Document:

EXHIBIT 10.02

 EXHIBIT 10.02 
  
 AUTODESK AUTHORIZED CHANNEL PARTNER AGREEMENT 
 VALUE ADDED RESELLER 
 (United States) 
  
 This Autodesk Authorized Channel Partner Agreement
(“VARAgreement”), effective on February 1, 2004 (“Effective Date”) is made between Autodesk, Inc., a Delaware corporation (“Autodesk”), and Value Added Reseller (“VAR”) as set forth
below: 
  
 Avatech Solutions Subsidiary, Inc. 
  
 11400-A Cronridge Drive 
  
 Owings Mills, MD 21117 
  
 FAX: 410- 581- 8088 
 0070000270, 0070001091, 0070001359 & 0070001471                            01 

 
 1. Definitions 
  
 1.1 “Autodesk Channel Partner Policies and Procedures” shall mean the documents posted to the AACPW, as periodically
amended by Autodesk, in its sole discretion, that sets forth the policies and procedures to be followed by VAR, which is hereby incorporated by reference. 
  
 1.2 “Autodesk Master Government Reseller (or Master Government Reseller)” shall mean the partner(s) Autodesk contracts with to administer marketing and
sales to qualifying government customers. 
  
 1.3 “Authorized
Location” shall mean each physical location as identified in Exhibit(s) A where VAR is authorized to market and distribute Authorized Products to End Users and offer support thereto, as identified in the Product Requirements Chart covering
each such Authorized Product(s). 
  
 1.4 “Authorized
Product(s)” shall mean the Autodesk software product(s), Updates, Bug Fixes or Enhancements thereto, which (a) VAR has procured directly from Autodesk or from an Autodesk Distribution Partner in accordance with this VAR Agreement, and (b)
VAR is authorized to market and distribute to End Users only in accordance with the Product Requirements Chart and Exhibit A(s) which corresponds to such Authorized Product(s). 
  
 1.5 “Autodesk Authorized Channel Partner Website (“AACPW”)” shall mean One Team Web or any other successor site
as designated by Autodesk. VAR is required to review the AACPW at least weekly. 
  
 1.6 “Authorized Territory” shall mean the geographical area of the United States identified in Exhibit A(s) within which VAR is authorized to market and distribute Authorized Products to End Users and offer support thereto
corresponding to such Product Requirements Chart. 
  
 1.7 “Autodesk
Distribution Partner” shall mean any entity currently authorized in writing by Autodesk to distribute Autodesk software products to third parties other than End Users. 
  
 1.8 “Autodesk Direct Customer(s)” shall mean any End User to whom Autodesk sells Autodesk software products directly.
Autodesk Direct Customers include all named accounts, Autodesk Store customers and all state, local and federal government End Users.  
  
 1.9 “Cooperative Marketing Funds” or “Co-op” shall mean funds provided by Autodesk which are made available to VAR for promotion of Authorized
Products, under the terms of this VAR Agreement. 
  
 1.10 “Co-op
Guide” shall mean the document published by Autodesk that sets forth the requirements for obtaining Co-op. 
  

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 1.11 “Dedicated Personnel” means that each qualified employee only sells or supports a single Vertical
Product in addition to the Horizontal Products. 
  
 1.12
“Earnbacks” shall mean credits that VAR may receive, under the terms of this VAR Agreement, upon the achievement of VAR’s Target. 
  
 1.13 “End User” shall mean a customer of Autodesk who has acquired a license for one or more Authorized Products from VAR for the personal or business
use of such customer and not for transfer or resale. 
  
 1.14 “End
User License” shall mean the then-current license agreement shipped with, incorporated in, or made available by download with each Authorized Product(s), which sets forth the terms and conditions under which an End User may use such

product(s). 
  
 1.15 “End User Records” shall mean the records
maintained by VAR that show, at minimum, the name and address of each End User to whom VAR has sold the Authorized Product(s). 
  
 1.16 “Extensions” shall mean a license to use a modular addition to a Software Program incorporating corrections or enhancements under the Autodesk
Subscription Program which supplement and enhance that Software Program. 
  
 1.17 “Government Account Guide” shall mean the document separately published by Autodesk that sets forth the requirements for government accounts, which may be updated by Autodesk from time to time in its sole
discretion. 
  
 1.18 “Horizontal Products” shall mean
AutoCAD, Autodesk VIZ, Autodesk Raster Design, On-Site View and any other Autodesk products as Autodesk may designate in its sole and absolute discretion during the Term. 
  
 1.19 “Minimum Purchase Requirement” shall mean the minimum purchase requirements as set forth in the Products Requirement
Chart, and/or as set periodically by Autodesk in its sole and absolute discretion.  
  
 1.20 “Support Program” means the minimum End User support training, authorization and tracking requirements as set forth in Exhibit E hereto. 
  
 1.21 “Product Requirements Chart” shall mean the Exhibit B to this VAR
Agreement which sets forth the terms and conditions under which VAR is authorized to market, distribute, and support one or more Authorized Products to End Users. The Product Requirements Chart is supplemented by the detailed Product Requirements
Sheets available on the AACPW. VAR may not market or distribute any Authorized Product(s) to End Users until Autodesk has delivered to it a fully executed copy of this VAR Agreement with a completed Exhibit(s) A corresponding to such Authorized
Product(s). VAR must continuously meet the requirements set forth in the Product Requirements Chart and the corresponding Products Requirements Sheets for each Authorized Location in which VAR intends to market, distribute, and support the
Authorized Products. The Product Requirements Chart and each of the Products Requirements Sheets are hereby incorporated into and made part of this VAR Agreement. 
  
 1.22 “QualifiedPersonnel” means that each full-time VAR employee has passed the appropriate Autodesk exam(s), and
continues to maintain the appropriate technical skill and product experience as stated in detail in the AACPW. 
  
 1.23 “Strategic Account Guide” shall mean the document separately published by Autodesk that sets forth the requirements for strategic accounts which may be updated by Autodesk from time to time in
its sole discretion. 
  
 1.24 “Target” shall mean the revenue
target set by Autodesk based upon purchases of Authorized Product(s). 
  
 1.25
“Term” shall mean the period of time beginning with the Effective Date, and shall continue in effect through midnight on January 31, 2005 when it shall then terminate, unless terminated earlier under the provisions of this VAR
Agreement. 
  
 1.26 “Updates, Bug Fixes, and Enhancements”
collectively shall mean additions or corrections to any Authorized Product(s) which (a) Autodesk designates as a modified or updated version of such Authorized Product(s), and (b) requires the End User to whom it is distributed to have
previously licensed the Authorized Product(s) corresponding to such modified or upgraded version. In no event shall this include an Extension. 
  

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 1.27 “Value Added Services” shall mean the services, as defined in Section 5.1 below, that VAR must
provide to each End User in order to qualify as an VAR. 
  
 1.28 “Vertical
Products” shall mean Autodesk MapGuide, MapGuide Author, MapGuide Server, MapGuide Viewer, Autodesk On-Site Enterprise, AutoCAD Mechanical, AutoCAD Electrical, Autodesk Data Exchange, IGES Translator, STEP Translator, Autodesk Inventor,
Autodesk Inventor Series, Autodesk Inventor Pro, Autodesk Architectural Desktop, Autodesk Architectural Studio, Autodesk Building Systems, Autodesk Revit, Autodesk Land Desktop, Autodesk Civil Design, Autodesk Survey, Autodesk Civil Series, Autodesk
Field Survey, Autodesk Map, Autodesk Map Series, Autodesk Envision, CAiCE Visual Survey, CAiCE Visual Roads, CAiCE Visual Survey/Roads, CAiCE Visual Construction, CAiCE Visual Landscape, CAiCE Visual Drainage, CAiCE Visual Bridge, Autodesk
Streamline, Buzzsaw and any other Autodesk products that Autodesk may designate in its sole and absolute discretion during the Term. 
  
 1.29 All references in this VAR Agreement to the “sale” of or “selling” or “purchase” of Software shall mean the sale or purchase of
a license to use such software. 
  
 1.30 Vertical Products and Horizontal
Products will be collectively referred to as the Authorized Products. 
  
 2.
Appointment. 
  
 2.1 Non-exclusive VAR. Autodesk appoints VAR as a
non-exclusive reseller (and on occasion a non-exclusive agent) to, during the Term, market, distribute, and support only the Authorized Products identified on the Product Requirements Chart(s) and Exhibit(s) A, solely to End Users within the
Authorized Territory, pursuant to an End User License.  
  
 2.2
Retention of Rights by Autodesk. Autodesk reserves the unrestricted right (a) to market, distribute, and support any Authorized Product(s) worldwide in any location, including in the VARs Authorized Territory, directly to End Users or through
any other channel, including, but not limited to, original equipment manufacturers, Channel Partners, distributors, on-line sales or retail outlets, and (b) to modify, augment, or otherwise change the methods in which Autodesk markets, distributes,
or supports any Authorized Product(s), without any liability to VAR. Autodesk hereby gives VAR notice that it has reserved all Autodesk Direct Customers for direct sales from Autodesk or its designated agents only.  
  
 3. Restrictions. 
  
 VAR agrees as follows: 
  
 3.1 End User License Terms. VAR shall use its best efforts to enforce the terms of the End User License and to advise Autodesk promptly of any known breach
of the terms of the End User License. 
  
 3.2 Not For Resale or NFR Copies of
Software Products. VAR shall not disseminate, distribute, or otherwise provide access to any NFR copy of a software product to any third-party. VAR may use NFR copies for customer demonstrations, internal training and other non-revenue
generating activities. 
  
 3.3 Restrictions. VAR shall not market,
distribute, or support any Authorized Product(s) to or for any third party other than an End User. VAR expressly acknowledges and agrees that VAR is not an Autodesk Distribution Partner and further acknowledges and agrees that the distribution
rights granted under Section 2 may not be construed so as to allow VAR to market or distribute Authorized Products to any person or entity other than an End User. This restriction notwithstanding, VAR may permit the financing of any Authorized
Products by an End User through a financial institution approved by Autodesk. Such financing shall be restricted to a loan arrangement or permitting an End User to enter into a buy-out lease, provided; however, such financial institution shall not
be an End User and shall have no rights to such product as a licensee thereof. In any event, this consent shall not be construed to permit short-term rental of Authorized Products. 
  
 3.4 Agency Authorization. This VAR Agreement allows VAR to act as Autodesk’s non-exclusive agent to assist with sales
activities to Autodesk Direct Customers at Autodesk’s sole discretion. Unless otherwise directed by Autodesk in writing, VAR may only engage in sales activities for Authorized Products to such Autodesk Direct Customers as Autodesk’s agent
and may not sell Authorized Products from its commercial inventory to Autodesk Direct Customers. Failure to comply with the foregoing shall subject VAR to termination. In the event Autodesk allows any Autodesk Direct Customer to make periodic
payments on any sale for which VAR is eligible to receive an agency commission, any such agency 
  

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 commission so paid shall be made ratably on a periodic schedule commensurate with the customer pay schedule and only if
Autodesk actually collects from the customer on the amount(s) due in each instance.  
  
 (a) Strategic Accounts. From time to time Autodesk may allow VAR to act as its non-exclusive agent in sales to Autodesk Strategic Account Customers, for the delivery and support of Autodesk products for which
VAR has a current authorization. VAR may receive a commission based on receipt and approval by Autodesk of all supporting documentation from VAR evidencing its performance of Value Added Services to the respective strategic account as outlined in
the Strategic Account Guide. 
  
 (b) Government. Autodesk has currently
designated DLT Solutions, Inc. (“DLT”) as its Master Government Reseller. Autodesk shall provide thirty (30) day written notice to VAR of any change in Autodesk’s designated Master Government Reseller. VAR may receive a commission on
orders placed with DLT by government End Users for which VAR has fulfilled obligations as set forth in the Government Account Guide. 
  
 (c) Online Store. From time to time Autodesk may allow VAR to act as its non-exclusive agent in sales to Autodesk direct online store customers, for the pre and
post sale support of Autodesk products in VAR’s territory for software products for which VAR is currently authorized. VAR may receive a commission based on receipt and approvals by Autodesk of all back up documentation from VAR evidencing its
performance of Value Added Services to the respective End User. 
  
 3.5
License Acquisition Limitation. VAR shall not purchase, license or otherwise acquire or attempt to acquire licenses for Authorized Products from (i) an End User, (ii) an agent acting on behalf of an End User, or (iii) any person or party other
than Autodesk or an Autodesk Authorized Distribution Partner. 
  
 3.6
Unauthorized Acquisition. VAR shall not attempt to upgrade, exchange, or otherwise procure an economic benefit from any Authorized Product(s) purchased, licensed, or otherwise acquired from (i) an End User, (ii) an agent acting on behalf of an
End User, or (iii) any person or party other than Autodesk or an Autodesk Authorized Distribution Partner. 
  
 3.7 No Mischaracterization. VAR shall not attempt to mischaracterize an Update, Bug Fix, Enhancement, or Extension as a stand-alone, fully paid-up license to the corresponding Authorized Product(s) for
the purpose of attempting to upgrade, exchange, or otherwise procure an economic benefit from such Update, Bug Fix, Enhancement, or Extension. 
  
 3.8 ExportLimitations. VAR shall not market, distribute, or support any Authorized Product(s) (i) to any entity purporting to be an End User but which is
either known to VAR or known to Autodesk and communicated to VAR to have the intent to, or have attempted to, sublicense such Authorized Product(s) to bona fide End Users or other third parties, or (ii) to any End User or other third party who
intends to export the Authorized Products, without written authorization from Autodesk. 
  
 3.9 Territory Limitations. VAR shall not attempt to market or distribute Authorized Product(s) other than from the Authorized Location and in the Authorized Territory as outlined in Exhibit(s) A, unless authorized by Autodesk
in writing. Any advertising, including but not limited to, trade magazine and web based advertising, which may be seen by customers outside of VAR’s Authorized Territory, must contain a disclaimer notifying such customers that VAR may not sell
to customers outside of VAR’s Authorized Territory. VAR shall refrain from marketing or promoting, in any manner, brokering or attempting to broker, solicit or arrange for the sale of any Authorized Product(s) other than the Authorized
Product(s) for which VAR has been approved in 
 Exhibit(s) A. 
  
 3.10 Remedy for Violation. In addition to all other remedies available to Autodesk at law or in equity or this VAR Agreement, including termination, in the
event that VAR violates any of the provisions of this subsection 3 or the Autodesk Channel Partner Policies and Procedures, VAR shall pay to Autodesk, as liquidated damages and not as a penalty, an amount equal to the difference between the
then-current Autodesk suggested retail price and the price VAR actually paid for the Autodesk software product used, procured or distributed in contravention of this Section 3 or the sum of $500.00 for each copy of the Autodesk software product
used, procured or distributed in contravention of this Section 3, whichever is greater. Additionally, VAR shall not be eligible for Co-op for, at minimum, the remainder of the Autodesk fiscal quarter in which the violation occurred (or the remainder
of the Autodesk fiscal quarter in which Autodesk learned of such violation by VAR) and the subsequent Autodesk fiscal quarter. 
  

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 3.11 Modifications to Agreement. Autodesk reserves the right, in its sole and exclusive discretion, to
amend, supplement, change or discontinue any part of this VAR Agreement, any exhibits or amendments thereto, on thirty (30) day notice to VAR. The notice may come in the form of an updated posting to AACPW. 
  
 3.12 Quote Expirations: All VAR’s who submit customer quotes on any sale: (a) to
Autodesk Direct Customers pursuant to this agency authorization, (b) on any Autodesk Subscription Program offering, (c) on any Autodesk support offering, or (d) for any Autodesk services offering must include an expiry date of not more then 30 days
from the date of customer quote on such customer quote. If the commercial customer quote includes both software and one of the foregoing then the customer quote must have the prescribed expiry. VAR may adopt an expiry date shorter the thirty days on
any customer quote in its discretion. 
  
 4.1 Agency Commission Recovery.
For all agency sale commissions paid pursuant to this VAR Agreement, in the event the commissioned product or service is returned or cancelled for any reason or Autodesk is unable to collect from the End User, Autodesk may recover from the VAR,
by means of a deduction from future commissions, that portion of the commission attributable, on a straight-line basis, to: (a) in the case of a product or service with an expiration date, the period from the date of return or cancellation to the
date on which the product or service would have expired; or (b) for a product with a perpetual license, the period from the date the product was delivered to VAR by Autodesk to the date the product was returned, assuming a useful life of twenty-four
(24) months for the product. In the event such agency commission is paid to VAR pursuant to a revenue authorization obligation, then Autodesk may recover the pro rata portion of such commission which is attributable on a straight-line basis, for the
period from the date of termination until the date when the revenue would have been fully recognized. 
  
 4.2 Earnback Issuance and Recovery. Earnback credits shall be issued ONLY IF VAR is in compliance with all the terms and conditions of this Agreement. In the event that VAR is not in such compliance at the time
such earnback credit should be issued, the credit will not be issued and VAR will forfeit that earnback credit. Forfeited Earnback credits are not recoverable. For any earnbacks paid pursuant to this VAR Agreement in the event VAR subsequently fails
to timely meet payment requirements for the order(s) supporting such earnbacks, Autodesk reserves the right to recover from VAR any or all such earnbacks. 
  
 5. VAR Obligations. 
  
 VAR agrees to perform all of the following obligations in good faith: 
  
 5.1 Value Added Services. VAR is required to provide Value Added Services beyond mere product fulfillment to End Users. Value Added Services include, but are not limited to, a) assessing each End User’s
software needs via the telephone or in person as further described on AACPW, b) providing product demonstrations, c) recommending the appropriate Authorized Product(s) to an End User based upon End User’s needs and d) offering pre and
post-sales technical support. VAR shall be required to maintain written records that demonstrate these Value Added Services were offered for each sale of Authorized Products to an End User. Autodesk reserves the right to contact End Users to
validate that such Value Added Services were provided and require VAR to provide Autodesk with evidence of Value Added Services upon request. 
  
 5.2 Support. At minimum, VAR must offer support services at the level defined by the Support Services Program and outlined in Exhibit E. 
  
 5.3 Reporting. VAR shall provide sell through reports, forecasts, inventory reports,
and personnel reports pursuant to the Autodesk Channel Partner Policies and Procedures on a quarterly basis at its own expense and in the format requested by Autodesk. Failure to provide any required report may be considered a breach of this VAR
Agreement by Autodesk and shall constitute termination for cause.  
  
 5.4 End User Records. As between Autodesk and VAR, Autodesk shall be the exclusive owner of the End User Records and the End User Records shall be treated by VAR as Autodesk’s valuable trade secret. VAR may not use the End User
Records for any reason except promotion, sale and support of the Authorized Products pursuant to this VAR Agreement without the prior written consent of Autodesk. 
  
 5.5 Opt-Out Requirement. In using End User Records for the promotion, sale and support of the Authorized Products pursuant to this
VAR Agreement, VAR shall, at minimum, utilize the following; (i) an “unsubscribe” or “opt-out” option on every marketing piece sent to End User regardless of form, (ii) a limitation on marketing contact with End Users to no more

  

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 frequently than one time per calendar month. Additionally, VAR shall comply with any and all federal, state, county, and
local laws, statutes, ordinances, and regulations that are related to privacy, customer data and anything thereto related and shall hereby indemnify Autodesk for any failure of it to do so. 
  
 5.6 Product Requirements Chart. Each Authorized Location of VAR shall continuously
comply with the specific requirements (“Product Requirements”) set forth in each Product Requirements Chart and the Product Requirement Sheets, as amended by Autodesk from time to time in its sole and absolute discretion.

  
 5.7 Minimum Purchase Requirements. VAR agrees to satisfy all Minimum
Purchase Requirements as outlined in Exhibit B. 
  
 5.8 Approvals. VAR
shall obtain and maintain at its own expense all approvals, consents, permissions, licenses, and other governmental or other third party approvals necessary to enable VAR to market, distribute, and support the software products for which VAR is
authorized in accordance with this VAR Agreement. VAR shall comply with all applicable federal, state, county, and local laws, statutes, ordinances, and regulations that apply to the activities of VAR including relevant privacy and piracy laws.

  
 5.9 Marketing Activities. VAR shall use its best efforts to
actively market, promote, and distribute, at VAR’s expense, the Authorized Products only within the Authorized Territory under the terms of this VAR Agreement and the applicable Product Requirement Sheet(s), Strategic Account Guide and/or
Government Account Guide. 
  
 5.10 Updates, Bug Fixes, and Enhancements.
VAR, at its own expense, shall be responsible for distribution and support of any Updates and/or Bug Fixes to any Authorized Product(s) that VAR has sold to an End User promptly after delivery to VAR of such Update or Bug Fix. Autodesk reserves the
right to distribute Updates, Bug Fixes, and Enhancements to End Users directly or through alternative channels, including, but not limited to, electronic distribution. VAR shall promptly notify Autodesk of any defect in any Authorized Product(s)
which is discovered by or reported to VAR. 
  
 5.11 Autodesk Channel Partner
Policy and Procedures. VAR shall comply with all terms and conditions of all current Autodesk Channel Partner Policies and Procedures. Failure to abide by such policies and procedures shall be considered a breach of this VAR Agreement and shall
constitute termination for cause. Autodesk reserves the right to modify such policies and procedures at anytime by posting an update to AACPW. 
  
 5.12 Fulfillment of Rebate Coupons. From time to time Autodesk may run a promotion whereby End Users may receive a rebate offer for Authorized Products. Autodesk
appoints VAR as a non-exclusive agent for the fulfillment of rebate claims (“Rebate Claims”) submitted by End Users for the various promotions (“Promotions”). VAR shall pay to an End User who has submitted a Rebate Claim, the
specified dollar amount as set forth on the rebate coupon, according to the terms and conditions stated on the rebate coupon. VAR shall only pay End User for Rebate Claims that have been received for the Promotions for which VAR has been authorized
by Autodesk. VAR shall pay a rebate to End User only if the rebate coupons have been completely filled out by the End User, if all required documentation is attached, and the Rebate Claim was postmarked or received prior to the expiration date
printed on the rebate coupon, unless otherwise instructed by Autodesk. After submission to Autodesk of all required End User documentation by VAR, Autodesk shall credit VAR’s account for the amount of the rebate coupon.  
  
 5.13 VAR’s Office. VAR shall maintain an office within a commercial
facility for each authorized location that is suitable to adequately represent Authorized Products and reflect a professional image to End Users. Such office may not be a home-office. VAR shall submit to Autodesk photographs of VAR’s office
along with this VAR Agreement. In the event that VAR loses its commercial office, VAR shall have thirty (30) days in which to establish a new office as defined above. The establishment of a new office that is more than five miles from VAR’s
Authorized location is subject to written approval by Autodesk. 
  
 5.14
Updated Financial Statements. VAR shall be required to submit updated financial statements to Autodesk, within five (5) business days following Autodesk’s request during the term of this VAR Agreement. 
  
 5.15 Breach of Obligations. In the event that VAR breaches any of the terms under this
Section 5, in addition to all other remedies available to Autodesk at law or in equity or pursuant to this VAR Agreement, at Autodesk’s sole discretion, Autodesk may terminate this VAR Agreement. 
  

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 6. Audit Rights. In addition to Autodesk’s audit rights under Section 5 of this VAR Agreement, Autodesk, in
its sole and absolute discretion, may conduct an audit of the financial and other records of VAR for the purpose of validating or augmenting the VAR reports identified above in Section 5 and otherwise ensuring that VAR is complying with the terms of
this VAR Agreement. Autodesk shall bear the cost of such audit, unless the audit determines that VAR has underpaid Autodesk by more than five percent (5%) for any Autodesk fiscal quarter OR unless such audit reveals the VAR is not in compliance with
this VAR Agreement. In the event of an underpayment by VAR, VAR shall pay to Autodesk the full amount of any underpayment disclosed by such audit, plus interest at the rate of 1.5% per month or the highest rate allowed by law, whichever is lower,
within five (5) days of Autodesk’s notification of such underpayment as well as bearing the costs of the audit. In the event a breach of this VAR Agreement is discovered, VAR shall bear the cost of the audit in addition to all other rights
Autodesk has under this VAR Agreement, at law or in equity. 
  
 6.1
Investigations. From time to time Autodesk shall conduct investigations related to, among other things, alleged piracy and gray market sales. In the event VAR is found to be involved in any activity Autodesk investigates hereunder, in addition
to all other rights and remedies available to Autodesk pursuant to this VAR Agreement, at law or in equity, VAR shall reimburse Autodesk for the costs of such investigation. 
  
 7. Sales Toolkit and Support 
  
 7.1 Sales Toolkit. VAR shall purchase from Autodesk at the price of $495.00 each year this VAR Agreement is in force, one VAR sales toolkit per Authorized Location
that will include one NFR copy of certain Authorized Products and certain marketing materials as deemed appropriate by Autodesk. Autodesk reserves the right to distribute Updates, Bug Fixes, and Enhancements to End Users directly or through
alternative channels, including, but not limited to, electronic distribution. 
  
 7.2 Support. Pursuant to the terms and conditions of this VAR Agreement, VAR will be granted access to all Autodesk self service support tools as made available on the VAR support portal at www.autodesk.com (or any other site as
designated by Autodesk.) 
  
 8. VAR Purchases 
  
 8.1 Purchase of Authorized Products. Unless otherwise designated in an Addendum to
this Agreement, VAR may only procure Authorized Products from an Autodesk Authorized Distribution Partner in accordance with this VAR Agreement, the Authorized Products Requirements Charts and Exhibit(s) A. 
  
 8.2 Taxes. As between VAR and Autodesk, VAR shall be responsible for the collection
and payment of all federal, state, county, or local taxes, fees, and other charges, including all applicable income and sales taxes, as well as all penalties and interest, with respect to the Authorized Products.  
  
 8.3 Software Product Returns. Autodesk shall post any then-current End User software
product returns policies on the AACPW or any Autodesk site as designated by Autodesk. Autodesk reserves the right to change, amend or discontinue any End User software product returns policies on thirty (30) day notice. 
  
 9. Commissions, Earnbacks and Co-op. 
  
 9.1 Commissions. VAR may receive a commission for various activities, provided
that VAR is authorized to sell such products and VAR complies with all terms and conditions for receiving a commission, as set forth in the then current documentation (including but not limited to Autodesk Strategic Account Guide, Autodesk
Government Account Guide, and other relevant information published on AACPW). The commission structure is set forth in Exhibit C. Autodesk reserves the right to pay no commissions, or reduced commissions, if VAR fails to adequately perform the
required sales, support and marketing activities as set forth in the AACPW. Autodesk reserves the right in its sole and absolute discretion to change the commission structure upon thirty (30) day notice. Changes to the commission structure shall be
posted on AACPW. Any commission to be paid to VAR by Autodesk pursuant to this Agreement shall first be credited to VAR’s account with Autodesk. 
  
 9.2 Targets and Earnbacks. In the event VAR achieves its quarterly Target, VAR shall be eligible to receive Earnbacks. Earnback percentages shall be posted to
AACPW. Targets shall be assigned to VAR by Autodesk for each quarter. Target 
  

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 attainment shall be based upon Commercial sales by VAR to End Users of Authorized Products. Please refer to Exhibit D for
Earnback Eligibility and payout information. In the event VAR is not in compliance with any material term or condition of this Agreement or earnback eligibility, then such earnback eligibility shall be permanently forfeited. 
  
 9.3 Co-op. VAR shall receive Co-op pursuant to the Autodesk Co-op Guide which shall be
distributed separately from this VAR Agreement, but which terms are hereby incorporated by reference. The terms and conditions of Co-op eligibility shall be described in the Co-op Guide and is subject to change at Autodesk’s sole discretion.
Failure to comply with the requirements of the Autodesk Co-op Guide shall result in the loss or reduction of Co-op for one or more Autodesk fiscal quarters and may result in termination from the Co-op program. 
  
 10. Trademarks. During the term of this VAR Agreement, VAR shall have a nonexclusive,
nontransferable right to indicate to the public that it is an Autodesk Authorized VAR and to advertise the Authorized Products within the United States under the trademarks and slogans adopted by Autodesk from time to time (“Trademarks”).
VAR’s use of the Trademarks in any literature, promotion, or advertising shall be in accordance with Autodesk guidelines for such usage. VAR shall not contest, oppose, or challenge Autodesk’s ownership of the Trademarks. All
representations of Autodesk Trademarks that VAR intends to use shall be exact copies of those used by Autodesk, or shall first be submitted to the appropriate Autodesk personnel for approval of design, color, and other details, such approval shall
not be unreasonably withheld. If any of the Autodesk Trademarks are to be used in conjunction with another trademark on or in relation to the Authorized Products, then the Autodesk Trademarks shall be presented equally legibly, equally prominently,
but nevertheless separated from the other so that each appears to be a trademark in its own right, distinct from the other mark. All use of the Trademarks shall inure to the sole benefit of Autodesk. Effective upon the termination of this VAR
Agreement, VAR shall immediately cease all usage of Autodesk Trademarks. 
  
 11. Title and Proprietary Rights. The Authorized Products and other materials included in or incorporated in the Authorized Products and included on an Autodesk web site (collectively the “Materials”) remain at all times
the property of Autodesk. VAR acknowledges and agrees that Autodesk holds the copyright to the Materials and, except as expressly provided herein, VAR is not granted any other right or license to patents, copyrights, trade secrets, or trademarks
with respect to the Materials. VAR shall take all reasonable measures to protect Autodesk’s proprietary rights in the Materials and shall not copy, use or distribute the Materials, or any derivative thereof, in any manner or for any purpose,
except as expressly authorized in this VAR Agreement. VAR shall not disassemble, decompile, or reverse-engineer the Materials, including any Authorized Product(s) source code, or otherwise attempt to discover any Autodesk trade secret or other
proprietary information, or hack, impede, change or interfere with any Autodesk web site. VAR acknowledges that Autodesk has an Anti-Piracy Program and VAR agrees to review and follow the Anti-Piracy Program guidelines as published by Autodesk from
time to time. VAR shall notify Autodesk promptly in writing upon its discovery of any unauthorized use of the Authorized Products or infringement of Autodesk’s patent, copyright, trade secret, trademark, or other intellectual property rights.
VAR shall not distribute any Authorized Product(s) to any person or entity if VAR is aware that such person or entity may be involved in potential unauthorized use of the Materials or other infringement of Autodesk’s proprietary rights.

  
 12. Customer Data. All customer data, including End User Records, is
and shall remain the sole and exclusive property of Autodesk and VAR shall have no right, title or interest in or to such customer data. All customer data is Autodesk confidential information. On occasion and at Autodesk’s sole discretion, VAR
may have access to Autodesk’s customer database. VAR’s access to such database shall be limited to customers with which VAR has a pre-existing business relationship. In the event that VAR loses its authorization for any Authorized
Product(s), Autodesk reserves the right to provide another Autodesk Authorized Reseller with access to Autodesk’s customer database for the customers to which VAR can no longer sell such Authorized Product(s). Autodesk does not represent or
warrant to VAR that the information in Autodesk’s customer database is current, correct or complete and Autodesk shall have no liability to VAR for any information contained in the Autodesk’s customer database. Autodesk shall have no
liability for VAR’s violation of any laws in connection with customer contact including, but not limited to, privacy laws, National “Do Not Call List” regulations and Federal and State “Spam” and fax blast rules.

  
 13. Warranty and Limitations of Warranty. Autodesk makes certain
limited warranties to the End User in the End User License and disclaims all other warranties. VAR SHALL NOT MAKE ANY WARRANTY OR REPRESENTATION ACTUALLY, APPARENTLY OR OSTENSIBLY ON BEHALF OF AUTODESK. EXCEPT FOR THE EXPRESS END USER WARRANTY
REFERRED TO HEREIN, AUTODESK MAKES NO OTHER WARRANTIES OR REPRESENTATIONS, EXPRESS OR IMPLIED, BY STATUTE OR OTHERWISE, REGARDING THE AUTHORIZED 
  

 8 

 PRODUCTS. AUTODESK EXPRESSLY EXCLUDES ANY IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, MERCHANTABILITY OR
NONINFRINGEMENT. 
  
 14. Indemnity 
  
 14.1 Infringement Indemnity by Autodesk. Autodesk shall indemnify, hold harmless, and
defend, at its expense, VAR from any action brought against VAR which alleges that any Authorized Product(s) infringes a registered United States patent, copyright, or trade secret, provided that VAR promptly notifies Autodesk in writing of any
claim, gives Autodesk sole control of the defense and settlement thereof, and provides all reasonable assistance in connection therewith. If the Authorized Product is finally adjudged to so infringe, Autodesk, at its exclusive option, (a) shall
procure for VAR the right to continue distribution of such Authorized Product(s); (b) shall modify or replace such Authorized Product(s) with a non-infringing product; or (c) shall authorize return of the Authorized Products and terminate this VAR
Agreement. Autodesk shall have no liability regarding any claim (i) arising out of the use of the Authorized Products in combination with other products, or modification of the Authorized Products, if the infringement would not have occurred but for
such combination, modification, or usage, or (ii) for use of the Authorized Products which does not comply with the terms of the End User License or this VAR Agreement. THE FOREGOING STATES VAR’S SOLE AND EXCLUSIVE REMEDY WITH RESPECT TO CLAIMS
OF INFRINGEMENT OF THIRD PARTY PROPRIETARY RIGHTS OF ANY KIND. 
  
 14.2
Indemnity by VAR. VAR agrees to indemnify, hold harmless and defend Autodesk from any cost, loss, liability, or expense, including court costs and reasonable fees for attorneys or other professionals, arising out of or resulting from (a) any
claim or demand brought against Autodesk or its directors, employees, or agents by a third party arising from or in connection with any breach by VAR of the terms of this VAR Agreement or any End User License, (b) any action brought by an End User
or Autodesk Distribution Partner except as set forth in Section 14.1 above, (c) any breach by VAR of any provision of this VAR Agreement including, but not limited to, confidentiality and trade secrets, or (d) any negligent or willful act or
omission by VAR, VAR’s employees, or VAR’s sales channel including, but not limited to, any act or omission that contributes to (i) any bodily injury, sickness, disease, or death; (ii) any injury or destruction to tangible property or loss
of use resulting there from; or (iii) any violation of any statute, ordinance or regulation including but not limited to privacy laws. 
  
 15. Limitation of Liability. 
  
 Autodesk’s Liability. AUTODESK’S ENTIRE CUMULATIVE LIABILITY ARISING OUT OF THIS VAR AGREEMENT, INCLUDING THE ORDER, DELIVERY OR NON-DELIVERY OF ANY
AUTHORIZED PRODUCT(S), SHALL NOT EXCEED THE GREATER OF: (A) THE VAR COST OF SOFTWARE PRODUCTS BY VAR IN THE SIX (6) MONTHS PRECEDING THE EVENT OR, (B) $500.00, WHICH EVER IS LESS. IN NO EVENT SHALL AUTODESK BE LIABLE FOR COSTS OF PROCUREMENT OF
SUBSTITUTE GOODS OR SERVICES, OR FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, OR INDIRECT DAMAGES ARISING OUT OF THIS VAR AGREEMENT, HOWEVER CAUSED, WHETHER FOR BREACH OF CONTRACT, TORT, (INCLUDING NEGLIGENCE) OR ANY OTHER LEGAL THEORY, AND WHETHER
OR NOT AUTODESK HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING ANY FUNDAMENTAL BREACH, BREACH OF A FUNDAMENTAL TERM OR FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY. 
  
 16. Confidentiality 
  
 16.1 Confidential Information. As used in this VAR Agreement, confidential information shall mean any information (a) designated as
confidential orally or in writing by either party hereto, (b) related to any Authorized Product(s), (c) related to Autodesk’s business, or (d) other information received by VAR by virtue of VAR’s relationship with Autodesk including, but
not limited to, product plans, product designs, product costs, product prices, product names, finances, marketing plans, business opportunities, Autodesk customer data, personnel, research, development, customer data or know-how (“Confidential
Information”). 
  
 16.2 Limitations on Disclosure and Use of Confidential
Information. Each party shall exercise reasonable care to prevent the unauthorized disclosure of Confidential Information by employing no less than the same degree of care employed by such party to prevent the unauthorized disclosure of its own
Confidential Information. Confidential Information disclosed under this VAR Agreement shall only be used by the receiving party in the furtherance of this VAR Agreement or the performance of its obligations hereunder. Neither party shall disclose
the terms of this VAR Agreement 
  

 9 

 to any third party without the prior written consent of the other, except pursuant to a valid and enforceable order of a
court or government agency. 
  
 16.3 Exceptions. Confidential Information
does not include information which (a) is rightfully received by the receiving party from a third party without restriction or violation of confidentiality, (b) is known to or developed by the receiving party independently without use of the
Confidential Information, (c) is or becomes generally known to the public by other than a breach of duty hereunder by the receiving party, or (d) has been approved in advance for release by written authorization of the non-disclosing party.

  
 17. Term, Termination, and Other Remedies 
  
 17.1 Term. This VAR Agreement, when fully executed by the parties, shall begin on the
Effective Date, and shall continue in effect through midnight on January 31, 2005 when it shall then terminate, unless terminated earlier under the provisions of this VAR Agreement. 
  
 17.2 Termination for Breach. Either party may terminate this VAR Agreement upon thirty (30) days advance written notice to the other
party if the other party breaches any term or condition of this VAR Agreement and fails to cure such breach to the reasonable satisfaction of the non-breaching party within the thirty (30) day written notice period. 
  
 17.3 Termination for Insolvency. Autodesk may immediately terminate this VAR Agreement
with or without notice if VAR becomes insolvent, or the subject of a voluntary or involuntary petition in bankruptcy or any proceeding relating to insolvency, receivership, liquidation, or assignment for the benefit of creditors, if that proceeding
is not dismissed with prejudice within sixty (60) days after filing. In addition to the foregoing, in the event VAR either voluntarily files for protection against its creditors under the United States Bankruptcy Code or is the subject of an
involuntary petition in bankruptcy, VAR agrees that Autodesk shall be entitled to all rights to retain the benefits of this VAR Agreement which are set forth in 11 U.S.C. 365(n). No right granted to Autodesk under 11 U.S.C. 365(n) shall be deemed to
have been waived either expressly or by implication without a written agreement confirming such waiver. 
  
 17.4 Termination for Customer Dissatisfaction. In consideration for its authorization, Autodesk is relying upon VAR to behave in a professional and upstanding manner in its relationship with all End Users.
Failure to attain a high level of customer satisfaction shall be considered a material breach of this VAR Agreement, and Autodesk reserves the right to terminate this VAR Agreement in the event that Autodesk receives customer dissatisfaction
complaints from an End User, regarding VAR. 
  
 17.5 Termination for Failure to
Meet Minimum Purchase Requirements 
  
 (a) Purchase Requirement Minimums.
Failure by VAR to achieve the Purchase Requirement Minimums may result in the termination of this VAR Agreement or the applicable Autodesk Product authorization by Autodesk, in its sole discretion. 
  
 17.6 Breach of Other Agreements with Autodesk. In the event VAR has any other current
agreements of any other type with Autodesk (“Other Autodesk Agreement”), the breach of any term of any such Other Autodesk Agreement may, at Autodesk’s option, be deemed a breach of this VAR Agreement and shall permit Autodesk to
terminate this VAR Agreement in the same manner as if a breach of the terms of this VAR Agreement had occurred. Any alleged breach by Autodesk of any Other Autodesk Agreement shall not be deemed a breach of this VAR Agreement by Autodesk and shall
not constitute cause for termination by VAR or support an allegation by VAR of damages under this VAR Agreement. 
  
 17.7 Breach of Product Requirements Chart, Suspension of Product Authorization and Partial Termination. Autodesk, at its sole discretion, may exercise its
termination rights or suspension of product authorization under this Section 17 solely with respect to the Product Requirements Chart, Authorized Locations, Authorized Territories, or Authorized Products, or with respect to any Other Autodesk
Agreement, which partial termination shall not affect this VAR Agreement’s application to the remaining Product Requirements Chart, Authorized Locations, Authorized Territories, or Authorized Products, or affect any remaining part of any Other
Autodesk Agreement. 
  

 10 

 17.8 Effect of Termination 
  
 (a) Monies Due and Payable. Notwithstanding any credit terms previously established with VAR or any other provision of this VAR
Agreement, upon notice of termination of this VAR Agreement, all monies owed by VAR to Autodesk shall become immediately due and payable. Overdue amounts shall be subject to a late payment charge of one and one-half percent (1.5%) per month, or the
maximum amount allowed by law, whichever is less. 
  
 (b) Fulfillment of
VAR Orders. Upon delivery of notice of a breach or notice of termination of this VAR Agreement, Autodesk Authorized Distribution Partners shall not be obligated to fulfill any orders received subsequent to the effective date of termination. In
Autodesk’s sole discretion, Autodesk and Autodesk Authorized Distribution Partners may continue to fulfill orders provided that VAR (i) submits prepayments for any such order and (ii) pays all outstanding obligations to Autodesk prior to any
shipment and/or Autodesk Authorized Distribution Partner. 
  
 (c) Return of
Materials. Within thirty (30) days after the termination of this VAR Agreement, VAR, at its own expense, shall return to Autodesk, all Autodesk Confidential Information, data, photographs, samples, literature and sales aids, and any other
property of Autodesk then in VAR’s possession. 
  
 17.9 Attorneys’
Fees for Collections. In any action brought by Autodesk to collect monies due under this VAR Agreement, Autodesk shall be entitled to recover all costs and attorneys’ fees incurred in maintaining such action. 
  
 17.10 No Termination Compensation. Except as expressly set forth herein, the parties
expressly agree that no damages, indemnity or termination benefits whatsoever (including without limitation, any compensation for goodwill established by VAR during the term of this VAR Agreement or for any lost profits or expenses of VAR) shall be
due or payable to VAR by reason of any termination of this VAR Agreement in accordance with its terms, and VAR expressly waives the application of any statute, law or custom to the contrary. 
  
 17.11 Other Remedies. In addition to the right to terminate this VAR Agreement,
Autodesk reserves all rights and remedies available to Autodesk at law or in equity, including the right to seek damages and injunctive relief for breach or threatened breach of this VAR Agreement by VAR. 
  
 17.12 Reapplication Post Termination. In the Event this VAR Agreement is terminated or
VAR loses one or more product authorizations for any reason, VAR may not reapply for any Autodesk Channel Partner program, including any then existing VAR program, for a minimum of six (6) months after the effective date of the termination. Nothing
herein shall require Autodesk to consider VAR for any Autodesk Channel Partner program. 
  
 17.13 Surviving Provisions. The terms and conditions, which by their nature should survive, shall survive and continue after termination of this VAR Agreement. 
  
 18. General Provisions 
  
 18.1 Assignment. VAR acknowledges that Autodesk is relying upon VAR’s reputation, business standing, and goodwill under VAR’s present ownership in
entering into this VAR Agreement. Accordingly, VAR agrees that its rights and obligations under this VAR Agreement may not be transferred or assigned and its duties may not be delegated directly or indirectly without the prior written consent of
Autodesk in its sole and absolute discretion. VAR shall notify Autodesk promptly in writing of any change of ownership of VAR or of any sale of all or substantially all of VAR’s assets. VAR acknowledges that any change of ownership, sale of all
or substantially all of VAR’s assets, or attempted assignment by VAR of this VAR Agreement, or any part thereof, without Autodesk’s prior written consent may result in immediate termination of this VAR Agreement by Autodesk. Autodesk may
assign or otherwise transfer its rights and obligations to successors-in-interest (whether by purchase of stock or assets, merger, operation of law, or otherwise) of that portion of its business related to the subject matter hereof. Subject to the
restrictions set forth in this Section 18.1, all of the terms and conditions of this VAR Agreement shall be binding upon, inure to the benefit of, and be enforceable by the respective successors and permitted assigns of the parties hereto.

  
 18.2 Dispute Resolution 
  
 (a) The parties will attempt in good faith to promptly resolve any controversy or
claim arising out of or relating to this VAR Agreement through negotiations between the parties before resorting to other remedies available to them. Any such dispute shall be referred to appropriate senior executives of each party who shall have
the authority to resolve the matter. If the senior executives are unable to resolve the dispute, the parties may by agreement refer the matter to an appropriate forum of alternative dispute resolution ranging from mediation to arbitration. If the
parties cannot resolve the matter or if 
  
  

 11 

 they cannot agree upon an alternative form of dispute resolution, then either party may pursue resolution of the matter
through litigation pursuant to Section 18 herein. 
  
 (b) The forgoing
shall not apply to a dispute or controversy involving either party’s Confidential Information or intellectual property. In the event of such a dispute or controversy, either may immediately seek any legal and/or equitable remedies it deems
necessary. 
  
 18.3 Venue/Choice of Law. This VAR Agreement shall be
construed in accordance with the laws of the State of California (excluding rules regarding conflicts of law) and the United States of America. The parties hereby submit to the exclusive personal jurisdiction of and venue in the Superior Court of
the State of California, County of Marin or County of Santa Clara, and the United States District Court for the Northern District of California in San Francisco. 
  
 18.4 Publicity. VAR may not issue any press release or any other public announcement regarding this VAR Agreement or any aspect of
its relationship with Autodesk without the prior written consent of Autodesk, which may be withheld in its sole discretion. Additionally, VAR is prohibited from utilizing the Autodesk stock ticker (“ADSK”) in any press release or other
public announcement unless such release is a joint release with Autodesk or Autodesk otherwise permits same, for each single release, in writing in advance. 
  
 18.5 Notices. Any notices required under the terms of this VAR Agreement will be given in writing either (a) to the persons at the addresses set forth below, or to
such other address as either party may substitute by written notice to the other in the manner contemplated herein, and will be deemed served when received by Autodesk from VAR or when sent to VAR by Autodesk, or (b) by facsimile, and will be deemed
served when received by Autodesk from VAR or when sent to VAR by Autodesk. 
  
 If to Autodesk:                     Autodesk, Inc. 
 111 McInnis Parkway 
 San Rafael, California 94903 
 Attn: General Counsel 
 Facsimile: (415) 507-6126 
  
 If to VAR, to the address and facsimile number identified on the first page of this VAR Agreement. Additionally, Autodesk may notify VAR of any changes by posting such
changes to AACPW. 
  
 18.6 Independent Contractors. In performing their
respective duties under this VAR Agreement, each of the parties will be operating as an independent contractor. Nothing contained herein will in any way constitute any association, partnership, or joint venture between the parties hereto, or be
construed to evidence the intention of the parties to establish any such relationship. Neither of the parties will hold itself out in any manner that would be contrary to the provisions of this Section 18.6. 
  
 18.7 Entire Agreement. This document, together with its exhibits, contains the
entire agreement and understanding between VAR and Autodesk concerning the subject matter of this VAR Agreement including, but not limited to, its duration and manner of expiration, termination, and Autodesk’s sole and absolute discretion in
determining to offer, or accept any extension of this VAR Agreement. This document supercedes all prior communications, discussions, negotiations, proposed agreements and all other agreements, whether written or oral, excepting solely all prior
confidentiality and nondisclosure agreements to the extent they are not expressly superceded by this VAR Agreement. Autodesk has not made and VAR has not relied upon any representations not expressly set forth in this document in making this VAR
Agreement. This VAR Agreement may be amended or interpreted only by a writing signed both by authorized individuals for Autodesk and VAR. It is the express intent of the parties that this VAR Agreement and any amendment thereto shall be interpreted
solely by reference to their written terms. Any handwritten or typed changes to this VAR Agreement must be initialed by both parties in order to become effective. 
  
 18.8 Severability. In the event that it is determined by a court of competent jurisdiction as a part of a final non-appealable
judgment that any provision of this VAR Agreement or part thereof is invalid, illegal, or otherwise unenforceable, such provision will be enforced or reformed as nearly as possible in accordance with the stated intention of the parties, while the
remainder of this VAR Agreement will remain in full force and effect. 
  

 12 

 18.9 Construction. This VAR Agreement has been negotiated by the parties and their respective counsel. This VAR
Agreement will be interpreted in accordance with its terms and without any strict construction against either party. Ambiguity will not be interpreted against the drafting party. 
  
 18.10 Counterparts. This VAR Agreement may be executed in separate counterparts and shall become effective when the separate
counterparts have been exchanged between the parties. 
  
 18.11 Force
Majeure. Except for the failure to make payments, neither party will be liable for any loss, damage or penalty resulting from delays or failures in performance resulting from acts of God, supplier delay or other causes beyond the non-performing
party’s reasonable control and not caused by the negligence of the non-performing party, provided that the non-performing party promptly notifies the other party of the delay and the cause thereof and promptly resumes performance as soon as it
is possible to do so. 
  
 18.12 Waiver. The waiver of any breach or default
will not constitute a waiver of any other right in this VAR Agreement or any subsequent breach or default. No waiver shall be effective unless in writing and signed by an authorized representative of the party to be bound. Failure to pursue, or
delay in pursuing, any remedy for a breach shall not constitute a waiver of such breach. 
  
 The undersigned are duly authorized to execute this VAR Agreement on behalf of their respective parties. 
  

									
			
	 AUTODESK, INC.
	 	 	 	 VAR

					
	By:	 	 	 	 	 	By:	 	 
	 	 	
	 	 	 	 	 	

					
	 	 	 Steve Blum          
	 	 	 	 	 	 
	
	 	 	 	

	 	 	Printed Name	 	 	 	 	 	Printed Name
					
	 	 	Vice President, Americas Sales	 	 	 	 	 	 
	
	 	 	 	

	 	 	Title	 	 	 	 	 	Title
	 	 	 	 	 	 	 	 	 
	
	 	 	 	

	 	 	Date	 	 	 	 	 	Date

  

 13 

 EXHIBITS REDACTED 
  
  

 14 

 AUTODESK AUTHORIZED CHANNEL PARTNER AGREEMENT 
 Autodesk Direct VAR Addendum 
 (United
States) 
  
 In addition to the terms and conditions set forth in the Autodesk
Authorized Channel Partner Agreement (the “VARAgreement”), with the effective date of February 1, 2004, and the requirements as outlined in Exhibit A of this addendum, to remain as a Direct VAR, Autodesk Value Added Reseller
(“VAR”) shall comply with the following: 
  
 1. Authorized
Products And Territory. 
  
 (a) Vertical Requirement. In order to
achieve and maintain Direct VAR status, VAR must be authorized for and actively carry and market Vertical Product(s). 
  
 (b) Authorized Territory. Direct VAR’s Authorized Territory for all Authorized Products is defined in Exhibit A of the FY05 VAR Agreement. 

 
 2. Minimum Staffing. In addition to the Product Authorization requirements in
Exhibit B of the VAR Agreement, Direct VAR shall have at a minimum – one dedicated Sales Support/Administrative representative, two accredited full-time Post-Sales Technical Support Engineers. 
  
 3. Training. Direct VAR must survey all training participants, track their
satisfaction and report back to Autodesk via website survey site. 
  
 4. Credit
Establishment. VAR shall provide Autodesk with all reasonable financial information, including but not limited to financial statements, letter(s) of credit, credit reports, federal tax return(s) and any other documents reasonably requested by
Autodesk to allow Autodesk to establish credit for VAR. VAR may not purchase direct from Autodesk pursuant to this VAR Agreement until a credit account has been established. Autodesk may cancel or suspend credit to VAR at any time, in its sole
discretion. 
  
 5. Prices and Orders. The prices paid by VAR shall be the
prices reflected on the VAR Price List as posted to the AACPW. Autodesk may change prices at any time effective thirty (30) days after publication of a new VAR Price List or other similar notice to VAR. Purchase orders must be in writing (including
facsimile, telex, telecopy or electronic communication such as email, but only if such form of electronic communication has been previously agreed to by Autodesk) and must request a delivery date during the Term of this VAR Agreement. Autodesk
reserves the right to accept or reject orders, in whole or in part, and shall make reasonable commercial efforts to advise VAR promptly of any order rejected hereunder. Upon acceptance by Autodesk, purchase orders shall be binding as to the products
and services ordered and place of delivery, but not as to any other term appearing on such purchase order. Autodesk reserves the right to reject any order or to cancel any order previously accepted if Autodesk determines that VAR is in breach under
this VAR Agreement. 
  
 6. Shipment. Autodesk will ship orders to the
address designated in VAR’s purchase order F.O.B. or Free Carrier Autodesk’s manufacturing plant, at which time risk of loss shall pass to VAR. All freight, insurance, customs duties, and other shipping expenses shall be paid by VAR.

  
 7. Security Interest. As security for VAR’s payment of all
monetary obligations to Autodesk, VAR hereby grants to Autodesk a security interest in all of VAR’s inventory purchased from Autodesk (“VAR’s Inventory”), all of VAR’s accounts receivable evidencing any obligation to VAR for
payment for Authorized Products sold, and all proceeds of any character, whether cash or non-cash, arising from the disposition of VAR’s Inventory and accounts. VAR agrees to execute all documents necessary to perfect Autodesk’s security
interest described herein upon request by Autodesk. 
  
 8. VAR Orders, Payment
Terms and Returns 
  

 1 

 8.1 Purchase of Authorized Products. VAR may procure Authorized Products from Autodesk or an Autodesk Authorized
Distribution Partner in accordance with this VAR Agreement, the Authorized Products Requirements Charts and Exhibit(s) A. Only those product purchased directly from Autodesk will count towards Target Attainment and Earnback credits. 
  
 8.2 Payment. Autodesk shall submit an invoice to VAR upon shipment of an order or
partial order. If Autodesk elects to grant credit to VAR, all invoiced amounts shall be due and payable net thirty (30) days from the date of invoice. If VAR fails to pay any invoiced amounts when due, Autodesk may at its sole and absolute
discretion, and in addition to any other remedies available to it at law or in equity or under this VAR Agreement, revoke or suspend VAR’s credit terms, require further assurances from VAR that such invoiced amounts shall be paid, require VAR
to purchase all Authorized Products through an Autodesk Authorized Distribution Partner and/or terminate this VAR Agreement. Overdue amounts shall be subject to a late payment charge of one and one-half percent (1.5%) per month or the highest rate
allowed by law, whichever is lower. Additionally, any invoice not paid by VAR with in sixty (60) days shall, in Autodesk’s sole and absolute discretion, cause VAR to forfeit any and all Earnbacks achieved by VAR in the previous fiscal quarter
and lose eligibility for Earnbacks for the current quarter. Additionally, Autodesk may terminate this VAR Agreement for failure to pay. 
  
 8.3 Software Product Returns. Autodesk shall post any then-current software product returns policies on the AACPW or any Autodesk site as designated by Autodesk.
Autodesk reserves the right to change, amend or discontinue any software product returns policies on thirty (30) day notice. 
  
 8.4 Autodesk Account Balance. In the event VAR has a balance on an Autodesk account, VAR must be current on payments, and remain current on payments against any
such balance. In the event payments fall in arrears on such balance, such failure will be considered a material breach. 
  
 9. Audit Rights. In addition to Autodesk’s audit rights under Section 6 of the VAR Agreement, Autodesk, in its sole and absolute discretion, may conduct an
audit of all relevant records of VAR for the purpose of validating or augmenting the VAR reports exhibiting value add services and ensuring that VAR is complying with the terms of this Autodesk Direct VAR Addendum and the VAR Agreement. Autodesk
shall bear the cost of such audit, unless the audit determines that VAR has breached this Autodesk Direct VAR Addendum or the VAR Agreement, in which case VAR shall bear the cost of the audit. 
  
 10. Termination and Other Remedies 
  
 10.1 Breach of Obligations. In the event that VAR breaches any of the terms of the
Agreement or this Autodesk Direct VAR Addendum, including any payment or value add service obligations, at Autodesk’s sole discretion, VAR shall not be eligible for commissions on some or all accounts for which it has provided value add
services, or will receive only a proportional amount of the commission. In addition, Autodesk may, in its sole and absolute discretion, terminate the Agreement and/or this Autodesk Direct VAR Addendum. 
  
 10.2 Termination for Dissatisfaction. Autodesk may immediately terminate this Autodesk
Direct VAR Addendum and/or the Agreement if Autodesk receives a complaint or other registration of dissatisfaction regarding VAR from any customer account for which VAR has been adding value add services pursuant to this Autodesk Direct VAR
Addendum. 
  
 10.3 Breach of Payment Obligations. In the event that VAR
breaches any of the terms of this VAR Agreement, including any payment obligations, at Autodesk’s sole discretion, VAR shall not be eligible for Co-op for the remainder of the fiscal quarter in which the violation occurred (or the quarter in
which Autodesk discovered the violation) and the subsequent fiscal quarter. In addition, Autodesk may, in its sole and absolute discretion, terminate this VAR Agreement for failure to pay. 
  
 10.4 De-authorization of Direct VAR Status. VAR’s status as a Direct VAR and/or
VAR’s authorization to distribute and market the software products may be terminated independently on a product by product basis, or in conjunction with Autodesk’s termination of the VAR Agreement.  
  

 2 

 10.5 In the event that the Agreement is terminated, this Autodesk Direct VAR Addendum shall concurrently
terminate. 
  
 10.6 Effect of Termination 
  
 (a) Monies Due and Payable. Notwithstanding any credit terms previously established
with VAR or any other provision of the VAR Agreement, upon notice of termination of this VAR Agreement, all monies owed by VAR to Autodesk shall become immediately due and payable. Overdue amounts shall be subject to a late payment charge of one and
one-half percent (1.5%) per month, or the maximum amount allowed by law, whichever is less. 
  
 (b) Fulfillment of VAR Orders. Upon delivery of notice of a breach or notice of termination of this VAR Agreement, Autodesk shall not be obligated to fulfill any orders by VAR. Additionally, Autodesk and
Autodesk Authorized Distribution Partners shall not be obligated to fulfill any orders received by Autodesk or Autodesk Authorized Distribution Partners subsequent to the effective date of termination. In Autodesk’s sole discretion, Autodesk
and Autodesk Authorized Distribution Partners may continue to fulfill orders provided that VAR (i) submits prepayments for any such order and (ii) pays all outstanding obligations to Autodesk prior to any shipment and/or Autodesk Authorized
Distribution Partner. 
  
 (c) Return or Depletion of Inventory. Subject to
the limitations set forth below, upon termination, Autodesk, at its sole discretion, may either (i) repurchase all or any part of VAR’s inventory of Authorized Products at the price paid by VAR to Autodesk and/or (ii) allow VAR to continue to
distribute those Authorized Products in inventory until the inventory is depleted, subject to the terms and conditions set forth in this VAR Agreement and whatever additional terms and conditions may be imposed by Autodesk in its sole and absolute
discretion. Except as expressly set forth above, under no circumstances shall VAR be entitled to a refund for all or any portion of the Authorized Products in VAR’s inventory. 
  
 11. Effective Date and Modification. The effective date of this Autodesk Direct VAR Addendum is February 1, 2004
(“Effective Date”). These authorization requirements for the Autodesk Direct VAR may be modified at any time by Autodesk by forwarding a revised Autodesk Direct VAR Addendum to VAR. 
  
 Except as modified in this Autodesk Direct VAR Addendum, the VAR Agreement shall remain in
full force and effect. 
  
 The Undersigned are duly authorized to execute this
Autodesk Direct VAR Addendum on behalf of their respective parties. 
  

											
				
	 “Autodesk”
 AUTODESK, INC.
	 	 	 	 “VAR”
 Company:
	 	 
	 	 	 	 	 	 	 	 	

					
	By:	 	 	 	 	 	By:	 	 
	 	 	
	 	 	 	 	 	

					
	 	 	 Steve Blum          
	 	 	 	 	 	 
	
	 	 	 	

	 	 	 	 	 	 	 	 	Printed Name
					
	 	 	Vice President–Americas Sales	 	 	 	 	 	 
	
	 	 	 	

	 	 	Title	 	 	 	 	 	Title
	 	 	 	 	 	 	 	 	 
	
	 	 	 	

	 	 	Date	 	 	 	 	 	Date

  

 3 

 EXHIBIT A 
 DIRECT VAR REQUIREMENTS CHART 
  
 Must be Vertically Authorized and meet the following requirements: 
  

													
	

	 	  	Yearly Revenue Minimum
Commitment	  	Additional Personnel	  	Facility	  	Marketing	  	Other
	

	 Required of all
 Direct VAR
	  	>$1M annual commercial purchases or approved for Premier Solutions Provider Level. (Based on revenue totals from Q4FY03, Q1FY04,
Q2FY04, Q3FY04)	  	 —  Two accredited full- time post-sale support engineers per company
 —  One dedicated Sales Support/Administration Rep.
	  	Support lab with
systems capable of
running all
supported products	  	—  Must submit quarterly
marketing/sales plans
—  Minimum Marketing budget
greater or
equal to 6%
—  Designated and approved
marketing contact	  	Must have good credit
standing with
Autodesk
	

	 Support
 Offerings and
Requirements
	  	Workstation	  	Response Time	  	Call Tracking	  	Customer Satisfaction	  	Satellite Office
	

	 Required of all
Reseller
 Partners
	  	Full Internet access, email and workstation dedicated solely to support	  	SLA initial response within 4 hours by accredited technician; resolution within 72 hours	  	Call Tracking and
Reporting System in
place	  	Must survey all training
participants, track satisfaction
and report to Autodesk via
Autodesk Training
Survey
website.	  	Requirements met by
HQ location.
	

	 Training
 Center
Requirements
	  	Facility	  	Class Offerings	  	Trainer	  	Satellite Office
	

	 Required of all
Reseller
 Partners
	  	5-seat training lab capable of running current Autodesk products	  	Must be able to offer customized classes on the products within the Vertical markets	  	Resellers must have access to a
qualified trainer, provide name
and submit a training plan	  	Each VAR satellite must have a training
lab or reseller can use a portable training
lab.
	

  

 18EXHIBIT 10.11

 EXHIBIT 10.11 
  
 THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS. THEY MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT AND APPLICABLE LAWS OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS OR AN
OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. 
  
 Avatech Solutions Subsidiary, Inc. 
 10% SUBORDINATED NOTE 
  

			
	 Note:             
	  	Owings Mills, Maryland
	 $42,500.00
	  	As of January 1, 2004

  
 Avatech Solutions
Subsidiary, Inc., a Delaware corporation (the “Company”), the principal office of which is located at 11400A Cronridge Drive, Owings Mills, Maryland 21117, for value received, hereby promises to pay to
                     or his registered assigns, the sum of Forty-Two Thousand, Five Hundred Dollars ($42,500.00) (The “Principal
Amount”), or such lesser amount as shall then equal the outstanding principal amount hereof. Any outstanding principal and any unpaid interest hereon shall be due and payable on the earlier to occur of: 
  
 (i) Seven Thousand Five Hundred Dollars ($7,500.00) on July 1, 2004, and the
remaining Thirty-Five Thousand Dollars ($35,000.00) and any unpaid interest hereon, accrued as set forth in Section 2 below, on the maturity date, which is July 1, 2005; or 
  
 (ii) when declared due and payable by the Holder upon the occurrence of an Event of Default (as defined below). 

 
 Payment for all amounts due hereunder shall be made by mail to the registered address of
the Holder. This Note is one of an issue of the Company’s 10% Subordinated Notes in the original aggregate principal amount of $1,500,000. 
  
 The following is a statement of the rights of the Holder of this Note and the conditions to which this Note is subject, and to which the Holder hereof, by
the acceptance of this Note, agrees: 
  
 1. Definitions. As
used in this Note, the following terms, unless the context otherwise requires, have the following meanings: 
  
 (i) “Company” includes any corporation which shall succeed to or assume the obligations of the Company under this Note.

  
 (ii) “Holder,” when the context
refers to a holder of this Note, shall mean any person who shall at the time be the registered holder of this Note. 
  

 2. Interest. The Company shall pay simple interest at the rate of ten percent (10%) per annum on
the principal of this Note outstanding during the period beginning on the date of issuance of this Note and ending on the date that the principal amount of this Note becomes due and payable. Interest shall be payable on the calendar quarter,
commencing on March 31, 2004 until maturity or earlier prepayment. 
  
 3. Events of Default. If any of the events specified in this Section 3 shall occur (herein individually referred to as an “Event of Default”), the Holder of the Note may, so long as such condition exists, declare the entire
principal and unpaid accrued interest hereon immediately due and payable, by notice in writing to the Company: 
  
 (i) Default in the payment of the principal and unpaid accrued interest of this Note when due and payable if such default is not cured by
the Company within ten (10) days after the Holder has given the Company written notice of such default; or 
  
 (ii) The institution by the Company of proceedings to be adjudicated as bankrupt or insolvent, or the consent by it to the institution of
bankruptcy or insolvency proceedings against it or the filing by it of a petition or answer or consent seeking reorganization or release under the federal Bankruptcy Act, or any other applicable federal or state law, or the consent by it to the
filing of any such petition or the appointment of a receiver, liquidator, assignee, trustee or other similar official of the Company, or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors, or
the taking of corporate action by the Company in furtherance of any such action; or 
  
 (iii) If within sixty (60) days after the commencement of an action against the Company (and service of process in connection therewith on
the Company) seeking any bankruptcy, insolvency, reorganization, liquidation, dissolution or similar relief under any present or future statute, law or regulation, such action shall not have been resolved in favor of the Company or all orders or
proceedings thereunder affecting the operations or the business of the Company stayed, or if the stay of any such order or proceeding shall thereafter be set aside, or if, within sixty (60) days after the appointment without the consent or
acquiescence of the Company of any trustee, receiver or liquidator of the Company or of all or any substantial part of the properties of the Company, such appointment shall not have been vacated; or 
  
 (iv) Any declared default of the Company under any Senior
Indebtedness (as defined below) that gives the holder thereof the right to accelerate such Senior Indebtedness, and such Senior Indebtedness is in fact accelerated by the holder. 
  
 4. Subordination. The indebtedness evidenced by this Note is hereby expressly subordinated, to the extent and in the
manner hereinafter set forth, in right of payment to the prior payment in full of all of the Company’s Senior Indebtedness, as hereinafter defined. 
  
 4.1 Senior Indebtedness. As used in this Note, the term “Senior Indebtedness” shall mean the principal of and unpaid
accrued interest on: (i) all indebtedness of the Company to: banks, commercial finance lenders, insurance companies, other financial 

  

 
institutions regularly engaged in the business of lending money; vendors or business partners from whom the Company has borrowed money; or affiliates of the
Company, which is for money borrowed by the Company (whether or not secured), and (ii) any such indebtedness or any debentures, notes or other evidence of indebtedness issued in exchange for or to refinance such Senior Indebtedness, or any
indebtedness arising from the satisfaction of such Senior Indebtedness by a guarantor. 
  
 4.2 Default on Senior Indebtedness. If there should occur any receivership, insolvency, assignment for the benefit of creditors,
bankruptcy, reorganization or arrangements with creditors (whether or not pursuant to bankruptcy or other insolvency laws), sale of all or substantially all of the assets, dissolution, liquidation or any other marshalling of the assets and
liabilities of the Company, or if this Note shall be declared due and payable upon the occurrence of an Event of Default with respect to any Senior Indebtedness, then (i) no amount shall be paid by the Company in respect of the principal of or
interest on this Note at the time outstanding, unless and until the principal of and interest on the Senior Indebtedness then outstanding shall be paid in full, and (ii) no claim or proof of claim shall be filed with the Company by or on behalf of
the Holder of this Note that shall assert any right to receive any payments in respect of the principal of and interest on this Note, except subject to the payment in full of the principal of and interest on all of the Senior Indebtedness then
outstanding. If there occurs an event of default that has been declared in writing with respect to any Senior Indebtedness, or in the instrument under which any Senior Indebtedness is outstanding, permitting the holder of such Senior Indebtedness to
accelerate the maturity thereof, then, unless and until such event of default shall have been cured or waived or shall have ceased to exist, or all Senior Indebtedness shall have been paid in full, no payment shall be made in respect of the
principal of or interest on this Note, unless within three (3) months after the happening of such event of default, the maturity of such Senior Indebtedness shall not have been accelerated. 
  
 4.3 Effect of Subordination. Subject to the rights,
if any, of the holders of Senior Indebtedness under this Section 4 to receive cash, securities or other properties otherwise payable or deliverable to the Holder of this Note, nothing contained in this Section 4 shall impair, as between the Company
and the Holder, the obligation of the Company, subject to the terms and conditions hereof, to pay to the Holder the principal hereof and interest hereon as and when the same become due and payable, or shall prevent the Holder of this Note, upon
default hereunder, from exercising all rights, powers and remedies otherwise provided herein or by applicable law. 
  
 4.4 Subrogation. Subject to the payment in full of all Senior Indebtedness and until this Note shall be paid in full, the Holder
shall be subrogated to the rights of the holders of Senior Indebtedness (to the extent of payments or distributions previously made to such holders of Senior Indebtedness pursuant to the provisions of Section 4.2 above) to receive payments or
distributions of assets of the Company applicable to the Senior Indebtedness. No such payments or distributions applicable to the Senior Indebtedness shall, as between the Company and its creditors, other than the holders of Senior Indebtedness and
the Holder, be deemed to be a payment by the Company to or on account of this Note; and for the purposes of such subrogation, no payments or distributions to the holders of Senior Indebtedness to which the Holder would be entitled 

  

 
except for the provisions of this Section 4 shall, as between the Company and its creditors, other than the holders of Senior Indebtedness and the Holder, be
deemed to be a payment by the Company to or on account of the Senior Indebtedness. 
  
 4.5 Undertaking. By its acceptance of this Note, the Holder agrees to execute and deliver such documents as may be reasonably
requested from time to time by the Company or the lender of any Senior Indebtedness in order to implement the foregoing provisions of this Section 4. 
  
 5. Prepayment. The Company may at any time prepay in whole or in part the principal sum, plus accrued interest to date of payment, of this Note.

  
 6. Assignment. Subject to the restrictions on transfer
described in Section 8 below, the rights and obligations of the Company and the Holder of this Note shall be binding upon and benefit the successors, assigns, heirs, personal and legal representatives, and transferees of the parties. 
  
 7. Waiver and Amendment. Any provision of this Note may be amended,
waived or modified upon the written consent of the Company and holders of all then outstanding Notes. 
  
 8. Transfer of this Note. With respect to any offer, sale or other disposition of this Note, the Holder will give written notice to the Company
prior thereto, describing briefly the manner thereof, together with a written opinion of such Holder’s counsel, to the effect that such offer, sale or other distribution may be effected without registration or qualification (under any federal
or state law then in effect). Promptly upon receiving such written notice and reasonably satisfactory opinion, if so requested, the Company, as promptly as practicable, shall notify such Holder that such holder may sell or otherwise dispose of this
Note or such securities, all in accordance with the terms of the notice delivered to the Company. If a determination has been made pursuant to this Section 8 that the opinion of counsel for the holder is not reasonably satisfactory to the Company,
the Company shall so notify the Holder promptly after such determination has been made. Each Note thus transferred and each certificate representing the securities thus transferred shall bear a legend as to the applicable restrictions on
transferability in order to ensure compliance with the Act, unless in the opinion of counsel for the Company such legend is not required in order to ensure compliance with the Act. The Company may issue stop transfer instructions to its transfer
agent in connection with such restrictions. 
  
 9. Treatment of
Note. To the extent permitted by generally accepted accounting principles, the Company will treat, account and report the Note as debt and not equity for accounting purposes and with respect to any returns filed with federal, state or local tax
authorities. 
  
 10. Notices. Any notice, request or other
communication required or permitted hereunder shall be in writing and shall be deemed to have been duly given if personally delivered or if telegraphed or mailed by registered or certified mail, postage prepaid, at the respective addresses of the
parties as set forth herein. Any party hereto maybe notice so given change its address for future notice hereunder. Notice shall conclusively be deemed to have been given when personally delivered or when deposited in the mail or telegraphed in the
manner set forth above and shall be deemed to have been received when delivered. 
  

 11. No Stockholder Rights. Nothing contained in this Note shall be construed as conferring upon
the Holder or any other person the right to vote or to consent or to receive notice as a stockholder in respect of meetings of stockholders for the election of directors of the Company or any other matters or any rights whatsoever as a stockholder
of the Company; and no dividends or interest shall be payable or accrued in respect of this Note or the interest represented hereby. 
  
 12. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, excluding that body of
law relating to conflict of laws. 
  
 13. Heading;
References. All headings used herein are used for convenience only and shall not be used to construe or interpret this Note. Except where otherwise indicated, all references herein to Sections refer to Sections hereof. 
  
 IN WITNESS WHEREOF, the Company has caused this Note to be issued as of this
1st day of January, 2004. 
  

			
	 AVATECH SOLUTIONS SUBSIDIARY, INC.

		
	By:	 	 /s/

	 	 	

	 	 	 Donald R. (Scotty) Walsh,
 Chief Executive Officer

  

			
	 Name of Holder:
	 	 
	 	 	

	 	 	 
	 	 	

	 	 	 
	 	 	

  

 Do not detach this warrant without consulting the Company. 
  

			
	 No. W –             
	  	15,000 Shares

  
 Avatech Solutions, Inc.

 A Delaware Corporation 
 Common
Stock, Par Value $.01 per share 
 Stock Purchase Warrant 
  
 This warrant is issued to the registered holder of $42,500 principal amount of the 10% Subordinated Notes (individually, a
“Note” and collectively, the “Notes”), of Avatech Solutions Subsidiary, Inc., a Delaware corporation (the “Company”), dated as of January 1, 2004, bearing (except for the prefix letter “W”) the same
designating number as noted above and to which note this warrant pertains. The Note is one of an issue of Notes of the Company with an aggregate principal amount of $1,500,000. 
  
 The bearer of this warrant is entitled, upon presentation of the Note (if the Note is then outstanding) and upon surrender
of this warrant at the offices of the Company, to subscribe for, purchase and receive Fifteen Thousand (15,000) shares of the Common Stock of Avatech Solutions, Inc. (“Avatech”) for a purchase price of Twenty-One Cents ($0.21) per share
provided, however, no fractional shares will be issued. Upon such payment, Avatech agrees to cause to be issued in the name of the registered holder, or his or her nominee, a certificate or certificates duly representing the shares so purchased.

  
 In the event of the declaration and payment of share dividends
by Avatech on its Common Stock, or any split-up of the Common Stock, or recapitalization of Avatech which changes the issued and outstanding shares of Common Stock, additional shares of Avatech may be deliverable to the holder of this warrant upon
the exercise of it without additional consideration, or the exercise price per share may be adjusted in the appropriate manner. 
  
 The purchase privilege herein contained shall expire on July 1, 2005. If the Note to which this warrant is attached shall be prepaid, the purchase
privilege shall nevertheless continue until said date. 
  
 Nothing
contained in this warrant shall affect or limit the Note to which it pertains. 
  
 Dated as of January 1, 2004 
  

			
	 Avatech Solutions, Inc.

		
	By:	 	 /s/

	 	 	

	 	 	 Donald R. (Scotty) Walsh
 Chief Executive Officer

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