Document:

Exhibit

Exhibit 10.7

October 24, 2011
Mr. Dale Sanders 
Dear Dale:
Healthcare Quality Catalyst, LLC (the “Company”) is pleased to offer you employment on the following terms:
1.    Position.  Your title will be Senior Vice President, reporting to the CEO. Your employment will be classified as full-time with standard employee benefits. While employed by the Company, you will not engage in any other employment, consulting or other business activity (whether full-time or part-time), except for your continuing work with the Cayman Islands Health Advisory Group, your personal blog concerning healthcare data warehousing and analytics, and unpaid consulting work not to exceed 8 hours per month with the Advisory Board Company. By signing this agreement, you confirm that you have no contractual commitments or other legal obligations that would prohibit you from performing your duties for the Company.
2.    Cash Compensation.  You will be paid a salary of $150,000 per year, payable in accordance with the Company’s standard payroll schedule. Salary increases, if any, will be as determined and approved by the Board. In addition to your salary and subject to Board approval, you will be eligible for a bonus, with an anticipated target of 200% of your base salary, tied to certain key strategic objectives at the sole discretion of the Board. More details regarding the structure of the bonus and the strategic objectives to be realized will be forthcoming.
3.    Employee Benefits.  As a full-time employee of the Company, you are eligible to participate in Company-sponsored benefits (e.g., health care, dental, vacation) as currently in effect. The Company reserves the right to establish employment policies and to amend or alter the same from time to time in the Company’s sole discretion.
4.    Stock Options.  Subject to the approval of the Board, you may be granted an option to purchase up to 100,000 shares of the Company’s Common Stock. The Board, in its sole discretion, will set the amount of your option grant. The exercise price per share will be determined by the Board when the option is granted. The option will be subject to the terms and conditions applicable to options granted under the Company’s 2011 Stock Incentive Plan (the “Plan”), as described in the Plan and the applicable Stock Option Agreement. The option will be immediately exercisable, but the unvested portion of the purchased shares will be subject to repurchase by the Company at the exercise price in the event that your service terminates tor any reason before you vest in the shares. You will vest in 25% of the option shares 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.
5.    Employee Invention and Confidentiality Agreement.  You agree to and will sign, as a condition of employment, the Employee Invention and Confidentiality Agreement attached hereto as Exhibit A.

6.    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 tor 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 and condition. Although your job duties, title, compensation and benefits, as well as the Company’s 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.
7.    Office Location.  It is understood that you will live in Durango, Colorado, while working for the Company. We will provide and pay for all necessary’ infrastructure to set up your home office.
8.    Education.  The company is supportive of your intent to pursue a graduate degree; accordingly, as part of your total compensation package, the Company will provide tuition reimbursement for actual documented expenses pertaining to your obtaining your graduate degree. As a condition of your employment you will provide to the Company regular reports regarding your progress toward obtaining said graduate degree.
9.    Independent Thought Leadership.  The Company supports your commitment to being an independent thought leader and promoting general education of health systems concerning the value of data warehousing, including, but not limited to contributing to your blog and engaging in other educational activities including national forums, which provide such opportunities.
10.    Taxes.  All forms of compensation referred to in this letter agreement are subject to applicable withholding and payroll taxes and other deductions required by law. You agree that the Company does not have a duty to you to design its compensation policies in a manner that minimizes your tax liabilities, and you will not make any claim against the Company or Company’s Board of Directors related to your personal tax liabilities arising from compensation provided to you in cash or otherwise.
11.    Final Agreement.  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.
*   *   *   *   *
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 

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Confidentiality Agreement and returning them to me. If not accepted, this offer will expire at the close of business on October 18, 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 November 1, 2011.
If you have any questions, please call me at (801) 363-5140.
	
		
	Sincerely,

	 
	 

	/s/ David A. Burton

	 
	 

	Healthcare Quality Catalyst, LLC

	 
	 

	By:
	David A. Burton

	 
	 

	Title:
	CEO

I have read and accept this employment offer:
	
		
	/s/ Dale Sanders

	 
	 

	Signature

	 
	 

	Dale Sanders

	 
	 

	Dated:
	10/31/2011

Attachment
Exhibit A: Employee Invention and Confidentiality Agreement

3Exhibit

Exhibit 10.8

May 20, 2013
Patrick Nelli
Dear Patrick,
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:  Financial Planning and Analysis Manager
	Division/Department:  Finance

	Base salary:  $75,000 Annualized
	FLSA status:  Exempt

	Start date:  August 5, 2013
	Location:  Remote - San Francisco

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:
Bonus:  You will be eligible to receive a bonus equal to 35% 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 5 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, but is expected to be 4,000.  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 H

		
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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.

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 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.

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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 21, 2013 and requires a written 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/ James Patrick Nelli Jr.
	 
	Date:
	5/20/2013

	 
	Signature
	 
	 
	 

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