<SEC-DOCUMENT>0001193125-18-065447.txt : 20180301
<SEC-HEADER>0001193125-18-065447.hdr.sgml : 20180301
<ACCEPTANCE-DATETIME>20180301074033
ACCESSION NUMBER:		0001193125-18-065447
CONFORMED SUBMISSION TYPE:	DEFA14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20180301
DATE AS OF CHANGE:		20180301
EFFECTIVENESS DATE:		20180301

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HOLOGIC INC
		CENTRAL INDEX KEY:			0000859737
		STANDARD INDUSTRIAL CLASSIFICATION:	X-RAY APPARATUS & TUBES & RELATED IRRADIATION APPARATUS [3844]
		IRS NUMBER:				042902449
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		DEFA14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-36214
		FILM NUMBER:		18654734

	BUSINESS ADDRESS:	
		STREET 1:		250 CAMPUS DRIVE
		CITY:			MARLBOROUGH
		STATE:			MA
		ZIP:			01752
		BUSINESS PHONE:		5082632900

	MAIL ADDRESS:	
		STREET 1:		250 CAMPUS DRIVE
		CITY:			MARLBOROUGH
		STATE:			MA
		ZIP:			01752
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEFA14A
<SEQUENCE>1
<FILENAME>d544087ddefa14a.htm
<DESCRIPTION>DEFA14A
<TEXT>
<HTML><HEAD>
<TITLE>DEFA14A</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:14pt; font-family:Times New Roman" ALIGN="center"><B>UNITED STATES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:14pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Washington, D.C. 20549 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SCHEDULE 14A </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Proxy
Statement Pursuant to Section&nbsp;14(a) of the </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Securities Exchange Act of 1934 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Amendment No. &nbsp;&nbsp;&nbsp;&nbsp;) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Filed by the Registrant&nbsp;&nbsp;&#9746; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Filed by a Party
other than the Registrant&nbsp;&nbsp;&#9744; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Check the appropriate box: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top">Preliminary Proxy Statement </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top">Confidential, for Use of the Commission Only (as permitted by Rule <FONT STYLE="white-space:nowrap">14a-6(e)(2))</FONT> </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top">Definitive Proxy Statement </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9746;</TD>
<TD ALIGN="left" VALIGN="top">Definitive Additional Materials </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top">Soliciting Material Pursuant to <FONT STYLE="white-space:nowrap">&#167;240.14a-12</FONT> </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:24pt; font-family:Times New Roman" ALIGN="center"><B>HOLOGIC, INC. </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Name of
Registrant as Specified In Its Charter) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Name of Person(s)
Filing Proxy Statement, if other than the Registrant) </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Payment of Filing Fee (Check the appropriate box): </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9746;</TD>
<TD ALIGN="left" VALIGN="top">No fee required. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top">Fee computed on table below per Exchange Act Rules <FONT STYLE="white-space:nowrap">14a-6(i)(l)</FONT> and <FONT STYLE="white-space:nowrap">0-11.</FONT> </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(1)</TD>
<TD ALIGN="left" VALIGN="top">Title of each class of securities to which transaction applies: </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(2)</TD>
<TD ALIGN="left" VALIGN="top">Aggregate number of securities to which transaction applies: </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(3)</TD>
<TD ALIGN="left" VALIGN="top">Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule <FONT STYLE="white-space:nowrap">0-11</FONT> (Set forth the amount on which the filing fee is calculated and state how it
was determined): </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(4)</TD>
<TD ALIGN="left" VALIGN="top">Proposed maximum aggregate value of transaction: </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(5)</TD>
<TD ALIGN="left" VALIGN="top">Total fee paid: </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top">Fee paid previously with preliminary materials. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top">Check box if any part of the fee is offset as provided by Exchange Act Rule <FONT STYLE="white-space:nowrap">0-11(a)(2)</FONT> and identify the filing for which the offsetting fee was paid previously. Identify the
previous filing by registration statement number, or the Form or Schedule and the date of its filing. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(1)</TD>
<TD ALIGN="left" VALIGN="top">Amount Previously Paid: </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(2)</TD>
<TD ALIGN="left" VALIGN="top">Form, Schedule or Registration Statement No.: </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(3)</TD>
<TD ALIGN="left" VALIGN="top">Filing Party: </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(4)</TD>
<TD ALIGN="left" VALIGN="top">Date Filed: </TD></TR></TABLE>

<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">March&nbsp;1, 2018 </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">To Our Stockholders: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On March&nbsp;14, 2018, we will be
holding our 2018 Annual Meeting of Stockholders (the &#147;Annual Meeting&#148;). A number of proposals will be presented for your consideration and approval at the Annual Meeting, all of which are described in detail in our proxy statement, which
has been made available to you and filed with the U.S. Securities and Exchange Commission (the &#147;SEC&#148;). We encourage you to read the proxy statement in its entirety for detailed information regarding all of the proposals. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Institutional Shareholder Services Inc. (&#147;ISS&#148;), a proxy advisory firm, has issued a recommendation that stockholders vote <U>against</U>
ratification of our named executive officers&#146; compensation, or <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">&#147;say-on-pay&#148;</FONT></FONT> (Proposal 2), a recommendation that we believe is not warranted. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Special Retention Equity Grant. </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">ISS takes issue with the
special retention equity grant made to our CEO, Stephen P. MacMillan, in November of 2017, which they say is linked to performance goals that lack rigor. In their analysis, ISS overlooks Mr.&nbsp;MacMillan&#146;s value to the Company and seems to
assess the award and related performance goals in a vacuum without meaningful context and perspective. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Notably, another prominent proxy advisory firm
considered the special retention equity grant in its analysis, noted the thorough explanation in the proxy statement as to why the grant was necessary, and recommended a vote FOR the Company&#146;s <FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap">say-on-pay</FONT></FONT> proposal. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Background of the grant</U></B>. The appointment of Mr.&nbsp;MacMillan as our CEO in
fiscal 2014 is a critical part of our success. His leadership and vision are at the core of our significantly improved performance, and we believe it is his continued commitment to driving sustainable long-term growth and investing in our people and
products that will help secure our success as we move into the future. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In light of his long track record of success, other larger medical device
companies have expressed interest over time in hiring Mr.&nbsp;MacMillan to serve as Chief Executive Officer. In October 2017, Mr.&nbsp;MacMillan received such an offer from a large medical device company. The independent members of the
Company&#146;s Board of Directors considered the potential for disruption to Hologic and its business as well as the impact on stockholder value should Mr.&nbsp;MacMillan leave, and determined that it was in the best interests of Hologic and its
stockholders to retain him as Chairman, President and Chief Executive Officer. Accordingly, the independent members of the Board, after careful consideration and discussions with Mr.&nbsp;MacMillan and the Compensation Committee&#146;s compensation
consultant, awarded Mr.&nbsp;MacMillan the special retention equity grant, all of which is performance-based and on the same terms as the annual equity grants awarded to senior executives for fiscal 2018. Mr.&nbsp;MacMillan formally declined the
other more substantial offer, reaffirmed his commitment to Hologic, and remains as Hologic&#146;s Chairman, President and Chief Executive Officer. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Investor reaction to the grant</U></B>. Following disclosure of the special performance-based retention
equity grant, the Company reached out to ten of its largest stockholders, representing more than 50% of our outstanding shares, to discuss the grant. In addition, the Company had numerous conversations on the subject with stockholders and investment
analysts as part of its normal investor relations activities. Feedback from stockholders and investment analysts regarding the grant &#150; and most particularly, the retention of Mr.&nbsp;MacMillan &#150; has been overwhelmingly positive.
Stockholders recognize Mr.&nbsp;MacMillan&#146;s value to the Company and support the decision of the independent members of the Board to award the performance-based grant and retain Mr.&nbsp;MacMillan, and note the negative effect his departure
could have had on the Company and its valuation. As evidence of this, the day after we disclosed the special performance-based retention grant, our stock traded up approximately 3% on heavy volume, while the broader U.S.&nbsp;market was flat. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Grant structure</U></B>. Of the $30&nbsp;million special retention equity grant value: </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">$10&nbsp;million is in the form of performance stock units (&#147;PSUs&#148;) subject to return on invested capital (&#147;ROIC&#148;) metrics; </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">$10&nbsp;million is in the form of PSUs subject to relative total shareholder return metrics (&#147;relative TSR&#148;); </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">$10&nbsp;million is in the form of options. </TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">PSUs are subject to a three-year performance period and thus do
not vest for three years, if at all. Options vest in equal annual installments over four years. If the Company does not meet the minimum ROIC and relative TSR threshold targets for the PSUs, none of the PSUs granted to Mr.&nbsp;MacMillan as part of
this retention grant will vest. If the Company&#146;s share price does not exceed the exercise price of the options, they will have no value. Mr.&nbsp;MacMillan was afforded no special treatment with respect to the structure of the grants, including
performance goals, which are identical to those set for the fiscal 2018 annual grants awarded to senior executives. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Performance goals</U></B>. We
disagree with the assertion by ISS that the performance goals associated with Mr.&nbsp;MacMillan&#146;s special retention equity grant lack rigor and the concern that Mr.&nbsp;MacMillan will continue to receive annual equity grants during the
vesting period of the special award.&nbsp;Specifically, ISS notes that the ROIC target was lowered for fiscal 2018 grants as compared to fiscal 2017 grants, the relative TSR target is set &#147;only&#148; at median and the relative TSR portion of
the award may pay above target even if TSR is negative as there is no absolute component to the construct. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>ROIC</I>. With respect to the ROIC target,
context is important. The setting of executive compensation does not occur in a vacuum &#150; nor should it be assessed in one. Our Compensation Committee is quite thoughtful and deliberate in constructing compensation programs, including the
setting of performance goals. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">For fiscal 2017 grants, as ISS notes, the Committee raised the ROIC target 200 basis points from 12% to 14%, a very
aggressive goal. The Committee believed the increase was warranted given the Company&#146;s performance at the time and as well as future opportunities for efficiencies. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">For fiscal 2018 grants (including the special retention equity grant), as ISS also notes, the Committee decreased the ROIC target 100 basis points from 14% to
13%. Again, this decision was not made&nbsp;in a vacuum. During fiscal 2017, the Company divested its higher-margin blood screening business and acquired the lower-margin (but higher growth) medical aesthetics business,
</P>

<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
with an eye toward driving sustainable long-term growth. As a result, at the beginning of fiscal 2018 (when the FY2018-2020 target was set), the Company had a very different profile than it did
at the beginning of fiscal 2017 (when the FY2017-2019 target was set) &#150; all of which was considered by the Compensation Committee when setting the fiscal 2018 performance goals, as is appropriate.&nbsp;ISS makes no mention of these
transformative events.</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We also think it makes sense to take a step back and consider how far the Company has come since it began utilizing PSUs linked to
ROIC goals. When the Company introduced ROIC goals in fiscal 2014, threshold ROIC was 8.5%, target ROIC was 10%, and ROIC of 11% was required for maximum payout. For fiscal 2018, the <U>threshold</U> ROIC of 12% is higher than the <U>maximum</U>
payout trigger of 11% for fiscal 2014. This represents significant ROIC improvement in a short period of time. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Relative TSR</I>. With respect to
relative TSR generally, the Committee adopted this metric in fiscal 2017 with a view to continuing to employ balanced and diverse metrics appropriate to the Company.&nbsp;It appears we are being penalized for this effort. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In the relative TSR construct, setting target at median is a majority practice.&nbsp;The Committee may consider altering this in the future if our
shareholders express concern and if the Committee determines appropriate. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">With respect to our lack of an absolute component in our TSR construct, we note
that relative TSR is intended to be just that &#150; relative.&nbsp;If the Company&#146;s stock outperformed the other companies in its peer group over the three-year performance period, but the market declined for reasons completely unrelated to
the Company&#146;s business, we don&#146;t believe that executives should be punished. To do so seems short-sighted, and we believe our investors are with the Company for the long-term.&nbsp;Also, from what we understand, keeping relative TSR
relative, without an absolute component is the majority practice. Again, if investors have concerns with this construct, we are happy to discuss. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Continued annual grants</U></B>. ISS also expresses concern that Mr.&nbsp;MacMillan will continue to receive annual equity grants during the vesting
period of the special retention equity grant. Yes, he will. Mr.&nbsp;MacMillan is contractually entitled to annual equity grants per his employment agreement.&nbsp;The special retention equity grant does not change that.&nbsp;Even if this were not
the case, it is unclear what retentive value the special grant would have if it were merely in lieu of annual grants.</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">ISS notes with some concern that the
value of Mr.&nbsp;MacMillan&#146;s fiscal 2018 annual grant increased versus his fiscal 2017 annual grant. What they failed to note is that this increase, which is dictated by the terms of his employment agreement, is based on the 12% increase in
adjusted net income in fiscal 2017. As an aside, we note that in September 2016, Mr.&nbsp;MacMillan&#146;s employment agreement was amended to add adjusted net income as a check on adjusted EPS such that increases in his annual equity grant value
would be based on the lower growth of the two metrics, and decreases in his annual equity grant value would be based on the larger decline of the two metrics. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Ancillary items </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Perquisites</U></B>. ISS states
that the Company provided Mr.&nbsp;MacMillan with &#147;sizable perquisites that are not specifically enumerated relating to, among other things, a temporary housing allowance (which has since been discontinued), an automobile allowance, and
reimbursement of expenses </P>

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related to the company&#146;s annual salesforce reward trip.&#148; We note that the <FONT STYLE="white-space:nowrap">&#147;non-enumerated&#148;</FONT> perquisites totaled $61,290 and also
included a 401(k) match and insurance premiums. The housing allowance was $1,923; automobile allowance was $19,572; sales force reward trip value was $8,348; 401(k) match was $10,800; and insurance premiums were $18,775. We note that
Mr.&nbsp;MacMillan&#146;s total perquisites decreased in fiscal 2017 as compared to fiscal 2016 (and fiscal 2015). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>STIP individual
accomplishments</U></B>. ISS states that the proxy does not disclose the CEO&#146;s performance under the individual performance component or what accomplishments were included in his assessment. The proxy does disclose Mr.&nbsp;MacMillan&#146;s
individual performance objectives, which include strengthening the pipeline and international business and revenue growth, among other things. In the executive summary of the CD&amp;A, the very positive pipeline progress, as well as significant
international growth are discussed. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Conclusion </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">One
of the fundamental responsibilities of a Board of Directors is to act in the best interests of a company and its shareholders. In approving a special retention equity grant to Mr.&nbsp;MacMillan, our Board of Directors did just that. If
Mr.&nbsp;MacMillan were to have left the Company, shareholders very likely would have suffered a significant loss in their holdings. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr.&nbsp;MacMillan
has had a unique role in our turnaround, returning the business to growth and winning support of Carl Icahn and other activists.&nbsp;Not only did he personally recruit the Company&#146;s four Division Presidents and other senior executives, but he
is one of the 30 largest shareholders of the Company, when taking into account his vested but deferred equity.&nbsp;His interests are very much aligned with those of our shareholders, and we believe he is critical to the Company&#146;s long-term
success.&nbsp;The Board believes that the special retention equity grant to Mr.&nbsp;MacMillan was appropriate in light of the potential for business disruption and decrease in stockholder value were Mr.&nbsp;MacMillan to accept the offer of
employment elsewhere and leave the Company. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We ask that you vote<B><U> FOR</U></B> the Company&#146;s <FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap">say-on-pay</FONT></FONT> proposal (Proposal 2), and we thank you for your consideration and continued support. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Stockholders
can obtain the definitive proxy statement, and any amendments or supplements to the proxy statements and other documents filed by Hologic with the U.S. Securities and Exchange Commission (the &#147;SEC&#148;) for free at the Internet website
maintained by the SEC at www.sec.gov. Copies of the definitive proxy statement and any amendments and supplements to the proxy statement are also available for free at Hologic&#146;s website at<U>&nbsp;www.hologic.com</U>. In addition, stockholders
can obtain a copy of the definitive proxy statement, and any amendments and supplements to the definitive proxy statement, by contacting our Corporate Secretary at Hologic, 250 Campus Drive, Marlborough, MA 01752. Detailed information regarding the
names, affiliations and interests of individuals who are participants in the solicitation of proxies of Hologic&#146;s stockholders is available in the definitive proxy statement filed on Schedule 14A with the SEC on Friday, January&nbsp;26, 2018.
</I></P>
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