Document:

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                                                                EXHIBIT 99.20

                                                                 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.

                          COMMON STOCK OPTIONAL WARRANT

No. OW1

                          To Purchase Optional Units of

                             CONSTELLATION 3D, INC.

         THIS CERTIFIES that, for value received, Hershkovitz Jacqueline (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 September 12, 2001 (the "Termination Date"),
but not thereafter, to subscribe for and purchase from CONSTELLATION 3D, INC., a
Florida corporation (the "Company"), 7,387 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 September 12, 2000 (the "Purchase Agreement") entered into by the Company
and the Investor.

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 7,387 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
         represented by this Optional Warrant and payment of the Exercise Price
         as set forth herein, will be duly authorized, validly issued, fully
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         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 five (5)
         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 five
         (5) 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
         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

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         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.

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

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         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.

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 exercise of this Optional Warrant and payment of the aggregate

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         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).

(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

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         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.

         This clause will not hold for shares distributed under stock option
         plans, rewards for services or property, investment or other type of
         financing, mergers or other type of commercial agreements that involve
         issuance of shares

         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. In case the Company will 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, the Company will try to achieve that such transferee or
         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

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         the Company. In case the Company cannot achieve such a commitment then
         the holder will be entitled to immediately exercise this Optional
         Warrant as per clause 11 above.

(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 or
         subcontractor or consultant 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 merge with such other
         entity, 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 or (C) issued to
         strategic partners or investment banks, or shares issued in the context
         of a financing package from bank entities) at an effective exercise
         price per share ("Effective Price") which is (1) less than the Exercise
         Price then in effect, or (2) at a discount greater than 10% 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, 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

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         Units 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 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. Void

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

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         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
         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.

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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 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

                                       10
<PAGE>

         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
         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.

                    Rest of this page intentionally left bank

                                       11
<PAGE>

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

Dated: September 12, 2000

                                              CONSTELLATION 3D, INC.

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

Agreed and Accepted
this12 day of September, 2000

HERSHKOVITZ JACQUELINE

By:  /s/ Hershkovitz Jacqueline
     ---------------------------
     Name:
     Title:

                                       12
<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.<PAGE>

                       COMMON STOCK INVESTMENT- TERM SHEET

THIS TERMS SHEET is made as of August 17, 2000, by and between TCO Investment
Inc. (hereinafter "The Investor") and Constellation 3D Inc. (hereinafter "C3D").

WHEREAS THE INVESTOR intends to invest $ 250,00 in C3D under the terms in this
Term Sheet.

NOW THEREFORE THE INVESTOR and C3D agree as follows:

Investment Terms
----------------

Securities:
-----------

Up to 250,000$ in common stock.

Purchase Price:
---------------
The Purchase Price will be 10$ per Share

Registration:
-------------
The Company will file, after the Closing Date, a Registration Statement on Form
S-1 (the "Registration Statement") to register the resale of the shares of
Common Stock.

The Company will use its best efforts to cause the Registration Statement to
become effective within 120 calendar days.

Conditions to Closing:
----------------------
Completion of satisfactory due diligence.

IN WITNESS WHEREOF, the parties have signed this Term Sheet as of the date
hereinabove set forth.

Constellation 3D, Inc.

        /s/ Ronen Yaffe
    -----------------------------
By: Ronen Yaffe, Treasurer

TCO INVESTMENT INC.

    /s/Alejandro Calvo                          /s/ Jose Francisco Calvo
    ---------------------------                 ---------------------------
By: Alejandro Calvo                         By: Jose Francisco Calvo

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