Document:

Subordinated Promissory Note, dated December 21, 2004

 EXHIBIT 10.50 
  
 SUBORDINATED PROMISSORY NOTE 
  

			
	 $37,414,284.00
	 	Dated: December 21, 2004

  
 FOR VALUE RECEIVED,
The TriZetto Group, Inc., a Delaware corporation (the “Company”), hereby promises to pay to the order of IMS HEALTH INCORPORATED, a Delaware corporation (“Payee”), the principal amount of THIRTY SEVEN MILLION FOUR HUNDRED
FOURTEEN THOUSAND TWO HUNDRED EIGHTY FOUR DOLLARS (the “Principal Amount”), plus interest as set forth below from the date of this Note on the unpaid balance. All principal and interest is to be paid without setoff or counterclaim as set
forth below. The Company further agrees as follows: 
  

	 	(1)	Interest and Maturity. The Note will bear simple interest at an annual rate equal to 5.75% from the date of this Note until this Note is paid in full; provided,
however, that if this Note is not paid in full by the Maturity Date (as defined below), the unpaid interest will automatically be added to the Principal Amount and this Note will then bear interest at an annual rate equal to 12.00%,
compounded monthly on the 21st day of each calendar month, from and including the Maturity Date to but excluding the
date on which all outstanding amounts owing under this Note are paid in full. Interest shall be calculated on the basis of a year of 365 days and charged for the actual number of days elapsed. Accrued interest shall be payable in cash at the time
the Company pays the principal amount of this Note. All outstanding amounts owing under this Note, including unpaid interest and principal, are due and payable on January 21, 2005 (the “Maturity Date”). 

  

	 	(2)	Manner of Payment. All payments of principal and interest on this Note shall be made by wire transfer of immediately available funds to an account designated in writing by
Payee. 

  

	 	(3)	Prepayment. This Note may be pre-paid by the Company at any time without penalty. 

  

	 	(4)	Acceleration. This Note shall automatically become immediately due and payable if (a) the Company commences any proceeding in bankruptcy or for dissolution, liquidation,
winding-up, or other relief under State or Federal bankruptcy laws; (b) such proceedings are commenced against the Company, or a receiver or trustee is appointed for the Company or a substantial part of its property, and such proceeding or
appointment is not dismissed or discharged within 60 days after its commencement; (c) the Company is unable to, or admits in writing its inability to, pay its debts when they become due; (d) the Company makes an assignment for the benefit of
creditors, or petitions or applies to any tribunal for the appointment of a custodian, receiver or trustee for it or a substantial portion of its assets or has a receiver, custodian or trustee appointed for all or a substantial portion of its
assets; or (e) the Company takes any action effectuating, approving or consenting to any of the foregoing. 

	 	(5)	Subordination 

  
 (a) Subordination and Standby. 
  
 (i) Indebtedness. Unless and until all Senior Indebtedness has been paid in full, Payee agrees that it shall not accept or receive,
by payment, setoff, or in any other manner, from the Company the whole or any part of any sums which may now or hereafter be owing to Payee on account of the Subordinated Indebtedness; provided, however, that so long as no default in
the payment when due of any amounts owing under the Senior Loan Documents, and no other default which is the subject of a Payment Blockage Notice (as defined below), has occurred and is continuing under the Senior Loan Documents, the Company may
make payments to Payee under the Subordinated Indebtedness upon maturity of this Note or, at the option of the Company, at such earlier time as the Company elects to pre-pay all or any portion of this Note. Payee agrees that the Subordinated
Indebtedness is and shall be expressly Subordinate and Junior in Right of Payment. 
  
 (ii) Liens. Payee agrees that it shall not obtain from the Company any Liens against any of the Collateral for any purpose
including to secure the Subordinated Indebtedness. In the event that Payee obtains any such Liens in violation of the provisions of this Note, any and all of such Liens shall in each case be subordinate to the Liens in the Collateral held by Senior
Lenders to secure the Senior Indebtedness. Unless and until all of the Senior Indebtedness has been paid in full: 
  
 (A) Payee shall not, directly or indirectly, commence, prosecute, or participate in any lawsuit, action, or proceeding, whether private,
judicial, equitable, administrative, or otherwise (including, without limitation, any bankruptcy case against the Company or any of the Company’s assets), provided that, Payee may file a proof of claim in an Insolvency Proceeding involving the
Company, which proof of claim shall indicate Payee’s subordination hereunder; 
  
 (B) Payee shall not demand or accept any payment on the Subordinated Indebtedness, except to the extent expressly permitted under the
terms of Section 5(a)(i) hereof; and 
  
 (C)
Payee shall have no right either to (a) obtain a Lien on or possess any assets of the Company, or (b) enforce any Liens in, foreclose, levy, or execute upon, or collect or attach any of any of the Company’s assets, whether by judicial action or
otherwise. 
  

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 (iii) Payment Blockage; Release of Payment Blockage. If a default has occurred and
is continuing under the Senior Loan Documents, the Senior Lenders (or a representative thereof) shall have the right to deliver to the Company and Payee a notice of such default demanding that payments be suspended on the Subordinated Indebtedness
(a “Payment Blockage Notice”). Once a Payment Blockage Notice has been so delivered, payments on the Subordinated Indebtedness shall be suspended as contemplated by Section 5(a)(i) for so long as such default continues; provided, however,
that if such default continues for a period of more than 180 days without the Senior Lenders accelerating demand for payment of the Senior Indebtedness in accordance with its terms, then, until the Senior Lenders demand payment of the Senior
Indebtedness, the Company shall, notwithstanding the terms of Section 5(a)(i), be permitted to make payments under the Subordinated Indebtedness in accordance with the terms of this Note and Payee shall have the right to institute proceedings to
enforce payment of this Note and to levy on assets to enforce payment of this Note. 
  
 (b) Insolvency Proceeding. 
  
 (i) The subordination provisions set forth herein shall continue in full force and effect upon the commencement of a Bankruptcy Case as contemplated under Section 510(a) of the Bankruptcy Code (all references herein
to the Company being deemed to apply to the Company as a debtor-in-possession and to a trustee for the Company’s estate in a Bankruptcy Case), and irrespective of the terms of any plan of reorganization adopted therein, to and shall apply with
full force and effect with respect to all Indebtedness incurred by the Company, subsequent to such commencement. 
  
 (ii) The subordination arrangements set forth here shall continue in full force and effect notwithstanding the occurrence of any
Bankruptcy Case, and in furtherance thereof the Liens granted by the Borrower to Senior Lenders shall be reinstated to the extent any Senior Lender is required to turn over, redeem, refund, pay, or otherwise transfer to the bankruptcy estate of the
Company any amount received on account of the Senior Indebtedness (or as a result thereof any portion of the Liens granted by the Payee to Senior Lenders that is released), and the Senior Indebtedness so reinstated shall have the same benefits
hereunder as if the Senior Indebtedness had never been paid. 
  
 (c) Modifications of Indebtedness. 
  
 (i) Senior Indebtedness Modifications. Nothing contained in this Note shall preclude the Senior Lenders from discontinuing the extension of credit to the Company (whether under the Senior Loan Agreement or otherwise) or from taking
(without notice to Payee) any 
  

 3 

 other action in respect of the Senior Indebtedness or the Collateral which the Senior Lender is otherwise
entitled to take with respect to the Senior Indebtedness or the Collateral. The Senior Lender shall have the right, without notice to or consent from Payee, to amend, supplement, or modify the Senior Indebtedness, in any manner whatsoever. Payee
waives notice of any such action, amendment, supplement, or modification, and agrees that no such action, amendment, supplement, or modification shall affect, release, or impair the provisions of this Note. 
  
 (ii) Subordinated Indebtedness Modifications. Payee
understands and agrees that none of the Subordinated Indebtedness, or any of the documents, instruments, and agreements evidencing such Indebtedness, including, without limitation, this Note, be modified or amended without the prior written consent
of Senior Lenders. 
  
 (d) Payments Received by Payee.
Except to the extent expressly permitted by Sections 5(a)(i) or 5(a)(iii), if any payment, distribution, Collateral, or proceeds thereof is received by Payee from the Company with respect to the Subordinated Indebtedness prior to the payment in full
of all of the Senior Indebtedness, Payee shall receive and hold the same in trust as trustee for the benefit of the Senior Lenders and shall forthwith deliver such payment, distribution, or proceeds to Senior Lender in precisely the form received
(except for the endorsement or assignment by Payee where necessary), for application on any of the Senior Indebtedness, due or not due, in which case that amount shall be deemed an amount paid on the Senior Indebtedness rather than this Note and
Payee shall, after payment in full of the Senior Indebtedness, be subrogated to the rights of the Senior Lenders with respect to that amount. In the event of the failure of Payee to make any such endorsement or assignment to Senior Lender, Senior
Lender and any of its officers or agents are hereby irrevocably authorized to make such endorsement or assignment. 
  

	 	(6)	Waivers; Governing Law. (a) The Company hereby waives presentment, demand for performance, notice of non-performance, protest, notice of protest and notice of dishonor. No
delay on the part of Payee in exercising any right hereunder shall operate as a waiver of such right or any other right hereunder and any waiver of any right hereunder by Payee shall be in writing, duly signed by Payee, shall only apply with respect
to the specific instance involved and shall not impair any other rights of Payee or the obligations of the Company in any other respect or at any other time. The rights and remedies herein provided shall be cumulative and not exclusive of any rights
or remedies provided by law. No course of dealing between the Company and Payee shall operate as a waiver of any rights by Payee. This Note is being delivered in and shall be construed in accordance with the laws of the State of New York, without
regard to conflicts of law principles. 

  

 4 

 (b) Payee shall not (i) contest, protest, object to, interfere with, seek to enjoin or invoke or utilize
any provision of any document, law or equitable principle, or otherwise take any action whatsoever which might prevent, delay, or impede any exercise of rights or remedies by Senior Lenders under any Senior Loan Document or applicable law in respect
of the Collateral, including without limitation, any action of foreclosure, or (ii) contest the validity or enforceability of the Senior Indebtedness or the validity, perfection, priority, or enforceability of the Liens granted by any the Company to
Senior Lenders (it being understood and agreed that the terms of this Note shall govern even if part or all of the Senior Indebtedness or the Liens granted by the Company in favor of Senior Lenders are avoided, disallowed, set aside, or otherwise
invalidated in any judicial proceeding or otherwise). Payee waives any and all rights it may have to require Senior Lender to marshal assets, to exercise rights or remedies in a particular manner, or to forbear from exercising such rights and
remedies in any particular manner or order. Subordinated Creditor hereby waives and postpones any right it may have to be subrogated to the rights of Senior Lender unless and until all Senior Indebtedness has been paid in full. 
  

	 	(7)	Notices. All notices and other communications pursuant to this Note shall be in writing and deemed to be sufficient if contained in a written instrument and shall be deemed
to be given if delivered personally, via facsimile, sent by nationally recognized overnight courier or mailed by registered or certified mail (return receipt requested), postage prepaid, to the parties at the following address (or such other address
for a party as shall be specified by like notices): 

  

					
	 Notices to the Company:
	  	 	  	 The TriZetto Group, Inc.

	 	  	 	  	 567 San Nicholas Drive, Suite 367

	 	  	 	  	 Newport Beach, CA 92660

	 	  	 	  	 Facsimile No.: (949) 219-2198

	 	  	 	  	 Attention: General Counsel

			
	 	  	 	  	 With a copy to:

			
	 	  	 	  	 K.C. Schaaf

	 	  	 	  	 Stradling Yocca Carlson & Rauth

	 	  	 	  	 660 Newport Center Drive, Suite 1600

	 	  	 	  	 Newport Beach, CA 92660-6422

	 	  	 	  	 Facsimile No.: (949) 725-4100

			
	 Notices to Payee:
	  	 	  	 IMS Health Incorporated

	 	  	 	  	 1499 Post Road

	 	  	 	  	 Fairfield, CT 06824

	 	  	 	  	 Facsimile No.: (203) 319-4552

	 	  	 	  	 Attention: General Counsel

			
	 	  	 	  	 With a copy to:

			
	 	  	 	  	 Keith A. Pagnani

	 	  	 	  	 Sullivan & Cromwell LLP

	 	  	 	  	 125 Broad Street

	 	  	 	  	 New York, NY 10004

	 	  	 	  	 Facsimile No.: (212) 558-3588

  

 5 

 All such notices and other communications shall be deemed to have been received (a) in the case of
personal delivery, on the date of such delivery, (b) in the case of a facsimile, when the party receiving such copy shall have confirmed receipt of the communication, (c) in the case of delivery by nationally recognized overnight courier, on the
business day following dispatch, and (d) in the case of mailing, on the third business day following such mailing. 
  

	 	(8)	Severability. If any provision in this Note is held invalid or unenforceable by any court of competent jurisdiction, the other provisions in this Note will remain in full
force and effect. Any provision of this Note held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable. 

  

	 	(9)	Assignment of Note. The Company shall not be permitted to assign or transfer this Note or any of its obligations under this Note in any manner whatsoever except with the
prior written consent of Payee. 

  

	 	(10)	Successors and Assigns. Subject to the restrictions contained in Section 8 above, the rights and obligations of the Company and Payee of this Note shall be binding upon and
benefit the successors, assigns, heirs, administrators and transferees of the parties.  

  

	 	(11)	Amendments. This Note may be modified only by written agreement signed by the party against whom enforcement of any waiver, change or discharge is sought and subject to
Section 12 below. 

  

	 	(12)	Third Party Beneficiary. The Senior Lenders are intended third party beneficiaries of the agreements set forth in Section 5 of this Note. Payee understands and agrees that
none of the Subordinated Indebtedness or any other document, instrument or agreement evidencing all or any part of the Subordinated Indebtedness may be modified or amended without the prior written consent of Senior Lender. 

 

	 	(13)	Entire Agreement. This Note constitutes the final written expression of all of the terms of the agreement between the parties hereto regarding the subject matter hereof, is a
complete and exclusive statement of those terms, and supersedes all prior and contemporaneous agreements, understandings and representations between the parties. 

  

 6 

	 	(14)	Definitions. As used in this Note, the following terms shall have the following meanings: 

  
 “Bankruptcy Case” means any proceeding commenced by or against the Company, under any provision of the
Bankruptcy Code or under any other federal or state bankruptcy or insolvency law, including assignments for the benefit of creditors, the appointment of a receiver, formal or informal moratoria, compositions, extensions generally with its creditors,
or proceedings seeking reorganization, arrangement, liquidation, dissolution, or the winding up of the Company, or other similar relief, and all converted or succeeding cases in respect thereof 
  
 “Bankruptcy Code” means the United States Bankruptcy Code
(11 U.S.C. Section 101, et seq.), as amended, and any successor statute. 
  
 “Collateral” means all assets and property of Company of any kind or nature, whether real or personal, tangible or intangible, now existing or hereafter created or acquired, wherever located, and any
proceeds thereof, at any time subject to a Lien in favor of Senior Lender under any of the Senior Loan Documents. 
  
 “Indebtedness” means (a) all obligations for borrowed money, (b) all obligations evidenced by bonds, debentures, notes, or other similar
instruments and all reimbursement or other obligations in respect of letters of credit, bankers acceptances, interest rate swaps, or other financial products, (c) all obligations as a lessee under capital leases, (d) all obligations or liabilities
of others secured by a Lien on any asset of the Company, irrespective of whether such obligation or liability is assumed, (e) all obligations to pay the deferred purchase price of assets (other than trade payables incurred in the ordinary course of
business and repayable in accordance with customary trade practices), (f) all obligations owing under hedge agreements, and (g) any obligation guaranteeing or intended to guarantee (whether directly or indirectly guaranteed, endorsed, co-made,
discounted, or sold with recourse) any obligation of any other party that constitutes Indebtedness under any of clauses (a) through (f) above. 
  
 “Insolvency Proceeding” means any proceeding commenced by or against any person under any provision of the Federal Bankruptcy Code, or
under any other bankruptcy or insolvency law, assignments for the benefit of creditors, formal or informal moratoria, compositions, extensions generally with creditors, or proceedings seeking reorganization, arrangement, or other similar relief.

  
 “Lien” means any interest in an asset
securing an obligation owed to, or a claim by, any party other than the owner of the asset, irrespective of whether (a) such interest is based on the common law, statute, or contract, (b) such interest is recorded or perfected, and (c) such interest
is 
  

 7 

 contingent upon the occurrence of some future event or events or the existence of some future
circumstance or circumstances. Without limiting the generality of the foregoing, the term “Lien” includes the lien or security interest arising from a mortgage, deed of trust, encumbrance, notice of Lien, levy or assessment, pledge,
hypothecation, assignment, deposit arrangement, security agreement, conditional sale or trust receipt, or from a lease, consignment, or bailment for security purposes and also includes reservations, exceptions, encroachments, easements,
rights-of-way, covenants, conditions, restrictions, leases, and other title exceptions and encumbrances affecting real property. 
  
 “Senior Lender” means Wells Fargo Foothill, Inc. and “Senior Lenders” means Wells Fargo Foothill, Inc. and each of the other
lenders that are parties to the Senior Loan Agreement. 
  
 “Senior Indebtedness” means all obligations (whether now outstanding or hereafter incurred, contingent or non-contingent, liquidated or unliquidated, or primary or secondary) of the Company in respect of (a) principal under
the Senior Loan Agreement or any other Senior Loan Document (or any refinancing agreement entered into with respect thereto), (b) interest and premium, if any, in respect of the Indebtedness referred to in clause (a) above, (c) all fees payable
pursuant to any Senior Loan Document (or a refinancing agreement entered into with respect thereto), (d) all other obligations (including costs, expenses, or otherwise) of the Company to the Senior Lenders under or arising pursuant to any Senior
Loan Document (or to any third party under provisions of a refinancing agreement entered into with respect thereto), including all costs and expenses incurred by the Senior Lenders in connection with its (or their) enforcement of any rights or
remedies under the Senior Loan Documents, including, by way of example, attorneys fees, court costs, appraisal and consulting fees, auctioneer fees, rent, storage, insurance premiums, and like items, and irrespective of whether allowable as a claim
against the Company in any Insolvency Proceeding, and (e) post-petition interest on the Indebtedness referred to in clauses (a) through (d) above, at the rate provided for in the instrument or agreements evidencing such Indebtedness, accruing
subsequent to the commencement of an Insolvency Proceeding (whether or not such interest is allowed as a claim in such Insolvency Proceeding). 
  
 “Senior Loan Agreement” means that certain Credit Agreement entered into among the Company, the lenders identified therein, and Senior
Lender, as the arranger and administrative agent for the lenders therein, dated December , 2004.2004, as amended (including any amendment and restatement thereof), modified, renewed, refunded, replaced, or refinanced in whole or in part from time to
time. 
  

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 “Senior Loan Documents” means the Senior Loan Agreement and any note or notes executed
by the Company in connection with the Senior Loan Agreement and payable to any lenders under the Senior Loan Agreement, and any other agreement entered into, now or in the future, by the Company and any Senior Lenders in connection with the Senior
Loan Agreement, as amended (including any amendment and restatement thereof), modified, renewed, refunded, replaced, or refinanced in whole or in part from time to time, including any agreement extending the maturity of, consolidating, or otherwise
restructuring all or any portion of the Indebtedness under such agreement or any successor or replacement agreement and whether by the same or any other agent, lender, or group and whether or not increasing the amount of Indebtedness that may be
incurred thereunder. 
  
 “Subordinate and Junior in Right
of Payment” means that (a) no part of the Subordinated Indebtedness shall have any claim to the assets of the Company on a parity with or prior to the claim of the Senior Indebtedness, and (b) unless and until the Senior Indebtedness has
been paid in full, except to the extent expressly permitted pursuant to Sections 5(a)(i) and 5(a)(iii) of this Note, Payee shall not take, demand, or receive from the Company, and the Company shall not make, give, or permit, directly or indirectly,
by set-off, redemption, purchase, or in any other manner, any payment on account of the Subordinated Indebtedness. 
  
 “Subordinated Indebtedness” shall mean, collectively, all Indebtedness and other obligations of the Company to Payee under this Note or
under any other document, instrument, or agreement relating to Indebtedness under this Note, whether the sums represent principal, interest, dividends, costs, attorneys fees, charges, or other obligations relating to Indebtedness under this Note due
or not due, whether incurred directly or indirectly and whether absolute or contingent, including, without limitation, any claim for breach of a representation or warranty or any right of rescission. 
  
 [SIGNATURE PAGE FOLLOWS] 
  

 9 

 IN WITNESS WHEREOF, the Company has executed this Note as of the day and year first written above.

  

			
	 THE TRIZETTO GROUP, INC.

		
	 By
	 	 /s/ James C. Malone

	 Name:
	 	 James C. Malone

	 Title:
	 	 Chief Financial Officer

  
 Accepted: 
  

			
	 IMS HEALTH INCORPORATED

		
	 By
	 	 /s/ Robert H. Steinfeld

	 Name:
	 	 Robert H. Steinfeld

	 Title:
	 	 Senior Vice President, General Counsel
 and Corporate SecretaryLetter Agreement between TriZetto and VA Partners, LLC dated December 5, 2004

 EXHIBIT 10.51 
  
 THE TRIZETTO GROUP, INC. 
 567 San Nicolas Drive, Suite 367 
 Newport Beach, California 92660 
  
 December 5, 2004 
  
 VA Partners, LLC 
 435 Pacific Avenue, Fourth
Floor 
 San Francisco, California 94133 
  
 Attention: George F. Hamel, Jr. 
  

	 	Re:	    Acquisition of Shares of TriZetto Common Stock 

  
 Gentlemen: 
  
 Reference is made hereby to the discussions with Jeff Margolis, Chief Executive Officer of The TriZetto Group, Inc., a Delaware corporation (“TriZetto”), in
which VA Partners, LLC (“ValueAct”) expressed its interest in assisting TriZetto with the purchase of its common stock from IMS Health Inc. (“IMS”). This letter agreement (“this “Agreement”) will confirm the mutual
agreement of TriZetto and ValueAct, as follows: 
  

	 	1.	Acquisition of the Shares 

  

	 	(a)	IMS Purchase. In consideration of ValueAct’s obligations hereunder, on the Closing Date, as defined below, TriZetto shall acquire record and beneficial ownership of
12,142,857 shares of its common stock (“TriZetto Common Stock”) from IMS for a purchase price of $6.75 per share, or an aggregate of $81,964,284.75 (the “Purchase Price”). 

  

	 	(b)	Funding of the Purchase Price. The Purchase Price shall be paid to IMS from current cash accounts and credit facilities of TriZetto in an amount of $27,964,284.75 and from
funds advanced to TriZetto from ValueAct in an amount of up to $54,000,000 (the “ValueAct Contribution”), assuming the purchase by ValueAct of 8,000,000 shares of TriZetto Common Stock under this Agreement. 

  

	 	(c)	Advance of Funds and Share Transfer. At least three days prior to the Closing Date, TriZetto shall notify ValueAct in writing of the number of shares of TriZetto Common Stock
that TriZetto will sell and ValueAct 

  

 TriZetto Confidential and Proprietary Information 

 will purchase pursuant to this Agreement, which number of shares shall be no less than 6,000,000 shares
and no greater than 8,000,000 shares (the “ValueAct Shares”). On or prior to the Closing Date, ValueAct shall transfer to TriZetto by wire of immediately available funds an amount equal to $6.75 multiplied by the number of ValueAct Shares
to an account designated by TriZetto. In consideration for the ValueAct Contribution, upon the Closing, TriZetto shall deliver irrevocable instructions to its transfer agent to issue, as directed by ValueAct, in the name of ValueAct or its
Affiliates, as defined below, certificates evidencing the ValueAct Shares, which certificates shall be delivered to ValueAct no later than three business days following the Closing Date. Such ValueAct Shares shall be issued to ValueAct free and
clear of all encumbrances, except as otherwise specified in this Agreement. 
  

	 	(d)	Closing Date. The Closing Date shall be the date that IMS sells, assigns, transfers and delivers to TriZetto 12,142,857 shares of TriZetto Common Stock free and clear of all
encumbrances, which shall occur no later than 30 days following delivery by TriZetto to IMS of its notice of acceptance of the irrevocable offer (such offer, as in effect on the date hereof and without giving effect to any subsequent amendment or
modification, is hereinafter referred to as the “Offer”) received from IMS in accordance with the right of first refusal set forth in the Stockholders Agreement (the “Stockholders Agreement”) entered into between TriZetto and IMS
on October 2, 2000, subject to any delays that may occur as a result of any regulatory approvals required by applicable law. 

  

	 	(e)	Call Option. During the period of time between the Closing Date and December 31, 2005 (the “Expiration Date”), TriZetto may elect to purchase from ValueAct up to
2,000,000 shares of TriZetto Common Stock (the “Option”) acquired by ValueAct under the terms of this Agreement by delivering written notice to ValueAct prior to the Expiration Date, stating the number of shares to be purchased and the
purchase price for such shares. In the event the number of ValueAct Shares purchased by ValueAct is less than 8,000,000, the maximum number of shares of TriZetto Common Stock subject to the Option shall be reduced by an equal number of shares. The
purchase price for any such purchase by TriZetto shall be (i) $6.75 per share of TriZetto Common Stock if such Option is exercised prior to December 31, 2004, or (ii) the per share price equal to multiplying the Market Value, as defined below, on
the trading date immediately preceding the date of exercise of the Option by a fraction, the numerator of which is $6.75 and the denominator of which is the Market Value on the trading date immediately preceding public disclosure by TriZetto of its
purchase or intent to purchase the shares of TriZetto Common Stock owned by IMS, if the Option is exercised after December 31, 2004 but on or prior to the Expiration Date; 

  

 TriZetto Confidential and Proprietary Information 

 provided, that in no event shall the purchase price be less than $6.75 per share. Market Value means the
average of the high and low sales prices reported on the Nasdaq National Market System on the referenced date. 
  

	 	2.	Lock Up Period. 

  

	 	(a)	ValueAct agrees that neither it nor any ValueAct Affiliate will (i) offer, sell, contract to sell, pledge or otherwise dispose of, directly or indirectly, any ValueAct Shares, (ii)
enter into a transaction which would have the same effect, (iii) enter into any swap, hedge or other arrangement that transfers, in whole or in part, any of the economic consequences of ownership of the ValueAct Shares, whether any such
aforementioned transaction is to be settled by delivery of the ValueAct Shares, or (iv) publicly disclose the intention to make any such offer, sale, pledge or disposition, or to enter into any such transaction, swap, hedge or other arrangement
(unless, without in any way limiting the restrictions in clauses (i) through (iii) above, in the reasonable judgment of ValueAct, such disclosure is required in a Schedule 13D under the Exchange Act, or by other legal or regulatory requirement).

  

	 	(b)	The restrictions set forth in Section 2(a) shall lapse on the one year anniversary of the Closing Date; provided, that so long as ValueAct continues to own shares of TriZetto Common
Stock equal to at least ten percent (10%) of the outstanding shares of TriZetto Common Stock, ValueAct shall provide TriZetto with advance notice of any proposed sales of TriZetto Common Stock and allow TriZetto a reasonable opportunity to assist in
arranging any block trades of TriZetto Common Stock. ValueAct shall cooperate with TriZetto to minimize the negative effects of any such proposed sales. 

  

	 	(c)	In the event any portion of the Option is exercised by TriZetto, the ValueAct Shares shall be reduced by the number of shares of TriZetto Common Stock purchased pursuant to the
Option. 

  

	 	3.	Registration Rights  

  

	 	(a)	Subject to Section 2 above, if, after the one year anniversary of the Closing Date, TriZetto shall receive from ValueAct a written request or requests that TriZetto effect a
registration on Form S-3, or Form S-2 or Form S-1, if Form S-3 is not available (or any similar or successor forms promulgated by the Securities and Exchange Commission) (a “Registration Statement”), and any related qualification or
compliance, for a public offering of all or a part of the ValueAct Shares owned by ValueAct, TriZetto will as soon as practicable effect such registration and all such qualifications and compliances as may be so requested and as would permit or
facilitate the sale and distribution of all or such portion of 

  

 TriZetto Confidential and Proprietary Information 

 such ValueAct Shares as are specified in such request, at the sole cost and expense of TriZetto,
excluding selling commission or discounts; provided, however, that TriZetto shall not be obligated to effect any such registration, qualification or compliance, pursuant to this Section 3(a): (1) if TriZetto shall furnish to ValueAct a certificate
signed by the Chief Executive Officer of TriZetto stating that in the good faith judgment of the Board of Directors of TriZetto, it would be seriously detrimental to TriZetto and its stockholders for such Registration Statement to be effected at
such time, in which event TriZetto shall have the right to defer the filing of the Registration Statement for a period of not more than ninety (90) days after receipt of the request therefor; provided, however, that TriZetto shall not utilize this
right more than once in any twelve month period; or (2) if such Registration Statement covers an offering of less than $5,000,000 of ValueAct Shares. 
  

	 	(b)	ValueAct shall provide all information relating to ValueAct necessary for inclusion in the Registration Statement to satisfy all requirements of applicable state and federal
securities laws. TriZetto and ValueAct shall be solely responsible for any statement, information or omission in the Registration Statement relating respectively to TriZetto and ValueAct or their respective Affiliates based upon written information
furnished by such parties. TriZetto will respond to any comments of the SEC and will use its commercially reasonable efforts to have the Registration Statement declared effective under the Securities Act as promptly as practicable after such filing.
TriZetto will provide ValueAct a reasonable opportunity to review and comment on any amendment or supplement to the Registration Statement; provided, however, that the foregoing shall not prevent or unreasonably delay TriZetto from filing any such
amendment or supplement should TriZetto determine upon advice from counsel that such filing is necessary or appropriate. 

  

	 	(c)	The registration rights granted herein shall terminate on the earlier to occur of (i) the date of the second anniversary of the Closing Date, (ii) the date on which all ValueAct
Shares may be immediately sold by ValueAct without registration and without restriction as to the number of ValueAct Shares to be sold pursuant to Rule 144 promulgated under the Securities Act of 1933, as amended (the “Securities Act”), or
(iii) the date on which all ValueAct Shares have been sold pursuant to an effective registration statement or pursuant to Rule 144. 

  

	 	4.	Restrictions on Transfer to Competitors or Significant Customers. In no event shall ValueAct transfer, assign or otherwise dispose of any ValueAct Shares to any party that,
at the time of such transfer, assignment or disposition, is a significant customer of, or a significant competitor to, TriZetto. The restrictions set forth in this Section 6 shall not restrict the transfer, assignment or disposition

  

 TriZetto Confidential and Proprietary Information 

 of ValueAct Shares in a bona fide public offering pursuant to a registration statement filed with the
Securities and Exchange Commission pursuant to Section 3 above. 
  

	 	5.	Standstill. ValueAct agrees that, for a period of one (1) year from the date of this Agreement (the “Standstill Period”), unless consented to in writing by TriZetto
in advance, neither ValueAct nor any of its Affiliates shall in any manner, directly or indirectly, effect or seek, offer or propose (whether publicly or otherwise) to effect, or cause or participate in or in any way assist any other person to
effect or seek, offer or propose (whether publicly or otherwise) to effect or participate in, (i) any acquisition of the voting securities or other equity securities of TriZetto that are registered under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) (or beneficial ownership thereof as such term is used in the Exchange Act) or assets of TriZetto; (ii) any tender or exchange offer, merger or other business combination involving TriZetto or any of its
subsidiaries; (iii) any recapitalization, restructuring, liquidation, dissolution or other extraordinary transaction with respect to TriZetto; (iv) representation for itself or any of its Affiliates or representatives on the Board of Directors of
TriZetto, whether by a proxy contest or otherwise, or (v) take any action which in and of itself would require TriZetto or any of its Affiliates to make a public announcement or public filing regarding any of the types of matters set forth in the
preceding clauses (i) through (iv), inclusive, of this Section 5; or (vi) enter into any discussions, arrangements or agreements with any third person with respect to any of the foregoing. For purposes hereof, the term “voting securities”
shall include non-voting securities that, by their terms, are convertible or exercisable into or exchangeable for voting securities of TriZetto. Notwithstanding the foregoing, in the event that TriZetto exercises its Option, ValueAct may purchase
such number of shares of TriZetto Common Stock in the public markets equal to the number of shares of TriZetto Common Stock purchased by TriZetto from ValueAct pursuant to the Option. 

  

	 	6.	Rights Plan. TriZetto shall take such action as may be required to amend its Rights Agreement, dated October 2, 2000, by and between TriZetto and U.S. Stock Transfer
Corporation, to provide that the acquisition of the ValueAct Shares pursuant to the terms of this Agreement, including the additional shares of TriZetto Common Stock permitted by the last sentence of Section 5, will not cause ValueAct to be deemed
an Acquiring Person, as such term is defined in the Rights Agreement, or otherwise cause the distribution of any rights thereunder. 

  

	 	7.	Regulatory Approvals. 

  

	 	(a)	ValueAct and TriZetto will execute and file, or join in the execution and filing, of any application or other document that may be necessary in order to obtain the authorization,
approval or consent of any governmental body, federal, state, local or foreign, or any self regulatory organization, which 

  

 TriZetto Confidential and Proprietary Information 

 may be reasonably required, or which ValueAct or TriZetto may reasonably request, in connection with the
consummation of the transactions contemplated by this Agreement. ValueAct and TriZetto will use their commercially reasonable best efforts to obtain all such authorizations, approvals and consents. The receipt of any such authorizations, approvals
or consents shall be a condition to the obligations of the parties under this Agreement. 
  

	 	(b)	ValueAct acknowledges that TriZetto is under no obligation to accept the Offer, and acceptance of the Offer is a condition to TriZetto’s obligations hereunder.

  

	 	8.	Investment Representations. ValueAct hereby represents and warrants to TriZetto as follows: 

  

	 	(a)	Investment Intent. It is acquiring the ValueAct Shares for its own account, not as nominee or agent, for investment and not with a view to, or for resale in connection with,
any distribution or public offering thereof within the meaning of the Securities Act. 

  

	 	(b)	Shares Not Registered. It understands that (i) the ValueAct Shares have not been registered under the Securities Act by reason of a specific exemption therefrom, that the
ValueAct Shares must be held by it indefinitely, and that it must, therefore, bear the economic risk of such investment indefinitely, unless a subsequent disposition thereof is registered under the Securities Act or is exempt from such registration;
(ii) each certificate representing the ValueAct Shares will be endorsed with a legend substantially similar to the following: 

  
 “THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, (THE “1933
ACT”) AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT COVERING SUCH SECURITIES OR IF THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THESE
SECURITIES REASONABLY SATISFACTORY TO THE COMPANY, STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE 1933 ACT.” 
  
 and (iii) TriZetto will instruct any transfer agent not to register the
transfer of any of the ValueAct Shares unless the conditions specified in the foregoing legend are satisfied; provided, however, that no such opinion of counsel shall be necessary if the sale, transfer or assignment is made 
  

 TriZetto Confidential and Proprietary Information 

 pursuant to Rule 144 promulgated under the Securities Act and ValueAct provides TriZetto with evidence
reasonably satisfactory to TriZetto and its counsel that the proposed transaction satisfies the requirements of Rule 144. 
  

	 	(c)	Sophistication. It has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in the ValueAct
Shares. 

  

	 	(d)	Information. It has been furnished with and has had access to such information as it has considered necessary to make a determination as to the purchase of the ValueAct
Shares, together with such additional information as is necessary to verify the accuracy of the information supplied. It is agreeing to purchase the ValueAct Shares based upon publicly available information and that TriZetto has no obligation to
furnish ValueAct with information greater than that which is publicly available. 

  

	 	(e)	Accredited Investor. It is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the Securities Act, as presently in effect.

  

	 	(f)	Restricted Securities. It understands that the ValueAct Shares it is purchasing are characterized as “restricted securities” under the federal securities laws
inasmuch as the ValueAct Shares are being acquired from TriZetto in a transaction not involving a public offering and that under such laws and applicable regulations such shares may be resold without registration under the Securities Act only in
certain limited circumstances, and it represents that it is familiar with Rule 144, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act. 

  

	 	(g)	Legends Regarding Restrictions on Transfer. It understands that any transfer of ValueAct Shares is subject to certain restrictions on transfer pursuant to this Agreement and
that the ValueAct Shares will carry a legend to that effect. 

  

	 	9.	Power and Authority; No Conflicts. Each of TriZetto and ValueAct represent and warrant that: (a) it has the full legal right and authority to enter into this Agreement and to
consummate the transactions contemplated hereby, (b) this Agreement is a legally binding agreement that is enforceable against it in accordance with its terms, and (c) its execution and delivery of this Agreement and the performance by it of its
obligations hereunder will not conflict with or violate any other agreement or understanding, written or oral, to which such party is subject or bound. 

  

 TriZetto Confidential and Proprietary Information 

	 	10.	Publicity. The parties shall coordinate in advance the contents of the reports, statements, filings and releases pertaining to this Agreement and the transactions
contemplated hereby. 

  

	 	11.	Termination. This Agreement shall terminate if TriZetto does not accept the Offer prior to its expiration. TriZetto may terminate this Agreement (i) if any authorization,
approval or consent required pursuant to Section 7 is not obtained or could not reasonably be obtained prior the Closing Date or (ii) in the event that TriZetto receives an offer prior to the Closing Date that, if consummated, would constitute a
change of control of TriZetto. In the event that this Agreement is terminated pursuant to clause (ii) above after acceptance of the Offer, TriZetto shall pay ValueAct a termination fee in the amount of $1,000,000. 

  

	 	12.	Expenses. Each party shall bear its own expenses in connection with the preparation and consummation of the transactions contemplated by this Agreement; provided, however,
that TriZetto will, as directed by ValueAct, pay $50,000 of the fee payble by ValueAct to Taconic Capital Group in connection with the transaction contemplated by this Agreement. 

  

	 	13.	Governing Law; Jurisdiction. This letter shall be governed by and construed in accordance with the laws of the State of California applicable to contracts made and to be
performed wholly therein and the parties hereby irrevocably and unconditionally consent to the exclusive jurisdiction of the state courts of the State of California, County of Orange, or the United States District Court for the Central District of
California. 

  

	 	14.	Counterparts. This Agreement may be executed in any number of counterparts, and each counterpart shall be deemed an original, but all such counterparts together shall
constitute but one agreement. 

  

	 	15.	Entire Agreement. This Agreement constitutes the full and entire understanding and agreement among the parties with regard to the subject matter contained herein.

  

	 	16.	Assignment. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by either party hereto, whether by operation of law or
otherwise, without the prior written consent of the other party. 

  

	 	17.	Exclusive Right. TriZetto is providing this opportunity to purchase the ValueAct Shares exclusively to ValueAct and in the event that this Agreement terminates pursuant to
Section 11, TriZetto will not enter into any agreement or understanding with any third party granting such party the right to fund TriZetto’s purchase, or to purchase in TriZetto’s place, any portion of the shares of TriZetto Common Stock
covered by the Offer in any manner that is substantially similar to the transaction contemplated by this Agreement, it being specifically acknowledged, without limiting the foregoing, that the sale of any such shares pursuant to a change in control
transaction would not conflict with this Section 17. TriZetto will not amend or modify the Stockholders Agreement as it relates in any respect to the Offer without the prior written consent of ValueAct. 

  

 TriZetto Confidential and Proprietary Information 

	 	18.	Definitions. As used in this Agreement, the term “Affiliate” shall have the meaning given to such term by Rule 12b-2 under the Exchange Act.

  

			
	 Yours very truly,

	
	THE TRIZETTO GROUP, INC.
		
	 By:
	 	 /s/ Jeffrey H. Margolis

	 	 	 Jeffrey H. Margolis, Chief Executive Officer

  
 The foregoing is
accepted and agreed to as of the date first above written. 
  

			
	VA PARTNERS, LLC
		
	 By:
	 	 /s/ George F. Hamel, Jr.

	 	 	 George F. Hamel, Jr., Managing Member

  

 TriZetto Confidential and Proprietary Information

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