Document:

EX-10.24

 Exhibit 10.24 

SEVERANCE AND CHANGE IN CONTROL AGREEMENT 

This Severance and Change in Control Agreement (this “Agreement”) is made as of September 26, 2014 by and between Sage Therapeutics,
Inc., a Delaware corporation (the “Company”), and Thomas Anderson (the “Executive”) and shall become effective on the date of the effectiveness of the Company’s registration statement on Form S-1 under the Securities
Exchange Act of 1933, as amended. 
 1. Purpose. The Company considers it essential to the best interests of its stockholders
to promote and preserve the continuous employment of key management personnel. The Board of Directors of the Company (the “Board”) recognizes that, as is the case with many corporations, the possibility of a Change in Control (as defined
in Section 2 hereof) exists and that such possibility, and the uncertainty and questions that it may raise among management, may result in the departure or distraction of key management personnel to the detriment of the Company and its
stockholders. Therefore, the Board has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members of the Company’s key management, including the Executive, to their assigned
duties without distraction, including in the face of potentially disturbing circumstances arising from the possibility of a Change in Control. Nothing in this Agreement shall be construed to affect the at-will nature of the employment relationship,
the Executive shall not have any right to be retained in the employ of the Company. 
 2. Change in Control. A
“Change in Control” shall be deemed to have occurred upon the occurrence of any one of the following events: (a) the sale of all or substantially all of the assets of the Company on a consolidated basis to an unrelated person or
entity, (b) a merger, reorganization or consolidation pursuant to which the holders of the Company’s outstanding voting power and outstanding stock immediately prior to such transaction do not own a majority of the outstanding voting power
and outstanding stock or other equity interests of the resulting or successor entity (or its ultimate parent, if applicable) immediately upon completion of such transaction, (c) the sale of all of the stock of the Company to an unrelated
person, entity or group thereof acting in concert, or (d) any other transaction in which the owners of the Company’s outstanding voting power immediately prior to such transaction do not own at least a majority of the outstanding voting
power of the Company or any successor entity immediately upon completion of the transaction other than as a result of the acquisition of securities directly from the Company. 

3. Terminating Event. 

A “Terminating Event” shall mean any of the events provided in this Section 3: 

(a) Termination by the Company. Termination by the Company of the employment of the Executive with the Company for any
reason other than for Cause, death or Disability. For purposes of this Agreement, “Cause” shall mean, as determined by the Company in good faith: 

 (i) the indictment the Executive of any felony, any crime involving the Company,
or any crime involving fraud, moral turpitude or dishonesty; 
 (ii) any unauthorized use or disclosure of the Company’s
proprietary information which has an adverse effect on the Company’s business or reputation. As used in this paragraph, “Proprietary Information” means any information in whatever form, tangible or intangible, related to the business
of the Company unless the information is publicly available in hard copy or electronic format, through lawful means; 
 (iii)
any intentional misconduct or gross negligence on the Executive’s part which has a materially adverse effect on the Company’s business or reputation; or 

(iv) the Executive’s repeated and willful failure to perform the duties, functions and responsibilities of the
Executive’s position after a written warning from the Company. 
 A Terminating Event shall not be deemed to have occurred pursuant to
this Section 3(a) solely as a result of the Executive becoming an employee of any direct or indirect successor to the business or assets of the Company, rather than continuing as an employee of the Company following a Change in Control. For
purposes hereof, the Executive will be considered “Disabled” if, as a result of the Executive’s incapacity due to physical or mental illness, the Executive shall have been absent from his duties to the Company on a full-time basis for 180 calendar days in the aggregate in any 12-month period. 
 (b)
Termination by the Executive for Good Reason. Termination by the Executive of the Executive’s employment with the Company for Good Reason. For purposes of this Agreement, “Good Reason” shall mean that the Executive has complied
with the “Good Reason Process” (hereinafter defined) following, the occurrence of any of the following events: 

(i) a material diminution in the Executive’s responsibilities, authority or duties; 

(ii) a material diminution in the Executive’s base salary except for across-the-board salary reductions based on the
Company’s financial performance similarly affecting all or substantially all senior management employees of the Company; 

(iii) a material change, defined as miles or more, in the geographic location at which the Executive is required to provides
services to the Company, not including business travel and short-term assignments; or 
 (iv) a material breach of this
Agreement by the Company. 
 “Good Reason Process” shall mean that (i) the Executive reasonably determines in good faith that
a “Good Reason” condition has occurred; (ii) the Executive notifies the Company in writing of the first occurrence of the Good Reason condition within 60 days of the first occurrence of such condition; (iii) the Executive
cooperates in good faith with the Company’s efforts, for a period not less than 30 days following such notice (the “Cure Period”), to remedy 

  
 2 

 
the condition; (iv) notwithstanding such efforts, the Good Reason condition continues to exist; and (v) the Executive provides a Notice of Termination to the Company within 60 days
after the end of the Cure Period. If the Company cures the Good Reason condition during the Cure Period, Good Reason shall be deemed not to have occurred. 

4. Change in Control Payment. In the event a Terminating Event occurs on or within the 12 months immediately after a Change in
Control (such 12-month period, the “Change in Control Period”), subject to the Executive signing a separation agreement containing, among other provisions, a general release of claims in favor of the Company and related persons and
entities, confidentiality, return of property and non-disparagement, in the form attached hereto as Attachment A (the “Separation Agreement and Release”) and the Separation Agreement and Release becoming irrevocable, all within 60 days
after the Date of Termination or end of the Cure Period , the following shall occur 
 (a) the Company shall pay to
the Executive an amount equal to the sum of (i) 9 months of the Executive’s annual base salary in effect immediately prior to the Terminating Event (or the Executive’s annual base salary in effect immediately prior to the Change in
Control, if higher), and (ii) a pro rata portion of the Executive’s target bonus for the fiscal year in which the termination of employment occurs, determined by multiplying the target bonus by a fraction, the numerator of which shall be
the number of days during the fiscal year in which the Executive was employed by the Company and the denominator of which shall be 365; 

(b) if the Executive was participating in the Company’s group health plan immediately prior to the Date of Termination and
elects COBRA health continuation , then the Company shall pay to the Executive a lump sum payment, in an amount equal to 12 times the monthly employer contribution that the Company would have made to provide health insurance to the Executive if the
Executive had remained employed by the Company; 
 (c) notwithstanding anything to the contrary in any applicable option
agreement or stock-based award agreement, all stock options and other stock-based awards with time-based vesting held by the Executive shall immediately accelerate and become fully exercisable and nonforfeitable as of the Executive’s Date of
Termination conditioned upon the Separation Agreement and Release becoming irrevocable; and 
 (d) the amounts payable under
this Section 4 shall be paid out in a lump sum commencing within 60 days after the Date of Termination; provided, however, that if the 60-day period begins in one calendar year and ends in a second calendar year, the amounts shall be paid in
the second calendar year by the last day of such 60-day period. All other wages earned, including, but not limited to, accrued vacation, to the Date of Termination shall be paid on the Date of Termination. 

5. Severance Outside the Change in Control Period. In the event a Terminating Event occurs at any time other than during the
Change in Control Period, subject to the Executive signing the Separation Agreement and Release and the Separation Agreement and Release becoming irrevocable, all within 60 days after the Date of Termination, the following shall occur: 

  
 3 

 (a) the Company shall pay to the Executive an amount equal to 12 months times the
Executive’s annual base salary in effect immediately prior to the Terminating Event; 
 (b) if the Executive was
participating in the Company’s group health plan immediately prior to the Date of Termination and elects COBRA health continuation, then the Company shall pay to the Executive a monthly cash payment for 12 months in an amount equal to the
monthly employer contribution that the Company would have made to provide health insurance to the Executive if the Executive had remained employed by the Company; and 

(c) the amounts payable under this Section 5 shall be paid out in substantially equal installments in accordance with the
Company’s payroll practice over 12 months commencing within 60 days after the Date of Termination; provided, however, that if the 60-day period begins in one calendar year and ends in a second calendar year, the Severance Amount shall begin to
be paid in the second calendar year by the last day of such 60-day period; provided, further, that the initial payment shall include a catch-up payment to cover amounts retroactive to the day immediately following the Date of Termination. Each
payment pursuant to this Agreement is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2). 

6. Additional Limitation. 

(a) Anything in this Agreement to the contrary notwithstanding, in the event that the amount of any compensation, payment or
distribution by the Company to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, calculated in a manner consistent with Section 280G of the Code
and the applicable regulations thereunder (the “Compensatory Payments”), would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), (or any successor provision),
then the Compensatory Payments shall be reduced so that the sum of all of the Compensatory Payments shall be $1.00 less than the amount at which the Executive becomes subject to the excise tax imposed by Section 4999 of the Code (or any
successor provision); provided that such reduction shall only occur if it would result in the Executive receiving a higher After Tax Amount (as defined below) than the Executive would receive if the Compensatory Payments were not subject to such
reduction. In such event, the Compensatory Payments shall be reduced in the following order, in each case, in reverse chronological order beginning with the Compensatory Payments that are to be paid the furthest in time from consummation of the
transaction that is subject to Section 280G of the Code: (i) cash payments not subject to Section 409A of the Code; (ii) cash payments subject to Section 409A of the Code; (iii) equity-based payments and acceleration;
and (iv) non-cash forms of benefits; provided that in the case of all the foregoing Compensatory Payments all amounts or payments that are not subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c) shall be reduced
before any amounts that are subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c). 
 (b) For
purposes of this Section 6, the “After Tax Amount” means the amount of the Compensatory Payments less all federal, state, and local income, excise and employment taxes imposed on the Executive as a result of the Executive’s
receipt of the Compensatory Payments. For purposes of determining the After Tax Amount, the Executive shall be deemed to 

  
 4 

 
pay federal income taxes at the highest marginal rate of federal income taxation applicable to individuals for the calendar year in which the determination is to be made, and state and local
income taxes at the highest marginal rates of individual taxation in each applicable state and locality, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes. 

(c) The determination as to whether a reduction in the Compensatory Payments shall be made pursuant to Section 6(a) shall
be made by an accounting firm selected by the Company (the “Accounting Firm”), which shall provide detailed supporting calculations both to the Company and the Executive within 15 business days of the Date of Termination, if applicable, or
at such earlier time as is reasonably requested by the Company or the Executive. Any determination by the Accounting Firm shall be binding upon the Company and the Executive. 

7. Section 409A. 

(a) Anything in this Agreement to the contrary notwithstanding, if at the time of the Executive’s “separation from
service” within the meaning of Section 409A of the Code, the Company determines that the Executive is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or
benefit that the Executive becomes entitled to under this Agreement on account of the Executive’s separation from service would be considered deferred compensation subject to the 20 percent additional tax imposed pursuant to
Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall not be provided until the date that is the earlier of (A) six months and one
day after the Executive’s separation from service, or (B) the Executive’s death. 
 (b) The parties intend
that this Agreement will be administered in accordance with Section 409A of the Code. To the extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a
manner so that all payments hereunder comply with Section 409A of the Code. The parties agree that this Agreement may be amended, as reasonably requested by either party, and as may be necessary to fully comply with Section 409A of the
Code and all related rules and regulations in order to preserve the payments and benefits provided hereunder without additional cost to either party. 

(c) All in-kind benefits provided and expenses eligible for reimbursement under this Agreement shall be provided by the Company
or incurred by the Executive during the time periods set forth in this Agreement. All reimbursements shall be paid as soon as administratively practicable, but in no event shall any reimbursement be paid after the last day of the taxable year
following the taxable year in which the expense was incurred. The amount of in-kind benefits provided or reimbursable expenses incurred in one taxable year shall not affect the in-kind benefits to be provided or the expenses eligible for
reimbursement in any other taxable year. Such right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit. 

  
 5 

 (d) To the extent that any payment or benefit described in this Agreement
constitutes “non-qualified deferred compensation” under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the Executive’s termination of employment, then such payments or benefits shall be
payable only upon the Executive’s “separation from service.” The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions set forth in Treasury Regulation
Section 1.409A-1(h). 
 (e) The Company makes no representation or warranty and shall have no liability to the Executive
or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an exemption from, or the conditions of, such Section. 

8. Term. This Agreement shall take effect on the date first set forth above and shall terminate upon the earlier of (a) the
termination of the Executive’s employment with the Company for any reason other than the occurrence of a Terminating Event, or (b) the date all amounts have been paid to the Executive upon a Terminating Event pursuant to Section 4 or
Section 5 hereof. 
 9. Withholding. All payments made by the Company to the Executive under this Agreement shall
be net of any tax or other amounts required to be withheld by the Company under applicable law. 
 10. Notice and Date of
Termination. 
 (a) Notice of Termination. After a Change in Control and during the term of this Agreement,
any purported termination of the Executive’s employment (other than by reason of death) shall be communicated by written Notice of Termination from one party hereto to the other party hereto in accordance with this Section 10. For purposes
of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon. 

(b) Date of Termination. “Date of Termination” shall mean: (i) if the Executive’s employment is
terminated by his death, the date of his death; (ii) if the Executive’s employment is terminated on account of Executive’s Disability or by the Company for Cause, the date on which Notice of Termination is given; (iii) if the
Executive’s employment is terminated by the Company without Cause the date on which a Notice of Termination is given; (iv) if the Executive’s employment is terminated by the Executive without Good Reason, 30 days after the date on
which a Notice of Termination is given, and (v) if the Executive’s employment is terminated by the Executive with Good Reason, the date on which a Notice of Termination is given after the end of the Cure Period. Notwithstanding the
foregoing, in the event that the Executive gives a Notice of Termination to the Company, the Company may unilaterally accelerate the Date of Termination and such acceleration shall not result in a termination by the Company for purposes of this
Agreement. 
 11. No Mitigation. The Company agrees that, if the Executive’s employment by the Company is terminated
during the term of this Agreement, the Executive is not required to seek 

  
 6 

 
other employment or to attempt in any way to reduce any amounts payable to the Executive by the Company pursuant to Section 4 or Section 5 hereof. Further, the amount of any payment
provided for in this Agreement shall not be reduced by any compensation earned by the Executive as the result of employment by another employer. 

12. Consent to Jurisdiction. The parties hereby consent to the jurisdiction of the Superior Court or the Commonwealth of
Massachusetts and the United States District Court for the District of Massachusetts. Accordingly, with respect to any such court action, the Executive (a) submits to the personal jurisdiction of such courts; (b) consents to service of
process; and (c) waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction or service of process.  

13. Integration. This Agreement constitutes the entire agreement between the parties with respect to severance pay, benefits and
accelerated vesting in connection with any termination of employment, to the extent inconsistent with any prior agreements supersedes the inconsistent provisions of such prior agreements between the parties concerning such subject matter, including
without limitation any provisions of any offer letter or employment agreement relating to severance pay or benefits in connection with the ending of Executive’s employment relationship with the Company. In the interest of clarity, any agreement
relating to confidentiality, noncompetition, nonsolicitation or assignment of inventions shall not be affected by the Agreement.  

14. Successor to the Executive. This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal
representatives, executors, administrators, heirs, distributees, devisees and legatees. In the event of the Executive’s death after a Terminating Event but prior to the completion by the Company of all payments due him under this Agreement, the
Company shall continue such payments to the Executive’s beneficiary designated in writing to the Company prior to his death (or to his estate, if the Executive fails to make such designation). 

15. Enforceability. If any portion or provision of this Agreement (including, without limitation, any portion or provision of
any Section of this Agreement) shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as
to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 

16. Waiver. No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party. The
failure of any party to require the performance of any term or obligation of this Agreement, or the waiver by any party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of
any subsequent breach. 
 17. Notices. Any notices, requests, demands and other communications provided for by this
Agreement shall be sufficient if in writing and delivered in person or sent by a nationally recognized overnight courier service of by registered or certified mail, postage prepaid, return 

  
 7 

 
receipt requested, to the Executive at the last address the Executive has filed in writing with the Company, or to the Company at its main office, attention of the Board of Directors. 

18. Amendment. This Agreement may be amended or modified only by a written instrument signed by the Executive and by a duly
authorized representative of the Company. 
 19. Effect on Other Plans and Agreements. An election by the Executive to
resign for Good Reason under the provisions of this Agreement shall not be deemed a voluntary termination of employment by the Executive for the purpose of interpreting the provisions of any of the Company’s benefit plans, programs or policies.
Nothing in this Agreement shall be construed to limit the rights of the Executive under the Company’s benefit plans, programs or policies except as otherwise provided in Section 6 hereof, and except that the Executive shall have no rights
to any severance benefits under any Company severance pay plan, offer letter or otherwise. In the event that the Executive is party to an agreement with the Company providing for payments or benefits under such agreement and this Agreement, the
terms of this Agreement shall govern and Executive may receive payment under this Agreement only and not both. Further, Section 4 and Section 5 of this Agreement are mutually exclusive and in no event shall Executive be entitled to
payments or benefits pursuant to Section 4 and Section 5 of this Agreement.  
 20. Governing Law. This is a
Massachusetts contract and shall be construed under and be governed in all respects by the laws of the Commonwealth of Massachusetts, without giving effect to the conflict of laws principles of such Commonwealth. With respect to any disputes
concerning federal law, such disputes shall be determined in accordance with the law as it would be interpreted and applied by the United States Court of Appeals for the First Circuit. 

21. Successor to Company. The Company shall require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or assets of the Company expressly to assume and agree to perform this Agreement to the same extent that the Company would be required to perform it if no succession had taken
place. Failure of the Company to obtain an assumption of this Agreement at or prior to the effectiveness of any succession shall be a material breach of this Agreement.  

22. Gender Neutral. Wherever used herein, a pronoun in the masculine gender shall be considered as including the feminine gender
unless the context clearly indicates otherwise. 
 23. Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed and delivered shall be taken to be an original; but such counterparts shall together constitute one and the same document.  

[Remainder of Page Intentionally Left Blank] 

  
 8 

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

			
	SAGE THERAPEUTICS, INC.
		
	By:		/s/ Jeffrey M. Jonas
			 Name: Jeffrey M. Jonas
 Title: Chief
Executive Officer

  
  

	
	
	/s/ Thomas Anderson
	Thomas Anderson

  
 92014 10-K Exhibit 10.11

EXHIBIT 10.11

August 7, 2014 
 

Robert Eastep
9190 Priority Way West Drive, Suite 300
Indianapolis, IN 46240
Re:    Letter Agreement 
Dear Mr. Eastep: 
This Letter Agreement (“Agreement”) is made and entered into as of August 7, 2014 (the “Effective Date”) by and between Stonegate Mortgage Corporation, an Ohio corporation (the “Company”), and Robert Eastep (“You”). The Agreement sets forth the terms of your employment with the Company as follows: 
1.        Employment. The Company hereby agrees to employ you, and you hereby accept such employment with the Company, in each case, on the following terms and conditions. Your employment will be “at-will”, meaning that either you or the Company may terminate your employment at any time for any or no reason, subject to the terms of this Agreement. Any contrary representations that may have been made to you will be superseded by this Agreement. 
2.        Position and Responsibilities. As of the date hereof, you will serve as the Company’s Chief Financial Officer (or such other position as may be assigned by the Chief Executive Officer of the Company (“CEO”) or the Board of Directors of the Company (the “Board”)). You will have the duties and authority as determined from time to time by the CEO or the Board. While employed by the Company, you will devote your full business time and best efforts to the performance of your duties hereunder and the business and affairs of the Company and will not engage in any other business, profession or occupation for compensation or otherwise which would conflict or interfere with the rendition of such services to the Company, without the Board’s prior written consent. While employed by the Company, you will be expected to primarily work from the Company’s office in Indianapolis, Indiana. 
3.        Compensation. 
(a) Base Salary. Your base salary will be paid, in accordance with the Company’s normal payroll practices in effect from time to time, at an annual rate of $325,000, subject to annual redetermination by the Board (the rate in effect at any given time, the “Base Salary”). 
(b) Annual Bonus. During each calendar year, you will eligible to participate in the Company’s Discretionary Incentive Compensation Plan or similar annual bonus program whereby you will have the opportunity to earn compensation (the “Annual Bonus”) of up to 200% of Base Salary as determined by the Board in its sole discretion. The Annual Bonus may be payable in cash or grants of stock, as determined by the Board, and will be paid at the time or times provided by the applicable bonus program. 
(c) Discretionary Bonus.  During the 2014 calendar year, you will be eligible to earn a discretionary bonus equal to $25,000, less applicable taxes and withholding (the “Discretionary Bonus”), based on performance metrics as determined by the Board in its sole discretion.  If earned, the Discretionary Bonus will be paid in two equal installments, the first of which will be on (or within ten (10 days following) September 30, 2014, and the second of which will be on (or within 10 days following) December 31, 2014.
(d) Stock Options.  You will receive as a one-time grant a number of stock options under the Company’s 2013 Omnibus Plan with a grant date fair value equal to $175,000 as determined by the Company in its sole discretion. When granted, such stock options shall be subject in all respects to the terms and conditions (including, without limitation, vesting and forfeiture conditions, exercise rights and conditions, etc.) set forth in the 2013 Omnibus Plan and the underlying award agreement that will accompany such grant.
(e) Relocation Expenses.  You will be entitled to be reimbursed for up to $25,000 in expenses related to your relocation to Indianapolis, IN provided documented receipts are submitted to the Company in accordance with IRS rules.  In addition, in lieu of the Company paying car rental expenses for you prior to your relocation, you will be provided up to $1,000 per month for a car allowance paid by the Company for each of the 12 months from the date hereof.

(f) Benefits and Expenses. While employed by the Company, you will be eligible to participate in the Company’s employee benefit plans (including vacation policy) as in effect from time to time, on the same basis as those benefits are generally made available to other peer executives of the Company. You will be entitled to reimbursement, by the Company in accordance with then current Company policies applicable to other executives of the Company, of reasonable business expenses that you incur in the performance of your duties hereunder. 
4.        Termination. Your employment may be terminated by you or the Company at any time and for any or no reason, subject to the following terms. 
(a) Termination for Cause. Your employment may be terminated by the Company for Cause at any time upon delivery of written notice to you, in which case you will be entitled to receive only: (i) accrued but unpaid Base Salary; (ii) accrued but unreimbursed business expenses that were properly incurred in accordance with Company policy before your termination date; and (iii) any employee benefits which you may be entitled to under the employee benefit plans or policies of the Company according to their terms, all reduced by any amounts that you then owe the Company ((i), (ii) and (iii) above are collectively “Accrued Rights”). Following termination of your employment for Cause, you will have no further rights to any compensation or any other benefits under this Agreement or otherwise. “Cause” means the Company’s termination of your employment, as determined in the sole judgment of the Board, due to your: (i) continued failure to perform your material duties with respect to the Company or its affiliates for a period of more than 30 days after receipt of written notice of such failure; (ii) fraud, misappropriation, embezzlement or acts of similar dishonesty; (iii) conviction of a felony or any other crime involving moral turpitude; (iv) illegal use of drugs or excessive use of alcohol in the workplace; (v) misconduct that may subject the Company or its affiliates to criminal or civil liability; (vi) breach of your duty of loyalty, including the diversion or usurpation of corporate opportunities properly belonging to the Company; (vii) intentional disregard of the Company’s policies and procedures; (viii) breach of any of the terms of this Agreement or any other agreement between you and the Company; (ix) adjudication as guilty in a court of competent jurisdiction for, or a settlement is reached with respect to claims of, discrimination or harassment of any employee; or (x) insubordination or deliberate refusal to follow the reasonable instructions of the CEO and/or the Board. 
(b) Resignation. Your employment shall terminate automatically upon your resignation. If you provide written notice to the Company at least thirty (30) days before your resignation date, you will be entitled to receive only the Accrued Rights. However, if you resign for Good Reason (as defined below), provided you give notice of your resignation within 90 days of the condition for Good Reason first occurring, the Company does not cure the condition within 30 days of such notice and you resign within 30 days after the Company’s failure to cure, then no later than five days after your resignation for Good Reason the Company will deliver to you a general release of employment related claims in favor of the Company and its affiliates (the “Release”) and if you execute and deliver to the Company the Release within 21 days (or such other time as is required by law to make the Release effective and irrevocable) of delivery to you and do not revoke the Release during the seven day revocation period (or such other time as is required by law to make the Release effective and irrevocable), then you will receive a lump sum payment within ten (10) days following the Release effective date in an amount equal to the Severance Payment (as defined below). “Good Reason” shall mean, in each case without your consent: (i) a material diminution in your Base Salary (other than a similar diminution that impacts other similarly situated executives of the Company), (ii) any requirement that you report directly to any person other than the CEO in place as of immediately prior to a Change in Control (as defined below) and (iii) any other action or inaction by the Company constituting a material breach of this Agreement. Following a resignation for Good Reason, you shall have no further rights to any compensation or any other benefits. 
(c) Death or Disability. Your employment will terminate upon your death, and may be terminated by the Company as a result of your Disability, in which case you (or your estate) will be entitled to receive only the Accrued Rights. Following your termination of employment due to death or Disability, you will have no further rights to any compensation or any other benefits. “Disability” means the Board’s good faith determination that you are (i) unable 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 can be expected to last for a continuous period of not less than 12 months; or (ii) by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, you receive income replacement benefits for a period of not less than three months under an accident or health plan covering employees of the Company. 
(d) Termination Without Cause. Your employment may be terminated by the Company at any time without Cause (other than by reason of death or Disability), in which case you will be entitled to receive the Accrued Rights and any accrued but unpaid annual bonus for the year preceding the year in which the termination occurs. In addition, no later than five days after the date of termination without Cause, the Company shall deliver to you the Release and if you execute, deliver to the Company and do not revoke the Release within the timeframe described in Section 4(b) above then you will receive a lump sum payment within ten (10) days following the Release effective date in an amount equal to twelve (12) months of your then 

current Base Salary (the “Severance Payment”). Following your termination without Cause, you will have no further rights to any compensation or any other benefits under this Agreement. 
(e) Termination on Account of Change in Control.  If your employment with the Company is terminated,  within five months after a Change in Control (as defined in the Company’s 2013 Omnibus Incentive Compensation Plan) either by the Company for any reason other than Cause or by you for Good Reason, you will be entitled to receive  (1) the payments and benefits under Subsection (b) or (d) above, (2) any accrued but unpaid annual bonus for the year in which the termination occurs and the year preceding the year in which the termination occurs and (3) accelerated vesting of any then-outstanding, unvested Company equity incentive awards, which will become payable or exercisable in accordance with the terms of the applicable incentive plan and award agreement under which the awards were granted.  In order to receive such payments and benefits, you will be required to sign, deliver to the Company and not revoke the Release, as set forth in Section 4(b) above, within the timeframe described therein.  Such payments will be made within ten (10) days after the following the effective date of the Release (and such vesting will occur on the effective date of the Release).
(f) Board and Other Resignation. You agree that, upon termination of your employment with the Company for any reason, you will automatically be deemed to have resigned, as of the termination date, from any other employment, including service on the board of directors, with the Company or any of its affiliates, including any entity in which the Company or its affiliates have rights and any position in which you act as a representative of the Company. 
(g) Return of Materials. Upon any termination of your employment, you will (i) cease use of any Confidential Information (as defined below) or intellectual property owned or used by the Company or any of its affiliates; (ii) immediately destroy or return to the Company, at its option, all originals and copies of such Confidential Information, intellectual property, or other information related to the business of the Company or its affiliates in your possession or control; and (iii) notify and fully cooperate with the Company regarding the delivery or destruction of any other Confidential Information of which you become aware. 
5.        Confidentiality. You acknowledge that in the course of your employment you will acquire knowledge of the Company’s and its affiliates Confidential Information (as defined below). You also acknowledge that such Confidential Information is not known outside the business of the Company and its affiliates, is known only to a limited group of their top employees and directors, is protected by strict measures to preserve secrecy, is of great value to the Company and its affiliates, is the result of the expenditure of large sums of money, is difficult for an outsider to duplicate, and disclosure of which would be extremely detrimental to the Company and its affiliates. You acknowledge that all Confidential Information shall at all times remain the property of the Company, and the Company shall have free and unlimited access at all times to all materials containing Confidential Information and shall have the right to claim and take possession of such materials on demand. Except as required by your duties to the Company, you will not, at any time during or after your employment, directly or indirectly use, divulge or disseminate any Confidential Information without having first obtained written permission from the CEO. You will safeguard and maintain secret all Confidential Information and all materials that include or embody Confidential Information. You also acknowledge that the Company may receive confidential or proprietary information belonging to customers, or other third parties subject to the Company’s duty to not disclose said information. Accordingly, you agree to not disclose (except as authorized by the Company), publish, or use in competition with the Company, any such third party confidential and proprietary information. “Confidential Information” means any oral or written information disclosed to you or known by you as a consequence of your employment by the Company relating to the Company’s or any of its affiliate’s business, products, processes, or services, including, but not limited to, information relating to research, development, discoveries, concepts, and ideas, whether patentable or not including, but not limited to, apparatus, processes, methods, compositions of matter, techniques, and formulas, as well as related improvements or know-how, works of authorship fixed in a tangible medium of expression, products under development, manufacturing processes, formulas, strategic plans, purchasing, finance, accounting, revenues, costs or expenses, engineering, marketing, selling, suppliers, customer lists, customer requirements, trade secrets and the documentation thereof; provided, however, that Confidential Information shall not include information that was: (i) publicly known prior to the date of disclosure or is published or otherwise becomes publicly known after the date of disclosure through no fault of your own; or (ii) was rightfully in the possession of or independently derived by a party to whom such information was disclosed whether before or after your disclosure. If you are requested or are legally compelled to make any disclosure that is prohibited or constrained by this Agreement, you will provide the Company with prompt notice of the request so that it may seek an appropriate protective order or other remedy and you will only disclose so much of that Confidential Information as you are required to disclose by law. 
6.        Limited Restricted Covenants. During and after your employment it is important for the Company to protect its legitimate business interests. Therefore, the following non-competition and non-solicitation provisions are drafted narrowly to safeguard the Company’s legitimate business interests while not unreasonably interfering with your ability to obtain other employment. As a condition of your employment with the Company, you agree as follows: 

(a)        During Employment by the Company. During your employment with the Company, you will not, directly or indirectly, have any ownership interest in, work for, advise, consult with, or have any business connection with any person or entity that competes with the Company or that is planning to compete with the Company. Furthermore, you shall not take any actions with respect to competitors that could be detrimental to the Company. 
 
 (b)        During Post-Employment Period. For twenty-four (24) months following any termination of your employment with the Company, you will not (i) solicit or sell to any Customer (as defined below) any product or service that competes with the Company’s products or services; (ii) request or advise any Customer to curtail or cease business with the Company or its affiliates; (iii) disclose to any person or entity the identities of any Customers; or (iv) influence or attempt to influence any employee or contractor of the Company or any of its affiliates to separate from the Company. “Customer” means any person or entity who is a customer or prospective customer of the Company or any of its affiliates and that (i) you or any other officer of the Company solicited, serviced, or sold to within two (2) years of the termination of your employment with the Company or (ii) you learned of within two (2) years of the termination of your employment with the Company. 
7.        Additional Restricted Matters. The provisions of Sections 4 through 9 shall survive any termination of your employment. The restricted period of time in Sections 5 and 6 will be tolled during any periods of your non-compliance. If a final judicial determination is made by a court of competent jurisdiction that the time or territory or any other restriction contained in this Agreement is unenforceable, such provisions shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such maximum extent as such court may determine to be enforceable. 
8.        Injunctive Relief. You acknowledge that any restricted activity referred to in this Agreement may cause irreparable injury to the Company, and that the remedies at law for any breach by you may be inadequate, and that the Company may be entitled to institute and prosecute legal proceedings to obtain injunctive relief to enforce any provision without proof of actual injury or damage and without posting security. If the Company prevails in any litigation to enforce this Agreement, the Company is entitled to recover from you the Company’s costs and reasonable attorneys’ fees incurred in such enforcement. 
9.        Miscellaneous. 
(a) Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of Indiana, without regard to conflicts of laws principles thereof. You and the Company agree that any claim of any type brought by you against the Company or any of its employees or agents must be maintained only in a court sitting in Marion County, Indiana or, if a federal court, the Southern District of Indiana. You specifically consent to personal jurisdiction in the State of Indiana. You waive any right to a jury trial, and agree that any claim hereunder will be tried without a jury. At the Company’s sole election, the Company may refer any litigation to arbitration through a mutually agreeable qualified arbitrator in Indiana 
(b) Compliance with Code Section 409A. This Agreement is intended to be exempt from the requirements of Internal Revenue Code Section 409A (“Code Section 409A”) and shall be interpreted and administered accordingly, provided that if any part of this Agreement is determined to be subject to Code Section 409A, then it is intended to comply with such requirements, and it shall be interpreted and administered to effect compliance. To effect such compliance, references to “termination of employment” and similar terms shall be deemed to mean “separation from service” within the meaning of Code Section 409A(a)(2)(A)(i). Notwithstanding anything herein to the contrary, to the extent that any payments of “nonqualified deferred compensation” that become payable pursuant to this Agreement as a result of a “separation from service” are required to be delayed because you are a “specified employee” within the meaning of Code Section 409A, such payments will be made at the earliest time permitted by Code Section 409A. 
 
 (c) Entire Agreement; Amendment. This Agreement contains the entire understanding of the parties with respect to your employment by the Company and supersedes all prior written and oral statements or agreements. There are no restrictions, agreements, promises, warranties, covenants or undertakings between the parties with respect to the subject matter herein other than those expressly set forth herein. This Agreement may not be altered, modified, or amended except by written instrument signed by the parties hereto. 
(d) Successors; Assignment. This Agreement shall inure to the benefit of and be binding upon personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees of the parties hereto. This Agreement and all of your rights and duties hereunder, shall not be assignable by you. Any purported assignment or delegation in violation of the foregoing shall be null and void ab initio and of no force or effect. 
(e) Set Off; No Mitigation. The Company’s obligation to pay you the amounts and to make the arrangements provided hereunder shall be subject to set-off, counterclaim or recoupment of amounts owed by you to the Company or its affiliates (subject to Section 9(b)); provided, however, that in no event shall you be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to you under Section 5 of this Agreement. 

(f) Notice. Notices and other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered by hand, U.S. Mail or overnight courier, addressed, if to the Company, to Stonegate Mortgage Corporation, 9190 Priority Way West Drive, Suite 300, Indianapolis, IN 46240 Attn: CEO, and if to you, to the most recent address in the Company’s personnel records (or to such other address as either party may have furnished to the other in writing) which notice will be effective only upon receipt. 
(g) Withholding Taxes. The Company may withhold from any amounts payable under this Agreement such Federal, state and local taxes as may be required to be withheld pursuant to any applicable law or regulation. 
(h) Pre Suit Mediation. Prior to initiating litigation, you must first serve written notice to the Company within 90 days of the alleged loss setting forth in detail the nature of the alleged claim and an itemization of remedies sought. You must then submit to mediation in good faith, bearing 50% of the mediation expense. Failure to serve proper notice or to mediate in good faith shall serve as a waiver of any rights to pursue litigation. 
(i) Executive Acknowledgements. You acknowledge and agree that you have carefully read this entire Agreement and have been given sufficient opportunity to discuss this Agreement with the Company before signing and an adequate opportunity to consult with your lawyer, accountant, tax advisor, spouse and other persons you deem appropriate concerning this Agreement. 
(j) Subsequent Employers. After any termination of your employment with the Company, you agree not to enter into any agreement that conflicts with your obligations under this Agreement, and you will (and the Company may) inform any subsequent employers of your obligations under this Agreement. 
 
 (k) Other. A party’s failure to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver of such party’s rights or deprive such party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement. If any provision of this Agreement is determined to be unenforceable, the remaining provisions shall remain in full force and effect, and if any provision is susceptible to two or more constructions, one of which would render the provision unenforceable, then the provision shall be construed to have the meaning that renders it enforceable. This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures were on the same instrument. 
 
If you agree with the preceding please sign and return this Agreement, which will become a binding agreement on our receipt. 
 
	
			
	 
	 
	 

	Very truly yours, 
 
STONEGATE MORTGAGE CORPORATION

	 
	 

	By:
	 
	  /s/ James J. Cutillo        

	 

	James J. Cutillo, CEO

Accepted and agreed: 
   /s/ Robert Eastep                                 
Robert Eastep

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00241-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00241-of-00352.parquet"}]]