Document:

exv10w9

 

Exhibit 10.9

 

LOAN AND SECURITY AGREEMENT

by and between

SOURCEFIRE, INC.,

as Borrower

and

SILICON VALLEY BANK,

as Bank

November 29, 2002

 

 

 

LOAN AND SECURITY AGREEMENT

     THIS LOAN AND SECURITY AGREEMENT (this “Agreement”) dated November 29, 2002, between
SILICON-VALLEY BANK (“Bank”), whose address is 3003 Tasman Drive, Santa Clara, California, 95054,
and having a loan production office at 11600 Sunrise Valley Drive, Suite 400, Reston, Virginia,
20191, and SOURCEFIRE, INC., a corporation organized and in good standing in the State of Delaware
(“Borrower”), whose address is 7095 Samuel Morse Drive, Suite 100, Columbia, Maryland, 21046,
provides the terms on which Bank will lend to Borrower and Borrower will repay Bank. The parties
agree as follows:

1. ACCOUNTING AND OTHER TERMS

     Accounting
terms not defined in this Agreement will be construed following GAAP.
Calculations and determinations must be made following GAAP. The term “financial statements”
includes the notes and schedules. The terms “including” and “includes” always mean “including (or
includes) without limitation,” in this or any Loan Document.

2. LOAN AND TERMS OF PAYMENT

2.1 Promise to Pay.

     Borrower promises to pay Bank the unpaid principal amount of all Credit Extensions and
interest on the unpaid principal amount of the Credit Extensions.

2.1.1
Revolving Advances.

     (a) Bank
will make Advances not exceeding the lesser of (i) the Committed Revolving Line minus
all amounts for services utilized under the Cash Management Services Sublimit or (ii) the Borrowing
Base, it being understood that the Cash Management Services Sublimit will be available without
respect to the amount of the Borrowing Base. Amounts borrowed under this Section may be repaid
and reborrowed during the term of this Agreement. All advances shall be evidenced by the
Revolving Promissory Note to be executed and delivered by Borrower to Bank on the Closing Date and
shall be repaid in accordance with the terms of the Revolving Promissory Note.

     (b) To obtain an Advance, Borrower must notify Bank by facsimile or telephone by 3:00 p.m.
Eastern time on the Business Day the Advance is to be made. Borrower must promptly confirm the
notification by delivering to Bank the Payment/Advance Request Form attached as Exhibit B
(the “Payment/Advance Form”). Bank will credit Advances to Borrower’s deposit account. Bank may
make Advances under this Agreement based on instructions from a Responsible Officer or his or her
designee or without instructions if the Advances are necessary to meet Obligations which have
become due. Bank may rely on any telephone notice given by a person whom Bank reasonably believes
is a Responsible Officer or designee. Borrower will indemnify Bank for any loss Bank suffers due to
such reliance.

     (c) The Committed Revolving Line terminates on the Revolving Maturity Date, when all Advances
are immediately payable.

     (d) Bank’s obligation to lend the undisbursed portion of the Obligations will terminate if, in
Bank’s sole discretion, there has been a material adverse change in the general affairs,
management, results of operation, condition (financial or otherwise) or the prospect of repayment
of the Obligations, or there has been any material adverse deviation by Borrower from the most
recent business plan of Borrower presented to and accepted by Bank prior to the execution of this
Agreement.

2.1.2 Cash Management Services Sublimit.

     Borrower may use up to Fifty Thousand and no/100 Dollars ($50,000.00) of the Committed
Revolving Line for Bank’s Cash Management Services, which may include merchant services, direct
deposit of payroll, business credit card, and check cashing services identified in various cash
management services agreements related to such services (the “Cash Management Services”). Such
aggregate amounts utilized under the Cash Management Services Sublimit will at all times reduce
the amount otherwise available to be borrowed under the Committed Revolving Line, but are not
subject to the Borrowing Base. Any amounts Bank pays on behalf of Borrower or any amounts that are
not paid by Borrower for any Cash Management Services will be treated as Advances under the
Committed Revolving Line and will accrue interest at the rate for Advances.

 

 

2.1.3 Equipment Advances.

     (a) Through June 30, 2003 (the “Equipment Availability End Date”), Bank will make advances
(“Equipment Advance” and, collectively, “Equipment Advances”) not exceeding the Committed Equipment
Line. The Equipment Advances may only be used to finance or refinance Eligible Equipment or Other
Equipment purchased on or after ninety (90) days before the date of each Equipment Advance;
provided, however, that if the first Equipment Advance is made within thirty (30) days of the
Closing Date, it may be used to finance or refinance Eligible Equipment purchased after January 1,
2002. Equipment Advances may not exceed one hundred percent (100%) of the invoice for Eligible
Equipment, excluding taxes, shipping, warranty charges, freight discounts and installation expense.
Other Equipment may constitute up to twenty-five percent (25%) of the aggregate amount of all
Equipment Advances. Each Equipment Advance must be for a minimum of One Hundred Thousand and
no/100 Dollars ($100,000.00). The number of Equipment Advances is limited to eight (8).

     (b) Interest accrues from the date of each Equipment Advance at the Borrower’s option at
either the Prime Rate Option or the Fixed Rate Option (as defined in Section 2.3(a)).

     (c) Equipment Advances for Eligible Equipment are repayable as follows:

     (i) Equipment Advances for Eligible Equipment which accrue interest at the Prime Rate
Option (“Prime Rate Equipment Advances”) are payable in thirty (30) equal monthly
installments of principal, plus accrued interest on the first day of each month commencing
on the first day of the first month after each Funding Date (as hereinafter defined);

     (ii) Equipment Advances for Eligible Equipment which accrue interest at the Fixed
Rate Option (“Fixed Rate Equipment Advances”) are payable in thirty (30) equal monthly
installments of principal and accrued interest, on the first day of each month commencing
on the first day of the first month after each Funding Date;

     (iii) Prime Rate Equipment Advances for Other Equipment are payable in twenty-four
(24) equal monthly installments of principal, plus accrued interest, on the first day of
each month commencing on the first day of the first month after each Funding Date; and

     (iv) Fixed Rate Equipment Advances for Other Equipment are payable in twenty-four
(24) equal monthly installments of principal and accrued interest, on the first day of
each month commencing on the first day of the first month after each Funding Date.

     (d) Equipment Advances shall be evidenced by the Equipment Term Note to be executed and
delivered by Borrower to Bank on the Closing Date. Equipment Advances when repaid may not be
reborrowed.

     (e) To obtain an Equipment Advance, Borrower at least three (3) Business Days prior to the
proposed funding date (the “Funding Date”) will deliver to Bank a Payment Advance form in the form
of Exhibit B (Payment/Advance Form) and a Loan Supplement in
the form of Exhibit E,
together with copies of invoices for the Eligible Equipment and Other Equipment, and which Loan
Supplement will indicate whether the Equipment Advance will accrue interest at the Prime Rate
Option or the Fixed Rate Option (both as hereinafter defined), together with a UCC Financing
Statement, if requested by Bank, covering the Equipment described on the Payment/Advance Form, and
such additional information as Bank may request. The notice must be signed by a Responsible
Officer or designee. If Borrower satisfies the conditions of each Equipment Advance specified
herein, Bank will disburse such Equipment Advance by internal transfer to Borrower’s deposit
account with Bank.

2.2 Overadvances.

     If Borrower’s Obligations under Sections 2.1.1, and 2.1.2 exceed the lesser of either (i) the
Committed Revolving Line or (ii) the Borrowing Base, Borrower shall immediately pay Bank the
excess.

2.3 Interest Rate, Payments.

     (a) Interest
Rate. (i) Advances on the Committed Revolving Line accrue interest on
the outstanding principal balance in accordance with the Revolving Promissory Note at a per annum
rate of one (1) percentage point above the Prime Rate; and (ii) Equipment Advances accrue interest
at a per

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annum rate, at the Borrower’s option at the time of each Equipment Advance, of either (A) one and
one-half (1.50) percentage points above the Prime Rate (the “Prime Rate Option”), or (B) fixed at
seven percent (7.0%) (the “Fixed Rate Option”). After and during the occurrence of an Event of
Default, Obligations accrue interest at five percent (5%) above the rate effective immediately
before the Event of Default. The interest rate increases or decreases when the Prime Rate changes.
Interest is computed on a 360 day year for the actual number of days elapsed.

     (b) Payments. Accrued interest due on the Committed Revolving Line is payable on the
fifth (5th) day of each month. Accrued interest due on all Equipment Advances is
payable on the first (1st) of each month, Bank may debit any of Borrower’s deposit
accounts including Account Number                      for principal and interest payments owing or any amounts Borrower owes
Bank. Bank will promptly notify Borrower when it debits Borrower’s accounts. These debits are not
a set-off. Payments received after 12:00 noon Eastern time are considered received at the opening
of business on the next Business Day. When a payment is due on a day that is not a Business Day,
the payment is due the next Business Day and additional fees or interest accrue.

2.4 Fees.

     Borrower will pay:

     (a) Facility
Fee. (i) A fully earned and non-refundable fee on the Committed
Revolving Line in the amount of Ten Thousand and no/100 Dollars ($10,000.00), Five Thousand and
no/100 Dollars ($5,000) of which has already been paid to Bank; and (ii) a fully earned and
non-refundable fee on the Committed Equipment Line in the amount of Five Thousand and no/100
Dollars ($5,000.00).

     (b) Bank Expenses. All Bank Expenses (including reasonable attorneys’ fees and
reasonable expenses) incurred through and after the date of this Agreement, are payable when due.

3. CONDITIONS OF LOANS

3.1 Conditions Precedent to Initial Credit Extension.

     Bank’s obligation to make the initial Credit Extension is subject to the condition precedent
that it receive the agreements, documents and fees it requires.

3.2 Conditions Precedent to First Advance Under Committed Revolving Line.

     Bank’s obligation to make first Advance under the Committed Revolving Line is subject to the
condition precedent that it have performed an audit of Borrower’s Books and the Collateral, and
that the results of said audit are satisfactory to Bank.

3.3 Conditions Precedent to all Credit Extensions.

     Bank’s obligations to make each Credit Extension, including the Initial Credit Extension, is
subject to the following:

     (a) timely receipt of any Payment/Advance Form; and

     (b) the representations and warranties in Section 5 must be true on the date of the
Payment/Advance Form and on the effective date of each Credit Extension and no Event of Default may
have occurred and be continuing, or result from the Credit Extension. Each Credit Extension is
Borrower’s representation and warranty on that date that the representations and warranties of
Section 5 remain true.

4. CREATION OF SECURITY INTEREST

4.1 Grant of Security Interest.

     Borrower grants Bank a continuing security interest in all presently existing and later
acquired Collateral to secure all Obligations and performance of each of Borrower’s duties under
the Loan Documents. Except for Permitted Liens, any security interest will be a first priority
security interest in the Collateral. Bank upon the occurrence and during the continuance of any
Event of Default, may place a “hold” on any deposit account of Borrower maintained with Bank or
any Affiliate of Bank. If this Agreement

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is terminated, Bank’s lien and security interest in the Collateral will continue until
Borrower fully satisfies its Obligations.

4.2 Authorization to File.

     Borrower authorizes Bank to file financing statements without notice to Borrower, with
all appropriate jurisdictions, as Bank deems appropriate, in order to perfect or protect Bank’s interest in the Collateral.

5. REPRESENTATIONS AND WARRANTIES

     Borrower represents and warrants as follows:

5.1 Due Organization and Authorization.

     Borrower and each Subsidiary is duly existing and in good standing in the State of Delaware
and qualified and licensed to do business in, and in good standing in, any state in which the
conduct of its business or its ownership of property requires that it be qualified, except where
the failure to do so could not reasonably be expected to cause a Material Adverse Change.
Borrower’s exact legal name is as set forth on the first page of
this Agreement. The execution,
delivery and performance of the Loan Documents have been duly authorized, and do not conflict
with Borrower’s formation documents, nor constitute an event of default under any material
agreement by which Borrower is bound. Borrower is not in default under any agreement to which, or
by which it is bound, in which the default could reasonably be expected to cause a Material
Adverse Change.

5.2 Collateral.

     Borrower has good title to the Collateral, free of Liens except Permitted Liens. The
Eligible Accounts are bona fide, existing obligations, and the service or property has been
performed or delivered to the account debtor or its agent for immediate shipment to and
unconditional acceptance by the account debtor. Borrower has no notice of any actual or imminent
Insolvency Proceeding of any account debtor whose accounts are an Eligible Account in any
Borrowing Base Certificate. All Inventory is in all material respects of good and marketable
quality, free from material defects. Borrower is the sole owner of the Intellectual Property,
except for non-exclusive licenses granted to its customers in the ordinary course of business.
Each Patent is valid and enforceable and no material part of the Intellectual Property has been
judged invalid or unenforceable, in whole or in part, other than those parts no longer used or
deemed useful by Borrower in the ordinary course of its business, and no claim has been made that
any part of the Intellectual Property violates the rights of any third party, except to the
extent such claim could not reasonably be expected to cause a Material Adverse Change.

5.3 Litigation.

     There are no actions or proceedings pending or, to the knowledge of Borrower’s Responsible
Officers, threatened by or against Borrower or any Subsidiary in
which a likely adverse decision
could reasonably be expected to cause a Material Adverse Change.

5.4 No Material Adverse Change in Financial Statements.

     All consolidated financial statements for Borrower, and any Subsidiary, delivered to Bank
fairly present in all material respects Borrower’s consolidated financial condition and Borrower’s
consolidated results of operations. There has not been any material deterioration in Borrower’s
consolidated financial condition since the date of the most recent consolidated financial
statements submitted to Bank.

5.5 Solvency.

     The fair salable value of Borrower’s assets (including goodwill minus disposition costs)
exceeds the fair value of its liabilities; the Borrower is not left with unreasonably small
capital after the transactions in this Agreement or any of the Loan Documents; and Borrower is
able to pay its debts (including trade debts) as they mature.

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5.6 Regulatory Compliance.

     Borrower
is not an “investment company” or a company “controlled” by an “investment
company” under the Investment Company Act. Borrower is not engaged as one of its important
activities in extending credit for margin stock (under Regulations T and U of the Federal Reserve
Board of Governors). Borrower has complied in all material respects with the Federal Fair Labor
Standards Act. Borrower has not violated any laws, ordinances or rules, the violation of which
could reasonably be expected to cause a Material Adverse Change. None of Borrower’s or any
Subsidiary’s properties or assets has been used by Borrower or any Subsidiary or, to the best of
Borrower’s knowledge, by previous Persons, in disposing, producing, storing, treating, or
transporting any hazardous substance other than legally. Borrower and each Subsidiary has timely
filed all required tax returns and paid, or made adequate provision to pay, all material taxes,
except those being contested in good faith with adequate reserves under GAAP. Borrower and each
Subsidiary has obtained all consents, approvals and authorizations of, made all declarations or
filings with, and given all notices to, all government authorities that are necessary to continue
its business as currently conducted, except where the failure to do so could not reasonably be
expected to cause a Material Adverse Change.

5.7 Subsidiaries.

     Borrower does not own any stock, partnership interest or other equity securities except for
Permitted Investments.

5.8 Full Disclosure.

     No written representation, warranty or other statement of Borrower in any certificate or
written statement given to Bank (taken together with all such written certificates and written
statements to Bank) contains any untrue statement of a material fact or omits to state a
material fact necessary to make the statements contained in the certificates or statements not
misleading. It being recognized by Bank that the projections and forecasts provided by Borrower
in good faith and based upon reasonable assumptions are not viewed as facts and that actual
results during the period or periods covered by such projections and forecasts may differ from
the projected and forecasted results.

6. AFFIRMATIVE COVENANTS

     Borrower will do all of the following for so long as Bank has an obligation to make any
Credit Extension, or there are outstanding Obligations:

6.1 Government Compliance.

     Borrower
will maintain its and all Subsidiaries’ legal existence and good standing as a
Registered Organization in only the State of Delaware and maintain qualification in each
jurisdiction in which the failure to so qualify would reasonably be expected to cause a material
adverse effect on Borrower’s business or operations. Borrower will comply, and have each
Subsidiary comply, with all laws, ordinances and regulations to which it is subject,
noncompliance with which could have a material adverse effect on Borrower’s business or
operations or would reasonably be expected to cause a Material Adverse Change.

6.2 Financial Statements, Reports, Certificates.

     (a) Borrower will deliver to Bank: (i) as soon as available, but no later than thirty (30)
days after the last day of each month, a company prepared consolidated balance sheet and income
statement covering Borrower’s consolidated operations during the period certified by a
Responsible Officer and in a form acceptable to Bank; (ii) as soon as available, but no later
than one hundred and twenty (120) days after the last day of Borrower’s fiscal year, audited
consolidated financial statements prepared under GAAP, consistently applied, together with an
unqualified opinion on the financial statements from an independent certified public accounting
firm reasonably acceptable to Bank; (iii) a prompt report of any legal actions pending or
threatened against Borrower or any Subsidiary that could result in damages or costs to Borrower
or any Subsidiary of $100,000 or more; (iv) budgets, sales projections, operating plans or other
financial information Bank reasonably requests; (v) prompt notice of any event that materially
adversely affects the value of the Intellectual Property, taken as a whole; and (vi) as soon as
available,

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but no later than once each year, prompt notice of any material revisions to Borrower’s business
plan or financial projections.

     (b) Within
thirty (30) days after the last day of each month, Borrower will deliver to
Bank a Borrowing Base Certificate signed by a Responsible Officer in
the form of Exhibit C,
with aged listings of accounts receivable.

     (c) Within
thirty (30) days after the last day of each month, Borrower will deliver to Bank
with the monthly financial statements a Compliance Certificate signed by a Responsible Officer in
the form of Exhibit D.

     (d) Borrower
will allow Bank to audit Borrower’s Accounts at Borrower’s expense. Such audits
will be conducted no more often than every six (6) months unless an Event of Default has occurred
and is continuing.

6.3 Inventory; Returns.

     Borrower will keep all Inventory in good and marketable condition, free from material
defects. Returns and allowances between Borrower and its account
debtors will follow Borrower’s
customary practices as they exist at execution of this Agreement, Borrower must promptly notify
Bank of all returns, recoveries, disputes and claims, that involve more than $100,000.

6.4 Taxes.

     Borrower will make, and cause each Subsidiary to make, timely payment of all material
federal, state, and local taxes or assessments (other than taxes and assessments which Borrower is
contesting in good faith, with adequate reserves maintained in accordance with GAAP) and will
deliver to Bank, on demand, appropriate certificates attesting to the payment.

6.5 Insurance.

     Borrower will keep its business and the Collateral insured for risks and in amounts standard
for Borrower’s industry, and as Bank may reasonably request. Insurance policies will be in a form,
with companies, and in amounts that are satisfactory to Bank in Bank’s reasonable discretion. All
property policies will have a lender’s loss payable endorsement showing Bank as an additional loss
payee and all liability policies will show the Bank as an additional insured and provide that the
insurer must give Bank at least twenty (20) days notice before canceling its policy. At Bank’s
request, Borrower will deliver certified copies of policies and evidence of all premium payments.
Proceeds payable under any policy will, at Bank’s option, be payable to Bank on account of the
Obligations.

6.6 Right to invest.

     Borrower, at Borrower’s sole option and discretion, may grant to Bank or Bank’s affiliates
(including, but not limited to, Silicon Valley Bancshares and Silicon Valley BancVentures, Inc.)
the right to invest up to Five Hundred Thousand Dollars ($500,000) in the next round of equity
financing (the “Subsequent Equity Financing”) on the same terms, conditions and pricing offered to
the investors in such Subsequent Equity Financing. In the event that Borrower exercises such
option, Borrower shall provide Bank with at least thirty (30) days prior written notice of the
close of each Subsequent Equity Financing (the “Equity Notice”). The Equity Notice shall contain
the terms, conditions and pricing of such Subsequent Equity Financing and shall be delivered to
Bank’s General Counsel, 3003 Tasman Drive, HG 180, Santa Clara, CA 95064. Nothing herein shall be
construed as creating an obligation on Bank and Bank’s affiliates to participate in each
Subsequent Equity Financing. The rights of Bank and its affiliates pursuant to this provision
shall survive the termination of this Agreement.

6.7 Primary Accounts.

     Borrower will maintain its primary depository, operating, and investment accounts with Bank.

6.8 Financial Covenants.

     Borrower will maintain as of the last day of each month a minimum Quick Ratio of 1.30 to
1.00. Bank agrees that at any time Borrower is in violation of this Section that absent the
occurrence of any other Event of Default, it will upon written request of Borrower consider
forbearing from exercising rights

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or remedies as a result of such violation if Bank has received a signed term sheet from an
investor satisfactory to Bank for the next round of equity financing, the terms of which are
satisfactory to Bank in all respects. Nothing in this paragraph is or should be construed by
Borrower to be an agreement by Bank to provide such forbearance, it being understood that Bank’s
decision on whether to grant such forbearance shall be made by Bank at the time of any such
violation.

6.9
Registration of Intellectual Property Rights.

     Borrower will register with the United States Patent and Trademark Office or the United
States Copyright Office its Intellectual Property which in Borrower’s reasonable business judgment
should be protected by such filings and additional Intellectual Property rights developed or
acquired including revisions or additions with any product before the sale or licensing of the
product to any third party.

     Borrower will (i) protect, defend and maintain the validity and enforceability of the
Intellectual Property which in Borrower’s reasonable business judgment should be protected and
promptly advise Bank in writing of material infringements and (ii) not allow any Intellectual
Property material to Borrower’s business to be abandoned, forfeited or dedicated to the public
without Bank’s written consent.

6.10 Further Assurances.

     Borrower will execute any further instruments and take further action as Bank reasonably
requests to perfect or continue Bank’s security interest in the Collateral or to effect the
purposes of this Agreement.

7. NEGATIVE COVENANTS

     Borrower will not do any of the following without Bank’s prior written consent, for so long
as Bank has an obligation to make Credit Extensions or there are any outstanding Obligations:

7.1 Dispositions.

     Convey, sell, lease, transfer or otherwise dispose of (collectively “Transfer”), or permit
any of its Subsidiaries to Transfer, all or any part of its business or property, except
for Transfers (i) of Inventory in the ordinary course of business; (ii) of non-exclusive licenses
and similar arrangements for the use of the property of Borrower or its Subsidiaries in the
ordinary course of business; (iii) of worn-out or obsolete Equipment; (iv) the sale or other
disposition of any property, provided that the fair market value of all such property so sold or
disposed of in any fiscal year shall not exceed $100,000; or (v) any wholly owned Subsidiary may
sell, lease, transfer or otherwise dispose of any or all of its assets (upon voluntary liquidation
or otherwise) to the Borrower or any other wholly owned Subsidiary of the Borrower.

7.2 Changes in Business, Ownership, Management or Business Locations.

     Engage in or permit any of its Subsidiaries to engage in any business other than the
businesses currently engaged in by Borrower or reasonably related thereto or have a material
change in Borrower’s management or a change in Borrower’s ownership of greater than twenty five
percent (25%) (other than by the sale of Borrower’s equity securities in a public offering or to
venture capital investors so long as Borrower identifies and advises Bank of the venture capital
investors prior to the closing of the investment). Borrower will not, without at least thirty (30)
days prior written notice, change its state of formation, relocate its chief executive office or
add any new offices or business locations.

7.3 Mergers or Acquisitions.

     Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any
other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all
of the capital stock or property of another Person; except, any Subsidiary of Borrower may be
merged or consolidated with or into Borrower (provided that Borrower shall be the continuing or
surviving entity and after giving effect to such merger or consolidation no Event of Default would
occur under any of the Loan Documents) or with or into any one or more wholly owned Subsidiaries
of Borrower (provided that the wholly owned Subsidiary or Subsidiaries shall be the continuing or
surviving entity) and Borrower may create one or more new Subsidiaries, provided either (i) such
Subsidiaries are added as parties to the Loan Documents, or (ii) Borrower does not loan, advance
or otherwise make any Transfers to any such Subsidiary in excess of $50,000 in any fiscal year.

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7.4 Indebtedness.

     Create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do so,
other than Permitted Indebtedness.

7.5 Encumbrance.

     Create, incur, or allow any Lien on any of its property, or assign or convey any right
to receive income, including the sale of any Accounts, or permit any of its Subsidiaries to do
so, except for Permitted Liens, or permit any Collateral not to be subject to the first priority
security interest granted here, subject to Permitted Liens.

7.6 Distributions; Investments.

     Except to the extent permitted in Section 7.3 of this Agreement, directly or indirectly
acquire or own any Person, or make any Investment in any Person, other than Permitted Investments,
or permit any of its Subsidiaries to do so. Pay any dividends or make any distribution or payment
or redeem, retire or purchase any capital stock; provided, however, that (i) any Subsidiary may
declare and pay dividends, payments or other distributions to Borrower, and (ii) Borrower may
declare cash dividends so long as such dividends are accrued but not paid, unless such payments
are specifically consented to in writing by Bank.

7.7 Transactions with Affiliates.

     Directly or indirectly enter into or permit to exist any material transaction with any
Affiliate of Borrower except for transactions that are in the ordinary course of Borrower’s
business, upon fair and reasonable terms that are no less favorable to Borrower than would be
obtained in an arms length transaction with a nonaffiliated Person.

7.8 Subordinated Debt.

     Make or permit any payment on any Subordinated Debt, except under the terms of the
Subordinated Debt, or amend any provision in any document relating to the Subordinated Debt
without Bank’s prior written consent.

7.9 Compliance.

     Become an “investment company” or a company controlled by an “investment company,”
under the Investment Company Act of 1940 or undertake as one of its important activities extending
credit to purchase or carry margin stock, or use the proceeds of any Credit Extension for that
purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or
Prohibited Transaction, as defined in ERISA, to occur; fail to comply with the Federal Fair Labor
Standards Act or violate any other law or regulation, if the violation could reasonably be
expected to have a material adverse effect on Borrower’s business or operations or would
reasonably be expected to cause a Material Adverse Change, or permit any of its Subsidiaries to do
so.

7.10 Registration of Copyrights.

     Borrower will not register any Copyrights without giving Bank prior written
notice.

8. EVENTS OF DEFAULT

     Any one of the following is an Event of Default:

8.1 Payment Default.

     If Borrower fails to pay any of the Obligations within three (3) Business Days of when due
(but no Credit Extensions will be made during the cure period);

8.2 Covenant Default.

     (a) If
Borrower fails to perform any obligation under Section 6.8 or violates any of
the covenants contained in Article 7 of this Agreement; or

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     (b) If Borrower fails or neglects to perform, keep, or observe any other material term,
provision, condition, covenant, or agreement contained in this Agreement, in any of the Loan
Documents, or in any other present or future agreement between Borrower and Bank and as to any
default under such other term, provision, condition, covenant or agreement that can be cured, has
failed to cure such default within ten (10) days after the occurrence thereof; provided, however,
that if the default cannot by its nature be cured within the ten (10) day period or cannot after
diligent attempts by Borrower be cured within such ten (10) day period, and such default is likely
to be cured within a reasonable time, then Borrower shall have an additional reasonable period
(which shall not in any case exceed thirty (30) days) to attempt to cure such default, and within
such reasonable time period the failure to have cured such default shall not be deemed an Event of
Default (provided that no Credit Extensions will be made during such cure period);

8.3 Material Adverse Change.

     If there (i) occurs a material adverse change in the business, operations, or condition
(financial or otherwise) of the Borrower and any Subsidiary which is a party to the Loan Documents
taken as a whole, or (ii) is a material impairment of the prospect of repayment of any portion of
the Obligations or (iii) is a material impairment of the value or priority of Bank’s security
interests in the Collateral.

8.4 Attachment.

     If any material portion of Borrower’s assets is attached, seized, levied on, or comes into
possession of a trustee or receiver and the attachment, seizure or levy is not removed in ten (10)
days, or if Borrower is enjoined, restrained, or prevented by court order from conducting a
material part of its business or if a judgment or other claim becomes a Lien on a material portion
of Borrower’s assets, or if a notice of lien, levy, or assessment is filed against any of
Borrower’s assets by any government agency and not paid within ten (10) days after Borrower
receives notice. These are not Events of Default if stayed or if a bond is posted pending contest
by Borrower (but no Credit Extensions will be made during the cure period);

8.5 Insolvency.

     If Borrower becomes insolvent or if Borrower begins an Insolvency Proceeding or an Insolvency
Proceeding is begun against Borrower and not dismissed or stayed within 30 days (but no Credit
Extensions will be made before any Insolvency Proceeding is dismissed);

8.6 Other Agreements.

     If there is a default in any agreement between Borrower and a third party that gives the
third party the right to accelerate any Indebtedness exceeding $100,000 or that could cause a
Material Adverse Change;

8.7 Judgments.

     If a money judgment(s) in the aggregate of at least $100,000 is rendered against Borrower and
is unsatisfied and unstayed or is otherwise not covered by insurance for 10 days (but no Credit
Extensions will be made before the judgment is stayed or satisfied);

8.8 Misrepresentations.

     If Borrower or any Person acting for Borrower makes any material misrepresentation or
material misstatement now or later in any warranty or representation in this Agreement or in any
writing delivered to Bank or to induce Bank to enter this Agreement or any Loan Document; or

8.9 Subsidiaries.

     Any circumstance described in Sections 8.3, 8.4, 8.5 or 8.7 occurs to any Subsidiary of
Borrower which when taken as a whole with Borrower could reasonable be expected to cause a
Material Adverse Change.

9

 

9. BANK’S RIGHTS AND REMEDIES

9.1 Rights and Remedies.

     When an Event of Default occurs and continues Bank may, without notice or demand, do any
or all of the following:

     (a) Declare all Obligations immediately due and payable (but if an Event of Default described
in Section 8.5 occurs all Obligations are immediately due and payable without any action by Bank);

     (b) Stop advancing money or extending credit for Borrower’s benefit under this Agreement or
under any other agreement between Borrower and Bank;

     (c) Settle or adjust disputes and claims directly with account debtors for amounts, on
terms and in any order that Bank considers advisable;

     (d) Make any payments and do any acts it considers necessary or reasonable to protect its
security interest in the Collateral. Borrower will assemble the Collateral if Bank requires and
make it available as Bank designates. Bank may enter premises where the Collateral is located,
take and maintain possession of any part of the Collateral, and pay, purchase, contest, or
compromise any Lien which appears to be prior or superior to its security interest and pay all
expenses incurred. Borrower grants Bank a license to enter and occupy any of its premises, without
charge, to exercise any of Bank’s rights or remedies;

     (e) Apply to the Obligations any (i) balances and deposits of Borrower with Bank or its
Affiliate it holds, or (ii) any amount held by Bank owing to or for the credit or the account of
Borrower;

     (f) Ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for
sale, and sell the Collateral. Bank is granted a non-exclusive, royalty-free license or other
right to use in connection with the sale or disposition of any of the Collateral, without charge,
Borrower’s labels, Patents, Copyrights, rights of use of any name, trade secrets, trade names,
Trademarks, service marks, and advertising matter, or any similar property as it pertains to the
Collateral, in completing production of, advertising for sale, and selling any Collateral and, in
connection with Bank’s exercise of its rights under this
Section, Borrower’s rights under all
licenses and all franchise agreements inure to Bank’s benefit; and

     (g) Dispose of the Collateral according to the Code.

9.2 Power of Attorney.

     Effective only when an Event of Default occurs and continues, Borrower irrevocably appoints
Bank as its lawful attorney to: (i) endorse Borrower’s name on any checks or other forms of
payment or security; (ii) sign Borrower’s name on any invoice or bill of lading for any Account or
drafts against account debtors, (iii) make, settle, and adjust all claims under Borrower’s
insurance policies; (iv) settle and adjust disputes and claims about the Accounts directly with
account debtors, for amounts and on terms Bank determines reasonable; and (v) transfer the
Collateral into the name of Bank or a third party as the Code permits. Bank may exercise the power
of attorney to sign Borrower’s name on any documents necessary to perfect or continue the
perfection of any security interest regardless of whether an Event of Default has occurred. Bank’s
appointment as Borrower’s attorney in fact, and all of Bank’s rights and powers, coupled with an
interest, are irrevocable until all Obligations have been fully repaid and performed and Bank’s
obligation to provide Credit Extensions terminates.

9.3 Accounts Collection.

     When an Event of Default occurs and continues, Bank may notify any Person owing Borrower
money of Bank’s security interest in the funds and verify the amount of the Account. Borrower must
collect all payments in trust for Bank and, if requested by Bank, immediately deliver the payments
to Bank in the form received from the account debtor, with proper endorsements for deposit.

9.4 Bank Expenses.

     If Borrower fails to pay any amount or furnish any required proof of payment to third
persons, Bank may make all or part of the payment or obtain insurance policies required in Section
6.5, and take any action under the policies Bank deems prudent. Any amounts paid by Bank are Bank
Expenses and

10

 

immediately due and payable, bearing interest at the then applicable rate and secured by
the Collateral. No payments by Bank are deemed an agreement to make similar payments in the future
or Bank’s waiver of any Event of Default.

9.5
Bank’s Liability for Collateral.

     If Bank complies with reasonable banking practices and the Code, the Bank is not liable for:
(a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any
diminution in the value
of the Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other
person. Borrower bears all risk of loss, damage or destruction of the
Collateral.

9.6 Remedies Cumulative.

     Bank’s rights and remedies under this Agreement, the Loan Documents, and all other agreements
are cumulative Bank has all rights and remedies provided under the Code, by law, or in equity.
Bank’s exercise of one right or remedy is not an election, and Bank’s waiver of any Event of
Default is not a continuing waiver. Bank’s delay is not a waiver, election, or acquiescence. No
waiver is effective unless signed by Bank and then is only effective for the specific instance and
purpose for which it was given.

9.7 Demand Waiver.

     Borrower waives demand, notice of default or dishonor, notice of payment and nonpayment,
notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or
renewal of accounts, documents, instruments, chattel paper, and guarantees held by Bank on which
Borrower is liable.

10. NOTICES

     All notices or demands by any party about this Agreement or any other related agreement
must be in writing and be personally delivered or sent by an overnight delivery service, by
certified mail, postage prepaid, return receipt requested, or by telefacsimile to the addresses
set forth at the beginning of this Agreement. A party may change its notice address by giving the
other party written notice.

11.
CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER

     Virginia law governs the Loan Documents without regard to principles of conflicts of
law. Borrower and Bank each submit to the non-exclusive jurisdiction of the State and Federal
courts in the Commonwealth of Virginia provided, however, that if for any reason the Bank can not
avail itself of the courts of the Commonwealth of Virginia, the Borrower and Bank each submit to
the jurisdiction of the State and Federal Courts in Santa Clara County, California.

BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT,
TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES
TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

12. GENERAL PROVISIONS

12.1 Successors and Assigns.

     This Agreement binds and is for the benefit of the successors and permitted assigns of
each party. Borrower may not assign this Agreement or any rights under it without Bank’s prior
written consent which may be granted or withheld in Bank’s discretion. Bank has the right, without
the consent of or notice to Borrower, to sell, transfer, negotiate, or grant participation in all
or any part of, or any interest in, Bank’s obligations, rights and benefits under this Agreement.

12.2 Indemnification.

     Borrower will indemnify, defend and hold harmless Bank and its officers, employees, and
agents against: (a) all obligations, demands, claims, and liabilities asserted by any other party
in connection with the transactions contemplated by the Loan Documents; and (b) all losses or Bank
Expenses incurred, or

11

 

paid by Bank from, following, or consequential to transactions between Bank and Borrower
(including reasonable attorneys fees and expenses), except for losses caused by Bank’s gross
negligence or willful misconduct.

12.3 Time of Essence.

         Time is of the essence for the performance of all obligations in this Agreement.

12.4 Severability of Provision.

         Each provision of this Agreement is severable from every other provision in determining the
enforceability of any provision.

12.5 Amendments in Writing, Integration.

         All amendments to this Agreement must be in writing and signed by Borrower and Bank. This
Agreement and the other Loan Documents represent the entire agreement about this subject matter,
and supersede prior negotiations or agreements. All prior agreements, understandings,
representations, warranties, and negotiations between the parties about the subject matter of this
Agreement and other Loan Documents merge into this Agreement and the Loan Documents.

12.6 Counterparts.

         This Agreement may be executed in any number of counterparts and by different parties on
separate counterparts, each of which, when executed and delivered, are an original, and all taken
together, constitute one Agreement.

12.7 Survival.

         All covenants, representations and warranties made in this Agreement continue in full force
while any Obligations remain outstanding. The obligations of Borrower in Section 12.2 to indemnify
Bank will survive until all statutes of limitations for actions that may be brought against Bank
have run.

12.8 Confidentiality.

         In handling any confidential information, Bank will exercise the same degree of care that it
exercises for its own proprietary information, but disclosure of information may be made (i)to
Bank’s subsidiaries or affiliates in connection with their business with Borrower, (ii) to
prospective transferee’s or purchasers of any interest in the loans (provided, however, Bank shall
use commercially reasonable efforts in obtaining such prospective transferee or purchasers
agreement of the terms of this provision), (iii) as required by law, regulation, subpoena, or
other order, (iv) as required in connection with Bank’s examination or audit and (v) as Bank
considers appropriate exercising remedies under this Agreement. Confidential information does not
include information that either: (a) is in the public domain or in Bank’s possession when
disclosed to Bank, or becomes part of the public domain after disclosure to Bank; or (b) is
disclosed to Bank by a third party, if Bank does not know that the third party is prohibited from
disclosing the information.

12.9 Effective Date.

         Notwithstanding anything set forth in this Agreement or any Loan Document to the contrary,
this Agreement and all of the Loan Documents shall not be effective until the date on which the
Bank executes this Agreement as indicated on the signature page to this Agreement.

12.10 Attorneys’ Fees, Costs and Expenses.

         In any action or proceeding between Borrower and Bank arising out of the Loan Documents, the
prevailing party will be entitled to recover its reasonable attorneys’ fees and other reasonable
costs and expenses incurred, in addition to any other relief to which it may be entitled.

13. DEFINITIONS

13.1 Definitions.

         In this Agreement:

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     “Accounts” has the meaning set forth in the Code and includes all existing and later arising
accounts, contract rights, and other obligations owed Borrower in connection with its sale or lease
of goods (including licensing software and other technology) or provision of services, all credit
insurance, guaranties, other security and all merchandise returned or reclaimed by Borrower and
Borrower’s Books relating to any of the foregoing.

     “Advance”
or “Advances” is a loan advance (or advances) under the Committed Revolving Line.

     “Affiliate” of a Person is a Person that owns or controls directly or indirectly the Person,
any Person that controls or is controlled by or is under common control with the Person, and each
of that Person’s senior executive officers, directors, partners and, for any Person that is a
limited liability company, that Person’s managers and members.

     “Bank Expenses” are all audit fees and expenses and reasonable costs and expenses (including
reasonable attorneys’ fees and expenses) for preparing, negotiating, defending and enforcing the
Loan Documents (including appeals or Insolvency Proceedings).

     “Borrower’s Books” are all Borrower’s books and records including ledgers, records regarding
Borrower’s assets or liabilities, the Collateral, business operations or financial condition and
all computer programs or discs or any equipment containing the information.

     “Borrowing Base” is eighty percent (80%) of Eligible Accounts as determined by Bank from
Borrower’s most recent Borrowing Base Certificate;
provided, however, that Bank may lower
the percentage of the Borrowing Base after performing an audit of Borrower’s Collateral.

     “Business Day” is any day that is not a Saturday, Sunday or a day on which the Bank is
closed.

     
“Cash Management Services” are defined in
Section 2.1.2.

     
“Closing Date” is the date
of this Agreement.

     “Code” is the Uniform Commercial Code, in effect in the State of Virginia as in effect from
time to time.

     “Collateral”
is the property described on Exhibit A.

     “Committed Equipment Line” is a Credit Extension of up to One Million and no/100 Dollars
($1,000,000.00).

     “Committed Revolving Line” is Advances of up to Two Million and no/100 Dollars
($2,000,000.00).

     “Contingent Obligation” is, for any Person, any direct or indirect liability, contingent or
not, of that Person for (i) any indebtedness, lease, dividend, letter of credit or other
obligation of another such as an obligation directly or indirectly guaranteed, endorsed, co-made,
discounted or sold with recourse by that Person, or for which that Person is directly or
indirectly liable; (ii) any obligations for undrawn letters of credit for the account of that
Person; and (iii) all obligations from any interest rate, currency or commodity swap agreement,
interest rate cap or collar agreement, or other agreement or arrangement designated to protect a
Person against fluctuation in interest rates, currency exchange rates or commodity prices; but
“Contingent Obligation” does not include endorsements in the ordinary course of business. The
amount of a Contingent Obligation is the stated or determined amount of the primary obligation for
which the Contingent Obligation is made or, if not determinable, the maximum reasonably
anticipated liability for it determined by the Person in good faith; but the amount may not exceed
the maximum of the obligations under the guarantee or other support arrangement.

     “Copyrights” are all copyright rights, applications or registrations and like protections in
each work or authorship or derivative work, whether published or not (whether or not it is a trade
secret) now or later existing, created, acquired or held.

     “Credit Extension” is each Advance, Equipment Advance, or any other extension of credit by
Bank for Borrower’s benefit.

13

 

     “Current Assets” are amounts that under GAAP should be included on that date as current
assets on Borrower’s consolidated balance sheet.

     “Current Liabilities” are the aggregate amount of Borrower’s Total Liabilities which mature
within one (1) year.

     “Deferred
Revenue” is on any day, items that should, under GAAP, be classified as deferred
revenue on Borrower’s consolidated balance sheet.

     “Effective Date” is the date this Agreement is executed by the Bank as set forth on the
signature page hereto,

     “Eligible Accounts” are Accounts in the ordinary course of Borrower’s business that meet all
Borrower’s representations and warranties in Section 5; but Bank may change eligibility
standards by giving Borrower thirty (30) days’ prior notice. Unless Bank agrees otherwise in
writing, Eligible Accounts will not include:

     (a) Accounts that the account debtor has not paid within 90 days of invoice date;

     (b) Accounts for an account debtor, 50% or more of whose Accounts have not been paid within 90
days of invoice date;

     (c) Credit balances over 90 days from invoice date;

     (d) Accounts for an account debtor, including Affiliates, whose total obligations to Borrower
exceed 30% of all Accounts, for the amounts that exceed that percentage, unless the Bank approves
in writing.

     (e) Accounts for which the account debtor does not have its principal place of business in the
United States;

     (f) Accounts for which the account debtor is a federal, state or local government entity or
any department, agency, or instrumentality, unless Bank’s Lien is perfected under the Federal
Assignment of Claims Act of 1940;

     (g) Accounts for which Borrower owes the account debtor, but only up to the amount owed
(sometimes called “contra” accounts, accounts payable, customer deposits or credit accounts);

     (h) Accounts for demonstration or promotional equipment, or in which goods are consigned,
sales guaranteed, sale or return, sale on approval, bill and hold, or other terms if account
debtor’s payment may be conditional;

     (i) Accounts for which the account debtor is Borrower’s Affiliate, officer,
employee, or agent;

     (j) Accounts in which the account debtor disputes liability or makes any claim and Bank
reasonably believes there may be a basis for dispute (but only up to the disputed or claimed
amount), or if the Account Debtor is subject to an Insolvency Proceeding, or becomes insolvent, or
goes out of business;

     (k) Accounts for which Bank reasonably determines collection to be doubtful.

     “Eligible Equipment” is general purpose computer equipment, office equipment, test and
laboratory equipment, and furnishings, Equipment financed with the proceeds of Equipment Advances
may be new or used Equipment.

     “Equipment” has the meaning set forth in the Code and includes is all present and future
machinery, equipment, tenant improvements, furniture, fixtures, vehicles, tools, parts and
attachments in which Borrower has any interest.

     “Equipment Advance” is defined in Section 2.1.3.

     “Equipment Availability End Date” is defined in Section 2.1.3.

14

 

     “Equipment Term Note” means that certain Equipment Term Note of even date herewith in the
principal amount of One Million and no/100 Dollars ($1,000,000.00) from Borrower in favor of
Bank, together with all renewals, amendments, modifications and substitutions therefor.

     “Equity Notice” is defined in Section 6.6.

     “ERISA” is the Employment Retirement Income Security Act of 1974, and its regulations.

     “Fixed Rate Option” is defined in Section 2.3(a).

     “GAAP” is generally accepted accounting principles.

     “Indebtedness” is (a) indebtedness for borrowed money or the deferred price of property or
services, such as reimbursement and other obligations for surety bonds and letters of credit,
(b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease
obligations and (d) Contingent Obligations.

     “Insolvency Proceeding” are proceedings by or against any Person under the United States
Bankruptcy Code, or any other bankruptcy or insolvency law, including assignments for the
benefit of creditors, compositions, extensions generally with its creditors, or proceedings
seeking reorganization, arrangement, or other relief.

     “Intellectual Property” is:

     (a) Copyrights, Trademarks and Patents including amendments, renewals, extensions, and ail
licenses or other rights to use and all license fees and royalties from the use;

     (b) Any trade secrets and any intellectual property rights in computer software and computer
software products now or later existing, created, acquired or held;

     (c) All design rights which may be available to Borrower now or later created, acquired or
held;

     (d) Any claims for damages (past, present or future) for infringement of any of the rights
above, with the right, but not the obligation, to sue and collect damages for use or infringement
of the intellectual property rights above;

     All Proceeds and products of the foregoing, including all insurance, indemnity or warranty
payments.

     “Inventory” has the meaning set forth in the Code and includes is present and future
inventory in which Borrower has any interest, including merchandise, raw materials, parts,
supplies, packing and shipping materials, work in process and finished products intended for
sale or lease or to be furnished under a contract of service, of every kind and description now
or later owned by or in the custody or possession, actual or constructive, of Borrower,
including inventory temporarily out of its custody or possession or in transit and including
returns on any accounts or other Proceeds from the sale or disposition of any of the foregoing
and any documents of title.

     “Investment” is any beneficial ownership of (including stock, partnership interest or other
securities) any Person, or any loan, advance or capital contribution to any Person.

     “Lien” is a mortgage, lien, deed of trust, charge, pledge, security interest or other
encumbrance.

     “Loan Documents” are, collectively, this Agreement, the Revolving Promissory Note, the
Equipment Term Note, any note, or notes or guaranties executed by Borrower and any other present or
future agreement between Borrower and/or for the benefit of Bank in connection with this Agreement,
all as amended, extended or restated.

     “Material Adverse Change” has the meaning set forth in Section 8.3.

     “Obligations” are debts, principal, interest, Bank Expenses and other amounts Borrower owes
Bank now or later, including cash management services, letters of credit and foreign exchange
contracts, if any and including interest accruing after Insolvency Proceedings begin and debts,
liabilities, or obligations of Borrower assigned to Bank.

15

 

     “Other Equipment” is leasehold improvements, intangible property such as computer software
and software licenses, equipment specifically designed or manufactured for Borrower, other
intangible property, sales tax, freight and installation expenses, limited use property and
other similar property.

     “Patents” are patents, patent applications and like protections, including improvements,
divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same.

     “Permitted Indebtedness” is:

     (a) Borrower’s indebtedness to Bank under this Agreement or any other Loan Document;

     (b) Indebtedness, including Contingent Obligations, existing on the Closing Date and shown on
the Schedule;

     (c) Subordinated Debt;

     (d) Indebtedness to trade creditors incurred in the ordinary course of business; and

     (e) Indebtedness secured by Permitted Liens.

     “Permitted Investments” are:

     (a) Investments shown on the Schedule and existing on the Closing Date;

     (b) (i) marketable direct obligations issued or unconditionally guaranteed by the United
States or its agency or any State maturing in accordance with the Borrower’s investment policy or,
in the absence of such a provision in the Borrower’s investment policy, within 1 year from
acquisition, (ii) commercial paper maturing no more than 1 year after its creation and having the
highest rating from either Standard & Poor’s Corporation or Moody’s Investors Service, Inc., and
(iii) Bank’s certificates of deposit issued maturing no more than 1 year after issue.

     “Permitted Liens” are:

     (a) Liens existing on the Closing Date and shown on the Schedule or arising under this
Agreement or other Loan Documents;

     (b) Liens for taxes, fees, assessments or other government charges or levies, either not
delinquent or being contested in good faith and for which Borrower maintains adequate reserves on
its Books, if they have no priority over any of Bank’s security interests;

     (c) Purchase money Liens (i) on Equipment acquired or held by Borrower or its Subsidiaries
incurred for financing the acquisition of the Equipment, or (ii) existing on equipment when
acquired, if the Lien is confined to the property and improvements and the Proceeds of the
equipment;

     (d) Licenses or sublicenses granted in the ordinary course of Borrower’s business and any
interest or title of a licensor or under any license or sublicense,
if the licenses and sublicenses
permit granting Bank a security interest;

     (e) Leases or subleases granted in the ordinary course of Borrower’s business, including in
connection with Borrower’s leased premises or leased property;

     (f) Liens incurred in the extension, renewal or refinancing of the indebtedness secured by
Liens described in (a) through (c), but any extension, renewal or replacement Lien must be
limited to the property encumbered by the existing Lien and the principal amount of the
indebtedness may not increase;

     (g) Statutory Liens of landlords, carriers, warehousemen, mechanics, materialmen and other
similar liens imposed by law, which are incurred in the ordinary course of business for sums not
more than thirty (30) days delinquent or which are being diligently contested in good faith in a
manner which stays enforcement of such Liens, provided that appropriate provisions shall have been
established thereof in accordance with GAAP if they have no priority over any of Bank’s security
interests; and

     (h) Liens (other than any Lien imposed by ERISA or any rule or regulation promulgated
thereunder) incurred or deposits made in the ordinary course of business in connection with
workers’ compensation, unemployment insurance or social security laws or similar legislation, or
to secure the performance of tenders, statutory obligations, surety, stay, customs and appeal
bonds, bids, government

16

 

contracts, leases, trade contracts, performance and return of money bonds and other similar
obligations (exclusive of obligations for the payment of borrowed
money) if they have no priority
over any of Bank’s security interests.

     “Person” is any individual, sole proprietorship.-partnership, limited liability company,
joint venture, company association, trust, unincorporated organization, association, corporation,
institution, public benefit corporation, firm, joint stock company, estate, entity or government
agency.

     “Proceeds” has the meaning described in the Code as in effect from time to time.

     “Prime Rate” is Bank’s most recently announced “prime rate,” even if it is not Bank’s
lowest rate.

     “Prime Rate Option” is defined in Section 2.3(a).

     “Quick Assets” is, on any date, the Borrower’s consolidated, unrestricted cash and cash
equivalents held at Bank, plus net billed accounts receivable.

     “Quick
Ratio” is Quick Assets divided by total Current Liabilities less Deferred Revenue,
plus long-term Indebtedness to Bank.

     “Registered Organization” means an organization organized solely under the law of a single
state or the United States and as to which the state or the United States must maintain a public
record showing the organization to have been organized.

     “Responsible Officer” is each of the Chief Executive Officer, the President, the Chief
Financial Officer and the Controller of Borrower.

     “Revolving Maturity Date” is September 30, 2003.

     “Revolving Promissory Note” means that certain Revolving Promissory Note of even date
herewith in the maximum principal amount of Two Million and no/100 Dollars ($2,000,000.00) from
Borrower in favor of Bank, together with all renewals, amendments, modifications and
substitutions, therefor.

     “Schedule” is any attached schedule of exceptions.

     “Subordinated Debt” is debt incurred by Borrower subordinated to Borrower’s indebtedness owed
to Bank and which is reflected in a written agreement in a manner and form acceptable to Bank and
approved by Bank in writing.

     “Subsequent Equity Financing” is defined in Section 6.6.

     “Subsidiary” is for any Person, or any other business entity of which more than 50% of the
voting stock or other equity interests is owned or controlled, directly or indirectly, by the
Person or one or more Affiliates of the Person.

     “Supporting Obligation” means a Letter-of-credit right, secondary obligation or obligation of
a secondary obligor or that supports the payment or performance of an account, chattel paper, a
document, a general intangible, an instrument or investment property.

     “Total Liabilities” is on any day, obligations that should, under GAAP, be classified as
liabilities on Borrower’s consolidated balance sheet, including all Indebtedness, and current
portion Subordinated Debt allowed to be paid, but excluding all other Subordinated Debt.

     “Trademarks”
are trademark and servicemark rights, registered or not, applications to
register and registrations and like protections, and the entire goodwill of the business of
Borrower connected with the trademarks.

[Signatures appear on the following page]

17

 

	 	 	 	 	 
	BORROWER:
	 
	 	 	 	 
	SOURCEFIRE, INC.
	 
	 	 	 	 
	By:

	 	/s/ Marc Rubin
 

Name: Marc Rubin
	 	[SEAL] 
	 

	 	Title: CFO	 	 
	 
	 	 	 	 
	BANK:
	 
	 	 	 	 
	SILICON VALLEY BANK
	 
	 	 	 	 
	By:

	 	/s/ Shaun E. Gorman
 

Name: Shaun E. Gorman
	 	 
	 

	 	Title: VP	 	 
	 
	 	 	 	 
	Effective as of November                     , 2002.

18

 

EXHIBIT A

     The Collateral consists of all of Borrower’s right, title and interest in and to the
following:

     All goods and equipment now owned or hereafter acquired, including, without limitation, all
machinery, fixtures, vehicles (including motor vehicles and trailers), and any interest in any of
the foregoing, and all attachments, accessories, accessions, replacements, substitutions,
additions, and improvements to any of the foregoing, wherever located;

     All inventory, now owned or hereafter acquired, including, without limitation, all
merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and
finished products including such inventory as is temporarily out of Borrower’s custody or
possession or in transit and including any returns upon any accounts or other Proceeds, resulting
from the sale or disposition of any of the foregoing and any documents of title representing any of
the above;

     All contract rights and general intangibles now owned or hereafter acquired, including,
without limitation, goodwill, leases, license agreements, franchise agreements, blueprints,
drawings, purchase orders, customer lists, route lists, infringements, claims, computer programs,
computer discs, computer tapes, literature, reports, catalogs, design rights, income tax refunds,
payments of insurance and rights to payment of any kind;

     All now existing and hereafter arising accounts, contract rights, royalties, license rights
and all other forms of obligations owing to Borrower arising out of the sale or lease of goods, the
licensing of technology or the rendering of services by Borrower, whether or not earned by
performance, and any and all credit insurance, guaranties, and other security therefor, as well as
all merchandise returned to or reclaimed by Borrower;

     All Letter-Of-Credit Rights (whether or not the letter of credit is evidenced by a writing);

     All documents, cash, deposit accounts, securities, securities entitlements, securities
accounts, investment property, financial assets, letters of credit, certificates of deposit,
instruments and chattel paper now owned or hereafter acquired and Borrower’s Books relating to the
foregoing;

     All claims for damages by way of any past, present and future infringement of any of
Intellectual Property; and

     All Supporting Obligations and all Borrower’s Books relating to the foregoing and any and all
claims, rights and interests in any of the above and all substitutions for, additions and
accessions to and Proceeds thereof.

     Borrower and Bank are parties to that certain Negative Pledge Agreement, whereby Borrower, in
connection with Bank’s loan or loans to Borrower, has agreed, among other things, not to sell,
transfer, assign, mortgage, pledge, lease grant a security interest in, or encumber any of its
Intellectual Property or enter into any agreement, document, instrument or other arrangement
(except with or in favor of the Bank) with any Person which directly or indirectly prohibits or has
the effect of prohibiting Borrower from selling, transferring, assigning, mortgaging, pledging,
leasing, granting a security interest in, or encumbering any of its Intellectual Property, without
Bank’s prior written consent.

     Notwithstanding the foregoing, the Collateral shall not be deemed to include any copyrights,
copyright applications, mask works, copyright registration and like protection in each work of
authorship and derivative work thereof, whether published or unpublished, now owned or hereafter
acquired; any patents, patent applications and like protections including without limitation
improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of
the same, trademarks, servicemarks and applications therefore, whether registered or not, and the
goodwill of the business of Borrower connected with and symbolized by such trademarks, any trade
secret rights, including any rights to unpatented inventions, know-how, operating manuals, license
rights and agreements and confidential information, now owned or hereafter acquired; or any claims
for damage by way of any past, present and future infringement of any of the foregoing
(collectively, the “Intellectual Property”), except that the Collateral shall include the Proceeds
of all the Intellectual Property of Borrower (including, without limitation, the proceeds from any
sale, lease, conveyance or transfer), provided, however, if a judicial authority (including a U.S.
Bankruptcy Court) holds that a security interest in the underlying Intellectual Property is
necessary to have a security interest in such Proceeds of the Intellectual Property, then the
Collateral shall automatically and effective as of the Closing Date include the Intellectual
Property to the extent necessary to effect and permit perfection of Bank’s security interest in
such Proceeds of the Intellectual Property.

 

 

EXHIBIT B

Loan Payment/Advance Request Form

Deadline for same day processing is 3:00 e.s.t.

	 	 	 	 	 	 	 
	Fax To:          617-969-5965

	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 

	 	 	 
	? Loan Payment:

	 	                                         Client Name (Borrower)

	 	 	 	 	 	 	 	 	 	 	 
	From Account #

	 	 	 	 	 	To Account #	 	 	 	 
	 

	 	 

(Deposit Account #)
	 	 	 	 	 	 

(Loan Account #)
	 	 

	 	 	 	 	 	 	 	 	 	 	 
	Principal

	$	 	and/or Interest
	$	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

All Borrower’s representations and warranties in the Loan and Security Agreement are true, correct
and complete in all material respects on the date of the telephone transfer request for an advance,
but those representations and warranties expressly referring to another date shall be true, correct
and complete in all material respects as of such date:

Authorized Signature:                                                                                 
Phone Number:                                              

? Loan Advance:

Complete Outgoing Wire Request section below if all or a portion of the funds from this loan
advance are for an outgoing wire.

	 	 	 	 	 	 	 	 	 	 	 
	From
Account #

	 	 	 	 	 	To Account #	 	 	 	 
	 

	 	 

(Loan Account #)
	 	 	 	 	 	 

(Deposit Account #)
	 	 
	Amount of Advance $
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

All Borrower’s representations and warranties in the Loan and Security Agreement are true, correct
and complete in all material respects on the date of the telephone transfer request for an advance,
but those representations and warranties expressly referring to another date shall be true,
correct and complete in all material respects as of such date:

Authorized Signature:                                                                                 
Phone Number:                                              

Outgoing Wire Request

   Complete only if all or a portion of funds from the loan advance above are to be wired.

Deadline for same day processing is 12:00 p.m., E.S.T.

	 	 	 	 	 	 	 	 	 	 	 
	Beneficiary Name:

	 	 	 	 	 	Amount of Wire: $	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	Beneficiary Bank:

	 	 	 	 	 	Account Number:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	City and State:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	Beneficiary Bank Transit (ABA) #:

	 	 	 	Beneficiary Bank Code (Swift, Sort, Chip, etc.):	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	(For International Wire Only)	 	 

	 	 	 	 	 	 	 	 	 	 	 
	Intermediary Bank:

	 	 	 	 	 	Transit (ABA) #:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	For Further Credit to:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Special Instruction:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 

By signing below, I (we) acknowledge and agree that my (our) funds transfer request shall be
processed in accordance with and subject to the terms and conditions set forth in the agreements(s)
covering funds transfer service(s), which agreements(s) were previously received and executed by me
(us).

	 	 	 	 	 	 	 	 	 	 	 
	Authorized Signature:

	 	 	 	 	 	2nd Signature (If Required):	 	 	 	 
	 

	 	 

	 	 	 	 	 	 
 	 	 
 
	Print Name/Title:

	 	 	 	 	 	Print Name/Title:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 
 	 	 
 
	Telephone #

	 	 	 	 	 	Telephone #	 	 	 	 
	 

	 	 

	 	 	 	 	 	 
 	 	 
 

 

 

EXHIBIT C

BORROWING BASE CERTIFICATE

 

	 	 	 	 	 	 	 
	Borrower:

	 	Sourcefire, Inc,
	 	Bank:
	 	Silicon Valley Bank
	 

	 	7095 Samuel Morse Drive
	 	 	 	3003 Tasman Drive
	 

	 	Suite 100
	 	 	 	Santa Clara, CA 95054
	 

	 	Columbia, Maryland 21046	 	 	 	 
	Commitment Amount:  $2,000,000.00

	 	 	 	 

 

	 	 	 	 	 	 	 	 	 	 	 
	ACCOUNTS RECEIVABLE	 	 	 	 	 	 	 	 
	1.
	 	Accounts Receivable Book Value as
of ______	 	 	 	 	 	$	                    	 
	2.
	 	Additions (please explain on reverse)	 	 	 	 	 	$	                    	 
	3.
	 	TOTAL ACCOUNTS RECEIVABLE	 	 	 	 	 	$	                    	 
	 
	 	 	 	 	 	 	 	 	 	 
	ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)	 	 	 	 	 	 	 	 
	4.
	 	Amounts over 90 days due	 	$	                    	 	 	 	 	 
	5.
	 	Balance of 50% over 90 day accounts	 	$	                    	 	 	 	 	 
	6.
	 	Credit balances over 90 days	 	$	                    	 	 	 	 	 
	7.
	 	Concentration Limits	 	$	                    	 	 	 	 	 
	8.
	 	Foreign Accounts	 	$	                    	 	 	 	 	 
	9.
	 	Governmental Accounts not perfected under

Federal Assignment of Claims Act	 	$	                    	 	 	 	 	 
	10.
	 	Contra Accounts	 	 	 	 	 	 	 	 
	11.
	 	Promotion or Demo Accounts	 	$	                    	 	 	 	 	 
	12.
	 	Intercompany/Employee Accounts	 	$	                    	 	 	 	 	 
	13.
	 	Other (please explain on reverse)	 	$	                    	 	 	 	 	 
	14.
	 	TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS	 	 	 	 	 	$	                    	 
	15.
	 	Eligible Accounts (#3 minus #14)	 	 	 	 	 	$	                    	 
	16.
	 	LOAN VALUE OF ACCOUNTS (80% of #15)	 	 	 	 	 	$	                    	 
	 
	 	 	 	 	 	 	 	 	 	 
	BALANCES	 	 	 	 	 	 	 	 
	17.
	 	Maximum Loan Amount	 	$	2,000,000.00	 	 	 	 	 
	18.
	 	Total Funds Available [Lesser of #17 or #16]	 	 	 	 	 	$	                    	 
	19.
	 	Present balance owing on Line of Credit	 	$	                    	 	 	 	 	 
	20.
	 	Outstanding under Sublimits (Cash Management)	 	$	                    	 	 	 	 	 
	21.
	 	RESERVE POSITION (#18 minus #19 and #20)	 	 	 	 	 	$	                    	 

The undersigned represents and warrants that this is true, complete and correct, and that the
information in this Borrowing Base Certificate complies with the representations and warranties in
the Loan and Security Agreement between the undersigned and Silicon
Valley Bank.

COMMENTS:

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	     Authorized Signer 	 
	 	 	 	 
	 

BANK  USE  ONLY

	 	 	 	 	 
	Rec’d By:
	 	 	 	 
	 

	 	 

Auth. Signer
	 	 
	Date:
	 	 	 	 
	 

	 	 

	 	 
	Verified:
	 	 	 	 
	 

	 	 

Auth. Signer
	 	 
	Date:
	 	 	 	 
	 

	 	 

	 	 
	 

 

 

EXHIBIT D

COMPLIANCE CERTIFICATE

	 	 	 
	TO:

	 	SILICON VALLEY BANK
	 

	 	3003 Tasman Drive
	 

	 	Santa Clara, CA 95054
	 
	 	 
	FROM:

	 	SOURCEFIRE, INC.

     The undersigned authorized officer of SOURCEFIRE, INC. (“Borrower”) certifies that under the
terms and conditions of the Loan and Security Agreement between Borrower and Bank (the
“Agreement”), (i) Borrower is in complete compliance
for the period ending______________ with all required
covenants except as noted below and (ii) all representations and warranties in the Agreement are
true and correct in all material respects on this date. Attached are the required documents
supporting the certification. The Officer certifies that these are prepared in accordance with
Generally Accepted Accounting Principles (GAAP) consistently applied from one period to the next
except as explained in an accompanying letter or footnotes. The Officer acknowledges that no
borrowings may be requested at any time or date of determination that Borrower is not in compliance
with any of the terms of the Agreement, and that compliance is determined not just at the date this
certificate is delivered.

Please indicate compliance status by circling Yes/No under “Complies” column.

	 	 	 	 	 	 	 
	Reporting
Covenant	 	Required	 	Complies
	Monthly financial statements + CC
	 	Monthly within 30 days	 	Yes	 	No
	Annual (Audited)
	 	FYE within 120 days	 	Yes	 	No
	A/R Agings
	 	Monthly within 30 days	 	Yes	 	No
	A/R Audit
	 	Initial and Semi-Annual	 	Yes	 	No
	Borrowing Base Certificate
	 	Monthly within 30 days	 	Yes	 	No

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Financial
Covenant	 	Required	 	 	Actual	 	 	Complies	 
	Maintain on
a Monthly Basis:
 Minimum Quick Ratio
	 	 	1.30:1.00	 	 	_____ :1.00	 	 	Yes	 	No

Comments
Regarding Exceptions: See Attached.

Sincerely,

 

	 	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	   
	SIGNATURE
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	   
	TITLE
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	   
	DATE
	 	 

BANK  USE  ONLY

	 	 	 	 	 
	Received by:
	 	 	 	 
	 

	 	 

AUTHORIZED SIGNER
	 	 
	Date:
	 	 	 	 
	 

	 	 

	 	 
	Verified:
	 	 	 	 
	 

	 	 

AUTHORIZED SIGNER
	 	 
	Date:
	 	 	 	 
	 

	 	 

	 	 

					
	 	 	 	 	 
	Compliance Status:
	 	Yes
	 	No

 

 

EXHIBIT E

FORM OF LOAN AGREEMENT SUPPLEMENT

LOAN AGREEMENT SUPPLEMENT No. [ ]

     LOAN
AGREEMENT SUPPLEMENT No. [ ], dated                      200___ (“Supplement”), to the Loan and Security
Agreement dated as of November___, 2002 (the “Loan Agreement) by and between the
undersigned(“Borrower”), and Silicon Valley Bank (“Bank”).

     Capitalized terms used herein but not otherwise defined herein are used with the respective
meanings given to such terms in the Loan Agreement.

     To secure the prompt payment by Borrower of all amounts from time to time outstanding under the
Loan Agreement, and the performance by Borrower of all the terms contained in the Loan Agreement,
Borrower grants Bank, a first priority security interest in each item of equipment and other
property described in Annex A hereto, which equipment and other property shall be deemed to be
additional Equipment and Collateral. The Loan Agreement is hereby incorporated by reference herein
and is hereby ratified, approved and confirmed.

     Annex A (Equipment Schedule) and Annex B (Loan Terms Schedule) are attached hereto.

     The proceeds of the Equipment Advance should be transferred to Borrower’s account with Bank set
forth below:

	 	 	 	 	 	 	 
	 

	 	Bank Name;
	 	Silicon Valley Bank	 	 
	 

	 	Account No:	 	 	 	 
	 

	 	 	 	 

	 	 

Borrower hereby certifies that (a) the foregoing information is true and correct and authorizes
Bank to endorse in its respective books and records, the interest rate option applicable to the
Funding Date of the Loan contemplated in this Loan Agreement Supplement and the principal amount
set forth in the Loan Terms Schedule; (b) the representations and warranties made by Borrower in
the Loan Agreement are true and correct on the date hereof and will be true and correct on such
Funding Date. No Event of Default has occurred and is continuing under the Loan Agreement. This
Supplement may be executed by Borrower and Bank in separate counterparts, each of which when so
executed and delivered shall be an original, but all such counterparts shall together constitute
but one and the same instrument.

     This Supplement is delivered as of this day and year first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SILICON VALLEY BANK	 	 	 	SOURCEFIRE, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 	 	 	 	Name:	 	 	 	 
	 

	 	Title:
	 	 

	 	 	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 	 	 	 	 	 	 

	 	 

Annex A — Description of Financed Equipment

Annex B — Loan Terms Schedule

 

 

Annex A to Exhibit E

          The Equipment being financed with the Equipment Advance which this Loan Agreement Supplement is
being executed is listed below. Upon the funding of such Equipment Advance, this schedule
automatically shall be deemed to be a part of the Collateral.

     Description of Equipment:               Make               Model               Serial #               Invoice #

 

 

Annex B to Exhibit E

LOAN TERMS SCHEDULE #                    

Loan Funding Date:                     , 200_

Original Loan Amount: $                    

	 	 	 
	Interest Rate:

	 	Prime Rate Option                    
	 

	 	Fixed Rate Option                    

Scheduled Payment Dates and Amounts:

One (1) payment of $                    due                    

             payment of $                    due monthly in advance from                    through 
                
   .
One (1) payment of $       
              due 
                
   

Maturity Date:                     

Payment No.                    Payment Date

  1

  2

  3

  4

 ...

29

 ...

 

 

Schedule to Loan and Security Agreement

The exact correct corporate name of Borrower is (attach a copy of the formation documents, e.g.,
articles, partnership agreement): SOURCEFIRE, INC.

Borrower’s State of formation: DELAWARE

Borrower has operated under only the following other names (if none, so state):

NONE

All other address at which the Borrower does business are as follows (attach additional sheets if
necessary and include all warehouse addresses): SEE ATTACHED

Borrower has deposit accounts and/or investment accounts located only at the following
institutions:

List Acct. Numbers: SEE ATTACHED

Liens existing on the Closing Date and disclosed to and accepted by Bank in writing:

Investments existing on the Closing Date and disclosed to and accepted by Bank in writing:

Subordinated Debt:

Indebtedness, other than Subordinated Debt, on the Closing Date and disclosed to and consented to
by Bank in writing:

SEE ATTACHED

The following is a list of the Borrower’s copyrights (including copyrights of software) which are
registered with the United States Copyright Office. (Please include name of the copyright and
registration number and attach a copy of the registration):

SNORT INTRUSION DETECTION PROGRAM

The
following is a list of all software which the Borrower sells, distributes or licenses to others, which is not registered with the United States Copyright Office. (Please include
versions which are not registered:

Management
console V.2.0

Network Sensor V.2.0

The following is a list of all of the Borrower’s patents which are registered with the United
States Patent Office. (Please include name of the patent and registration number and attach a copy
of the registration.):

NONE

The
following is a list of all of the Borrower’s patents which are
pending with the United States Patent Office. (Please include name of the patent and a copy of the application.):

NONE

 

 

The following is a list of all of the Borrower’s registered trademarks. (Please include name of the
trademark and a copy of the registration.):

78/080,52
Sourcefire Inc. w/Design

78/099,299 Sourcefire Inc.

Borrower is not subject to litigation which would have a material adverse effect on the Borrower’s
financial condition, except the following (attach additional comments, if needed):

NONE

Tax ID Number 52-2289365

Organizational Number, if any:                                        

 

 

Schedule to Loan and Security Agreement

Other Addresses;

Northern Virginia:

Suite 1150

11th Floor

8000 Towers Crescent Drive

Vienna, VA 22182

California

300 East Main Street

Los Gatos, CA 95030

Deposit Accounts;

The Columbia Bank: 17-012252-25 and 17-012252-01

Other Debt:

Prime Business Leasing — Office Furniture: Balance = $56,000

Great American Leasing Co. — HP 8550 Copier: Balance = $7,000

 

 

Ref. No.

	 	 	 
	In re Trademark/Service Mark Application of:

SourceFire, Inc.

Serial No.: 78/079,299

Mark: SOURCEFIRE

Class: 9

Filing Date: August 15, 2001

Notice of Allowance Issue Date: April 2, 2002

	 	

TRANSMITTAL LETTER

Assistant Commissioner for Trademarks

2900 Crystal Drive

Arlington, VA 22202-3513

Attn: BOX ITU/FEE

Sir:

          Please find attached hereto the following item(s) in regard to the above-identified
application:

     1. Revocation of Power of Attorney and Appointment of New Attorneys for Pending
Trademark Application;

     2. Statement of Use Under 37 C.F.R. §2.88;

     3. Specimen;

     4.
Our check number 072177 in the amount of $100 to cover the filing fee; and

          Any additional fees associated with this filing should be drawn from the Deposit Account of
Piper Rudnick LLP, No. 501150.

	 	 	 	 	 	 	 
	 

	 	 	 	Respectfully submitted,	 	 
	 
	 	 	 	 	 	 
	9/19/02

Date

	 	 	 	/s/ ANN K. FORD
 

Ann K. Ford, Esq.
	 	 
	 

	 	 	 	Adam D. Resnick, Esq.	 	 
	 

	 	 	 	Piper Rudnick LLP	 	 
	 

	 	 	 	1200 Nineteenth Street, N.W.	 	 
	 

	 	 	 	Washington, D.C. 20036-2430	 	 
	 

	 	 	 	(202)861-3900	 	 

 

 

IN THE UNITED STATES PATENT AND TRADEMARK OFFICE

	 	 	 
	Applicant:

	 	SourceFire, Inc. 
	 
	 	 
	Serial No.:

	 	78/079,299 
	 
	 	 
	Trademark:

	 	SOURCEFIRE 
	 
	 	 
	Class:

	 	9 
	 
	 	 
	Filed:

	 	August 15, 2001 

			
	To:	 	Assistant Commissioner for Trademarks

Box/NO Fee

2900 Crystal Drive

Arlington, Virginia 22202-3513

REVOCATION OF POWER OF ATTORNEY AND

APPOINTMENT OF NEW ATTORNEYS

FOR PENDING TRADEMARK APPLICATION

Sir:

     Applicant, owner of the above-referenced pending trademark application, hereby revokes all
previous powers of attorney and hereby appoints Ann K. Ford, Adam D. Resnick, Lisa R. Trovato,
Emily C. Sexton, Thomas E. Zutic, Eliza P. Nagle and the law firm of Piper Rudnick LLP, 1200 19th
Street, N.W., Washington, D.C. 20036, (202) 861-3900, both jointly and separately as its attorneys
with full power of substitution and revocation to prosecute this application, to transact all
business in the Patent and Trademark Office connected therewith, to receive all correspondence, and
to receive the certificate of registration. Please direct further correspondence to:

Adam D. Resnick, Esq.

Piper Rudnick LLP

1200 19th Street, N.W.

Washington, D.C. 20036

Telephone: (202) 861-3900

	 	 	 	 	 	 	 
	 	 	Respectfully submitted,	 	 
	 
	 	 	 	 	 	 
	 	 	SOURCEFIRE, INC.	 	 
	 
	 	 	 	 	 	 
	Dated:
9.16.2002

	 	By:

Name:
	 	/s/ E. WAYNE JACKSON
 

E. Wayne Jackson
	 	 
	 

	 	Title:
	 	CEO	 	 

 

 

IN THE UNITED STATES PATENT AND TRADEMARK OFFICE

	 	 	 
	Applicant:

	 	SourceFire, Inc. 
	 
	 	 
	Serial No.:

	 	78/079,299 
	 
	 	 
	Trademark:

	 	SOURCEFIRE 
	 
	 	 
	Class:

	 	9 
	 
	 	 
	Filed:

	 	August 15, 2001 
	 
	 	 
	Notice of Allowance
	 	 
	Mailing Date:

	 	April 2, 2002 

			
	To:	 	Assistant Commissioner for Trademarks

Box ITU/FEE

2900 Crystal Drive

Arlington, Virginia 22202-3513

STATEMENT
OF USE UNDER 37 C.F.R. §2.88

Sir:

     Applicant requests registration of the above-identified trademark in the United States Patent and
Trademark Office on the Principal Register established by the Act of July 5, 1946,15 U.S.C. §§ 1051
et seq., as amended.

     Applicant is using the mark in commerce in connection with all of the goods identified in the
Notice of Allowance.

     The mark was first used in connection with the Class 9 goods at least as early as February 26,
2001, and was first used in commerce in connection with the Class 9 goods at least as early as
August 10, 2001.

     One specimen of the mark, for each class, showing the mark as used in commerce is submitted
herewith.

 

 

     The undersigned, being hereby warned that willful false statements and the like so made are
punishable by fine or imprisonment, or both, under 18 U.S.C. § 1001, and that such willful false
statements may jeopardize the validity of the application or any resulting registration, declares
that he is properly authorized to execute this Statement of Use on behalf of the applicant; that he
believes the applicant to be the owner of the trademark/service mark sought to be registered; that
the trademark/service mark is now in use in commerce; and that all statements — made of his own
knowledge are true and all statements made on information and belief are believed to be true.

	 	 	 	 	 	 	 
	 	 	SOURCEFIRE, INC.	 	 
	 
	 	 	 	 	 	 
	Dated:
9.16.2002

	 	By:

Name:
	 	/s/ E. WAYNE JACKSON
 

E. Wayne Jackson
	 	 
	 

	 	Title:
	 	CEO	 	 

 

 

 

 

Ref. No.

	 	 	 
	In re Trademark/Service Mark Application of:

SourceFire, Inc.

Serial No.: 78/080,052

Mark: SOURCEFIRE INC. and Design

Int’l Class(es): 9

Filing Date: August 20, 2001

	 	

TRANSMITTAL LETTER

Assistant Commissioner for Trademarks

2900 Crystal Drive

Arlington, VA 22202-3513

ATTN: Box ITU/FEE

Sir:

          Please find attached hereto the following item(s) in regard to the above-identified application:

     1. Revocation of Power of Attorney and Appointment of New Attorneys for Pending Trademark
Application;

     2. Request for Extension of Time Under 37 C.F.R. §2.89 to File a Statement of Use, with
Declaration;

     3.
Our check number 072173 in the amount of $150 to cover the filing fee; and

          Any additional fees associated with this filing should be withdrawn from or credited to the Deposit
Account of Piper Rudnick LLP, No. 501150.

	 	 	 	 	 
	 

	 	Respectfully submitted,	 	 
	 
	 	 	 	 
	9/19/02

Date

	 	/s/ ANN K. FORD, ESQ
 

Ann K. Ford, Esq.
	 	 
	 

	 	Adam D. Resnick, Esq.	 	 
	 

	 	Piper Rudnick LLP	 	 
	 

	 	1200 Nineteenth Street, N.W.	 	 
	 

	 	Washington, D.C. 20036-2430	 	 
	 

	 	(202) 861-3900	 	 

 

 

IN THE UNITED STATES PATENT AND TRADEMARK OFFICE

	 	 	 
	Applicant:

	 	SourceFire, Inc. 
	 
	 	 
	Serial No.:

	 	78/080,052 
	 
	 	 
	Trademark:

	 	SOURCEFIRE INC. (and Design) 
	 
	 	 
	Class:

	 	9 
	 
	 	 
	Filed:

	 	August 20, 2001 

			
	To:	 	Assistant Commissioner for Trademarks

Box /NO Fee

2900 Crystal Drive

Arlington, Virginia 22202-3513

REVOCATION OF POWER OF ATTORNEY AND

APPOINTMENT OF NEW ATTORNEYS

FOR PENDING TRADEMARK APPLICATION

Sir:

     Applicant, owner of the above-referenced pending trademark application, hereby revokes all
previous powers of attorney and hereby appoints Ann K. Ford, Adam D. Resnick, Lisa R. Trovato,
Emily C. Sexton, Thomas E. Zutic, Eliza P. Nagle and the law firm of
Piper Rudnick LLP, 1200 19th
Street, N.W., Washington, D.C. 20036, (202) 861-3900, both jointly and separately as its attorneys
with full power of substitution and revocation to prosecute this application, to transact all
business in the Patent and Trademark Office connected therewith, to receive all correspondence, and
to receive the certificate of registration. Please direct further correspondence to:

Adam D. Resnick, Esq.

Piper Rudnick LLP

1200 19th Street, N.W.

Washington, D.C. 20036

Telephone: (202) 861-3900

	 	 	 	 	 	 	 
	 	 	Respectfully submitted,	 	 
	 
	 	 	 	 	 	 
	 	 	SOURCEFIRE, INC.	 	 
	 
	 	 	 	 	 	 
	Dated: 9.16.2002

	 	By:
Name:
	 	/s/ E. WAYNE JACKSON
 

E. Wayne Jackson
	 	 
	 

	 	Title:
	 	CEO	 	 

 

 

Atty Ref. No. 305428-1

IN THE
UNITED STATES PATENT AND TRADEMARK OFFICE

	 	 	 
	Applicant:

	 	SourceFire, Inc. 
	 
	 	 
	Serial No.:

	 	78/080,052 
	 
	 	 
	Trademark:

	 	SOURCEFIRE INC. (and Design) 
	 
	 	 
	Class:

	 	9 
	 
	 	 
	Filed:

	 	August 20, 2001 
	 
	 	 
	Notice of Allowance
	 	 
	Mailing Date:

	 	March 26, 2002 

			
	To:	 	Assistant Commissioner for Trademarks

Box ITU/FEE

2900 Crystal Drive

Arlington, Virginia 22202-3513

REQUEST FOR EXTENSION OF TIME UNDER 37 C.F.R. §2.89

TO FILE A STATEMENT OF USE, WITH DECLARATION

Sir:

     Applicant hereby requests a six-month extension of time to file the Statement of Use under 37
C.F.R. § 2.88 in this application. Applicant has a continued bona fide intention to use the mark
in commerce in connection with all the goods identified in the Notice of Allowance. This is the
first request for an Extension of Time following mailing of the Notice of Allowance.

     The undersigned being hereby warned that willful false statements and the like so made are
punishable by fine or imprisonment, or both, under 18 U.S.C. § 1001, and that such willful false
statements may jeopardize the validity of the application or any resulting registration, declares
that he is properly authorized to execute this Request for Extension of Time to File a Statement of
Use on behalf of the applicant; that he believes the applicant to be the owner

 

 

Atty Ref. No. 305428-1

of the trademark sought to be registered; and that all statements made of his own knowledge are
true and all statements made on information and belief are believed to be true.

	 	 	 	 	 	 	 
	 	 	SOURCEFIRE, INC.	 	 
	 
	 	 	 	 	 	 
	Dated: 9.16.2002

	 	By:

Name:
	 	/s/ E. WAYNE JACKSON
 

E. Wayne Jackson
	 	 
	 

	 	Title:
	 	CEO	 	 

 

 

 

 

 

 

 

 

NEGATIVE PLEDGE AGREEMENT

     This
Negative Pledge Agreement is made as of November 29 2002, by and between Sourcefire, Inc.
(“Borrower”) and Silicon Valley Bank (“Bank”).

     In connection with, among other documents, the Loan and Security Agreement (the “Loan Documents”)
being concurrently executed herewith between Borrower and Bank, Borrower agrees as follows:

	 	1.	 	Except for (i) non-exclusive licenses granted in the ordinary course of business and
(ii) exclusive
licenses granted to Persons outside of the United States and Canada
in the ordinary course of
business, Borrower shall not sell, transfer, assign, mortgage, pledge, lease, grant a security
interest in, or encumber, or enter into any agreement, document, instrument or other arrangement
(except with or in favor of (the Bank) with any Person which directly or indirectly prohibits or has
the effect of prohibiting Borrower from selling, transferring, assigning, mortgaging, pledging,
leasing, granting a security interest in or upon, or encumbering any of Borrower’s intellectual
property, including, without limitation, the following:

	 	a.	 	Any and all copyright rights, copyright applications, copyright registrations and
like protections in each work or authorship and derivative work thereof, whether published or
unpublished and whether or not the same also constitutes a trade secret, now or hereafter existing,
created, acquired or held;
	 
	 	b.	 	Any and all trade secrets, and any and all intellectual property rights in computer
software and computer software products now or hereafter existing, created, acquired or held;
	 
	 	c.	 	Any and all design rights which may be available to Borrower now or hereafter
existing, created, acquired or held;
	 
	 	d.	 	All patents, patent applications and like protections including, without limitation,
improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of
the same, including without limitation the patents and patent applications;
	 
	 	e.	 	Any trademark and servicemark rights, whether registered or not, applications to
register and registrations of the same and like protections, and the entire goodwill of the
business of Borrower connected with and symbolized by such trademarks;
	 
	 	f.	 	Any and all claims for damages by way of past, present and future infringements of
any of the rights included above, with the right, but not the obligation, to sue for and collect
such damages for said use or infringement of the intellectual property rights identified above;
	 
	 	g.	 	All licenses or other rights to use any of the Copyrights, Patents or Trademarks, and
all license fees and royalties arising from such use to the extent permitted by such license or
rights; and
	 
	 	h.	 	All amendments, extensions, renewals and extensions of any of the Copyrights,
Trademarks or Patents; and
	 
	 	i.	 	All proceeds and products of the foregoing, including without limitation all
payments under insurance or any indemnity or warranty payable in respect of any of the foregoing;

 

 

	 	2.	 	It shall be an event of default under the Loan Documents between Borrower and
Bank if there is a breach of any term of this Negative Pledge Agreement.
	 
	 	3.	 	Capitalized terms used but not otherwise defined herein shall have the same meaning
as in the Loan Documents.

BORROWER:

SOURCEFIRE INC.

	 	 	 	 	 	 	 
	By:	 	/s/ Marc Rubin 	 	[SEAL]
	 	 	 	 	 
	  Name:	 	Marc Rubin	 	 
	 

	 	 	 	 	 	 
	  Title:	 	CFO	 	 
	 

	 	 	 	 	 	 

BANK:

SILICON VALLEY BANK

	 	 	 	 	 	 	 
	By:	 	/s/ Shear E. Goodman [SEAL]	 	 
	 	 	 	 	 
	  Name:	 	Shear E. Goodman	 	 
	 

	 	 	 	 	 	 
	  Title:	 	VP	 	 
	 

	 	 	 	 	 	 

2

 

IMPORTANT NOTICE

     THIS INSTRUMENT CONTAINS A CONFESSION OF JUDGMENT PROVISION WHICH CONSTITUTES A WAIVER OF IMPORTANT
RIGHTS YOU MAY HAVE AS A DEBTOR AND ALLOWS THE CREDITOR TO OBTAIN A JUDGMENT AGAINST YOU WITHOUT
ANY FURTHER NOTICE.

EQUIPMENT TERM NOTE

			
	$ 1,000,000.00
	 	Reston, Virginia
	 
	 	November 29, 2002

     FOR VALUE RECEIVED, the undersigned, SOURCEFIRE, INC., a Delaware corporation (“Borrower”) promises
to pay to the order of SILICON VALLEY BANK, a California-chartered bank, doing business in Virginia
as “Silicon Valley East, Inc.” (“Bank”), at such place as the holder hereof may designate, in lawful
money of the United States of America, the aggregate unpaid principal amount of all equipment
advances (“Equipment Advances”) made by Bank to Borrower in accordance with the terms and
conditions of the Loan and Security Agreement between Borrower and Bank of even date herewith, (as
amended from time to time the “Loan Agreement”), up to a maximum principal amount of One Million
and no/100 Dollars ($1,000,000.00) (“Principal Sum”), or so much thereof as may be advanced and
remains unpaid. Borrower may request Equipment Advances under this Note from and until the
Equipment Availability End Date. The unpaid Principal Sum, together with interest thereon at the
rate or rates provided in the Loan Agreement, shall be payable as set forth in the Loan Agreement.

     Borrower further agrees that, if any payment made by Borrower or any other person is applied to
this Note and is at any time annulled, set aside, rescinded, invalidated, declared to be fraudulent
or preferential or otherwise required to be refunded or repaid, or the proceeds of any property
hereafter securing this Note is required to be returned by Bank to Borrower, its estate, trustee,
receiver or any other party, including, without limitation, such Borrower, under any bankruptcy
law, state or federal law, common law or equitable cause, then, to the extent of such payment or
repayment, Borrower’s liability hereunder (and any lien, security interest or other collateral
securing such liability) shall be and remain in full force and effect, as fully as if such payment
had never been made, or, if prior thereto any such lien, security interest or other collateral
hereafter securing Borrower’s liability hereunder shall have been released or terminated by virtue
of such cancellation or surrender, this Note (and such lien, security interest or other collateral)
shall be reinstated in full force and effect, and such prior cancellation or surrender shall not
diminish, release, discharge, impair or otherwise affect the obligations of Borrower in respect of
the amount of such payment (or any lien, security interest or other collateral securing such
obligation).

     This Note is the “Equipment Term Note” described in the Loan Agreement, to which reference is
hereby made for a more complete statement of the terms and conditions under which the loans and
advances evidenced hereby are made. This Note is secured as provided in the Loan Agreement. All

 

 

capitalized terms used herein and not otherwise defined shall have the meanings given to such terms
in the Loan Agreement.

     Borrower irrevocably waives the right to direct the application of any and all payments at any time
hereafter received by Bank from or on behalf of Borrower and Borrower irrevocably agrees that Bank
shall have the continuing exclusive right to apply any and all such payments against the then due
and owing obligations of Borrower as Bank may deem advisable. In the absence of a specific
determination by Bank with respect thereto, all payments shall be
applied in the following order:
(a) then due and payable fees and expenses; (b) then due and payable interest payments and
mandatory prepayments; and (c) then due and payable principal payments and optional prepayments.

     Bank is hereby authorized by Borrower to endorse on Bank’s books and records each Advance made by
Bank under this Note and the amount of each payment or prepayment of principal of each such Advance
received by Bank; it being understood, however, that failure to make any such endorsement (or any
error in notation) shall not affect the obligations of Borrower with respect to Advances made
hereunder, and payments of principal by Borrower shall be credited to Borrower notwithstanding the
failure to make a notation (or any errors in notation) thereof on such books and records.

     The occurrence of any Event of Default under the Loan Agreement, shall constitute an Event of
Default under the terms of this Note.

     Upon the occurrence of an Event of Default, the Bank may at its option, exercise all of the rights,
powers, and remedies available under the terms of this Note or any of the other Loan Documents and
all applicable laws. Borrower and all endorsers, guarantors, and other parties who may now or in
the future be primarily or secondarily liable for the payment of the indebtedness evidenced by this
Note hereby severally waive presentment, protest and demand, notice of protest, notice of demand
and of dishonor and non-payment of this Note and expressly agree that this Note or any payment
hereunder may be extended from time to time without in any way affecting the liability of Borrower,
guarantors and endorsers.

     In the event this Note is not paid when due or any installment due hereunder is not paid within
fifteen (15) days of the date when due, whether by maturity or acceleration, Borrower hereby
appoints and designates Mary Zinsner, Esq., Borrower’s duly constituted attorney-in-fact to confess
judgment pursuant to the provisions of Section 8.01-432 of the Code of Virginia of 1950, as
amended, against Borrower for all principal of and interest due and payable under this Note upon
the occurrence of an Event of Default, together with attorneys’ fees and collection fees as
provided herein (to the extent permitted by law), which judgment shall be confessed in the Clerk’s
Office of the Circuit Court of Fairfax County, Virginia. Upon request of Bank, Borrower will
execute an amendment or other agreement substituting attomeys-in-fact appointed to act for Borrower
hereunder.

2

 

     Borrower promises to pay all costs and expense of collection of this Note and to pay all reasonable
attorneys’ fees incurred in such collection, whether or not there is a suit or action, or in any
suit or action to collect this Note or in any appeal thereof. No delay by Bank in exercising any
power or right hereunder shall operate as a waiver of any power or right. Time is of the essence as
to all obligations hereunder.

     This Note is issued pursuant to the Loan Agreement, which shall govern the rights and obligations
of Borrower with respect to all obligations hereunder.

     Borrower acknowledges and agrees that this Note shall be governed by the laws of the Commonwealth
of Virginia, excluding conflicts of laws principles, even though for the convenience and at the
request of Borrower, this Note may be executed elsewhere.

     BORROWER ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, UNCONDITIONALLY, THE
NON-EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE
COMMONWEALTH OF VIRGINIA IN ANY ACTION, SUIT, OR PROCEEDING OF ANY KIND, AGAINST IT WHICH ARISES
OUT OF OR BY REASON OF THIS AGREEMENT; PROVIDED, HOWEVER, THAT IF FOR ANY REASON BANK CANNOT AVAIL
ITSELF OF THE COURTS OF VIRGINIA, BORROWER ACCEPTS JURISDICTION OF THE COURTS AND VENUE IN SANTA
CLARA COUNTY, CALIFORNIA. BORROWER AND BANK EACH HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY
OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY
CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. EACH PARTY RECOGNIZES AND AGREES THAT THE
FOREGOING WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR IT TO ENTER INTO THIS AGREEMENT. EACH PARTY
REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT
KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

[SIGNATURES ARE ON THE FOLLOWING PAGE]

3

 

     IN WITNESS WHEREOF, Borrower has caused this Note to be executed under seal by its duly authorized
officers as of the date first written above.

	 	 	 	 	 	 	 
	WITNESS/ATTEST:	 	SOURCEFIRE, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Aimee M. Gardner	 	By: /s/ Marc Rubin	 	[SEAL] 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: MARC RUBIN	 	 
	 

	 	 	 	Title: CFO	 	 

4

 

IMPORTANT NOTICE

     THIS INSTRUMENT CONTAINS A CONFESSION OF JUDGMENT PROVISION WHICH CONSTITUTES A WAIVER OF IMPORTANT
RIGHTS YOU MAY HAVE AS A DEBTOR AND ALLOWS THE CREDITOR TO OBTAIN A JUDGMENT AGAINST YOU WITHOUT
ANY FURTHER NOTICE.

REVOLVING PROMISSORY NOTE

			
	$2,000,000.00
	 	Reston, Virginia
	 
	 	November 29, 2002

     FOR VALUE RECEIVED, the undersigned, SOURCEFIRE, INC., a Delaware corporation (“Borrower”) promises
to pay to the order of SILICON VALLEY BANK, a California-chartered bank doing business in Virginia
as “Silicon Valley East” (“Bank”), at such place as the holder hereof may designate, in lawful
money of the United States of America, the aggregate unpaid principal amount of all advances
(“Advances”) made by Bank to Borrower in accordance with the terms and conditions of the Loan and
Security Agreement between Borrower and Bank of even date herewith, as amended from time to time
(the “Loan Agreement”), up to a maximum principal amount of Two Million and no/100 Dollars
($2,000,000.00) (“Principal Sum”), or so much thereof as may be advanced or readvanced and remains
unpaid. Borrower shall also pay interest on the aggregate unpaid principal amount of such Advances,
as follows:

     Commencing as of the date of the first Advance and continuing until repayment in full of all sums
due hereunder, the unpaid Principal Sum shall bear interest at the variable rate of interest, per
annum, most recently announced by Bank as its “prime rate,” whether or not such announced rate is
the lowest rate available from Bank (the “Prime Rate”), plus one percent (1.00%) per annum. The
rate of interest charged under this Note shall change immediately and contemporaneously with any
change in the Prime Rate. All interest payable under the terms of this Note shall be calculated on
the basis of a 360-day year and the actual number of days elapsed.

     The unpaid Principal Sum, together with accrued interest thereon at the rate or rates provided
above, shall be payable as follows:

          (a) Accrued interest only on the unpaid principal amount shall be due and payable monthly in
arrears, commencing December 5, 2002, and continuing on the 5th day of each calendar
month thereafter to maturity; and

          (b) Unless sooner paid, the unpaid Principal Sum, together with interest accrued and unpaid
thereon, shall be due and payable in full on the Revolving Maturity Date.

 

 

     The fact that the balance hereunder may be reduced to zero from time to time pursuant to the Loan
Agreement will not affect the continuing validity of this Note or the Loan Agreement, and the
balance may be increased to the Principal Sum after any such reduction to zero.

     Borrower further agrees that, if any payment made by Borrower or any other person is applied to
this Note and is at any time annulled, set aside, rescinded, invalidated, declared to be fraudulent
or preferential or otherwise required to be refunded or repaid, or the proceeds of any property
hereafter securing this Note is required to be returned by Bank to Borrower, its estate, trustee,
receiver or any other party, including, without limitation, such Borrower, under any bankruptcy
law, state or federal law, common law or equitable cause, then, to the extent of such payment or
repayment, Borrower’s liability hereunder (and any lien, security interest or other collateral
securing such liability) shall be and remain in full force and effect, as fully as if such payment
had never been made, or, if prior thereto any such lien, security interest or other collateral
hereafter securing Borrower’s liability hereunder shall have been released or terminated by virtue
of such cancellation or surrender, this Note (and such lien, security interest or other
collateral) shall be reinstated in full force and effect, and such prior cancellation or surrender
shall not diminish, release, discharge, impair or otherwise affect the obligations of Borrower in
respect of the amount of such payment (or any lien, security interest or other collateral securing
such obligation).

     This Note is the “Revolving Promissory Note” described in the Loan Agreement, to which reference is
hereby made for a more complete statement of the terms and conditions under which the loans and
advances evidenced hereby are made. This Note is secured as provided in the Loan Agreement. All
capitalized terms used herein and not otherwise defined shall have the meanings given to such terms
in the Loan Agreement.

     Borrower irrevocably waives the right to direct the application of any and all payments at any time
hereafter received by Bank from or on behalf of Borrower and Borrower irrevocably agrees that Bank
shall have the continuing exclusive right to apply any and all such payments against the then due
and owing obligations of Borrower as Bank may deem advisable. In the absence of a specific
determination by Bank with respect thereto, all payments shall be
applied in the following order:
(a) then due and payable fees and expenses; (b) then due and payable interest payments and
mandatory prepayments; and (c) then due and payable principal payments and optional prepayments.

     Bank is hereby authorized by Borrower to endorse on Bank’s books and records each Advance made by
Bank under this Note and the amount of each payment or prepayment of principal of each such Advance
received by Bank; it being understood, however, that failure to make any such endorsement (or any
error in notation) shall not affect the obligations of Borrower with respect to Advances made
hereunder, and payments of principal by Borrower shall be credited to Borrower notwithstanding the
failure to make a notation (or any errors in notation) thereof on such books and records.

2

 

     The occurrence of any Event of Default under the Loan Agreement, shall constitute an Event of
Default under the terms of this Note.

     Upon the occurrence of an Event of Default, the Bank may at its option, exercise all of the rights,
powers, and remedies available under the terms of this Note or any of the other Loan Documents and
all applicable laws. Borrower and all endorsers, guarantors, and other parties who may now or in
the future be primarily or secondarily liable for the payment of the indebtedness evidenced by this
Note hereby severally waive presentment, protest and demand, notice of protest, notice of demand
and of dishonor and non-payment of this Note and expressly agree that this Note or any payment
hereunder may be extended from time to time without in any way affecting the liability of Borrower,
guarantors and endorsers.

     In the event this Note is not paid when due or any installment due hereunder is not paid within
fifteen (15) days of the date when due, whether by maturity or acceleration, Borrower hereby
appoints and designates Mary Zinsner, Esq., Borrower’s duly constituted attomey-in-fact to confess
judgment pursuant to the provisions of Section 8.01-432 of the Code of Virginia of 1950, as
amended, against Borrower for all principal of and interest due and payable under this Note upon
the occurrence of an Event of Default, together with attorneys’ fees and collection fees as
provided herein (to the extent permitted by law), which judgment shall be confessed in the Clerk’s
Office of the Circuit Court of Fairfax County, Virginia. Upon request of Bank, Borrower will
execute an amendment or other agreement substituting attomeys-in-fact appointed to act for Borrower
hereunder.

     Borrower promises to pay all costs and expense of collection of this Note and to pay all reasonable
attorneys’ fees incurred in such collection, whether or not there is a suit or action, or in any
suit or action to collect this Note or in any appeal thereof. Borrower waives presentment, demand,
protest, notice of protest, notice of dishonor, notice of nonpayment,
and any and all other notices
and demands in connection with the delivery, acceptance, performance default or enforcement of this
Note, as well as any applicable statutes of limitations. No delay by Bank in exercising any power
or right hereunder shall operate as a waiver of any power or right. Time is of the essence as to
all obligations hereunder.

     This Note is issued pursuant to the Loan Agreement, which shall govern the rights and obligations
of Borrower with respect to all obligations hereunder.

     Borrower acknowledges and agrees that this Note shall be governed by the laws of the Commonwealth
of Virginia, excluding conflicts of laws principles, even though for the convenience and at the
request of Borrower, this Note may be executed elsewhere.

     BORROWER ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, UNCONDITIONALLY, THE
NON-EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE
COMMONWEALTH OF VIRGINIA IN ANY ACTION, SUIT, OR PROCEEDING OF ANY

3

 

KIND, AGAINST IT WHICH ARISES OUT OF OR BY REASON OF THIS AGREEMENT; PROVIDED, HOWEVER, THAT IF FOR
ANY REASON BANK CANNOT AVAIL ITSELF OF THE COURTS OF VIRGINIA, BORROWER ACCEPTS JURISDICTION OF THE
COURTS AND VENUE IN SANTA CLARA COUNTY, CALIFORNIA. BORROWER AND BANK EACH HEREBY WAIVE THEIR
RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY
OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS,
TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. EACH PARTY
RECOGNIZES AND AGREES THAT THE FOREGOING WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR IT TO ENTER
INTO THIS AGREEMENT. EACH PARTY REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS
LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING
CONSULTATION WITH LEGAL COUNSEL.

[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

4

 

     IN WITNESS WHEREOF, Borrower has caused this Note to be executed under seal by its duly
authorized officers as of the date first written above.

	 	 	 	 	 	 	 
	WITNESS/ATTEST:	 	SOURCEFIRE, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Aimee M. Gardner	 	By: /s/ Marc Rubin 	 	[SEAL] 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: MARC RUBIN	 	 
	 

	 	 	 	Title: CFO	 	 

5

 

IMPORTANT NOTICE

     THIS INSTRUMENT CONTAINS A CONFESSION OF JUDGMENT PROVISION WHICH CONSTITUTES A WAIVER OF IMPORTANT
RIGHTS YOU MAY HAVE AS A DEBTOR AND ALLOWS THE CREDITOR TO OBTAIN A JUDGMENT AGAINST YOU WITHOUT
ANY FURTHER NOTICE.

AMENDED AND RESTATED REVOLVING PROMISSORY NOTE

			
	$3,000,000.00
	 	Reston, Virginia
	 
	 	November 3, 2003

     FOR VALUE RECEIVED, the undersigned, SOURCEFIRE, INC., a Delaware corporation (“Borrower”) promises
to pay to the order of SILICON VALLEY BANK, a California-chartered bank doing business in Virginia
as “Silicon Valley East” (“Bank”), at such place as the holder hereof may designate, in lawful
money of the United States of America, the aggregate unpaid principal amount of all advances
(“Advances”) made by Bank to Borrower in accordance with the terms and conditions of the Loan and
Security Agreement between Borrower and Bank dated November 29, 2002 (as amended from time to time,
the “Loan Agreement”), up to a maximum principal amount of Three Million and no/100 Dollars
($3,000,000.00) (“Principal Sum”), or so much thereof as may be advanced or readvanced and remains
unpaid. Borrower shall also pay interest on the aggregate unpaid principal amount of such Advances,
as follows:

     Commencing as of the date of the first Advance and continuing until repayment in full of all sums
due hereunder, the unpaid Principal Sum shall bear interest at the variable rate of interest, per
annum, most recently announced by Bank as its “prime rate,” whether or not such announced rate is
the lowest rate available from Bank (the “Prime Rate”), plus one percent (1.00%) per annum. The
rate of interest charged under this Note shall change immediately and contemporaneously with any
change in the Prime Rate. All interest payable under the terms of this Note shall be calculated on
the basis of a 360-day year and the actual number of days elapsed.

     The unpaid Principal Sum, together with accrued interest thereon at the rate or rates provided
above, shall be payable as follows:

          (a) Accrued interest only on the unpaid principal amount shall be due and payable monthly in
arrears, commencing December 5, 2003, and continuing on the 5th day of each calendar
month thereafter to maturity; and

          (b) Unless sooner paid, the unpaid Principal Sum, together with interest accrued and unpaid
thereon, shall be due and payable in full on the Revolving Maturity Date.

 

 

     The fact that the balance hereunder may be reduced to zero from time to time pursuant to the Loan
Agreement will not affect the continuing validity of this Note or the Loan Agreement, and the
balance may be increased to the Principal Sum after any such reduction to zero.

     Borrower further agrees that, if any payment made by Borrower or any other person is applied to
this Note and is at any time annulled, set aside, rescinded, invalidated, declared to be fraudulent
or preferential or otherwise required to be refunded or repaid, or the proceeds of any property
hereafter securing this Note is required to be returned by Bank to Borrower, its estate, trustee,
receiver or any other party, including, without limitation, such Borrower, under any bankruptcy
law, state or federal law, common law or equitable cause, then, to the extent of such payment or
repayment, Borrower’s liability hereunder (and any lien, security interest or other collateral
securing such liability) shall be and remain in full force and effect, as fully as if such payment
had never been made, or, if prior thereto any such lien, security interest or other collateral
hereafter securing Borrower’s liability hereunder shall have been released or terminated by virtue
of such cancellation or surrender, this Note (and such lien, security interest or other collateral)
shall be reinstated in full force and effect, and such prior cancellation or surrender shall not
diminish, release, discharge, impair or otherwise affect the obligations of Borrower in respect of
the amount of such payment (or any lien, security interest or other collateral securing such
obligation).

     This Note is the “Replacement Revolving Promissory Note” described in the Loan Agreement, to which
reference is hereby made for a more complete statement of the terms and conditions under which the
loans and advances evidenced hereby are made. This Note increases, amends and restates in its
entirety that certain Revolving Promissory Note dated November 29, 2002 (the “Prior Note”) in the
maximum principal amount of Two Million Dollars ($2,000,000) from the Borrower in favor of the
Bank. It is expressly agreed that the indebtedness evidenced by the Prior Note has not been
extinguished or discharged hereby. The Borrower agrees that the execution of and delivery of this
Note is not intended to and shall not cause or result in a novation with respect to the Prior Note.
This Note is secured as provided in the loan Agreement. All capitalized terms used herein and not
otherwise defined shall have the meanings given to such terms in the Loan Agreement.

     Borrower irrevocably waives the right to direct the application of any and all payments at any time
hereafter received by Bank from or on behalf of Borrower and Borrower irrevocably agrees that Bank
shall have the continuing exclusive right to apply any and all such payments against the then due
and owing obligations of Borrower as Bank may deem advisable. In the absence of a specific
determination by Bank with respect thereto, all payments shall be applied in the following order:
(a) then due and payable fees and expenses; (b) then due and payable interest payments and
mandatory prepayments; and (c) then due and payable principal payments and optional prepayments.

     Bank is hereby authorized by Borrower to endorse on Bank’s books and records each Advance made by
Bank under this Note and the amount of each payment or prepayment of principal of each such Advance
received by Bank; it being understood, however, that failure to make any such

 

 

endorsement (or any error in notation) shall not affect the obligations of Borrower with respect to
Advances made hereunder, and payments of principal by Borrower shall be credited to Borrower
notwithstanding the failure to make a notation (or any errors in notation) thereof on such books
and records.

     The occurrence of any Event of Default under the Loan Agreement, shall constitute an Event of
Default under the terms of this Note.

     Upon the occurrence of an Event of Default, the Bank may at its option, exercise all of the rights,
powers, and remedies available under the terms of this Note or any of the other Loan Documents and
all applicable laws. Borrower and all endorsers, guarantors, and other parties who may now or in
the future be primarily or secondarily liable for the payment of the indebtedness evidenced by this
Note hereby severally waive presentment, protest and demand, notice of protest, notice of demand
and of dishonor and non-payment of this Note and expressly agree that this Note or any payment
hereunder may be extended from time to time without in any way affecting the liability of Borrower,
guarantors and endorsers.

     In the event this Note is not paid when due or any installment due hereunder is not paid within
fifteen (15) days of the date when due, whether by maturity or acceleration, Borrower hereby
appoints and designates Mary Zinsner, Esq., Borrower’s duly constituted attomey-in-fact to confess
judgment pursuant to the provisions of Section 8.01-432 of the Code of Virginia of 1950, as
amended, against Borrower for all principal of and interest due and payable under this Note upon
the occurrence of an Event of Default, together with attorneys’ fees and collection fees as
provided herein (to the extent permitted by law), which judgment shall be confessed in the Clerk’s
Office of the Circuit Court of Fairfax County, Virginia. Upon request of Bank, Borrower will
execute an amendment or other agreement substituting attomeys-in-fact appointed to act for Borrower
hereunder.

     Borrower promises to pay all costs and expense of collection of this Note and to pay all reasonable
attorneys’ fees incurred in such collection, whether or not there is a suit or action, or in any
suit or action to collect this Note or in any appeal thereof. Borrower waives presentment, demand,
protest, notice of protest, notice of dishonor, notice of nonpayment, and any and all other notices
and demands in connection with the delivery, acceptance, performance default or enforcement of this
Note, as well as any applicable statutes of limitations. No delay by Bank in exercising any power
or right hereunder shall operate as a waiver of any power or right. Time is of the essence as to
all obligations hereunder.

     This Note is issued pursuant to the Loan Agreement, which shall govern the rights and obligations
of Borrower with respect to all obligations hereunder.

 

 

     Borrower acknowledges and agrees that this Note shall be governed by the laws of the
Commonwealth of Virginia, excluding conflicts of laws principles, even though for the convenience
and at the request of Borrower, this Note may be executed elsewhere.

     BORROWER ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, UNCONDITIONALLY, THE
NON-EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE
COMMONWEALTH OF VIRGINIA IN ANY ACTION, SUIT, OR PROCEEDING OF ANY KIND, AGAINST IT WHICH ARISES
OUT OF OR BY REASON OF THIS AGREEMENT; PROVIDED, HOWEVER, THAT IF FOR ANY REASON BANK CANNOT AVAIL
ITSELF OF THE COURTS OF VIRGINIA, BORROWER ACCEPTS JURISDICTION OF THE COURTS AND VENUE IN SANTA
CLARA COUNTY, CALIFORNIA. BORROWER AND BANK EACH HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY
OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY
CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. EACH PARTY RECOGNIZES AND AGREES THAT THE
FOREGOING WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR IT TO ENTER INTO THIS AGREEMENT. EACH PARTY
REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT
KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

 

 

     IN WITNESS WHEREOF, Borrower has caused this Note to be executed under seal by its duly
authorized officers as of the date first written above.

	 	 	 	 	 	 	 
	WITNESS/ATTEST:	 	SOURCEFIRE, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Nick Margarites	 	By: /s/ Todd P. Headley 	 	[SEAL] 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Todd P. Headley	 	 
	 

	 	 	 	Title: CFO	 	 

 

 

WARRANT TO PURCHASE STOCK

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AND PURSUANT
TO THE PROVISIONS OF ARTICLE 5 BELOW, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR
HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAW OR, IN
THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITES,
SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS EXEMPT FROM REGISTRATION.

WARRANT TO PURCHASE STOCK

	 	 	 
	Company:

	 	SourceFire, Inc., a Delaware corporation
	Number of Shares:

	 	 5,246
	Class of Stock:

	 	Series A Convertible Preferred
	Warrant Price:

	 	 $3.05 per share
	Issue Date:

	 	November 3, 2003
	Expiration Date:

	 	November 2, 2010

     THIS WARRANT CERTIFIES THAT, for the agreed upon value of $1.00 and for other good and valuable
consideration, SILICON VALLEY BANK (“Holder”) is entitled to purchase the number of fully paid and
nonassessable shares of the class of securities (the “Shares”) of the company (the “Company”) at
the Warrant Price, all as set forth above and as adjusted pursuant to Article 2 of this Warrant,
subject to the provisions and upon the terms and conditions set forth in this Warrant.

ARTICLE
1. EXERCISE.

          1.1 Method of Exercise. Holder may exercise this Warrant by delivering a duly
executed Notice of Exercise in substantially the form attached as Appendix 1 to the principal
office of the Company. Unless Holder is exercising the conversion right set forth in Article 1.2,
Holder shall also deliver to the Company a check, wire transfer (to an account designated by the
Company), or other form of payment acceptable to the Company for the aggregate Warrant Price for
the Shares being purchased.

          1.2 Conversion Right. In lieu of exercising this Warrant as specified in Article 1.1,
Holder may from time to time convert this Warrant, in whole or in part, into a number of Shares
determined by dividing (a) the aggregate fair market value of the Shares or other securities
otherwise issuable upon exercise of this Warrant minus the aggregate Warrant Price of such Shares
by (b) the fair market value of one Share. The fair market value of the Shares shall be determined
pursuant to Article 1.3.

          1.3 Fair Market Value. If the Company’s common stock is traded in a public market and
the shares are common stock, the fair market value of each Share shall be the closing price of a
Share reported for the business day immediately before Holder delivers its Notice of Exercise to
the Company (or in the instance where the Warrant is exercised immediately prior to the
effectiveness of the Company’s initial public offering, the “price to public” per share price
specified in the final prospectus

 

 

relating to such offering). If the Company’s common stock is traded in a public market and the
Shares are convertible preferred stock, the fair market value of a Share shall be the closing price
of a share of the Company’s common stock reported for the business day immediately before Holder
delivers its Notice of Exercise to the Company (or, in the instance where the Warrant is exercised
immediately prior to the effectiveness of the Company’s initial public offering, the initial “price
to public” per share price specified in the final prospectus relating to such offering), in both
cases, multiplied by the number of shares of the Company’s common stock into which a Share is
convertible. If the Company’s common stock is not traded in a public market, the Board of Directors
of the Company shall determine fair market value in its reasonable good faith judgment.

          1.4 Delivery of Certificate and New Warrant. Promptly after Holder exercises or
converts this Warrant, but in any event within ten (10) days of such exercise or conversion, and,
if applicable, the Company receives payment of the aggregate Warrant Price, the Company shall
deliver to Holder certificates for the Shares acquired and, if this Warrant has not been fully
exercised or converted and has not expired, a new Warrant representing the Shares not so acquired.

          1.5 Replacement of Warrants. On receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss,
theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and
amount to the Company or, in the case of mutilation, or surrender and cancellation of this Warrant,
the Company shall, at its expense, execute and deliver, in lieu of this Warrant, a new warrant of
like tenor.

          1.6 Treatment of Warrant Upon Acquisition of Company.

               1.6.1 “Acquisition”. For the purpose of this Warrant, “Acquisition”
means any sale, license, or other disposition of all or substantially all of the assets of the
Company, or any reorganization, consolidation, or merger of the Company where the holders of the
Company’s securities before the transaction beneficially own less than 50% of the outstanding
voting securities of the surviving entity after the transaction.

               1.6.2 Treatment of Warrant at Acquisition.

               (a) Upon the written request of the Company, Holder agrees that, in the event of an
Acquisition in which the sole consideration is cash, either (a) Holder shall exercise its
conversion or purchase right under this Warrant and such exercise will be deemed effective
immediately prior to the consummation of such Acquisition or (b) if Holder elects not to exercise
the Warrant, this Warrant will expire upon the consummation of such Acquisition. The Company shall
provide the Holder with written notice of its request relating to the foregoing (together with such
reasonable information as the Holder may request in connection with such contemplated Acquisition
giving rise to such notice), which is to be delivered to Holder not less than ten (10) days prior
to the closing of the proposed Acquisition.

               (b) Upon the written request of the Company, Holder agrees that, in the event of an
Acquisition that is an “arms length” sale of all or substantially all of the Company’s assets (and
only its assets) to a third party that is not an Affiliate (as defined below) of the Company (a
“True Asset Sale”), either (a) Holder shall exercise its conversion or purchase right under this
Warrant and such exercise will be deemed effective immediately prior
to the consummation of such
Acquisition or (b) if Holder elects not to exercise the Warrant, this Warrant will continue until
the Expiration Date if

2

 

the Company continues as a going concern following the closing of any such True Asset Sale. The
Company shall provide the Holder with written notice of its request relating to the foregoing
(together with such reasonable information as the Holder may request in connection with such
contemplated Acquisition giving rise to such notice), which is to be delivered to Holder not less
than ten (10) days prior to the closing of the proposed Acquisition.

               (c) Upon the closing of any Acquisition other than those particularly described in subsections (a)
and (b) above, the successor entity shall assume the obligations of this Warrant, and this Warrant
shall be exercisable for the same securities, cash, and property as would be payable for the Shares
issuable upon exercise of the unexercised portion of this Warrant, as if such Shares were
outstanding on the record date for the Acquisition and subsequent closing. The Warrant Price and/or
number of Shares shall be adjusted accordingly.

As used
herein “Affiliate” shall mean any person or entity that owns or controls directly or
indirectly ten (10) percent or more of the stock of Company, any person or entity that controls or
is controlled by or is under common control with such persons or entities, and each of such
person’s or entity’s officers, directors, joint venturers or partners, as applicable.

          1.7 Conversion or Redemption of Preferred Stock. In the event that all outstanding shares
of the Company’s Series A Convertible Preferred Stock are converted into shares of the Company’s
Common Stock in accordance with the terms of the Company’s Certificate of Incorporation at any time
prior to the Expiration Date, this Warrant shall become exercisable
for Common Stock. In the event
that all outstanding shares of the Company’s Series A Convertible Preferred Stock are redeemed at a
price greater than the then existing Warrant Price in accordance with the terms of the Company’s
Certificate of Incorporation at any time prior to the Expiration Date, this Warrant shall
automatically be deemed converted pursuant to Section 1.2 above as to all Shares for which it shall
not previously have been exercised or converted as of the first Mandatory Redemption Date (as that
term is defined in the Company’s Certificate of Incorporation).

ARTICLE 2. ADJUSTMENTS TO THE SHARES.

          2.1
Stock Dividends, Splits, Etc. If the Company declares or pays a dividend on the
Shares payable in common stock, or other securities, then upon exercise of this Warrant, for each
Share acquired, Holder shall receive, without cost to Holder, the total number and kind of
securities to which Holder would have been entitled had Holder owned the Shares of record as of the
date the dividend occurred. If the Company subdivides the Shares by
reclassification or otherwise
into a greater number of shares or takes any other action which increase the amount of stock into
which the Shares are convertible, the number of shares purchasable hereunder shall be
proportionately increased and the Warrant Price shall be proportionately decreased. If the
outstanding shares are combined or consolidated, by reclassification or otherwise, into a lesser
number of shares, the Warrant Price shall be proportionately increased and the number of Shares
shall be proportionately decreased.

          2.2 Reclassification, Exchange, Combinations or Substitution. Upon any
reclassification, exchange, substitution, or other event that results in a change of the number
and/or class of the securities issuable upon exercise or conversion of this Warrant, Holder shall
be entitled to receive, upon exercise or conversion of this Warrant,

3

 

the number and kind of securities and property that Holder would have received for the Shares if
this Warrant had been exercised immediately before such reclassification, exchange, substitution,
or other event. Such an event shall include any automatic conversion of the outstanding or issuable
securities of the Company of the same class or series as the Shares to common stock pursuant to the
terms of the Company’s Certificate of Incorporation upon the closing of a registered public
offering of the Company’s common stock. The Company or its successor shall promptly issue to Holder
an amendment to this Warrant setting forth the number and kind of such new securities or other
property issuable upon exercise or conversion of this Warrant as a result of such reclassification,
exchange, substitution or other event that results in a change of the number and/or class of
securities issuable upon exercise or conversion of this Warrant. The amendment to this Warrant
shall provide for adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Article 2 including, without limitation, adjustments to the
Warrant Price and to the number of securities or property issuable upon exercise of the new
Warrant. The provisions of this Article 2.2 shall similarly apply to successive reclassifications,
exchanges, substitutions, or other events.

          2.3 Adjustments for Diluting Issuances. The Warrant Price and the number of Shares
issuable upon exercise of this Warrant or, if the Shares are Preferred Stock, the number of shares
of common stock issuable upon conversion of the Shares, shall be subject to adjustment, from time
to time in the manner set forth in the Company’s Certificate of Incorporation as if the Shares were
issued and outstanding on and as of the date of any such required adjustment. The provisions set
forth for the Shares in the Company’s Certificate of Incorporation relating to the above in effect
as of the Issue Date may not be amended, modified or waived, without the prior written consent of
Holder unless such amendment, modification or waiver affects the rights associated with the Shares
in the same manner as such amendment, modification or waiver affects the rights associated with all
other shares of the same series and class as the Shares granted to the Holder.

          2.4
No Impairment. The Company shall not, by amendment of its Certificate of
Incorporation or through a reorganization, transfer of assets, consolidation, merger, dissolution,
issue, or sale of securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms to be observed or performed under this Warrant by the Company,
but shall at all times in good faith assist in carrying out of all the provisions of this Article 2
and in taking all such action as may be necessary or appropriate to protect Holder’s rights under
this Article against impairment.

          2.5 Fractional Shares. No fractional Shares shall be issuable upon exercise or
conversion of the Warrant and the number of Shares to be issued shall be rounded down to the
nearest whole Share. If a fractional share interest arises upon any exercise or conversion of the
Warrant, the Company shall eliminate such fractional share interest by paying Holder the amount
computed by multiplying the fractional interest by the fair market value of a full Share.

          2.6 Certificate as to Adjustments. Upon each adjustment of the Warrant Price, the
Company shall promptly notify Holder in writing, and, at the Company’s expense, promptly compute
such adjustment, and furnish Holder with a certificate of its Chief Financial Officer setting forth
such adjustment and the facts upon which such adjustment is based. The Company shall, upon written
request, furnish

4

 

Holder a certificate setting forth the Warrant Price in effect upon the date thereof and the series
of adjustments leading to such Warrant Price.

ARTICLE 3. REPRESENTATIONS AND COVENANTS OF THE COMPANY.

          3.1 Representations and Warranties. The Company represents and warrants to the Holder
as follows:

               (a) The initial Warrant Price referenced on the first page of this Warrant is not greater
than (i) the price per share at which the Shares were last issued in an arms-length transaction in
which at least $500,000 of the Shares were sold and (ii) the fair market value of the Shares as of
the date of this Warrant.

               (b) All Shares which may be issued upon the exercise of the purchase right represented by
this Warrant, and all securities, if any, issuable upon conversion of the Shares, shall, upon
issuance, be duly authorized, validly issued, fully paid and nonassessable, and free of any liens
and encumbrances except for restrictions on transfer provided for herein or under applicable
federal and state securities laws.

               (c) The Company further covenants and agrees that, during the period within which the rights
represented by this Warrant may be exercised, the Company will at all times have authorized and
reserved for the purpose of issue or transfer upon exercise of the subscription rights evidenced by
this Warrant, a sufficient number of Shares of authorized but unissued stock, or other securities
and property, when and as required to provide for the exercise of the rights represented by this
Warrant.

               (d) The capitalization table previously provided to Holder remains true and complete as of
the Issue Date.

          3.2 Notice of Certain Events. if the Company proposes at any time (a) to declare any
dividend or distribution upon any of its stock, whether in cash, property, stock, or other
securities and whether or not a regular cash dividend; (b) to offer for sale additional shares of
any class or series of the Company’s stock; (c) to effect any reclassification or recapitalization
of any of its stock; (d) to merge or consolidate with or into any other corporation, or sell,
lease, license, or convey all or substantially all of its assets, or to liquidate, dissolve or wind
up; or (e) offer holders of registration rights the opportunity to participate in an underwritten
public offering of the company’s securities for cash, then, in connection with each such event, the
Company shall give Holder: (1) at least 10 days prior written notice of the date on which a record
will be taken for such dividend, distribution, or subscription rights (and specifying the date on
which the holders of common stock will be entitled thereto) or for determining rights to vote, if
any, in respect of the matters referred to in (c) and (d) above; (2) in the case of the matters
referred to in (c) and (d) above at least 10 days prior written notice of the date when the same
will take place (and specifying the date on which the holders of common stock will be entitled to
exchange their common stock for securities or other

property deliverable upon the occurrence of such event); and (3) in the case of the matter referred
to in (e) above, the same notice as is given to the holders of such registration rights.

          3.3 Registration Under Securities Act of 1933, as amended. The Company agrees that (i) the
Shares or, if the Shares are convertible into common stock of the Company, such common stock, shall
have certain incidental, or “Piggyback,” and Form S3 registration rights pursuant to and as set
forth in the Company’s Second

5

 

Amended and Restated Investor Rights Agreement (the “Investor Rights Agreement”) and (ii) the
Holder shall be deemed a “Purchaser” as that term is defined and used in the Company’s Investor
Rights Agreement. The provisions set forth in the Company’s Investor Rights Agreement or similar
agreement relating to the above in effect as of the Issue Date may not be amended, modified or
waived without the prior written consent of Holder unless such amendment, modification or waiver
affects the rights associated with the Shares in the same manner as such amendment, modification,
or waiver affects the rights associated with all other shares of the same series and class as the
Shares granted to the Holder.

          3.4 No Shareholder Rights. Except as provided in this Warrant, the Holder will not have any
rights as a shareholder of the Company until the exercise of this Warrant.

ARTICLE 4. REPRESENTATIONS. WARRANTIES OF THE HOLDER. The Holder represents and warrants to
the Company as follows:

          4.1 Purchase for Own Account. This Warrant and the securities to be acquired upon
exercise of this Warrant by the Holder will be acquired for investment for the Holder’s account,
not as a nominee or agent, and not with a view to the public resale or distribution within the
meaning of the Act. Holder also represents that the Holder has not been formed for the specific
purpose of acquiring this Warrant or the Shares.

          4.2 Disclosure of Information. The Holder has received or has had full access to all
the information it considers necessary or appropriate to make an informed investment decision with
respect to the acquisition of this Warrant and its underlying securities. The Holder further has
had an opportunity to ask questions and receive answers from the Company regarding the terms and
conditions of the offering of this Warrant and its underlying securities and to obtain additional
information (to the extent the Company possessed such information or could acquire it without
unreasonable effort or expense) necessary to verify any information furnished to the Holder or to
which the Holder has access.

          4.3 Investment Experience. The Holder understands that the purchase of
this Warrant and its underlying securities involves substantial risk. The Holder has experience
as an investor in securities of companies in the development stage and acknowledges that the Holder
can bear the economic risk of such Holder’s investment in this Warrant and its underlying
securities and has such knowledge and experience in financial or business matters that the Holder
is capable of evaluating the merits and risks of its investment in this Warrant and its underlying
securities and/or has a preexisting personal or business relationship with the Company and certain
of its officers, directors or controlling persons of a nature and
duration that enables the Holder
to be aware of the character, business acumen and financial circumstances of such persons.

          4.4 Accredited Investor Status. The Holder is an “accredited investor” within the
meaning of Regulation D promulgated under the Act.

          4.5
The Act. The Holder understands that this Warrant and the Shares issuable upon
exercise or conversion hereof have not been registered under the Act in reliance upon a specific
exemption therefrom, which exemption depends upon, among other things, the bona fide nature of the
Holder’s investment intent as expressed herein. The Holder understands that this Warrant and the
Shares issued upon any exercise or conversion hereof must be held indefinitely unless subsequently
registered

6

 

under the 1933 Act and qualified under applicable state securities laws, or unless exemption from
such registration and qualification are otherwise available.

ARTICLE 5. MISCELLANEOUS.

          5.1
Term. This Warrant is exercisable in whole or in part at any time and from time
to time on or before the Expiration Date. The “Expiration Date” shall be the earlier of (i) the
seventh anniversary of the Issue Date and (ii) the Mandatory Conversion Date as such date is
defined in the Company’s Certificate of Incorporation.

          5.2 Legends. This Warrant and the Shares (and the securities issuable,
directly or indirectly, upon conversion of the Shares, if any) shall be imprinted with a legend in
substantially the following form:

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE ACT, OR THE
SECURITIES LAWS OF ANY STATE AND, EXCEPT AND PURSUANT TO THE PROVISIONS OF ARTICLE 5 BELOW, MAY NOT
BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED
UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAW OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND
SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR
HYPOTHECATION IS EXEMPT FROM REGISTRATION.

          5.3 Compliance with Securities Laws on Transfer. This Warrant and the Shares
issuable upon exercise of this Warrant (and the securities issuable, directly or indirectly, upon
conversion of the Shares, if any) may not be transferred or assigned in whole or in part without
compliance with applicable federal and state securities laws by the transferor and the transferee
(including, without limitation, the delivery of investment representation letters and legal
opinions reasonably satisfactory to the Company, as reasonably requested by the Company). The
Company shall not require Holder to provide an opinion of counsel if the transfer is to Silicon
Valley Bancshares (Holder’s parent company) or any other affiliate of Holder. Additionally, the
Company shall also not require an opinion of counsel if there is no material question as to the
availability of current information as referenced in Rule 144(c), Holder represents that it has
complied with Rule 144(d) and (e) in reasonable detail, the selling broker represents that it has
complied with Rule 144(f), and the Company is provided with a copy of Holder’s notice of proposed
sale. At the written request of the Holder, who proposes to sell Stock issuable upon the exercise
of the Warrant in compliance with Rule 144, within ten (10) days after receipt of such request, a
written statement confirming the Company’s compliance with the filing requirements of the
Securities and Exchange Commission as set forth in such Rule, as such Rule may be amended from time
to time. In addition, the Company agrees to provide the Holder within ten (10) days of written
request such additional documents as the Holder may require in order to exercise its rights under
this Warrant and transfer the Shares issued hereunder and carry out the intent of this Warrant,
including, without limitation, an opinion of counsel for the benefit of the Holder or any
underwriter or broker.

          5.4 Transfer Procedure. Upon receipt by Holder of the executed Warrant, Holder will
transfer all of this Warrant to Silicon Valley Bancshares, Holder’s parent company, by execution of
an Assignment substantially in the form of Appendix 2.

7

 

Subject to the provisions of Article 5.3 and upon providing Company with written notice, Silicon
Valley Bancshares and any subsequent Holder may transfer all or part of this Warrant or the Shares
issuable upon exercise of this Warrant (or the Shares issuable directly or indirectly, upon
conversion of the Shares, if any) to any transferee, provided, however, in connection with any such
transfer, Silicon Valley Bancshares or any subsequent Holder will give the Company notice of the
portion of the Warrant being transferred with the name, address and taxpayer identification number
of the transferee and Holder will surrender this Warrant to the Company for reissuance to the
transferee(s) (and Holder if applicable). The Company may refuse to transfer this Warrant or the
Shares to any person who directly competes with the Company, unless, in either case, the stock of
the Company is publicly traded.

          5.5 Notices. All notices and other communications from the Company to the Holder, or vice
versa, shall be deemed delivered and effective when given personally or mailed by first-class
registered or certified mail, postage prepaid, at such address as may have been furnished to the
Company or the Holder, as the case may (or on the first business day after transmission by
facsimile) be, in writing by the Company or such holder from time to time. Effective upon receipt
of the fully executed Warrant and the initial transfer described in Article 5.4 above, all notices
to the Holder shall be addressed as follows until the Company receives notice of a change of
address in connection with a transfer or otherwise:

Silicon Valley Bancshares

Attn: Treasury Department

3003 Tasman Drive, HA 200

Santa Clara, CA 95054

Telephone: 408-654-7400

Facsimile: 408-496-2405

     Notice to the Company shall be addressed as follows until the Holder receives notice of a change in
address:

SourceFire, Inc.

Attn: General Counsel

9212 Berger Road, Suite 200

Columbia, Maryland 21046

Telephone: 410-290-1616

Facsimile: 410-290-0024

          5.6 Waiver. This Warrant and any term hereof may be changed, waived, discharged or
terminated only by an instrument in writing signed by the party against which enforcement of such
change, waiver, discharge or termination is sought.

          5.7 Attorney’s Fees. In the event of any dispute between the parties concerning the
terms and provisions of this Warrant, the party prevailing in such dispute shall be entitled to
collect from the other party all costs incurred in such dispute, including reasonable attorney’s
fees.

          5.8 Automatic Conversion upon Expiration. In the event that, upon the Expiration
Date, the fair market value of one Share (or other security issuable upon the exercise hereof) as
determined in accordance with Section 1.3 above is greater than the Exercise Price in effect on
such date, then this Warrant shall automatically be

8

 

deemed on
and as of such date to be converted pursuant to Section 1.2 above as to all Shares (or
such other securities) for which it shall not previously have been exercised or converted, and the
Company shall promptly deliver a certificate representing the Shares (or such other securities)
issued upon such conversion to the Holder.

          5.9 Counterparts. This Warrant may be executed in counterparts, all of which together
shall constitute one and the same agreement.

          5.10 Governing Law. This Warrant shall be governed by and construed in accordance with
the laws of the State of Delaware, without giving effect to its principles regarding conflicts of
law.

[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

9

 

	 	 	 	 	 	 	 
	“COMPANY”	 	 
	 
	 	 	 	 	 	 
	Sourcefire, Inc.	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Todd P. Headley	 	 
	 

	 	 	 	 
	Name:	 	Todd P. Headley	 	 
	Title:	 	CFO	 	 
	 
	 	 	 	 	 	 
	“HOLDER”	 	 
	 
	 	 	 	 	 	 
	Silicon Valley Bank	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Megan Scheffel	 	 
	 	 	 	 	 
	Name:	 	Megan Scheffel	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	(Print)	 	 
	Title:	 	VP	 	 

10

 

APPENDIX 1

NOTICE OF EXERCISE

     1. Holder
elects to purchase ___ shares of the Common/Series ___ Preferred [strike
one] Stock of ___ pursuant to the terms of the attached Warrant, and tenders payment of
the purchase price of the shares in full.

               [or]

     1. Holder elects to convert the attached Warrant into Shares/cash [strike one] in the
manner specified in the Warrant. This conversion is exercised for
___ of the
Shares covered by the Warrant.

     [Strike paragraph that does not apply.]

     2. Please issue a certificate or certificates representing the shares in the name specified
below:

	 	 	 	 	 
	 

	 	 

     Holders Name
	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	     (Address)	 	 

     3. By its execution below and for the benefit of the Company, Holder hereby restates each of
the representations and warranties in Article 4 of the Warrant as the date hereof.

	 	 	 	 	 
	 

	 	HOLDER:
	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:                                                           	 	 
	 
	 

	 	Name:                                                      	 	 
	 
	 

	 	Title:                                                        	 	 
	 
	 

	 	(Date):                                                      	 	 

11

 

APPENDIX 2

ASSIGNMENT

     For value received, Silicon Valley Bank hereby sells, assigns and transfers unto

	 	 	 	 	 	 	 
	 

	 	Name:

Address:
	 	Silicon Valley Bancshares

3003 Tasman Drive (HA-200)
 Santa Clara, CA 95054
	 	 
	 
	 	 	Tax ID:91-1962278	 	 

that
certain Warrant to Purchase Stock issued by SourceFire, Inc. (the “Company”), on November ___,
2003 (the “Warrant”) together with all rights, title and interest therein.

	 	 	 
	 

	 	SILICON VALLEY BANK
	 
	 	 
	 

	 	By:                                                               
	 

	 	Name:                                                          
	 

	 	Title:                                                           

Date: November__, 2003

By its execution below, and for the benefit of the Company, Silicon Valley Bancshares makes each of
the representations and warranties set forth in Article 4 of the Warrant as of the date hereof.

	 	 	 
	 

	 	SILICON VALLEY BANCSHARES
	 
	 	 
	 

	 	By:                                                               
	 

	 	Name:                                                          
	 

	 	Title:                                                           

12

 

FIRST
AMENDMENT TO LOAN AND SECURITY AGREEMENT

     THIS
FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Agreement”) is entered into as of
November 3, 2003 by and between SILICON VALLEY BANK, a California-chartered bank (“Bank”) with its
principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan
production office located at 11600 Sunrise Valley Drive, Suite 400, Reston, Virginia 20191 and
SOURCEFIRE, INC., a corporation organized and in good standing in the State of Delaware
(“Borrower”), whose address is 9212 Berger Road, Suite 200, Columbia, Maryland 21046.

RECITALS.

     A. Borrower and Bank have entered into that certain Loan and Security Agreement dated November 29,
2002 (as amended from time to time, the “Loan Agreement”), pursuant to which Bank has agreed to
establish a revolving line of credit in the original maximum principal amount of Two Million
Dollars ($2,000,000) (the “Committed Revolving Line”) and a committed equipment line of credit in
the original principal amount of One Million Dollars ($1,000,000) (the “Committed Equipment Line”).

     B. Borrower has requested that Bank (i) increase the Committed Revolving Line from Two Million
Dollars ($2,000,000) to Three Million Dollars ($3,000,000), (ii) extend the maturity date of the
Committed Revolving Line to March 29, 2005, (iii) extend the date through which Equipment Advances
can be made under the Committed Equipment Line, (iv) amend certain covenants set forth in the Loan
Agreement, and (v) make such other changes to the Loan Agreement as are more specifically set forth
herein, and Bank has agreed to the foregoing on the condition, among others, that this Agreement be
executed and delivered by Borrower to Bank.

 

 

     C. Unless otherwise defined herein, capitalized terms used herein shall have the respective
meanings set forth in the Loan Agreement.

     NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, Borrower and Bank do hereby agree as
follows:

     1. Recitals. The parties hereto acknowledge and agree that the above Recitals are
true and correct in all material respects and that the same are incorporated herein and made a part
hereof by reference.

     2. Outstanding Obligations. The parties hereto acknowledge and agree (a) that the
outstanding principal balance of the Committed Equipment Line as of the date hereof is $383,861.53,
(b) that interest on the unpaid principal balance of the Equipment Note has been paid through
September 30, 2003, (c) as of the date hereof, the Bank has made Equipment Advances to Borrower in
the amount of Five Hundred Forty-Eight Thousand Eight Hundred Dollars ($548,800) and (d) that the
unpaid principal balance of the Equipment Note, together with accrued and unpaid interest thereon,
is due and owing subject to the terms of repayment hereinafter set forth, without defense or
offset.

     3. Defined Terms. Notwithstanding anything set forth in the Loan Agreement to the
contrary, from and after the date hereof, the definitions of “Committed Revolving Line”, “Credit
Extension” and “Revolving Maturity Date” set forth in Section 13.1 of the Loan Agreement are hereby
amended and restated in their entirety as follows:

     “Committed Revolving Line” means a credit extension of up to Three Million Thousand Dollars
($3,000,000).

     “Credit Extension” is each Advance, Equipment Advance, Letter of Credit, , or any other extension
of credit by Bank for Borrower’s benefit.

2

 

     “Revolving Maturity Date” means March 29, 2005.

     The following definition is added to Section 13.1 of the Loan Agreement:

     “EBITDA” means for any period of determination thereof Borrower’s net income (or loss), plus income
taxes, plus interest expense, plus depreciation, amortization and other non-cash charges in
accordance with GAAP as shown on the Borrower’s income statement delivered to Bank.

     5. Revolving
Advances. Section 2.1.1(a) of the Loan Agreement is amended and
restated in its entirety as follows:

     (a) Bank will make Advances not exceeding the lesser of (i) the Committed Revolving Line, minus all
amounts for services utilized under the Cash Management Services Sublimit minus the amount of all
outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit or (ii) the
Borrowing Base, minus the amount of all outstanding Letters of Credit (including drawn but
unreimbursed Letters of Credit), it being understood that the Cash Management Services Sublimit
will be available without respect to the amount of the Borrowing Base. Amounts borrowed under this
Section may be repaid and reborrowed during the term of this Agreement. All advances shall be
evidenced by the Revolving Promissory Note to be executed and delivered by Borrower to Bank on the
Closing Date and shall be repaid in accordance with the terms of the Revolving Promissory Note.

     6. Letters of Credit Sublimit. The following Section is added to the Loan
Agreement immediately after Section 2.1.2 as Section 2.1.2A:

     2.1.2A  Letters of Credit Sublimit.

     Bank will issue or have issued Letters of Credit for Borrower’s account not exceeding (i) the
lesser of the Committed Revolving Line or the Borrowing Base, minus (ii) the outstanding principal
balance of the Advances, minus the Cash Management Sublimit, however, the face amount of
outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit) may not at any
time exceed One Hundred Thousand Dollars ($100,000). Borrower’s Letter of Credit reimbursement
obligation will be secured by unencumbered cash on terms acceptable to Bank at any time upon the
Revolving Maturity Date if the term of this Agreement is not extended by Bank. Borrower agrees to
execute any further documentation in connection with the Letters of Credit as Bank may reasonably
request. Prior to or simultaneously with the opening of each Letter of Credit, Borrower shall pay
to Bank, a letter of credit fee (each a “Letter of Credit Fee” and collectively the “Letter of
Credit Fees”) in an amount equal to one percent (1.0%) per annum of the face amount of the Letter
of Credit. Such Letter of Credit Fees shall be paid in advance upon the issuance of the Letter of
Credit and upon each anniversary thereof, if any. In addition, Borrower shall pay to Bank any and
all

3

 

additional issuance, negotiation, processing, transfer or other fees to the extent
and as and when required by Bank.

     7. Equipment Advances. Section 2.1.3(a) of the Loan Agreement is amended and
restated in its entirety as follows:

     Through
September 30, 2004 (the “Equipment Availability End Date”), Bank will make
advances (“Equipment Advance” and, collectively, “Equipment Advances”) not exceeding the
Committed Equipment Line. The Equipment Advances may only be used to finance or refinance
Eligible Equipment or Other Equipment purchased on or after ninety (90) days before the
date of each Equipment Advance; provided, however, that if the first Equipment Advance is
made within thirty (30) days of the Closing Date, it may be used to finance or refinance
Eligible Equipment purchased after January 1, 2002. Equipment Advances may not exceed one
hundred percent (100%) of the invoice for Eligible Equipment, excluding taxes, shipping,
warranty charges, freight discounts and installation expense. Other Equipment may
constitute up to twenty-five percent (25%) of the aggregate amount of all Equipment
Advances, provided that for all Equipment Advances from and after November  , 2003, Other
Equipment may be up to One Hundred Twelve Thousand Eight Hundred Dollars ($112,800). Each
Equipment Advance must be for a minimum of One Hundred Thousand and no/100 Dollars ($
100,000.00). The number of Equipment Advances is limited to eight (8).

     8. Fixed Rate Option. Bank and Borrower agree that the definition of “Fixed Rate
Option” in Section 2.3(a) of the Loan Agreement shall mean with respect to each Equipment Advance
made prior to November 1, 2003, seven percent (7.0%) per annum and with respect to any Equipment
Advances made from and after November 1, 2003, six and one half percent (6.5%).

     9. Financial
Statements, Reports, Certificates. Sections 6.2 (b) and (d) of the Loan
Agreement are hereby amended and restated in their entirety, as follows:

     (b) During any calendar month where Advances are made or outstanding under the
Committed Revolving Line, within thirty (30) days after the last day of such month,
Borrower will deliver to Bank a Borrowing Base Certificate signed by a Responsible Officer
in the form of Exhibit C, with aged listings of accounts receivable.

     (d) Borrower will allow Bank to audit Borrower’s Accounts at Borrower’s expense. Such
audits will be conducted no more often than every twelve (12) months unless an Event of
Default has occurred and is continuing. The initial audit will be

4

 

conducted within sixty days of any Advance or other Credit Extension under the
Committed Revolving Line.

     10. Primary Accounts. Section 6.7 (Primary Accounts) of the Loan Agreement is
hereby amended and restated in its entirety, as follows:

     6.7 Primary Accounts. Borrower will maintain not less than the lesser of (i) sixty
five percent (65%) of its primary depository, operating, and investment accounts or (ii) Two
Million Five Hundred Thousand Dollars ($2,500,000) with Bank or its affiliates.

     11. Financial Covenants. Section 6.8 (Financial Covenants) of the Loan Agreement is
hereby amended and restated in its entirety, as follows:

     6.8 Financial Covenants.

     (a)
Minimum Quarterly EBITDA. Borrower will maintain EBITDA of not less than
the following amounts for the quarterly period ending as of each of the dates below:

	 	 	 
	DATE	 	AMOUNT
	December 31,2003
	 	($2,000,000);
	March 31,2004 and June 30,2004
	 	($1,750,000);
	September 30,2004
	 	($1,250,000); and
	December 31,2004
	 	$250,000.

     (b) EBITDA for Fiscal Year 2005 and Beyond. The Quarterly EBITDA covenant for
Borrower’s first quarter of fiscal year 2005 and beyond shall be determined by Bank in
Bank’s sole but reasonable discretion upon Bank’s receipt and satisfactory review of the
Borrower’s board of directors approved financial plan. Borrower agrees to provide Bank with
its board of directors approved financial plan no later than November 30,2004.

     12. Borrowing Base Certificate. Exhibit C to the Loan Agreement is hereby replaced in
its entirety with Exhibit C attached hereto and made a part hereof.

     13. Compliance
Certificate. Exhibit D to the Loan Agreement is hereby replaced in its
entirety with Exhibit D attached hereto and made a part hereof.

     14. Payment
Of Loan Fees. At the time of the execution and delivery of this
Amendment, Borrower shall pay to Bank nonrefundable fees (a) in the amount of Seventeen

5

 

Thousand Five Hundred Dollars ($17,500) for the increase and extension of the Committed
Revolving Line (the “Revolving Loan Fee”), and (b) in the amount of One Thousand Fifty Dollars
($1,050) in connection with the amendment to the Committed Equipment Line (the “Equipment Line
Fee”, and together with the Revolving Loan Fee, collectively, the “Loan Fees”), plus all
out-of-pocket expenses, including, without limitation, Bank’s reasonable attorney’s fees.

     15. Replacement Promissory Notes. The Revolving Promissory Note issued pursuant to the
Loan Agreement in connection with the Committed Revolving Line is being replaced in its entirety
with Exhibit E attached hereto. Borrower shall execute and deliver to Bank on the date
hereof its Amended and Restated Revolving Promissory Note in the form of Exhibit E attached hereto
and incorporated herein by reference (the “Replacement Revolving Promissory Note”), in substitution
for and not satisfaction of, the issued and outstanding Revolving Promissory Note, and the
Replacement Revolving Promissory Note shall be one of the Loan Documents. The promissory note being
substituted pursuant to this Agreement shall be marked “Replaced” and returned to Borrower promptly
after the execution and delivery of the Replacement Revolving Promissory Note.

     16. Conditions Precedent. This Agreement shall become effective on the date Bank
receives the following documents, each of which shall be satisfactory in form and substance to
Bank:

     (a) The fully executed Replacement Revolving Promissory Note;

     (b) A fully executed Warrant to Purchase Stock in the form of Exhibit G attached
hereto and made a part hereof;

6

 

     (c) Proof that Borrower has paid all costs and expenses to Bank in connection with this
Agreement, including but not limited to, the Loan Fees and Bank’s reasonable attorneys fees; and

     (d) Such other information, instruments, opinions, documents, certificates and reports as
Bank may deem necessary.

     17. Representations. Borrower hereby confirms that the representations set forth in
Section 5 of the Loan Agreement, are true and correct as of the date hereof, and that no Event of
Default has occurred or is continuing immediately prior to or upon the execution of this Agreement.

     18. Additional Defaults. In addition to those Events of Default specifically
enumerated in the Loan Agreement if Borrower shall fail to comply with the terms of any covenant or
agreement contained herein, such failure shall constitute an Event of Default and shall entitle
Bank to exercise all rights and remedies provided in the Loan Agreement, as well as all other
rights and remedies provided to Bank under the terms of any of the other Loan Documents.

     19. Counterparts. This Agreement may be executed in any number of duplicate originals or
counterparts, each of which duplicate original or counterpart shall be deemed to be an original and
all taken together shall constitute one and the same instrument.

     20. Loan
Documents; Governing Law; Etc. This Agreement is one of the Loan Documents
defined in the Loan Agreement, and this Agreement and, except for the Warrant attached hereto as
Exhibit G which shall be governed by the laws of the State of Delaware, each of the Loan
Documents shall be governed and construed in accordance with the laws of the

7

 

Commonwealth of Virginia. The headings and captions in this Agreement are for the convenience of the parties only and are not a part of this Agreement.

     21. Acknowledgments. Borrower hereby confirms to Bank the enforceability and
validity of each of the Loan Documents with respect to the Borrower. In addition, Borrower hereby
agrees that the execution and delivery of this Agreement and the terms and provisions, covenants or
agreements contained in this Agreement shall not in any manner release, impair, lessen, modify,
waive or otherwise limit the liability and obligations of Borrower under the terms of any of the
Loan Documents, except as otherwise specifically set forth in this Agreement. Borrower issues,
ratifies and confirms the representations, warranties and covenants contained in the Loan
Documents.

     22. Modifications. This Agreement may not be supplemented, changed, waived,
discharged, terminated, modified or amended, except by written instrument executed by the parties.

[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

8

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
date first above written.

	 	 	 	 	 	 	 	 	 
	WITNESS/ATTEST:	 	 	 	SOURCEFIRE, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	/s/
Nick Margarites

	 	 	 	By:
	 	/s/ Todd P. Headley
	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Todd P. Headley	 	 
	 

	 	 	 	 	 	Title: CFO	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	SILICON VALLEY BANK	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Megan Scheffel	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Megan Scheffel	 	 
	 

	 	 	 	 	 	Title: VP	 	 

9

 

EXHIBIT C

BORROWING BASE CERTIFICATE

	 	 	 	 	 	 	 	 	 	 	 
	Borrower:

	 	Sourcefire, Inc.
	 	 
	 	Bank:
	 	Silicon Valley Bank
	 	 
	 

	 	9212 Berger Road
	 	 	 	 	 	3003 Tasman Drive	 	 
	 

	 	Suite 200
	 	 	 	 	 	Santa Clara, CA 95054	 	 
	 

	 	Columbia, Maryland 21046	 	 	 	 	 	 	 	 
	Commitment Amount: $3,000,000.00	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	ACCOUNTS RECEIVABLE	 	 	 	 
	1.	 	Accounts
Receivable Book Value as of ____
	 	 	 	$
	 	 	 
	 	 	 	 
	2.	 	Additions (please explain on reverse)
	 	 	 	$
	 	 	 
	 	 	 	 
	3.	 	TOTAL ACCOUNTS RECEIVABLE
	 	 	 	$
	 	 	 
	 	 	 	 
	 	 	 
	 	 	 	 
	ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)	 	 	 	 
	4.	 	Amounts over 90 days due
	 	$	 	 
	 	 	 
	 	 	 	 
	5.	 	Balance of 50% over 90 day accounts
	 	$	 	 
	 	 	 
	 	 	 	 
	6.	 	Credit balances over 90 days
	 	$	 	 
	 	 	 
	 	 	 	 
	7.	 	Concentration Limits
	 	$	 	 
	 	 	 
	 	 	 	 
	8.	 	Foreign Accounts
	 	$	 	 
	 	 	 
	 	 	 	 
	9.	 	Governmental Accounts not perfected under
Federal Assignment of Claims Act
	 	$	 	 
	 	 	 
	 	 	 	 
	10.	 	Contra Accounts
	 	$	 	 
	 	 	 
	 	 	 	 
	11.	 	Promotion or Demo Accounts
	 	$	 	 
	 	 	 
	 	 	 	 
	12.	 	Intercompany/Employee Accounts
	 	$	 	 
	 	 	 
	 	 	 	 
	13.	 	Other (please explain on reverse)
	 	$	 	 
	 	 	 
	 	 	 	 
	14.	 	TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS
	 	 	 	$
	 	 	 
	 	 	 	 
	15.	 	Eligible Accounts (#3 minus #14)
	 	 	 	$
	 	 	 
	 	 	 	 
	16.	 	LOAN VALUE OF ACCOUNTS (80% of #15)
	 	 	 	$
	 	 	 
	 	 	 	 
	 	 	 
	 	 	 	 
	BALANCES	 	 	 	 
	17.	 	Maximum Loan Amount
	 	$3,000,000.00	 	 
	18.	 	Total Funds Available [Lesser of #17 or #16]
	 	 	 	$
	 	 	 
	 	 	 	 
	19.	 	Present balance owing on Line of Credit
	 	$	 	 
	 	 	 
	 	 	 	 
	20.	 	Outstanding under Sublimits (Cash Management and LC’s)
	 	$	 	 
	 	 	 
	 	 	 	 
	21.	 	RESERVE POSITION (#18 minus #19 and #20)
	 	 	 	$
	 	 	 
	 	 	 	 

The undersigned represents and warrants that this is true, complete and correct, and that
the information in this Borrowing Base Certificate complies with the representations and
warranties in the Loan and Security Agreement between the undersigned and Silicon Valley Bank.

COMMENTS:

By:                                                             

               Authorized Signer

BANK USE ONLY

Rec’d By:                                        

Auth. Signer

Date:                                        

Verified:                                        

Auth. Signer

Date:                                        

 

 

EXHIBIT D

	 	 	 
	TO:
	 	SILICON VALLEY BANK

	 	 	3003 Tasman Drive

	 	 	Santa Clara, CA 95054

	 	 	 

	FROM:
	 	SOURCEFIRE, INC.

	 	 	9212 Berger Road

	 	 	Suite 200

	 	 	Columbia, Maryland 21046

     The undersigned authorized officer of SOURCEFIRE, INC. (“Borrower”) certifies that under the
terms and conditions of the Loan and Security Agreement between Borrower and Bank (the
“Agreement”), (i) Borrower is in complete compliance for the period ending                     with all
required covenants except as noted below and (ii) all representations and warranties in the
Agreement are true and correct in all material respects on this date. Attached are the required
documents supporting the certification. The Officer certifies that these are prepared in
accordance with Generally Accepted Accounting Principles (GAAP) consistently applied from one
period to the next except as explained in an accompanying letter or footnotes. The Officer
acknowledges that no borrowings may be requested at any time or date of determination that
Borrower is not in compliance with any of the terms of the Agreement, and that compliance is
determined not just at the date this certificate is delivered.

Please indicate compliance status by circling Yes/No under “Complies” column.

	 	 	 	 	 	 	 
	Reporting Covenant	 	Required	 	Complies
	Monthly financial statements + CC

	 	Monthly within 30 days
	 	Yes
	 	No
	Annual (Audited)

	 	FYE within 120 days
	 	Yes
	 	No
	A/R Agings

	 	Monthly within 30 days
	 	Yes
	 	No
	A/R Audit

	 	Initial and -Annual
	 	Yes
	 	No
	Borrowing Base Certificate

	 	Monthly when borrowing
within 30 days
	 	Yes
	 	No

	 	 	 	 	 	 	 
	Financial Covenant	 	Required	 	Actual	 	Complies
	Maintain on a quarterly basis:
	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	Minimum EBITDA	 	Quarter Ending	 	Required	 	Actual	 	Complies
	 	 	December 31, 2003
	 	($2,000,000)	 	$	 	Yes	 	No
	 	 	 
	 	 	 	 	 	 	 	 
	 	 	March 31, 2004
	 	($1,750,000)	 	$	 	Yes	 	No
	 	 	 
	 	 	 	 	 	 	 	 
	 	 	June 30, 2004
	 	($1,750,000)	 	$	 	Yes	 	No
	 	 	 
	 	 	 	 	 	 	 	 
	 	 	September 30, 2004
	 	($1,250,000)	 	$	 	Yes	 	No
	 	 	 
	 	 	 	 	 	 	 	 
	 	 	December 31, 2004
	 	 $   250,000	 	$	 	Yes	 	No
	 	 	 
	 	 	 	 	 	 	 	 

 

 

Minimum EBITDA Covenant for Fiscal Year 2005 and beyond shall be set by Bank upon receipt of
Borrower’s Board of Director’s approved financial plan, which projections shall be received no
later than November 30,2004.

Comments Regarding Exceptions: See Attached.

	 	 	 	 	 
	Sincerely,

	 	 
	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	Signature
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	Title
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	Date
	 	 	 	 

BANK
USE ONLY

Received by:                                                            

authorized signer

Date:                                                            

Verified:                                                            

authorized signer

Date:                                                            
                    

Compliance Status:                 Yes       No

 

 

SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT

     THIS SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Agreement”) is entered into as of
March 19, 2004 by and between SILICON VALLEY BANK, a California-chartered bank (“Bank”) with its
principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan
production office located at 8020 Towers Crescent Drive, Suite 475, Vienna, Virginia 22182, and
SOURCEFIRE, INC., a corporation organized and in good standing in the State of Delaware
(“Borrower”), whose address is 9212 Berger Road, Suite 200, Columbia, Maryland 21046.

RECITALS.

     A. Borrower and Bank have entered into that certain Loan and Security Agreement dated November
29, 2002 (as amended from time to time, the “Loan Agreement”), pursuant to which Bank has agreed to
establish a revolving line of credit in the original maximum principal amount of Three
Million Dollars ($3,000,000) (the “Committed Revolving Line”) and a committed equipment line of
credit in the original principal amount of One Million Dollars ($1,000,000) (the “Committed
Equipment Line”).

     B. Borrower failed to maintain EBITDA for the quarterly period ending December 31, 2003 at the
level required by Section 6.8(a) of the Loan Agreement (the “Existing Default”), and has requested
that Bank (i) waive the Existing Default, and (ii) amend the covenants set forth in Section 6.8(a)
of the Loan Agreement as more

 

 

specifically set forth herein, and Bank has agreed to the foregoing on the condition, among
others, that this Agreement be executed and delivered by Borrower to Bank.

     C. Unless otherwise defined herein, capitalized terms used herein shall have the respective
meanings set forth in the Loan Agreement.

     NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, Borrower and Bank do
hereby agree as follows:

     1. Recitals. The parties hereto acknowledge and agree that the above Recitals are
true and correct in all material respects and that the same are incorporated herein and made a part
hereof by reference.

     2. Waiver of Existing Default. Bank hereby waives the Existing Default. It is
understood by the parties hereto, however, that such waiver does not constitute a waiver of any
other provision or term of the Loan Agreement or any related document, nor an agreement to waive in
the future these covenants or any other provision or term of the Loan Agreement or any related
document.

     3. Financial Covenants. Section 6.8 (Financial Covenants) of the Loan Agreement is
hereby amended and restated in its entirety, as follows:

     6.8 Financial Covenants.

     (a) Minimum Cash. Borrower will maintain at all times
unencumbered cash and cash equivalents of not less than $7,500,000.

     3. Compliance Certificate. Exhibit D to the Loan Agreement is hereby replaced in its entirety
with Exhibit D attached hereto and made a part hereof.

     4. Representations. Borrower hereby confirms that the representations set forth in
Section 5 of the Loan Agreement, are true and correct as of the date hereof, and

2

 

that no Event of Default has occurred or is continuing immediately prior to or upon the
execution of this Agreement.

     5. Counterparts. This Agreement may be executed in any number of duplicate
originals or counterparts, each of which duplicate original or counterpart shall be deemed to be
an original and all taken together shall constitute one and the same instrument.

     6. Loan Documents; Governing Law; Etc. This Agreement is one of the Loan Documents
defined in the Loan Agreement, and shall be governed and construed in accordance with the laws of
the Commonwealth of Virginia. The headings and captions in this Agreement are for the
convenience of the parties only and are not a part of this Agreement.

     7. Acknowledgments. Borrower hereby confirms to Bank the enforceability and validity
of each of the Loan Documents with respect to the Borrower. In addition, Borrower hereby agrees
that the execution and delivery of this Agreement and the terms and provisions, covenants or
agreements contained in this Agreement shall not in any manner release, impair, lessen, modify,
waive or otherwise limit the liability and obligations of Borrower under the terms of any of the
Loan Documents, except as otherwise specifically set forth in this
Agreement. Borrower issues, ratifies and confirms the representations, warranties and covenants contained in the Loan
Documents.

     8. Modifications. This Agreement may not be supplemented, changed, waived,
discharged, terminated, modified or amended, except by written instrument executed by the
parties.

3

 

     IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written.

	 	 	 	 	 	 	 	 	 
	WITNESS/ATTEST:	 	 	 	SOURCEFIRE, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	/s/
Thomas McDonough

	 	 	 	By:	 	/s/ Todd P. Headley	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Todd P. Headley	 	 
	 

	 	 	 	 	 	Title: CFO	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	SILICON VALLEY BANK	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Megan Scheffel	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Megan Scheffel	 	 
	 

	 	 	 	 	 	Title: Vice President	 	 

4

 

EXHIBIT D

	 	 	 
	TO:

	 	SILICON VALLEY BANK
	 

	 	3003 Tasman Drive
	 

	 	Santa Clara, CA 95054
	 
	 	 	 	 	 	 	 	 
	FROM:

	 	SOURCEFIRE, INC.
	 

	 	9212 Berger Road
	 

	 	Suite 200
	 

	 	Columbia, Maryland 21046

          The undersigned authorized officer of SOURCEFIRE, INC, (“Borrower”) certifies that under the
terms and conditions of the Loan and Security Agreement between
Borrower and Bank (the “Agreement”), (i) Borrower is in complete compliance for the period ending
                    with
all required covenants except as noted below and (ii) all representations
and warranties in the Agreement are true and correct in all material respects on this date.
Attached are the required documents supporting the certification. The Officer certifies that these are
prepared in accordance with Generally Accepted Accounting Principles
(GAAP) consistently
applied from one period to the next except as explained in an
accompanying letter or footnotes. The
Officer acknowledges that no borrowings may be requested at any time
or date of
determination that Borrower is not in compliance with any of the
terms of the Agreement, and that
compliance is determined not just at the date this certificate is delivered.

     Please indicate compliance status by circling Yes/No under “Complies” column.

	 	 	 	 	 	 	 
	Reporting Covenant	 	 	 	 
	Complies	 	 	 	Required
	Monthly financial statements + CC

	 	Monthly within 30 days
	 	Yes
	 	No
	Annual (Audited)

	 	FYE within 120 days
	 	Yes
	 	No
	A/R Agings

	 	Monthly within 30 days
	 	Yes
	 	No
	A/R Audit

	 	Initial and -Annual
	 	Yes
	 	No
	Borrowing Base Certificate

	 	Monthly when borrowing	 	 	 	 
	 

	 	within 30 days
	 	Yes
	 	No

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Financial Covenant	 	Required	 	 	Actual	 	 	Complies	 
	Minimum Cash
	 	$	7,500,000	 	 	$	                    	 	 	Yes	 	No

Comments Regarding Exceptions: See Attached.

[continued on next page]

 

 

	 	 	 
	Sincerely,
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

Signature

	 	 
	 
	 	 
	 

Title

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	Date
	 	 

     bank use only

	 	 	 	 	 	 	 	 	 	 	 
	Received by:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	AUTHORIZED
SIGNER
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Verified:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	AUTHORIZED
SIGNER
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Compliance Status:	 	Yes   	 	No	 	 

2

 

INVOICE FOR FEES AND/OR EXPENSES

	 	 	 	 	 	 	 
	BORROWER:

	 	SOURCEFIRE, INC.	 	 	 	 
	FED.TAX ID#

	 	52-2289365	 	 	 	 
	 

	 	 

	 	 	 	 
	 
	 	 	 	 	 	 
	LOAN OFFICER:

	 	MEGAN SCHEFFEL	 	 	 	 
	 
	 	 	 	 	 	 
	DATE:

	 	October 31, 2003	 	 	 	 
	 
	 	 	 	 	 	 
	Loan Fees:

	 	Loan Fees
	 	$	18,550	 

Please indicate the method of payment:

	 	o	 	A check for the total is attached
	 
	 	þ	 	Debit DDA# 3300369894 for the total amount
	 
	 	o	 	Loan proceeds

	 	 	 	 	 	 	 
	Legal Fees:

	 	Legal Fees and Expenses
	 	$	2,500	 

Please attach a check in the amount of $2,500 payable to “Troutman Sanders LLP”
or sign and complete the attached form.

Borrower:

SOURCEFIRE, INC.

	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Todd P. Headley, CFO	 	 	 	Date:	 	11/19/03	 	 
	 

	 	 

Authorized Signer
	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Lender:	 	 	 	 	 	 	 	 
	Silicon Valley Bank	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	

	 	 Account Officer	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Silicon Valley Bank	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Signed in Santa Clara County, California	 	 	 	 	 	 	 	 

 

 

CORPORATE BORROWING RESOLUTION

	 	 	 	 	 	 	 
	Borrower:

	 	Sourcefire, Inc.
	 	Bank:
	 	Silicon Valley Bank
	 

	 	9212 Berger Road,
	 	 	 	11600 Sunrise Valley Drive
	 

	 	Suite 200
	 	 	 	Suite 400
	 

	 	Columbia, MD 21046
	 	 	 	Reston, Virginia 20191

I, the Secretary or Assistant Secretary of Sourcefire, Inc. (“Borrower”), certify that Borrower is
a corporation existing under the laws of the State of Delaware.

I certify that at a meeting of Borrower’s Directors (or by other authorized corporate action)
duly held the following resolutions were adopted.

It is resolved that any one of the following officers of Borrower, whose name, title and signature
is below:

	 	 	 	 	 
	NAME

	 	TITLE
	 	SIGNATURE
	 

	 	 
	 	 
	E.Wayne Jackson

	 	Chairman & CEO
	 	/s/ E.Wayne Jackson
	 

	 	 	 	 
	Thomas McDonough

	 	President & COO
	 	/s/ Thomas McDonough
	 

	 	 	 	 
	Todd Headley

	 	CFO
	 	/s/ Todd Headley
	 

	 	 	 	 

may act for Borrower and:

Borrow Money. Borrow money from Silicon Valley Bank (“Bank”).

Execute Loan Documents. Execute any loan documents Bank requires.

Grant Security. Grant Bank a security interest in any of Borrower’s assets.

Negotiate
Items. Negotiate or discount all drafts, trade acceptances,promissory notes, or
other indebtedness in which Borrower has an interest and receive cash or otherwise use the proceeds.

Letters of Credit. Apply for letters of credit from Bank.

Foreign Exchange Contracts. Execute spot or forward foreign exchange contracts.

Issue Warrants. Issue warrants for Borrower’s stock.

Further Acts. Designate other individuals to request advances, pay fees and costs and execute other
documents or agreements (including documents or agreement that waive Borrowers right to a jury
trial) they think necessary to effectuate these Resolutions.

Further resolved that all acts authorized by these Resolutions and performed before they were
adopted are ratified. These Resolutions remain in effect and Bank may rely on them until Bank receives written notice of
their revocation.

I certify that the persons listed above are Borrower’s officers with the titles and signatures
shown following their names and that these resolutions have not been modified are currently effective.

	 	 	 	 	 
	x
/s/ Martin Roesch
 

	 	November 3, 2003
 

	 	 
	Secretary or Assistant Secretary

	 	Date	 	 

 

			
	 	*	If the certifying officer is designated as a signer in these resolutions then
another corporate officer must also sign.

 

 

Loan Payment/Advance Request Form

Deadline for same day processing is 3:00. E.S.T.

	 	 	 
	Fax To:     617-969-5965

	 	Date: 11/19/03

o
LOAN PAYMENT:                                          client name (borrower)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	From Account #
	 	 	 	 	 	To Account #	 	 	 	 
	 

	 	 	 	 

(Deposit Account #)
	 	 
	 	 	 	 

(Loan Account #)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Principal $
	 	 	 	 	 	and/or Interest $	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 

All Borrower’s representations and warranties in the Loan and Security Agreement are true,
correct and complete in all material
respects to on the date of the telephone transfer request for and advance, but those
representations and warranties expressly
referring to another date shall be true, correct and complete in all material respects as of the
date:

Authorized
Signature:                                         Phone Number:                    

o
Loan Advance:

Complete
Outgoing Wire Request section below if all or a portion of the funds

from this loan advance are for an outgoing wire.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	From Account #
	 	 	 	 	 	To Account #	 	 	 	 
	 

	 	 	 	 

(Loan Account #)
	 	 
	 	 	 	 

(Deposit Account #)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Amount of Advance $	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 

	 	 	 	 	 	 	 	 

All Borrower’s representations and warranties in the Loan and Security Agreement are true,
correct and complete in all
material respects to on the date of the telephone transfer request for and advance, but those
representations and warranties
expressly referring to another date shall be true, correct and complete in all material respects as
of the date:

     Authorized Signature:                                                             Phone Number:                    

Outgoing Wire Request

Complete
only if  all  or  a portion  of  funds from the loan  advance above  are  to be wired.

Deadline for same day processing is 12:00 p.m., E.S.T.

	 	 	 	 	 	 	 	 	 	 	 
	Beneficiary Name:

	 	Troutman Sanders LLP	 	 	 	Amount of Wire: $ 2,500	 	 	 	 
	 

	 	 
 
	 	 	 	 	 	 

	 	 
	Beneficiary Bank:

	 	Wachovia Bank, National Association	 	 	 	Account Number: 2052700305792	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	City and State:
	 	Atlanta, GA	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	Beneficiary Bank Transit (ABA) #: 061000227

	 	 Beneficiary Bank Code (Swift, Sort, Chip, etc.):___ 
	 

	 	 	(For International Wire Only)	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	Intermediary Bank:

	 	 	 	 	 	Transit (ABA) #:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	For Further Credit to:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Special Instruction:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 

By signing below, I (we) acknowledge and agree that my (our) funds transfer request shall be
processed in accordance with and subject to the terms and conditions set forth in the agreements(s)
covering funds transfer service(s), which agreements(s) were previously received and executed by me
(us).

	 	 	 	 	 	 	 	 	 	 	 
	Authorized Signature:

	 	Todd P. Headley	 	 	 	2nd Signature (If Required):	 	 	 	 
	 

	 	 

	 	 	 	 	 	 
 	 	 
 
	Print Name/Title:

	 	Todd P. Headley, CFO	 	 	 	Print Name/Title:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 
 	 	 
 
	Telephone #

	 	410-423-1931	 	 	 	Telephone #	 	 	 	 
	 

	 	 

	 	 	 	 	 	 
 	 	 
 

 

 

IMPORTANT NOTICE

     THIS INSTRUMENT CONTAINS A CONFESSION OF JUDGMENT PROVISION WHICH
CONSTITUTES A WAIVER OF IMPORTANT RIGHTS YOU MAY HAVE AS A DEBTOR AND
ALLOWS THE CREDITOR TO OBTAIN A JUDGMENT AGAINST YOU WITHOUT ANY FURTHER
NOTICE.

SECOND AMENDED AND RESTATED REVOLVING PROMISSORY NOTE

	 	 	 
	$5,000,000.00
	 	Vienna, Virginia

April 25, 2005

     FOR VALUE RECEIVED, the undersigned, SOURCEFIRE, INC., a Delaware
corporation (“Borrower”) promises to pay to the order of SILICON VALLEY BANK, a
California-chartered bank doing business in Virginia as “Silicon Valley East” (“Bank”), at such
place as the holder hereof may designate, in lawful money of the United States of America, the
aggregate unpaid principal amount of all advances (“Advances”) made by Bank to Borrower in
accordance with the terms and conditions of the Loan and Security Agreement between Borrower
and Bank dated November 29, 2002 (as amended from time to time, the “Loan Agreement”), up
to a maximum principal amount of Five Million and no/100 Dollars ($5,000,000.00) (“Principal
Sum”), or so much thereof as may be advanced or readvanced and remains unpaid. Borrower
shall also pay interest on the aggregate unpaid principal amount of such Advances, as set forth in
the Loan Agreement. All interest payable under the terms of this Note shall be calculated on the
basis of a 360-day year and the actual number of days elapsed.

     The unpaid Principal Sum, together with accrued interest thereon at the rate or rates set
forth in the Loan Agreement, shall be payable as follows:

          (a) Accrued interest only on the unpaid principal amount shall be due and
payable monthly in arrears, commencing May 5, 2005, and continuing on the fifth (5th)
day of
each calendar month thereafter to maturity; and

          (b) Unless sooner paid, the unpaid Principal Sum, together with interest
accrued and unpaid thereon, shall be due and payable in full on the Revolving Maturity Date.

     The fact that the balance hereunder may be reduced to zero from time to time pursuant to
the Loan Agreement will not affect the continuing validity of this Note or the Loan Agreement,
and the balance may be increased to the Principal Sum after any such reduction to zero.

     Borrower further agrees that, if any payment made by Borrower or any other person is
applied to this Note and is at any time annulled, set aside, rescinded, invalidated, declared to be
fraudulent or preferential or otherwise required to be refunded or repaid, or the proceeds of any
property hereafter securing this Note is required to be returned by Bank to Borrower, its estate,
trustee, receiver or any other party, including, without limitation, such Borrower, under any

 

 

bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such
payment or repayment, Borrower’s liability hereunder (and any lien, security interest or other
collateral securing such liability) shall be and remain in full force and effect, as fully as if
such
payment had never been made, or, if prior thereto any such lien, security interest or other
collateral hereafter securing Borrower’s liability hereunder shall have been released or terminated
by virtue of such cancellation or surrender, this Note (and such lien, security interest or other
collateral) shall be reinstated in full force and effect, and such prior cancellation or surrender
shall
not diminish, release, discharge, impair or otherwise affect the obligations of Borrower in respect
of the amount of such payment (or any lien, security interest or other collateral securing such
obligation).

     This Note is the “Replacement Revolving Promissory Note” described in a certain Third
Amendment to Loan and Security Agreement of even date herewith between Borrower and Bank,
to which reference is hereby made for a more complete statement of the terms and conditions
under which the loans and advances evidenced hereby are made. This Note increases, amends and
restates in its entirety that certain Amended and Restated Revolving Promissory Note dated
November 3, 2003 (the “Prior Note”) in the maximum principal amount of Three Million Dollars
($3,000,000) from the Borrower in favor of the Bank. It is expressly agreed that the indebtedness
evidenced by the Prior Note has not been extinguished or discharged hereby. The Borrower
agrees that the execution of and delivery of this Note is not intended to and shall not cause or
result in a novation with respect to the Prior Note. This Note is secured as provided in the Loan
Agreement. All capitalized terms used herein and not otherwise defined shall have the meanings
given to such terms in the Loan Agreement.

     Borrower irrevocably waives the right to direct the application of any and all payments at
any time hereafter received by Bank from or on behalf of Borrower and Borrower irrevocably
agrees that Bank shall have the continuing exclusive right to apply any and all such payments
against the then due and owing obligations of Borrower as Bank may deem advisable. In the
absence of a specific determination by Bank with respect thereto, all payments shall be applied in
the following order: (a) then due and payable fees and expenses; (b) then due and payable interest
payments and mandatory prepayments; and (c) then due and payable principal payments and
optional prepayments.

     Bank is hereby authorized by Borrower to endorse on Bank’s books and records each
Advance made by Bank under this Note and the amount of each payment or prepayment of
principal of each such Advance received by Bank; it being understood, however, that failure to
make any such endorsement (or any error in notation) shall not affect the obligations of Borrower
with respect to Advances made hereunder, and payments of principal by Borrower shall be
credited to Borrower notwithstanding the failure to make a notation (or any errors in notation)
thereof on such books and records.

2

 

     The occurrence of any Event of Default under the Loan Agreement, shall constitute an
Event of Default under the terms of this Note.

     Upon the occurrence of an Event of Default, the Bank may at its option, exercise all of the
rights, powers, and remedies available under the terms of this Note or any of the other Loan
Documents and all applicable laws. Borrower and all endorsers, guarantors, and other parties
who may now or in the future be primarily or secondarily liable for the payment of the
indebtedness evidenced by this Note hereby severally waive presentment, protest and demand,
notice of protest, notice of demand and of dishonor and non-payment of this Note and expressly
agree that this Note or any payment hereunder may be extended from time to time without in any
way affecting the liability of Borrower, guarantors and endorsers.

     In the event this Note is not paid when due or any installment due hereunder is not paid
within fifteen (15) days of the date when due, whether by maturity or acceleration, Borrower
hereby appoints and designates Mary Zinsner, Esq., Borrower’s duly constituted attorney-in-fact
to confess judgment pursuant to the provisions of Section 8.01-432 of the Code of Virginia of
1950, as amended, against Borrower for all principal of and interest due and payable under this
Note upon the occurrence of an Event of Default, together with attorneys’ fees and collection fees
as provided herein (to the extent permitted by law), which judgment shall be confessed in the
Clerk’s Office of the Circuit Court of Fairfax County, Virginia. Upon request of Bank, Borrower
will execute an amendment or other agreement substituting attorneys-in-fact appointed to act for
Borrower hereunder.

     Borrower promises to pay all costs and expense of collection of this Note and to pay all
reasonable attorneys’ fees incurred in such collection, whether or not there is a suit or action,
or in any suit or action to collect this Note or in any appeal thereof. Borrower waives presentment,
demand, protest, notice of protest, notice of dishonor, notice of nonpayment, and any and all
other notices and demands in connection with the delivery, acceptance, performance default or
enforcement of this Note, as well as any applicable statutes of limitations. No delay by Bank in
exercising any power or right hereunder shall operate as a waiver of any power or right. Time is
of the essence as to all obligations hereunder.

     This Note is issued pursuant to the Loan Agreement, which shall govern the rights and
obligations of Borrower with respect to all obligations hereunder.

     Borrower acknowledges and agrees that this Note shall be governed by the laws of the
Commonwealth of Virginia, excluding conflicts of laws principles, even though for the convenience and at the request of Borrower, this Note may be executed elsewhere.

     BORROWER ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS
PROPERTIES, UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF ANY
STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE

3

 

COMMONWEALTH OF VIRGINIA IN ANY ACTION, SUIT, OR PROCEEDING OF ANY
KIND, AGAINST IT WHICH ARISES OUT OF OR BY REASON OF THIS AGREEMENT;
PROVIDED, HOWEVER, THAT IF FOR ANY REASON BANK CANNOT AVAIL ITSELF
OF THE COURTS OF VIRGINIA, BORROWER ACCEPTS JURISDICTION OF THE
COURTS AND VENUE IN SANTA CLARA COUNTY, CALIFORNIA. BORROWER AND
BANK EACH HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF
ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE
LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN,
INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND
ALL OTHER COMMON LAW OR STATUTORY CLAIMS. EACH PARTY RECOGNIZES
AND AGREES THAT THE FOREGOING WAIVER CONSTITUTES A MATERIAL
INDUCEMENT FOR IT TO ENTER INTO THIS AGREEMENT. EACH PARTY
REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS
LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS
JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

4

 

     IN WITNESS WHEREOF, Borrower has caused this Note to be executed under seal by
its duly authorized officers as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 
	WITNESS/ATTEST:	 	 	 	SOURCEFIRE, INC.	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/
Thomas McDonough
 

	 	 
	 	By:
	 	/s/ Todd P. Headley
 

Name: Todd P. Headley
	 	[SEAL]	 	 
	 

	 	 	 	 	 	Title: CFO	 	 	 	 

5 

 

IMPORTANT NOTICE

     THIS INSTRUMENT CONTAINS A CONFESSION OF JUDGMENT PROVISION WHICH
CONSTITUTES A WAIVER OF IMPORTANT RIGHTS YOU MAY HAVE AS A DEBTOR AND
ALLOWS THE CREDITOR TO OBTAIN A JUDGMENT AGAINST YOU WITHOUT ANY FURTHER
NOTICE.

EQUIPMENT TERM NOTE

	 	 	 
	$1,000,000.00
	 	Vienna, Virginia
	 
	 	April 25, 2005

     FOR VALUE RECEIVED, the undersigned, SOURCEFIRE, INC., a Delaware
corporation (“Borrower”) promises to pay to the order of SILICON VALLEY BANK, a
California-chartered bank, doing business in Virginia as “Silicon Valley East, Inc.” (“Bank”), at
such place as the holder hereof may designate, in lawful money of the United States of America,
the aggregate unpaid principal amount of all equipment advances (“Supplemental Equipment
Advances”) made by Bank to Borrower in accordance with the terms and conditions of that
certain Third Amendment to Loan and Security Agreement of even date herewith by and between
Borrower and Bank, which amends that certain Loan and Security Agreement between Borrower
and Bank dated November 29, 2002 (the Loan and Security Agreement as amended from time to
time is hereinafter called the “Loan Agreement”), up to a maximum principal amount of One
Million and no/100 Dollars ($1,000,000.00) (“Principal Sum”), or so much thereof as may be
advanced and remains unpaid. Borrower may request Supplemental Equipment Advances under
this Note from and until the Supplemental Equipment Availability End Date. The unpaid Principal
Sum, together with interest thereon at the rate or rates provided in the Loan Agreement, shall be
payable as set forth in the Loan Agreement.

     Borrower further agrees that, if any payment made by Borrower or any other person is
applied to this Note and is at any time annulled, set aside, rescinded, invalidated, declared to be
fraudulent or preferential or otherwise required to be refunded or repaid, or the proceeds of any
property hereafter securing this Note is required to be returned by Bank to Borrower, its estate,
trustee, receiver or any other party, including, without limitation, such Borrower, under any
bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such
payment or repayment, Borrower’s liability hereunder (and any lien, security interest or other
collateral securing such liability) shall be and remain in full force and effect, as fully as if
such
payment had never been made, or, if prior thereto any such lien, security interest or other
collateral hereafter securing Borrower’s liability hereunder shall have been released or terminated
by virtue of such cancellation or surrender, this Note (and such lien, security interest or other
collateral) shall be reinstated in full force and effect, and such prior cancellation or surrender
shall
not diminish, release, discharge, impair or otherwise affect the obligations of Borrower in respect
of the amount of such payment (or any lien, security interest or other collateral securing such
obligation).

 

 

     This Note is the “Supplemental Equipment Term Note” described in the Loan Agreement,
to which reference is hereby made for a more complete statement of the terms and conditions
under which the loans and advances evidenced hereby are made. This Note is secured as provided
in the Loan Agreement. All capitalized terms used herein and not otherwise defined shall have the
meanings given to such terms in the Loan Agreement.

     Borrower irrevocably waives the right to direct the application of any and all payments at
any time hereafter received by Bank from or on behalf of Borrower and Borrower irrevocably
agrees that Bank shall have the continuing exclusive right to apply any and all such payments
against the then due and owing obligations of Borrower as Bank may deem advisable. In the
absence of a specific determination by Bank with respect thereto, all payments shall be applied in
the following order: (a) then due and payable fees and expenses; (b) then due and payable interest
payments and mandatory prepayments; and (c) then due and payable principal payments and
optional prepayments.

     Bank is hereby authorized by Borrower to endorse on Bank’s books and records each
Supplemental Equipment Advance made by Bank under this Note and the amount of each
payment or prepayment of principal of each such Supplemental Equipment Advance received by
Bank; it being understood, however, that failure to make any such endorsement (or any error in
notation) shall not affect the obligations of Borrower with respect to Supplemental Equipment
Advances made hereunder, and payments of principal by Borrower shall be credited to Borrower
notwithstanding the failure to make a notation (or any errors in notation) thereof on such books
and records.

     The occurrence of any Event of Default under the Loan Agreement, shall constitute an
Event of Default under the terms of this Note.

     Upon the occurrence of an Event of Default, the Bank may at its option, exercise all of the
rights, powers, and remedies available under the terms of this Note or any of the other Loan
Documents and all applicable laws. Borrower and all endorsers, guarantors, and other parties
who may now or in the future be primarily or secondarily liable for the payment of the
indebtedness evidenced by this Note hereby severally waive presentment, protest and demand,
notice of protest, notice of demand and of dishonor and non-payment of this Note and expressly
agree that this Note or any payment hereunder may be extended from time to time without in any
way affecting the liability of Borrower, guarantors and endorsers.

     In the event this Note is not paid when due or any installment due hereunder is not paid
within fifteen (15) days of the date when due, whether by maturity or acceleration, Borrower
hereby appoints and designates Mary Zinsner, Esq., Borrower’s duly constituted attorney-in-fact
to confess judgment pursuant to the provisions of Section 8.01-432 of the Code of Virginia of
1950, as amended, against Borrower for all principal of and interest due and payable under this
Note upon the occurrence of an Event of Default, together with attorneys’ fees and collection fees
as provided herein (to the extent permitted by law), which judgment shall be confessed in the

2

 

Clerk’s Office of the Circuit Court of Fairfax County, Virginia. Upon request of Bank, Borrower
will execute an amendment or other agreement substituting attorneys-in-fact appointed to act for
Borrower hereunder.

     Borrower promises to pay all costs and expense of collection of this Note and to pay all
reasonable attorneys’ fees incurred in such collection, whether or not there is a suit or action,
or
in any suit or action to collect this Note or in any appeal thereof. No delay by Bank in exercising
any power or right hereunder shall operate as a waiver of any power or right. Time is of the
essence as to all obligations hereunder.

     This Note is issued pursuant to the Loan Agreement, which shall govern the rights and
obligations of Borrower with respect to all obligations hereunder.

     Borrower acknowledges and agrees that this Note shall be governed by the laws of the
Commonwealth of Virginia, excluding conflicts of laws principles, even though for the convenience and at the request of Borrower, this Note may be executed elsewhere.

     BORROWER ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS
PROPERTIES, UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF ANY
STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE
COMMONWEALTH OF VIRGINIA IN ANY ACTION, SUIT, OR PROCEEDING OF ANY
KIND, AGAINST IT WHICH ARISES OUT OF OR BY REASON OF THIS AGREEMENT;
PROVIDED, HOWEVER, THAT IF FOR ANY REASON BANK CANNOT AVAIL ITSELF
OF THE COURTS OF VIRGINIA, BORROWER ACCEPTS JURISDICTION OF THE
COURTS AND VENUE IN SANTA CLARA COUNTY, CALIFORNIA. BORROWER AND
BANK EACH HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF
ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE
LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN,
INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND
ALL OTHER COMMON LAW OR STATUTORY CLAIMS. EACH PARTY RECOGNIZES
AND AGREES THAT THE FOREGOING WAIVER CONSTITUTES A MATERIAL
INDUCEMENT FOR IT TO ENTER INTO THIS AGREEMENT. EACH PARTY
REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS
LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS
JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

[SIGNATURES ARE ON THE FOLLOWING PAGE]

3

 

     IN WITNESS WHEREOF, Borrower has caused this Note to be executed under seal by
its duly authorized officers as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 
	WITNESS/ATTEST:	 	 	 	SOURCEFIRE, INC.	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/
Thomas McDonough

	 	 	 	By:
	 	/s/ Todd P. Headley
	 	[SEAL]
	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Todd P. Headley	 	 	 	 
	 

	 	 	 	 	 	Title: CFO	 	 	 	 

4

 

THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT

     THIS THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT (this
“Agreement”) is entered into as of April ___, 2005, but effective as of March 31, 2005 by and
between SILICON VALLEY BANK, a California-chartered bank (“Bank”) with its principal
place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan
production office located at 8020 Towers Crescent Drive, Suite 475, Vienna, Virginia 22182 and
SOURCEFIRE, INC., a corporation organized and in good standing in the State of Delaware
(“Borrower”), whose address is 9770 Patuxent. Woods Drive, Columbia, Maryland 21046.

RECITALS.

     A. Borrower and Bank have entered into that certain Loan and Security Agreement
dated November 29, 2002 (as amended from time to time, the “Loan Agreement”), pursuant
to
which Bank has agreed to establish a revolving line of credit in the current maximum
principal
amount of Three Million Dollars ($3,000,000) (the “Committed Revolving Line”) and a
committed equipment line of credit in the original principal amount of One Million
Dollars
($1,000,000) (the “Committed Equipment Line”).

     B. Borrower has requested that Bank (i) increase the Committed Revolving Line
from Three Million Dollars ($3,000,000) to Five Million Dollars ($5,000,000), (ii)
extend the
maturity date of the Committed Revolving Line, (iii) provide Borrower with a
supplemental
equipment line in the maximum principal amount of One Million Dollars ($1,000,000), and
(iv)
make such other changes to the Loan Agreement as are more specifically set forth
herein, and
Bank has agreed to the foregoing on the condition, among others, that this Agreement be
executed and delivered by Borrower to Bank.

 

 

     C. Unless otherwise defined herein, capitalized terms used herein shall have the
respective meanings set forth in the Loan Agreement.

     NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, Borrower and Bank
do hereby agree as follows:

     1. Recitals. The parties hereto acknowledge and agree that the
above Recitals are
true and correct in all material respects and that the same are incorporated
herein and made a part
hereof by reference.

     2. Outstanding Obligations. The parties hereto acknowledge and agree (a) that the
outstanding principal balance of the Committed Equipment Line as of the date hereof is
$___, (b) that interest on the unpaid principal balance of the Equipment Note has been
paid through March 31, 2005 and (c) that the unpaid principal balance of the Equipment Note,
together with accrued and unpaid interest thereon, is due and owing subject to the terms of
repayment hereinafter set forth, without defense or offset.

     3. Defined Terms. Notwithstanding anything set forth in the Loan
Agreement to the
contrary, from and after the date hereof, the definitions of “Committed
Revolving Line”, “Credit
Extension” and “Revolving Maturity Date” set forth in Section 13.1 of the Loan
Agreement are
hereby amended and restated in their entirety as follows:

     “Committed Revolving Line” means a credit extension of up to Five Million
Dollars ($5,000,000).

     “Credit Extension” is each Advance, Equipment Advance, Letter of Credit,
Supplemental Equipment Advance, or any other extension of credit by Bank for
Borrower’s benefit.

     “Revolving Maturity Date” means March 28, 2007.

     The following definitions are added to Section 13.1 of the Loan Agreement:

2

 

     “Eligible Foreign Accounts” means (a) at all times that Borrower has an Adjusted
Quick Ratio equal to or less than 2.0 to 1.0, Zero Dollars ($0) and (b) at all times that
Borrower has an Adjusted Quick Ratio greater than 2.0 to 1.0, the lesser of (i) $500,000 or
(ii) the amount of Accounts which satisfy the requirements for Eligible Accounts, but are
billed and collected by a Subsidiary of Borrower established after the date of this
Agreement that is not organized under the laws of the United States of America, a state
thereof, or the District of Columbia.

     “Supplemental Committed Equipment Line” is a Credit Extension of up to One Million
Dollars ($1,000,000).

     “Supplemental Commitment Termination Date” means March 31, 2006.

     “Supplemental Equipment Advance” has the meaning set forth in Section 2.1.4 (a).

     “Supplemental Equipment Availability End Date” has the meaning set forth in
Section 2.1.4

     “Supplemental Equipment Term Note” means the equipment term note now or hereafter
delivered by Borrower to Bank in connection with the Supplemental Committed Equipment Line
in substantially the form of Exhibit H, together with all renewals, amendments,
modifications and substitutions therefore.

     5. Revolving Advances. Section 2.1.1 (a) of the Loan Agreement is amended and
restated in its entirety as follows:

     (a) Bank will make Advances not exceeding the lesser of (i) the Committed Revolving
Line, minus all amounts for services utilized under the Cash Management Services
Sublimit, minus the amount of all outstanding Letters of Credit (including drawn but
unreimbursed Letters of Credit or (ii) the sum of the Borrowing Base and the amount of
Eligible Foreign Accounts, minus the amount of all outstanding Letters of Credit
(including drawn but unreimbursed Letters of Credit), it being understood that the Cash
Management Services Sublimit and the Letter of Credit Sublimit, will be available without
respect to the amount of the Borrowing Base. Amounts borrowed under this Section may be
repaid and reborrowed during the term of this Agreement. All advances shall be evidenced by
the Revolving Promissory Note to be executed and delivered by Borrower to Bank and shall be
repaid in accordance with the terms of the Revolving Promissory Note.

     6. Cash Management Services Sublimit. Section 2.1.2 of the Loan Agreement is
amended and restated in its entirety as follows:

3

 

     2.1.2 Cash Management Services Sublimit.

     Borrower may use up to One Hundred Thousand Dollars ($100,000) of the Committed
Revolving Line for Bank’s Cash Management Services, which may include merchant services,
direct deposit of payroll, business credit card, and check cashing services identified in
various cash management services agreements related to such services (the “Cash Management
Services”). Such aggregate amounts utilized under the Cash Management Services Sublimit
will at all times reduce the amount otherwise available to be borrowed under the Committed
Revolving Line, but are not subject to the Borrowing Base. Any amounts Bank pays on behalf
of Borrower or any amounts that are not paid by Borrower for any Cash Management Services
will be treated as Advances under the Committed Revolving Line and will accrue interest at
the rate for Advances.

     7. Letters of Credit Sublimit. Section 2.1.2(A) of the Loan Agreement is amended
and restated in its entirety as follows:

     2.1.2A
Letters of Credit Sublimit.

     Bank will issue or have issued Letters of Credit for Borrower’s account not exceeding
(i) the lesser of the Committed Revolving Line or the Borrowing Base, minus (ii) the
outstanding principal balance of the Advances, minus the Cash Management Sublimit,
however, the face amount of outstanding Letters of Credit (including drawn but unreimbursed
Letters of Credit) may not at any time exceed Five Hundred Thousand Dollars ($500,000).
Borrower’s Letter of Credit reimbursement obligation will be secured by unencumbered cash on
terms acceptable to Bank at any time upon the Revolving Maturity Date if the term of this
Agreement is not extended by Bank. Borrower agrees to execute any further documentation in
connection with the Letters of Credit as Bank may reasonably request. Prior to or
simultaneously with the opening of each Letter of Credit, Borrower shall pay to Bank, a
letter of credit fee (each a “Letter of Credit Fee” and collectively the “Letter of Credit
Fees”) in an amount equal to one percent (1.0%) per annum of the face amount of the Letter
of Credit. Such Letter of Credit Fees shall be paid in advance upon the issuance of the
Letter of Credit and upon each anniversary thereof, if any. In addition, Borrower shall pay
to Bank any and all additional issuance, negotiation, processing, transfer or other fees to
the extent and as and when required by Bank.

     8. Supplemental Equipment Advances. The following Section is added to the Loan
Agreement, immediately after Section 2.1.3, as Section 2.1.4:

     2.1.4 Supplemental Equipment Advances.

     (a) Through March 31, 2006 (the “Supplemental Equipment Availability End Date”), Bank
will make advances (each a “Supplemental Equipment Advance” and, collectively,
“Supplemental Equipment Advances”) not exceeding the Supplemental

4

 

Committed Equipment Line. The Supplemental Equipment Advances may only be used to finance or
refinance Eligible Equipment or Other Equipment purchased on or after ninety (90) days before the
date of each Supplemental Equipment Advance; provided, however, that if the first Supplemental
Equipment Advance is made on or before May___, 2005 [thirty days], it may be used to finance or
refinance Eligible Equipment purchased after January 1, 2005. Supplemental Equipment Advances may
not exceed one hundred percent (100%) of the invoice for Eligible Equipment, excluding taxes,
shipping, warranty charges, freight discounts and installation expense. Other Equipment may
constitute up to forty percent (40%) of the aggregate amount of all Supplemental Equipment
Advances. Each Supplemental Equipment Advance must be for a minimum of Fifty Thousand Dollars
($50,000). The number of Supplemental Equipment Advances is limited to six (6).

     (b) Interest accrues from the date of each Supplemental Equipment Advance
at the Borrower’s option at either the Supplemental Prime Rate Option or the
Supplemental Fixed Rate Option (as defined in Section 2.3(a)(iii)).

     (c) Supplemental Equipment Advances for Eligible Equipment are repayable
as follows:

          (i) Supplemental Equipment Advances for Eligible Equipment which accrue interest at the
Supplemental Prime Rate Option (“Supplemental Prime Rate Equipment Advances”) are payable in thirty
six (36) equal monthly installments of principal, plus accrued interest, on the first
(1st) day of each month commencing on the first (1st) day of the first
(1st) month after each Supplemental Funding Date (as defined in Section 2.14(e));

          (ii) Supplemental Equipment Advances for Eligible Equipment which accrue interest at the
Supplemental Fixed Rate Option (“Supplemental Fixed Rate Equipment Advances”) are payable in
thirty six (36) equal monthly installments of principal and accrued interest, on the first
(1st) day of each month commencing on the first (1st) day of the first
(1st) month after each Supplemental Funding Date;

          (iii) Supplemental Prime Rate Equipment Advances for Other Equipment are payable in thirty
(30) equal monthly installments of principal, plus accrued interest, on the first (1st)
day of each month commencing on the first (1st) day of the first (1st) month
after each Supplemental Funding Date; and

          (iv) Supplemental Fixed Rate Equipment Advances for Other Equipment are payable in thirty
(30) equal monthly installments of principal and accrued interest, on the first (1st)
day of each month commencing on the first (1st) day of the first (1st) month
after each Supplemental Funding Date.

     (d) Supplemental Equipment Advances shall be evidenced by the
Supplemental Equipment Term Note to be executed and delivered by Borrower to Bank.
Supplemental Equipment Advances when repaid may not be reborrowed.

5

 

     (e) To obtain a Supplemental Equipment Advance, Borrower at least three (3) Business
Days prior to the proposed funding date (the “Supplemental Funding Date”) will deliver to
Bank a Payment/Advance Form, together with copies of invoices for the Eligible Equipment
and Other Equipment, and Payment/Advance Form will indicate whether the Supplemental
Equipment Advance will accrue interest at the Supplemental Prime Rate Option or the
Supplemental Fixed Rate Option, together with a UCC Financing Statement, if requested by
Bank, covering the Equipment described on the Payment/Advance Form, and such additional
information as Bank may request. The notice must be signed by a Responsible Officer or
designee.

     9. Overadvances. If Borrower’s Obligations under Section 2.1.1, 2.1.2 and 2.1.2A
exceed the lesser of either (i) the Committed Revolving Line or (ii) the Borrowing Base,
Borrower shall immediately pay Bank the excess.

     10. Interest Rate. Payments. Section 2.3 of the Loan Agreement is amended and
restated in its entirety as follows:

     (a) Interest Rate, (i) Advances on the Committed Revolving Line accrue
interest on the outstanding principal balance at a per annum rate of one half of one
percent (0.50%) above the Prime Rate; provided, however, during any period where
Borrower has maintained EBITDA of at least $1.00 for the prior three (3) consecutive
calendar months (as determined by the financial information delivered to, accepted by
Bank, pursuant to Section 6.2(a) of this Agreement), Advances will accrue interest at
the Prime Rate; (ii) Equipment Advances continue to accrue interest at a per annum rate,
set at the Borrower’s option at the time of each Equipment Advance, of either (A) one and
one-half (1.50) percentage points above the Prime Rate (the “Prime Rate Option”), or
(B) with respect to each Equipment Advance made prior to November 1, 2003, a fixed rate of
seven percent (7.0%) per annum and with respect to any Equipment Advances made from
and after November 1, 2003, a fixed rate equal to six and one half percent (6.5%) (the
“Fixed Rate Option”); and (iii) Supplemental Equipment Advances accrue interest at the
time of each Supplemental Equipment Advance as selected by Borrower at such time at
either (A) one (1.0) percentage point above the Prime Rate (the “Supplemental Prime
Rate Option”), or (B) seven percent (7.0%) per annum (the “Supplemental Fixed Rate
Option”). After and during the occurrence of an Event of Default, Obligations accrue
interest at five percent (5%) above the rate effective immediately before the Event of
Default. The interest rate in effect on any Credit Extensions which accrue interest at
a rate tied to the Prime Rate, increases or decreases when the Prime Rate changes.
Interest is computed on a 360 day year for the actual number of days elapsed.

     (b) Payments. Accrued interest due on the Committed Revolving Line is
payable on the fifth (5th) day of each month. Accrued interest due on all Equipment
Advances and on all Supplemental Equipment Advances is payable on the first (1st) day
of each month. Bank may debit any of Borrower’s deposit accounts including Account

6

 

Number                      for principal and interest payments owing or any
amounts Borrower owes Bank. Bank will promptly notify Borrower when it debits Borrower’s
accounts. These debits are not a set-off. Payments received after 12:00 noon Eastern time
are considered received at the opening of business on the next Business Day. When a
payment is due on a day that is not a Business Day, the payment is due the next Business
Day and additional fees or interest accrue.

     (c) Borrower may voluntarily prepay all or any portion of any Supplemental Equipment
Advance upon not less than five (5) Business Days notice to Bank, provided any such
prepayment is accompanied by a prepayment fee equal to (i) two percent (2%) of the
outstanding principal amount prepaid if the prepayment occurs within the first eighteen (18)
months from the date of the Supplemental Equipment Advance and (ii) one percent (1%) of the
outstanding principal amount prepaid at all times after eighteen (18) months from the date
of the Supplemental Equipment Advance. In addition to the above prepayment fee, at the time
of any such prepayment, Borrower must pay, on the date of the prepayment, all unpaid accrued
interest to the date of the prepayment and all other sums, if any, that shall have become
due and payable hereunder with respect to this Agreement.

     11. Primary Accounts. Section 6.7 (Primary Accounts) of the Loan Agreement is
hereby amended and restated in its entirety, as follows:

     6.7 Primary Accounts. Borrower will maintain not less than the lesser of (i)
sixty five percent (65%) of its primary depository, operating, and investment accounts
or (ii) Two Million Five Hundred Thousand Dollars ($2,500,000) with Bank or its
affiliates.

     12. Financial
Covenants. Section 6.8 (Financial Covenants) of the Loan Agreement
is hereby amended and restated in its entirety, as follows:

     6.8 Financial Covenants.

          (a) Minimum Quarterly EBITDA. Borrower will maintain EBITDA of not less
than the following amounts for the quarterly period ending as of each of the dates below:

	 	 	 	 	 
	Date:	 	Amount:
	March 31, 2005
	 	($	2,200,000);	 
	June 30, 2005
	 	($	1,600,000);	 
	September 30, 2005
	 	($	1,000,000);	 
	December 31, 2005
	 	($	500,000);	and
	March 31, 2006 and
thereafter
	 	$	1.00.  	 

7

 

          (b) Adjusted Quick Ratio. Borrower will maintain, as of the last day of
each month, a ratio of (i) unrestricted cash held at Bank (or another institution if such
cash is subject to a control agreement acceptable to Bank), plus net billed Accounts to
(ii) Current Liabilities, minus Deferred Revenue, plus long term debt in favor of Bank, of
at least 1.50 to 1.00

     13. Borrowing Base Certificate. Exhibit C to the Loan Agreement is hereby replaced
in its entirety with Exhibit C attached hereto and made a part hereof.

     14. Compliance Certificate. Exhibit D to the Loan Agreement is hereby replaced in
its entirety with Exhibit D attached hereto and made a part hereof.

     
15. Payment of Loan Fees. At the time of the execution and delivery of this
Agreement, Borrower shall pay to Bank nonrefundable fees (a) in the amount of Thirty Five
Thousand Dollars ($35,000) for the increase and extension of the Committed Revolving Line
(the “Revolving Loan Fee”), and (b) in the amount of Two Thousand Five Hundred Dollars
($2,500) in connection with the Supplemental Committed Equipment Line (the “Supplemental
Equipment Loan Fee”, and together with the Revolving Loan Fee, collectively, the “Loan Fees”),
plus all out-of-pocket expenses, including, without limitation, Bank’s reasonable attorney’s
fees.

     16. Replacement
Promissory Note. The Revolving Promissory Note issued pursuant to the Loan Agreement in connection with the Committed Revolving Line is being replaced in its
entirety with Exhibit E attached hereto. Borrower shall execute and deliver to Bank
on the date
hereof its Second Amended and Restated Revolving Promissory Note in the form of Exhibit
E
attached hereto and incorporated herein by reference (the “Replacement Revolving Promissory
Note”), in substitution for and not satisfaction of, the issued and outstanding Revolving
Promissory Note, and the Replacement Revolving Promissory Note shall be one of the Loan
Documents. The promissory note being substituted pursuant to this Agreement shall be marked

8

 

“Replaced” and returned to Borrower promptly after the execution and delivery of the Replacement
Revolving Promissory Note.

     17. Conditions Precedent. This Agreement shall become effective on the date Bank
receives the following documents, each of which shall be satisfactory in form and substance to
Bank:

          (a) The fully executed Replacement Revolving Promissory Note;

          (b) The fully executed Supplemental Equipment Term Note in the form of
Exhibit H attached hereto and made a part hereof;

          (c) Proof that Borrower has paid all costs and expenses to Bank in connection
with this Agreement, including but not limited to, the Loan Fees and Bank’s reasonable
attorneys fees; and

          (d) Such other information, instruments, opinions, documents, certificates and
reports as Bank may deem necessary.

     18. Representations.
Borrower hereby confirms that except as set forth in the Schedule attached to this Agreement, the representations set forth in Section 5 of the Loan
Agreement, are true and correct as of the date hereof, and that no Event of Default has
occurred or is continuing immediately prior to or upon the execution of this Agreement.

     19. Additional Defaults. In addition to those Events of Default
specifically enumerated in the Loan Agreement, if Borrower shall fail
to comply with the terms of any covenant or agreement contained herein, such failure shall constitute an Event of Default and
shall entitle Bank to exercise all rights and remedies provided in the Loan Agreement, as well
as all other rights and remedies provided to Bank under the terms of
any of the other Loan Documents.

9

 

     20. Counterparts. This Agreement may be executed in any number of duplicate
originals or counterparts, each of which duplicate original or counterpart shall be deemed to
be an original and all taken together shall constitute one and the same instrument.

     21. Loan
Documents; Governing La; Etc. This Agreement is one of the Loan
Documents defined in the Loan Agreement, and this Agreement, each of the Loan Documents
shall be governed and construed in accordance with the laws of the Commonwealth of Virginia.
The headings and captions in this Agreement are for the convenience of the parties only and
are not a part of this Agreement.

     22. Acknowledgments. Borrower hereby confirms to Bank the enforceability and
validity of each of the Loan Documents with respect to the Borrower. In addition, Borrower
hereby agrees that the execution and delivery of this Agreement and the terms and provisions,
covenants or agreements contained in this Agreement shall not in any manner release, impair,
lessen, modify, waive or otherwise limit the liability and obligations of Borrower under the
terms of any of Loan Documents, except as otherwise specifically set forth in this Agreement.
Borrower issues, ratifies and confirms the representations, warranties and covenants contained
in the Loan Documents.

     23. Modifications. This Agreement may not be supplemented, changed, waived,
discharged, terminated, modified or amended, except by written instrument executed by the
parties.

[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

10

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of
the date first above written.

	 	 	 	 	 	 	 
	WITNESS/ATTEST:	 	 	 	SOURCEFIRE, INC.
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 

	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 
	 	 	 	 	SILICON VALLEY BANK
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 

	 	 	 	 	 	Title:

11

 

EXHIBIT C

BORROWING BASE CERTIFICATE

	 	 	 	 	 	 	 
	Borrower:

	 	Sourcefire, Inc.
	 	Bank:
	 	Silicon Valley Bank
	 

	 	9212 Berger Road, Suite 200
	 	 	 	3003 Tasman Drive
	 

	 	Columbia, Maryland 21046
	 	 	 	Santa Clara, CA 95054
	Commitment Amount:

	 	$5,000,000.00	 	 	 	 

	 	 	 	 	 	 	 
	ACCOUNTS RECEIVABLE	 	 	 	 
	1.
	 	Accounts Receivable Book Value as
of ___	 	$	 	 
	 
	 	 	 	 	 
	2.
	 	Additions (please explain on reverse)	 	$	 	 
	 
	 	 	 	 	 
	3.
	 	TOTAL ACCOUNTS RECEIVABLE	 	$	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)	 	 	 	 
	4.
	 	Amounts over 90 days due	 	$	 	 
	 
	 	 	 	 	 
	5.
	 	Balance of 50% over 90 day accounts	 	$	 	 
	 
	 	 	 	 	 
	6.
	 	Credit balances over 90 days	 	$	 	 
	 
	 	 	 	 	 
	7.
	 	Concentration Limits	 	$	 	 
	 
	 	 	 	 	 
	8.
	 	Foreign Accounts	 	$	 	 
	 
	 	 	 	 	 
	9.
	 	Governmental Accounts not perfected under FACA	 	$	 	 
	 
	 	 	 	 	 
	10.
	 	Contra Accounts	 	$	 	 
	 
	 	 	 	 	 
	11.
	 	Promotion or Demo Accounts	 	$	 	 
	 
	 	 	 	 	 
	12.
	 	Intercompany/Employee Accounts	 	$	 	 
	 
	 	 	 	 	 
	13.
	 	Other (please explain on reverse)	 	$	 	 
	 
	 	 	 	 	 
	14.
	 	TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS	 	$	 	 
	 
	 	 	 	 	 
	15.
	 	Eligible Accounts (#3 minus #14)	 	$	 	 
	 
	 	 	 	 	 
	16.
	 	LOAN VALUE OF ACCOUNTS (80% of #15)	 	$	 	 
	 
	 	 	 	 	 
	17.
	 	If Adjusted Quick Ratio exceeds 2.00 to 1.00 Eligible Foreign Accounts (not to exceed $500m)	 	$	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	BALANCES	 	 	 	 
	18.
	 	Maximum Loan Amount	 	$	5,000,000	 
	19.
	 	Total Funds Available [Lesser of #18 or #16 plus #17]	 	$	 	 
	 
	 	 	 	 	 
	20.
	 	Present balance owing on Line of Credit	 	$	 	 
	 
	 	 	 	 	 
	21.
	 	Outstanding under Sublimits (Cash Management and LC’s)	 	$	 	 
	 
	 	 	 	 	 
	22.
	 	RESERVE POSITION (#18 minus #19 and #20)	 	$	 	 
	 
	 	 	 	 	 

The undersigned represents and warrants that this is true, complete and correct,
and that the information in this Borrowing Base Certificate complies with the
representations and warranties in the Loan and Security Agreement between the
undersigned and Silicon Valley Bank.

	 	 	 	 	 
	COMMENTS:

	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signer
	 	 

	 	 	 
	BANK  USE  ONLY 

	Rec’d By:
	 	 
	 

	 	 
	 

	 	Auth. Signer

	 	 	 
	Date:
	 	 
	 

	 	 

	 	 	 
	Verified:
	 	 
	 

	 	 
	 

	 	Auth. Signer

	 	 	 
	Date:
	 	 
	 

	 	 

 

 

EXHIBIT D

	 	 	 
	TO:

	 	SILICON VALLEY BANK
	 

	 	3003 Tasman Drive
	 

	 	Santa Clara, CA 95054
	 
	 	 
	FROM:

	 	SOURCEFIRE, INC.
	 

	 	9770 Patuxent Woods Drive
	 

	 	Columbia, Maryland 21046

     The undersigned authorized officer of SOURCEFIRE, INC. (“Borrower”) certifies that
under the terms and conditions of the Loan and Security Agreement between Borrower and
Bank (the
“Agreement”), (i) Borrower is in complete compliance
for the period ending___ with all
required covenants except as noted below and (ii) all representations and warranties in the
Agreement are true and correct in all material respects on this date. Attached are the
required documents supporting the certification. The Officer certifies that these are prepared
in accordance with Generally Accepted Accounting Principles (GAAP) consistently applied from
one period to the next except as explained in an accompanying letter or footnotes. The Officer
acknowledges that no borrowings may be requested at any time or date of determination that
Borrower is not in compliance with any of the terms of the Agreement, and that compliance is
determined not just at the date this certificate is delivered.

Please indicate compliance status by circling Yes/No under “Complies” column.

	 	 	 	 	 	 	 
	Reporting Covenant	 	Required	 	Complies
	Monthly financial statements + CC
	 	Monthly within 30 days	 	Yes	 	No
	Annual (Audited)
	 	FYE within 120 days	 	Yes	 	No
	A/R Agings
	 	Monthly within 30 days	 	Yes	 	No
	A/R Audit
	 	Initial and -Annual	 	Yes	 	No
	Borrowing Base Certificate
	 	Monthly when borrowing within 30 days	 	Yes	 	No

Financial Covenant

Maintain on a quarterly basis:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Minimum EBITDA	 	Quarter Ending	 	Required	 	 	Actual	 	 	Complies	 
	 
	 	March 31, 2005	 	($	2,200,000	)	 	$	 	 	 	Yes	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	June 30, 2005	 	($	1,600,000	)	 	$	 	 	 	Yes	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	September 30, 2005	 	($	1,000,000	)	 	$	 	 	 	Yes	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	December 31, 2005	 	($	500,000	)	 	$	 	 	 	Yes	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	March 31, 2006 and thereafter	 	 $	1.00	 	 	$	 	 	 	Yes	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Maintain on a monthly basis:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Adjusted Quick Ratio
	 	 	 	 	1.50 to 1.00	 	 	___ to 1.00	 	Yes	 	No

 

 

	 	 	 
	Comments
Regarding Exceptions: See Attached.
	 	 
	 
	 	 
	Sincerely,
	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 
	Signature
	 	 
	 
	 	 
	 	 	 
	Title
	 	 
	 
	 	 
	 	 	 
	Date
	 	 

	 	 	 
	BANK USE ONLY

	 
	 	 
	Received by:
	 	 
	 

	 	 
	 

	 	authorized signer

	 	 	 
	Date:
	 	 
	 

	 

	 	 	 
	Verified:
	 	 
	 

	 	 
	 

	 	authorized signer

	 	 	 
	Date:
	 	 
	 

	 

	 	 	 
	Compliance Status:

	 	Yes      No

 

 

Disclosure Schedule

To

Third Amendment to Loan and Security Agreement

Silicon Valley Bank and Sourcefire, Inc.

Dated April ___, 2005

Section 5.7: Superluminal Technologies, LLC, a Delaware limited liability company, is
the wholly-owned subsidiary of Sourcefire, Inc.

 

 

FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT 

     THIS FOURTH AMENDMENT TO LOAN
AND SECURITY AGREEMENT (this “Agreement”) is entered into as of June _, 2005 by and between SILICON
VALLEY BANK, a California-chartered bank (“Bank”) with its principal place of business at 3003
Tasman Drive, Santa Clara, California 95054 and with a loan production office located at 8020
Towers Crescent Drive, Suite 475, Vienna, Virginia 22182 and SOURCEFIRE, INC., a corporation
organized and in good standing in the State of Delaware (“Borrower”), whose address is 9770
Patuxent Woods Drive, Columbia, Maryland 21046.

RECITALS.

     A. Borrower and Bank have entered into that certain Loan and Security Agreement
dated November 29, 2002 (as amended from time to time, the “Loan Agreement”), pursuant to
which Bank has agreed to establish a revolving line of credit in the current maximum principal
amount of Five Million Dollars ($5,000,000) (the “Committed Revolving Line”), a committed
equipment line of credit in the original principal amount of One Million Dollars ($1,000,000)
(the “Committed Equipment Line”) and a supplemental equipment line in the maximum
principal amount of One Million Dollars ($1,000,000) (the “Supplemental Equipment Line”).

     B. Borrower has requested that Bank extend the delivery of Borrower’s audited
consolidated financial statements from no later than one hundred twenty (120) days to one
hundred eighty (180) days after the last day of Borrower’s fiscal year and Bank has agreed to
the foregoing on the condition, among others, that this Agreement be executed and delivered by
Borrower to Bank.

 

 

     C. Unless otherwise defined herein, capitalized terms used herein shall have the respective
meanings set forth in the Loan Agreement.

     NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, Borrower and Bank do
hereby agree as follows:

     1. Recitals. The parties hereto acknowledge and agree that the above Recitals are
true and correct in all material respects and that the same are incorporated herein and made a
part hereof by reference.

     2. Description of Change in Terms:

          A.
Financial Statements, Reports, Certificates. Section 6.2(a)(ii) of the Loan
Agreement is hereby amended and restated in its entirety, as follows:

     (ii) as soon as available, but no later than one hundred eighty (180)
days after the last day of Borrower’s fiscal year, audited consolidated
financial statements prepared under GAAP, consistently applied, together
with an unqualified opinion on the financial statements from an independent
certified public accounting firm reasonably acceptable to Bank;

     3. Compliance
Certificate. Exhibit D to the Loan Agreement is hereby replaced in
its entirety with Exhibit D attached hereto and made a part hereof.

     4. Representations. Borrower hereby confirms that except as set forth in the
Schedule attached to this Agreement, the representations set forth in Section 5 of the Loan
Agreement, are true and correct as of the date hereof, and that no Event of Default has
occurred or is continuing immediately prior to or upon the execution of this Agreement.

     5. Additional Defaults. In addition to those Events of Default specifically
enumerated in the Loan Agreement, if Borrower shall fail to comply with the terms of any
covenant or agreement contained herein, such failure shall constitute an Event of Default and

2

 

shall entitle Bank to exercise all rights and remedies provided in the Loan Agreement, as well as
all other rights and remedies provided to Bank under the terms of any of the other Loan Documents.

     6. Counterparts. This Agreement may be executed in any number of duplicate
originals or counterparts, each of which duplicate original or counterpart shall be deemed to
be an original and all taken together shall constitute one and the same instrument.

     7. Loan
Documents; Governing Law; Etc. This Agreement is one of the Loan
Documents defined in the Loan Agreement, and this Agreement, each of the Loan Documents
shall be governed and construed in accordance with the laws of the Commonwealth of Virginia.
The headings and captions in this Agreement are for the convenience of the parties only and
are not a part of this Agreement.

     8. Acknowledgments. Borrower hereby confirms to Bank the enforceability and
validity of each of the Loan Documents with respect to the Borrower. In addition, Borrower
hereby agrees that the execution and delivery of this Agreement and the terms and provisions,
covenants or agreements contained in this Agreement shall not in any manner release, impair,
lessen, modify, waive or otherwise limit the liability and obligations of Borrower under the
terms of any of the Loan Documents, except as otherwise specifically set forth in this Agreement.
Borrower issues, ratifies and confirms the representations, warranties and covenants contained
in the Loan Documents.

     9. Modifications. This Agreement may not be supplemented, changed, waived,
discharged, terminated, modified or amended, except by written instrument executed by the
parties.

[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

3

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of
the date first above written.

	 	 	 	 	 	 	 	 	 
	WITNESS/ATTEST:	 	 	 	SOURCEFIRE, INC.
	 
	 	 	 	 	 	 	 	 
	/s/ Nick Margarites	 	 	 	By:	 	/s/ Todd P. Headley
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Todd P. Headley
	 

	 	 	 	 	 	Title:
	 	CFO

	 	 	 	 	 
	 	

SILICON VALLEY BANK 

 	 
	 	By:  	/s/   Megan Scheffel
 	 
	 	 	Name:  	Megan Scheffel      	 
	 	 	Title:  	Vice President 	 
	 

4

 

 EXHIBIT D 

	 	 	 
	TO:

	 	SILICON VALLEY BANK
	 

	 	3003 Tasman Drive
	 

	 	Santa Clara, CA 95054
	 

	 	 
	 
	 	 
	FROM:

	 	SOURCEFIRE, INC.
	 

	 	9770 Patuxent Woods Drive
	 

	 	Columbia, Maryland 21046

     The undersigned authorized officer of SOURCEFIRE, INC. (“Borrower”) certifies that under
the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the
“Agreement”), (i) Borrower is in complete compliance
for the period ending ____with all
required covenants except as noted below and (ii) all representations and warranties in
the Agreement are true and correct in all material respects on this date. Attached are the
required documents supporting the certification. The Officer certifies that these are
prepared in accordance with Generally Accepted Accounting Principles (GAAP) consistently
applied from one period to the next except as explained in an accompanying letter or
footnotes. The Officer acknowledges that no borrowings may be requested at any time or
date of determination that Borrower is not in compliance with any of the terms of the
Agreement, and that compliance is determined not just at the date this certificate is
delivered.

Please indicate compliance status by circling Yes/No under “Complies” column.

	 	 	 	 	 	 	 
	Reporting Covenant	 	Required	 	Complies
	Monthly financial statements + CC
	 	Monthly within 30 days	 	Yes	 	No
	Annual (Audited)
	 	FYE within 180 days	 	Yes	 	No
	A/R Agings
	 	Monthly within 30 days	 	Yes	 	No
	A/R Audit
	 	Initial and -Annual	 	Yes	 	No
	Borrowing Base Certificate
	 	Monthly when borrowing within 30 days	 	Yes	 	No

Financial Covenant

Maintain on a quarterly basis:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Minimum EBITDA	 	Quarter Ending	 	Required	 	 	Actual	 	 	Complies	 
	 
	 	March 31, 2005	 	($	2,200,000	)	 	$	 	 	 	Yes	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	June 30, 2005	 	($	1,600,000	)	 	$	 	 	 	Yes	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	September 30, 2005	 	($	1,000,000	)	 	$	 	 	 	Yes	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	December 31, 2005	 	($	500,000	)	 	$	 	 	 	Yes	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	March 31, 2006 and thereafter	 	 $	1.00	 	 	$	 	 	 	Yes	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Maintain on a monthly basis:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Adjusted Quick Ratio
	 	 	1.50 to 1.00	 	 	___to 1.00	 	Yes	 	No

 

 

	 	 	 
	Comments Regarding Exceptions: See Attached.
	 
	 	 
	Sincerely,
	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 
	Signature 
	 	 
	 
	 	 
	 	 	 
	Title 
	 	 
	 
	 	 
	 	 	 
	Date 
	 	 

	 	 	 
	BANK USE ONLY

	 
	 	 
	Received by:
	 	 
	 

	 	 
	 

	 	AUTHORIZED SIGNER

	 	 	 
	Date:
	 	 
	 

	 	 

	 	 	 
	Verified:
	 	 
	 

	 	 
	 

	 	AUTHORIZED SIGNER

	 	 	 
	Date:
	 	 
	 

	 	 

	 	 	 
	Compliance Status:

	 	Yes       No

 

 

FIFTH AMENDMENT TO LOAN AND SECURITY AGREEMENT

     THIS FIFTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Agreement”) is entered into as of
August 1, 2005 by and between SILICON VALLEY BANK, a California-chartered bank (“Bank”) with its
principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan
production office located at 8020 Towers Crescent
Drive, Suite 475, Vienna, Virginia 22182 and SOURCEFIRE, INC., a corporation organized and in good
standing in the State of Delaware (“Borrower”), whose address is 9770 Patuxent Woods Drive,
Columbia, Maryland 21046.

RECITALS.

     A. Borrower and Bank have entered into that certain Loan and Security Agreement
dated November 29, 2002 (as amended from time to time, the “Loan Agreement”), pursuant to
which Bank has agreed to establish a revolving line of credit in the current maximum principal
amount of Five Million Dollars ($5,000,000) (the “Committed Revolving Line”), a committed
equipment line of credit in the original principal amount of One Million Dollars ($1,000,000)
(the “Committed Equipment Line”) and a supplemental equipment line in the maximum
principal amount of One Million Dollars ($1,000,000) (the “Supplemental Equipment Line”).

     B. Borrower has requested that Bank modify certain financial covenants and Bank
has agreed to the foregoing on the condition, among others, that this Agreement be executed
and delivered by Borrower to Bank.

     C. Unless otherwise defined herein, capitalized terms used herein shall have the
respective meanings set forth in the Loan Agreement.

 

 

     NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, Borrower and Bank do
hereby agree as follows:

     1. Recitals. The parties hereto acknowledge and agree that the above Recitals are
true and correct in all material respects and that the same are incorporated herein and made a
part hereof by reference.

     2. Description of Change in Terms:

          A. Financial Covenants. Section 6.8(a) (Financial Covenants) of the Loan
Agreement is hereby amended and restated in its entirety, as follows:

          (a) Minimum Quarterly EBITDA. Borrower will maintain EBITDA of not less than
the following amounts for the quarterly period ending as of each of the dates below:

	 	 	 	 	 
	Date:	 	Amount:
	September 30, 20Q5
	 	($	2,200,000);	 
	December 31, 2005
	 	($	500,000);	 and
	March 31, 2006 and thereafter
	 	 $	1.00.  	 

     3. Compliance Certificate. Exhibit D to the Loan Agreement is hereby replaced in
its entirety with Exhibit D attached hereto and made a part hereof.

     4. Representations. Borrower hereby confirms that except as set forth in the
Schedule attached to this Agreement, the representations set forth in Section 5 of the Loan
Agreement, are true and correct as of the date hereof, and that no Event of Default has
occurred
or is continuing immediately prior to or upon the execution of this Agreement.

     5. Additional Defaults. In addition to those Events of Default specifically
enumerated in the Loan Agreement, if Borrower shall fail to comply with the terms of any
covenant or agreement contained herein, such failure shall constitute an Event of Default and
shall entitle Bank to exercise allrights and remedies provided in the Loan Agreement, as
well as

2

 

all other rights and remedies provided to Bank under the terms of any of the other Loan Documents.

     6. Counterparts. This Agreement may be executed in any number of duplicate
originals or counterparts, each of which duplicate original or counterpart shall be deemed to
be an original and all taken together shall constitute one and the same instrument.

     7. Loan
Documents; Governing Law; Etc. This Agreement is one of the Loan
Documents defined in the Loan Agreement, and this Agreement, each of the Loan Documents
shall be governed and construed in accordance with the laws of the Commonwealth of Virginia.
The headings and captions in this Agreement are for the convenience of the parties only and
are not a part of this Agreement.

     8. Acknowledgments. Borrower hereby confirms to Bank the enforceability and
validity of each of the Loan Documents with respect to the Borrower. In addition, Borrower
hereby agrees that the execution and delivery of this Agreement and the terms and provisions,
covenants or agreements contained in this Agreement shall not in any manner release, impair,
lessen, modify, waive or otherwise limit the liability and obligations of Borrower under the
terms of any of the Loan Documents, except as otherwise specifically set forth in this Agreement.
Borrower issues, ratifies and confirms the representations, warranties and covenants contained
in the Loan Documents.

     9. Modifications. This Agreement may not be supplemented, changed, waived,
discharged, terminated, modified or amended, except by written instrument executed by the
parties.

[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

3

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
as of the date first above written.

	 	 	 	 	 	 	 
	SOURCEFIRE, INC.	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Todd P. Headley	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Todd P. Headley	 	 
	 

	 	Title:
	 	CFO	 	 
	 
	 	 	 	 	 	 
	SILICON VALLEY BANK	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Megan Scheffel	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Megan Scheffel	 	 
	 

	 	Title:
	 	Relationship Mngr.	 	 

4

 

EXHIBIT D

	 	 	 
	TO:

	 	SILICON VALLEY BANK
	 

	 	3003 Tasman Drive
	 

	 	Santa Clara, CA 95054
	 
	 	 
	FROM:

	 	SOURCEFIRE, INC.
	 

	 	9770 Patuxent Woods Drive
	 

	 	Columbia, Maryland 21046

     The undersigned authorized officer of SOURCEFIRE, INC. (“Borrower”) certifies that
under the terms and conditions of the Loan and Security Agreement between Borrower and
Bank (the
“Agreement”), (i) Borrower is in complete compliance
for the period ending ____ with all
required covenants except as noted below and (ii) all representations and warranties
in the Agreement are true and correct in all material respects on this date. Attached
are the required documents supporting the certification. The Officer certifies that
these are prepared in accordance with Generally Accepted Accounting Principles (GAAP)
consistently applied from one period to the next except as explained in an
accompanying letter or footnotes. The Officer acknowledges that no borrowings may be
requested at any time or date of determination that Borrower is not in compliance
with any of the terms of the Agreement, and that compliance is determined not just
at the date this certificate is delivered.

Please indicate compliance status by circling Yes/No under “Complies” column.

	 	 	 	 	 	 	 
	Reporting Covenant	 	Required	 	Complies
	Monthly financial statements + CC
	 	Monthly within 30 days	 	Yes	 	No
	Annual (Audited)
	 	FYE within 180 days	 	Yes	 	No
	A/R Agings
	 	Monthly within 30 days	 	Yes	 	No
	A/R Audit
	 	Initial and Annual	 	Yes	 	No
	Borrowing Base Certificate
	 	Monthly when borrowing within 30 days	 	Yes	 	No

Financial Covenant

Maintain on a quarterly basis:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Minimum EBITDA	 	Quarter Ending	 	Required	 	Actual	 	 	Complies	 
	 
	 	September 30, 2005	 	($	2,200,000	)	$	 	 	 	 	Yes	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	December 31, 2005	 	($	500,000	)	$	 	 	 	 	Yes	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	March 31, 2006 and thereafter	 	 $	1.00	 	$	 	 	 	 	Yes	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Maintain on a monthly basis:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Adjusted Quick Ratio
	 	 	1.50 to 1.00	 	 	__to 1.00	 	Yes	 	No

 

 

	 	 	 
	Comments Regarding Exceptions: See Attached.
	 	 
	 
	 	 
	Sincerely,
	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 
	 	 	 
	Signature 
	 	 
	 
	 	 
	 	 	 
	Title 
	 	 
	 
	 	 
	 	 	 
	Date 
	 	 

	 	 	 
	BANK USE ONLY

	 
	Received by:
	 	 
	 

	 	 
	 

	 	AUTHORIZED SIGNER

	 	 	 
	Date:
	 	 
	 

	 	 

	 	 	 
	Verified:
	 	 
	 

	 	 
	 

	 	AUTHORIZED SIGNER

	 	 	 
	Date:
	 	 
	 

	 	 

	 	 	 
	Compliance Status:

	 	Yes      No

 

 

INVOICE FOR FEES AND/OR EXPENSES

Fee Invoice Number: 263899

	 	 	 	 	 
	BORROWER:

	 	SOURCEFIRE, INC.	 	 
	 
	 	 	 	 
	FED. TAX ID #

	 	52-2289365	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	LOAN OFFICER:

	 	Megan Scheffel	 	 
	 
	 	 	 	 
	DATE:

	 	August 15, 2005	 	 

	 	 	 	 	 
	Legal Fees and Expenses

	 	$	750	 

Please indicate the method of payment:

	 	 	 	o A check for the total is attached
	 
	 	 	 	þ Debit DDA#  3300418686  for the total amount
	 
	 	 	 	o Loan proceeds

Borrower:

SOURCEFIRE, INC.

	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ [ILLEGIBLE]
	 	 	 	Date:
	 	8/18/05
	 

	 	 
	 	 	 	 	 	 
	 

	 	Authorized Signer	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Lender:

Silicon Valley Bank	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Account Officer	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Silicon Valley Bank	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Signed in Santa Clara County, California	 	 	 	 	 	 

 

 

Tab 2

 

 

Binder E.3 — List of Liens

1. The Company entered into Loan and Security Agreement with Silicon Valley Bank (“SVB”) on
November 29, 2002 (the “Loan Agreement”), as amended by the First Amendment thereto dated November
3, 2003, the Second Amendment thereto dated March 19, 2004 and the Third Amendment thereto dated on
or about April 22, 2005. Under the Loan Agreement (as amended), the Company was issued a (i)
$5,000,000 Second Amended and Restated Revolving Promissory Note, and (ii) $1,000,000 Equipment
Term Note. Under the Loan Agreement, the Company granted SVB a first priority security interest in
the Company’s Collateral (as defined in the Loan Agreement). A UCC-1 Financing Statement was filed
on December 5, 2002 with the State of Delaware with respect to such security interest.

2. The Company has a $500,000 secured equipment lease line with E-Plus, of which approximately
$150,000 has been utilized.

 

 

TAB 3

 

 

SIXTH AMENDMENT TO

LOAN AND SECURITY AGREEMENT

     THIS SIXTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into this
20th day of July, 2006, by and between SILICON VALLEY BANK (“Bank”) and SOURCEFIRE,
INC., a corporation organized and in good standing in the State of Delaware (“Borrower”), whose
address is 9770 Patuxent Woods Drive, Columbia Maryland 21046.

RECITALS

     A. Bank and Borrower have entered into that certain Loan and Security Agreement dated
as of November 29, 2002 (as the same may from time to time be further amended, modified,
supplemented or restated, the “Loan Agreement”).

     B. Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement.

     C. Borrower has requested that Bank amend the Loan Agreement to (i) provide a second
supplemental equipment loan, and (ii) make certain other revisions to the Loan
Agreement as more fully set forth herein.

     D. Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the
extent, in accordance with the terms, subject to the conditions and in reliance upon the
representations and warranties set forth below,

AGREEMENT

     Now, Therefore, in consideration of the foregoing recitals and other good
and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and
intending to be legally bound, the parties hereto agree as follows:

     1. Definitions. Capitalized terms used but not defined in this Amendment shall have the
meanings given to them in the Loan Agreement.

     2. Amendments to Loan Agreement.

          2.1 Outstanding Obligations. The parties hereto acknowledge and agree that (a)
the outstanding principal balance of the Committed Equipment Line as of July 19, 2006 is
$76,166.93, (b) that the outstanding principal balance of the Committed Supplemental
Equipment Line as of July 19, 2006 is $606,943,06, (b) interest on the unpaid principal
balance of the Equipment Note and the Supplemental Equipment Note has been paid through
June 30, 2006, and (c) the unpaid principal balance of the Equipment Note and the
Supplemental Equipment Note, together with accrued and unpaid interest thereon, is due and
owing subject to the terms of repayment hereinafter set forth,
without defense or offset.

[Signature Page to Amendment to L&SA]

1

 

          2.2 Second Supplemental Committed Equipment Line. Section 2.1.5 is hereby added
immediately after Section 2.1.4 of the Loan Agreement as follows:

     2.1.5 Second Supplemental Committed Equipment Line

     (a) Subject to the terms and conditions of this Agreement, during the Draw Period, Bank
shall make advances (each, a “Second Supplemental Equipment Advance” and, collectively, “Second
Supplemental Equipment Advances”) not exceeding the Second Supplemental Committed Equipment Line.
Second Supplemental Equipment Advances may only be used to finance Eligible Equipment purchased
within ninety (90) days (determined based upon the applicable invoice date of such Eligible
Equipment) before the date of each Second Supplemental Equipment Advance, provided that the first
Second Supplemental Equipment Advance if made on or before August 19, 2006, may be made to
refinance the cost of Eligible Equipment purchased after January 1, 2006. No Second Supplemental
Equipment Advance may exceed one hundred (100%) of the total invoice for Eligible Equipment,
excluding taxes, shipping, warranty charges, freight discounts and installation expenses relating
to such Eligible Equipment. Unless otherwise agreed to by Bank, not more than fifty percent (50%)
of the proceeds of the Second Supplemental Committed Equipment Line shall be used to finance
Other Equipment, including, equipment and assets held outside of the United Slates. Each Second
Supplemental Committed Equipment Advance shall be in a minimum amount of Fifty Thousand Dollars
($50,000) and Borrower may only request six (6) Second Supplemental Equipment Advances hereunder.
After repayment, no Second Supplemental Equipment Advance may be reborrowed.

     (b) Interest accrues from the date of each. Second Supplemental Equipment Advance at the
Borrower’s option at either the Second Supplemental Prime Rate Option or the Second Supplemental
Fixed Rate Option (as defined in Section 2.3(a)(iv).

     (c) Second Supplemental Equipment Advances are repayable as follows:

          (i) Second Supplemental Equipment Advances which accrue interest at the Second Supplemental
Prime Rate Option (“Second Supplemental Prime Rate Equipment Advances”) are payable in thirty six
(36) equal monthly installments of principal, plus accrued interest, on the first (1st) day of
each month commencing on the first (1st) day of the first (1st) month after each Second
Supplemental Funding Date (as defined in Section 2.1.5(e));

          (ii) Second Supplemental Equipment Advances which accrue interest at the Second Supplemental
Fixed Rate Option (“Second Supplemental Fixed Rate Equipment Advances”) are payable in thirty six
(36) equal monthly installments of principal and accrued interest, on the first (1st) day of each
month commencing on the first (1st) day of the first (1st) month after each Second Supplemental
Funding Date.

     (d) To obtain a Second Supplemental Equipment Advance, Borrower at least three (3) Business
Days prior to the proposed funding date (the “Second Supplemental Funding Date”) will deliver to
Bank a Payment/Advance Form, together with copies of

 

 

invoices for the Eligible Equipment and Other Equipment, and such Payment/Advance Form will
indicate whether the Second Supplemental Equipment Advance will accrue interest at the Second
Supplemental Prime Rate Option or the Second Supplemental Fixed Rate Option, together with a UCC
Financing Statement, if requested by Bank, covering the Equipment described on the
Payment/Advance Form, and such additional information as Bank may
request. The notice must be
signed by a Responsible Officer or designee.

          2.3
Section 2.3 (Interest Rate, Payments). Section 2.3 is hereby amended and
restated in its entirely as follows:

          (a) Interest Rate. (i) Advances on the Committed Revolving Line accrue
interest on the outstanding principal balance at a per annum rate of one half of one
percent (0.50%) above the Prime Rate; provided, however, during any period where Borrower
has maintained EBITDA of at least $1.00 for the prior three (3) consecutive calendar months
(as determined by the financial information delivered to, accepted by Bank, pursuant to
Section 6.2(a) of this Agreement), Advances will accrue interest at the Prime Rate; (ii)
Equipment Advances continue to accrue interest at a per annum rate, set at the Borrower’s
option at the time of each Equipment Advance, of either (A) one
and one-half (1.50)
percentage points above the Prime Rate (the “Prime Rate
Option”), or (B) with
respect to each Equipment Advance made prior to November 1, 2003, a fixed rate of seven
percent (7.0%) per annum and with respect to any Equipment Advances made from and after
November 1, 2003, a fixed rate equal to six and one half percent
(6.5%) (the “Fixed Rate
Option”); (iii) Supplemental Equipment Advances accrue interest at the time of each
Supplemental Equipment Advance as selected by Borrower at such time at either (A) one (1.0)
percentage point above the Prime Rate (the “Supplemental Prime Rate Option”), or (B) seven
percent (7.0%) per annum (the “Supplemental Fixed Rate
Option”); and (iv) Second
Supplemental Equipment Advances accrue interest at the time of each Second Supplemental
Equipment Advance as selected by Borrower at such time at either (A) one half of one (0.50)
percentage point above the Prime Rate (the “Second Supplemental Prime Rate Option”), or (B)
nine percent (9.0%) per annum (the “Second Supplemental Fixed Rate Option”). After and
during the occurrence of an Event of Default, Obligations accrue interest at five percent
(5%) above the rate effective immediately before the Event of Default. The interest rate in
effect on any Credit Extensions which accrue interest at a rate tied to the Prime Rate,
increases or decreases when the Prime Rate changes. Interest is computed on a 360 day year
for the actual number of days elapsed.

          (b) Payments. Accrued interest due on the Committed Revolving Line is
payable on the filth (5th) day of each month. Accrued interest due on all Equipment
Advances, all Supplemental Equipment Advances and all Second Supplemental Equipment
Advances is payable on the first (1st) day of each month. Bank may debit any of
Borrower’s deposit accounts including Account
Number                                          for principal and interest payments owing or
any amounts Borrower owes Bank. Bank will promptly notify Borrower when it

 

 

debits Borrower’s accounts. These debits are not a set-off. Payments received after
12:00 noon Eastern Time are considered received at the opening of business on the next
Business Day. When a payment is due on a day that is not a Business Day, the payment is
due the next Business Day and additional fees or interest accrue.

          (c) Borrower may voluntarily prepay all or any portion of any Supplemental
Equipment Advance or any Second Supplemental Equipment Advance upon not less than five
(5) Business Days notice to Bank, provided any such prepayment is accompanied by a
prepayment fee equal to (i) two percent (2%) of the outstanding principal amount prepaid
if the prepayment occurs within the first eighteen (18) months from the date of the
Supplemental Equipment Advance or the Second Supplemental Equipment Advance, as
applicable and (ii) one percent (1%) of the outstanding principal amount prepaid at all
times after eighteen (18) months from the date of the Supplemental Equipment Advance or
the Second Supplemental Equipment Advance, as applicable. In addition to the above
prepayment fee, at the time of any such prepayment, Borrower must pay, on the date of
the prepayment, all unpaid accrued interest to the date of the prepayment and all other
sums, if any, that shall have become due and payable hereunder with respect to this
Agreement.

          2.4 Section 6.8(a) (Financial Covenants). Section 6.8(a) is hereby amended and restated in
its entirety as follows:

          (a) Minimum Quarterly EBITDA. Commencing as of March 31, 2007 and at all times
thereafter, Borrower will maintain EBITDA of not less than $1.00 for each quarterly
ending period.

          2.5 Section 13 (Definitions).

      (a) The definition of “Credit Extension” in Section 13 of the Loan Agreement is amended and
restated in its entirety as follows:

“Credit
Extension” is each Advance, Equipment Advance, Letter of Credit, Supplemental
Equipment Advance, Second Supplement Equipment Advance, or any other extension of credit
by Bank for Borrower’s benefit.

(b) The following definitions are hereby added to Section 13:

“Draw Period” is the period of time from the July 20, 2006 through the earliest to
occur of (a) December 31, 2006 or (b) an Event of Default.

“Eligible Equipment” is (a) general purpose computer equipment, office equipment, test
and laboratory equipment, furnishings, and (b) Other Equipment that complies with all of
Borrower’s representations and warranties to Bank and which is acceptable to Bank in all
respects and in which Bank has a first priority Lien. Eligible Equipment includes
Equipment purchased and residing outside the United States if such Equipment complies
with all of Borrower’s representations

 

 

and warranties to Bank and Bank has a first priority Lien under the laws of
such jurisdiction.

“Second Supplemental Committed Equipment Line” is a Credit Extension of up to One
Million Dollars ($1,000.000).

“Second Supplemental Equipment Advance” has the meaning set forth in Section
2.1.5(a).

          2.6 Compliance Certificate. Exhibit D to the Loan Agreement is hereby
replaced in its entirety with Exhibit D attached hereto and made a part hereof.

          2.7 Reporting, In addition to all other reports required under the Loan Agreement,
Borrower shall on a quarterly basis advise Bank of any material developments in connection
with the litigation described on Schedule A attached hereto.

          2.8 Notes. Bank no longer requires that its borrowers execute and deliver promissory
note in connection with its Credit Extensions. Instead, the Loan Agreement shall evidence
Borrower’s obligation to repay all Credit Extensions. Accordingly, from and. after the date
hereof, all references to the Equipment Term Note, Supplemental Equipment Term Note and
Revolving Promissory Note are deleted from the Loan Agreement. It is expressly agreed that
the indebtedness evidenced by the Equipment Term Note, the Supplemental Equipment Term Note
and the Revolving Promissory Note has not been extinguished or discharged hereby. The
Borrower and the Bank agree that the execution of this Agreement is not intended to and shall
not cause or result in a novation with respect to the Equipment Term Note, the Supplemental
Equipment Term Note and the Revolving Promissory Note.

     3. Limitation of Amendments.

          3.1 The amendments set forth in Section 2, above, are effective for the purposes
set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a
consent to any amendment, waiver or modification of any other term or condition of any Loan
Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have
in the future under or in connection with any Loan Document.

          3.2 This Amendment shall be construed in connection with and as part of the Loan
Documents and all terms, conditions, representations, warranties, covenants and agreements set
forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and
shall remain in Ml force and effect.

     4. Representations and Warranties. To induce Bank to enter into this Amendment, Borrower
hereby represents and warrants to Bank as follows:

 

 

          4.1 Immediately after giving effect to this Amendment (a) the representations and
warranties contained in the Loan Documents are true, accurate and complete in all material
respects as of the date hereof (except to the extent such representations and warranties
relate to an earlier date, in which case they are true and correct as of such date), and
(b) no Event of Default has occurred and is continuing;

          4.2 Borrower has the power and authority to execute and deliver this Amendment and to
perform its obligations under the Loan Agreement, as amended by this Amendment;

          4.3 The organizational documents of Borrower delivered to Bank on March 10, 2005 remain
true, accurate and complete and have not been amended, supplemented or restated, except to
the extent set forth in Schedule A, attached hereto, and are and continue to be in
full force and effect;

          4.4 The execution and delivery by Borrower of this Amendment and the performance by
Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been
duly authorized;

          4.5 The execution and delivery by Borrower of this Amendment and the performance by
Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not
and will not contravene (a) any law or regulation binding on or affecting Borrower., (b) any
contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree
of any court or other governmental or public body or authority, or subdivision thereof,
binding on Borrower, or (d) the organizational documents of Borrower;

          4.6 The execution and delivery by Borrower of this Amendment and the performance by
Borrower of its obligations under the Loan Agreement, as amended by this Amendment do not
require any order, consent, approval, license, authorization or validation of, or filing,
recording or registration with, or exemption by any governmental or public body or authority,
or subdivision thereof, binding on Borrower, except as already has been obtained or made:
find

          4.7 This Amendment has been duly executed and delivered by . Borrower and is the
binding obligation of Borrower, enforceable against Borrower in accordance with its terms,
except as such enforceability may be limited by bankruptcy, insolvency, reorganization,
liquidation, moratorium or other similar laws of general application and equitable principles
relating to or affecting creditors’ rights.

     5. Counterparts. This Amendment may be executed many number of counterparts and all of such
counterparts taken together shall be deemed to constitute one and the same instrument,

     6. Effectiveness. This Amendment shall be deemed effective upon (a) the due execution and
delivery to Bank of this Amendment by each party hereto, and (b) payment of Bank’s legal fees and
expenses in connection with the negotiation and preparation of this Amendment.

 

 

     in witness whereof, the parties hereto have caused this Amendment to be duly
executed and delivered as of the date first written above.

	 	 	 	 	 	 	 	 	 
	BANK	 	 	 	BORROWER
	 
	 	 	 	 	 	 	 	 
	SILICON VALLEY BANK	 	 	 	SOURCEFIRE, INC.
	 
	 	 	 	 	 	 	 	 
	By:

	 	Heather Parker
	 	 	 	By:
	 	Todd P. Headley
	 

	 	 
	 	 	 	 	 	 
	Name:

	 	Heather Parker
	 	 	 	Name:
	 	Todd P. Headley
	Title:

	 	Relationship Manager
	 	 	 	Title:
	 	CFO

 

 

SCHEDULE A

Sourcefire, Inc.

sixth amendment

To

loan and security agreement

Exceptions to Representation and Warranties

     Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to
them in the Loan and Security Agreement.

     On April 25, 2006. Sourcefire was served with a complaint tile by PredatorWatch, Inc. (a.k.a.,
NetClarity) in the Superior Court of Suffolk County, Massachusetts. The plaintiff has alleged that
Sourcefire: (i) misappropriated its trade secrets; (ii) breached an oral agreement of
confidentiality; (iii) breached its covenant of good faith and fair dealing owed to the plaintiff;
(iv) was unjustly enriched; (v) misrepresented certain material facts to the plaintiff upon which
the plaintiff relied upon to its detriment; and (vi) engaged in unfair and deceptive acts in
violation of Massachusetts state law. The plaintiff has sought to recover amounts to be ascertained
and established, as well as double and treble damages and attorney’s fees.

CERTIFICATE OF INCORPORATION

The Borrower’s Fifth Amended & Restated Certificate of incorporation, adopted on May 23, 2006, is
attached.

 

 

EXHIBIT D

	 	 	 	 	 
	TO:

	 	SILICON VALLEY BANK	 	 
	 

	 	3003 Tasman Drive	 	 
	 

	 	Santa Clara, CA 95054
	 	 
	 
	 	 	 	 
	FROM:

	 	SOURCEFIRE. INC.	 	 
	 

	 	9770 Patuxent Woods Drive	 	 
	 

	 	Columbia Maryland 21046.	 	 

     The undersigned authorized officer of SOURCEFIRE, INC. (“Borrower”) certifies
that under the terms and conditions of the Loan and Security Agreement between Borrower and
Bank (the “Agreement”), (i) Borrower is in complete compliance for the period ending
                     with all required covenants except as noted below and (ii) all representations
and warranties in the Agreement are true and correct in all material respects on this date.
Attached are the required documents supporting the certification. The Officer certifies that
these are prepared in accordance with Generally Accepted Accounting Principles (GAAP)
consistently applied from one period to the next except as explained in an accompanying
letter or footnotes. The Officer, acknowledges that no borrowings may be requested at any
time or date of determination that Borrower is not in compliance with any of the terms of the
Agreement, and that compliance is determined not just at the date this certificate is
delivered.

Please indicate compliance status by circling Yes/No under “Complies” column.

	 	 	 	 	 	 	 	 	 	 	 
	Reporting Covenant	 	Required	 	Complies	 
	Monthly financial statements + CC
	 	Monthly within 30 days	 	Yes	 	No
	Annual (Audited)
	 	FYB within 180 days	 	Yes	 	No
	A/R Agings
	 	Monthly within 30 days	 	Yes	 	No
	A/R Audit
	 	Initial and Annual	 	Yes	 	No
	Borrowing Base- Certificate
	 	Monthly when borrowing	 	 	 	 	 	 	 	 
	 
	 	within 30 days	 	Yes	 	No
	Litigation Updates
	 	Quarterly w/i 30 clays	 	Yes	 	No

Financial Covenant

Maintain on a quarterly basis:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Quarter Ending	 	Required	 	Actual	 	Compiles
	Minimum EBITDA
	 	March  31, 2007 and	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	thereafter	 	$	1.00	 	 	$___	 	 	 	Yes	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Maintain on a monthly basis:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Adjusted Quick
Ratio
	 	 	 	 	 	 	1.50 to 1.00	 	 	___to 1.00	 	Yes	 	No

 

 

	 	 	 
	Comments Regarding Exceptions: See Attached
	 	 
	 
	 	 
	Sincerely,
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

signature

	 	 
	 
	 	 
	 

title

	 	 
	 
	 	 
	 

date 

	 	 

BANK USE ONLY

	 	 	 
	Received By:
	 	 
	 

	 	 
	 

	 	AUTHORIZED SIGNER
	 
	 	 
	Date:
	 	 
	 

	 	 
	 
	 	 
	Verified:
	 	 
	 

	 	 
	 

	 	AUTHORIZED SIGNER
	 
	 	 
	Date:
	 	 
	 

	 	 
	 
	 	 
	Compliance Status:

	 	Yes            Noexv10w10

 

Exhibit 10.10

LEASE AGREEMENT

LIBERTY PROPERTY LIMITED PARTNERSHIP

Landlord

AND

SOURCEFIRE, INC.

Tenant

AT

9770 Patuxent Woods Drive

Columbia, MD 21046

 

 

LEASE AGREEMENT

INDEX

	 	 	 	 	 	 	 
	§	 	Section	 	Page
	 
	1.

	 	Basic Lease Terms and Definitions
	 	 	1	 
	2.

	 	Premises
	 	 	2	 
	3.

	 	Use
	 	 	2	 
	4.

	 	Term; Possession
	 	 	2	 
	5.

	 	Rent
	 	 	2	 
	6.

	 	Operating Expenses
	 	 	2	 
	7.

	 	Utilities
	 	 	3	 
	8.

	 	Insurance; Waivers; Indemnification
	 	 	3	 
	9.

	 	Maintenance and Repairs
	 	 	4	 
	10.

	 	Compliance
	 	 	4	 
	11.

	 	Signs
	 	 	5	 
	12.

	 	Alterations
	 	 	5	 
	13.

	 	Mechanics’ Liens
	 	 	6	 
	14.

	 	Landlord’s Right of Entry
	 	 	6	 
	15.

	 	Damage by Fire or Other Casualty
	 	 	6	 
	16.

	 	Condemnation
	 	 	6	 
	17.

	 	Quiet Enjoyment
	 	 	6	 
	18.

	 	Assignment and Subletting
	 	 	6	 
	19.

	 	Subordination; Mortgagee’s Rights
	 	 	7	 
	20.

	 	Tenant’s Certificate; Financial Information
	 	 	7	 
	21.

	 	Surrender
	 	 	8	 
	22.

	 	Defaults Remedies
	 	 	8	 
	23.

	 	Tenant’s Authority
	 	 	9	 
	24.

	 	Liability of Landlord
	 	 	9	 
	25.

	 	Miscellaneous
	 	 	10	 
	26.

	 	Notices
	 	 	10	 
	27.

	 	Security Deposit
	 	 	10	 
	28.

	 	Tenant Improvements
	 	 	11	 
	29.

	 	Furniture and Furnishings
	 	 	11	 
	30.

	 	Early Occupancy
	 	 	11	 
	31.

	 	Intentionally Deleted
	 	 	11	 
	32.

	 	Termination Option
	 	 	11	 
	33.

	 	Right of First Offer
	 	 	11	 
	34.

	 	Satellite Dist Antenna
	 	 	11	 
	35.

	 	Hazardous Materials
	 	 	12	 
	36.

	 	Parking
	 	 	13	 
	36.

	 	Landlord Default; Self Help
	 	 	13	 

i

 

     THIS
LEASE AGREEMENT is made by and between LIBERTY PROPERTY LIMITED PARTNERSHIP, a
Pennsylvania limited partnership (“Landlord”) and Sourcefire, Inc., a Corporation organized
under the laws of Delaware (“Tenant”), and is dated as of the date on which this Lease has been fully executed by
Landlord and Tenant.

  1. Basic Lease Terms and Definitions Premises: The entire building as shown on Exhibit
“A”.

     (b) Building: Approximate rentable square feet: 35,520 (to be confirmed in
accordance with Section 2 hereof). Address: 9770 Patuxent Woods Drive, Columbia, MD 21046

     (c) Term: 36 months (plus any partial month from the Commencement Date until the first day of
the next full calendar month during the Term).

     (d) Commencement Date: June 1, 2005, subject to Section 4, or the date Tenant takes
possession of the
Premises, if earlier

     (e) Expiration Date: May 31, 2008, subject to Section 5.

     (f) Minimum
Annual Rent: $11.90 per rentable square feet in the Premises (subject to 3% annual
increases),
payable in monthly installments as follows:

	 	 	 	 	 	 	 	 	 
	Lease Year	 	Annual	 	 	Monthly	 
	 
	6/1/05-5/31/06
	 	$	422,688.00	 	 	$	35,224.00	 
	6/1/06-5/31/07
	 	$	435,368.64	 	 	$	36,280.72	 
	6/1/07-5/31/08
	 	$	448,429.68	 	 	$	37,369.14	 

     (g) Annual Operating Expenses: $129,292.80 (based on $3.64 per rentable square feet
in the Premises),
payable in monthly installments of $10,774,40, subject to adjustment as provided in this
Lease.

     (h) Tenant’s Share: 100.00% (also see Definitions)

     (i) Use: General office and computer lab

     (j) Security Deposit: $45,998.40

     (k) Addresses For Notices:

	 	 	 	 	 	 	 
	Landlord:

	 	Liberty Property Limited Partnership
	 	Tenant:
	 	Before the Commencement Date:
	 

	 	5950 Symphony Woods Road, Suite 210
	 	 	 	Sourcefire, Inc.
	 

	 	Columbia, MD 21044
	 	 	 	9212 Berger Road, Suite 200
	 

	 	Attn: Vice President/City Manager
	 	 	 	Columbia, MD 21046
	 
	 

	 	 	 	 	 	On or after the Commencement Date: Premises

	 	(l)	 	Guarantor: None
	 
	 	(m)	 	Additional Defined Terms: See Rider 1 for the definitions of other capitalized
terms.
	 
	 	(n)	 	Contents: The following are attached to and made a part of this Lease:

	 	 	 	 	 	 	 
	 

	 	Rider 1 — Additional Definitions
	 	Exhibits:
	 	“A” — Plan showing Premises
	 

	 	 	 	 	 	“B” — Building Rules
	 

	 	 	 	 	 	“C” — Estoppel Certificate Form
	 

	 	 	 	 	 	“D” — Additional Space
	 

	 	 	 	 	 	“E” — Furniture & Furnishings and
Construction

 

 

2. Premises. Landlord leases to Tenant and Tenant leases from Landlord the Premises,
together with the right in
common with others to use the Common Areas, Tenant accepts the Premises, Building and Common Areas
“AS IS”, without
relying on any representation, covenant or warranty by Landlord other than as expressly set forth
in this Lease. Prior to the
Commencement Date, Landlord shall confirm in writing the exact number of square feet of rentable
area included in the
Premises, which shall be measured in accordance with the American National Standards Institute,
Inc./Building Owners and
Managers Association standard method of measuring floor area, ANSI/BOMA Z65.1-1996 for single
office tenants
(“BOMA”),

3. Use. Tenant shall occupy and use the Premises only for the Use specified in Section 1
above and for any other purpose
approved by Landlord, which approval may be granted or withheld in Landlord’s sole and absolute
discretion. Tenant shall
not permit any conduct or condition which may endanger, disturb or otherwise interfere with any
other Building occupant’s
normal operations or with the management of the Building. Tenant shall not use or permit the use
of any portion of the
Property for outdoor storage or installations outside of the Premises. Tenant may use all Common
Areas only for their
intended purposes. Landlord shall have exclusive control of all Common Areas at all times.

4. Term; Possession. The Term of this Lease shall commence on the Commencement Date and
shall end on the
Expiration Date, unless sooner terminated in accordance with this Lease. If Landlord is delayed in
delivering possession of
all or any portion of the Premises to Tenant as of the Commencement Date, Tenant will take
possession on the date Landlord
delivers possession, which date will then become the Commencement Date (and the Expiration Date
will be extended so that
the length of the Term remains unaffected by such delay). Landlord shall not be liable for any
loss or damage to Tenant
resulting from any delay in delivering possession due to the holdover of any existing tenant or
other circumstances outside of
Landlord’s reasonable control.

5. Rent.

     (a) Tenant agrees to pay to Landlord, without demand, deduction or offset (except as otherwise
expressly
provided herein), Minimum Annual Rent and Annual Operating Expenses for the Term. Tenant shall
pay the Monthly Rent,
in advance, on the first day of each calendar month during the Term, at Landlord’s address
designated in Section 1 above
unless Landlord designates otherwise in writing; provided that Monthly Rent for the first full
month shall be paid at the
signing of this Lease. If the Commencement Date is not the first day of the month, the Monthly
Rent for that partial month
shall be apportioned on a per diem basis and shall be paid on or before the Commencement Date.
Tenant shall pay Landlord
a service and handling charge equal to 5% of any Rent not paid within 5 business days after
the date due, In addition, any
Rent, including such charge, not paid within 5 business days after the due date will bear
interest at the Interest Rate from the
date due to the date paid. If any taxes, special assessments, fees or other charges are
imposed against Landlord by any
authority with respect to the Rent, Tenant will pay these amounts to Landlord when due.
Notwithstanding the foregoing
provisions of this Section 5 to the contrary, Landlord shall waive such late fee and default
interest the first (lst) time in any
twelve (12) month period that Tenant fails to make a payment as aforesaid.

     (b) In the event Tenant institutes an independent action against Landlord and is awarded a
money judgment,
and provided that such judgment is either affirmed on appeal by the highest court for which an
appeal thereof may be filed or
the time for filing such an appeal has expired, then in such event, and only in such event, if
Landlord fails to pay such
judgment within thirty (30) days after the same is entered into, Tenant may deduct the amount
of such money judgment from
the next monthly installment or installments of Monthly Rent due hereunder.

6. Operating Expenses.

     (a) The amount of the Annual Operating Expenses set forth in Section l(g) above represents
Tenant’s Share of
the estimated Operating Expenses for the calendar year in which the
Term commences. At the
beginning of the first calendar
year after the Commencement Date and at the beginning of each calendar year thereafter during
the Term, Landlord shall
submit a statement setting forth the estimated Operating Expenses for such calendar year.
Landlord may adjust such amount
from time to time, in its reasonable discretion, if the estimated Annual Operating Expenses
increase or decrease; Landlord
may also invoice Tenant separately from time to time for Tenant’s Share of any extraordinary
or unanticipated Operating
Expenses. By March 31st of each year (and as soon as practical after the
expiration or termination of this Lease or, at
Landlord’s option, after a sale of the Property), Landlord shall provide Tenant with a
statement of Operating Expenses for the
preceding calendar year or part thereof. Within 30 days after delivery of the statement to
Tenant, Landlord or Tenant shall
pay to the other the amount of any overpayment or deficiency then due from one to the other
or, at Landlord’s option,
Landlord may credit Tenant’s account for any overpayment. Landlord’s and Tenant’s obligation
to pay any overpayment or
deficiency due the other pursuant to this Section shall survive the expiration or termination
of this Lease. Notwithstanding
any other provision of this Lease to the contrary, Landlord may, in its reasonable
discretion, determine from time to time the
method of computing and allocating Operating Expenses, including the method of allocating
Operating Expenses to various

2

 

types of space within the Building to reflect any disparate levels of services provided to
different types of space. If the Building is not fully occupied during any period, Landlord may
make a reasonable adjustment based on occupancy in computing the Operating Expenses for such period
so that Operating Expenses are computed as though the Building had been fully occupied. If the Term
commences or expires on a day other than the first day or the last day of a calendar year,
respectively, then Tenant’s liabilities pursuant to this Section for such calendar year shall be
apportioned by multiplying the respective amount of Tenant’s Share thereof for the full calendar
year by a fraction, the numerator of which is the number of days during such calendar year falling
within the Lease Term, and the denominator of which is three hundred sixty-five (365).

     (b) For a period of ninety (90) days after Tenant’s receipt of a statement of Operating
Expenses for a calendar year, Tenant, or an independent, certified public accountant who is hired
by Tenant on a noncontingent fee basis, shall have the right, after giving at least ten (10) days’
advance written notice to Landlord, to inspect and complete an audit of Landlord’s books and
records relating to Operating Expenses. Tenant shall keep the results of any such audit
confidential. If such audit shows that the amounts paid by Tenant to Landlord on account of
Operating Expenses exceed the amounts to which Landlord is entitled hereunder, Landlord shall
credit the amount of such excess toward the next monthly payment of rent due hereunder, or, in the
case of an audit for the calendar year in which the Term expires, Landlord shall pay Tenant the
amount of such excess within thirty (30) days after written request therefor. All costs and
expenses of any such audit shall be paid by Tenant.

7. Utilities; Services; Building Security System.

     (a) Tenant shall pay for water, sewer, gas, electricity, heat, power, telephone and other
communication services and any other utilities supplied to the Premises. Except to the extent
Landlord elects to provide any such services and invoice Tenant for the cost or include the cost in
Operating Expenses, Tenant shall obtain service in its own name and timely pay all charges directly
to the provider. Landlord shall not be responsible or liable for any interruption in such
services, nor shall such interruption affect the continuation or validity of this Lease. Landlord
shall have the exclusive right to select, and to change, the companies providing such services to
the Building or Premises, with reasonable advance written notice to Tenant. Any wiring, cabling or
other equipment necessary to connect Tenant’s telecommunications equipment shall be Tenant’s
responsibility, and shall be installed in a manner approved by Landlord, which approval shall not
be unreasonably withheld, conditioned or delayed.

     (b) Notwithstanding the provisions of Section 7(a) above to the contrary, if (i) any of the
foregoing services are interrupted for a period of more than five (5) consecutive days as a result
of Landlord’s (or its agents’ or employees’) negligence or willful misconduct, (ii) Landlord has
not commenced or is not diligently pursuing curing such interruption, and (iii) such interruption
renders all or a substantial portion of the Premises untenantable by Tenant, then, Tenant shall be
entitled to a pro rata abatement of rent beginning on the sixth (6th) consecutive day
that the Premises are untenantable and continuing until the use of the Premises is restored to
Tenant.

     (c) Tenant shall have access to the Building twenty-four (24) hours per day each day of the
year. Tenant shall have the right, at its sole cost and expense, to install a controlled access
system in the Building. Such access system shall be subject to Landlord’s approval, which approval
shall not be unreasonably withheld, conditioned or delayed. At Landlord’s sole discretion, Tenant
shall be obligated to remove the access system and restore or replace all parts of the building
impacted by such system’s installation, Tenant shall provide Landlord with a master access key so
that Landlord shall have access to the Premises at all times to the extent permitted by the terms
of this Lease.

8. Insurance; Waivers; Indemnification.

     (a) Landlord shall maintain insurance against loss or damage to the Building or the Property
with coverage for perils as set forth under the “Causes of Loss-Special Form” or equivalent
property insurance policy in an amount equal to the full insurable replacement cost of the Building
(excluding coverage of Tenant’s personal property and any Alterations by Tenant), and such other
insurance, including rent loss coverage, as Landlord may reasonably deem appropriate or as any
Mortgagee may require.

     (b) Tenant, at its expense, shall keep in effect commercial general liability insurance,
including blanket contractual liability insurance, covering Tenant’s use of the Property, with such
coverages and limits of liability as Landlord may reasonably require, but not less than combined
single limits of $2,000,000 per occurrence and $5,000,000 in the aggregate for bodily injury or
property damage; however, such limits shall not limit Tenant’s liability hereunder. Any general
aggregate limit shall apply on a “per location” basis. The policy shall name Landlord, Liberty
Property Trust and any other associated or affiliated entity as their interests may appear and at
Landlord’s request, any Mortgagee(s), as additional insureds with respect to the Premises, shall be
written on an “occurrence” basis and not on a “claims made” basis and shall be

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endorsed to provide that it is primary to and not contributory to any policies carried by Landlord
and to provide that it shall not be cancelable or reduced without at least 30 days prior notice to
Landlord. The insurer shall be authorized to issue such insurance, licensed to do business and
admitted in the state in which the Property is located and rated at least A VII in the most current
edition of Best’s Insurance Reports. Tenant shall deliver to Landlord on or before the Commencement
Date or any earlier date on which Tenant accesses the Premises, and at least 30 days prior to the
date of each policy renewal, a certificate of insurance evidencing such coverage.

     (c) Landlord and Tenant each waive, and release each other from and against, all claims for
recovery against the other for any loss or damage to the property of such party arising out of fire
or other casualty coverable by a standard “Causes of Loss-Special Form” property insurance policy
with, in the case of Tenant, such endorsements and additional coverages as are considered good
business practice in Tenant’s business, even if such loss or damage shall be brought about by the
fault or negligence of the other party or its Agents; provided, however, such waiver by Landlord
shall not be effective with respect to Tenant’s liability described in Sections 9(b) and 10(d)
below. This waiver and release is effective regardless of whether the releasing party actually
maintains the insurance described above in this subsection and is not limited to the amount of
insurance actually carried, or to the actual proceeds received after a loss. Each party shall
have its insurance company that issues its property coverage waive any rights of subrogation, and
shall have the insurance company include an endorsement acknowledging this waiver, if necessary.
Tenant assumes all risk of damage of Tenant’s property within the Property, including any loss or
damage caused by water leakage, fire, windstorm, explosion, theft, act of any other tenant, or
other cause.

     (d) Subject to subsection (c) above, and except to the extent caused by the negligence or
willful misconduct of Landlord or its Agents, Tenant will indemnify, defend, and hold harmless
Landlord and its Agents from and against any and all claims, actions, damages, liability and
expense (including reasonable fees of attorneys, investigators and experts) which may be asserted
against, imposed upon, or incurred by Landlord or its Agents and arising out of or in connection
with loss of life, personal injury or damage to property in or about the Premises or arising out of
the occupancy or use of the Property by Tenant or its Agents or occasioned wholly or in part by any
negligent act or omission of Tenant or its Agents, whether prior to, during or after the Term,
Tenant’s obligations pursuant to this subsection shall survive the expiration or termination of
this Lease.

     (e) Subject to subsection (c) above, and except to the extent caused by the negligence or
willful misconduct of Tenant or its Agents, Landlord will protect, indemnify and hold harmless
Tenant and its Agents from and against any and all claims, actions, damages, liability and expense
(including reasonable fees of attorneys, investigators and experts) in connection with loss of
life, personal injury or damage to property caused to any person in or about the Property
occasioned wholly or in part by the negligence of Landlord or its Agents. Landlord’s obligations
pursuant to this Section shall survive the expiration or termination of this lease.

9. Maintenance and Repairs.

     (a) Landlord shall Maintain the: (i) Building footings, foundations, structural steel
columns and girders at Landlord’s sole expense; (ii) Building roof and exterior walls; (iii)
Building Systems; and (iv) Common Areas. Except as otherwise provided herein, costs incurred by
Landlord under the foregoing subsections (ii), (iii) and (iv) will be included in Operating
Expenses, provided that to the extent any heating, ventilation and air conditioning system, or
other Building System, equipment or fixture exclusively serves the Premises, Landlord may elect
either to Maintain the same at Tenant’s sole expense and bill Tenant directly or by notice to
Tenant require Tenant to Maintain the same at Tenant’s expense. If Tenant becomes aware of any
condition that is Landlord’s responsibility to repair, Tenant shall promptly notify Landlord of the
condition.

     (b) Except as provided in subsection (a) above, Tenant at its sole expense shall Maintain the
Premises and all fixtures and equipment in the Premises. All repairs and replacements by Tenant
shall utilize materials and equipment which are comparable to those originally used in constructing
the Building and Premises, Alterations, repairs and replacements to the Property, including the
Premises, made necessary because of Tenant’s Alterations or installations, any use or circumstances
special or particular to Tenant, or any negligent act or willful misconduct of Tenant or its Agents
shall be made by Landlord or Tenant as set forth above, but at the sole expense of Tenant.

10. Compliance.

     (a) Tenant will, at its expense, promptly comply with all Laws now or subsequently pertaining
to the Premises or Tenant’s use or occupancy. Tenant will pay any taxes or other charges by any
authority on Tenant’s property or trade fixtures or relating to Tenant’s use of the Premises,
Neither Tenant nor its Agents shall use the Premises in any manner that under any applicable Law
would require Landlord to make any Alteration to or in the Building or Common Areas (without

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limiting the foregoing, Tenant shall not use the Premises in any manner that would cause the
Premises or the Property to be deemed a “place of public accommodation” under the ADA if such use
would require any such Alteration). Tenant shall be responsible for compliance with the ADA, and
any other Laws regarding accessibility, with respect to the Premises.

     (b) Tenant will comply, and will cause its Agents to comply, with the Building Rules.

     (c) Tenant agrees not to do anything or fail to do anything which will increase the cost of
Landlord’s insurance or which will prevent Landlord from procuring policies (including public
liability) from companies and in a form reasonably satisfactory to Landlord, If any breach of the
preceding sentence by Tenant causes the rate of fire or other insurance to be increased, Tenant
shall pay the amount of such increase as additional Rent within 30 days after being billed.

     (d) Tenant agrees that (i) no activity will be conducted on the Premises that will use or
produce any Hazardous Materials, except for activities which are part of the ordinary course of
Tenant’s business and are conducted in accordance with all
Environmental Laws (“Permitted
Activities”); (ii) the Premises will not be used for storage of any Hazardous Materials, except for
materials used in the Permitted Activities which are properly stored in a manner and location
complying with all Environmental Laws; (iii) no portion of the Premises or Property will be used by
Tenant or Tenant’s Agents for disposal of Hazardous Materials; (iv) Tenant will deliver to Landlord
copies of all Material Safety Data Sheets and other written information prepared by manufacturers,
importers or suppliers of any chemical used or stored at the Property by Tenant or Tenant’s Agents;
and (v) Tenant will immediately notify Landlord of any violation by Tenant or Tenant’s Agents of
any Environmental Laws or the release or suspected release of Hazardous Materials in, under or
about the Premises, and Tenant shall immediately deliver to Landlord a copy of any notice, filing
or permit sent or received by Tenant with respect to the foregoing. If at any time during or after
the Term, any portion of the Property is found to be contaminated by Tenant or Tenant’s Agents or
subject to conditions prohibited in this Lease caused by Tenant or Tenant’s Agents, Tenant will
indemnify, defend and hold Landlord harmless from all claims, demands, actions, liabilities, costs,
expenses, reasonable attorneys’ fees, damages and obligations of any nature arising from or as a
result thereof, and Landlord shall have the right to direct remediation activities, all of which
shall be performed at Tenant’s cost. Tenant’s obligations pursuant to this subsection shall
survive the expiration or termination of this Lease.

     (e) Landlord shall comply with all applicable Laws to the extent same applies to any portion
of the Building and the Common Areas which Landlord is required by this Lease to maintain.

11.
Signs. Tenant shall not place any signs on the Property without the prior consent of
Landlord, which consent shall not be unreasonably withheld, conditioned or delayed, other than
signs that are located wholly within the interior of the Premises and not visible from the exterior
of the Premises. Notwithstanding the foregoing, subject to the terms and conditions of this Section
11, Tenant shall have the sole and exclusive right to install one (1) sign approved by Landlord
identifying Tenant on the exterior of the Building, provided Tenant shall obtain all necessary
permits and approvals. The sign approved by Landlord shall be installed by Tenant at Tenant’s
sole cost and expense and shall be removed by Tenant at Tenant’s sole cost and expense prior to the
expiration or earlier termination of the Term. Tenant shall maintain all signs installed by Tenant
in good condition. Tenant shall remove its signs at the termination of this Lease, shall repair any
resulting damage, and shall restore the Property to its condition existing prior to the
installation of Tenant’s signs.

12.
Alterations. Except for cosmetic Alterations (such as painting, wall covering and
floor covering) that (i) are not visible from the exterior of the Premises, (ii) do not affect the
structure of the Building or any Building System, (iii) do not require penetrations into the floor,
ceiling or walls, and (iv) do not require work within the walls, below the floor or above the
ceiling, Tenant shall not make or permit any Alterations in or to the Premises without first
obtaining Landlord’s consent, which consent shall not be unreasonably withheld, conditioned or
delayed. With respect to any Alterations made by or on behalf of Tenant (whether or not the
Alteration requires Landlord’s consent): (i) not less than 10 days prior to commencing any
Alteration. Tenant shall deliver to Landlord the plans, specifications and necessary permits for
the Alteration, together with certificates evidencing that Tenant’s contractors and subcontractors
have adequate insurance coverage naming Landlord, Liberty Property Trust and any other associated
or affiliated entity as their interests may appear as additional insureds, (ii) Tenant shall obtain
Landlord’s prior written approval of any contractor or subcontractor, which approval shall not be
unreasonably withheld, conditioned or delayed, (iii) the Alteration shall be constructed with new
materials, in a good and workmanlike manner, and in compliance with all Laws and the plans and
specifications delivered to, and, if required above, approved by Landlord, which approval shall not
be unreasonably withheld, conditioned or delayed, and (iv) Tenant shall pay Landlord all reasonable
out-of-pocket costs and expenses in connection with Landlord’s review of Tenant’s plans and
specifications, and of any supervision or inspection of the construction Landlord reasonably deems
necessary. Any Alteration by Tenant shall be the property of Tenant until the expiration or
termination of this Lease; at that time without payment by Landlord the Alteration shall remain on
the Property and become the property of Landlord unless Landlord gives notice to Tenant to remove
it, in which event Tenant will remove it, will repair any resulting damage and will restore the
Premises to the condition existing prior to Tenant’s Alteration. At Tenant’s request prior to
Tenant making any Alterations,

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Landlord will notify Tenant whether Tenant is required to remove the Alterations at the expiration
or termination of this Lease. Tenant may install its trade fixtures, furniture and equipment in the
Premises, provided that the installation and removal of them will not adversely affect any
structural portion of the Property, any Building System or any other equipment or facilities
serving the Building or any occupant.

13. Mechanics’ Liens. Tenant promptly shall pay for any labor, services, materials,
supplies or equipment furnished to Tenant in or about the Premises. Tenant shall keep the Premises
and the Property free from any liens arising out of any labor, services, materials, supplies or
equipment furnished or alleged to have been furnished to Tenant. Tenant shall take all steps
permitted by law in order to avoid the imposition of any such lien. Should any such lien or
notice of such lien be filed against the Premises or the Property, Tenant shall discharge the same
by bonding or otherwise within 15 days after Tenant has notice that the lien or claim is filed
regardless of the validity of such lien or claim.

14. Landlord’s Right of Entry. Tenant shall permit Landlord and its Agents to enter the
Premises at all reasonable times following reasonable notice (except in an emergency) to inspect,
Maintain, or make Alterations to the Premises or Property, to exhibit the Premises for the purpose
of sale or financing, and, during the last 12 months of the Term, to exhibit the Premises to any
prospective tenant. Landlord will make reasonable efforts not to inconvenience Tenant in
exercising such rights, but Landlord shall not be liable for any interference with Tenant’s
occupancy resulting from Landlord’s entry.

15. Damage by Fire or Other Casualty. If the Premises or Common Areas shall be damaged or
destroyed by fire or other casualty, Tenant shall promptly notify Landlord, and Landlord, subject
to the conditions set forth in this Section, shall repair such damage and restore the Premises or
Common Areas to substantially the same condition in which they were immediately prior to such
damage or destruction, but not including the repair, restoration or replacement of the fixtures,
equipment, or Alterations installed by or on behalf of Tenant. Landlord shall notify Tenant, within
30 days after the date of the casualty, if Landlord anticipates that the restoration will take more
than 180 days from the date of the casualty to complete; in such event, either Landlord or Tenant
(unless the damage was caused by the negligence or willful misconduct of Tenant) may terminate this
Lease effective as of the date of casualty by giving notice to the other within 10 days after
Landlord’s notice, If a casualty occurs during the last 12 months of the Term, Landlord may
terminate this Lease unless Tenant has the right to extend the Term for at least 2 more years and
does so within 30 days after the date of the casualty. Moreover, Landlord may terminate this Lease
if the loss is not covered by the insurance required to be maintained by Landlord under this Lease.
Tenant will receive an abatement of Minimum Annual Rent and Annual Operating Expenses to the extent
the Premises are rendered untenantable as a result of the casualty.

16. Condemnation. If (a) all of the Premises are Taken, (b) any part of the Premises is
Taken and the remainder is insufficient in Landlord’s and Tenant’s opinion for the reasonable
operation of Tenant’s business, or (c) any of the Property is Taken, and, in Landlord’s and
Tenant’s opinion, it would be impractical or the condemnation proceeds are insufficient to restore
the remainder, then this Lease shall terminate as of the date the condemning authority takes
possession. If this Lease is not terminated, Landlord shall restore the Building to a condition as
near as reasonably possible to the condition prior to the Taking, the Minimum Annual Rent shall be
abated for the period of time all or a part of the Premises is untenantable in proportion to the
square foot area untenantable, and this Lease shall be amended appropriately. The compensation
awarded for a Taking shall belong to Landlord. Except for any relocation benefits and the value
of any furniture, furnishings, equipment and fixtures installed in the Premises at Tenant’s expense
to which Tenant may be entitled, Tenant hereby assigns all claims against the condemning authority
to Landlord, including, but not limited to, any claim relating to Tenant’s leasehold estate.

17. Quiet Enjoyment. Landlord covenants that Tenant, upon performing all of its covenants,
agreements and conditions of this Lease, shall have quiet and peaceful possession of the Premises
as against anyone claiming by or through Landlord, subject, however, to the terms of this Lease.

18. Assignment and Subletting.

     (a) Except as provided in Section (b) below, Tenant shall not enter into nor permit any
Transfer voluntarily or by operation of law, without the prior consent of Landlord, which consent
shall not be unreasonably withheld, conditioned or delayed. Without limitation, Tenant agrees that
Landlord’s consent shall not be considered unreasonably withheld if (i) the business, business
reputation or creditworthiness of the proposed transferee is unacceptable to Landlord in
Landlord’s reasonable judgment, or (ii) an Event of Default exists under this Lease. A consent to
one Transfer shall not be deemed to be a consent to any subsequent Transfer. In no event shall any
Transfer relieve Tenant from any obligation under this Lease. Landlord’s acceptance of Rent from
any person shall not be deemed to be a waiver by Landlord of any provision of this Lease or to be
a consent to any Transfer. Any Transfer not in conformity with this Section 18 shall be void at
the option of Landlord.

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     (b) Landlord’s consent shall not be required in the event of any Transfer by Tenant to an
Affiliate provided that (i) Tenant provides Landlord notice of the Transfer at least 15 days prior
to the effective date, together with current financial statements of the Affiliate certified by an
executive officer of the Affiliate, and (ii) in the case of an assignment or sublease, Tenant
delivers to Landlord an assumption agreement reasonably acceptable to Landlord executed by Tenant
and the Affiliate, together with a certificate of insurance evidencing the Affiliate’s compliance
with the insurance requirements of Tenant under this Lease.

     (c) The provisions of subsection (a) above notwithstanding, if Tenant proposes to Transfer all
of the Premises (other than to an Affiliate), Landlord may terminate this Lease, either conditioned
on execution of a new lease between Landlord and the proposed transferee or without that condition.
If Tenant proposes to enter into a Transfer of less than all of the Premises (other than to an
Affiliate), Landlord may amend this Lease to remove the portion of the Premises to be transferred,
either conditioned on execution of a new lease between Landlord and the proposed transferee or
without that condition. If this Lease is not so terminated or amended, Tenant shall pay to
Landlord, immediately upon receipt, fifty percent (50%) of the excess of (i) all compensation
received by Tenant for the Transfer over (ii) the Rent allocable to the Premises transferred.

     (d) If Tenant requests Landlord’s consent to a Transfer, Tenant shall provide Landlord, at
least 15 days prior to the proposed Transfer, current financial statements of the transferee
certified by an executive officer of the transferee, a complete copy of the proposed Transfer
documents, and any other information Landlord reasonably requests. Immediately following any
approved assignment or sublease, Tenant shall deliver to Landlord an assumption agreement
reasonably acceptable to Landlord executed by Tenant and the transferee, together with a
certificate of insurance evidencing the transferee’s compliance with the insurance requirements of
Tenant under this Lease. Tenant agrees to reimburse Landlord for reasonable administrative and
attorneys’ fees in connection with the processing and documentation of any Transfer for which
Landlord’s consent is requested. Any net profits from any Transfer, other than a Transfer to an
Affiliate or an assignment in connection with the sale of Tenant’s business, shall be shared
equally between Landlord and Tenant.

19. Subordination; Mortgagee’s Rights.

     (a) Tenant accepts this Lease subject and subordinate to any Mortgage now or in the future
affecting the Premises, provided that Tenant’s right of possession of the Premises shall not be
disturbed by the Mortgagee so long as no Event of Default exists under this Lease. This clause
shall be self-operative, but within 10 business days after written request, Tenant shall execute
and deliver any further instruments confirming the subordination of this Lease and any further
instruments of attornment that the Mortgagee may reasonably request. However, any Mortgagee
may at any time subordinate its Mortgage to this Lease, without Tenant’s consent, by giving notice
to Tenant, and this Lease shall then be deemed prior to such Mortgage without regard to their
respective dates of execution and delivery; provided that such subordination shall not affect any
Mortgagee’s rights with respect to condemnation awards, casualty insurance proceeds, intervening
liens or any right which shall arise between the recording of such Mortgage and the execution of
this Lease. Landlord hereby represents and warrants that there is no Mortgagee as of the date of
this Lease. Upon written request, Landlord shall use commercially reasonable efforts to obtain
from any future Mortgagee a non-disturbance agreement in form and substance reasonably acceptable
to Tenant.

     (b) No Mortgagee shall be (i) liable for any act or omission of a prior landlord, (ii) subject
to any rental offsets or defenses against a prior landlord, (iii) bound by any amendment of this
Lease made without its written consent, or (iv) bound by payment of Monthly Rent more than one
month in advance or liable for any other funds paid by Tenant to Landlord unless such funds
actually have been transferred to the Mortgagee by Landlord.

     (c) The provisions of Sections 15 and 16 above notwithstanding, Landlord’s obligation to
restore the Premises after a casualty or condemnation shall be subject to the consent and prior
rights of any Mortgagee.

20. Tenant’s Certificate; Financial Information. Within 10 business days after Landlord’s
written request from time to time, (a) Tenant shall execute, acknowledge and deliver to Landlord,
for the benefit of Landlord, Mortgagee, any prospective Mortgagee, and any prospective purchaser of
Landlord’s interest in the Property, an estoppel certificate in the form of attached Exhibit “C”
(or other form reasonably requested by Landlord), modified as necessary to accurately state the
facts represented, and (b) Tenant shall furnish to Landlord, Landlord’s Mortgagee, prospective
Mortgagee and/or prospective purchaser reasonably requested financial information.

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21. Surrender.

     (a) On the date on which this Lease expires or terminates, Tenant shall return possession of
the Premises to Landlord in good condition, except for ordinary wear and tear, and except for
casualty damage or other conditions that Tenant is not required to remedy under this Lease. Prior
to the expiration or termination of this Lease, Tenant shall remove from the Property all
furniture, trade fixtures, equipment, and all other personal property installed by Tenant or its
assignees or subtenants. Tenant shall not be required to remove its wiring and cabling unless
Tenant cuts or damages such wiring and cabling, in which case Tenant shall be required to remove
such wiring and cabling prior to the expiration or termination of this Lease. Tenant shall repair
any damage resulting from such removal and shall restore the Property to good order and condition,
Any of Tenant’s personal property not removed as required shall be deemed abandoned, and Landlord,
at Tenant’s expense, may remove, store, sell or otherwise dispose of such property in such manner
as Landlord may see fit and/or Landlord may retain such property or sale proceeds as its property.
If Tenant does not return possession of the Premises to Landlord in the condition required under
this Lease, Tenant shall pay Landlord all resulting damages Landlord may suffer.

     (b) If Tenant remains in possession of the Premises after the expiration or termination of
this Lease, Tenant’s occupancy of the Premises shall be that of a tenancy at will. Tenant’s
occupancy during any holdover period shall otherwise be subject to the provisions of this Lease
(unless clearly inapplicable), except that the Monthly Rent shall be one hundred fifty percent
(150%) of the Monthly Rent payable for the last full month immediately preceding the holdover. No
holdover or payment by Tenant after the expiration or termination of this Lease shall operate to
extend the Term or prevent Landlord from immediate recovery of possession of the Premises by
summary proceedings or otherwise. Any provision in this Lease to the contrary notwithstanding, any
holdover by Tenant shall constitute a default on the part of Tenant under this Lease entitling
Landlord to exercise, without obligation to provide Tenant any notice or cure period, all of the
remedies available to Landlord in the event of a Tenant default, and Tenant shall be liable for all
damages, including consequential damages, that Landlord suffers as a result of the holdover.

22. Defaults — Remedies.

     (a) It shall be an Event of Default:

     (i) If Tenant does not pay in full when due any and all Rent and, except as provided
in Section 22(c) below, Tenant fails to cure such default on or before the date that is
5 days after Landlord gives Tenant written notice of default;

     (ii) If Tenant enters into or permits any Transfer in violation of Section 18 above;

     (iii) If Tenant fails to observe and perform or otherwise breaches any other provision of
this Lease,
and, except as provided in Section 22(c) below, Tenant fails to cure the default on or before the
date that is 20 days after Landlord gives Tenant written notice of default; provided, however, if
the default cannot reasonably be cured within 20 days following Landlord’s giving of written
notice, Tenant shall be afforded additional reasonable time (not to exceed 75 days following
Landlord’s notice) to cure the default if Tenant begins to cure the default within 20 days
following Landlord’s written notice and continues diligently in good faith to completely cure the
default; or

     (iv) If Tenant becomes insolvent or makes a general assignment for the benefit of creditors
or offers a
settlement to creditors, or if a petition in bankruptcy or for reorganization or for an
arrangement with creditors under any federal or state law is filed by or against Tenant, or a bill
in equity or other proceeding for the appointment of a receiver for any of Tenant’s assets is
commenced, or if any of the real or personal property of Tenant shall be levied upon; provided
that any proceeding brought by anyone other than Landlord or Tenant under any bankruptcy,
insolvency, receivership or similar law shall not constitute an Event of Default until such
proceeding has continued unstayed for more than 90 consecutive days.

     (b) If an Event of Default occurs, Landlord shall have the following rights and remedies:

     (i) Landlord, without any obligation to do so, may elect to cure the default on behalf of
Tenant, in
which event Tenant shall reimburse Landlord upon demand for any sums paid or reasonable,
out-of-pocket costs incurred by Landlord (together with an administrative fee of 15% thereof) in
curing the default, plus interest at the Interest Rate from the respective dates of Landlord’s
incurring such costs, which sums and costs together with interest at the Interest Rate shall be
deemed additional Rent;

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     (ii) To enter and repossess the Premises, by breaking open locked doors if necessary, and
remove all
persons and all or any property, by action at law or otherwise, without being liable for
prosecution or damages. Landlord may, at Landlord’s option, make Alterations and repairs in order
to relet the Premises and relet all or any part(s) of the Premises
for Tenant’s account. Tenant
agrees to pay to Landlord on demand any deficiency (taking into account all reasonable costs
incurred by Landlord) that may arise by reason of such reletting. In the event of reletting
without termination of this Lease, Landlord may at any time thereafter elect to terminate this
Lease for such previous breach. Landlord shall use commercially reasonable efforts to relet the
Premises or any part thereof, alone or together with other premises, for such term or terms (which
may include concessions or free rent and alterations to the Premises) as Landlord may determine,
in its sole discretion, but Landlord shall not be liable for, nor shall Tenant’s obligations
hereunder be diminished by reason of, any failure by Landlord to relet the Premises or any failure
by Landlord to collect any rent due upon such reletting and Landlord shall not be required to
re-let the Premises in preference to other space that it may have vacant;

     (iii) To accelerate the whole or any part of the Rent for the balance of the Term, and
declare the same
to be immediately due and payable (such accelerated Rent amount shall be discounted using a
discount factor equal to the yield of the Treasury Note or Bill, as appropriate, having a maturity
period approximately commensurate to the remainder of the Term); and

     (iv) To terminate this Lease and the Term without any right on the part of Tenant to save
the forfeiture
by payment of any sum due or by other performance of any condition, term or covenant broken.

     (c) Any provision to the contrary in this Section 22 notwithstanding, (i) Landlord shall not
be required to give Tenant the notice and opportunity to cure provided in Section 22(a) above more
than twice in any consecutive 12-month period, and thereafter Landlord may declare an Event of
Default without affording Tenant any of the notice and cure rights provided under this Lease, and
(ii) Landlord shall not be required to give such notice prior to exercising its rights under
Section 22(b) if Tenant fails to comply with the provisions of Sections 13, 18 or 27 or in an
emergency.

     (d) No waiver by Landlord of any breach by Tenant shall be a waiver of any subsequent breach,
nor shall any forbearance by Landlord to seek a remedy for any breach by Tenant be a waiver by
Landlord of any rights and remedies with respect to such or any subsequent breach. Efforts by
Landlord to mitigate the damages caused by Tenant’s default shall not constitute a waiver of
Landlord’s right to recover damages hereunder. No right or remedy herein conferred upon or reserved
to Landlord is intended to be exclusive of any other right or remedy provided herein or by law, but
each shall be cumulative and in addition to every other right or remedy given herein or now or
hereafter existing at law or in equity. No payment by Tenant or receipt or acceptance by Landlord
of a lesser amount than the total amount due Landlord under this Lease shall be deemed to be other
than on account, nor shall any endorsement or statement on any check or payment be deemed an accord
and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord’s
right to recover the balance of Rent due, or Landlord’s right to pursue any other available remedy.

     (e) If either party commences an action against the other party arising out of or in
connection with this Lease, the prevailing party shall be entitled to have and recover from the
other party reasonable attorneys’ fees, costs of suit, investigation expenses and discovery costs,
including costs of appeal.

     (f) Landlord and Tenant waive the right to a trial by jury in any action or proceeding based
upon or related to, the subject matter of this Lease.

23.
Tenant’s Authority. Tenant represents and warrants to Landlord that: (a) Tenant is duly
formed, validly existing and in good standing under the laws of the state under which Tenant is
organized, and qualified to do business in the state in which the Property is located, and (b) the
person(s) signing this Lease are duly authorized to execute and deliver this Lease on behalf of
Tenant.

24.
Liability of Landlord. The word “Landlord” in this Lease includes the Landlord executing
this Lease as well as its successors and assigns, each of which shall have the same rights,
remedies, powers, authorities and privileges as it would have had it originally signed this Lease
as Landlord. Any such person or entity, whether or not named in this Lease, shall have no liability
under this Lease after it ceases to hold title to the Premises except for obligations already
accrued (and, as to any unapplied portion of Tenant’s Security Deposit, Landlord shall be relieved
of all liability upon transfer of such portion to its successor in interest). Tenant shall look
solely to Landlord’s successor in interest for the performance of the covenants and obligations of
the Landlord hereunder which subsequently accrue. In no event shall Landlord be liable to Tenant
for any loss of business or profits of Tenant or for consequential, punitive or special damages of
any kind. Neither Landlord nor any principal of Landlord nor any owner of the Property, whether
disclosed or undisclosed, shall have any personal liability with

9

 

respect to any of the provisions of this Lease or the Premises; Tenant shall look solely to the
equity of Landlord in the Property for the satisfaction of any claim by Tenant against Landlord.

25. Miscellaneous.

     (a) The captions in this Lease are for convenience only, are not a part of this Lease and do
not in any way define, limit, describe or amplify the terms of this Lease.

     (b) This Lease represents the entire agreement between the parties hereto and there are no
collateral or oral agreements or understandings between Landlord and Tenant with respect to the
Premises or the Property. No rights, easements or licenses are acquired in the Property or any
land adjacent to the Property by Tenant by implication or otherwise except as expressly set forth
in this Lease. This Lease shall not be modified in any manner except by an instrument in writing
executed by the parties. The masculine (or neuter) pronoun and the singular number shall include
the masculine, feminine and neuter genders and the singular and plural number. The word “including”
followed by any specific item(s) is deemed to refer to examples rather than to be words of
limitation. The word “person” includes a natural person, a partnership, a corporation, a limited
liability company, an association and any other form of business association or entity. Both
parties having participated fully and equally in the negotiation and preparation of this Lease,
this Lease shall not be more strictly construed, nor any ambiguities in this Lease resolved,
against either Landlord or Tenant,

     (c) Each covenant, agreement, obligation, term, condition or other provision contained in this
Lease shall be deemed and construed as a separate and independent covenant of the party bound by,
undertaking or making the same, not dependent on any other provision of this Lease unless otherwise
expressly provided. All of the terms and conditions set forth in this Lease shall apply throughout
the Term unless otherwise expressly set forth herein.

     (d) If any provisions of this Lease shall be declared unenforceable in any respect, such
unenforceability shall not affect any other provision of this Lease, and each such provision shall
be deemed to be modified, if possible, in such a manner as to render it enforceable and to preserve
to the extent possible the intent of the parties as set forth herein. This Lease shall be
construed and enforced in accordance with the laws of the state in which the Property is located.

     (e) This Lease shall be binding upon and inure to the benefit of Landlord and Tenant and their
respective heirs, personal representatives and permitted successors and assigns. All persons
liable for the obligations of Tenant under this Lease shall be jointly and severally liable for
such obligations.

     (f) Tenant shall not record this Lease or any memorandum without Landlord’s prior consent,

     (g) Landlord covenants that it has the right to enter into this Lease, and the person
executing this Lease is duly authorized to execute and deliver this Lease on behalf of Landlord,

     (h) Notwithstanding anything to the contrary contained in this Lease, Tenant shall not
be liable for consequential damages under this Lease, except in the event of a holdover by Tenant
as set forth in Section 21 (b).

26. Notices. Any notice, consent or other communication under this Lease shall be in
writing and addressed to Landlord or Tenant at their respective addresses specified in Section 1
above (or to such other address as either may designate by written notice to the other) with a copy
to any Mortgagee or other party designated by Landlord in writing. Each notice or other
communication shall be deemed given if sent by prepaid overnight delivery service or by certified
mail, return receipt requested, postage prepaid, and shall be deemed to have been given on the day
of actual delivery to the intended recipient or on the business day delivery is refused. The giving
of notice by Landlord’s attorneys, representatives and agents under this Section shall be deemed to
be the acts of Landlord.

27. Security Deposit. At the time of signing this Lease, Tenant shall deposit with
Landlord the Security Deposit to be retained by Landlord as cash security for the faithful
performance and observance by Tenant of the provisions of this Lease. Tenant shall not be entitled
to any interest on the Security Deposit. Landlord shall have the right to commingle the Security
Deposit with its other funds. Landlord may use the whole or any part of the Security Deposit for
the payment of any loss or damage it may suffer by reason of an Event of Default under this Lease.
If Landlord uses all or any portion of the Security Deposit as herein provided, within 10 days
after written demand, Tenant shall pay Landlord cash in an amount equal to that portion of the
Security Deposit used by Landlord, If no Event of Default then exists, the Security Deposit shall
be returned to Tenant within 30 days after the Expiration Date and surrender of the Premises to
Landlord.

10

 

28. Tenant Improvements.

     (a) Completion by Landlord, Prior to the Commencement Date, Landlord shall complete the
Premises in accordance with the plans or the description of improvements attached as Exhibit “E”
and the specifications attached as Exhibit “E”. All necessary construction shall be substantially
completed ready for use and occupancy by Tenant on the Commencement Date, subject to extension for
delays due to any cause beyond the reasonable control of Landlord or Landlord’s contractors or
suppliers. All construction shall be done in a good and workmanlike manner and shall comply at the
time of completion with all applicable laws and requirements of the governmental authorities having
jurisdiction.

29. Furniture and Furnishings. The Premises shall be leased to Tenant including all
furniture and furnishings listed on Exhibit “E” attached hereto (the “Furniture”), at no cost to
Tenant for the first 36 months following the Commencement Date. All Furniture shall remain the
property of the Landlord during the Term. Tenant shall be solely responsible for the cost of all
repairs to the Furniture occasioned by any damage thereto during the Term.

30. Early Occupancy. Tenant and its authorized agents, employees and contractors shall at
all reasonable times on or after March 1, 2005 and prior to the Commencement Date have the right,
at Tenant’s own risk, expense and responsibility, to occupy the Premises, provided that in so doing
Tenant shall not interfere with or delay the work to be performed by Landlord pursuant to Exhibit
“E” hereof. If Tenant occupies the Premises prior to the Commencement Date, Tenant shall abide by
the terms and conditions of this lease including payment of the Annual Operating Expenses and any
other additional rent or sums payable by Tenant to Landlord pursuant to this lease, as if the term
of this lease had already commenced, except that Tenant shall have no obligation to pay the Minimum
Annual Rent or any portion thereof until the Commencement Date.

31. Intentionally Deleted.

32. Option to Terminate. Tenant shall have the right and option, exercisable by giving
Landlord a minimum of six (6) months prior written notice thereof, to terminate this Lease at any
time after the twenty fourth (24th) month of the Term and by paying Landlord Two hundred fifty
thousand dollars ($250,000.00) payable within 60 days of the time of giving notice, Tenant shall
pay all Rent under the lease and abide by all of the terms and conditions of this Lease through
and including such early termination date and the effectiveness of such termination shall be
conditioned upon Tenant’s curing any monetary defaults.

33. Right of First Offer. If and when any space in the building known as 9780 Patuxent
Woods Drive (shown as “Additional Space” on Exhibit “D”) (the “Additional Space”) first becomes
available for rental during the term of this lease and provided no Event of Default then exists,
Tenant shall have the right of first offer to lease all of the Additional Space, subject to the
following:

     (a) Landlord shall notify Tenant when the Additional Space first becomes available for rental
by any party other than the tenant then in occupancy of the Additional Space, and the party having
the Right of First Offer on the Additional Space has waived its right of offer. Tenant shall have
seven (7) days following receipt of such notice within which to notify Landlord in writing that
Tenant is interested in negotiating terms for leasing such Additional Space and to have its offer
considered by Landlord prior to the leasing by Landlord of the Additional Space to a third party.
If Tenant notifies Landlord within such time period that Tenant is so interested, then Landlord and
Tenant shall have 30 days following Landlord’s receipt of such notice from Tenant within which to
negotiate mutually satisfactory terms for the leasing of the Additional Space by Tenant and to
execute an amendment to this lease incorporating such terms or a new lease for the Additional
Space.

     (b) If Tenant does not notify Landlord within such 7 days of its interest in leasing the
Additional Space or if Tenant does not execute such amendment or lease within such 30 days, if
applicable, then this right of first offer to lease the Additional Space will lapse and be of no
further force or effect and Landlord shall have the right to lease all or part of the Additional
Space to any other party at any time on any terms and conditions
acceptable to Landlord.

     (c) This right of first offer to lease the Additional Space is a one-time right if and when
the Additional Space first becomes available, is personal to Tenant and is non-transferable to any
assignee or sublessee (regardless of whether any such assignment or sublease was made with or
without Landlord’s consent) or other party.

	 	 	 	 	 
	Landlord’s approval:

	 	/s/ Lawrence D. Gildea
	 	 
	 

	 	 	 	 
	 

	 	Senior Vice President, Regional Director	 	 

34. Satellite Dish Antenna. Provided that Tenant is not in default under this lease,
Tenant shall have the right to install, maintain and repair a satellite dish antenna (the
“Antenna”) on the Property under and subject to the following conditions:

11

 

     (a) Tenant shall comply with all Laws and Requirements and shall obtain, and deliver to
Landlord written evidence of, any approval(s) required under any recorded covenants or restrictions
applicable to the Property.

     (b) Tenant shall obtain Landlord’s prior approval, which approval shall not be unreasonably
withheld, conditioned or delayed, of the location of the Antenna on the Property and of the
specifications for the Antenna. If Landlord approves installation of the Antenna on the roof of the
Building, Tenant agrees to consult with Landlord’s roofing contractor prior to installation and
strictly to comply with the roofing contractor’s recommendations and requirements. Tenant shall pay
all reasonable, out-of-pocket costs incurred by Landlord in connection with the Antenna including
without limitation all architectural, engineering, contractors’ and legal fees.

     (c) Tenant
shall comply with the provisions of Sections 9(b)(i) through (iv) of this lease.

     (d) At least 3 business days prior to installation, Tenant shall notify Landlord of the date
and time of the installation. Tenant shall install the Antenna only if Landlord is present with
Tenant at the installation.

     (e) Tenant shall maintain the Antenna in a safe, good and orderly condition. The installation,
maintenance, repair and removal of the Antenna shall be performed at Tenant’s sole expense in a
manner which will not impair the integrity of, damage or adversely affect the warranty applicable
to, the roof or any other portion of the Property.

     (f) No later than the expiration or sooner termination of the Term, at Tenant’s sole expense,
Tenant shall remove the Antenna and repair any resulting damage.

     (g) Tenant’s indemnification of Landlord pursuant to Section 8(d) of this Lease also applies
to the Antenna and Tenant’s use of any portion of the Property therefor. Without limiting the
foregoing, Tenant solely shall be responsible for any damages or injury caused by or in any way
relating to the Antenna, including, but not limited to, damage or injury caused by reason of the
Antenna collapsing or being blown from the roof or any other portion of the Property.

35. Hazardous Materials. Landlord hereby represents and warrants that, as of the date of
Landlord’s execution of this Lease, the Property does not contain any Hazardous Materials. If the
Property is contaminated with Hazardous Materials and such contamination was caused by Landlord or
Landlord’s Agents and Landlord is required by any applicable Environmental Laws to remove and/or
remediate such Hazardous Materials, then Landlord, at Landlord’s expense, shall remove and/or
remediate such Hazardous Materials in a manner and within the time periods required by such
Environmental Laws.

12

 

36. Parking. During the Term, Landlord agrees to make available to Tenant and its employees,
at no additional cost to Tenant, parking on a surface parking lot adjacent to the Building in an
amount equal to four (4) spaces for each one thousand (1,000) square feet of rentable area of the
Premises.

37. Landlord Default; Self Help. Landlord shall not be deemed to be in default under this Lease
unless Tenant gives Landlord notice specifying the default and Landlord fails to cure the default
within a reasonable period following Tenant’s notice. If Landlord fails to perform any of its
obligations under this Lease and such failure materially interferes with Tenant’s use and enjoyment
of the Premises, then, if such failure is not cured by Landlord within a reasonable period after
Landlord is first given notice of such failure by Tenant, and Landlord is not working diligently to
rectify the problem, Tenant may deliver written notice to Landlord stating that Tenant intends to
cure such default. Prior to Tenant undertaking any action to cure or remedy such event or
condition, Tenant shall first allow Landlord thirty (30) days following receipt by Landlord of such
written notice to cure or remedy the event or condition specified in Tenant’s notice; provided,
however, that if such event or condition cannot be cured within the thirty (30) day period, such
period shall be extended for a reasonable additional time, so long as Landlord commences to cure
such event or condition within the thirty (30) day period and proceeds diligently thereafter to
effect such cure. If Landlord fails to cure or remedy such event or condition within such period,
then Tenant may cure or remedy such event or condition and deliver an appropriately documented
invoice to Landlord for the reasonable and actual out-of-pocket costs and expenses incurred by
Tenant therefor. Landlord shall pay to Tenant the amount of such invoice within thirty (30) days
after delivery by Tenant. Notwithstanding anything in this Section 37 to the contrary, Tenant’s
right of self help provided herein shall only apply to Landlord’s obligations within the Premises.

     Landlord and Tenant have executed this Lease on the respective date(s) set forth below.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Landlord:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	LIBERTY PROPERTY LIMITED PARTNERSHIP	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By: Liberty Property
Trust, Sole General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	                                                                                                                                 
	 	 	 	 	 	 	 	 
	Date signed:

	 	 	 	By:
	 	/s/ Lawrence D. Gildea
	 	 
	 

	 	 	 	 	 	 	 	 
	1/28/05

	 	 	 	 	 	Name: Lawrence D. Gildea	 	 
	 

	 	 	 	 	 	Title: Senior Vice President & Regional Director	 	 
	 
	 	 	 	 	 	 	 	 
	Date signed:

	 	 	 	Tenant:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	SOURCEFIRE, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Nick Margarites

	 	 	 	By:
	 	/s/ Todd P. Headley
	 	 
	 

	 	 	 	 	 	 	 	 
	Name: Nick Margarites

	 	 	 	 	 	Name: Todd P. Headley	 	 
	Title: Controller

	 	 	 	 	 	Title: Chief Financial Officer	 	 

13

 

Rider 1 to Lease Agreement

(Multi-Tenant Industrial)

ADDITIONAL DEFINITIONS

“ADA” means the Americans With Disabilities Act of 1990 (42 U.S.C. § 1201 et seq.), as amended and
supplemented from time to time.

“Affiliate” means (i) any entity controlling, controlled by, or under common control of, Tenant,
(ii) any successor to Tenant by merger, consolidation or reorganization, and (iii) any purchaser
of all or substantially all of the assets of Tenant as a going
concern.

“Agents” of a party means such party’s employees, agents, representatives, contractors, licensees
or invitees.

“Alteration” means any addition, alteration or improvement to the Premises or
Property, as the case may be.

“Building Rules” means the rules and regulations attached to this Lease as Exhibit “B” as they may
be amended from time to time.

“Building System” means any electrical, mechanical, structural, plumbing, heating, ventilating,
air conditioning, sprinkler, life safety or security system serving the Building.

“Common Areas” means all areas and facilities as provided by Landlord from time to time for the
use or enjoyment of all tenants in the Building or Property, including, if applicable, driveways,
sidewalks, parking, loading and landscaped areas.

“Environmental Laws” means all present or future federal, state or local laws, ordinances, rules
or regulations (including the rules and regulations of the federal Environmental Protection Agency
and comparable state agency) relating to the protection of human
health or the environment.

“Event of Default” means a default described in Section 22(a) of this Lease.

“Hazardous Materials” means pollutants, contaminants, toxic or hazardous wastes or other materials
the removal of which is required or the use of which is regulated, restricted, or prohibited by
any Environmental Law.

“Interest Rate” means interest at the rate of 1% per month.

“Land” means the lot or plot of land on which the Building is situated or the portion thereof
allocated by Landlord to the Building.

“Laws” means all laws, ordinances, rules, orders, regulations, guidelines and other requirements
of federal, state or local governmental authorities or of any private association or contained in
any restrictive covenants or other declarations or agreements, now or subsequently pertaining to
the Property or the use and occupation of the Property.

“Maintain” means to provide such maintenance, repair and, to the extent necessary and appropriate,
replacement, as may be needed to keep the subject property in good condition and repair.

“Monthly Rent” means the monthly installment of Minimum Annual Rent plus the monthly installment
of estimated Annual Operating Expenses payable by Tenant under this Lease.

“Mortgage” means any mortgage, deed of trust or other lien or encumbrance on Landlord’s interest
in the Property or any portion thereof, including without limitation any ground or master lease if
Landlord’s interest is or becomes a leasehold estate.

“Mortgagee” means the holder of any Mortgage, including any ground or master lessor if Landlord’s
interest is or becomes a leasehold estate.

Page 1 of 2

 

“Operating Expenses” means all costs, charges and expenses incurred or charged by Landlord in
connection with the ownership, operation, maintenance and repair of, and services provided to, the
Property, including, but not limited to, (i) the charges at standard retail rates for any utilities
provided by Landlord pursuant to Section 7 of this Lease, (ii) the cost of insurance carried by
Landlord pursuant to Section 8 of this Lease together with the cost of any deductible paid by
Landlord in connection with an insured loss, (iii) Landlord’s cost to Maintain the Property,
subject to the provisions of Section 9 of this Lease, (iv) the cost of trash collection, (v) all
levies, taxes (including real estate taxes, sales taxes and gross receipt taxes), assessments,
liens, license and permit fees, together with the reasonable cost of contesting any of the
foregoing, which are applicable to the Term, and which are imposed by any authority or under any
Law, or pursuant to any recorded covenants or agreements, upon or with respect to the Property, or
any improvements thereto, or directly upon this Lease or the Rent or upon amounts payable by any
subtenants or other occupants of the Premises, or against Landlord because of Landlord’s estate or
interest in the Property, (vi) the annual amortization (over their estimated economic useful life
or payback period, whichever is shorter) of the costs (including reasonable financing charges) of
capital improvements or replacements, (vii) a management and administrative fee not to exceed 5% of
gross revenues payable to Landlord, and (viii) property management expenses including, but not
limited to salaries of personnel, vehicle maintenance and fuel, uniforms, communication devices and
similar expenses, which expenses are reflected on Landlord’s statement of Operating Expenses as a
“tenant service charge.” The foregoing notwithstanding, Operating Expenses will not include: (i)
depreciation on the Building; (ii) financing and refinancing costs (except as provided above),
interest on debt or amortization payments on any mortgage, or rental under any ground or underlying
lease; (iii) leasing commissions, advertising expenses, tenant improvements or other costs directly
related to the leasing of the Property; (iv) income, excess profits or corporate capital stock tax
imposed or assessed upon Landlord, unless such tax or any similar tax is levied or assessed in lieu
of all or any part of any taxes includable in Operating Expenses above; (v) depreciation for
capital improvements, provided that Operating Expenses shall include the cost of capital
improvements made to comply with laws enacted after the date of this Lease and improvements made
with the reasonable anticipation of reducing Operating Expenses, which costs will be amortized over
their useful life with an amortization charge; (vi) the costs of special services and utilities
separately charged to particular tenants of the Building; (vii) expenses for which Landlord
received insurance proceeds; (viii) wages, salaries and other compensation paid to employees of
Landlord or its managing agent above the level of senior property manager; (ix) attorneys’ fees and
accounting fees, if such fees are incurred in connection with negotiations or disputes with tenants
of the Building; (x) costs of administering the affairs of the ownership entity which are unrelated
to the maintenance, management and ownership of the Building; (xi) reserves; (xii) charitable or
political contributions; (xiii) rental payments for office space for management personnel; (xiv)
tap fees and other one-time lump sum sewer or water connection fees payable in connection with the
initial construction of the Building or leasehold improvements for any tenant; (xv) advertising and
promotional expenses incurred in connection with the leasing of the Building; (xvi) costs for
utilities or services provided to Tenant or to any other tenant of the Building for the above
standard or after-hours service that are separately charged to Tenant or to such other tenant;
(xvii) costs incurred by Landlord for the original construction and development of the Building;
(xviii) the cost of tenant improvements, concessions and allowances provided to tenants of the
Building, including the cost of preparing any space in the Building for occupancy by any tenant
and/or for altering, renovating, repainting, decorating, planning and designing spaces for any
tenant in the Building in connection with the renewal of its lease and/or costs of preparing or
renovating any vacant space for lease in the Building; (xix) rental payments made under any ground
lease, except to the extent such rental payments represent payment of Real Estate Taxes; (xx) costs
and expenses incurred by Landlord in connection with any insured damage, casualty or condemnation
of all or a portion of the Building; and (xxi) sums paid by Landlord for any fines, late charges,
penalties or interest for any late payment. If Landlord elects to prepay real estate taxes during
any discount period, Landlord shall be entitled to the benefit of any such prepayment. Landlord
shall have the right to directly perform (by itself or through an affiliate) any services provided
under this Lease provided that the Landlord’s charges included in Operating Expenses for any such
services shall not exceed competitive market rates for comparable
services.

“Property” means the Land, the Building, the Common Areas, and all appurtenances to them.

“Rent” means the Minimum Annual Rent, Annual Operating Expenses and any other amounts payable by
Tenant to Landlord under this Lease.

“Taken” or “Taking” means acquisition by a public authority having the power of eminent domain by
condemnation or conveyance in lieu of condemnation.

“Tenant’s Share” means the percentage obtained by dividing the rentable square feet of the
Premises by the rentable square feet of the Building, as set forth in Section 1 of this Lease.

‘Transfer” means (i) any assignment, transfer, pledge or other encumbrance of all or a portion of
Tenant’s interest in this Lease, (ii) any sublease, license or concession of all or a portion of
Tenant’s interest in the Premises, or (iii) any transfer of a controlling interest in Tenant
unless Tenant’s shares are traded on a nationally recognized stock exchange.

Page 2 of 2

 

 

 

EXHIBIT “B”

BUILDING RULES

     1. Any sidewalks, lobbies, passages and stairways shall not be obstructed or used by Tenant
for any purpose other than ingress and egress from and to the Premises. Landlord shall in all cases
retain the right to control or prevent access by all persons whose presence, in the reasonable
judgment of Landlord, shall be prejudicial to the safety, peace or character of the Property.

     2. The toilet rooms, toilets, urinals, sinks, faucets, plumbing or other service apparatus of
any kind shall not be used for any purposes other than those for which they were installed, and no
sweepings, rubbish, rags, ashes, chemicals or other refuse or injurious substances shall be placed
therein or used in connection therewith or left in any lobbies, passages, elevators or stairways.

     3. Tenant shall not impair in any way the fire safety system and shall comply with all safety,
fire protection and evacuation procedures and regulations established by Landlord or any
governmental agency. No person shall go on the roof without Landlord’s prior written permission.

     4. Skylights, windows, doors and transoms shall not be covered or obstructed by Tenant, and
Tenant shall not install any window covering which would affect the exterior appearance of the
Building, except as approved in writing by Landlord, which approval shall not be unreasonably
withheld, conditioned or delayed. Tenant shall not remove, without Landlord’s prior written
consent, which consent shall not be unreasonably withheld, conditioned or delayed, any shades,
blinds or curtains in the Premises.

     5. Without Landlord’s prior written consent, Tenant shall not hang, install, mount, suspend or
attach anything from or to any sprinkler, plumbing, utility or other lines. If Tenant hangs,
installs, mounts, suspends or attaches anything from or to any doors, windows, walls, floors or
ceilings, Tenant shall spackle and sand all holes and repair any damage caused thereby or by the
removal thereof at or prior to the expiration or termination of the Lease. If Tenant elects to seal
the floor, Tenant shall seal the entire unfinished floor area within the Premises. If Tenant elects
to paint all or any portion of the Premises any color other than white or off-white, Tenant, prior
to the termination of the Lease, shall restore all or such portion(s) of the Premises to the
painted or unpainted condition thereof as of the Commencement Date. If Tenant submits written
notice to Landlord that Tenant intends to paint all or any portion of the Premises any color other
man white or off-white, Landlord shall promptly notify Tenant whether Tenant will be required to
restore the Premises to the condition as of the Commencement Date.

     6. Tenant shall not change any locks nor place additional locks upon any doors.

     7. Tenant shall not use nor keep in the Building any matter having an offensive odor, nor
explosive or highly flammable material, nor shall any animals other than handicap assistance dogs
in the company of their masters be brought into or kept in or about the Premises.

     8. If Tenant desires to introduce electrical, signaling, telegraphic, telephonic, protective
alarm or other wires, apparatus or devices, Landlord shall direct where and how the same are to be
placed, and except as so directed, no installation boring or cutting shall be permitted. Landlord
shall have the right to prevent and to cut off the transmission of excessive or dangerous current
of electricity or annoyances into or through the Building or the Premises and to require the
changing of wiring connections or layout at Tenant’s expense, to the extent that Landlord may deem
necessary, and further to require compliance with such reasonable rules as Landlord may establish
relating thereto, and in the event of non-compliance with the requirements or rules, Landlord shall
have the right immediately to cut wiring or to do what it considers necessary to remove the danger,
annoyance or electrical interference with apparatus in any part of the Building. All wires
installed by Tenant must be clearly tagged at the distributing boards and junction boxes and
elsewhere where required by Landlord, with the number of the office to which said wires lead, and
the purpose for which the wires respectively are used, together with the name of the concern, if
any, operating same.

     9. Tenant shall not place weights anywhere beyond the safe carrying capacity of the Building.

     10. The use of rooms as sleeping quarters is strictly prohibited at all times.

B-1

 

     11. Tenant shall have the right, at Tenant’s sole risk and responsibility, to use only
Tenant’s Share of the parking spaces at the Property as reasonably determined by Landlord. Tenant
shall comply with all parking regulations promulgated by Landlord from time to time for the orderly
use of the vehicle parking areas, including without limitation the following: Parking shall be
limited to automobiles, passenger or equivalent vans, motorcycles,
light four wheel pickup trucks
and (in designated areas) bicycles. No vehicles shall be left in the parking lot overnight without
Landlord’s prior written approval. Parked vehicles shall not be used for vending or any other
business or other activity while parked in the parking areas. Vehicles shall be parked only in
striped parking spaces, except for loading and unloading, which shall occur solely in zones marked
for such purpose, and be so conducted as to not unreasonably interfere with traffic flow within the
Property or with loading and unloading areas of other tenants. Employee and tenant vehicles shall
not be parked in spaces marked for visitor parking or other specific use. All vehicles entering or
parking in the parking areas shall do so at owner’s sole risk and Landlord assumes no
responsibility for any damage, destruction, vandalism or theft. Tenant shall cooperate with
Landlord in any measures implemented by Landlord to control abuse of the parking areas, including
without limitation access control programs, tenant and guest vehicle identification programs, and
validated parking programs, provided that no such validated parking program shall result in Tenant
being charged for spaces to which it has a right to free use under its Lease. Each vehicle owner
shall promptly respond to any sounding vehicle alarm or horn, and failure to do so may result in
temporary or permanent exclusion of such vehicle from the parking areas. Any vehicle which
violates the parking regulations may be cited, towed at the expense of the owner, temporarily or
permanently excluded from the parking areas, or subject to other lawful consequence.

     12. If Landlord designates the Building as a non-smoking building, Tenant and its Agents shall
not smoke in the Building nor at the Building entrances and exits.

     13. If at Tenant’s request, Landlord consents to Tenant having a dumpster at the Property,
Tenant shall locate the dumpster in the area designated by Landlord and shall keep and maintain the
dumpster clean and painted with lids and doors in good working order and, at Landlord’s request,
locked.

     14. Tenant shall provide Landlord with a written identification of any vendors engaged by
Tenant to perform services for Tenant at the Premises (examples: cleaners, security
guards/monitors, trash haulers, telecommunications
installers/maintenance).

     15. Tenant
shall comply with any move-in/move-out rules provided by Landlord.

     16. Tenant shall cause all of Tenant’s Agents to comply with these Building Rules.

     17. Landlord
reserves the right to rescind, suspend or modify any rules or regulations and to
make such other rules and regulations as, in Landlord’s reasonable judgment, may from time to time
be needed for the safety, care, maintenance, operation and
cleanliness of the Property. Notice of
any action by Landlord referred to in this section, given to Tenant, shall have the same force and
effect as if originally made a part of the foregoing Lease. New rules or regulations will not,
however, be unreasonably inconsistent with the proper and rightful enjoyment of the Premises by
Tenant under the Lease.

     18. These Building Rules are not intended to give Tenant any rights or claims in the event
that Landlord does not enforce any of them against any other tenants or if Landlord does not have
the right to enforce them against any other tenants and such nonenforcement will not constitute a
waiver as to Tenant.

B-2

 

EXHIBIT “C”

TENANT ESTOPPEL CERTIFICATE

     Please refer to the documents described in Schedule 1 hereto, (the “Lease Documents”)
including the “Lease” therein described; all defined terms in this Certificate shall have the same
meanings as set forth in the Lease unless otherwise expressly set forth herein. The undersigned
Tenant hereby certifies that it is the tenant under the Lease. Tenant hereby further acknowledges
that it has been advised that the Lease may be collaterally assigned in connection with a proposed
financing secured by the Property and/or may be assigned in connection with a sale of the Property
and certifies both to Landlord and to any and all prospective mortgagees and purchasers of the
Property, including any trustee on behalf of any holders of notes or other similar instruments, any
holders from time to time of such notes or other instruments, and their respective successors and
assigns (the “Beneficiaries”) that as of the date hereof:

     1. The information set forth in attached Schedule 1 is true and correct.

     2. Tenant is in occupancy of the Premises and the Lease is in full force and effect, and,
except by such writings as are identified on Schedule 1, has not been modified, assigned,
supplemented or amended since its original execution, nor are there any other agreements between
Landlord and Tenant concerning the Premises, whether oral or
written.

     3. All conditions and agreements under the Lease to be satisfied or performed by Landlord have
been satisfied and performed.

     4. Tenant is not in default under the Lease Documents, Tenant has not received any notice
of default under the Lease Documents, and, to Tenant’s knowledge, there are no events which have
occurred that, with the giving of notice and/or the passage of time, would result in a default by
Tenant under the Lease Documents.

     5. Tenant has not paid any Rent due under the Lease more than 30 days in advance of the date
due under the Lease and Tenant has no rights of setoff, counterclaim, concession or other rights of
diminution of any Rent due and payable under the Lease except as set forth in Schedule 1.

     6. To Tenant’s knowledge, there are no uncured defaults on the part of Landlord under the
Lease Documents, Tenant has not sent any notice of default under the Lease Documents to Landlord,
and there are no events which have occurred that, with the giving of notice and/or the passage of
time, would result in a default by Landlord thereunder, and that at the present time Tenant has no
claim against Landlord under the Lease Documents.

     7. Except as expressly set forth in Part G of Schedule 1, there are no provisions for any, and
Tenant has no, options with respect to the Premises or all or any portion of the Property.

     8. No action, voluntary or involuntary, is pending against Tenant under federal or state
bankruptcy or insolvency law.

     9. The undersigned has the authority to execute and deliver this Certificate on behalf of
Tenant and acknowledges that all Beneficiaries will rely upon this Certificate in purchasing the
Property or extending credit to Landlord or its successors in interest.

     10. This Certificate shall be binding upon the successors, assigns and representatives of
Tenant and any party claiming through or under Tenant and shall inure to the benefit of all
Beneficiaries.

     IN
WITNESS WHEREOF, Tenant has executed this Certificate this ___ day of ___,
2___.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Name of Tenant	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

C-1

 

SCHEDULE 1 TO TENANT ESTOPPEL CERTIFICATE

Lease
Documents, Lease Terms and Current Status

	A.	 	Date of Lease:
	 
	B.	 	Parties:

	 	1.	 	Landlord:

	 
	 	2.	 	Tenant:

	C.	 	Premises:
	 
	D.	 	Modifications, Assignments, Supplements or Amendments to Lease:
	 
	E.	 	Commencement Date:
	 
	F.	 	Expiration of Current Term:
	 
	G.	 	Option Rights:
	 
	H.	 	Security Deposit Paid to Landlord: $
	 
	I.	 	Current Minimum Annual Rent: $
	 
	J.	 	Current Annual Operating Expenses: $
	 
	K.	 	Current Total Rent: $
	 
	L.	 	Square Feet Demised:

C-2

 

Exhibit “E”

1. Landlord shall paint the existing painted walls and door frames (excluding utility rooms
and closets) and carpet the main atrium area of the building (with new carpet), which is currently
tiled. All existing carpet and VCT throughout the premises will be scrubbed and steam cleaned.

2. Landlord will relocate and rebuild, at Landlord’s sole cost and expense, approximately 52 open
office work stations currently housed at 9780 Patuxent Woods Drive, for use by Tenant during the
Term (as the same may be extended) at no additional rent. The locations of the work stations shall
be determined by Tenant. Tenant will have the option to relocate and use during the Term, at no
additional rent, the additional furniture from 9780 Patuxent Woods Drive that is secured to the
walls in that building at its sole expense.

3. For a 36 month period, Landlord shall provide at no cost to Tenant furniture for the executive
area as follows:

	-	 	8 executive desks
	 
	-	 	8 credenzas
	 
	-	 	2 round 48” conference tables
	 
	-	 	24 chairs selected from the auditorium area in 9780 Patuxent Woods Drive

The desks, credenzas and conference tables described above are more particularly described
on Exhibit E-1 attached hereto.

4. Landlord shall install a high grade carpet over the brick flooring prior to lease
commencement.

5. Building mechanical, electrical and plumbing systems, Bathrooms and fixtures, roof, plate
glass, and doors will be in good working order prior to lease commencement.

6. Landlord to improve the exterior appearance of the building prior to lease commencement (i.e.
Remove overgrown tree)

7. All useable data/telco wiring to remain along with patch panels and racks, if possible.
Tenant acknowledges that Coca Cola Enterprises controls the wiring. The computer rooms shall
remain intact “as-is” “where-is” if possible — again, Coca Cola Enterprises controls this. The
generator shall remain, subject to approval by Coca Cola Enterprises, who installed this
generator and is entitled to take it, Any damage incurred due to previous tenant’s vacating
shall be repaired prior to lease commencement.

8. Burned out bulbs will be replaced prior to lease commencement.

C-3

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