SEC Form 4
FORM 4 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940
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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
1. Name and Address of Reporting Person*
EARLEY KATHLEEN

(Last) (First) (Middle)
567 SAN NICOLAS DRIVE, SUITE 360

(Street)
NEWPORT BEACH, CA 92660

(City) (State) (Zip)
2. Issuer Name and Ticker or Trading Symbol
TRIZETTO GROUP INC [ TZIX ]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
Director 10% Owner
X Officer (give title below) Other (specify below)
President and COO
3. Date of Earliest Transaction (Month/Day/Year)
08/04/2008
4. If Amendment, Date of Original Filed (Month/Day/Year)
6. Individual or Joint/Group Filing (Check Applicable Line)
X Form filed by One Reporting Person
Form filed by More than One Reporting Person
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 08/04/2008 A(1) 12,501 A $0 141,707 D
Common Stock 08/04/2008 D 141,707 D $22(2) 0 D
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 6. Date Exercisable and Expiration Date (Month/Day/Year) 7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Employee Stock Option (right to buy) $7.07 08/04/2008 D 100,000 (3) 11/07/2014 Common Stock 100,000 (3) 0 D
Employee Stock Option (right to buy) $7.07 08/04/2008 D 50,000 (4) 11/07/2014 Common Stock 50,000 (4) 0 D
Employee Stock Option (right to buy) $16.81 08/04/2008 D 25,000 (5) 03/05/2016 Common Stock 25,000 (5) 0 D
Employee Stock Option (right to buy) $20.42 08/04/2008 D 20,260 (6) 01/29/2017 Common Stock 20,260 (6) 0 D
Employee Stock Option (right to buy) $19.19 08/04/2008 D 79,984 (7) 02/06/2013 Common Stock 79,984 (7) 0 D
Explanation of Responses:
1. These shares of restricted Common Stock were granted to the Reporting Person under the Issuer's 1998 Long-Term Incentive Plan. The award, which was granted on January 30, 2007, was not reported previously on a Form 4 because it was performance-based and its vesting was contingent upon the attainment of certain goals. Now, however, pursuant to the merger between the Issuer, TZ Holdings, L.P. and TZ Merger Sub, Inc., effective August 4, 2008 (the "Merger"), this award vested in full on August 4, 2008.
2. Disposed of pursuant to the Merger, which provides for the cancellation of shares of Common Stock of the Issuer in exchange for $22.00 per share (the "Merger Consideration").
3. This option, which provided for vesting in four equal annual installments beginning on November 8, 2005, was cancelled in the Merger in exchange for a cash payment equal to the Merger Consideration less the exercise price per share for each of the underlying shares.
4. This option, which provided for cliff vesting on November 8, 2011 (unless accelerated upon the attainment of certain goals), was cancelled in the Merger in exchange for a cash payment equal to the Merger Consideration less the exercise price per share for each of the underlying shares.
5. This option, which provided for vesting in four equal annual installments beginning on March 6, 2007, was cancelled in the Merger in exchange for a cash payment equal to the Merger Consideration less the exercise price per share for each of the underlying shares.
6. This option, which provided for vesting in four equal annual installments beginning on January 30, 2008, was cancelled in the Merger in exchange for a cash payment equal to the Merger Consideration less the exercise price per share for each of the underlying shares.
7. This option, which provided for vesting in four equal annual installments beginning on February 7, 2009, was cancelled in the Merger in exchange for a cash payment equal to the Merger Consideration less the exercise price per share for each of the underlying shares.
Remarks:
/s/ James J. Sullivan, Attorney-in-Fact for Kathleen Earley 08/05/2008
** Signature of Reporting Person Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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