Document:

exv10w6

 

Exhibit 10.6

EXECUTION COPY

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

     This Amended and Restated Employment Agreement (the “Agreement”) is executed on October 31,
2002 and made effective July 1, 2002 (the “Effective Date”), and is entered into by and between
Sourcefire, Inc., a Delaware corporation with its principal place of business at Westbridge
Corporate Center, Building C, Suite 100,7095 Samuel Morse Drive, Columbia, Maryland 21046 (the
“Company”), and Martin Roesch (the
“Executive”), who resides at [address].

     WHEREAS, Company and Executive previously entered into that certain Employment Agreement,
dated February 1, 2002 (the “Prior Agreement”); and

     WHEREAS, Company and Executive now desire to amend and restate the Prior Agreement in its
entirety.

     NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Company and the Executive agree as follows:

     1. Representations and Warranties. The Executive represents and warrants to the Company
that the Executive is not bound by any restrictive covenants or other obligations that would in any
way prevent, restrict, hinder or interfere with the Executive’s acceptance of continued employment
or the performance of all duties and services hereunder to the fullest extent of the Executive’s
ability and knowledge.

     2. Term of Employment. The Executive’s employment will commence on the Effective Date and will
end on the first (lst) anniversary of the Effective Date, provided, however that the
Executive’s employment may be renewed by vote of the Board of Directors of the Company (the
“Board”) for consecutive one (1) year periods on the first (1st) anniversary of the
Effective Date and on the last day of every year thereafter, unless sooner terminated by the
mutual, written consent of the parties hereto, or otherwise terminated pursuant to the terms of
this Agreement (the “Employment Period”).

     3. Duties and Functions.

          (a) (1) Subject to the terms set forth herein, the Company agrees to employ the
Executive as the Chief Technology Officer of the Company during the Employment Period. The
Executive shall report directly to the Board.

               (2) The Executive agrees to serve in an executive capacity and to undertake and perform the
duties and responsibilities described in the Company’s Bylaws, together with such other duties as
may, from time to time, be assigned, altered or modified by the Board. The Executive agrees to
abide by the rules, regulations, instructions, personnel practices and policies of the Company and
any change thereof which may be adopted at any time by the Company.

          (b) During the Employment Period, the Executive will devote his best efforts and his full time
and attention to the business of the Company. Except with the prior written consent of the
Company’s Board, the Executive will not, during the Employment Period, undertake or engage in any
other employment, occupation, or business enterprise. Notwithstanding the foregoing, the Executive
may at any time (1) engage in charitable activities, (2) serve on corporate, advisory, civil or
charitable boards

 

 

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or committees, (3) manage personal investments, or (4) 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 Board.

     4. Compensation.

          (a) Base Salary. As compensation for services rendered hereunder, during the Employment
Period, the Company agrees to pay the Executive a base salary of One Hundred Fifty Thousand Dollars
($150,000) per annum, subject to annual increase in the sole discretion of the Board, and payable
in accordance with the Company’s standard payroll practices.

          (b) Bonus. The Executive shall be eligible to receive a cash bonus of up to $50,000. Said
bonus is not guaranteed and is contingent upon the Executive and the Company achieving deliverables
or reasonable goals agreed to by the Executive and the Board or Compensation Committee. Said bonus
shall be determined by the Board or Compensation Committee and paid annually in December.

          (c) Other Expenses. The Company agrees in accordance with Company policy in effect from time
to time to pay or to promptly reimburse the Executive during the Employment Period for all
reasonable, ordinary and necessary, client-related business expenses incurred in the performance of
his services hereunder including, without limitation, all expenses for travel and living expenses
while away from home on business, and all reasonable entertainment and other client-related
expenses. The Executive shall submit vouchers and receipts for all expenses for which
reimbursement is sought.

          (d) Standard Company Benefits. The Executive shall be entitled to the benefits available
generally to Company employees pursuant to Company programs, including paid leave consistent with
Company policy (as reviewed and approved by the Board), profit-sharing, retirement, disability,
dental, vision, group sickness, accident or health insurance programs of the Company which may now
or, if not terminated, shall hereafter be in effect, or in any other or additional such programs
which may be established by the Company, as and to the extent any such programs are or may from
time to time be in effect, as determined by the Company, subject to the applicable terms and
conditions of the benefit plans in effect at that time.

          (e) Withholding. The Company may withhold from any amounts payable under this Agreement such
federal, state or local taxes as shall be required to be withheld pursuant to any applicable law or
regulation.

     5. Termination of Employment.

          (a) Resignation By Executive Without Good Reason. Notwithstanding Section 2 above, the
Executive may terminate the employment relationship at any time without Good Reason (as defined in
Section 5(f) below) by giving to the Company written notice thereof, as provided in Section 5(g)
below. In such event, the Executive will not be entitled to and shall not receive any compensation
or benefits of any type following the effective date of his resignation other than payment of
Executive’s salary up to the date of such termination, reimbursement of all expenses and payment
of all earned but unpaid bonuses to the extent such earned but unpaid bonuses have been approved
by the Board.

 

 

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          (b) Termination By Company For Cause.

               (1) Notwithstanding Section 2 above, the Company may terminate the Executive’s employment with
the Company at any time for Cause (as defined in Section 5(b)(2) below) by giving to the Executive
written notice thereof, as provided in Section 5(g) below.

               (2) For purposes hereof, “Cause” shall be: (i) the Executive’s conviction of, or plea of
guilty or nolo contendere to, (a) a felony or (b) any crime involving moral turpitude that may
reasonably be expected to have an adverse impact on the Company’s reputation or standing in the
community, or (ii) misconduct in connection with the Executive’s duties or willful failure to
perform such duties (including, without limitation, material breach by the Executive of any
provision of this Agreement or that certain Amended and Restated Assignment of Inventions,
Non-Disclosure, Non-Solicitation and Non-Competition Agreement, executed as of the date hereof and
made effective July 1, 2002, by and between the Company and the Executive, as may be amended from
time to time (the “NDA”), or any other similar agreement executed by the Executive for the benefit
of the Company), or (iii) engaging in behavior that would constitute grounds for liability for
harassment (as proscribed by the U.S. Equal Employment Opportunity Commission Guidelines or any
other applicable state or local regulatory body) or other conduct that violates laws governing the
workplace; provided, however, that the foregoing events or actions shall not constitute Cause
unless the Board shall have provided the Executive with written notice of the event or action
allegedly constituting Cause (which notice shall specify in reasonable detail the particulars of
such Cause) and the Executive has not cured such event or action within thirty (30) days of his
receipt of such written notice.

               (3) If the Executive’s employment is terminated for Cause, the Executive will not be entitled
to and shall not receive any compensation or benefits of any type following the effective date of
termination, other than payment of Executive’s salary up to the date of such termination,
reimbursement of all expenses and payment of all earned but unpaid bonuses to the extent such
earned but unpaid bonuses have been approved by the Board.

          (c) Termination By Company Without Cause.

               (1) Notwithstanding Section 2 above, the Executive’s employment may be terminated at any time
by the Company without Cause by giving to the Executive written notice thereof, as set forth in
Section 5(g) below. In such event, the Executive will continue to receive his base salary and
medical benefits for a period of six (6) months following the termination date (the “Termination
Compensation”). Notwithstanding the foregoing, on the date that the Executive secures employment
following his termination without Cause, the Executive shall no longer have a right to receive any
Termination Compensation.

               (2) The Executive shall not be entitled to any Termination Compensation unless the Executive
executes and delivers to the Company a release in form and substance acceptable to the Company by
which the Executive releases the Company from any obligations and liabilities of any type
whatsoever under this Agreement, except for the Company’s obligations with respect to the
Termination Compensation. The parties hereto acknowledge that the Termination Compensation that may
be provided under this Section 5(c) is to be provided in consideration for the above-specified
release.

 

 

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          (d) Termination for Executive’s Permanent Disability.

               (1) Notwithstanding Section 2 above, the Executive’s employment may be terminated by the
Company in the event that the Executive becomes Permanently Disabled (as defined in Section
5(d)(2) below).

               (2) The
term “Permanently Disabled” means the Executive’s inability, due to physical or
mental ill health, to perform the essential functions of his job, with or without a reasonable
accommodation, for a period in excess of 120 consecutive days or in excess of 180 days in any
consecutive 12 month period. In the event of any dispute under this Section 5(d), 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.

               (3) The Executive shall be entitled to receive the Termination Compensation described in
Section 5(c)(l) hereof in the event Executive is terminated due to his Permanent Disability.

          (e) Termination Due To Executive’s Death. This Agreement will terminate immediately upon
the Executive’s death and the Company shall not have any further liability or obligation to the
Executive, his executors, heirs, assigns or any other person claiming under or through his estate,
except that Executive’s estate shall receive all compensation, including base salary, earned but
unpaid bonuses (to the extent such earned but unpaid bonuses have been approved by the Board), and
reimbursement of expenses that are due and owing to the Executive as of the date of his death.

          (f) Resignation by Executive for Good Reason.

               (1) Notwithstanding Section 2 above, the Executive shall have the right to terminate his
employment under this Agreement for Good Reason (as defined in Section 5(f)(2) below) by giving to
the Company written notice thereof, as set forth in Section 5(g) below.

               (2) The
term “Good Reason” means any one of the following: (i) willful failure by the Company
to provide the Executive the base salary and benefits described in this Agreement, except for any
reduction or other concessionary arrangement affecting all employees or affecting senior executive
officers generally, .(ii) there is an adverse change in Executive’s, title, position,
responsibilities or there is otherwise a diminution in Executive’s duties (other than a change due
to the Executive’s total and permanent disability or as an accommodation under the Americans With
Disabilities Act), or (iii) a relocation of the Company’s principal executive office to a location
outside the Washington, D.C. metropolitan area or requiring the Executive to be based anywhere
other than the Company’s principal executive office, except for required travel on Company business
to the extent that such travel is substantially consistent with the Executive’s present business
travel obligations; provided, however, that the foregoing events or actions shall not constitute
Good Reason unless the Executive shall have provided the Company with written notice of the event
or action allegedly constituting Good Reason (which notice shall specify in reasonable detail the
particulars of such Good Reason) and the Company has not cured such event or action within thirty
(30) days of the Company’s receipt of such written notice.

               (3) A resignation by the Executive for Good Reason shall be treated for all severance purposes
as a termination without Cause. In such event, the Executive shall be entitled to receive the
Termination Compensation described in Section 5(c)(l) hereof, provided that the Executive executes
a release as described in Section 5(c)(2) hereof.

 

 

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          (g) Notice; Effective Date of Termination. The termination of the Executive’s employment
pursuant to this Agreement shall be effective on the earlier of: (i) thirty (30) days after the
Executive delivers to the Company written notice of his resignation (with or without Good Reason),
(ii) thirty (30) days after the Company delivers to the Executive written notice of his
termination (with or without Cause or by reason of the Executive’s having become Permanently
Disabled), (iii) immediately upon the death of the Executive, or (iv) immediately upon the
expiration of the Employment Period. Notwithstanding the foregoing, the Executive acknowledges
and agrees that upon delivery of written notice of termination by the Executive or the Company or
expiration of the Employment Period, the Company may, in its discretion, require the Executive to
leave the premises immediately and may prohibit Executive from accessing any Company facilities or
using any Company property after the delivery of such notice or expiration of the Employment
Period.

          (h) Survival of Obligations under NDA. The Executive shall remain bound by the obligations
imposed upon him pursuant to the terms of the NDA subsequent to the Executive’s termination for
Cause or resignation without Good Reason. If Executive is terminated without Cause or resigns for
Good Reason, Executive’s obligations under the NDA with respect to Section 8 (non-competition)
and Section 9 (non-solicitation) shall terminate and shall be of no further force and effect as of
the date of such termination, provided that Executive agrees to waive any right to Termination
Compensation.

     6. Publicity; Non-Disparagement. Neither party shall issue, without the consent of the other
party, any press release or make any public announcement with respect to this Agreement or the
employment relationship between them. Following the Effective Date of this Agreement and regardless
of any dispute that may arise in the future, the Executive and the Company jointly and mutually
agree that they will not disparage, criticize or make statements which are negative, detrimental or
injurious to the other to any individual, company or client, including within the Company.

     7. Directors’ and Officers’ Insurance. The Company shall maintain director and officer
liability insurance at all times during the Employment Period with an underwriter and upon terms
acceptable to the Board.

     8. Binding Agreement. This Agreement shall be binding upon and inure to the benefit of the
parties hereto, their heirs, personal representatives, successors and assigns. In the event that
the Company is acquired, is a non surviving party in a merger, or transfers substantially all of
its assets, this Agreement shall not be terminated and the transferee or surviving company shall be
bound by the provisions of this Agreement. The parties understand that the obligations of the
Executive are personal and may not be assigned by him.

     9. Entire Agreement. This Agreement, the NDA and that certain Restricted Stock Agreement
dated February 5, 2002 entered into by the Company and Executive contain the entire understanding
of the Executive and the Company with respect to the employment of the Executive by the Company and
supersede any and all prior understandings, written or oral, between the Executive and the Company.
This Agreement may not be amended, waived, discharged or terminated orally, but only by an
instrument in writing, specifically identified as an amendment to this Agreement, and signed by the
Executive and a duly authorized officer of the Company. By entering into this Agreement, the
Executive certifies and acknowledges that he has carefully read all of the provisions of this
Agreement and that he voluntarily and knowingly enters into said Agreement.

 

 

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     10. Severability. Any provision of this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be deemed severable from the remainder of this
Agreement, and the remaining provisions contained in this Agreement shall be construed to preserve
to the maximum permissible extent the intent and purposes of this Agreement.

     11. Governing Law and Submission to Jurisdiction. This Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Maryland, without giving effect
to the principles of conflicts of law thereof. Any court of competent jurisdiction of the State of
Maryland shall have jurisdiction and venue in any proceeding instituted to enforce this Agreement
and any objections to such jurisdiction and venue are hereby waived.

     12. Notices. Any notice provided for in this Agreement shall be provided in writing. Notices
shall be effective from the date of service, if served personally on the party to whom notice is to
be given, or on the second day after mailing, if mailed by first class mail, postage prepaid.
Notices shall be properly addressed to the parties at their respective addresses or to such other
address as either party may later specify by notice to the other.

     13. Waivers. No delay or omission by the Company or the Executive in exercising any right
under this Agreement shall operate as a waiver of that or any other right. A waiver or consent
given by the Company or the Executive on any one occasion shall be effective only in that instance
and shall not be construed as a bar or waiver of any right on any other occasion.

     14. Headings. The captions of the sections of this Agreement are for convenience of
reference only and in no way define, limit or affect the scope or substance of any section of this
Agreement.

     15. Attorney Fees. If either party brings any action to enforce its rights hereunder, such
party shall be entitled to recover its reasonable attorneys’ fees and costs incurred in connection
with such action should it prevail in the action.

     16. Independent Counsel. The Executive has been provided with an opportunity to consult with
the Executive’s own counsel with respect to this Agreement. The Executive acknowledges that Piper
Rudnick LLP did not represent the Executive with respect to this Agreement.

[Signatures on following page]

 

 

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     IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be duly executed
and delivered under seal, by its authorized officers or individually, as of the Effective Date.

	 	 	 	 	 
	 	 	SOURCEFIRE, INC.:
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Tim Webb
	 

	 	 	 	 
	 

	 	Name:

Title:
	 	TIM WEBB

DIRECTOR
	 
	 	 	 	 
	 	 	EXECUTIVE:
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:
	 	Martin Roesch

 

 

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     IN
WITNESS WHEREOF, each of the parties hereto has caused this
Agreement to be duly executed and
delivered under seal, by its authorized officers or individually, as of the Effective Date.

	 	 	 	 	 
	 	 	SOURCEFIRE,INC.:
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:
	 	 
	 

	 	 	 	 
	 

	 	Title:
	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	EXECUTIVE:
	 
	 	 	 	 
	 

	 	By:
	 	Martin Roesch
	 

	 	 	 	 
	 

	 	Name:
	 	Martin Roesch

 

 

CONVERSION NOTICE

December 31, 2001

Martin F.
Roesch

President, SourceFire, Inc.

Dear Marty,

     This
notice is pursuant to our debenture agreement with SourceFire, Inc. I am exercising the
right to receive stock certificate #4, for 10 shares or 10% of SourceFire, Inc. whichever is
greater.

	 	 	 	 	 	 	 
	 	 	 	 	Sincerely,	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	/s/ Stephen Ray Northcutt
 

Stephen Ray Northcutt

Board of Directors, Sourcefire, Inc.
	 	 

SNORTHC@AOL.COM

 

 

Nonstatutory Stock Option Grant Agreement

Under The 

Sourcefire, Inc. 2002 Stock Incentive Plan

This
Nonstatutory Stock Option Grant Agreement (this
“Agreement”) is made as of June 24, 2005 (the
“Grant Date”) by
and between (i) Sourcefire, Inc., a Delaware corporation (the “Company”), and (ii)
Martin Roesch (“Optionee”).

     1. Terminology. All capitalized words that are not defined in this Agreement or in
the attached Stock Option Certificate have the meanings ascribed to them in the Plan. For purposes
of this Agreement, the terms below have the following meanings:

          (a) “Cause” has the meaning ascribed to such term or words of similar import in the Optionee’s
written employment or service contract with the Company and, in the absence of such agreement or
definition, means the Optionee’s (i) conviction of, or plea of nolo contendere to, a felony or
crime involving moral turpitude; (ii) fraud on or misappropriation of any funds or property of the
Company, any affiliate, customer or vendor; (iii) personal dishonesty, incompetence, willful
misconduct, willful violation of any law, rule or regulation (other than minor traffic violations
or similar offenses), or breach of fiduciary duty which involves personal profit; (iv) willful
misconduct in connection with the Optionee’s duties or willful failure to perform the Optionee’s
responsibilities in the best interests of the Company; (v) chronic use of alcohol, drugs or other
similar substances which affects the Optionee’s work performance; (vi) violation of any Company
rule, regulation, procedure or policy; or (vii) breach of any provision of any employment,
non-disclosure, non-competition, non-solicitation or other similar agreement executed by the
Optionee for the benefit of the Company, all as determined by the Administrator, which
determination will be conclusive.

          (b) “Change In Control” means: (i) the acquisition (other than from the Company) in one or
more transactions by any Person, as defined in this Section 1(b), of the beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as
amended) of 50% or more of (A) the then outstanding shares of the securities of the Company, or (B)
the combined voting power of the then outstanding securities of the Company entitled to vote
generally in the election of directors (the “Company
Voting Stock”); (ii) the closing of a sale or
other conveyance of all or substantially all of the assets of the Company; or (iii) the effective
time of any merger, share exchange, consolidation, or other business combination of the Company if
immediately after such transaction persons who hold a majority of the outstanding voting securities
entitled to vote generally in the election of directors of the surviving entity (or the entity
owning 100% of such surviving entity) are not persons who, immediately prior to such transaction,
held the Company Voting Stock; provided, however, that a Change, in Control shall not
include (Y) a public offering of capital stock of the Company or (Z) any transaction pursuant to
which shares of capital stock of the Company are transferred or issued to any trust, charitable
organization, foundation, family partnership or other entity controlled directly or indirectly by,
or established for the benefit of, Martin Roesch or his immediate family members (including
spouses, children, grandchildren, parents, and siblings, in each case to include adoptive
relations), or transferred to any such immediate family members. For purposes of this Section
1(b), a “Person” means any individual, entity or group within the meaning of Section 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1934, as amended, other than: employee benefit plans
sponsored or maintained by the Company and corporations controlled by the Company.

          (c)
“Company” includes Sourcefire, Inc. and its Affiliates, except where the context otherwise
requires.

          (d)
“Option Shares” mean the shares of Common Stock underlying the Options.

 

 

          (e) “Total and Permanent Disability’’ means the inability to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment which can be
expected to result in death or which has lasted or can be expected to last for a continuous period
of not less than twelve months. The Administrator may require such proof of Total and Permanent
Disability as the Administrator in its sole discretion deems appropriate and the Administrator’s
good faith determination as to whether the Optionee is totally and permanently disabled will be
final and binding on all parties concerned.

     2. Vesting.

          (a) The Options vest in accordance with the vesting schedule identified in the Stock Option
Certificate attached to this Agreement and constitutes a part of the Agreement (the “Vesting
Schedule” ), so long as the Optionee is in the continuous employ of, or in a service relationship
with, the Company from the Grant Date through the applicable date upon which vesting is scheduled
to occur. No vesting will accrue to any Options after the Optionee ceases to be in either an
employment or other service relationship with the Company, except as provided otherwise in this
Agreement.

          (b) Unless the Options have earlier terminated, if before the Optionee has vested in any
Options, his or her employment or other service relationship with the Company terminates due to
death or Total and Permanent Disability, then as of such termination a number of Options will be
vested equal to (i) the total number of Options granted under this Agreement as specified on the
Stock Option Certificate, multiplied by (ii) 25%, multiplied by (iii) a fraction, the numerator of
which is the total number of days measured from the Optionee’s Vesting Start Date (as defined in
the Stock Option Certificate) to the date that the employment or other service relationship ceased
and the denominator of which is 365.

     3. Exercise of Options.

          (a) Right to Exercise. The Optionee may exercise the Options to the extent vested at
any time on or before the Expiration Date or the earlier termination of the Options, unless
otherwise provided in this Agreement. Section 4 below describes certain limitations on exercise of
the Options that apply in the event of the Optionee’s death, Total and Permanent Disability, or
termination of employment or other service relationship with the Company. The Options may be
exercised only in multiples of whole shares and may not be exercised at any one time as to fewer
than one hundred shares (or such lesser number of shares as to which the Options are then
exercisable). No fractional shares will be issued under the Options.

          (b) Exercise Procedure. In order to exercise the Options, the following items must be
delivered to the Secretary of the Company  before the expiration or termination of the Options: (i)
an exercise notice, in such form as the Administrator may require from time to time, specifying the
number of Option Shares to be purchased, (ii) full payment of the Exercise Price for such Option
Shares or properly executed, irrevocable instructions, in such form as the Administrator may
require from time to time, to effectuate a broker-assisted cashless exercise, each in accordance
with Section 3(c) of this Agreement, and (iii) an executed copy of any other agreements requested
by the Administrator pursuant to Section 3(d) of this Agreement. An exercise will not be
effective until all of the foregoing items are received by the Secretary of the Company.

          (c) Method of Payment. Payment of the Exercise Price may be made by delivery of cash,
certified or cashier’s check, money order or other cash equivalent acceptable to the Administrator
in its discretion, a broker-assisted cashless exercise in accordance with Regulation T of the Board
of Governors of the Federal Reserve System through a brokerage firm approved by the Administrator,
or a combination of the foregoing. In addition, payment of the Exercise Price may be made by any
other method approved by the Administrator.

          (d) Agreement by Optionee to Execute Other Agreements. The Optionee hereby agrees to
execute, as a condition precedent to the exercise of the Options and at any time thereafter as

 

 

may reasonably be requested by the Administrator, a Stock Restriction Agreement, substantially in
the form, and containing the terms and provisions, of the Stock Restriction Agreement attached
hereto as Exhibit A, with respect to any Option Shares acquired by the Optionee pursuant to
this Agreement; provided, however, that execution of the Stock Restriction Agreement will
not be required upon any exercise of the Options that occurs after the closing of the first public
offering of capital stock of the Company that is effected pursuant to a registration statement
filed with, and declared effective by, the Securities and Exchange Commission under the Securities
Act of 1933 (the “Securities Act”) or, if later, the expiration of any market stand-off agreement
that applies to other shareholders of the Company respecting such public offering of capital stock.

          (e) Issuance of Shares upon Exercise. Upon exercise of the Options in accordance with
the terms of this Agreement, the Company will issue to the Optionee, the brokerage firm specified
in the Optionee’s delivery instructions pursuant to a broker-assisted cashless exercise, or such
other person exercising the Options, as the case may, the number of shares of Common Stock so
paid for, in the form of fully paid and nonassessable stock. The Company will deliver stock
certificates for the Option Shares as soon as practicable after exercise, which certificates will,
unless such Option Shares are registered or an exemption from registration is available under
applicable federal and state law, bear a legend restricting
transferability of such shares and
referencing any applicable Stock Restriction Agreement.

     4. Termination of Employment or Service.

          (a) Exercise Period Following Cessation of Employment or Other Service
Relationship, In General. If the Optionee ceases to be employed by, or in a service
relationship with, the Company for any reason other than death, Total and Permanent Disability,
voluntary resignation or discharge for Cause, (i) the unvested Options, after giving effect to the
provisions of Section 2 of this Agreement, terminate immediately upon such cessation, and (ii) the
vested Options remain exercisable during the 30-day period following such cessation, but in no
event after the Expiration Date. Unless sooner terminated the vested
Options automatically terminate upon the expiration of such 30-day period.

          (b) Disability of Optionee. Notwithstanding the provisions of Section 4(a) above, if
the Optionee ceases to be employed by, or in a service relationship with, the Company as a result
of the Optionee’s Total and Permanent Disability, (i) the unvested Options, after giving effect to
the provisions of Section 2 of this Agreement, terminate immediately upon such cessation, and (ii)
the vested Options remain exercisable during the six-month period following such cessation, but in
no event after the Expiration Date. Unless sooner terminated, the vested Options automatically
terminate upon the expiration of such six-month period.

          (c) Death of Optionee. If the Optionee dies prior to the expiration or other
termination of the Options, (i) the unvested Options, after giving effect to the provisions of
Section 2 of this Agreement, terminate immediately upon the Optionee’s death, and (ii) the vested
Options remain exercisable during the six-month period following the Optionee’s death, but in no
event after Expiration Date, by the Optionee’s executor, personal representative, or the
person(s) to whom the Options are transferred by will or the laws of descent and distribution.
Unless sooner terminated, the vested Options automatically terminate upon the expiration of such
six-month period.

          (d) Voluntary Resignation/Misconduct. Notwithstanding anything to the contrary in
this Agreement, the Options terminate in their entirety, regardless of whether the Options are
vested, immediately upon the Optionee’s voluntary resignation of employment or other service
relationship, upon the Optionee’s discharge of employment or other service relationship for Cause
or upon the Optionee’s commission of any of the following acts during any period following the
cessation of employment or other service relationship during which the Options otherwise would be
exercisable: (i) fraud on or misappropriation of any funds or property of the Company, or (ii)
breach by the Optionee of any provision of any employment, non-disclosure, non-competition,
non-solicitation, assignment of inventions, or other similar agreement executed by the Optionee for
the benefit of the Company, as determined by the Administrator, which determination will be
conclusive.

 

 

     5. Market Stand-Off Agreement. The Optionee agrees that following the effective date
of a registration statement of the Company filed under the Securities Act, the Optionee, for the
duration specified by and to the extent requested by the Company and an underwriter of Common Stock
or other securities of the Company, shall not offer, sell, contract to sell, pledge or otherwise
dispose of, directly or indirectly, any equity securities of the Company, or any securities
convertible into or exchangeable or exercisable for such securities, enter into a transaction which
would have the same effect, or enter into any swap, hedge or other arrangement that transfers, in
whole or in part, any of the economic consequences of ownership of such securities, whether any
such aforementioned transaction is to be settled by delivery of such securities or other
securities, in cash or otherwise, or publicly disclose the intention to make any such offer, sale,
pledge or disposition, or to enter into any such transaction, swap, hedge or other arrangement, in
each case during the seven days prior to and the 180 days after the effectiveness of any
underwritten offering of the Company’s equity securities (or
such longer or shorter period as may
be requested in writing by the managing underwriter and agreed to in writing by the Company) (the
“Market Stand-Off Period”), except as part of
such underwritten registration if otherwise
permitted. In addition, the Optionee agrees to execute any further letters, agreements and/or
other documents requested by the Company or its underwriters which are consistent with the terms of
this Section 5. The Company may impose stop-transfer instructions with respect to securities
subject to the foregoing restrictions until the end of such Market Stand-Off Period.

     6. Nontransferability of Options. These Options are nontransferable otherwise than by
will or the laws of descent and distribution and during the lifetime of the Optionee, the Options
may be exercised only by the Optionee or, during the period the Optionee is under a legal
disability, by the Optionee’s guardian or legal representative. Except as provided above, the
Options may not be assigned, transferred, pledged, hypothecated or disposed of in any way (whether
by operation of law or otherwise) and shall not be subject to execution, attachment or similar
process.

     7. Termination of Options/Recapture Payment. The Options are granted as
consideration for, and contingent upon, the Optionee becoming a party to the Company’s Assignment
of Inventions, Non-Disclosure, Non-Solicitation and Non-Competition Agreement or any successor
agreement thereto (the “Assignment Agreement”). The Optionee further recognizes and acknowledges
that it would be difficult to ascertain the damages arising from a violation of the covenants set
forth in the Assignment Agreement. Accordingly, notwithstanding anything herein to the contrary, if
the Administrator or its delegate, in its sole discretion, determines that the Optionee has engaged
in any activity that contravenes the covenants set forth in the Assignment Agreement, the
Optionee agrees that the following shall occur:

	 	(i)	 	The Options will terminate effective on the date on which such determination
is made, regardless of whether the Options are vested in whole or in part, unless
terminated sooner by operation of another provision of this Agreement; and
	 
	 	(ii)	 	With respect to any Common Stock acquired by the Optionee through the exercise
of the Options within three months before the Optionee’s termination of employment or
at any time after the Optionee’s termination of employment (the
“Recapture Shares”),
the Optionee agrees to pay to the Company, within 30 days of when the Company delivers
written notice to the Optionee, a “Recapture Payment.” The Recapture Payment may be
paid in cash, Recapture Shares, or a combination of cash or Recapture Shares. In the
event that the Optionee holds Recapture Shares on the date that he or she is
determined to have violated the covenants in the Assignment Agreement, the
Administrator may demand that the Recapture Payment be made by tendering the Recapture
Shares. If paid in cash, the Recapture Payment shall be an amount equal to the excess
of the aggregate Fair Market Value of the shares on the exercise date over the
Exercise Price paid by the Optionee to acquire the Recapture Shares. If paid in
Recapture Shares, the Recapture Payment shall be paid by the Optionee delivering to
the Company share certificates evidencing the Recapture Shares, together with a stock

 

 

	 	 	 	power, endorsed in blank. As soon as practicable after receipt of the stock
certificates and stock power properly endorsed, the Company will pay to the Optionee
the lower of (A) the aggregate Exercise Price paid by the Optionee to acquire the
Recapture Shares for which the stock certificates have been delivered to the Company
or (B) the Fair Market Value of such Recapture Shares at that time.

Nothing in this Section will be construed as prohibiting the Company from pursuing any other
remedies available to it for such breach or threatened breach, including the recovery of any
damages set forth in this Agreement and that it may additionally prove, and all remedies will be
cumulative and not affirmative.

     8. Coordination With Other Agreements. To the extent that the Optionee is a party to
any agreement with the Company that contains the same or similar covenants as those set forth in
the Assignment Agreement (hereinafter referred to as the
“Other Agreement”), the Optionee and the
Company expressly agree that any remedy available to the Company under this Agreement or the
Assignment Agreement is in addition to, and does not limit the enforceability of, any remedy
available to the Company under such Other Agreement.

     9. Nonstatutory Nature of the Options. The Options are not intended to qualify
as incentive stock options within the meaning of Code section 422, and this Agreement shall be so
construed. The Optionee acknowledges that, upon exercise of the Options, the Optionee will
recognize taxable income in an amount equal to the excess of the then Fair Market Value of the
Option Shares over the Exercise Price and must comply with the provisions of Section 10 of this
Agreement with respect to any tax withholding obligations that arise as a result of such exercise.

     10. Withholding of Taxes. At the time the Options are exercised, in whole or in part,
or at any time thereafter as requested by the Company, the Optionee hereby authorizes withholding
from payroll or any other payment of any kind due the Optionee and otherwise agrees to make
adequate provision for foreign, federal, state and local taxes required by law to be withheld, if
any, which arise in connection with the Options. The Company may require the Optionee to make a
cash payment to cover any withholding tax obligation as a condition of exercise of the Options or
issuance of share certificates representing Option Shares.

     The Administrator may, in its sole discretion, permit the Optionee to satisfy, in whole or
in part, any withholding tax obligation which may arise in connection with the Options either by
electing to have the Company withhold from the shares to be issued upon exercise that number of
shares, or by electing to deliver to the Company already-owned shares, in either case having a
Fair Market Value equal to the amount necessary to satisfy the statutory minimum withholding
amount due.

     11. Adjustments for Corporate Transactions and Other Events.

          (a)
Stock Dividend, Stock Split and Reverse Stock Split. Upon a stock dividend of, or
stock split or reverse stock split affecting, the Common Stock, the number of shares covered by and
the exercise price and other terms of the Options, shall, without further action of the Board, be
adjusted to reflect such event unless the Board determines, at the time it approves such stock
dividend, stock split or reverse stock split, that no such adjustment shall be made. The
Administrator may make adjustments, in its discretion, to address the treatment of fractional
shares and fractional cents that arise with respect to the Options as a result of the stock
dividend, stock split or reverse stock split.

          (b) Non-Change in Control Transactions. Except with respect to the transactions set
forth in Section 11 (a), in the event of any change affecting the Common Stock, the Company or its
capitalization, by reason of a spin-off, split-up, dividend, recapitalization, merger,
consolidation or share exchange, other than any such change that is part of a transaction resulting
in a Change in Control, the Administrator, in its discretion and without the consent of the
Optionee, shall make any adjustments in the Options, including but not limited to modifying the
number, kind and price of securities subject to the Options.

 

 

          (c) Change in Control Transactions. Unless otherwise set forth in the Stock Option
Certificate, in the event of any transaction resulting in a Change in Control, the Options will
terminate upon the effective time of any such Change in Control unless provision is made in
connection with the transaction in the sole discretion of the parties thereto for the continuation
or assumption of the Options, or the substitution of the Options with new options of the surviving
or successor entity or a parent thereof. In the event of such termination, the Optionee will be
permitted, for a period of at least twenty days prior to the effective time of the Change in
Control, to exercise all portions of such Options that are then exercisable or which become
exercisable upon or prior to the effective time of the Change in Control.

          (d)
Adjustments for Unusual Events. The Administrator is authorized to make, in its
discretion and without the consent of the Optionee, adjustments in the terms and conditions of, and
the criteria included in, the Options in recognition of unusual or nonrecurring events affecting
the Company, or the financial statements of the Company or any Affiliate, or of changes in
applicable laws, regulations, or accounting principles, whenever the Administrator determines that
such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Options or the Plan.

          (e) Binding Nature of Adjustments. Adjustments under this Section 11 will be made by
the Administrator, whose determination as to what adjustments, if any, will be made and the extent
thereof will be final, binding and conclusive. No fractional shares will be issued pursuant to the
Options on account of any such adjustments. The terms and conditions of this Agreement shall apply
with equal force to any additional and/or substitute securities received by the Optionee pursuant
to this Section 11 in exchange for, or by virtue of the Optionee’s ownership of, the Options or the
Option Shares, except as otherwise determined by the Administrator.

     12. Confidential Information. In consideration of the Options granted to the
Optionee pursuant to this Agreement, the Optionee agrees and covenants that, except as specifically
authorized by the Company, the Optionee will keep confidential any trade secrets or confidential or
proprietary information of the Company which are now or which hereafter may become known to the
Optionee as a result of the Optionee’s employment by or other service relationship with the
Company, and shall not at any time, directly or indirectly, disclose any such information to any
person, firm, company or other entity, or use the same in any way other than in connection with the
business of the Company, at all times during and after the Optionee’s employment or other service
relationship. The provisions of this Section 12 shall not narrow or otherwise limit the
obligations and responsibilities of the Optionee set forth in any agreement of similar import
entered into between the Optionee and the Company.

     13. Non-Guarantee of Employment or Service Relationship. Nothing in the Plan or this
Agreement shall alter the at-will or other employment status or other service relationship of the
Optionee, nor be construed as a contract of employment or service relationship between the Company
and the Optionee, or as a contractual right of Optionee to continue in the employ of, or in a
service relationship with, the Company for any period of time, or as a limitation of the right of
the Company to discharge the Optionee at any time with or without cause or notice and whether or
not such discharge results in the failure of any Options to vest or any other adverse effect on the
Optionee’s interests under the Plan.

     14. No Rights as a Stockholder. The Optionee shall not have any of the rights of a
stockholder with respect to the Option Shares until such shares have been issued to him or her upon
the due exercise of the Options. No adjustment shall be made for dividends or distributions or
other rights for which the record date is prior to the date such shares are issued.

     15. The
Company’s Rights. The existence of the Options shall not affect in any way the right
or power of the Company or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company’s capital structure or its
business, or any merger or consolidation of the Company, or any issue of bonds, debentures,
preferred or other stocks with preference ahead of or convertible into, or otherwise affecting the
Common Stock or the rights thereof, or the dissolution or liquidation of the Company, or any sale
or transfer of all or any part of the

 

 

Company’s assets or business, or any other corporate act or proceeding, whether of a similar
character or otherwise.

     16. Optionee. Whenever the word “Optionee” is used in any provision of this Agreement
under circumstances where the provision should logically be construed, as determined by the
Administrator, to apply to the estate, personal representative, or beneficiary to whom the Options
may be transferred by will or by the laws of descent and distribution, or another permitted
transferee, the word “Optionee” shall be deemed to include such person.

     17. Notices. All notices and other communications made or given pursuant to this
Agreement shall be in writing and shall be sufficiently made or given if hand delivered or mailed
by certified mail, addressed to the Optionee at the address contained in the records of the
Company, or addressed to the Administrator, care of the Company for the attention of its Corporate
Secretary at its principal office or, if the receiving party consents in advance, transmitted and
received via telecopy or via such other electronic transmission mechanism as may be available to
the parties.

     18. Entire Agreement; Additional Grants. This Agreement contains the entire
agreement between the parties with respect to the Options granted hereunder. Any and all prior
agreements between the parties hereto with respect to the subject matter of this Agreement are
hereby revoked. This Agreement is, and is intended by the parties to be, an integration of any and
all prior agreements or understandings, oral or written, with respect to the Option and the Option
Shares. The terms and conditions of this Agreement shall apply to any and all future grants of
options to Optionee pursuant to the Plan and the term “Grant Date” shall refer to each such
subsequent grant date. Any such future grants and acceptance thereof shall be evidenced by the
completion, execution and attachment to this Agreement of an additional Stock Option Certificate,
in the form provided by the Company, which shall be incorporated herein by reference.

     19. Invalidity
or Unenforceability. It is the intention of the Company and the
Optionee that this Agreement shall be enforceable to the fullest extent allowed by law. In the
event that a court having jurisdiction holds any provision of this Agreement to be invalid or
unenforceable, in whole or in part, the Company and the Optionee agree that, if allowed by law,
that provision shall be reduced to the degree necessary to render it valid and enforceable without
affecting the rest of this Agreement.

     20. Waiver. No delay or omission by the Company in exercising any right under this
Agreement shall operate as a waiver of that or any other right. A waiver or consent given by the
Company on any one occasion shall be effective only in that instance and shall not be construed as
a bar or waiver of any right on any other occasion.

     21. Amendment. This Agreement may be amended from time to time by the Administrator in
its discretion; provided, however, that this Agreement may not be modified in a manner that
would have a materially adverse effect on the Options or Option Shares as determined in the
discretion of the Administrator, except as provided in the Plan or in a written document signed by
each of the parties hereto.

     22. Conformity
with Plan. This Agreement is intended to conform in all respects with,
and is subject to all applicable provisions of, the Plan. Inconsistencies between this Agreement
and the Plan shall be resolved in accordance with the terms of the Plan. In the event of any
ambiguity in this Agreement or any matters as to which this Agreement is silent, the Plan shall
govern. A copy of the Plan is provided to you with this Agreement.

     23. Governing Law. The validity, construction and effect of this Agreement, and of any
determinations or decisions made by the Administrator relating to this Agreement, and the rights of
any and all persons having or claiming to have any interest under this Agreement, shall be
determined exclusively in accordance with the laws of the State of Maryland, without regard to its
provisions concerning the applicability of laws of other jurisdictions. Any suit with respect
hereto will be brought in

 

 

the
federal or state courts in the districts which include the city and state in which the
principal offices of the Company are located, and the Optionee hereby agrees and submits to the
personal jurisdiction and venue thereof.

     24. Headings. The headings in this Agreement are for reference purposes only and
shall not affect the meaning or interpretation of this Agreement.

     IN
WITNESS WHEREOF, the Corporation and Optionee have executed this Agreement, as of the date
set forth above.

	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	SOURCEFIRE, INC., a Delaware corporation
	 
	 	 	 	 	 	 
	 

	 	By:

	 	/s/ Todd P. Headley
 

	 	 
	 
	 	 	 	 	 	 
	 
	 	Name:	 	Todd P. Headley	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	OPTIONEE:	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Martin Roesch	 	 
	 	 	 	 	 
	 

	 	 	 	Martin Roesch	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 

 

 

EXHIBIT
A-1

Sourcefire, Inc. 
Stock Option Certificate

THIS
CERTIFIES THAT Martin Roesch (the “Optionee”) has been awarded under the Sourcefire, Inc.
2002 Stock Incentive Plan (the “Plan”),
nonstatutory stock options (each, an “Option” or
collectively, the “Options”) to purchase
100,000 shares of Common Stock, par value $0.001 per
share (“Common Stock”) of Sourcefire, Inc., a
Delaware corporation (the “Company”), at a price of
$1.25 per share (the “Exercise Price”). This Stock Option Certificate constitutes part of and is
subject to the terms and provisions of the Nonstatutory Stock Option Grant Agreement (the
“Agreement”) by and between the Company and Optionee dated June 24, 2005, which this Stock Option
Certificate is attached to and made part of. Capitalized terms not defined in this Certificate
shall have the meanings ascribed to them in the Agreement.

Vesting
Start Date: June 24, 2005

Grant Date: June 24, 2005

Expiration Date: The Options expire at 5:00 p.m. Eastern Time on the last business day
coincident with or prior to the tenth anniversary of the Grant Date
(the “Expiration Date”),
unless fully exercised or terminated earlier.

Vesting Schedule: The Options vest and become exercisable in accordance with the
vesting schedule below, subject to the terms and conditions described in the Agreement:

	 	(a)	 	25% of the Options vest and become exercisable on the first
anniversary of the Optionee’s Vesting Start Date (the
“Initial Vesting Date”),
and
	 
	 	(b)	 	2.083% of the Options vest and become exercisable on the date one
month after the Initial Vesting Date and on such date every month thereafter,
through the fourth anniversary of the Vesting Start Date.
	 
	 	(c)	 	There is 100% acceleration of vesting of the Options in the event
both (i) a Change in Control (as defined in the Plan) and (ii) Optionee’s
employment is terminated without cause within one year of the Change of
Control.

The extent to which the Options are vested and exercisable as of a particular vesting date is
rounded down to the nearest whole share. However, vesting is rounded up to the nearest whole
share on the fourth anniversary of the Grant Date.

IN WITNESS WHEREOF, the Company has caused this Certificate to be executed by its duly authorized
officer on June 24, 2005.

	 	 	 	 	 
	 

	 	SOURCEFIRE, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Todd P. Headley
 

Todd P. Headley, CFO
	 	 

The undersigned hereby acknowledges that he/she has carefully read the Agreement and the Plan and
agrees that this Stock Option Certificate, together with the Agreement, shall govern the terms
and conditions of the Options, the Option Shares and the other subject matter of the Agreement,
subject to the provisions of the Plan. In the event of any conflict between the terms of this
Stock Option Certificate and the Agreement, the Agreement shall control.

	 	 	 	 	 
	 

	 	OPTIONEE	 	 
	 
	 	 	 	 
	 

	 	/s/ Martin Roesch
 

Martin Roesch
	 	 
	 

	 	 	 	 
	 

	 	Date: 6/28/05	 	 

 

 

RESTRICTIVE STOCK TRANSFER AGREEMENT

     THIS RESTRICTIVE STOCK TRANSFER AGREEMENT (hereinafter referred to as the “Agreement”) is
made this
5th day
of March, 2001, by and between MARTIN F. ROESCH, CHRISTOPHER
PETERSEN, and JOHN PAVLICK (hereinafter sometimes individually referred to as a “Stockholder” and
collectively as the “Stockholders”) and SOURCEFIRE, INC. (hereinafter referred to as the
“Corporation”), a Maryland corporation.

Explanatory Statement

     A. The Corporation has authorized capital stock consisting only of Five Thousand (5000) shares
of common stock (hereinafter referred to as the “Common Stock”), of which the following shares of
the Common Stock are presently issued, outstanding and owned of record by the Stockholders as
follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stockholders:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Shares:
	MARTIN F. ROESCH
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	100	 
	JOHN PAVLICK
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	5 1	 

     B. The parties hereto believe it is desirable and in their mutual best interests to control
the ownership of the Common Stock of the Corporation and thereby to help facilitate the continuous,
harmonious and effective management of the affairs, policies, and operations of the Corporation.

     C. It is the intention of the parties to restrict the transfer of all shares of the Common
Stock of the Corporation and to provide a market for the sale of such shares upon the death of a
Stockholder and upon the occurrence of certain other events, as provided hereinafter in
this Agreement.

     D. The Corporation recognizes that the loss of the services of any Stockholder would
constitute a serious impairment to the effective conduct of its business and also might appreciably
reduce the value of its goodwill.

 

			
	1	 	John Pavlick and Christopher Peterson will be entitled to purchase the greater of 10% or
10 shares of the outstanding common stock issued by the Corporation vesting over a period of 1
year pursuant to the terms of a Stock Option Agreement and Employment Agreement each dated      ,
2001 .

 

 

     E. The parties to this Agreement believe that its execution will serve as an
inducement to the Stockholders to remain in the employ of the Corporation.

     NOW, THEREFORE, in consideration of the Explanatory Statement and the mutual covenants,
promises and agreements of the parties hereto, the parties hereto do hereby covenant, promise and
agree as follows:

     1. Recitals.

     The Explanatory Statement is incorporated by reference in, and made a part of, this
Agreement.

     2. Insurance.

     The Corporation shall have the right to make application for, take out and maintain in effect
such policies of life insurance on the lives of, and such policies of disability insurance
covering, any or all of the Stockholders, whenever and in such amounts as, in the opinion of the
Board of Directors of the Corporation, such insurance may be requited for the benefit of the
Corporation. Each Stockholder shall exert his best efforts and fully assist and cooperate with the
Corporation in obtaining any such policies of life and disability insurance.

     3. Purchase Upon Death.

     (a) Upon the death of any Stockholder (hereinafter referred to as the “Decedent”), the
Corporation shall purchase and the Decedent’s personal representatives shall sell all of the
shares of Common Stock of the Corporation owned b the Decedent (hereinafter referred to as the
“Decedent Shares”) at the time of his death. The Corporation shall, by written notice addressed to
the personal representative of the Decedent, fix a closing date for such purchase; the closing
date shall not be less than ten (10) days after the appointment of such personal representative,
but in no event longer than six (6) months after the date of death of the Decedent. The
Corporation shall purchase the Decedent Shares on the closing date at a price per share
(hereinafter referred to as the “Decedent Purchase Price”) which shall be the Agreed Value (as
defined in Subsection 8) of the Shares.

2

 

     (b) The aggregate dollar amount of the Decedent Purchase Price multiplied by the number of
Decedent Shares owned by the Decedent at the date of death of the Decedent under this Section 3
shall be payable on the closing date, unless the Corporation shall elect prior to or on the closing
date to purchase the Decedent Shares in installments as provided in Section 9 hereof.

     4. Retirement
and Disability.

     Upon the retirement or disability (hereinafter referred to as the “Termination”) of a
Stockholder (hereinafter referred to as the “Terminating Stockholder”), the Corporation shall
purchase and the Terminating Stockholder shall sell, all of the shares of Common Stock of the
Corporation (hereinafter referred to as the “Terminating Shares”) owned by the Terminating
Stockholder at the time of the Termination. The Corporation shall, by written notice addressed to
the Terminating Stockholder, fix a closing date for such purchase which shall be not less than ten
(10) days after the Termination, but in no event longer than forty-five (45) days after the
Termination. The Terminating Shares shall be purchased by the Corporation on such closing date at
a price per share (hereinafter referred to as the “Terminating Purchase Price”) and in a manner as
follows:

     (a) The Terminating Purchase Price shall be the Agreed Value (as defined in
Section 8).

     (b) The aggregate dollar amount of the Terminating Purchase Price multiplied by
the number of Terminating Shares owned by the Terminating Stockholder at the date of Termination
under this Section 4 shall be payable in cash on the closing date, unless the
Corporation shall elect prior to or on the closing date to purchase the Terminating
Shares in installments as provided in Section 9 hereof.

     (c) The “disability” of a Shareholder, for purposes of this Agreement, shall mean
an illness, injury, or other physical or mental condition of the Stockholder occurring
for a period of six (6) consecutive months from the commencement of such condition
which results in the Stockholder’s inability to perform during such period
substantially the obligations he performed in his capacity as an employee of the
Corporation and to the extent he was performing same immediately prior to the
commencement of

3

 

such condition as determined by a qualified physician agreed upon by the Board of Directors of the
Corporation. If the Corporation and the Stockholder are unable to agree whether the Stockholder is
disabled within the meaning of this Subsection 4(c), the issue shall be submitted to and settled by
binding arbitration under and pursuant to the Maryland Uniform Arbitration Act and the rules and
regulations of the American Arbitration Association, and the decision or award of the arbitrator or
arbitrators in such arbitration shall be final, conclusive and binding upon each of the parties and
judgment may be entered thereon in any court of competent jurisdiction.

     (d) The “retirement” of a Stockholder, for purposes of this Agreement, shall mean the
resignation of a Stockholder at age sixty-five (65) or sooner; provided, however, that the
Stockholder shall have been employed by the Corporation for a period of not less than ten (10)
years prior to the date of retirement.

     
5. Transfer of Common Stock.

     Except as otherwise provided in Sections 3, 4, 6 and 7 hereof, no Stockholder (hereinafter
referred to as the “Offering Stockholder”) shall, during the term of this Agreement, sell,
hypothecate, pledge, assign, or otherwise transfer with or without consideration (hereinafter
collectively referred to as a “Transfer”) any or all of the shares of Common Stock of the
Corporation owned of record or beneficially by him to any other person, corporation, partnership,
association, trust or any other entity whatsoever (a “Transferee”), without first offering
(hereinafter referred to as the “Offer”) the shares of Common Stock subject to the contemplated
transfer (hereinafter referred to as the “Offered Shares”) first to the Corporation, and secondly,
to the other Stockholders at a purchase price per share (hereinafter referred to as the “Transfer
Purchase Price”) and in a manner as follows:

     (a) The Transfer Purchase Price shall be the Agreed Value (as defined in Section 8), less
Twenty Percent (20%) of the full value of the Transfer Purchase Price so that the total Transfer
Purchase Price shall equal Eighty Percent (80%) of the full Agreed Value of the Stockholder’s
interest at the time of the transfer.

4

 

     (b)(i) The Offer shall be made by the Offering Stockholder first to the Corporation by
written notice (hereinafter referred to as the “Corporate Notice”). Within twenty (20) days
(hereinafter referred to as the “Corporate Offer Period”) after receipt by the Corporation of the
Corporate Notice, the Corporation shall notify the Offering Stockholder in writing (hereinafter
referred to as the “Stockholder Notice”), whether or not the Corporation shall accept the Offer and
shall purchase all but not less than all of the Offered Shares. If the Corporation accepts the
Offer to purchase the Offered Shares, the Stockholder Notice shall fix a closing date not more than
twenty-five (25) days (hereinafter referred to as the “Corporate Closing Date”) after the
expiration of the Corporate Offer Period.

     (ii) In the event the Corporation decides not to accept the Offer, the Offering Stockholder
or the Corporation, at its election, shall, by written notice (hereinafter referred to as the
“Remaining Stockholder Notice”) shall notify the other Stockholders of their right to purchase the
Offered shares within ten (10) days after the expiration of the Corporate Offer Period. If the
other Stockholders intend to accept such offer and to purchase the Offered Shares, the written
notice required to be given by them shall fix a closing date not more than ten (10) days after the
expiration of the Stockholder Acceptance Period (hereinafter referred to as the “Stockholder
Closing Date”).

     (c) The Transfer Purchase Price multiplied by the number of Offered Shares owned by the
Offering Stockholder at the date of the Offer under this Section 5 shall be payable in cash
on the Corporate Closing Date or on the Stockholder Closing Date, as the case may be, unless the
Corporation or the purchasing Stockholders shall elect prior to or on the respective closing dates,
to purchase such Offered Shares in installments pursuant to the provisions of Section 9 hereof.

     (d) If the Corporation or the other Stockholders fail to accept the Offer or, if the Offer is
accepted but the Corporation or the other Stockholders fail to purchase all of the Offered Shares
at the Transfer Purchase Price within the time and in the manner specified in this Section 5, then
the Offering Stockholder shall be free, for a period (hereinafter referred to as the “Free Transfer
Period”) of sixty (60) days from the occurrence of such failure, to transfer the Offered Shares to
a Transferee; subject only to any additional restrictions on such Transfer that may be imposed by
this Agreement or any

5

 

other agreement. Any such Transferee, upon acquiring the Offered Shares, shall
automatically be bound by the terms of this Agreement and shall be required to join
in, execute, seal and deliver a copy of this Agreement as a result of which he shall
become an additional Stockholder party hereto. If the Offering Stockholder shall not
transfer the Offered Shares within the Free Transfer Period, his right to transfer
the Offered Shares free of the foregoing restrictions shall thereupon cease and
terminate.

     
(e) Anything contained in this Section 5 to the contrary notwithstanding, the
words “Transfer” or “transfer,” as used in this Section 5 and elsewhere in this
Agreement: (i) shall include a gift or transfer by a Stockholder to, or for the
benefit of, himself or a member of his immediate family (as defined in Section 11
hereof); and (ii) shall include the grant of any proxy, the establishment of any
voting trust or any sale, hypothecation, pledge, assignment, or other conveyance,
with or without consideration, of any incident or muniment of ownership or title as
to any share of Common Stock owned of record or beneficially by a Stockholder,
regardless of whether or not record or beneficial title to such shares is thereby
transferred.

     6. Cessation of Employment.

          (a) Breach for Cause. Immediately upon the termination of a Stockholder’s
employment with the Corporation for cause or as a result of such Stockholder’s breach
of or default under a written employment agreement between the Stockholder and the
Corporation (a “Breach Termination”) such Stockholder (the “Breaching Stockholder”)
shall be deemed hereby, automatically and without any further action required on the
part of the Breaching Stockholder, to have offered for sale (the “Breach Offer”) to
the Corporation all of the shares of Common Stock owned of record and beneficially by
the Breaching Stockholder on the date of the Breach Termination (the “Breach Shares”)
on the following terms and conditions:

          i. Within 60 days of the Breach Termination (the “Corporate Breach Offer
Period”), the Corporation shall notify the Breaching Stockholder in writing (the
“Offering Breach Stockholder Notice”) whether or not the Corporation shall accept the
Breach Offer, and shall purchase all, but not less than all, of the Breach Shares.

6

 

          ii. If the Corporation shall accept the Breach Offer, the Offering Breach Stockholder
Notice shall fix a closing date (the “Corporate Breach Closing Date”) for such purchase which shall
be not more than 30 days after the expiration of the Corporate Breach Offer Period and the
Corporation shall purchase the Breach Shares at a price per share (the “Breach Purchase Price”)
equal to Fifty percent (50%) of the Agreed Value (as defined in Section 8 of this Agreement) per
share of the Breach Shares. The dollar amount of the Breach Purchase Price multiplied by the number
of Breach Shares (the “Aggregate Breach Purchase Price”) shall be paid in cash on the Corporate
Breach Closing Date unless the Corporation shall elect prior to or on the Corporate Breach Closing
Date to pay the Aggregate Breach Purchase Price in installments pursuant to the provisions of
Section 9 of this Agreement.

          (b)
Non-Breach Termination of Employment. Immediately upon the termination of a Stockholder’s
employment with the Corporation for any reason whatsoever, other than for cause, retirement or
disability of such Stockholder, as defined in this Section and Sections 4 and 6 above (a
“Non-Breach Termination”), such Stockholder (the “Non-Breaching Stockholder”) shall sell to the
Corporation, and the Corporation shall purchase, all of the shares of Common Stock of the
Corporation (hereinafter referred to as the “Non-Breach Shares”) owned of record and beneficially
by the Non-Breaching Stockholder at the time of the Non-Breach Termination. The Corporation shall,
by written notice addressed to the Non-Breaching Stockholder, fix a closing date (the “Corporate
Non-Breach Closing Date”) for such purchase which shall be not less than 10 days after the
Non-Breach Termination nor more than 90 days after the Non-Breach Termination. The Non-Breach
Shares shall be purchased by the Corporation on the Corporate Non-Breach Closing Date at a price
per share and in a manner as follows:

          i. The purchase price per share of the Non-Breach Shares (the “Non-Breach Purchase Price”)
shall be the Agreed Value (as defined in Section 8 of the Agreement) par share of the Non-Breach
Shares.

          ii. The dollar amount of the Non-Breach Purchase Price multiplied by the number of Non-Breach
Shares (the “Aggregate Non-Breach Purchase Price”) shall be paid in cash on the Corporate
Non-Breach Closing Date, unless the Corporation shall elect prior to or on the Corporate

7

 

Non-Breach Closing Date to pay the Aggregate Non-Breach Purchase Price in installments as
provided in Section 9 of this Agreement.

     7. Anti-Dilution Provisions.

     If as a result of any stock dividend, split-up, recapitalization, merger, consolidation,
combination or exchange of shares, issuance of shares to a present and/or new shareholder,
separation, reorganization or liquidation of the Corporation occurring after the execution of this
Agreement, not subject to an existing Stock Option Agreement, resulting in a change of the
percentage of ownership interest in Common Stock of the Corporation of
any or all of the Stockholders, then the Stockholders (however, the ownership interest of
John Pavlick and Christopher Petersen may be diluted only to the extent of up to Five Percent (5%)
of their ownership interests) shall be entitled to receive, as the Board of Directors shall
determine in their discretion) the aggregate number and class of shares or assets to which they
would have been entitled if the shares of Common Stock (as authorized at the date hereof) had been
purchased at the rate hereof for the price (on the basis of the price per share set forth above)
and had not been disposed of, such person or persons would be holding at any time of such
issuance, as a result of such purchase and all such stock dividends, split-ups, recapitalization,
mergers, consolidations, combinations or exchanges of shares, separations, reorganizations or
liquidations; provided, however, that no fractional shares shall be issued upon such issuance, and
that the aggregate price paid shall be appropriately increased on account of any fractional share
not issued.

     8. Agreed Value. “Agreed Value” as used in this Agreement shall be the per share
dollar amount last agreed upon in writing by all of the Stockholders, which agreement
shall be dated and filed with the minute book of the Corporation and shall be in the
form as set forth in Schedule A which is attached hereto and incorporated by reference
herein.

     9. Installment Payments.

     (a) In the event there shall be an election by the Corporation or the other Stockholders
pursuant to the provisions of Sections 3(b), 4, 5(c) or 6(c) hereof to purchase the Decedent
Shares, the Terminating Shares, the Offered Shares or the Defaulting and Non-Defaulting Shares, as
the case

8

 

may be, (hereinafter, where appropriate, referred to as the “Shares”), on an installment basis,
then the terms and conditions of such installment purchase shall be as follows:

     (i) twenty-five percent (25%) of the aggregate purchase price due for such Shares
(hereinafter, where appropriate, referred to as the “Aggregate Purchase Price”) shall be paid on
the closing date: and

     (ii) the remainder of the Aggregate Purchase Price shall be paid in equal annual installments
on each anniversary of the closing date over a period, beginning with the year following the
fiscal year of the Corporation in which the sale occurred, not to
exceed five (5) years
(hereinafter referred to as the “Installment Payment Period”), and secured by the shares of the
Decedent’s personal representatives, the Terminating Stockholders, the Offering Stockholders, the
Defaulting and Non-Defaulting Stockholders, which shall be placed into escrow until the Purchase
Price is paid in full; and,

     (iii) the Corporation or the other Stockholders, as the case may be, shall pay simple
interest at the rate of Eight percent (8%) per annum on the unpaid balance of the Aggregate
Purchase Price on each anniversary of the closing date during the Installment Payment Period.

     (b) So long as any part of the Aggregate Purchase Price incurred in accordance with this
Agreement remains unpaid, the Corporation:

     (i) shall not, without the consent of the Decedent’s personal representatives, the
Terminating Stockholder, the Offering Stockholder, the Defaulting and Non-Defaulting Stockholder
or the Deadlocking Stockholders, as the case may be (hereinafter, where appropriate, referred to
as the “Payee”), declare or pay dividends on its capital stock, make any distributions with
respect to its capital stock, enter into a share exchange with any other corporation, merge or
consolidate with any other corporation, sell any of its assets in excess of ten percent (10%) of
the total value of the Corporation’s assets, except in the regular course of business, or increase
the salary or other compensation of any officer, director or stockholder of the Corporation in
excess of Twenty Percent (20%) of the salary or the compensation payable to such officer, director
or stockholder of the Corporation during the immediately preceding fiscal year of the

9

 

Corporation (otherwise than by a prior written employment agreement between the Corporation
and such person); and

     (ii) shall permit the Payee and his attorneys or accountants to examine the books and records
of the Corporation during regular business hours from time to time upon reasonable prior written
notice and to receive copies of the annual accounting reports and tax returns of the Corporation.

     (c) In the event that during the Installment Payment Period in the case of a Termination,
Cessation or Deadlock pursuant to Subsection 7(a) hereof, the Terminating Stockholder, the
Offering Stockholder, the Departing Stockholder shall become deceased, then the terms of payment
and the Installment Payment Period shall be and remain those elected at the respective closing
date of said Termination, Offer, Cessation or Deadlock.

     10. Delivery of Certificates.

     On the closing date, upon payment of the Aggregate Purchase Price for the purchase of the
Shares hereunder or, if payment is to be made in installments pursuant to the provisions of
Subsection 8(a) hereof, upon the first payment, the stock certificate or certificates representing
such Shares shall be delivered to the Corporation or the other Stockholders, as the case may be,
with appropriate stock powers or endorsements duly executed in blank. If a tender of the Aggregate
Purchase Price or, if payment is to be made in installments pursuant to the provisions of
Subsection 9(a) hereof, the first payment thereof shall be refused, the stock certificate or
certificates with appropriate stock powers or endorsements duly executed, shall be delivered
contemporaneously with the tender of the Aggregate Purchase Price or the first payment thereof, as
aforesaid, then the Corporation or the other Stockholders, as the case may be, shall be appointed,
and the same is hereby irrevocably constituted and appointed, the attorney-in-fact with full power
and authority to execute the necessary stock powers and to perform all other acts necessary and
proper in order to transfer such stock certificate or certificates to the Corporation or the other
Stockholders, as the case may be, in accordance with the provisions of this Agreement.

10

 

     11. Securities Laws and Endorsements of Stock Certificates.

     (a) The Stockholders acknowledge that the Common Stock of the Corporation acquired by them has
not been registered under the Securities Act of 1933 (hereinafter referred to as the “Act”) or any
state securities law (the “State Act”). The Stockholders severally represent and warrant that they
have acquired their shares of Common Stock of the Corporation without a view to, the offer, offer
for sale, or sale in connection with, the distribution of such shares of the Common Stock, and that
they will hold such shares of Common Stock indefinitely unless subsequently registered under the
Act and the State Acts or unless exemption from such registration is available and an opinion of
counsel for the Corporation, in form and substance satisfactory to the Corporation, is obtained to
that effect. The provisions of Sections 3, 4, 5 and 6 hereof are in all respects subject to the
restrictions of the Act and the State Acts state securities laws and regulations thereunder.

     (b) Upon the execution of this Agreement, the certificates representing shares of
Common Stock subject to this Agreement shall be conspicuously legended as follows:

“The shares of stock represented by this Certificate are restricted as to transfer
by the terms, conditions and covenants of an Agreement with respect thereto dated
the 5th day of March, 2001, a copy of which is on file with the Corporation. The
Corporation will gratuitously furnish a copy of said Agreement to any party having
a valid interest therein. Any transfer of stock other than in accordance with said
Agreement shall be absolutely null and void.”

     12. Stock Issued In The Future.

     Before any additional shares of Common Stock or any other “securities” (as the term is
defined in the Act) of the Corporation are issued in the future to any person, corporation,
partnership, association, trust and/or any other entity whatsoever other than a signatory to this
Agreement, such person or entity shall be required to become a party to and execute and deliver a
copy of this Agreement prior to the issuance of such shares of Common Stock or any other
securities (as the term is defined in

11

 

the Act) to him, and the certificates therefor shall be legended as provided in this Agreement.

     13. After-Acquired
Stock.

     Whenever any Stockholder acquires any additional shares of Common Stock of the Corporation or
any other “securities” (as said term is defined in the Act) of the Corporation other than the
shares of Common Stock owned at the time of the execution of this Agreement, such shares of Common
Stock or such other securities (as the term is defined in the Act) of the Corporation so acquired
shall be subject to all of the terms of this Agreement, and the certificates therefor shall be
surrendered to the Corporation for legending in accordance with this Agreement, unless already so
legended.

     14. Termination.

     This Agreement shall be perpetual until the happening of any of the events listed below, upon
the first to occur of which all rights and obligations [other than the obligations relating to
registration under or exemption from the Act and the State Acts, as set forth in Section 13 of
this Agreement, and rights and obligations respecting the payments pursuant to Subsections 3(b),
4(b), 5(c) and 6(c) shall cease:

     (a) the agreement in writing of holders of the outstanding shares of Common Stock to terminate
this Agreement;

     (b) the adjudication of the Corporation as a bankrupt, the execution by the Corporation of an
assignment for the benefit of creditors or the appointment of a receiver for the Corporation;

     (c) the voluntary dissolution of the Corporation;

     (d) the receipt by the Corporation from the Securities and Exchange Commission of an order of
effectiveness as to any registration statement for the sale of any capital stock of the Corporation
under the Act, whether or not such Common Stock is owned by any of the Stockholders;

12

 

     (e) in the event that there shall be only one (1) owner of issued and outstanding shares of
Common Stock of the Corporation; or

     (f) in the event there is a merger, consolidation or show exchanges whereby the Corporation is
not the surviving or successor corporation, as the case may be.

     15. Notices.

     All notices, offers, acceptances, exercises of options, waivers and other acts under this
Agreement shall be in writing and shall be deemed to have been duly given when delivered in person
or mailed by first class, certified mail, postage prepaid, or by cable, telex, or telegram and
addressed to the Corporation at the principal office of the Corporation or to the Stockholders at
their addresses, or to such other addresses as any of them, by written notice to the others, may
from time to time designate. Except as otherwise provided in this Agreement, time shall be counted
from the date of such delivery or mailing.

     16. Additional Actions And Documents.

     Each of the parties hereto agrees to take or cause to be taken further actions, to execute
and deliver or cause to be executed and delivered such further instruments and to use his best
efforts to obtain such requisite consents as any other party may from time to time reasonably
request in order to fully effectuate the purposes, terms and conditions of this Agreement.

     17. Miscellaneous.

     (a) This instrument contains the entire agreement among the parties and supersedes all prior
oral or written agreements, commitments or understandings with respect to the matters provided for
herein, and no modification shall be binding upon the party affected unless set forth in writing
and duly executed by each party affected.

     (b) Each of the Stockholders represent and warrant that he is the sole owner of the number of
shares of the Common Stock set forth opposite his signature hereto, evidenced by the certificate
number or numbers shown

13

 

immediately after such number of shares, that all of such shares are free and clear of all
liens, claims, charges, security interests, or encumbrances of any kind, and that he has the right
and lawful authority to sell or otherwise transfer such shares.

     (c) All of the covenants and agreements in this Agreement by or on behalf of any of the
parties hereto shall bind and inure to the benefit of their respective heirs, guardians, personal
and legal representatives, successors and assigns.

     (d) This Agreement shall be construed and enforced in accordance with, and the rights of the
parties shall be governed by, the laws of the State of Maryland.

     (e) In the event that one or more of the provisions of this Agreement shall be invalid,
illegal or unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not in any way be affected or impaired thereby.

     (f) In the event of a breach of this Agreement, any non-breaching party hereto may maintain an
action for specific performance against the party or parties hereto who are alleged to have
breached any of the terms, conditions, representations, warranties, or agreements herein contained
and it is hereby further agreed that no objection to the form of action in any proceeding for
specific performance of this Agreement shall be raised by any party hereto so that such specific
performance of this Agreement may not be obtained by the aggrieved party. Anything contained herein
to the contrary notwithstanding, this Subsection shall not be construed to limit in any manner
whatsoever any other rights and remedies an aggrieved party may have by virtue of any breach of
this Agreement.

     (g) The descriptive headings of the several sections and paragraphs of this Agreement are
inserted for convenience only and do not constitute a part of this Agreement.

     (h) Unless the context otherwise requires, whenever used in this Agreement, the singular
shall include the plural, the plural shall include the singular, and the masculine gender shall
include the neuter and feminine gender, and vice-versa.

14

 

     (i) This Agreement may be executed in counterparts, each of which shall be an
original, but all of which shall together constitute one document.

     IN WITNESS WHEREOF, the parties have hereunto set their hands and seals and acknowledged
this Agreement as of the date first above written.

WITNESS:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	/s/ Martin F. Roesch	 	(SEAL)
	 	 	 	 	 	 	 
	 	 	 	 	MARTIN F. ROESCH	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	/s/ John Pavlick	 	(SEAL)
	 	 	 	 	 	 	 
	 	 	 	 	JOHN PAVLICK	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	(SEAL)
	 	 	 	 	 	 	 
	 	 	 	 	CHRISTOPHER PETERSEN	 	 
	 
	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	SOURCEFIRE, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Anna W. Roesch

	 	 	 	By:
	 	/s/ Martin F. Roesch
	 	(SEAL)
	 	 	 	 	 	 	 
	ANNA W. ROESCH, Secretary	 	 	 	MARTIN F. ROESCH, President	 	 

15exv10w7

 

Exhibit 10.7

	 	 	 
	7095
Samuel Morse Drive
Suite 100
Columbia, MD 21046

	 	
	410.290.1616
fax 410.290.0024

	 	www.sourcefire.com
www.snort.org

March 27,
2003

Mr. Todd Headley

Dear Todd,

     On
behalf of Sourcefire, Inc. (“Sourcefire”), I am pleased to extend this offer of
employment to you for the position of Chief Financial
Officer.

     In
this position you will report to the Chief Executive
Officer. You will be primarily
working out of Sourcefire’s headquarters office in Columbia, Maryland as well as the Sales
office in Tysons Corner, Virginia. This position is a full-time position and qualifies for
“exempt” status for purposes of the wage and hour laws. As
such, you are exempt from the
overtime pay provisions of the federal law and will not be entitled to overtime pay for hours
worked over forty (40) in a workweek.

     This letter summarizes some of the important aspects of your employment with the
Sourcefire.

     Starting Date. You will commence your employment with Sourcefire on April 21,
2003. Your employment is of no set duration.

     Termination
Without Cause. If you are terminated without Cause (as defined below),
you will receive three (3) months compensation as severance including salary, benefits, and any
earned bonus provided that you execute and deliver a written release in a form acceptable to
Sourcefire that releases Sourcefire from all claims and liabilities. For purposes hereof,
“Cause” shall be (i) conviction of, or plea of guilty or nolo contendere to, (a) a felony or
(b) any crime involving moral turpitude that may reasonably be
expected to have an adverse
impact on the Sourcefire’s reputation or standing in the community, (ii) fraud on or
misappropriation of any funds or property of Sourcefire, any affiliate, customer or vendor,
(iii) personal dishonesty, incompetence, willful misconduct, willful violation of any law, rule
or regulation (other than minor traffic violations or similar offenses), or breach of fiduciary
duty which involves personal profit, (iv) violation of any Sourcefire rule, regulation,
procedure or policy, (v) breach of the Employee Proprietary Information, Inventions, and
Non-Competition Agreement that you will be required to sign as a condition of employment (the
“NDA”), or any other similar agreement executed by
you for the benefit of the Sourcefire, (vi)
engaging in behavior that would constitute grounds for liability for harassment (as proscribed
by the U.S. Equal Employment Opportunity Commission Guidelines or any other applicable state or
local regulatory body) or other egregious conduct that violates laws governing the workplace,
or (vii) chronic use of alcohol, drugs or other substances which
affects your work performance.

     Compensation.
Your initial base monthly salary in this position will be $10,416.66
US Dollars (annualized to $125,000 per annum), payable
bi-monthly. You will also be eligible to

 

 

receive an incentive bonus that will be determined by the compensation committee and will be
pro-rated for the partial year and paid quarterly. Your bonus will be awarded based upon your
ability to achieve management objectives that will be determined in the first thirty days of your
employment. Your compensation will be subject to normal periodic review based on corporate policy,
your performance, and other factors considered by Sourcefire in making compensation
determinations.

     Stock Options. Subject to the approval by Sourcefire’s Board of Directors, you will be
eligible to participate in the Sourcefire Stock Incentive Stock Plan
(the “Plan”) in accordance
with the terms and conditions of the Plan, as may be amended from time to time, with an initial
stock option grant of 172,000 shares. You will be required to execute a stock option agreement as a
prerequisite to participation in the Plan. Specific terms of your grant include straight-line
vesting over a four year period at quarterly intervals and 100% acceleration on termination without
Cause or in the event of a change of control (as defined in the Plan).

     Benefits. Beginning the first day of the month following your start date, you will be
eligible for the standard Sourcefire health insurance, dental and other benefit plans, as may be in
effect from time to time. You will be eligible for 15 days of
paid leave per year earned during the
course of your employment.

     At — Will Employment. Sourcefire is an “at will” employer. This means your employment is
not for any definite period of time, and either you or Sourcefire may terminate such employment for
any reason, at any time, with or without cause and with or without notice. Similarly, as an
employee of Sourcefire, you will be subject to such employment
policies and terms and conditions
as Sourcefire may adopt or modify from time to time, and nothing in this offer letter or told to
you during your employment should be interpreted as a guarantee of continued employment.

     By accepting the Sourcefire offer of employment, you agree to comply with and be bound by the
operating practices, procedures and policies that Sourcefire may put
into effect from time to time
during your employment. You also represent and warrant that you are free to enter into and fully
perform this agreement and the agreements referred to herein without breaching any other agreement
or contract to which you are or may be bound, including any existing or previous employment
agreement, non-disclosure agreement or non-competition agreement.

     This letter sets forth the entire understanding between you and Sourcefire regarding the terms
of your employment, and supersedes any prior verbal or written representations.

     This offer is valid until withdrawn or for seven (7) days, whichever is shorter, and is
contingent upon satisfactory completion of reference checks and your compliance with the 1986
Immigration Reform and Control Act. This offer is also contingent upon your execution of the NDA,
which is an integral part of your employment.

     Please indicate your acceptance of this offer of employment by signing and dating below, and
returning to Sourcefire this signed offer letter and the signed NDA.

 

 

     We
look forward to having you join the Sourcefire team and anticipate that this will be a
mutually beneficial relationship. If you have any questions, please feel free to give me a call.

	 	 	 	 	 	 	 
	 	 	Sincerely,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Wayne Jackson
 

Wayne Jackson
	 	 
	 

	 	 	 	CEO	 	 
	 
	 	 	 	 	 	 
	 	 	AGREED AND ACCEPTED:	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Todd Headley	 	 
	 	 	 	 	 
	Date March 28, 2003	 	Todd Headley	 	 

 

 

Nonstatutory Stock Option Grant Agreement

Under The

Sourcefire, Inc. 2002 Stock Incentive Plan

This Nonstatutory Stock Option Grant Agreement (this “Agreement”) is made as of April 18, 2003 (the
“Grant Date”) by and between (i) Sourcefire, Inc., a Delaware corporation (the “Company”), and (ii)
Todd Headley (“Optionee”).

     1. Terminology. All capitalized words that are not defined in this Agreement or in
the attached Stock Option Certificate have the meanings ascribed to them in the Plan. For purposes
of this Agreement, the terms below have the following meanings:

          (a) “Cause” has the meaning ascribed to such term or words of similar import in the Optionee’s
written employment or service contract with the Company and, in the absence of such agreement or
definition, means the Optionee’s (i) conviction of, or plea of nolo contendere to, a felony or
crime involving moral turpitude; (ii) fraud on or misappropriation of any funds or property of the
Company, any affiliate, customer or vendor; (iii) personal dishonesty, incompetence, willful
misconduct, willful violation of any law, rule or regulation (other than minor traffic violations
or similar offenses), or breach of fiduciary duty which involves personal profit; (iv) willful
misconduct in connection with the Optionee’s duties or willful failure to perform the Optionee’s
responsibilities in the best interests of the Company; (v) chronic use of alcohol, drugs or other
similar substances which affects the Optionee’s work performance; (vi) violation of any Company
rule, regulation, procedure or policy; or (vii) breach of any provision of any employment,
non-disclosure, non-competition, non-solicitation or other similar agreement executed by the
Optionee for the benefit of the Company, all as determined by the Administrator, which
determination will be conclusive.

          (b) “Change in Control” means: (i) the acquisition (other than from the Company) in one or more
transactions by any Person, as defined in this Section 1(b), of the beneficial ownership (within
the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended) of 50%
or more of (A) the then outstanding shares of the securities of the Company, or (B) the combined
voting power of the then outstanding securities of the Company entitled to vote generally in the
election of directors (the “Company Voting Stock”); (ii) the closing of a sale or other conveyance
of all or substantially all of the assets of the Company; or (iii) the effective time of any
merger, share exchange, consolidation, or other business combination of the Company if immediately
after such transaction persons who hold a majority of the outstanding voting securities entitled to
vote generally in the election of directors of the surviving entity (or the entity owning 100% of
such surviving entity) are not persons who, immediately prior to such transaction, held the Company
Voting Stock; provided, however, that a Change in Control shall not include (Y) a
public offering of capital stock of the Company or (Z) any transaction pursuant to which shares of
capital stock of the Company are transferred or issued to any trust, charitable organization,
foundation, family partnership or other entity controlled directly or indirectly by, or established
for the benefit of, Martin Roesch or his immediate family members (including spouses, children,
grandchildren, parents, and siblings, in each case to include adoptive relations), or transferred
to any such immediate family members. For purposes of this Section 1(b), a “Person” means any
individual, entity or group within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934, as amended, other than: employee benefit plans sponsored or maintained by the
Company and corporations controlled by the Company.

          (c) “Company” includes Sourcefire, Inc. and its Affiliates, except where the context otherwise
requires.

          (d) “Option Shares” mean the shares of Common Stock underlying the Options.

 

 

          (e) “Total and Permanent Disability” means the inability to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment which can be
expected to result in death or which has lasted or can be expected to last for a continuous period
of not less than twelve months. The Administrator may require such proof of Total and Permanent
Disability as the Administrator in its sole discretion deems appropriate and the Administrator’s
good faith determination as to whether the Optionee is totally and permanently disabled will be
final and binding on all parties concerned.

     2. Vesting.

          (a) The Options vest in accordance with the vesting schedule identified in the Stock Option
Certificate attached to this Agreement and constitutes a part of the Agreement (the “Vesting
Schedule”), so long as the Optionee is in the continuous employ of, or in a service relationship
with, the Company from the Grant Date through the applicable date upon which vesting is scheduled
to occur. No vesting will accrue to any Options after the Optionee ceases to be in either an
employment or other service relationship with the Company, except as provided otherwise in this
Agreement.

          (b) Unless the Options have earlier terminated, if before the Optionee has vested in any
Options, his or her employment or other service relationship with the Company terminates due to
death or Total and Permanent Disability, then as of such termination a number of Options will be
vested equal to (i) the total number of Options granted under this Agreement as specified on the
Stock Option Certificate, multiplied by (ii) 25%, multiplied by (iii) a fraction, the numerator of
which is the total number of days measured from the Optionee’s Vesting Start Date (as defined in
the Stock Option Certificate) to the date that the employment or other service relationship ceased
and the denominator of which is 365.

     3. Exercise of Options.

          (a) Right to Exercise. The Optionee may exercise the Options to the extent vested at
any time on or before the Expiration Date or the earlier termination of the Options, unless
otherwise provided in this Agreement. Section 4 below describes certain limitations on exercise of
the Options that apply in the event of the Optionee’s death, Total and Permanent Disability, or
termination of employment or other service relationship with the Company. The Options may be
exercised only in multiples of whole shares and may not be exercised at any one time as to fewer
than one hundred shares (or such lesser number of shares as to which the Options are then
exercisable). No fractional shares will be issued under the Options.

          (b) Exercise Procedure. In order to exercise the Options, the following items must be
delivered to the Secretary of the Company before the expiration or termination of the Options: (i)
an exercise notice, in such form as the Administrator may require from time to time, specifying the
number of Option Shares to be purchased, (ii) full payment of the Exercise Price for such Option
Shares or properly executed, irrevocable instructions, in such form as the Administrator may
require from time to time, to effectuate a broker-assisted cashless exercise, each in accordance
with Section 3(c) of this Agreement, and (iii) an executed copy of any other agreements requested
by the Administrator pursuant to Section 3(d) of this Agreement. An exercise will not be effective
until all of the foregoing items are received by the Secretary of the Company.

          (c) Method of Payment. Payment of the Exercise Price may be made by delivery of cash,
certified or cashier’s check, money order or other cash equivalent acceptable to the Administrator
in its discretion, a broker-assisted cashless exercise in accordance with Regulation T of the Board
of Governors of the Federal Reserve System through a brokerage firm approved by the Administrator,
or a combination of the foregoing. In addition, payment of the Exercise Price may be made by any
other method approved by the Administrator.

          (d) Agreement by Optionee to Execute Other Agreements. The Optionee hereby agrees
to execute, as a condition precedent to the exercise of the Options and at any time thereafter as

 

 

may reasonably be requested by the Administrator, a Stock Restriction Agreement, substantially in
the form, and containing the terms and provisions, of the Stock Restriction Agreement attached
hereto as Exhibit A, with respect to any Option Shares acquired by the Optionee pursuant to
this Agreement; provided, however, that execution of the Stock Restriction
Agreement will not be required upon any exercise of the Options that occurs after the closing of
the first public offering of capital stock of the Company that is effected pursuant to a
registration statement filed with, and declared effective by, the Securities and Exchange
Commission under the Securities Act of 1933 (the “Securities Act”) or, if later, the expiration of
any market stand-off agreement that applies to other shareholders of the Company respecting such
public offering of capital stock.

          (e) Issuance of Shares upon Exercise. Upon exercise of the Options in accordance with
the terms of this Agreement, the Company will issue to the Optionee, the brokerage firm specified
in the Optionee’s delivery instructions pursuant to a broker-assisted cashless exercise, or such
other person exercising the Options, as the case may be, the number of shares of Common Stock so
paid for, in the form of fully paid and nonassessable stock. The Company will deliver stock
certificates for the Option Shares as soon as practicable after exercise, which certificates will,
unless such Option Shares are registered or an exemption from registration is available under
applicable federal and state law, bear a. legend restricting transferability of such shares and
referencing any applicable Stock Restriction Agreement.

     4. Termination of Employment or Service.

          (a) Exercise Period Following Cessation of Employment or Other Service
Relationship, In General. If the Optionee ceases to be employed by, or in a service
relationship with, the Company for any reason other than death, Total and Permanent Disability,
voluntary resignation or discharge for Cause, (i) the unvested Options, after giving effect to
the provisions of Section 2 of this Agreement, terminate immediately upon such cessation, and (ii)
the vested Options remain exercisable during the 30-day period following such cessation, but in no
event after the Expiration Date. Unless sooner terminated, the vested Options automatically
terminate upon the expiration of such 30-day period.

          (b) Disability of Optionee. Notwithstanding the provisions of Section 4(a) above, if
the Optionee ceases to be employed by, or in a service relationship with, the Company as a result
of the Optionee’s Total and Permanent Disability, (i) the unvested Options, after giving effect to
the provisions of Section 2 of this Agreement, terminate immediately upon such cessation, and (ii)
the vested Options remain exercisable during the six-month period following such cessation, but in
no event after the Expiration Date. Unless sooner terminated, the vested Options automatically
terminate upon the expiration of such six-month period.

          (c) Death of Optionee. If the Optionee dies prior to the expiration or other
termination of the Options, (i) the unvested Options, after giving effect to the provisions of
Section 2 of this Agreement, terminate immediately upon the Optionee’s death, and (ii) the vested
Options remain exercisable during the six-month period following the Optionee’s death, but in no
event after the Expiration Date, by the Optionee’s executor, personal representative, or the
person(s) to whom the Options are transferred by will or the laws of descent and distribution.
Unless sooner terminated, the vested Options automatically terminate upon the expiration of such
six-month period.

          (d) Voluntary Resignation/Misconduct. Notwithstanding anything to the contrary in
this Agreement, the Options terminate in their entirety, regardless of whether the Options are
vested, immediately upon the Optionee’s voluntary resignation of employment or other service
relationship, upon the Optionee’s discharge of employment or other service relationship for Cause
or upon the Optionee’s commission of any of the following acts during any period following the
cessation of employment or other
service relationship during which the Options otherwise would be exercisable: (i) fraud on or
misappropriation of any funds or property of the Company, or (ii) breach by the Optionee of any
provision of any employment, non-disclosure, non-competition, non-solicitation, assignment of
inventions, or other similar agreement executed by the Optionee for the benefit of the Company, as
determined by the Administrator, which determination will be conclusive.

 

 

     5. Market Stand-Off Agreement. The Optionee agrees that following the effective
date of a registration statement of the Company filed under the Securities Act, the Optionee, for
the duration specified by and to the extent requested by the Company and an underwriter of Common
Stock or other securities of the Company, shall not offer, sell, contract to sell, pledge or
otherwise dispose of, directly or indirectly, any equity securities of the Company, or any
securities convertible into or exchangeable or exercisable for such securities, enter into a
transaction which would have the same effect, or enter into any swap, hedge or other arrangement
that transfers, in whole or in part, any of the economic consequences of ownership of such
securities, whether any such aforementioned transaction is to be settled by delivery of such
securities or other securities, in cash or otherwise, or publicly disclose the intention to make
any such offer, sale, pledge or disposition, or to enter into any such transaction, swap, hedge or
other arrangement, in each case during the seven days prior to and the 180 days after the
effectiveness of any underwritten offering of the Company’s equity securities (or such longer or
shorter period as may be requested in writing by the managing underwriter and agreed to in writing
by the Company) (the “Market Stand-Off Period”), except as part of such underwritten registration
if otherwise permitted. In addition, the Optionee agrees to execute any further letters,
agreements and/or other documents requested by the Company or its underwriters which are consistent
with the terms of this Section 5. The Company may impose stop-transfer instructions with respect to
securities subject to the foregoing restrictions until the end of such Market Stand-Off Period.

     6. Nontransferability of Options. These Options are nontransferable otherwise than by
will or the laws of descent and distribution and during the lifetime of the Optionee, the Options
may be exercised only by the Optionee or, during the period the Optionee is under a legal
disability, by the Optionee’s guardian or legal representative. Except as provided above, the
Options may not be assigned, transferred, pledged, hypothecated or disposed of in any way (whether
by operation of law or otherwise) and shall not be subject to execution, attachment or similar
process.

     7. Termination of Options/Recapture Payment. The Options are granted
as consideration for, and contingent upon, the Optionee becoming a party to the Company’s
Assignment of Inventions, Non-Disclosure, Non-Solicitation and Non-Competition Agreement or any
successor agreement thereto (the “Assignment Agreement”). The Optionee further recognizes and
acknowledges that it would be difficult to ascertain the damages arising from a violation of the
covenants set forth in the Assignment Agreement. Accordingly, notwithstanding anything herein to
the contrary, if the Administrator or its delegate, in its sole discretion, determines that the
Optionee has engaged in any activity that contravenes the covenants set forth in the Assignment
Agreement, the Optionee agrees that the following shall occur:

	 	(i)	 	The Options will terminate effective on the date on which such determination is
made, regardless of whether the Options are vested in whole or in part, unless
terminated sooner by operation of another provision of this Agreement; and
	 
	 	(ii)	 	With respect to any Common Stock acquired by the Optionee through the exercise of
the Options within three months before the Optionee’s termination of employment or at
any time after the Optionee’s termination of employment (the “Recapture Shares”), the
Optionee agrees to pay to the Company, within 30 days of when the Company delivers
written notice to the Optionee, a “Recapture
Payment”. The Recapture Payment may be paid
in cash, Recapture Shares, or a combination of cash or Recapture Shares. In the event
that the Optionee holds Recapture Shares on the date that he or she is determined to
have violated the covenants in the Assignment Agreement, the Administrator may demand
that the Recapture Payment be made by tendering the Recapture Shares. If paid in cash,
the Recapture Payment shall be an amount equal to the excess of the aggregate Fair
Market Value of the shares on the exercise date over the Exercise Price paid by the
Optionee to acquire the Recapture Shares. If paid in Recapture Shares, the Recapture
Payment shall be paid by the Optionee delivering to the Company share certificates
evidencing the Recapture Shares, together with a stock

 

 

	 	 	 	power, endorsed in blank. As soon as practicable after receipt of the stock certificates
and stock power properly endorsed, the Company will pay to the Optionee the lower of (A)
the aggregate Exercise Price paid by the Optionee to acquire the Recapture Shares for
which the stock certificates have been delivered to the Company or (B) the Fair Market
Value of such Recapture Shares at that time.

Nothing in this Section will be construed as prohibiting the Company from pursuing any other
remedies available to it for such breach or threatened breach, including the recovery of any
damages set forth in this Agreement and that it may additionally prove, and all remedies will be
cumulative and not affirmative.

     8. Coordination With Other Agreements. To the extent that the Optionee is a party to
any agreement with the Company that contains the same or similar covenants as those set forth in
the Assignment Agreement (hereinafter referred to as the “Other Agreement”), the Optionee and the
Company expressly agree that any remedy available to the Company under this Agreement or the
Assignment Agreement is in addition to, and does not limit the enforceability of, any remedy
available to the Company under such Other Agreement.

     9. Nonstatutory Nature of the Options. The Options are not intended to qualify
as incentive stock options within the meaning of Code section 422, and this Agreement shall be so
construed. The Optionee acknowledges that, upon exercise of the Options, the Optionee will
recognize taxable income in an amount equal to the excess of the then Fair Market Value of the
Option Shares over the Exercise Price and must comply with the provisions of Section 10 of this
Agreement with respect to any tax withholding obligations that arise as a result of such exercise.

     10. Withholding of Taxes. At the time the Options are exercised, in whole or in
part, or at any time thereafter as requested by the Company, the Optionee hereby authorizes
withholding from payroll or any other payment of any kind due the Optionee and otherwise agrees to
make adequate provision for foreign, federal, state and local taxes required by law to be
withheld, if any, which arise in connection with the Options. The Company may require the Optionee
to make a cash payment to cover any withholding tax obligation as a condition of exercise of the
Options or issuance of share certificates representing Option Shares.

     The Administrator may, in its sole discretion, permit the Optionee to satisfy, in whole or in
part, any withholding tax obligation which may arise in connection with the Options either by
electing to have the Company withhold from the shares to be issued upon exercise that number of
shares, or by electing to deliver to the Company already-owned shares, in either case having a
Fair Market Value equal to the amount necessary to satisfy the statutory minimum withholding
amount due.

     11. Adjustments for Corporate Transactions and Other Events.

          (a)
Stock Dividend, Stock Split and Reverse Stock Split. Upon a stock dividend of, or
stock split or reverse stock split affecting, the Common Stock, the number of shares covered by and
the exercise price and other terms of the Options, shall, without further action of the Board, be
adjusted to reflect such event unless the Board determines, at the time it approves such stock
dividend, stock split or reverse stock split, that no such adjustment shall be made. The
Administrator may make adjustments, in its discretion, to address the treatment of fractional
shares and fractional cents that arise with respect to the Options as a result of the stock
dividend, stock split or reverse stock split.

          (b) Non-Change in Control Transactions. Except with respect to the transactions set
forth in Section 11(a), in the event of any change affecting the Common Stock, the Company or its
capitalization, by reason of a spin-off, split-up, dividend, recapitalization, merger,
consolidation or share exchange, other than any such change that is part of a transaction resulting
in a Change in Control, the Administrator, in its discretion and without the consent of the
Optionee, shall make any adjustments in the Options, including but not limited to modifying the
number, kind and price of securities subject to the Options.

 

 

          (c) Change in Control Transactions. Unless otherwise set forth in the Stock Option
Certificate, in the event of any transaction resulting in a Change in Control, the Options will
terminate upon the effective time of any such Change in Control unless provision is made in
connection with the transaction in the sole discretion of the parties thereto for the continuation
or assumption of the Options, or the substitution of the Options with new options of the surviving
or successor entity or a parent thereof. In the event of such termination, the Optionee will be
permitted, for a period of at least twenty days prior to the effective time of the Change in
Control, to exercise all portions of such Options that are then exercisable or which become
exercisable upon or prior to the effective time of the Change in Control.

          (d) Adjustments for Unusual Events. The Administrator is authorized to make, in its
discretion and without the consent of the Optionee, adjustments in the terms and conditions of,
and the criteria included in, the Options in recognition of unusual or nonrecurring events
affecting the Company, or the financial statements of the Company or any Affiliate, or of changes
in applicable laws, regulations, or accounting principles, whenever the Administrator determines
that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits
or potential benefits intended to be made available under the Options or the Plan.

          (e) Binding Nature of Adjustments. Adjustments under this Section 11 will be made by
the Administrator, whose determination as to what adjustments, if any, will be made and the extent
thereof will be final, binding and conclusive. No fractional shares will be issued pursuant to the
Options on account of any such adjustments. The terms and conditions of this Agreement shall apply
with equal force to any additional and/or substitute securities received by the Optionee pursuant
to this Section 11 in exchange for, or by virtue of the Optionee’s ownership of, the Options or
the Option Shares, except as otherwise determined by the Administrator.

     12. Confidential Information. In consideration of the Options granted to the
Optionee pursuant to this Agreement, the Optionee agrees and covenants that, except as
specifically authorized by the Company, the Optionee will keep confidential any trade secrets or
confidential or proprietary information of the Company which are now or which hereafter may become
known to the Optionee as a result of the Optionee’s employment by or other service relationship
with the Company, and shall not at any time, directly or indirectly, disclose any such information
to any person, firm, company or other entity, or use the same in any way other than in
connection with the business of the Company, at all times during and after the Optionee’s
employment or other service relationship. The provisions of this Section 12 shall not narrow or
otherwise limit the obligations and responsibilities of the Optionee set forth in any agreement of
similar import entered into between the Optionee and the Company.

     13. Non-Guarantee of Employment or Service Relationship. Nothing in the Plan or this
Agreement shall alter the at-will or other employment status or other service relationship of the
Optionee, nor be construed as a contract of employment or service relationship between the Company
and the Optionee, or as a contractual right of Optionee to continue in the employ of, or in a
service relationship with, the Company for any period of time, or as a limitation of the right of
the Company to discharge the Optionee at any time with or without cause or notice and whether or
not such discharge results in the failure of any Options to vest or any other adverse effect on the
Optionee’s interests under the Plan.

     14. No Rights as a Stockholder. The Optionee shall not have any of the rights of a
stockholder with respect to the Option Shares until such shares have been issued to him or her upon
the due exercise of the Options. No adjustment shall be made for dividends or distributions or
other rights for which the record date is prior to the date such shares are issued.

     15. The Company’s Rights. The existence of the Options shall not affect in any way the
right or power of the Company or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company’s capital structure or its
business, or any merger or consolidation of the Company, or any issue of bonds, debentures,
preferred or other stocks with preference ahead of or convertible into, or otherwise affecting the
Common Stock or the rights thereof, or the dissolution or liquidation of the Company, or any sale
or transfer of all or any part of the

 

 

Company’s assets or business, or any other corporate act or proceeding, whether of a similar
character or otherwise.

     16. Optionee. Whenever the word “Optionee” is used in any provision of this
Agreement under circumstances where the provision should logically be construed, as determined by
the Administrator, to apply to the estate, personal representative, or beneficiary to whom the
Options may be transferred by will or by the laws of descent and distribution, or another permitted
transferee, the word “Optionee” shall be deemed to include such person.

     17. Notices. All notices and other communications made or given pursuant to this
Agreement shall be in writing and shall be sufficiently made or given if hand delivered or mailed
by certified mail, addressed to the Optionee at the address contained in the records of the
Company, or addressed to the Administrator, care of the Company for the attention of its Corporate
Secretary at its principal office or, if the receiving party consents in advance, transmitted and
received via telecopy or via such other electronic transmission mechanism as may be available to
the parties.

     18. Entire Agreement: Additional Grants. This Agreement contains the entire
agreement between the parties with respect to the Options granted hereunder. Any and all prior
agreements between the parties hereto with respect to the subject matter of this Agreement are
hereby revoked. This Agreement is, and is intended by the parties to be, an integration of any and
all prior agreements or understandings, oral or written, with respect to the Option and the Option
Shares. The terms and conditions of this Agreement shall apply to any and all future grants of
options to Optionee pursuant to the Plan and the term “Grant Date” shall refer to each such
subsequent grant date. Any such future grants and acceptance thereof shall be evidenced by the
completion, execution and attachment to this Agreement of an additional Stock Option Certificate,
in the form provided by the Company, which shall be incorporated herein by reference.

     19. Invalidity
or Unenforceability. It is the intention of the Company and the
Optionee that this Agreement shall be enforceable to the fullest extent allowed by law. In the
event that a court having jurisdiction holds any provision of this Agreement to be invalid or
unenforceable, in whole or in part, the Company and the Optionee
agree that, if allowed by law, that
provision shall be reduced to the degree necessary to render it valid and enforceable without
affecting the rest of this Agreement.

     20. Waiver. No delay or omission by the Company in exercising any right under this
Agreement shall operate as a waiver of that or any other right. A waiver or consent given by the
Company on any one occasion shall be effective only in that instance and shall not be construed as
a bar or waiver of any right on any other occasion.

     21. Amendment. This Agreement may be amended from time to time by the Administrator in
its discretion; provided, however, that this Agreement may not be modified in a manner that
would have a materially adverse effect on the Options or Option Shares as determined in the
discretion of the Administrator, except as provided in the Plan or in a written document signed by
each of the parties hereto.

     22. Conformity with Plan. This Agreement is intended to conform in all respects with,
and is subject to all applicable provisions of, the Plan. Inconsistencies between this Agreement
and the Plan shall be resolved in accordance with the terms of the Plan. In the event of any
ambiguity in this Agreement or any matters as to which this Agreement is silent, the Plan shall
govern. A copy of the Plan is provided to you with this Agreement.

     23. Governing Law. The validity, construction and effect of this Agreement, and of any
determinations or decisions made by the Administrator relating to this Agreement, and the rights of
any and all persons having or claiming to have any interest under this Agreement, shall be
determined exclusively in accordance with the laws of the State of Maryland, without regard to its
provisions concerning the applicability of laws of other jurisdictions. Any suit with respect
hereto will be brought in

 

 

the federal or state courts in the districts which include the city and state in which the
principal offices of the Company are located, and the Optionee hereby agrees and submits to the
personal jurisdiction and venue thereof.

     24. Headings. The headings in this Agreement are for reference purposes only and
shall not affect the meaning or interpretation of this Agreement.

     IN WITNESS WHEREOF, the Corporation and Optionee have executed this Agreement, as of the date
set forth above.

	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	SOURCEFIRE, INC., a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ E. Wayne Jackson
 

E. Wayne Jackson
	 	 
	 

	 	Title:
	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	OPTIONEE:	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Todd Headley	 	 
	 	 	 	 	 
	 	 	Signature
	 	 
	 

	 	Name:
	 	Todd Headley	 	 
	 

	 	Address:
	 	 	 	 

 

 

Sourcefire, Inc.
Stock Option Certificate

THIS
CERTIFIES THAT Todd Headley (the “Optionee”) has been awarded under the Sourcefire, Inc. 2002
Stock Incentive Plan (the “Plan”), nonstatutory stock options (each, an “Option” or collectively,
the “Options”) to purchase 172,000 shares of Common Stock, par value $0.001 per share (“Common
Stock”) of Sourcefire, Inc., a Delaware
corporation (the “Company”), at a price of $0.15 per share
(the “Exercise Price”). This Stock Option Certificate constitutes part of and is subject to the
terms and provisions of the Nonstatutory Stock Option Grant Agreement
(the “Agreement”) by and
between the Company and Optionee dated April 18, 2003, which this Stock Option Certificate is
attached to and made part of. Capitalized terms not defined in this Certificate shall have the
meanings ascribed to them in the Agreement.

Vesting Start Date: April 21, 2003

Grant Date: April 18, 2003

Expiration Date: The Options expire at 5:00 p.m. Eastern Time on the last business day
coincident with or prior to the tenth anniversary of the Grant Date (the “Expiration Date”),
unless fully exercised or terminated earlier.

Vesting Schedule: The Options vest and become exercisable in accordance with the vesting
schedule below, subject to the terms and conditions described in the Agreement:

	 	(a)	 	6.250% of the Options vest and become exercisable per quarter as measured from
the Optionee’s Vesting Start Date until
100% are vested and exercisable on the forth anniversary of the Vesting Start
Date, and
	 
	 	(b)	 	There is 100% acceleration of vesting of the Options in the event Optionee’s
employment is actually or constructively terminated without cause following a Change
in Control.

IN WITNESS WHEREOF, the Company has caused this Certificate to be executed by its duly authorized
officer on this 18th day of April, 2003.

	 	 	 	 	 	 	 
	 

	 	 	 	SOURCEFIRE, INC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ E. Wayne Jackson
 

	 	 

The undersigned hereby acknowledges that he/she has carefully read the Agreement and the Plan and
agrees that this Stock Option Certificate, together with the Agreement, shall govern the terms and
conditions of the Options, the Option Shares and the other subject matter of the Agreement,
subject to the provisions of the Plan. In the event of any conflict between the terms of this
Stock Option Certificate and the Agreement, the Agreement shall control.

	 	 	 	 	 	 	 
	 

	 	 	 	OPTIONEE	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ Todd Headley
 

Todd Headley
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Date: April 24, 2003	 	 

 

 

Exhibit A-2

Sourcefire, Inc.
Stock Option Certificate

THIS CERTIFIES THAT Todd Headley (the “Optionee”) has been awarded under the Sourcefire, Inc. 2002
Stock Incentive Plan (the “Plan”), nonstatutory stock options (each, an “Option” or collectively,
the “Options”) to purchase 40,000 shares of Common Stock, par value $0.001 per share (“Common
Stock”) of Sourcefire, Inc., a Delaware corporation (the “Company”), at a price of $1.00 per share
(the “Exercise Price”). This Stock Option Certificate constitutes part of and is subject to the
terms and provisions of the Nonstatutory Stock Option Grant Agreement (the “Agreement”) by and
between the Company and Optionee dated April 18, 2003, which this Stock Option Certificate is
attached to and made part of. Capitalized terms not defined in this Certificate shall have the
meanings ascribed to them in the Agreement.

Vesting Start Date: December 1, 2004

Grant Date: December 21, 2004

Expiration Date: The Options expire at 5:00 p.m. Eastern Time on the last business day
coincident with or prior to the tenth anniversary of the Grant Date (the “Expiration Date”),
unless fully exercised or terminated earlier.

Vesting Schedule: The Options vest and become exercisable in accordance with the vesting
schedule below, subject to the terms and conditions described in the Agreement:

	 	(a)	 	6.25% of the Options vest and become exercisable on the three month anniversary
of the Optionee’s Vesting Start Date (the “Initial Vesting Date”), and
	 
	 	(b)	 	6.25% of the Options vest and become exercisable on the date three months after
the Initial Vesting Date and on such date every three months thereafter, through the
fourth anniversary of the Vesting Start Date.
	 
	 	(c)	 	There is an acceleration of vesting in the Option in the event that both (i)
there is a Change in Control, and (ii) Mr. Headley’s employment is terminated
(actually or constructively) without Cause following such Change in Control. The
acceleration of vesting shall be in an amount which is the lesser of 50% of the
Option (20,000 shares) or vesting of the remaining unvested portion of the Option.

IN WITNESS WHEREOF, the Company has caused this Certificate to be executed by its duly authorized
officer on this 21st day of December, 2004.

	 	 	 	 	 	 	 
	 

	 	 	 	SOURCEFIRE, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ E. Wayne Jackson
 

E. Wayne Jackson, CEO
	 	 

The undersigned hereby acknowledges that he/she has carefully read the Agreement and the Plan and
agrees that this Stock Option Certificate, together with the Agreement, shall govern the terms and
conditions of the Options, the Option Shares and the other subject matter of the Agreement,
subject to the provisions of the Plan. In the event of any conflict between the terms of this
Stock Option Certificate and the Agreement, the Agreement shall control.

	 	 	 	 	 	 	 
	 

	 	 	 	OPTIONEE	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ Todd Headley
 

Todd Headley
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Date: 12/31/04	 	 

 

 

EXHIBIT A-3

Sourcefire, Inc.
Stock Option Certificate

THIS CERTIFIES THAT Todd Headley (the “Optionee”) has been awarded under the Sourcefire, Inc. 2002
Stock Incentive Plan (the “Plan”), nonstatutory stock options (each, an “Option” or collectively,
the “Options”) to purchase 38,000 shares of Common Stock, par value $0.001 per share (“Common
Stock”) of Sourcefire, Inc., a Delaware corporation (the “Company”), at a price of $1.25 per share
(the “Exercise Price”). This Stock Option Certificate constitutes part of and is subject to the
terms and provisions of the Nonstatutory Stock Option Grant Agreement (the “Agreement”) by and
between the Company and Optionee dated April 18, 2003, which this Stock Option Certificate is
attached to and made part of. Capitalized terms not defined in this Certificate shall have the
meanings ascribed to them in the Agreement.

Vesting Start Date: June 24, 2005

Grant Date: June 24, 2005

Expiration Date: The Options expire at 5:00 p.m. Eastern Time on the last business day
coincident with or prior to the tenth anniversary of the Grant Date (the “Expiration Date”),
unless fully exercised or terminated earlier.

Vesting Schedule: The Options vest and become exercisable in accordance with the vesting
schedule below, subject to the terms and conditions described in the Agreement:

	 	(a)	 	25% of the Options vest and become exercisable on the first anniversary of
the Optionee’s Vesting Start Date (the “Initial Vesting Date”), and
	 
	 	(b)	 	2.083% of the Options vest and become exercisable on the date one month after
the Initial Vesting Date and on such date every month thereafter, through the fourth
anniversary of the Vesting Start Date.
	 
	 	(c)	 	There is 100% acceleration of vesting of the Options in the event both (i) a
Change in Control (as defined in the Plan) and (ii) Optionee’s employment is
terminated without cause within one year of the Change of Control.

The extent to which the Options are vested and exercisable as of a particular vesting date is
rounded down to the nearest whole share. However, vesting is rounded up to the nearest whole share
on the fourth anniversary of the Grant Date.

IN WITNESS WHEREOF, the Company has caused this Certificate to be executed by its duly authorized
officer on June 24, 2005.

	 	 	 	 	 	 	 
	 

	 	 	 	SOURCEFIRE, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ E. Wayne Jackson
 

E. Wayne Jackson, CEO
	 	 

The undersigned hereby acknowledges that he/she has carefully read the Agreement and the Plan and
agrees that this Stock Option Certificate, together with the Agreement, shall govern the terms and
conditions of the Options, the Option Shares and the other subject matter of the Agreement,
subject to the provisions of the Plan. In the event of any conflict between the terms of this
Stock Option Certificate and the Agreement, the Agreement shall control.

	 	 	 	 	 	 	 
	 

	 	 	 	OPTIONEE	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ Todd Headley
 

Todd Headley
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Date: June 30, 2005

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