CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS
EXHIBIT, WHICH PORTIONS HAVE BEEN OMITTED AND REPLACED WITH [****] AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
This Agreement is entered into and made effective as of the Effective Date (as defined below) by and
between, on the one hand, Sony Computer Entertainment America Inc. (“ SCEA ,” a Delaware corporation) and
Sony Computer Entertainment Inc. (“ SCEI ,” a Japanese corporation), and on the other hand, Immersion
Corporation (“ Immersion ,” a Delaware corporation). Each of the foregoing entities shall be referred to herein as
a “ Party .”
A. SCEA, SCEI, and Immersion were parties to a lawsuit, Immersion Corporation v. Sony Computer
Entertainment America, Inc. et al. , Case No. C-02-0710 CW (WDB), in the United States District Court for
the Northern District of California (the “ Lawsuit ”), which has concluded.
B. On April 7, 2005, the court entered a final amended judgment (the “ Amended Judgment ”) in the Lawsuit
in Immersion’s favor against SCEA and SCEI jointly and severally in the amount of $82,000,000 in damages,
plus pre-judgment interest at the prime rate in the amount of $8,874,888, costs, and interest which accrues by
C. The court entered a permanent injunction in a separate order dated March 24, 2005 (the “ Permanent
Injunction Order ”), which it stayed pending SCEA’s and SCEI’s appeal to the Federal Circuit, and awarded a
compulsory license fee for the duration of the stay. SCEA and SCEI filed an appeal, which has been dismissed as
of the Effective Date.
D. With the pending appeals having been dismissed and the Amended Judgment now final and satisfied as of
the Effective Date, the Parties desire by this Agreement to establish a new business relationship relating to matters
separate from those adjudicated in the Lawsuit under which they will each grant to the other certain rights as