Document:

<PAGE>

                                                                    Exhibit 10.7

                            STOCK PURCHASE AGREEMENT
                            ________________________

     This Stock Purchase Agreement, dated as of October 31, 2000, (this
"AGREEMENT") is entered into by and among The 3DO Company, a Delaware
corporation, (the "COMPANY") and Michael Marks (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 Purchaser and Purchaser hereby
agrees to purchase from Company an aggregate of 1,616,162 shares of Company's
Common Stock (the "Shares"), at the purchase price of $3.09375 per share for an
aggregate purchase price of $5,000,001.19.

     2.   PAYMENT OF PURCHASE PRICE. The purchase price for the Shares shall be
paid by delivery to Company at the time of execution of this Agreement of a
check, wire transfer, or any combination thereof, in the amount of
$5,000,001.19, payable to Company (the "Closing Date").

     3.   WARRANT. In consideration of Purchaser's commitment to purchase up to
an aggregate principal amount of $1,199,998.80 of Common Stock from Company,
Company shall issue a warrant to Purchaser in the form attached hereto as
Exhibit A (the "Warrant").

     4.   REPRESENTATIONS AND WARRANTIES OF COMPANY. Company hereby represents
and warrants to Purchaser that, the statements contained in the following
paragraphs of this Section 4 are all true and correct as of 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 and deliver this Agreement, the Warrant and the
Registration Rights Agreement in the form attached hereto as EXHIBIT B. This
Agreement, the Warrant, and the Registration Rights Agreement will be valid and
binding obligations of Company, enforceable in accordance with their terms,
except as the same may be limited by bankruptcy, insolvency, moratorium, and
other laws of general application affecting the enforcement of creditors'
rights.

          (c)  AUTHORIZATION.

               (1)  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 Warrant, the Registration Rights Agreement,
the sale and issuance of the Shares, the sale and issuance of the Warrant, the
shares issuable upon the exercise of the Warrant, and the performance of
Company's obligations hereunder, under the Warrant and under the Registration
Rights Agreement have been taken.

<PAGE>

               (2)  VALID ISSUANCE. The Shares, the Warrant, and the shares of
Common Stock issued upon exercise of the Warrant (collectively, the
"SECURITIES"), when issued in compliance with the provisions of this Agreement
and the Warrant will be validly issued and will be free of any liens or
encumbrances; PROVIDED, HOWEVER, that the Securities 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 Warrant, the Registration Rights Agreement or the offer, sale or issuance of
the Securities, 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.

     5.   REPRESENTATIONS AND WARRANTIES BY PURCHASER. Purchaser represents and
warrants to Company as of the Closing Date as follows:

          (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
Securities 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 Securities Act
of 1933, as amended, (the "SECURITIES ACT") or the California Law. Purchaser has
the full 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)  SECURITIES NOT REGISTERED. Purchaser understands and acknowledges
that the offering of the Securities pursuant to this Agreement will not be
registered under the Securities Act or qualified under the California Law on the
grounds that the offering and sale of securities contemplated by this Agreement
are exempt from registration under the Securities Act and exempt from
qualification pursuant to section 25102(f) of the California Law, and that
Company's reliance upon such exemptions is predicated upon Purchaser's
representations set forth in this Agreement. Purchaser acknowledges and
understands that the resale of the Securities may be restricted indefinitely
unless the Securities are subsequently registered under the Securities Act and
qualified under the California Law or an exemption from such registration and
such qualification is available. Purchaser acknowledges that Company is under no
obligation to effect any registration with respect to the Securities or to file
for or comply with any exemption from registration other than as provided for in
the Registration Rights Agreement.

          (c)  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

<PAGE>

Purchaser's prospective investment in the Securities; (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 Securities by any form of advertisement,
article, notice or other 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.

     6.   CONDITIONS OF THE PURCHASER'S OBLIGATIONS AT CLOSING. The obligations
of the Purchaser under this Agreement are subject to the fulfillment on or
before the Closing of each of the following conditions, any of which may be
waived in writing by the Purchaser:

          (a)  REPRESENTATIONS AND WARRANTIES. The representations and
warranties of the Company contained in Section 4 shall be true and correct on
and as of the Closing.

          (b)  PERFORMANCE. The Company shall have performed and complied with
all covenants, agreements, obligations and conditions contained in this
Agreement that are required to be performed or complied with by it on or before
the Closing.

          (c)  REGISTRATION RIGHTS AGREEMENT. The Company and the Purchaser
shall have executed the Registration Rights Agreement on or prior to the date of
the Closing.

     7.   CONDITIONS OF THE COMPANY'S OBLIGATIONS AT CLOSING. The obligations of
the Company under this Agreement are subject to the fulfillment on or before the
Closing of each of the following conditions, any of which may be waived in
writing by the Company:

          (a)  REPRESENTATIONS AND WARRANTIES. The representations and
warranties of the Purchaser contained in Section 5 shall be true and correct on
and as of the Closing.

          (b)  PERFORMANCE. The Purchaser shall have performed and complied with
all covenants, agreements, obligations and conditions contained in this
Agreement that are required to be performed or complied with by it on or before
the Closing.

          (c)  REGISTRATION RIGHTS AGREEMENT. The Company and the Purchaser
shall have executed the Registration Rights Agreement on or prior to the date of
the Closing.

     8.   MISCELLANEOUS.

          (a)  WAIVERS AND AMENDMENTS. Any provision of this Agreement may be
amended, waived or modified upon the written consent of Company and Purchaser.

          (b)  GOVERNING LAW. This Agreement, and the Warrant and all actions
arising out of or in connection with this Agreement, and the Warrant shall be
governed by and construed in accordance with the laws of the State of
California, without regard to the conflicts of law provisions of the State of
California or of any other state. The parties acknowledge and agree

<PAGE>

that the exclusive venue and jurisdiction of any dispute arising out of this
Agreement shall be a federal or state court located in the County of San
Francisco, California.

          (c)  ENTIRE AGREEMENT. This Agreement together with the exhibits
attached hereto 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
c/o Company at 600 Galveston Drive, Redwood City, California 94063, or at such
other address or number as Purchaser shall have furnished to Company in writing,
or if to Company, at 600 Galveston Drive, 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, or the Warrant
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.

          (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.

<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.

                                    COMPANY:

                                    THE 3DO COMPANY
                                    A DELAWARE CORPORATION

                                    By:__________________________________

                                    Its:_________________________________

THE 3DO COMPANY
SIGNATURE PAGE TO THE
STOCK PURCHASE AGREEMENT

<PAGE>

                                    PURCHASER:

                                    MICHAEL MARKS

                                   _____________________________________

SIGNATURE PAGE TO THE
STOCK PURCHASE AGREEMENT

<PAGE>

                                    EXHIBIT A
                                    _________

                                     WARRANT

<PAGE>

                                    EXHIBIT B
                                    _________

                          REGISTRATION RIGHTS AGREEMENT<PAGE>
                                                                   Exhibit 10.8

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.

THIS WARRANT AND THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO A LOCK-UP
AGREEMENT BETWEEN THE COMPANY AND THE ORIGINAL HOLDER OF THIS WARRANT THAT
PROHIBITS SALE OR TRANSFER OF THIS WARRANT OR THE SECURITIES REPRESENTED HEREBY
FOR A PERIOD OF TWO YEARS FROM THE ISSUE DATE OF THIS WARRANT. THIS AGREEMENT IS
BINDING UPON TRANSFEREES. A COPY OF THIS AGREEMENT IS ON FILE WITH THE SECRETARY
OF THE COMPANY.

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

                                                    Issue Date: October 31, 2000

Warrant No. CW-3                                  323,232 Shares of Common Stock

     1. ISSUANCE. This Warrant is issued to Michael Marks (the "HOLDER"), by The
3DO Company, a Delaware corporation (hereinafter with its successors called the
"COMPANY") pursuant to the Stock 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 323,232 fully paid
and nonassessable shares of Common Stock of the Company (the "COMMON STOCK") at
a price per share (the "PURCHASE PRICE") of $3.7125, subject to adjustment
pursuant to Sections 8 and 9 below.

     3. PAYMENT OF PURCHASE PRICE. 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

<PAGE>

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 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 fifth anniversary of the date of this Warrant (the
"EXPIRATION DATE") and shall be void thereafter.

                                      -2-
<PAGE>

        (b) DELIVERY. Upon the exercise of the rights represented by this
Warrant, the Company shall use good faith efforts to issue and deliver to the
Holder a certificate or certificates for the shares of Common Stock issuable
upon exercise of this Warrant so purchased, registered in the name of the Holder
within a reasonable time after the rights represented by this Warrant shall have
been so exercised and in any event within twenty (20) days after receipt of the
Notice of Exercise and, unless the Warrant has been fully exercised or expired,
a new warrant representing the remaining portion of the Warrant and the
underlying Common Stock, if any, with respect to which this Warrant shall not
have been exercised shall also be issued to the Holder as soon as possible and
in any event within such twenty (20) day period.

     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 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

                                     -3-

<PAGE>

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.

     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 600 Galveston Drive, 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 600 Galveston Drive, 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 California, without regard
to the conflicts of law provisions of the State of California, or of any other
state.

     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.

Dated October __, 2000                 THE 3DO COMPANY

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

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

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

                                     -4-
<PAGE>

                                   APPENDIX 1

                                SUBSCRIPTION FORM

                                                            Date: _____________
The 3DO Company
600 Galveston Drive
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 August ___, 2000 (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.

         The undersigned also makes the representations set forth on Appendix 2
attached to the Warrant.

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

                                        Very truly yours,

                                        MICHAEL MARKS

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

<PAGE>

                                   APPENDIX 2

                               WARRANT CERTIFICATE

THIS AGREEMENT MUST BE COMPLETED, SIGNED AND RETURNED TO THE 3DO COMPANY ALONG
WITH THE SUBSCRIPTION FORM BEFORE THE SHARES ISSUABLE UPON EXERCISE OF THE
WARRANT CERTIFICATE WILL BE ISSUED.

                                                           Date: _____________
The 3DO Company
600 Galveston Drive
Redwood City, CA 94063

     The undersigned, ("PURCHASER"), intends to acquire _______ shares of the
Common Stock (the "SHARES") of The 3DO Company (the "COMPANY") from the Company
pursuant to the exercise of a certain Warrant to purchase Shares held by
Purchaser. The Shares will be issued to Purchaser in a transaction not involving
a public offering and pursuant to an exemption from registration under the
Securities Act of 1933, as amended (the "1933 ACT") and applicable state
securities laws. In connection with such purchase and in order to comply with
the exemptions from registration relied upon by the Company, Purchaser
represents, warrants and agrees as follows:

     1. Purchaser is acquiring the Shares for its own account, to hold for
investment, and Purchaser shall not make any sale, transfer or other disposition
of the Shares in violation of the 1933 Act or the General Rules and Regulations
promulgated thereunder by the Securities and Exchange Commission (the "SEC") or
in violation of any applicable state securities law;

     2. Purchaser has been advised that the Shares have not been registered
under the 1933 Act or state securities laws on the ground that this transaction
is exempt from registration, and that reliance by the Company on such exemptions
is predicated in part on Purchaser's representations set forth in this letter;

     3. Purchaser has been informed that under the 1933 Act, the Shares must be
held indefinitely unless it is subsequently registered under the 1933 Act or
unless an exemption from such registration (such as Rule 144) is available with
respect to any proposed transfer or disposition by Purchaser of the Shares;

     4. The Company may refuse to permit Purchaser to sell, transfer or dispose
of the Shares (except as permitted under Rule 144) unless there is in effect a
registration statement under the 1933 Act and any applicable state securities
laws covering such transfer, or unless Purchaser furnishes an opinion of counsel
reasonably satisfactory to counsel for the Company, to the effect that such
registration is not required;

     5. Purchaser has invested in securities of companies in the development
stage and acknowledges that it is able to fend for itself, can bear the economic
risk of its investment, and has such knowledge and experience in financial or
business matters that it is capable of evaluating the

<PAGE>

merits and risks of the investment in the Shares. Purchaser represents and
warrants that it is an "accredited investor" within the meaning of Rule 501 of
Regulation D of the 1933 Act.

         Purchaser also understands and agrees that there will be placed on the
certificate(s) for the Shares, or any substitutions therefor, legends stating in
substance:

         "These securities have 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."

         "This Warrant and the securities represented hereby are subject to a
         lock-up agreement between the Company and the original holder of this
         Warrant that prohibits sale or transfer of this Warrant or the
         securities represented hereby for a period of two years from the issue
         date of this Warrant. This Agreement is binding upon transferees. A
         copy of this Agreement is on file with the Secretary of the Company."

         Any legend required pursuant to applicable state securities laws.

         Purchaser has carefully read this letter and has discussed its
requirements and other applicable limitations upon Purchaser's resale of the
Shares with Purchaser's counsel.

                                        Very truly yours,

                                        MICHAEL MARKS

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

                                     -2-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}]]