Document:

Exhibit

Exhibit 10.38

SEPARATION AGREEMENT AND GENERAL RELEASE 

This Separation Agreement and General Release (this “Agreement”) is made between James McNally on behalf of him/herself, his/her agents, assignees, heirs, executors, administrators, beneficiaries, trustees and legal representatives (“Employee”), and Clinical Micro Sensors, Inc. d.b.a. GenMark Diagnostics, Inc. (together with GenMark Diagnostics, Inc., the “Company”).  Employee and the Company are each a “Party” and are together sometimes referred to as “Parties” to this Agreement.  Capitalized terms used but not defined herein shall have the meaning given to such terms in the GenMark Diagnostics, Inc. Executive Severance Plan (the “Severance Plan”).

In consideration of the promises in this Agreement, the adequacy of which is hereby acknowledged, the Parties agree as follows:
AGREEMENT

1.Separation Date:  Employee’s employment with the Company will cease effective January 10, 2020 (the “Separation Date”).  

2.Consideration.  In consideration of Employee executing this Agreement and complying with its terms, the Company agrees to:
		
	a.
	pay Employee an aggregate gross lump sum payment of ONE HUNDRED FORTY-FIVE THOUSAND ONE HUNDRED ONE AND 32/100 DOLLARS ($145,101.32), representing six (6) months of Employee’s Base Salary Rate payable pursuant to Section 6.1(a) of the Severance Plan within ten (10) business days after the date both Parties have signed this Agreement; 

		
	b.
	pay Employee an amount equal to: (x) Employee’s target bonus percentage under the 2019 Bonus Plan (i.e., 50% of Employee’s base salary as of the Separation Date), multiplied by (y) the percentage achievement of the Company-level performance targets under the Company’s 2019 Bonus Plan as approved by the Company’s Board of Directors (and without modification upward or downward based on individual performance), payable upon the later of (i) ten (10) business days after the date both Parties have signed this Agreement, or (ii) the date the Company pays bonus awards to Company employees in accordance with the 2019 Bonus Plan; and

		
	c.
	provide that the restricted stock units set forth on Exhibit A hereto (the “Severance Equity”) granted under the terms of the Company’s 2010 Equity Incentive Plan (as amended, the “2010 Plan”) shall continue to remain outstanding and vest, and be issued to Employee, within ten (10) business days after the date both Parties have signed this Agreement. 

3.Health Care Coverage.  If Employee elects to continue and remains eligible for COBRA benefits pursuant to Section 6.1(b) of the Severance Plan, the Company will pay for and provide the health care benefits as set forth therein.  

4.Outplacement Services.  The Company will provide Employee with an outplacement services package selected by the Company following the receipt of this Agreement signed in full and on the condition that Employee performs his/her obligations hereunder. In no event will Employee receive cash or other benefits in lieu of outplacement services.

5.Transition Services.  Promptly following the Separation Date, Employee agrees to reasonably cooperate with the Company to transition Employee’s existing work to other Company employees.

6.Treatment of ESPP Contributions and Other Equity Awards.  Any contributions made by Employee into the Company’s Amended and Restated 2013 Employee Stock Purchase Plan (the “ESPP”) in respect of any ESPP plan period that does not conclude prior to the Separation Date will be refunded to Employee in accordance with the terms of the ESPP. In addition, any restricted stock units, stock options or other equity Awards held by the Employee which remain unvested as of the Separation Date (other than the Severance Equity) will be cancelled and terminated in their entirety without further action of the Parties pursuant to the terms of the 2010 Plan.

7.No Consideration Absent Execution of this Agreement.  Employee understands and agrees that Employee would not receive the consideration and/or benefits specified in Sections 2, 3 and 4 above (collectively, the “Separation Benefits”), except for Employee’s execution of this Agreement and the fulfillment of the covenants contained herein. 

8.Consideration Sufficiency.  Employee acknowledges and agrees that the Separation Benefits are contingent upon the Company receiving an executed copy of this Agreement no later than January 16, 2020, and that Employee performs all of his/her obligations hereunder.  Employee acknowledges that the Separation Benefits are greater than that which Employee would otherwise be entitled to in the absence of this Agreement.

9.Payment of Wages.  On the Separation Date, the Company will pay Employee all Accrued Amounts earned through the Separation Date, subject to all required payroll deductions and withholdings.  

10.Tax Matters. The Company will withhold required federal, state and local taxes from any and all payments contemplated by this Agreement. Other than Company’s obligation and right to withhold, Employee will be responsible for any and all taxes, interest, and penalties that may be imposed with respect to the payments contemplated by this Agreement (including, but not limited to, those imposed under Internal Revenue Code Section 409A).

11.Release of Claims.  In consideration of the Company’s execution of this Agreement and other good and valuable consideration, Employee hereby forever and irrevocably releases and discharges the Company, and any parent (including GenMark Diagnostics, Inc.), subsidiary, affiliated, and related entities, including their past, present, or future managers, directors, administrators, officers, employees, agents, insurance companies, attorneys, representatives, predecessors, successors and assigns, and each of them (collectively, the “Released Parties”) from all known and unknown claims, liabilities, and obligations of every kind (including attorneys’ fees and costs) that Employee has ever had or now may have against the Released Parties arising out of or relating to facts, events, occurrences, or omissions up to and including the date this Agreement is fully executed by the Parties. The claims that Employee is releasing include: (a) claims arising out of Employee’s employment with the Company and his/her separation from such employment; (b) claims for breach of express or implied contract or covenant of good faith and fair dealing; (c) all claims for harassment, discrimination or violation of public policy; (d) claims for constructive discharge or wrongful discharge; (e) claims for retaliation; (f) claims for violation of state or federal common law or statutory law, including to the extent applicable, all claims arising under the California Constitution, the California Fair Employment and Housing Act, the California Labor Code, including sections 970 et. seq., Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the California Unruh Act, the Worker Adjustment and Retraining Notification Act (WARN), California WARN, the Equal Pay Act, California Business & Professions Code, including sections 17200 et seq., the Fair Labor Standards Act, the Employee Retirement Income Security Act, the National Labor Relations Act, the California Family Rights Act, the Family and Medical Leave Act, the Americans with Disabilities Act, the Genetic Information Nondiscrimination Act, the Private Attorneys General Act of 2004, and the Sarbanes-Oxley Act of 2002, or other federal, state, or local laws relating to employment or separation from employment or benefits associated with employment or separation from employment; (g) claims for emotional distress, mental anguish, humiliation, and personal injury; and (h) claims that may be asserted on Employee’s behalf by others.  Excluded from this Release are claims which cannot be waived or released as a matter of law.

YOU UNDERSTAND AND ACKNOWLEDGE THAT YOU HAVE BEEN ADVISED TO SEEK THE ADVICE OF AN ATTORNEY, IF YOU SO CHOOSE, PRIOR TO SIGNING THIS RELEASE AND TO THE EXTENT DESCRIBED HEREIN YOU ARE GIVING UP ANY LEGAL CLAIMS YOU HAVE AGAINST THE COMPANY AND EACH OF ITS RESPECTIVE CURRENT, FORMER OR FUTURE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, REPRESENTATIVES, SHAREHOLDERS, LEGAL PREDECESSORS AND SUCCESSORS, BY SIGNING THIS RELEASE.  

12.No Further Obligations of Company.  Employee acknowledges that the Separation Benefits and other considerations provided to him/her are in full and complete satisfaction and discharge of any and all obligations that the Company or any of the Released Parties has or may have to Employee.

13.Representation of No Action; Agreement Not to Sue.  As a condition of receiving the Separation Benefits and other consideration provided, Employee agrees not to sue in civil court any of the Released Parties regarding any claim that has been released in this Agreement.  Employee represents and agrees that he/she has not initiated any claim, charge, lawsuit, or other action against any of the Released Parties and that he/she has not transferred or assigned that right to any other person or entity.  Should any third party, including any state or federal agency, bring any action or claim against the Company or any of the Released Parties on Employee’s behalf, Employee acknowledges and agrees that this Agreement provides full relief and Employee will not accept any other relief. The prohibitions on further recovery in this Section 13 will not apply to any recovery authorized under Section 21F of the Securities Exchange Act of 1934.

14.Waiver of Civil Code Section 1542.  Employee acknowledges that he/she has been made aware of and expressly waives any and all rights under Section 1542 of the California Civil Code to the full extent that such rights may be waived.  Section 1542 provides as follows:

“A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.”

15.Non-Disparagement.  Employee agrees not to make or cause to be made any statements that disparage, are inimical to, or damage the reputation of the Company or any of its past or present affiliates, subsidiaries, agents, officers, directors or employees to anyone, including, but not limited to, current Company employees, the media, regulatory agencies, public interest groups, and publishing companies.  

16.Return of Company Property. Employee agrees to promptly return to the Company all hard copy and electronic documents (and all copies thereof) and other Company property that Employee has had in Employee’s possession at any time, including, but not limited to, files, notes, drawings, records, business plans and forecasts, financial information, specifications, computer-recorded information (including email), tangible property (laptop computer, cell phone, PDA, etc.), credit cards, entry cards, identification badges and keys, and any materials of any kind that contain or embody any proprietary or confidential information of the Company (and all reproductions thereof). If Employee discovers after the Separation Date that Employee has retained any Company proprietary or confidential information, Employee agrees, immediately upon discovery to contact the Company and make arrangements for returning the information. 

17.Post-Employment Obligations. Employee acknowledges his/her continuing obligations under Employee’s Confidentiality and Non-Disclosure Agreement (the “NDA”) which prohibits disclosure of any confidential or proprietary information of the Company.  A copy of the NDA is attached.  Pursuant to the federal Defend Trade Secrets Act of 2016, Employee shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (a) is made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Moreover, if Employee files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Employee may disclose a trade secret to Employee’s attorney and use the trade secret information in the court proceeding; provided, however that Employee: (i) shall file any document containing the trade secret under seal; and (ii) shall not disclose the trade secret, except pursuant to a court order.

18.Breach of Agreement. If Employee breaches any of Employee’s obligations under this Agreement (including, but not limited to, Employee’s obligations relating to Confidentiality, Return of Company Property, and Post-Employment Obligations), Company’s obligations under this Agreement will immediately be terminated, no further performance under this Agreement will be required by the Company, and Employee shall immediately return to the Company any payments and other consideration previously paid or provided to Employee by the Company under this Agreement.

19.No Admission.  Employee understands that the Released Parties expressly deny any wrongdoing or liability to Employee.

20.Severability.  If any portion of this Agreement is void or deemed unenforceable for any reason, the unenforceable portion will be deemed severed from the remaining portions of this Agreement, which will otherwise remain in full force.

21.Review and Return of Agreement.  Employee has seven (7) days from the date of this Agreement to review and execute this Agreement (although Employee may choose to voluntarily execute this Agreement earlier).  This Agreement will not be effective or enforceable until after the delivery of a signed copy of the Agreement to the Company at 5964 La Place Court, Carlsbad CA, 92008, Attention: Hollis Winkler, Vice President, Human Resources.    

22.Material Non-Public Information.   Employee hereby acknowledges that as of the date of this Agreement, Employee is a holder of the Company’s equity securities.  Employee hereby further acknowledges that he/she is aware that United States securities laws prohibit any person who has received from an issuer material non-public information from purchasing or selling securities of such issuer or from communicating such information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities.  Employee shall not trade in the securities of the Company on the basis of, or while Employee is in possession of, material non-public information regarding the Company.  Nothing contained in this Agreement shall create any presumption that any information supplied to Employee is in fact material and non-public, nor shall anything contained herein shift the burden of proof imposed by applicable law absent this Agreement with respect to establishing whether any such information is material and non-public.

23.Applicable Law.  This Agreement will be governed by California law.  Venue for all disputes will be in San Diego County, California and each Party agrees not to assert lack of jurisdiction as an objection to any action brought in San Diego, California.

24.Multiple Counterparts.  This Agreement may be executed in two or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.  Executed faxed copies or PDF copies transmitted via email will be effective and enforceable. 

25.Headings.  Headings in this Agreement are inserted for reference and convenience only and are not a part of this Agreement.  

26.Interpretation, Entire Agreement. This Agreement replaces and supersedes all other agreements, verbal or written, which are merged into this Agreement, and constitutes the entire agreement of the Parties.  Any rule of law or decision that would require interpretation of any claimed ambiguities in this Agreement against the Party that drafted it has no application and is expressly waived.  Further, the Parties agree that the term “including” and its variations are always used in the non-restrictive sense as if followed by “but not limited to.”

27.Modification and Waiver.  Any modification of this Agreement will be effective only if it is in a writing signed by the Parties to this Agreement.  No waiver of any of the provisions of this Agreement will constitute a waiver of any other provision, even if similar, nor will any waiver constitute a continuing waiver.  No waiver will be binding unless executed in writing by the Party making the waiver.  

28.Expiration of Offer.  The offer made by the Company pursuant to this Agreement shall be null and void if it is not accepted in writing by Employee on or before the expiration of the 7-day period described in Section 8 above.

[Continued on next page]

Employee and the Company, by their signatures below, acknowledge that, other than the NDA which remains in effect, there exist no other promises, representations, or agreements between them and that they voluntarily enter into this Agreement with the intent to be legally bound.

/s/ James McNally        DATE:  _14-Jan-2020________
James McNally

/s/ Hollis Winkler          DATE:   _9-Jan-2020________
James McNally
Vice President, Human Resources

Exhibit A
Severance Equity

	
				
	RSU Grant Number
	Vest Date
	Grant Date
	Total Shares

	000200
	2/1/2020
	11/2/2016
	2,031

	000540
	2/22/2020
	2/22/2017
	625

	000825
	2/1/2020
	10/27/2017
	625

	001130
	2/23/2020
	2/23/2018
	5,859

	001399
	1/26/2020
	10/26/2018
	1,250

	001584
	2/18/2020
	2/18/2019
	25,312

	Total
	 
	35,702EX-4.2

 Exhibit 4.2 

DESCRIPTION OF THE REGISTRANT’S SECURITIES 

REGISTERED PURSUANT TO SECTION 12 OF 

THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED 

Intra-Cellular Therapies, Inc. (the “Company” or “we”) has one class of securities registered under Section 12 of the
Securities Exchange Act of 1934, as amended: our common stock, par value $0.0001 per share. 
 DESCRIPTION OF COMMON STOCK 

We are authorized to issue 100,000,000 shares of common stock, par value $0.0001 per share, and 5,000,000 shares of preferred stock, par value
$0.0001 per share. 
 The following summary of certain provisions of our common stock does not purport to be complete. You should refer to
our restated certificate of incorporation and our restated bylaws, both of which are incorporated by reference as exhibits to the Company’s Annual Report on Form 10-K of which this Exhibit is a part. The
summary below is also qualified by provisions of applicable law. 
 General 

Holders of our common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders and do not have
cumulative voting rights. An election of directors by our stockholders shall be determined by a plurality of the votes cast by the stockholders entitled to vote on the election. Holders of common stock are entitled to receive proportionately any
dividends as may be declared by our board of directors, subject to any preferential dividend rights of any series of preferred stock that we may designate and issue in the future. 

In the event of our liquidation or dissolution, the holders of common stock are entitled to receive proportionately our net assets available
for distribution to stockholders after the payment of all debts and other liabilities and subject to the prior rights of any outstanding preferred stock. Holders of common stock have no preemptive, subscription, redemption or conversion rights.
There are no redemption or sinking fund provisions applicable to the common stock. Our outstanding shares of common stock are validly issued, fully paid and nonassessable. The rights, preferences and privileges of holders of common stock are subject
to and may be adversely affected by the rights of the holders of shares of any series of preferred stock that we may designate and issue in the future. 

Transfer Agent and Registrar 
 The
transfer agent and registrar for our common stock is Computershare Trust Company, N.A., with offices at 250 Royall Street, Canton, Massachusetts 02021. 

Stock Exchange Listing 
 Our common
stock is listed for quotation on The Nasdaq Global Select Market under the symbol “ITCI.” 

 CERTAIN PROVISIONS OF DELAWARE LAW AND OF THE COMPANY’S 

CERTIFICATE OF INCORPORATION AND BYLAWS 

Anti-Takeover Provisions 
 The
provisions of Delaware law and our restated certificate of incorporation and restated bylaws could discourage or make it more difficult to accomplish a proxy contest or other change in our management or the acquisition of control by a holder of a
substantial amount of our voting stock. It is possible that these provisions could make it more difficult to accomplish, or could deter, transactions that stockholders may otherwise consider to be in their best interests or in our best interests.
These provisions are intended to enhance the likelihood of continuity and stability in the composition of our board of directors and in the policies formulated by the board of directors and to discourage certain types of transactions that may
involve an actual or threatened change of our control. These provisions are designed to reduce our vulnerability to an unsolicited acquisition proposal and to discourage certain tactics that may be used in proxy fights. Such provisions also may have
the effect of preventing changes in our management. 
 Delaware Statutory Business Combinations Provision 

We are subject to the anti-takeover provisions of Section 203 of the Delaware General Corporation Law. Section 203 prohibits a
publicly-held Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a period of three years after the date of the transaction in which the person became an interested stockholder,
unless the business combination is, or the transaction in which the person became an interested stockholder was, approved in a prescribed manner or another prescribed exception applies. For purposes of Section 203, a “business
combination” is defined broadly to include a merger, asset sale or other transaction resulting in a financial benefit to the interested stockholder, and, subject to certain exceptions, an “interested stockholder” is a person who,
together with his or her affiliates and associates, owns, or within three years prior, did own, 15% or more of the corporation’s voting stock. 

Classified Board of Directors; Removal of Directors for Cause 

Pursuant to our restated certificate of incorporation and restated bylaws, our board of directors is divided into three classes, with the term
of office of the first class to expire at the first annual meeting of stockholders following the initial classification of directors, the term of office of the second class to expire at the second annual meeting of stockholders following the initial
classification of directors, and the term of office of the third class to expire at the third annual meeting of stockholders following the initial classification of directors. At each annual meeting of stockholders, directors elected to succeed
those directors whose terms expire, other than directors elected by the holders of any series of preferred stock under specified circumstances, will be elected for a three-year term of office. All directors elected to our classified board of
directors will serve until the election and qualification of their respective successors or their earlier resignation or removal. Members of the board of directors may only be removed for cause and only by the affirmative vote of at least 80% of our
outstanding voting stock. These provisions are likely to increase the time required for stockholders to change the composition of the board of directors. For example, at least two annual meetings will be necessary for stockholders to effect a change
in a majority of the members of the board of directors. 

 Advance Notice Provisions for Stockholder Proposals and Stockholder Nominations of
Directors 
 Our restated bylaws provide that, for nominations to the board of directors or for other business to be properly brought by
a stockholder before a meeting of stockholders, the stockholder must first have given timely notice of the proposal in writing to our Secretary. For an annual meeting, a stockholder’s notice generally must be delivered not less than 90 days nor
more than 120 days prior to the first anniversary of the previous year’s annual meeting date. For a special meeting, the notice must generally be delivered not earlier than the 90th day prior to the meeting and not later than the later of
(1) the 60th day prior to the meeting or (2) the 10th day following the day on which public announcement of the meeting is first made. Detailed requirements as to the form of the notice and information required in the notice are specified
in the restated bylaws. If it is determined that business was not properly brought before a meeting in accordance with our bylaw provisions, such business will not be conducted at the meeting. 

Special Meetings of Stockholders 

Special meetings of the stockholders may be called only by our board of directors pursuant to a resolution adopted by a majority of the total
number of directors. 
 No Stockholder Action by Written Consent 

Any action to be effected by our stockholders must be effected at a duly called annual or special meeting of the stockholders. 

Super Majority Stockholder Vote Required for Certain Actions 

The Delaware General Corporation Law provides generally that the affirmative vote of a majority of the shares entitled to vote on any matter is
required to amend a corporation’s certificate of incorporation or bylaws, unless the corporation’s certificate of incorporation or bylaws, as the case may be, require a greater percentage. Our restated certificate of incorporation requires
the affirmative vote of the holders of at least 80% of our outstanding voting stock to amend or repeal any of the provisions discussed in this section of this Exhibit. This 80% stockholder vote would be in addition to any separate class vote that
might in the future be required pursuant to the terms of any preferred stock that might then be outstanding. An 80% vote is also required for any amendment to, or repeal of, our restated bylaws by the stockholders. Our restated bylaws may be amended
or repealed by a simple majority vote of the board of directors.

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