IMMERSION, INC

                              EMPLOYMENT AGREEMENT



        This Employment Agreement (the "Agreement") is entered into by and

between Immersion, Inc., a Delaware corporation (the "Company) and Bob O'Malley

(the "Employee"), effective as of November 5, 2001 (the "Effective Date).



                                    RECITALS



    1. The Employee is and has been employed by the Company and is currently the

Company's Chairman and CEO.



    2. The Company and the Employee are parties to an employment letter

agreement dated October 14, 2000, (the "Letter Agreement").



    3. The Company and the Employee wish to amend and restate the Letter

Agreement in the form of this Agreement, effective as of the Effective Date.



    4. Certain capitalized terms used in this Agreement are defined in Section 8

below.



                                    AGREEMENT



        In consideration of the mutual covenants herein contained, and in

consideration of the continuing employment of the Employee by the Company, the

parties agree as follows:



    1. POSITION AND RESPONSIBILITIES The Company shall employ the Employee in

the position of Chairman and CEO, reporting solely to the Company's Board of

Directors and assuming and discharging such responsibilities as are commensurate

with such position. The Employee shall comply with and be bound by the Company's

operating policies, procedures and practices from time to time in effect during

his employment. During the Employee's employment with the Company, the Employee

shall devote his full time, skill and attention to his duties and

responsibilities, and shall perform them faithfully, diligently and competently,

and the Employee shall use his best efforts to further the Company's business.



    2. TERM OF EMPLOYMENT This Agreement shall become effective as of the

Effective Date, and shall supersede and replace the Letter Agreement, which

shall be void and of no further effect. This Agreement and the Employee's

employment with the Company shall continue until terminated by reason of the

Employee's death or by either party at any time, with or without notice, for any

or no reason. The parties agree and acknowledge that this Agreement is an "at

will" agreement and that no implied covenant or standard of practice will cause

this Agreement to have any minimum period of employment.



    3. BASE COMPENSATION For all services to be rendered by the Employee to the

Company while this Agreement is in effect, the Employee shall receive a minimum

annual base salary of $250,000, payable in accordance with the Company's

standard payroll practices. Currently the Employee's salary is reduced as a

result of a company-wide salary reduction





<PAGE>





program. The Employee's base salary shall be reviewed at least annually by the

Company's Board of Directors. The annual base salary specified in this Section

3, as such base salary may be increased during the term of this Agreement, is

referred to herein as "Base Compensation."



    4. ANNUAL INCENTIVE For each fiscal year during the term of this Agreement,

the Employee shall be eligible to receive additional cash compensation ("Annual

Incentive") under the Company's annual variable compensation plan based upon

specific financial and/or other targets approved by the Company's Board of

Directors (the "Board"). Unless the Company determines otherwise, the Employee's

Annual Incentive shall be an amount equal to a predetermined percentage of his

Base Compensation. Any Annual Incentive compensation that becomes payable to the

Employee shall be paid in accordance with the Company's standard practices and

policies.



    5. OTHER BENEFITS The Employee shall be entitled to participate in the

employee benefit plans and programs that the Company makes available to its

senior executives, subject to the rules and the regulations applicable thereto.

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