UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 23, 2008
IMMERSION CORPORATION
(Exact name of registrant as specified in its charter)
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Delaware 000-27969 94-3180138
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
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801 Fox Lane
San Jose, California 95131
(Address of principal executive offices) (Zip Code)
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Registrant's telephone number, including area code: (408) 467-1900
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(e) On May 23, 2008, Immersion entered into an executive incentive plan for
fiscal 2008 (the "Bonus Plan") with Richard Vogel, Senior Vice President and
General Manager, Immersion Medical. The Bonus Plan is intended to focus Mr.
Vogel on Immersion's revenue, operating profit and gross margin goals and other
business objectives, and to reward achievement of those goals.
Mr. Vogel's Bonus Plan provides for a target bonus amount of $144,472, and
a maximum bonus amount of $290,388.
The Bonus Plan provides for a discretionary multiplier ranging from 0.80 to
1.20, based on overall performance. Immersion's Chief Executive Officer will
determine the discretionary multiplier for Mr. Vogel.
The actual bonus amount for Mr. Vogel is determined through measurements of
both Immersion's corporate performance and Mr. Vogel's individual performance.
Fifteen percent (15%) of the bonus is determined by a matrix of varying levels
of GAAP adjusted revenue and GAAP adjusted operating profit (loss) that are
achieved by Immersion in fiscal 2008; fifteen percent (15%) of the bonus is
determined by achievement of a number of corporate initiatives, including the
consummation of a strategic transaction that increases revenue and/or operating
income within certain specified parameters, the implementation of an enterprise
resource planning system, increasing the percentage of Immersion's total revenue
that is derived from international sources and increasing the number of
non-financial or administrative press releases issued by Immersion in 2008;
fifty-two and a half percent (52.5%) of the bonus is determined by a matrix of
varying levels of GAAP adjusted revenue and GAAP adjusted operating profit
(loss) that are achieved by the Immersion Medical business unit in fiscal 2008;
and the remaining seventeen and a half percent (17.5%) of the bonus is
determined by achievement of a number of individual business unit initiatives,
including the expansion of Immersion Medical's international team, increasing
Immersion Medical's international revenues, supporting Immersion's patent
enforcement activities and launching certain new products within specified
timeframes.
Payment of the cash bonus pursuant to the Bonus Plan is subject to Mr.
Vogel's continued employment through the payment date, which is expected to
occur on the next payroll period after the later of: (a) 45 days after the end
of the fiscal year; (b) the date on which Immersion's income statement for
fiscal 2008 has been finalized, or (c) the date on which Immersion's earnings
for fiscal 2008 have been publicly disclosed. If Mr. Vogel resigns from his
employment prior to the payment date, or his employment is terminated prior to
the payment date, he will not earn any payment under the Bonus Plan.
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
IMMERSION CORPORATION
Date: May 23, 2008 By: /s/ Stephen M. Ambler
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Stephen M. Ambler
Chief Financial Officer and Vice President,
Finance