Document:

exv10w1

 

Exhibit 10.1

 

EXECUTIVE AGREEMENT

     THIS EXECUTIVE AGREEMENT (this “Agreement”) is made effective as of the 4th day of September,
2007, by and between Sourcefire, Inc., a Delaware corporation (the “Company”), and Douglas McNitt
(the “Executive”).

     WHEREAS, the Executive and the Company wish to memorialize the terms of the Executive’s
employment with the Company;

     WHEREAS, the Company anticipates that the Executive’s contribution to the growth and success
of the Company will be substantial;

     WHEREAS, the Company and the Executive desire to provide for certain arrangements in the event
that the Executive’s employment with the Company is terminated under certain circumstances; and

     WHEREAS, the Company and the Executive desire to enter into this Agreement on the terms and
conditions set forth below.

     NOW, THEREFORE, in consideration of the promises and the respective covenants and agreements
of the parties herein contained, and of the employment of the Executive by the Company, the parties
hereto, intending to be legally bound, do hereby agree as follows:

     1. Definitions. For purposes of this Agreement:

          (a) “Board” means the Board of Directors of the Company.

          (b) “Cause” shall mean the Executive’s (i) theft, fraud, material dishonesty or gross
negligence in the conduct of the Company’s business, (ii) continuing neglect of the Executive’s
duties and responsibilities that has a material adverse effect on the Company, (iii) engaging in
personal conduct that would constitute grounds for liability for sexual harassment or
discrimination (as proscribed by the U.S. Equal Employment Opportunity Commission Guidelines or any
other applicable state or local regulatory body), (iv) conviction of, or plea of guilty or nolo
contendere to, a felony (other than a violation of traffic or motor vehicle laws), or (v) a willful
and continued material breach by the Executive of this Agreement or the NDA that has a material
adverse effect on the Company; provided, however, that for purposes of this Agreement, any
purported termination of the Executive’s employment by the Company shall be presumed to be other
than for Cause, unless (A) the Company first provides written notice to the Executive that includes
a statement either that the Chief Executive Officer or that the Board of Directors has determined
that “Cause” exists, and a statement of the particulars of such conduct, and (B) the Executive has
been provided a period of at least thirty (30) days after receipt of the Company’s notice during
which to cure, rescind or otherwise remedy the actions, events, or circumstances described in the
Company’s notice to the extent they are based on Sections 1(b)(ii), (iii) or (v) above.

          (c) “Good Reason” shall mean (i) a decrease in the Executive’s base salary, (ii) a material
reduction or material adverse change in the Executive’s authority, duties, job responsibilities or
reporting structure, including, without limitation, the Executive ceasing to report directly to the
Chief Executive Officer, (iii) a geographic relocation of the Executive without the Executive’s
consent more than thirty (30) miles from the current location of the Executive’s office as of the
date hereof, or (iv) a willful and continued material breach by the Company of this Agreement or
the “Equity Compensation” section of the Offer Letter that has a material adverse effect on the
Executive; provided, however, that for purposes of this Agreement, any purported
termination of the Executive’s employment by the Executive shall be presumed to be other than for
Good Reason, unless the Executive first provides written notice to the Company within ninety (90)
days following the effective

 Page 1 of 7 

 

date of such event, and the Company has been provided a period of at least thirty (30) days
after receipt of the Executive’s notice during which to cure, rescind or otherwise remedy the
actions, events, or circumstances described in the Executive’s notice, and the Executive has
terminated his employment with the Company no later than one hundred twenty (120) days after the
date of the Executive’s Notice of Termination.

          (d) A “Change in Control” shall be deemed to have occurred upon (A) the direct or indirect
acquisition by any person or related group of persons (other than an acquisition from or by the
Company or by a Company-sponsored employee benefit plan or by a person that directly or indirectly
controls, is controlled by, or is under common control with, the Company) of beneficial ownership
(within the meaning of Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) of securities possessing more than fifty percent (50%) of the total combined
voting power of the Company’s outstanding securities pursuant to a tender or exchange offer made
directly to the Company’s stockholders which a majority of the Continuing Directors who are not
Affiliates or Associates of the offeror do not recommend such stockholders accept, or (B) a change
in the composition of the Board over a period of twelve (12) months or less such that a majority of
the Board members (rounded up to the next whole number) ceases, by reason of one or more contested
elections for Board membership, to be comprised of individuals who are Continuing Directors. As
used herein, “Continuing Directors” means members of the Board who either (i) have been Board
members continuously for a period of at least twelve (12) months or (ii) have been Board members
for less than twelve (12) months and were elected or nominated for election as Board members by at
least a majority of the Board members described in clause (i) who were still in office at the time
such election or nomination was approved by the Board. As used herein, “Affiliate” and “Associate”
shall have the respective meanings ascribed to such terms in Rule 12b-2 promulgated under the
Exchange Act.

          (e) A “Corporate Transaction” shall be deemed to have occurred upon the consummation of any of
the following: (i) a merger or consolidation in which the Company is not the surviving entity,
except for a transaction the principal purpose of which is to change the state in which the Company
is incorporated; (ii) the sale, transfer or other disposition of all or substantially all of the
assets of the Company; (iii) the complete liquidation or dissolution of the Company; (iv) any
reverse merger or series of related transactions culminating in a reverse merger (including, but
not limited to, a tender offer followed by a reverse merger) in which the Company is the surviving
entity but (A) the shares of Company Common Stock outstanding immediately prior to such merger are
converted or exchanged by virtue of the merger into other property, whether in the form of
securities, cash or otherwise, or (B) in which securities possessing more than forty percent (40%)
of the total combined voting power of the Company’s outstanding securities are transferred to a
person or persons different from those who held such securities immediately prior to such merger or
the initial transaction culminating in such merger; or (v) acquisition in a single or series of
related transactions by any person or related group of persons (other than the Company or by a
Company-sponsored employee benefit plan) of beneficial ownership (within the meaning of Rule 13d-3
of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined
voting power of the Company’s outstanding securities.

          (f) The “Date of Termination” with respect to any purported termination of the Executive’s
employment means the date specified as such in the Notice of Termination. In the case of
termination of the Executive’s employment by the Company for Cause, the Date of Termination shall
be a date not less than seven (7) days from the date the Notice of Termination is given by the
Company. In the case of termination of the Executive’s employment by the Company other than for
Cause or by the Executive for any reason, the Date of Termination shall be a date not less than
thirty (30) days from the date the Notice of Termination is given by the Company or the Executive,
as the case may be.

 Page 2 of 7 

 

          (g) “Notice of Termination” means a written notice of termination of employment by the
terminating party, which notice shall specify a Date of Termination and the particular facts and
circumstances of such termination, including the existence of Cause, Good Reason or Permanent
Disability.

          (h) “Offer Letter” means that certain letter agreement, dated as of August 10, 2007, by and
between the Company and the Executive.

          (i) “Permanent Disability” shall be deemed to exist upon the Executive’s inability, due to
physical or mental ill health, to perform the essential functions of his job, with a reasonable
accommodation, for a period in excess of one hundred twenty (120) consecutive days or in excess of
one hundred eighty (180) days in any consecutive twelve (12) month period. In the event of any
dispute concerning the Permanent Disability of the Executive, the Executive shall submit to a
physical and/or psychological examination by a licensed physician mutually satisfactory to the
Company and the Executive, the cost of such examination to be paid by the Company, and the
determination of such physician shall be determinative.

     2. Termination of Employment.

          (a) The Executive’s employment may be terminated at any time by the Company, with or without
Cause, by delivery of a Notice of Termination to the Executive. The Executive’s employment may be
terminated at any time by the Executive, with or without Good Reason, by delivery of a Notice of
Termination to the Company.

          (b) In the event the Company terminates the Executive’s employment without Cause, or in the
event the Executive terminates the Executive’s employment for Good Reason, then the Company shall,
subject to Section 2(g) hereof, (w) pay the Executive’s base salary through the date of such
termination (including all accrued and unpaid leave time), any earned but unpaid bonuses as of the
date of such termination (to the extent that such earned but unpaid bonuses have been approved by
the Board or any committee of the Board with appropriate authority), reimbursement of expenses, and
any other payments required by applicable law (collectively, the “Accrued Amounts”) within ten (10)
business days following the Date of Termination, (x) continue to pay to the Executive the
Executive’s base salary in effect immediately prior to the occurrence of the circumstance giving
rise to the Notice of Termination given in respect thereof through the date that is six (6) months
after the Date of Termination, (y) pay to the Executive, on a monthly basis ratably over a period
of six (6) months after the Date of Termination, an amount equal to fifty percent (50%) of the
maximum bonus or incentive compensation amount for which the Executive is eligible pursuant to any
bonus or incentive compensation plan, calculated based upon the bonus period in which the Date of
Termination falls and annualized to the extent that such bonus period does not reflect a twelve
(12) month period, and (z) continue to administer and pay for the Executive’s accident and health
insurance benefits (substantially similar to those which the Executive is receiving immediately
prior to the occurrence of the circumstance giving rise to the Notice of Termination) until the
date that is six (6) months after the Date of Termination.

          (c) If there is a Change in Control or Corporate Transaction of the Company (in either case, a
“Fundamental Event”) or there has been a public announcement of a Fundamental Event
(provided, however, that consummation of the Fundamental Event shall be a condition
precedent to the effectiveness of this provision) and at any time after it is announced until
within one (1) year after the consummation of the Fundamental Event (i) the Company terminates the
Executive’s employment without Cause, or (ii) the Executive terminates the Executive’s employment
for Good Reason, then the Company shall, subject to Section 2(g) hereof, (x) pay any and all
Accrued Amounts within ten (10) business days following the Date of Termination, (y) pay to the
Executive, in a lump sum in cash within ten (10) business days after the date on which the
Executive executes the general release described in Section 2(i) without revocation, an amount
equal to the sum of (A) the Executive’s base

 Page 3 of 7 

 

salary in effect immediately prior to the occurrence of the circumstance giving rise to the
Notice of Termination given in respect thereof and (B) the maximum bonus or incentive compensation
amount for which the Executive is eligible pursuant to any bonus or incentive compensation plan,
calculated based upon the bonus period in which the Date of Termination falls and annualized to the
extent that such bonus period does not reflect a twelve (12) month period, and (z) continue to
administer and pay for the Executive’s accident and health insurance benefits (substantially
similar to those which the Executive is receiving immediately prior to the occurrence of the
circumstance giving rise to the Notice of Termination) until the first anniversary of the Date of
Termination.

          (d) In the event of the death of the Executive, this Agreement shall terminate and shall be of
no further force or effect, the Executive shall be treated for purposes of this Agreement as if the
Executive had terminated his employment without Good Reason, and the Company shall have only those
obligations hereunder set forth in Section 2(f); provided, however, that the
Company shall pay any and all Accrued Amounts to the Executive’s estate; and, provided
further, that the death of the Executive after the Company’s receipt of a Notice of Termination
by the Executive for Good Reason shall not in any way affect any obligations of the Company
pursuant to Section 2(b) or Section 2(c) hereof which exist at the time of such death.

          (e) In the event of the Permanent Disability of the Executive, the Company may terminate the
Executive’s employment by delivery of a Notice of Termination to the Executive (or the Executive’s
personal or legal representatives, executors, heirs, distributees, devisees and legatees, as
applicable). Upon the effectiveness of such termination, this Agreement shall terminate and shall
be of no further force or effect, the Executive shall be treated for purposes of this Agreement as
if the Executive had terminated his employment without Good Reason, and the Company shall have only
those obligations hereunder set forth in Section 2(f); provided, however, that the
Permanent Disability of the Executive after the Company’s receipt of a Notice of Termination by the
Executive for Good Reason shall not in any way affect any obligations of the Company pursuant to
Section 2(b) or Section 2(c) hereof which exist at the time of such Permanent Disability.

          (f) In the event the Company terminates the Executive’s employment for Cause, or in the event
the Executive terminates the Executive’s employment without Good Reason, the Company shall pay to
the Executive any and all Accrued Amounts, and the Company shall not have any further liability or
obligation hereunder to the Executive; provided, however, that the termination of
the Executive’s employment for Cause or without Good Reason after the Company’s receipt of a Notice
of Termination shall not in any way affect any obligations of the Company pursuant to Section 2(b)
or Section 2(c) hereof which exist at the time of such termination.

          (g) Notwithstanding anything to the contrary in this Agreement, if any benefit or amount
payable to the Executive under this Agreement on account of the Executive’s termination of
employment constitutes a “deferral of compensation” within the meaning of United States Treasury
Regulation (“Treasury Regulation”) Section 1.409A-1(b) and after application of the exemptions
provided in Treasury Regulation Sections 1.409A-1(b)(4) and 1.409A-1(b)(9)) (“Deferred
Compensation”), the payment of such Deferred Compensation shall, except as otherwise provided in
this paragraph, commence when the Executive incurs a Separation from Service (as defined below).
However, if on the date of the Executive’s Separation from Service (as defined below), the
Executive is a “specified employee” within the meaning of Section 409A of the Internal Revenue Code
of 1986, as amended (the “Code”), any Deferred Compensation payable under this Agreement on account
of the Executive’s Separation from Service and within the first six (6) months following the
Executive’s Separation from Service, shall instead be paid in a lump sum on the first business day
of the seventh (7th) month following the Executive’s Separation from Service. Each payment of
Deferred Compensation shall be considered a separate payment for purposes of Treasury Regulation
Sections 1.409A-1(b)(4) and 1.409A-2(b)(2).  For purposes of this Agreement, “Separation from
Service” shall have the meaning set forth in Treasury Regulation Section 1.409A-1(h), such that the
Executive will

 Page 4 of 7 

 

be considered to have experienced a separation from service if the Company and the Executive
reasonably anticipate that the Executive shall perform no further services for the Company (whether
as an employee or an independent contractor) or that the level of bona fide services the Executive
will perform in the future (whether as an employee or an independent contractor) will permanently
decrease to no more than 49 percent of the average level of bona fide services performed by the
Executive (whether as an employee or independent contractor) over the immediately preceding
36-month period.

          (h) Upon termination of the Executive’s employment for any reason, the Executive shall be
entitled to elect to continue to receive health insurance benefits under COBRA for up to eighteen
(18) months, provided that such continuation of benefits shall be at the Executive’s expense except
to the extent that the Company is obligated to pay for such continuation of benefits pursuant to
Sections 2(b) or 2(c).

          (i) The obligation of the Company to pay any amount specified in Section 2(b)(x), (y) and (z)
or Section 2(c)(y) and (z) is conditioned upon the Executive’s execution of a full general release
in favor of the Company in substantially the form attached as Attachment I; provided,
however, that nothing in this Agreement shall impair the Executive’s rights to
indemnification under any indemnification agreement(s) between the Executive and the Company, any
rights to and claims for indemnification or as an insured under any directors and officers
liability insurance policy in connection with the Executive’s service as an officer, employee or
agent of the Company or any of its subsidiaries or affiliates, under their respective certificates
of incorporation and by-laws, or otherwise as provided by law.

     3. Successors; Binding Agreement. This Agreement and all rights of the Executive
hereunder shall inure to the benefit of and be enforceable by the Executive’s personal or legal
representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.
If the Executive should die while any amounts would still be payable to the Executive hereunder if
the Executive had continued to live, all such amounts, unless otherwise provided herein, shall be
paid in accordance with the terms of this Agreement to the Executive’s devisee, legatee, or other
designee or, if there be no such designee, to the Executive’s estate.

     4. Notice. For the purposes of this Agreement, notices, demands and all other
communications provided for in this Agreement shall be in writing and shall be deemed to have been
duly given when delivered by hand delivery or via reputable overnight delivery service, or (unless
otherwise specified) mailed by United States registered mail, return receipt requested, postage
prepaid, addressed, if to the Executive, to the Executive’s home address as it appears on the
records of the Company, and if to the Company, to the attention of the Chief Executive Officer at
the Company’s executive headquarters, or to such other address as either party may have furnished
to the other in writing in accordance herewith, except that notices of change of address shall be
effective only upon receipt.

     5. Prior Agreement. All prior agreements between the Company and the Executive with
respect to the subject matter hereof, other than the Offer Letter and the Indemnification
Agreement, the NDA and the Restricted Stock Agreements (each as defined in the Offer Letter), are
hereby superseded and terminated effective as of the date hereof and shall be without further force
or effect. This Agreement, the Offer Letter, the Indemnification Agreement, the NDA and the
Restricted Stock Agreements are intended to be, and shall be, a complete integration of all prior
agreements and discussions between the Company and the Executive with respect to the subject matter
hereof and thereof. It is a condition of the Executive’s employment with the Company that the
Executive executes this Agreement and the other agreements described in the Offer Letter.

 Page 5 of 7 

 

     6. Employment of Executive.

          (a) The Executive agrees to serve in an executive capacity and to undertake and perform the
duties and responsibilities described in the Company’s by-laws, as amended from time to time,
together with such other duties as may, from time to time, be assigned, altered or modified by the
Company’s Chief Executive Officer or the Board. The Executive shall report directly to the
Company’s Chief Executive Officer.

          (b) During the term hereof, the Executive shall devote his best efforts and full professional
time and attention to the business of the Company. Except with the prior written consent of the
Company’s Chief Executive Officer or the Board, the Executive shall not, during the term hereof,
undertake or engage in any other employment, occupation or business enterprise. Notwithstanding
the foregoing, the Executive may at any time (i) engage in charitable activities, (ii) serve on
corporate, advisory, civic or charitable boards or committees, (iii) manage personal or family
investments, or (iv) deliver lectures and teach at educational institutions, so long as such
activities do not adversely affect the Executive’s performance of his duties hereunder, and such
determination shall be made at the discretion of the Company’s Chief Executive Officer or the
Board.

          (c) Nothing in this Agreement shall be construed as constituting a commitment, guarantee,
agreement or understanding of any kind or nature that the Company shall continue to employ the
Executive, nor shall this Agreement affect in any way the right of the Company to terminate the
employment of the Executive at any time and for any reason. By the Executive’s execution of this
Agreement, the Executive acknowledges and agrees that the Executive’s employment is “at will.” No
change of the Executive’s duties as an employee of the Company shall result in, or be deemed to be,
a modification of any of the terms of this Agreement.

     7. Counsel Fees.

          (a) The Company shall reimburse the Executive for all reasonable legal fees and expenses
incurred by the Executive in seeking in good faith to obtain or enforce any benefit or right
provided by this Agreement in connection with (i) any tax and accounting matters arising from the
termination of the Executive’s employment hereunder, including but not limited to determinations
made under Section 2(g) hereof, or (ii) the Executive’s entitlement to payments pursuant to
Section 2(c). Undisputed reimbursement payments shall be made within thirty (30) days after
delivery of the Executive’s written request for payment, accompanied by such evidence of fees and
expenses incurred as the Company reasonably may require. In no event shall reimbursements be made
for fees or expenses incurred by the Executive after the second calendar year following the
calendar year in which the Executive incurs the expense.

          (b) The Company shall reimburse the Executive for all reasonable legal fees and expenses
incurred by the Executive (or the Executive’s personal or legal representatives, executors, heirs,
distributes, devisees and legatees, as applicable) in disputing in good faith any issue hereunder
relating to the termination of the Executive’s employment, in seeking in good faith to obtain or
enforce any benefit or right provided by this Agreement, or in connection with the review of
determinations made under Section 2(g), and any tax audit or proceeding to the extent attributable
to the potential application of section 4999 of the Code to any payment or benefit provided by the
Company to the Executive, provided that the Executive is the prevailing party in any final judgment
with respect to such dispute. Such reimbursement payments shall be made within thirty (30) days
after delivery of the Executive’s written request for payment following such final judgment,
accompanied by such evidence of fees and expenses incurred as the Company reasonably may require.

     8. No Mitigation. The Company agrees that, if the Executive’s employment is
terminated during the term of this Agreement, the Executive is not required to seek other
employment or to attempt in any way to reduce any amounts payable to the Executive by the Company.
Further, the

 Page 6 of 7 

 

amount of any payment provided hereunder shall not be reduced by any compensation earned by
the Executive.

     9. Miscellaneous. No provisions of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing signed by the
Executive and a duly authorized officer of the Company. No waiver by either party hereto at any
time of any breach by the other hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any prior or subsequent time. No agreements or
representations, oral or otherwise, express or implied, with respect to the subject matter hereof
have been made by either party which are not set forth expressly in this Agreement. The validity,
interpretation, construction and performance of this Agreement shall be governed by the laws of the
State of Maryland, without regard to provisions thereof relating to choice of law or conflicts of
law. Any legal suit, action or proceeding arising out of or relating to this Agreement or the
Offer Letter shall be commenced in a federal court in the District of Maryland or in a state court
with jurisdiction over Howard County, Maryland, and each party irrevocably submits to the exclusive
jurisdiction of and exclusive venue in any such court in any such suit, action or proceeding. This
Agreement may be executed in two or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. This Agreement may be
executed by facsimile signatures.

     10. Validity. The invalidity or unenforceability of any provision or provisions of
this Agreement shall not affect the validity or enforceability of any other provision of this
Agreement, which shall remain in full force and effect.

[Signatures appear on following page.]

 Page 7 of 7 

 

     IN WITNESS WHEREOF, the parties have executed this Executive Agreement on the date and year first
above written.

	 	 	 	 	 	 	 
	 	 	SOURCEFIRE, INC., a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By: 	/s/	E. Wayne Jackson III	 	 
	 

	 	 	 	 	 	 
	 

	 	 	E. Wayne Jackson III, Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE:	 	 
	 
	 	 /s/	Douglas  McNitt	 	 	 
	 	 	 	 	 
	 

	 	Douglas  McNitt
	 	 

 

 

ATTACHMENT I

FORM OF RELEASEexv10w2

 

Exhibit 10.2

Sourcefire, Inc.

August 10, 2007

Mr. Joseph Boyle

Re:      Separation Agreement

Dear Joe:

As discussed, this letter describes the separation and consulting agreement (the “Agreement”)
between you and Sourcefire, Inc. (the “Company”).

     1. Separation from Current Position. As we have mutually agreed, your last day of work with
the Company and your employment termination date will be September 4, 2007 (the “Separation Date”).

     2. Accrued Salary and Vacation. On the next regular payroll date following the Separation
Date, the Company will pay you all accrued salary and all accrued and unused vacation earned
through the Separation Date, subject to standard payroll deductions and withholdings. You will
receive these payments regardless of whether or not you sign this Agreement.

     3. Severance Benefits. Although the Company has no obligation to do so, if you execute and do
not revoke this Agreement, the Company will provide the severance benefits described below (the
“Severance Benefits”), provided that you are not in material breach of this Agreement or any other
written agreement you may have executed with the Company. These Severance Benefits will be in lieu
of any severance payment you would otherwise be entitled to under your offer letter agreement dated
April 21, 2006, which will be terminated in all respects as of the Separation Date.

          (a) Stock Options. Pursuant to the Company’s stock option plan (the “Plan”), your stock
option will be vested as to 44,257 shares of the Company’s common stock as of the Separation Date.
The Company hereby agrees to accelerate vesting of this option such that, as of the Separation
Date, you will be vested in an additional 21,167 shares of the Company’s common stock. Your rights
to exercise your option as to any vested shares will be as set forth in the Plan and/or your
Nonstatutory Stock Option Grant Agreement dated April 27, 2006, which will survive following the
Separation Date.

          (b) COBRA Reimbursement. If you are currently participating in the Company’s group health
insurance plans, to the extent provided by the federal COBRA law or, if applicable, state insurance
laws, and by the Company’s current group health insurance policies, you will be eligible to
continue your group health insurance benefits at your own expense. Later, you may be able to
convert to an individual policy through the provider of the Company’s health insurance, if you
wish. If you timely elect and remain eligible for continued coverage under COBRA, the Company, as
part of this Agreement, will reimburse you for that portion of your

 

 

Mr. Joseph Boyle

August 10, 2007

Page 2 of 8

COBRA premiums at the same level that it was paying prior to the Separation Date through
December 31, 2007, which amount equals $846.85 per month, to the extent such coverage remains
available to you under the applicable policy.

     4. Consulting Relationship. As part of this Agreement, the Company will engage you as a
consultant, and you hereby agree to serve as a consultant, under the following terms:

          (a) Consulting Period. The consulting relationship shall commence on the first business day
following the Separation Date and continue through December 31, 2007 (the “Consulting Period”).

          (b) Consulting Services. You agree to make yourself available during the Consulting Period,
upon the request of the Company’s Chief Executive Officer or his designee, including but not
limited to your successor as General Counsel and Secretary, to provide consulting services in any
area of your experience or expertise, including but not limited to providing transition briefing
information or services with respect to any and all Company matters in which you were involved, for
which you were responsible, or about which you have knowledge (the “Consulting Services”). You
shall exercise the highest degree of professionalism and utilize your expertise and creative
talents in performing the Consulting Services. You shall be free to pursue employment or
consulting with a third party during the Consulting Period. The Company shall not require you to
perform the Consulting Services in a manner that would unreasonably interfere with your performance
of your other professional duties.

          (c) Consulting Fees.

          (i) During the Consulting Period, the Company will pay you a consulting fee at the rate of
$14,583.33 per month for Consulting Services rendered during the Consulting Period. During the
Consulting Period if you are asked by the Company’s Chief Executive Officer to provide more than 10
hours of services per week, the Company agrees to pay you at the rate of $250 per hour, which is in
addition to your monthly consulting fee (collective, the “Consulting Fees”). For the avoidance of
any doubt, in the event you provide less than ten (10) hours of Consulting Services in any one week
period, the Company’s obligation to pay the fixed consulting fee outlined in the first sentence of
this Section 4(c) shall be unaffected. You will not be reimbursed for any expenses incurred by you
in providing the Consulting Services unless authorized in advance by the Company’s Chief Executive
Officer in writing.

          (ii) You will remain eligible for a quarterly bonus for Q3 and Q4 up to a maximum amount of
$12,500 based on achievement of individual and corporate objectives. Sourcefire agrees that, for
purposes of determining the amount of your quarterly bonus for Q3 and Q4, the compensation
committee shall consider (i) you to have achieved your individual objectives; and (ii) with regard
to the corporate objectives, you will be treated the same as similarly situated executive officers
of the Company. The Company will pay any Q3 bonus to

 

 

Mr. Joseph Boyle

August 10, 2007

Page 3 of 8

you when it pays such similar bonus to its
senior executives and will pay any Q4 bonus to you on December 31, 2007.

     (iii) Because you will perform the Consulting Services as an independent contractor, the
Company will not withhold from the Consulting Fees any amount for taxes, social security or other
payroll deductions. The Company will report your Consulting Fees on an IRS Form 1099. You
acknowledge that you will be entirely responsible for payment of any taxes which may be due with
regard to the Consulting Fees, and you hereby indemnify and save harmless the Company from any
liability for any taxes, penalties or interest that may be assessed by any taxing authority with
respect to the Consulting Fees.

          (d) Protection of Information. You agree that, during the Consulting Period and thereafter,
you will not, except for the purposes of performing your Consulting Services, use or disclose any
confidential or proprietary information or materials of the Company that you obtain or develop in
the course of performing the Consulting Services. Any and all work product you create in the
course of performing the Consulting Services will be the sole and exclusive property of the
Company.

          (e) Authority During Consulting Period. After the Separation Date, you will have no authority
to bind the Company to any contractual obligations, whether written, oral or implied. You agree
that after the Separation Date, you will not represent or purport to represent the Company in any
manner whatsoever to any third party unless authorized to do so in writing by me.

          (f) Independent Contractor. You acknowledge and agree that during the Consulting Period you
will be an independent contractor of the Company and not an employee. You further acknowledge and
agree that, during the Consulting Period, you will not be entitled to any of the benefits that the
Company may make available to its employees, such as group insurance, workers’ compensation
insurance coverage, profit sharing or retirement benefits, other than as may be expressly provided
by law due to your status as a former employee of the Company or as provided under Section 3(b)
above.

     5. Benefit Plans.

Your participation in employer-sponsored Basic and Optional Term Life Insurance, and Short- and
Long-Term Disability Insurance will cease as of the Separation Date. You may elect to convert your
Basic Term Life Insurance by completing the conversion within 31 days of your Separation Date
pursuant to page 31 of your Certificate of Insurance. Enclosed is the conversion form to convert
this benefit. Additionally, with respect to your Optional Term Life Insurance, you may exercise
your Portability Option within 31 days of your Separation Date pursuant to page 30 of your
Certificate of Insurance. A copy of the Election of Portable Coverage Form is enclosed.

Your participation in employer-sponsored Long-Term Care Insurance will cease as of September 30,
2007. You may elect to convert your Long-Term Care Insurance by contacting Genworth

 

 

Mr. Joseph Boyle

August 10, 2007

Page 4 of 8

with the
necessary information by November 30, 2007. You will receive information by mail regarding
conversion procedures.

You have the right to continue your current Medical and Dependent Care Flexible Spending Account if
you are participating in this program. Your last full Spending Account payroll deductions will be
processed in the August 31, 2007 pay period. You have until April 30, 2008, to claim expenses that
you incurred prior to the Separation Date.

     6. Other Compensation or Benefits. You acknowledge that, except as expressly provided in this
Agreement, you will not receive any additional compensation, severance or benefits after the
Separation Date.

     7. Expense Reimbursements. If you have been issued any Company credit or calling cards, the
Company will cancel these card(s) effective the Separation Date. You agree that, within ten (10)
days of the Separation Date, you will submit your final documented expense reimbursement statement
reflecting all business expenses you incurred through the Separation Date, if any, for which you
seek reimbursement. The Company will reimburse you for reasonable business expenses pursuant to
its regular business practice.

     8. Return of Company Property. Except for documents or materials that the Company authorizes
you in writing to retain for purposes of performing the Consulting Services, on the Separation
Date, you agree to return to the Company all Company documents (and all copies thereof) and other
Company property that you have had in your possession at any time, including, but not limited to,
Company files, notes, drawings, records, business plans and forecasts, financial information,
specifications, computer-recorded information, tangible property (including, but not limited to,
computers), credit cards, entry cards, identification badges and keys; and, any materials of any
kind that contain or embody any proprietary or confidential information of the Company (and all
reproductions thereof). Please coordinate return of Company property with Heather Wiley, Senior
Director of HR. Receipt of the Severance Benefits described in paragraphs 3 and 4 of this Agreement
is expressly conditioned upon return of all Company Property.

     9. Proprietary Information and Post-Termination Obligations. Both during and after your
employment you acknowledge your continuing obligations under your Employee Proprietary Information,
Inventions, and Non-Competition Agreement not to use or disclose any confidential or proprietary
information of the Company and to refrain from certain solicitation and competitive activities. A
copy of your Employee Proprietary Information, Inventions, and Non-Competition Agreement is
attached hereto as Exhibit A. If you have any doubts as to the scope of the restrictions in your
agreement, you should contact Wayne Jackson, Chief Executive Officer, immediately to assess your
compliance.

     10. Confidentiality. The provisions of this Agreement will be held in strictest confidence by
you and will not be publicized or disclosed in any manner whatsoever; provided, however, that: (a)
you may disclose this Agreement to your immediate family; (b) you may disclose this Agreement in
confidence to your attorney, accountant, auditor, tax preparer, and

 

 

Mr. Joseph Boyle

August 10, 2007

Page 5 of 8

financial advisor; and (c) you
may disclose this Agreement insofar as such disclosure may be required by law.

     11. Nondisparagement. Both you and the Company agree not to disparage the other party, and
the other party’s officers, directors, employees, shareholders and agents, in any manner likely to
be harmful to them or their business, business reputation or personal reputation; provided that
both you and the Company will respond accurately and fully to any question, inquiry or request for
information when required by legal process. The Company’s obligations under this section are
limited to Company representatives with knowledge of this provision.

     12. References. The Company will act as a reference for you if you direct all requests for
references from prospective employers to Wayne Jackson and Todd Headley. The Company further
agrees that you may obtain a verbal reference from Messrs. Jackson and/or Headley to quote in your
marketing literature.

     13. Release. In exchange for the payments and other consideration under this Agreement, to
which you would not otherwise be entitled, and except as otherwise set forth in this Agreement, you
hereby generally and completely release, acquit and forever discharge the Company, its parents and
subsidiaries, and its and their officers, directors, managers, partners, agents, employees,
attorneys, shareholders, successors, assigns and affiliates, of and from any and all claims,
liabilities, demands, causes of action, costs, expenses, attorneys fees, damages, indemnities and
obligations of every kind and nature, in law, equity, or otherwise, both known and unknown,
suspected and unsuspected, disclosed and undisclosed, arising out of or in any way related to
agreements, events, acts or conduct at any time prior to and including the execution date of this
Agreement, including but not limited to: all such claims and demands directly or indirectly
arising out of or in any way connected with your employment with the Company or the termination of
that employment; claims or demands related to salary, bonuses, commissions, stock, stock options,
or any other ownership interests in the Company, vacation pay, fringe benefits, expense
reimbursements, severance pay, or any other form of compensation; claims pursuant to any federal,
state or local law, statute, or cause of action; tort law; or contract law. The claims and causes
of action you are releasing and waiving in this Agreement include, but are not limited to, any and
all claims and causes of action that the Company, its parents and subsidiaries, and its and their
respective officers, directors, agents, servants, employees, attorneys, shareholders, successors,
assigns or affiliates:

	 	•	 	has violated its personnel policies, handbooks, contracts of employment, or
covenants of good faith and fair dealing;
	 
	 	•	 	has discriminated against you on the basis of age, race, color, sex (including
sexual harassment), national origin, ancestry, disability, religion, sexual
orientation, marital status, parental status, source of income, entitlement to
benefits, any union activities or other protected category in violation of any local,
state or federal law, constitution, ordinance, or regulation, including but not limited
to: the Age Discrimination in Employment Act, as amended; Title VII of the Civil Rights
Act of 1964, as amended; 42 U.S.C. § 1981, as amended; the

 

 

     Mr. Joseph Boyle

     August 10, 2007

     Page 6 of 8

	 	 	 	Equal Pay Act; the Americans
With Disabilities Act; the Family and Medical Leave Act; the Virginia Human Rights Act;
the Virginians with Disabilities Act; Maryland Fair Employment Practices Act, Article
49B; the Employee Retirement Income Security Act; Section 510; and the National Labor Relations Act;
	 
	 	•	 	has violated any statute, public policy or common law (including but not
limited to claims for retaliatory discharge; negligent hiring, retention or
supervision; defamation; intentional or negligent infliction of emotional distress
and/or mental anguish; intentional interference with contract; negligence; detrimental
reliance; loss of consortium to you or any member of your family and/or promissory
estoppel).

Notwithstanding the foregoing, you are not releasing any right of indemnification you may have for
any liabilities arising from your actions within the course and scope of your employment with the
Company or within the course and scope of my role as an officer of the Company. Also excluded from
this Agreement are any claims which cannot be waived by law. You are waiving, however, your right
to any monetary recovery should any governmental agency or entity, such as the EEOC or the DOL,
pursue any claims on your behalf. You acknowledge that you are knowingly and voluntarily waiving
and releasing any rights you may have under the ADEA, as amended. You also acknowledge that (i)
the consideration given to you in exchange for the waiver and release in this Agreement is in
addition to anything of value to which you were already entitled, and (ii) that you have been paid
for all time worked, have received all the leave, leaves of absence and leave benefits and
protections for which you are eligible, and have not suffered any on-the-job injury for which you
have not already filed a claim. You further acknowledge that you have been advised by this writing
that: (a) your waiver and release do not apply to any rights or claims that may arise after the
execution date of this Agreement; (b) you have been advised hereby that you have the right to
consult with an attorney prior to executing this Agreement; (c) you have twenty-one (21) days to
consider this Agreement (although you may choose to voluntarily execute this Agreement earlier and
if you do you will sign the Consideration Period waiver below); (d) you have seven (7) days
following your execution of this Agreement to revoke the Agreement; and (e) this Agreement shall
not be effective until the date upon which the revocation period has expired unexercised, which
shall be the eighth day after this Agreement is executed by you (the “Effective Date”).

     14. No Admission. It is understood and agreed that this is a mutually agreed separation
agreement. This Agreement does not constitute an admission by the Company of any wrongful action
or violation of any federal, state, or local statute, or common law rights, including those
relating to the provisions of any law or statute concerning employment actions, or of any other
possible or claimed violation of law or rights.

     15. Breach. You agree that upon any breach of this Agreement you will forfeit all amounts paid
or owing to you under this Agreement. Further, you acknowledge that it may be impossible to assess
the damages caused by your violation of the terms of paragraphs 8, 9, 10, and 11 of this Agreement
and further agree that any threatened or actual violation or breach of those paragraphs of this
Agreement will constitute immediate and irreparable injury to the

 

 

Mr. Joseph Boyle

August 10, 2007

Page 7 of 8

Company. You therefore agree
that any such breach of this Agreement is a material breach of this Agreement, and, in addition to
any and all other damages and remedies available to the Company upon your breach of this Agreement,
the Company shall be entitled to an injunction to
prevent you from violating or breaching this Agreement. If the Company believes that you have
breached any provision of this Agreement, the Company agrees to first provide you with notice and
an opportunity to cure the violation within twenty (20) days.

     16. Miscellaneous. This Agreement, including Exhibits A and B, constitutes the complete,
final and exclusive embodiment of the entire agreement between you and the Company with regard to
this subject matter. It is entered into without reliance on any promise or representation, written
or oral, other than those expressly contained herein, and it supersedes any other such promises,
warranties or representations. This Agreement may not be modified or amended except in a writing
signed by both you and a duly authorized officer of the Company. This Agreement will bind the
heirs, personal representatives, successors and assigns of both you and the Company, and inure to
the benefit of both you and the Company, their heirs, successors and assigns. If any provision of
this Agreement is determined to be invalid or unenforceable, in whole or in part, this
determination will not affect any other provision of this Agreement and the provision in question
will be modified by the court so as to be rendered enforceable. This Agreement will be deemed to
have been entered into and will be construed and enforced in accordance with the laws of the State
of Maryland as applied to contracts made and to be performed entirely within Maryland.

If this Agreement is acceptable to you, please sign below and return the original to me.

I wish you good luck in your future endeavors.

Sincerely,

Sourcefire, Inc.

	 	 	 	 	 
	By:
	 	/s/ E. Wayne Jackson	 	 
	 

	 	 

E. Wayne Jackson

Chief Executive Officer
	 	 

Agreed to and Accepted:

/s/ Joseph Boyle                                        

Joseph Boyle

			
	Exhibit A — 	 Employee Proprietary Information, Inventions, and Non-Competition Agreement

 

 

Mr. Joseph Boyle

August 10, 2007

Page 8 of 8

CONSIDERATION PERIOD

I, Joseph Boyle, understand that I have the right to take at least 21 days to consider whether to
sign this Agreement, which I received on August 10, 2007. If I elect to sign this Agreement before
21 days have passed, I understand I am to sign and date below this paragraph to confirm that I
knowingly and voluntarily agree to waive the 21-day consideration period.

Agreed:

                                                            

Employee Signature

                                                            

Date

 

 

Exhibit A

EMPLOYEE PROPRIETARY INFORMATION,

INVENTIONS, AND NON-COMPETITION AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00131-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00131-of-00352.parquet"}]]