Document:

exv4w4

 

Exhibit
4.4

Nonstatutory Stock Option Grant Agreement

Under The

Sourcefire, Inc. 2002 Stock Incentive Plan

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

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

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

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

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

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

 

 

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

     2. Vesting.

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

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

     3. Exercise of Options.

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

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

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

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

 

 

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

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

     4. Termination of Employment or Service.

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

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

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

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

 

 

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

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

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

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

 

 

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

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

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

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

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

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

     11. Adjustments for Corporate Transactions and Other Events.

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

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

 

 

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

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

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

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

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

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

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

 

 

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

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

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

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

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

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

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

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

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

 

 

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

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

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

	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	SOURCEFIRE, INC., a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Todd P. Headley	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 

	 	 	 	 	 	 	 
	 	 	OPTIONEE:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Signature
	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

 

 

EXHIBIT
A- (NUMBER)

sourcefire, inc.

 stock option certificate

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

Vesting Start Date: (Vesting Date)

Grant
Date: (Grant Date)

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

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

	 	(a)	 	25% of the Options vest and become exercisable on the first anniversary of the
Optionee’s Vesting Start Date (the “Initial Vesting Date”), and
	 
	 	(b)	 	2.083% of the Options vest and become exercisable on the date one month after the
Initial Vesting Date and on such date every month thereafter, through the fourth anniversary of the
Vesting Start Date.
	 
	 	 	 	The extent to which the Options are vested and exercisable as of a particular vesting date is
rounded down to the nearest whole share. However, vesting is rounded up to the nearest whole share
on the fourth anniversary of the Grant Date.
	 
	 	 	 	IN WITNESS WHEREOF, the Company has caused this Certificate to be executed by its duly authorized
officer on (Agreement Date).

	 	 	 	 	 	 	 
	 

	 	 	 	SOURCEFIRE, INC.
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Todd P. Headley, CFO	 	 

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

	 	 	 	 	 	 	 
	 	 	OPTIONEE	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	(Name)	 	 	 	 
	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

EXERCISE FORM

Administrator of 2002 Stock Incentive Plan

c/o Office of the Corporate Secretary

Sourcefire, Inc.

9212 Berger Road, Suite 200

Columbia, Maryland 21046

Gentlemen:

     I
hereby exercise the Options granted to me on (Grant Date) by Sourcefire, Inc. (the “Company”), subject to all the terms and provisions of the applicable grant agreement and of the
Sourcefire, Inc. 2002 Stock Incentive Plan (the “Plan”), and notify you of my desire to purchase
                    shares
of Common Stock of the Company at a price of (Price) per share pursuant to
the exercise of said Options.

     This will confirm my understanding with respect to the shares to be issued to me by reason of this
exercise of the Options (the shares to be issued pursuant hereto shall be collectively referred to
hereinafter as the “Shares”) as follows:

          (a) I am purchasing the Shares for my own account for investment only, and not with a view
to, or for sale in connection with, any distribution of the Shares in violation of the Securities
Act of 1933 (the “Securities Act”), or any rule or regulation under the Securities Act.

          (b) I understand that the Shares are being issued without registration under the Securities
Act, in reliance upon one or more exemptions contained in the Securities Act, and such reliance is
based in part on the above representation: I also understand that the Company is not obligated to
comply with the registration requirements of the Securities Act or with the requirements for an
exemption under Regulation A under the Securities Act for my benefit.

          (c) I have had such opportunity as I deemed adequate to obtain from
representatives of the Company such information as is necessary to permit me to evaluate the merits
and risks of my investment in the Company.

          (d) I have sufficient experience in business, financial and investment matters to be able
to evaluate the risks involved in the purchase of the Shares and to make an informed investment
decision with respect to such purchase.

          (e) I can afford a complete loss of the value of the Shares and am able to bear the
economic risk of holding such Shares for an indefinite period.

          (f) I understand that (i) the Shares have not been registered under the Securities Act and
are “restricted securities” within the meaning of Rule 144 under the Securities Act; (ii) the
Shares cannot be sold, transferred or otherwise disposed of unless they are subsequently registered
under the Securities Act or an exemption from registration is then available and, therefore, they
may need to be held indefinitely; and (iii) there is now no registration statement on file with the
Securities and Exchange Commission with respect to any stock of the Company and the Company has no
obligation or current intention to register the Shares under the Securities Act. As a condition to
any transfer of the Shares, I understand that the Company may require an opinion of counsel
satisfactory to the Company to the effect that such transfer does not require registration under
the Securities Act or any state securities law.

          (g) I understand that the certificates for the Shares to be issued to me will bear a legend
substantially as follows:

 

 

The shares of stock represented by this certificate are subject to restrictions on transfer,
an option to purchase and a market stand-off agreement set forth in a certain Stock Restriction
Agreement between the corporation and the registered owner of this certificate (or his predecessor
in interest), and no transfer of such, shares may be made without compliance with that Agreement. A
copy of that Agreement is available for inspection at the office of the corporation upon
appropriate request and without charge.

The securities represented by this stock certificate have not been registered under the Securities
Act of 1933 (the “Act”) or applicable state securities laws (the “State Acts”), and shall not be
sold, pledged, hypothecated, donated, or otherwise transferred (whether or not for consideration)
by the holder except upon the issuance to the corporation of a favorable opinion of its counsel
and/or submission to the corporation of such other evidence as may be satisfactory to counsel for
the corporation, to the effect that any such transfer shall not be in violation of the Act and the
State Acts.

Appropriate stop transfer instructions will be issued by the Company to its transfer agent.

          (h) I am a party to a grant agreement and a stock restriction agreement with the Company, pursuant
to which I have agreed to certain restrictions on the transferability of the Shares and other
matters relating thereto.

Total Amount Enclosed: $                    

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Name	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	Received by SOURCEFIRE, INC. on	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	,200	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

 

 

Exhibit A

STOCK RESTRICTION AGREEMENT

     THIS
STOCK RESTRICTION AGREEMENT (the “Agreement”) is
made as of the ___ day of
                                        ,
___,
by and between SOURCEFIRE, INC., a Delaware corporation (the
“Company”),
and
                                         (the
“Shareholder”).

     For valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

     1. Option Shares. The Shareholder was granted the right to
purchase up to
                    
shares (the “Option Shares”) of common stock of the Company, par value $0.001 per
share (the “Common Stock”), pursuant to stock options awarded under the Company’s 2002 Stock
Incentive Plan (the “Plan”) on
                                        , ___ subject to the terms and conditions of the
applicable option grant agreement evidencing such award (the
“Option Grant Agreement”). The
Shareholder has purchased on even date herewith,
                     Option Shares (the “Shares”). The
Shareholder agrees that the Shares shall be subject to the terms, conditions and restrictions set
forth in this Agreement and the Option Grant Agreement. The Shareholder further agrees that any
additional Option Shares purchased by the Shareholder shall be subject to the terms, conditions
and restrictions set forth in this Agreement, and such shares shall be deemed Shares for all
purposes hereunder. Upon receipt of payment by the Company for the Shares, the Company shall either
issue and deliver to the Shareholder one or more certificates in the name of the Shareholder for
that number of Shares purchased by the Shareholder, hold such Share certificates in escrow until
the underlying Shares may be transferred freely without restriction under this Agreement, or
provide for uncertificated, book entry issuance of those Shares.

          2. Restrictions on Transfer.

          (a) Transfers Prohibited. At any time prior to the date of the closing of the first
public offering of securities of the Company that is effected pursuant to a registration statement
filed with, and declared effective by, the Securities and Exchange Commission under the Securities
Act of 1933 (the “Securities Act”) or the exchange of the Shares for shares of an entity that are
so registered, the Shareholder may not sell or otherwise transfer or assign for cash, cash
equivalents or any other form of consideration, including a promissory note, all or any part of his
or her Shares, except that the Shares may be transferred to the Company in pledge as security for
any purchase-money indebtedness incurred by the Shareholder in connection with the acquisition of
the Shares. Any attempted transfer of any Shares in violation of the provisions of this Agreement
shall be null and void.

          (b) Exempt Family Transactions. Notwithstanding the provisions of Section 2(a), the
Shareholder may transfer any or all of the Shareholder’s Shares, either during the Shareholder’s
lifetime or on death by will or the laws of descent and distribution, to one or more members of the
Shareholder’s immediate family, to a trust for the exclusive benefit of the Shareholder or such
immediate family members, to any other entity owned exclusively by the Shareholder or such
immediate family members, or to any combination of the foregoing (each, a “Permitted Transferee”);
provided, however, that the Shareholder may not make any transfers pursuant to any divorce
or separation proceedings or settlements. “Immediate family member” shall mean spouse, children,
grandchildren, parents or siblings of the Shareholder, including in each case in-laws and adoptive
relations.

 

 

          (c) Registration Statement Transfer. The Shareholder may transfer the
Shares pursuant to a registration statement filed by the Company with the Securities and Exchange
Commission with respect to the Shares.

          (d) Conditions to Transfer. Notwithstanding anything to the contrary contained
elsewhere in this Section 2, except with respect to a transfer pursuant to Section 2(c), any
Permitted Transferee of the Shareholder shall receive and hold such stock subject to the provisions
of this Agreement, and, as a condition of such transfer, shall deliver to the Company a written
instrument confirming that such transferee shall be bound by all of the terms and conditions of
this Agreement. There shall be no subsequent transfer of such stock except in accordance with this
Section 2.

          (e) Termination of Restrictions on Transfer. The foregoing restrictions on transfer
in this Section 2 shall terminate upon the closing of the first public offering of securities of
the Company that is effected pursuant to a registration statement filed with, and declared
effective by, the Securities and Exchange Commission under the Securities Act or the exchange of
the Shares for shares of an entity that are so registered.

     3. Effect of Prohibited Transfer. The Company shall not be required to (a)
transfer on its books any of the Shares that have been sold or transferred in violation of any of
the provisions set forth in this Agreement, or (b) treat as owner of such Shares or to pay
dividends or other distributions to any transferee to whom any such Shares shall have been so sold
or transferred.

     4. Drag-Along Right. Notwithstanding anything contained herein to the contrary,
if at any time any shareholder of the Company, or group of shareholders, owning a majority or more
of the voting capital stock of the Company (hereinafter, collectively the “Transferring
Shareholders”) proposes to enter into any transaction involving (a) a sale of more than 50% of the
outstanding voting capital stock of the Company in a non-public sale or (b) any merger, share
exchange, consolidation or other reorganization or business combination of the Company immediately
after which a majority of the directors of the surviving entity is not comprised of persons who
were directors of the Company immediately prior to such transaction or after which persons who hold
a majority of the voting capital stock of the surviving entity are not persons who held voting
capital stock of the Company immediately prior to such transaction (a “Change-in-Control
Transaction”), the Company may require the Shareholder to participate in such Change-in-Control
Transaction with respect to all or such number of the Shareholder’s Shares as the Company may
specify in its discretion, by giving the Shareholder written notice thereof at least ten days in
advance of the date of the transaction or the date that tender is required, as the case may be.
Upon receipt of such notice, the Shareholder shall tender the specified number of Shares, at the
same price and upon the same terms and conditions applicable to the Transferring Shareholders in
the transaction or, in the discretion of the acquirer or successor to the Company, upon payment of
the purchase price to the Shareholder in immediately available funds. In addition, if at any time
the Company and/or any Transferring Shareholders propose to enter into any such Change-in-Control
Transaction, the Company may require the Shareholder to vote in favor of such transaction, where
approval of the shareholders is required by law or otherwise sought, by giving the Shareholder
notice thereof within the time prescribed by law and the Company’s Certificate of Incorporation and
By-Laws for giving notice of a meeting of shareholders called for the purpose of approving such
transaction. If the Company requires such vote, the Shareholder agrees that he or she will, if
requested, deliver his or her proxy to the person designated by the Company to vote his or her
Shares in favor of such Change-in-Control Transaction.

     5. Restrictive Legend. All certificates representing Shares shall have affixed
thereto a legend in substantially the following form, in addition to any other legends that may be
required under federal or state securities laws:

-2-

 

The shares of stock represented by this certificate are subject to restrictions on transfer, an
option to purchase and a market stand-off agreement set forth in a certain Stock Restriction
Agreement between the corporation and the registered owner of this certificate (or his predecessor
in interest), and no transfer of such shares may be made without compliance with that Agreement. A
copy of that
Agreement is available for inspection at the office of the corporation upon appropriate request and
without charge.

The securities represented by this stock certificate have not been registered under the Securities
Act of 1933 (the “Act”) or applicable state securities laws (the “State Acts”), and shall not be
sold, pledged, hypothecated, donated, or otherwise transferred (whether or not for consideration)
by the holder except upon the issuance to the corporation of a favorable opinion of its counsel
and/or submission to the corporation of such other evidence as may be satisfactory to counsel for
the corporation, to the effect that any such transfer shall not be in violation of the Act and the
State Acts.

     6. Investment Representations. The Shareholder represents, warrants and covenants
as follows:

          (a) Shareholder is purchasing the Shares for the Shareholder’s own account for investment
only, and not with a view to, or for sale in connection with, any distribution of the Shares in
violation of the Securities Act, or any rule or regulation under the Securities Act.

          (b) Shareholder understands that the Shares are being issued without registration under the
Securities Act, in reliance upon one or more exemptions contained in the Securities Act, and such
reliance is based in. part on the above representation. The Shareholder also understands that the
Company is not obligated to comply with the registration requirements of the Securities Act or with
the requirements for an exemption under Regulation A under the Securities Act for the Shareholder’s
benefit.

          (c) Shareholder has had such opportunity as the Shareholder deemed adequate to obtain from
representatives of the Company such information as is necessary to permit the Shareholder to
evaluate the merits and risks of the Shareholder’s investment in the Company.

          (d) Shareholder has sufficient experience in business, financial and investment matters to
be able to evaluate the risks involved in the purchase of the Shares and to make an informed
investment decision with respect to such purchase.

          (e) Shareholder can afford a complete loss of the value of the Shares and is able to bear
the economic risk of holding such Shares for an indefinite period.

          (f) Shareholder understands that (i) the Shares have not been registered under the
Securities Act and are “restricted securities” within the meaning of Rule 144 under the Securities
Act; (ii) the Shares cannot be sold, transferred or otherwise disposed of unless they are
subsequently registered under the Securities Act or an exemption from registration is then
available and, therefore, they may need to be held indefinitely; and (iii) there is now no
registration statement on file with the Securities and Exchange Commission with respect to any
stock of the Company and the Company has no obligation or current intention to register the Shares
under the Securities Act. As a condition to any transfer of the Shares, the Shareholder understands
that the Company may require an opinion of counsel satisfactory to the Company to the effect that
such transfer does not require registration under the Securities Act or any state securities law.

-3-

 

     7. Adjustments for Stock Splits, Stock Dividends, etc.

          (a) If from time to time there is any spin-off, stock split-up, stock dividend, stock
distribution or other reclassification of the Common Stock of the Company, any and all new,
substituted or additional securities to which the Shareholder is entitled by reason of his or her
ownership of the Shares shall be immediately subject to the restrictions on transfer and other
provisions of this Agreement in the same manner and to the same extent as the Shares.

          (b) If the Shares are converted into or exchanged for, or shareholders of the Company
receive by reason of any distribution in total or partial liquidation, securities of another
corporation, or other property (including cash), pursuant to any merger of the Company or
acquisition of its assets, then the rights of the Company under this Agreement shall inure to the
benefit of the Company’s successor, and this Agreement shall apply to the securities or other
property received upon such conversion, exchange or distribution in the same manner and to the same
extent as the Shares.

     8. Market Stand-Off. Following the effective date of a registration statement
of the Company filed under the Securities Act, the Shareholder, for the duration specified by and
to the extent requested by the Company and an underwriter of Common Stock or other securities of
the Company, shall not offer, sell, contract to sell, pledge or otherwise dispose of, directly or
indirectly, any equity securities of the Company, or any securities convertible into or
exchangeable or exercisable for such securities, enter into a transaction which would have the same
effect, or enter into any swap, hedge or other arrangement that transfers, in whole or in part, any
of the economic consequences of ownership of such securities, whether any such aforementioned
transaction is to be settled by delivery of such securities or other securities, in cash or
otherwise, or publicly disclose the intention to make any such offer, sale, pledge or disposition,
or to enter into any such transaction, swap, hedge or other arrangement, in each case during the
seven days prior to and the 180 days after the effectiveness of any underwritten offering of the
Company’s equity securities (or such longer or shorter period as may be requested in writing by the
managing underwriter and agreed to in writing by the Company) (the
“Market Stand-Off Period”),
except as part of such underwritten registration if otherwise permitted. In addition, the
Shareholder agrees to execute any further letters, agreements and/or other documents requested by
the Company or its underwriters which are consistent with the terms of this Section 8. The Company
may impose stop-transfer instructions with respect to securities subject to the foregoing
restrictions until the end of such Market Stand-Off Period.

     9. Withholding Taxes. The Shareholder acknowledges and agrees that the Company
has the right to deduct from payments of any kind otherwise due to the Shareholder any federal,
state or local taxes of any kind required by law to be withheld with respect to the purchase, sale
or vesting of the Shares by the Shareholder.

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

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

     12. Binding Effect. This Agreement shall be binding upon and inure to the benefit
of the Company and the Shareholder and their respective heirs, executors,
administrators, legal

-4-

 

representatives, successors and assigns, subject to the terms, conditions and restrictions set
forth in this Agreement. The Company may assign its rights under this Agreement to a third party,
provided that such assignee agrees to be bound by all of the Company’s obligations under this
Agreement.

     13. No Rights To Employment. Nothing contained in this Agreement shall be
construed as giving the Shareholder any right to be retained, in any position, as an employee or
other service provider of the Company for any period of time or to restrict the Company’s right to
terminate the Shareholder’s employment or other service relationship at any time with or without
cause or notice.

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

     15. Pronouns. Whenever the context may require, any pronouns used in this
Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular
form of nouns and pronouns shall include the plural, and vice versa.

     16. Shareholder. Whenever the word “Shareholder” is used in any provision of this
Agreement under circumstances where the provision should logically be construed, as determined by
the Board of Directors of the Company, to apply to the Shareholder’s estate, personal
representative, beneficiary to whom the Shares may be transferred by will or by the laws of descent
and distribution, transferees, successors or assignees, the word “Shareholder” shall be deemed to
include such persons.

     17. Entire Agreement. This Agreement constitutes the entire agreement between the
parties, and supersedes all prior agreements and understandings, relating to the subject matter of
this Agreement.

     18. Amendment. This Agreement may be amended or modified only by a written
instrument executed by both the Company and the Shareholder.

     19. Governing Law. This Agreement shall be construed, interpreted and enforced in
accordance with the laws of the State of Maryland, without regard to its provisions concerning the
applicability of laws of other jurisdictions. Any suit with respect hereto will be brought in the
federal or state courts in the districts which include the principal executive offices of the
Company, and the Shareholder hereby agrees and submits to the personal jurisdiction and venue
thereof.

-5-

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
above written.

	 	 	 	 	 	 	 
	 	 	SOURCEFIRE, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Print	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 	 	SHAREHOLDER	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Signature
	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 

	 	 	 	 	 	 
	 
	 

	 	 	 	 	 	 

-6-

 

     If the Shareholder is a resident of a community property state (AZ, CA, ID, LA, NV, NM, TX,
WA, WI), the Shareholder’s spouse has executed the following required consent.

Consent
of Community Property Spouse

     The undersigned spouse of the Shareholder has read, understands, and hereby approves the purchase
of shares of Common Stock pursuant to this Stock Restriction Agreement and the related Option Grant
Agreement between the Shareholder and the Company (the “Agreements”). In consideration of the
Company’s granting my spouse the right to purchase the Shares as set forth in the Agreements, the
undersigned hereby agrees to be irrevocably bound by the Agreements and further agrees that any
community property interest shall similarly be bound by the Agreements. The undersigned hereby
appoints the Shareholder as my attorney-in-fact with respect to any amendment or exercise of any
rights under the Agreements.

	 	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

Signature of Shareholder’s Spouse Address:
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

-7-exv10w1

 

Exhibit 10.1

SOURCEFIRE, INC.

FOURTH AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

     This
Fourth Amended and Restated Investor Rights Agreement (this
“Agreement”), dated as of May
24, 2006, is entered into by and among Sourcefire, Inc., a Delaware corporation (the “Company”),
the individuals and entities listed on Exhibit A attached hereto (the “Series A
Purchasers”, the “Series B Purchasers” and the “Series C Purchasers”), and the individuals and
entities listed on Exhibit B attached hereto (the “Series D Purchasers” and together with
the Series A Purchasers, the Series B Purchasers and the Series C Purchasers, the “Purchasers”).

Recitals

     WHEREAS, the Series D Purchasers are purchasing shares of the Company’s Series D Convertible
Preferred Stock, par value $0.001 per share (the “Series D Preferred Stock”), pursuant to that
certain Series D Convertible Preferred Stock Purchase Agreement, dated as of the date hereof, by
and among the Company and the parties identified therein (the “Purchase Agreement”);

     WHEREAS, the obligations in the Purchase Agreement are conditioned upon the execution and
delivery of this Agreement;

     WHEREAS, the Series A Purchasers are holders of the Company’s Series A Convertible Preferred
Stock, par value $0.001 per share (the “Series A Preferred Stock”), the Series B Purchasers are
holders of the Company’s Series B Convertible Preferred Stock, par value $0.001 per share (the
“Series B Preferred Stock”), the Series C Purchasers are holders of the Company’s Series C
Convertible Preferred Stock, par value $0.001 per share (the “Series C Preferred Stock” and
together with the Series A Preferred Stock, the Series B Preferred Stock and the Series D Preferred
Stock, the “Preferred Stock”);

     WHEREAS, the Company and the Series A Purchasers, Series B Purchasers and
Series C Purchasers are parties to the Third Amended and Restated Investor Rights Agreement dated
as of January 15, 2004 (the “Prior Agreement”);

     WHEREAS, the Prior Agreement can be amended with the written consent of (i) the Company, (ii)
those Series A Purchasers holding Series A Preferred Stock representing at least two-thirds (2/3)
of the outstanding shares of Series A Preferred Stock then held by the Series A Purchasers, (iii)
those Series B Purchasers holding Series B Preferred Stock representing at least sixty percent
(60%) of the outstanding shares of Series B Preferred Stock then held by the Series B Purchasers,
and (iv) those Series C Purchasers holding Series C Preferred Stock representing at least a
majority of the outstanding shares of Series C Preferred Stock then held by the Series C
Purchasers; and

     WHEREAS, the parties to the Prior Agreement desire to amend and restate the Prior
Agreement in its entirety and, together with the other parties hereto, desire to enter into this

 

 

Agreement in order to effect such amendment and restatement of the Prior Agreement and to grant
certain registration and information rights to the Purchasers.

     NOW, THEREFORE, in consideration of the mutual promises and covenants contained in this
Agreement, the parties hereto agree as follows:

     1. Certain Definitions.

     As used in this Agreement, the following terms shall have the following respective meanings:

          “Available Undersubscription Amount” means the difference between the total of all of the
Basic Amounts available for purchase by Purchasers pursuant to Section 3.1 and the Basic Amounts
subscribed for pursuant to Section 3.1.

          “Basic Amount” means, with respect to a Purchaser, its pro rata portion of the Offered
Securities determined by dividing the aggregate number of shares of Common Stock issued or issuable
upon conversion of the Preferred Stock then held by such Purchaser by the total number of shares of
Common Stock then-outstanding and issuable upon conversion of the Preferred Stock then held by all
of the Purchasers; provided, however, that DBED’s Basic Amount shall include that additional
portion of Offered Securities as if DBED purchased its pro rata share of (i) the Series B Preferred
Stock purchased by all of the Series A Purchasers pursuant to the Series B Convertible Preferred
Stock Purchase Agreement dated February 10, 2003 (i.e., 244,643 shares of Series B Preferred
Stock), (ii) the Series C Preferred Stock purchased by all of the Series A Purchasers and Series B
Purchasers pursuant to the Series C Convertible Preferred Stock Purchase Agreement dated January
15, 2004 (i.e. 184,694 shares of Series C Preferred Stock), and (iii) the Series D Preferred Stock
purchased by all of the Series A Purchasers, Series B Purchasers and Series C Purchasers pursuant
to the Purchase Agreement and the Basic Amount of the other Purchasers shall be reduced on a pro
rata basis; provided, further, however, that for purposes of determining the pro rata portion of
Core Capital Partners, L.P. and Minotaur Funds, LLC, the shares of Common Stock issued or issuable
upon conversion of the Preferred Stock then held by Core Capital Partners, L.P. and Minotaur Funds,
LLC shall be aggregated and Core Capital Partners, L.P. and the Minotaur Funds, LLC (either
individually or together) shall have the right to repurchase all or part of such aggregate pro rata
portion.

          “Code” means the Internal Revenue Code of 1986, as amended.

          “Commission” means the Securities and Exchange Commission, or any other federal agency at the
time administering the Securities Act.

          “Common Stock” means the common stock, $0.001 par value per share, of the Company.

          “Company” has the meaning ascribed to it in the introductory paragraph hereto.

2

 

          “Company Sale” means an Acquisition (as defined in the Certificate of Incorporation of the
Company in effect on the date hereof (the “Charter”)) or an Asset Transfer (as defined in the
Charter).

          “Company Subsidiary” means any corporation, partnership, trust, limited liability company or
other non-corporate business enterprise in which the Company (or another Company Subsidiary) holds
stock or other ownership interests representing (a) more that fifty percent (50%) of the voting
power of all outstanding stock or ownership interests of such entity or (b) the right to receive
more than fifty percent (50%) of the net assets of such entity available for distribution to the
holders of outstanding stock or ownership interests upon a liquidation or dissolution of such
entity.

          “Confidential Information” means any information that is labeled as confidential, proprietary
or secret, or which otherwise should be reasonably understood by the recipient because of the
circumstances of disclosure or the nature of the information itself, which a Purchaser obtains from
the Company pursuant to financial statements, reports and other materials provided by the Company
to such Purchaser pursuant to this Agreement or pursuant to visitation or inspection rights granted
hereunder.

          “DBED” means the Maryland Department of Business and Economic Development.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor federal
statute, and the rules and regulations of the Commission issued under such act, as they each may,
from time to time, be in effect.

          “Indemnified Party” means a party entitled to indemnification pursuant to Section 2.5.

          “Indemnifying Party” means a party obligated to provide indemnification pursuant to Section
2.5.

          “Initiating Holders” means the Purchasers initiating a request for registration pursuant to
Section 2.1(a) or 2.1(b), as the case may be.

          “Major Purchaser” means DBED, Meritech and any Purchaser that holds at least five percent (5%)
of the Common Stock issued or issuable upon the conversion of all the Preferred Stock.

          “Meritech” means Meritech Capital Partners III L.P., Meritech Capital Affiliates III L.P. and
their respective affiliates.

          “Notice of Acceptance” means a written notice from a Purchaser to the Company containing the
information specified in Section 3.1(b).

3

 

          “Offer” means a written notice of any proposed or intended issuance, sale or exchange of
Offered Securities containing the information specified in Section 3.1(a).

          “Offered Securities” means (i) any shares of Common Stock, (ii) any other equity securities of
the Company, including, without limitation, shares of preferred stock, (iii) any option, warrant or
other right to subscribe for, purchase or otherwise acquire any equity securities of the Company,
or (iv) any debt securities convertible into capital stock of the Company.

          “Other Holders” means holders of securities of the Company (other than Purchasers) who are
entitled, by contract with the Company, to have securities included in a Registration Statement.

          “Preferred Stock” has the meaning ascribed to it in the recitals hereto.

          “Prospectus” means the prospectus included in any Registration Statement, as amended or
supplemented by an amendment or prospectus supplement, including post-effective amendments, and all
material incorporated by reference or deemed to be incorporated by reference in such Prospectus.

          “Purchase Agreement” has the meaning ascribed to it in the recitals hereto.

          “Purchaser” has the meaning ascribed to it in the introductory paragraph hereto.

          “Qualifying Public Offering” has the meaning ascribed to it in the Charter.

          “Refused Securities” means those Offered Securities as to which a Notice of Acceptance has not
been given to the Company by the Purchasers pursuant to Section 3.1.

          “Registration Statement” means a registration statement filed by the Company with the
Commission for a public offering and sale of securities of the Company under the Securities Act
(other than a registration statement relating to an employee benefit plan or any corporate
reorganization or other transaction under Rule 145, such as a registration statement on Form S-8 or
Form S-4, or their successors forms, or any other form for a similar limited purpose).

          “Registration Expenses” means all expenses (other than underwriting discounts and commissions
and transfer taxes) incurred by the Company in complying with the provisions of Section 2,
including, without limitation, all registration and filing fees, exchange listing fees, printing
expenses, fees and expenses of counsel for the Company and the fees and expenses of one counsel
selected by the holders of a majority of the Registrable Shares held by the Selling Stockholders to
represent the Selling Stockholders in connection with such registration, state Blue Sky fees and
expenses, and the expense of any special audits incident to or required by any such registration,
but excluding underwriting discounts, selling commissions and the fees and expenses of Selling
Stockholders’ own counsel (other than the counsel selected to represent all Selling Stockholders).

4

 

          “Registrable Shares” means (a) the shares of Common Stock issued or issuable upon conversion
of the Preferred Stock, (b) the shares of Common Stock issued or issuable upon the conversion or
exercise of any other convertible securities or warrants acquired by the holders of the Preferred
Stock, (c) any other shares of Common Stock issued as a dividend or other distribution with respect
to, or in exchange for, or in replacement of, such shares, and (d) any shares of Common Stock or
Preferred Stock acquired pursuant to that certain Fourth Amended and Restated Right of First
Refusal and Co-Sale Agreement, dated as of the date of this Agreement, by and among the Company,
the Purchasers, and the Key Holders (all as defined therein) (the
“Co-Sale Agreement”); provided,
however, that shares of Common Stock which are Registrable Shares shall cease to be Registrable
Shares upon five (5) years after the closing of the Qualifying Public Offering or, with respect to
any holder, at such time that such holder is able to sell all its shares of Common Stock pursuant
to Rule 144(k). Wherever reference is made in this Agreement to a request or consent of holders of
a certain percentage of Registrable Shares, the determination of such percentage shall include
shares of Common Stock issuable upon conversion of the Preferred Stock even if such conversion has
not been effected.

          “Securities Act” means the Securities Act of 1933, as amended, or any successor federal
statute, and the rules and regulations of the Commission issued under such act, as they each may,
from time to time, be in effect.

          “Selling Stockholder” means any person owning of record Registrable Shares to be included in a
Registration Statement.

          “Undersubscription Amount” means, with respect to a Purchaser, any additional portion of the
Offered Securities attributable to the Basic Amounts of other Purchasers as such Purchaser
indicates it will purchase or acquire should the other Purchasers subscribe for less than their
Basic Amounts.

     2. Registration Rights.

          2.1 Required Registrations.

               (a) At any time after the earlier of (i) the fourth (4th) anniversary of the date
of this Agreement or (ii) six (6) months after the closing of the Qualifying Public Offering, a
Purchaser or Purchasers holding in the aggregate at least twenty percent (20%) of the Registrable
Shares may together request, in writing, that the Company effect the registration on Form S-1 (or
any successor form) of Registrable Shares having an aggregate anticipated offering price, net of
underwriting discounts and commissions, of at least $5,000,000 (based on the market price or fair
value on the date of such request). The Company shall not be required to effect more than two (2)
registrations (that have been declared and ordered effective by the Commission) pursuant to this
Section 2.1(a).

               (b) At any time after the Company becomes eligible to file a Registration Statement on Form
S-3 (or any successor form relating to secondary offerings), a Purchaser or Purchasers holding at
least ten percent (10%) of the Registrable Shares may request, in writing, that the Company effect
the registration on Form S-3 (or such successor

5

 

form) of Registrable Shares having an aggregate
anticipated offering price of at least $2,000,000. The Company shall not be required to effect
more than two (2) registrations in any twelve (12) month period pursuant to this Section 2.1(b).

               (c) Upon receipt of any request for registration pursuant to this Section 2.1, the Company
shall promptly give written notice of such proposed registration to all Purchasers other than the
Initiating Holders. Such Purchasers shall have the right, by giving written notice to the Company
within thirty (30) days after the Company provides its notice, to elect to have included in such
registration such of their Registrable Shares as such Purchasers may request in such notice of
election, subject in the case of an underwritten offering to the terms of Section 2.1(d).
Thereupon, the Company shall, as expeditiously as possible, use its best efforts to effect the
registration on an appropriate registration form of all Registrable Shares which the Company has
been requested to so register; provided, however, that in the case of a
registration requested under Section 2.1(b), the Company will only be obligated to effect such
registration on Form S-3 (or any successor form).

               (d) If the Initiating Holders intend to distribute the Registrable Shares covered by their
request by means of an underwriting, they shall so advise the Company as a part of their request
made pursuant to Section 2.1(a) or (b), as the case may be, and the Company shall include such
information in its written notice referred to in Section 2.1(c). In such event, the right of any
other Purchaser to include its Registrable Shares in such registration pursuant to Section 2.1(a)
or (b), as the case may be, shall be conditioned upon such other Purchaser’s participation in such
underwriting on the terms set forth herein. All Purchasers including Registrable Shares in such
registration shall enter into an underwriting agreement upon customary terms with the underwriter
or underwriters selected for such underwriting by the Company and approved by a majority of the
Initiating Holders, which such approval will not be unreasonably withheld, conditioned, or delayed;
provided that such underwriting agreement shall not provide for indemnification or contribution
obligations on the part of the Purchasers materially greater than the obligations of the Purchasers
pursuant to Section 2.5. If any Purchaser who has requested inclusion of its Registrable Shares in
such registration as provided above disapproves of the terms of the underwriting, such Purchaser
may elect, by written notice to the Company, to withdraw its Registrable Shares from such
Registration Statement and underwriting. If the managing underwriter advises the Company in
writing that marketing factors require a limitation on the number of shares to be underwritten, the
number of Registrable Shares to be included in the Registration Statement and underwriting shall be
allocated among all Purchasers requesting registration in proportion, as nearly as practicable, to
the respective number of Registrable Shares held by them on the date of the request for
registration made by the Initiating Holders pursuant to Section 2.1(a) or (b), as the case may be;
provided, however, that the number of shares of Registrable Securities to be included in such
underwriting and registration shall not be reduced unless all other securities of the Company are
first entirely excluded from the underwriting and registration. If any Purchaser would thus be
entitled to include more Registrable Shares than such Purchaser requested to be registered, the
excess shall be allocated among other requesting Purchasers pro rata in the manner described in the
preceding sentence.

6

 

               (e) The Company shall not be required to effect any registration within six (6) months after
the effective date of the Registration Statement relating to the Qualifying Public Offering. For
purposes of this Section 2.1(e), a Registration Statement shall not be counted if, as a result of
an exercise of the underwriter’s cut-back provisions, less than thirty-five percent (35%) of the
total number of Registrable Shares that Purchasers have requested to be included in such
Registration Statement are so included.

               (f) If at the time of any request to register Registrable Shares by Initiating Holders
pursuant to this Section 2.1, the Company is engaged or has plans to engage in a registered public
offering or is engaged in any other activity which, in the good faith determination of the
Company’s Board of Directors, would be adversely affected by the requested registration, then the
Company may at its option direct that such request be delayed for a period not in excess of ninety
(90) days from the date of such request, such right to delay a request to be exercised by the
Company not more than twice in any twelve (12) month period.

          2.2 Incidental Registration.

               (a) Whenever the Company proposes to file a Registration Statement (other than a Registration
Statement filed pursuant to Section 2.1 or filed as part of the Company’s initial public offering)
at any time and from time to time, it will, prior to such filing, give written notice to all
Purchasers of its intention to do so. Upon the written request of a Purchaser or Purchasers given
within fifteen (15) days after the Company provides such notice (which request shall state the
intended method of disposition of such Registrable Shares), the Company shall use its best efforts
to cause all Registrable Shares which the Company has been requested by such Purchaser or
Purchasers to register to be registered under the Securities Act to the extent necessary to permit
their sale or other disposition in accordance with the intended methods of distribution specified
in the request of such Purchaser or Purchasers; provided that the Company shall have the
right to postpone or withdraw any registration effected pursuant to this Section 2.2 without
obligation to any Purchaser.

               (b) If the registration for which the Company gives notice pursuant to Section 2.2(a) is a
registered public offering involving an underwriting, the Company shall so advise the Purchasers as
a part of the written notice given pursuant to Section 2.2(a). In such event, the right of any
Purchaser to include its Registrable Shares in such registration pursuant to this Section 2.2 shall
be conditioned upon such Purchaser’s participation in such underwriting on the terms set forth
herein. All Purchasers including Registrable Shares in such registration shall enter into an
underwriting agreement upon customary terms with the underwriter or underwriters selected for the
underwriting by the Company; provided that such underwriting agreement shall not provide
for indemnification or contribution obligations on the part of Purchasers materially greater than
the obligations of the Purchasers pursuant to Section 2.5. If any Purchaser who has requested
inclusion of its Registrable Shares in such registration as provided above disapproves of the terms
of the underwriting, such Purchaser may elect, by written notice to the Company delivered at least
ten (10) business days prior to the effective date of the registration statement, to withdraw its
shares from such Registration Statement and underwriting without loss of any future registration
rights. If the managing underwriter advises the Company in writing that

7

 

marketing factors require
a limitation on the number of shares to be underwritten, the number of shares that may be included
in the underwriting shall be allocated, first, to the Company, and second, to the Selling
Stockholders in proportion, as nearly as practicable, to the respective number of Registrable
Shares held by them on the date the Company gives the notice specified in Section 2.2(a);
provided, however, that the number of Registrable Shares permitted to be included
in such registration shall in any event be at least twenty-five percent (25%) of the aggregate
number of shares included in such registration, unless such registration is the initial public
offering. No Registrable Shares shall be excluded from such offering unless all other shares
(other than those to be sold for the account of the Company) are first excluded.

          2.3 Registration Procedures.

               (a) If and whenever the Company is required by the provisions of this Agreement to use its
best efforts to effect the registration of any Registrable Shares under the Securities Act, the
Company shall promptly:

                    (i) file with the Commission a Registration Statement with respect to such Registrable Shares
and use its best efforts to cause that Registration Statement to become effective;

                    (ii) prepare and file with the Commission any amendments and supplements to the Registration
Statement and the prospectus included in the Registration Statement as may be necessary to comply
with the provisions of the Securities Act (including the anti-fraud provisions thereof) and to keep
the Registration Statement effective for thirty (30) days from the effective date or such lesser
period until all such Registrable Shares are sold, provided that a Registration Statement on a Form
S-3 which will remain effective for twelve (12) months from the effective date or such lesser
period until all such Registrable Shares are sold;

                    (iii) furnish to each Selling Stockholder such reasonable numbers of copies of the Prospectus,
including any preliminary Prospectus, in conformity with the requirements of the Securities Act,
and such other documents as such Selling Stockholders may reasonably request in order to facilitate
the public sale or other disposition of the Registrable Shares owned by such Selling Stockholder;

                    (iv) register or qualify the Registrable Shares covered by the Registration Statement under
the securities or Blue Sky laws of such states as the Selling Stockholders shall reasonably
request, and do any and all other acts and things that may be necessary or desirable to enable the
Selling Stockholders to consummate the public sale or other disposition in such states of the
Registrable Shares owned by the Selling Stockholders; provided, however, that the
Company shall not be required in connection with this paragraph (iv) to qualify as a foreign
corporation or execute a general consent to service of process in any jurisdiction;

                    (v) cause all such Registrable Shares to be listed on each securities exchange or automated
quotation system on which similar securities issued by the Company are then listed;

8

 

                    (vi) provide a transfer agent and registrar for all such Registrable Shares not later than the
effective date of such registration statement;

                    (vii) make available for inspection by the Selling Stockholders, any managing underwriter
participating in any disposition pursuant to such Registration Statement, and any attorney or
accountant or other agent retained by any such underwriter or selected by the Selling Stockholders,
all financial and other records, pertinent corporate documents and properties of the Company and
cause the Company’s officers, directors, employees and independent accountants to supply all
information reasonably requested by any such seller, underwriter, attorney, accountant or agent in
connection with such Registration Statement;

                    (viii) notify each Selling Stockholder, promptly after it shall receive notice thereof, of the
time when such Registration Statement has become effective or a supplement to any Prospectus
forming a part of such Registration Statement has been filed; and

                    (ix) following the effectiveness of such Registration Statement, notify each seller of such
Registrable Shares of any request by the Commission for the amending or supplementing of such
Registration Statement or Prospectus.

               (b) If the Company has delivered a Prospectus to the Selling Stockholders and after having
done so the Prospectus is amended to comply with the requirements of the Securities Act, the
Company shall promptly notify the Selling Stockholders and, if requested, the Selling Stockholders
shall immediately cease making offers of Registrable Shares and return all Prospectuses to the
Company. The Company shall promptly provide the Selling Stockholders with revised Prospectuses
and, following receipt of the revised Prospectuses, the Selling Stockholders shall be free to
resume making offers of the Registrable Shares.

               (c) In the event that, in the judgment of the Company, it is advisable to suspend use of a
Prospectus included in a Registration Statement due to pending material developments or other
events that have not yet been publicly disclosed and as to which the Company believes public
disclosure would be detrimental to the Company, the Company shall notify all Selling Stockholders
to such effect, and, upon receipt of such notice, each such Selling Stockholder shall immediately
discontinue any sales of Registrable Shares pursuant to such Registration Statement until such
Selling Stockholder has received copies of a supplemented or amended Prospectus or until such
Selling Stockholder is advised in writing by the Company that the then current Prospectus may be
used and has received copies of any additional or supplemental filings that are incorporated or
deemed incorporated by reference in such Prospectus. Notwithstanding anything to the contrary
herein, the Company shall not exercise its rights under this Section 2.3(c) to suspend sales of
Registrable Shares for a period in excess of thirty (30) days consecutively or sixty (60) days in
any three hundred sixty-five (365) day period as long as such suspension would not be in violation
of the Securities Act.

          2.4 Allocation of Expenses. The Company will pay all Registration Expenses for all
registrations under this Agreement; provided, however, that if a registration under

9

 

Section 2.1(a) or Section 2.1(b) is withdrawn at the request of the Initiating Holders (other than
as a result of material adverse information concerning the business or financial condition of the
Company which is made known to the Selling Stockholders after the date on which such registration
was requested) and if the Initiating Holders elect not to have such registration counted as a
registration requested under Section 2.1(a) or Section 2.1(b), as applicable, the Selling
Stockholders shall pay the Registration Expenses of such registration pro rata in accordance with
the number of their Registrable Shares included in such registration.

          2.5 Indemnification and Contribution.

               (a) In the event of any registration of any of the Registrable Shares under the Securities Act
pursuant to this Agreement, the Company will indemnify and hold harmless each Selling Stockholder,
each underwriter of such Registrable Shares, and each other person, if any, who controls such
Selling Stockholder or underwriter within the meaning of the Securities Act or the Exchange Act
against any losses, claims, damages or liabilities, joint or several, to which such Selling
Stockholder, underwriter or controlling person may become subject under the Securities Act, the
Exchange Act, state securities or Blue Sky laws, or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any
untrue statement or alleged untrue statement of any material fact contained in any Registration
Statement under which such Registrable Shares were registered under the Securities Act, any
Prospectus or any amendment or supplement to such Registration Statement, (ii) the omission or
alleged omission to state a material fact required to be stated therein or necessary to make the
statements therein not misleading or (iii) any violation or alleged violation by the Company of the
Securities Act, the Exchange Act, any state securities law or any rule or regulation promulgated
under the Securities Act, the Exchange Act or any state securities law in connection with the
Registration Statement or the offering contemplated thereby; and the Company will reimburse such
Selling Stockholder, underwriter and each such controlling person for any legal or any other
expenses reasonably incurred by such Selling Stockholder, underwriter or controlling person in
connection with investigating or defending any such loss, claim, damage, liability or action;
provided, however, that the Company will not be liable in any such case to the
extent that any such loss, claim, damage or liability arises out of or is based upon any untrue
statement or omission made in such Registration Statement, Prospectus or any such amendment or
supplement, in reliance upon and in conformity with information furnished to the Company, in
writing, by or on behalf of such Selling Stockholder, underwriter or controlling person
specifically for use in the preparation thereof.

               (b) In the event of any registration of any of the Registrable Shares under the Securities Act
pursuant to this Agreement, each Selling Stockholder, severally and not jointly, will indemnify and
hold harmless the Company, each of its directors and officers and each underwriter (if any) and
each person, if any, who controls the Company or any such underwriter within the meaning of the
Securities Act or the Exchange Act, against any losses, claims, damages or liabilities, joint or
several, to which the Company, such directors and officers, underwriter or controlling person may
become subject under the Securities Act, Exchange Act, state securities or Blue Sky laws or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon (i) any untrue

10

 

statement or alleged untrue statement of a material
fact contained in any Registration Statement under which such Registrable Shares were registered
under the Securities Act, any Prospectus, or any amendment or supplement to the Registration
Statement or (ii) any omission or alleged omission to state a material fact required to be stated
therein or necessary to make the statements therein not misleading, if and to the extent (and only
to the extent) that the statement or omission was made in reliance upon and in conformity with
information relating to such Selling Stockholder furnished in writing to the Company by such
Selling Stockholder specifically for use in connection with the preparation of such Registration
Statement, prospectus, amendment or supplement; provided, however, that the
obligations of a Selling Stockholder hereunder shall be limited to an amount equal to the net
proceeds to such Selling Stockholder of Registrable Shares sold in connection with such
registration.

               (c) Each Indemnified Party shall give notice to the Indemnifying Party promptly after such
Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall
permit the Indemnifying Party to assume the defense of any such claim or any litigation resulting
therefrom; provided, that counsel for the Indemnifying Party, who shall conduct the defense
of such claim or litigation, shall be approved by the Indemnified Party (whose approval shall not
be unreasonably withheld, conditioned or delayed); and, provided, further, that the
failure of any Indemnified Party to give notice as provided herein shall not relieve the
Indemnifying Party of its obligations under this Section 2.5 except to the extent that the
Indemnifying Party is adversely affected by such failure. The Indemnified Party may participate in
such defense at such party’s expense; provided, however, that the Indemnifying
Party shall pay the reasonable expenses of the Indemnified Party if the Indemnified Party
reasonably concludes that representation of such Indemnified Party by the counsel retained by the
Indemnifying Party would be inappropriate due to actual or potential differing interests between
the Indemnified Party and any other party represented by such counsel in such proceeding; and
provided, further, that in no event shall the Indemnifying Party be required to pay
the expenses of more than one counsel for the Indemnified Party. The Indemnifying Party also shall
be responsible for the expenses of such defense if the Indemnifying Party does not elect to assume
such defense. No Indemnifying Party, in the defense of any such claim or litigation shall, except
with the consent of each Indemnified Party, consent to entry of any judgment or enter into any
settlement which does not include as an unconditional term thereof the giving by the claimant or
plaintiff to such Indemnified Party of a release from all liability in respect of such claim or
litigation, and no Indemnified Party shall consent to entry of any judgment or settle such claim or
litigation without the prior written consent of the Indemnifying Party, which consent shall not be
unreasonably withheld, conditioned or delayed.

               (d) In order to provide for just and equitable contribution in circumstances in which the
indemnification provided for in this Section 2.5 is due in accordance with its terms but for any
reason is held to be unavailable to an Indemnified Party in respect to any losses, claims, damages
and liabilities referred to herein, then the Indemnifying Party shall, in lieu of indemnifying such
Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result
of such losses, claims, damages or liabilities to which such party may be subject in such
proportion as is appropriate to reflect the relative fault of the Indemnified Party on the one hand
and the Indemnifying Party on the other in connection with the statements

11

 

or omissions which
resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative fault of the Indemnified Party and the Indemnifying Party shall be
determined by reference to, among other things, whether the untrue or alleged untrue statement of
material fact related to information supplied by the Indemnified Party or the Indemnifying Party
and the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission. The Company and the Selling Stockholders agree that it would
not be just and equitable if contribution pursuant to this Section 2.5(d) were determined by pro
rata allocation or by any other method of allocation which does not take account of the equitable
considerations referred to above. Notwithstanding the provisions of this Section 2.5(d), (i) in no
case shall any one Selling Stockholder be liable or responsible for any amount in excess of the net
proceeds received by such Selling Stockholder from the offering of Registrable Shares and (ii) the
Company shall be liable and responsible for any amount in excess of such proceeds;
provided, however, that no person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation. Any party entitled to contribution
will, promptly after receipt of notice of commencement of any action, suit or proceeding against
such party in respect of which a claim for contribution may be made against another party or
parties under this Section 2.5(d), notify such party or parties from whom contribution may be
sought, but the omission so to notify such party or parties from whom contribution may be sought
shall not relieve such party from any other obligation it or they may have thereunder or otherwise
under this Section 2.5(d). No party shall be liable for contribution with respect to any action,
suit, proceeding or claim settled without its prior written consent, which consent shall not be
unreasonably withheld, conditioned or delayed.

               (e) The rights and obligations of the Company and the Selling Stockholders under this Section
2.5 shall survive the termination of this Agreement.

               (f) It is expressly acknowledged and agreed that in accordance with the terms of the Opinion
of the Maryland Attorney General No. 86-064 dated December 1, 1986, absent already available
appropriations to fund indemnification or contribution obligations that may arise under Section
2.5, any and all such obligations of DBED are conditioned upon the availability of appropriations
for use by DBED at the time such indemnification or contribution obligations arise; any and all
such obligations are further limited to the extent of the State of Maryland’s statutory waiver of
its sovereign immunity.

          2.6 Other Matters with Respect to Underwritten Offerings. In the event that
Registrable Shares are sold pursuant to a Registration Statement in an underwritten offering
pursuant to Section 2.1, the Company agrees to (a) enter into an underwriting agreement containing
customary representations and warranties with respect to the business and operations of the Company
and customary covenants and agreements to be performed by the Company, including without limitation
customary provisions with respect to indemnification by the Company of the underwriters of such
offering; (b) use its best efforts to cause its legal counsel to render customary opinions to the
underwriters and the Selling Stockholders with respect to the Registration Statement; and (c) use
its best efforts to cause its independent public accounting

12

 

firm to issue customary “cold comfort
letters” to the underwriters and the Selling Stockholders with respect to the Registration
Statement.

          2.7 Information by Holder. Each holder of Registrable Shares included in any
registration shall furnish to the Company such information regarding such holder and the
distribution proposed by such holder as the Company may reasonably request in writing and as shall
be required in connection with any registration, qualification or compliance referred to in this
Agreement.

          2.8 “Standoff” Agreement; Confidentiality of Notices. Each Purchaser, if requested by
the Company and the managing underwriter of an underwritten public offering by the Company of
Common Stock, shall not sell or otherwise transfer or dispose of any Registrable Shares or other
securities of the Company (excluding securities included in the registration or acquired in the
initial public offering or in the public market after such offering) held by such Purchaser for a
period of one hundred eighty (180) days following the effective date of a Registration Statement;
provided, that:

               (a) such agreement shall only apply to the first public offering of the Company’s Common
Stock;

               (b) all current stockholders of the Company, all officers and directors of the Company, and
any stockholders who acquire stock of the Company before or during the one hundred eighty (180) day
period following the effective date of a Registration Statement enter into similar agreements; and

               (c) such agreement shall provide that all Purchasers will participate on a pro-rata basis in
any early release from the “standoff” obligations of any stockholder, warrantholder or
optionholder.

     The Company may impose stop-transfer instructions with respect to the Registrable Shares or
other securities subject to the foregoing restriction until the end of such one hundred eighty
(180) day period.

     Any Purchaser receiving any written notice from the Company regarding the Company’s plans to
file a Registration Statement shall treat such notice confidentially and shall not disclose such
information to any person other than as necessary to exercise its rights under this Agreement.

          2.9 Limitations on Subsequent Registration Rights. The Company shall not, without the
prior written consent of the holders of at least seventy percent (70%) of the Registrable Shares
then outstanding held by the Purchasers, enter into any agreement (other than this Agreement) with
any holder or prospective holder of any securities of the Company which grant such holder or
prospective holder registration rights that are pari passu with, or senior to,
those granted to the Purchasers hereunder.

13

 

          2.10 Rule 144 Requirements. After the earliest of (i) the closing of the sale of
securities of the Company pursuant to a Registration Statement, (ii) the registration by the
Company of a class of securities under Section 12 of the Exchange Act, or (iii) the issuance by the
Company of an offering circular pursuant to Regulation A under the Securities Act, the Company
agrees to:

               (a) make and keep current public information about the Company available, as those terms are
understood and defined in Rule 144;

               (b) use its best efforts to file with the Commission in a timely manner all reports and other
documents required of the Company under the Securities Act and the Exchange Act (at any time after
it has become subject to such reporting requirements); and

               (c) furnish to any holder of Registrable Shares upon request (i) a written statement by the
Company as to its compliance with the reporting requirements of Rule 144 and of the Securities Act
and the Exchange Act (at any time after it has become subject to such reporting requirements), (ii)
a copy of the most recent annual or quarterly report of the Company, and (iii) such other reports
and documents of the Company as such holder may reasonably request to avail itself of any similar
rule or regulation of the Commission allowing it to sell any such securities without registration.

          2.11 Termination. All of the Company’s obligations to register Registrable Shares
under this Agreement shall terminate five (5) years after the closing of the Qualifying Public
Offering. In addition, the Company’s obligations to register Registrable Shares under this
Agreement with respect to any holder of Registrable Shares shall terminate at such time that such
holder is able to sell Registrable Shares pursuant to Rule 144(k).

     3. Right of First Refusal.

          3.1 Rights of Purchasers to Acquire Offered Securities.

               (a) The Company shall not issue, sell or exchange, agree to issue, sell or exchange, or
reserve or set aside for issuance, sale or exchange, any Offered Securities, unless in each such
case the Company shall have first complied with this Section 3.1. The Company shall deliver to
each Purchaser an Offer, which shall (i) identify and describe the Offered Securities, (ii)
describe the price and other terms upon which they are to be issued, sold or exchanged, and the
number or amount of the Offered Securities to be issued, sold or exchanged, (iii) identify the
persons or entities (if known) to which or with which the Offered Securities are to be offered,
issued, sold or exchanged, and (iv) offer to issue and sell to or exchange with such Purchaser (A)
such Purchaser’s Basic Amount and (B) such Purchaser’s Undersubscription Amount.

               (b) To accept an Offer, in whole or in part, a Purchaser must deliver to the Company, on or
prior to the date twenty (20) days after the date of delivery of the Offer, a Notice of Acceptance
indicating the portion of the Purchaser’s Basic Amount that such Purchaser elects to purchase and,
if such Purchaser shall elect to purchase all of its Basic

14

 

Amount, the Undersubscription Amount (if
any) that such Purchaser elects to purchase. If the Basic Amounts subscribed for by all Purchasers
are less than the total of all of the Basic Amounts available for purchase, then each Purchaser who
has set forth an Undersubscription Amount in its Notice of Acceptance shall be entitled to
purchase, in addition to the Basic Amounts subscribed for, the Undersubscription Amount it has
subscribed for; provided, however, that if the Undersubscription Amounts subscribed
for exceed the Available Undersubscription Amount, each Purchaser who has subscribed for any
Undersubscription Amount shall be entitled to purchase only that portion of the Available
Undersubscription Amount as the Undersubscription Amount subscribed for by such Purchaser bears to
the total Undersubscription Amounts subscribed for by all Purchasers, subject to rounding by the
Board of Directors to the extent it deems reasonably necessary.

               (c) The Company shall have ninety (90) days from the expiration of the period set forth in
Section 3.1(b) to issue, sell or exchange all or any part of the Refused Securities, but only to
the offerees or purchasers described in the Offer (if so described therein) and only upon terms and
conditions (including, without limitation, unit prices and interest rates) which are not more
favorable, in the aggregate, to the acquiring person or persons or less favorable to the Company
than those set forth in the Offer. If the Company has not sold such Refused Securities within such
ninety (90) day period, the Company shall not thereafter issue or sell any Offered Securities
without first offering such securities to the Purchasers in the manner provided above.

               (d) Upon the closing of the issuance, sale or exchange of all or less than all of the Refused
Securities, the Purchasers shall, within fifteen (15) days of notice given by the Company of such
closing, acquire from the Company and the Company shall issue to the Purchasers, the number or
amount of Offered Securities specified in the Notices of Acceptance against payment of the purchase
price therefor and upon such other terms and conditions specified in the Offer.

               (e) The purchase by the Purchasers of any Offered Securities is subject in all cases to the
preparation, execution and delivery by the Company and the Purchasers of a purchase agreement
relating to such Offered Securities reasonably satisfactory in form and substance to the Company,
the Purchasers and their respective counsel.

               (f) The rights of the Purchasers under this Section 3.1 shall not apply to:

                    (i) the issuance of any shares of Common Stock in connection with any stock split, stock
dividend, or recapitalization of the Company;

                    (ii) the issuance of any shares of Common Stock upon conversion of shares of convertible
preferred stock;

                    (iii) shares of Common Stock, and options or warrants therefor, issued or to be issued after
the date of this Agreement to employees, officers or directors of, or consultants or advisors to,
the Company or any subsidiary pursuant to the Sourcefire, Inc. 2002

15

 

Stock Incentive Plan or any
other stock purchase or stock option plans that are approved by (A) the Board of Directors
including the affirmative vote of the director (the “Series A Designee”) elected solely by holders
of the Series A Preferred Stock, voting as a separate class, and the director (the “Series B
Designee”) elected solely by holders of the Series B Preferred Stock, voting as a separate class,
and the director (the “Series D Designee” and collectively with the Series A Designee and the
Series B Designee, the “Preferred Designees”) elected pursuant to Section 1(e) of that certain
Stockholders’ Voting Agreement, dated as of the date hereof, by and between the Company and the
other parties identified therein, and (B) the stockholders of the Company if such approval is
required pursuant to the terms of the Charter;

                    (iv) stock issued or issuable pursuant to any rights or agreements, options, warrants or
convertible securities outstanding as of the date of this Agreement; and stock issued pursuant to
any such rights or agreements granted after the date of this Agreement, so long as the rights of
first refusal established by this Section 3 were complied with or were inapplicable pursuant to any
provision of this Section 3 with respect to the initial sale or grant by the Company of such rights
or agreements;

                    (v) shares of Common Stock issued or issuable as a dividend or distribution on the Preferred
Stock;

                    (vi) shares of Common Stock or Preferred Stock, or options or warrants therefor, issued or
issuable to any bank, or other financial or lending institution, equipment lessor or service
provider, pursuant to any equipment leasing, loan arrangement, debt financing, or similar
arrangement, provided that the issuance of such shares, options or warrants is approved by
(a) the Board of Directors, including all of the Preferred Designees, and (b) at least a majority
of the then outstanding shares of Series C Preferred Stock and at least a majority of the then
outstanding shares of Series D Preferred Stock, each voting or consenting as separate classes; and
provided, further, that the primary purpose of the transaction is not an equity
financing;

                    (vii) shares of Common Stock, or options, warrants or other convertible securities therefor,
issued or issuable in connection with a strategic transaction, such as a joint venture, or a
manufacturing, marketing or distribution arrangement (including the acquisition or licensing of
technology (including, without limitation, sponsored research) by the Company or to a collaborative
partner of the Company in connection with a corporate partnering transaction) that is not
substantially for equity financing purposes and is approved by (a) the Board of Directors,
including all of the Preferred Designees, and (b) at least a majority of the then outstanding
shares of Series C Preferred Stock and at least a majority of the then outstanding shares of Series
D Preferred Stock, each voting or consenting as separate classes;

                    (viii) shares of Common Stock that are issued in connection with a Qualifying Public Offering;

                    (ix) shares of Common Stock, or options, warrants or other convertible securities therefor,
issued or issuable in connection with the acquisition of another entity by the Company by merger,
purchase of all or substantially all of the assets of another

16

 

entity or other reorganization
resulting in ownership by the Corporation of not less than fifty-one percent (51%) of the voting
power of such entity; or

                    (x) shares of Common Stock or Preferred Stock, or options, warrants or other convertible
securities therefor, issued with the consent of the holders of (a) at least two-thirds of the then
outstanding Series A Preferred Stock, (b) at least sixty percent (60%) of the then outstanding
Series B Preferred Stock, (c) at least a majority of the then outstanding Series C Preferred Stock,
and (d) at least a majority of the then outstanding Series D Preferred Stock, each voting or
consenting as separate classes.

          3.2 Termination. This Section 3 shall terminate upon the earlier of the closing of a
Company Sale or the closing of a Qualifying Public Offering.

     4. Covenants.

          4.1 Negative Covenants, Director Majority Vote. So long as any Preferred Stock is
outstanding, the Company shall not, without prior written consent of a majority of the Board of
Directors (including at least one of the Preferred Designees):

               (a) apply any of its assets to the redemption, retirement, purchase or acquisition, directly
or indirectly (including through a Company Subsidiary), or otherwise, of any shares of its capital
stock (other than (i) redemptions of Preferred Stock in accordance with the terms of the Charter,
(ii) repurchases of Common Stock at cost upon termination of employment or service, or (iii) stock
purchases made pursuant to the Stock Repurchase Agreement entered into between the Company and DBED
dated February 5, 2002);

               (b) enter into, or permit any Company Subsidiary to enter into, any lines of business that is
not primarily related to the business of the Company as conducted or proposed to be conducted as of
the date of this Agreement or relocate the Company’s principal office to a different region of the
country;

               (c) acquire, directly or indirectly (including through a Company Subsidiary), all or
substantially all of the properties, assets or stock of any other company or entity;

               (d) incur any indebtedness, or permit any Company Subsidiary to incur any indebtedness (other
than indebtedness of Company Subsidiaries owed to the Company), in excess of $500,000 in the
aggregate; provided, however, that the approval of the Board of Directors pursuant
to this Section 4 shall not be required for the Company to draw down or otherwise access any
amounts under (i) the $5,000,000 revolving credit facility with Silicon Valley Bank (the “SVB
Credit Facility”) and (ii) the $1,000,000 equipment line facility with Silicon Valley Bank (the
“SVB Equipment Line Facility”);

               (e) materially amend any provision of the SVB Credit Facility or the SVB Equipment Line
Facility, including, without limitation, any increase in the maximum loan amount or the extension
of the maturity date of either such facilities;

17

 

               (f) make any capital expenditures in any fiscal year (including expenditures for capitalized
leases and capital expenditures by Company Subsidiaries) in excess of $400,000, other than as set
forth in the budget duly adopted by the Board of Directors, including all of the Preferred
Designees;

               (g) make, or permit any Company Subsidiary to make, any loan or advance to any entity or
person, including, without limitation, any employee or director of the Company or any Company
Subsidiary, except advances and similar expenditures in the ordinary course of business or under
the terms of an employee stock or option plan approved by the Board of Directors of the Company,
including all of the Preferred Designees;

               (h) pledge assets, guarantee, or permit any Company Subsidiary to guarantee, directly or
indirectly, any indebtedness or obligations except for guarantees of trade accounts of the Company
or any Company Subsidiary arising in the ordinary course of business;

               (i) enter into any agreement or contract with any affiliate of the Company or its officers or
directors other than agreements required by the Purchase Agreement or arising in the ordinary
course of business; or

               (j) increase or decrease the number of seats on the Company’s Board of Directors from its
current number of seven (7).

Any such action taken without the required consent or affirmative vote of a majority of the Board
of Directors (including all of the Preferred Designees) shall be void ab initio.

          4.2 Inspection and Observation. The Company shall permit each Major Purchaser, or any
authorized representative thereof, to visit and inspect the properties of the Company, including
its corporate and financial records, and to discuss its business and finances with officers of the
Company, during normal business hours following reasonable notice and as often as may be reasonably
requested.

          4.3 Financial Statements and Other Information.

               (a) Until the earlier of the Company’s Qualifying Public Offering or the Company otherwise
becomes subject to the reporting provisions of the Exchange Act, the Company shall deliver to each
Major Purchaser:

                    (i) within ninety (90) days after the end of each fiscal year of the Company, an audited
balance sheet of the Company as of the end of such year and audited statements of income and of
cash flows of the Company for such year, certified by certified public accountants of established
national reputation selected by the Company, and prepared in accordance with generally accepted
accounting principles consistently applied;

                    (ii) within thirty (30) days after the end of each fiscal quarter of the Company (other than
the fourth quarter), an unaudited balance sheet of the Company as of the end of such quarter, a
statement of stockholders’ equity, and unaudited statements of income

18

 

and of cash flows of the
Company for such fiscal quarter and for the current fiscal year to the end of such fiscal quarter;

                    (iii) within twenty (20) days after the end of each month, an unaudited balance sheet of the
Company as of the end of such month and unaudited statements of income and of cash flows of the
Company for such month and for the current fiscal year to the end of such month, setting forth in
comparative form the Company’s projected financial statements for the corresponding periods for the
current fiscal year;

                    (iv) at least thirty (30) days prior to the commencement of each new fiscal year, an operating
plan and budget, including monthly projections, for such fiscal year in the same format as the
financial statements (Board of Directors approval of the budget (which shall not be unreasonably
withheld) must be received no later than 10 days prior to the commencement of such fiscal year);

                    (v) within thirty (30) days after filing, copies of all material documents filed with
government agencies, other than documents filed primarily in connection with selling products or
services of the Company to such government agency;

                    (vi) within thirty (30) days after filing or service, pleadings of any material lawsuits filed
by or against the Company;

                    (vii) within ten (10) days after receipt, copies of any notices regarding any defaults on any
loans or material leases to which the Company is a party;

                    (viii) such other notices, information and data with respect to the Company as the Company
delivers to all of the holders of its capital stock at the same time it delivers such items to such
holders; and

                    (ix) with reasonable promptness, such other information and data as such Purchaser may from
time to time reasonably request.

               (b) The foregoing financial statements shall be prepared on a consolidated basis if the
Company then has any subsidiaries. The financial statements delivered pursuant to clauses (ii) and
(iii) shall be accompanied by a certificate of the chief financial officer of the Company stating
that such statements have been prepared in accordance with generally accepted accounting principles
consistently applied (except as noted) and fairly present the financial condition and results of
operations of the Company at the date thereof and for the periods covered thereby. At the request
of any Major Purchaser, the financial statements provided pursuant to Section 4.3(a)(ii) shall
contain a management discussion and analysis and a budget variance analysis.

          4.4 Material Changes and Litigation. The Company shall promptly notify the Major
Purchasers of any material change in the business, prospects, assets or condition, financial or
otherwise, of the Company and of any litigation or governmental proceeding or investigation brought
or, to the best of the Company’s knowledge, threatened against the Company, or against

19

 

any officer,
director, key employee or principal stockholder of the Company which, if adversely determined,
would have a material adverse effect on the business, prospects, assets or condition (financial or
otherwise) of the Company.

          4.5 Insurance.

               (a) The Company shall maintain term life insurance, naming the Company as the beneficiary,
upon the life of each of (i) E. Wayne Jackson, III, (ii) Thomas McDonough, and (iii) Martin Roesch,
in the minimum amount of at least $1,000,000. The cancellation of each policy will require the
prior approval of the Board of Directors.

               (b) The Company shall obtain and maintain, during the term of this Agreement, (i) director and
officer liability insurance with an underwriter and with terms acceptable to the Board of
Directors, with coverage limits of at least $3,000,000 per occurrence, and (ii) employment practice
liability insurance with an underwriter and with terms acceptable to the Board of Directors, with
coverage limits of at least $1,000,000 per occurrence. If requested by Purchasers holding at
majority of the Registrable Securities, the Company will add one designee of such Purchasers as a
notice party for such policy and shall request that the issuer of such policy provide such designee
with ten (10) days’ notice before such policy is terminated (for failure to pay premiums or
otherwise) or assigned or before any change is made in the beneficiary thereof.

               (c) The Company shall obtain and maintain, during the term of this Agreement, valid policies
of workers’ compensation insurance and of insurance with respect to its properties and business of
the kinds and in the amounts not less than is customarily obtained by corporations of established
reputation engaged in the same or similar business and similarly situated, including, without
limitation, insurance against loss, damage, fire, theft, public liability and other risks, all with
terms acceptable to the Board of Directors.

          4.6 Agreements with Employees; Recruitment.

               (a) The Company shall require (i) all persons now or hereafter employed by the Company, as a
condition to their employment, and (ii) all independent contractors utilized by the Company who
have access to confidential or proprietary information of the Company, as a condition to their
consulting relationship with the Company, to enter into an Assignment of Inventions,
Non-Disclosure, Non-Competition and Non-Solicitation Agreement substantially in the form of
Exhibit D to the Purchase Agreement, or such other form as may be approved by the Board of
Directors of the Company (including at least one of the Preferred Designees).

               (b) The Company agrees that it will not, without the prior written consent of the Board of
Directors (including at least one of the Preferred Designees) terminate, materially amend or waive
any material rights under any inventions, confidentiality, non-competition or restricted stock
agreement between the Company and any employees of the Company.

20

 

               (c) Unless otherwise approved by the Board of Directors of the Company (including the
affirmative vote of all of the Preferred Designees) all options or restricted stock granted or
issued by the Company shall become exercisable at the rate of twenty-five percent (25%) on the
first (1st) anniversary of grant or issue and two point zero eight three percent (2.083%) per month
thereafter over the subsequent three (3) years (for a 4 year total vesting) so long as the holder
continues to be an employee or consultant of the Company. Any acceleration of the vesting of such
options or restricted stock granted or issued by the Company (other than as set forth in the
Company’s 2002 Stock Incentive Plan) must be approved by the Board of Directors of the Company
(including all of the Preferred Designees). With respect to any shares of restricted stock issued
by the Company or any shares issued by the Company pursuant to an early exercise provision, the
Company’s repurchase option shall provide that upon such person’s termination of employment or
service with the Company, with cause, the Company or its assignee shall have the option to
purchase any unvested shares of stock held by such person at the lesser of cost or fair market
value.

          4.7 Board of Directors.

               (a) The Company shall promptly reimburse in full each director of the Company who is not an
employee of the Company for all of his or her reasonable out-of-pocket expenses incurred in
attending each meeting of the Board of Directors of the Company or any committee thereof.

               (b) The Board of Directors shall meet on at least a monthly basis, unless otherwise agreed by
a majority of the members of the Board of Directors.

               (c) The Audit Committee and Compensation Committee (together the “Committees”), previously
established by the Board of Directors shall continue to exist as currently structured and shall
continue to advise the Board of Directors in accordance with the charters adopted by the Board of
Directors for each such Committee.

          4.8 Related Party Transactions.

               (a) To the extent permitted under Delaware law, the Company shall not enter into any agreement
with any stockholder, officer or director of the Company, or any “affiliate” of such persons (as
such term is defined in the rules and regulations promulgated under the Securities Act), including
without limitation any agreement or other arrangement providing for the furnishing of services by,
rental of real or personal property from, or otherwise requiring payments to, any such person or
entity, without the consent of at least a majority of the members of the Company’s Board of
Directors having no interest in such agreement or arrangement.

               (b) The approval of the Board of Directors of the Company (including at least one of the
Preferred Designees) shall be required to (i) establish or increase the compensation of executive
officers of the Company, (ii) grant stock options to any officer of the Company or (iii) hire
individuals to serve as executive officers of the Company, provided that,

21

 

such actions may be
approved by a committee of the Board of Directors if the Board specifically delegates such
authority to any such committee.

          4.9 International Investment and Trade in Services Survey Act. The Company shall use
its best efforts to file on a timely basis all reports required to be filed by it under 22 U.S.C.
Section 3104, or any similar statute, relating to a foreign person’s direct or indirect investment
in the Company.

          4.10 Market Standoff. As a condition to the obligation of the Purchasers under
Section 2.8 above, the Company agrees to use its commercially reasonable efforts (a) to obtain a
similar market standoff agreement for each current and future stockholder, warrantholder or
optionholder of the Company and (b) to cause the “standoff” obligation of the Purchasers under
Section 2.8, and any agreement entered into by the Purchasers as a result of their obligations
under Section 2.8, to provide that all Purchasers subject to such “standoff” obligations will
participate on a pro-rata basis in any early release from the “standoff” obligations of any
stockholder, warrantholder or optionholder.

          4.11 Visitation Rights. The Company shall allow one representative designated by each
of NEA Partners 10, Limited Partnership, Sierra Ventures VIII, L.P., Inflection Point Ventures II,
L.P., Core Capital Partners, L.P., the Maryland Department of Business and Economic Development,
Sequoia Capital Franchise Fund (“Sequoia”) and Meritech Capital Partners III, L.P. to attend all
meetings of the Company’s Board of Directors and committees (including Executive Sessions, as
defined below) in a nonvoting capacity, and in connection therewith, the Company shall give such
representative copies of all notices, minutes, consents and other materials, financial or
otherwise, which the Company provides to its Board of Directors; provided, however, that the
Company reserves the right to invoke an executive session of the Board of Directors or committee
(an “Executive Session”). The Company reserves the right to withhold any information and to
exclude a representative from any Executive Session or portion thereof if access to such
information or attendance at such Executive Session could adversely affect the attorney-client
privilege between the Company and its counsel or would result in a conflict of interest with
respect to such information or Executive Session. The Company shall promptly reimburse the
representative designated by Meritech Capital Partners III, L.P. for all of his or her reasonable
out-of-pocket expenses incurred in attending each meeting of the Board of Directors of the Company
or any committee thereof.

          4.12 Company Meetings with Sequoia. Sequoia agrees that a partnership group
representing Sequoia will meet with the executive management of the Company on a quarterly basis at
Sequoia’s headquarters, or at such other place agreed to by the parties, so long as Sequoia owns
shares of Series C Preferred Stock or Common Stock issued as a result of the conversion of its
Series C Preferred Stock. The purpose of such quarterly meetings will be for the Company to
provide Sequoia with financial updates and for Sequoia and the Company to discuss strategic
planning and other general business matters.

          4.13 Approval of New Voting Stock. The Company will not (by amendment of its Charter,
merger, consolidation or otherwise), without the affirmative written consent of Sequoia and
Meritech, (a) take any action that results in the Common Stock of the Company, or

22

 

any series of
Common Stock that may from time to time be created, having voting rights greater than one (1) vote
per share, (b) take any action that results in any share of Preferred Stock of the Company (whether
now existing or hereafter created) having less than one (1) vote for each share of Common Stock
into which such share of Preferred Stock is then convertible or (c) authorize or issue, or obligate
itself to issue, any other security of the Company (including any security convertible into or
exercisable for any Common Stock or Preferred Stock of the Company) having voting rights greater
than one (1) vote for each share of Common Stock into which such security is convertible.

          4.14 Repurchases of Stock. In connection with any repurchases of capital stock of the
Company, including capital stock held by the Company’s officers, the Company shall comply with any
and all applicable laws and regulations, including the provisions of Sections 170 and 173 of the
Delaware General Corporation Law regarding the payment of dividends. Such shares of capital stock
shall be retired and cancelled and may not be reissued.

          4.15 Termination of Covenants. All covenants of the Company contained in this Section
4 shall terminate upon the earlier of the closing of a Company Sale or the closing of a Qualifying
Public Offering.

     5. Confidentiality. Each Purchaser agrees that he, she or it will keep confidential
and will not disclose, divulge or use for any purpose, other than to monitor its investment in the
Company, any Confidential Information, unless such Confidential Information (i) is known or becomes
known to the public in general (other than as a result of a breach of this Section 5 by such
Purchaser), (ii) is or has been independently developed or conceived by the Purchaser without use
of the Company’s Confidential Information or (iii) is or has been made known or disclosed to the
Purchaser by a third party without a breach of any obligation of confidentiality such third party
may have to the Company; provided, however, that a Purchaser may disclose
Confidential Information (a) to its attorneys, accountants, consultants, and other professionals to
the extent necessary to obtain their services in connection with monitoring its investment in the
Company as long as such professional is made aware of the provisions of this Section 5, (b) to any
prospective purchaser of any Preferred Stock from such Purchaser as long as such prospective
purchaser agrees to be bound by the provisions of this Section 5, (c) to any affiliate, partner,
retired partner, limited partner, member, stockholder, wholly owned subsidiary or parent of such
Purchaser or (d) as may otherwise be required by law, provided that the Purchaser takes reasonable
steps to minimize the extent of any such required disclosure.

     6. Transfers of Rights; Calculation of Share Numbers.

          6.1 This Agreement, and the rights and obligations of each Purchaser hereunder, may be
assigned by such Purchaser to any person or entity to which shares of Preferred Stock or
Registrable Shares are transferred by such Purchaser; provided, however, that the
rights to cause the Company to register Registrable Securities pursuant to Section 2 may only be
assigned by a holder of Registrable Securities (a “Holder”) to a transferee or assignee of
Registrable Securities that (a) is a subsidiary, parent, general partner, limited partner, retired
partner, member or retired member, or stockholder of such Holder, (b) is a Holder’s ancestor or
descendent or a trust, limited partnership or limited liability company for the benefit of an

23

 

individual Holder, (c) acquires at least five hundred thousand (500,000) shares of Registrable
Securities (as adjusted for any stock dividends, combinations, splits, recapitalizations and the
like after the filing of the Charter), or (d) is an entity affiliated by common control (or other
related entity) with such Holder provided, further, that (i) the transferor shall,
within ten (10) days after such transfer, furnish to the Company written notice of the name and
address of such transferee or assignee and the securities with respect to which such registration
rights are being assigned and (ii) such transferee shall agree to be subject to all restrictions
set forth in this Agreement. Such transferee shall be deemed a “Purchaser” for purposes of this
Agreement; provided, however, that such assignment of rights shall be contingent
upon the transferee providing a written instrument to the Company notifying the Company of such
transfer and assignment and agreeing in writing to be bound by the terms of this Agreement.

          6.2 In determining the number of shares of Preferred Stock or Registrable Shares owned by a
Purchaser for purposes of exercising rights under this Agreement, (a) Preferred Stock owned by a
Purchaser shall be deemed to include Preferred Stock which has been converted into Common Stock so
long as such Common Stock is owned by such Purchaser, (b) all Registrable Shares or Preferred Stock
held or acquired by Core Capital Partners, L.P. and Minotaur, LLC shall be aggregated together for
purposes of determining the rights of each under this agreement (subject to the definition of
Registrable Securities and (c) all Preferred Stock held by affiliated entities or persons shall be
aggregated together (provided that no shares shall be attributed to more than one entity or person
within any such group of affiliated entities or persons).

     7. General.

          7.1 Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

          7.2 Specific Performance. In addition to any and all other remedies that may be
available at law in the event of any breach of this Agreement, each Purchaser shall be entitled to
specific performance of the agreements and obligations of the Company hereunder and to such other
injunctive or other equitable relief as may be granted by a court of competent jurisdiction.

          7.3 Governing Law. This Agreement shall be governed by and construed in accordance
with the internal laws of the State of Delaware (without reference to the conflicts of law
provisions thereof). THE PARTIES TO THIS AGREEMENT HEREBY WAIVE THEIR RIGHT TO A TRIAL BY JURY
WITH RESPECT TO DISPUTES ARISING UNDER THIS AGREEMENT AND THE RELATED AGREEMENTS AND CONSENT TO A
BENCH TRIAL WITH THE APPROPRIATE JUDGE ACTING AS THE FINDER OF FACT.

          7.4 Notices. All notices, requests, consents, and other communications under this
Agreement shall be in writing and shall be deemed delivered (a) upon personal delivery to the party
to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal
business hours of the recipient, if not, then on the next business day, (c) five (5) days after
having been sent by registered or certified mail, return receipt requested, postage prepaid,

24

 

or (d)
one (1) day after deposit with a nationally recognized overnight courier, specifying next day
delivery, with written verification of receipt, in each case to the intended recipient as set forth
below:

     If to the Company, at Sourcefire, Inc., 9770 Patuxent Woods Drive, Columbia, MD 21046,
Attention: General Counsel and Chief Financial Officer, or at such other address as may have been
furnished in writing by the Company to the other parties hereto, with a copy to Morrison & Foerster
LLP, 1650 Tysons Boulevard, Suite 300, McLean, Virginia 22102, Attention: Thomas J. Knox, Esq.;
and

     If to a Purchaser, at its address set forth on Exhibit A or Exhibit B, as
applicable, or at such other address as may have been furnished in writing by such Purchaser to the
other parties hereto, with copies to (i) Latham & Watkins LLP, 140 Scott Drive, Menlo Park,
California 94025, Attention: Mark V. Roeder, Esq., (ii) Weil, Gotshal & Manges LLP, 201 Redwood
Shores Parkway, Redwood Shores, California 94065, Attention: Richard S. Millard, Esq. and (iii)
Cooley Godward LLP, 11951 Freedom Drive, Reston, Virginia 20190, Attention: Michael R. Lincoln,
Esq.

          7.5 Complete Agreement. This Agreement constitutes the entire agreement and
understanding of the parties hereto with respect to the subject matter hereof and supersedes all
prior agreements and understandings relating to such subject matter.

          7.6 Amendments and Waivers. Except as set forth in Section 2.9 of this Agreement,
this Agreement may be amended or terminated and the observance of any term of this Agreement may be
waived with respect to all parties to this Agreement (either generally or in a particular instance
and either retroactively or prospectively), with the written consent of (a) the Company, (b) the
holders of at least two-thirds of the Registrable Shares then outstanding held by all Series A
Purchasers, (c) the holders of at least sixty percent (60%) of the Registrable Shares then
outstanding held by all Series B Purchasers, (d) the holders of at least a majority of the
Registrable Shares then outstanding held by all Series C Purchasers, and (e) the holders of at
least a majority of the Registrable Shares then outstanding held by all Series D Purchasers;
provided, however, the rights set forth in Section 4.11 and 4.13 may only be
amended or waived as to a particular Purchaser by the prior written consent of such Purchaser;
provided further, that the rights set forth in Section 4.2, 4.3 and 4.4 may only be amended
or waived as to a particular Major Purchaser by the prior written consent of such Major Purchaser;
provided further, the prior written consent of Meritech shall be required for an amendment
or modification to Section 1 and any amendment or modification which, by its express terms, is (a)
applicable to Meritech and (b) not applicable to all other Purchasers in a like or similar manner.
The Company shall give prompt written notice of any amendment or termination hereof or waiver
hereunder to any party hereto that did not consent in writing to such amendment, termination or
waiver. Any amendment, termination or waiver effected in accordance with this Section 7.6 shall be
binding on all parties hereto, even if they do not execute such consent. No waivers of or
exceptions to any term, condition or provision of this Agreement, in any one or more instances,
shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition
or provision.

25

 

          7.7 Pronouns. Whenever the context may require, any pronouns used in this Agreement
shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns
and pronouns shall include the plural, and vice versa.

          7.8 Counterparts; Facsimile Signatures. This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original, and all of which together shall
constitute one and the same document. This Agreement may be executed by facsimile signatures.

          7.9 Section Headings and References. The section headings are for the convenience of
the parties and in no way alter, modify, amend, limit or restrict the contractual obligations of
the parties. Any reference in this agreement to a particular section or subsection shall refer to
a section or subsection of this Agreement, unless specified otherwise.

          7.10 Attorneys’ Fees. In the event that any suit or action is instituted under or in
relation to this Agreement, including without limitation to enforce any provision in this
Agreement, the prevailing party in such dispute shall be entitled to recover from the losing party
all fees, costs and expenses of enforcing any right of such prevailing party under or with respect
to this Agreement, including without limitation, such reasonable fees and expenses of attorneys and
accountants, which shall include, without limitation, all fees, costs and expenses of appeals.

          7.11 Amendment of Prior Agreement. The Prior Agreement is hereby amended and
superseded in its entirety and restated herein. All provisions of, rights granted and covenants
made in the Prior Agreement are hereby waived, released and superseded in their entirety and shall
have no further force or effect.

[Signature Page Follows]

26

 

     IN WITNESS WHEREOF, this Fourth Amended and Restated Investor Rights Agreement has been
executed by the parties hereto as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	SOURCEFIRE, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ E. Wayne Jackson, III	 	 
	 

	 	Name:
	 	 

E. Wayne Jackson, III
	 	 
	 

	 	Title:
	 	Chief Executive Officer	 	 

Foruth Amended and Restated Investor Rights Agreement

 

 

	 	 	 	 	 	 	 
	 	 	SERIES D PURCHASERS:	 	 
	 
	 	 	 	 	 	 
	 	 	Meritech Capital Partners III L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Meritech Capital Associates III L.L.C. its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Meritech Management Associates III L.L.C.
a managing member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael B. Gordon	 	 
	 

	 	 	 	 

Michael B. Gordon, a managing member
	 	 
	 
	 	 	 	 	 	 
	 	 	Meritech Capital Affiliates III L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Meritech Capital Associates III L.L.C.
its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Meritech Management Associates III L.L.C.
a managing member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael B. Gordon	 	 
	 

	 	 	 	 

Michael B. Gordon, a managing member
	 	 

Foruth Amended and Restated Investor Rights Agreement

 

 

	 	 	 	 	 	 	 
	 	 	SERIES D PURCHASERS:	 	 
	 
	 	 	 	 	 	 
	 	 	SEQUOIA CAPITAL FRANCHISE FUND

SEQUOIA CAPITAL FRANCHISE PARTNERS	 	 
	 
	 	 	 	 	 	 
	 	 	By: SCFF Management, LLC

a Delaware Limited Liability Company

General Partner of Each	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Moritz	 	 
	 

	 	 	 	 

Managing Member
	 	 

Foruth Amended and Restated Investor Rights Agreement

 

 

	 	 	 	 	 	 	 
	 	 	NEW ENTERPRISE ASSOCIATES 10, LIMITED PARTNERSHIP	 	 
	 
	 	 	 	 	 	 
	 	 	By: NEA Partners 10, Limited Partnership	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Charles W. Newhall
III	 	 
	 

	 	 
	 	 

	 	 
	 

	 	Name:
	 	Charles W. Newhall III	 	 
	 

	 	Title:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	MARK A. FRANTZ	 	 

Fourth Amended and Restated Investor Rights Agreement

 

 

	 	 	 	 	 	 	 
	 	 	SIERRA VENTURES VIII-A, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Tim Guleri	 	 
	 

	 	Name:
	 	 

Tim Guleri
	 	 
	 

	 	Title:
	 	Manager	 	 
	 	 	on behalf of Sierra Ventures Associates VIII, LLC the
General Partner of Sierra Ventures VIII-A, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	SIERRA VENTURES VIII-B, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Tim Guleri	 	 
	 

	 	Name:
	 	 

Tim Guleri
	 	 
	 

	 	Title:
	 	Manager	 	 
	 	 	on behalf of Sierra Ventures Associates VIII, LLC
the General Partner of Sierra Ventures VIII-B, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	SIERRA VENTURES ASSOCIATES VIII, L.L.C.,	 	 
	 	 	 as nominee for its members:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Tim Guleri	 	 
	 

	 	Name:
	 	 

Tim Guleri
	 	 
	 

	 	Title:
	 	Manager	 	 
	 
	 	 	 	 	 	 
	 	 	SIERRA VENTURES VII, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ David C. Schwab	 	 
	 

	 	Name:
	 	 

David C. Schwab
	 	 
	 

	 	Title:
	 	Manager	 	 
	 
	 	 	 	 	 	 
	 	 	on behalf of Sierra Ventures Associates VII, LLC the
General Partner of Sierra Ventures VII, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	SIERRA VENTURES ASSOCIATES VII, L.L.C.,	 	 
	 	 	 as nominee for its members	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ David C. Schwab	 	 
	 

	 	Name:
	 	 

David C. Schwab
	 	 
	 

	 	Title:
	 	Manager	 	 

Foruth Amended and Restated Investor Rights Agreement

 

 

	 	 	 	 	 	 	 
	 	 	CORE CAPITAL PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ Pascal Luck
	 	 
	 

	 	Name:	 	Pascal Luck
	 	 
	 

	 	Title:	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	MINOTAUR LLC	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ Mark Levine
	 	 	 	 
	 

	 	Name:
	 	Mark Levine	 	 
	 

	 	Title:	 	Managing Member	 	 
	 
	 	 	 	 	 	 
	 	 	MINOTAUR ANNEX LLC	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ Mark Levine
	 	 	 	 
	 

	 	Name:	 	Mark Levine	 	 
	 

	 	Title:	 	Managing Member	 	 
	 
	 	 	 	 	 	 
	 	 	INFLECTION POINT VENTURES, L.P.

By: Inflection Point Associates, L.P.	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Timothy Webb	 	 
	 	 	By: Inflection Point Management, LLC

Its: General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	Timothy Webb	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	Authorized Manager	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	INFLECTION POINT VENTURES II, L.P.	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Timothy Webb	 	 
	 	 	By: Inflection Point SBIC Associates LLC	 	 
	 	 	Its: General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	Timothy Webb	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	Authorized Manager	 	 
	 

	 	 	 	 

	 	 

Foruth Amended and Restated Investor Rights Agreement

 

 

	 	 	 	 	 	 	 
	 	 	SERIES C PURCHASERS:	 	 
	 
	 	 	 	 	 	 
	 	 	SEQUOIA CAPITAL FRANCHISE FUND

SEQUOIA CAPITAL FRANCHISE PARTNERS	 	 
	 
	 	 	 	 	 	 
	 	 	By: SCFF Management, LLC	 	 
	 	 	 a Delaware Limited Liability Company	 	 
	 	 	 General Partner of Each	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Douglas Leone	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	NEW ENTERPRISE ASSOCIATES 10, LIMITED
  PARTNERSHIP	 	 
	 
	 	 	 	 	 	 
	 	 	By: NEA Partners 10, Limited Partnership	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Charles W. Newhall	 	 
	 

	 	Name:
	 	 

Charles W. Newhall	 	 
	 

	 	Title:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	BIG BASIN PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Frank Marshall
	 	 
	 

	 	Its:
	 	General Partner	 	 

Foruth Amended and Restated Investor Rights Agreement

 

 

	 	 	 	 	 	 	 
	 	 	SIERRA VENTURES VII, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ David C. Schwab	 	 
	 

	 	Name:
	 	 

David C. Schwab
	 	 
	 

	 	Title:
	 	Manager	 	 
	 
	 	 	 	 	 	 
	 	 	on behalf of Sierra Ventures Associates VII, L.L.C.,	 	 
	 	 	the General Partner of Sierra Ventures VII, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	SIERRA VENTURES VIII-A, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Tim Guleri	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:
	 	Tim Guleri	 	 
	 

	 	Title:
	 	Manager	 	 
	 
	 	 	 	 	 	 
	 	 	on behalf of Sierra Ventures Associates VIII, L.L.C.,	 	 
	 	 	the General Partner of Sierra Ventures VIII-A, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	SIERRA VENTURES VIII-B, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Tim Guleri	 	 
	 

	 	Name:
	 	 

Tim Guleri
	 	 
	 

	 	Title:
	 	Manager	 	 
	 
	 	 	 	 	 	 
	 	 	on behalf of Sierra Ventures Associates VIII, L.L.C.,	 	 
	 	 	the General Partner of Sierra Ventures VIII-B, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	SIERRA VENTURES ASSOCIATES VII, L.L.C.,	 	 
	 	 	  as nominee for its members	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ David C. Schwab	 	 
	 

	 	Name:
	 	 

David C. Schwab
	 	 
	 

	 	Title:
	 	Manager	 	 
	 
	 	 	 	 	 	 
	 	 	SIERRA VENTURES ASSOCIATES VIII, L.L.C.,	 	 
	 	 	  as nominee for its members	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Tim Guleri	 	 
	 

	 	Name:
	 	 

Tim Guleri
	 	 
	 

	 	Title:
	 	Manager	 	 

Foruth Amended and Restated Investor Rights Agreement

 

 

	 	 	 	 	 	 	 
	 	 	CORE CAPITAL PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Pascal Luck	 	 
	 

	 	Name:
	 	 

Pascal Luck
	 	 
	 

	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	MINOTAUR FUNDS, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Mark Levine	 	 
	 

	 	Name:

Title:
	 	 

Mark Levine 

Managing Member
	 	 
	 
	 	 	 	 	 	 
	 	 	INFLECTION POINT VENTURES, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By: Inflection Point Associates, L.P.	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Timothy Webb	 	 
	 	 	By: Inflection Point Management LLC	 	 
	 	 	Its: General Partner	 	 
	 	 	Name: Timothy Webb	 	 
	 	 	Title: Authorized Manager	 	 
	 
	 	 	 	 	 	 
	 	 	INFLECTION POINT VENTURES II, L.P.	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Timothy Webb	 	 
	 	 	By: Inflection Point SBIC Associates LLC	 	 
	 	 	Its: General Partner	 	 
	 	 	Name: Timothy Webb	 	 
	 	 	Title: Authorized Manager	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ MARK A. FRANTZ	 	 
	 	 	MARK A. FRANTZ	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	FRANK A. BONSAL, JR.	 	 
	 
	 	 	 	 	 	 
	 	 	Asheem Chandna and Aarti Chandna, as	 	 
	 	 	Trustees of the Chandna Family Revocable	 	 
	 	 	Trust as of April 13, 1998	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ ASHEEM CHANDNA	 	 
	 

	 	 	 	 

ASHEEM CHANDNA
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ AARTI CHANDNA	 	 
	 

	 	 	 	 

AARTI CHANDNA
	 	 

Foruth Amended and Restated Investor Rights Agreement

 

 

	 	 	 	 	 	 	 
	 	 	SERIES B PURCHASERS:	 	 
	 
	 	 	 	 	 	 
	 	 	NEW ENTERPRISE
ASSOCIATES 10, LIMITED

  PARTNERSHIP	 	 
	 
	 	 	 	 	 	 
	 	 	By: NEA Partners 10, Limited Partnership	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Charles W. Newhall III
	 	 
	 

	 	Name:
	 	Charles W. Newhall III
	 	 
	 

	 	Title:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	NEA VENTURES 2003,
LIMITED 

  PARTNERSHIP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/
Pamela J. Clark
	 	 
	 

	 	Name:
	 	Pamela J. Clark
	 	 
	 

	 	Title:	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	BIG BASIN PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Frank Marshall
	 	 
	 

	 	Its:
	 	General Partner	 	 

Foruth Amended and Restated Investor Rights Agreement

 

 

	 	 	 	 	 	 	 
	 	 	SIERRA VENTURES VII, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ David C. Schwab	 	 
	 

	 	Name:
	 	 

David C. Schwab
	 	 
	 

	 	Title:
	 	Manager	 	 
	 
	 	 	 	 	 	 
	 	 	on behalf of Sierra Ventures Associates VII, L.L.C.,	 	 
	 	 	the General Partner of Sierra Ventures VII, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	SIERRA VENTURES VIII-A, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Tim Guleri	 	 
	 

	 	Name:
	 	 

Tim Guleri
	 	 
	 

	 	Title:
	 	Manager	 	 
	 
	 	 	 	 	 	 
	 	 	on behalf of Sierra Ventures Associates VIII, L.L.C.,	 	 
	 	 	the General Partner of Sierra Ventures VIII-A, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	SIERRA VENTURES VIII-B, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Tim Guleri	 	 
	 

	 	Name:
	 	 

Tim Guleri
	 	 
	 

	 	Title:
	 	Manager	 	 
	 
	 	 	 	 	 	 
	 	 	on behalf of Sierra Ventures Associates VIII, L.L.C.,	 	 
	 	 	the General Partner of Sierra Ventures VIII-B, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	SIERRA VENTURES ASSOCIATES VII, L.L.C.,	 	 
	 	 	  as nominee for its members	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ David C. Schwab	 	 
	 

	 	Name:
	 	 

David C. Schwab
	 	 
	 

	 	Title:
	 	Manager	 	 
	 
	 	 	 	 	 	 
	 	 	SIERRA VENTURES ASSOCIATES VIII, L.L.C.,	 	 
	 	 	  as nominee for its members	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Tim Guleri	 	 
	 

	 	Name:
	 	 

Tim Guleri
	 	 
	 

	 	Title:
	 	Manager	 	 

Foruth Amended and Restated Investor Rights Agreement

 

 

	 	 	 	 	 	 	 
	 	 	CORE CAPITAL PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Pascal Luck	 	 
	 

	 	Name:
	 	 

Pascal Luck
	 	 
	 

	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	MINOTAUR FUNDS, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Mark Levine	 	 
	 

	 	Name:
	 	 

Mark Levine
	 	 
	 

	 	Title:
	 	Managing Member	 	 
	 
	 	 	 	 	 	 
	 	 	INFLECTION POINT VENTURES, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By: Inflection Point Associates, L.P.	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Timothy Webb	 	 
	 	 	By: Inflection Point Management LLC	 	 
	 	 	Its: General Partner	 	 
	 	 	Name: Timothy Webb	 	 
	 	 	Title: Authorized Manager	 	 
	 
	 	 	 	 	 	 
	 	 	INFLECTION POINT VENTURES II, L.P.	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Timothy Webb	 	 
	 	 	By: Inflection Point SBIC Associates LLC	 	 
	 	 	Its: General Partner	 	 
	 	 	Name: Timothy Webb	 	 
	 	 	Title: Authorized Manager	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ MARK A. FRANTZ	 	 
	 	 	MARK A. FRANTZ	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	FRANK A. BONSAL, JR.	 	 

Foruth Amended and Restated Investor Rights Agreement

 

 

	 	 	 	 	 	 	 
	 	 	SERIES A PURCHASERS:	 	 
	 
	 	 	 	 	 	 
	 	 	SIERRA VENTURES VII, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ David C. Schwab	 	 
	 

	 	Name:
	 	 

David C. Schwab
	 	 
	 

	 	Title:
	 	Manager	 	 
	 
	 	 	 	 	 	 
	 	 	on behalf of Sierra Ventures Associates VII, L.L.C.,	 	 
	 	 	the General Partner of Sierra Ventures VII, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	SIERRA VENTURES VIII-A, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Tim Guleri	 	 
	 

	 	Name:
	 	 

Tim Guleri
	 	 
	 

	 	Title:
	 	Manager	 	 
	 
	 	 	 	 	 	 
	 	 	on behalf of Sierra Ventures Associates VIII, L.L.C.,	 	 
	 	 	the General Partner of Sierra Ventures VIII-A, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	SIERRA VENTURES VIII-B, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Tim Guleri	 	 
	 

	 	Name:
	 	 

Tim Guleri
	 	 
	 

	 	Title:
	 	Manager	 	 
	 
	 	 	 	 	 	 
	 	 	on behalf of Sierra Ventures Associates VIII, L.L.C.,	 	 
	 	 	the General Partner of Sierra Ventures VIII-B, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	SIERRA VENTURES ASSOCIATES VII, L.L.C.,	 	 
	 	 	  as nominee for its members	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ David C. Schwab	 	 
	 

	 	Name:
	 	 

David C. Schwab
	 	 
	 

	 	Title:
	 	Manager	 	 
	 
	 	 	 	 	 	 
	 	 	SIERRA VENTURES ASSOCIATES VIII, L.L.C.,	 	 
	 	 	  as nominee for its members	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Tim Guleri	 	 
	 

	 	Name:
	 	 

Tim Guleri
	 	 
	 

	 	Title:
	 	Manager	 	 

Foruth Amended and Restated Investor Rights Agreement

 

 

	 	 	 	 	 	 	 
	 	 	CORE CAPITAL PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Pascal Luck	 	 
	 

	 	Name:
	 	 

Pascal Luck
	 	 
	 

	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	MINOTAUR FUNDS, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Mark Levine	 	 
	 

	 	Name:
	 	 

Mark Levine
	 	 
	 

	 	Title:
	 	Managing Member	 	 
	 
	 	 	 	 	 	 
	 	 	INFLECTION POINT VENTURES, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By: Inflection Point Associates, L.P.	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	/s/
Timothy Webb	 	 
	 	 	By: Inflection Point Management LLC	 	 
	 	 	Its: General Partner	 	 
	 	 	Name: Timothy Webb	 	 
	 	 	Title: Authorized Manager	 	 
	 
	 	 	 	 	 	 
	 	 	INFLECTION POINT VENTURES II, L.P.	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	/s/
Timothy Webb	 	 
	 	 	By: Inflection Point SBIC Associates LLC	 	 
	 	 	Its: General Partner	 	 
	 	 	Name: Timothy Webb	 	 
	 	 	Title: Authorized Manager	 	 
	 
	 	 	 	 	 	 
	 	 	MARYLAND DEPARTMENT OF BUSINESS AND ECONOMIC DEVELOPMENT	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Aris Melissaratos	 	 
	 

	 	Name:
	 	 

Aris Melissaratos
	 	 
	 

	 	Its:
	 	Secretary	 	 

Foruth Amended and Restated Investor Rights Agreement

 

 

	 	 	 	 	 	 	 
	 	 	BIG BASIN PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Frank Marshall
	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	Asheem Chandna and Aarti Chandna, as	 	 
	 	 	Trustees of the Chandna Family Revocable	 	 
	 	 	Trust as of April 13, 1998	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ ASHEEM CHANDNA	 	 
	 

	 	 	 	 

ASHEEM CHANDNA
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ AARTI CHANDNA	 	 
	 

	 	 	 	 

AARTI CHANDNA
	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	/s/
E. WAYNE JACKSON, III	 	 
	 	 	E. WAYNE JACKSON, III	 	 

Foruth Amended and Restated Investor Rights Agreement

 

 

EXHIBIT A

List of Series A Purchasers, Series B Purchasers and Series C Purchasers

Name and Address

Sequoia Capital Franchise Fund &

Sequoia Capital Franchise Partners

3000 Sand Hill Road

Building 4, Suite 180

Menlo Park, California 94025

Sierra Ventures VII, L.P.

Sierra Ventures VIII-A, L.P.

Sierra Ventures VIII-B, L.P.

Sierra Ventures Associates VII, LLC, as nominee for its members

Sierra Ventures Associates VIII, LLC, as nominee for its members

Attn: Tim Guleri

2884 Sand Hill Road, Suite 100

Menlo Park, CA 94025

Core Capital Partners, L.P.

Minotaur Funds, LLC

Attn: Pascal Luck

901 15th Street, NW

Suite 950

Washington, DC 20005

E. Wayne Jackson, III

6608 Corina Court

Columbia, MD 21044

Inflection Point Ventures II, L.P.

Inflection Point Ventures, L.P.

c/o Diane Messick

Delaware Technology Park

15 Innovation Way, Suite 280

Newark, DE 19711

Maryland Department of Business and Economic Development

217 E. Redwood Street

22nd Floor

Baltimore, MD 21202

Attn: Elizabeth Good

 

 

Big Basin Partners, L.P.

14585 Big Basin Way

Saratoga, CA 95070

Attn: Frank Marshall

Asheem Chandna and Aarti Chandna, Trustees of the

Chandna Family Revocable Trust of April 13, 1998

Attn: Asheem Chandna

1905 Oak Avenue

Menlo Park, California 94025

Mark A. Frantz

In-Q-Tel Inc.

P.O. Box 12407

Arlington, VA 22219

Frank A. Bonsal, Jr.

1119 St. Paul Street

Baltimore, MD 21202

 

 

EXHIBIT B

List of Series D Purchasers

Name and Address

Meritech Capital Partners III, L.P.

285 Hamilton Avenue

Suite 200

Palo Alto, CA 94301

Meritech Capital Affiliates III L.P.

285 Hamilton Avenue

Suite 200

Palo Alto, CA 94301

Sequoia Capital Franchise Fund &

Sequoia Capital Franchise Partners

3000 Sand Hill Road

Building 4, Suite 180

Menlo Park, California 94025

New Enterprise Associates 10, Limited Partnership

Attn: Harry Weller

11951 Freedom Drive, Suite 1200

Reston, Virginia 20190

with a copy to:

New Enterprise Associates 10, Limited Partnership

Attn: Louis Citron

1119 St. Paul Street

Baltimore, MD 21202

 

 

Sierra Ventures VII, L.P.

Sierra Ventures VIII-A, L.P.

Sierra Ventures VIII-B, L.P.

Sierra Ventures Associates VII, LLC, as nominee for its members

Sierra Ventures Associates VIII, LLC, as nominee for its members

Attn: Tim Guleri

2884 Sand Hill Road, Suite 100

Menlo Park, CA 94025

Core Capital Partners, L.P.

Minotaur LLC

Minotaur Annex Fund, LLC

Attn:      Pascal Luck

              Mark Levine

901 15th Street, NW

Suite 950

Washington, DC 20005

Inflection Point Ventures II, L.P.

Inflection Point Ventures, L.P.

c/o Diane Messick

Delaware Technology Park

15 Innovation Way, Suite 280

Newark, DE 19711

Mark A. Frantz

In-Q-Tel Inc.

P.O. Box 12407

Arlington, VA 22219

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]