Document:

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                                                                   EXHIBIT 10.63

[QUADRAMED(TM) LOGO]
Stock Exchange Deferred Compensation Plan
Exchange Agreement
================================================================================

        THIS EXCHANGE AGREEMENT (this "Agreement") is entered into as of January
3rd, 2000 between QuadraMed Corporation (the "Employer"), and John Cracchiolo
(the "Participant").

                                     Recital

        A. The Participant is a key employee of the Employer, and the Employer
desires to have the continued services and counsel of the Participant.

        B. The Employer has adopted, effective January 3, 2000, the QuadraMed
Corporation Stock Exchange Deferred Compensation Plan (the "Plan"), as amended
from time to time, and the Participant has been selected to participate in the
Plan.

        C. The Participant desires to participate in the Plan and exchange
options previously granted to the Participant by the Employer for a deferred
compensation account under the Plan.

                                    Agreement

        NOW THEREFORE, it is mutually agreed that:

        1. Definitions. Unless otherwise provided in this Agreement, the
capitalized terms in this Agreement shall have the same meaning as under the
Plan's master plan document (the "Plan Document").

        2. Integrated Agreement: Parties Bound. The Plan Document, a copy of
which has been delivered to the Participant, is hereby incorporated into and
made a part of this Agreement as though set forth in full in this Agreement. The
parties to this Agreement agree to and shall be bound by, and have the benefit
of, each and every provision of the Plan as set forth in the Plan Document. This
Agreement and the Plan Document, collectively, shall be considered one complete
contract between the parties.

        3. Acknowledgment. The Participant hereby acknowledges that he or she
has read and understands this Agreement and the Plan Document.

        4. Exchange of Options. The Participant hereby agrees that the stock
options previously granted to the Participant in 1998 to acquire 150,000 shares
of stock in the Employer (the "Stock Options") are hereby cancelled and of no
further affect. As consideration for such cancellation the

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[QUADRAMED(TM) LOGO]
Stock Exchange Deferred Compensation Plan
Exchange Agreement
================================================================================

Participant agrees that he shall have an amount equal to $1,208,000 credited to
his account under this Plan; such amount being equal to the value of the Stock
Options, as computed using the Black Scholes method of valuation as of January
3rd, 2000. One half of this initial account balance ($604,000) shall be deemed
to earn a rate of return based on the Employer Stock Fund under the Plan. The
remainder of the initial account balance shall be deemed to earn a rate of
return based on the investment elections selected by the Participant in
accordance with the Election Form.

        5. Conditions to Participation. As a condition to participation in the
Plan, the Participant must complete, sign, date and return to the Committee an
original copy of this Agreement, an Election Form and a Beneficiary Designation
and Spousal Consent Form.

        6. Successors and Assigns. This Agreement shall inure to the benefit of,
and be binding upon the Employer, its successors and assigns, and the
Participant.

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[QUADRAMED(TM) LOGO]
Stock Exchange Deferred Compensation Plan
Exchange Agreement
================================================================================

        7. Governing Law. To the extent not preempted by the Employee Retirement
Income Security Act of 1974, as amended, this Agreement shall be governed by and
construed under the laws of the State of California, as in effect at the time of
the execution of this Agreement.

        IN WITNESS WHEREOF, the Participant has signed and the Employer has
accepted this Plan Agreement as of the date first written above.

                                        PARTICIPANT:

                                        /s/ JOHN V. CRACCHIOLO            1/3/00
                                        ----------------------------------------
                                        Signature of Participant            Date

                                        JOHN V. CRACCHIOLO
                                        ----------------------------------------
                                        Type or Print Name

AGREED AND ACCEPTED BY THE COMPANY:

QuadraMed Corporation
                                        COMMITTEE:

                                        /s/ E.A. ROSKOVENSKY
                                        ----------------------------------------
                                        Signature of Committee Member

                                        E.A. ROSKOVENSKY
                                        ----------------------------------------
                                        Type or Print Name

                                       3<PAGE>   1
                                                                   EXHIBIT 10.64

QUADRAMED CORPORATION
Supplemental Executive Retirement Plan
Master Plan Document
================================================================================

                            EFFECTIVE JANUARY 1, 2000

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QUADRAMED CORPORATION
Supplemental Executive Retirement Plan
Master Plan Document
================================================================================

                              QUADRAMED CORPORATION
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

                            EFFECTIVE JANUARY 1, 2000

                                     PURPOSE

        The purpose of this Plan is to provide specified benefits to a select
group of management and highly compensated employees of QuadraMed, a Delaware
corporation, and its subsidiaries, if any, that sponsor this Plan. This Plan
shall be unfunded for tax purposes and for purposes of Title I of ERISA.

                             ARTICLE 1 DEFINITIONS

        For purposes hereof, unless otherwise clearly apparent from the context,
the following phrases or terms shall have the following indicated meanings:

1.1     "Actuarial Equivalent" shall mean an actuarial equivalent value of an
        amount payable in a different form or at a different date computed on
        the basis of (a) the Applicable Mortality Table and (b) the Applicable
        Interest Rate for the second month prior to the month in which the
        payment is made or commences. For purposes of the preceding definition,
        "Applicable Mortality Table" shall mean the "applicable mortality table"
        described in Code section 417(e)(3), and "Applicable Interest Rate"
        shall mean the annual interest rate on 30-year Treasury securities as
        described in Code section 417(e)(3).

1.2     "Beneficiary" shall mean the individual designated, in accordance with
        Article 9, that is entitled to receive benefits under this Plan upon the
        death of a Participant.

1.3     "Beneficiary Designation Form" shall mean the form established from time
        to time by the Plan Administrator that a Participant completes, signs
        and returns to the Plan Administrator to designate a Beneficiary.

1.4     "Board" shall mean the board of directors of the Company.

1.5     "Change in Control" shall mean the first to occur of any of the
        following events:

        (a)     a merger or acquisition in which the Company is not the
                surviving entity, except for a transaction the principal purpose
                of which is to change the State of the Company's incorporation;

        (b)     a stockholder sale, transfer or other disposition of all or
                substantially all of the assets of the Company;

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QUADRAMED CORPORATION
Supplemental Executive Retirement Plan
Master Plan Document
================================================================================

        (c)    a transfer of all or substantially all of the Company's assets
               pursuant to a partnership or joint venture agreement or similar
               arrangement where the Company's resulting interest is less than
               fifty percent (50%);

        (d)    any reverse merger in which the Company is the surviving entity
               but in which fifty percent (50%) or more of the Company's
               outstanding voting stock is transferred to holders different from
               those who held the stock immediately prior to such merger;

        (e)    on or after the date hereof, a change in ownership of the Company
               through an action or series of transactions, such that any person
               is or becomes the beneficial owner, directly or indirectly, of
               securities of the Company representing fifty percent (50%) or
               more of the securities of the combined voting power of the
               Company's outstanding securities; or

        (f)    a majority of the members of the Board are replaced during any
               twelve-month period by directors whose appointment or election is
               not endorsed by a majority of the members of the Board prior to
               the date of such appointment of election.

1.6     "Claimant" shall have the meaning set forth in Section 8.1.

1.7     "Code" shall mean the Internal Revenue Code of 1986, as amended from
        time to time.

1.8     "Company" shall mean QuadraMed, a Delaware corporation.

1.9     "Disability" shall mean a period of disability during which a
        Participant qualifies for benefits under the Participant's Employer's
        Executive Group Disability Plan or, if a Participant does not
        participate in such a plan, a period of disability during which the
        Participant would have qualified for benefits under such a plan had the
        Participant been a participant in such a plan, as determined in the sole
        discretion of the Plan Administrator. If the Participant's Employer does
        not sponsor such a plan or discontinues to sponsor such a plan,
        Disability shall be determined by the Plan Administrator in its sole
        discretion.

1.10    "Employer(s)" shall mean the Company and any subsidiaries of the Company
        that have been selected by the Board to participate in the Plan.

1.11    "ERISA" shall mean the Employee Retirement Income Security Act of 1974,
        as amended from time to time.

1.12    "Highest Annual Compensation" shall mean a Participant's annual
        Compensation that is highest during his or her last ten calendar years
        of employment (including the annualized compensation for the calendar
        year in which the event that entitled the Participant to a distribution
        of benefits under this Plan occurred). For purposes of the preceding
        definition, "Compensation" shall mean the annual compensation, including
        bonuses, but excluding

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QUADRAMED CORPORATION
Supplemental Executive Retirement Plan
Master Plan Document
================================================================================

        commissions, overtime, relocation expenses, non-monetary awards,
        directors fees and other fees and automobile allowances paid to a
        Participant for employment services rendered to any Employer, and such
        other nonrecurring payments as may be determined by the Plan
        Administrator, before reduction for compensation deferred pursuant to
        all qualified, non-qualified and Code Section 125 plans of any Employer.

1.13    "Involuntary Termination" shall mean the Termination of Employment of a
        Participant who has an employment agreement with an Employer, but only
        if such Termination of Employment meets the requirements for an
        involuntary termination of employment under the terms of such employment
        agreement. Any use of the term "Involuntary Termination" in this Plan
        shall not apply to any Participant who does not have a currently
        effective employment agreement with an Employer containing the defined
        term "Involuntary Termination".

1.14    "Participant" shall mean any employee (i) who is selected to participate
        in the Plan, (ii) who elects to participate in the Plan, (iii) who signs
        a Plan Agreement and a Beneficiary Designation Form, (iv) whose signed
        Plan Agreement Form and Beneficiary Designation Form are accepted by the
        Plan Administrator, (v) who commences participation in the Plan, and
        (vi) whose Plan Agreement has not terminated.

1.15    "Plan" shall mean the Company's Supplemental Executive Retirement Plan,
        which shall be evidenced by this instrument and by each Plan Agreement,
        as amended from time to time.

1.16    "Plan Administrator" shall mean the plan administrator described in
        Article 7.

1.17    "Plan Agreement" shall mean a written agreement, as may be amended from
        time to time, which is entered into by and between an Employer and a
        Participant. Each Plan Agreement executed by a Participant shall provide
        for the entire benefit to which such Participant is entitled under the
        Plan, and the Plan Agreement bearing the latest date of acceptance by
        the Plan Administrator shall govern such entitlement.

1.18    "Plan Year" shall, for the first Plan Year, begin on January 1, 2000 and
        end on December 31, 2000. For each Plan Year thereafter, the Plan Year
        shall begin on January 1 of each year and continue through December 31.

1.19    "Preretirement Survivor Benefit" shall mean a benefit that is the
        Actuarial Equivalent of the Participant's Vested SERP Benefit as of the
        date of such Participant's death and that is payable monthly to such
        Participant's Beneficiary in the form of a 20-year installment benefit.

1.20    "SERP Benefit" shall mean a 20-year installment benefit, payable monthly
        and commencing at age sixty (60), equal to the product of 0.05
        multiplied by the Participant's Highest Annual Compensation multiplied
        by his or her Years of Service (not to exceed 13) multiplied by

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QUADRAMED CORPORATION
Supplemental Executive Retirement Plan
Master Plan Document
================================================================================

        1/12. Notwithstanding the foregoing, if a Participant experiences a
        Termination of Employment that is an Involuntary Termination other than
        a Termination for Cause, "SERP Benefit" shall mean a lump sum amount
        that is the Actuarial Equivalent of a 20-year installment benefit
        payable monthly and commencing as of the first day of the month
        following such Involuntary Termination, equal to the product of 0.65
        multiplied by the Participant's Highest Annual Compensation multiplied
        by 1/12.

1.21    "Termination of Employment" shall mean a Participant ceasing to be an
        employee of all Employers, voluntarily or involuntarily, but shall
        exclude cessation of employment with all Employers as a result of death
        or Disability.

1.22    "Termination for Cause" shall have the meaning assigned to such term in
        a Participant's employment agreement with the Employer, or if the
        Participant has no such employment agreement, the meaning assigned to
        such term in the QuadraMed Employee Manual, as such manual may be
        amended from time to time.

1.23    "Trust" shall mean the trust established pursuant to that certain Master
        Trust Agreement, dated as of January 1, 2000, between the Company and
        the trustee named therein, as amended from time to time.

1.24    "Vested" shall mean that portion of a Participant's benefits under this
        Plan in which the Participant has a nonforfeitable right or vested
        interest as determined in accordance with Article 3 below.

1.25    "Waiting Period Requirement" shall mean both (i) the attainment of age
        twenty-one (21) and (ii) a Participant's continued employment for an
        Employer for one Year of Service, commencing with the Participant's date
        of hire.

1.26    "Years of Service" shall mean the total number of full years in which a
        Participant has been employed by one or more Employers. For purposes of
        this definition, a year of employment shall be a 365 day period (or 366
        day period in the case of a leap year) that, for the first year of
        employment, commences on the Employee's date of hire and that, for any
        subsequent year, commences on an anniversary of that hire date. Any
        partial year of employment shall not be counted.

1.27    "Years of Plan Participation" shall mean the total number of full years
        in which a Participant has been selected to participate in the Plan. For
        purposes of this definition, a year of Plan Participation shall be a 365
        day period (or 366 day period in the case of a leap year) that, for the
        first year of Plan participation, commences on the date the Employee
        commences Plan participation and that, for any subsequent year,
        commences on an anniversary of that participation date. Any partial year
        of Plan participation shall not be counted.

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QUADRAMED CORPORATION
Supplemental Executive Retirement Plan
Master Plan Document
================================================================================

                                    ARTICLE 2
                                  ELIGIBILITY

2.1     SELECTION BY PLAN ADMINISTRATOR. Participation in the Plan shall be
        limited to a select group of management and highly compensated employees
        of the Employers who have met the Waiting Period Requirements. From that
        group, the Plan Administrator shall select, in its sole discretion,
        employees to participate in the Plan.

2.2     ENROLLMENT REQUIREMENTS. As a condition to participation, each selected
        employee shall complete, execute and return to the Plan Administrator a
        Plan Agreement and a Beneficiary Designation Form. In addition, the Plan
        Administrator shall establish from time to time such other enrollment
        requirements as it determines in its sole discretion are necessary.

2.3     COMMENCEMENT OF PARTICIPATION. Provided an employee selected to
        participate in the Plan has met all enrollment requirements set forth in
        this Plan and required by the Plan Administrator, that employee shall
        commence participation in the Plan on the date specified by the Plan
        Administrator. If a selected employee fails to meet all such
        requirements prior to that date, that employee shall not be eligible to
        participate in the Plan until the completion of those requirements.

                                    ARTICLE 3
                                    VESTING

3.1     VESTING IN BENEFITS.

        (a)    GENERAL. Except as provided in Sections 3.1(b) or 9.4 below, each
               Participant shall have a nonforfeitable right or vested interest
               in his or her SERP Benefit according to the following vesting
               schedule:
<TABLE>
<CAPTION>

                        -------------------------------------------------
                             YEARS OF PLAN          VESTED PERCENTAGE
                             PARTICIPATION
                        -------------------------------------------------
<S>                     <C>                         <C>
                              Less than 7                   0
                        -------------------------------------------------
                               7 or more                   100%
                        -------------------------------------------------
</TABLE>

        (b)    SPECIAL. Notwithstanding Section 3.1(a) above, and subject to
               Section 9.4 below, a Participant, or his or her Beneficiary in
               the case of a survivor benefit, shall have a nonforfeitable right
               or vested interest in the Participant's SERP Benefit upon the
               Participant's death or Disability, upon a Change in Control, or
               upon the Participant's Involuntary Termination other than a
               Termination for Cause.

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                                    ARTICLE 4
                                    BENEFITS

4.1     ELIGIBILITY FOR BENEFITS.

        (a)     TERMINATION BENEFIT. If a Participant experiences a Termination
                of Employment, then he or she shall be entitled to his or her
                Vested SERP Benefit.

        (b)     DISABILITY BENEFIT. If a Participant suffers a Disability, he or
                she shall be entitled to his or her Vested SERP Benefit.

        (c)     SURVIVOR'S BENEFITS. If a Participant dies prior to the
                commencement of benefits under this Plan, his or her Beneficiary
                shall be entitled to receive the Participant's Vested SERP
                Benefit. If a Participant dies after the commencement of his or
                her benefits under this Plan, his or her Beneficiary shall be
                entitled to receive any remaining payments at the time and in
                the amount they would have been paid to the Participant if he or
                she had not died.

4.2     PAYMENT OF BENEFITS. Payments of benefits shall be made in the following
        manner.

        (a)     TERMINATION OF EMPLOYMENT. If a Participant's benefits become
                payable because of his or her Termination of Employment under
                Section 4.1(a), such benefit payments shall commence as of the
                later of the first day of the month following such Termination
                of Employment or the first day of the month following his or her
                attainment of age 55. If such benefits are to be paid or
                commence other than the month following the month in which the
                Participant attained age 60, he or she shall receive the
                Actuarial Equivalent of his or her Vested SERP Benefit.
                Notwithstanding the foregoing, if a Participant's benefit
                becomes payable because of a Termination of Employment that is
                an Involuntary Termination other than a Termination for Cause,
                his or her SERP Benefit shall be paid in a lump sum as of the
                first day of the month following such Involuntary Termination.

        (b)     DISABILITY, OR DEATH PRIOR TO COMMENCEMENT OF BENEFITS. If a
                Participant's benefits become payable because of his or her
                Disability, or because of his or her death prior to the
                commencement of benefit payments under this Plan, such benefit
                payments shall commence as of the first day of the month
                following such Disability or death. If such benefits are to be
                paid or commence other than the month following the month in
                which the Participant attained age 60, the Participant, or the
                Participant's Beneficiary, shall receive the Actuarial
                Equivalent of his or her Vested SERP Benefit.

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Supplemental Executive Retirement Plan
Master Plan Document
================================================================================

4.3     ALTERNATIVE FORMS OF PAYMENT; ELECTIONS.

        (a)     LUMP SUM. A Participant or his or her Beneficiary, as the case
                may be, may elect, at any time at least twelve months before the
                date he or she commences to receive benefit payments under this
                Plan, to receive those payments in a lump sum, based on the
                Actuarial Equivalent of his or her Vested SERP Benefit.

        (b)     WITHDRAWAL ELECTION. A Participant or his or her Beneficiary, as
                the case may be, may elect, at any time after he or she
                commences to receive benefits payments under this Plan, to
                receive those payments in a lump sum, based on the Actuarial
                Equivalent of his or her remaining Vested SERP Benefit less a
                10% penalty (as described below) (the net amount shall be
                referred to as the "Benefit Amount"). No election to partially
                accelerate benefits shall be allowed. The Participant shall make
                this election by giving the Plan Administrator advance written
                notice of the election in a form determined from time to time by
                the Plan Administrator. The penalty shall be equal to 10% of the
                Participant's remaining Vested SERP Benefit, determined on an
                Actuarial Equivalent basis. The Participant shall be paid the
                Benefit Amount within 60 days of his or her election. Once the
                Benefit Amount is paid, the Participant's participation in the
                Plan shall terminate and the Participant shall not be eligible
                to participate in the Plan in the future.

        (c)     PLAN ADMINISTRATOR DISCRETION. Upon the request of a
                Participant, the Plan Administrator, in its sole discretion and
                consistent with its established procedures and rules, may
                consider other forms of benefit payments, or the timing of
                benefit payments, as it deems necessary and prudent under the
                circumstances.

4.4     LIMITATION ON BENEFITS. Notwithstanding the foregoing provisions of this
        Article 4, in no event shall a Participant or his or her Beneficiary
        receive more than one form of benefit under this Article 4.

4.5     WITHHOLDING AND PAYROLL TAXES. The Employers shall withhold from any and
        all benefits made under this Article 4, all federal, state and local
        income, employment and other taxes required to be withheld by the
        Employer in connection with the benefits hereunder, in amounts to be
        determined in the sole discretion of the Employers.

                                    ARTICLE 5
               TERMINATION, AMENDMENT OR MODIFICATION OF THE PLAN

5.1     TERMINATION. Each Employer reserves the right to terminate the Plan at
        any time with respect to its participating employees by the actions of
        its board of directors. The termination of the Plan shall not adversely
        affect any Participant or his or her Beneficiary who has a 100% Vested
        SERP Benefit under the Plan as of the date of termination; provided,
        however, that the Employer shall have the right to accelerate benefit
        payments by paying the Actuarial

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Supplemental Executive Retirement Plan
Master Plan Document
================================================================================

        Equivalent value of such payments. For all other Participants, upon the
        termination of the Plan, all Plan Agreements shall terminate and the
        Actuarial Equivalent of a Participant's accrued SERP Benefit shall be
        paid out in a lump sum.

5.2     AMENDMENT. Any Employer may, at any time, amend or modify the Plan in
        whole or in part with respect to its participating employees by the
        actions of its board of directors; provided, however, that no amendment
        or modification shall be effective to decrease or restrict a
        Participant's then accrued SERP Benefit, determined on an Actuarial
        Equivalent basis. The amendment or modification of the Plan shall not
        affect any Participant or his or her Beneficiary who has become entitled
        to the payment of benefits under the Plan as of the date of the
        amendment or modification; provided, however, that the Employer shall
        have the right to accelerate installment payments by paying the
        Actuarial Equivalent value of such payments either in a lump sum or in
        some other accelerated form of payment.

5.3     TERMINATION OF PLAN AGREEMENT. Absent the earlier termination,
        modification or amendment of the Plan, the Plan Agreement of any
        Participant shall terminate upon the full payment of the applicable
        Vested SERP Benefit as provided under Article 4.

                                    ARTICLE 6
                         OTHER BENEFITS AND AGREEMENTS

6.1     COORDINATION WITH OTHER BENEFITS. The benefits provided for a
        Participant under this Plan are in addition to any other benefits
        available to such Participant under any other plan or program for
        employees of the Employers. The Plan shall supplement and shall not
        supersede, modify or amend any other such plan or program except as may
        otherwise be expressly provided.

                                    ARTICLE 7
                           ADMINISTRATION OF THE PLAN

7.1     PLAN ADMINISTRATOR DUTIES. This Plan shall be administered by a Plan
        Administrator which shall consist of the Board, or such committee as the
        Board shall appoint. Members of the Plan Administrator may be
        Participants under this Plan. The Plan Administrator shall also have the
        discretion and authority to (i) make, amend, interpret and enforce all
        appropriate rules and regulations for the administration of this Plan
        and (ii) decide or resolve any and all questions including
        interpretations of this Plan, as may arise in connection with the Plan.

7.2     AGENTS. In the administration of this Plan, the Plan Administrator may
        employ agents and delegate to them such administrative duties as it sees
        fit, (including acting through a duly appointed representative), and may
        from time to time consult with counsel who may be counsel to any
        Employer.

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Supplemental Executive Retirement Plan
Master Plan Document
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7.3     BINDING EFFECT OF DECISIONS. The decision or action of the Plan
        Administrator with respect to any question arising out of or in
        connection with the administration, interpretation and application of
        the Plan and the rules and regulations promulgated hereunder shall be
        final and conclusive and binding upon all persons having any interest in
        the Plan.

7.4     INDEMNITY OF PLAN ADMINISTRATOR. All Employers shall indemnify and hold
        harmless the members of the Plan Administrator against any and all
        claims, losses, damages, expenses or liabilities arising from any action
        or failure to act with respect to this Plan, except in the case of
        willful misconduct by the Plan Administrator or any of its members.

7.5     EMPLOYER INFORMATION. To enable the Plan Administrator to perform its
        functions, each Employer shall supply full and timely information to the
        Plan Administrator on all matters relating to the compensation of its
        Participants, the date and circumstances of the retirement, Disability,
        death or Termination of Employment of its Participants, and such other
        pertinent information as the Plan Administrator may reasonably require.

                                    ARTICLE 8
                               CLAIMS PROCEDURES

8.1     PRESENTATION OF CLAIM. Any Participant or Beneficiary of a deceased
        Participant (such Participant or Beneficiary being referred to below as
        a "Claimant") may deliver to the Plan Administrator a written claim for
        a determination with respect to the amounts distributable to such
        Claimant from the Plan. If such a claim relates to the contents of a
        notice received by the Claimant, the claim must be made within 60 days
        after such notice was received by the Claimant. The claim must state
        with particularity the determination desired by the Claimant. All other
        claims must be made within 180 days of the date on which the event that
        caused the claim to arise occurred. The claim must state with
        particularity the determination desired by the Claimant.

8.2     NOTIFICATION OF DECISION. The Plan Administrator shall consider a
        Claimant's claim within a reasonable time, and shall notify the Claimant
        in writing:

        (a)     that the Claimant's requested determination has been made, and
                that the claim has been allowed in full; or

        (b)     that the Plan Administrator has reached a conclusion contrary,
                in whole or in part, to the Claimant's requested determination,
                and such notice must set forth in a manner calculated to be
                understood by the Claimant:

                (i)     the specific reason(s) for the denial of the claim, or
                        any part of it;

                (ii)    specific reference(s) to pertinent provisions of the
                        Plan upon which such denial was based;

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Master Plan Document
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                (iii)   a description of any additional material or information
                        necessary for the Claimant to perfect the claim, and an
                        explanation of why such material or information is
                        necessary; and

                (iv)    an explanation of the claim review procedure set forth
                        in Section 8.3 below.

8.3     REVIEW OF A DENIED CLAIM. Within 60 days after receiving a notice from
        the Plan Administrator that a claim has been denied, in whole or in
        part, a Claimant (or the Claimant's duly authorized representative) may
        file with the Plan Administrator a written request for a review of the
        denial of the claim. Thereafter, but not later than 30 days after the
        review procedure began, the Claimant (or the Claimant's duly authorized
        representative):

        (a)     may review pertinent documents;

        (b)     may submit written comments or other documents; and/or

        (c)     may request a hearing, which the Plan Administrator, in its sole
                discretion, may grant.

8.4     DECISION ON REVIEW. The Plan Administrator shall render its decision on
        review promptly, and not later than 60 days after the filing of a
        written request for review of the denial, unless a hearing is held or
        other special circumstances require additional time, in which case the
        Plan Administrator's decision must be rendered within 120 days after
        such date. Such decision must be written in a manner calculated to be
        understood by the Claimant, and it must contain:

        (a)     specific reasons for the decision;

        (b)     specific reference(s) to the pertinent Plan provisions upon
                which the decision was based; and

        (c)    such other matters as the Plan Administrator deems relevant.

8.5     LEGAL ACTION. A Claimant's compliance with the foregoing provisions of
        this Article 8 is a mandatory prerequisite to a Claimant's right to
        commence any legal action with respect to any claim for benefits under
        this Plan.

                                    ARTICLE 9
                            BENEFICIARY DESIGNATION

9.1     BENEFICIARY. Each Participant shall have the right, at any time, to
        designate his or her Beneficiary(ies) (both primary as well as
        contingent) to receive any benefits payable under the Plan to a
        beneficiary upon the death of a Participant. The Beneficiary designated
        under this Plan may be the same as or different from the Beneficiary
        designation under any other plan of an Employer in which the Participant
        participates.

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9.2     BENEFICIARY DESIGNATION; CHANGE; SPOUSAL CONSENT. A Participant shall
        designate his or her Beneficiary by completing and signing the
        Beneficiary Designation Form, and returning it to the Plan Administrator
        or its designated agent. A Participant shall have the right to change a
        Beneficiary by completing, signing and otherwise complying with the
        terms of the Beneficiary Designation Form and the Plan Administrator's
        rules and procedures, as in effect from time to time. If the Participant
        names someone other than his or her spouse as a Beneficiary, a spousal
        consent, in the form designated by the Plan Administrator, must be
        signed by that Participant's spouse and returned to the Plan
        Administrator. Upon the acceptance by the Plan Administrator of a new
        Beneficiary Designation Form, all Beneficiary designations previously
        filed shall be cancelled. The Plan Administrator shall be entitled to
        rely on the last Beneficiary Designation Form filed by the Participant
        and accepted by the Plan Administrator prior to his or her death.

9.3     ACKNOWLEDGMENT. No designation or change in designation of a Beneficiary
        shall be effective until received, accepted and acknowledged in writing
        by the Plan Administrator or its designated agent.

9.4     NO BENEFICIARY DESIGNATION. If a Participant fails to designate a
        Beneficiary as provided in Sections 9.1, 9.2 and 9.3 above, or if all
        designated Beneficiaries predecease the Participant or die prior to
        complete distribution of the Participant's benefits, then the
        Participant's spouse shall be the designated Beneficiary. If the
        Participant has no surviving spouse, the benefits remaining under the
        Plan shall be forfeited.

9.5     DOUBT AS TO BENEFICIARY. If the Plan Administrator has any doubt as to
        the proper Beneficiary to receive payments pursuant to this Plan, the
        Plan Administrator shall have the right, exercisable in its discretion,
        to cause the Participant's Employer to withhold such payments until this
        matter is resolved to the Plan Administrator's satisfaction.

9.6     DISCHARGE OF OBLIGATIONS. The payment of benefits under the Plan to a
        Beneficiary shall fully and completely discharge all Employers and the
        Plan Administrator from all further obligations under this Plan with
        respect to the Participant, and that Participant's Plan Agreement shall
        terminate upon such full payment of benefits.

                                   ARTICLE 10
                                     TRUST

10.1    ESTABLISHMENT OF THE TRUST. The Company shall establish the Trust. The
        Employers shall transfer over to the Trust such assets, if any, as the
        Employers determine, in their sole discretion.

10.2    INTERRELATIONSHIP OF THE PLAN AND THE TRUST. The provisions of the Plan
        and the Plan Agreement shall govern the rights of a Participant to
        receive distributions pursuant to the Plan. The provisions of the Trust
        shall govern the rights of the Employers, Participants and the creditors
        of the Employers to the assets transferred to the Trust. Each Employer
        shall at

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        all times remain liable to carry out its obligations under the Plan.
        Each Employer's obligations under the Plan may be satisfied with Trust
        assets distributed pursuant to the terms of the Trust, and any such
        distribution shall reduce the Employer's obligations under this
        Agreement.

                                   ARTICLE 11
                                 MISCELLANEOUS

11.1    UNSECURED GENERAL CREDITOR. Participants and their Beneficiaries
        successors and assigns shall have no legal or equitable rights,
        interests or claims in any property or assets of an Employer. Any and
        all of an Employer's assets shall be, and remain, the general, unpledged
        unrestricted assets of the Employer. An Employer's obligation under the
        Plan shall be merely that of an unfunded and unsecured promise to pay
        money in the future.

11.2    EMPLOYER'S LIABILITY. An Employer's liability for the payment of
        benefits shall be defined only by the Plan and the Plan Agreement, as
        entered into between the Employer and a Participant. An Employer shall
        have no obligation to a Participant under the Plan except as expressly
        provided in the Plan and his or her Plan Agreement.

11.3    NONASSIGNABILITY. Neither a Participant nor any other person shall have
        any right to commute, sell, assign, transfer, pledge, anticipate,
        mortgage or otherwise encumber, transfer, hypothecate or convey in
        advance of actual receipt, the amounts, if any, payable hereunder, or
        any part thereof, which are, and all rights to which are, expressly
        declared to be, unassignable and non-transferable. No part of the
        amounts payable shall, prior to actual payment, be subject to seizure or
        sequestration for the payment of any debts, judgments, alimony or
        separate maintenance owed by a Participant or any other person, nor be
        transferable by operation of law in the event of a Participant's or any
        other person's bankruptcy or insolvency.

11.4    NOT A CONTRACT OF EMPLOYMENT. The terms and conditions of this Plan
        shall not be deemed to constitute a contract of employment between any
        Employer and the Participant. Such employment is hereby acknowledged to
        be an "at will" employment relationship that can be terminated at any
        time for any reason, with or without cause, unless expressly provided in
        a written employment agreement. Nothing in this Plan shall be deemed to
        give a Participant the right to be retained in the service of any
        Employer or to interfere with the right of any Employer to discipline or
        discharge the Participant at any time.

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11.5    FURNISHING INFORMATION. A Participant or his or her Beneficiary will
        cooperate with the Plan Administrator by furnishing any and all
        information requested by the Plan Administrator and take such other
        actions as may be requested in order to facilitate the administration of
        the Plan and the payments of benefits hereunder, including but not
        limited to taking such physical examinations as the Plan Administrator
        may deem necessary.

11.6    TERMS. Whenever any words are used herein in the masculine, they shall
        be construed as though they were in the feminine in all cases where they
        would so apply; and wherever any words are used herein in the singular
        or in the plural, they shall be construed as though they were used in
        the plural or the singular, as the case may be, in all cases where they
        would so apply.

11.7    CAPTIONS. The captions of the articles, sections and paragraphs of this
        Plan are for convenience only and shall not control or affect the
        meaning or construction of any of its provisions.

11.8    GOVERNING LAW. Subject to ERISA, the provisions of this Plan shall be
        construed and interpreted according to the internal laws of the State of
        California without regard to its conflict of laws principles.

11.9    VALIDITY. In case any provision of this Plan shall be illegal or invalid
        for any reason, said illegality or invalidity shall not affect the
        remaining parts hereof, but this Plan shall be construed and enforced as
        if such illegal and invalid provision had never been inserted herein.

11.10   NOTICE. Any notice or filing required or permitted to be given to the
        Plan Administrator under this Plan shall be sufficient if in writing and
        hand-delivered, or sent by registered or certified mail, to the address
        below:

                            Committee c/o Keith Roberts, Esq.
                            QuadraMed Corporation
                            22 Pelican Way
                            San Rafael, CA 94901

        Such notice shall be deemed given as of the date of delivery or, if
        delivery is made by mail, as of the date shown on the postmark on the
        receipt for registration or certification.

        Any notice or filing required or permitted to be given to a Participant
        under this Plan shall be sufficient if in writing and hand-delivered, or
        sent by mail, to the last known address of the Participant.

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11.11   SUCCESSORS. The provisions of this Plan shall bind and inure to the
        benefit of the Participant's Employer and its successors and assigns and
        the Participant and the Participant's Beneficiary.

11.12   SPOUSE'S INTEREST. The interest in the benefits hereunder of a spouse of
        a Participant who has predeceased the Participant shall automatically
        pass to the Participant and shall not be transferable by such spouse in
        any manner, including but not limited to such spouse's will, nor shall
        such interest pass under the laws of intestate succession.

11.13   INCOMPETENT. If the Plan Administrator determines in its discretion that
        a benefit under this Plan is to be paid to a minor, a person declared
        incompetent or to a person incapable of handling the disposition of that
        person's property, the Plan Administrator may direct payment of such
        benefit to the guardian, legal representative or person having the care
        and custody of such minor, incompetent or incapable person. The Plan
        Administrator may require proof of minority, incompetency, incapacity or
        guardianship, as it may deem appropriate prior to distribution of the
        benefit. Any payment of a benefit shall be a payment for the account of
        the Participant and the Participant's Beneficiary, as the case may be,
        and shall be a complete discharge of any liability under the Plan for
        such payment amount.

11.14   COURT ORDER. The Plan Administrator is authorized to make any payments
        directed by court order in any action in which the Plan or Plan
        Administrator has been named as a party.

11.15   DISTRIBUTION IN THE EVENT OF TAXATION. If, for any reason, all or any
        portion of a Participant's benefit under this Plan becomes taxable to
        the Participant prior to receipt, a Participant may petition the Plan
        Administrator for a distribution of that portion of his or her benefit
        that has become taxable. Upon the grant of such a petition, which grant
        shall not be unreasonably withheld, a Participant's Employer shall
        distribute to the Participant immediately available funds in an amount
        equal to the taxable portion of his or her benefit (which amount shall
        not exceed a Participant's unpaid Vested SERP Benefit under the Plan).
        If the petition is granted, the tax liability distribution shall be made
        within 90 days of the date when the Participant's petition is granted.
        Such a distribution shall affect and reduce the benefits to be paid
        under this Plan.

11.16   LEGAL FEES TO ENFORCE RIGHTS AFTER CHANGE IN CONTROL. The Company and
        each Employer is aware that upon the occurrence of a Change in Control,
        the Board or the board of directors of a Participant's Employer (which
        might then be composed of new members) or a shareholder of the Company
        or the Participant's Employer, or of any successor corporation might
        then cause or attempt to cause the Company, the Participant's Employer
        or such successor to refuse to comply with its obligations under the
        Plan and might cause or attempt to cause the Company or the
        Participant's Employer to institute, or may institute, litigation
        seeking to deny Participants the benefits intended under the Plan. In
        these circumstances, the purpose of the Plan could be frustrated.
        Accordingly, if, following a Change in Control, it should appear to any
        Participant that the Company, the Participant's Employer or any

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================================================================================

        successor corporation has failed to comply with any of its obligations
        under the Plan or any agreement thereunder or, if the Company, such
        Employer or any other person takes any action to declare the Plan void
        or unenforceable or institutes any litigation or other legal action
        designed to deny, diminish or to recover from any Participant the
        benefits intended to be provided, then the Company and the Participant's
        Employer irrevocably authorize such Participant to retain counsel of his
        or her choice at the expense of the Company and the Participant's
        Employer (who shall be jointly and severally liable) to represent such
        Participant in connection with the initiation or defense of any
        litigation or other legal action, whether by or against the Company, the
        Participant's Employer or any director, officer, shareholder or other
        person affiliated with the Company, the Participant's Employer or any
        successor thereto in any jurisdiction.

           IN WITNESS WHEREOF, E. A. Roskovensky has signed this Plan document
on May 12, 2000.

                              QuadraMed Corporation, a Delaware corporation

                              By: /s/ E. A. ROSKOVENSKY
                                 -------------------------------------------
                              Title: Compensation Committee
                                    ----------------------------------------

                                       15

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