Document:

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                                                                   EXHIBIT 10.21

October 20, 2004

Dave Nuti
5764 Auburn Drive
Madison, WI  53711

Dear Dave:

The following are the terms of an agreement between you and Third Wave
Technologies, Inc.

                                    AGREEMENT

      1.    TRANSITION PERIOD.

            a.    You agree that you will continue serving as TWT's Chief
Financial Officer through the end of business October 29, 2004, and that,
without limiting the foregoing, you will participate in TWT's earnings call
scheduled for October 27, 2004 and if completed, sign required lawful and
appropriate SEC filings for TWT's third quarter financial results by October 29,
2004. Effective October 30, 2004, you will cease serving as TWT's Chief
Financial Officer. TWT agrees that it will pay you 100% of your accrued and
unused PTO through October 31, 2004 in your pay check for the period ending
October 31, 2004. You will not accrue additional PTO after October 30, 2004.

            b.    You agree that the transition period for your orderly
departure from TWT will commence October 30, 2004, and will conclude December
31, 2004 ("Transition Period"), subject to termination of the Transition Period
after October 30, 2004 and prior to December 31, 2004 if you start a new job
during that period. During the Transition Period, you will be employed as a
full-time financial advisor to TWT with respect to non-forward-looking financial
data. You agree you will come to the work site and make yourself available to
work during the Transition Period, as directed by John Puisis or his designee,
on financial advisory projects specified by John Puisis or his designee
consistent with the prior sentence. You will be paid your current salary of
$220,000 per year on a prorata basis during the Transition Period, to be paid in
accordance with TWT's regular payroll schedule and less all deductions currently
in place and for taxes required by law. Your existing benefits will continue
through December 31, 2004 (unless you obtain alternative employment and
terminate the Transition Period earlier).

      2.    SEVERANCE PAY. TWT will pay you non-cancelable severance payments
for six (6) months in the pre-tax amount of $15,000 per month ($7,500/paycheck *
2 paychecks/month * 6 months). Non-cancelable severance payments will commence
on the earlier of (i) January 1, 2005 or (ii) the date between October 30, 2004
and December 31, 2004 that you terminate the Transition Period as a result of
you starting a new job, and will end six months thereafter (the "Severance
Period"). Subject to Paragraph 4 below, severance will be payable in
installments on TWT's regular payroll dates. Each installment will occur in the
amount stated above each payroll period. Each severance payment will be subject
to deductions for income and payroll taxes. You understand that TWT has made
this offer with the intent that you will not receive unemployment compensation
until after the Severance Period ends and you agree not to apply for
unemployment benefits until after the Severance Period ends. TWT agrees it will
not affirmatively challenge your entitlement to unemployment compensation
benefits after the Severance Period ends.

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October 20, 2004
Page 2 of 8

      TWT may, in its sole discretion, elect to make cancelable severance
payments for an additional six (6) months commencing on July 1, 2005 or at the
end of the six (6) month severance period, if you have not secured alternative
employment by that date. Any such payments shall not be deemed to extend the
"Severance Period" for purposes of TWT's obligation to pay family health and
dental insurance premiums as described in the immediately following paragraph.

      TWT also agrees to pay 100% of the insurance premiums for family health
and dental coverage during the Severance Period, subject to the same insurance
policy co-payments currently in place, if you elect continuation coverage
through TWT's group health policy pursuant to COBRA (the "Insurance Payment").
You are responsible for paying the premiums for any insurance coverage for you
or your family after the Severance Period for health and dental, whether through
TWT's group health policy pursuant to COBRA continuation rights or through any
other employer or individual plan. You understand that your COBRA continuation
rights begin on the first day of the Severance Period for health and dental
insurance, even though TWT agrees to pay the premiums through the end of the
Severance Period for health and dental insurance. You agree that TWT will in no
way be responsible for damages resulting from any lapse in such coverage.

      3.    SPECIAL EQUITY. TWT will give you accelerated vesting on select
unvested stock options as identified in the attached Exhibit A, which is
incorporated herein by this reference. Additionally, for stock options already
vested on October 30, 2004, TWT will provide an extended exercise date beyond
the ninety (90) day limitation up to two years from October 30, 2004. The 10,000
options on the accelerated vesting schedule, as identified on Exhibit A, will
vest on October 30, 2004, and may be exercised within two years upon vesting.
Except for the 10,000 options, TWT may revoke extended exercise provisions
provided within this paragraph at any time at TWT's sole discretion for your
failure, in TWT's sole judgment, to act in accordance with your obligations
hereunder or to act in the best interests of TWT. In the event of such
revocation, you will receive written notice from TWT and you will be able to
exercise only those options that were vested per their original vesting schedule
as of October 30, 2004 provided such exercise is completed within ninety (90)
calendar days of the date of TWT's notice of revocation. You agree that you will
not trade any TWT security in violation of any insider trading laws.

      4.    RELEASE OF CLAIMS. In exchange for the severance payments and other
consideration described in this Agreement, you agree--for yourself, your heirs,
your beneficiaries and all other representatives--to waive and release and, with
this Agreement, you do waive and release all past or present claims of any
nature against TWT. Further, you agree not to institute or cause to be
instituted in any state or federal court any such action or claim. This waiver
and release of claims applies to any claims against TWT or anyone associated
with or representing TWT--including, but not limited to, its officers,
directors, partners, employees, attorneys, or agents (the "Releasees").

            a.    Claims Released. The claims you are waiving in exchange for
the payments and other consideration described in this Agreement include, but
are not limited to, claims under federal, state or local law including but not
limited to, the Civil Rights Act of 1964, as amended; the Family Medical Leave
Act, the Americans with Disabilities Act; the Wisconsin Fair Employment
Practices Act and if applicable, the Age Discrimination in Employment Act, for
discrimination of any kind, tort, breach of contract, wrongful discharge, lost
wages, compensatory damages, punitive damages, attorneys' fees, and all other
claims of any type or nature, whether known or unknown, matured or unmatured,
direct or indirect. Other claims you

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October 20, 2004
Page 3 of 8

are waiving are those that relate to ownership of any intellectual property or
trade secrets developed during the term of your employment. You acknowledge your
lab books and those of individuals who have worked for or with you are complete
and you acknowledge that all intellectual property and trade secrets conceived
or developed by you during the term of your employment are solely the property
of TWT.

            b.    Your Representation and Waiver. You represent that you have
not filed any such action or claim in any court or before any state, federal or
other governmental agency. You forever waive any right to recover money damages
or any other form of relief for any and all claims waived under this Agreement.
You further agree to waive your rights to and not accept any benefits which
might be conferred upon you in any administrative court or other legal
proceeding concerning any claim released by this Paragraph 4. You understand and
agree that this release forever bars you from suing, arbitrating or otherwise
asserting a claim against TWT on any released claim.

            c.    ADEA Release and Waiver. In exchange for the amounts paid to
you under this Agreement, you specifically waive any claims you may have under
the Age Discrimination in Employment Act of 1967, the Older Workers Benefit
Protection Act, or any similar law. You are not waiving any rights or claims
that may arise after the date of this Agreement. You further acknowledge that
you have been advised by this writing (i) to consult with an attorney prior to
executing this Agreement; (ii) that you have up to twenty-one (21) days to
review this Agreement and to decide whether to accept it; (iii) that you have
seven (7) days after signing it to cancel and revoke this Agreement; and (iv)
that this Agreement will not become effective until the seven-day time period
has passed. If you give notice of revocation before the end of the seven (7) day
period, this Agreement will become null and void. TWT is not required to provide
any portion of any payment or other benefit described in the Agreement before
the seven-day time period has passed.

            d.    Consideration for the Release of Claims. You acknowledge that
the payments and other consideration TWT has agreed to give under this Agreement
are benefits to which you would not have been entitled if you did not sign this
Agreement and that TWT has agreed to provide the consideration only if you sign
this Agreement and give up the claims described in it.

      5.    YOUR CONTINUING OBLIGATIONS.

            a.    Your Employment Agreement dated April 10, 2002 is hereby
incorporated by reference and any provision of said Agreement not superceded by
a specific provision of this Agreement shall remain in effect and be binding on
the parties with respect to your post employment obligations. A copy is included
with this Agreement.

            b.    You agree, in exchange for severance payments, Insurance
Payment, and special equity described in Paragraph 3 to substitute the following
in place of the arbitration and confidentiality provisions of the Employment
Agreement:

            Arbitration: You further acknowledge and agree that the parties may
enforce the terms of this Agreement in state or federal court in Dane County,
Wisconsin. You expressly consent to jurisdiction in Dane County, Wisconsin to
resolve any controversy involving this Agreement.

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October 20, 2004
Page 4 of 8

            Confidentiality: You acknowledge and agree that while employed at
TWT you have been privy to substantial confidential business, financial and
technology information relating to TWT and its business as well as current and
potential business partners and third parties in both commercial as well as
academic organizations, some of which is extremely sensitive and proprietary.
You expressly covenant as follows:

            (i)   You agree that you have not and will not disclose to others or
      use any Trade Secret owned or possessed by TWT or any other Releasee, or
      that any Trade Secret that was created by you or anyone related to TWT, or
      was disclosed to you, whether you have such Trade Secret in your memory or
      embodied in writing or other physical form, for as long as the information
      remains a Trade Secret. "Trade Secret" means all information which derives
      independent economic value, actual or potential, from not being generally
      known to, and not being readily ascertainable by proper means, by other
      persons who can obtain economic or personal value from its disclosure or
      use and is subject to TWT's or any other Releasee's efforts to maintain
      its secrecy that are reasonable under the circumstances.

            (ii)  In addition to the foregoing, you agree not to disclose or use
      between the date of this Agreement and two (2) years following the end of
      the Transition Period any Confidential Information which is possessed by
      or developed for TWT which relates to TWT's existing or potential business
      or technology, and either was created by you or was disclosed to you.
      Confidential Information is information or technology, product development
      plans or strategies, market adoption plans and business plans that are
      generally not known to the public and which information or technology TWT
      seeks to protect from disclosure to its existing or potential competitors
      or others, including, without limitation, for example: non-public business
      plans, strategies, existing or proposed bids, costs, technical and
      engineering developments, existing or proposed research or development
      projects, financial or business projections, marketing plans, investments,
      negotiation strategies, and information received by TWT from others which
      TWT has an obligation to treat as confidential.

                  You understand your obligations under this paragraph apply to,
      and are intended to prevent, the direct or indirect disclosure of
      Confidential Information to others where such disclosure of Confidential
      Information would reasonably be considered to be useful to TWT's
      competitors or to a third party to become a competitor based in whole or
      in part on such disclosure of Confidential Information.

            (iii) You acknowledge that damages for the violation of this
      paragraph entitled "Confidentiality" will be inadequate and will not give
      full sufficient relief to TWT, and that a breach of this paragraph will
      constitute irreparable harm to TWT. Therefore, you agree that in the event
      of any violation of any covenant contained in this Paragraph, TWT shall be
      entitled to injunctive relief against the continued violation thereof in
      any court (federal or state) located in Dane County, Wisconsin.

            Such remedy, however, shall be cumulative and nonexclusive and shall
      be in addition to any other remedy to which TWT may be entitled.

      6.    NON-DISPARAGEMENT. You agree that you will refrain from making
disparaging comments or remarks about TWT or about or to any of the Releasees,
except that you may provide truthful information about TWT or the Releasees to
the extent required by law.
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October 20, 2004
Page 5 of 8

      TWT agrees that it will refrain from making disparaging comments or
remarks about you, except that TWT may provide truthful information about you to
the extent required by law.

      7.    NON-DISCLOSURE. You agree not to disclose the terms of this
Agreement to any person except for your immediate family members, attorney, or
financial advisor consulted in connection with review of this Agreement. You
assure us that no family member, attorney, or financial advisor will disclose
the terms of this Agreement to any other person except as required by law.

      TWT agrees not to disclose the terms of this Agreement to any person
except for its officers, directors, attorneys, accountants and other
professional advisors, and except to the extent disclosure may be required, or
deemed advisable in the opinion of TWT's attorneys, under applicable laws, rules
or regulations, including without limitation federal or state securities laws,
rules or regulations. TWT assures you that no officer, director, attorney,
accountant or other professional advisor will disclose the terms of this
Agreement to any other person except as required by law.

      8.    REPRESENTATIONS AND WARRANTIES. You represent and warrant that to
the best of your actual knowledge: (i) up until the time you sign this
Agreement, you have not violated your legal obligations relating to TWT or the
confidentiality obligations described in Paragraph 5 above, made disparaging
comments or remarks about TWT or about any of the Releasees as described in
Paragraph 6 above, or discussed or disclosed the existence or terms of this
Agreement as described in Paragraph 7 above; (ii) you are not aware of any
actual, alleged or suspected accounting issues, violations, or improprieties
relating to TWT that could have a material adverse effect on TWT; and (iii) you
are not aware of any actual, alleged or suspected (x) violation of any law, rule
or regulation (including without limitation securities laws, rules or
regulations, the Sarbanes-Oxley Act, or any regulation promulgated thereunder),
(y) violation of any applicable securities exchange listing requirement, or (z)
violation of any TWT rule, regulation, policy or code (including without
limitation the TWT Code of Business Conduct), by TWT or any of its directors,
officers, employees or representatives that could have a material adverse effect
on TWT. Any exceptions to this representation must be disclosed by you in
writing to TWT on or before the final execution of this Agreement with
sufficient detail to allow TWT to fully understand such action. In addition, you
agree that if you become aware during the Transition Period or the Severance
Period of any matter described in Section 8(ii) or (iii), you will immediately
report such matter to an executive officer of TWT.

      In the event that TWT finds that the any representation or warranty set
forth in the previous paragraph is inaccurate or untrue, or if you violate the
provisions or your Employment Agreement or Paragraphs 1, 2, 3, 4, 5, 6, 7,8 or 9
hereof, you agree that TWT will be entitled to immediately stop paying the
cancelable severance payments and Insurance Payment and revoke any other
benefits received under this Agreement to which you are otherwise entitled under
this Agreement and TWT will have no further obligation to continue any payments.
In addition, should TWT determine that a violation of Paragraphs 1, 2, 3, 4, 5,
6, 7,8 or 9 hereof or the Employment Agreement has occurred, TWT will be
entitled to a complete recovery of all cancelable severance payments and
Insurance Payment previously made during the Severance Period. Finally, at any
time, TWT may pursue whatever other legal remedies are available to it
including, but not limited to, the right to seek temporary and permanent
injunctions, which you agree are appropriate additional remedies to prevent
irreparable harm to the Company in the event of a breach of this Agreement or
your Employment Agreement.

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October 20, 2004
Page 6 of 8

      IN THE EVENT TWT FINDS YOU HAVE BREACHED ANY OBLIGATIONS HEREUNDER, YOU
AGREE TO IMMEDIATELY TENDER BACK TO TWT ALL CANCELABLE SEVERANCE AND BENEFITS
PAID AS WELL AS THE NET VALUE OF THE 10,000 STOCK OPTIONS ISSUED TO YOU AS PART
OF THIS AGREEMENT, PROVIDED THEY HAVE BEEN EXERCISED.

      9.    NON-SOLICITATION. You acknowledge and confirm that you continue to
be bound by section 7 of your Employment Agreement dated April 10, 2002
regarding non-solicitation of employees. In addition, you shall not, prior to
the expiration of one (1) year following the expiration of the Severance Period,
solicit, encourage or otherwise aid any employee of TWT to leave TWT for the
purpose of becoming associated in any manner whatsoever with any business with
which you intend to be or are then associated in any manner whatsoever. You
further agree you shall not, prior to the expiration of one (1) year following
the expiration of the Severance Period, solicit, encourage or otherwise induce
any suppliers, collaborators, customers or third parties, with whom TWT has
established relationships to discontinue their relationships with TWT.

      10.   ACCEPTANCE PROCEDURES. TWT wishes to ensure that you voluntarily
agree to the terms contained in this document and do so only after you fully
understand them. Accordingly, the following procedures will apply:

            a.    You may accept this document's terms by signing and dating it
and returning the signed and dated document so that it is postmarked or faxed to
TWT on or before the twenty first (21st) day following your receipt of this
document. The signed and dated document must be directed to Katie Zingg,
Director of Human Resources, in an envelope marked "Personal and Confidential"
at Third Wave Technologies, Inc., 502 South Rosa Road, Madison, WI 53719.

            b.    You will have seven (7) calendar days from the date you sign
this Agreement in which to withdraw or revoke your acceptance (the "Revocation
Period"). If you choose to revoke your acceptance, you must do so in writing,
and the written notice must be received before the end of the first regular
business day following the Revocation Period by Katie Zingg, Director of Human
Resources, in an envelope marked "Personal and Confidential" at Third Wave
Technologies, Inc., 502 South Rosa Road, Madison, WI 53719. In the event you
take any steps to revoke your acceptance during the revocation period, this
Agreement shall be null and void.

            c.    TWT ENCOURAGES YOU TO REVIEW THIS DOCUMENT WITH AN ATTORNEY
PRIOR TO SIGNING IT.

      11.   MISCELLANEOUS. Should you accept this Agreement, its terms will be
governed by the following:

            a.    Except as provided in Paragraph 5 above, this document
constitutes the complete understanding between you and TWT concerning all
matters affecting your employment with TWT and the termination of that
employment. If you accept this Agreement, it supersedes all prior agreements,
understandings and practices concerning such matters, including, but not limited
to, any TWT personnel documents, handbooks, or policies and any prior customs or
practices of TWT except for your Employment Agreement.

            b.    Nothing in the releases contained in this Agreement should be
construed as an admission of wrongdoing or liability on the part of either TWT
or you. Both of us deny any liability to the other.

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October 20, 2004
Page 7 of 8

            c.    This Agreement and its interpretation will be governed and
construed in accordance with the laws of Wisconsin and will be binding upon the
parties to the Agreement and their respective successors and assigns.

            d.    Each provision of this Agreement is severable and intended to
be construed independently. The unenforceability of any provision shall not
affect the validity or enforceability of any other provision.

You represent and warrant that you have read and understand all terms of this
Agreement, executed knowingly and voluntarily with full knowledge of its
significance and with the intent to be bound by it. You represent and warrant
that you have been or have the opportunity to be represented by legal counsel of
your choice in connection with this agreement who has explained it and advised
that it is a legally binding contract. This Agreement contains the entire
Agreement between TWT and you and the terms of the Agreement cannot be modified
except in writing signed by both TWT and you.

                                      Very truly yours,

                                      THIRD WAVE TECHNOLOGIES

                                      By: /s/ John J. Puisis
                                          ---------------------------------
                                          John J. Puisis
                                          Chief Executive Officer

I agree with and accept the terms contained in this document and agree to be
bound by them.

Dated this 20th day of October, 2004.  /s/ David M. Nuti
                                       -------------------------------------
                                          Dave Nuti

<PAGE>

                                   Exhibit A

                                   DAVE NUTI

                             Number of options for
                                which vesting is
                                accelerated  to
                               October 31, 2004 =
                                     10,000

<TABLE>
<CAPTION>
                                                      OPTIONS UNDER
                                                       ACCELERATED
                                    # OPTIONS VESTED     VESTING
GRANT DATE  # OPTIONS  GRANT PRICE    ON 10/31/04      GRANT DATE   # OPTIONS  GRANT PRICE
<S>         <C>        <C>          <C>               <C>            <C>        <C>
 4/22/2002    20,000    $   4.10         10,000                                   $  4.10
 10/8/2002    20,000    $   1.40         10,000         10/8/2002     10,000      $  1.40
  1/3/2003    40,000    $   2.64         10,000                                   $  2.64
 4/28/2003    50,000    $   3.97         12,500                                   $  3.97
 7/17/2003   120,000    $   4.00         30,000
 2/24/2004    16,133    $   3.37              0                **         **           **
             -------    --------         ------         ---------     ------      -------
     TOTAL   266,133                     72,500                       10,000
</TABLE>
<PAGE>

October 21, 2004

David Nuti
5764 Auburn Drive
Madison, WI  53711

Re:  Amendment to Separation Letter Agreement

Dear Dave:

In consideration for your assistance to Third Wave Technologies in your
transition through December 2004, you will receive 20,000 additional stock
options at a $2.64 strike price, to vest on October 31, 2004 with a 2-year
exercise period. Such assistance will include occasional phone conversations,
not to exceed ten hours per month, that do not impede any other employment.

Sincerely,

/s/ John Puisis
----------------------------------
John Puisis
Chief Executive Officer

Accepted and Agreed:

/s/ David Nuti
---------------------------------
David Nuti<PAGE>
                                                                   EXHIBIT 10.22

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT ("Agreement") is entered into as of the 14th
day of March 2005, by and between Kevin T. Conroy ("Employee") and THIRD WAVE
TECHNOLOGIES, INC., a Delaware corporation (the "Company").

         WHEREAS, the Company desires to employ Employee as its Vice President,
General Counsel & Secretary, and Employee desires to accept such employment
pursuant to the terms and conditions set forth in this Agreement.

         NOW, THEREFORE, in consideration of the mutual covenants and conditions
hereinafter set forth, and other good and valuable consideration, receipt of
which is hereby acknowledged, the parties agree as follows:

         1. Employment. The Company hereby agrees to employ Employee as its Vice
President, General Counsel & Secretary and Employee hereby agrees to serve the
Company in such position, all subject to the terms and provisions of this
Agreement. Employee agrees (a) to devote his full-time professional efforts,
attention and energies to the business of the Company, and (b) to perform such
reasonable responsibilities and duties customarily attendant to the position of
Vice President, General Counsel & Secretary. Nothing in this Agreement will
prevent Employee from engaging in additional activities in connection with (i)
serving on corporate, civic and charitable boards and committees, (ii)
delivering lectures and fulfilling speaking engagements, (iii) managing personal
investments; and (iv) engaging in charitable activities and community affairs.

         2. Term of Employment. Employee's employment will continue until
terminated as provided in Section 6 below (the "Employment Term").

         3. Compensation. During the Employment Term, Employee shall receive the
following compensation.

                  3.1 Base Salary. Employee's annual base salary on the date of
         this Agreement is $225,000.00, payable in accordance with the normal
         payroll practices of the Company ("Base Salary"). Employee's Base
         Salary will be subject to annual review by the Compensation Committee
         and the Board of Directors of the Company. During the Employment Term,
         on each anniversary date of this Agreement, the Company shall review
         the Base Salary amount to determine any increases. In no event shall
         the Base Salary be less than the Base Salary amount for the immediately
         preceding twelve (12) month period other than as permitted in Section
         6.1(c) hereunder.

                  3.2 Annual Bonus Compensation. Employee shall be eligible to
         receive an annual cash bonus as determined by the Company's CEO and
         approved by the Compensation Committee in its sole discretion each
         calendar year. Employee's target annual bonus percentage that he is
         eligible to earn for each calendar year shall be forty percent (40%) of
         his Base Salary as of January 1 of the applicable new calendar year.
         Any such bonus shall be based upon the compensation principles of the
         Company in effect at the time the CEO determines and the Compensation
         Committee approves the amount of any bonus to be awarded, and except as
         set forth in Section 7 hereof, Employee shall not be entitled to
         receive an annual bonus for any

<PAGE>

         calendar year (including the bonus referenced above) unless he remains
         employed with the Company through December 31 of the applicable
         calendar year; provided, however, that if Employee is terminated with
         Cause or resigns without Good Reason, no bonus will be due.

                  3.3 Long Term Incentive Plan. Employee shall participate in
         the Company's Long Term Incentive Plans ("LTIP") and shall be deemed a
         "Tier 1 Employee" thereunder. Employee's benefits under the LTIP shall
         be determined pursuant to the terms of the LTIP, and such benefits may
         not be terminated or diminished without the written consent of the
         Employee.

                  3.4 Equity Incentives and Other Long Term Compensation. The
         Company upon the approval of the Compensation Committee, may grant
         Employee from time to time options to purchase shares of the Company's
         common stock, or other form of equity, both as a reward for past
         individual and corporate performance, and as an incentive for future
         performance. Such options, if awarded, will be pursuant to the
         Company's then current stock option plan. All options granted to
         Employee shall vest in equal installments over the four-year period
         commencing with the date of grant of such options, subject to the
         acceleration of vesting (i) as described in Section 7.1(d) and 7.2(b)
         hereof and (ii) as may be set forth in the option grant agreements
         issued by the Company, as amended, provided, that in the event of a
         conflict between any option grant agreement and this Agreement, this
         Agreement shall control.

         4. Benefits.

                  4.1 Benefits. Employee will be entitled to participate in the
         sick leave, insurance (including medical, life and long-term
         disability), profit-sharing, retirement, and other benefit programs
         that are generally provided to employees of the Company similarly
         situated, all in accordance with the rules and policies of the Company
         as to such matters and the plans established therefore.

                  4.2 Vacation and Personal Time. The Company will provide
         Employee with four (4) weeks of paid vacation each calendar year
         Employee is employed by the Company, in accordance with Company policy.
         The foregoing vacation days shall be in addition to standard paid
         holiday days for employees of the Company.

                  4.3 Indemnification. To the fullest extent permitted by
         applicable law and as provided for in the Company's articles of
         incorporation and bylaws in effect as of the date of this Agreement,
         the Company will, during and after termination of employment, indemnify
         Employee (including providing advancement of expenses) for any
         judgments, fines, amounts paid in settlement and reasonable expenses,
         including attorneys' fees, incurred by Employee in connection with the
         defense of any lawsuit or other claim or investigation to which
         Employee is made, or threatened to be made, a party or witness by
         reason of being or having been an officer, director or employee of the
         Company or any of its subsidiaries or affiliates as defined under the
         Securities and Exchange Act of 1934 ("Affiliates") or a fiduciary of
         any of their benefit plans.

                  4.4 Liability Insurance. Both during and after termination
         (for any reason) of Employee's employment, the Company shall cause
         Employee to be covered under a directors and officers' liability
         insurance policy for his acts (or non-acts) as an officer or director
         of the Company or any of its Affiliates. Such policy shall be
         maintained by the Company, at its expense, in an amount and on terms
         (including the time period of coverage after the Employee's

                                       2
<PAGE>

         employment terminates) at least as favorable to the Employee as
         policies covering the Company's Board of Directors.

         5. Business Expenses. Upon submission of a satisfactory accounting by
Employee, consistent with current policies of the Company, the Company will
reimburse Employee for any out-of-pocket expenses reasonably incurred by
Employee in the furtherance of the business of the Company.

         6. Termination.

                  6.1 By Employee.

                           (a) Without Good Reason. Employee may terminate his
                  employment pursuant to this Agreement at any time without Good
                  Reason (as defined below) with at least ten (10) business
                  days' written notice (the "Employee Notice Period") to the
                  Company. Upon termination by Employee under this section, the
                  Company may, in its sole discretion and at any time during the
                  Employee Notice Period, suspend Employee's duties for the
                  remainder of the Employee Notice Period, as long as the
                  Company continues to pay compensation to Employee, including
                  benefits, throughout the Employee Notice Period.

                           (b) With Good Reason. Employee may terminate his
                  employment pursuant to this Agreement with Good Reason (as
                  defined below) at any time within ninety (90) days after the
                  occurrence of an event constituting Good Reason.

                           (c) Good Reason. "Good Reason" shall mean any of the
                  following: (i) Employee's Base Salary is reduced in a manner
                  that is not applied proportionately to other senior executive
                  officers of the Company, provided any such reduction shall not
                  exceed thirty percent (30%) of Employee's then current Base
                  Salary; (ii) Employee's duties, authority or responsibilities
                  are materially reduced or are materially inconsistent with the
                  scope of authority, duties and responsibilities of Employee's
                  position; (iii) the occurrence of a material breach by the
                  Company of any of its obligations to Employee under this
                  Agreement or (iv) the Company materially violates or continues
                  to materially violate any law or regulation contrary to the
                  written advice of Employee and the Company's outside counsel
                  to both the CEO and the Board of Directors and the Company
                  fails to rectify such violation within thirty (30) days of the
                  written advice that such violations are taking place.

                  6.2. By the Company.

                           (a) With Cause. The Company may terminate Employee's
                  employment pursuant to this Agreement for Cause, as defined
                  below, immediately upon written notice to Employee.

                           (b) Cause. "Cause" shall mean any of the following:

                                    (i) any willful refusal to perform essential
                                    job duties which continues for more than ten
                                    (10) days after notice from the Company;

                                       3
<PAGE>

                                    (ii) any intentional act of fraud or
                                    embezzlement by the Employee in connection
                                    with the Employee's duties or committed in
                                    the course of Employee's employment;

                                    (iii) any gross negligence or willful
                                    misconduct of the Employee with regard to
                                    the Company or any of its subsidiaries
                                    resulting in a material economic loss to the
                                    Company;

                                    (iv) the Participant is convicted of a
                                    felony;

                                    (v) the Participant is convicted of a
                                    misdemeanor the circumstances of which
                                    involve fraud, dishonesty or moral turpitude
                                    and which is substantially related to the
                                    circumstances of Participant's job with the
                                    Company;

                                    (iv) any willful and material violation by
                                    the Employee of any statutory or common law
                                    duty of loyalty to the Company or any of its
                                    subsidiaries resulting in a material
                                    economic loss; or

                                    (v) any material breach by the Employee of
                                    this Agreement or any of the Agreements
                                    referenced in Section 8 of this Agreement.

                           (c) Without Cause. Subject to Section 7.1, the
                  Company may terminate Employee's employment pursuant to this
                  Agreement without Cause upon at least thirty days' written
                  notice ("Company Notice Period") to Employee. Upon any
                  termination by the Company under this Section 6.2(c), the
                  Company may, in its sole discretion and at any time during the
                  Company Notice Period, suspend Employee's duties for the
                  remainder of the Company Notice Period, as long as the Company
                  continues to pay compensation to Employee, including benefits,
                  throughout the Company Notice Period.

                  6.3 Death or Disability. Notwithstanding Section 2, in the
         event of the death or Disability (defined herein) of Employee during
         the Employment Term, Employee's employment and this Agreement shall
         immediately and automatically terminate and the Company shall pay
         Employee (or in the case of death, Employee's designated beneficiary)
         Base Salary, accrued, unpaid bonuses, in each case up to the date of
         termination. Neither Employee, his beneficiary nor estate shall be
         entitled to any severance benefits set forth in Section 7 if terminated
         pursuant to this section. For purposes of this Agreement, "Disability"
         shall mean any physical incapacity or mental incompetence as a result
         of which Employee is unable to perform the essential functions of his
         job for an aggregate of more than six (6) months during any
         twelve-month period. Employee acknowledges and agrees that given the
         nature of Employee's position with the Company it would cause the
         Company to suffer an undue hardship if required to retain Employee
         beyond the six (6) month period if Employee remains unable to perform
         the essential functions of his job, with or without a reasonable
         accommodation.

                  6.4 Survival. The agreement described in Section 8 hereof and
         attached hereto as Schedule A shall survive the termination of this
         Agreement.

                                       4
<PAGE>

         7. Severance and Other Rights Relating to Termination and Change of
Control.

                  7.1 Termination of Agreement Pursuant to Section 6.1(b) or
         6.2(c). If the Employee terminates his employment for Good Reason
         pursuant to Section 6.1(b), or the Company terminates Employee's
         employment without Cause pursuant to Section 6.2(c), subject to the
         conditions described in Section 7.3 below, the Company will provide
         Employee the following payments and other benefits:

                           (a) The Company shall immediately pay to Employee a
                  lump-sum amount equal to the sum of (i) twelve (12) months of
                  Employee's then current Base Salary, (ii) any accrued but
                  unpaid Base Salary as of the termination date; and (iii) shall
                  pay Employee any accrued but unpaid bonus as of the
                  termination date, on the same terms and at the same times as
                  would have applied had Employee's employment not terminated;
                  provided, that, if such termination occurs on or within the
                  one year period following a Change of Control (as defined in
                  Section 7.2(a)), the Company shall also pay to Employee a pro
                  rata portion of his target bonus.

                           (b) If Employee elects COBRA coverage for health
                  and/or dental insurance in a timely manner, the Company shall
                  pay the monthly premium payments for such timely elected
                  coverage when each premium is due until the earlier of: (i)
                  twelve months from the date of termination; (ii) the date
                  Employee obtains new employment which offers health and/or
                  dental insurance that is reasonably comparable to that offered
                  by the Company; or (iii) the date COBRA continuation coverage
                  would otherwise terminate in accordance with the provisions of
                  COBRA. Thereafter, health and dental insurance coverage shall
                  be continued only to the extent required by COBRA and only to
                  the extent Employee timely pays the premium payments himself.

                           (c) The Company shall provide Employee an
                  outplacement consulting package up to a maximum value of Ten
                  Thousand Dollars ($10,000), which shall be selected at the
                  sole discretion of the Employee. Any payments made for such
                  outplacement consulting shall be made by the Company directly
                  to the consulting company.

                           (d) Employee will receive any awards under the LTIP
                  that are earned (as defined in any LTIP document), whether
                  vested or unvested, as of the termination date, on terms and
                  at the times set forth in the LTIP.

                           (e) Fifty percent (50%) percent of stock options
                  granted to Employee shall immediately become fully vested and
                  exercisable upon such termination or resignation. Executive
                  will be entitled to exercise such stock options in accordance
                  with Section 7.7.

                  7.2 Change of Control. The Board of Directors of the Company
         has determined that it is in the best interests of the Company and its
         stockholders to assure that the Company will have the continued
         dedication of the Employee, notwithstanding the possibility, threat or
         occurrence of a Change of Control (defined in Section 7.2(a) below).
         The Board believes it is imperative to diminish the inevitable
         distraction of the Employee by virtue of the personal uncertainties and
         risks created by a pending or threatened Change of Control and to
         encourage the

                                       5
<PAGE>

         Employee's full attention and dedication to the Company currently and
         in the event of any threatened or pending Change of Control, and to
         provide the Employee with compensation and benefits arrangements upon a
         Change of Control which ensure that the compensation and benefits
         expectations of the Employee will be satisfied and which are
         competitive with those of other similarly-situated companies.
         Therefore, in order to accomplish these objectives, the Board has
         caused the Company to include the provisions set forth in this Section
         7.2.

                           (a) Change of Control. "Change of Control" shall
                  mean, and shall be deemed to have occurred if, on or after the
                  date of this Agreement, (i) any "person" (as such term is used
                  in Sections 13(d) and 14(d) of the Securities Exchange Act of
                  1934, as amended) or group acting in concert, other than a
                  trustee or other fiduciary holding securities under an
                  employee benefit plan of the Company acting in such capacity
                  or a corporation owned directly or indirectly by the
                  stockholders of the Company in substantially the same
                  proportions as their ownership of stock of the Company,
                  becomes the "beneficial owner" (as defined in Rule 13d-3 under
                  said Act), directly or indirectly, of securities of the
                  Company representing more than 50% of the total voting power
                  represented by the Company's then outstanding Voting
                  Securities, (ii) during any period of two consecutive years,
                  individuals who at the beginning of such period constitute the
                  Board of Directors of the Company and any new director whose
                  election by the Board of Directors or nomination for election
                  by the Company's stockholders was approved by a vote of at
                  least two thirds (2/3) of the directors then still in office
                  who either were directors at the beginning of the period or
                  whose election or nomination for election was previously so
                  approved, cease for any reason to constitute a majority
                  thereof, (iii) the stockholders of the Company approve a
                  merger or consolidation of the Company with any other
                  corporation other than a merger or consolidation which would
                  result in the Voting Securities of the Company outstanding
                  immediately prior thereto continuing to represent (either by
                  remaining outstanding or by being converted into Voting
                  Securities of the surviving entity) at least 80% of the total
                  voting power represented by the Voting Securities of the
                  Company or such surviving entity outstanding immediately after
                  such merger or consolidation, or (iv) the stockholders of the
                  Company approve a plan of complete liquidation of the Company
                  or an agreement for the sale or disposition by the Company of
                  (in one transaction or a series of related transactions) all
                  or substantially all of the Company's assets.

                           (b) Acceleration of Vesting of Stock Options. Vesting
                  of stock options granted to Employee shall be accelerated upon
                  any Change of Control to the extent set forth in the
                  applicable stock option agreement(s) between the Company and
                  Employee. Employee will be entitled to exercise such stock
                  options in accordance with such option agreements.

                           (c) LTIP Awards. Any awards granted to Employee under
                  the LTIP as of the Change of Control shall be treated as
                  described in the LTIP.

                           (d) If, within six (6) months before or after the
                  effective date of a Change of Control, the Employee terminates
                  his employment for Good Reason pursuant to Section 6.1(b) or
                  the Company terminates Employee's employment without Cause
                  pursuant to Section 6.2(c), subject to the conditions
                  described in Section 7.3 below, the termination shall be
                  treated for purposes of Section 7.2(b) and (c) as if it
                  occurred on the effective date of the Change of Control.

                                       6
<PAGE>

                           (e) Payments and benefits that trigger Sections 280G
                  and 4999 of the Internal Revenue Code of 1986, as amended,
                  will be reduced to the extent necessary so that no excise tax
                  would be imposed if doing so would result in the employee
                  retaining a larger after-tax amount, taking into account the
                  income, excise and employment taxes imposed on the payments
                  and benefits.

                  7.3 Conditions Precedent to Payment of Severance. The
         Company's obligations to Employee described in Sections 7.1 and 7.2 are
         contingent on Employee's delivery to the Company of his signed waiver
         and release, in the form attached hereto as Exhibit 7.3, of all claims
         he may have against the Company up to the date of the termination of
         his employment with the Company, and (if applicable) his not revoking
         such release. Moreover, the Employee's rights to receive payments and
         benefits pursuant to Sections 7.1 and 7.2 are conditioned on the
         Employee's ongoing compliance with his obligations as described in
         Section 8 hereof. Any cessation by the Company of any such payments and
         benefits shall be in addition to, and not in lieu of, any and all other
         remedies available to the Company for Employee's breach of his
         obligations described in Section 8 hereof.

                  7.4 No Severance Benefits. Employee is not entitled to any
         severance benefits if this Agreement is terminated pursuant to Sections
         6.1(a) or 6.2(a) of this Agreement; provided however, Employee shall be
         entitled to (i) Base Salary prorated through the effective date of such
         termination; (ii) Bonuses for which the payment date occurs prior to
         the effective date of such termination; and (iii) medical coverage and
         other benefits required by law and plans (as provided in Section 7.6,
         below).
..
                  7.5 Benefits Required by Law and Plans; Vacation Time Pay. In
         the event of the termination of Employee's employment, Employee will be
         entitled to medical and other insurance coverage, if any, as is
         required by law and, to the extent not inconsistent with this
         Agreement, to receive such additional benefits as Employee may be
         entitled under the express terms of applicable benefit plans (other
         than bonus or severance plans) of the Company, its subsidiaries and
         Affiliates.

                  7.6 Exercise Period of Stock Options after Termination. Unless
         it would subject the employee to adverse tax consequences under Section
         885 of the recently enacted American Jobs Creation Act of 2004, Pub.
         Law No. 108-357, 118 Stat. 1418 (the Act), added ss. 409A to the
         Internal Revenue Code (Code), notwithstanding anything contained herein
         or in the option grant agreements to the contrary, in the event of
         Employee's termination after his first anniversary with the Company,
         Employee's vested stock options shall be open for exercise until the
         earlier of (i) two years from the date of termination or (ii) the
         latest date on which those options expire or are eligible to be
         exercised under the option grant agreements, determined without regard
         to such termination or resignation; provided further that such extended
         exercise period shall not apply in the event the Employee resigns
         without Good Reason or is terminated by the Company for Cause, in which
         case, the exercise periods shall continue to be governed by the terms
         of the option grant agreements.

                                       7
<PAGE>

         8. Restrictions.

                  8.1 The Confidential Information Agreement. Simultaneously
         with the execution of this Agreement, Employee will sign the Employee
         Agreement with Respect to Confidential Information, Invention
         Assignment and Arbitration attached hereto as Schedule A (the
         "Confidential Information Agreement").

                  8.2 Agreement Not to Compete. In consideration for all of the
         payments and benefits that may become due to Employee under this
         Agreement, Employee agrees that for a period of twelve (12) months
         after termination of his employment for any reason, he will not,
         directly or indirectly, without the Company's prior written consent,
         (a) perform for a Competing Entity in any Restricted Area any of the
         same services or substantially the same services that he performed for
         the Company; (b) in any Restricted Area, advise, assist, participate
         in, perform services for, or consult with a Competing Entity regarding
         the management, operations, business or financial strategy, marketing
         or sales functions or products of the Competing Entity (the activities
         in clauses (a) and (b) collectively are, the "Restricted Activities");
         or (c) solicit or divert the business of any Restricted Customer.
         Employee acknowledges that in his position with the Company he has had
         and will have access to knowledge of confidential information about all
         aspects of the Company that would be of significant value to the
         Company's competitors.

                  8.3 Additional Definitions.

                           (a) Customer. "Customer" means any individual or
                  entity for whom the Company has provided services or products
                  or made a proposal to perform services or provide products.

                           (b) Restricted Customer. "Restricted Customer" means
                  any Customer with whom/which Employee had contact on behalf of
                  the Company during the 12 months preceding the end, for
                  whatever reason, of his employment.

                           (c) Competing Entity. "Competing Entity" means any
                  business entity engaged in the development, design,
                  manufacture, marketing, distribution or sale of molecular
                  diagnostics.

                           (d) Restricted Area. "Restricted Area" means any
                  geographic location where if Employee were to perform any
                  Restricted Activities for a Competing Entity in such a
                  location, the effect of such performance would be competitive
                  to the Company.

                  8.4 Reasonable Restrictions on Competition Are Necessary.
         Employee acknowledges that reasonable restrictions on competition are
         necessary to protect the interests of the Company. Employee also
         acknowledges that he has certain skills necessary to the success of the
         Company, and that the Company has provided and will provide to him
         certain confidential information that it would not otherwise provide
         because he has agreed not to compete with the business of the Company
         as set forth in this Agreement.

                  8.5 Restrictions Against Solicitations. Employee further
         covenants and agrees that during Employee's employment by the Company
         and for a period of twelve months following the termination of his
         employment with the Company for any reason, he will not, except with
         the prior consent of the Company's Chief Executive Officer, directly or
         indirectly, solicit or hire, or encourage the solicitation or hiring
         of, any person who is an employee of the Company for any

                                       8
<PAGE>

         position as an employee, independent contractor, consultant or
         otherwise, provided that the foregoing shall not prevent Employee from
         serving as a reference.

                  8.6 Affiliates. For purposes of this Section 8, the term
         "Company" will be deemed to include the Company and its Affiliates.

                  8.7 Ability to Obtain Other Employment. Employee hereby
         represents that his experience and capabilities are such that in the
         event his employment with the Company is terminated, he will be able to
         obtain employment if he so chooses during the period of non-competition
         following the termination of employment described above without
         violating the terms of this Agreement, and that the enforcement of this
         Agreement by injunction, as described below, will not prevent him from
         becoming so employed.

                  8.8 Injunctive Relief. Employee understands and agrees that if
         he violates any provision of this Section 8, then in any suit that the
         Company may bring for that violation, an order may be made enjoining
         him from such violation, and an order to that effect may be made
         pending litigation or as a final determination of the litigation.
         Employee further agrees that the Company's application for an
         injunction will be without prejudice to any other right of action that
         may accrue to the Company by reason of the breach of this Section 8.

                  8.9 Section 8 Survives Termination. The provisions of this
         Section 8 will survive termination of this Agreement.

                  8.10 Condition of Payments. The provisions of this Section 8
         regarding the restrictions on Employee shall be conditioned on Company
         making the payments to Employee as contemplated by Section 7.1 above.
         If Employee is terminated due to a disability pursuant to Section 6.3
         or if Employee voluntarily resigns without Good Reason, in which case
         Employee will not be eligible to receive the severance payments set
         forth in Section 7.1, Employee shall not be bound by the agreement not
         to compete in Section 8.2. Employee, will, however, remain bound at all
         times by the Confidential Information Agreement and the restriction on
         solicitation in Section 8.5.

         9. Arbitration. Unless other arrangements are agreed to by Employee and
the Company, any disputes arising under or in connection with this Agreement,
other than a dispute in which the primary relief sought is an equitable remedy
such as an injunction, will be resolved by binding arbitration to be conducted
pursuant to the Agreement for Arbitration Procedure of Certain Employment
Disputes attached as Schedule B hereof.

         10. Assignments; Transfers; Effect of Merger. No rights or obligations
of the Company under this Agreement may be assigned or transferred by the
Company except that such rights or obligations may be assigned or transferred
pursuant to a merger or consolidation, or pursuant to the sale or transfer of
all or substantially all of the assets of the Company, provided that the
assignee or transferee is the successor to all or substantially all of the
assets of the Company. This Agreement will not be terminated by any merger,
consolidation or transfer of assets of the Company referred to above. In the
event of any such merger, consolidation or transfer of assets, the provisions of
this Agreement will be binding upon the surviving or resulting corporation or
the person or entity to which such assets are transferred. The Company agrees
that concurrently with any merger, consolidation or transfer of assets referred
to above, it will cause any successor or transferee unconditionally to assume,
either contractually or as a matter of law, all of the obligations of the
Company hereunder in a writing promptly delivered to

                                       9
<PAGE>

the Employee. This Agreement will inure to the benefit of, and be enforceable by
or against, Employee or Employee's personal or legal representatives, executors,
administrators, successors, heirs, distributees, designees and legatees. None of
Employee's rights or obligations under this Agreement may be assigned or
transferred by Employee other than Employee's rights to compensation and
benefits, which may be transferred only by will or operation of law. If Employee
should die while any amounts or benefits have been accrued by Employee but not
yet paid as of the date of Employee's death and which would be payable to
Employee hereunder had Employee continued to live, all such amounts and benefits
unless otherwise provided herein will be paid or provided in accordance with the
terms of this Agreement to such person or persons appointed in writing by
Employee to receive such amounts or, if no such person is so appointed, to
Employee's estate.

         11. No Set-off, No Mitigation Required. Except as expressly provided
otherwise in this Agreement, the obligation of the Company to make any payments
provided for hereunder and otherwise to perform its obligations hereunder will
not be affected by any set-off, counterclaim, recoupment, defense or other
claim, right or action which the Company may have against Employee or others. In
no event will Employee be obligated to seek other employment or take other
action by way of mitigation of the amounts payable to Employee under any of the
provisions of this Agreement, and such amounts will not be reduced (except as
otherwise specifically provided herein) whether or not Employee obtains other
employment.

         12. Taxes. The Company shall have the right to deduct from any payments
made pursuant to this Agreement any and all federal, state, and local taxes or
other amounts required by law to be withheld.

         13. Miscellaneous. No amendment, modification or waiver of any
provisions of this Agreement or consent to any departure thereof shall be
effective unless in writing signed by the party against whom it is sought to be
enforced. This Agreement contains the entire Agreement that exists between
Employee and the Company with respect to the subjects herein contained and
replaces and supercedes all prior agreements, oral or written, between the
Company and Employee with respect to the subjects herein contained. Nothing
herein shall affect any terms in the Confidential Information Agreement, the
Noncompetition Agreement, the LTIP, and any stock option plans or agreements
between Employee and the Company now and hereafter in effect from time to time.
If any provision of this Agreement is held for any reason to be unenforceable,
the remainder of this Agreement shall remain in full force and effect. Each
section is intended to be a severable and independent section within this
Agreement. The headings in this Agreement are intended solely for convenience of
reference and shall be given no effect in the construction or interpretation of
this Agreement. This Agreement is made in the State of Wisconsin and shall be
governed by and construed in accordance with the laws of said State. This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original but all of which together shall constitute one and the same
instrument. All notices and all other communications provided for in this
Agreement shall be in writing and shall be considered duly given upon personal
delivery, delivery by nationally reputable overnight courier, or on the third
business day after mailing from within the United States by first class
certified or registered mail, return receipt requested, postage prepaid, all
addressed to the address set forth below each party's signature. Any party may
change its address by furnishing notice of its new address to the other party in
writing in accordance herewith, except that any notice of change of address
shall be effective only upon receipt.

                                       10
<PAGE>

         The parties hereto have executed this Employment Agreement as of the
date first written above.

                                 /s/ Kevin T. Conroy
                                 ---------------------------------------------
                                 Kevin T. Conroy ("Employee")

                                 Notice Address:
                                 4059 N. Richland Ct.
                                 Shorewood, WI 53211

                                 THIRD WAVE TECHNOLOGIES, INC. ("Company")

                                 By:      /s/ John J. Puisis
                                          ------------------------------------
                                          John J. Puisis, President and CEO

                                 Notice Address:
                                 502 South Rosa Road
                                 Madison, Wisconsin 53719-1256
                                 Attn:  Chief Executive Officer

                                       11

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