$420,000                                                         August   , 2001

     FOR VALUE RECEIVED, Rodney G. Hilton (the "Employee") promises to pay to
Immersion Corporation (the "Company"), at 801 Fox Lane, San Jose, California
95131, or at such place or places as the holder of this promissory note (the
"Note") may from time to time designate in writing, the principal sum of Four
Hundred Twenty Thousand Dollars ($420,000) (the "Principal"). The amount of the
Principal outstanding from time to time shall bear interest at a rate equal to
four percent (4%) per annum, compounded quarterly from the date hereof.

     This Note and all accrued interest shall be payable in full on the earlier
of: (i) January 6, 2003, and (ii) thirty days following the date of the
termination of the Employee's employment with the Company. Interest not paid
when due shall thereafter bear like interest as the principal.

     The Employee waives diligence, presentment, protest, demand and notice of
protest, demand, dishonor and nonpayment of this Note, and expressly agrees
that this Note, or any payment under it, may be extended and any security may
be accepted, released or substituted by the Company from time to time without
in any way affecting the liability of Employee.

     At the election of the Employee, any amount payable by the Employee to the
Company under this Note, whether or not such amount shall be currently due and
payable, may be set off against any amount payable to the Employee by the

     The Employee agrees to reimburse the holder of this Note for all costs of
collection or enforcement of this Note, whether or not suit if filed
(including, but not limited to, reasonable attorneys' fees) incurred by the

     This Note shall be governed by and construed in accordance with the laws
of the State of Maryland.

     This Note may not be assigned by the Company.

                                        /s/ RODNEY G. HILTON
                                        Rodney G. Hilton

                                        Acknowledged and agreed, intending
                                        to be legally bound hereby:

                                        IMMERSION CORPORATION

                                        By: /s/ ROBERT G. O'MALLEY
                                            Name:  Robert G. O'Malley
                                            Title: Chairman & CEO

Source: OneCLE Business Contracts.