Document:

EXHIBIT 10.3

                          REGISTRATION RIGHTS AGREEMENT

     REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of May 20, 2003,
by and among The 3DO Company, a Delaware corporation,  with headquarters located
at 200 Cardinal Way Redwood City, California 94063 (the "Company"),  and William
M. Hawkins, III (the "Buyer").

     WHEREAS:

     A. In connection  with the Securities  Purchase  Agreement by and among the
parties hereto dated May 20, 2003 (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  Buyer  shares of the
Company's  common  stock,  par value $0.01 per share (the "Common  Stock") and a
warrant to purchase shares of Common Stock (the "Warrant");

     B. To induce the Buyer 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 the Buyer 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

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effectiveness of such Registration  Statement(s) by the United States Securities
and Exchange Commission (the "SEC").

         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 Warrant (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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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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         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

                                       12
<PAGE>

IN  CONNECTION  HEREWITH OR ARISING  OUT OF THIS  AGREEMENT  OR ANY  TRANSACTION
CONTEMPLATED HEREBY.

         e. This  Agreement,  the Securities  Purchase  Agreement,  the Note and
Warrant Purchase Agreement,  (the "Note and Warrant Purchase Agreement") between
the Company, The 3DO Company, a California  corporation,  and the Buyer, and the
Warrant 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, the Note and Warrant
Purchase  Agreement,   and  the  Warrant  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. 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.

                                   * * * * * *

                                       13
<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
                                                     ---------------------------

                                               Its: Secretary
                                                    ----------------------------

                                               BUYER:

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

                                               Name: William M. Hawkins, III
                                                     ---------------------------

                                               Its:  Self
                                                     ---------------------------

                                       14
<PAGE>

                               SCHEDULE OF BUYERS

<TABLE>
<CAPTION>

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

</TABLE>

                                       15
<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

                                       16
<PAGE>

Stockholders to include the pledgee,  transferee or other successors in interest
as selling stockholders under this prospectus.

         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.

                                       17EXHIBIT 10.4

                   FIRST AMENDMENT TO SECURED SUBSEQUENT NOTE

     This First Amendment (this "First Amendment"),  dated as of April 16, 2003,
is between The 3DO Company, a Delaware corporation ("Company"), The 3DO Company,
a  California   corporation   ("Subsidiary")   and  William  M.   Hawkins,   III
("Purchaser"). The parties, intending to be legally bound, hereby agree to amend
the Secured Subsequent Note, dated January 30, 2003 (the "Subsequent Note") from
Subsidiary payable to the order of Purchaser, as follows:

     1. Definitions.  As used in this First Amendment, all capitalized terms not
otherwise  defined  herein  shall  have  the  respective  meanings  given in the
Subsequent Note.

     2. Subsequent Note Amendments.

              (a) The first sentence of the Subsequent Note is hereby amended to
read in full as follows:

     FOR VALUE RECEIVED The 3DO Company,  a California  corporation  ("Company")
     promises to pay to William M. Hawkins, III ("Investor"),  or his registered
     assigns,  the principal sum of Four Million Dollars  ($4,000,000),  or such
     lesser  amount as shall  equal the  outstanding  principal  amount  hereof,
     together with  interest from the date of this Note on the unpaid  principal
     balance at a rate  equal to (i) the rate  payable  by Lisa  Warnes  Hawkins
     Revocable Trust Dated March 10, 2000 ("Trust  Borrower") to Comerica Bank -
     California  ("Comerica")  pursuant to the Variable Rate Single Payment Note
     and related  documents  dated on or about April 16, 2003 (such documents as
     they may be hereafter amended or replaced,  the "Comerica  Agreements") for
     obligations  outstanding under the Comerica  Agreements,  whether before or
     after an event of  default  under  the  Comerica  Agreements  or (ii) if no
     obligations are outstanding under the Comerica Agreements,  a rate equal to
     nine and one-half percent (9 1/2%) per annum,  computed on the basis of the
     actual number of days elapsed and a year of 365 days.

              (b) Section 2 of the of the  Subsequent  Note is hereby amended to
read in full as follows:

     Accrued interest on this Note shall be payable (i) when interest is payable
     to Comerica pursuant to the Comerica Agreements for obligations outstanding
     under the Comerica  Agreements,  or (ii) if no obligations  are outstanding
     under the Comerica Agreements, ten days after the last day of each calendar
     quarter  until the  outstanding  principal  amount  hereof shall be paid in
     full,  with the first  such  payment  due ten days  after  March 31,  2003.
     Interest shall be payable in cash.

              (c) Section 14(a) of the of the Subsequent  Note is hereby amended
to read in full as follows:

     Indemnity.  In  consideration  of  Investor's  purchase of this Note and in
     addition  to all of  Company's  other  obligations  under  the  Transaction
     Documents, Company shall defend,

                                       1
<PAGE>

     protect, indemnify and hold harmless Investor and Trust Borrower and all of
     their respective stockholders,  officers, directors,  employees,  trustees,
     beneficiaries,  and direct or indirect  investors  and any of Investors' or
     Trust Borrower's agents or other representatives  (including those retained
     in  connection  with  the  transactions  contemplated  by  the  Transaction
     Documents)  (collectively,  the "Indemnitees") from and against any and all
     actions, causes of action, suits, claims, losses, costs,  penalties,  fees,
     liabilities and damages, and expenses in connection therewith (irrespective
     of  whether  any  such  Indemnitee  is a  party  to the  action  for  which
     indemnification  hereunder is sought), and including reasonable  attorneys'
     fees  and  disbursements  (collectively,  the  "Indemnified  Liabilities"),
     incurred by any  Indemnitee  as a result of, or arising out of, or relating
     to any matter or thing or action or failure to act by  Indemnitees,  or any
     of them, arising out of or relating to the Transaction Documents, including
     any use by Company of any  proceeds  from the sale of this Note,  except to
     the extent  such  liability  arises  from the gross  negligence  or willful
     misconduct of the Indemnitees. To the extent that the foregoing undertaking
     by Company  may be  unenforceable  for any reason,  Company  shall make the
     maximum  contribution  to the  payment  and  satisfaction  of  each  of the
     Indemnified Liabilities which is permissible under applicable law.

     3. References in Transaction  Documents.  The parties  acknowledge that all
references to the Subsequent  Note in the  Transaction  Documents shall mean the
Subsequent Note as amended by this First Amendment.

     4.  Reimbursement  of Expenses.  Company  shall pay on demand the following
fees and expenses:  (i) the reasonable  legal fees and expenses of Purchaser and
the Lisa Warnes Hawkins  Revocable  Trust ("Trust  Borrower") in connection with
the preparation, execution and delivery of this First Amendment and the Variable
Rate Single  Payment Note and related  documents with Comerica Bank - California
("Comerica") dated on or about April 16, 2003 (the "Comerica  Agreements"),  and
(ii) other expenses of Purchaser,  Trust Borrower, or the William M. Hawkins III
Revocable  Trust,   dated  March  10,  2000  in  connection  with  the  Comerica
Agreements.  The parties  acknowledge  that the terms of the Subsequent Note are
intended  to pass  through  the cost of  interest  to Trust  Borrower  under the
Comerica  Agreements  and are not  intended  to be  reimbursed  pursuant to this
section, but reimbursable  expenses may include origination or loan fees payable
to  Comerica  under the  Comerica  Agreements  and any other fees or expenses of
Comerica payable under the Comerica  Agreements whether before or after an event
of default thereunder.

     5.  Other  Provisions  of  Agreement.  Except  as  amended  in  this  First
Amendment, all other provisions of the Subsequent Note and the other Transaction
Documents shall remain in full force and effect.

     6.  Counterparts.  This First  Amendment  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.

                                       2
<PAGE>

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

THE 3DO COMPANY
a Delaware corporation                                  William M. Hawkins, III

By: /s/ James Alan Cook                             /s/ William M. Hawkins, III
    -------------------                             ----------------------------
Name:   James Alan Cook
Title:  Secretary

THE 3DO COMPANY
a California corporation

By: /s/ James Alan Cook
    -------------------
Name:   James Alan Cook
Title:  Executive Vice President

                                       3

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