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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 ADJUSTMENT 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 ADJUSTMENT WARRANT

No. AW1

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

                             CONSTELLATION 3D, INC.

         THIS CERTIFIES that, for value received, Koor's Investors (the
"Investor") is entitled, upon the terms, at the times and subject to the
conditions hereinafter set forth, at any time after the termination of the
Adjustment Period (as defined herein) but prior to 5:00 p.m. New York City time
on August 31, 2005 (the "Termination Date"), to subscribe for and receive from
time to time from CONSTELLATION 3D, INC., a Florida corporation (the "Company"),
all or any portion of an aggregate number of shares of Common Stock of the
Company determined pursuant to Section 3 hereof (the "Adjustment Shares"). The
"Exercise Price" is $0. The number of shares for which the Adjustment Warrant is
exercisable shall be subject to adjustment as provided herein. This Adjustment
Warrant is being issued in connection with the Common Stock Investment Agreement
dated as of August 31, 2000 (the "Purchase Agreement") entered into by the
Company and the Investor. Any capitalized terms used but not defined in this
Adjustment Warrant shall have the meaning specified in the Purchase Agreement.

1.       Title of Adjustment Warrant. Prior to the expiration hereof and subject
         to compliance with applicable laws, this Adjustment Warrant and all
         rights hereunder are transferable, in whole or in respect of the right
         to receive any part of the Adjustment Shares, at the office or agency
         of the Company by the holder hereof in person or by duly authorized
         attorney, upon surrender of this Adjustment 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 from time to time of
         rights represented by this Adjustment Warrant, upon exercise of the
         rights represented by this Adjustment Warrant, will be duly authorized,

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         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 Adjustment Warrant for Adjustment Shares.

(a)      Definitions.

         Subject to Section 3(e), "Adjustment Period" means the period starting
         15 Trading Days after the day on which a registration statement
         covering the Initial Shares is first declared effective by the SEC and
         ending on and including the 50th consecutive Trading Day thereafter.
         For the avoidance of doubt, the Adjustment Period with respect to an
         Adjustment Warrant issued in connection with the exercise of an
         Optional Warrant shall be the same period in time as the Adjustment
         Period with respect to the Adjustment Warrants issued in connection
         with the sale of the Initial Shares, even if the Adjustment Period has
         ended prior to the exercise of such Optional Warrant.

         "Adjusted Share Purchase Price" means 115% of the Share Purchase Price.
         The Adjusted Share Purchase Price shall be appropriately adjusted to
         reflect stock splits, reverse stock splits, stock dividends,
         recapitalizations, etc.

         "Average Price" means the average of the 20 lowest daily trades for a
         share of Common Stock during the Adjustment Period.

         "Effective Registration" shall have the meaning specified in the
         Purchase Agreement.

         "Principal Market" shall have the meaning specified in the Purchase
         Agreement.

(b)      The number of Adjustment Shares deliverable will be calculated in
         accordance with Section 3(c). No shares will be due pursuant to Section
         3(c) unless the Average Price is less than the Adjusted Share Purchase
         Price.

(c)      Adjustment Share Calculations. Subject to Sections 3(e) and (f), the
         number of Adjustment Shares (if any) issuable in respect of the
         Adjustment Period shall be calculated immediately following the close
         of trading of the Principal Market on the final Trading Day of the
         Adjustment Period, using the following formula:

         # of Adjustment Shares = ($2,300,490/ Average Price) - # of Initial
         Shares

         The number of Initial Shares used in the above calculation shall be
         appropriately adjusted for any stock slit, reverse stock split, stock
         dividend, recapitalization, etc. Promptly after performing the
         calculations pursuant to Section 3(c), the Company shall deliver its
         written calculations to the Investor by facsimile.

         If this Adjustment Warrant was issued to the Investor pursuant to the
         exercise of an Optional Warrant, the term "Initial Shares" as used in

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         this Adjustment Warrant shall be deemed to mean the Optional Warrant
         Shares received upon such exercise of such Optional Warrant.

(d)      Exercise of Adjustment Warrant. Exercise of the rights represented by
         this Adjustment Warrant may be made at any time or times, in whole or
         in part, after the termination of the Adjustment Period and prior to
         5:00 p.m. New York City time on the Termination Date, by the surrender
         on any business day of this Adjustment Warrant and a Notice of Exercise
         in the form 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); whereupon the holder of this Adjustment Warrant shall be
         entitled to receive a certificate for the number of Adjustment Shares
         for which this Adjustment Warrant has been so exercised. Certificates
         for Adjustment Shares shall be delivered to the holder hereof within
         three (3) Trading Days after the date on which this Adjustment Warrant
         shall have been exercised as aforesaid (such event being a "Fill-Up
         Closing"). An exercise of this Adjustment Warrant shall be deemed for
         all purposes a "cashless" exercise.

(e)      Effective Registration During Stock Adjustment Period.

                  (i) If at any time during the Adjustment Period there shall be
         a lack of Effective Registration, the Investor (as to itself only) may
         at its option either (x) waive the lack of Effective Registration, in
         which case the Adjustment Period will continue uninterrupted with
         respect to the Investor in accordance with the other provisions of this
         Section 3, or (y) by written notice to the Company (delivered no later
         than 24 hours after actually receiving written notification from the
         Company of such lack of Effective Registration) elect to suspend such
         Adjustment Period with respect to itself only (a "Suspension Notice").

                  (ii) If the Investor elects pursuant to subsection (i) above
         to suspend a particular Adjustment Period and Effective Registration is
         subsequently re-established either before or after the scheduled end of
         the Adjustment Period, then the Investor may, at its option, elect (x)
         to treat the Adjustment Period as tolled for the duration (however
         long) of the lack of Effective Registration, such that the first full
         day of Effective Registration following delivery of the Suspension
         Notice shall be treated as and deemed to be the next day of the tolled
         Adjustment Period, (y) to treat the Adjustment Period as having never
         commenced, such that the first full day of Effective Registration
         following delivery of the Suspension Notice shall be treated as and
         deemed to be the first day of the Adjustment Period, or (z) to treat
         the Adjustment Period as having been extended by such number of days
         that is equal to the duration of the lack of Effective Registration.
         The Investor shall have two (2) Trading Days after receiving written
         notice from the Company of the re-establishment of Effective
         Registration to make such election.

(f)      Effective Registration as of Fill-Up Closing. If there is not Effective
         Registration on the date of a Fill-Up Closing, then the Investor shall
         have the option (as to itself only) but not the obligation to receive

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         from the Company, in lieu of the Adjustment Shares otherwise
         deliverable, an amount in immediately available funds equal to the
         product of (i) the highest closing bid price of the Common Stock on the
         Principal Market from the final Trading Day of the Adjustment Period
         through and including the Trading Day immediately prior to such Fill-Up
         Closing and (ii) the number of Adjustment Shares the Company otherwise
         would be obligated to deliver to such Investor at such Fill-Up Closing.

(g)      Remedies. If the Company fails to deliver the specified number of
         Adjustment Shares to the Investor within 10 Trading Days of the time
         and at the place specified herein, then the Investor may, without
         reducing its other rights at law or in equity, compel the Company to
         repurchase all or a part of its Securities (including the number of
         Adjustment Shares which, without regard to Effective Registration,
         should have been delivered by the Company) at the applicable Premium
         Redemption Price (as defined and specified in the Registration Rights
         Agreement).

(h)      Adjustments. The number of Adjustment Shares shall be appropriately
         adjusted to reflect any stock split, reverse stock split, stock
         dividend, recapitalization or similar event so that the Investor
         receives the same economically equivalent value of Adjustment Shares as
         it would in the absence of such event.

(i)      Short Sales. The Investor agrees that prior to expiration of the
         Adjustment Period, it will not engage in short sales of Common Shares
         with the intent of lowering the market price of such shares. The fact
         that the market price of the Common Shares declines contemporaneously
         with short sales effected by the Investor shall not be deemed a
         presumption that the Investor had the intent of so lowering the market
         price.

(j)      Miscellaneous. The Adjustment Shares shall upon delivery to the
         Investor be fully-paid, nonassessable, shares of Common Stock, free and
         clear of all liens and encumbrances and duly eligible for trading on
         each exchange and market on which shares of Common Stock are then
         traded.

4.       Non-Certificated Shares, In lieu of delivering physical certificates
         representing the Adjustment Shares, provided the Company's transfer
         agent is participating in the Depository Trust Company ("DTC") Fast
         Automated Securities Transfer ("FAST") program, upon request of the
         Adjustment Warrant holder, the Company shall use its best efforts to
         cause its transfer agent to electronically transmit the Adjustment
         Shares to the Adjustment Warrant holder by crediting the account of the
         Adjustment 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

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         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.

5.       No Fractional Shares or Scrip. No fractional shares or scrip
         representing fractional shares shall be issued upon the issuance of the
         Adjustment Shares

6.       Charges, Taxes and Expenses. Issuance of certificates for shares of
         Common Stock upon the exercise of this Adjustment 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 Adjustment Warrant or in such name or names as may be
         directed by the holder of this Adjustment 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 Adjustment
         Warrant, this Adjustment 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 Adjustment Warrant
         certificates or any certificates for the Adjustment Shares other than
         the issuance of a Adjustment Warrant certificate to the Investor in
         connection with the Investor's surrender of a Adjustment Warrant
         certificate upon the exercise of less than all of the Adjustment
         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.

7.       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 Adjustment Warrant.

8.       No Rights as Shareholder until Exercise. Subject to Section 13 of this
         Adjustment 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
         Adjustment 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 Adjustment Warrant shall
         have been exercised as provided herein. However, at the time of the
         exercise of this Adjustment Warrant pursuant to Section 3 hereof, the
         Adjustment Shares received 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 Adjustment Warrant shall have been
         exercised.

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9.       Assignment and Transfer of Adjustment Warrant. This Adjustment Warrant
         may be assigned in whole or in part by the surrender of this Adjustment
         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 Adjustment 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 Adjustment Warrant to the effect that the transaction is
         so exempt.

10.      Loss, Theft, Destruction or Mutilation of Adjustment Warrant. Upon
         receipt by the Company of evidence reasonably satisfactory to it of the
         loss, theft, destruction or mutilation of any Adjustment Warrant or
         stock certificate representing the Adjustment 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 Adjustment
         Warrant or stock certificate, if mutilated, the Company will make and
         deliver a new Adjustment Warrant or stock certificate of like tenor and
         dated as of such cancellation, in lieu of this Adjustment Warrant or
         stock certificate.

11.      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.

12.      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 Adjustment Warrant shall have the right thereafter to
         purchase, by exercise of this Adjustment Warrant, 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 Adjustment Warrant been exercised immediately
         prior thereto, subject to further adjustment as provided in Section 13.
         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.

13.      Adjustment of Number of Adjustment Warrant Shares. The number of and
         kind of securities purchasable upon exercise of this Adjustment Warrant
         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
         Adjustment Warrant subdivide its outstanding securities as to which

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         purchase rights under this Adjustment Warrant exist, by split-up,
         spin-off, or otherwise, or combine its outstanding securities as to
         which purchase rights under this Adjustment Warrant exist, the number
         of Adjustment Shares as to which this Adjustment 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.

(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 Adjustment 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.

(c)      Other Distributions. If at any time after the date hereof the Company
         distributes to holders of 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 Adjustment Shares for
         which this Adjustment Warrant is exercisable shall be increased to
         equal: (i) the number of Adjustment Shares for which this Adjustment
         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 Adjustment
         Warrant holder) of any and all such evidences of indebtedness, shares
         of capital stock, other securities or property, so distributed. In lieu
         of such change to the number of Adjustment Shares for which this
         Adjustment Warrant is exercisable, 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 Adjustment Warrant had been
         exercised in full for Adjustment Shares as of the record date for such
         distribution, without regard to the restrictions contained in Section
         14.

         For purposes of this Adjustment 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

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         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
         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 Holder.

(d)      Merger. 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 Adjustment
         Warrant to be performed and observed by the Company.

(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 Adjustment Warrant exist into the same or a
         different number of securities of any other class or classes, then the
         Adjustment Warrant Holder shall thereafter be entitled to receive upon
         exercise of this Adjustment Warrant, during the period specified
         herein, the number of shares or other securities or property resulting
         from such reorganization or reclassification, which would have been
         received by the Adjustment Warrant Holder for the shares of stock
         subject to this Adjustment Warrant had this Adjustment Warrant at such
         time been exercised.

14.      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
         Warrants) 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:

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                  (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 Adjustment
         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 14 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 14 shall be

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         suspended to the extent necessary until such time, if any, as shares of
         Common Stock may be issued in compliance with such restrictions.

15.      Miscellaneous.

(a)      Choice Of Law; Venue; Jurisdiction. The provisions of this Adjustment
         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 Adjustment Warrant shall be binding upon any successors or assigns
         of the Company. This Adjustment 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 Adjustment 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 Adjustment 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 Adjustment
         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 15(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 Adjustment 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 Adjustment Warrant and the Company. No waivers of, or exceptions
         to, any term, condition or provision of this Adjustment 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.

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(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
         Adjustment 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 15(c).

(d)      Severability. Whenever possible, each provision of this Adjustment
         Warrant shall be interpreted in such manner as to be effective and
         valid under applicable law, but if any provision of this Adjustment
         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 Adjustment Warrant in
         such jurisdiction or affect the validity, legality or enforceability of
         any provision in any other jurisdiction, but this Adjustment 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 Adjustment 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 Adjustment Warrant holder against
         impairment. Without limiting the generality of the foregoing, the
         Company (a) will not increase the par value of any Adjustment 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 Adjustment Shares on the exercise of this Adjustment
         Warrant.

                                       11
<PAGE>

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

Dated: August 31, 2000

                                                 CONSTELLATION 3D, INC.

                                                 By:  /s/ Eugene Levich
                                                      -----------------------
                                                      Name:    Eugene Levich
                                                      Title:   President
Agreed and Accepted
this 31st  day of August, 2000

KOOR'S INVESTORS

By:  /s/ Kobi Zecharia
     ---------------------------------
     Name:   Kobi Zecharia
     Title:

                                       12
<PAGE>
                               NOTICE OF EXERCISE

To:      CONSTELLATION 3D, INC.

(1) The undersigned hereby elects to receive ________ shares of Common Stock of
CONSTELLATION 3D, INC. pursuant to the terms of the attached Adjustment Warrant
in a "cashless" exercise.

(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 Adjustment Warrant for the unexercised portion of the
attached Adjustment 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 Adjustment Warrant, execute
                   this form and supply required information.
            Do not use this form to exercise the Adjustment Warrant.)

                  FOR VALUE RECEIVED, the foregoing Adjustment 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 Adjustment 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 Adjustment Warrant.<PAGE>

                                WARRANT AGREEMENT
                                -----------------

         This Warrant Agreement ("Agreement"), dated as of August 18, 2000, is
made by and between Constellation 3D, Inc., a Florida corporation ("Company"),
and Blank Rome Comisky & McCauley LLP, a limited liability partnership formed
and registered under the laws of the Commonwealth of Pennsylvania ("Grantee").

         WHEREAS, in order to reduce, by $50,000 (Fifty Thousand Dollars), its
outstanding legal fees due to Grantee for services rendered to Company by
Grantee, Company desires to afford Grantee the opportunity to purchase shares of
Company's common stock, par value $0.001 per share; and

         WHEREAS, Company's Board of Directors has determined that it would be
in the best interests of Company to grant the warrant provided for herein to
Grantee, to reduce the amount of the aforesaid outstanding legal fees.

         NOW, THEREFORE, in consideration of the promises and the mutual
covenants contained herein, and intending to be legally bound, the parties
hereto agree as follows:

1. Certain Definitions.

         "Commission" shall mean the U.S. Securities and Exchange Commission, or
any other federal agency at the time administering the Securities Act.

         "Common Stock" shall mean the Common Stock, par value $.001 per share,
of the Company, as constituted as of the date of this Agreement.

         "Eligible Securities" shall mean all Registrable Securities other than
Excluded Securities.

         "Exchange Act" shall mean the U.S. Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Commission thereunder, all as the
same shall be in effect at the time.

         "Excluded Securities" shall mean Registrable Securities that are free
of restriction on resale under the Securities Act (by removal of all restrictive
legends, instructions to transfer agent or otherwise) pursuant to Rule 144(k) of
the Securities Act.

         "Register," "registered" and "registration" each shall refer to a
registration effected by preparing and filing a registration statement or
statements or similar documents in compliance with the Securities Act and the
declaration or ordering of effectiveness of such registration statement or
document by the Commission.

         "Registrable Securities" shall mean (i) the Common Stock issuable upon
exercise of the Warrant granted to Grantee, (ii) any Common Stock of the Company
issued in exchange for or in replacement of such Warrant, or Common Stock issued
upon conversion thereof.

<PAGE>

         "Requisite Period" shall mean, with respect to a firm commitment
underwritten public offering, the period commencing on the effective date of the
registration statement and ending on the date each underwriter has completed the
distribution of all securities purchased by it and, with respect to any other
registration, the period commencing on the effective date of the registration
statement and ending on the earlier of (i) the date on which the sale of all
Registrable Securities covered thereby is completed and (ii) 180 days after such
effective date.

         "Securities Act" shall mean the U.S. Securities Act of 1933, as
amended, and the rules and regulations of the Commission thereunder, all as the
same shall be in effect at the applicable time.

2. Grant of Warrant. Grantee is hereby granted a warrant (the "Warrant") to
purchase at any time or from time to time, as a whole or in part, Five Thousand
Five Hundred and Fifty Five (5,555) shares of Stock ("Warrant Shares") on the
terms and conditions set forth in this Agreement.

3. Termination of Warrant. The Warrant shall terminate on July 31, 2005.

4. Purchase Price. The purchase price of the Warrant Shares shall be $0.001 (One
Tenth of One Cent) per share ("Purchase Price").

5. Methods of Exercise. Grantee may exercise the Warrant by written notice to
the Company stating (i) that the Warrant is being exercised and (ii) the number
of Warrant Shares desired to be purchased, accompanied or followed by cash, wire
transfer or check in an amount equal to the aggregate Purchase Price of the
Warrant Shares being purchased (i.e., the number of Warrant Shares exercised
multiplied by the Purchase Price).

6. Registration Rights If the Company at any time proposes to register any of
its securities under the Securities Act for sale to the public, whether for its
own account or for the account of other security holders or both (except with
respect to registration statements on Forms S-4, S-8 and any successor forms
thereto as well as registrations that do not permit resales), each such time it
will give written notice to Grantee at least thirty (30) days prior to such
filing. Upon the written request of Grantee received by the Company within
twenty (20) days after the giving of any such notice by the Company to register
any of its Eligible Securities, the Company will cause the Eligible Securities
as to which registration shall have been so requested to be included in the
securities to be covered by the registration statement proposed to be filed by
the Company, all to the extent required to permit the sale or other disposition
by the holder of such Eligible Securities so registered. Notwithstanding the
foregoing, in the event that any registration pursuant to this Section 6 shall
be, in whole or in part, an underwritten public offering of Stock, the number of
Eligible Securities to be included in such an underwriting may be reduced (pro
rata among the requesting holders and Grantee, and its assigns and the other
selling stockholders (based upon the number of Eligible Securities requested to
be registered by them)) if and to the extent that the managing underwriter shall
be of the good faith opinion that such inclusion would adversely affect the
success of such an underwriting, provided, that such number of Eligible
Securities shall not be reduced if any shares of Stock are to be included in
such underwriting for the account of any person other then the Company and its
assigns or requesting holders of Eligible Securities. Notwithstanding the
foregoing provisions, the Company may withdraw any registration statement
referred to in this Section 6 without thereby incurring any liability to the
holders of Eligible Securities.

<PAGE>

If and whenever the Company is required by the provisions hereof to effect the
registration of any Registrable Securities under the Securities Act, the Company
will, as expeditiously as possible:

         (a) prepare and file with the Commission a registration statement with
respect to such securities and use its best efforts to cause such registration
statement to become effective not later than 120 (one hundred and twenty) days
from the date of its filing and to remain effective for the Requisite Period;

         (b) prepare and file with the Commission such amendments and
supplements to such registration statement and the prospectus used in connection
therewith as may be necessary to keep such registration statement effective for
the Requisite Period and comply with the provisions of the Securities Act with
respect to the disposition of all Registrable Securities covered by such
registration statement in accordance with the intended method of disposition set
forth in such registration statement for such period;

         (c) furnish to Grantee such number of copies of the registration
statement and the prospectus included therein (including each preliminary
prospectus) as Grantee reasonably may request in order to facilitate the
intended disposition of the Registrable Securities covered by such registration
statement;

         (d) use its best efforts (i) to register or qualify the Registrable
Securities covered by such registration statement under the securities or "blue
sky" laws of such jurisdictions as the sellers of Registrable Securities or, in
the case of an underwritten public offering, the managing underwriter,
reasonably shall request, (ii) to prepare and file in those jurisdictions such
amendments (including post-effective amendments) and supplements, and take such
other actions, as may be necessary to maintain such registration and
qualification in effect at all times for the period of distribution contemplated
thereby and (iii) to take such further action as may be necessary or advisable
to enable the disposition of the Registrable Securities in such jurisdictions,
provided, that the Company shall not for any such purpose be required to qualify
generally to transact business as a foreign corporation in any jurisdiction
where it is not so qualified or to consent to general service of process in any
such jurisdiction;

         (e) use its best efforts to list the Registrable Securities covered by
such registration statement with any securities exchange on which the Common
Stock of the Company is then listed, or, if the Common Stock is not then listed
on a national securities exchange, use its best efforts to facilitate the
reporting of the Common Stock on the Nasdaq National Market or SmallCap Market
or the quotation of the Common Stock using the Over-the-Counter Bulletin Board
quotation service of the National Association of Securities Dealers;

         (f) immediately notify Grantee, at any time when a prospectus relating
thereto is required to be delivered under the Securities Act, of the happening
of any event of which the Company has knowledge as a result of which the
prospectus contained in such registration statement, as then in effect, includes
any untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing and promptly amend or
supplement such registration statement to correct any such untrue statement or
omission;

<PAGE>

         (g) notify each seller of Registrable Securities of the issuance by the
Commission of any stop order suspending the effectiveness of the registration
statement or the initiation of any proceedings for that purpose and make every
reasonable effort to prevent the issuance of any stop order and, if any stop
order is issued, to obtain the lifting thereof at the earliest possible time;

         (h) permit Grantee to review the registration statement and all
amendments and supplements thereto for a reasonable period of time prior to
their filing;

         (i) if the offering is an underwritten offering, enter into a written
agreement with the managing underwriter selected in the manner herein provided
in such form and containing such provisions as are usual and customary in the
securities business for such an arrangement between such underwriter and
companies of the Company's size and investment stature, including, without
limitation, customary indemnification and contribution provisions;

         (j) if the offering is an underwritten offering, at the request of any
seller of Registrable Securities, use its best efforts to furnish to such seller
on the date that Registrable Securities are delivered to the underwriters for
sale pursuant to such registration: (i) if Grantee is not representing the
Company for the purposes of such registration, a copy of an opinion dated such
date of counsel representing the Company for the purposes of such registration,
addressed to the underwriters, stating that such registration statement has
become effective under the Securities Act and that (A) to the best knowledge of
such counsel, no stop order suspending the effectiveness thereof has been issued
and no proceedings for that purpose have been instituted or are pending or
contemplated under the Securities Act, (B) the registration statement, the
related prospectus and each amendment or supplement thereof comply as to form in
all material respects with the requirements of the Securities Act (except that
such counsel need not express any opinion as to financial statements or other
financial or statistical information contained therein) and (C) to such other
effects as reasonably may be requested by counsel for the underwriters; and (ii)
a copy of a letter dated such date from the independent public accountants
retained by the Company, addressed to the underwriters, stating that they are
independent public accountants within the meaning of the Securities Act and
that, in the opinion of such accountants, the financial statements of the
Company included in the registration statement or the prospectus, or any
amendment or supplement thereof, comply as to form in all material respects with
the applicable accounting requirements of the Securities Act, and such letter
shall additionally cover such other financial matters (including information as
to the period ending no more than five business days prior to the date of such
letter) with respect to such registration as such underwriters reasonably may
request;

         (k) take all actions reasonably necessary to facilitate the timely
preparation and delivery of certificates (not bearing any legend restricting the
sale or transfer of such securities) representing the Registrable Securities to
be sold pursuant to the Registration Statement and to enable such certificates
to be in such denominations and registered in such names as Grantee or any
underwriters may reasonably request; and

         (l) take all other reasonable actions necessary to expedite and
facilitate the registration of the Registrable Securities pursuant to the
Registration Statement.

In connection with each registration hereunder, the Grantee will furnish to the
Company in writing such information with respect to itself and the proposed
distribution by it as reasonably shall be necessary in order to assure
compliance with federal and applicable state securities laws.

<PAGE>

7. Expenses. The Company will pay any and all costs and expenses in connection
with any registration statement filed hereunder.

8. Transferability. Subject to compliance with applicable federal and state
securities laws, this Stock Warrant Agreement may be transferred by the Grantee
with respect to any or all of the Warrant Shares purchasable hereunder. Upon
surrender of this Stock Warrant Agreement to the Company, together with the
assignment hereof properly endorsed, for transfer of this Stock Warrant
Agreement as an entirety by the Grantee, the Company shall issue a new Stock
Warrant Agreement of the same denomination to the assignee. Upon surrender of
this Stock Warrant Agreement to the Company, together with the assignment hereof
properly endorsed, by the Grantee for transfer with respect to a portion of the
Warrant Shares purchasable hereunder, the Company shall issue a new Stock
Warrant Agreement to the assignee, in such denomination as shall be requested by
the Grantee hereof, and shall issue to such Grantee a new Stock Warrant
Agreement covering the number of Warrant Shares in respect of which this Stock
Warrant Agreement shall not have been transferred.

The rights to have the Company register Registrable Securities pursuant to this
Agreement may be assigned by Grantee to one or more transferees or assignees of
such securities; provided, that the Company is, within a reasonable time after
such transfer, furnished with written notice of the name and address of such
transferee or assignee and the securities with respect to which such
registration rights are being assigned.

9. Change in Number of Shares of Stock. If and to the extent that the number of
issued shares of Stock shall be increased or reduced by change in par value,
split-up, reclassification, reorganization, merger, distribution of a dividend
payable in stock, or the like, the number of shares of Stock subject to warrant
and the Purchase Price shall be proportionately adjusted in good faith by the
Company's Board of Directors.

10. Rights prior to exercise of warrant. Grantee shall have no rights as a
stockholder with respect to the Warrant Shares until payment of the Purchase
Price and delivery to Grantee of such Stock as herein provided.

11. Agreement Binding. This Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective successors and assigns.

12. Severability. In case one or more provisions of this Agreement shall be
found to be invalid, illegal, or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein shall
not be in any way affected or impaired thereby.

13. Entire Agreement. This Agreement contains the entire understanding and
agreement between the parties hereto, relating to the subject matter hereof, and
cannot be amended, modified or supplemented in any respect, except by subsequent
written agreement entered into by both parties.

14. Governing Law. This Agreement shall be construed under and governed by the
laws of the Commonwealth of Pennsylvania.

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the first date set forth above.

                                      CONSTELLATION 3D, INC.

                                      By:      /s/ Eugene Levich
                                               ---------------------------------
                                               Eugene Levich,
                                               President and
                                               Chief Executive Officer

                                      BLANK ROME COMISKY & McCAULEY LLP

                                      By:      /s/ Alan L. Zeiger, Esq.
                                               ---------------------------------
                                               Name:  Alan L. Zeiger, Esq.
                                               Title: Partner

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