Common use of SECOND SOURCE PROCEDURES Clause in Contracts

SECOND SOURCE PROCEDURES. In any case where the Die Bank System die are used as a resource by such .35 standard cell Second Source to source .35 CBA format Components, in KLSI's discretion, the die used will be credited to Immersion's Die Bank System account and replenished by KLSI at no charge to Immersion. KLSI will provide an entire manufacturing package of all of the Deliverables, specifications, technology and other materials which will be needed by each such Second Source Silicon provider in order to manufacture the applicable Components. Although it is the intent of the parties that KLSI will manufacture the Components as the primary silicon provider, it is understood and agreed that KLSI may subcontract the manufacture of Components to such Second Sources, on a periodic basis, as necessary for KLSI to be in compliance with its obligations hereunder. KLSI will determine, in the case of each Component order, whether such Components will be manufactured by KLSI or by the applicable Second Source silicon provider. KLSI will be in the role of "governing seller" and therefore, Immersion will purchase all Components from KLSI (including the Components which are manufactured by the Second Source silicon providers), except that under a specified set of circumstances described in Section 2.2.5 ("Trigger Events") Immersion may, in its discretion, purchase Components directly from KLSI's Second Source silicon providers. Prior to * Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

SECOND SOURCE PROCEDURES. In any case where the Die Bank System die are used as a resource by such .35 standard cell Second Source to source .35 CBA format Components, in KLSI's discretion, the die used will be credited to Immersion's Die Bank System account and replenished by KLSI at no charge to Immersion. KLSI will provide an entire manufacturing package of all of the Deliverables, specifications, technology and other materials which will be needed by each such Second Source Silicon provider in order to manufacture the applicable Components. Although it is the intent of the parties that KLSI will manufacture the Components as the primary silicon provider, it is understood and agreed that KLSI may subcontract the manufacture of Components to such Second Sources, on a periodic basis, as necessary for KLSI to be in compliance with its obligations hereunder. KLSI will determine, in the case of each Component order, whether such Components will be manufactured by KLSI or by the applicable Second Source silicon provider. KLSI will be in the role of "governing seller" and therefore, Immersion will purchase all Components from KLSI (including the Components which are manufactured by the Second Source silicon providers), except that under a specified set of circumstances described in Section 2.2.5 ("Trigger Events") Immersion may, in its discretion, purchase Components directly from KLSI's Second Source silicon providers. Prior to * Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.to