8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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): January 15, 2009

IMMERSION CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	000-27969	94-3180138
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

801 Fox Lane
San Jose, California 95131
(Address of principal executive offices) (Zip Code)

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:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

 EX-99.1

 EX-99.2

 EX-99.3

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

     (c) On January 9, 2009, Immersion Corporation (the “Company”) consolidated its Touch Interface Product, Gaming and Mobility business units into one business unit referred to as the Touch Line of Business. In connection with the consolidation, the Company appointed G. Craig Vachon as Senior Vice President and General Manager of the Company’s Touch Line of Business, effective January 12, 2009. Mr. Vachon, age 44, previously served as Vice President and General Manager of the Company’s Mobility Line of Business since September, 2008. From February 2006 to September 2008, Mr. Vachon served as Vice President of Corporate Development of Atrua Technologies, Inc. and from March 2004 to February, 2006, Mr. Vachon served as the CEO and President of Varatouch Technology, Inc., which was acquired by Atrua Technologies, Inc. in February 2006. From November 2001 to November 2003, he served as CEO and Chairman of Sirenic, Inc. Mr. Vachon holds a B.S. in Communication and an M.S. in Business Communication from Emerson College.

     (e) The Company entered into an offer of employment with Mr. Vachon (the “Offer Letter”) dated September 7, 2008 pursuant to which he was initially employed as Vice President and General Manager of Mobility at salary of $230,000 and a sign on bonus in the amount of $25,000; this bonus must be reimbursed on a pro rata basis to the Company in the event Mr. Vachon voluntarily terminates his employment prior to September 29, 2009. Mr. Vachon participated in the Company’s 2008 executive bonus plan with a target annual bonus amount of $138,000, of which $25,000 is guaranteed and which amount of payout will be determined in February 2009; this bonus must be reimbursed on a pro rata basis to the Company in the event Mr. Vachon voluntarily terminates his employment prior to September 29, 2009. Mr. Vachon is eligible for housing assistance for the first six months of his employment. During the first three month period, he is entitled to reimbursement of actual and reasonable expenses incurred for lodging and meal expenses, and for the second three month period, the Company will pay $2,000 per month to off-set living expenses. On October 14, 2008, Mr. Vachon received an option to purchase 150,000 shares of common stock of the Company pursuant to the Company’s 2008 Employment Inducement Award Plan (the “Option”). The Option will vest over four years at the rate of 25% on the one year anniversary of the commencement of employment, and thereafter in equal monthly installments at the rate of 1/48th per month over the remaining 36 months. A copy of the Offer Letter is attached hereto as Exhibit 99.1.

     In connection with Mr. Vachon’s appointment to Senior Vice President and General Manager of the Company’s Mobility Line of Business, he will receive an option to purchase 50,000 shares of common stock of the Company pursuant to the Company’s 2007 Equity Incentive Plan. This option will vest over four years at the rate of 25% on January 9, 2010, and thereafter in equal monthly installments at the rate of 1/48^th per month over the remaining 36 months.

     The Company has also entered into an indemnification agreement with Mr. Vachon in form and substance substantially as previously filed by the Company as an exhibit to its annual report on Form 10-K filed with the Securities and Exchange Commission.

     The Company has also entered into a retention and ownership change event agreement (the “Retention Agreement”) with Mr. Vachon in form attached hereto as Exhibit 99.2. The Retention Agreement provides for the payment of severance and health insurance premiums upon the occurrence of certain events. In the event that his employment with the Company is terminated by the Company without cause, Mr. Vachon will be entitled to receive a lump sum severance payment equal to 6 months base salary and payments of health insurance premiums for the earlier of 6 months or the date on which Mr. Vachon first becomes eligible to obtain other group health insurance coverage. In the event that Mr. Vachon’s employment with the Company is terminated by the Company without cause, or is terminated by him with good reason, in either case, in connection with an ownership change event of the Company, then Mr. Vachon will also be entitled to receive a lump sum severance payment equal to 12 months base salary and payments of health insurance premiums for the earlier of 12 months or the date on which Mr. Vachon first becomes eligible to obtain other group health insurance coverage. Payment of the foregoing benefits will be conditioned upon Mr. Vachon’s execution of a general release of claims.

     A copy of the press release dated January 15, 2009 announcing Mr. Vachon’s appointment is attached hereto as Exhibit 99.3.

Item 9.01 Financial Statements and Exhibits.

     (d) Exhibits.

Exhibit No.	Description
99.1	Offer Letter dated September 7, 2008 by and between Immersion Corporation and G. Craig Vachon
99.2	Retention and Ownership Change Event Agreement dated October 3, 2008 by and between Immersion Corporation and G. Craig Vachon
99.3	Press Release dated January 15, 2009 regarding the appointment of G. Craig Vachon as Senior Vice President and General Manager of Immersion’s Touch Line of Business

     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.

Date: January 15, 2009	IMMERSION CORPORATION
	By:	/s/ Stephen M. Ambler
		Stephen M. Ambler
		Chief Financial Officer and Vice President, Finance

EXHIBIT INDEX

Exhibit No.	Description
99.1	Offer Letter dated September 7, 2008 by and between Immersion Corporation and G. Craig Vachon
99.2	Retention and Ownership Change Event Agreement dated October 3, 2008 by and between Immersion Corporation and G. Craig Vachon
99.3	Press Release dated January 15, 2009 regarding the appointment of G. Craig Vachon as Senior Vice President and General Manager of Immersion’s Touch Line of Business

EX-99.1

Exhibit 99.1

September 7, 2008

Guy Craig Vachon
1979 Shelby Circle
El Dorado Hills, CA 95762

RE: Employment with Immersion Corporation

Dear Craig:

     This offer supersedes the previous offer dated September 5, 2008.

     Immersion Corporation (the “Company” or “Immersion”) is pleased to present this offer for the position of Vice President & General Manager of Mobility, on the terms set forth in this agreement, effective upon your acceptance by execution of a counterpart copy of this letter where indicated below.

     Reporting Duties and Responsibilities. In this position, you will report to the Company’s President and CEO, Clent Richardson.

     Salary and Benefits. Your initial base salary will be $230,000.00 annually, payable in accordance with the Company’s customary payroll practice, which is bi-weekly. This offer is for a full-time, salaried, exempt position. In addition, you will receive a sign on bonus in the amount of $25,000.00 to be paid within your first week of employment. Should you leave voluntarily within your first year of employment with Immersion, the sign on bonus will be required to be repaid on a prorated basis. Your performance will be reviewed in January 2009 during our Company’s focal review process, and annually thereafter, at which time you may receive an annual merit increase.

     Further, upon approval by the Company’s Board of Directors (the “Board”), you will be eligible for a bonus in accordance with the Company’s 2008 Executive Incentive Plan of up to 60% of your salary, and (i) 50% of which is based upon the Company’s performance, and (ii) 50% of which is based upon Business Unit and department performance criteria. The company will guarantee $25,000 of your Q4 2008 bonus which will be paid at the normal bonus payout period in February 2009. This bonus will be subject to pro-rata repayment should you voluntarily leave Immersion within your first year of employment.

     Additionally, the company will provide you with housing assistance for your first 6 months of employment as follows:

- Reimbursement of actual, reasonable, expenses incurred during the first 3 months of your employment for lodging and meal expenses.

- For the second 3 month period, the company will offer $2000 per month to off-set your living expenses.

     Background Investigation. This offer is contingent upon the completion of a satisfactory investigation concerning your background and references. This agreement may be revoked in the event the results of the investigation do not meet Immersion’s requirements.

     Stock Options. Subject to the approval of the Board, the Company will grant you an option to purchase 150,000 shares of the Company’s Common Stock pursuant to the Company’s 2007 Equity Incentive Plan and standard stock option agreement in effect at that time. All shares of stock subject to your option will have an exercise price equal to the fair market value of the Company’s Common Stock at the date of grant. So long as you remain employed by the Company, your option will become exercisable over a four-year period with 25% of the shares vesting at the end of your first twelve months of service, and an additional 2.083% vesting at the end of each month thereafter.

Immersion Corporation 801 Fox Lane, San Jose, CA 95131 USA T: +1 408.467.1900 F: +1 408.467.1901 www.immersion.com

     Change of Control Benefits. Subject to the approval of the Compensation Committee of the Board, the Company will enter into the Retention and Ownership Change Event Agreement, enclosed.

     Confidential Information. As an employee of the Company, you will have access to certain Company confidential information and you may during the course of your employment, develop certain information or inventions that will be the property of the Company. To protect the interest of the Company, you will need to sign the Company’s standard “Employee Inventions and Confidentiality Agreement” as a condition of your employment. A copy of the agreement is attached for your review. We wish to impress upon you that we do not wish you to bring with you any confidential or proprietary material of any former employer or to violate any other obligation to your former employers.

     At-Will Employment. While we look forward to a long and profitable relationship, should you decide to accept our offer, you will be an at-will employee of the Company, which means the employment relationship can be terminated by either of us for any reason at any time. Any statements or representations to the contrary (and indeed, any statements contradicting any provision in this letter) are ineffective. Further, your participation in any stock option or benefit program is not an assurance of continued employment for any particular period of time.

     Authorization to Work. The Immigration Reform and Control Act of 1986 requires you, within three business days of hire, to present documentation demonstrating that you have authorization to work in the United States. Acceptable documentation is shown on the enclosed form titled Employment Eligibility Verification (Form 1-9). Please bring this form, along with the appropriate documentation, to the new employee orientation on your first day of employment. If you have questions about this requirement, which applies to U.S. citizens and non-U.S. citizens alike, please contact our Human Resources department.

     Term of Offer. This offer will remain open until close of business on September 12, 2008. If you decide to accept our offer, and we hope that you will, please sign the enclosed copy of this letter in the space indicated and return it to me. Upon your signature below, this agreement and the other agreements referenced herein will become our binding agreement with respect to the subject matter of this letter (although the Retention and Ownership Change Event Agreement and eligibility for the Company’s Executive Incentive Plan will only become effective as described above), superseding in their entirety all other or prior agreements by you with the Company as to the specific subjects addressed in this letter. This agreement will be binding upon and inure to the benefit of our respective successors and assigns, and heirs, administrators and executors, will be governed by California law, and may only be amended in a writing signed by you and an authorized officer of the Company.

     Start Date. This offer is made with the understanding that you will start employment with Immersion on September 29, 2008. For purposes of this Agreement, the term “start date” shall mean the day on which you commence employment with the Company.

     We are excited and pleased to have you join the Immersion team in this exciting role and we look forward to a mutually beneficial working relationship.

Sincerely,
/s/ Clent Richardson Clent Richardson	/s/ Janice Passarello Janice Passarello
President & CEO	VP, Human Resources
Agreed and Accepted
/s/ Guy Craig Vachon Guy Craig Vachon	September 7, 2008 Date

EX-99.2

Exhibit 99.2

AMENDED AND RESTATED RETENTION AND OWNERSHIP CHANGE EVENT AGREEMENT

     This Amended and Restated Retention and Ownership Change Event Agreement (“Agreement”) is made effective as of the last date set forth below by and between Immersion Corporation (the “Company”) and Guy Craig Vachon (“Executive”).

RECITALS

     The Company intends that income provided to Executive pursuant to this Agreement will not be subject to taxation under Section 409A, and the provisions of this Agreement shall be interpreted and construed in favor of satisfying any applicable requirements of Section 409A. However, the Company does not guarantee any particular tax effect for income provided to Executive pursuant to this Agreement. In any event, except for the Company’s responsibility to withhold applicable income and employment taxes from compensation paid or provided to Executive, the Company shall not be responsible for the payment of any applicable taxes on compensation paid or provided to Executive pursuant to this Agreement.

     The Board has determined that it is in the best interests of the Company to assure that the Company will have the continued dedication and service of the Executive, notwithstanding the possibility or occurrence of a Change in Control (as defined below) of the Company.

AGREEMENT

     In recognition thereof, the parties now agree as follows:

     1. Definitions. For purposes of this Agreement:

          (a) “Change in Control” means the occurrence of any of the following:

               (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) becomes the “beneficial owner” (as defined in Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the total combined voting power of the Company’s then-outstanding securities entitled to vote generally in the election of the Company’s Board of Directors; provided, however, that the following acquisitions shall not constitute a Change in Control: (1) an acquisition by any such person who on the effective date of such transaction is the beneficial owner of more than fifty percent (50%) of such voting power, (2) any acquisition directly from the Company, including, without limitation, a public offering of securities, (3) any acquisition by the Company, (4) any acquisition by a trustee or other fiduciary under an employee benefit plan of the Company or (5) any acquisition by an entity owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the voting securities of the Company; or

               (ii) an Ownership Change Event or series of related Ownership Change Events (collectively, a “Transaction”) in which the stockholders of the Company immediately before the Transaction do not retain immediately after the Transaction direct or indirect beneficial ownership of more than fifty percent (50%) of the total combined voting power of the outstanding securities entitled to vote generally in the election of Directors or, in

the case of an Ownership Change Event described in Section l(c)(iii), the entity to which the assets of the Company were transferred (the “Transferee”), as the case may be; or

               (iii) a liquidation or dissolution of the Company;

provided, however, that a Change in Control shall be deemed not to include a transaction described in subsections (i) or (ii) of this Section l(a) in which a majority of the members of the Board of Directors of the continuing, surviving or successor entity, or parent thereof, immediately after such transaction is comprised of incumbent members. Notwithstanding the foregoing, to the extent that any amount that constitutes deferred compensation subject to and not exempted from the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), would become payable under this Agreement by reason of a Change in Control, such amount shall become payable only if the event constituting a Change in Control would also constitute a change in ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company within the meaning of Section 409A.

          (b) “Good Reason” means any of the following conditions, which condition(s) remain(s) in effect thirty (30) days after written notice to the Board or the Company’s Chief Executive Officer from Executive of such condition(s):

               (i) a material decrease in Executive’s base salary, other than a material decrease that applies generally to other executives of the Company at Executive’s level;

               (ii) a material, adverse change in the Executive’s title, authority, responsibilities, or duties; or

               (iii) the relocation of the Executive’s work place for the Company to a location that is more than forty (40) miles distant from Executive’s present work location for the Company;

provided, that such written notice must be given within thirty (30) days following the first occurrence of any of the good reason conditions set forth in this subsection (b) and the Executive’s resignation must occur within six (6) months following the first occurrence of the good reason condition.

          (c) “Ownership Change Event” means the occurrence of any of the following with respect to the Company: (i) the direct or indirect sale or exchange in a single or series of related transactions by the stockholders of the Company of more than fifty percent (50%) of the voting stock of the Company; (ii) a merger or consolidation in which the Company is a party; or (iii) the sale, exchange, or transfer of all or substantially all of the assets of the Company (other than a sale, exchange or transfer to one or more subsidiaries of the Company).

          (d) a termination for “Cause” means Executive’s termination based upon (1) Executive’s theft, dishonesty, misconduct, breach of fiduciary duty, or falsification of any Company documents or records; (2) Executive’s material failure to abide by the Company’s code of conduct or other policies (including, without limitation, policies relating to confidentiality and reasonable workplace conduct); (3) Executive’s unauthorized use, misappropriation, destruction or diversion of any tangible or intangible asset or corporate opportunity of the Company (including, without limitation, Executive’s improper use or disclosure of the Company’s

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confidential or proprietary information); (4) any intentional act by the Executive that has a material detrimental effect on the Company’s reputation or business; (5) Executive’s repeated failure or inability to perform any reasonable assigned duties after written notice from the Company of, and a reasonable opportunity to cure, such failure or inability; (6) Executive’s conviction (including any plea of guilty or nolo contendere) for any criminal act that impairs Executive’s ability to perform her duties for the Company.

          (e) “Separation from Service” shall have the meaning determined by Treasury Regulations issued pursuant to Section 409A.

     2. Termination Without Cause. In the event that the Company or its successor terminates Executive’s employment without Cause and Executive is not entitled to receive the severance pay and benefits described in Section 3 below, Executive will be entitled to receive the following payment and benefits, provided that prior to the sixtieth (60th) day following the date of such termination Executive has signed a general release of known and unknown claims of known and unknown claims in a form satisfactory to the Company, and the period for revocation has lapsed without the general release having been revoked:

          (a) payment in a lump sum on the sixtieth (60th) day following Executive’s termination of employment of an amount equal to six (6) months’ base salary at Executive’s final base salary rate, subject to applicable withholding; and

          (b) commencing on the sixtieth (60th) day following Executive’s termination of employment, payment of the premiums (including reimbursement to Executive of any such premiums paid by Executive during such sixty (60) day period) necessary to continue Executive’s group health insurance coverage under COBRA until the earlier of (i) six (6) months following Executive’s termination date, or (ii) the date on which Executive first becomes eligible to obtain other group health insurance coverage. Thereafter, Executive may elect to purchase continued group health insurance coverage at her own expense in accordance with COBRA. Notwithstanding the foregoing, payment of such premiums shall not commence unless and until Executive has incurred a Separation from Service.

     In the event that a Change in Control constituting a change in ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company within the meaning of Section 409A (a “Section 409A Change in Control Event”) occurs on or before the ninetieth (90th) day following a date on which Executive experiences a termination of employment in connection with which Executive is entitled to receive the payment provided by Section 2(a), Executive will be entitled to receive the following additional payment and benefits:

          (c) payment on the sixtieth (60th) day following the Section 409A Change in Control Event of an amount equal to six (6) months’ base salary at Executive’s final base salary rate, subject to applicable withholding; and

          (d) commencing with the seventh (7th) month following Executive’s termination of employment, payment of the premiums necessary to continue Executive’s group health insurance coverage under COBRA until the earlier of (i) twelve (12) months following Executive’s termination date, or (ii) the date on which Executive first becomes eligible to obtain other group health insurance coverage. Thereafter, Executive may elect to purchase continued

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group health insurance coverage at her own expense in accordance with COBRA. Notwithstanding the foregoing, payment of such premiums shall not commence unless and until Executive has incurred a Separation from Service.

     3. Termination Without Cause or Resignation for Good Reason Due to a Change in Control. In the event that, within one (1) year following a Change in Control, the Company or its successor terminates Executive’s employment without Cause or Executive resigns for Good Reason, Executive will be entitled to receive the following payment and benefits, provide that prior to the sixtieth (60th) day following the date of such termination Executive has signed a general release of known and unknown claims of known and unknown claims in a form satisfactory to the Company, and the period for revocation has lapsed without the general release having been revoked:

          (a) payment in a lump sum on the sixtieth (60th) day following Executive’s termination of employment of an amount equal to twelve (12) months’ base salary at Executive’s final base salary rate, subject to applicable withholding; and

          (b) commencing on the sixtieth (60th) day following Executive’s termination of employment, payment of the premiums (including reimbursement to Executive of any such premiums paid by Executive during such sixty (60) day period) necessary to continue Executive’s group health insurance coverage under COBRA until the earlier of (i) twelve (12) months following Executive’s termination date, or (ii) the date on which Executive first becomes eligible to obtain other group health insurance coverage. Thereafter, Executive may elect to purchase continued group health insurance coverage at her own expense in accordance with COBRA. Notwithstanding the foregoing, payment of such premiums shall not commence unless and until Executive has incurred a Separation from Service.

     4. Voluntary Termination. In the event that Executive resigns from her employment with the Company at any time (other than a resignation for Good Reason during the period covered by Section 3), or in the event that Executive’s employment terminates at any time as a result of her death or disability (meaning Executive is unable to perform her duties for any consecutive six (6) month period, with or without reasonable accommodation, as a result of a physical and/or mental impairment), Executive will be entitled to no compensation or benefits from the Company other than those earned through the date of Executive’s termination. Executive agrees that if she resigns from her employment with the Company, she will provide the Company with 20 calendar days’ written notice of such resignation. The Company may, in its sole discretion, elect to waive all or any part of such notice period and accept the Executive’s resignation at an earlier date.

     5. Termination for Cause. If Executive’s employment is terminated by the Company at any time for Cause as defined above in paragraph 1, Executive will be entitled to no compensation or benefits from the Company other than those earned through the date of her termination for Cause.

     6. Compliance With Section 409A.

          (a) Notwithstanding anything set forth herein to the contrary, no amount payable pursuant to Section 2 or Section 3 of the Agreement which constitutes a “deferral of compensation” within the meaning of Treasury Regulations promulgated pursuant to Section

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409A (the “Section 409A Regulations”) shall be paid unless and until Executive has incurred a Separation from Service. Furthermore, to the extent that Executive is a “specified employee” of the Company as of the date of Executive’s separation from service, no amount that constitutes a deferral of compensation which is payable on account of the Employee’s separation from service shall paid to Executive before the date (the “Delayed Payment Date”) which is first day of the seventh month after the date of Executive’s separation from service or, if earlier, the date of Executive’s death following such separation from service. All such amounts that would, but for this paragraph, become payable prior to the Delayed Payment Date will be accumulated and paid on the Delayed Payment Date.

          (b) The parties intend that the payments and benefits provided to Executive pursuant to this Agreement be paid in compliance with Section 409A so that no excise tax is incurred under Section 409A. To the extent permitted by Section 409A and the Section 409A Regulations, the parties agree to modify this Agreement, the timing (but not the amount(s)) of the payments or benefits provided herein, or both, to the extent necessary to comply with Section 409A.

     7. At-Will Employment. Notwithstanding anything contained in this Agreement, the parties acknowledge and agree that Executive’s employment with the Company is and shall continue to be “at-will.”

     8. Dispute Resolution. In the event of any dispute or claim between the parties, including any claims relating to or arising out of this Agreement or the termination of Executive’s employment with the Company for any reason, Executive and the Company agree that all such disputes shall be fully resolved by binding arbitration conducted by the American Arbitration Association (“AAA”) in Santa Clara County, under the AAA’s National Rules for the Resolution of Employment Disputes then in effect, which are available online at the AAA’s website at www.adr.org. Executive and the Company each acknowledge and agree that they arc waiving their respective rights to have any such disputes or claims tried by a judge or jury.

     9. Notices. Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when received if mailed by U.S. registered or certified mail, return receipt requested and postage prepaid. In the case of the Executive, mailed notices shall be addressed to the Executive at the home address which the Executive most recently communicated to the Company in writing. In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Chief Executive Officer.

     10. Successors.

          (a) Company’s Successors. Any successor to the Company (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or purchase of all or substantially all of the Company’s business and/or assets) shall assume the Company’s obligations under this Agreement in writing and agree expressly to perform the Company’s obligations under this Agreement in the same manner and to the same extent that the Company would be required to perform such obligations in the absence of a succession. For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business and/or assets which executes and delivers the assumption agreement described in this subsection (a) or which becomes bound by the terms of this Agreement by operation of law.

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          (b) Executive’s Successors. Without the written consent of the Company, the Executive shall not assign or transfer this Agreement or any right or obligation under this Agreement to any other person or entity. Notwithstanding the foregoing, the terms of this Agreement and all rights of the Executive hereunder shall inure to the benefit of, and be enforceable by, the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

     11. Miscellaneous Provisions.

          (a) No Duty to Mitigate. The Executive shall not be required to mitigate the amount of any payment contemplated by this Agreement, nor shall any such payment be reduced by any earnings that the Executive may receive from any other source.

          (b) Modification/Waiver. No provision of this Agreement may be amended, modified, waived or discharged unless the amendment, modification, waiver or discharge is agreed to in writing and signed by the Executive and by an authorized officer of the Company (other than Executive). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time.

          (c) Integration. This Agreement constitutes the entire agreement and understanding between the parties regarding Executive’s retention and severance benefits, and it supersedes all prior or contemporaneous agreements, whether written or oral, regarding that subject matter, including the Prior Agreement.

          (d) Choice of Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of California.

          (e) Severability. The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect.

          (f) Employment Taxes. All payments made pursuant to this Agreement shall be subject to withholding of applicable income and employment taxes.

          (g) Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument.

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THE PARTIES SIGNING BELOW HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND AND AGREE TO EACH AND EVERY PROVISION CONTAINED HEREIN.

Dated: 7 Sept 08	/s/ Guy Craig Vachon Guy Craig Vachon
	Immersion Corporation
Dated: 9-7-08	By:	/s/ Clent Richardson
	Its:	President and Chief Executive Officer

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EX-99.3

EXHIBIT 99.3

Craig Vachon Appointed Senior Vice President and General Manager of Immersion’s Touch Line of Business

SAN JOSE, Calif., Jan 15, 2009 (BUSINESS WIRE) –

Immersion Corporation (NASDAQ:IMMR), the leader in developing and licensing touch feedback technology, today announced that Craig Vachon has been appointed senior vice president and general manager of its Touch line of business. Immersion’s Touch line of business encompasses its Mobile, Touch Interface Products, and Gaming groups.

“We are moving aggressively to optimize our business for sustained growth and long-term profitability by organizing into two lines of business — Touch and Medical,” said Clent Richardson, Immersion president and CEO. “Under a fully integrated Touch line of business, we will realize functional synergies to gain speed, simplicity, and accountability. Since joining Immersion, Craig has proven his ability to organize and drive his team, advance our products, form partnerships, and achieve critical design wins. We expect his leadership to bring renewed vigor and focus to capturing the tremendous potential for our haptics technology across the global touch market.”

“The touch interface is a dominant theme in consumer electronics and user experiences of all digital devices. Immersion’s ability to shape this important piece of the user experience is both compelling and uniquely Immersion’s,” said Vachon. “With the world’s most complete haptic patent portfolio, Immersion is ideally positioned to attack this large, fast-growing, global opportunity. My mandate in this new role is to drive the expansion of Immersion’s TouchSense(R) haptic solutions into the ecosystem building and using touch-enabled products.”

Vachon was previously vice president and general manager of Immersion’s Mobility business group. He has a distinguished career in the U.S. and international mobile industry, including leadership positions at major mobile operators, as well as software, services, and technology licensing companies. His experience with wireless operators includes serving as chief operating officer of Nextel International Japan; director of business development for AT&T Wireless Services, International; vice president of sales and marketing for Birla AT&T Communications in India; and regional director of new product development for AT&T Wireless Services/McCaw Cellular in the U.S. In addition, he brings extensive experience in mobile software and services through his entrepreneurial experience in companies such as Varatouch Technology, an intellectual property company dedicated to the design of innovative analog input devices (acquired by mobile touch control provider Atrua), and Sirenic, a mobile information access software provider.

About Immersion (www.immersion.com)

Founded in 1993, Immersion Corporation is the recognized leader in developing, licensing, and marketing digital touch technology and products. Using Immersion’s advanced touch feedback technology (http://www.immersion.com/corporate/products/), electronic user interfaces are more compelling, entertaining, and in many applications, safer and more productive. Immersion’s technology has helped manufacturers develop innovative and creative solutions for products such as hundreds of video games and leading video console gaming systems, medical training simulators installed around the world, driver controls for automotive manufacturers, and mobile phones, such as those from LG and Samsung. Immersion’s patent portfolio includes over 700 issued or pending patents in the U.S. and other countries.

Forward-Looking Statements

This press release contains “forward-looking statements” that involve risks and uncertainties as well as assumptions that, if they never materialize or prove incorrect, could cause the results of Immersion Corporation and its consolidated subsidiaries to differ materially from those expressed or implied by such forward-looking statements.

All statements, other than the statements of historical fact, are statements that may be deemed forward-looking statements, including statements regarding realizing functional synergies to gain speed, simplicity, and accountability, expecting Vachon’s leadership to bring renewed vigor and focus to capturing the tremendous potential for our haptics technology across the global touch market, and Immersion being ideally positioned to attack a large, fast-growing, global opportunity; and statements of belief or assumptions underlying any of the foregoing. Immersion’s actual results might differ materially from those stated or implied by such forward-looking statements due to risks and uncertainties associated with Immersion’s business, which include, but are not limited to, delay in or failure to achieve commercial demand for our products or a delay in or failure to achieve the

acceptance of force feedback as a critical user experience.

For a more detailed discussion of these factors and other factors that could cause Immersion’s actual results to vary materially, interested parties should review the risk factors listed in Immersion’s most current Form 10-Q, which is on file with the U.S. Securities and Exchange Commission. The forward-looking statements in this press release reflect Immersion’s beliefs and predictions as of the date of this release. Immersion disclaims any obligation to update these forward-looking statements as a result of financial, business, or any other developments occurring after the date of this release.

Immersion, the Immersion logo, and TouchSense are trademarks of Immersion Corporation in the U.S. and other countries. All other trademarks are the property of their respective owners.

SOURCE: Immersion Corporation

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