This Retention Agreement is made and entered into as of August 29, 2001, by and between Immersion
Corporation (the "Company") and Rodney G. Hilton (the "Employee").
A. The Employee is employed by Immersion Medical, Inc. ("Immersion Medical") (formerly HT Medical
Systems, Inc.), a wholly-owned subsidiary of the Company, pursuant to an Employment Agreement dated as of
September 22, 1999 between the Employee and Immersion Medical (the "Employment Agreement").
B. Under Section 2.C. of the Employment Agreement, Phase III of the Employee's employment commenced on
September 28, 2000, and the current one-year term of the Employee's employment continues from that date until
September 28, 2001. The Employment Agreement will be renewed automatically after September 28, 2001 for
successive additional terms of one year each unless either party notifies the other party at least 90 days prior to
the expiration of any term of such party's determination not to renew the Employment Agreement beyond the then
C. The Employee has been instrumental in facilitating the Company's integration of Immersion Medical and in
managing Immersion Medical's operations.
D. The Company and the Employee wish to provide for certain enhancements to the Employment Agreement in
consideration of the Employee's continued employment by Immersion Medical.
NOW, THEREFORE, in consideration of the premises and covenants set forth in this Agreement, and intending
to be legally bound hereby, the parties agree as follows:
1. Annual Retention Payments. In addition to the compensation and benefits payable to the Employee under the
Employment Agreement, the Company shall pay the Employee the bonuses set forth below, provided that the
Employee continues to be employed by Immersion Medical on the respective payment date:
(a) The Company shall pay the Employee a bonus equal to $220,000 on January 7, 2002; and
(b) The Company shall pay the Employee a bonus equal to $220,000 on