<PAGE>
----------------
FORMULA VENTURES
----------------
September 12, 2000
To:
Leonardo Berezovski, CFO
Constellation 3D, Inc.
From:
Shai Beilis, Formula Ventures, L.P.
Re: Loan Conversation
-----------------
Please convert the outstanding loan (originally $600,000) to 380,000 shares that
will be registered for trading in the next coming registration of the C3D Inc.
shares.
The shares should be allocated to the following entities:
Formula Ventures L.P. 242,326
FV-PEH L.P. 68,628
Formula Ventures (Israel) L.P. 69,045
-------
380,000
Please approve these terms by return fax.
We'll prepare a more detailed legal document for the signatures of both parties
next week.
Best regards,
/s/ Shai Beilis
----------------
Shai
We approve the conversation at the terms above:
-------------------------
Constellation 3D Inc.
--------------------------------------------------------------------------------
11 GALGALEI HAPLADA, P. O. BOX 2062 HERZLIYA, 48120, ISRAEL
[email protected] / TEL: +972 9 960 1800 / FAX +972 9 960 1818
--------------------------
--------------------------------------------------------------------------------
