anniversary of the date of your Performance Shares grant hereunder, you shall be entitled to receive
as a payout a pro rata portion of the number of shares issuable pursuant to your Performance Shares based on the number of days of your actual service during the Performance Period, such shares to be issued after the end of the Performance Period on
the originally scheduled Vesting Date set forth above but only if and to the extent that such shares would have been earned by achievement of performance measures and become issuable to you had your Termination of Employment not occurred prior to
the end of the Performance Period; provided, however, that the number of shares actually issued to you may be less than the number determined by the performance payout percentage (including zero), at the discretion of the Committee. 

In the event of a Change in Control, shares or, in the discretion of the Committee, cash equal to the fair market value of the shares as of immediately
prior to the Change in Control, shall be issued in satisfaction of your Performance Shares immediately prior to the Change in Control as if the performance measures for the Performance Period had been achieved at 100% of Target. 

Compliance with Stock Ownership Guidelines 
 As a holder of
Performance Shares, you are subject to Moody’s stock ownership guidelines. You should familiarize yourself with these guidelines, as you are solely responsible for ensuring compliance thereto. To request a copy of the guidelines, please contact
your Human Resources representative. 
 Transferability of Performance Shares 

Your Performance Shares may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by you otherwise than by will or by
the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance will be void and unenforceable against Moody’s. 

Repayment/Forfeiture 
 Any payments or benefits you may receive
hereunder shall be subject to repayment or forfeiture to the extent required by Moody’s policy as in effect from time to time and/or as may be required to comply with the requirements under the U.S. Securities Act of 1933, as amended,
the U.S. Securities Exchange Act of 1934, as amended, rules promulgated by the U.S. Securities and Exchange Commission or any other applicable law, including the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection
Act, or any securities exchange on which Moody’s common stock is listed or traded, as may be in effect from time to time. 
 Nature of the Grant 

In accepting the grant, you acknowledge, understand and agree that: 

(1) the Plan is established voluntarily by Moody’s, it is discretionary in nature and it may be modified, amended, suspended or terminated by
Moody’s at any time, to the extent permitted by the Plan; 
 (2) the Performance Shares grant is voluntary and occasional and does not create any
contractual or other right to receive future performance shares grants, or benefits in lieu of performance shares, even if performance shares have been granted in the past; 

(3) all decisions with respect to future performance shares or other grants, if any, will be at the sole discretion of Moody’s; 

(4) the grant of Performance Shares and your participation in the Plan shall not create a right to employment or be interpreted as forming an employment
or service contract with Moody’s, your employer or any Subsidiary or Affiliate of Moody’s and shall not interfere with the ability of your employer or any Subsidiary or Affiliate of Moody’s, as applicable, to terminate your employment
or service relationship (if any); 
 (5) you are voluntarily participating in the Plan; 

  

							
	122	 	MOODY’S  2016 10K	 			

 (6) the Performance Shares grant and the shares subject to the Performance Shares do not constitute and are
not intended to replace any pension rights or compensation; 
 (7) the Performance Shares grant and the shares subject to the Performance Shares, and
the income and value of same, do not constitute and are not part of normal or expected compensation, salary, remuneration or wages for purposes of calculating any severance, resignation, termination, redundancy, end-of-service payments, holiday pay,
bonuses, long-service awards, pension or retirement benefits or similar mandatory payments; 
 (8) the future value of the underlying shares is
unknown, indeterminable and cannot be predicted with certainty; 
 (9) unless otherwise agreed with Moody’s, the Performance Shares grant and the
shares subject to the Performance Shares, and the income and value of same, are not granted as consideration for, or in connection with, the service you may provide as a director of a Subsidiary or Affiliate of Moody’s; and 

(10) in addition to paragraphs (1) through (9) above, the following provisions will also apply to you if you are employed outside the United
States: 
 (a) the Performance Shares and the shares subject to the Performance Shares are not part of normal or expected compensation
or salary for any purpose; 
 (b) no claim or entitlement to compensation or damages shall arise from forfeiture of the Performance
Shares resulting from your Termination of Employment (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where you are employed or the terms of your employment agreement, if any)
and in consideration of the grant of Performance Shares to which you are otherwise not entitled, you irrevocably agree never to institute any claim against Moody’s, its Subsidiaries or Affiliates and your employer, waive your ability, if any,
to bring such a claim, and release Moody’s, its Subsidiaries or Affiliates and your employer from any such claim that may arise; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by
participating in the Plan, you shall be deemed irrevocably to have agreed not to pursue such claim and agree to execute any and all documents necessary to request dismissal or withdrawal of such claim; and 

(c) neither your employer nor Moody’s (nor any of its Subsidiaries or Affiliates) shall be liable for any foreign exchange rate
fluctuation between your local currency and the United States Dollar that may affect the value of your Performance Shares or any amounts due to you pursuant to the settlement of your Performance Shares or the subsequent sale of shares acquired upon
settlement. 
 No Advice Regarding Grant 
 Moody’s is not
providing any tax, legal or financial advice, nor is Moody’s making any recommendations regarding your participation in the Plan or your acquisition or sale of the underlying shares. You are advised to consult with your own personal tax, legal
and financial advisors regarding your participation in the Plan before taking any action related to the Plan. 
 Responsibility for Taxes 

You acknowledge that regardless of any action taken by Moody’s or your employer, the ultimate liability for all income tax, social insurance, payroll
tax, fringe benefit tax, payment on account or other tax-related items related to your participation in the Plan and legally applicable to you (“Tax-Related Items”), is and remains your responsibility and may exceed the amount, if any,
actually withheld by Moody’s or your employer. You further acknowledge that Moody’s and/or your employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of
your Performance Shares grant, including the grant vesting or settlement of your Performance Shares, the subsequent sale of shares acquired pursuant to such settlement and the receipt of any dividends; and (2) do not commit to and are under no
obligation to structure the terms of the grant or any aspect of your Performance Shares to reduce or eliminate your liability for Tax-Related Items or achieve any particular tax result. Further, if you are subject to Tax-Related Items in more than
one jurisdiction, you acknowledge that Moody’s and/or your employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction. 

Prior to any relevant taxable or tax withholding event, as applicable, you agree to make adequate arrangements satisfactory to Moody’s and/or your
employer to satisfy all Tax-Related Items. In this regard, you authorize Moody’s or its agent to satisfy the obligations with regard to all Tax-Related Items by withholding in shares to be issued upon settlement of your Performance Shares. In
the event that such withholding in shares is problematic under applicable tax or securities law or has materially adverse accounting 

  

							
		 	MOODY’S  2016 10K	 	 	123	 

 
consequences, by your acceptance of your Performance Shares, you authorize and direct Moody’s and any brokerage firm determined acceptable to Moody’s to sell on your behalf a whole
number of shares from those shares issuable to you as Moody’s determines to be appropriate to generate cash proceeds sufficient to satisfy the obligation for Tax-Related Items. 

Depending on the withholding method, Moody’s and/or your employer may withhold or account for Tax-Related Items by considering applicable minimum
statutory withholding amounts or other applicable withholding rates, including maximum applicable rates, in which case you may receive a cash refund of any over-withheld amount not remitted to the tax authorities on your behalf and will have no
entitlement to the shares equivalent. If the obligation for Tax-Related Items is satisfied by withholding in shares, for tax purposes you will be deemed to have been issued the full number of shares subject to your Performance Shares that have been
earned by achievement of performance goals hereunder, notwithstanding that a number of the shares are withheld solely for the purpose of paying the Tax-Related Items. 

Finally, you shall pay to Moody’s or your employer, including through withholding from your wages or other cash compensation paid to you by
Moody’s or your employer, any amount of Tax-Related Items that Moody’s or your employer may be required to withhold or account for as a result of your participation in the Plan that cannot be satisfied by the means previously described.
Moody’s may refuse to deliver the shares or the proceeds from your Performance Shares award if you fail to comply with your obligations in connection with the Tax-Related Items. 

Code Section 409A 
 For purposes of U.S. taxpayers, the
provisions of this grant of Performance Shares are intended to either be exempt from Section 409A of the Code under the “short-term deferral” exception or comply with Section 409A of the Code, and the provisions of this grant
will be interpreted, operated and administered in a manner that is consistent with this intent. In furtherance of this intent, the Committee may, at any time and without your consent, modify the terms of this grant as it determines appropriate to
comply with the requirements of Section 409A of the Code and the related U.S. Department of Treasury guidance. Moody’s makes no representation or covenant to ensure that your Performance Shares or other payment hereunder are exempt from or
compliant with Section 409A of the Code, and will have no liability to you or any other party if your Performance Shares or other payment hereunder that is intended to be exempt from, or compliant with, Section 409A of the Code, is not so
exempt or compliant or for any action taken by the Committee with respect thereto. 
 Data Privacy 

You hereby explicitly and unambiguously consent to the collection, use and transfer, in electronic or other form, of your personal data as described
in this document and any other Plan materials (“Data”) by and among, as applicable, your employer and Moody’s and its Subsidiaries or Affiliates for the exclusive purpose of implementing, administering and managing your participation
in the Plan. 
 You understand that Data may include certain personal information about you, including, but not limited to, your name,
home address and telephone number, email address, date of birth, social insurance, passport or other identification number (e.g., resident registration number), salary, nationality, job title, any shares of stock or directorships held in
Moody’s, details of all Performance Share grants or any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in your favor, for the exclusive purpose of implementing, administering and managing the
Plan. 
 You understand that Data will be transferred to Fidelity Investments, or such other stock plan service provider as may be
selected by Moody’s in the future, which is assisting Moody’s with the implementation, administration and management of the Plan. You understand that the recipients of Data may be located in the United States or elsewhere, and that a
recipient’s country of operation (e.g., the United States) may have different data privacy laws and protections than your country. You understand if you reside outside the United States that you may request a list with the names and addresses
of any potential recipients of the Data by contacting your local human resources representative. 
 You authorize Moody’s, Fidelity
Investments and any other possible recipients which may assist Moody’s (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for
the sole purposes of implementing, administering and managing your participation in the Plan. You understand that Data will be held only as long as is necessary to implement, administer and manage your participation in the Plan. You understand that
if you reside outside the United States you may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without
cost to you, by contacting in writing your local human resources representative. Further, you understand that you are providing the 

  

							
	124	 	MOODY’S  2016 10K	 			

 
consents herein on a purely voluntary basis. If you do not consent, or if you later seek to revoke your consent, your employment status with your employer will not be adversely affected; the only
consequence of refusing or withdrawing your consent is that Moody’s would not be able to grant you Performance Shares or other equity awards or administer or maintain such awards. Therefore, you understand that refusing or withdrawing your
consent may affect your ability to participate in the Plan. For more information on the consequences of your refusal to consent or withdrawal of consent, you understand that you may contact your local human resources representative. 

Electronic Delivery and Acceptance 
 Moody’s may, in its
sole discretion, decide to deliver by electronic means any documents related to current or future participation in the Plan. You hereby consent to receive such documents by electronic delivery and agree to participate in the Plan through an on-line
or electronic system established and maintained by Moody’s or any third party designated by Moody’s. 
 Governing Law, Venue, Documents and Severability

 Your Performance Shares grant is made in the state of Delaware and is governed by, and subject to, the laws of the state of Delaware, applicable
to contracts made and to be performed in the state of Delaware without reference to its conflicts of laws principles, and the requirements of the New York Stock Exchange as well as the terms and conditions set forth herein. 

Any and all disputes relating to, concerning or arising from this letter, or relating to, concerning or arising from the relationship between the parties
evidenced by your Performance Shares or this letter, shall be brought and heard exclusively in the United States District Court for the District of Delaware or the Delaware Superior Court, New Castle County. Each of the parties hereby represents and
agrees that such party is subject to the personal jurisdiction of said courts, hereby irrevocably consents to the jurisdiction of such courts in any legal or equitable proceedings related to, concerning or arising from such dispute, and waives, to
the fullest extent permitted by law, any objection which such party may now or hereafter have that the laying of the venue of any legal or equitable proceedings related to, concerning or arising from such dispute which is brought in such courts is
improper or that such proceedings have been brought in an inconvenient forum. 
 If you have received this letter or any other document related to the
Plan translated into a language other than English, and if the translated version is different than the English version, the English version will control. 

The terms and conditions provided herein are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in
whole or in part, the remaining provisions shall nevertheless be binding and enforceable. 
 Compliance with Law 

Notwithstanding any other provision of the Plan or this letter, unless there is an available exemption from any registration, qualification or other legal
requirement applicable to the shares, Moody’s shall not be required to deliver any shares issuable upon settlement of your Performance Shares prior to the completion of any registration or qualification of the shares under any local, state,
federal or foreign securities or exchange control law or under rulings or regulations of the U.S. Securities and Exchange Commission (“SEC”) or of any other governmental regulatory body, or prior to obtaining any approval or other
clearance from any local, state, federal or foreign governmental agency, which registration, qualification or approval Moody’s shall, in its absolute discretion, deem necessary or advisable. You understand that Moody’s is under no
obligation to register or qualify the shares with the SEC or any state or foreign securities commission or to seek approval or clearance from any governmental authority for the issuance or sale of the shares. Further, you agree that Moody’s
shall have unilateral authority to amend the Plan and the terms of your Performance Shares without your consent to the extent necessary to comply with securities or other laws applicable to issuance of shares. 

Insider Trading Restriction/Market Abuse Laws 
 You acknowledge
that you may be subject to insider trading restrictions and/or market abuse laws, which may affect your ability to acquire or sell shares or rights to shares (e.g., Performance Shares) under the Plan during such times as you are considered to have
“inside information” regarding Moody’s (as defined by or determined under the laws in your country). Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under
any applicable Moody’s insider trading policy. You acknowledge that it is your responsibility to comply with any applicable restrictions, and you are advised to speak to your personal advisor on this matter. 

  

							
		 	MOODY’S  2016 10K	 	 	125	 

 Foreign Asset/Account Reporting 

Please be aware that your country of residence may have certain foreign asset and/or account reporting requirements which may affect your ability to
acquire or hold shares under the Plan or cash received from participating in the Plan (including from any dividends received or sale proceeds arising from the sale of shares) in a brokerage or bank account outside your country of residence. Your
country may require that you report such accounts, assets or transactions to the applicable authorities in that country. 
 You acknowledge that it is
your responsibility to be informed of and compliant with such regulations, and you are advised to speak to your personal advisor on this matter. 
 Appendix

 Notwithstanding any provisions in this letter, your Performance Shares grant shall be subject to any special terms and conditions set forth for
your country in any Appendix to this letter for your country. Moreover, if you relocate to one of the countries included in the Appendix, the special terms and conditions for such country will apply to you, to the extent Moody’s determines that
the application of such terms and conditions is necessary or advisable for legal or administrative reasons. The Appendix constitutes part of this letter. 

Imposition of Other Requirements 
 Moody’s reserves the
right to impose other requirements on your participation in the Plan, on your Performance Shares and on any shares acquired pursuant to your Performance Shares, to the extent Moody’s determines it is necessary or advisable for legal or
administrative reasons, and to require you to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing. 
 Waiver 

You acknowledge that waiver by Moody’s of breach of any provision of this letter shall not operate or be construed as a waiver of any other provision
of this letter, or of any subsequent breach by you or any other participant in the Plan. 
 * * * 

If you have any questions regarding this one-time grant, please contact your Human Resources representative. 

 

	
	Sincerely,
	
	[MOODY’S CORPORATION]

  

							
	126	 	MOODY’S  2016 10KEX-10.17

 EXHIBIT 10.17 
 [COMPANY] 

[FORM OF NON-QUALIFIED STOCK OPTION GRANT AGREEMENT FOR THE AMENDED AND RESTATED 2001 MOODY’S CORPORATION KEY EMPLOYEES’ STOCK INCENTIVE PLAN] 

Dear [Name]: 
 Congratulations! I am pleased to inform you that the
Board of Directors of Moody’s Corporation (“Moody’s”) awarded you [            ] stock options (“options”) with an exercise price of
US$[            ] on [            ]. This letter outlines the key terms and conditions of your option grant. 

Your option grant is subject to the terms and conditions of the Amended and Restated 2001 Moody’s Corporation Key Employees’ Stock Incentive
Plan, as amended (the “Plan”). By accepting the grant, you agree to the terms and conditions as set forth in the Plan and in this grant letter, including the terms and conditions applicable to you based on your country of residence as set
forth in the attached Appendix. A copy of the Plan, as well as the prospectus relating to the offering of shares of Moody’s stock pursuant to the Plan, is enclosed with this letter. You should read the Plan and the prospectus in their entirety
for a better understanding of your grant. Capitalized terms not defined herein shall have the same meaning ascribed to them in the Plan. 

Moody’s has engaged Fidelity Investments as the Plan administrator. Each Moody’s employee who received an option will be provided with a
Fidelity Investments on-line brokerage account, at no cost to the employee, through which Moody’s options may be exercised. Generally, once you exercise your options and purchase shares, you may transfer your shares to another brokerage account
or leave them in your Fidelity account, subject to applicable exchange controls and/or repatriation requirements which may apply based on the country in which you work and/or reside. 

Your options provide you with a right to receive an equity stake in Moody’s and an opportunity for long-term capital appreciation. 

Details of Your Stock Option Grant 
 Your options give you the
right to buy Moody’s stock at a fixed price in the future. This is called the exercise price. The value of your options is tied directly to the stock market price of Moody’s stock during the life span of the options. The higher the stock
price, the more valuable your options become. 
 Your option grant is a grant of U.S. non-qualified options, which expires 10 years after the date of
grant, or upon the expiration any applicable post-termination exercise period following your Termination of Employment, if earlier, as set forth in the Plan. Moody’s shall have the exclusive discretion to determine when your Termination of
Employment occurs for purposes of your option grant. You should review the enclosed copy of the Plan for details about the effect of a Termination of Employment on your equity award. 

Subject to you continuing to provide services as an employee to Moody’s or a Subsidiary or Affiliate, your options will vest and become exercisable
with respect to 25% of the shares on each of the first, second, third and fourth anniversaries of the date of grant, so that your options will be 100% vested and exercisable after the fourth anniversary of the date of grant. 

In the event of your Termination of Employment due to your death or Disability after the first anniversary of the date of grant, the vesting of the
option will be accelerated as of the date of Termination of Employment, and your options will be exercisable, as set forth in the Plan. 
 In the event
of your Termination of Employment due to Retirement after the first anniversary of the date of grant, the option shall continue to vest during the Post-Retirement Exercise Period set forth in the Plan and, to
the extent vested, shall be exercisable as set forth in the Plan. 
 You may exercise all or a portion of your options to purchase shares, to the
extent vested, at the fixed exercise price at any time after vesting commences and on or before the expiration date as described above. You may exercise the vested portion of your options by contacting Fidelity Investments either on-line or by using
the toll-free number, depending on your means of exercise. 

  

							
		 	MOODY’S  2016 10K	 	 	127	 

 Transferability of Options 

Your options may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by you otherwise than by will or by the laws
of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance will be void and unenforceable against Moody’s. During your lifetime, your options are exercisable only by you. 

Nature of the Grant 
 In accepting the grant, you acknowledge,
understand and agree that: 
 (1) the Plan is established voluntarily by Moody’s, it is discretionary in nature and it may be modified, amended,
suspended or terminated by Moody’s at any time, to the extent permitted by the Plan; 
 (2) the grant of the option is voluntary and occasional
and does not create any contractual or other right to receive future option grants, or benefits in lieu of options, even if options have been granted in the past; 

(3) all decisions with respect to future option or other grants, if any, will be at the sole discretion of Moody’s; 

(4) the option grant and your participation in the Plan shall not create a right to employment or be interpreted as forming an employment or service
contract with Moody’s, your employer or any Subsidiary or Affiliate of Moody’s and shall not interfere with the ability of Moody’s, your employer or any Subsidiary or Affiliate of Moody’s, as applicable, to terminate your
employment or service relationship (if any); 
 (5) you are voluntarily participating in the Plan; 

(6) the option and the shares subject to the option do not constitute and are not intended to replace any pension rights or compensation; 

(7) the option and the shares subject to the option, and the income and value of same, do not constitute and are not part of normal or expected
compensation, salary, remuneration or wages for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, holiday pay, bonuses, long-service awards, pension or retirement or welfare benefits or
similar mandatory payments; 
 (8) the future value of the underlying shares is unknown, indeterminable and cannot be predicted with certainty; 

(9) if the underlying shares do not increase in value, the options will have no value; 

(10) if you exercise your options and obtain shares, the value of those shares acquired upon exercise may increase or decrease in value, even below the
fixed exercise price; 
 (11) unless otherwise agreed with Moody’s, the option and the shares subject to the option, and the income and value of
same, are not granted as consideration for, or in connection with, the service you may provide as a director of a Subsidiary or Affiliate of Moody’s; 

(12) unless otherwise provided in the Plan or by Moody’s in its discretion, your option and the benefits evidenced by this letter do not create any
entitlement to have your options or any such benefits transferred to, or assumed by, another company nor to be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the shares; and 

(13) in addition to paragraphs (1) through (12) above, the following provisions shall also apply to you if you are employed outside the United
States: 
 (a) no claim or entitlement to compensation or damages shall arise from forfeiture of the options or termination of your
right to exercise the options resulting from your Termination of Employment (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where you are employed or the terms of your
employment agreement, if any) and in consideration of the grant of the options to which you are otherwise not entitled, you irrevocably agree never to institute any claim against Moody’s, any of its Subsidiaries and Affiliates or your employer,
waive your ability, if any, to bring such a claim, and release Moody’s, its Subsidiaries and Affiliates and your employer from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction,
then, by participating in the Plan, you shall be deemed irrevocably to have agreed not to pursue such claim and agree to execute any and all documents necessary to request dismissal or withdrawal of such claim; 

  

							
	128	 	MOODY’S  2016 10K	 			

 (b) your options and the shares subject to your options are not part of normal or expected
compensation or salary for any purpose; and 
 (c) neither your employer nor Moody’s (nor any of its Subsidiaries or Affiliates)
shall be liable for any foreign exchange rate fluctuation between your local currency and the United States Dollar that may affect the value of your option grant or any amounts due to you pursuant to the exercise of the option or the subsequent sale
of shares acquired upon exercise. 
 No Advice Regarding Grant 

Moody’s is not providing any tax, legal or financial advice, nor is Moody’s making any recommendations regarding your participation in the Plan
or your acquisition or sale of the underlying shares. You are advised to consult with your own personal tax, legal and financial advisors regarding your participation in the Plan before taking any action related to the Plan. 

Responsibility for Taxes 
 You acknowledge that, regardless of
any action taken by Moody’s or your employer, the ultimate liability for all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to your participation in the Plan and legally
applicable to you (“Tax-Related Items”), is and remains your responsibility and may exceed the amount, if any, actually withheld by Moody’s or your employer. You further acknowledge that Moody’s and/or your employer (1) make
no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the option, including the grant, vesting or exercise of the option, the subsequent sale of shares acquired pursuant to such exercise
and the receipt of any dividends, and (2) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the option to reduce or eliminate your liability for Tax-Related Items or achieve any particular tax
result. Further, if you are subject to Tax-Related Items in more than one jurisdiction, you acknowledge that Moody’s and/or your employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more
than one jurisdiction. 
 Prior to any relevant taxable or tax withholding event, as applicable, you agree to make adequate arrangements satisfactory
to Moody’s and/or your employer to satisfy all Tax-Related Items. In this regard, you authorize Moody’s, your employer or their respective agents, at their discretion, to satisfy the obligations with regard to all Tax-Related Items by one
or a combination of the following: 
 (1) withholding from your wages or other cash compensation paid to you by Moody’s and/or your employer; or

 (2) withholding from proceeds of the sale of shares acquired upon exercise either through a voluntary sale or through a mandatory sale arranged by
Moody’s (on your behalf pursuant to this authorization without further consent); 
 Depending on the withholding method, Moody’s and/or your
employer may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates, including maximum applicable rates, in which case you may receive a cash refund of any
over-withheld amount not paid to the tax authorities on your behalf and will have no entitlement to the shares equivalent. 
 Finally, you shall pay to
Moody’s or your employer any amount of Tax-Related Items that Moody’s or your employer may be required to withhold or account for as a result of your participation in the Plan that cannot be satisfied by the means previously described.
Moody’s may refuse to deliver the shares or the proceeds from the sale of shares if you fail to comply with your obligations in connection with the Tax-Related Items. 

Data Privacy 
 You hereby explicitly and
unambiguously consent to the collection, use and transfer, in electronic or other form, of your personal data as described in this document and any other Plan materials (“Data”) by and among, as applicable, your employer and Moody’s
and its Subsidiaries and Affiliates for the exclusive purpose of implementing, administering and managing your participation in the Plan. 

You understand that Data may include certain personal information about you, including, but not limited to, your name, home address and telephone
number, email address, date of birth, social insurance, passport or other identification number (e.g., resident registration number), salary, nationality, job title, any shares of stock or directorships held in Moody’s, details of all options
or any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in your favor, for the exclusive purpose of implementing, administering and managing the Plan. 

  

							
		 	MOODY’S  2016 10K	 	 	129	 

 You understand that Data will be transferred to Fidelity Investments, or such other stock plan service
provider as may be selected by Moody’s in the future, which is assisting Moody’s with the implementation, administration and management of the Plan. You understand that the recipients of Data may be located in the United States or
elsewhere, and that a recipient’s country of operation (e.g., the United States) may have different data privacy laws and protections than your country. You understand that if you reside outside the United States, you may request a list with
the names and addresses of any potential recipients of the Data by contacting your local human resources representative. 
 You authorize
Moody’s, Fidelity Investments and any other possible recipients which may assist Moody’s (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in
electronic or other form, for the sole purposes of implementing, administering and managing your participation in the Plan. You understand that Data will be held only as long as is necessary to implement, administer and manage your participation in
the Plan. You understand that if you reside outside the United States, you may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the
consents herein, in any case without cost to you, by contacting in writing your local human resources representative. Further, you understand that you are providing the consents herein on a purely voluntary basis. If you do not consent, or if you
later seek to revoke your consent, your employment status with your employer will not be adversely affected; the only consequence of refusing or withdrawing your consent is that Moody’s would not be able to grant you options or other equity
awards or administer or maintain such awards. Therefore, you understand that refusing or withdrawing your consent may affect your ability to participate in the Plan. For more information on the consequences of your refusal to consent or withdrawal
of consent, you understand that you may contact your local human resources representative. 
 Electronic Delivery and Acceptance 

Moody’s may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means. You
hereby consent to receive such documents by electronic delivery and agree to participate in the Plan through an on-line or electronic system established and maintained by Moody’s or any third party designated by Moody’s. 

Governing Law, Venue, Documents and Severability 
 This equity
award is made in the state of Delaware and is governed by, and subject to, the laws of the state of Delaware applicable to contracts made and to be performed in the state of Delaware without regard to any conflicts of law provisions, as provided in
the Plan, and the requirements of the New York Stock Exchange as well as the terms and conditions set forth herein. 
 Any and all disputes relating
to, concerning or arising from this letter, or relating to, concerning or arising from the relationship between the parties evidenced by the option grant or this letter, shall be brought and heard exclusively in the United States District Court for
the District of Delaware or the Delaware Superior Court, New Castle County. Each of the parties hereby represents and agrees that such party is subject to the personal jurisdiction of said courts, hereby irrevocably consents to the jurisdiction of
such courts in any legal or equitable proceedings related to, concerning or arising from such dispute, and waives, to the fullest extent permitted by law, any objection which such party may now or hereafter have that the laying of the venue of any
legal or equitable proceedings related to, concerning or arising from such dispute which is brought in such courts is improper or that such proceedings have been brought in an inconvenient forum. 

If you have received this letter or any other document related to the Plan translated into a language other than English, and if the translated version
is different than the English version, the English version will control. 
 The terms and conditions provided herein are severable and if any one or
more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable. 

Compliance with Law 
 Notwithstanding any other provision of the
Plan or this letter, unless there is an available exemption from any registration, qualification or other legal requirement applicable to the shares, Moody’s shall not be required to deliver any shares issuable upon exercise of the option prior
to the completion of any registration or qualification of the shares under any local, state, federal or foreign securities or exchange control law or under rulings or regulations of the U.S. Securities and Exchange Commission (“SEC”) or of
any other governmental regulatory body, or prior to obtaining any approval or other clearance from any local, state, federal or foreign governmental agency, which registration, qualification or approval Moody’s shall, in its absolute
discretion, deem necessary or advisable. You understand that Moody’s is under no obligation to register or qualify the shares with the SEC or any state or foreign securities commission or 

  

							
	130	 	MOODY’S  2016 10K	 			

 
to seek approval or clearance from any governmental authority for the issuance or sale of the shares. Further, you agree that Moody’s shall have unilateral authority to amend the Plan and
the terms of the option grant without your consent to the extent necessary to comply with securities or other laws applicable to issuance of shares. 
 Insider
Trading Restriction/Market Abuse Laws 
 You acknowledge that you may be subject to insider trading restrictions and/or market abuse laws, which may
affect your ability to acquire or sell shares or rights to shares (e.g., options) under the Plan during such times as you are considered to have “inside information” regarding Moody’s (as defined by or determined under the laws
in your country). Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Moody’s insider trading policy. You acknowledge that it is your
responsibility to comply with any applicable restrictions, and you are advised to speak to your personal advisor on this matter. 
 Foreign Asset/Account Reporting

 Please be aware that your country of residence may have certain foreign asset and/or account reporting requirements which may affect your ability
to acquire or hold shares under the Plan or cash received from participating in the Plan (including from any dividends received or sale proceeds arising from the sale of shares) in a brokerage or bank account outside your country of residence. Your
country may require that you report such accounts, assets or transactions to the applicable authorities in that country. 
 You acknowledge that it is
your responsibility to be informed of and compliant with such regulations, and you are advised to speak to your personal advisor on this matter 
 Appendix 

Notwithstanding any provisions in this letter, the option shall be subject to any special terms and conditions set forth in any Appendix to this letter
for your country. Moreover, if you relocate to one of the countries included in the Appendix, the special terms and conditions for such country will apply to you, to the extent Moody’s determines that the application of such terms and
conditions is necessary or advisable for legal or administrative reasons. The Appendix constitutes part of this letter. 
 Imposition of Other Requirements 

Moody’s reserves the right to impose other requirements on your participation in the Plan, on the option and on any shares acquired under the Plan,
to the extent Moody’s determines it is necessary or advisable for legal or administrative reasons, and to require you to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing. 

Waiver 
 You acknowledge that waiver by Moody’s of breach
of any provision of this letter shall not operate or be construed as a waiver of any other provision of this letter, or of any subsequent breach by you or any other participant in the Plan. 

* * If you have any questions regarding this one-time grant, please contact your Human Resources representative. 

 

	
	Sincerely,
	
	[MOODY’S CORPORATION]

  

							
		 	MOODY’S  2016 10K	 	 	131

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