Document:

EXHIBIT 10.2

                          REGISTRATION RIGHTS AGREEMENT

         REGISTRATION RIGHTS AGREEMENT (this "Agreement"),  dated as of February
21,  2003,  by  and  among  The  3DO  Company,  a  Delaware  corporation,   with
headquarters  located at 200 Cardinal Way Redwood  City,  California  94063 (the
"Company"),  and the undersigned  buyers (each, a "Buyer" and collectively,  the
"Buyers").

         WHEREAS:

         A. In connection  with the Securities  Purchase  Agreement by and among
the parties hereto of even date herewith (the "Securities Purchase  Agreement"),
the  Company has agreed,  upon the terms and  subject to the  conditions  of the
Securities  Purchase  Agreement,  to issue and sell to the Buyers  shares of the
Company's  common  stock,  par value  $0.01 per share (the  "Common  Stock") and
warrants to purchase shares of Common Stock (the "Warrants");

         B. To induce the Buyers to execute and deliver the Securities  Purchase
Agreement,  the Company has agreed to provide certain  registration rights under
the  Securities  Act  of  1933,  as  amended,  and  the  rules  and  regulations
thereunder, or any similar successor statute (collectively, the "1933 Act"), and
applicable state securities laws.

         NOW,  THEREFORE,  in  consideration  of the  premises  and  the  mutual
covenants  contained  herein  and other  good and  valuable  consideration,  the
receipt and sufficiency of which are hereby  acknowledged,  the Company and each
of the Buyers hereby agree as follows:

        1. DEFINITIONS.

                  As used in this Agreement,  the following terms shall have the
following  meanings:

                  a.  "Investor"  means a  Buyer,  any  transferee  or  assignee
thereof to whom a Buyer  assigns its rights under this  Agreement and who agrees
to become bound by the provisions of this Agreement in accordance with Section 9
and any transferee or assignee  thereof to whom a transferee or assignee assigns
its rights under this Agreement and who agrees to become bound by the provisions
of this Agreement in accordance with Section 9.

                  b. "Person" means an individual,  a limited liability company,
a  partnership,  a joint  venture,  a corporation,  a trust,  an  unincorporated
organization and a governmental or any department or agency thereof.

                  c. "Register,"  "registered,"  and  "registration"  refer to a
registration   effected  by  preparing  and  filing  one  or  more  Registration
Statements  (as defined  below) in compliance  with the 1933 Act and pursuant to
Rule 415  under  the 1933  Act or any  successor  rule  providing  for  offering
securities on a continuous or delayed basis ("Rule 415"), and the declaration or
ordering of effectiveness of such Registration Statement(s) by the United States
Securities and Exchange Commission (the "SEC").

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                  d.  "Registrable  Securities" means the Common Stock issued or
issuable to the Buyer  pursuant to the  Securities  Purchase  Agreement  and the
shares of Common Stock issued or issuable upon exercise of the Warrants (and any
shares of capital stock issued or issuable with respect to the Common Stock as a
result of any stock split, stock dividend, recapitalization, exchange or similar
event or otherwise.)

                  e. "Registration  Statement" means a registration statement or
registration  statements  of the Company  filed under the 1933 Act  covering the
Registrable Securities.

Capitalized  terms used herein and not otherwise  defined  herein shall have the
respective meanings set forth in the Securities Purchase Agreement.

        2. REGISTRATION.

                  a. Mandatory Registration.  The Company shall prepare, and, as
soon as  practicable  but in no event later than 20 days after the Closing  Date
(the "Filing Deadline"),  file with the SEC a Registration Statement on Form S-3
covering the resale of all of the Registrable Securities. In the event that Form
S-3 is  unavailable  for such a  registration,  the Company shall use such other
form as is  available  for such a  registration,  subject to the  provisions  of
Section 2 (b) and shall contain the "Plan of  Distribution"  attached  hereto as
Annex  A.  The  Company  shall  use its best  efforts  to have the  Registration
Statement declared effective by the SEC as soon as practicable prior to the 90th
day following the Closing Date (the "Effectiveness  Date");  provided,  however,
the Effectiveness  Date shall be the 120th day following the Closing Date if the
SEC reviews and provides comments on the Registration Statement.

                  b.  Ineligibility  for Form S-3. In the event that Form S-3 is
not  available  for the  registration  of the resale of  Registrable  Securities
hereunder,  the  Company  shall  (i)  register  the  resale  of the  Registrable
Securities on another appropriate form reasonably acceptable to the holder of at
least a majority of the  Registrable  Securities  and (ii) undertake to register
the  Registrable  Securities  on Form  S-3 as soon  as such  form is  available,
provided that in each such event,  the Company shall maintain the  effectiveness
of the  Registration  Statement then in effect until such time as a Registration
Statement on Form S-3  covering the  Registrable  Securities  has been  declared
effective by the SEC.

        3. RELATED OBLIGATIONS.

                  At  such  time  as  the  Company  is   obligated   to  file  a
Registration  Statement  with the SEC pursuant to Section 2(a), the Company will
use its best efforts to effect the registration of the Registrable Securities in
accordance  with the  intended  method  of  disposition  thereof  and,  pursuant
thereto, the Company shall have the following obligations:

                  a. The Company shall promptly  prepare and file with the SEC a
Registration  Statement  with respect to the applicable  Registrable  Securities
(but in no event later than the  applicable  Filing  Deadline)  and use its best
efforts to cause such Registration Statement relating to

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the Registrable Securities to become effective as soon as practicable after such
filing prior to the Effectiveness Date. The Company shall keep each Registration
Statement  effective  pursuant to Rule 415 at all times until the earlier of (i)
the date as of which the  Investors may sell all of the  Registrable  Securities
covered by such  Registration  Statement  without  restriction  pursuant to Rule
144(k) (or successor thereto) promulgated under the 1933 Act or (ii) the date on
which the Investors  shall have sold all the Registrable  Securities  covered by
such Registration  Statement (the  "Registration  Period"),  which  Registration
Statement  (including  any amendments or  supplements  thereto and  prospectuses
contained  therein) shall not contain any untrue statement of a material fact or
omit to state a material  fact  required to be stated  therein,  or necessary to
make the statements  therein,  in light of the  circumstances in which they were
made, not  misleading.  The term "best efforts" shall mean,  among other things,
that the Company shall submit to the SEC, within two (2) business days after the
Company  learns that no review of a particular  Registration  Statement  will be
made by the staff of the SEC or that the staff has no  further  comments  on the
Registration  Statement,  as the case  may be, a  request  for  acceleration  of
effectiveness of such  Registration  Statement to a time and date not later than
48 hours after the submission of such request.

                  b.  The  Company  shall  prepare  and  file  with the SEC such
amendments   (including   post-effective   amendments)   and  supplements  to  a
Registration   Statement  and  the  prospectus  used  in  connection  with  such
Registration  Statement,  which  prospectus is to be filed  pursuant to Rule 424
promulgated  under the 1933 Act, as may be necessary  to keep such  Registration
Statement  effective at all times during the  Registration  Period,  and, during
such  period,  comply with the  provisions  of the 1933 Act with  respect to the
disposition  of all  Registrable  Securities  of the  Company  covered  by  such
Registration  Statement  until such time as all of such  Registrable  Securities
shall  have  been  disposed  of in  accordance  with  the  intended  methods  of
disposition by the seller or sellers  thereof as set forth in such  Registration
Statement. In the case of amendments and supplements to a Registration Statement
which are required to be filed pursuant to this Agreement (including pursuant to
this Section 3(b)) by reason of the Company  filing a report on Form 10-K,  Form
10-Q or Form 8-K or any analogous  report under the  Securities  Exchange Act of
1934,  as amended (the "1934 Act"),  the Company  shall have  incorporated  such
report by reference into the  Registration  Statement,  if applicable,  or shall
file such  amendments or  supplements  with the SEC on the same day on which the
1934 Act report is filed which created the  requirement for the Company to amend
or supplement the Registration Statement.

                  c.  The  Company  shall   furnish  to  each   Investor   whose
Registrable  Securities  are  included in any  Registration  Statement,  without
charge, (i) promptly after the same is prepared and filed with the SEC, at least
one copy of such Registration Statement and any amendment(s) thereto,  including
financial  statements  and  schedules,  all  documents  incorporated  therein by
reference,  all  exhibits  and  each  preliminary  prospectus,   (ii)  upon  the
effectiveness of any Registration  Statement,  ten (10) copies of the prospectus
included in such  Registration  Statement  and all  amendments  and  supplements
thereto (or such other number of copies as such Investor may reasonably request)
and (iii) such other  documents,  including  copies of any  preliminary or final
prospectus,  as such Investor may reasonably  request from time to time in order
to  facilitate  the  disposition  of the  Registrable  Securities  owned by such
Investor.

                  d. The Company  shall use its best efforts to (i) register and
qualify,  unless an exemption from registration and qualification  applies,  the
resale by the Investors of the Registrable

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Securities  covered by a Registration  Statement under such other  securities or
"blue sky" laws of all the states of the United States, (ii) prepare and file in
those jurisdictions,  such amendments (including post-effective  amendments) and
supplements  to such  registrations  and  qualifications  as may be necessary to
maintain the effectiveness  thereof during the Registration  Period,  (iii) take
such other  actions as may be  necessary  to  maintain  such  registrations  and
qualifications in effect at all times during the Registration  Period,  and (iv)
take all  other  actions  reasonably  necessary  or  advisable  to  qualify  the
Registrable Securities for sale in such jurisdictions;  provided,  however, that
the  Company  shall not be required in  connection  therewith  or as a condition
thereto to (x)  qualify to do business  in any  jurisdiction  where it would not
otherwise be required to qualify but for this Section 3(d),  (y) subject  itself
to general taxation in any such  jurisdiction,  or (z) file a general consent to
service of process in any such  jurisdiction.  The Company shall promptly notify
each Investor who holds Registrable  Securities of the receipt by the Company of
any  notification  with  respect  to  the  suspension  of  the  registration  or
qualification of any of the Registrable Securities for sale under the securities
or "blue sky" laws of any  jurisdiction  in the United  States or its receipt of
actual  notice of the  initiation  or  threatening  of any  proceeding  for such
purpose.

                  e. The Company  shall  notify each  Investor in writing of the
happening of any event, as promptly as practicable  after becoming aware of such
event, as a result of which the prospectus included in a Registration Statement,
as then in effect,  includes an untrue  statement of a material fact or omission
to state a material fact required to be stated  therein or necessary to make the
statements  therein,  in light of the circumstances  under which they were made,
not  misleading  (provided  that in no  event  shall  such  notice  contain  any
material, nonpublic information), and promptly prepare a supplement or amendment
to such Registration Statement to correct such untrue statement or omission, and
deliver ten (10) copies of such  supplement  or amendment  to each  Investor (or
such  other  number of copies as such  Investor  may  reasonably  request).  The
Company  shall  also  promptly  notify  each  Investor  in  writing  (i)  when a
prospectus or any  prospectus  supplement or  post-effective  amendment has been
filed,  and when a Registration  Statement or any  post-effective  amendment has
become effective  (notification of such effectiveness shall be delivered to each
Investor by  facsimile  on the same day of such  effectiveness  and by overnight
mail),  (ii) of any  request  by the  SEC for  amendments  or  supplements  to a
Registration  Statement or related prospectus or related information,  and (iii)
of the Company's reasonable  determination that a post-effective  amendment to a
Registration Statement would be appropriate.

                  f. The  Company  shall use its best  efforts  to  prevent  the
issuance  of  any  stop  order  or  other   suspension  of  effectiveness  of  a
Registration  Statement,  or the suspension of the  qualification  of any of the
Registrable  Securities  for sale in any  jurisdiction  and, if such an order or
suspension  is issued,  to obtain the  withdrawal of such order or suspension at
the earliest  possible moment and to notify each Investor who holds  Registrable
Securities  being sold of the issuance of such order and the resolution  thereof
or its receipt of actual notice of the  initiation  or threat of any  proceeding
for such purpose.

                  g. The Company shall use its best efforts  either to (i) cause
all the Registrable  Securities covered by a Registration Statement to be listed
on each  securities  exchange  on which  securities  of the same class or series
issued  by the  Company  are  then  listed,  if  any,  if the  listing  of  such
Registrable  Securities is then permitted  under the rules of such exchange,  or
(ii) secure designation and quotation of all the Registrable  Securities covered
by the Registration Statement on

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<PAGE>

the Nasdaq National  Market,  or (iii) if, despite the Company's best efforts to
satisfy  the  preceding  clause  (i) or (ii),  the  Company is  unsuccessful  in
satisfying  the  preceding  clause  (i) or (ii),  to secure  the  inclusion  for
quotation on The Nasdaq SmallCap  Market for such  Registrable  Securities.  The
Company  shall pay all fees and  expenses  in  connection  with  satisfying  its
obligation under this Section 3(g).

                  h. The Company  shall  cooperate  with the  Investors who hold
Registrable  Securities being offered and, to the extent applicable,  facilitate
the timely preparation and delivery of certificates (not bearing any restrictive
legend)  representing  the  Registrable  Securities to be offered  pursuant to a
Registration  Statement and enable such certificates to be in such denominations
or amounts,  as the case may be, as the  Investors  may  reasonably  request and
registered in such names as the Investors may request.

                  i. The Company shall provide a transfer agent and registrar of
all  such  Registrable  Securities  not  later  than the  effective  date of the
applicable Registration Statement.

                  j. If requested by an Investor,  the Company shall (i) as soon
as  practicable   incorporate  in  a  prospectus  supplement  or  post-effective
amendment  such  information  as an Investor  requests  to be  included  therein
relating to the sale and  distribution  of  Registrable  Securities,  including,
without  limitation,  information  with  respect  to the  number of  Registrable
Securities being offered or sold, the purchase price being paid therefor and any
other terms of the  offering of the  Registrable  Securities  to be sold in such
offering;  (ii)  as  soon as  practicable  make  all  required  filings  of such
prospectus  supplement or  post-effective  amendment after being notified of the
matters to be  incorporated  in such  prospectus  supplement  or  post-effective
amendment;  and (iii) as soon as  practicable,  supplement or make amendments to
any  Registration  Statement  if  reasonably  requested  by an  Investor of such
Registrable Securities.

                  k. Within two (2) business days after a Registration Statement
which covers applicable  Registrable Securities is ordered effective by the SEC,
the Company  shall  deliver to  Investors  confirmation  that such  Registration
Statement has been declared effective by the SEC.

                  l.  Notwithstanding  anything to the contrary in Section 3(e),
at any time  after  the  applicable  Registration  Statement  has been  declared
effective  by the  SEC,  the  Company  may  delay  the  disclosure  of  material
non-public  information  concerning  the Company the  disclosure of which at the
time is not, in the good faith  opinion of the Board of Directors of the Company
and its  counsel,  in the best  interest of the  Company  and, in the opinion of
counsel to the Company,  otherwise required (a "Grace Period");  provided,  that
the Company shall  promptly (i) notify the Investors in writing of the existence
of material non-public  information giving rise to a Grace Period (provided that
in each  notice the  Company  will not  disclose  the  content of such  material
non-public  information to the Investors) and the date on which the Grace Period
will begin,  and (ii) notify the  Investors  in writing of the date on which the
Grace Period ends; and, provided  further,  that no Grace Period shall exceed 15
consecutive  days and  during any 365 day period  such Grace  Periods  shall not
exceed an  aggregate of 30 days and the first day of any Grace Period must be at
least  two  trading  days  after  the last day of any  prior  Grace  Period  (an
"Allowable  Grace  Period").  For purposes of determining  the length of a Grace
Period  above,  the Grace Period shall begin on and include the date the holders
receive  the notice  referred  to in clause (i) and shall end on and include the
later of the

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date the  holders  receive  the notice  referred  to in clause (ii) and the date
referred  to in  such  notice.  The  provisions  of  3(f)  hereof  shall  not be
applicable  during the period of any Allowable Grace Period.  Upon expiration of
the Grace  Period,  the Company  shall  again be bound by the first  sentence of
Section  3(e) with respect to the  information  giving rise to such Grace Period
unless such material non-public information is no longer applicable.

        4. OBLIGATIONS OF THE INVESTORS.

                  a.  Not  less  than  two  days  prior  to  the  filing  of the
Registration  Statement or any related Prospectus or any amendment or supplement
thereto,  the Company shall furnish to the Investors  copies of the Registration
Statement to be filed. The Company shall not file the Registration  Statement or
any such Prospectus or any amendments or supplements thereto to which the Buyers
of a majority of the  Registrable  Securities  shall  reasonably  object in good
faith or for which a Buyer shall have  notified  the Company or its counsel that
the information for such Buyer is not correct.

                  b.  Each  Investor,  by  such  Investor's  acceptance  of  the
Registrable  Securities,  agrees to  cooperate  with the  Company as  reasonably
requested by the Company in connection  with the  preparation  and filing of any
Registration Statement hereunder,  unless such Investor has notified the Company
in  writing  of such  Investor's  election  to  exclude  all of such  Investor's
Registrable Securities from such Registration Statement.

                  c. Each Investor  agrees that, upon receipt of any notice from
the Company of the happening of any event of the kind  described in Section 3(f)
or the first  sentence  of 3(e),  such  Investor  will  immediately  discontinue
disposition of Registrable Securities pursuant to any Registration  Statement(s)
covering such Registrable Securities until such Investor's receipt of the copies
of the  supplemented or amended  prospectus  contemplated by Section 3(f) or the
first  sentence of 3(e) or receipt of notice that no  supplement or amendment is
required.

        5. EXPENSES OF REGISTRATION.

                  All reasonable expenses, other than underwriting discounts and
commissions,   incurred   in   connection   with   registrations,   filings   or
qualifications pursuant to Sections 2 and 3, including,  without limitation, all
registration, listing and qualifications fees, printers and accounting fees, and
fees and disbursements of counsel for the Company shall be paid by the Company.

        6. INDEMNIFICATION.

                  In the event any  Registrable  Securities  are  included  in a
Registration Statement under this Agreement:

                  a. To the fullest  extent  permitted by law, the Company will,
and hereby  does,  indemnify,  hold  harmless  and  defend  each  Investor,  the
directors,  officers, partners, employees, agents,  representatives of, and each
Person, if any, who controls any Investor within the meaning of the 1933 Act and
of the 1934 Act (each, an  "Indemnified  Person"),  against any losses,  claims,
damages,  liabilities,  judgments, fines, penalties,  charges, costs, reasonable
attorneys'  fees,  amounts paid in  settlement  or  expenses,  joint or several,
(collectively,  "Claims") incurred in investigating,

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preparing  or  defending  any  action,   claim,   suit,   inquiry,   proceeding,
investigation  or appeal  taken  from the  foregoing  by or before  any court or
governmental,  administrative  or  other  regulatory  agency,  body or the  SEC,
whether pending or threatened,  whether or not an indemnified party is or may be
a party thereto ("Indemnified Damages"), to which any of them may become subject
insofar  as such  Claims  (or  actions  or  proceedings,  whether  commenced  or
threatened,  in respect  thereof) arise out of or are based upon: (i) any untrue
statement  or alleged  untrue  statement  of a material  fact in a  Registration
Statement  or any  post-effective  amendment  thereto or in any  filing  made in
connection with the  qualification of the offering under the securities or other
"blue sky" laws of any jurisdiction in which Registrable  Securities are offered
("Blue Sky  Filing"),  or the  omission or alleged  omission to state a material
fact required to be stated therein or necessary to make the  statements  therein
not  misleading,  (ii) any untrue  statement  or alleged  untrue  statement of a
material  fact  contained  in any  preliminary  prospectus  if used prior to the
effective  date  of such  Registration  Statement,  or  contained  in the  final
prospectus  (as  amended or  supplemented,  if the Company  files any  amendment
thereof or supplement  thereto with the SEC) or the omission or alleged omission
to state  therein  any  material  fact  necessary  to make the  statements  made
therein,  in light of the circumstances  under which the statements therein were
made, not misleading, (iii) any violation or alleged violation by the Company of
the 1933 Act, the 1934 Act, any other law, including,  without  limitation,  any
state securities law, or any rule or regulation thereunder relating to the offer
or sale of the Registrable  Securities  pursuant to a Registration  Statement or
(iv) any material  violation  of this  Agreement  (the matters in the  foregoing
clauses (i) through (iv) being, collectively,  "Violations"). Subject to Section
6(c),  the Company shall  reimburse the  Indemnified  Persons,  promptly as such
expenses  are  incurred  and are due and  payable,  for any legal  fees or other
reasonable  expenses  incurred  by  them in  connection  with  investigating  or
defending  any such Claim.  Notwithstanding  anything to the contrary  contained
herein, the indemnification  agreement contained in this Section 6(a): (i) shall
not apply to a Claim by an  Indemnified  Person  arising  out of or based upon a
Violation  which  occurs in reliance  upon and in  conformity  with  information
furnished  in  writing  to the  Company  by such  Indemnified  Person  for  such
Indemnified  Person  expressly for use in connection with the preparation of the
Registration  Statement or any such amendment thereof or supplement  thereto, if
such  prospectus  was timely made  available by the Company  pursuant to Section
3(c), and if such new prospectus  will have cured the defect giving rise to such
Claims; (ii) with respect to any preliminary prospectus,  shall not inure to the
benefit  of any such  person  from  whom the  person  asserting  any such  Claim
purchased the  Registrable  Securities  that are the subject  thereof (or to the
benefit of any person  controlling  such  person)  if the  untrue  statement  or
omission of material fact contained in the preliminary  prospectus was corrected
in the  prospectus,  as then amended or  supplemented,  if such  prospectus  was
timely  made  available  by the  Company  pursuant  to  Section  3(c),  and  the
Indemnified  Person was  promptly  advised in writing  not to use the  incorrect
prospectus  prior to the use giving  rise to a  violation  and such  Indemnified
Person,  notwithstanding  such advice, used it; and (iii) shall not be available
to the extent such Claim is based on a failure of the  Investor to deliver or to
cause to be delivered  the  prospectus  made  available by the Company,  if such
prospectus was timely made available by the Company pursuant to Section 3(d) and
if such new  prospectus  will have cured the defect  giving rise to such Claims;
(iv)  shall  not  apply  to  amounts  paid in  settlement  of any  Claim if such
settlement is effected  without the prior written consent of the Company,  which
consent shall not be unreasonably withheld.  Such indemnity shall remain in full
force and effect  regardless  of any  investigation  made by or on behalf of the
Indemnified Person and shall survive the transfer of the Registrable  Securities
by the Investors  pursuant to Section 9.

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<PAGE>

                  b. In connection with any  Registration  Statement in which an
Investor  is  participating,  each such  Investor  agrees to  severally  and not
jointly indemnify,  hold harmless and defend, to the same extent and in the same
manner as is set forth in Section 6(a), the Company, each of its directors, each
of its officers who signs the  Registration  Statement each Person,  if any, who
controls the Company within the meaning of the 1933 Act or the 1934 Act (each an
"Indemnified  Party"),  against any Claim or Indemnified Damages to which any of
them may become subject, under the 1933 Act, the 1934 Act or otherwise,  insofar
as such  Claim  or  Indemnified  Damages  arise  out of or are  based  upon  any
Violation,  in each  case to the  extent,  and  only to the  extent,  that  such
Violation  occurs in reliance  upon and in conformity  with written  information
furnished to the Company by such Investor  expressly for use in connection  with
such  Registration  Statement;  and, subject to Section 6(c), such Investor will
reimburse  any legal or other  expenses  reasonably  incurred by an  Indemnified
Party in connection with  investigating  or defending any such Claim;  provided,
however,  that the  indemnity  agreement  contained in this Section 6(b) and the
agreement with respect to contribution contained in Section 7 shall not apply to
amounts paid in settlement of any Claim if such  settlement is effected  without
the prior written consent of such Investor; provided, further, however, that the
Investor shall be liable under this Section 6(b) for only that amount of a Claim
or Indemnified Damages as does not exceed the net proceeds to such Investor as a
result  of the sale of  Registrable  Securities  pursuant  to such  Registration
Statement.  Such indemnity  shall remain in full force and effect  regardless of
any  investigation  made by or on  behalf  of such  Indemnified  Party and shall
survive the transfer of the Registrable  Securities by the Investors pursuant to
Section 9.  Notwithstanding  anything  to the  contrary  contained  herein,  the
indemnification  agreement  contained  in this  Section 6(b) with respect to any
preliminary  prospectus shall not inure to the benefit of any Indemnified  Party
if  the  untrue  statement  or  omission  of  material  fact  contained  in  the
preliminary  prospectus  was corrected on a timely basis in the  prospectus,  as
then amended or supplemented.

                  c.  Promptly  after  receipt  by  an  Indemnified   Person  or
Indemnified  Party  under this  Section 6 of notice of the  commencement  of any
action or proceeding (including any governmental action or proceeding) involving
a Claim,  such  Indemnified  Person or  Indemnified  Party shall,  if a Claim in
respect thereof is to be made against any indemnifying  party under this Section
6,  deliver  to the  indemnifying  party a written  notice  of the  commencement
thereof, and the indemnifying party shall have the right to participate in, and,
to the  extent  the  indemnifying  party so  desires,  jointly  with  any  other
indemnifying party similarly  noticed,  to assume control of the defense thereof
with counsel mutually satisfactory to the indemnifying party and the Indemnified
Person or the Indemnified Party, as the case may be; provided,  however, that an
Indemnified  Person or Indemnified  Party shall have the right to retain its own
counsel  with the fees  and  expenses  of not  more  than one  counsel  for such
Indemnified  Person or Indemnified  Party to be paid by the indemnifying  party,
if, in the reasonable  opinion of counsel retained by the indemnifying  party or
the indemnified  party,  the  representation  by such counsel of the Indemnified
Person or Indemnified  Party and the  indemnifying  party would be inappropriate
due to actual or potential  differing  interests between such Indemnified Person
or  Indemnified  Party and any other party  represented  by such counsel in such
proceeding.  In the case of an Indemnified Person,  legal counsel referred to in
the immediately  preceding sentence shall be selected by the Investors holding a
majority in interest of the Registrable  Securities included in the Registration
Statement  to which the Claim  relates.  The  Indemnified  Party or  Indemnified
Person  shall  cooperate  with the  indemnifying  party in  connection  with any
negotiation or defense of any such action or Claim by the indemnifying party and
shall furnish to the indemnifying party all information  reasonably available to
the  Indemnified  Party or

                                       8
<PAGE>

Indemnified Person which relates to such action or Claim. The indemnifying party
shall keep the Indemnified Party or Indemnified Person apprized as to the status
of  the  defense  or  any  settlement  negotiations  with  respect  thereto.  No
indemnifying  party shall be liable for any  settlement of any action,  claim or
proceeding effected without its prior written consent,  provided,  however, that
the indemnifying party shall not unreasonably  withhold,  delay or condition its
consent.  No indemnifying party shall,  without the prior written consent of the
Indemnified  Party or  Indemnified  Person,  consent to entry of any judgment or
enter into any  settlement  or other  compromise  which  does not  include as an
unconditional  term  thereof  the giving by the  claimant or  plaintiff  to such
Indemnified  Party or  Indemnified  Person of a release  from all  liability  in
respect to such Claim or litigation.  Following  indemnification as provided for
hereunder,  the  indemnifying  party  shall be  subrogated  to all rights of the
Indemnified Party or Indemnified Person with respect to all third parties, firms
or corporations  relating to the matter for which indemnification has been made.
The  failure  to  deliver  written  notice to the  indemnifying  party  within a
reasonable  time of the  commencement  of any such action shall not relieve such
indemnifying  party of any liability to the  Indemnified  Person or  Indemnified
Party under this Section 6, except to the extent that the indemnifying  party is
prejudiced in its ability to defend such action.

                  d. The  indemnification  required  by this  Section 6 shall be
made by  periodic  payments  of the  amount  thereof  during  the  course of the
investigation or defense,  as and when bills are received or Indemnified Damages
are incurred.

                  e.  The  indemnity  agreements  contained  herein  shall be in
addition to (i) any cause of action or similar right of the Indemnified Party or
Indemnified  Person  against  the  indemnifying  party or  others,  and (ii) any
liabilities the indemnifying party may be subject to pursuant to the law.

        7. CONTRIBUTION.

                  To the extent any  indemnification by an indemnifying party is
prohibited or limited by law, the indemnifying  party agrees to make the maximum
contribution  with respect to any amounts for which it would otherwise be liable
under Section 6 to the fullest extent permitted by law; provided, however, that:
(i) no person  involved in the sale of Registrable  Securities,  which person is
guilty of fraudulent  misrepresentation  (within the meaning of Section 11(f) of
the 1933 Act) in connection  with such sale,  shall be entitled to  contribution
from any person  involved  in such sale of  Registrable  Securities  who was not
guilty of fraudulent  misrepresentation;  and (ii) contribution by any seller of
Registrable  Securities shall be limited in amount to the net amount of proceeds
received by such seller from the sale of such Registrable Securities pursuant to
such Registration Statement.

        8. REPORTS UNDER THE 1934 ACT.

                  With a view to making  available to the Investors the benefits
of Rule  144  promulgated  under  the  1933  Act or any  other  similar  rule or
regulation  of the  SEC  that  may at any  time  permit  the  Investors  to sell
securities of the Company to the public without  registration  ("Rule 144"), the
Company agrees to:

                                       9
<PAGE>

                  a. make and keep public information available,  as those terms
are  understood and defined in Rule 144;

                  b. file with the SEC in a timely  manner all reports and other
documents required of the Company under the 1933 Act and the 1934 Act so long as
the Company  remains  subject to such  requirements  (it being  understood  that
nothing herein shall limit the Company's  obligations  under Section 4(c) of the
Securities  Purchase  Agreement)  and the  filing  of  such  reports  and  other
documents is required for the applicable provisions of Rule 144; and

                  c.  furnish to each  Investor  so long as such  Investor  owns
Registrable  Securities,  promptly upon request,  (i) a written statement by the
Company that it has complied  with the reporting  requirements  of Rule 144, the
1933 Act and the 1934 Act,  (ii) a copy of the most recent  annual or  quarterly
report of the  Company  and such other  reports  and  documents  so filed by the
Company,  and (iii) such other  information  as may be  reasonably  requested to
permit  the  investors  to sell such  securities  pursuant  to Rule 144  without
registration.

        9. ASSIGNMENT OF REGISTRATION RIGHTS.

                  The  rights  under  this  Agreement  shall  be   automatically
assignable  by the  Investors  to any  transferee  of  all  or  any  portion  of
Registrable  Securities  if:  (i)  the  Investor  agrees  in  writing  with  the
transferee  or assignee to assign such rights,  and a copy of such  agreement is
furnished  to the  Company  within a  reasonable  time  after such  transfer  or
assignment; (ii) the Company is, within a reasonable time after such transfer or
assignment,  furnished  with written  notice of (a) the name and address of such
transferee  or  assignee,  and (b) the  securities  with  respect  to which such
registration  rights are being  transferred  or assigned;  (iii) if  applicable,
immediately  following  such transfer or assignment  the further  disposition of
such  securities by the transferee or assignee is restricted  under the 1933 Act
and applicable  state  securities  laws;  (iv) at or before the time the Company
receives the written  notice  contemplated  by clause (ii) of this  sentence the
transferee or assignee  agrees in writing with the Company to be bound by all of
the provisions  contained herein;  and (v) such transfer shall have been made in
accordance  with  the  applicable   requirements  of  the  Securities   Purchase
Agreement.  At the transferees  request,  the Company shall promptly prepare and
file any required  prospectus  supplement under Rule 424(b)(3) of the Securities
Act or other applicable  provision of the Securities Act to appropriately  amend
the list of Selling Stockholders thereunder to include such transferee.

        10. AMENDMENT OF REGISTRATION RIGHTS.

                  Provisions of this Agreement may be amended and the observance
thereof may be waived (either  generally or in a particular  instance and either
retroactively  or  prospectively),  only with the written consent of the Company
and Investors who then hold two-thirds of the Registrable Securities, other than
any  amendments  to the  timing  and  length of filing  and  effectiveness  of a
Registration  Statement or the consequences for failure of the Company to timely
perform such obligations,  which require the consent of each affected Buyer. Any
amendment or waiver effected in accordance with this Section 10 shall be binding
upon each Investor and the Company.  No such amendment shall be effective to the
extent  that it  applies  to less  than all of the  holders  of the  Registrable
Securities.  No consideration shall be offered or paid to any Person to amend or
consent

                                       10
<PAGE>

to a waiver or modification of any provision of any of this Agreement unless the
same  consideration  also is  offered to all of the  parties to this  Agreement.
Notwithstanding  the  foregoing,  the Company and the Investors  agree that this
Agreement shall be  automatically  amended without further action by the Company
and the  Investors to add  additional  investors to this  Agreement who purchase
Common Stock in  Additional  Closings as defined in Section 2 of the  Securities
Purchase Agreement.

        11. OTHER REGISTRATION STATEMENTS; PIGGY-BACK REGISTRATIONS.

                  a. Prior to the  eleventh  (11th) day after the Company  files
the Registration Statement,  the Company shall not file a registration statement
(including any shelf registration  statements) (other than on Form S-8) with the
Commission with respect to any securities of the Company.

                  b. If at any time during the Registration  Period there is not
an effective  Registration  Statement covering all of the Registrable Securities
and the  Company  shall  determine  to prepare  and file with the  Commission  a
registration  statement  relating  to an  offering  for its own  account  or the
account of others  under the  Securities  Act of any of its  equity  securities,
other than on Form S-4 or Form S-8 (each as  promulgated  under the 1933 Act) or
their then  equivalents  relating to equity  securities  to be issued  solely in
connection with any  acquisition of any entity or business or equity  securities
issuable in connection with stock option or other employee  benefit plans,  then
the Company shall send to each  Investor  written  notice of such  determination
and, if within  fifteen  days after  receipt of such notice,  any such  Investor
shall so request in writing,  the  Company  shall  include in such  registration
statement all or any part of such Registrable Securities such holder requests to
be  registered,  subject to customary  underwriter  cutbacks  applicable  to all
holders of registration rights.

        12. MISCELLANEOUS.

                  a. A Person is deemed to be a holder of Registrable Securities
whenever  such  Person  owns or is  deemed  to own of  record  such  Registrable
Securities.  If  the  Company  receives  conflicting  instructions,  notices  or
elections  from  two or  more  Persons  with  respect  to the  same  Registrable
Securities,  the  Company  shall act upon the basis of  instructions,  notice or
election received from the registered owner of such Registrable  Securities.

                  b. Any  notices,  consents,  waivers  or other  communications
required or permitted to be given under the terms of this  Agreement  must be in
writing  and will be deemed  to have  been  delivered:  (i) upon  receipt,  when
delivered  personally;  (ii)  upon  receipt,  when sent by  facsimile  (provided
confirmation of transmission  is  mechanically or  electronically  generated and
kept on file by the sending party); or (iii) one business day after deposit with
a  nationally  recognized  overnight  delivery  service,  in each case  properly
addressed to the party to receive the same. The addresses and facsimile  numbers
for such communications shall be:

                                       11
<PAGE>

                  If to the Company:

                           The 3DO Company
                           200 Cardinal Way
                           Redwood City, California 94063
                           Telephone: (650) 385-3000
                           Facsimile: (650) 385-3184
                           Attention: Chief Executive Officer

                           With a copy to:

                           Wilson Sonsini Goodrich & Rosati
                           650 Page Mill Road
                           Palo Alto, CA 94304
                           Telephone: (650) 493-9300
                           Facsimile: (650) 493-6811
                           Attention: Yoichiro Taku, Esq.

If to the Buyer,  to its address and facsimile  number set forth on the Schedule
of Buyers attached hereto,  with copies to such Buyer's  representatives  as set
forth on the  Schedule  of Buyers,  or to such other  address  and/or  facsimile
number and/or to the  attention of such other person as the recipient  party has
specified by written notice given to each other party five (5) days prior to the
effectiveness of such change.  Written  confirmation of receipt (A) given by the
recipient  of  such  notice,  consent,   waiver  or  other  communication,   (B)
mechanically  or  electronically  generated  by the sender's  facsimile  machine
containing the time, date,  recipient facsimile number and an image of the first
page of such  transmission  or (C)  provided by a courier or  overnight  courier
service shall be rebuttable  evidence of personal service,  receipt by facsimile
or receipt from a nationally recognized overnight delivery service in accordance
with clause (i), (ii) or (iii) above, respectively.

                  c.  Failure of any party to exercise any right or remedy under
this  Agreement or otherwise,  or delay by a party in  exercising  such right or
remedy,  shall not operate as a waiver thereof.

                  d.  All  questions  concerning  the  construction,   validity,
enforcement  and  interpretation  of this  Agreement  shall be  governed  by the
internal laws of the State of Delaware,  without  giving effect to any choice of
law or conflict of law provision or rule. Each party hereby  irrevocably  waives
personal  service of process and  consents to process  being  served in any such
suit,  action or  proceeding  by  mailing a copy  thereof  to such  party at the
address for such notices to it under this Agreement and agrees that such service
shall  constitute  good and  sufficient  service of process and notice  thereof.
Nothing  contained herein shall be deemed to limit in any way any right to serve
process in any manner permitted by law. If any provision of this Agreement shall
be  invalid  or   unenforceable   in  any   jurisdiction,   such  invalidity  or
unenforceability  shall  not  affect  the  validity  or  enforceability  of  the
remainder  of  this   Agreement  in  that   jurisdiction   or  the  validity  or
enforceability  of any  provision of this  Agreement in any other  jurisdiction.
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.

                                       12
<PAGE>

                  e. This Agreement,  the Securities  Purchase Agreement and the
Warrants  constitute the entire  agreement among the parties hereto with respect
to the subject matter hereof and thereof.  There are no restrictions,  promises,
warranties or undertakings, other than those set forth or referred to herein and
therein.  This  Agreement,  the Securities  Purchase  Agreement and the Warrants
supersede all prior agreements and understandings  among the parties hereto with
respect to the subject matter hereof and thereof.

                  f. Subject to the  requirements  of Section 9, this  Agreement
shall inure to the benefit of and be binding upon the permitted  successors  and
assigns of each of the parties hereto.

                  g. The  headings  in this  Agreement  are for  convenience  of
reference only and shall not limit or otherwise affect the meaning hereof.

                  h. This  Agreement may be executed in identical  counterparts,
each of which shall be deemed an original but all of which shall  constitute one
and the same  agreement.  This  Agreement,  once  executed  by a  party,  may be
delivered to the other party hereto by facsimile  transmission of a copy of this
Agreement bearing the signature of the party so delivering this Agreement.

                  i. Each party  shall do and  perform,  or cause to be done and
performed,  all such further acts and things,  and shall execute and deliver all
such other  agreements,  certificates,  instruments and documents,  as the other
party may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions contemplated
hereby.

                  j. All consents and other  determinations  required to be made
by the Investors  pursuant to this  Agreement  shall be made,  unless  otherwise
specified in this  Agreement,  by  Investors  holding at least a majority of the
Registrable Securities.

                  k. The language  used in this  Agreement  will be deemed to be
the language  chosen by the parties to express  their mutual intent and no rules
of strict  construction will be applied against any party.

                  l. The obligations of each Buyer hereunder are several and not
joint with the obligations of any other Buyer  hereunder,  and no Buyer shall be
responsible in any way for the performance of the obligations of any other Buyer
hereunder.  Nothing  contained  herein or in any  other  agreement  or  document
delivered at any closing,  and no action taken by any Buyer  pursuant  hereto or
thereto,  shall  be  deemed  to  constitute  the  Buyers  as a  partnership,  an
association,  a  joint  venture  or any  other  kind  of  entity,  or  create  a
presumption  that the Buyers are in any way  acting in concert  with  respect to
such obligations or the transactions  contemplated by this Agreement. Each Buyer
shall  be  entitled  to  protect  and  enforce  its  rights,  including  without
limitation  the  rights  arising  out of this  Agreement,  and it  shall  not be
necessary  for any  other  Buyer  to be  joined  as an  additional  party in any
proceeding for such purpose.

                                       13
<PAGE>

                  m. This  Agreement  is intended for the benefit of the parties
hereto and their respective permitted successors and assigns, and is not for the
benefit of, nor may any provision hereof be enforced by, any other Person.

                                   * * * * * *

                                       14
<PAGE>

         IN WITNESS WHEREOF,  the parties have caused this  Registration  Rights
Agreement to be duly executed as of day and year first above written.

                                               COMPANY:

                                               THE 3DO COMPANY

                                               By:  /S/ James Alan Cook
                                                   -----------------------------

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

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

                                               BUYER:

                                               /s/ Triage Capital Management, LP

                                               /s/ OTA LLC

                                               /s/ Triage Offshore Fund, LTD.

<PAGE>

                                    EXHIBIT A

                             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>
Triage Capital                  401 City Ave                   117,647            29,411         200,000.00          2.525
Management, LP                  Suite 526
                                Bala Cynwyd, PA 19004
                                Fax: (610) 668-1919

OTA LLC                         1 Manhattanville Road
                                Purchase, NY 10577              58,823            14,705         100,000.00          2.525
                                (Fax)  914 694 6342

                                c/o IFA
Triage Offshore Fund,           48 Parla-Villa Rd.             117,647            29,411         200,000.00          2.525
LTD.                            Suite 464
                                Hamilton, HM11
                                Bermuda
                                Fax: (610) 668-1919

TOTAL                                                          294,117            73,527         500,000.00

</TABLE>

<PAGE>

                                     Annex A
                              Plan of Distribution

         The  Selling  Stockholders  and any of their  pledgees,  assignees  and
successors-in-interest  may, from time to time,  sell any or all of their shares
of Common Stock on any stock exchange,  market or trading  facility on which the
shares  are traded or in private  transactions.  These  sales may be at fixed or
negotiated  prices.  The  Selling  Stockholders  may  use any one or more of the
following methods when selling shares:

         ordinary  brokerage  transactions  and transactions in which the broker
dealer solicits purchasers;

         block trades in which the broker dealer will attempt to sell the shares
as agent but may  position  and  resell a portion of the block as  principal  to
facilitate  the  transaction;

o purchases by a broker  dealer as principal and resale by the broker dealer for
its account;

o an  exchange  distribution  in  accordance  with the  rules of the  applicable
exchange;

o privately negotiated transactions;

o short sales

o broker  dealers  may agree with the Selling  Stockholders  to sell a specified
number of such shares at a stipulated price per share;

o a combination of any such methods of sale; and

o any other method permitted pursuant to applicable law.

         The Selling  Stockholders may also sell shares under Rule 144 under the
Securities Act, if available, rather than under this prospectus.

         Broker  dealers  engaged by the  Selling  Stockholders  may arrange for
other  brokers  dealers to  participate  in sales.  Broker  dealers  may receive
commissions or discounts from the Selling Stockholders (or, if any broker dealer
acts as agent for the purchaser of shares,  from the purchaser) in amounts to be
negotiated.  The  Selling  Stockholders  do not  expect  these  commissions  and
discounts to exceed what is customary in the types of transactions involved.

         The  Selling  Stockholder  may  from  time to time  pledge  or  grant a
security  interest in some or all of the Shares or common stock or Warrant owned
by them and, if they default in the  performance  of their secured  obligations,
the  pledgees or secured  parties may offer and sell the shares of common  stock
from  time  to time  under  this  prospectus,  or  under  an  amendment  to this
prospectus under Rule 424(b)(3) or other applicable  provision of the Securities
Act of 1933  amending the list of Selling  Stockholders  to include the pledgee,
transferee or other  successors in interest as selling  stockholders  under this
prospectus.

                                        2
<PAGE>

         The Selling  Stockholders  also may transfer the shares of common stock
in  other  circumstances,  in  which  case the  transferees,  pledgees  or other
successors  in interest  will be the selling  beneficial  owners for purposes of
this prospectus.

         The  Selling  Stockholders  and any broker  dealers or agents  that are
involved  in selling  the shares may be deemed to be  "underwriters"  within the
meaning of the Securities Act in connection with such sales. In such event,  any
commissions  received  by such  broker  dealers  or agents and any profit on the
resale  of the  shares  purchased  by  them  may be  deemed  to be  underwriting
commissions or discounts under the Securities Act. The Selling Stockholders have
informed  the  Company  that it does not have any  agreement  or  understanding,
directly or indirectly, with any person to distribute the Common Stock.

         The Company is required  to pay all fees and  expenses  incident to the
registration  of the shares.  The Company  has agreed to  indemnify  the Selling
Stockholders against certain losses, claims, damages and liabilities,  including
liabilities under the Securities Act.

                                       3EXHIBIT 10.3

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: February 21, 2003

                                                   ______ Shares of Common Stock

Warrant No. CW-_____

         1. Issuance. This Warrant is issued to _____________ (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
_____________ fully paid and nonassessable shares of Common Stock of the Company
(the  "Common   Stock")  at  a  price  per  share  (the  "Purchase   Price")  of
$____________, 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

<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

                                       2
<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 Stock

                                       3
<PAGE>

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.

         15. Limitation on Number of Warrant Shares. Notwithstanding anything to
the contrary  contained herein, the number of shares of Common Stock that may be
acquired  by the Holder  upon any  exercise of this  Warrant  (or  otherwise  in
respect  hereof)  shall be  limited  to the  extent  necessary  to insure  that,
following  such  exercise  (or other  issuance),  the total  number of shares of
Common Stock then  beneficially  owned by such Holder and its affiliates and any
other  persons  whose  beneficial  ownership of Common Stock would be aggregated
with the Holder's for purposes of Section 13(d) of the  Securities  Exchange Act
of 1934 ("Exchange  Act"),  does not exceed 9.999% of the total number of issued
and outstanding shares of Common Stock (including for such purpose the shares of
Common  Stock  issuable  upon  such  exercise).  For such  purposes,  beneficial
ownership  shall be determined in accordance  with Section 13(d) of the Exchange
Act and the rules and  regulations  promulgated  thereunder.  Each delivery of a
Form of Election to Purchase  hereunder will constitute a representation  by the
Holder that it has  evaluated  the  limitation  set forth in this  paragraph and
determined  that issuance of the full number of shares of Common Stock requested
in such Form of Election to Purchase is  permitted  under this  paragraph.  This
provision shall not restrict the number of shares of Common Stock which a Holder
may receive or  beneficially  own in order to determine the amount of securities
or other  consideration that such Holder may receive in the event of a merger or
other  business  combination  or  reclassification   involving  the  Company  as
contemplated in Section 9 of this Warrant.

                                       5
<PAGE>

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

Dated February 21, 2003                       The 3DO Company

                                              Name:
                                                    ----------------------------

                                              Title:
                                                     ---------------------------

                                       6

<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 February ___, 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,

                                              ______________ (name of purchaser)

                                             ___________________________________

<PAGE>

<TABLE>
<CAPTION>

                                                         Exercise Log

----------------------------- ---------------------------- ---------------------------- ----------------------------
<S>      <C>                  <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>

                                                               2

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