SEC Contract Filing

Filing Date: 2022-11-14

Document Content:
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<DIV><FONT size="1" style="font-size:1pt;color:white"> 1 4880-6434-0024.v1 IMMERSION CORPORATION CHANGE OF CONTROL AND SEVERANCE AGREEMENT This Change of Control and Severance Agreement (this &#8220;Agreement&#8221;) is made and entered into effective as of May 26, 2022 (the &#8220;Effective Date&#8221;), by and between Francis Jose (&#8220;Executive&#8221;) and Immersion Corporation, a Delaware corporation (the &#8220;Company&#8221;). Certain capitalized terms used in this Agreement are defined in Section 1 below. RECITALS A. It is expected that the Company from time to time will consider the possibility of a Change of Control. The Board of Directors of the Company (the &#8220;Board&#8221;) recognizes that such consideration can be a distraction to Executive and can cause Executive to consider alternative employment opportunities. B. The Board believes that it is in the best interests of the Company and its shareholders to provide Executive with an incentive to continue Executive&#8217;s employment and to maximize the value of the Company upon a Change of Control for the benefit of its shareholders. C. In order to provide Executive with enhanced financial security and sufficient encouragement to remain with the Company notwithstanding the possibility of a Change of Control, the Board believes that it is imperative to provide Executive with certain severance and other benefits upon Executive&#8217;s termination of employment in connection with a Change of Control. D. The Board also believes it is in the best interests of the Company and its shareholders to provide Executive with severance upon an involuntary termination other than in connection with a Change of Control. AGREEMENT In consideration of the mutual covenants herein contained and the continued employment of Executive by the Company, the parties agree as follows: 1. Definition of Terms. The following terms referred to in this Agreement shall have the following meanings: (a) Cause. &#8220;Cause&#8221; shall mean Executive&#8217;s (i) commission of a felony, an act involving moral turpitude, or an act constituting common law fraud, and which has an adverse effect on the business or affairs of the Company or its affiliates or stockholders; (ii) intentional or willful misconduct or refusal to follow the lawful instructions of the Board that is not cured within thirty (30) days following written notice from the Board; (iii) commission of any violation of a company policy that has a material adverse effect on the business or reputation of the Company or (iv) intentional breach of Company confidential information obligations which has an adverse effect on the Company or its affiliates. For these purposes, no act or failure to act DocuSign Envelope ID: 8487CF55-C9B9-499A-932F-E06257515CD6 </FONT></DIV>
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<DIV><FONT size="1" style="font-size:1pt;color:white"> 2 4880-6434-0024.v1 shall be considered &#8220;intentional or willful&#8221; unless it is done, or omitted to be done, in bad faith without a reasonable belief that the action or omission is in the best interests of the Company. (b) Change of Control. &#8220;Change of Control&#8221; shall mean the occurrence of any of the following events: (i) a change in the composition of the Board occurs, as a result of which fewer than one-half of the incumbent directors are directors who either: (A) had been directors of the Company on the &#8220;look-back date&#8221; (as defined below) (the &#8220;original directors&#8221;); or (B) were elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the aggregate of the original directors who were still in office at the time of the election or nomination and the directors whose election or nomination was previously so approved (the &#8220;continuing directors&#8221;); provided, however, that for this purpose, the &#8220;original directors&#8221; and &#8220;continuing directors&#8221; shall not include any individual whose initial assumption of office occurred as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents, by or on behalf of a person other than the Board; or (ii) any &#8220;person&#8221; (as defined below) who by the acquisition or aggregation of securities, is or becomes the &#8220;beneficial owner&#8221; (as defined in Rule 13d-3 under the Securities Exchange Act of 1934 (the &#8220;Exchange Act&#8221;)), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company&#8217;s then outstanding securities ordinarily (and apart from rights accruing under special circumstances) having the right to vote at elections of directors (the &#8220;Base Capital Stock&#8221;); except that any change in the relative beneficial ownership of the Company&#8217;s securities by any person resulting solely from a reduction in the aggregate number of outstanding shares of Base Capital Stock, and any decrease thereafter in such person&#8217;s ownership of securities, shall be disregarded until such person increases in any manner, directly or indirectly, such person&#8217;s beneficial ownership of any securities of the Company; or (iii) the consummation of a merger or cons