Document:

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                                                                EXHIBIT 4.12

             LOGO
      CONSTELLATION 3D, INC.
       www.c-3d.net

                                              Please respond to:
                                       Office of the Director of Legal Affairs
                                              2625 NE 11th Court
                                              Fort Lauderdale, FL 33304
                                              Tel. (954) 568-3007
                                              Fax (954) 565-4673
                                              E-mail mlg.esq@att.net
August 23, 2000

Mr. David Craven
Epicenter Venture Finance Ltd.
10, route de l'Aeroport
P. O. Box 691
1215 Geneva 15, Switzerland

Re:      CONVERSION OF EPICENTER VENTURE FINANCE LTD. 8% SERIES C CONVERTIBLE
         NOTE FOR US$1,000,000 TO MATURE OCTOBER 31, 2001.

Dear Mr. Craven:

This letter shall act as confirmation of your irrevocable agreement to convert
the outstanding Note of Epicenter Venture Finance Ltd. ("Epicenter") to Common
Stock in Constellation 3D, Inc. ("C3D" or the "Company") on the same terms and
conditions as the investment of Halifax Fund, L.P. ("Halifax"), which was
concluded earlier today. The price of your conversion shall be at ten and 15/100
($10.15) U.S. dollars.

Further, the Company agrees to include the stock issued to Epicenter pursuant to
your conversion in the Form S-1 registration statement, which we expect to file
with the SEC no later than September 22, 2000.

                                   Sincerely,

                                   CONSTELLATION 3D, INC.

                                   By:   /s/ Michael Goldberg (SEAL)
                                        ---------------------
                                        Michael Goldberg,
                                        Director of Legal Affairs

Agreed to, accepted and acknowledged this 23rd day of August 2000.

                                   EPICENTER VENTURE FINANCE LTD.

                                   By:  /s/ David Craven (SEAL)
                                        ----------------
                                        David Craven<PAGE>

                               FINDER'S AGREEMENT

This Finder's Agreement (this "Agreement") is made as of July 13, 2000, between
Constellation 3D, Inc., a Florida Corporation (the "Company"), and The Shemano
Group, Inc., a California corporation (the "Finder"). The Finder and the Company
agree:

         1.       Engagement of Finder: The Company hereby engages the Finder,
                  and the Finder hereby accepts such engagement, to act as the
                  Company's as a non-exclusive finder with respect to sales by
                  the Company in a private placement transaction (the
                  "Offering") of up to $10 million aggregate principal amount of
                  Equity, Equity-Related or Debt Securities (the "Securities")
                  of the Company to the investors.

         2.       Offering Procedures: The Finder will introduce the Company to
                  investors set forth in Exhibit A (Offerees) who the Finder
                  represents are "accredited investors," as that term is defined
                  in Rule 501 of Regulation D promulgated under the Securities
                  Act of 1933, as amended (the "1933 Act"), with whom the Finder
                  has a pre-existing substantive relationship.

         3.       Finder's Compensation: In consideration for the services
                  rendered by the Finder hereunder, the Company shall pay to the
                  Finder, or cause the Finder to be paid, compensation as
                  provided in this section at the Closing.

                  Cash and Company's Stock Compensation: In consideration for
                  the services rendered by the Finder hereunder, the Company
                  shall pay to the Finder, or cause the Finder to be paid,
                  compensation equal to five percent (5%) of the gross offering
                  funds received in the Offering(s) from the sale(s) of
                  securities to the Offeree(s). The compensation to be conveyed
                  to the Finder will be in the form of cash. The cash
                  compensation is due and payable upon the Company's receipt of
                  funds. The company shall pay the Shemano Group 400,000
                  warrants at the same strike price as that of the investor. The
                  amount of warrants is based on a fund raising of $10,000,000
                  and will be adjusted proportionally if the amount is less, or
                  more up to the amount of $15,000,000. For amounts above
                  $15,000,000 the parties will agree on the number of warrants.
                  In the event the warrants reset for the investor, the warrants
                  will reset for the Shemano Group as well.

         4.       Certain Matters Relating to Finder's Duties:

                  (a) The Finder's responsibilities shall be limited to
                      introducing potential investors to the Company, and the
                      Finder shall not have authority to offer or sell the
                      Securities to any potential investor. The Finder shall
                      have no responsibility to participate or assist in any
                      negotiations between any potential investor and the
                      Company. The Finder will have no responsibility to act,
                      and the parties contemplate that the Finder will not act,
                      as a broker or dealer with respect to the offer or sale of
                      the Securities. Further, the finder shall have no
                      responsibility for fulfilling any SEC reporting or filing
                      requirements as relates to the Company.

                           Page 1 of Finder Agreement

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                  (b) The Finder will review with the Company a list in the form
                      of Exhibit A of the identities and states of residence of
                      all Offerees before introducing such Offerees to the
                      Company. The Finder shall not present the Offering nor the
                      Private Placement Memorandum to any potential Offeree
                      until such person has been reviewed by the Corporation and
                      approved as set out above.

                  (c) The Finder agrees to introduce the Company to Offerees
                      only in states in which the Finder has been advised by the
                      Company that offers and sales of Securities can be legally
                      made by the Company.

                  (d) The Finder shall perform its duties under this Agreement
                      in a manner consistent with the instructions of the
                      Company. Such performance shall include, if needed, the
                      delivery to each Offeree a current copy of the Private
                      Placement Memorandum, Subscription Agreement and any
                      Offering Questionnaire and/or similar documents prepared
                      by the Finder and the Company, as such documents may be
                      amended from time to time by the Company and delivered to
                      the Finder. The Finder shall consecutively number each
                      copy of the Private Placement Memorandum (which will
                      include the first letter of the Finder's name or other
                      identifying mark sufficient to designate an Offeree
                      introduced by the Finder); keep a log of when and to whom
                      each copy of the Private Placement Memorandum is given,
                      with the Private Placement Memorandum numbers; maintain a
                      copy of any written information the Finder obtains
                      regarding the suitability of each Offeree; and only use
                      the Private Placement Memorandum in introducing Offerees
                      to the Company. The Finder shall provide this log and all
                      such written information to the Company at any time and
                      promptly upon request of the Company at the termination of
                      this Agreement.

                  (e) The Finder shall not engage in any form of general
                      solicitation or advertising in performing its duties under
                      this Agreement. This prohibition includes, but is not
                      limited to, any mass mailing, any advertisement, article
                      or notice published in any magazine, newspaper or
                      newsletter and any seminar or meeting where the attendees
                      have been invited by any mass mailing, general
                      solicitation or advertising. The Finder shall not
                      introduce the Company to any investor that is not listed
                      in Exhibit A and with whom the Finder does not have a
                      pre-existing substantive relationship, and the Finder
                      shall not hold any seminar or meeting where any attendee
                      does not have a pre-existing relationship with the Finder.
                      The Finder shall not mention the Company, the Offering or
                      any information about its Securities under this Agreement
                      in any public medium, including any newspaper, on radio or
                      television or otherwise.

                  (f) Investors may be added to Exhibit A upon mutual consent of
                      the Company and Finder provided that the Finder shall, on
                      the basis of its prior relationship with the potential
                      Offeree, reasonably determine and believe that the
                      potential Offeree is sufficiently sophisticated and
                      knowledgeable in business and financial matters that the
                      potential Offeree is capable of evaluating the merits and
                      risks of an investment in the Securities.

                           Page 2 of Finder Agreement
<PAGE>

                  (g) The Finder is and will hereafter act as an independent
                      contractor and not as an employee of the Company and
                      nothing in this Agreement shall be interpreted or
                      construed to create any employment, partnership, joint
                      venture, or other relationship between the Finder and the
                      Company. The Finder will not hold itself out as having,
                      and will not state to any person that the Finder has, any
                      relationship with the Company other than as an independent
                      contractor. The Finder shall have no right or power to
                      find or create any liability or obligation for or in the
                      name of the Company or to sign any documents on behalf of
                      the Company.

         5.       Termination of Agreement. Either party may terminate this
                  Agreement by notifying the other party in writing upon a
                  material breach by that other party, unless such breach is
                  curable and is in fact cured within 15 days after such notice.
                  This Agreement will terminate upon completion or termination
                  of the Offering. The Company may terminate this Agreement
                  following ninety (90) days after the date hereof upon written
                  notice. Notwithstanding the foregoing, all provisions of this
                  Agreement other than section 1, 2 and 4 shall survive the
                  termination of this Agreement with respect to Offerees who the
                  Finder introduces to the Company prior to any termination with
                  respect to the Offering. The Finder shall be entitled to
                  compensation under section 3 based on investments made by such
                  Offerees prior to the termination of this Agreement or at any
                  time within one year thereafter.

         6.       Indemnification. The Company shall indemnify and defend the
                  Finder and the Finder's affiliates, directors, officers,
                  employees, agents, consultants, attorneys, accountants and
                  other representatives (each an "Indemnified Person" in this
                  subsection (a)) and shall hold each Indemnified Person
                  harmless, to the fullest extent permitted by law, from and
                  against any and all claims, liabilities, losses, damages and
                  expenses (including reasonable attorney's fees and costs), as
                  they are incurred, in connection with the Offering, resulting
                  from the Company's negligence, bad faith or willful misconduct
                  in connection with the Offering, any violation by the Company
                  (not caused by the Finder) of Federal or state securities laws
                  in connection with the Offering, or any breach by the Company
                  of this Agreement. In case any litigation or proceeding shall
                  be brought against any Indemnified Person under this section,
                  the Company shall be entitled to assume the defense of such
                  litigation or proceeding with counsel of the Company's choice
                  at its expense (in which case the Company shall not be
                  responsible for the fees and expenses of any separate counsel
                  retained by such

                  Indemnified Person, except in the limited circumstances
                  described below in this section); provided, however, that such
                  counsel shall be reasonably satisfactory to the Indemnified
                  Person. Notwithstanding the Company's election to assume the
                  defense of such litigation or proceeding (a) such Indemnified
                  Person shall have the right to employ separate counsel and to
                  participate in the defense of such litigation or proceeding,
                  and (b) the Company shall bear the reasonable fees, costs and
                  expenses of separate counsel if (but only if) the use of
                  counsel selected by the Company to represent such Indemnified
                  Person would present such counsel with a conflict of interest
                  under applicable laws or rules of professional conduct.

                           Page 3 of Finder Agreement
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         7.       Confidentiality of Offeree Information. The Company
                  acknowledges that the identity of the Offerees, and all
                  confidential information about Offerees received by the
                  Company from an Offeree or the Finder, is confidential
                  information of the Finder and may not be shared with any other
                  person without the consent of the Finder.

         8.       Notices. Any notice, consent, authorization or other
                  communication to be given hereunder shall be in writing and
                  shall be deemed duly given and received when delivered
                  personally, when transmitted by fax, three days after being
                  mailed by first class mail, or one day after being sent by a
                  nationally recognized overnight delivery service, charges and
                  postage prepaid, properly addressed to the party to receive
                  such notice, at the following address or fax number for such
                  party (or at such other address or fax number as shall
                  hereafter be specified by such party by like notice):

                  (a)      If to the Company, to:

                           Leonardo Berezowsky
                           Chief Financial Officer
                           Constellation 3D, Inc.
                           230 Park Ave., Suite 453
                           New York, NY  10169
                           Telephone Number: (212) 983-1107
                           Fax Number:       (212) 983-1108
                           E-mail:           mutlbc@attglobal.net

                  (b)      If to the Finder, to:

                           Mr. Gary J. Shemano
                           The Shemano Group, Inc.
                           601 California Street, Suite 1850
                           San Francisco, Calif. 94108
                           Telephone Number: (415) 274-3200
                           Fax Number:       (415) 274-3238
                           E-mail:           gshemano@shemano.com

         9.       Company to Control Transactions. The prices, terms and
                  conditions under which the Company shall offer or sell any
                  Securities shall be determined by the Company in its sole
                  discretion. The Company shall have the authority to control
                  all discussions and negotiations regarding any proposed or
                  actual offering or sale of Securities. Nothing in this
                  Agreement shall obligate the Company to actually offer or sell
                  any Securities or consummate any transaction. The Company may
                  terminate any negotiations or discussions at any time and
                  reserves the right not to proceed with any offering or sale of
                  Securities. Compensation pursuant to this Agreement shall only
                  be paid to the Finder in the event of an actual Closing of the
                  Offering to an Offeree introduced by Finder.

                           Page 4 of Finder Agreement

<PAGE>

         10.      Confidentiality of Company Information. The Finder, and its
                  officers, directors, employees and agents shall maintain in
                  strict confidence and not copy, disclose or transfer to any
                  other party (1) all confidential business and financial
                  information regarding the Company and its affiliates,
                  including without limitation, projections, business plans,
                  marketing plans, product development plans, pricing, costs,
                  customer, vendor and supplier lists and identification,
                  channels of distribution, and terms of identification of
                  proposed or actual contracts and (2) all confidential
                  technology of the Company. In furtherance of the foregoing,
                  the Finder agrees that it shall not transfer, transmit,
                  distribute, download or communicate, in any electronic,
                  digitized or other form or media, any of the confidential
                  technology of the Company. The foregoing is not intended to
                  preclude the Finder from utilizing, subject to the terms and
                  conditions of this Agreement, the Private Placement Memorandum
                  and/or other documents prepared or approved by the Company for
                  use in the Offering.

                  All communications regarding any possible transactions,
                  requests for due diligence or other information, requests for
                  facility tours, product demonstrations or management meetings,
                  will be submitted or directed to Leonard Berezowsky, CFO, and
                  the Finder shall not contact any employees, customers,
                  suppliers or contractors of the Company or its affiliates
                  without express permission. Nothing in this Agreement shall
                  constitute a grant of authority to the Finder or any
                  representatives thereof to remove, examine or copy any
                  particular document or types of information regarding the
                  Company, and the Company shall retain control over the
                  particular documents or items to be provided, examined or
                  copied. If the Offering is not consummated, or if at any time
                  the Company so requests, the Finder and its representatives
                  will return to the Company all copies of information regarding
                  the Company in their possession.

                  The provisions of this Section shall survive any termination
                  of this Agreement.

         11.      Press Releases, Etc. The Company shall control all press
                  releases or announcements to the public, the media or the
                  industry regarding any offering, placement, transaction or
                  business relationship involving the Company or its affiliates.
                  Except for communication to Offerees in furtherance of this
                  Agreement and the provision of the Private Placement
                  Memorandum, the Finder will not disclose the fact that
                  discussions or negotiations are taking place concerning a
                  possible transaction involving the Company, or the status or
                  terms and conditions thereof.

         12.      Due Diligence: Neither the Company, nor any of its directors,
                  officers or shareholders, should, in any way rely on the
                  Finder to perform any due diligence with respect to the
                  Company. It is expressly understood and agreed that to the
                  extent due diligence is conducted, it will be conducted by the
                  investors.

         13.      Expenses, Etc. The compensation described in Section 3 of this
                  Agreement shall be the Finder's sole compensation for all of
                  its services and efforts to the Company and its affiliates, in
                  connection with any offering or placement of Securities. The
                  Finder shall pay all of its own costs and expenses in carrying
                  out its activities hereunder. The Finder shall be exclusively
                  responsible for any compensation, fees, commissions or
                  payments of its employees, agents representatives, co-finders

                           Page 5 of Finder Agreement

<PAGE>
                  or other persons or entities utilized by it in connection with
                  its activities on behalf of the Company, and the Finder will
                  indemnify and hold harmless the Company and its affiliates
                  from the claims of any such persons or entities.

         14.      Compliance with Laws. The Finder represents and warrants that
                  it is a registered broker/dealer with the SEC, NASD and the
                  State of California and has and shall maintain such
                  registrations as well as all other necessary licenses and
                  permits to conduct its activities under this Agreement, which
                  it shall conduct in compliance with applicable federal and
                  state laws relating to a private placement under Regulation D
                  of the 1933 Act. The Finder represents that it is not a party
                  to any other agreement which would conflict with or interfere
                  with the terms and conditions of this Agreement.

         15.      Assignment Prohibited. No assignment of this Agreement shall
                  be made without the prior written consent of the other party.

         16.      Amendments. Neither party may amend this Agreement or rescind
                  any of its existing provisions without the prior written
                  consent of the other party.

         17.      Governing Law. This Agreement shall be deemed to have been
                  made in the State of California and shall be construed, and
                  the rights and liabilities determined, in accordance with the
                  law of the State of California, without regard to the
                  conflicts of laws rules of such jurisdiction.

         18.      Waiver. Neither Finder's nor the Company's failure to insist
                  at any time upon strict compliance with this Agreement or any
                  of its terms nor any continued course of such conduct on their
                  part shall constitute or be considered a waiver by Finder or
                  the Company of any of their respective rights or privileges
                  under this Agreement.

         19.      Severability. If any provision herein is or should become
                  inconsistent with any present or future law, rule or
                  regulation of any sovereign government or regulatory body
                  having jurisdiction over the subject matter of this Agreement,
                  such provision shall be deemed to be rescinded or modified in
                  accordance with such law, rule or regulation. In all other
                  respects, this Agreement shall continue to remain in full
                  force and effect.

         20.      Counterparts. This Agreement may be executed in one or more
                  counterparts, each of which shall be deemed an original, and
                  will become effective and binding upon the parties at such
                  time as all of the signatories hereto have signed a
                  counterpart of this Agreement. All counterparts so executed
                  shall constitute one Agreement binding on all of the parties
                  hereto, notwithstanding that all of the parties are not
                  signatory to the same counterpart. Each of the parties hereto
                  shall sign a sufficient number of counterparts so that each
                  party will receive a fully executed original of this
                  Agreement.

                           Page 6 of Finder Agreement
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21.               Entire Agreement. This Agreement and all other agreements and
                  documents referred herein constitutes the entire agreement
                  between the Company and the Finder. No other agreements,
                  covenants, representations or warranties, express or implied,
                  oral or written, have been made by any party hereto to any
                  other party concerning the subject matter hereof. All prior
                  and contemporaneous conversations, negotiations, possible and
                  alleged agreements, representations, covenants and warranties
                  concerning the subject matter hereof are merged herein. This
                  is an integrated Agreement.

         22.      Arbitration. The parties agree that this Agreement and all
                  controversies which may arise between the Finder and the
                  Company, whether occurring prior, on or subsequent to the date
                  of this Agreement, will be determined by arbitration. The
                  parties understand that:

                  (1) Arbitration is final and binding on the parties.

                  (2) The parties are waiving their right to seek remedies in
                      court, including the right to a jury trial.

                  (3) Pre-arbitration discovery is generally more limited than
                      and different from court proceedings.

                  (4) The arbitrators' award is not required to include factual
                      findings or legal reasoning and any party's right to
                      appeal or to seek modification or rulings by the
                      arbitrators is strictly limited.

                  (5) The panel of arbitrators will typically include a minority
                      of arbitrators who were or are affiliated with the
                      securities industry.

         The parties agree that any arbitration under this Agreement will be
held at the facilities of and before an Arbitration Panel appointed by the
National Association of Securities Dealers, Inc. ("NASD"), or if the NASD
refuses to accept jurisdiction, then before JAMS/ENDISPUTE in San Francisco,
California. The award of the arbitrators, or of the majority of them, will be
final, and judgments upon the award may be entered in any court, state or
federal, having jurisdiction. The parties hereby submit themselves and their
personal representatives to the jurisdiction of any state or federal court for
the purpose of such arbitration and entering such judgment.

         Any forbearance to enforce an agreement to arbitrate will not
constitute a waiver of any rights under this Agreement except to the extent
stated herein.

                           Page 7 of Finder Agreement

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         THIS AGREEMENT IS GOVERNED BY A PRE-DISPUTE ARBITRATION CLAUSE
CONTAINED IN PARAGRAPH 22 OF THIS AGREEMENT

                               The Shemano Group, Inc. (the "Finder")

                               By:  /s/ Gary J. Shemano
                                    ---------------------------------
                                    Gary J. Shemano

                               Title:   President

                               Constellation 3D, Inc. (the "Company")

                               By: /s/ Leonardo Berezowsky
                                   ----------------------------------
                                   Leonardo Berezowsky

                               Title:   Chief Financial Officer

                                    Exhibit A

To be provided.

                           Page 8 of Finder Agreement

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