Document:

Exhibit

Amendment No. 1 to Employment Agreement 
THIS AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT (this “Amendment”) is made and entered into as of September 24, 2016, by and between Hologic, Inc., a Delaware corporation (the “Company”), and Stephen P. MacMillan (the “Executive” and, together with the Company, the “Parties”). 
WHEREAS, the Company and Executive entered into an Amended and Restated Employment Agreement dated as of September 18, 2015 (the “Agreement”);
WHEREAS, the Parties desire to amend Section 3.3 of the Agreement to include the metric of net income, effective for fiscal 2017;
WHEREAS, the Parties desire to amend Section 3.6 of the Agreement to delete the housing allowance, effective for fiscal 2017; and 
WHEREAS, the Board of Directors of the Company has approved the amendment of the Agreement in the manner reflected herein.
NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the Parties, each intending to be legally bound, hereby agree as follows: 
1. Long-Term Incentive.   The existing Section 3.3 of the Agreement is hereby deleted and replaced in its entirety with the following, with effect for fiscal 2017:
3.3.   Long-Term Incentive.  Beginning with fiscal year 2016 and each fiscal year thereafter during the Term, the Executive shall receive an annual grant under the Company’s 2008 Amended and Restated Equity Incentive Plan (as it may be amended from time to time, the “Equity Plan”) (such grant, the “Annual Grant”).  The value of the Annual Grant, which shall be based on the closing price of the Company’s common stock on the date of issuance, shall be $7,250,000 for the initial grant made in fiscal 2016.  For each subsequent fiscal year, the value of the Annual Grant shall be adjusted from the prior year’s value as follows: (i) if the Company’s earnings per share (“EPS”) and net income both increase from the prior fiscal year, then the Annual Grant value shall be increased by a percentage equal to one half of the percentage increase in EPS or net income, whichever increase is lower; (ii) if the Company’s EPS and net income both decrease from the prior fiscal year, then the Annual Grant value shall be decreased by a percentage equal to the percentage decrease in EPS or net income, whichever decrease is greater; and (iii) if either EPS or net income decreases from the prior fiscal year, then the Annual Grant value shall be decreased by a percentage equal to that EPS or net income percentage decrease.  For the avoidance of doubt, by way of example  (a) if EPS increases 6.3% from the prior year and net income increases 4.2% from the prior year, then the Annual Grant value will increase 2.1% from the prior year’s Annual Grant value; (b) if EPS decreases 6.3% from the prior year and 

net income decreases 4.2% from the prior year, then the Annual Grant value will decrease 6.3% from the prior year’s Annual Grant value; and (c) if EPS increases 6.3% from the prior year and net income decreases 4.2% from the prior year, then the Annual Grant value will decrease 4.2% from the prior year’s Annual Grant value.  For purposes of this Section 3.3, EPS and net income shall be the same EPS and net income used for purposes of the STIP.  To the extent EPS or net income is not used for purposes of the STIP, EPS or net income, as applicable, hereunder shall mean non-GAAP EPS or net income as publicly reported by the Company. Such grants shall each be subject to all terms and conditions applicable to grants under the Equity Plan, shall be evidenced by grant agreements in the form customarily used for Equity Plan grants to other named executive officers of the Company and shall be subject to the performance, payout and vesting conditions previously established by the Committee, provided, however, that such awards shall immediately vest (subject in the case of the performance stock units to the achievement of established performance targets) upon Executive’s death or Disability in accordance with the governing award agreement. 
2. Business Expenses. The following sentence, which is the last sentence of Section 3.6 of the Agreement, is hereby deleted, with effect for fiscal 2017:
During the Initial Term, the Company shall provide the Executive with a housing allowance of $100,000 per year to cover housing allowances in the greater Boston area.
3. Defined Terms.  Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Agreement.
4. Counterparts. This Amendment may be executed in one or more facsimile, electronic or original counterparts, each of which shall be deemed an original and both of which together shall constitute the same instrument. 
5. Ratification. All terms and provisions of the Agreement not amended hereby, either expressly or by necessary implication, shall remain in full force and effect. From and after the date of this Amendment, all references to the term Agreement in this Amendment or the original Agreement shall include the terms contained in this Amendment. 

[Signature Page Follows] 

IN WITNESS WHEREOF, the Parties hereto have executed this Amendment effective as of September 24, 2016. 
 
	
		
	 
	 

	HOLOGIC, INC.

	 
	 

	 
	 

	By:
	/s/ Elaine S. Ullian

	 
	Elaine S. Ullian

	 
	Lead Independent Director

	 

	 

	/s/ Stephen P. MacMillan

	Stephen P. MacMillan

	Chairman, President and Chief Executive OfficerExhibit

CONFIDENTIAL TREATMENT REQUESTED: Certain portions of this document have been omitted pursuant to a request for confidential treatment and, where applicable, have been marked with an asterisk (“[***]”) to denote where omissions have been made. The confidential material has been filed separately with the Securities and Exchange Commission.

AMENDMENT NO. 1 TO
SUPPLY AGREEMENT
FOR PANTHER INSTRUMENT SYSTEM

This Amendment No. 1 (“Amendment No. 1”) is entered into effective as of June 1, 2011 (“Amendment Effective Date”) pursuant to and amending the “Supply Agreement for Panther Instrument” (the “Agreement”) between Gen-Probe Incorporated, a Delaware corporation (“Gen-Probe”), and STRATEC Biomedical Systems AG (“STRATEC”) (collectively, “Parties”).

RECITALS

STRATEC and Gen-Probe entered into a Supply Agreement for Panther Instrument System having an effective date of 22 November 2006 (“Agreement”),. 

The Parties now wish to amend the Agreement.

NOW, THEREFORE, in consideration of the mutual obligations in this Amendment No. 1, the Parties agree as follows:
TERMS

		
	1.
	The existing Third Sentence of Section 9.1 (“Product Warranty”) of the Agreement is hereby deleted and new Section 9.1(a) is added to the Agreement as follows:

If any Product under warranty is to be repaired at a Customer site or at a Gen-Probe facility, STRATEC shall provide the necessary repair parts to Gen-Probe at STRATEC’s cost (including the cost of shipping) and Gen-Probe shall provide the labor necessary to perform such repair.  STRATEC shall compensate Gen-Probe for the cost of labor for replacing a defective part under warranty at the flat rate of [***] or [***], at Gen-Probe’s election, per day per warranty repair service performed onsite at a customer or performed in-house at Gen-Probe’s premises per day (the “Flat Rate”).  For the avoidance of doubt, STRATEC only be obligated to cover (i) the costs of each specific defective part under warranty to be replaced and (ii) labor for such specific defective part at the Flat Rate.  Any additional cost shall be borne by Gen-Probe.  If multiple defective parts under warranty are replaced in a single day, the Flat Rate shall be paid for each such part.  If replacement of a defective part under warranty requires more than a single day, the Flat Rate shall be paid for each day of required service.

		
	2.
	Exhibit “C” to the Agreement (“Reliability Requirements, Panther Instrument”) is hereby modified as follows:  Table 1 in Section 3.4 (“Reliability Metrics”) at page 6 of Exhibit C is deleted and replaced with the new Table 1 which is attached to this Amendment No. 1 as Exhibit C-1.  

		
	3.
	All capitalized terms used but not defined in this Amendment No. 1 will have the respective meaning given to them in the Agreement.

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CONFIDENTIAL TREATMENT REQUESTED: Certain portions of this document have been omitted pursuant to a request for confidential treatment and, where applicable, have been marked with an asterisk (“[***]”) to denote where omissions have been made. The confidential material has been filed separately with the Securities and Exchange Commission.

		
	4.
	Except as expressly set forth in this Amendment No.1, all other terms and conditions of the Agreement shall continue in full force and effect. 

		
	5.
	Facsimile signatures are deemed equivalent to original signatures for purposes of this Amendment No. 1 and this Agreement may be signed in counterpart.

		
	6.
	This Amendment No. 1 is effective on the Amendment Effective Date.

IN WITNESS WHEREOF, the Parties have executed this Amendment No. 1 by their duly authorized representatives.

        

	
			
	Gen-Probe Incorporated
	 
	STRATEC Biomedical Systems AG

	 
	 
	 

	/s/ Brad Blake
	 
	/s/ Marcus Wolfinger

	Brad Blake
	 
	Marcus Wolfinger

	Vice President, Instrument Systems
	 
	CEO

	 
	 
	 

                

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CONFIDENTIAL TREATMENT REQUESTED: Certain portions of this document have been omitted pursuant to a request for confidential treatment and, where applicable, have been marked with an asterisk (“[***]”) to denote where omissions have been made. The confidential material has been filed separately with the Securities and Exchange Commission.

EXHIBIT C-1

Substitute Table 1 for Section 3.4 (“Reliability Metrics”) of Exhibit C, Supply Agreement

Table I: Reliability Metrics Correlated to Project Milestones
	
							
	Metric
	Target, Info only Prototype Unit Build Target
	Validation Unit Build Target
	Acceptance
Criteria for
Pre-
Production
Build Target (Requirement for
Clinical Trials)
	Acceptance Criteria for
For Initial
ex-US Launch Target

	Acceptance Criteria for production units built after Nov 30, 2011 and on or before March 31, 2012
	Acceptance Criteria for production units built after March 31, 2012

	Type of Testing
	[***]
	[***]
	[***]
	[***]
	[***]
	[***]

	Call Rate Prediction
Model1
RGT & RDT testing
	[***]
	[***]
	[***]
	[***]
	[***]
	[***]

	Call Rate From
Fielded Units2
	[***]
	[***]
	[***]
	[***]
	[***]
	[***]

	Instrument Efficiency
	[***]
	[***]
	[***]
	[***]
	[***]
	[***]

	MTBCI
Hours
	[***]
	[***]
	[***]
	[***]
	[***]
	[***]

1 Note: "Call Rate Prediction Model" better defines and helps predict if the units under test meet the Panther's PRO tag #UN-UR100: "Instrument will require no more than [***] unscheduled service visits per year of normal use" when released. This is a critical milestone in project to meet exUS and US launch Reliability requirements.

2 Note: "Call Rate From Fielded Units" also better defines the Panther PRO tag# UN-UR100. This is a critical post-launch milestone for the Project.  Refer to definition section 4.

CONFIDENTIAL

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