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): April 21, 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 April 21, 2008, Immersion entered into executive incentive plans
for fiscal 2008 (the "Bonus Plans") with the Named Executive Officers. The Bonus
Plans are intended to focus such officers on Immersion's revenue, operating
profit, and gross margin goals, and other business objectives, and to reward
achievement of those goals.
Mr. Viegas' Bonus Plan provides for a target bonus amount of $300,000
and a maximum bonus amount of $504,000.
Mr. Ambler's Bonus Plan provides for a target bonus amount of $110,334
and a maximum bonus amount of $185,360.
Each of the Bonus Plans provide for a discretionary multiplier ranging
from 0.80 to 1.20, based on overall performance. The Compensation Committee of
Immersion's Board of Directors will determine the discretionary multiplier for
Mr. Viegas' bonus, and Immersion's Chief Executive Officer will determine the
discretionary multiplier for Mr. Ambler.
The actual bonus amount for Mr. Viegas is determined through
measurements of both Immersion's corporate performance and Mr. Viegas'
individual performance. Forty percent (40%) 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; forty percent (40%)
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; and the remaining twenty percent (20%) of the bonus is
determined by achievement of a number of individual management objectives, which
are still in the process of being agreed upon.
The actual bonus amount for Mr. Ambler is determined through
measurements of both Immersion's corporate performance and Mr. Ambler's
individual performance. Forty percent (40%) 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; forty percent (40%)
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; and the remaining twenty percent (20%) of the bonus is
determined by achievement of a number of individual business unit initiatives,
including support activities related to the above listed corporate initiatives
and the reduction of certain professional fees and costs of certain product
components.
Payment of the cash bonuses pursuant to the Bonus Plans is subject to
each executive officer's continued employment through the payment date, which is
expected to occur on the next payroll period after the later of: (a) the date on
which Immersion's income statement for fiscal 2008 has been finalized, or (b)
the date on which Immersion's earnings for fiscal 2008 have been publicly
disclosed. An executive officer who resigns from his employment prior to the
payment date, or whose employment is terminated prior to the payment date, will
not earn any payment under the Bonus Plans, unless otherwise agreed by
Immersion.
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: April 21, 2008 By: /s/ Stephen M. Ambler
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Stephen M. Ambler
Chief Financial Officer and
Vice President, Finance