Document:

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                                                                  EXECUTION COPY

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER REGULATION D PROMULGATED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "ACT") OR OTHERWISE. THIS WARRANT SHALL NOT
CONSTITUTE AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY THE SECURITIES
IN ANY JURISDICTION IN WHICH SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL. THE
SECURITIES ARE "RESTRICTED" AND MAY NOT BE RESOLD OR TRANSFERRED EXCEPT AS
PERMITTED UNDER THE ACT PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.

                              AMENDED AND RESTATED
                          COMMON STOCK PURCHASE WARRANT

No. W2

              To Purchase Shares of $.001 Par Value Common Stock of

                             CONSTELLATION 3D, INC.

         THIS CERTIFIES that, for value received, Halifax Fund, L.P. (the
"Investor") is entitled, upon the terms and subject to the conditions
hereinafter set forth, at any time on or after the date hereof and on or prior
to 5:00 p.m. New York City Time on August 23, 2005 (the "Termination Date"), but
not thereafter, to subscribe for and purchase from CONSTELLATION 3D, INC., a
Florida corporation (the "Company"), 393,968 shares of Common Stock of the
Company (the "Warrant Shares"). The "Exercise Price" is $14.6656. The Exercise
Price and the number of shares for which the Warrant is exercisable shall be
subject to adjustment as provided herein. This Warrant is being issued in
connection with the Common Stock Investment Agreement dated August 23, 2000 (the
"Agreement") entered into by the Company and the Investor, as amended on
September 19, 2000.

1.       Title of Warrant. Prior to the expiration hereof and subject to
         compliance with applicable laws, this Warrant and all rights hereunder
         are transferable, in whole or in respect of the right to purchase any
         part of the 393,968 Warrant Shares, at the office or agency of the
         Company by the holder hereof in person or by duly authorized attorney,
         upon surrender of this Warrant together with (a) the Assignment Form
         annexed hereto properly endorsed, and (b) any other documentation
         reasonably necessary to satisfy the Company that such transfer is in
         compliance with all applicable securities laws.

2.       Authorization of Shares. The Company covenants that all shares of
         Common Stock which may be issued upon the exercise of rights
         represented by this Warrant will, upon exercise of the rights
         represented by this Warrant and payment of the Exercise Price as set
         forth herein will be duly authorized, validly issued, fully paid and
         nonassessable and free from all taxes, liens and charges in respect of
         the issue thereof (other than taxes in respect of any transfer
         occurring contemporaneously with such issue or otherwise specified
         herein).
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3.       Exercise of Warrant.

(a)      Exercise of the purchase rights represented by this Warrant may be made
         at any time or times, in whole or in part before 5:00 p.m. New York
         City time on the Termination Date, by the surrender on any business day
         of this Warrant and the Notice of Exercise annexed hereto duly
         completed and executed, at the principal office of the Company (or such
         other office or agency of the Company as it may designate by notice in
         writing to the registered holder hereof at the address of such holder
         appearing on the books of the Company), and upon payment of the full
         Exercise Price of the shares thereby purchased; whereupon the holder of
         this Warrant shall be entitled to receive a certificate for the number
         of shares of Common Stock so purchased. Certificates for shares
         purchased hereunder shall be delivered to the holder hereof within
         three (3) Trading Days after the date on which this Warrant shall have
         been exercised as aforesaid. Payment of the Exercise Price of the
         shares shall be by certified check or cashier's check or by wire
         transfer (of same day funds) to an account designated by the Company in
         an amount equal to the Exercise Price multiplied by the number of
         shares being purchased.

(b)      Alternatively, and only in the event the Warrant Shares are not subject
         to Effective Registration, the Warrant holder may exercise this
         Warrant, in whole or in part in a "cashless" or "net-issue" exercise by
         delivering to the offices of the Company or any transfer agent for the
         Common Stock this Warrant, together with a Notice of Exercise
         specifying the number of Warrant Shares to be delivered to such Warrant
         holder ("Deliverable Shares") and the number of Warrant Shares with
         respect to which this Warrant is being surrendered in payment of the
         aggregate Exercise Price for the Deliverable Shares ("Surrendered
         Shares").

         The number of Deliverable Shares shall be calculated as follows:
<TABLE>
<CAPTION>
<S>                                                          <C>
         # of Deliverable Shares = # of Surrendered Shares x Fair Market Value of Common Stock less Exercise Price
                                                            -----------------------------------------------------
                                                                  Fair Market Value of Common Stock
</TABLE>

         "Fair Market Value" shall have the meaning specified in Section 12(c).

         In the event that the Warrant is not exercised in full, the number of
         Warrant Shares shall be reduced by the number of such Warrant Shares
         for which this Warrant is exercised and/or surrendered, and the
         Company, at its expense, shall within three (3) Trading Days issue and
         deliver to or upon the order of the Warrant holder a new Warrant of
         like tenor in the name of the Warrant holder or as the Warrant holder
         (upon payment by the Warrant holder of any applicable transfer taxes)
         may request, reflecting such adjusted Warrant Shares.

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         All exercises will be deemed to occur as of the date of the Notice of
         Exercise, and certificates for shares of Common Stock purchased
         hereunder shall be delivered to the holder hereof within three (3)
         Trading Days after the date on which this Warrant shall have been
         exercised as aforesaid. The Warrant holder may withdraw its Notice of
         Exercise under Section 3(a) or 3(b) at any time thereafter if the
         Company fails to timely deliver the applicable certificates to the
         Warrant holder as provided in this Agreement.

(c)      In lieu of delivering physical certificates representing the Common
         Stock issuable upon exercise, provided the Company's transfer agent is
         participating in the Depository Trust Company ("DTC") Fast Automated
         Securities Transfer ("FAST") program, upon request of the Warrant
         Holder, the Company shall use its best efforts to cause its transfer
         agent to electronically transmit the Common Stock issuable upon
         exercise to the Warrant holder by crediting the account of Warrant
         holder's prime broker with DTC through its Deposit Withdrawal Agent
         Commission ("DWAC") system. The time periods for delivery described in
         the immediately preceding paragraph shall apply to the electronic
         transmittals described herein.

         The term "Trading Day" means (x) if the Common Stock is listed on the
         New York Stock Exchange or the American Stock Exchange, a day on which
         there is trading on such stock exchange, or (y) if the Common Stock is
         not listed on either of such stock exchanges but sale prices of the
         Common Stock are reported on an automated quotation system, a day on
         which trading is reported on the principal automated quotation system
         on which sales of the Common Stock are reported, or (z) if the
         foregoing provisions are inapplicable, a day on which quotations are
         reported by National Quotation Bureau Incorporated.

4.       No Fractional Shares or Scrip. No fractional shares or scrip
         representing fractional shares shall be issued upon the exercise of
         this Warrant.

5.       Charges, Taxes and Expenses. Issuance of certificates for shares of
         Common Stock upon the exercise of this Warrant shall be made without
         charge to the holder hereof for any issue or transfer tax or other
         incidental expense in respect of the issuance of such certificate, all
         of which taxes and expenses shall be paid by the Company, and such
         certificates shall be issued in the name of the holder of this Warrant
         or in such name or names as may be directed by the holder of this
         Warrant; provided, however, that in the event certificates for shares
         of Common Stock are to be issued in a name other than the name of the
         holder of this Warrant, this Warrant when surrendered for exercise
         shall be accompanied by the Assignment Form attached hereto duly
         executed by the holder hereof; and provided further, that the Company
         shall not be required to pay any tax or taxes which may be payable in
         respect of any transfer involved in the issuance of any Warrant
         certificates or any certificates for the Warrant Shares other than the
         issuance of a Warrant Certificate to the Investor in connection with
         the Investor's surrender of a Warrant Certificate upon the exercise of
         less than all of the Warrants evidenced thereby, and the Company shall
         not be required to issue or deliver such certificates unless or until
         the person or persons requesting the issuance thereof shall have paid
         to the Company the amount of such tax or shall have established to the
         satisfaction of the Company that such tax has been paid.

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6.       Closing of Books. The Company will at no time close its shareholder
         books or records in any manner which interferes with the timely
         exercise of this Warrant.

7.       No Rights as Shareholder until Exercise. Subject to Section 12 of this
         Warrant and the provisions of any other written agreement between the
         Company and the Investor, the Investor shall not be entitled to vote or
         receive dividends or be deemed the holder of Warrant Shares or any
         other securities of the Company that may at any time be issuable on the
         exercise hereof for any purpose, nor shall anything contained herein be
         construed to confer upon the Investor, as such, any of the rights of a
         stockholder of the Company or any right to vote for the election of
         directors or upon any matter submitted to stockholders at any meeting
         thereof, or to give or withhold consent to any corporate action
         (whether upon any recapitalization, issuance of stock, reclassification
         of stock, change of par value, or change of stock to no par value,
         consolidation, merger, conveyance or otherwise) or to receive notice of
         meetings, or to receive dividends or subscription rights or otherwise
         until the Warrant shall have been exercised as provided herein.
         However, at the time of the exercise of this Warrant pursuant to
         Section 3 hereof, the Warrant Shares so purchased hereunder shall be
         deemed to be issued to such holder as the record owner of such shares
         as of the close of business on the date on which this Warrant shall
         have been exercised.

8.       Assignment and Transfer of Warrant. This Warrant may be assigned in
         whole or in part by the surrender of this Warrant and the Assignment
         Form annexed hereto duly executed at the office of the Company (or such
         other office or agency of the Company as it may designate by notice in
         writing to the registered holder hereof at the address of such holder
         appearing on the books of the Company); provided, however, that this
         Warrant may not be resold or otherwise transferred except (i) in a
         transaction registered under the Securities Act of 1933, as amended
         (the "Act"), or (ii) in a transaction pursuant to an exemption, if
         available, from registration under the Act and whereby, if requested by
         the Company, an opinion of counsel reasonably satisfactory to the
         Company is obtained by the holder of this Warrant to the effect that
         the transaction is so exempt.

9.       Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the
         Company of evidence reasonably satisfactory to it of the loss, theft,
         destruction or mutilation of any Warrant or stock certificate
         representing the Warrant Shares, and in case of loss, theft or
         destruction, of indemnity reasonably satisfactory to it, and upon
         reimbursement to the Company of all reasonable expenses incidental
         thereto. Upon surrender and cancellation of such Warrant or stock
         certificate, if mutilated, the Company will make and deliver a new
         Warrant or stock certificate of like tenor and dated as of such
         cancellation, in lieu of this Warrant or stock certificate.

10.      Saturdays, Sundays, Holidays, etc. If the last or appointed day for the
         taking of any action or the expiration of any right required or granted
         herein shall be a Saturday, Sunday or a legal holiday, then such action
         may be taken or such right may be exercised on the next succeeding day
         not a legal holiday.

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11.      Effect of Certain Events. If at any time after the date hereof there
         shall be a merger or consolidation of the Company with or into, or a
         transfer of all or substantially all of the assets of the Company to,
         another entity (collectively, a "Sale or Merger Transaction"), the
         holder of this Warrant shall have the right thereafter to purchase, by
         exercise of this Warrant and payment of the aggregate Exercise Price in
         effect immediately prior to such action, the kind and amount of shares
         and other securities and property which it would have owned or have
         been entitled to receive after the happening of such transaction had
         this Warrant been exercised immediately prior thereto, subject to
         further adjustment as provided in Section 12. Notwithstanding the
         above, a Sale or Merger Transaction shall not be deemed to occur in the
         event the Company is the acquiring entity in connection with an
         acquisition by the Company.

12.      Adjustments of Exercise Price and Number of Warrant Shares.

         The number of and kind of securities purchasable upon exercise of this
         Warrant and the Exercise Price shall be subject to adjustment from time
         to time as follows:

(a)      Subdivisions, Combinations and other Issuances. If the Company shall at
         any time after the date hereof but prior to the expiration of this
         Warrant subdivide its outstanding securities as to which purchase
         rights under this Warrant exist, by split-up, spin-off, or otherwise,
         or combine its outstanding securities as to which purchase rights under
         this Warrant exist, the number of Warrant Shares as to which this
         Warrant is exercisable as of the date of such subdivision, split-up,
         spin-off or combination shall forthwith be proportionately increased in
         the case of a subdivision, or proportionately decreased in the case of
         a combination. Appropriate proportional adjustments (decrease in the
         case of subdivision, increase in the case of combination) shall also be
         made to the Exercise Price payable per share, so that the aggregate
         Exercise Price payable for the total number of Warrant Shares
         purchasable under this Warrant as of such date shall remain the same as
         it would have been before such subdivision or combination.

(b)      Stock Dividend. If at any time after the date hereof the Company
         declares a dividend or other distribution on Common Stock payable in
         Common Stock or other securities or rights convertible into Common
         Stock ("Common Stock Equivalents") without payment of any consideration
         by holders of Common Stock for the additional shares of Common Stock or
         the Common Stock Equivalents (including the additional shares of Common
         Stock issuable upon exercise or conversion thereof), then the number of
         shares of Common Stock for which this Warrant may be exercised shall be
         increased as of the record date (or the date of such dividend
         distribution if no record date is set) for determining which holders of
         Common Stock shall be entitled to receive such dividends, in proportion
         to the increase in the number of outstanding shares (and shares of
         Common Stock issuable upon conversion of all such securities
         convertible into Common Stock) of Common Stock as a result of such
         dividend, and the Exercise Price shall be proportionately reduced so
         that the aggregate Exercise Price for all the Warrant Shares issuable
         hereunder immediately after the record date (or on the date of such
         distribution, if applicable), for such dividend shall equal the
         aggregate Exercise Price so payable immediately before such record date
         (or on the date of such distribution, if applicable).

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(c)      Other Distributions. If at any time after the date hereof the Company
         distributes to holders of its Common Stock, other than as part of its
         dissolution, liquidation or the winding up of its affairs, any shares
         of its capital stock, any evidence of indebtedness or any of its assets
         (other than Common Stock), then the number of Warrant Shares for which
         this Warrant is exercisable shall be increased to equal: (i) the number
         of Warrant Shares for which this Warrant is exercisable immediately
         prior to such event, (ii) multiplied by a fraction, (A) the numerator
         of which shall be the Fair Market Value (as defined below) per share of
         Common Stock on the record date for the dividend or distribution, and
         (B) the denominator of which shall be the Fair Market Value price per
         share of Common Stock on the record date for the dividend or
         distribution minus the amount allocable to one share of Common Stock of
         the value (as jointly determined in good faith by the Board of
         Directors of the Company and the Warrant holder) of any and all such
         evidences of indebtedness, shares of capital stock, other securities or
         property, so distributed. Additionally, the Exercise Price shall be
         reduced to equal: (i) the Exercise Price in effect immediately before
         the occurrence of any event (ii) multiplied by a fraction, (A) the
         numerator of which is the number of Warrant Shares for which this
         Warrant is exercisable immediately before the adjustment, and (B) the
         denominator of which is the number of Warrant Shares for which this
         Warrant is exercisable immediately after the adjustment. In lieu of
         such changes to the number of Warrant Shares for which this Warrant is
         exercisable and the Exercise Price, the Investor (as to itself only)
         may elect, in its sole discretion, to participate in such distribution
         and receive the shares of capital stock, evidence of indebtedness or
         other assets on an "as exercised" basis as if the Warrant had been
         exercised in full for Warrant Shares as of the record date for such
         distribution, without regard to the restrictions contained in Section
         16.

         For purposes of this Warrant, "Fair Market Value" shall equal the
         average closing trading price of the Common Stock on the Principal
         Market for the 10 Trading Days preceding the date of determination or,
         if the Common Stock is not listed or admitted to trading on any
         Principal Market, the average of the closing bid and asked prices on
         the over-the-counter market as furnished by any New York Stock Exchange
         member firm reasonably selected from time to time by the Company for
         that purpose and reasonably acceptable to the Warrant holder, or, if
         the Common Stock is not listed or admitted to trading on the Principal
         Market or traded over-the-counter and the average price cannot be
         determined as contemplated above, the Fair Market Value of the Common
         Stock shall be as reasonably determined in good faith by the Company's
         Board of Directors with the concurrence of the Warrant holder.

(d)      Merger, etc. The Company will not merge or consolidate with or into any
         other corporation, or sell or otherwise transfer its property, assets
         and business substantially as an entirety to another corporation,
         unless the corporation resulting from such merger or consolidation (if
         not the Company), or such transferee corporation, as the case may be,
         shall expressly assume in writing the due and punctual performance and
         observance of each and every covenant and condition of this Warrant to
         be performed and observed by the Company.

                                       6
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(e)      Reclassification, etc. If at any time after the date hereof there shall
         be a reorganization or reclassification of the securities as to which
         purchase rights under this Warrant exist into the same or a different
         number of securities of any other class or classes, then the Warrant
         holder shall thereafter be entitled to receive upon exercise of this
         Warrant, during the period specified herein and upon payment of the
         Exercise Price then in effect, the number of shares or other securities
         or property resulting from such reorganization or reclassification,
         which would have been received by the Warrant holder for the shares of
         stock subject to this Warrant had this Warrant at such time been
         exercised.

(f)      Exercise Price Adjustment. In the event that the Company issues or
         sells any shares of Common Stock or securities which are convertible
         into or exchangeable for its Common Stock or any convertible
         securities, or any warrants or other rights to subscribe for or to
         purchase or any options for the purchase of its Common Stock or any
         such convertible securities (other than (A) shares or options issued or
         which may be issued pursuant to (i) the Company's current or future
         employee or director option plans or shares issued upon exercise of
         options, warrants, rights or convertible notes or debentures
         outstanding on the date of the Agreement and listed in the Company's
         most recent periodic report filed under the Exchange Act, (ii)
         arrangements with the Investor, or (iii) acquisitions of other entities
         by the Company, or (B) sales of Common Stock (in one or more tranches
         to the same or different purchasers) with a fair market value, in the
         aggregate, of less than $500,000 at the time they are sold) at an
         effective exercise price per share ("Effective Price") which is less
         than the Exercise Price then in effect, then the Exercise Price in
         effect immediately prior to such issue or sale shall be reduced
         effective concurrently with such issue or sale to an amount determined
         by multiplying the Exercise Price then in effect by a fraction, (x) the
         numerator of which shall be the sum of (1) the number of shares of
         Common Stock outstanding immediately prior to such issue or sale, plus
         (2) the number of shares of Common Stock which the aggregate
         consideration received by the Company for such additional shares would
         purchase at the greater of such Fair Market Value or Exercise Price
         then in effect; and (y) the denominator of which shall be the number of
         shares of Common Stock of the Company outstanding immediately after
         such issue or sale.

         For the purposes of the foregoing adjustment, in the case of the
         issuance of any convertible securities, warrants, options or other
         rights to subscribe for or to purchase or exchange for, shares of
         Common Stock ("Convertible Securities"), the maximum number of shares
         of Common Stock issuable upon exercise, exchange or conversion of such
         Convertible Securities shall be deemed to be outstanding, provided that
         no further adjustment shall be made upon the actual issuance of Common
         Stock upon exercise, exchange or conversion of such Convertible
         Securities.

         The number of shares which may be purchased hereunder shall be
         increased proportionately to any reduction in Exercise Price pursuant
         to this paragraph 12(f), so that after such adjustments the aggregate
         Exercise Price payable hereunder for the increased number of shares
         shall be the same as the aggregate Exercise Price in effect just prior
         to such adjustments.

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         In the event of any such issuance for a consideration which is less
         than such fair market value and also less than the Exercise Price then
         in effect, than there shall be only one such adjustment by reason of
         such issuance, such adjustment to be that which results in the greatest
         reduction of the Exercise Price computed as aforesaid.

(g)      For the purposes of the foregoing adjustment, in the case of the
         issuance of any convertible securities, warrants, options or other
         rights to subscribe for or to purchase or exchange for, shares of
         Common Stock ("Convertible Securities"), the maximum number of shares
         of Common Stock issuable upon exercise, exchange or conversion of such
         Convertible Securities shall be deemed to be outstanding, provided that
         no further adjustment shall be made upon the actual issuance of Common
         Stock upon exercise, exchange or conversion of such Convertible
         Securities.

         The number of shares which may be purchased hereunder shall be
         increased proportionately to any reduction in Exercise Price pursuant
         to this paragraph 12(f), so that after such adjustments the aggregate
         Exercise Price payable hereunder for the increased number of shares
         shall be the same as the aggregate Exercise Price in effect just prior
         to such adjustments.

13.      Voluntary Adjustment by the Company. The Company may at its option, at
         any time during the term of this Warrant, reduce but not increase the
         then current Exercise Price to any amount and for any period of time
         deemed appropriate by the Board of Directors of the Company.

14.      Notice of Adjustment. Whenever the number of Warrant Shares or number
         or kind of securities or other property purchasable upon the exercise
         of this Warrant or the Exercise Price is adjusted, the Company shall
         promptly mail to the holder of this Warrant a notice setting forth the
         number of Warrant Shares (and other securities or property) purchasable
         upon the exercise of this Warrant and the Exercise Price of such
         Warrant Shares after such adjustment and setting forth a brief
         statement of the facts requiring such adjustment.

15.      Authorized Shares. The Company covenants that during the period the
         Warrant is outstanding and exercisable, it will reserve from its
         authorized and unissued Common Stock a sufficient number of shares to
         provide for the issuance of the Warrant Shares upon the exercise of any
         purchase rights under this Warrant. The Company further covenants that
         its issuance of this Warrant shall constitute full authority to its
         officers who are charged with the duty of executing stock certificates
         to execute and issue the necessary certificates for the Warrant Shares
         upon the exercise of the purchase rights under this Warrant. The
         Company will take all such reasonable action as may be necessary to
         assure that such Warrant Shares may be issued as provided herein
         without violation of any applicable law or regulation, or of any
         requirements of any domestic securities exchange or market upon which
         the Common Stock may be listed.

                                       8
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16.      9.99% Limitation.

(a)      Notwithstanding anything to the contrary contained herein, the number
         of shares of Common Stock that may be acquired by the holder upon
         exercise pursuant to the terms hereof shall not exceed a number that,
         when added to the total number of shares of Common Stock deemed
         beneficially owned by such holder (other than by virtue of the
         ownership of securities or rights to acquire securities (including the
         Warrant) that have limitations on the holder's right to convert,
         exercise or purchase similar to the limitation set forth herein),
         together with all shares of Common Stock deemed beneficially owned
         (other than by virtue of the ownership of securities or rights to
         acquire securities that have limitations on the right to convert,
         exercise or purchase similar to the limitation set forth herein) by the
         holder's "affiliates" (as defined Rule 144 of the Act) ("Aggregation
         Parties") that would be aggregated for purposes of determining whether
         a group under Section 13(d) of the Securities Exchange Act of 1934, as
         amended, exists, would exceed 9.99% of the total issued and outstanding
         shares of the Company's Common Stock (the "Restricted Ownership
         Percentage"). Each holder shall have the right (w) at any time and from
         time to time to reduce its Restricted Ownership Percentage immediately
         upon notice to the Company and (x) at any time and from time to time,
         to increase its Restricted Ownership Percentage immediately in the
         event of the announcement as pending or planned of an event of:

         (i)      any consolidation or merger of the Company with or into any
                  other corporation or other entity or person (whether or not
                  the Company is the surviving corporation), or any other
                  corporate reorganization or transaction or series of related
                  transactions in which in excess of 50% of the Company's voting
                  power is transferred through a merger, consolidation, tender
                  offer or similar transaction,

         (ii)     any person (as defined in Section 13(d) of the Exchange Act),
                  together with its affiliates and associates (as such terms are
                  defined in Rule 405 under the 1933 Act), beneficially owns or
                  is deemed to beneficially own (as described in Rule 13d-3
                  under the Exchange Act without regard to the 60-day exercise
                  period) in excess of 50% of the Company's voting power,

         (iii)    there is a replacement of more than one-half of the members of
                  the Company's Board of Directors which is not approved by
                  those individuals who are members of the Company's Board of
                  Directors on the date thereof, in one or a series of related
                  transactions, or

         (iv)     a sale or transfer of all or substantially all of the assets
                  of the Company, determined on a consolidated basis.

(b)      The holder covenants at all times on each day (each such day being
         referred to as a "Covenant Day") as follows: During the balance of such
         Covenant Day and the succeeding sixty-one (61) days (the balance of
         such Covenant Day and the succeeding 61 days being referred to as the
         "Covenant Period") such holder will not acquire shares of Common Stock
         pursuant to any right (including the exercise of the Warrant) existing
         at the commencement of the Covenant Period to the extent the number of
         shares so acquired by such holder and its Aggregation Parties (ignoring
         all dispositions) would exceed:

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         (x)      the Restricted Ownership Percentage of the total number of
                  shares of Common Stock outstanding at the commencement of the
                  Covenant Period,

         minus
         -----
         (y)      the number of shares of Common Stock owned by such holder and
                  its Aggregation Parties at the commencement
                  of the Covenant Period.

                  A new and independent covenant will be deemed to be given by
         the holder as of each moment of each Covenant Day. No covenant will
         terminate, diminish or modify any other covenant. The holder agrees to
         comply with each such covenant. This Section 16 controls in the case of
         any conflict with any other provision of the Transaction Documents.

                  The Company's obligation to issue shares of Common Stock which
         would exceed such limits referred to in this Section 16 shall be
         suspended to the extent necessary until such time, if any, as shares of
         Common Stock may be issued in compliance with such restrictions.

17.      Compliance with Securities Laws.

(a)      The holder hereof acknowledges that the Warrant Shares acquired upon
         the exercise of this Warrant, if not registered (or if no exemption
         from registration exists), will have restrictions upon resale imposed
         by state and federal securities laws. Each certificate representing the
         Warrant Shares issued to the holder upon exercise (if not registered or
         if no exemption from registration exists) will bear the following
         legend:

         THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
         COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
         AND, ACCORDINGLY, MAY NOT BE OFFERED, TRANSFERRED, SOLD OR OTHERWISE
         DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
         UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR
         IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
         SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS,
         BASED ON AN OPINION LETTER OF COUNSEL SATISFACTORY TO THE COMPANY OR A
         NO-ACTION LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION.

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(b)      Without limiting the Investor's right to transfer, assign or otherwise
         convey the Warrant or Warrant Shares in compliance with all applicable
         securities laws, the Investor, by acceptance hereof, acknowledges that
         this Warrant and the Warrant Shares to be issued upon exercise hereof
         are being acquired solely for the Investor's own account and not as a
         nominee for any other party, and that the Investor will not offer, sell
         or otherwise dispose of this Warrant or any Warrant Shares to be issued
         upon exercise hereof except under circumstances that will not result in
         a violation of applicable federal and state securities laws.

(c)      Neither this Warrant nor any share of Common Stock issued upon exercise
         of this Warrant may be offered for sale or sold, or otherwise
         transferred or sold in any transaction which would constitute a sale
         thereof within the meaning of the Act, unless (i) such security has
         been registered for sale under the Act and registered or qualified
         under applicable state securities laws relating to the offer an sale of
         securities, or (ii) exemptions from the registration requirements of
         the Act and the registration or qualification requirements of all such
         state securities laws are available and the Company shall have received
         an opinion of counsel that the proposed sale or other disposition of
         such securities may be effected without registration under the Act,
         such counsel and such opinion to be satisfactory to the Company.

(d)      The Investor recognizes that investing in the Warrant and the Warrant
         Shares involves a high degree of risk, and the Investor is in a
         financial position to hold the Warrant and the Warrant Shares
         indefinitely and is able to bear the economic risk and withstand a
         complete loss of its investment in the Warrant and the Warrant Shares.
         The Investor is a sophisticated investor and is capable of evaluating
         the merits and risks of investing in the Company. The Investor has had
         an opportunity to discuss the Company's business, management and
         financial affairs with the Company's management, has been given full
         and complete access to information concerning the Company, and has
         utilized such access to its satisfaction for the purpose of obtaining
         information or verifying information and have had the opportunity to
         inspect the Company's operation. The Investor has had the opportunity
         to ask questions of, and receive answers from, the management of the
         Company (and any person acting on its behalf) concerning the Warrant
         and the Warrant Shares and the agreements and transactions contemplated
         hereby, and to obtain any additional information as the Investor may
         have requested in making its investment decision. The initial Investor
         in this Warrant is an "accredited investor", as defined by Regulation D
         promulgated under the Act.

18.      Miscellaneous.

(a)      Issue Date; Choice Of Law; Venue; Jurisdiction. THE PROVISIONS OF THIS
         WARRANT SHALL BE CONSTRUED AND SHALL BE GIVEN EFFECT IN ALL RESPECTS AS
         IF IT HAD BEEN ISSUED AND DELIVERED BY THE COMPANY ON THE DATE HEREOF.
         THIS WARRANT SHALL BE BINDING UPON ANY SUCCESSORS OR ASSIGNS OF THE
         COMPANY. THIS WARRANT WILL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH

                                       11
<PAGE>

         AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, EXCEPT FOR MATTERS
         ARISING UNDER THE ACT, WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF
         LAW. EACH OF THE PARTIES CONSENTS TO THE EXCLUSIVE JURISDICTION OF THE
         U.S. DISTRICT COURT SITTING IN THE STATE OF CITY OF NEW YORK IN THE
         STATE OF NEW YORK IN CONNECTION WITH ANY DISPUTE ARISING UNDER THIS
         WARRANT AND HEREBY WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ANY
         OBJECTION, INCLUDING ANY OBJECTION BASED ON FORUM NON CONVENIENS, TO
         THE BRINGING OF ANY SUCH PROCEEDING IN SUCH JURISDICTION. EACH PARTY
         HEREBY AGREES THAT IF THE OTHER PARTY TO THIS WARRANT OBTAINS A
         JUDGMENT AGAINST IT IN SUCH A PROCEEDING, THE PARTY WHICH OBTAINED SUCH
         JUDGMENT MAY ENFORCE SAME BY SUMMARY JUDGMENT IN THE COURTS OF ANY
         COUNTRY HAVING JURISDICTION OVER THE PARTY AGAINST WHOM SUCH JUDGMENT
         WAS OBTAINED, AND EACH PARTY HEREBY WAIVES ANY DEFENSES AVAILABLE TO IT
         UNDER LOCAL LAW AND AGREES TO THE ENFORCEMENT OF SUCH A JUDGMENT. EACH
         PARTY TO THIS WARRANT IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS IN
         ANY SUCH PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR
         CERTIFIED MAIL, POSTAGE PREPAID, TO SUCH PARTY AT ITS ADDRESS IN
         ACCORDANCE WITH SECTION 18(C). NOTHING HEREIN SHALL AFFECT THE RIGHT OF
         ANY PARTY TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. EACH
         PARTY WAIVES ITS RIGHT TO A TRIAL BY JURY.

(b)      Modification and Waiver. This Warrant and any provisions hereof may be
         changed, waived, discharged or terminated only by an instrument in
         writing signed by the party against which enforcement of the same is
         sought. Any amendment effected in accordance with this paragraph shall
         be binding upon the investor, each future holder of this Warrant and
         the Company. No waivers of, or exceptions to, any term, condition or
         provision of this Warrant, in any one or more instances, shall be
         deemed to be, or construed as, a further or continuing waiver of any
         such term, condition or provision.

(c)      Notices. Any notice, request or other document required or permitted to
         be given or delivered to the Investor or future holders hereof or the
         Company shall be personally delivered or shall be sent by certified or
         registered mail, postage prepaid, to the Investor or each such holder
         at its address as shown on the books of the Company or to the Company
         at the address set forth in the Agreement. All notices under this
         Warrant shall be deemed to have been given when received.

         A party may from time to time change the address to which notices to it
         are to be delivered or mailed hereunder by notice in accordance with
         the provisions of this Section 18(c).

                                       12
<PAGE>

(d)      Severability. Whenever possible, each provision of this Warrant shall
         be interpreted in such manner as to be effective and valid under
         applicable law, but if any provision of this Warrant is held to be
         invalid, illegal or unenforceable in any respect under any applicable
         law or rule in any jurisdiction, such invalidity, illegality or
         unenforceability shall not affect the validity, legality or
         enforceability of any other provision of this Warrant in such
         jurisdiction or affect the validity, legality or enforceability of any
         provision in any other jurisdiction, but this Warrant shall be
         reformed, construed and enforced in such jurisdiction as if such
         invalid, illegal or unenforceable provision had never been contained
         herein.

(e)      No Impairment. The Company will not, by amendment of its Certificate of
         Incorporation or through any reorganization, transfer of assets,
         consolidation, merger, dissolution, issue or sale of securities or any
         other voluntary action, avoid or seek to avoid the observance or
         performance of any of the terms of this Warrant, but will at all times
         in good faith assist in the carrying out of all such terms and in the
         taking of all such action as may be necessary or appropriate in order
         to protect the rights of the Warrant holder against impairment. Without
         limiting the generality of the foregoing, the Company (a) will not
         increase the par value of any Warrant Shares above the amount payable
         therefor on such exercise, and (b) will take all such action as may be
         reasonably necessary or appropriate in order that the Company may
         validly and legally issue fully paid and nonassessable Warrant Shares
         on the exercise of this Warrant.

                                       13
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Warrant to be executed
by its officers thereunto duly authorized.

Dated: September 19, 2000

                                          CONSTELLATION 3D, INC.

                                          By: /s/ Eugene Levich
                                              ----------------------------------
                                              Name: Eugene Levich
                                              Title: President

Agreed and Accepted
this 19th day of September, 2000

HALIFAX FUND, L.P.

By: /s/ Robert L. Chender
   ------------------------
     Name:
     Title:

                                       14
<PAGE>

                               NOTICE OF EXERCISE

To:      CONSTELLATION 3D, INC.

(1)      The undersigned hereby elects:

         (A) to purchase ________ shares of Common Stock of Constellation 3D,
Inc. pursuant to the terms of the attached Warrant, and tenders herewith payment
of the Exercise Price in full, together with all applicable transfer taxes, if
any.

         (B) in a "cashless" or "net-issue exercise" for, and to purchase
thereunder, ______ shares of Common Stock, and herewith makes payment therefor
with _______ Surrendered Shares.

(2) Please issue a certificate or certificates representing said shares of
Common Stock in the name of the undersigned or in such other name as is
specified below:

                          -------------------------------
                                     (Name)

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

                          -------------------------------
                                   (Address)

(3) Please issue a new Warrant for the unexercised portion of the attached
Warrant in the name of the undersigned or in such other name as is specified
below:

                           Other Name:
                                      -------------------

                                            -----------------------------------
                                                         (Name)

--------------------                        -----------------------------------
(Date)                                                 (Signature)

                                            -----------------------------------
                                                        (Address)

<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

         FOR VALUE RECEIVED, the foregoing Warrant of Constellation 3D, Inc. and
all rights evidenced thereby are hereby assigned to

                                               whose address is
-----------------------------------------------
                                                               .
---------------------------------------------------------------

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

                                                    Dated:                    ,
                                                          --------------------

                           Holder's Signature:
                                              ---------------------------------

                           Holder's Address:
                                            -----------------------------------

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

Signature Guaranteed:
                     --------------------------------------------------------

NOTE: The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatsoever, and must be guaranteed by a bank or trust company. Officers
of corporations and those acting in an fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing
Warrant.<PAGE>

                                                                  EXECUTION COPY

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER REGULATION D PROMULGATED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "ACT") OR OTHERWISE. THIS OPTIONAL WARRANT SHALL
NOT CONSTITUTE AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY THE
SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER OR SOLICITATION WOULD BE
UNLAWFUL. THE SECURITIES ARE "RESTRICTED" AND MAY NOT BE RESOLD OR TRANSFERRED
EXCEPT AS PERMITTED UNDER THE ACT PURSUANT TO REGISTRATION OR EXEMPTION
THEREFROM.

                              AMENDED AND RESTATED
                          COMMON STOCK OPTIONAL WARRANT

No. OW2

                          To Purchase Optional Units of

                             CONSTELLATION 3D, INC.

         THIS CERTIFIES that, for value received, Halifax Fund, L.P. (the
"Investor") is entitled, upon the terms and subject to the conditions
hereinafter set forth, at any time on or after the date hereof and on or prior
to 5:00 p.m. New York City Time on August 23, 2001 (the "Termination Date"), but
not thereafter, to subscribe for and purchase from CONSTELLATION 3D, INC., a
Florida corporation (the "Company"), 492,458 units consisting of one (1) share
of Common Stock of the Company (the "Optional Warrant Shares") and a Common
Stock Adjustment Warrant ("Adjustment Warrant") with respect to such share in
the form attached as Annex B to the Purchase Agreement (as defined below)
(together, an "Optional Unit"). The "Exercise Price" is $10.15313 per Optional
Unit. The Exercise Price and the number of Optional Units for which this
Optional Warrant is exercisable shall be subject to adjustment as provided
herein. This Optional Warrant is being issued in connection with the Common
Stock Investment Agreement dated August 23, 2000 (the "Purchase Agreement")
entered into by the Company and the Investor, as amended on September 19, 2000.

1.       Title of Optional Warrant. Prior to the expiration hereof and subject
         to compliance with applicable laws, this Optional Warrant and all
         rights hereunder are transferable, in whole or in respect of the right
         to purchase any part of the 492,458 Optional Units, at the office or
         agency of the Company by the holder hereof in person or by duly
         authorized attorney, upon surrender of this Optional Warrant together
         with (a) the Assignment Form annexed hereto properly endorsed, and (b)
         any other documentation reasonably necessary to satisfy the Company
         that such transfer is in compliance with all applicable securities
         laws.

2.       Authorization of Shares. The Company covenants that all shares of
         Common Stock which may be issued upon the exercise of rights
         represented by this Optional Warrant, upon exercise of the rights

<PAGE>

         represented by this Optional Warrant and payment of the Exercise Price
         as set forth herein, will be duly authorized, validly issued, fully
         paid and nonassessable and free from all taxes, liens and charges in
         respect of the issue thereof (other than taxes in respect of any
         transfer occurring contemporaneously with such issue or otherwise
         specified herein).

3.       Exercise of Optional Warrant.

(a)      Exercise of the purchase rights represented by this Optional Warrant
         may be made at any time or times, in whole or in part before 5:00 p.m.
         New York City time on the Termination Date, by the surrender on any
         business day of this Optional Warrant and the Notice of Exercise
         annexed hereto duly completed and executed, at the principal office of
         the Company (or such other office or agency of the Company as it may
         designate by notice in writing to the registered holder hereof at the
         address of such holder appearing on the books of the Company) and upon
         payment of the full Exercise Price of the shares thereby purchased;
         whereupon the holder of this Optional Warrant shall be entitled to
         receive a certificate for the number of shares of Common Stock, and an
         Adjustment Warrant with respect to such shares, comprising the Optional
         Units so purchased. Certificates for Optional Warrant Shares and
         Adjustment Warrants comprising Optional Units purchased hereunder shall
         be delivered to the holder hereof within three (3) Trading Days after
         the date on which this Optional Warrant shall have been exercised as
         aforesaid. Payment of the Exercise Price shall be by certified check or
         cashier's check or by wire transfer (of same day funds) to an account
         designated by the Company in an amount equal to the Exercise Price
         multiplied by the number of Optional Units being purchased.

         In the event that the Optional Warrant is not exercised in full, the
         number of Optional Units shall be reduced by the number of such
         Optional Units for which this Optional Warrant is exercised and/or
         surrendered, and the Company, at its expense, shall within three (3)
         Trading Days issue and deliver to or upon the order of the Optional
         Warrant holder a new Optional Warrant of like tenor in the name of the
         Optional Warrant holder or as the Optional Warrant holder (upon payment
         by the Optional Warrant holder of any applicable transfer taxes) may
         request, reflecting such adjusted number of Optional Units.

         All exercises will be deemed to occur as of the date of the Notice of
         Exercise, and certificates for Optional Warrant Shares, and Adjustment
         Warrants with respect to such shares, comprising the Optional Units
         purchased hereunder shall be delivered to the holder hereof within
         three (3) Trading Days after the date on which this Optional Warrant
         shall have been exercised as aforesaid. The Optional Warrant holder may
         withdraw its Notice of Exercise under Section 3(a) at any time
         thereafter if the Company fails to timely deliver the applicable
         certificates and Adjustment Warrants to the Optional Warrant holder as
         provided in this Agreement.

(b)      In lieu of delivering physical certificates representing the Optional
         Warrant Shares comprising the Optional Units issuable upon exercise,
         provided the Company's transfer agent is participating in the

                                       2
<PAGE>

         Depository Trust Company ("DTC") Fast Automated Securities Transfer
         ("FAST") program, upon request of the Optional Warrant holder, the
         Company shall use its best efforts to cause its transfer agent to
         electronically transmit such Optional Warrant Shares to the Optional
         Warrant holder by crediting the account of the Optional Warrant
         holder's prime broker with DTC through its Deposit Withdrawal Agent
         Commission ("DWAC") system. The time periods for delivery described in
         the immediately preceding paragraph shall apply to the electronic
         transmittals described herein.

         The term "Trading Day" means (x) if the Common Stock is listed on the
         New York Stock Exchange or the American Stock Exchange, a day on which
         there is trading on such stock exchange, or (y) if the Common Stock is
         not listed on either of such stock exchanges but sale prices of the
         Common Stock are reported on an automated quotation system, a day on
         which trading is reported on the principal automated quotation system
         on which sales of the Common Stock are reported, or (z) if the
         foregoing provisions are inapplicable, a day on which quotations are
         reported by National Quotation Bureau Incorporated.

4.       No Fractional Shares or Scrip. No fractional shares or scrip
         representing fractional shares shall be issued upon the exercise of
         this Optional Warrant.

5.       Charges, Taxes and Expenses. Issuance of certificates for Optional
         Warrant Shares and Adjustment Warrants with respect to such shares,
         comprising the Optional Units purchased upon the exercise of this
         Optional Warrant shall be made without charge to the holder hereof for
         any issue or transfer tax or other incidental expense in respect of the
         issuance of such certificate, all of which taxes and expenses shall be
         paid by the Company, and such certificates shall be issued in the name
         of the holder of this Optional Warrant or in such name or names as may
         be directed by the holder of this Optional Warrant; provided, however,
         that in the event certificates for shares of Common Stock are to be
         issued in a name other than the name of the holder of this Optional
         Warrant, this Optional Warrant when surrendered for exercise shall be
         accompanied by the Assignment Form attached hereto duly executed by the
         holder hereof; and provided further, that the Company shall not be
         required to pay any tax or taxes which may be payable in respect of any
         transfer involved in the issuance of any Optional Warrant certificates
         or any certificates for the Optional Warrant Shares other than the
         issuance of an Optional Warrant certificate to the Investor in
         connection with the Investor's surrender of a Optional Warrant
         certificate upon the exercise of less than all of the Optional Warrants
         evidenced thereby, and the Company shall not be required to issue or
         deliver such certificates unless or until the person or persons
         requesting the issuance thereof shall have paid to the Company the
         amount of such tax or shall have established to the satisfaction of the
         Company that such tax has been paid.

6.       Closing of Books. The Company will at no time close its shareholder
         books or records in any manner which interferes with the timely
         exercise of this Optional Warrant.

                                       3
<PAGE>

7.       No Rights as Shareholder until Exercise. Subject to Section 12 of this
         Optional Warrant and the provisions of any other written agreement
         between the Company and the Investor, the Investor shall not be
         entitled to vote or receive dividends or be deemed the holder of
         Optional Warrant Shares or any other securities of the Company that may
         at any time be issuable on the exercise hereof for any purpose, nor
         shall anything contained herein be construed to confer upon the
         Investor, as such, any of the rights of a stockholder of the Company or
         any right to vote for the election of directors or upon any matter
         submitted to stockholders at any meeting thereof, or to give or
         withhold consent to any corporate action (whether upon any
         recapitalization, issuance of stock, reclassification of stock, change
         of par value, or change of stock to no par value, consolidation,
         merger, conveyance or otherwise) or to receive notice of meetings, or
         to receive dividends or subscription rights or otherwise until the
         Optional Warrant shall have been exercised as provided herein. However,
         at the time of the exercise of this Optional Warrant pursuant to
         Section 3 hereof, the Optional Warrant Shares so purchased hereunder
         shall be deemed to be issued to such holder as the record owner of such
         shares as of the close of business on the date on which this Optional
         Warrant shall have been exercised.

8.       Assignment and Transfer of Optional Warrant. This Optional Warrant may
         be assigned in whole or in part by the surrender of this Optional
         Warrant and the Assignment Form annexed hereto duly executed at the
         office of the Company (or such other office or agency of the Company as
         it may designate by notice in writing to the registered holder hereof
         at the address of such holder appearing on the books of the Company);
         provided, however, that this Optional Warrant may not be resold or
         otherwise transferred except (i) in a transaction registered under the
         Securities Act of 1933, as amended (the "Act"), or (ii) in a
         transaction pursuant to an exemption, if available, from registration
         under the Act and whereby, if requested by the Company, an opinion of
         counsel reasonably satisfactory to the Company is obtained by the
         holder of this Optional Warrant to the effect that the transaction is
         so exempt.

9.       Loss, Theft, Destruction or Mutilation of Optional Warrant. Upon
         receipt by the Company of evidence reasonably satisfactory to it of the
         loss, theft, destruction or mutilation of any Optional Warrant,
         Adjustment Warrant or stock certificate representing the Optional
         Warrant Shares, and in case of loss, theft or destruction, of indemnity
         reasonably satisfactory to it, and upon reimbursement to the Company of
         all reasonable expenses incidental thereto. Upon surrender and
         cancellation of such Optional Warrant, Adjustment Warrant or stock
         certificate, if mutilated, the Company will make and deliver a new
         Optional Warrant, Adjustment Warrant or stock certificate of like tenor
         and dated as of such cancellation, in lieu of this Optional Warrant,
         Adjustment Warrant or stock certificate.

10.      Saturdays, Sundays, Holidays, etc. If the last or appointed day for the
         taking of any action or the expiration of any right required or granted
         herein shall be a Saturday, Sunday or a legal holiday, then such action
         may be taken or such right may be exercised on the next succeeding day
         not a legal holiday.

                                       4
<PAGE>

11.      Effect of Certain Events. If at any time after the date hereof there
         shall be a merger or consolidation of the Company with or into, or a
         transfer of all or substantially all of the assets of the Company to,
         another entity (collectively, a "Sale or Merger Transaction"), the
         holder of this Optional Warrant shall have the right thereafter to
         purchase, by exercise of this Optional Warrant and payment of the
         aggregate Exercise Price in effect immediately prior to such action,
         the kind and amount of cash, shares and other securities and property
         which it would have owned or have been entitled to receive after the
         happening of such transaction had this Optional Warrant been exercised
         immediately prior thereto, subject to further adjustment as provided in
         Section 12. Notwithstanding the above, a Sale or Merger Transaction
         shall not be deemed to occur in the event the Company is the acquiring
         entity in connection with an acquisition by the Company.

12.      Adjustments of Exercise Price and Number of Optional Units.

         The number of and kind of securities purchasable upon exercise of this
         Optional Warrant and the Exercise Price shall be subject to adjustment
         from time to time as follows:

(a)      Subdivisions, Combinations and other Issuances. If the Company shall at
         any time after the date hereof but prior to the expiration of this
         Optional Warrant subdivide its outstanding securities as to which
         purchase rights (either directly or indirectly) under this Optional
         Warrant exist, by split-up, spin-off, or otherwise, or combine its
         outstanding securities as to which purchase rights (either directly or
         indirectly) under this Optional Warrant exist, the number of Optional
         Units as to which this Optional Warrant is exercisable as of the date
         of such subdivision, split-up, spin-off or combination shall forthwith
         be proportionately increased in the case of a subdivision, or
         proportionately decreased in the case of a combination. Appropriate
         proportional adjustments (decrease in the case of subdivision, increase
         in the case of combination) shall also be made to the Exercise Price
         payable per share, so that the aggregate Exercise Price payable for the
         total number of Optional Units purchasable under this Optional Warrant
         as of such date shall remain the same as it would have been before such
         subdivision or combination.

(b)      Stock Dividend. If at any time after the date hereof the Company
         declares a dividend or other distribution on Common Stock payable in
         Common Stock or other securities or rights convertible into Common
         Stock ("Common Stock Equivalents") without payment of any consideration
         by holders of Common Stock for the additional shares of Common Stock or
         the Common Stock Equivalents (including the additional shares of Common
         Stock issuable upon exercise or conversion thereof), then the number of
         Optional Units for which this Optional Warrant may be exercised shall
         be increased as of the record date (or the date of such dividend
         distribution if no record date is set) for determining which holders of
         Common Stock shall be entitled to receive such dividends, in proportion
         to the increase in the number of outstanding shares (and shares of
         Common Stock issuable upon conversion of all such securities
         convertible into Common Stock) of Common Stock as a result of such
         dividend, and the Exercise Price shall be proportionately reduced so
         that the aggregate Exercise Price for all the Optional Units issuable
         hereunder immediately after the record date (or on the date of such
         distribution, if applicable), for such dividend shall equal the
         aggregate Exercise Price so payable immediately before such record date
         (or on the date of such distribution, if applicable).

                                       5
<PAGE>

(c)      Other Distributions. If at any time after the date hereof the Company
         distributes to holders of its Common Stock, other than as part of its
         dissolution, liquidation or the winding up of its affairs, any shares
         of its capital stock, any evidence of indebtedness or any of its assets
         (other than Common Stock), then the number of Optional Units for which
         this Optional Warrant is exercisable shall be increased to equal: (i)
         the number of Optional Units for which this Optional Warrant is
         exercisable immediately prior to such event, (ii) multiplied by a
         fraction, (A) the numerator of which shall be the Fair Market Value (as
         defined below) per share of Common Stock on the record date for the
         dividend or distribution, and (B) the denominator of which shall be the
         Fair Market Value price per share of Common Stock on the record date
         for the dividend or distribution minus the amount allocable to one
         share of Common Stock of the value (as jointly determined in good faith
         by the Board of Directors of the Company and the Optional Warrant
         holder) of any and all such evidences of indebtedness, shares of
         capital stock, other securities or property, so distributed.
         Additionally, the Exercise Price shall be reduced to equal: (i) the
         Exercise Price in effect immediately before the occurrence of such
         event (ii) multiplied by a fraction, (A) the numerator of which is the
         number of Optional Units for which this Optional Warrant is exercisable
         immediately before the adjustment, and (B) the denominator of which is
         the number of Optional Units for which this Optional Warrant is
         exercisable immediately after the adjustment. In lieu of such changes
         to the number of Optional Warrant Shares for which this Optional
         Warrant is exercisable and the Exercise Price, the Investor (as to
         itself only) may elect, in its sole discretion, to participate in such
         distribution and receive the shares of capital stock, evidence of
         indebtedness or other assets on an "as exercised" basis as if the
         Optional Warrant had been exercised in full for Optional Warrant Shares
         as of the record date for such distribution, without regard to the
         restrictions contained in Section 16.

         For purposes of this Optional Warrant, "Fair Market Value" shall equal
         the 10 Trading Day average closing trading price of the Common Stock on
         the Principal Market for the 10 Trading Days preceding the date of
         determination or, if the Common Stock is not listed or admitted to
         trading on any Principal Market, the average of the closing bid and
         asked prices on the over-the-counter market as furnished by any New
         York Stock Exchange member firm reasonably selected from time to time
         by the Company for that purpose and reasonably acceptable to the
         Optional Warrant holder, or, if the Common Stock is not listed or
         admitted to trading on the Principal Market or traded over-the-counter
         and the average price cannot be determined as contemplated above, the
         Fair Market Value of the Common Stock shall be as reasonably determined
         in good faith by the Company's Board of Directors with the concurrence
         of the Optional Warrant holder.

(d)      Merger, etc. The Company will not merge or consolidate with or into any
         other corporation, or sell or otherwise transfer its property, assets
         and business substantially as an entirety to another corporation,
         unless the corporation resulting from such merger or consolidation (if
         not the Company), or such transferee corporation, as the case may be,
         shall expressly assume in writing the due and punctual performance and
         observance of each and every covenant and condition of this Optional
         Warrant to be performed and observed by the Company.

                                       6
<PAGE>

(e)      Reclassification, etc. If at any time after the date hereof there shall
         be a reorganization or reclassification of the securities as to which
         purchase rights (either directly or indirectly) under this Optional
         Warrant exist into the same or a different number of securities of any
         other class or classes, then the Optional Warrant holder shall
         thereafter be entitled to receive upon exercise of this Optional
         Warrant, during the period specified herein and upon payment of the
         Exercise Price then in effect, the number of shares or other securities
         or property resulting from such reorganization or reclassification,
         which would have been received by the Optional Warrant holder for the
         shares of stock and Adjustment Warrants subject to this Optional
         Warrant had this Optional Warrant at such time been exercised.

(f)      Exercise Price Adjustment. In the event that the Company issues or
         sells any Common Stock or securities which are convertible into or
         exchangeable for its Common Stock or any convertible securities, or any
         warrants or other rights to subscribe for or to purchase or any options
         for the purchase of its Common Stock or any such convertible securities
         (other than (A) shares or options issued or which may be issued
         pursuant to (i) the Company's current or future employee or director
         option plans or shares issued upon exercise of options, warrants or
         rights outstanding on the date of the Agreement and listed in the
         Company's most recent periodic report filed under the Exchange Act,
         (ii) arrangements with the Investor, or (iii) acquisitions of other
         entities by the Company, or (B) sales of Common Stock (in one more
         tranches to the same or different purchasers) that, in the aggregate,
         have a fair market value of less than $500,000 at the time they are
         sold) at an effective exercise price per share ("Effective Price")
         which is (A) less than the Exercise Price then in effect, or (B) at a
         discount from the Fair Market Value (as described in Section 12(c)
         above) of the Common Stock on the Trading Day next preceding such issue
         or sale greater than 10%, then the Exercise Price in effect immediately
         prior to such issue or sale shall be reduced effective concurrently
         with such issue or sale to an amount equal to the lesser of (x) such
         Effective Price, and (y) the product of (A) the Exercise Price divided
         by .9 and (B) 1.00 minus the discount from Fair Market Value (expressed
         as a fraction).

         For the purposes of the foregoing adjustment, in the case of the
         issuance of any convertible securities, warrants, options or other
         rights to subscribe for or to purchase or exchange for, shares of
         Common Stock ("Convertible Securities"), the maximum number of shares
         of Common Stock issuable upon exercise, exchange or conversion of such
         Convertible Securities shall be deemed to be outstanding, provided that
         no further adjustment shall be made upon the actual issuance of Common
         Stock upon exercise, exchange or conversion of such Convertible
         Securities.

         The number of Optional Units which may be purchased hereunder shall be
         increased proportionately to any reduction in Exercise Price pursuant
         to this paragraph 12(f), so that after such adjustments the aggregate
         Exercise Price payable hereunder for the increased number of Optional
         Units shall be the same as the aggregate Exercise Price in effect just
         prior to such adjustments.

                                       7
<PAGE>

13.      Voluntary Adjustment by the Company. The Company may at its option, at
         any time during the term of this Optional Warrant, reduce but not
         increase the then current Exercise Price to any amount and for any
         period of time deemed appropriate by the Board of Directors of the
         Company.

14.      Notice of Adjustment. Whenever the number of Optional Units or number
         or kind of securities or other property purchasable upon the exercise
         of this Optional Warrant or the Exercise Price is adjusted, the Company
         shall promptly mail to the holder of this Optional Warrant a notice
         setting forth the number of Optional Units (and other securities or
         property) purchasable upon the exercise of this Optional Warrant and
         the Exercise Price of such Optional Units after such adjustment and
         setting forth a brief statement of the facts requiring such adjustment.

15.      Authorized Shares. The Company covenants that during the period the
         Optional Warrant is outstanding and exercisable, it will reserve from
         its authorized and unissued Common Stock a sufficient number of shares
         to provide for the issuance of the Optional Warrant Shares upon the
         exercise of any purchase rights under this Optional Warrant. The
         Company further covenants that its issuance of this Optional Warrant
         shall constitute full authority to its officers who are charged with
         the duty of executing stock certificates to execute and issue the
         necessary certificates for the Optional Warrant Shares upon the
         exercise of the purchase rights under this Optional Warrant. The
         Company will take all such reasonable action as may be necessary to
         assure that such Optional Warrant Shares may be issued as provided
         herein without violation of any applicable law or regulation, or of any
         requirements of any domestic securities exchange or market upon which
         the Common Stock may be listed.

16.      9.99% Limitation.

(a)      Notwithstanding anything to the contrary contained herein, the number
         of shares of Common Stock that may be acquired by the holder upon
         exercise pursuant to the terms hereof shall not exceed a number that,
         when added to the total number of shares of Common Stock deemed
         beneficially owned by such holder (other than by virtue of the
         ownership of securities or rights to acquire securities (including the
         Optional Warrant) that have limitations on the holder's right to
         convert, exercise or purchase similar to the limitation set forth
         herein), together with all shares of Common Stock deemed beneficially
         owned (other than by virtue of the ownership of securities or rights to
         acquire securities that have limitations on the right to convert,
         exercise or purchase similar to the limitation set forth herein) by the
         holder's "affiliates" (as defined Rule 144 of the Act) ("Aggregation
         Parties") that would be aggregated for purposes of determining whether
         a group under Section 13(d) of the Securities Exchange Act of 1934, as
         amended, exists, would exceed 9.99% of the total issued and outstanding
         shares of the Company's Common Stock (the "Restricted Ownership
         Percentage"). Each holder shall have the right (w) at any time and from
         time to time to reduce its Restricted Ownership Percentage immediately

                                       8
<PAGE>

         upon notice to the Company and (x) at any time and from time to time,
         to increase its Restricted Ownership Percentage immediately in the
         event of the announcement as pending or planned of an event of:

         (i)     any consolidation or merger of the Company with or into any
                 other corporation or other entity or person (whether or not the
                 Company is the surviving corporation), or any other corporate
                 reorganization or transaction or series of related transactions
                 in which in excess of 50% of the Company's voting power is
                 transferred through a merger, consolidation, tender offer or
                 similar transaction,

         (ii)    any person (as defined in Section 13(d) of the Exchange Act),
                 together with its affiliates and associates (as such terms are
                 defined in Rule 405 under the 1933 Act), beneficially owns or
                 is deemed to beneficially own (as described in Rule 13d-3 under
                 the Exchange Act without regard to the 60-day exercise period)
                 in excess of 50% of the Company's voting power,

         (iii)   there is a replacement of more than one-half of the members of
                 the Company's Board of Directors which is not approved by those
                 individuals who are members of the Company's Board of Directors
                 on the date thereof, in one or a series of related
                 transactions, or

         (iv)    a sale or transfer of all or substantially all of the assets of
                 the Company, determined on a consolidated basis.

(b)      The holder covenants at all times on each day (each such day being
         referred to as a "Covenant Day") as follows: During the balance of such
         Covenant Day and the succeeding sixty-one (61) days (the balance of
         such Covenant Day and the succeeding 61 days being referred to as the
         "Covenant Period") such holder will not acquire shares of Common Stock
         pursuant to any right (including the exercise of the Optional Warrant)
         existing at the commencement of the Covenant Period to the extent the
         number of shares so acquired by such holder and its Aggregation Parties
         (ignoring all dispositions) would exceed:

         (x)     the Restricted Ownership Percentage of the total number of
                 shares of Common Stock outstanding at the commencement of the
                 Covenant Period,

         minus
         -----

         (y)     the number of shares of Common Stock owned by such holder and
                 its Aggregation Parties at the commencement of the Covenant
                 Period.

                  A new and independent covenant will be deemed to be given by
         the holder as of each moment of each Covenant Day. No covenant will
         terminate, diminish or modify any other covenant. The holder agrees to
         comply with each such covenant. This Section 16 controls in the case of
         any conflict with any other provision of the Transaction Documents.

                                       9
<PAGE>

                  The Company's obligation to issue shares of Common Stock which
         would exceed such limits referred to in this Section 16 shall be
         suspended to the extent necessary until such time, if any, as shares of
         Common Stock may be issued in compliance with such restrictions.

17.      Compliance with Securities Laws.

(a)      The holder hereof acknowledges that the Optional Warrant Shares and the
         Adjustment Warrants acquired upon the exercise of this Optional
         Warrant, if not registered (or if no exemption from registration
         exists), will have restrictions upon resale imposed by state and
         federal securities laws. Each certificate representing the Optional
         Warrant Shares and each Adjustment Warrant issued to the holder upon
         exercise (if not registered or if no exemption from registration
         exists) will bear the following legend:

         THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
         COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
         AND, ACCORDINGLY, MAY NOT BE OFFERED, TRANSFERRED, SOLD OR OTHERWISE
         DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
         UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR
         IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
         SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS,
         BASED ON AN OPINION LETTER OF COUNSEL SATISFACTORY TO THE COMPANY OR A
         NO-ACTION LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION.

(b)      Without limiting the Investor's right to transfer, assign or otherwise
         convey the Optional Warrant, Adjustment Warrant or Optional Warrant
         Shares in compliance with all applicable securities laws, the Investor,
         by acceptance hereof, acknowledges that this Optional Warrant, the
         Adjustment Warrant and the Optional Warrant Shares to be issued upon
         exercise hereof are being acquired solely for the Investor's own
         account and not as a nominee for any other party, and that the Investor
         will not offer, sell or otherwise dispose of such securities except
         under circumstances that will not result in a violation of applicable
         federal and state securities laws.

(c)      Neither this Optional Warrant nor any share of Common Stock or
         Adjustment Warrant issued upon exercise of this Optional Warrant may be
         offered for sale or sold, or otherwise transferred or sold in any
         transaction which would constitute a sale thereof within the meaning of
         the Act, unless (i) such security has been registered for sale under
         the Act and registered or qualified under applicable state securities
         laws relating to the offer an sale of securities, or (ii) exemptions

                                       10
<PAGE>

         from the registration requirements of the Act and the registration or
         qualification requirements of all such state securities laws are
         available and the Company shall have received an opinion of counsel
         that the proposed sale or other disposition of such securities may be
         effected without registration under the Act, such counsel and such
         opinion to be satisfactory to the Company.

(d)      The Investor recognizes that investing in the Optional Warrant, the
         Adjustment Warrant and the Optional Warrant Shares involves a high
         degree of risk, and the Investor is in a financial position to hold
         these securities indefinitely and is able to bear the economic risk and
         withstand a complete loss of its investment therein. The Investor is a
         sophisticated investor and is capable of evaluating the merits and
         risks of investing in the Company. The Investor has had an opportunity
         to discuss the Company's business, management and financial affairs
         with the Company's management, has been given full and complete access
         to information concerning the Company, and has utilized such access to
         its satisfaction for the purpose of obtaining information or verifying
         information and have had the opportunity to inspect the Company's
         operation. The Investor has had the opportunity to ask questions of,
         and receive answers from, the management of the Company (and any person
         acting on its behalf) concerning the Optional Warrant, Adjustment
         Warrant and the Optional Warrant Shares and the agreements and
         transactions contemplated hereby, and to obtain any additional
         information as the Investor may have requested in making its investment
         decision. The initial Investor in this Optional Warrant is an
         "accredited investor", as defined by Regulation D promulgated under the
         Act.

18.      Miscellaneous.

(a)      Issue Date; Choice Of Law; Venue; Jurisdiction. THE PROVISIONS OF THIS
         OPTIONAL WARRANT SHALL BE CONSTRUED AND SHALL BE GIVEN EFFECT IN ALL
         RESPECTS AS IF IT HAD BEEN ISSUED AND DELIVERED BY THE COMPANY ON THE
         DATE HEREOF. THIS WARRANT SHALL BE BINDING UPON ANY SUCCESSORS OR
         ASSIGNS OF THE COMPANY. THIS OPTIONAL WARRANT WILL BE CONSTRUED AND
         ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF
         NEW YORK, EXCEPT FOR MATTERS ARISING UNDER THE ACT, WITHOUT REFERENCE
         TO PRINCIPLES OF CONFLICTS OF LAW. EACH OF THE PARTIES CONSENTS TO THE
         EXCLUSIVE JURISDICTION OF THE U.S. DISTRICT COURT SITTING IN THE STATE
         OF CITY OF NEW YORK IN THE STATE OF NEW YORK IN CONNECTION WITH ANY
         DISPUTE ARISING UNDER THIS OPTIONAL WARRANT AND HEREBY WAIVES, TO THE
         MAXIMUM EXTENT PERMITTED BY LAW, ANY OBJECTION, INCLUDING ANY OBJECTION
         BASED ON FORUM NON CONVENIENS, TO THE BRINGING OF ANY SUCH PROCEEDING
         IN SUCH JURISDICTION. EACH PARTY HEREBY AGREES THAT IF THE OTHER PARTY
         TO THIS OPTIONAL WARRANT OBTAINS A JUDGMENT AGAINST IT IN SUCH A
         PROCEEDING, THE PARTY WHICH OBTAINED SUCH JUDGMENT MAY ENFORCE SAME BY
         SUMMARY JUDGMENT IN THE COURTS OF ANY COUNTRY HAVING JURISDICTION OVER
         THE PARTY AGAINST WHOM SUCH JUDGMENT WAS OBTAINED, AND EACH PARTY
         HEREBY WAIVES ANY DEFENSES AVAILABLE TO IT UNDER LOCAL LAW AND AGREES
         TO THE ENFORCEMENT OF SUCH A JUDGMENT. EACH PARTY TO THIS OPTIONAL
         WARRANT IRREVOCABLY CONSENTS TO THE SERVICE OF

                                       11
<PAGE>

         PROCESS IN ANY SUCH PROCEEDING BY THE MAILING OF COPIES THEREOF BY
         REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO SUCH PARTY AT ITS
         ADDRESS IN ACCORDANCE WITH SECTION 18(C). NOTHING HEREIN SHALL AFFECT
         THE RIGHT OF ANY PARTY TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED
         BY LAW. EACH PARTY WAIVES ITS RIGHT TO A TRIAL BY JURY.

(b)      Modification and Waiver. This Optional Warrant and any provisions
         hereof may be changed, waived, discharged or terminated only by an
         instrument in writing signed by the party against which enforcement of
         the same is sought. Any amendment effected in accordance with this
         paragraph shall be binding upon the Investor, each future holder of
         this Optional Warrant and the Company. No waivers of, or exceptions to,
         any term, condition or provision of this Optional Warrant, in any one
         or more instances, shall be deemed to be, or construed as, a further or
         continuing waiver of any such term, condition or provision.

(c)      Notices. Any notice, request or other document required or permitted to
         be given or delivered to the Investor or future holders hereof or the
         Company shall be personally delivered or shall be sent by certified or
         registered mail, postage prepaid, to the Investor or each such holder
         at its address as shown on the books of the Company or to the Company
         at the address set forth in the Agreement. All notices under this
         Optional Warrant shall be deemed to have been given when received.

         A party may from time to time change the address to which notices to it
         are to be delivered or mailed hereunder by notice in accordance with
         the provisions of this Section 18(c).

(d)      Severability. Whenever possible, each provision of this Optional
         Warrant shall be interpreted in such manner as to be effective and
         valid under applicable law, but if any provision of this Optional
         Warrant is held to be invalid, illegal or unenforceable in any respect
         under any applicable law or rule in any jurisdiction, such invalidity,
         illegality or unenforceability shall not affect the validity, legality
         or enforceability of any other provision of this Optional Warrant in
         such jurisdiction or affect the validity, legality or enforceability of
         any provision in any other jurisdiction, but this Optional Warrant
         shall be reformed, construed and enforced in such jurisdiction as if
         such invalid, illegal or unenforceable provision had never been
         contained herein.

(e)      No Impairment. The Company will not, by amendment of its Certificate of
         Incorporation or through any reorganization, transfer of assets,
         consolidation, merger, dissolution, issue or sale of securities or any
         other voluntary action, avoid or seek to avoid the observance or

                                       12

<PAGE>

         performance of any of the terms of this Optional Warrant, but will at
         all times in good faith assist in the carrying out of all such terms
         and in the taking of all such action as may be necessary or appropriate
         in order to protect the rights of the Optional Warrant holder against
         impairment. Without limiting the generality of the foregoing, the
         Company (a) will not increase the par value of any Optional Warrant
         Shares above the amount payable therefor on such exercise, and (b) will
         take all such action as may be reasonably necessary or appropriate in
         order that the Company may validly and legally issue fully paid and
         nonassessable Optional Warrant Shares on the exercise of this Optional
         Warrant.

                                       13

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Optional Warrant to be
executed by its officers thereunto duly authorized.

Dated: September 19, 2000

                                        CONSTELLATION 3D, INC.

                                        By: /s/ Eugene Levich
                                            -------------------------------
                                            Name:    Eugene Levich
                                            Title:   President
Agreed and Accepted
this 19th day of September, 2000

HALIFAX FUND, L.P.

By: /s/ Robert L. Chender
   ------------------------
   Name:
   Title:

                                       14

<PAGE>

                               NOTICE OF EXERCISE
                               ------------------

To:   CONSTELLATION 3D, INC.

(1) The undersigned hereby elects to purchase ________ Optional Units consisting
of ______shares of Common Stock of Constellation 3D, Inc., and Adjustment
Warrants with respect to such shares, pursuant to the terms of the attached
Optional Warrant, and tenders herewith payment of the Exercise Price in full,
together with all applicable transfer taxes, if any.

(2) Please issue a certificate or certificates representing said shares of
Common Stock and an Adjustment Warrant with respect to such shares in the name
of the undersigned or in such other name as is specified below:

                         -------------------------------
                                     (Name)

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

                         -------------------------------
                                    (Address)

(3) Please issue a new Optional Warrant for the unexercised portion of the
attached Optional Warrant in the name of the undersigned or in such other name
as is specified below:

                        Other Name: ____________________

                                             -----------------------------------
                                                            (Name)

--------------------                         -----------------------------------
(Date)                                                    (Signature)

                                             -----------------------------------
                                                           (Address)

<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

         FOR VALUE RECEIVED, the foregoing Optional Warrant of Constellation 3D,
Inc. and all rights evidenced thereby are hereby assigned to

___________________________________________________________ whose address is

_______________________________________________________________________________.

________________________________________________________________________________

                                                       Dated:  ______________,

                         Holder's Signature:____________________________________

                         Holder's Address:  ____________________________________

                                            ____________________________________

Signature Guaranteed:  ___________________________________________

NOTE: The signature to this Assignment Form must correspond with the name as it
appears on the face of the Optional Warrant, without alteration or enlargement
or any change whatsoever, and must be guaranteed by a bank or trust company.
Officers of corporations and those acting in an fiduciary or other
representative capacity should file proper evidence of authority to assign the
foregoing Optional Warrant.

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