Document:

EXHIBIT 10.1

                          SECURITIES PURCHASE AGREEMENT

     This  SECURITIES  PURCHASE  AGREEMENT,  dated  as  of  May  20,  2003  (the
"Agreement")  is  entered  into  by  and  among  The  3DO  Company,  a  Delaware
corporation (the "Company"), and William M. Hawkins, III (the "Purchaser"). This
Agreement is being made pursuant to Section 10 of the Note and Warrant  Purchase
Agreement (the "Note and Warrant Purchase  Agreement")  dated as of December 27,
2002,  as  amended,   between  the  Company,   The  3DO  Company,  a  California
corporation,  and the  Purchaser.  The parties,  intending to be legally  bound,
hereby agree as follows:

     1. Sale of Common  Stock.  Subject  to the  terms  and  conditions  of this
Agreement,  Company  hereby  agrees to sell to the  Purchaser  and the Purchaser
hereby agrees to purchase from Company the number of shares of Company's  Common
Stock set forth opposite the Purchaser's  name on Exhibit A (the  "Shares"),  at
the purchase  price listed on Exhibit A. Upon  execution of this  Agreement (the
"Closing"),  (A) the Company shall deliver or cause to be delivered to Purchaser
the following:  (i) a certificate  evidencing a number of shares of Common Stock
being  purchased by Purchaser,  registered  in the name of  Purchaser;  (ii) the
Registration Rights Agreement (the "Registration  Rights Agreement") in the form
attached hereto as Annex A, duly executed by the Company;  and (iii) the Warrant
(the  "Warrant"),  registered  in the name of the Purchaser in the form attached
hereto as Annex B,  giving  the  Purchaser  the right to  acquire  the number of
shares of Common Stock upon the exercise of the Warrant (the  "Warrant  Shares")
listed on Exhibit A and (B) the Purchaser shall deliver or cause to be delivered
to the Company the following:  (i) the purchase price for the Shares and Warrant
being  purchased by  Purchaser,  by delivery of a secured  previous  note issued
pursuant to the Note and Warrant  Purchase  Agreement in the principal amount of
$3.0  million  dated  October  1,  2002  (the  "Secured   Previous   Note")  for
cancellation;  and (ii) the  Registration  Rights  Agreement  duly  executed  by
Purchaser.  Any principal and accrued  interest on the Secured Previous Note not
cancelled shall be repaid on the day of the Closing (the "Closing Date").

     2. Representations and Warranties of Company. Company hereby represents and
warrants to Purchaser that the statements  contained in the following paragraphs
of this Section 2 are all true and correct as of the date of this  Agreement and
the Closing Date:

         (a)  Organization  and  Standing:  Articles  and  Bylaws.  Company is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Delaware and has all requisite  corporate power and authority to
carry on its business as now conducted.

         (b)  Corporate  Power.  Company has all  requisite  legal and corporate
power to enter  into,  execute,  deliver  and  perform  this  Agreement  and the
Registration  Rights  Agreement.  This  Agreement  and the  Registration  Rights
Agreement (the "Transaction Documents") have been duly

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executed by the Company and constitute legal,  valid and binding  obligations of
Company,  enforceable in accordance with their terms,  except as the same may be
limited by (i)  bankruptcy,  insolvency,  moratorium,  and other laws of general
application  affecting the enforcement of creditors' rights and (ii) limitations
on the  enforceability  of the  indemnification  provisions of the  Registration
Rights Agreement as limited by applicable securities laws.

         (c) Authorization.

              (i) Corporate  Action.  All corporate and legal action on the part
of Company, its officers, directors and shareholders necessary for the execution
and delivery of this Agreement,  the Registration Rights Agreement, the sale and
issuance of the Shares and Warrant  Shares,  and the  performance  of  Company's
obligations hereunder have been taken.

              (ii) Valid Issuance. The Shares and Warrant Shares, when issued in
compliance  with the provisions of this Agreement and the Warrant,  will be duly
and validly issued,  fully paid and  nonassessable,  free and clear of all liens
and  encumbrances;  provided,  however,  that the  Shares,  the  Warrant and the
Warrant  Shares may be subject to  restrictions  on transfer  under state and/or
federal  securities  laws as set forth herein,  and as may be required by future
changes in such laws.

         (d)  Government   Consent,   Etc.  No  consent,   approval,   order  or
authorization of, or designation,  registration, declaration or filing with, any
federal,  state, local or other governmental authority on the part of Company is
required in connection  with the valid execution and delivery of this Agreement,
the Registration  Rights Agreement or the offer, sale or issuance of the Shares,
the  Warrant  and the  Warrant  Shares  other  than,  if  required,  filings  or
qualifications under the California Corporate Securities Law of 1968, as amended
(the  "California  Law"), or other  applicable  blue sky laws,  which filings or
qualifications,  if required,  will be timely filed or obtained by Company.  The
execution,  delivery and performance of the Transaction Documents by the Company
and the consummation by the Company of the transactions  contemplated thereby do
not and will not conflict  with,  or constitute a default (or an event that with
notice or lapse of time or both would become a default) under, or give to others
any rights of termination,  amendment,  acceleration  or  cancellation  (with or
without notice,  lapse of time or both) of, any agreement filed (or incorporated
by reference) as an exhibit to the SEC Reports (as defined below).

         (e) SEC  Reports;  Financial  Statements.  The  Company  has  filed all
reports required to be filed by it under the Securities Exchange Act of 1934, as
amended ("1934 Act"),  including pursuant to Section 13(a) or 15(d) thereof, for
the twelve  months  preceding  the date hereof (the  foregoing  materials  being
collectively  referred to herein as the "SEC  Reports") on a timely basis or has
received  a valid  extension  of such time of filing  and has filed any such SEC
Reports prior to the expiration of any such  extension.  As of their  respective
dates, the SEC Reports  complied in all material  respects with the requirements
of the  Securities Act of 1933, as amended (the "1933 Act") and the 1934 Act and
the  rules  and   regulations  of  the   Securities   and  Exchange   Commission
("Commission")  promulgated thereunder, and none of the SEC Reports, when filed,
contained any untrue statement of a material fact or omitted to state a material
fact required to be stated  therein or necessary in order to make the statements
therein,  in  light  of the  circumstances  under  which  they  were  made,  not
misleading. The financial statements of the Company included in the SEC Reports

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<PAGE>

comply in all material respects with applicable accounting  requirements and the
rules and regulations of the Commission with respect thereto as in effect at the
time of filing. Such financial  statements have been prepared in accordance with
generally  accepted  accounting  principles applied on a consistent basis during
the periods  involved,  except as may be otherwise  specified in such  financial
statements or the notes thereto, and fairly present in all material respects the
financial  position of the Company and its  consolidated  subsidiaries as of and
for the dates  thereof  and the  results  of  operations  and cash flows for the
periods then ended,  subject,  in the case of unaudited  statements,  to normal,
year-end audit adjustments.

         (f)  Private  Placement.  Assuming  the  accuracy  of  the  Purchaser's
representations and warranties set forth in Section 3, no registration under the
1933 Act is required for the offer, issuance and sale of the Shares, the Warrant
and the Warrant Shares by the Company to the Purchaser as contemplated hereby.

         (g) Listing and Maintenance Requirements.  The issuance and sale of the
Shares, the Warrant and the Warrant Shares hereunder do not contravene the rules
and  regulations  of the Nasdaq  National  Market.  The  Company is  eligible to
utilize Form S-3 to register the resale of the Shares and Warrant  Shares by the
Purchasers.

         (h) Investment Company. The Company is not, and is not an Affiliate of,
an  "investment  company"  within the meaning of the  Investment  Company Act of
1940, as amended.

     3.  Representations and Warranties by Purchaser.  The Purchaser  represents
and  warrants  to  Company  that  the  statements  contained  in  the  following
paragraphs  of this  Section 3 are all true and  correct  as of the date of this
Agreement and the Closing Date:

         (a) Investment Intent: Authority. This Agreement is made with Purchaser
in reliance upon Purchaser's representation to Company, evidenced by Purchaser's
execution of this Agreement, that Purchaser is acquiring the Shares, the Warrant
and the Warrant  Shares for  investment  for  Purchaser's  own  account,  not as
nominee  or  agent,  for  investment  and not with a view to,  or for  resale in
connection  with, any distribution or public offering thereof within the meaning
of the 1933 Act; provided,  however, that by making the representations  herein,
Purchaser does not agree to hold any of the Shares,  the Warrant and the Warrant
Shares for any minimum or other  specific term and reserves the right to dispose
of the Shares, the Warrant and the Warrant Shares at any time in accordance with
or pursuant to a  registration  statement  or an  exemption  under the 1933 Act.
Purchaser has the requisite right,  power,  authority and capacity to enter into
and perform this Agreement and the Agreement will constitute a valid and binding
obligation  upon  Purchaser,  except as the same may be limited  by  bankruptcy,
insolvency,  moratorium,  and other laws of general  application  affecting  the
enforcement of creditors' rights.

         (b) Knowledge  and  Experience.  Purchaser  (i) has such  knowledge and
experience in financial and business  matters as to be capable of evaluating the
merits  and risks of  Purchaser's  prospective  investment  in the  Shares,  the
Warrant and the Warrant Shares;  (ii) has the ability to bear the economic risks
of Purchaser's  prospective  investment;  (iii) has had all questions which have
been asked by  Purchaser  satisfactorily  answered by Company;  and (iv) has not
been  offered  the Shares,  the  Warrant  and the Warrant  Shares by any form of
advertisement, article, notice or other

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communication  published  in  any  newspaper,  magazine,  or  similar  media  or
broadcast over  television or radio,  or any seminar or meeting whose  attendees
have been invited by any such media.  Purchaser  represents and warrants that it
is an  "accredited  investor"  within the meaning of Rule 501 of Regulation D of
the Securities Act.

         (c) Transfer Restrictions. Purchaser covenants that in no event will it
sell,  transfer or otherwise  dispose of any of the Shares,  the Warrant and the
Warrant  Shares  other  than  in  conjunction  with  an  effective  registration
statement  for the Shares under the  Securities  Act or pursuant to an exemption
therefrom,  or in compliance with Rule 144 promulgated  under the Securities Act
or to a person related to or an entity  affiliated with said Purchaser and other
than in compliance with the applicable securities regulation laws of any state.

     4.  Registration  of the Shares to be  Purchased.  The Company  will file a
registration  statement  with  respect to the Shares  and  Warrant  Shares on or
before  twenty  (20) days after the  Closing  Date  pursuant to the terms of the
Registration Rights Agreement.

     5. Legends.  Company will place the following  legends on each  certificate
representing Shares and Warrant Shares:

                  THE  SECURITIES  REPRESENTED  HEREBY HAVE NOT BEEN  REGISTERED
                  UNDER THE SECURITIES ACT OF 1933, AS AMENDED  ("ACT"),  OR ANY
                  APPLICABLE  STATE  SECURITIES  LAWS  ("BLUE  SKY  LAWS").  ANY
                  TRANSFER  OF  SUCH   SECURITIES   WILL  BE  INVALID  UNLESS  A
                  REGISTRATION  STATEMENT  UNDER THE ACT OR AS  REQUIRED BY BLUE
                  SKY LAWS IS IN EFFECT AS TO SUCH TRANSFER OR IN THE OPINION OF
                  COUNSEL   REASONABLY   SATISFACTORY   TO  THE   COMPANY   SUCH
                  REGISTRATION  IS  UNNECESSARY  IN ORDER FOR SUCH  TRANSFER  TO
                  COMPLY WITH THE ACT OR BLUE SKY LAWS.

The legend  set forth  above  shall be removed  and the  Company  shall  issue a
certificate  without such legend to the holder of the Shares and Warrant  Shares
upon which it is stamped,  if,  unless  otherwise  required by state  securities
laws,  (i) such Shares and Warrant  Shares are  registered  for resale under the
1933 Act, (ii) in connection with a sale  transaction,  such holder provides the
Company  with an opinion of counsel,  in a  generally  acceptable  form,  to the
effect  that a public  sale,  assignment  or  transfer of the Shares and Warrant
Shares may be made without registration under the 1933 Act, or (iii) such holder
provides  the Company  with  reasonable  assurances  that the Shares and Warrant
Shares can be sold pursuant to Rule 144 without any restriction as to the number
of  securities  acquired as of a  particular  date that can then be  immediately
sold.  Such  Investor  acknowledges,  covenants  and  agrees to sell  Shares and
Warrant  Shares  represented  by a  certificate  from  which the legend has been
removed only pursuant to (i) a registration  statement  effective under the 1933
Act or (ii)  advice of counsel  that such sale is exempt  from the  registration
requirements  of Section 5 of the 1993 Act,  including,  without  limitation,  a
transaction pursuant to Rule 144.

     6.  Indemnification of Purchasers.  The Company will indemnify and hold the
Purchaser and its directors,  officers,  shareholders,  partners,  employees and
agents  (each,  a  "Purchaser   Party")   harmless  from  any  and  all  losses,
liabilities, obligations, claims, contingencies, damages, costs and

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<PAGE>

expenses, including all judgments, amounts paid in settlements,  court costs and
reasonable attorneys' fees and costs of investigation  (collectively,  "Losses")
that any such Purchaser  Party may suffer or incur as a result of or relating to
the failure of the  representations and warranties of the Company to be true and
correct.

     7. Miscellaneous.

         (a) Waivers and  Amendments.  The provisions of this Agreement may only
be amended or modified in a writing executed by each of Company and Purchaser. A
waiver shall not be effective unless in a writing by the party against whom such
waiver is to be enforced.

         (b) Governing Law. This Agreement and all actions  arising out of or in
connection  with this Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware,  without  regard to the conflicts of law
provisions thereof.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE,
AND AGREES NOT TO  REQUEST,  A JURY TRIAL FOR THE  ADJUDICATION  OF ANY  DISPUTE
HEREUNDER  OR IN  CONNECTION  HEREWITH OR ARISING OUT OF THIS  AGREEMENT  OR ANY
TRANSACTION CONTEMPLATED HEREBY.

         (c) Entire  Agreement.  This Agreement,  the Note and Warrant  Purchase
Agreement, the Registration Rights Agreement and the Warrant constitute the full
and entire  understanding  and agreement  between the parties with regard to the
subjects hereof and thereof.

         (d) Survival. The representations, warranties, covenants and agreements
made herein shall survive the execution and delivery of this Agreement.

         (e)  Expenses.  Company  shall pay on demand  all  reasonable  fees and
expenses incurred by Purchaser,  including reasonable legal fees and expenses in
connection with the preparation,  execution and delivery of this Agreement up to
a maximum amount of $5,000.

         (f) Notices, etc. Any notice,  request or other communication  required
or permitted hereunder shall be in writing and shall be deemed to have been duly
given (i) upon receipt if personally delivered,  (ii) three (3) days after being
mailed by registered or certified mail, postage prepaid,  or (iii) one day after
being sent by recognized overnight courier or by facsimile,  if to Purchaser, at
the address and  facsimile  number listed on Exhibit A, or at such other address
or number as  Purchaser  shall have  furnished  to Company in writing,  or if to
Company,  at 200 Cardinal Way,  Redwood City,  California 94063 or at such other
address or number as Company shall have furnished to Purchaser in writing.

         (g) Validity.  If any provision of this  Agreement  shall be judicially
determined to be invalid, illegal or unenforceable,  the validity,  legality and
enforceability  of the remaining  provisions shall not in any way be affected or
impaired thereby.

         (h)  Counterparts.  This  Agreement  may be  executed  in any number of
counterparts,  each of which  shall be an  original,  but all of which  together
shall be deemed to constitute one instrument.

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<PAGE>

         (i) Assignment.  The terms and conditions of this Agreement shall inure
to the benefit of and be binding upon the  respective  successors and assigns of
the  parties.  Nothing in this  Agreement,  express or  implied,  is intended to
confer  upon  any  party  other  than the  parties  hereto  or their  respective
successors and assigns any rights, remedies,  obligations,  or liabilities under
or by reason of this Agreement, except as expressly provided in this Agreement.

         (j) Remedies.  Purchaser and each holder of the  Securities  shall have
all rights and remedies set forth in the  Transaction  Documents  and all rights
and  remedies  which such  holders have been granted at any time under any other
agreement  or contract  and all of the rights  which such holders have under any
law. Any person having any rights under any provision of this Agreement shall be
entitled to enforce such rights  specifically  (without  posting a bond or other
security),  to recover  damages by reason of any breach of any provision of this
Agreement and to exercise all other rights granted by law.

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<PAGE>

              IN WITNESS  WHEREOF,  the parties have caused this Agreement to be
duly executed and delivered by their proper and duly  authorized  officers as of
the date and year first written above.

                                             THE 3DO COMPANY
                                             a Delaware corporation

                                             By:   /s/ James Alan Cook
                                                 -------------------------------

                                             Name: James Alan Cook
                                                   -----------------------------

                                             Title:  Secretary
                                                     ---------------------------

                                             PURCHASER:

                                             William M. Hawkins, III
                                             -----------------------------------

                                             By:   /s/ William M. Hawkins, III
                                                 -------------------------------

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<PAGE>

                             SCHEDULE OF PURCHASERS
<TABLE>
<CAPTION>
                                                                                                   Aggregate        Warrant
                                    Investor Address                              Number of     Purchase Price      Exercise
      Investor's Name             and Facsimile Number       Number of Shares  Warrant Shares         ($)          Price ($)
      ---------------             --------------------       ----------------  --------------         ---          ---------
<S>                                   <C>                       <C>                <C>           <C>                 <C>
William M. Hawkins, III       c/o The 3DO Company               1,764,705          441,176       2,999,998.50        $2.525
                              200 Cardinal Way
                              Redwood City, CA  94063
                              (650) 385-3184
</TABLE>

                                       8EXHIBIT 10.2

THIS  WARRANT  HAS NOT BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933,  AS
AMENDED (THE "ACT"),  OR ANY APPLICABLE  STATE  SECURITIES  LAWS, AND MAY NOT BE
SOLD,  OFFERED  FOR SALE OR  TRANSFERRED  UNLESS  SUCH  SALE OR  TRANSFER  IS IN
ACCORDANCE WITH THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS OR
AN EXEMPTION FROM THE REGISTRATION  REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS
IS AVAILABLE WITH RESPECT THERETO.

                               WARRANT TO PURCHASE
                            SHARES OF COMMON STOCK OF
                                 THE 3DO COMPANY

                                                        Issue Date: May 20, 2003

Warrant No. CW-31                                 441,176 Shares of Common Stock

     1.  Issuance.  This  Warrant  is issued to  William  M.  Hawkins,  III (the
"Holder"),  by The 3DO Company,  a Delaware  corporation  (hereinafter  with its
successors called the "Company")  pursuant to the Securities  Purchase Agreement
of even date herewith (the "Purchase Agreement"). Capitalized terms used but not
otherwise  defined  herein  shall  have  the  meanings  ascribed  to them in the
Purchase Agreement.

     2. Purchase Price;  Number of Shares.  Subject to the exercise  restriction
provided  for in  Section 6  hereof,  this  Warrant  certifies  that,  for value
received,  the Holder of this Warrant is entitled upon surrender of this Warrant
with the  subscription  form annexed hereto as Appendix 1 duly executed,  at the
principal office of the Company, to purchase from the Company 441,176 fully paid
and nonassessable  shares of Common Stock of the Company (the "Common Stock") at
a price per share  (the  "Purchase  Price") of  $2.525,  subject  to  adjustment
pursuant to Sections 8 and 9 below.

     3. Payment of Purchase Price.  Subject to Section 4, the Purchase Price may
be  paid  (i) in cash  or by  certified  check  or  wire  transfer,  (ii) by the
cancellation,  surrender  or  forgiveness  by the  Holder to the  Company of any
promissory notes or other obligations issued by the Company, with all such notes
and obligations so surrendered  being credited  against the Purchase Price in an
amount equal to the principal  amount thereof plus accrued  interest to the date
of surrender, or (iii) by any combination of the foregoing.

     4.  Net  Issue  Election.  Notwithstanding  any  provisions  herein  to the
contrary, the Holder may elect to receive,  without the payment by the Holder of
any  additional  consideration,  shares of Common  Stock  equal to the value (as
determined  below) of this  Warrant  by the  surrender  of this  Warrant  to the
Company,  with the net issue  election  notice  set forth in  Appendix 1 annexed
hereto duly executed,  at the principal  office of the Company.  Thereupon,  the
Company  shall issue to the

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<PAGE>

Holder such number of fully paid and nonassessable  shares of Common Stock as is
computed using the following formula:

                                        X =  Y(A-B)
                                             -----
                                               A

where:                     X = the number of shares of Common Stock to be issued
                  to the Holder  pursuant to this Section 4.

                           Y = the number of shares of Common  Stock  covered by
                  this  Warrant  or, if only a portion  of the  Warrant is being
                  exercised,  the portion of the Warrant being  exercised at the
                  time the net issue  election is made  pursuant to this Section
                  4.

                           A = the  fair  market  value of one  share of  Common
                  Stock,  determined as follows:  (i) if at such time the Common
                  Stock is listed on a national  securities  exchange  or on the
                  over-the-counter  market, then the closing price of the Common
                  Stock on the  business  day  immediately  prior to the date of
                  exercise  or, if no sale of the Common  Stock was made on such
                  day, the first  business day  immediately  preceding  such day
                  upon which a sale was made, or (ii) if at such time the Common
                  Stock is not listed on a national  securities  exchange  or on
                  the over-the-counter  market, then as determined in good faith
                  by the Board and agreed to by Holder at the time the net issue
                  election is made pursuant to this Section 4.

                           B = the  Purchase  Price in effect under this Warrant
                  at the time the net issue  election  is made  pursuant to this
                  Section 4.

     5. Fractional Shares. No fractional shares shall be issued upon exercise of
this Warrant.  The Company shall, in lieu of issuing any fractional  share,  pay
the  holder  entitled  to such  fraction  a sum in cash  equal to such  fraction
multiplied by the then effective Purchase Price.

     6. Exercise.

         (a) Expiration Date.  Holder's rights under this Warrant expire at 5:00
p.m.  Pacific  Time on the fourth  anniversary  of the date of this Warrant (the
"Expiration  Date") and shall be void  thereafter.  At the Expiration  Date, the
portion of this Warrant not exercised prior thereto shall be and become void and
of no value,  provided,  that if the closing  sales price of the Common Stock on
the date of  expiration  of this  Warrant is greater  than 102% of the  Purchase
Price on the date of expiration,  then this Warrant shall be deemed to have been
exercised  in full (to the  extent  not  previously  exercised)  on a  "cashless
exercise"  basis.  The Company may not call or redeem all or any portion of this
Warrant without the prior written consent of the Holder.

         (b) Delivery. To effect conversions hereunder,  the Holder shall not be
required to  physically  surrender  this  Warrant  unless the  aggregate  shares
represented  by this Warrant are being  exercised.  Upon delivery of the Form of
Election to Purchase to the Company (with the attached  Shares  Exercise Log) at
its address for notice set forth herein and upon  payment of the Purchase  Price
multiplied  by the number of shares of Common  Stock that the Holder  intends to
purchase

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<PAGE>

hereunder, the Company shall promptly (but in no event later than three business
days after the date of exercise) issue and deliver to the Holder,  a certificate
for the  shares of Common  Stock  issuable  upon such  exercise,  which,  unless
otherwise  required  by the  Purchase  Agreement,  shall be free of  restrictive
legends.  The Company  shall,  upon request of the Holder and  subsequent to the
date on which a  registration  statement  covering  the  resale of the shares of
Common  Stock  has  been  declared  effective  by the  Securities  and  Exchange
Commission, deliver shares of Common Stock electronically through the Depository
Trust Corporation or another established clearing corporation performing similar
functions,  if  available,  provided,  that,  the Company  may,  but will not be
required to change its  transfer  agent if its  current  transfer  agent  cannot
deliver such shares electronically through the Depository Trust Corporation.

         (c)  Limitation  on Exercise.  This Warrant may not be exercised  for a
period of one hundred eighty (180) days after the Issue Date.

         (d) Failure to Deliver.  If by the third  business day after a exercise
of the warrant,  the Company  fails to deliver the required  number of shares of
Common Stock in the manner required  pursuant to Section 6(b), and if after such
third business day and prior to the receipt of such shares, the Holder purchases
(in an open market  transaction or otherwise)  shares of Common Stock to deliver
in  satisfaction  of a sale by the Holder of the shares of Common Stock issuable
upon  exercise of the Warrant  ("Warrant  Share")  which the Holder  anticipated
receiving  upon such  exercise (a "Buy In"),  then the Company  shall (1) pay in
cash to the Holder the amount by which (x) the  Holder's  total  purchase  price
(including  brokerage  commissions,  if any) for the  shares of Common  Stock so
purchased  exceeds  (y) the amount  obtained  by  multiplying  (A) the number of
Warrant  Shares  that the  Company  was  required  to  deliver  to the Holder in
connection with the exercise at issue by (B) the closing bid price of the Common
Stock at the time of the obligation giving rise to such purchase  obligation and
(2) at the option of the Holder, either reinstate the portion of the Warrant and
equivalent  number of Warrant  Shares for which such exercise was not honored or
deliver to the Holder the number of shares of Common  Stock that would have been
issued  had  the  Company  timely   complied  with  its  exercise  and  delivery
obligations  hereunder.  The Holder  shall  provide the Company  written  notice
indicating the amounts payable to the Holder in respect of the Buy In.

         (e) Remedies.  The Company's  obligations to issue and deliver  Warrant
Shares in  accordance  with the terms  hereof are  absolute  and  unconditional,
irrespective  of any action or inaction  by the Holder to enforce the same,  any
waiver or consent  with  respect to any  provision  hereof,  the recovery of any
judgment  against any Person or any action to enforce  the same,  or any setoff,
counterclaim,  recoupment,  limitation or termination,  or any breach or alleged
breach by the Holder or any other Person of any obligation to the Company or any
violation  or alleged  violation of law by the Holder or any other  Person,  and
irrespective  of  any  other  circumstance  which  might  otherwise  limit  such
obligation  of the  Company to the Holder in  connection  with the  issuance  of
Warrant Shares.  Nothing herein shall limit a Holder's right to pursue any other
remedies  available  to it  hereunder,  at law or in equity  including,  without
limitation,  a decree of  specific  performance  and/or  injunctive  relief with
respect to the Company's  failure to timely  deliver  certificates  representing
shares of Common Stock upon exercise of the Warrant as required  pursuant to the
terms hereof.

     7. Reserved Shares;  Valid Issuance.  The Company covenants that it will at
all times from and after the date hereof  reserve and keep available such number
of its  authorized  shares  of  Common

                                       3
<PAGE>

Stock of the Company,  free from all  preemptive or similar rights  therein,  as
will be  sufficient  to permit the exercise of this  Warrant in full.  If at any
time between the date hereof and the  Expiration  Date, the number of authorized
but unissued  shares of Common Stock shall not be sufficient to permit  exercise
of this Warrant, the Company will take such corporate action as may be necessary
to increase its authorized but unissued shares of Common Stock to such number of
shares as shall be sufficient for such purposes.  The Company further  covenants
that such shares as may be issued pursuant to such exercise will, upon issuance,
be duly and  validly  issued,  fully  paid and  nonassessable  and free from all
taxes, liens and charges with respect to the issuance thereof.

     8. Stock Splits and  Dividends.  If after the date hereof the Company shall
subdivide the Common Stock,  by stock split or otherwise,  or combine the Common
Stock, or issue additional shares of Common Stock in payment of a stock dividend
on the  Common  Stock,  the  number of shares of Common  Stock  issuable  on the
exercise of this Warrant  shall  forthwith be  proportionately  increased in the
case of a subdivision or stock  dividend,  or  proportionately  decreased in the
case of a combination, and the Purchase Price shall forthwith be proportionately
decreased in the case of a subdivision  or stock  dividend,  or  proportionately
increased in the case of a combination.

     9.  Mergers  and  Reclassifications.  If after the date  hereof the Company
shall  enter  into any  Reorganization  (as  hereinafter  defined),  then,  as a
condition of such  Reorganization,  lawful  provisions  shall be made,  and duly
executed  documents  evidencing the same from the Company or its successor shall
be delivered to the Holder,  so that the Holder shall  thereafter have the right
to  purchase,  at a total price not to exceed that  payable upon the exercise of
this  Warrant  in  full,  the kind and  amount  of  shares  of stock  and  other
securities and property  receivable upon such  Reorganization by a holder of the
number of shares of Common  Stock which might have been  purchased by the Holder
immediately  prior  to such  Reorganization,  and in any such  case  appropriate
provisions  shall be made with  respect to the rights and interest of the Holder
to the end that the provisions hereof (including without limitation,  provisions
for the  adjustment  of the  Purchase  Price and the  number of shares  issuable
hereunder)  shall thereafter be applicable in relation to any shares of stock or
other securities and property  thereafter  deliverable upon exercise hereof. For
the purposes of this Section 9, the term "Reorganization"  shall include without
limitation any reclassification,  capital reorganization or change of the Common
Stock (other than as a result of a  subdivision,  combination  or stock dividend
provided for in Section 8 hereof),  or any consolidation of the Company with, or
merger of the Company into, another  corporation or other business  organization
(other than a merger in which the Company is the surviving corporation and which
does not  result in any  reclassification  or change of the  outstanding  Common
Stock),  or any sale or  conveyance  to another  corporation  or other  business
organization of all or substantially all of the assets of the Company.

     10. No Voting or Dividend Rights.  Nothing  contained in this Warrant shall
be  construed  as  conferring  upon the  Holder  hereof  the right to vote or to
consent  or to  receive  notice as a  shareholder  of the  Company  or any other
matters or any rights  whatsoever as a  shareholder  of the Company prior to the
exercise of the Holder's  rights to purchase  shares of Common Stock as provided
for herein.  No dividends or interest  shall be payable or accrued in respect of
this  Warrant  or the  interest  represented  hereby or the  shares  purchasable
hereunder  until,  and only to the extent  that,  this  Warrant  shall have been
exercised.

     11. Amendment. The terms of this Warrant may be amended, modified or waived
only with the written consent of the Holder.

                                       4
<PAGE>

     12. Notices,  Etc. Any notice,  request or other communication  required or
permitted  hereunder  shall be in writing  and shall be deemed to have been duly
given (i) upon receipt if personally delivered,  (ii) three (3) days after being
mailed by registered or certified mail, postage prepaid,  or (iii) one day after
being sent by recognized overnight courier or by facsimile, if to Holder, at c/o
Company at 200 Cardinal Way,  Redwood City,  California  94063, or at such other
address or number as Holder shall have furnished to Company in writing, or if to
Company,  at 200 Cardinal Way,  Redwood City,  California 94063 or at such other
address or number as Company shall have furnished to Holder in writing.

     13. Descriptive Headings and Governing Law. The descriptive headings of the
several  sections and  paragraphs  of this Warrant are inserted for  convenience
only and do not constitute a part of this Warrant.  This Warrant and all actions
arising  out of or in  connection  with this  Warrant  shall be  governed by and
construed in accordance  with the laws of the State of Delaware,  without regard
to the conflicts of law provisions of the State of Delaware.

     14.  Successors  and  Assigns.  Holder may not sell,  transfer or otherwise
dispose of the Securities  except in accordance with the restrictions set out in
the Purchase  Agreement.  The rights and obligations of Company and Holder shall
be binding upon and benefit the successors,  assigns, heirs,  administrators and
transferees of the parties.

     IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its
duly authorized officer.

Dated: May 20, 2003                             The 3DO Company

                                                /s/ James Alan Cook
                                                --------------------------------

                                                Name: James Alan Cook
                                                      --------------------------

                                                Title:  Executive Vice President
                                                       -------------------------

                                       5

<PAGE>

                          FORM OF ELECTION TO PURCHASE

                                                             Date: _____________
The 3DO Company
200 Cardinal Way
Redwood City, CA 94063

Ladies and Gentlemen:

The undersigned hereby elects:

         ____ to  exercise  the  warrant  issued to it by The 3DO  Company  (the
         "Company")  and dated  May 20,  2003 (the  "Warrant")  and to  purchase
         ____________  shares of the Common Stock of the Company (the  "Shares")
         purchasable  thereunder at a purchase price of _______________  ($____)
         per Share (the "Purchase  Price")  pursuant to the terms of the Warrant
         and the  undersigned  delivers the Purchase  Price  herewith in full in
         cash or by certified  check or wire transfer or as otherwise  permitted
         pursuant to Section 3 of the Warrant.

         ____ to  purchase  _______  shares of the Common  Stock of the  Company
         pursuant  to the  terms of the net  exercise  provisions  set  forth in
         Section 4 of the Warrant.

         By its delivery of this Form of Election To Purchase,  the  undersigned
represents  and  warrants to the Company  that in giving  effect to the exercise
evidenced hereby the Holder will not beneficially own in excess of the number of
shares of Common Stock  (determined  in  accordance  with  Section  13(d) of the
Securities  Exchange Act of 1934) permitted to be owned under Section 11 of this
Warrant to which this notice relates.

         The  certificate(s)  for such shares shall be issued in the name of the
undersigned or as otherwise indicated below:

                                                       Very truly yours,

                                                       William M. Hawkins, III

                                                       -------------------------

                                       6
<PAGE>

                                  Exercise Log
<TABLE>
<CAPTION>
----------------------------- ---------------------------- ---------------------------- ----------------------------
<S>                           <C>                          <C>                          <C>
         Date                 Number of Warrant Shares     Number of Warrant Shares     Number of Warrant Shares
                              Available to be Exercised    Exercised                    Remaining to be Exercised
----------------------------- ---------------------------- ---------------------------- ----------------------------
</TABLE>

                                       7

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