Document:

Exhibit

Exhibit 10.9

September 26, 2011
Paul Horstmeier
Dear Paul:
Healthcare Quality Catalyst, LLC (the “Company”) is pleased to offer you employment on the following terms:
1.    Position.  Your initial title will be CEO, and you will initially report to Dan Burton.  This is a full-time position.  While you render services to the Company, you will not engage in any other employment, consulting or other business activity (whether full-time or part-time) that would create a conflict of interest with the Company.  By signing this letter agreement, you confirm to the Company that you have no contractual commitments or other legal obligations that would prohibit you from performing your duties for the Company.
2.    Cash Compensation.  The Company will pay you a starting salary at the rate of $250,000 per year, payable in accordance with the Company’s standard payroll schedule.  This salary will be subject to adjustment pursuant to the Company’s employee compensation policies in effect from time to time.  In addition, you will be eligible to be considered for an incentive bonus for each fiscal year of the Company.  The bonus (if any) will be awarded based on objective or subjective criteria established by the Chief Executive Officer and approved by the Board of Directors of HQC Holdings, Inc., the parent of the Company (the “Parent”).  Your target bonus will be equal to 40% of your annual base salary.  Any bonus for the fiscal year in which your employment begins will be prorated, based on the number of days you are employed by the Company during that fiscal year.  The bonus for a fiscal year will be paid after the Company’s books for that year have been closed and will be paid only if you are employed by the Company at the time of payment.  The determinations of the Company’s Board of Directors with respect to your bonus will be final and binding.
3.    Employee Benefits.  As a regular employee of the Company, you will be eligible to participate in a number of Company-sponsored benefits.  In addition, you will be entitled to paid vacation in accordance with the Company’s vacation policy, as in effect from time to time.  The Company reserves the right to alter its benefits package and vacation policies at any time.
4.    Employee Invention and Confidentiality Agreement.  Like all Company employees, you will be required, as a condition of your employment with the Company, to sign the Company’s standard Employee Invention and Confidentiality Agreement, a copy of which is attached hereto as Exhibit A.
5.    Employment Relationship.  Employment with the Company is for no specific period of time.  Your employment with the Company will be “at will,” meaning that either you or the Company may terminate your employment at any time and for any reason, with or without cause.  Any contrary representations that may have been made to you are superseded by this letter agreement.  This is the full and complete agreement between you and the Company on this term.  Although your job duties, title, compensation and benefits, as well as the Company’s 

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personnel policies and procedures, may change from time to time, the “at will” nature of your employment may only be changed in an express written agreement signed by you and a duly authorized officer of the Company (other than you).
6.    Taxes.  All forms of compensation referred to in this letter agreement are subject to reduction to reflect applicable withholding and payroll taxes and other deductions required by law.  You agree that the Company does not have a duty to design its compensation policies in a manner that minimizes your tax liabilities, and you will not make any claim against the Company or the Parent or its Board of Directors related to tax liabilities arising from your compensation.
7.    Interpretation, Amendment and Enforcement.  This letter agreement and Exhibit A constitute the complete agreement between you and the Company, contain all of the terms of your employment with the Company and supersede any prior agreements, representations or understandings (whether written, oral or implied) between you and the Company.  This letter agreement may not be amended or modified, except by an express written agreement signed by both you and a duly authorized officer of the Company.  The terms of this letter agreement and the resolution of any disputes as to the meaning, effect, performance or validity of this letter agreement or arising out of, related to, or in any way connected with, this letter agreement, your employment with the Company or any other relationship between you and the Company (the “Disputes”) will be governed by Utah law, excluding laws relating to conflicts or choice of law.  You and the Company submit to the exclusive personal jurisdiction of the federal and state courts located in Salt Lake City, Utah in connection with any Dispute or any claim related to any Dispute.
8.    Arbitration.  Any controversy or claim arising out of this letter agreement and any and all claims relating to your employment with the Company will be settled by final and binding arbitration.  The arbitration will take place in Salt Lake City, Utah.  The arbitration will be administered by the American Arbitration Association under its National Rules for the Resolution of Employment Disputes.  Any award or finding will be confidential.  You and the Company agree to provide one another with reasonable access to documents and witnesses in connection with the resolution of the dispute.  You and the Company will share the costs of arbitration equally.  Each party will be responsible for its own attorneys’ fees, and the arbitrator may not award attorneys’ fees unless a statute or contract at issue specifically authorizes such an award.  This Section 9 does not apply to claims for workers’ compensation benefits or unemployment insurance benefits.  This Section 9 also does not apply to claims concerning the ownership, validity, infringement, misappropriation, disclosure, misuse or enforceability of any confidential information, patent right, copyright, mask work, trademark or any other trade secret or intellectual property held or sought by either you or the Company (whether or not arising under the Employee Invention and Confidentiality Agreement between you and the Company).
* * * * *
We hope that you will accept our offer to join the Company.  You may indicate your agreement with these terms and accept this offer by signing and dating both the enclosed duplicate original of this letter agreement and the enclosed Employee Invention and Confidentiality Agreement and returning 

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them to me.  This offer, if not accepted, will expire at the close of business on September 26, 2011.  As required by law, your employment with the Company is contingent upon your providing legal proof of your identity and authorization to work in the United States.  Your employment is also contingent upon your starting work with the Company on or before September 26, 2011.
If you have any questions, please call me at (208) 891-2084.
	
		
	Very truly yours,

	 
	 

	 
	 

	/s/ Jeff Selander

	 
	 

	Healthcare Quality Catalyst, LLC

	 
	 

	By:
	Jeff Selander

	 
	 

	Title:
	CFO

I have read and accept this employment offer:
	
			
	/s/ Paul Horstmeier

	Signature:
	Paul Horstmeier

	 
	 
	 

	Dated:
	9/26/2011

Attachment
Exhibit A:  Employee Invention and Confidentiality Agreement

3Exhibit

Exhibit 10.10

May 22, 2013
Linda Llewelyn
Dear Linda,
We are pleased to extend to you this offer of full-time employment with Health Catalyst.  We are confident that your skills, experience and hard work will contribute meaningfully to the success of the company.  This offer is subject to the terms and conditions set forth in this offer.  This letter does not represent a contract or agreement for employment; and employment with Health Catalyst (“HC”) is at will.
	
		
	Position:  Human Resources Manager
	Division/Department:  Human Resources

	Base salary:  $90,000 Annualized
	FLSA status:  Exempt

	Start date:  June 17, 2013
	Location:  Corporate Office - Salt Lake City, Utah

Business hours: 8:00 AM - 5:00 PM, Monday through Friday
In addition to the base salary, this full-time employment offer includes the following benefit programs:
Performance Based Raise:  In 90 days from your actual start date, you will be eligible for a salary increase to $105,000 if you meet the mutually agreed upon criteria.
Bonus:  You will be eligible to receive a bonus equal to 10% of your annual base salary subject to the individual, department, and company performance initiatives.  This bonus will be prorated based upon the number of days you are employed during the fiscal year.  The bonus for any fiscal year will be paid every 6 months, after approval from the Board of Directors and HC’s books for that period have been closed.  The bonus will only be paid if you are employed by HC at the time of bonus determination.
Stock Option Grant:  You will also receive a Stock Option Grant for a certain number of shares of the Parent Company’s Common Stock.  The amount of your option grant is set within the sole discretion of the Board of Directors, at the next applicable board meeting.  This option is subject to the terms and conditions applicable to options granted under the Parent’s 2011 Stock Incentive Plan as described in the Plan and the applicable Stock Option Agreement.  You will be vested in 25% of the option share after 12 months of continuous service, and the balance will vest in equal monthly installments over the next 36 months of continuous service, as described in the applicable Stock Option Agreement.
Insurance Plans:  Eligibility begins on the first day of the month following 30-days of employment.
		
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	Medical and Dental Insurance:  HC pays 100% of the monthly insurance premium for the employee and 50% of the adjusted premium for dependents and spouse.  HC offers both a Traditional and HSA-High Deductible Health Plan options.  HC also provides an employer contribution to those enrolled in the HSA-HDHP

		
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	Vision Insurance:  The Vision Plan is an employee elective plan.  The insurance premium is the responsibility of the employee.  Premiums may be deducted as a pre-tax deduction on a per-pay period basis.

		
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	Life, Accidently Death and Dismemberment, and Disability Insurance:  These insurance programs are paid 100% by HC.

		
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	Flexible Spending Account:  HC offers FSAs for medical, limited purpose, dependent care and commuter expense accounts.  FSAs allow you to contribute pre-tax dollars which can be used to pay for qualifying expenses not otherwise covered under normal health-related insurance plans.  The Commuter Expense FSA allows you to set aside pre-tax dollars for use in qualifying commuter expenses.

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Paid Time Off:
		
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	Holiday Pay:  Ten days of time off with pay according to the annual holiday schedule, including two personal holidays.

		
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	Paid Time Off:  PTO eligibility begins on your date of hire and may be used as soon as it is earned.  PTO is accrued and awarded according to the following schedule:

	
				
	Accrual Period
	Hours
	Hours Per Pay Period
	Days Per Year

	0-4 years of service
	120
	4.62
	15

	5-9 years of service
	160
	6.15
	20

	10+years-Maximum accrual
	208
	8.0
	26

Retirement Plan: HC offers a Safe Harbor 401K Retirement Plan.  Eligibility begins 90-days after employment.  This Safe Harbor Plan allows for employee and employer contributions.  HC matches employee contributions dollar-for-dollar up to 4% of annual base salary.  The HC 401K Plan is an auto-enrollment plan with a 6% default employee contribution rate.
All benefits are subject to change.  Additional details about each benefit are available in the Employee Handbook or by speaking directly with the Human Resource office.
Pay checks are issued on a bi-weekly basis with a total of 26 pay periods per calendar year.  You are encouraged to participate in our direct deposit program as our payroll is outsourced.
With acceptance of this employment offer, you will be asked to sign this Employment Offer Letter and Agreement and an Employee Invention and Confidentiality Agreement (EICA) and agree to the on-going compliance with such agreements as a condition of employment.  These agreements contain “employment at will”, “non-compete” and “non-disclosure” provisions.  A copy of the EICA is available for your review upon request in advance of accepting employment.  Otherwise, a personalized copy of the EICA will be provided to you prior to your start date.
At Will Employment
Employment with HC is “at-will.”  This means that it is not for any specified period of time and can be terminated by you or by HC at any time, with or without advance notice or additional payment, and for any or no particular reason or cause.  It also means that your job duties, title and responsibility and reporting level, compensation and benefits, as well as HC’s personnel policies and procedures, may be changed at any time, with or without notice, in the sole and absolute discretion of HC.
The “at-will” nature of your employment shall remain unchanged during your tenure as an employee and may not be changed, except in an express writing signed by you and by a duly authorized officer of HC.
In addition, we are required by law to obtain documentation within the first three days of employment that you are eligible to work in the United States.  Please bring copies of your eligibility documentation on your first day of employment.  Enclosed is a copy of INS Form 1-9, which contains a list of acceptable documentation.
If you accept this offer, this letter and the written agreements referenced in this letter shall constitute the complete agreement between you and HC with respect to the initial terms and conditions of your employment.  Any representations not contained in this letter, or contrary to those contained in this letter (whether written or oral), that may have been made to you are expressly cancelled and superseded by this offer.  Except as 

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otherwise specified in this letter, the terms and conditions of your employment pursuant to this letter may not be changed, except by a writing signed by a duly authorized officer of HC.
HC reserves the right to provide you with additional policies in addition to any existing written policies that would apply to the terms of your employment.
Should your position, compensation, or benefits change over time the remaining sections of this agreement will still be valid.  If any provision in this offer or compliance by you or HC with any provision of this offer constitutes a violation of any law, or is or becomes unenforceable or void, it will be deemed modified to the extent necessary so that it is no longer in violation of law, unenforceable or void, and such provision will be enforced to the fullest extent permitted by law.  If such modification is not possible, said provision, to the extent that it is in violation of law, unenforceable or void, will be deemed severable from the remaining provisions of this offer, which provisions and terms will remain in effect.
This offer is valid until May 28, 2013 and requires a response by 11:00 AM on this date.  You should keep a copy of this letter for your own records.  If you have any questions regarding this offer, please contact our Human Resource office at 801-708-6809 at your earliest convenience.
We look forward to you joining the Health Catalyst team.
Sincerely,
	
	
	/s/ Heather Eastman

	 

	Heather Eastman

	Human Resources Manager

	Heather.eastman@healthcatalyst.com

Acknowledgement of Understanding and Acceptance 
By signing below:
		
	1.
	I acknowledge that I have read and understand the foregoing terms and conditions of this employment offer.

		
	2.
	I accept this employment offer.

	
					
	Accepted by:
	/s/ Linda Llewelyn
	 
	Date:
	5/28/2013

	 
	Signature
	 
	 
	 

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