Document:

exv10w40

     Exhibit 10.40

RESIGNATION AGREEMENT

AND GENERAL RELEASE OF CLAIMS

1. Victor Viegas (“Executive”) is employed by Immersion Corporation (the “Company”) as its
President and Chief Executive Officer. Executive and the Company are parties to an Amended and
Restated Employment Agreement of December 1, 2007 (the “Employment Agreement”). Executive has now
decided to resign from his employment with the Company. It is the Company’s desire to provide
Executive with certain benefits that he would not otherwise be entitled to receive upon his
resignation and to resolve any claims that Executive has or may have against the Company.
Accordingly, Executive and the Company agree as set forth below. This Agreement will become
effective on the eighth day after it is signed by Executive (the “Effective Date”), provided that
Executive has not revoked this Agreement (by email notice to LPeter@immersion.com) prior to that
date.

2. (a) Except as provided in the second sentence of this Paragraph, Executive hereby resigns from
his employment, and from any positions that he holds as an officer or manager, with the Company and
any positions that he holds as an officer, manager or director with respect to any of its
subsidiaries, with all such resignations effective as of April 28, 2008 (the “Resignation Date”).
Executive and the Company agree that following the Resignation Date, Executive shall remain the
Chairman and a member of the Company’s Board of Directors (the “Board”). (b) Upon the Company’s
request, Executive shall execute any documents reasonably required to give effect to any of the
resignations described in the first sentence of this Paragraph.

3. During the period between the Resignation Date and May 30, 2008, Executive will make himself
available to assist the Company’s new Chief Executive Officer in any manner requested by the
Company or the new Chief Executive Officer, including, the orderly transition of Executive’s
duties, the transfer of information relevant to the Company’s business and/or customers, and
attendance at Company or customer meetings.

4. The Company will provide Executive with the following after the Effective Date:

          (a) Subject to Executive’s compliance with Sections 2(b), 3, 8, 9 and 10 of this Agreement,
during the period between the Resignation Date and May 30, 2009, the Company will continue to pay
Executive his base salary at his final base salary rate as of the Resignation Date; such salary
continuation payments will be made in equal monthly installments on or about the 15th day of each
month, and will be subject to applicable withholding;

          (b) Subject to Executive’s compliance with Sections 2(b), 3, 8, 9 and 10 of this Agreement, in
the event that Executive elects to obtain continued group health insurance coverage in accordance
with federal law (COBRA) following the Resignation Date, the Company will pay the premiums for such
coverage through the earlier of May 30, 2009, or the date on which Executive first obtains other
group health insurance coverage; thereafter, Executive may elect to purchase continued group health
insurance coverage at his own expense in accordance with COBRA;

          (c) during the period in which he continues to serve as a member of the Board, Executive will
be allowed to retain and/or continue to use, so long as such use is reasonable and

1

 

appropriate, (i) the laptop personal computer previously provided to Executive by the Company, (ii)
Executive’s Company email address, and (iii) Executive’s Company telephone extension;

          (d) during the period in which he continues to serve as a member of the Board, Executive will
be entitled to receive the accelerated stock option vesting described in Section 7(a) of the
Employment Agreement upon a “Change of Control” (as that term is defined in Section 8 of the
Employment Agreement);

          (e) with respect to any unvested stock options previously granted to Executive by the Company,
all such options will continue vesting during the period in which Executive continues to serve as a
member of the Board; Executive’s unvested stock options will stop vesting on the date that he
ceases to serve as a member of the Board, and Executive shall have a period of six months following
the date on which he ceases to serve as a member of the Board (but in no event beyond the term of
the applicable option) in which to exercise his right to purchase any of his vested stock options;
except as modified by this subparagraph and subparagraph (d), Executive’s Company stock options
shall continue to be subject to the terms and conditions of the applicable stock option plans and
agreements, which agreements, as amended herein, shall remain in full force and effect
notwithstanding any other term of this Agreement to the contrary; and

          (f) to the extent that other Company executives earn incentive payments under such plans for
FY 2008, Executive will be paid a prorated incentive payment under his FY 2008 Executive Incentive
Plan (the “Plan”); such incentive payment will be calculated in accordance with the terms of the
Plan, will be prorated based upon the number of days Executive is employed by the Company during FY
2008, and will be paid to Executive at the same time that such incentive payments are paid to other
Company executives.

Upon receipt by Executive of his regular pay check for the pay period ending on the Resignation
Date together with payment for                 vacation time, Executive acknowledges that he has been paid
all wages and accrued, unused vacation/paid time off that Executive earned during his employment
with the Company except for that under Section 4(f) above. Executive understands and acknowledges
that he shall not be entitled to any payments or benefits from the Company other than those
expressly set forth in this Paragraph 4. So long as Executive continues to serve on the Company’s
Board of Directors, beginning on July 1, 2009, Executive shall be entitled to receive all
compensation benefits provided to non-employee members of the Board of Directors.

5. Executive and his successors release the Company, its parents, divisions, subsidiaries, and
affiliated entities, and each of their respective current and former shareholders, investors,
directors, officers, employees, agents, attorneys, insurers, legal successors and assigns of and
from any and all claims, actions and causes of action, whether now known or unknown, which
Executive now has, or at any other time had, or shall or may have against those released parties
based upon or arising out of any matter, cause, fact, thing, act or omission whatsoever occurring
or existing at any time up to and including the date on which Executive signs this Agreement,
including, but not limited to, any claims of breach of contract, wrongful termination, retaliation,
fraud, defamation, infliction of emotional distress or national origin, race, age, sex, sexual
orientation, disability or other discrimination or harassment under the Civil Rights Act of 1964,
the Age Discrimination In Employment Act of 1967, the Americans with Disabilities Act, the Fair
Employment and Housing Act or any other applicable law.

2

 

6. The release of claims contained in Paragraph 5 will not apply to any rights or claims that
cannot be released by Executive as a matter of law, and it shall not in any way affect or impair
Executive’s right to be indemnified by the Company to the fullest extent permitted by any statute,
law, or the Indemnity Agreement of January 14, 2004 between the Company and Executive which remains
in full force and effect and covers Executive’s ongoing services as a member of the Board
(including but not limited to indemnification with respect to that certain litigation: In re
Immersion Corporation Initial Public Offering Securities Litigation, No. Civ. 01-9975 (S.D.N.Y.),
related to In re Initial Public Offering Securities Litigation, No. 21 MC 92 (S.D.N.Y.)).

7. Executive acknowledges that he has read section 1542 of the Civil Code of the State of
California, which states in full:

A general release does not extend to claims which the creditor does not know
or suspect to exist in his or her favor at the time of executing the
release, which if known by him or her must have materially affected his or
her settlement with the debtor.

Executive waives any rights that he has or may have under section 1542 (or any similar provision of
the laws of any other jurisdiction) to the full extent that he may lawfully waive such rights
pertaining to this general release of claims, and affirms that he is releasing all known and
unknown claims that he has or may have against the parties listed above.

8. Executive acknowledges and agrees that he shall continue to be bound by and comply with the
terms of any proprietary rights, assignment of inventions and/or confidentiality agreements between
the Company and Executive. Promptly following the Resignation Date, except as provided in
Paragraph 4(c), Executive will return to the Company, in good working condition, all Company
property and equipment that is in Executive’s possession or control, including, but not limited to,
any files, records, computers, computer equipment, cell phones, credit cards, keys, programs,
manuals, business plans, financial records, and all documents (and any copies thereof) that
Executive prepared or received in the course of his employment with the Company.

9. Executive agrees that he will not, at any time in the future, make any critical or disparaging
statements about the Company, its products or its employees, unless such statements are made
truthfully in response to a subpoena or other legal process.

10. Executive agrees that for a period of two years following the Resignation Date, he will not, on
behalf of himself or any other person or entity, directly or indirectly solicit any employee of the
Company to terminate his/her employment with the Company.

11. In the event of any legal action relating to or arising out of this Agreement, the prevailing
party shall be entitled to recover from the losing party its attorneys’ fees and costs incurred in
that action.

12. If any provision of this Agreement is deemed invalid, illegal, or unenforceable, that provision
will be modified so as to make it valid, legal, and enforceable, or if it cannot be so modified, it
will be stricken from this Agreement, and the validity, legality, and enforceability of the
remainder of the Agreement shall not in any way be affected.

3

 

13. Notwithstanding anything under this Agreement to the contrary, no amount payable pursuant to
this Agreement on account of Executive’s termination of employment with the Company which
constitutes a “deferral of compensation” within the meaning of the Treasury Regulations issued
pursuant to Section 409A of the Code (the “Section 409A Regulations”) shall be paid unless and
until Executive has incurred a “separation from service” within the meaning of the Section 409A
Regulations. Furthermore, to the extent that Executive is a “specified employee” within the
meaning of the Section 409A Regulations as of the date of Executive’s separation from service, no
amount that constitutes a deferral of compensation which is payable on account of Executive’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 Section, become payable prior to the Delayed Payment Date will be
accumulated and paid on the Delayed Payment Date.

14. The Company intends that income provided to Executive pursuant to this Agreement will not be
subject to taxation under Section 409A of the Code. The provisions of this Agreement shall be
interpreted and construed in favor of satisfying any applicable requirements of Section 409A of the
Code. 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 incurred by Executive
on compensation paid or provided to Executive pursuant to this Agreement.

15. This Agreement constitutes the entire agreement between the parties with respect to the subject
matter hereof and supersedes all prior negotiations and agreements, whether written or oral, with
the exception of the Plan, any stock option agreements between the parties, any agreements
described in Paragraphs 6 or 8, and any agreements concerning insider trading or other Company
securities issues, all of which agreements shall remain in full force and effect. Except as
expressly provided herein, the Employment Agreement is hereby terminated and of no further force or
effect. This Agreement may not be modified or amended except by a document signed by an authorized
officer of the Company and Executive.

EXECUTIVE UNDERSTANDS THAT HE SHOULD CONSULT WITH AN ATTORNEY PRIOR TO SIGNING THIS AGREEMENT
AND THAT HE IS GIVING UP ANY LEGAL CLAIMS HE HAS AGAINST THE PARTIES RELEASED ABOVE BY SIGNING THIS
AGREEMENT. EXECUTIVE FURTHER UNDERSTANDS THAT HE MAY HAVE UP TO 21 DAYS TO CONSIDER THIS
AGREEMENT, THAT HE MAY REVOKE IT AT ANY TIME DURING THE 7 DAYS AFTER HE SIGNS IT, AND THAT IT SHALL
NOT BECOME EFFECTIVE UNTIL THAT 7-DAY PERIOD HAS PASSED. EXECUTIVE ACKNOWLEDGES THAT HE IS SIGNING
THIS AGREEMENT KNOWINGLY, WILLINGLY AND VOLUNTARILY IN EXCHANGE FOR THE BENEFITS DESCRIBED IN
PARAGRAPH 4.

4

 

	 	 	 	 	 
	
 Dated:
April 24, 2008

	
/s/ Victor Viegas 

Victor Viegas
 
	 	 
	 
	 	 	 	 
	 Dated:
April      , 2008 

	IMMERSION CORPORATION

 

	 	   
	

	BY: 	/s/ Jack L Saltich
 
 

	 	   

5exv10w41

Exhibit 10.41

RETENTION AND OWNERSHIP CHANGE EVENT AGREEMENT

     This Retention and Ownership Change Event Agreement (“Agreement”) is made effective
as of the date(s) set forth below by and between Immersion Corporation (the “Company”) and
Clent Richardson (“Executive”).

RECITALS

     In order to make available compensation pursuant to this Agreement that will not be subject
to taxation under Section 409A (as defined below), Executive and the Board of Directors of the
Company (the “Board”) have determined that it is in the best interests of the Company and
Executive to enter into this Retention and Ownership Change Event Agreement. 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.

     1. Definitions. For purposes of this Agreement:

          (a) An “Ownership Change Event” shall be deemed to have occurred if any of
the following occurs 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 not the controlling party;

               (iii) the sale, exchange, or transfer of all or substantially all of the assets of the Company; or

               (iv) a liquidation or dissolution of the Company.

 

 

          (b) “Good Reason” means any of the following conditions, which condition(s)
remain(s) in effect 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) responsibilities, or duties; a material, adverse change in the Executive’s title, authority,

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

               (iv) the failure of any successor to the Company to confirm in writing
its assumption of the Company’s obligations under this Agreement.

          (c) 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 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 his
duties for the Company.

     2. Termination Without Cause. In the event that Executive is terminated without
Cause more than three months prior to, or more than one year after, an Ownership Change Event, and
if at that time Executive signs (and does not revoke) a general release of known and unknown
claims in a form satisfactory to the Company, Executive will receive the following:

          (a) a lump sum severance payment equivalent to twelve (12) months’ base
salary at Executive’s final base salary rate, payable within ten (10) business days following
the effective date of the aforementioned general release of claims; such severance payment will
be subject to applicable withholding; and

          (b) 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 group
health insurance coverage at his own expense in accordance with COBRA.

     3. Termination Without Cause or Resignation for Good Reason Due to an Ownership Change Event.
In the event that Executive is terminated without Cause or resigns
for Good Reason within three months of, or within 1 year following, an Ownership Change Event,

2

 

and if at that time Executive signs (and does not revoke) a general release of known and
unknown claims in a form satisfactory to the Company, Executive will receive the following:

          (a) a lump sum severance payment equivalent to twelve (12) months’ base
salary at Executive’s final base salary rate, payable within ten (10) business days following the
effective date of the aforementioned general release of claims; such severance payment will be
subject to applicable withholding; and

          (b) 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 group health
insurance coverage at his own expense in accordance with COBRA.

          (c) immediate vesting in one hundred percent (100%) of his then unvested
Company stock and Company stock options.

All Company stock options, to the extent unexercised and exercisable by the Executive on the
date on which the Executive’s employment is terminated pursuant to this Section 3, may be
exercised by the Executive within six (6) months (or such other longer period of time as
determined by the Board, in its sole discretion) after the date on which the Executive’s
employment terminated, but in any event no later than the option expiration date.

     4. Voluntary Termination. In the event that Executive resigns from his employment
with the Company at any time (other than a resignation for Good Reason), or in the event that
Executive’s employment terminates at any time as a result of his death or disability (meaning
Executive is unable to perform his 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 he resigns from his employment with
the Company, he 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.

All Company stock options, to the extent unexercised and exercisable by the Executive on the
date on which the Executive’s resigns or his employment is terminated pursuant to this Section
4, may be exercised by the Executive within three (3) months (or such other longer period of
time as determined by the Board, in its sole discretion) after the date on which the Executive’s
employment terminated, but in any event no later than the option expiration 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 his
termination for Cause.

     6. Modification To Comply With Section 409A. The parties intend that the
payments and benefits provided to Executive pursuant to this Agreement be paid in compliance with
Section 409A of the Code so that no excise tax is incurred under Section 409A. 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.”

3

 

     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 are 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 Financial Officer and General Counsel.

     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.

          (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.

4

 

          (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.

          (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.

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

	 	 	 	 	 
	Dated: April 14, 2008 

	 	 	 
	/s/ Clent Richardson
 	 	 
	Clent Richardson 	 	 
	 	 	 
	 
	 	 	 
	Dated: April 17, 2008 	By:  	/s/ Victor Viegas
 	 
	 	 	 	 
	Immersion Corporation 	 	Its: CEO

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}]]