The company which is creating games such as High Heat Major League Baseball 2004 is receiving $10 million from its CEO, Trip Hawkings. They aim to get back on track with revenue growth for 2003. Trip Hawkings will get four years of two million shares of the company in return.

REDWOOD CITY, Calif., Dec. 27 -- The 3DO Company announced today the completion of an agreement with founder and chief executive officer Trip Hawkins that will provide $10 million in financial support to the company.

"3DO is poised to release hit games in 2003, beginning with our top-ranked High Heat Major League Baseball 2004 in February," said Hawkins. "This agreement is a big step forward on our goals of revenue growth and a return to profitability. Our confidence is growing from good previews from the gaming press for our 2003 product slate, and promising purchase order demand for our initial 2003 releases."

Hawkins, who had previously made a $3 million bridge loan to the company, agreed to participate in a subsequent equity or debt transaction by giving the company the option to cancel up to $3 million of the loan as payment of the purchase price in the subsequent financing. In addition, the total size of the loan was increased to $8 million, of which $6.2 million has been drawn. The balance of $1.8 million may be drawn through June 30, 2003 at the option of the company. Hawkins also agreed to provide additional financial assistance that the parties currently contemplate may provide up to an additional $2 million in financial assistance to the company.

The parties also agreed that Hawkins would subordinate his security interest in the company's assets to new asset-based lenders in order to facilitate the company's goal of obtaining a new accounts receivable credit facility in 2003. The company is in discussions with several prospective lenders and hopes to have a new credit line in place by March 2003.

As part of the agreement, the company will issue to Hawkins warrants to purchase 2 million shares of 3DO common stock, exercisable over four years, with an exercise price of $2.52 per share, and will grant certain registration rights for Hawkins' common stock in the company.