Exhibit 10.38
 Immersion Corporation
 2008 Employment Inducement Award Plan




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Page1.
    
    Establishment, Purpose and Term of Plan
    
    
    11.1
    
    Establishment
    
    
    11.2
    
    Purpose
    
    
    11.3
    
    Term of Plan
    
    
    12.
    
    Definitions and Construction
    
    
    12.1
    
    Definitions
    
    
    12.2
    
    Construction
    
    
    93.
    
    Administration
    
    
    93.1
    
    Administration by the Committee
    
    
    93.2
    
    Authority of Officers
    
    
    103.3
    
    Administration with Respect to Insiders
    
    
    103.4
    
    Committee Complying with Section 162(m)
    
    
    103.5
    
    Powers of the Committee
    
    
    103.6
    
    Option or SAR Repricing
    
    
    113.7
    
    Indemnification
    
    
    114.
    
    Shares Subject to Plan
    
    
    124.1
    
    Maximum Number of Shares Issuable
    
    
    124.2
    
    Share Counting
    
    
    124.3
    
    Adjustments for Changes in Capital Structure
    
    
    125.
    
    Eligibility, Participation and Award Limitations
    
    
    135.1
    
    Persons Eligible for Awards
    
    
    135.2
    
    Participation in the Plan
    
    
    135.3
    
    Award Limitations
    
    
    136.
    
    Stock Options
    
    
    146.1
    
    Exercise Price
    
    
    146.2
    
    Exercisability and Term of Options
    
    
    146.3
    
    Payment of Exercise Price
    
    
    146.4
    
    Effect of Termination of Service
    
    
    156.5
    
    Transferability of Options
    
    
    167.
    
    Stock Appreciation Rights
    
    
    167.1
    
    Types of SARs Authorized
    
    
    167.2
    
    Exercise Price
    
    
    16
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Page7.3
    
    Exercisability and Term of SARs
    
    
    167.4
    
    Exercise of SARs
    
    
    177.5
    
    Deemed Exercise of SARs
    
    
    177.6
    
    Effect of Termination of Service
    
    
    177.7
    
    Transferability of SARs
    
    
    188.
    
    Restricted Stock Awards
    
    
    188.1
    
    Types of Restricted Stock Awards Authorized
    
    
    188.2
    
    Purchase Price
    
    
    188.3
    
    Purchase Period
    
    
    188.4
    
    Payment of Purchase Price
    
    
    198.5
    
    Vesting and Restrictions on Transfer
    
    
    198.6
    
    Voting Rights; Dividends and Distributions
    
    
    198.7
    
    Effect of Termination of Service
    
    
    198.8
    
    Nontransferability of Restricted Stock Award Rights
    
    
    209.
    
    Restricted Stock Unit Awards
    
    
    209.1
    
    Grant of Restricted Stock Unit Awards
    
    
    209.2
    
    Purchase Price
    
    
    209.3
    
    Vesting
    
    
    209.4
    
    Voting Rights, Dividend Equivalent Rights and Distributions
    
    
    219.5
    
    Effect of Termination of Service
    
    
    219.6
    
    Settlement of Restricted Stock Unit Awards
    
    
    219.7
    
    Nontransferability of Restricted Stock Unit Awards
    
    
    2210.
    
    Performance Awards
    
    
    2210.1
    
    Types of Performance Awards Authorized
    
    
    2210.2
    
    Initial Value of Performance Shares and Performance Units
    
    
    2210.3
    
    Establishment of Performance Period, Performance
Goals and Performance
Award Formula
    
    
    2210.4
    
    Measurement of Performance Goals
    
    
    2310.5
    
    Settlement of Performance Awards
    
    
    2410.6
    
    Voting Rights; Dividend Equivalent Rights
and Distributions
    
    
    2510.7
    
    Effect of Termination of Service
    
    
    2610.8
    
    Nontransferability of Performance Awards
    
    
    2611.
    
    Deferred Compensation Awards
    
    
    2711.1
    
    Establishment of Deferred Compensation Award Programs
    
    
    2711.2
    
    Terms and Conditions of Deferred Compensation Awards
    
    
    27
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Page12.
    
    Cash-Based Awards and Other Stock-Based Awards
    
    
    2812.1
    
    Grant of Cash-Based Awards
    
    
    2812.2
    
    Grant of Other Stock-Based Awards
    
    
    2812.3
    
    Value of Cash-Based and Other Stock-Based Awards
    
    
    2912.4
    
    Payment or Settlement of Cash-Based Awards
and Other Stock-Based Awards
    
    
    2912.5
    
    Voting Rights; Dividend Equivalent Rights
and Distributions
    
    
    2912.6
    
    Effect of Termination of Service
    
    
    2912.7
    
    Nontransferability of Cash-Based Awards and Other
Stock-Based Awards
    
    
    2913.
    
    Standard Forms of Award Agreement
    
    
    3013.1
    
    Award Agreements
    
    
    3013.2
    
    Authority to Vary Terms
    
    
    3014.
    
    Change in Control
    
    
    3014.1
    
    Effect of Change in Control on Awards
    
    
    3014.2
    
    Federal Excise Tax Under Section 4999 of the Code
    
    
    3215.
    
    Compliance with Securities Law
    
    
    3216.
    
    Compliance with Section 409A
    
    
    3316.1
    
    Awards Subject to Section 409A
    
    
    3316.2
    
    Deferral and/or Distribution Elections
    
    
    3316.3
    
    Subsequent Elections
    
    
    3416.4
    
    Distributions Pursuant to Deferral Elections
    
    
    3416.5
    
    Unforeseeable Emergency
    
    
    3516.6
    
    Disabled
    
    
    3516.7
    
    Death
    
    
    3616.8
    
    No Acceleration of Distributions
    
    
    3617.
    
    Tax Withholding
    
    
    3617.1
    
    Tax Withholding in General
    
    
    3617.2
    
    Withholding in Shares
    
    
    3618.
    
    Amendment or Termination of Plan
    
    
    3619.
    
    Miscellaneous Provisions
    
    
    3619.1
    
    Repurchase Rights
    
    
    3719.2
    
    Forfeiture Events
    
    
    37
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Page19.3
    
    Provision of Information
    
    
    3719.4
    
    Rights as Employee
    
    
    3719.5
    
    Rights as a Stockholder
    
    
    3719.6
    
    Delivery of Title to Shares
    
    
    3819.7
    
    Fractional Shares
    
    
    3819.8
    
    Retirement and Welfare Plans
    
    
    3819.9
    
    Beneficiary Designation
    
    
    3819.10
    
    Severability
    
    
    3819.11
    
    No Constraint on Corporate Action
    
    
    3819.12
    
    Unfunded Obligation
    
    
    3919.13
    
    Choice of Law
    
    
    39
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Immersion Corporation
2008 Employment Inducement Award Plan
 1. Establishment, Purpose and Term of Plan.
 Establishment .  Plan   Effective Date 
 Purpose .
 Term of Plan.
 2. Definitions and Construction.
 Definitions.
  Affiliate 
  Award 
 1




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 Award Agreement 
  Board 
 Cash-Based Award
  Cause 
  Change in Control 
  2




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 Transaction   Transferee 
    Code 
  Committee 
  Company 
  Deferred Compensation Award 
  Director 
  Disability 
 3




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 Dividend Equivalent Right 
  Employee 
  Exchange Act 
  Fair Market Value 
 The Wall Street Journal
  4




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 Full Value Award 
  Incumbent Director 
 Independent Director
      Rule 4350
 5




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 Insider 
  Insider Trading Policy 
 Net-Exercise
   6




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 Nonstatutory Stock Option 
  Officer 
  Option 
 Other Stock-Based Award
  Ownership Change Event 
  Parent Corporation 
  Participant 
  Participating Company 
  Participating Company Group 
  Performance Award 
  Performance Award Formula 
 7




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 Performance Goal 
  Performance Period 
  Performance Share 
  Performance Unit 
  Restricted Stock Award 
  Restricted Stock Bonus 
  Restricted Stock Purchase Right 
  Restricted Stock Unit  Stock Unit 
  Rule 16b-3 
  SAR   Stock Appreciation Right 
  Section 409A 
  Section 409A Deferred Compensation 
  Securities Act 
 8




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 Service 
  Stock 
  Subsidiary Corporation 
  Vesting Conditions 
 Construction.
 3. Administration.
 Administration by the Committee.
 9




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Authority of Officers.
 Administration with Respect to Insiders.
 Powers of the Committee .
        10




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Option or SAR Repricing.
 Indemnification.
 11




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4. Shares Subject to Plan.
 Maximum Number of Shares Issuable.
 Share Counting.
 Adjustments for Changes in Capital Structure .  New Shares 
 12




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Eligibility, Participation and Award Limitations.
 Persons Eligible for Awards.
 Participation in the Plan.
 Award Limitations.
 Aggregate Limit on Full Value Awards.
 Limit on Full Value Awards without Minimum Vesting.
 13




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Stock Options.
  Exercise Price.
 Exercisability and Term of Options.
 Payment of Exercise Price.
 Forms of Consideration Authorized.  Cashless Exercise 
 Limitations on Forms of Consideration.
 Tender of Stock.
 14




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Cashless Exercise.
 Effect of Termination of Service.
 Option Exercisability.
 Disability.  Option Expiration Date 
 Death.
 Termination for Cause.
 15




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Other Termination of Service.
 Extension if Exercise Prevented by Law or Insider Trading Policy.
 Transferability of Options.
 7. Stock Appreciation Rights.
  Types of SARs Authorized.  Tandem SAR   Freestanding
SAR 
 Exercise Price.
 Exercisability and Term of SARs.
 16




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Tandem SARs.
 Freestanding SARs.
 Exercise of SARs.
 Deemed Exercise of SARs.
 Effect of Termination of Service.
 17




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Transferability of SARs.
 8. Restricted Stock Awards.
  Types of Restricted Stock Awards Authorized.
 Purchase Price.
 Purchase Period.
 18




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Payment of Purchase Price.
 Vesting and Restrictions on Transfer.
 Voting Rights; Dividends and Distributions.
 Effect of Termination of Service.
 19




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Nontransferability of Restricted Stock Award Rights.
 9. Restricted
Stock Unit Awards .
  Grant of Restricted Stock Unit Awards.
 Purchase Price.
 Vesting.
 20




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Voting Rights, Dividend Equivalent Rights and Distributions.
 Effect of Termination of Service.
 Settlement of Restricted Stock Unit Awards.
 21




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Nontransferability of Restricted Stock Unit Awards.
 10. Performance
Awards .
  Types of Performance Awards Authorized.
 Initial Value of Performance Shares and Performance Units.
 Establishment of Performance Period, Performance Goals and Performance Award Formula.
 22




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Measurement of Performance Goals.  Performance Targets   Performance Measure 
 Performance Measures.
           23




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Performance Targets.
 Settlement of Performance Awards.
 Determination of Final Value.
 24




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Effect of Leaves of Absence.
 Notice to Participants.
 Payment in Settlement of Performance Awards.
 Provisions Applicable to Payment in Shares.
 Voting Rights; Dividend Equivalent Rights and Distributions.
 25




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Effect of Termination of Service.
 Death or Disability.
 Other Termination of Service.
 Nontransferability of Performance Awards.
 26




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11. Deferred Compensation Awards .
 Establishment of Deferred Compensation Award Programs.
 Elective Cash Compensation Reduction Awards.
 Stock Issuance Deferral Awards.
    Terms and Conditions of Deferred Compensation Awards.
 Voting Rights; Dividend Equivalent Rights and Distributions .
 27




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Settlement of Deferred Compensation Awards.
 12. Cash-Based
Awards and Other Stock-Based Awards .
  Grant of Cash-Based Awards
 Grant of Other Stock-Based Awards
 28




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Value of Cash-Based and Other Stock-Based Awards
 Payment or Settlement of Cash-Based Awards and Other Stock-Based Awards
 Voting Rights; Dividend Equivalent Rights and Distributions.
 Effect of Termination of Service
 Nontransferability of Cash-Based Awards and Other Stock-Based Awards.
 29




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13. Standard
Forms of Award Agreement .
 Award Agreements .
 Authority to Vary Terms .
 14. Change
in Control .
 Effect of Change in Control on Awards.
 Accelerated Vesting.
 Assumption, Continuation or Substitution.  Acquiror 
 30




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Cash-Out of Outstanding Stock-Based Awards.
 31




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Federal Excise Tax Under Section 4999 of the Code.
 Excess Parachute Payment.
 Determination by Independent Accountants.  Accountants 
 15. Compliance
with Securities Law .
  32




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16. Compliance
with Section 409A .
 Awards Subject to Section 409A.
    Short-Term Deferral Period 
 Deferral and/or Distribution Elections. Election
    33




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Subsequent Elections .
    Distributions Pursuant to Deferral Elections .
        34




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 Delayed
Payment Date 
 Unforeseeable Emergency
  Disabled.
    35




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Death
 No Acceleration of Distributions.
 17. Tax
Withholding .
 Tax Withholding in General.
 Withholding in Shares.
 18. Amendment
or Termination of Plan .
  19. Miscellaneous Provisions .
 36




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Repurchase Rights .
 Forfeiture Events.
   Provision of Information.
 Rights as Employee.
 Rights as a Stockholder.
 37




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Delivery of Title to Shares.
 Fractional Shares.
 Retirement and Welfare Plans
 Beneficiary Designation.
 Severability
 No Constraint on Corporate Action.
 38




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Unfunded Obligation.
 Choice of Law.
   39




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PLAN HISTORY AND NOTES TO COMPANY
 April 30, 2008
    
    Board adopts Plan with a share
reserve equal to 1,800,000 shares.IMPORTANT NOTE: Implementation of
Section 11Deferred Compensation
Awards or deferral of settlement of
any Award
    
    Upon establishment of a provision
for deferral of settlement of any
Award, determine whether such
program will constitute a top-hat
pension plan under ERISA. If so,
file notice with Dept. of Labor
under ERISA Reg. 2520.104-23 within
120 days of adoption of resolutions
by the Committee to establish the
program to obtain exemption from
reporting and disclosure
requirements of ERISA. Include
claims procedure in award agreements
evidencing such awards.