Document:

Executive Employment Agreement

 Exhibit 10.1 
  
 EXECUTIVE EMPLOYMENT AGREEMENT 
  
 THIS EXECUTIVE EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into by and between The TriZetto Group, Inc.
(“Company”), and Jeffrey H. Margolis (“Executive”). Once signed by both of the parties, this Agreement will be deemed effective as of January 2, 2005 (“Effective Date”). This Agreement supercedes all previous
agreements, promises, representations, understandings and negotiations between the parties, whether written or oral, with respect to the subject matter hereof, except as expressly provided herein. 
  
 1. Employment. The Company hereby employs Executive as the Chief
Executive Officer of the Company. Executive accepts such employment, reporting directly to the Board of Directors of the Company (“Board”). 
  
 2. Term. The term of this Agreement and of Executive’s employment pursuant to this Agreement shall commence on the Effective Date and end on
the date that Executive’s employment may be terminated as provided in Section 6 below. 
  
 3. Place of Performance. Executive shall be based at the Company’s office located in Orange County, California, but Executive from time-to time may be required to travel to other geographic locations in
connection with the performance of his duties. 
  
 4. Duties
and Responsibilities. 
  
 4.1 Service with the
Company. Executive shall work exclusively for the Company and shall have all the customary powers and duties associated with his position(s) as set forth in Section 1, above. Executive shall devote his full business time and effort to the
performance of his duties for the Company, which he shall perform faithfully and to the best of his ability. Executive shall be subject to the Company’s policies, procedures and approval practices, as generally in effect from time-to-time.

  
 4.2 No Conflicting Duties. During the term hereof,
Executive shall not serve as an officer, director, employee, consultant or advisor to any other competing business or as an officer, employee or consultant to any other business, unless such other service is approved by the Board. Executive hereby
confirms that he is under no contractual commitments inconsistent with his obligations set forth in this Agreement, and agrees that during the term of this Agreement he will not render or perform services, or enter into any contract to do so, for
any other corporation, firm, entity or person which are inconsistent with the provisions of this Agreement. The Company acknowledges and agrees that Executive may serve as a member of the Pfizer Health Solutions Advisory Board. 
  
 5. Compensation. 
  
 5.1 Annual Base Salary. As compensation for all services to be
rendered by Executive under this Agreement, the Company shall pay to Executive a base annual salary of Five Hundred Twenty Thousand Dollars ($520,000) (“Annual Base Salary”), which salary shall be paid in conformity with the Company’s
pay practices generally applicable to Company executives. Executive will be eligible for annual pay increases as determined by the Board. If this Agreement is signed by the parties after the Effective Date, Executive’s Annual Base Salary shall
be paid retroactively to the Effective Date. 

 5.2 Bonus. Executive will be eligible for annual bonus compensation in an amount to be determined
by the Compensation Committee of the Board based on the Company’s achievement of financial performance and other objectives, as well as Executive’s achievement of individual performance objectives, established by the Compensation Committee
each year. If all Company and Executive’s individual performance objectives are met, it is expected that the bonus paid, if any, will be equal to Executive’s Annual Base Salary for the year for which the bonus is paid. Any bonus awarded
may be greater or less than Executive’s Annual Base Salary, depending on whether the Company’s and Executive’s performance exceeds or falls short of the established objectives. 
  
 5.3 Stock Options. In connection with his continuing employment with
the Company, Executive was granted on February 9, 2005 a stock option to purchase 150,000 shares of the Company’s common stock at $8.48 per share (the “Option”). The Option shall be subject to all the terms of The TriZetto Group, Inc.
1998 Long-Term Incentive Plan, under which it was granted, and the option agreement between Executive and the Company evidencing the Option. 
  
 5.4 Employment Continuation Incentive. As an incentive to Executive to continue his employment with the Company, Executive shall receive a payment
of Fifty Thousand Dollars ($50,000), less tax and other customary payroll withholdings and deductions, on the first regular Company payday after Executive and the Company have signed this Agreement.  
  
 5.5 Retention Incentive. As an incentive for Executive to remain an
employee of the Company, the Company shall make three retention incentive payments (each, a “Retention Payment”) in the amount of $44,227.78, less tax and other customary payroll withholdings and deductions, each to Executive. A Retention
Payment shall be made on each of January 1, 2006, January 1, 2007, and January 1, 2008. Except as set forth in Section 6.7(a), Executive must be an active employee on the payment date in order to be eligible to receive the applicable Retention
Payment. 
  
 5.6 Annual Perquisites. Executive shall be
provided with annual perquisites at Company expense, up to a maximum aggregate incremental cost to the Company of $50,000 each year during the term of this Agreement. Such perquisites shall include, without limitation, use of Company owned or leased
assets for the purpose of personal transportation. 
  
 5.7
Standard Benefits. During the term of this Agreement, Executive shall be entitled to participate in all employee benefit plans and programs, including paid vacations, to the same extent generally available to Company executives, in accordance
with the terms of those plans and programs. The Company shall have the right to terminate or change any such plan or program at any time. 
  
 5.8 Expense Reimbursement. Executive shall be entitled to receive prompt reimbursement for all reasonable and customary travel and business
expenses he incurs in connection with his employment, but must incur and account for those expenses in accordance with the policies and procedures established by the Company. 
  

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 5.9 Indemnification. The Company shall indemnify Executive in his capacities as a director and
officer of the Company to the fullest extent allowed by law, as more fully described in the Indemnification Agreement dated April 17, 2003 or any successor agreement. 
  
 5.10 Sarbanes-Oxley Act Loan Prohibition. To the extent that any Company benefit, program, practice, arrangement or
this Agreement would or might otherwise result in Executive’s receipt of an illegal loan (“Loan”), the Company shall use reasonable efforts to provide Executive with a substitute for the Loan that is lawful and of at least equal value
to Executive. If this cannot be done, or if doing so would be significantly more expensive to the Company than making the Loan, the Company need not make the Loan to Executive or provide him a substitute for it. 
  
 6. Termination. 
  
 6.1 Termination by the Company Without Cause. The Company may
terminate Executive’s employment pursuant to this Agreement without Cause (defined below) by giving ninety (90) days’ written notice to Executive. 
  
 6.2 Termination by the Company for Cause. The Company may terminate Executive’s employment and this Agreement for Cause. As used herein,
“Cause” shall mean: 
  
 (a) The continued,
unreasonable refusal or omission by Executive to perform any material duties required of him by this Agreement or as reasonably requested by the Board of Directors of the Company if consistent with the terms of this Agreement; 
  
 (b) Any material act or omission by Executive involving malfeasance
or gross negligence in the performance of Executive’s duties to, or material deviation from any of the material policies or directives of, the Company, in a manner that materially damages the Company; 
  
 (c) Conduct on the part of Executive which constitutes the breach of
any statutory or common law duty of loyalty to the Company, in a manner that materially damages the Company; or 
  
 (d) Any illegal act by Executive which materially and adversely affects the business of the Company or any felony (other than traffic violations)
committed by Executive, as evidenced by conviction thereof, provided that the Company may suspend the Executive with pay while any allegation of such illegal or felonious act is investigated. 
  
 Termination by the Company for cause shall be accomplished by written notice to Executive and
shall be preceded by a written notice providing a reasonable opportunity and timeframe (which timeframe shall not in any case exceed thirty (30) days) for Executive to correct his conduct. Any such termination shall be without prejudice to any other
remedy to which the Company may be entitled either at law, in equity, or under this Agreement. 
  
 6.3 Termination by Company for Death or Disability. Executive’s employment pursuant to this Agreement shall be immediately terminated without notice by the Company (i) upon the death of the Executive or
(ii) upon the Executive becoming totally 

  

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disabled. For purposes of this Agreement, the term “totally disabled” means an inability of Executive, due to a physical or mental illness, injury
or impairment, to perform a substantial portion of his duties for a period of one hundred eighty (180) or more consecutive days, as determined by the Company’s Board of Directors. 
  
 6.4 Termination by Executive Without Good Reason. Executive may terminate Executive’s employment pursuant to
this Agreement without any reason by giving ninety (90) days’ written notice to the Company. 
  
 6.5 Termination by Executive for Good Reason. Executive’s employment pursuant to this Agreement may be terminated by Executive for “good
reason” if Executive voluntarily terminates his employment as a result of any of the following: 
  
 (a) Without Executive’s prior written consent, a reduction in his then current Annual Base Salary, other than as part of across-the-board
salary reductions affecting all similar executives of the Company; 
  
 (b) The taking of any action by the Company that would substantially diminish the aggregate value of the benefits provided the Executive under the Executive’s medical, health, accident, disability insurance, life insurance,
thrift and retirement plans in which he was participating on the date of this Agreement, other than any such reduction which is (i) required by law, (ii) implemented in connection with a general concessionary arrangement affecting all employees or
affecting the group of employees (senior management) of which the Executive is a member or (iii) generally applicable to all beneficiaries of such plans; 
  

(c) Without Executive’s prior written consent, a relocation of the Executive’s place of employment outside of Orange County,
California 
  
 (d) Removal of Executive from his
position of Chief Executive Officer or from his position on the Company’s Board of Directors; 
  
 (e) A reduction in duties and responsibilities which results in Executive no longer having duties customary for a Chief Executive Officer;

  
 (f) The Company materially breaches any provision of
this Agreement; or 
  
 (g) Any failure by any successor to
the Company to assume the obligations under this Agreement. 
  
 An
event that is or would constitute Good Reason shall cease to be Good Reason if: (i) Executive does not terminate his employment within 90 days after the event occurs; or (ii) before Executive terminates his employment, the Company reverses the
action or cures the default that constitutes Good Reason within 10 business days after Executive notifies the Company in writing that Good Reason exists. 
  
 6.6 Termination by Executive Following Change in Control. If Executive’s employment terminates following a “Change in Control” (as
that term is defined in Executive’s January 13, 2004 Change in Control Agreement or any successor agreement), and if 

  

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Executive is entitled to severance pay and benefits under that Change in Control agreement or a successor agreement, then Executive shall be entitled to
receive, at his election, the payments or benefits under either this Agreement or the then applicable Change in Control agreement. 
  
 6.7 Payments Upon Termination. 
  
 (a) Except as provided in Section 6.6 above, if during the term of this Agreement, the Company terminates Executive’s employment for any
reason other than Cause, death or, Disability or the Executive resigns for Good Reason, Executive shall receive the following compensation: 
  
 (i) the portion of his then current Annual Base Salary which has accrued through his date of termination; 
  
 (ii) any vested incentive payments, stock options and
restricted stock to which Executive is entitled as of the date of termination pursuant to this Agreement or any bonus or incentive compensation plan in which he is then participating, provided the payment thereof is not contingent or conditional on
Executive’s continued employment with the Company or the satisfaction of any other condition which has not been satisfied; provided, however, the Company shall give good faith consideration to paying Executive a pro-rata or full bonus for the
bonus period most recently completed by Executive; 
  
 (iii) any payments for unused vacation and floating holidays, and reimbursement of expenses, which are due, accrued or payable as of the date of Executive’s termination; and 
  
 (iv) if Executive signs a release of claims in a form
acceptable to the Company, the Company shall pay to Executive, in addition to the amounts set forth above, the following severance payments and benefits: 
  
 (A) salary continuation at Executive’s then current Annual Base Salary for a 24-month period, payable in accordance with the
Company’s normal payroll procedures and policies as if Executive had remained employed with the Company, starting on the first regular Company payday after the Company receives the signed release of claims and any revocation period has expired;

  
 (B) medical and dental coverage continuation
for a 24-month period following Executive’s termination as if Executive had remained employed with the Company and to the same extent provided to Executive and his family immediately prior to the date of termination other than as part of
across-the-board changes affecting such coverage for similarly situated executives of the Company during this 24-month period; and 
  
 (C) payment in full of any and all unpaid Retention Payments, payable no later than thirty (30) days after the date of Executive’s
termination of employment. 
  

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 (b) If Executive’s employment terminates as a result of him becoming totally disabled (as
defined in Section 6.3) or death, then Executive or his heirs shall be entitled to payment of the amounts set forth in Sections 6.6(a)(i), (ii) and (iii) above, plus a payment in an amount equal to one-half of Executive’s then current Annual
Base Salary, payable no later than thirty (30) days after the date of Executive’s termination of employment. 
  
 (c) If the Company terminates Executive’s employment for Cause or if Executive voluntarily resigns for other than Good Reason, Executive
shall only be entitled to the compensation set forth in Sections 6.6(a)(i), (ii) and (iii) above. Such amounts shall be paid in accordance with the Company’s normal payroll procedures and policies. 
  
 (d) Notwithstanding anything herein to the contrary, to the extent
that the Company in good faith determines that any payment pursuant to this Section 6.7 provides for a “deferral of compensation” under Section 409A of the Internal Revenue Code, as amended (“Section 409A”), no amounts shall be
payable to Executive pursuant to this Section 6.7 prior to the earlier of (i) Executive’s death or “disability” (within the meaning of Section 409A(a)(2)(C)), or (ii) the date that is six months following the date of Executive’s
“separation from service” with the Company (within the meaning of Section 409A). 
  
 7. Confidentiality. Executive acknowledges that he currently possesses or will acquire secret, confidential, or proprietary information or trade secrets concerning the operations, customers, future plans and
business methods of the Company (“Confidential Information”). 
  
 7.1 Promise Not to Disclose. Executive promises never to use or disclose any Confidential Information before it has become generally known within the industry through no fault of his own. Executive agrees that this promise shall
never expire. 
  
 7.2 Promise Not to Solicit. To prevent
Executive from inevitably breaking his promises in this Section 7, he further agrees that, while this Agreement is in effect and for 12 months after its termination: (i) as to any customer or supplier of the Company with whom he had dealings or
about whom he acquired Confidential Information during his employment, Executive will not solicit or attempt to solicit (or assist others to solicit) the customer or supplier to do business with any person or entity other than the Company; and (ii)
will not solicit or attempt to solicit (or assist others to solicit) for employment any person who is, or within the preceding 12 months was, an officer, manager or employee of the Company. 
  
 7.3 Promise Not to Engage in Certain Employment. Executive agrees
that, while this Agreement is in effect and for 12 months after its termination, he will not accept any employment or engage in any activity, without the written consent of the Board, if the loyal and complete fulfillment of his duties in such
employment or activity would inevitably require him to reveal or utilize Confidential Information, as reasonably determined by the Board. 
  
 7.4 Return of Property and Information. When Executive’s employment with the Company ends, he will promptly deliver to the Company, or, at its
written instruction, will destroy, all documents, data, drawings, manuals, letters, notes, reports, electronic mail, recordings, and copies of such materials, of or pertaining to the Company or any of its affiliated entities which are in his
possession or control. 
  

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 7.5 Intellectual Property. Intellectual property (including such things as all ideas, concepts,
inventions, plans, developments, software, data, configurations, materials (whether written or machine-readable), designs, drawings, illustrations and photographs that may be protectable, in whole or in part, under any patent, copyright, trademark,
trade secret, or other intellectual property law), developed, created, conceived, made or reduced to writing or practice during Executive’s employment with the Company, except intellectual property that has no relation to the Company or any of
its customers that he developed purely on his own time and at his own expense, shall be the sole and exclusive property of the Company, and Executive hereby assigns all of his rights, title and interest in any such intellectual property to the
Company. In addition, Executive acknowledges that the Intellectual Property and Technical Information Agreement between Executive and the Company, a copy of which attached to this Agreement as Schedule 1, remains in full force and effect, and to the
extent any of its terms conflict with any provision of this Section 7, the provision that provides the most protection shall prevail. 
  
 7.6 Enforcement of this Section. This Section 7 shall survive the termination of this Agreement for any reason. Executive acknowledges that (i) his
services are of a special, unique and extraordinary character, and it would be very difficult if not impossible to replace them, (ii) this Section’s terms are reasonable and necessary to protect the Company’s legitimate interest, (iii)
this Section’s restrictions will not prevent Executive from earning or seeking a livelihood, (iv) this Section’s restrictions shall apply wherever permitted by law, and (v) Executive’s violation of any of this Section’s terms
would irreparably harm the Company. Accordingly, Executive agrees that, if he violates any of the provisions of this Section 7, or the attached confidentiality agreement, the Company shall be entitled to, in addition to other remedies available to
it, (a) terminate further severance payments and benefits payable pursuant to Section 6.6(a) of this Agreement and (b) seek and obtain an injunction to be issued by any court of competent jurisdiction restraining him from committing or continuing
any such violation, without the need to prove the inadequacy of money damages or post any bond or for any other undertaking. 
  
 8. Notice. 
  
 8.1 To the Company. Executive will send all communications to the Company in writing, addressed as follows (or in any other manner the Company
notifies me to use), addressed as follows: 
  

			
	If Mailed:	 	The TriZetto Group, Inc.
	 	 	Attn: James J. Sullivan, Esq.
	 	 	567 San Nicolas Drive
	 	 	Newport Beach, California 92660
		
	If Faxed:	 	The TriZetto Group, Inc.
	 	 	Attn: James J. Sullivan, Esq.
	 	 	Fax: (949) 219-2197
	 	 	Tel.: (949) 719-2215

  

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 8.2 To Executive. All communications from the Company to Executive relating to this Agreement must
be sent to him in writing (or in any other manner he notifies the Company to use), addressed as follows: 
  

			
	If Mailed:	 	Mr. Jeffrey H. Margolis
	 	 	227 Evening Canyon Road
	 	 	Corona del Mar, CA 02625-2637
		
	If Faxed:	 	Mr. Jeffrey H. Margolis
	 	 	Fax: (949) 640-0506
	 	 	Tel.: (949) 640-4294

  
 8.3 Time Notice
Deemed Given. Notice shall be deemed to have been given (i) when delivered; (ii) two business days after being mailed by United States certified or registered mail, return receipt requested, postage prepaid; or (iii) when faxed with confirmation
of delivery. 
  
 9. Arbitration of Disputes. If any legally
actionable dispute arises which cannot be resolved by mutual discussion between the Company and Executive, each party hereto agrees to resolve that dispute by binding arbitration before an arbitrator experienced in employment law. Said arbitration
will be conducted in accordance with the rules applicable to employment disputes of Judicial Arbitration and Mediation Services or such other arbitration service as the Company and Executive agree upon, and the law of California. The Company will be
responsible for paying any filing fee and the fees and costs of the arbitrator, unless Executive initiates the claim, in which case he will contribute an amount equal to the filing fee for a claim initiated in a state court of general jurisdiction
in California. The Company and Executive agree that this promise to arbitrate covers any disputes that the Company may have against Executive, or that Executive may have against the Company and all of its affiliated entities and their directors,
officers and employees, arising out of or relating to this Agreement, the employment relationship or termination of employment, including any claims concerning the validity, interpretation, effect or violation of this Agreement; violation of any
federal, state or local law; any tort; and any other aspect of Executive’s compensation or employment. The Company and Executive further agree that arbitration as provided in this Section 9 shall be the exclusive and binding remedy for any such
dispute and will be used instead of any court action, which is hereby expressly waived, except for any request by either party hereto for temporary or preliminary injunctive relief pending arbitration in accordance with applicable law, or an
administrative claim with an administrative agency. The Company and Executive also agree that any such arbitration shall be conducted in Orange County, California, unless otherwise mutually agreed. 
  
 10. Golden Parachute Limitation. Executive agrees that the payments
and benefits under this Agreement, and all other contracts, arrangements or programs that apply to him, shall not, in the aggregate, exceed the maximum amount that may be paid to Executive without triggering golden parachute penalties under Section
280G and related provisions of the Internal Revenue Code, as determined in good faith by the Company’s independent auditors. If any benefits must be cut back to avoid triggering such penalties, Executive’s benefits shall be cut back in the
priority order designated by the Company. If an amount in excess of the limits set forth in this Section 10 is paid to Executive, Executive agrees to repay the excess amount to the Company upon demand, with interest at the rate provided for in
Internal Revenue Code Section 124(b)(2)(B). The Company and Executive agree to cooperate with each other in connection with any administrative or judicial proceedings concerning the existence or amount of golden parachute penalties with respect to
payments or benefits Executive receives. 
  

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 11. Amendment. No provisions of this Agreement may be modified, waived, or discharged except by a
written document signed by Executive and a duly authorized Company officer. Thus, for example, promotions, commendations, and/or bonuses shall not, by themselves, modify, amend, or extend this Agreement. A waiver of any conditions or provisions of
this Agreement in a given instance shall not be deemed a waiver of such conditions or provisions at any other time. 
  
 12. Interpretation and Exclusive Forum. The validity, interpretation, construction, and performance of this Agreement shall be governed by the laws
of the State of California (excluding any that mandate the use of another jurisdiction’s laws). Any arbitration (unless otherwise mutually agreed), litigation or similar proceeding with respect to such matters only may be brought within
California, and all parties to this Agreement consent to California’s jurisdiction. 
  
 13. Department of Homeland Security Verification Requirement. Executive agrees to timely file all documents required by the Department of Homeland Security to verify his identity and lawful employment in the
United States. Notwithstanding any other provision of this Agreement, if Executive fails to meet any such requirements promptly after receiving a written request from the Company to do so, Executive agrees that his employment shall terminate
immediately and that he shall not be entitled to any further compensation from the Company of any type. 
  
 14. Successors/Assignment. This Agreement shall be binding upon, and shall inure to the benefit of, Executive and his estate, but Executive may not
assign or pledge this Agreement or any rights arising under it, except to the extent permitted under the terms of the benefit plans in which he participates. The Company may not assign this Agreement to any affiliate or successor without
Executive’s prior written consent. 
  
 15. Withholding
Taxes. The Company may withhold from any salary and benefits payable under this Agreement all federal, state, city and other taxes or amounts as shall be determined by the Company to be required to be withheld pursuant to applicable laws, or
governmental regulations or rulings. 
  
 16. Validity. The
invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 
  
 17. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which together shall constitute the same instrument. 
  
 18. Entire Agreement. Except for Executive’s Change in Control Agreement, his Stock Option and Restricted Stock Agreements, his
Indemnification Agreement and the Confidentiality Agreement signed on December 25, 1997, all oral or written agreements or representations, express or implied, with respect to the subject matter of this Agreement are set forth in this Agreement.

  

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 EXECUTIVE ACKNOWLEDGES THAT ALL UNDERSTANDINGS AND AGREEMENTS BETWEEN THE COMPANY AND HIM RELATING TO THE SUBJECTS
COVERED IN THIS AGREEMENT ARE CONTAINED IN IT AND THAT HE HAS ENTERED INTO THIS AGREEMENT VOLUNTARILY AND NOT IN RELIANCE ON ANY PROMISES OR REPRESENTATIONS BY THE COMPANY OTHER THAN THOSE CONTAINED IN THIS AGREEMENT. 
  
 EXECUTIVE FURTHER ACKNOWLEDGES THAT HE HAS CAREFULLY READ THIS AGREEMENT, THAT HE UNDERSTANDS
ALL OF IT, AND THAT HE HAS BEEN GIVEN THE OPPORTUNITY TO DISCUSS THIS AGREEMENT WITH HIS PRIVATE LEGAL COUNSEL AND HAS AVAILED HIMSELF OF THAT OPPORTUNITY TO THE EXTENT HE WISHED TO DO SO. EXECUTIVE UNDERSTANDS THAT BY SIGNING THIS AGREEMENT HE IS
GIVING UP HIS RIGHT TO A JURY TRIAL. 
  

					
	Date: April 6, 2005	 	“Company”
	 	 	THE TRIZETTO GROUP, INC.
			
	 	 	By:	 	 /s/ James C. Malone

	 	 	Name:	 	James C. Malone
	 	 	Title:	 	Senior Vice President, CFO
		
	Date: April 6, 2005	 	“Executive”
		
	 	 	 /s/ Jeffrey H. Margolis

	 	 	Jeffrey H. Margolis

  

 -10-Cash Bonus Plan

 Exhibit 10.2 
  
 THE TRIZETTO GROUP, INC. 
 CASH BONUS PLAN 
  
 I. PURPOSE 
  
 The purpose of The TriZetto Group, Inc.
Cash Bonus Plan is to assist the Company to recruit, retain, motivate and reward employees who contribute to the achievement of the Company’s performance objectives. 
  
 II. EFFECTIVE DATE 
  
 The Plan is adopted effective as of January 1, 2005, and Awards under the Plan may be made with respect to the 2005 Plan
Year and each subsequent Plan Year. 
  
 III.
DEFINITIONS 
  
 Capitalized terms used in this Plan shall have the meanings set
forth below: 
  
 A. “Award” shall mean a cash bonus
payable to a Participant with respect to a Plan Year pursuant to this Plan. 
  
 B. “CEO” shall mean the Chief Executive Officer of the Company. 
  
 C. “CFO” shall mean the Chief Financial Officer of the Company. 
  
 D. “Company” shall mean The TriZetto Group, Inc. 
  
 E. “Company Targets” shall mean the financial and other performance objectives with respect to the Company that
are recommended by the CEO and/or CFO and approved by the Committee for a Plan Year. 
  
 F. “Committee” shall mean the compensation committee of the board of directors of the Company. 
  
 G. “COO” shall mean the Chief Operating Officer of the Company. 
  
 H. “EOU” shall mean an Economic Operating Unit of the Company. 
  
 I. “Funding Percentage” shall mean the percentage determined in
accordance with this Plan based on the Company’s achievement of the Company Targets for a Plan Year. 
  
 J. “Guidelines” shall mean the guidelines approved by the Committee with respect to a Plan Year to provide for the administration of the Plan,
including the method by which cash bonuses will be determined for such Plan Year. 
  
 K. “Managing Officer” shall mean as follows: (i) the “Managing Officer” of a Participant in charge of an EOU or an SSU shall be such Participant’s immediate supervisor; (ii) the “Managing
Officer” of a Participant assigned to an SEOU shall be the Executive Vice President or Senior Vice President in charge of the EOU responsible for such SEOU (or such officer’s designee); and (iii) the “Managing Officer” of a
Participant assigned to an SSU (other than the Senior Vice President in charge of such SSU) shall be the Senior Vice President in charge of such SSU (or such officer’s designee). 
  
 L. “Participant” shall mean an employee of the Company to whom an opportunity for a cash bonus hereunder has been
given under Article VI or VII. 
  
 M. “Plan” shall mean
The TriZetto Group, Inc. Cash Bonus Plan. 

 N. “Plan Year” shall mean each 12-month period beginning on January 1 and ending on December
31. 
  
 O. “SEOU” shall mean a Sub-Economic Operating
Unit of the Company. 
  
 P. “SSU” shall mean a Shared
Support Unit of the Company. 
  
 Q. “Target Percentage”
shall mean the percentage of each Participant’s base salary as determined in accordance with this Plan representing such Participant’s target bonus potential. 
  
 IV. ADMINISTRATIVE AND INTERPRETATION 
  
 A. The Plan shall be administered by the Committee or its designee. The Committee shall have sole and absolute discretion to
construe and interpret the Plan and any instrument or agreement related thereto, including without limitation, the power to construe and interpret doubtful or contested terms herein and therein, and, subject to the provisions set forth herein, to
prescribe, amend and rescind rules and regulations and make all other determinations necessary or desirable for the Plan’s administration. Notwithstanding anything herein to the contrary, the Committee must approve all Awards under this Plan to
any officer of the company that is subject to the reporting requirements of Section 16 of the Securities and Exchange Act of 1934, as amended. 
  
 B. Notwithstanding any provision of law, or any explicit or implicit provision of this document, any action taken, or finding, interpretation, ruling or
decision made by the Committee in the exercise of any of its rights, powers, authority or duties under this Plan shall be final and conclusive as to all parties, including without limitation, all Participants and former Participants, regardless of
whether the Committee or one or more of its members may have an actual or potential conflict of interest with respect to the subject matter of the action, finding, interpretation, ruling or decision. No final action, finding, interpretation, ruling
or decision of the Committee shall be subject to de novo review in any judicial proceeding. No final action, finding, interpretation, ruling or decision of the Committee may be set aside unless it is held to have been arbitrary and capricious by a
final judgment of a court having jurisdiction with respect to the issue. Nothing in the Plan shall be deemed to give any officer or employee of the Company, or his or her legal representatives or assigns, any right to participate in the Plan, except
to such extent, if any, as the Committee may authorize pursuant to the provisions of the Plan. 
  
 C. The Committee shall have the sole and absolute discretion to determine an individual’s eligibility to participate, whether the performance of a Participant warrants an Award pursuant to the Plan and any
instrument or agreement relating thereto, and the amount of any such Award. However, with respect to employees other than the CEO, the CEO may recommend to the Committee whether each such employee is eligible to participate, whether the performance
of such employee warrants an Award and the amount of such Award. 
  
 D. Notwithstanding anything herein to the contrary, terms of participation in the Plan by employees of the Company will be at the absolute and sole discretion of the Committee and shall be a matter for action by the Committee only.

  
 V. ELIGIBLE EMPLOYEES 
  
 A. Near the beginning of each Plan Year, the CEO (or his or her designee)
shall submit a list to the Committee of those employees of the Company whom he or she believes should be participating in the Plan for such Plan Year. The Committee shall then determine which of these employees shall be Participants with respect to
such Plan Year. Members of the Committee and any member of the Board who is not an employee of the Company shall not be eligible to participate in the Plan. 
  
 B. An employee of the Company who becomes eligible during a Plan Year to participate in the Plan may become a Participant for such Plan Year, in the
discretion of the CEO, COO or CFO, but may only be eligible for an Award calculated pro rata based upon the period of actual service during such Plan Year, unless otherwise specified by the CEO, COO, or CFO. 
  

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 VI. TARGET AWARDS 
  
 A. Target Percentage. Near the beginning of each Plan Year, the Committee shall, with the assistance of the CEO (or
his or her designee), assign a Target Percentage for each Participant. The Target Percentage for each Participant may be determined based on such Participant’s title or salary grade level. Each Participant’s Target Percentage for a Plan
Year shall be set forth in the Guidelines for such Plan Year. Each Participant who receives a promotion during a Plan Year to a position that is generally recognized to have a higher Target Percentage, will be assigned a Target Percentage
commensurate with his or her new position. 
  
 B. Company
Targets and Funding Percentage. Near the beginning of each Plan Year, the Committee shall, with the assistance of the CEO (or his or her designee), establish one or more Company Targets for such Plan Year. Different Company Targets may be
established for different groups of Participants. For example, the Committee may establish Company Targets for Participants assigned to a particular EOU and/or SEOU that include financial goals applicable only to such EOU and/or SEOU, as well as
financial objectives related to the Company as a whole. Company Targets may include, without limitation, financial performance metrics such as revenue, EBITDA, net income, earnings per share, free cash flow and revenue growth, as well as financial
targets applicable to an EOU and/or SEOU. 
  
 Near the beginning of each Plan
Year, the Committee shall also establish a Funding Percentage schedule for such Plan Year that will specify different percentages for various levels of achievement regarding a Company Target. For example, the Funding Percentage schedule for a Plan
Year could specify a Funding Percentage of 60% for the Company’s earnings per share target in the event the Company achieves only 80% of such target. If the Company achieves 90% of the earnings per share target, this schedule could specify a
Funding Percentage of 90%. The Committee shall also establish weightings for each Company Target in the event there is more than one Company Target for a Plan Year, so that a single weighted Funding Percentage can be determined with respect to each
Participant. 
  
 C. Personal Objectives. Unless otherwise
specified by the Committee, personal objectives will be established near the beginning of each Plan Year for all Participants, the achievement of which will impact the amount of each Participant’s Award. Such personal objectives will be
documented in such form determined by the CEO (or his or her designee), stated in specific and measurable terms, and related to activities that will improve the Company’s operating results. Personal objectives for each Participant shall be
established by such Participant’s Managing Officer. 
  
 D.
CEO Award. Notwithstanding the criteria set forth in this Article VI (or anything else to the contrary in this Plan), the Committee shall establish, in its sole discretion, such targets and other criteria for determining the potential and
actual Award provided to the CEO for any Plan Year. Such targets and other criteria shall be included in the Guidelines for a Plan Year or such other document(s) as the Committee shall determine in its sole discretion. 
  
 VII. AMOUNT OF AWARDS 
  
 At the close of each Plan Year, the CEO (or his or her designee) shall recommend the amount
of each Award to be paid to each Participant, other than the CEO (if participating), and shall submit the recommendation to the Committee. The recommendation with respect to an Award shall be based on the following guidelines: 
  
 A. Determination of Funding Percentage. The Funding Percentage for
each Company Target shall be determined based on the level of the Company’s achievement of such target as specified in the Funding Percentage schedule and as set forth in the Guidelines. If there is more than one Company Target, then a weighted
Funding Percentage shall be determined based on the weightings for each Company Target set forth in the Guidelines. 
  

 3 

 B. Evaluation of Personal Objectives. The personal performance of each Participant shall then be
determined based on an evaluation of such Participant’s achievement of his or her personal objectives. Participants will be evaluated with an average rating of 1, 2, 3, 4 or 5 (with 5 being the highest or best rating). In general, Participants
receiving an overall performance rating of below 3.0 will not be entitled to any Award. Personal performance of a Participant shall be evaluated by such Participant’s Managing Officer. All recommendations for Awards will be substantiated by
appropriate documentation of performance goals and assessments. 
  
 C. Determination of Award. Subject to adjustment as described below, the actual Award paid to each Participant for a Plan Year will be based on the following formula: 
  
 (Funding Percentage) X (Participant’s Base Salary) X (Participant’s Target Percentage). 
  
 In determining the actual Award payable to a Participant, the amount determined by this
formula may be increased or decreased in the discretion of such Participant’s Managing Officer based on such officer’s evaluation of how well the Participant achieved his or her personal objectives for the Plan Year. Notwithstanding
anything to the contrary in this Plan, if a Participant’s employment with the Company terminates for any reason prior to the date his or her Award is payable by the Company, he or she will not be entitled to any portion of the Award, unless
otherwise specified in the Guidelines or a written employment agreement executed by the CEO, COO or CFO. 
  
 D. Committee Approval and CEO Award. After the CEO (or his or her designee) makes his or her recommendation, the Committee shall meet for the
purpose of reviewing the amounts and approving the payment of Awards. The Committee shall determine the amount of the CEO’s Award, if any, upon the Guidelines for the Plan Year and/or such other factors as the Committee, in its sole discretion,
shall determine. 
  
 VIII. FORM AND SETTLEMENT OF
AWARDS 
  
 A. Unless otherwise specified in the Guidelines,
Awards shall be paid in cash by the Company in a single lump-sum payment. The Committee shall have complete and absolute authority to determine the settlement of each individual Award. Awards shall be paid at such time as determined by the Committee
or its designee, but in no case later than March 15 following the close of such Plan Year, subject to restrictions outlined in the Guidelines for such Plan Year. 
  
 B. The Company shall calculate the deductions from the Award paid under the Plan for any taxes required to be withheld by
federal, state or local government and shall cause them to be withheld. 
  
 IX. LIMITATIONS 
  
 A. No
Participant or any other person shall have any interest in the Company or any affiliates thereof or in any fund or specific asset or assets of the Company or any affiliate thereof by reason of an Award. No right or benefit provided in this Plan
shall be transferable by the Participant. No right or benefit under this Plan shall be subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by any creditor or beneficiary of the
Participant. Any attempt to anticipate, alienate, sell, assign, pledge, encumber, or charge the same shall be void. No right or benefit under this Plan shall in any manner be liable for or subject to any debts, contracts, liabilities or torts of the
person entitled to such benefits. If any Participant or any beneficiary becomes bankrupt or attempts to anticipate, alienate, sell, assign, pledge, encumber or charge any right or benefit under this Plan, that right or benefit shall, in the
discretion of the Committee, cease. 
  
 B. Nothing in this Plan
shall be construed: 
  
 1. To give any employee
of the Company or an affiliate thereof any right to be designated a Participant in the Plan; 
  

 4 

 2. To give a Participant any right to receive an Award, except in accordance with the
terms of this Plan; 
  
 3. To limit in any way
the right of the Company or any affiliate thereof to terminate a Participant’s employment at any time and for any reason; 
  
 4. To evidence any agreement or understanding by the Company, expressed or implied, that the Company will employ a Participant in any
particular position or for any particular remuneration or time; or 
  
 5. To give a Participant or any other person claiming through him or her any interest or right under this Plan other than that of an unsecured general creditor of the Company. 
  
 C. Unless expressly provided otherwise in the Guidelines or in a written
agreement executed on behalf of the Company by the CEO, COO or CFO, Participants shall forfeit without payment all rights with respect to an Award in the following circumstances: 
  
 1. If a Participant’s employment is terminated for any reason; or 
  
 2. If the Participant engages in willful, deliberate or
gross misconduct. 
  
 X. NATURE OF PLAN

  
 This Plan is only a general corporate commitment, and each Participant must
rely upon the general credit of the Company for the fulfillment of its obligations hereunder. Under all circumstances, the rights of Participants to any asset held by the Company will be no greater than the rights expressed in this Plan. Nothing
contained in this Plan shall constitute a guarantee by the Company that its assets will be sufficient to pay any benefits under this Plan or would place the Participant in a secured position ahead of general creditors of the Company; the
Participants are only unsecured creditors of the Company with respect to their Plan benefits and the Plan constitutes a mere contingent promise by the Company to make payments in the future if earned pursuant to the terms of the Plan and the
Guidelines. Although the Company may establish a trust to accumulate assets to fulfill its obligations, the Plan and the trust, if so established, will not create any lien, claim, encumbrance, right, title or other interest of any kind whatsoever in
any Participant in any asset held by the Company, contributed to a trust or otherwise designated to be used for payment of any of its obligations created in this Plan. No specific assets of the Company have been or shall be set aside prior to
payment of an Award, or shall in any way be transferred to the trust or shall be pledged in any way for the performance of the Company’s obligations under this Plan which would remove such assets from being subject to the general creditors of
the Company. 
  
 XI. AMENDMENT, SUSPENSION OR
TERMINATION OF THE PLAN 
  
 The Committee may at any time amend, suspend or
terminate the Plan, in whole or in part, except that no amendment, suspension or termination shall reduce any benefits that are payable to a Participant prior to the date of such amendment, suspension or termination, except as provided in Section IX
of this Plan. 
  
 XII. SUCCESSORS AND ASSIGNS

  
 The provisions of the Plan shall be binding upon the Company and its
successors and upon the Participants and their legal representatives. 
  
 XIII. UNFUNDED ARRANGEMENT 
  
 It is intended
that this Plan shall be unfunded for federal tax purposes and for purposes of Title 1 of the Employee Retirement Income Security Act of 1974, as amended. 
  

 5 

 The TriZetto Group, Inc. 
 Cash Bonus Plan 
 Guidelines for the 2005 Plan Year 
  
 These Guidelines set forth the guidelines of the Plan for the 2005 Plan Year. Capitalized
terms used in these Guidelines but not defined herein shall have the meanings ascribed to them in the Plan. 
  
 Participation. 
  
 Participants eligible
under the Plan for the 2005 Plan Year shall be those employees of the Company with salary grade levels listed on Exhibit A to these Guidelines. Upon the recommendation of the CEO (or his or her designee), the Committee may approve the entry of
additional Participants in the Plan effective on the first day of any month of the Plan Year following their promotion or employment date. Participants who enter the Plan during the Plan Year shall be eligible for an Award under the Plan but, unless
otherwise approved by the CEO, COO or CFO, may only be eligible for an Award calculated pro rata based upon the period of actual service during the Plan Year. Notwithstanding anything to the contrary herein, no employee shall be entitled to an Award
if he or she first becomes eligible during the fourth quarter of 2005. In addition, temporary employees of the Company are not eligible to participate in this Plan. Any Participant classified by the Company as a part-time employee will only be
eligible for a pro rata share of an Award based on such employee’s hours of actual service during the Plan Year. 
  
 Employees eligible to participate in a Company-sponsored commission or other incentive plan applicable to sales, solution architects (or sales support), account
relationship managers or executives or professional consultants shall not be eligible to receive awards under this Plan, unless otherwise approved in writing by the CEO, COO or CFO. 
  
 Bonus Opportunities. 
  
 A. Target Percentage. The Target Percentage for each Participant for the 2005 Plan Year is set forth in Exhibit A opposite such Participant’s
salary grade level. The Target Percentage is a specific percentage of the Participant’s base salary as of December 1 of the Plan Year, or such other date determined by the Committee. 
  
 B. Company Targets, Funding Percentage and Weightings. The Company Targets, Funding Percentage schedule, weightings
and criteria for determining the weighted Funding Percentage for the 2005 Plan Year are set forth in Exhibit B. 
  
 Conflicts. 
  
 Any conflicts between the Plan and these Guidelines shall be resolved in favor of the Plan. Notwithstanding the preceding sentence, it is the intention of the Committee that the Plan shall be construed broadly to
accommodate the provisions and concepts embodied in these Guidelines to the extent reasonably possible. 
  

 6 

 Exhibit A 
 The TriZetto Group, Inc. Cash Bonus Plan 
 Guidelines for the 2005 Plan Year 
 Target Percentages 
  

			
	 Salary Grade Level

	 	 Target
 Percentages (as % of base salary)

	13	 	100
	12	 	75
	11	 	50
	10	 	30
	9	 	20
	8	 	10
	7	 	8
	6	 	7
	5	 	6
	4	 	5
	3	 	4
	2	 	3
	1	 	2

  

 7 

 Exhibit B 
 The TriZetto Group, Inc. Cash Bonus Plan 
 Guidelines for the 2005 Plan Year 
 Company Targets, Funding Percentage Schedule and Weightings 
  

A. Company Targets and Weightings for Participants in each EOU, SEOU and SSU. 
  
 [REDACTED] 
  
 B. Determination of Funding Percentage. 
  
 The Funding Percentage shall be determined based on the level of the Company’s achievement of each of the Company Targets specified above. In order to determine the
weighted Funding Percentage, the Funding Percentage for each Company Target must be computed based on the following schedule: 
  

				
	 % of Target Amount Achieved

	  	 Funding
 Percentage

	 
	 Greater than 110%
	  	105	%
	 Greater than 100% but less than 110%
	  	100	%
	 Greater than 90% but less than 100%
	  	90	%
	 Greater than 80% but less than 90%
	  	60	%
	 Greater than 70% but less than 80%
	  	40	%
	 Greater than 60% but less than 70%
	  	20	%
	 Less than 60%
	  	0	%

  
 After determining the Funding
Percentage for each Company Target, the weighted Funding Percentage for each Participant is calculated using the weightings for each Company Target specified in the table applicable to such Participant’s SSU, EOU or SEOU. 
  
 C. Example. 
  
 [REDACTED] 
  

 8

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